Gielda Papierow Wartosciowych W Warszawie S.a. · GPW:GPW
Gielda Papierow Wartosciowych W Warszawie — Giełda Papierów Wartościowych w Warszawie S.A. (Warsaw Stock Exchange, WSE Group) — Q3 2012 Earnings Presentation
36 slides from Gielda Papierow Wartosciowych W Warszawie's earnings presentation, Nov 12, 2012
Slide 1: Results of WSE Group in Q3 2012
Results of WSE Group in Q3 2012 Warsaw, 12 November 2012
Slide 2: WSE Group in Q3 2012
WSE GROUP IN Q3 2012 Low turnover on equities and derivatives markets Seasonal reduction of volumes on the Property Rights Market and in the Register of Certificates of Origin (PolPX) Growth on bond markets: record-high cash transactions on Treasury BondSpot Poland; record-high value of non- T
Slide 3: WSE Group's Key Projects
WSE GROUP’S KEY PROJECTS FINANCIAL MARKET Final phase of implementation of the new trading system UTP COMMODITY MARKET (adoption of the new growth strategy 2012-2015) gas exchange to open in Q4 2012 or in Q1 2013 market of auctions and secondary trading in CO2 emission allowances to open depen
Slide 4: Main Market Equities Trading
MAIN MARKET EQUITIES TRADING Quarterly Value of Equities Trading, PLN bn 67.8 71.1 71.5 Session trading: PLN 45.1 bn in Q3 2012 57.7 59.3 52.5 Q3 2012 / Q3 2011 (-33.4%) 43.3 Q3 2012 / Q2 2012 (+7.0%) Block trading: PLN 7.3 bn in Q3 2012 Increase in block trading, among others, as a result
Slide 5: WSE and EU Equities Markets
WSE AND EU EQUITIES MARKETS WSE’s share in equities trading on small and mid-sized EU exchanges (quarterly) 1 45% WSE’s growing share in equities trading on small and mid- sized EU exchanges 1 30% Large exchanges reported less decrease in turnover than small and mid-sized exchanges 15% 0% 2008 2
Slide 6: Transaction Fees
TRANSACTION FEES Average transaction fee on equities Main Market (bp)1 New transaction fees as of 2013 2.4 2.5 2.3 Reduction of transaction fees on equities markets (Main Market and NewConnect) Reduced transaction fees for day trading in futures Reduced market maker fees 2010 2011 Q1-Q3 2012
Slide 7: IPOs
IPOS IPOs on Europe’s Equities Markets, Q3 2012 1 Issuer Activity on WSE Markets (for/as at the end of Q3 2012) Main Market LSE Group: 17 Deutsche Boerse: 5 2 IPOs (incl. 1 foreign IPO) 435 listed companies (incl. 41 foreign companies) Nasdaq OMX: 4 24 IPOs Luxembourg: 2 420 listed companies
Slide 8: Derivative Instruments
DERIVATIVE INSTRUMENTS Quarterly Volume of Trading in Derivatives (mn)1 Low volatility of WIG20 and the index’s horizontal movement prevailing for several 4.66 quarters curb the volumes on the futures market. 3.99 3.66 3.25 3.19 Volume of trading in derivatives down by 2.76 2.74 14% in Q3 2012 v
Slide 9: Bond Markets
BOND MARKETS Catalyst (non-Treasury instruments) TBS PolandWartośd – Value of Trading obrotów inPoland na TBS Treasury (mldBonds PLN) (PLN bn) Cash transactions Conditional transactions Value of listed issues (PLN bn) Number of series 302 50.0 243 260 300 208 250 237 184 45.9 48.8 40.0 142 200 40.0
Slide 10: Polish Power Exchange – Market Data
POLISH POWER EXCHANGE – MARKET DATA Volume of Trading on Markets Operated by PolPX (TWh) CDM DAM+ Intra Day PRM COR 64.0 17.8 18.0 Property rights: issued cancelled 16.0 xx.x – aggregate volume issued and cancelled 14.6 13.8 5.4 12.6 12.7 30.8 4.9 5.0 4.9 4.7 11.6 4.5 11.1 33.4 34.6 4.2 27.0 28.4 3.
Slide 11: PolPX Group – Strategy for 2012-2015
POLPX GROUP – STRATEGY FOR 2012-2015 PolPX Existing and Prospective Business Segments Goals of PolPx Group Strategy: To strengthen the position of PolPX as the biggest trading platform on Poland’s energy and energy commodity market. NEW To build up a broad portfolio of trading and CERTIFICATES: -
Slide 12: WSE Group Financial Results
WSE Group Financial Results 12
Slide 13: WSE Group Key Financials
WSE GROUP KEY FINANCIALS Sales Revenue (PLN mn) Net Profit (PLN mn) EBITDA 1 (PLN mn) -6.8% -32.0% -10.3% 70.4 70.1 65.7 41.8 44.2 60.9 63.9 38.1 37.4 37.4 33.5 33.0 24.5 26.7 25.9 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q3 2011 was record-high in
Slide 14: Revenue Structure
REVENUE STRUCTURE PolPX’s presence in WSE Group protects Group revenue against financial market cycles Sales revenue in Jan-Sep 2012 down by only 3.9% YoY Share of revenue from trading in equities in total revenue down from 55% in Jan-Sep 2011 to 38% in Jan-Sep 2012 Revenue from trading in e
Slide 15: WSE Group Operating Expenses
WSE GROUP OPERATING EXPENSES Operating expenses down by 12.4% in Q3 2012 v. Q2 2012. Oprating expenses up by 2.5% YoY in Q3 2012 due to consolidation of PolPX (as of March 2012). Separate operating expenses of WSE down by 11.7% YoY in Q3 2012. WSE’s advance fee to KNF in Q4 2012: PLN 4.2 mn.
Slide 16: PolPX Group - Financials
POLPX GROUP - FINANCIALS PolPX Group – Key Financials PLN mn March Q2 Q3 1 2012 2012 2012 Revenue 5.5 17.1 14.7 Operating expenses 2.3 7.5 4.4 PolPX Group results consolidated as of March Operating profit 3.3 9.6 10.4 2012. Net profit 2.8 7.9 8.8 Operating expenses down by 42% in Q3 2012 1 – con
Slide 17: WSE Group Balance Sheet
WSE GROUP BALANCE SHEET Growth of intangible assets in 2012 driven by goodwill on the PLN mn 30.09.2012 30.06.2012 30.09.2011 acquisition of PolPX (PLN 147.8 mn). Non-current assets 518.2 516.3 348.9 Property and equipment 133.9 134.6 125.0 Available-for-sale financial Intangible assets 214.5 21
Slide 18: WSE Investor Relations / Disclaimer
WSE Investor Relations ir@gpw.pl ul. Książęca 4 00-498 Warsaw Disclaimer This presentation has been prepared by Giełda Papierów Wartościowych w Warszawie S.A. (“Warsaw Stock Exchange”, “WSE” or “Company”) for its shareholders, analysts, and other contractors. This presentation has been prepared sole
Slide 19: Additional Slides – Financial Data
Additional Slides – Financial Data 19
Slide 20: Revenues – Listing and Information Services
REVENUES – LISTING AND INFORMATION SERVICES Listing (PLN m) Information services (PLN m) Total Annual fees Introduction, listing fees and others Number of subscribers ('000) Przychody ze sprzedaży informacji 324.4 332.0 327.3 6.5 310.2 6.1 298.2 297.0 285.1 5.6 5.5 5.3 5.3 5.2 9.3 9.5 9.5 9.4 9.3 8.
Slide 21: Profit of Associates and Net Financial Income
PROFIT OF ASSOCIATES AND NET FINANCIAL INCOME Share of profit of associates (PLN’000) Net financial income (PLN m) KDPW Group (WSE stake: 33.33%) Centrum Giełdowe (WSE stake: 24.79%) 5,438 7.8 Total 4,577 4,420 1 3,614 5,058 1,998 3,957 2,013 2.6 3,985 4,325 1,738 2.0 1.6 2,215 1,563 1,941 380 620 4
Slide 22: Revenues – Trading: Financial Market
REVENUES – TRADING: FINANCIAL MARKET Shares (PLN m) Derivatives (PLN m) Fixed income (PLN m) Other3 (PLN m) 39.9 137.6 2 36.6 29.0 29.4 11.9 10.3 23.5 23.7 9.7 3.8 3.6 4.1 8.3 7.3 7.7 6.3 3.1 3.4 3.5 3.4 1.6 1.8 1.8 1.7 1.2 1.3 1.4 Trading, financial market (PLN m) 1 54.6 2 53.4 50.5 43.7 42.2 36.5
Slide 23: Investments and Debt
INVESTMENTS AND DEBT Investment expenditures, PLN m Debt ratios 1 2009 17.9 * 30.09.2012 30.09.2011 2010 36.7 Debt to equity ratio2 46.8% 0.0% 2011 25.3 2012 2 93.0 The Group’s major investment in Jan-Sep Cost of debt service at PLN 3.9 m in Q3 2012, 2012 was acquisition of PolPx. The 3.8 m in Q
Slide 24: Additional Slides – Market Data
Additional Slides – Market Data 24
Slide 25: WSE Group Business Lines
WSE GROUP BUSINESS LINES Listing and trading (30.09.2012) Information services and other services Provider of real-time trading data via 58 data Largest CEE exchange, with domestic market capitalisation of PLN 484 bn vendors (285.1k subscribers at 30 September 2012) (Main Market) and PLN 9.2 bn (New
Slide 26: UTP: State-of-the-Art Technology in Q4 '12
UTP: STATE-OF-THE-ART TECHNOLOGY IN Q4 ‘12 WARSET capacity UTP capacity Number of incoming messages per second (during a session) 750 20 000 Number of transactions per day 1 500 000 Fully scalable Number of outgoing market data messages per second 15 000 000 Fully scalable Latency of the trading sys
Slide 27: Issuers and New Listings
ISSUERS AND NEW LISTINGS NC: number of new listings Main Market: number of listed companies and new listings (long-term perspective) Domestic Foreign Number of listed companies New listings 53 36 41 38 500 28 25 27 24 20 435 14 18 450 426 0 1 2 1 1 1 1 400 400 374 379 351 350 300 284 255 Main Market
Slide 28: Attractive Venue for Issuers
ATTRACTIVE VENUE FOR ISSUERS Main Market – offering value (PLN bn) NewConnect – shares offering value (PLN m) IPO SPO Previously listed companies 0.1 Newly listed companies 520 17.8 12.8 42 0.2 5.7 46 44 226 2.3 0.3 2.3 0.2 0.2 0.3 0.0 23 45 1.0 2.5 1.2 1.1 0.5 1.2 0.7 0.6 1.2 1.5 13 91 44 212 151 1
Slide 29: Capitalisation of Domestic Companies and GDP
CAPITALISATION OF DOMESTIC COMPANIES AND GDP Capisalisation of domestic companies and WIG index Capitalisation of domestic companies to Polish GDP1 GDP (PLN bn) Capitalisation of domestic companies (PLN bn) Capitalisation/GDP Capitalisation of domestic companies (PLN bn) WIG index (%) 1,400 80% 0 1,
Slide 30: Main Market Turnover
MAIN MARKET TURNOVER Quarterly value and turnover dynamics v. WIG index (PLN bn) Session trades WIG index Block trades 7.3 3.7 11.8 3.9 6.9 2.6 4.4 6.1 2.7 7.8 1.2 63.9 63.8 67.8 53.8 57.9 55.2 54.9 45.6 49.6 45.2 42.2 Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 60.9 55.1 51.7
Slide 31: Value of Trading and Number of Trades
VALUE OF TRADING AND NUMBER OF TRADES Session trading value (PLN bn) Block trading value (PLN bn) Total trading value (PLN bn) Average number of trades per session ('000) 300 140 268.1 250 239.7 234.3 120 100 200 175.9 169.3 165.7 80 150 60.8 60 98.5 51.4 55.3 100 45.0 48.4 59.8 38.2 40 50 40.3 31.8
Slide 32: Equities Markets: Long-Term Perspective
EQUITIES MARKETS: LONG-TERM PERSPECTIVE Monthly value of session trading on WSE Main Market NewConnect: capitalisation (PLN bn) and 2001 – H1 2012 (PLN bn) new listings Capitalisation New listings 30 25 9 8.5 180 172 8 160 20 7 140 6 5.1 120 15 5 100 4 86 10 80 3 61 2.6 60 5 2 1.2 1.4 40 1 26 24 20
Slide 33: Derivatives Market
DERIVATIVES MARKET 94.8 Index futures trading volume in Europe (Q1-Q3 2012; m) Derivatives trading volume (m)1 212.5 44.9 25.3 4.66 4.07 4.10 3.99 3.66 3.22 3.33 3.25 3.19 7.2 6.9 6.0 2.76 2.74 4.0 0.3 1.1 0.7 0.6 0.0005 Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Structure of
Slide 34: Exchange Members
EXCHANGE MEMBERS Number of exchange members Countries Pochodzenie of origin zdalnych of remote członków members GPW Sweden: 1 1 Remote Local Russia: 3 Lithuania: 1 UK: Netherlands: 1 9 Germany: 1 1 Ukraine: 1 29 28 28 27 Czech Rep.:2 29 France: 2 Austria:1 23 Hungary: 2 18 19 21 Romania:2 17 Bulgari
Slide 35: Investors
INVESTORS Share in equity trading on Main Market by investor type Share in futures trading by investor type 19% 24% 22% 20% 25% 36% 39% 32% 33% 34% 37% 39% 37% 34% 35% 35% 34% 37% 37% 36% 38% 36% 26% 19% 18% 19% 29% 29% 35% 35% 30% 18% 27% 79% 74% 74% 75% 66% 56% 53% 52% 50% 46% 47% 47% 47% 46% 35%
Slide 36: WSE Group and Shareholder Structure
WSE GROUP AND SHAREHOLDER STRUCTURE Shareholder structure by number of shares Warsaw Stock Exchange State Treasury - preffered shares Other shareholders - preffered shares Other shareholders - bearer shares Subsidiaries Associates BondSpot S.A. KDPW S.A. (92.47%) (33.33%) 35.00% 64.62% Polish Power