Gielda Papierow Wartosciowych W Warszawie S.a. · GPW:GPW
Gielda Papierow Wartosciowych W Warszawie — Giełda Papierów Wartościowych w Warszawie S.A. (WSE) — Q1 2011 Earnings Presentation
25 slides from Gielda Papierow Wartosciowych W Warszawie's earnings presentation, May 2011
Slide 1: Presentation of WSE Group quarterly results Q1 2011
Warsaw Stock Exchange in Q1 2011 Presentation of WSE Group quarterly results
Slide 2: WSE – the Central and Eastern Europe Exchange
WSE – the Central and Eastern Europe Exchange - countries of origin for companies listed on WSE’s markets (as of 9.05.2011) Q1 2011: expanding footprint in the region, delivering superior results Executing our strategy gives tangible results 45 out of the 95 IPOs in Europe in Q1 (47%)1 7 out of the
Slide 3: Financials at a glance
Financials at a glance Significant earnings expansion in Q1 2011 in PLN m Q1/10 Q1/11 change in Q1 2011 vs Q1 2010 +28.1% +40.7% +49.8% +45.1% 69.2 54.0 47.9 38.5 38.6 34.1 25.7 26.6 Revenues EBITDA (EBIT + share of profit of EBIT Net profit associates + D&A) 3
Slide 4: Equity trading, Main Market
Equity trading, Main Market Value of equity trading – Main Market (PLN bn) Q1 2011 equity trading breakdown (PLN bn) Session trades Block Trades 3.9 Value of block trading varied highly in the last five quarters 11.8 3.9 6.9 2.7 6.1 63.9 53.8 57.9 49.6 New record of quarterly 45.6 session trading va
Slide 5: Equity trading, Main Market and NewConnect
Equity trading, Main Market and NewConnect Market indicators – Main Market Equity trading value – NewConnect (PLN m) Free float (%) Session trades Block trades Average daily number of trades (thousands) 70 Average value of trades (session, PLN thousands) 36.6 60 57.3 52.6 2.0 47.2 47.9 50 45.9 40 44
Slide 6: Derivatives trading, quarterly development
Derivatives trading, quarterly development Total trading volumes up in Q1 2011 over Q4 and Q3 2010 Trading volume in m (LHS)1 WIG20 futures Stock futures Options Other (mWIG40 futures, currency futures, miniWIG20 participation units) Increase of WIG20 futures 5 450 Total open interest (thousands, RH
Slide 7: Derivatives trading, gradual diversification
Derivatives trading, gradual diversification Product diversification continues in Q1 2011 as share One of European market leaders in stock index of WIG20 futures in turnover drops to 88% futures with upside potential Options Other Stock futures 7% 1% EUREX 72.2% 4% WIG20 futures Liffe NYSE Euronext
Slide 8: WSE – central pool of liquidity in the CEE
WSE – central pool of liquidity in the CEE 8
Slide 9: Executing WSE strategy
Executing WSE strategy Internationalizing WSE’s business and solidifying its position as a regional financial hub Continue to attract foreign market participants to the WSE platforms Strengthen WSE’s position as the pre-eminent stock exchange in CEE Diversifying and expanding WSE’s business through
Slide 10: Regional financial hub
Regional financial hub Domestic market capitalization (EUR bn)1 Equity turnover (EUR bn)2 144.9 31.12.2010 31.03.2011 2010 Q1 2011 52.3 94.0 36.8 19.9 16.3 15.3 35.2 23.5 9.3 15.3 4.4 3.6 6.6 6.0 3.9 0.5 0.5 0.4 0.1 0.3 0.1 0.02 0.01 WSE Vienna Prague Budapest Bucharest Ljubljana Sofia Bratislava WS
Slide 11: On-going internationalization
On-going internationalization Growing number of remote exchange members… Local Remote In January 2011 two new brokers joined WSE 51 49 46 49 wide range of market participants 43 Dragon Capital (Ukraine) and Equilor Investment 35 18 21 23 (Hungary) represent regional brokers offering 31 18 17 26 10 b
Slide 12: Expanding WSE’s business and product offering
Expanding WSE’s business and product offering Treasury BondSpot Poland NewConnect Catalyst Value of turnover in cash and Total turnover value (PLN m) Issue value and series listed Repo/BSB (PLN bn) Issue value (bn PLN) - rhs Number of series - lhs Cash Repo/BSB 109 114 120 40 176.2 35 100 86 30 80 6
Slide 13: Enhancing WSE’s attractiveness to a widening range of market participants
Enhancing WSE’s attractiveness to a widening range of market participants Drivers of development Potential for further growth through: 140 LSE Continued “equitization” primarily Market Cap to GDP – „Equitization” – 2010 (%) 120 through increasing private sector capital raisings and further privatiza
Slide 14: Financial performance
2 1991-2011 WARSAW STOCK EXCHANGE Financial performance
Slide 15: Consolidated P&L account
Consolidated P&L account Q1 powered by rising trading volumes and disciplined approach to costs PLN m Q1/10 Q1/11 change Sales revenue (PLN m) Operating expenses (PLN m) Revenues 54.0 69.2 28.1% 69.2 Operating expenses 28.4 31.1 9.3% Other income 0.2 0.6 60.2 57.5 Other expenses 0.0 0.2 54.0 54.0 Op
Slide 16: Profits, quarterly development
Profits, quarterly development Expanding business defined by high levels of cash generation in PLN m 1 EBITDA EBIT Net profit 47.9 38.5 38.6 34.1 33.8 30.6 27.1 27.8 25.7 26.6 24.1 22.1 22.2 18.2 16.9 Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Net profit rose by 112% and EBITDA nearly doubled in Q1 2011 vs Q4 20
Slide 17: Consolidated revenues
Consolidated revenues Strong performance across all business lines in Q1 2011 vs Q1 2010 in PLN m Listing Other 7.7% +33.5% 54.8 1.2% Trading 41.1 Information revenues services 11.9% +15.4% 5.3 Lisitng 4.6 revenues Other revenues from members Total Q1 Information +4% 8.2 services 7.9 1.7% 2011 reven
Slide 18: Operating expenses overview
Operating expenses overview Single-digit increase in Q1 2011 vs Q1 2010 Depreciation and amortization Fees and taxes Rent and other maintenance fees Other operating expenses Salaries and other employee costs up by 24.7% vs Q1 External services Other employee costs 2010, down 9.5% vs Q4 2010 Salaries
Slide 19: Profitability measures
Profitability measures High profits mark an exceptional quarter for the WSE EBITDA (EBIT + share of profit of associates + D&A, PLN m, LHS) Net profit (PLN m, LHS) ROE 1(RHS) EBITDA margin (RHS) 60 80% 19.2% 69.3% 50 18.1% 20% 70% 45 18% 50 63.1% 40 14.2% 16% 58.7% 35 12.7% 14% 56.8% 60% 47.9 30 12%
Slide 20: Investor Relations
Investor Relations ir@gpw.pl ul. Ksiazeca 4 00-498 Warsaw Poland Disclaimer This presentation has been prepared by Giełda Papierów Wartościowych w Warszawie S.A. (the “Company” or “WSE”) solely for use by its shareholders, clients or analysts and should not be treated as a part of any invitation or
Slide 21: Appendix
WARSAW STOCK EXCHANGE 2G 1991-2011 Appendix
Slide 22: Derivatives trading, high-growth products
Derivatives trading, high-growth products Index options… Options turnover volume (thousands, LHS) Open interest (thousands, RHS) 200 108 120 New market makers in index Open interest higher at end of each month prior to series expiry date for three consecutive quarters, at over 100 100 options help s
Slide 23: Selected revenue streams, quarterly
Selected revenue streams, quarterly Fixed income revenue Revenues from fixed income trading (PLN m) Fixed income revenue gets a boost from TBS Poland volumes Revenue up by 53.3% vs Q1 2010 Growth not proportionate to rise 3.1 in volumes due to price-list 2.0 2.0 2.3 2.3 structure (incl. flat-rate fe
Slide 24: EBIT growth breakdown
EBIT growth breakdown Trading revenues contribute most to EBIT growth. Cost increase in line with guidance in PLN m Total revenues up by PLN 15.6m Total costs up by PLN 2.8m 0.3 0.4 0.4 0.1 2.6 13.7 0.7 38.5 25.7 Q1/10 EBIT Increase in Increase in Increase in Increase in Increase in Increase in Incr
Slide 25: Balance sheet overview
Balance sheet overview Consolidated statement of financial position PLN m Q4/10 Q1/11 Non-current assets 337.7 395.9 Property and equipment 119.5 117.2 Investments in associates 139.0 144.1 Available-for-sale financial assets 11.8 66.3 Financial assets held-to-maturity 0.0 0.0 Other non-current asse
Giełda Papierów Wartościowych w Warszawie S.A. (WSE) — Q1 2011 Earnings Presentation on 6ix