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

Gielda Papierow Wartosciowych W Warszawie — Giełda Papierów Wartościowych w Warszawie S.A. (GPW) — Q2 2019 Earnings Presentation

32 slides from Gielda Papierow Wartosciowych W Warszawie's earnings presentation, Aug 1, 2019

  1. Slide 1: GPW Group’s Financial Results Q2 2019

    GPW Group’s Financial Results Q2 2019 1 August 2019

  2. Slide 2: Summary of the GPW Group’s Activity in Q2 2019

    Summary of the GPW Group’s Activity in Q2 2019 Financial Results of the GPW Group in Q2 2019

  3. Slide 3: GPW Group in Q2 2019: On track towards more diversification

    GPW Group in Q2 2019 On track towards more diversification Growth of revenue Growth of net profit Dividend payment from commodity market +74% QoQ PLN 3.18 per share +0.9% YoY 77.1% dividend +25.7% QoQ - net of one-offs payout ratio +8.9% YoY Launch of R&D work Research Coverage to develop Lunch of S

  4. Slide 4: GPW versus peers: equity trading

    GPW versus peers Electronic Order Book (EOB) trading in shares 49,6% H1'2017/H12016 H1'2018/H12017 H1'2019/H12018 43,0% 31,6% 33,0% 26,3% 22,4% 23,0% 11,1% 10,1% 11,0% 13,0% 9,0% 6,1% 2,6% 3,7% 0,7% 1,5% 3,0% -2,2% -7,0% -5,7% -6,9% -7,8% -7,8% -9,2% -10,0% -10,5% -17,0% -12,7% -14,6% -15,9% -17,6%

  5. Slide 5: GPW versus peers: share price change in H1 2019

    GPW versus peers P/E 2019e vs. share price change in H1’19 40,0 Positive return in H1’19 ASX + LSE low P/E 2019e TMX Euronext 30,0 MOEX HK 20,0 GPW Nasdaq DB Share price change in H1 2019 (%) ICE India Mexico Singapore NZX 10,0 CBOE Malaysia CME P/E 2019e 0,0 5,0 10,0 15,0 Japan 20,0 25,0 30,0 35,0

  6. Slide 6: Very good financial results in Q2 2019

    Very good financial results in Q2 2019 Sales revenue Net profit PLN mn PLN mn  Sales revenue +5.9% Sales revenue up by 5.9% QoQ 89.1 +74.0% and 2.9% YoY in Q2’19. 86.6 84.2 79.0 +2.9% -46.1%  Net profit Aquis 36.8 Net profit up by 74% QoQ and down 42.6 by 46.1% YoY in Q2’19 (Q2’18 included sale 24

  7. Slide 7: Weak investor activity in Q2’19

    Weak investor activity in Q2’19  Velocity ratio at 30.2% in Q2’19 vs. 30.7% in Value of EOB trading on the Main Market Q2’18 and 32.8% in Q1’19. EOB Trading Turnover velocity PLN mn  WIG20 in Q2’19 gained 0.7% QoQ and 9.0% 42,6% 80 39,8% 45 ,0% YoY, index WIG gained 0.9% QoQ and 7.6% 34,9% 70 33,3

  8. Slide 8: Trading in derivatives

    Trading in derivatives Volume of trading in derivatives mn -23.2% 2.11 2.22  Total volume of trading in derivatives at 1.60 mn 1.98 2.08 in Q2’19 vs. 2.08 mn in Q2’18, down by 23.2% YoY. 1.67 1.73 1.76 1.71 1.60  Volume of trading in WIG20 futures at 0.89 mn in Q2’19 vs. 1.10 mn in Q2’18, down by

  9. Slide 9: Strong commodity market in Q2’19

    Strong commodity market in Q2’19 Volume of spot and forward trading in  Electricity market: Total volume of trading in electricity at 52.9 electricity and gas TWh in Q2’19 (-3.3% YoY, +19.5% QoQ). The volume of spot transactions at 8.4 TWh (+30.1% YoY, -1.5% QoQ). The volume Energy (TWh) Gas (TWh)

  10. Slide 10: Financial Results of the GPW Group in Q2 2019

    Summary of the GPW Group’s Activity in Q2 2019 Financial Results of the GPW Group in Q2 2019

  11. Slide 11: Increase of revenue and EBITDA margin

    Increase of revenue and EBITDA margin Net profit and net profit margin Revenue EBITDA and EBITDA margin PLN mn PLN mn 91.2% 62.7% 59.5% 59.6% 64.6% 43.9% 42.0% 47.7% +2.9% 45.8% 29.1% PLN mn 86.6 85.7 88.5 89.1 84.2 -46.2% +6.1% 79.0 57.6 54.3 52.7 51.0 36.8 38.6 42.6 37.6 37.1 24.5 42.2 Q2’18 Q3’18

  12. Slide 12: Trading revenue on the financial market

    Trading revenue on the financial market Q2’19: 31,9% Trading revenue – financial market  Trading revenue on the financial market at PLN 28.4 PLN mn mn in Q2’19 (-5.6% YoY and -11.2% QoQ) – mainly due to a lower value of trading in equities.  Average EOB turnover in shares per session at PLN -5.6%

  13. Slide 13: Listing revenue

    Listing revenue Q2’19: 5,7% Listing revenue PLN mn  One debut on the Main Market (BoomBit) and one transfer from NewConnect to the Main Market (Pharmena) in Q2’19. -13.2%  Five IPOs on NewConnect in Q2’19. 5.8 5.7 5.4 5.3  Total trading revenue at PLN 5.1 mn vs. PLN 5.3 mn 5.1 -3.9% in Q1’19 and

  14. Slide 14: Revenue from information services – financial market

    Revenue from information services – financial market Q2’19: 13,4%  New clients of GPW and WIBOR data in different Revenue from information services market segments attracted in Q2’19: PLN mn ✓ 2 data vendors ✓ 2 non-display clients +7.5% ✓ 1 client using GPW data in proprietary indices 12.2 12.0 11

  15. Slide 15: Rising volumes on the electricity and gas market

    Rising volumes on the electricity and gas market Q2’19: 24,8%  Revenue from trading in electricity up by 7.9% QoQ to PLN 3.5 Trading revenue – commodity market mn in Q2’19 and down by PLN 0.8 mn YoY (mainly due to a lower turnover on the forward market, down by 7.9% YoY). PLN mn  Revenue from trad

  16. Slide 16: Revenue from clearing

    Revenue from clearing Q2’19: 13,7% Revenue from clearing  Revenue from clearing up by 15.9% YoY and 12.3% QoQ PLN mn in Q2’19 mainly driven by an increase in volumes of +15.9% trading in property rights and in gas. 12.9  Revenue from the operation of the Register of Certificates 12.2 10.5 11.1 10.

  17. Slide 17: Operating expenses impacted by GPW Group growth

    Operating expenses impacted by GPW Group growth  The Group’s operating expenses at PLN 43.3 mn in Q2’19 (+8.4% YoY and Operating expenses: +8.4% YoY and -20.2% QoQ -20.2% QoQ) PLN mn  Cost/income ratio(C/I)2 at 48.6% in Q2’19 vs. 64.5% in Q1’19 and 46.2% 54,3 in Q2’18 43,0 42,4 12,9 43,3  Depreci

  18. Slide 18: Share of the results of entities measured by the equity method

    Share of the results of entities measured by the equity method Share of the results of entities measured by the equity method  Group’s share of the results of entities PLN mn PAR CG measured by the equity method at PLN 3.6 mn 4.47 KDPW in Q2’19 (-18.6% YoY and +267.9% QoQ). 3.64 3.41  KDPW: ✓ The

  19. Slide 19: GPW Group’s consolidated statement of financial position

    GPW Group’s consolidated statement of financial position  Increase of total assets YTD as at 30 June 2019 mainly driven by an increase of cash and cash equivalents.  Decrease of financial assets measured at amortised cost by PLN 159.8 mn YTD as at 30 June 2019 mainly due to a decrease in held corp

  20. Slide 20: Annex – Back-up Slides

    Annex – Back-up Slides

  21. Slide 21: GPW Group’s consolidated statement of comprehensive income

    GPW Group’s consolidated statement of comprehensive income  YoY increase of revenue in Q2’19 mainly driven by an increase of revenue on the commodity market.  Operating expenses increased by PLN 3.3 mn YoY in Q2’19 mainly due to an increase of salaries and other employee costs (up by PLN 2.7 mn ma

  22. Slide 22: GPW Group’s consolidated statement of cash flows

    GPW Group’s consolidated statement of cash flows • Positive cash flows from operating activities in H1 2019 increased by PLN 48.9 mn YoY mainly due to higher trade payables (up by PLN 23.3 mn in H1 2019, down by PLN 2.5 mn in H1 2018) combined with an increase of other payables (up by PLN 14.7 mn in

  23. Slide 23: GPW Group’s revenue structure

    GPW Group’s revenue structure 156.1 PLN mn 347.5 PLN mn Other revenue (0,4%) 0,2% Information services 0,4% 13,6% Clearing Register of Certificates of Origin 8,4% Commodity Trading - other Market: 3,4% 44,9% 44,9% Trading - property rights 10,8% Trading - gas 3,5% 5,1% Trading - energy GPW Group’s r

  24. Slide 24: Financial market: Trading in equities

    Financial market: Trading in equities Value of trading in equities and number of transactions Average number of transactions per session (thous.) Value of trading in equities, EOB (PLN mn) 23.4%1 80.2 70.1 73.1 71.5 72.5 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

  25. Slide 25: Financial market: Trading in derivatives

    Financial market: Trading in derivatives Volume of trading in derivatives Number of Open Interest (thous.) 2.7%2 184.8 179.1 168.1 165.0 164.2 132.8 137.2 138.1 140.1 143.6 131.0 104.2  Revenue drivers: 80.4 ✓ Volume of trading in futures 14.7 15.5 12.6 13.8 11.3 12.6 9.5 8.2 8.0 8.2 7.6 ✓ Number o

  26. Slide 26: 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 2.7%1 Repo transactions 1.037 1.062 307 845 450 767 2.9%2 347 327 599 535 260 413 407 196 324 731 147  Revenue drivers: 135 612 498 255 87 439 84 101 339 338 29 8

  27. Slide 27: Financial market: Listing

    Financial market: Listing Capitalisation of domestic companies Market Capitalisation/GDP (%) 5.7%1 Market Capitalisation of domestic companies (PLN bn) 36.8% 36.5% 34.8% 34.8% 32.0% 27.9% 28.9% 30.0% 27.4%  Revenue drivers: 671 593 591 579 569 594 ✓ Capitalisation at YE 543 523 517 557 446 ✓ Value

  28. Slide 28: Financial and commodity market: Information services

    Financial and commodity market: Information services Number of data vendors Domestic Foreign 13.4%1 82 78 73 57 58 58 58 38 52 54 53 52 36 50 35 37 34 31 37 30 28 27  Revenue drivers: 32 33 42 38 44 ✓ Number of data vendors 18 19 20 21 24 27 24 25 25 ✓ Number of subscribers 2009 2010 2011 2012 2013

  29. Slide 29: Commodity market: Trading in electricity and gas

    Commodity market: Trading in electricity and gas Volume of trading in electricity (TWh)1 Spot 226.1 7.4%2 Forward 27.7 186.7 186.7 176.6 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 54.7 52.9 109.1 118.1 6.4 ✓ Volume of trading i

  30. Slide 30: Commodity market: Trading in property rights

    Commodity market: Trading in property rights Spot trading in property rights (TWh) Green Certificates 62,2 14.0%1 Cogeneration certificates 58,9 59,3 58,1 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 21,9  Revenue drivers: 42,4 21,0 35,7 32,1 8,2 35,2 35,6 32,3

  31. Slide 31: 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 10.0%1 47.2 48.5 47.5 Cogeneration 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 13.6 25.8 26.6 25.9 27.3 28.3 27.6 ✓ Volume

  32. Slide 32: IR events and Contact: GPW Investor Relations

    IR events Disclaimer  28-30 August 2019 This presentation has been prepared by Giełda Papierów Wartościowych Best of Poland, mBank, Frankfurt w Warszawie S.A. (“Warsaw Stock Exchange”, “GPW” or “Company”) for its shareholders, analysts, and other contractors. This presentation has been prepared  3

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