Gielda Papierow Wartosciowych W Warszawie S.a. · GPW:GPW
Gielda Papierow Wartosciowych W Warszawie — Giełda Papierów Wartościowych w Warszawie S.A. (WSE) — Q3 2013 Earnings Presentation
45 slides from Gielda Papierow Wartosciowych W Warszawie's earnings presentation, October 2013
Slide 1: Presentation of WSE Group Results in Q3 2013
PRESENTATION OF WSE GROUP RESULTS IN Q3 2013 OCTOBER 2013
Slide 2: WSE Group in Q3 2013
WSE Group in Q3 2013 Organic growth Strengthening WSE’s international position Development of the product offer Acquisition of shares in Aquis Exchange New services: co-location Continued negotiations with CEESEG PolPX: obligation to sell gas on the exchange drives market growth New listing of the f
Slide 3: Trading in shares on Main Market
Trading in shares on Main Market Value of trading in shares on Main Market, PLN bn Main Market parameters Session trades Block trades Total trades 60.9 58.8 71.1 54.1 54.9 53.2 61.1 61,6 52.5 15.4 47 47.8 5.0 8.0 47 47 7.3 45 2.5 46 37.5 55.7 56.1 35.1 40.2 41.3 53.5 45.1 45.4 36.8 TOP5 share in tur
Slide 4: New quality on WSE
New quality on WSE WIG30 WSE started to publish WIG30 on 23 September 2013 WIG30 reflects the qualitative change on the Polish capital market in the last two decades Objective: to improve liquidity of companies in the index portfolio, to reduce concentration of trade in the current top 20 stocks, to
Slide 5: Strengthening WSE's position in Europe
Strengthening WSE’s position in Europe WSE and Aquis Exchange Ltd.: August 2013 – agreement to form an alliance Under the terms of the agreement: WSE to aquire shares representing 30% of the total vote at the Aquis Exchange GM and 30% of economical rights WSE nominated Adam Maciejewski and Paweł Czu
Slide 6: WSE v. European markets
WSE v. European markets Growth rate of the value of trading on European exchanges, Q1-Q3 2013 versus Q1-Q3 20121 Value of equities trading on WSE in Q1-Q3 2013 increased by European Exchanges -2.0% 16.1% YoY CEE region 9.7% Value of trading in CEE in Q1-Q3 2013 increased by 9.7% YoY Bulgarian SE 202
Slide 7: Trading in derivatives on WSE
Trading in derivatives on WSE Volume of trading in derivatives (by quarter, mn instruments) WIG20 contracts Currency futures Options Other Volume of trading in derivatives increased by 1.9% 3.17 3.37 3.43 QoQ and by 25.2% YoY in Q3 2013 as a result of more 2.74 2.65 active trading in futures and opt
Slide 8: Non-Treasury bond market – Catalyst
Non-Treasury bond market – Catalyst Growth of Poland’s non-Treasury debt market Catalyst (non-Treasury debt) (value of issue at the end of a period, PLN bn) 381 407 70 400 361 Municipal bonds 350 325 60 15.0 16.6 300 50 Bank bonds 250 208 40 43.3 44.7 200 Corporate bonds 30 150 97 Commercial papers
Slide 9: Commodity market
Commodity market Electricity market Gas market Total volume of spot and forward trade in electricity was 55.6 TWh in • PFSA has approved Polish Power Exchange Rules enabling Q3 2013 (increase of 51.3% QoQ and 67.6% YoY) direct access of interested companies to the gas market as of 1 November 2013. T
Slide 10: WSE Group financials
WARSAW STOCK EXCHANGE & WSE Group financials
Slide 11: Key financials of WSE Group
Key financials of WSE Group Revenue (PLN mn) Net profit (PLN mn) EBITDA 1 (PLN mn) 5.1% 0.2% 3.6% 42.1 51.4 74.1 79.4 65.7 64.6 69.0 38.8 37.4 25.9 26.0 32.0 31.4 20.1 17.0 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Operating profit in Q3 2013: PLN 28.5
Slide 12: Revenue from the Financial Market
Revenue from the Financial Market [PLN’000] Q3 2013 Q3 2012 YoY Q2 2013 QoQ Total revenues 69 000 65 663 5.1% 64 557 6.9% Financial market 49 507 49 862 -0.7% 51 701 -4.2% Trading, including: 35 732 35 837 -0.3% 37 543 -4.8% Shares 26 094 23 738 9.9% 26 946 -3.2% Derivatives 5 451 6 278 -13.2% 5 624
Slide 13: Revenue from the Commodity Market
Revenue from the Commodity Market [PLN’000] Q3 2013 Q3 2012 YoY Q2 2013 QoQ Total revenues 69 000 65 663 5.1% 64 557 6.9% Financial market 49 507 49 862 -0.7% 51 701 -4.2% Commodity market 18 710 14 789 26.5% 12 307 52.0% Trading: 10 743 7 237 48.5% 6 501 65.3% Electricity 4 100 2 816 45.6% 2 634 55
Slide 14: Structure of WSE Group revenue
Structure of WSE Group revenue Commodity market represents 26.8% of WSE Group revenues and financial market represents 72.2% of WSE Group revenues in the period Q1 – Q3 2013 Structure of revenues, Q1 – Q3 2013 1.0% Clearing Register of certificates of Origin 7.2% 5.9% Trading property rights Trading
Slide 15: Cost discipline in Q3 2013
Cost discipline in Q3 2013 Operating expenses (PLN mn) Structure of expenses1 PLN’000 Q3 2013 Q3 2012 YoY Q2 2013 QoQ Depreciation and Expenses 40 241 34 438 16.9% 44 030 -8.6% 6% amortisation 15% Salaries Depreciation and amortisation 6 921 4 096 69.0% 7 922 -12.6% 19% Rent Salaries 14 226 14 903 -
Slide 16: Indicators and profitability
Indicators and profitability Return on equity (ROE) 1 Operating profit margin EBITDA margin2 55.8% 57.0% 56.2% 21.4% 18.9% 18.3% 48.7% 41.3% 32.0% Q3 12 Q2 13 Q3 13 Q3 12 Q2 13 Q3 13 Q3 12 Q2 13 Q3 13 P/E estimated at 2013 profit targets3 80 70 60 50 40 average3 30 17.0 19.9 20 10 0 1 Net profit for
Slide 17: WSE Group Balance Sheet
WSE Group Balance Bilans Sheet Grupy GPW PLN’000 30.09.2013 30.06.2013 31.12.2012 30.09.2012 Non-current assets, including: 574 749 568 880 512 004 518 215 Intangible assets increased as a Plant and property 120 622 128 000 133 115 133 864 result of UTP implementation Intangible assets 272 388 268 3
Slide 18: Contact
Contact WSE Investor Relations tel. +48 22 537 72 50 ir@gpw.pl http://www.gpw.pl/relacje_inwestorskie Warsaw Stock Exchange ul. Książęca 4, 00-498 Warsaw, Poland tel. +48 22 628 32 32 gpw@gpw.pl www.gpw.pl Disclaimer This presentation has been prepared by Giełda Papierów Wartościowych w Warszawie S.
Slide 19: Additional financial data
Additional financial data -19-
Slide 20: Consolidated profit and loss account
Consolidated profit and loss account in PLN thousand, under IFRS Q3 2013 Q2 2013 Q1 2013 4Q 2012 3Q 2012 2Q 2012 1Q 2012 2012 Revenue 69 000 64 557 79 358 74 114 65 663 70 110 63 938 273 825 Financial market 49 507 51 701 52 519 49 983 49 862 51 341 56 958 208 144 Trading 35 732 37 543 38 182 35 534
Slide 21: Balance sheet - assets
Balance sheet - assets in PLN thousand, under IFRS Q3 2013 Q2 2013 Q1 2013 4Q 2012 3Q 2012 2Q 2012 1Q 2012 2012 Non-current assets 574 749 568 880 579 151 512 004 518 215 516 251 513 308 512 004 Tangible fixed assets 120 622 128 000 131 182 133 115 133 864 134 649 129 332 133 115 Intangible fixed as
Slide 22: Balance sheet - liabilities
Balance sheet - liabilities in PLN thousand, under IFRS Q3 2013 Q2 2013 Q1 2013 4Q 2012 3Q 2012 2Q 2012 1Q 2012 2012 Equity 609 024 584 102 600 756 555 890 537 534 525 409 560 793 555 890 Share capital 63 865 63 865 63 865 63 865 63 865 63 865 63 865 63 865 Other reserves 1 129 1 920 1 806 -1 000 -2
Slide 23: External services, financial ratios
External services, financial ratios Twel ve-month peri od ended December, 31 i n PLN thous a nd, under IFRS 2012 2011 cha nge y-o-y External services 33 718 36 235 -7% Bui l di ng renova ti ons a nd ma i ntena nce 12 033 11 914 1% Adverti s i ng expens es 5 334 6 897 -23% El ectroni c da ta tra ns f
Slide 24: Cash flows statement
Cash flows statement in PLN thousand, under IFRS 2012 2011 Cash flows from operating activities 126 926 129 986 Cash generated from operations 159 334 152 444 Income tax paid -32 408 -22 458 Cash flows from investing activities -38 167 18 528 Purchases of property and equipment -13 482 -20 717 Proce
Slide 25: Revenues – trading: financial market
Revenues – trading: financial market Shares (PLN m) Derivatives (PLN m) Fixed income (PLN m) Other1 (PLN m) 29.4 27.8 26.9 26.1 23.5 23.7 24.6 3.8 3.6 4.1 3.5 3.4 3.5 7.3 7.7 6.3 2.8 1.8 1.8 1.7 1.8 1.6 1.5 1.4 5.7 5.3 5.6 5.5 Trading, financial market (PLN m) 42.2 38.2 37.5 36.5 35.8 35.5 35.7 Q1/1
Slide 26: Revenues – listing and information services
Revenues – listing and information services Listing (PLN m) Information services (PLN m) Total Number of subscribers ('000) Revenues from information services Annual fees Introduction, listing fees and others 298.2 297.0 5.7 285.1 288.1 280.7 5.3 5.5 5.5 5.6 5.2 258.0 5.2 255.9 9.4 4.3 4.4 4.3 9.3 4
Slide 27: Profit of associates and net financial income
Profit of associates and net financial income Share of profit of associates (PLN’000) Net financial income (PLN m) KDPW Group (WSE stake: 33.33%) Centrum Giełdowe (WSE stake: 24.79%) Total 4,577 4,649 0.9 3,386 2,849 3,957 1 2,013 4,693 1,738 3,041 915 2,898 1,941 1,563 -0.3 -0.4 620 743 450 172 334
Slide 28: Transaction fees
Transaction fees Average transaction fee on equities Main Market (bp)1 New transaction fees as of 2013 2.7 2.6 2.5 2.4 Reduction of transaction fees on equities markets (Main Market and NewConnect) Reduced transaction fees for day trading in futures Reduced market maker fees 2010 2011 2012 H
Slide 29: Additional market data
WARSAW STOCK EXCHANGE & Additional market data -29-
Slide 30: Issuers and new listings
Issuers and new listings NC: number of new listings Main Market: number of listed companies and new listings (long-term perspective) Domestic Foreign Number of listed companies New listings 53 36 41 38 500 28 25 27 24 443 14 18 20 15 12 15 450 426 438 8 400 0 1 2 1 1 1 1 1 1 400 374 379 351 350 300
Slide 31: Attractive venue for issuers
Attractive venue for issuers Main Market – offering value (PLN bn) NewConnect – shares offering value (PLN m) 0.1 IPO SPO SPO IPO 520 17.8 12.8 5.7 42 0.2 44 0.3 0.0 46 226 2.3 2.5 1.2 0.3 2.3 0.2 0.2 2.9 0.2 0.2 23 45 212 196 71 1.0 1.1 0.5 1.2 0.7 0.6 1.2 1.5 0.6 1.2 0.9 0.3 13 44 151 168 86 75 72
Slide 32: Equities turnover on the Main Market
Equities turnover on the Main Market Quarterly value and turnover dynamics v. WIG index (PLN bn) Session trades WIG Index Block trades 7.3 3.7 11.8 3.9 15.4 6.9 2.6 4.4 5.0 8.0 6.1 2.7 7.8 2.5 1.2 63.9 63.8 67.8 53.8 57.9 55.2 54.9 55.7 56.1 53.5 45.6 49.6 45.2 45.4 42.2 Q1/10 Q2/10 Q3/10 Q4/10 Q1/1
Slide 33: Value of trading and number of trades
Value of trading and number of trades Session trading value (PLN bn) Block trading value (PLN bn) Total trading value (PLN bn) Average number of trades per session ('000) 300 268.1 140 239.7 234.3 120 250 202.9 100 193.7 200 169.3 165.7 175.9 80 150 98.5 60.8 55.3 49.9 60 100 51.4 48.4 46.4 45.0 40
Slide 34: Equities markets: long-term perspective
Equities markets: long-term perspective NewConnect: capitalisation (PLN bn) and new listings Capitalisation New listings 11.1 Monthly value of session trading on WSE Main Market 12 10.8 180 2001 – Q3 2013 (PLN bn) 172 160 10 8.5 140 8 30 120 5.1 100 25 6 89 80 4 61 2.6 86 60 20 2 1.2 1.4 36 40 24 26
Slide 35: Derivatives market
Derivatives market Index futures trading volume in Europe (H1 2013; m) Derivatives trading volume (m)1 70 177,3 60 50 44.5 4.66 40 3.99 3.66 3.43 3.25 3.17 3.37 30 16.4 3.19 20 2.76 2.74 2.65 5.0 4.3 3.7 1.8 1.0 10 0.2 0.2 0.1 0 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Struc
Slide 36: Exchange members
Exchange members Number of exchange members Countries of origin of remote members Remote Local Sweden: 1 Russia: 3 1 Lithuania: 1 UK: 9 Netherlands: 1 31 26 26 24 25 25 Germany: 1 18 19 1 Czech Rep.:2 Ukraine: 1 17 France: 2 17 Austria:1 10 Hungary: 2 7 Bulgaria:1 31 30 30 33 33 34 33 33 26 25 26 29
Slide 37: Commodity market - Property Rights Market (PRM)
Commodity market - Property Rights Market (PRM) Monthly volumes of certificates of origin on PRM Monthly volumes of certifictes of origin on PRM Violet Red Yellow Green 18 TWh 16 14 12 10 8 6 4 2 0 -37-
Slide 38: Commodity market - Certificate of Origin Register (COR)
Commodity market - Certificate of Origin Register (COR) Monthly volumes of certificates of origin registered in COR Monthly volumes of certifictes of origin registered in COR Green Red Yellow Violet PMEC-2013_P PMGM-2013_P 9 TWh 8 7 6 5 4 3 2 1 0 Mar/09 Mar/06 Jun/06 Mar/07 Jun/07 Mar/08 Jun/08 Jun/
Slide 39: Certificate of Origin Register (COR) - redemption
Certificate of Origin Register (COR) - redemption Monthly volumes of redeemed certificates of origin in COR Monthly volumes of redeemed certifictes of origin in COR Violet Red Yellow Green 40 TWh 35 30 25 20 15 10 5 0 Dec/05 Dec/06 Dec/07 Dec/08 Dec/09 Dec/10 Dec/11 Dec/12 Mar/06 Mar/07 Mar/08 Mar/0
Slide 40: Share of investor in WSE trading
Share of investor in WSE trading1 Equities, Main Market (%) Equities, NewConnect (%) Futures, (%) +6.0 pp +15.0 pp +6.0 pp Change of the share of foreign investors Change of the share of institutional investors Change of the share of foreign investors 2 2 2 3 6 10 11 10 7 20 10 11 14 16 17 16 43 36
Slide 41: Pension Funds on the Stock Market
Pension Funds on the Stock Market Pension fund’s shares in EOB in WSE 300 Pension funds’ investment Other investments 0.5% 30.0 portfolio [PLN bn] 30 16.7% 27.6 28.0 18% 250 Non-Treasury 11.4% 13.6% 16% debt 25 21.5 20.3 21.7 38.5% 12.0% 18.9 14% 200 20 12% 8.8% 15.2 Stock 10% 150 Bank deposits and
Slide 42: Overhaul of the private pension fund system
Overhaul of the private pension fund system Portfolio turnover rate of investors on WSE1 Government’s proposal on the overhaul of the Year Pension funds Investment funds Individual Foreign investors Polish private pension fund (OFE) system: (OFE) (TFI) investors 2006 30% 65% 160% 29% 2007 30% 50% 11
Slide 43: Indices and futures multiplier - changes
Indices and futures multiplier - changes SCHEDULE OF THE CHANGES IN THE INDICES AND FUTURES CONTRACTS MULTIPLIER 2013 8 August - announcement of the index WIG30 composition 23 September - scheduled first date of indices WIG30 and WIG30TR publication - introduction to trading on the exchange WIG20 fu
Slide 44: WSE Group and ownership structure
WSE Group and ownership structure Ownership structure by number of shares WSE Group 35.00% 64.72% 0.28% Subsidiaries Polish Power BondSpot WSEInfoEngine IRK WSE WSE State Treasury - preffered shares Exchange Research Commodities Other shareholders - preffered shares Commodity Fixed IR and PR Economi
Slide 45: Contact
Contact WSE Investor Relations tel. +48 22 537 72 50 ir@gpw.pl http://www.gpw.pl/relacje_inwestorskie Warsaw Stock Exchange ul. Książęca 4, 00-498 Warsaw, Poland tel. +48 22 628 32 32 gpw@gpw.pl www.gpw.pl Disclaimer This presentation has been prepared by Giełda Papierów Wartościowych w Warszawie S.
Giełda Papierów Wartościowych w Warszawie S.A. (WSE) — Q3 2013 Earnings Presentation on 6ix