Gielda Papierow Wartosciowych W Warszawie S.a. · GPW:GPW
Gielda Papierow Wartosciowych W Warszawie — Giełda Papierów Wartościowych w Warszawie — Investor Presentation (June 2018)
32 slides from Gielda Papierow Wartosciowych W Warszawie's investor presentation, June 2018
Slide 1: The GPW Group Strategy
THE GPW GROUP STRATEGY
Slide 2: Strategy themes: economic development, SME activation, innovation
# Economic development # SME activation # Innovation catalyst # Accelerated returns # Business lines’ development # Stable dividend policy # Client-centric products # New trading platforms # Advanced tools for investors and issuers 2
Slide 3: Agenda: starting position, objectives, initiatives
I. Strong starting position of the GPW Group II. GPW Group’s Strategy #GPW2022 objectives III. The road to implementation: initiatives 3
Slide 4: Solid fundamentals of Poland's economy
Solid fundamentals of Poland’s economy High expected GDP growth1… 4.3% …and very strong economic readings… 6.1% 1.5% 38.4 mn unemployment NBP reference population in May 2018 rate 1.7% inflation in May EUR 466 bn 5.2% YoY 2018 GDP growth in GDP in 2017 Q12018 ...strengthen investor confidence
Slide 5: The Morawiecki Plan creates opportunity for GPW Group development
The Morawiecki Plan creates opportunity for GPW Group development The Morawiecki Plan Capital Market Development Strategy (SRRK) Capital market provides real suport for the Capital market as the main driver of Poland’s economy Morawiecki Plan impementation Legal environment friendly for invest
Slide 6: GPW Group's competences: catalyst of business growth
GPW Group’s competences: catalyst of business growth Well-developed and stable market infrastructure (upgrade from Emerging Market to 1 Developed Market) Ability to identify new sources of revenue and technological competences (100% ability 2 of trading system in 2017) Broad offer of financial/comod
Slide 7: GPW's diverse business model
GPW’s diverse business model GPW Group Derivatives Commodity Listing Stock market Debt market Information products market market Listing Information services Services Trading Trading Trading Trading Register Post-trading services 7.1% 31.1% 3.4% 3.4% 40.3% 12.2% Revenue1 Stocks S
Slide 8: Continuation of GPW Group's mission
Continuation of GPW Group’s mission We develop effective mechanisms of capital and commodity flows by by providing exchange and clearing services which are competitive in terms of quality and price and address the needs and expectations of our clients: companies, investors, and brokers. We support e
Slide 9: Agenda: starting position, objectives, initiatives
I. Strong starting position of the GPW Group II. GPW Group’s Strategy #GPW2022 objectives III. The road to implementation: initiatives 9
Slide 10: Challenges facing market infrastructure
Challenges facing market infrastructure Changes on mature exchanges Modification of the product offer and the business model Diversification of the revenue mix Fast-paced legal and regulatory changes (including MAR, MiFID II/MiFIR) Attempted mergers and acquisitions More market competition T
Slide 11: Reasons for the strategy update
REASONS FOR THE STRATEGY UPDATE #GPW2022 is GPW Group’s growth programme launched in 2014 and updated in Tap the growth potential of the Polish 2017/2018. It follows a economy thorough analysis of the strategic review of our Address competitive challenges business, organisation and processes. #G
Slide 12: Our assumptions
Our assumptions Grow the core business Develop based on soft diversification and expansion to new business areas Create and sell new technological LONG-TERM solutions CORPORATE GROWTH Maintain a stable dividend policy 12 12
Slide 13: GPW Group's priorities
GPW Group’s priorities Focused achievement Better protection of Improved liquidity of financial targets investors More innovation and Continuous expansion Stronger position of productivity of the product offer CEE’s leader Generating added Enhanced corporate Deeper value chain value governance stand
Slide 14: Improvement of financials since strategy rollout in 2014
Improvement of financials since strategy rollout in 2014 CAGR +5.5% 352.0 327.9 317.6 310.9 283.6 Operating income [PLN mn] 2013 2014 2015 2016 2017 (base year) EBITDA 144.9 161.1 180.1 183.7 212.2 [PLN mn] Net profit 112.8 107.5 121.5 131.1 156.1 [PLN mn] ROE [%] 18.9 16.1 17.3 18.0 20.1 14
Slide 15: Financial targets 2020
Revenue CAGR 7% EBITDA 2013 (PLN 144.9 m) to double in 2020 (PLN 288 m) FINANCIAL TARGETS 2020 Cost/income ratio < 0.5 Dividend payout ratio > 60% 15
Slide 16: Initiatives as the key to financial targets
Initiatives as the key to financial targets Revenue [PLN m] – Target: CAGR 2013-2020 = 7% Strong impact of strategic initiatives on [PLN mn] revenue 500 450 Strengthening of existing business lines 400 350 Development of new business lines 300 Diversification of sources of income 250 200 C
Slide 17: Attractive dividend policy to continue
Attractive dividend policy to continue Dividend payout ratio [%] – Target: >60% 100% 90% Tytuł wykresu 90% 80% 80% 71% The5 GPW Management 70% 63% Board 4.5 intends to 60% 44% 60% 60% 60% 60% 60% 60% 60% recommend 4 that the 50% General Meeting pay the 40% 3.5 dividend depending on 30% 2013 2014 201
Slide 18: Revenue structure
Revenue structure Revenue GPW Group, 2017 Revenue GPW Group, 2022 2.6% 31.1% 31% 40.1% 3.4% 3.4% 69% 7.1% 12.2% Equity trading Listing Initiatives Information services Commodity market Present business Derivatives trading Bonds trading Other fees paid by market participants and other revenues 18 18
Slide 19: We have appointed the management team responsible for the strategy
We have appointed the management team responsible for the strategy Marek Dietl GPW President CEO Jacek Fotek Dariusz Kułakowski Izabela Olszewska Piotr Borowski GPW VP GPW Board Member GPW Board Member GPW Board Member CFO CIO Business Development COO (subject to approval by (subject to approval by
Slide 20: Initiatives as the key to implementation of the strategy
Initiatives as the key to implementation of the strategy GPW Group Stock Market Information offer for Debt Market Derivatives Derivatives Market Commodity Commodity Market Information investors and New business lines Stock market Debt market market market products issuers Primary BondSpot Derivative
Slide 21: Agenda: starting position, objectives, initiatives
I. Strong starting position of the GPW Group II. GPW Group’s Strategy #GPW2022 objectives III. The road to implementation: initiatives 21
Slide 22: Stock market: Primary Market Development, Securities Lending System
Primary Market Development # Improvement of GPW’s sales and educational offer for SMEs Rozwój Rynku Pierwotnego # New programme supporting SME value creation # More GPW-listed companies Pożyczki Papierów Wartościowych STOCK RYNEK Private Market MARKET AKCJI Securities Lending System # Improved liqui
Slide 23: Derivatives Development
Derivatives Development Rozwój Rynku Pierwotnego # New futures tailored to clients’ needs Pożyczki Papierów Wartościowych # Promotion of market maker orders supporting liquidity of the order book DERIVATIVES RYNEK # Extension of promotion and educational programmes Private Market MARKET AKCJI for al
Slide 24: GPW Ventures and GPW Private Market
GPW Private Market # Platform matching companies and investors on the private market Rozwój Rynku Pierwotnego # Expansion of GPW Group’s offer for companies at all stages of growth Pożyczki Papierów Wartościowych NEW BUSINESS GPW VenturesRYNEK Private Market LINES AKCJI # SPV to invest in venture ca
Slide 25: Debt market: BondSpot Development, Rating Agency
BondSpot Development # Full range of products and services on the debt Rozwój Rynku Pierwotnego market, # An offer addressed to a wide group of clients and participants on a single trading venue within the GPW Group Pożyczki Papierów Wartościowych DEBT RYNEK Rating Agency Private Market MARKET AKCJI
Slide 26: Warsaw Repo Rate and BondSpot Benchmark
Warsaw Repo Rate BondSpot Benchmark Rozwój Rynku Pierwotnego # Two new benchmarks on the bond market and the money market Pożyczki Papierów Wartościowych # Transparent and stable benchmark calculation DEBT RYNEK methods based on transaction data Private Market MARKET AKCJI # Improved transparency of
Slide 27: GPW Data
GPW Data Rozwój Rynku Pierwotnego # Business reporting standards ensuring automatic data processing and lower reporting costs for companies Pożyczki Papierów Wartościowych # Use of big data technologies in collecting data relevant to capital market investments INFORMATION RYNEK # Implementation of a
Slide 28: GPW TCA Tool
Rozwój Rynku Pierwotnego GPW TCA TOOL # A set of tools for identification and analysis of Pożyczki Papierów Wartościowych transaction costs INFORMATION RYNEK # Source of information for investors and brokers on Private Market data aggregated at micro market level PRODUCTS AKCJI 28
Slide 29: Organised Trading Facility, Auction Platform, OTC Clearing
Organised Trading Facility (OTF) # Transformation of TGE’s forward commodity market into an organised trading facility (OTF) under MiFID II Rozwój Rynku Pierwotnego # Further development of TGE’s forward instruments with physical delivery of electricity and gas and financial instruments Pożyczki Pap
Slide 30: GPW Waste Platform
GPW Waste Platform # Electronic trading platform for waste and its Rozwój Rynku Pierwotnego recycling/disposal products as well as services tailored to the needs of the sector # A set of services tailored to the needs of the industry Pożyczki Papierów Wartościowych RYNEK # The waste platform will im
Slide 31: We are beginning to implement initiatives in July 2018
We are beginning to implement initiatives on 2 July 2018 GPW Group Stock Market Information offer for Debt Market Derivatives Derivatives Market Commodity Commodity Market Information investors and New business lines Stock market Debt market market market products issuers Primary BondSpot Derivative
Slide 32: IR events and contact
IR events Disclaimer 27-28 June 2018 This presentation has been prepared by Giełda Papierów Wartościowych w Warszawie S.A. (“Warsaw Stock Exchange”, “GPW” or “Company”) for its Spring European Midcap Event, Paris shareholders, analysts, and other contractors. This presentation has been prepared so
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