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

Gielda Papierow Wartosciowych W Warszawie — Giełda Papierów Wartościowych w Warszawie S.A. (GPW Group) — Q3 2019 Earnings Presentation

31 slides from Gielda Papierow Wartosciowych W Warszawie's earnings presentation, Oct 31, 2019

  1. Slide 1: GPW Group's Financial Results Q3 2019

    GPW Group’s Financial Results Q3 2019 31 October 2019

  2. Slide 2: Summary of the GPW Group's Activity in Q3 2019

    Summary of the GPW Group’s Activity in Q3 2019 Financial Results of the GPW Group in Q3 2019

  3. Slide 3: Strategic and business highlights Q3 2019

    Strategic and business highlights Q3 2019 ✓ Launch of research and development work: development of a proprietary Trading Platform co-financed with an NCBR grant (3 July) ✓ Launch of GPW Growth (22 July) ✓ TGE: extension of the Liquidity Improvement Programme launched early in the year (1 August to

  4. Slide 4: Financial support for strategic initiatives

    Wsparcie finansowe dla inicjatyw strategicznych New Trading System - NCBR co-financing: PLN 30.28 mn Food Platform - KOWR co-financing: PLN 5.13 mn GPW Data ✓ NCBR co-financing: PLN 4.20 mn ✓ Polski Instytut Ekonomiczny raised co-financing from the Ministry of Science and Higher Education: PLN 1.00

  5. Slide 5: Improved profitability with a contribution of one-offs

    Improved profitability with a contribution of one- offs  Sales revenue Sales revenue Operating expenses Sales revenue down by 7.4% QoQ and 3.8% YoY in Q3’19. PLN mn PLN mn C/I 50,2% 48,6% 43,8%  Operating expenses 85.7 89.1 Operating expenses down by 16.7% QoQ 82.5 -3.8% 43.0 43.3 and down by 16.1

  6. Slide 6: Investor activity in Q3'19

    Investor activity in Q3’19 Value of EOB trade on the Main Market EOB Trading PLN bn  Velocity ratio: 33.2% in Q3’19 vs. 30.2% in Q2’19 and Turnover velocity (source: FESE) 42,6% 34.3% in Q3’18. 80 45 ,0% 34,9% 34,3% 32,9% 32,8% 33,3% 33,2%  WIG20 lost 6.6% in Q3’19 vs. WIG20 gained 7.0% in 40 ,0%

  7. Slide 7: Trade in derivatives

    Trade in derivatives Volume of trade in derivatives mn +12.7%  Total volume of trade in derivatives: 1.98 mn contracts in Q3’19 vs. 1.76 mn in Q3’18, up by 2.22 1.98 2.11 2.08 1.98 12.7% YoY. 1.67 1.73 1.76 1.71 1.60  Volume of trade in WIG20 futures: 1.07 mn contracts in Q3’19 vs. 0.98 mn in Q3’1

  8. Slide 8: Strong commodity market in Q3'19

    Strong commodity market in Q3’19 Volume of spot and forward trade in  Electricity market: Total volume of trade in electricity: 65.0 TWh in Q3’19 electricity and gas (+2.4% YoY, +22.9% QoQ). Volume of spot transactions: 8.0 TWh (+29.0% YoY, -4.3% QoQ). Volume of forward transactions: 57.0 TWh (-0.5

  9. Slide 9: Financial Results of the GPW Group in Q3 2019

    Summary of the GPW Group’s Activity in Q3 2019 Financial Results of the GPW Group in Q3 2019

  10. Slide 10: Increase of revenue and EBITDA margin

    Increase of revenue and EBITDA margin Revenue EBITDA and EBITDA margin Net profit and net profit margin PLN mn 43.9% 42.0% 47.7% 49.8% 64.6% 67.8% 59.5% 59.6% 29.1% 45.8% -3.8% 85.7 88.5 89.1 84.2 82.5 PLN mn +9.6% PLN mn 57.6 55.9 +9.3% 51.0 52.7 42.6 41.1 38.6 37.6 37.1 24.5 Q3’18 Q4’18 Q1’19 Q2’1

  11. Slide 11: Trading revenue on the financial market

    Trading revenue on the financial market Q3’19: 36.2%  Trading revenue on the financial market: PLN 29.9 mn Trading revenue – financial market in Q3’19 (-2.5% YoY, +5.2% QoQ). YoY decrease PLN mn mainly due to a lower value of trade in equities.  Average EOB turnover in shares per session: PLN 772.

  12. Slide 12: Listing revenue

    Listing revenue Q3’19: 6.1% Listing revenue  Two transfers from NewConnect to the Main Market in PLN mn Q3’19 (HM Inwest and Ultimate Games).  Three new listings on NewConnect in Q3’19 (Moonlit Games, DB Energy, Carpatia Capital). -6.9% 5.7  Total listing revenue: PLN 5.0 mn in Q3’19 vs. PLN 5.1

  13. Slide 13: Revenue from information services – financial market

    Revenue from information services – financial market Q3’19: 14.0% Revenue from information services1 PLN mn  New clients of GPW and WIBOR data in different market segments attracted in Q3’19: ✓ 2 data vendors, +4.0% ✓ 2 non-display clients, 12.2 12.0 11.8 11.5 11.1 -3.7% ✓ 4 users of historical dat

  14. Slide 14: Revenue from the electricity and gas markets

    Revenue from the electricity and gas markets Q3’19: 22.8%  Revenue from trading in electricity up by 36.4% QoQ to PLN Trading revenue – commodity market 4.7 mn in Q3’19 and down 10.2% YoY (mainly due to a lower turnover on the forward market, down by 17.8% YoY). PLN mn  Revenue from tradeing in ga

  15. Slide 15: Revenue from clearing

    Revenue from clearing Q3’19: 13.1% Revenue from clearing  Revenue from clearing down by 2.6% YoY and by 11.2% QoQ in Q3’19, mainly due to a decrease in volumes of PLN mn trade in property rights. -2.6%  Revenue from the operation of the Register of Certificates 12.9 12.2 of Origin down by 5.6% YoY

  16. Slide 16: Operating expenses impacted by release of part of provisions for KNF fees

    Operating expenses impacted by release of part of provisions for KNF fees in Q3’19  Operating expenses: PLN 36.1 mn in Q3’19 (-16.1% YoY, -16.7% QoQ). Operating expenses: -16.1% YoY and -16.7% QoQ  Final KNF fees calculated in Q3’19: PLN 6.7 mn in 2019 vs. PLN 12.5 mn in 2018. PLN mn 54.3  Cost/i

  17. Slide 17: Share of profit of entities measured by the equity method

    Share of profit of entities measured by the equity method Share of profit of entities measured by the equity method PLN mn PAR KDPW CG 4.69  Group’s share of profit of entities measured by the equity 3.64 method: PLN 4.69 mn in Q3’19 (+37.5% YoY, +28.9% 3.41 QoQ). 4.74  KDPW: 1.92 3.77 3.25 ✓ The

  18. Slide 18: GPW Group's consolidated statement of financial position

    GPW Group’s consolidated statement of financial position PLN mn 31.09.2018 30.06.2019 30.09.2019  Increase of total assets YtD as Non-current assets, including among others 575,1 585,9 585,5 at 30 September 2019 mainly driven by an increase of cash Property, plant and equipment 106,2 100,6 97,3 and

  19. Slide 19: Annex – Back-up Slides

    Annex —- Back-up Slides

  20. Slide 20: GPW Group's consolidated statement of comprehensive income

    GPW Group’s consolidated statement of comprehensive income PLN mn Q3'18 Q2'19 Q3'19 Revenue 85,7 89,1 82,5  YoY decrease of revenue in Q3’19 driven by a Financial market 47,1 45,4 46,4 decrease of revenue from the commodity market Trading 30,7 28,4 29,9 (by PLN 2.1 mn) and a decrease of revenue fro

  21. Slide 21: GPW Group's consolidated statement of cash flows

    GPW Group’s consolidated statement of cash flows Nine-month period ended 30 September of PLN mn 2019 2018 Cash flows from operating activities, including among others: 160,2 96,6 • Positive cash flows from operating activities in Cash flows from operating activities 191,7 132,1 9M ended 30 September

  22. Slide 22: GPW Group's revenue structure

    GPW Group’s revenue structure 153.3 PLN mn 344.3 PLN mn 0,3% other revenue (0,3%) Clearing 13,6% Register of Certificates of Origin 8,4% Trading - other Commodity Market: 3,5% Trading - property rights 44,5% 44.5% 10,5% Trading - gas 3,5% Trading - energy 5,0% GPW Group’s revenue (PLN mn) Market Dat

  23. Slide 23: Financial market: Trade in equities

    Financial market: Trade in equities Value of trade in equities and number of transactions Average number of transactions per session (thous.) Value of trading in equities, EOB (PLN mn) 26.7%1 80.2 70.1 73.1 72.6 65.9 69.2 55.3 51.9 55.5 51.4 48.4 46.4 38.2 251 236 207 220 205 203 204 167 188 190 160

  24. Slide 24: Financial market: Trade in derivatives

    Financial market: Trade in derivatives Volume of trade in derivatives Number of Open Interest (thous.) 3.5%2 184.8 181.8 168.1 165.0 169.0 132.8 137.2 138.1 140.1 143.6 131.0 104.2  Revenue drivers: 80.4 ✓ Volume of trade 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 of open

  25. Slide 25: Financial market: Other instruments and fees paid by participants

    Financial market: Other instruments and fees paid by participants Value of trade on Treasury BondSpot Poland, PLN bn Cash transactions 3.0%1 Repo transactions 1.037 1.062 3,0 307 450 845 767 2,9%22 2.9% 347 327 599 535 260 413 407 196 324 731 612 147 255  Revenue drivers: 135 498 439 97 84 101 339

  26. Slide 26: Financial market: Listing

    Financial market: Listing Capitalisation of domestic companies Market Capitalisation/GDP (%) 6.1%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: 671 593 591 557 579 587 551 543 523 ✓ Capitalisation at YE 446 517 ✓ Value

  27. Slide 27: Financial and commodity market: Information services

    Financial and commodity market: Information services Number of data vendors Domestic Foreign 14.2%1 83 78 74 57 58 58 58 38 52 54 53 52 36 50 35 37 34 31 37 30 28 27  Revenue drivers: 32 33 42 39 45 ✓ Number of data vendors 18 19 20 21 24 27 24 25 25 ✓ Number of subscribers 2009 2010 2011 2012 2013

  28. Slide 28: Commodity market: Trade in electricity and gas

    Commodity market: Trade in electricity and gas Volume of trade in electicity (TWh)1 Spot Forward 226.1 9.7%2 176.6 186.7 186.7 27.7 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 63.5 65.0 109.1 118.1 6.2 8.0 ✓ Volume of trade in e

  29. Slide 29: Commodity market: Trade in property rights

    Commodity market: Trade in property rights Spot trade in property rights (TWh) Green Certificates 62.2 9.2%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  Revenue drivers: 42.4 35.7 32.1 35.2 35.6 32.3 13.5 26.2 28.3 28.

  30. Slide 30: 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 7.5%1 Cogeneration 48.5 47.2 47.5 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 25.8 26.6 25.9 27.3 28.3 27.6 ✓ Volume of is

  31. Slide 31: IR events, Contact and Disclaimer

    IR events Disclaimer  30 October 2019 This presentation has been prepared by Giełda Papierów Wartościowych Publication of GPW Group’s consolidated interim report for w Warszawie S.A. (“Warsaw Stock Exchange”, “GPW” or “Company”) for its Q3 2019 shareholders, analysts, and other contractors. This pr

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