Gielda Papierow Wartosciowych W Warszawie S.a. · GPW:GPW
Gielda Papierow Wartosciowych W Warszawie — Giełda Papierów Wartościowych w Warszawie S.A. (WSE Group) — Q4 2014 Earnings Presentation
29 slides from Gielda Papierow Wartosciowych W Warszawie's earnings presentation, Feb 24, 2015
Slide 1: WSE Group Financial Results Q4 2014
WSE GROUP FINANCIAL RESULTS Q4 2014 24 FEBRUARY 2015 -1-
Slide 2: Introduction
Introduction -2-
Slide 3: In 2014, We Reinforced WSE Group's Foundations…
In 2014, We Reinforced WSE Group’s Foundations… … were aimed at strengthening the foundations of Our activities in 2014 … further growth of revenue and profitability We have updated the strategy Dynamic growth of revenue WSE.2020 – we focus on PLN mn 2014 Q4 2014 organic growth +9% PLN 317.6 mn PLN
Slide 4: … We Increased Projected Dividend Payout to Shareholders…
… We Increased Projected Dividend Payout to Shareholders… Dividend paid1 and intended dividend payout in coming years Our dividend policy provides for: 142.3% payment of PLN 2.4 per share of 86.9% dividend from 2014 profit 6.1% 45.2% 44.5% payment of PLN 2.6 per share of 31.0% 5.7%4 dividend from 20
Slide 5: … And We Prepared for the Busy Year 2015
… And We Prepared for the Busy Year 2015 We optimise and integrate We improve cost efficiency We develop the product the WSE Group offer • We create a shared services centre • We reduce office space • We launch commodity futures • We reduce investments in smaller • We renegotiate deals with contract
Slide 6: Situation on the Financial Market in 2014
Situation on the Financial Market in 2014 -6-
Slide 7: Leaving the Years-Long Lateral Trend Is Key to Growing Turnover in Equities and Derivatives
Leaving the Years-Long Lateral Trend Is Key to Growing Turnover in Equities and Derivatives Average turnover in shares per session No stimuli for the equity market to leave the lateral PLN mn trend 893 921 755 825 28% – annual spread of WIG20 values at 12% in 2014 v. 19% in 2013 721 and 35% on avera
Slide 8: Increased Volatility and Restored Interest of Retail Investors Are Key to Improved Liquidity of WIG20 Futures
Increased Volatility and Restored Interest of Retail Investors Are Key to Improved Liquidity of WIG20 Futures High volatility and risks in 2007-2010 triggered a boom in We have made WIG20 futures WIG20 futures parameters more attractive PLN bn 522% 480% multiplier of PLN 20 404% 439% (formerly PLN 1
Slide 9: Potential of Corporate Growth Is Our Potential
Potential of Corporate Growth Is Our Potential Growing number of companies listed on Pension fund reform determines the sentiment the Main Market: WSE’s key asset on the primary and secondary market +85% Pension funds no longer contribute to a ‘Polish >550 premium’ in stock valuations 471 400 426 43
Slide 10: Development of the Commodity Market
Development of the Commodity Market -10-
Slide 11: We Have Strengthened Our Position on the Electricity Market
We Have Strengthened Our Position on the Electricity Market Volume of trade in electricity on PolPX Total volume of trade on PolPX energy markets (TWh) (2014, TWh) CAGR +23.0% 186.8 TWh 176.6 186.8 126.7 131.1 81.7 increase by 5.8% YoY 2010 2011 2012 2013 2014 139.4%1 of Poland’s energy consumption
Slide 12: We Participate in Development of a Liquid Market in Gas
We Participate in Development of a Liquid Market in Gas Total volume of trade in gas Trae in gas on PolPX in 2014 (TWh, incremental) 150 volume of gas imports in 2013 129 111.6 TWh 100 volume of trade in gas on PolPX in 2014 112 approximately 50 10.17 bn m³ 0 Mar Jun Sep Dec 2014 2014 2014 2014 Achi
Slide 13: High Liquidity of a Large Market Makes PolPX a Key Partner of EU's Major Exchanges
High liquidity1 of a Large Market Makes PolPX a Key Partner of EU’s Major Exchanges Electricity market Gas market Liquidity of the exchange market in 2014 ((spot + forward)/consumption) Liquidity of the exchange market in 2014 ((spot + forward)/consumption) 406.5% 62.6% 172.9% 139.4% 28.8% 27.0% 23.
Slide 14: We Launch Commodity Futures
We Launch Commodity Futures Volume of trading – electricity futures PolPX Financial Instruments Market 2014, TWh Initially energy futures, subsequently gas Market supervised by PFSA and cleared by WCCH Scandinavian Diverse members – including brokerage houses 867 market – Energy companies Germany 72
Slide 15: WSE Group 2014 and Q4 2014 Financials
WSE Group 2014 and Q4 2014 Financials -15-
Slide 16: Q4'14 Results Burdened with Significant One-off and Seasonal Expenses
Q4’14 Results Burdened with Significant One-off and Seasonal Expenses EBITDA1 Net profit PLN mn PLN mn 40.0% 43.5% 50.9% 51.7% 56.7% 55.2% 35.4% 38.5% 48.5% 40.3% 47.5% 45.4% 29.5% 29.0% 164.1 113.5 112.3 144.4 +13.7% 49.1 -1.1% 43.0 40.7 -5.4% 37.6 33.6 31.4 28.5 30.0 24.3 -18.9% 20.4 2013 2014 Q4
Slide 17: We Generate Improving Results on the Commodity Market and Invest in Further Growth
We Generate Improving Results on the Commodity Market and Invest in Further Growth of the Market Q4: 55.4% Q4: 42.6% Revenue: financial market Revenue: commodity market PLN mn PLN mn 205.3 200.0 -2.6% 114.5 -9.8% 50.6% +89.6% 56.0 51.5 76.0 48.2 49.3 46.5 35.7 30.1 28.3 18.8 20.3 2013 2014 Q4 Q1 Q2
Slide 18: Trading Revenue under Pressure of Falling Turnover
Trading Revenue under Pressure of Falling Turnover Q4: 37.1% Average transaction fees in Q4 and in 2014 on the equity market at 2.4 bps, the same as in 2013 Trading revenue PLN mn Average transaction fees on the derivatives market down from PLN 0.84 per contract in 2013 to PLN 147.9 0.78 in 2014 (fr
Slide 19: Stable Listing Revenue
Stable Listing Revenue Q4: 6.9% Listing revenue PLN mn 80% of listing revenues in 2014 were annual fees whose amount depends mainly on capitalisation of 24.0 22.3 listed companies. 7.5% 1.7% 6.3 6.1 5.7 5.7 5.8 Issuer activity 19.0 Listing 17.2 2013 2014 Q4 `13 Q3 `14 Q4 `14 New listings on the Main
Slide 20: We Are Adding the Commodity Market to Information Services
We Are Adding the Commodity Market to Information Services Q4: 11.4% We acquire clients for commodity market data and develop non-display products Revenue from information services PLN mn We acquire new high-margin clients on the financial market 38.2 We align our fees 35.1 9.0% A falling number of
Slide 21: We Report 50 Percent Increase in Trading Revenue on the Commodity Market in 2014
We Report 50 Percent Increase in Trading Revenue on the Commodity Market in 2014 Trading in natural gas as a new stable source of Q4: 22.2% revenue Trading revenue Rebuilding energy trade volumes in Q4 PLN mn Very dynamic increase in the volume of trading in property rights following an increase in
Slide 22: Growing Activity of Participants of the Register of Certificates of Origin and Clearing House
Growing Activity of Participants of the Register of Certificates of Origin and Clearing House Members Revenue from the Register of Q4: 7.0% Certificates of origin from renewable enerygy Certificates of Origin sources as the main driver of growth of the PLN mn Register of Certificates of Origin (incr
Slide 23: In Q4, We Reported Some One-Off and Seasonal Expenses
In Q4, We Reported Some One-Off and Seasonal Expenses Operating expenses C/I in 2014: reduced to 57.2% from 58.6% in 2013 PLN mn – On track to the strategic target of C/I < 50% by 2020, +13.8% despite planned growth investments in 2015 51.3 Depreciation 45.1 43.9 44.4 Expenes in Q4’14: increase driv
Slide 24: Lower Profit of Associates
Lower Profit of Associates Profit of associates • In Q3 2014, KDPW_CCP launched a netting service, PLN mn allowing participants to reduce costs 4.0 – KDPW Group 2014 net profit: PLN 30 mn (-16.7% v. 2013) – Q4 2014 net profit: -PLN 0.3 mn (due to seasonal costs 0.9 1.1 including provisions for bonus
Slide 25: P&L, Cash Flows, Balance Sheet
P&L, Cash Flows, Balance Sheet -25-
Slide 26: WSE Group Consolidated P&L
WSE Group Consolidated P&L PLN mn Q4 2013 Q3 2014 Q4 2014 Sales Revenue 70.8 77.9 83.9 Other operating income increased Financial market 51.5 49.3 46.5 mainly due to higher income of Trading 36.4 34.3 31.1 IRK and PolPX Listing 5.7 5.7 5.8 Information services 9.4 9.3 9.5 Income tax rate in Q4: 20.1
Slide 27: WSE Group's Consolidated Balance Sheet
WSE Group’s Consolidated Balance Sheet As at: PLN mn 31.12.2013 30.09.2014 31.12 2014 Non-current assets 576.4 586.3 573.8 Property, plant and equipment 124.0 119.4 119.8 Intangible assets 269.2 261.5 261.0 WSE Group’s non-current Investment in associates 158.5 189.9 188.1 liabilities are mainly WSE
Slide 28: WSE Group's Consolidated Cash Flows
WSE Group’s Consolidated Cash Flows 12M to 31 December: PLN mn 2013 2014 Cash flows from operating activities 172.4 161.7 Cash flows from operating activities, 192.2 176.9 including Depreciation and amortisation 25.7 28.8 Lower cash flows from operating activities year on year due to changes Income
Slide 29: Events / Contact
Events / Contact WSE IR Events WSE Investor Relations tel. +48 22 537 72 50 10th-11th April 2015 ir@gpw.pl Citi’s CEEMEA Symposium www.gpw.pl/relacje_inwestorskie London 17th-19th March 2015 Polish Capital Market Conference Warsaw Stock Exchange London ul. Książęca 4, 00-498 Warsaw, Poland tel. +48
Giełda Papierów Wartościowych w Warszawie S.A. (WSE Group) — Q4 2014 Earnings Presentation on 6ix