Flow Traders Ltd · EURONEXT:FLOW
Flow Traders — FY2017 Earnings Presentation
23 slides from Flow Traders's earnings presentation, Feb 9, 2018
Slide 1: 4Q17 / FY17 results Analyst Presentation
4Q17 / FY17 results Flow Traders N.V. Analyst Presentation 09 February 2018 Amsterdam Cluj Hong Kong New York Singapore Flow Traders |
Slide 2: Disclaimer
Disclaimer This presentation is prepared by Flow Traders N.V. and is for information purposes only and the material contained Forward-looking statements speak only as at the date at which they are made. Flow Traders expressly disclaims in this document is provided ‘as is’. It is not a recommendation
Slide 3: NTI up 24% in 4Q17 driven by strong performance in EMEA and APAC
NTI up 24% in 4Q17 driven by strong performance in EMEA and APAC Next to strong performance in 4Q17, Flow Traders reports strong start of 2018 ETP market dynamics Flow Traders Underlying ETP market continued to grow with assets under Flow Traders’ 4Q17 ETP Value Traded rose to € 164bn (+1% Q-o-Q), w
Slide 4: Secular ETP market trends intact and volumes slightly up in 4Q17
Secular ETP market trends intact and volumes slightly up in 4Q17 Global ETP Assets under Management (AuM) grew 19% in 2017 in EURO terms to almost € 4tn Net flow* trends show year end pickup in Equity ETPs in 4Q17 Number of ETP listings in 4Q17 consistent with upward secular trends 3,962 4,000 177 3
Slide 5: Preliminary impact MiFID II: Increase in volumes noticed on MTFs
Preliminary impact MiFID II: Increase in volumes noticed on MTFs, comprehensive data remains pending 60% Percentage change in traded volumes on MTFs * 50% 40% 30% 20% 10% 0% 2017-6 2017-7 2017-8 2017-9 2017-10 2017-11 2017-12 2018-1 -10% Months -20% *: Sourcs: Tradeweb, Bloomberg RfQ, Fidessa, RfQ H
Slide 6: Sound rebound in NTI in 4Q17 driven by EMEA and APAC
Sound rebound in NTI in 4Q17 driven by EMEA and APAC KPIs Flow Traders Flow Traders NTI (in €m) In €bn unless otherwise stated 4Q17 3Q17 ∆ FY17 FY16 ∆ 350.0 304.7 Flow Traders ETP Value Traded 164.0 162.3 1% 685.8 640.1 7% 300.0 64.5 250.0 Europe 103.5 96.1 8% 418.3 417.6 0.2% 250.0 Americas 54.6 60
Slide 7: EMEA
EMEA Amsterdam Cluj Hong Kong New York Singapore Flow Traders |
Slide 8: Wider margins and growing market share in EMEA in 4Q17
Wider margins and growing market share in EMEA in 4Q17 KPIs EMEA (Europe) Europe NTI (in €m) In €bn unless otherwise stated 4Q17 3Q17 ∆ FY17 FY16 ∆ ETP AuM (end of period) (*) 660 627 5% 660 541 22% 200 182.5 EMEA ETP Value Traded (**) 198 194 2% 851 973 (12%) 180 33.4 157.5 160 Flow Traders ETP Val
Slide 9: AMERICAS
AMERICAS Amsterdam Cluj Hong Kong New York Singapore Flow Traders |
Slide 10: Substantial market outperformance in the US in FY17; OTC trading growing as planned
Substantial market outperformance in the US in FY17; OTC trading growing as planned KPIs Americas Americas NTI (in €m) In €bn unless otherwise stated 4Q17 3Q17 ∆ FY17 FY16 ∆ ETP AuM (end of period)(*) 2,949 2,764 7% 2,949 2,498 18% Americas ETP Value Traded(**) 3,807 3,527 8% 15,727 18,298 (14%) 80
Slide 11: APAC
APAC Amsterdam Cluj Hong Kong New York Singapore Flow Traders |
Slide 12: Strong performance and growth in NTI in 4Q17 in APAC
Strong performance and growth in NTI in 4Q17 in APAC KPIs APAC (Asia) APAC NTI (in €m) In €bn unless otherwise stated 4Q17 3Q17 ∆ FY17 FY16 ∆ ETP AuM (end of period)(*) 354 327 8% 354 283 25% 80 71.3 APAC ETP Value Traded(**) 620 433 43% 1,941 2,016 (4%) 70 APAC ETP Value Traded ex China(**) 226 170
Slide 13: Financial Review
Financial Review Flow Traders | 4Q17/FY17 results 13
Slide 14: FY17 fixed cost guidance at lower end of 15-20% range, reiterating FY18 guidance
FY17 fixed cost guidance at lower end of 15-20% range, reiterating FY18 guidance 4Q17 vs. FY17 vs. Consolidated (in €m) 4Q17 3Q17 3Q17 FY17 FY16 FY16 Net Trading Income 39.3 31.7 24% 166.0 250.0 (34%) Employee expenses (fixed) 8.8 8.1 9% 32.2 25.9 24% Technology expenses 9.3 9.2 1% 37.3 34.8 7% Othe
Slide 15: Capital position remains robust; final dividend proposed at € 0.35
Capital position remains robust; final dividend proposed at € 0.35 Condensed consolidated Financial Position Development of regulatory solvency ratio* Condensed Balance Sheet (In €m) 3.60 Assets 31 Dec 2017 31 Dec 2016 ∆ Y-o-Y 500 4.00 450 Trading Capital 272 343 (71) 2.42 2.27 2.19 2.14 3.00 400 2.
Slide 16: Flow Traders expects to comply with CRR capital requirements by 31 March 2018
Flow Traders expects to comply with CRR capital requirements by 31 March 2018 In November 2017 the Dutch Central Bank (DNB) revoked the local firm exemption granted to our Dutch trading entity, imposing full CRR capital requirements going forward External validation has taken place on our assumption
Slide 17: Looking Back and Ahead
Looking Back and Ahead Flow Traders | 4Q17/FY17 results 17
Slide 18: Accomplishments made on our core competencies in 2017
Accomplishments made on our 4 core competencies in 2017 • In ETP Pricing, Flow Traders: - grew the number of counterparties and products traded in every region - further diversified trading in different products and asset classes (Currencies, Fixed Income) and expand OTC trading in the US ETP - grew
Slide 19: Our strategic focus remains on long term organic growth and maximizing NTI growth
Our strategic focus remains on long term organic growth and maximizing NTI growth Flow Traders will continue to focus on growing organically and remain a leading technology-enabled ETP liquidity provider Flow Traders will continue to grow its global presence with a strong focus on the Americas and A
Slide 20: Questions?
Questions? Flow Traders | 4Q17/FY17 results 20
Slide 21: Thank you!
Thank you! Amsterdam Cluj HongFlow Kong Traders New | York Singapore
Slide 22: Appendix
Appendix Flow Traders | 4Q17/FY17 results 22
Slide 23: Monthly markets update as published over 2017
Monthly markets update as published over 2017 ETP Market Update December 2017 Dec Nov Oct Sep Aug Jul Jun May Apr Mar Feb Jan On & Off Exchange Val ue Traded - Gl obal (€bn) 1,656 1,570 1,400 1,344 1,522 1,287 1,769 1,557 1,515 1,918 1,408 1,573 On & Off Exchange Val ue Traded - EMEA (€bn) 65 72 61