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

Gielda Papierow Wartosciowych W Warszawie — Giełda Papierów Wartościowych w Warszawie S.A. (GPW) — FY2017 Earnings Presentation

36 slides from Gielda Papierow Wartosciowych W Warszawie's earnings presentation, Mar 1, 2018

  1. Slide 1: GPW Group’s Financial Results in 2017

    GPW Group’s Financial Results in 2017 1 March 2018

  2. Slide 2: Summary of the GPW Group’s Activity in Q4 2017

    Summary of the GPW Group’s Activity in Q4 2017 Financial Results of the GPW Group in Q4 2017

  3. Slide 3: Record-high financial results in 2017

    Record-high financial results in 2017 Revenue Net profit EBITDA Opex 13.2% 19.0% 15.5% 10.4% 352.0 156.1 212.2 165.8 310.9 150.2 131.1 183.7 2016 2017 2016 2017 2016 2017 2016 2017 3

  4. Slide 4: GPW Group’s financial results in Q4 2017 impacted by the cost of MiFID2/MIFIR

    GPW Group’s financial results in Q4 2017 impacted by the cost of MiFID2/MIFIR Revenue Net profit  Revenue mn PLN mn PLN +13.6% Revenue increased by -16.2% 13.6% QoQ and 12.8% YoY in Q4’17 92.2 47.0 81.7 81.1 +12.8%  Net profit Net profit decreased by 16.2% QoQ 39.4 and increased by 19.5% YoY due t

  5. Slide 5: Development and implementation of GPW Group’s development initiatives in 2017

    Development and implementation of GPW Group’s development initiatives in 2017… • Development of a proprietary system for GPW Benchmark TECHNOLOGICAL • New trading systems in TGE Group (X-Stream Trading, X-Stream Clearing, SAPRI) TRANSITION • Alignment of IT systems with MIFID2/MIFIR as required on 3

  6. Slide 6: Foundation of strategy update and continued development in 2018

    …as a foundation of GPW Group’s strategy update and continued development in 2018 Implementation of GPW.2020 strategy in 2017 What we have already done in 2018  Intention to sign Centrum Giełdowe MoU  Innovative TradeApp and WebTradeApp from Asseco Poland support trade in financial instruments  S

  7. Slide 7: Dynamic growth of the stock market in 2017

    Dynamic growth of the stock market in 2017 IPO and SPO value on the Main Market and NewConnect  Biggest IPO value since 2011 and historically PLN bn high SPO value IPO SPO 90.8  #3 in Europe after LSE and Nasdaq Nordic by 43.1 number of IPOs in 2017 according to PwC IPO Watch Report 7.7 5.2  EOB

  8. Slide 8: GPW among the growth leaders on the stock markets in Europe in 2017

    GPW among the growth leaders on the stock markets in Europe in 2017 Change in capitalisation of domestic companies on European exchanges in 2017 1  Value of EOB equity trading on GPW increased by 27.8% in 2017, which is the second best result among European stock exchanges  Increase in capitalizat

  9. Slide 9: Prevailing low volatility impacted volumes on the derivative market in 2017

    Prevailing low volatility impacted volumes on the derivative market in 2017 Volume of trade in derivatives  Total volume of trade in derivatives was 7.6m mn -20.5% instruments in 2017, down by 4.4% from 8.0m 2.18 2.24 in 2016 1.94 1.98 1.98 1.87 1.67 1.73 +3.8%  Volume of trade in futures and opti

  10. Slide 10: Commodity market in Q4 2017

    Commodity market in Q4 2017 Volume of spot and forward trade in electricity and gas  Gas market: Total volume of trade on the gas markets at 138.7 TWh in 2017, +21.1% YoY (down by 18.2% QoQ and up Electricity (TWh) Gas (TWh) by 1.7% YoY in Q4 2017), the best annual result in TGE’s 37.2 46.4 history

  11. Slide 11: Financial Results of the GPW Group in Q4 2017

    Summary of the GPW Group’s Activity in Q4 2017 Financial Results of the GPW Group in Q4 2017

  12. Slide 12: Good financial result but impact of MiFID2 costs

    Good financial result but impact of MiFID2 costs Net profit and net profit margin Revenue EBITDA and EBITDA margin PLN mn PLN mn PLN mn 57.9% 70.7% 47.9% 42.7% 12.8% 58.1% 64.0% 56.4% 40.3% 51.4% 30.5% 91.0 92.2 87.6 81.7 81.1 9.5% +19.5% 56.1 57.4 52.0 47.0 47.5 46.8 41.9 39.4 33.0 27.7 Q4’16 Q1’17

  13. Slide 13: Trading revenue on the financial market

    Trading revenue on the financial market Q4’17: 37.6% Trading revenue – financial market  Trading revenue on the financial market at PLN PLN mn 34.6m (up by 8.5% QoQ and up by 4.1% YoY)  Average turnover in shares per session at PLN 938.4m in Q4 2017 vs. PLN 832.5m in Q3 2017 +4.1% and PLN 892.2m i

  14. Slide 14: Stable listing revenue

    Stable listing revenue Q4’17: 6.8% Listing revenue PLN mn  Total value of IPOs and SPOs on the Main Market at PLN 1.5bn in Q4 2017  Six IPOs on the Main Market, including three transfers from +2.3% NewConnect and 7 on NewConnect in Q4 2017 6.3 6.3 6.3  Stable listing revenue in spite of a drop in

  15. Slide 15: Continued growth of revenue from information services – financial market

    Continued growth of revenue from information services – financial market Q4’17: 11.9%  New clients in different market segments attracted in Q4 Revenue from information services1 2017:  3 non-display clients (11 in 2017) PLN mn  3 data vendors (4 in 2017)  2 clearing houses  Fast growing sales

  16. Slide 16: Historically high quarterly trading revenue on the commodity market

    Historically high quarterly trading revenue on the commodity market Q4’17: 21.9%  Sharp increase of revenue from trade in property Trading revenue – commodity market rights (36.3% QoQ and 43.0% YoY) due to a PLN mn change in trading structure towards green certificates +22.3%  Increase of revenue

  17. Slide 17: Higher revenue from clearing driven by volumes

    Higher revenue from clearing driven by volumes Q4’17: 13.0% Revenue from clearing PLN mn  Revenue from clearing increased sharply in Q4 8.2% 2017 thanks to high volumes on the energy market and the property rights market 12.0 11.1 10.3 9.3 9.4 +27.1%  Volumes in the Register of Certificates of Ori

  18. Slide 18: Operating expenses impacted by MiFID2 harmonisation

    Operating expenses impacted by MiFID2 harmonisation  Operating expenses for MiFID2 harmonisation in 2017 were PLN Operating expenses: +50.7% QoQ and +29.8% YoY 11.0m, including PLN 9.3m software modification; CAPEX was Taxes (incl. PLN mn PLN 1.6m in 2017 PFSA fees) 46.5 49.0 Depreciation 7.6  Ope

  19. Slide 19: Share of profit of associates

    Share of profit of associates Share of profit of associates  KDPW Group’s profit: Aquis KDPW CG  KDPW’s net profit at PLN 8.4m in Q4 2017 PLN mn 3.6  KDPW’s net profit at PLN 37.7m in 2017 vs. PLN 23.8m 3.0 in 2016 1.9  Aquis Exchange: 1.2 1.5 4.3 3.5  Aquis Exchange’s share in the European mar

  20. Slide 20: GPW Group’s Consolidated Balance Sheet

    GPW Group’s Consolidated Balance Sheet PLN mn 31.12.2016 31.03.2017 30.06.2017 30.09.2017 31.12.2017  Decrease of trade receivables following Non-current assets, including among others 597.3 597.3 597.2 594.8 596.4 payment of some of TGE’s VAT correction Property, plant and equipment 119.1 116.7 11

  21. Slide 21: Annex: Back-up Slides

    Annex: Back-up Slides

  22. Slide 22: GPW Group’s Consolidated Profit & Loss Account

    GPW Group’s Consolidated Profit & Loss Account PLN mn Q4'16 Q3'17 Q4'17 2016 2017  Operating expenses Revenue 81.7 81.1 92.2 310.9 352.0  Q3 2017: adjustment of fees to Financial market 49.7 48.9 51.9 184.0 208.8 PFSA at GPW Group level down Trading 33.2 31.9 34.6 119.1 141.3 by PLN 5.8m (PLN 11.4

  23. Slide 23: GPW Group’s Consolidated Cash Flows

    GPW Group’s Consolidated Cash Flows PLN mn 2016 2017 Cash flows from operating activities, including among others: 205.8 155.9  Cash flows from operating activities: Cash flows from operating activities 226.9 213.1 significant cash flows due to changes in Net profit of the period 131.1 156.1 receiv

  24. Slide 24: GPW Group’s Revenue Structure

    GPW Group’s Revenue Structure PLN 352.0 mn PLN 133.2 mn 0.3% Other revenues 0.1% Information services 11.7% Clearing Commodity Register of Certificates of Origin market: 8.7% Trading - other 40.4% 40.4% 3.1% Trading - property rights Trading - natural gas 11.3% Trading - energy 3.1% 2.5% Information

  25. Slide 25: 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 (thou.) Value of trading in equities, EOB (PLN bn) 31.1%1 80.2 70.1 65.9 55.3 51.9 55.5 51.4  Revenue drivers: 48.4 46.4 38.2 251 236  Value of trading in equiti

  26. Slide 26: Financial Market: Trading in Derivatives

    Financial Market: Trading in Derivatives Volume of trading in derivatives Number of Open Interest (thou.) 3.4%2 184.8 168.1 165.0 132.8 137.2 138.1 140.1 131.0 104.2 80.4  Revenue drivers: 15.5 13.8 14.7 12.6 11.3 12.6  Volume of trading in futures 9.5 8.2 8.0 7.6  Number of open interest 2008 20

  27. Slide 27: 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 Conditional 1,062 3.4%1 1,037 307 845 450 767 347 599 2.1%2 327 535 260 413 196 324 731 612 255 135 498 439  Revenue drivers: 84 101 339 338 188 158  Value of trading in Trea

  28. Slide 28: Financial Market: Listing

    Financial Market: Listing Market capitalisation of domestic companies Market capitalisation/GDP (%) 7.1%1 Market capitalisation of domestic companies (PLN bn) 36.8% 36.5% 34.8% 34.8%2 30.7% 32.0% 27.9% 28.9% 30.0%  Revenue drivers: 20.0% 671 593 591  Capitalisation at YE 421 543 446 523 517 557 26

  29. Slide 29: Financial Market: Information Services

    Financial Market: Information Services Number of data vendors Domestic Foreign 12.1%1 57 58 58 58 52 54 53 52 50 50 34 31 37 37 30 28 27 31 32 33  Revenue drivers: 24 27 24 25 25  Number of data vendors 19 18 19 20 21  Number of subscribers 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Number

  30. Slide 30: Commodity Market: Trading in Electricity and Gas

    Commodity Market: Trading in Electricity and Gas Volume of trading in electricity (TWh)1 Spot Forward 186.7 186.7 5.6%2 176.6 22.3 23.7 25.1 139.4 130.8 126.6 21.3 111.6 gaz 21.7 27.6 87.9 25.2  Revenue drivers: 13.4 154.3 163.0 161.6 109.1 118.1 99.0  Volume of trading in electricity 74.5 86.4 10

  31. Slide 31: Commodity Market: Trade in Property Rights

    Commodity Market: Trade in Property Rights Trade in property rights (TWh) Green certificates Cogeneration certificates 62.2 11.3%1 58.9 58.1 48.8 50.8 50.2 19.9 44.8 26.6 13.2 15.1 39.3 29.8 36.0 24.0 29.9 21.8  Revenue drivers: 42.4 35.6 35.7 32.1 35.2 32.3 26.2 28.3  Volume of trading in propert

  32. Slide 32: Commodity Market: Register of Certificates of Origin

    Commodity Market: Register of Certificates of Origin Volume of issued property rights (TWh) Green certificates 50.7 8.7%1 Cogeneration certificates 48.5 47.2 41.1 42.2 36.6 37.2 23.4 18.9 24.5 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  Volume of issued prop

  33. Slide 33: Glossary (1)

    Glossary (1) Cogeneration technological process where electricity and heat are generated simultaneously in a combined heat and power plant; thanks to lower consumption of fuel, cogeneration provides material economic benefits and environmental advantages over separate generation of heat in a traditi

  34. Slide 34: Glossary (2)

    Glossary (2) HVP High Volume Provider, a promotion programme addressed to legal entities whose core business is to invest on financial markets only on own account IPO Initial Public Offering, in this presentation, PwC IPOwatch Europe reports and FESE data, IPO means all offerings where a company fir

  35. Slide 35: Glossary (3)

    Glossary (3) RGO Register of Guarantees of Origin, register of instruments supporting renewable energy sources, which aim to provide disclosure for the end customer as to the amount of electricity generated in a renewable source and supplied to the power distribution or transmission network SPO Seco

  36. Slide 36: IR calendar and Disclaimer

    IR calendar Disclaimer  19-21 March 2018 This presentation has been prepared by Giełda Papierów Wartościowych w Warszawie S.A. (“Warsaw Stock Exchange”, “GPW” or “Company”) for CEE Capital Day - London 2018 organized by PKO its shareholders, analysts, and other contractors. This presentation has BP

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