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

Gielda Papierow Wartosciowych W Warszawie — Giełda Papierów Wartościowych w Warszawie — Q1 2020 Earnings Presentation

41 slides from Gielda Papierow Wartosciowych W Warszawie's earnings presentation, May 2020

  1. Slide 1: Capital Market in Poland

    Capital Market in Poland May 2020

  2. Slide 2: Overview of main Polish Government initiatives

    Overview of main Polish Government initiatives Initiatives from the Financial Shield Regulatory initiatives 1 PLN 100 billion for protecting jobs (salary subsidies, additional 1 KNF and MinFin regulatory package care allowance, postponement (suspension) of loan repayment for 3 months, reducing the

  3. Slide 3: Capital Market in Poland – Overall Market performance

    Capital Market in Poland – Overall Market performance Main market indices: WIG, WIG20 and sample sector indices (YTD) WIG-Games and WIG-Tech are the best performing indices YTD despite the Covid-19 crisis 3 Source: GPW

  4. Slide 4: CEE and EM capital markets performance

    CEE and EM capital markets performance Main CEE and EM markets indices performance (YTD) WIG20 has experienced similar performance to its peers 4 Source: Thomson Reuters

  5. Slide 5: Capital Market in Poland – Exchange metrics

    Capital Market in Poland – Exchange metrics Total turnover value – shares and market capitalisation of domestic companies (PLN bn) Total turnover value soared in March 2020 5 Source: GPW

  6. Slide 6: Capital Market in Poland – Impact of Coronavirus on Pension Fund Reforms

    Capital Market in Poland – Impact of Coronavirus on Pension Fund Reforms OFE reform PPK funds Government has put its planned reform of the Government has extended deadlines for OFE pension funds on hold to an unspecified companies ( >50 employees) from the II phase future date of the implementation

  7. Slide 7: Capital Market in Poland – Update on inflows to equity and mixed funds

    Capital Market in Poland – Update on inflows to equity and mixed funds Inflows to funds, in PLN m and WIG returns, in % 7 Source: IZFiA, GPW analysis

  8. Slide 8: Update on Capital Markets Development Strategy (CMDS)

    Capital Market in Poland – Update on Capital Markets Development Strategy (CMDS) Overall vision Government adopts The By the end of year CMDS is expected to Capital Market improve the efficiency of administrative Development Strategy procedures regarding the functioning of Well-developed, dynamic an

  9. Slide 9: GPW Group’s Financial Results Q1 2020

    GPW Group’s Financial Results Q1 2020 15 May 2020

  10. Slide 10: GPW Group milestones and summary of trading on the financial market in Q1 2020

    1. GPW Group milestones and summary of trading on the financial market in Q1 2020 2. GPW Group financial results in Q1 2020 3. Summary of trading on the commodity market and TGE Group financial results in Q1 2020 4. Other financials 5. Appendices

  11. Slide 11: GPW Group milestones in Q1 2020

    GPW Group milestones in Q1 2020 Socially responsible contribution Maintained 100% reliability of to the fight against the exchange trading on GPW Group pandemic and TGE Group platforms since (donation of PLN 1 milion for start of COVID-19 equipment at Siedlce and Radom Sanitary Stations) Increase of

  12. Slide 12: Growing investor activity on the stock market

    Growing investor activity on the stock market Value of EOB trading on the Main Market  Increase in the value of EOB trading in equities to PLN 61 bn in Q1’20 +36.8% QoQ and +19.2% YoY EOB Trading PLN bn Turnover velocity (source: FESE)  Velocity ratio at 48.8% in Q1’20 vs. 32.8% in Q1’19 80 60 ,00

  13. Slide 13: Growing volumes in derivatives trading driven by high volatility of the underlying

    Growing volumes in derivatives trading driven by high volatility of the underlying Volume of trading in derivatives  Volume of derivatives trading increased to 3.1 +80,8% mn in Q1’20: +84.4% QoQ and +80.8% YoY. 3,1  Volume of trading in WIG20 futures increased mn. to 1.86 mn in Q1’20: +96.3% QoQ a

  14. Slide 14: Trading highlights Q1’2020

    Trading highlights Q1’2020 • Value of equities trading PLN 61.2 bn – on the Main Market +19% YoY the highest since Q1’17 • Total volume of derivatives 3.1 mn – trading in derivatives +81% YoY the highest since Q1’14 • Value of equity trading on PLN 1.4 bn – NewConnect +242% YoY the highest ever • Va

  15. Slide 15: GPW Group financial results in Q1 2020

    1. GPW Group milestones and summary of trading on the financial market in Q1 2020 2. GPW Group financial results in Q1 2020 3. Summary of trading on the commodity market and TGE Group financial results in Q1 2020 4. Other financials 5. Appendices

  16. Slide 16: Strong financial results of GPW Group in Q1’20

    Strong financial results of GPW Group in Q1’20  Sales revenue Sales revenue Operating expenses Sales revenue increased in Q1’20 by PLN mn 64,5% C/I 15.3% YoY driven by higher revenue +15.3% 59,0% 57,8% both from the financial market and 97.0 PLN mn on the commodity market. 84.2 +3.2% 80.3 +20.9% 54

  17. Slide 17: Strong financial results driven by above-average market volatility

    Strong financial results driven by above-average market volatility Sales revenue EBITDA and EBITDA margin Net profit and net profit margin 64.6% 67.8% 51.3% 51.6% 47.7% 49.8% 45.8% PLN mn 29.1% 30.2% +15.3% 14.0% 97.0 PLN mn 89.1 84.2 82.5 +29.8% 80.3 PLN mn 57.6 55.9 +19.7% 50.0 41.2 42.6 41.1 38.6

  18. Slide 18: Increase in trading revenue from the financial market

    Increase in trading revenue from the financial market  Trading revenue from the financial market at PLN 41.5 mn Q1’20: 42,8% in Q1’20 (+29.7% YoY) Trading revenue – financial market  Average EOB turnover in shares per session on the Main PLN mn Market in Q1’20 at PLN 986.4 mn vs. PLN 834.6 mn in +

  19. Slide 19: Stable listing revenue

    Stable listing revenue Q1’20: 5,5% Listing revenue  Three IPOs on NewConnect in Q1’20 (Plantwear, PLN mn Drageus Games, SpyroSoft).  SPO value in Q1’20 892 PLN mn vs. 192 PLN mn in Q1’19. +1.9%  Listing revenue in Q1’20 stable YoY. 447 listed 5.3 5.4 5.1 5.0 companies at the end of Q1’20 vs. 461

  20. Slide 20: Stable revenue from information services

    Stable revenue from information services – financial market and commodity market Q1’20: 12,5% Revenue from information services – financial market PLN mn  New clients of GPW data in different market segments attracted in Q1’20: Market Data (commodity market) ✓ 2 GPW Group data vendors Market Data (

  21. Slide 21: Summary of trading on the commodity market and TGE Group financial results

    1. GPW Group milestones and summary of trading on the financial market in Q1 2020 2. GPW Group financial results in Q1 2020 3. Summary of trading on the commodity market and TGE Group financial results in Q1 2020 4. Other financials 5. Appendices

  22. Slide 22: Trading on the commodity market in Q1’20

    Trading on the commodity market in Q1’20 Volume of spot and forward trading in electricity and gas  Electricity market – Total volume of trading in Electricity (TWh) Natural gas (TWh) electricity in Q1’20 at 66.6 TWh (+50.3% YoY). Volume of spot transactions at 8.5 TWh (-0.4% YoY). Volume of 39.6 4

  23. Slide 23: Revenue from the electricity, gas, and property rights markets

    Revenue from the electricity, gas, and property rights markets Q1’20: 19,5%  Revenue from trading in electricity in Q1’20 increased to PLN Trading revenue – commodity market 4.8 mn (+50.0% YoY) due to a sharp increase of forward trading combined with flattish spot trading. PLN mn  Revenue from tra

  24. Slide 24: Revenue from clearing

    Revenue from clearing Q1’20: 13,5% Revenue from clearing PLN mn  Revenue from clearing increased in Q1’20 to PLN +20.3% 13.1 mn (+20.3% YoY). 12.4 13.1  Revenue from the operation of the Register of 12.2 10.9 10.8 Certificates of Origin decreased in Q1’20 to PLN 5.9 mn zł (-22.9% YoY) mainly due t

  25. Slide 25: Other financials

    1. GPW Group milestones and summary of trading on the financial market in Q1 2020 2. GPW Group financial results in Q1 2020 3. Summary of trading on the commodity market and TGE Group financial results in Q1 2020 4. Other financials 5. Appendices

  26. Slide 26: Operating expenses impacted by higher external service charges, headcount, and salaries

    Operating expenses impacted by higher external service charges, headcount, and salaries Operating expenses: +3.2% YoY  Cost/income ratio (C/I)2 in Q1’20 at 57.8 PLN mn 56.1 54.3 vs. 64.5 in Q1’19. 47.4 10.0 PFSA (KNF) fee 12.9 43.3  Depreciation charges in Q1’20 at PLN 9.8 mn (+6.2% YoY). 36.1 9.4

  27. Slide 27: Share of profit of entities measured by the equity method

    Share of profit of entities measured by the equity method Share of profit PLN mn +100.2%  Group’s share of profit of associates in Q1’20 at PLN PAR KDPW 4.692 1.980 mn (+100.2% YoY). CG 3.638  KDPW: ✓ The Group’s share of profit of KDPW (GPW holds 1.943 1.980 33.33% of shares) in Q1’20 at PLN 1.84

  28. Slide 28: GPW Group’s consolidated balance sheet

    GPW Group’s consolidated balance sheet PLN mn 31.03.2019 30.06.2019 30.09.2019 31.12.2019 31.03.2020  The increase in total assets Non-current assets, including among others 598,2 586,2 585,6 590,1 587,8 as of March 31, 2020 Property, plant and equipment 104,5 100,6 97,3 102,0 98,2 compared to Dece

  29. Slide 29: Appendix: Back-up slides

    Appendix: Back-up slides

  30. Slide 30: GPW Group’s revenue structure: incremental for 12 months ended 31 March 2020

    GPW Group’s revenue structure: incremental for 12 months ended 31 March 2020 GPW Group: 349,0 PLN mn including TGE Group: 153,5 PLN mn Other revenue (0,3%) Information services (commodity 0,3% 0,2% market) Clearing 13,9% Register of Certificates of Origin 7,5% Trading - other Commodity 3,7% Market:

  31. Slide 31: GPW Group’s consolidated profit and loss account

    GPW Group’s consolidated profit and loss account PLN mn Q1'19 Q4'19 Q1'20  Sales revenue increased YoY driven by an Revenue 84,2 80,3 97,0 increase of revenue from the financial market Financial market 49,5 43,6 58,7 (by PLN 9.2 mn) and the commodity market Trading 32,0 27,1 41,5 (by PLN 3.5 mn). L

  32. Slide 32: GPW Group’s consolidated cash flows

    GPW Group’s consolidated cash flows PLN mn 3 months period ended 31 March of 2020 2019 Total net cash flows from operating activities 67,1 102,4  Positive cash flows from operating Net prof it of the period 29,3 24,5 activities in Q1’20, down by PLN 35.3 Adjustments: 48,3 87,1 mn YoY mainly due to

  33. Slide 33: 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 (thous.) Value of trading in equities, EOB (PLN mn) 32,9%1 112.2 80.2 70.1 73.1 72.1 71.5 65.9 51.4 55.3 51.9 55.5 48.4 251 46.4 38.2 220 236 207 188 205 203 190 2

  34. Slide 34: Financial market: Trading in derivatives

    Financial market: Trading in derivatives Volume of trading in derivatives Number of Open Interest (thous.) 4,6%2 184.8 177.8 168.1 165.0 171.2 156.5 132.8 137.2 138.1 140.1 143.6 131.0 104.2  Revenue drivers: 80.4 ✓ Volume of trading in futures 14.7 15.5 12.6 13.8 11.3 12.6 9.5 8.2 8.0 8.2 7.6 7.0

  35. Slide 35: 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 transactions 2,9%1 Repo transactions 1.037 1.062 307 845 450 767 2,0%2 347 327 599 535 260 413 407 196 324 731 147 282  Revenue drivers: 135 612 498 255 86 439 84 101 339 338

  36. Slide 36: Financial market: Listing

    Financial market: Listing Capitalisation of domestic companies Market Capitalisation/GDP (%) 5,5%1 Market Capitalisation of domestic companies (PLN bn) 36.8% 36.5% 34.8% 34.8% 30.7% 32.0% 27.9% 28.9%30.0% 30.0%  Revenue drivers: 25.0% 20.0% 18.4% 671 593 591 579 ✓ Capitalisation at year end 421 543

  37. Slide 37: Financial and commodity market: Information services

    Financial and commodity market: Information services Number of data vendors Domestic 12,5%1 Foreign 83 85 78 57 58 58 58 37 38 52 54 53 52 36 50 50 37 34 31 37 30 28 27  Revenue drivers: 31 32 33 42 46 47 ✓ Number of data vendors 19 18 19 20 21 24 27 24 25 25 ✓ Number of subscribers 2008 2009 2010

  38. Slide 38: Commodity market: Trading in electricity and gas

    Commodity market: Trading in electricity and gas Volume of trading in electicity (TWh)1 Spot 226.1 228.9 8,4%2 Forward 176.6 186.7 186.7 27.7 33.9 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 25.2 198.3 195.0 154.3 163.0 161.6 66.6 8.5 109.1 118.1 44.3 ✓ Vol

  39. Slide 39: Commodity market: Trading in property rights

    Commodity market: Trading in property rights Spot trading in property rights (TWh) Green Certificates 2 62.2 7,5%1 Cogeneration certificates 58.9 59.3 58.1 48.8 50.8 50.2 19.9 36.0 44.8 43.9 15.1 39.3 32.126.6 29.8 30.8 9.6 13.2 3.9 24.0 29.9 25.9 6.8 21.8  Revenue drivers: 42.4 35.2 35.6 35.7 32.3

  40. Slide 40: 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 6,0%1 Cogeneration certificates 48,5 47,2 47,5 41,1 42,2 36,6 37,2 23,4 18,9 24,5 19,9 35,1 31,9 15,3 10,8 10,7 29,5 21,6 27,6 11,9 21,0  Revenue drivers: 18,0 27,3 28,3 27,6 5

  41. Slide 41: IR events Contact: GPW Investor Relations

    IR events Disclaimer  28-29 May 2020 This presentation has been prepared by Giełda Papierów Wartościowych w Warszawie S.A. (“Warsaw Stock Exchange”, “GPW” or “Company”) for its EME Financials, WOOD & Company, Warsaw shareholders, analysts, and other contractors. This presentation has been prepared

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