Gielda Papierow Wartosciowych W Warszawie S.a. · GPW:GPW

Gielda Papierow Wartosciowych W Warszawie — Giełda Papierów Wartościowych w Warszawie S.A. (GPW) — Q4 2018 Earnings Presentation

31 slides from Gielda Papierow Wartosciowych W Warszawie's earnings presentation, Mar 1, 2019

  1. Slide 1: GPW Group’s Financial Results in 2018

    GPW Group’s Financial Results in 2018 1 March 2018

  2. Slide 2: Summary of the GPW Group’s Activity in Q4 2018

    Summary of the GPW Group’s Activity in Q4 2018 Financial Results of the GPW Group in Q4 2018

  3. Slide 3: Summary of 2018 in GPW Group

    Summary of 2018 in GPW Group GPW Group strategy update and implementation  14 initiatives opening growth opportunities Historically high financial results  2018 net profit at PLN 183.7m Good starting point to grow corporate value in 2019  Diversified business addresses trends in global markets in

  4. Slide 4: Milestones of 2018

    Milestones of 2018 •Update of the #GPW2022 •Historically high volume •Dividend paid at PLN OPERATIONS VOLUMES FINANCIALS strategy and launch of 14 of trading in electricity 92.3m (PLN 2.20 per initiatives geared to and gas on Towarowa share) business volumes Giełda Energii •Historically high net pro

  5. Slide 5: Historically high net profit of 2018

    Historically high net profit of 2018 Revenue Net profit  Revenue PLN mn -1.5% +15.7% PLN mn Revenue increased by 3.2% QoQ and dropped by 4.0% YoY in Q4 2018. -4.0% 352.0 183.7 346.8 92.2 88.5 -5.5%  Net profit 158.7 Net profit dropped by 1.3% QoQ and 39.3 37.1 by 5.5% YoY in Q4 2018. Annual net pr

  6. Slide 6: Stable investor activity measured by velocity in Q4’18

    Stable investor activity measured by velocity in Q4’18 Value of EOB trading on the Main Market EOB Trading Turnover velocity PLN bn  Velocity ratio at 32.9% in Q4 2018 vs. 34.3% 80 39,8% 42,6% 45,0% in Q3 2018 and 33.3% in Q4 2017. 34,9% 33,3% 34,3% 32,9%  Annual velocity at 32.3% in 2018 vs. 35.3

  7. Slide 7: Increase of trading in derivatives

    Increase of trading in derivatives Volume of trading in derivatives  Total volume of trading in derivatives was 2.2m instruments in Q4 2018, up by 26.2% mn 27.8% QoQ and up by 27.8% YoY. 2.24 2.22 2.18 2.08  Volume of trading in WIG20 futures at 1.2m 1.98 1.67 1.73 1.76 1.76 instruments in Q4 2018

  8. Slide 8: Trading in electricity and gas was historically high in 2018

    Trading in electricity and gas on was historically high in 2018 Volume of spot and forward trading in electricity and gas  Electricity market – The total volume of trading on the electricity market in Q4 2018 was 67.3TWh (+80.9% YoY, Energy (TWh) Gas (TWh) +6.0% QoQ). The volume of spot transaction

  9. Slide 9: Financial Results of the GPW Group in Q4 2018

    Summary of the GPW Group’s Activity in Q4 2018 Financial Results of the GPW Group in Q4 2018

  10. Slide 10: Stable revenue and EBITDA margin

    Stable revenue and EBITDA margin Net profit and net profit margin Revenue EBITDA and EBITDA margin PLN mn PLN mn PLN mn 91.3% 56.4% 62.7% 59.5% 59.6% 49.5% 42.7% 33.2% 44.0% 42.0% -4.0% 92.2 86.6 88.5 -5.5% 85.9 85.7 +1.6% 79.0 51.9 54.3 52.7 51.0 36.8 44.0 39.3 37.6 37.1 29.9 42.2 Q4’17 Q1’18 Q2’18

  11. Slide 11: Trading revenue on the financial market

    Trading revenue on the financial market Q4’18: 34.6% Trading revenue – financial market  Trading revenue on the financial market at PLN PLN mn 30.6m (down by 0.3% QoQ and down by 11.6% YoY) -11.7%  Average turnover in shares per session at PLN 34.7 827.4m in Q4 2018, down by 7.6% QoQ and 16.0% 32.

  12. Slide 12: Stable listing revenue

    Stable listing revenue Q4’18: 6.4% Listing revenue PLN mn  4 IPOs on NewConnect in Q4’18 and 20 IPOs on both markets worth PLN 346m in 2018.  Stable listing revenue in spite of a drop in the -9.8% number of companies YoY from 482 at 2017YE to 6.3 465 at 2018YE (Main Market). 5.9 5.8 5.7 5.4 +5.1%

  13. Slide 13: Historically high revenue from information services – financial market

    Historically high revenue from information services – financial market Q4’18: 13.4%  New clients in different market segments attracted in Q4 2018: Revenue from information services1  2 data vendors (23 in 2018) PLN mn  3 non-display clients (7 in 2018, including Systematic Internalizers)  6 use

  14. Slide 14: Continued growth in volumes on the electricity and gas market

    Continued growth in volumes on the electricity and gas market Q4’18: 23.5% Trading revenue – commodity market  Continued growth in revenue from trading in electricity PLN mn to PLN 5.7m (+97.8% YoY and +7.1% QoQ) driven mainly by growing volumes of forward transactions. +3.2%  Increase of revenue

  15. Slide 15: Higher revenue from clearing

    Higher revenue from clearing Q4’18: 14.6% Revenue from clearing PLN mn  Revenue from clearing increased by 8.0% YoY and +8.0% by 16.3% QoQ in Q4 2018 due to growing volumes of trading in electricity and gas. 12.9 12.0 11.3 10.5 11.1 +16.3%  Lower revenue from the operation of the Register of Certi

  16. Slide 16: Decrease of operating expenses in Q4 2018

    Decrease of operating expenses in Q4 2018  The Group’s operating expenses at PLN 42.4m in Q4’18, down by 13.4 % YoY and 1.4% QoQ. Operating expenses: -13.4% YoY and -1.4% QoQ PLN mn  C/I2 was 48.0 in Q4’18 vs. 53.1 in Q4’17. 49.0 48.4 PFSA fees 7.6 43.0 42.4  Depreciation and amortisation in Q4’1

  17. Slide 17: Share of profit of associates

    Share of profit of associates Share of profit of associates  The Group’s share of profit of associates at PLN 1.9m in Q4 2018 (+0.7% YoY and -43.6% mln zł PAR KDPW QoQ). Share of profit of associates up by 4.5 Aquis CG 4.9% YoY to PLN 10.6m in 2018. 3.4 1.9  KDPW Group’s profit: 4.3 1.9  KDPW net

  18. Slide 18: GPW Group’s Consolidated Balance Sheet

    GPW Group’s Consolidated Balance Sheet PLN mn 31.12.2017 31.03.2018 30.06.2018 31.09.2018 31.12.2018  The increase in total assets as of Non-current assets, including among others 596.4 580.7 578.6 575.1 580.4 December 31, 2018 as compared to Property, plant and equipment 110.8 108.7 108.2 106.2 10

  19. Slide 19: Annex: Back-up Slides

    Annex: Back-up Slides

  20. Slide 20: GPW Group’s Consolidated Profit & Loss Account

    GPW Group’s Consolidated Profit & Loss Account PLN mn Q4'17 Q3'18 Q4'18 2017 2018  The YoY decrease in sales revenue was Revenue 92.2 85.7 88.5 352.0 346.8 driven mainly by a decrease of revenue Financial market 51.9 47.1 48.1 208.8 191.9 on the financial market, offset by an Trading 34.6 30.7 30.6

  21. Slide 21: Consolidated statement of Cash Flows

    Consolidated statement of Cash Flows PLN mn 2017 2018  Positive cash flows from operating Cash flows from operating activities, including among others: 159,4 136,5 activities in 2018 down by PLN 22.9m Cash flows from operating activities 216,6 178,2 YoY, mainly due to lower trade payables Net profi

  22. Slide 22: GPW Group’s Revenue Structure

    GPW Group’s Revenue Structure PLN 346,8 mn PLN 153,6 mn Pozostałe przychody (0,4%) Information services 0,4% 0,1% 13,2% Clearing Register of Certificates of Origin Commodity 8,3% Market: Trading - other 3,3% 44.3% 44,3% Trading - property rights 10,9% Trading - gas 3,1% 5,3% Trading - energy GPW Gro

  23. Slide 23: Financial market: Trading in equities

    Financial market: Trading in equities Value of trading in equities and number of transactions Average number of transacions per session (thou.) Value of trading in equities, EOB (PLN bn) 27.1%1 80.2 70.1 73.1 65.9 55.3 51.9 55.5 51.4 48.4 46.4 38.2 251 236 207 220 205 203 204 167 188 190 160 2008 20

  24. Slide 24: Financial market: Trading in derivatives

    Financial market: Trading in derivatives Volume of trading in derivatives Number of Open Interest (thou.) 3.5%2 184.8 168.1 165.0 132.8 137.2 138.1 140.1 143.6 131.0 104.2  Revenue drivers: 80.4 14.7 15.5  Volume of trading in futures 12.6 13.8 12.6 11.3 9.5 8.2 8.0 8.2 7.6  Number of open intere

  25. Slide 25: Financial market: Other instruments and fees paid by participants

    Financial market: Other instruments and fees paid by participants Value of trading on Treasury BondSpot Poland, PLN bn Cash transactions 1.062 3.0%1 Repo transactions 1.037 307 845 450 767 2.1%2 347 599 327 535 260 413 407 196 324 731 612 147 135 498 255 439 84 101 339 338 260  Revenue drivers: 188

  26. Slide 26: Financial market: Listing

    Financial market: Listing Capitalisation of domestic companies Market capitalisation/GDP (%) 6.6%1 Market capitalisation of domestic companies(PLN bn) 36,8% 36,5% 34,8% 34,8% 2 30,7% 32,0% 27,9% 28,9% 30,0% 30,0%  Revenue drivers: 20,0% 671 593 591 579  Capitalisation at YE 421 543 446 523 517 557

  27. Slide 27: Financial and commodity market: Information services

    Financial and commodity market: Information services Number of data vendors Domestic Foreign 13.0%1 78 57 58 58 58 52 54 53 52 36 50 50 37 34 31 37 30 28 27 31 33  Revenue drivers: 32 42  Number of data vendors 19 18 19 20 21 24 27 24 25 25  Number of subscribers 2008 2009 2010 2011 2012 2013 201

  28. Slide 28: Commodity market: Trading in electricity and gas

    Commodity market: Trading in electricity and gas Volume of trading in electricity (TWh)1 Spot Forward 226.1 8.4%2 176.6 186.7 186.7 27.7 23.7 25.1 22.3 139.4 gaz 130.8 126.6 87.9 21.3 111.7 21.7 27.6  Revenue drivers: 13.4 25.2 198.3 154.3 163.0 161.6 109.1 118.1  Volume of trading in electricity

  29. Slide 29: Commodity market: Trading in property rights

    Commodity market: Trading in property rights Trading in property rights (TWh) Green Certificates Cogeneration certificates 62.2 10.9%1 58.9 58.1 59.3 48.8 50.8 50.2 19.9 44.8 26.6 29.8 30.8 13.2 15.1 39.3 9.6 36.0 24.0 29.9 6.8 21.8  Revenue drivers: 42.4 35.7 32.1 35.2 35.6 32.3 26.2 28.3 28.5  V

  30. Slide 30: Commodity market: Register of Certificates of Origin

    Commodity market: Register of Certificates of Origin Volume of issued certificates of origin (TWh) Green certificates 50.7 8.3%1 Cogeneration 48.5 47.2 47.5 41.1 42.2 36.6 37.2 23.4 18.9 24.5 19.9 31.9 15.3 10.8 10.7 29.5 21.6 27.6  Revenue drivers: 11.9 25.8 26.6 25.9 27.3 28.3 27.6  Volume of is

  31. Slide 31: Contact: GPW Investor Relations

    IR events Disclaimer  18-19 March 2019 This presentation has been prepared by Giełda Papierów Wartościowych w Warszawie S.A. (“Warsaw Stock Exchange”, “GPW” or “Company”) for its CEE Capital Markets Conference organised by DM PKO BP and shareholders, analysts, and other contractors. This presentati

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