Gielda Papierow Wartosciowych W Warszawie S.a. · GPW:GPW
Gielda Papierow Wartosciowych W Warszawie — Giełda Papierów Wartościowych w Warszawie S.A. (Warsaw Stock Exchange) — H1 2012 Earnings Presentation
42 slides from Gielda Papierow Wartosciowych W Warszawie's earnings presentation, Aug 30, 2012
Slide 1: Results of WSE Group in H1 2012
Results of WSE Group in H1 2012 Warsaw, 30 August 2012
Slide 2: Solid Business Fundamentals
SOLID BUSINESS FUNDAMENTALS WSE Group Financial Results change v. change v. PLN’000 H1 2012 Q2 2012 H1 2011 Q2 2011 Under competitive pressure, the WSE’s Sales revenues 134 048 -2.5% 70 110 2.6% diversified business model stands the test of Operating expenses 74 335 14.1% 39 326 15.4% increased unc
Slide 3: Equities: Main Market
EQUITIES: MAIN MARKET Quarterly trading value, PLN bn Capitalisation, end of quarter, PLN bn 67.8 71.1 71.5 561 556 57.7 59.3 Capitalisation of 455 446 488 473 domestic companies 43.3 286 268 198 197 226 197 Capitalisation of foreign companies Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q1/11 Q2/11 Q3/11 Q4
Slide 4: Long-Term Growth of the Equities Market
LONG-TERM GROWTH OF THE EQUITIES MARKET Concentration of trade in TOP5 stocks1 Stock turnover ratio1 (% of total session trading) (turnover/capitalisation, %) 93 64 97 60 68 54 57 57 54 53 53 50 63 45 64 69 52 37 42 42 42 42 46 38 32 35 27 30 27 26 38 22 23 26 2002 2003 2004 2005 2006 2007 2008 2009
Slide 5: Derivatives
DERIVATIVES Quarterly volume of trading in derivatives, m instruments1 Volume of trading in derivatives up in Q2 v. Q1 2012 amid modestly higher WIG20 index volatility 4.66 3.99 WSE still Europe’s #4 exchange by trading in stock 3.66 3.25 3.19 index futures in H1 2012 2.76 Five new classes of sin
Slide 6: WSE Group Bond Markets
WSE GROUP BOND MARKETS Value of trading on TBS Poland (PLN bn) and share of the Nominal value of bonds and trading on Catalyst, PLN bn Wartośd obrotów na TBS Poland (mld PLN) platform in total trading in Treasury bonds (%)1 non-Treasury bonds 250 10.9% Nominal value of bonds 12.0% Cash market, RHS 2
Slide 7: WSE Group Bond Markets: Growth of Catalyst
WSE GROUP BOND MARKETS: GROWTH OF CATALYST Value of the market of non-Treasury debt to GDP in Structure of trade on Catalyst 350% Poland and globally1 (H1 2012, session + block trades) Corporates 4% 0.3% 300% Financial institutions 13% Corporate bonds 250% Corporate bank 200% bonds Treasury bonds 15
Slide 8: Commodity Market
COMMODITY MARKET Volume of trading on WSE commodity markets (poee WSE EM and Polish Power Exchange, TWh) +1.7% -34.2% +27.8% 45.4 34.2 10.9 11.1 29.9 26.8 H1/11 H1/12 H1/11 H1/12 H1/11 H1/12 Electricity – spot trade Electricity – forward trade Property rights to certificates of origin of energy Si
Slide 9: IPO Market
IPO MARKET Number of IPOs in Europe, Q2 2012 1 Issuers active on WSE markets (for/as at the end of Q2 2012) Deutsche Boerse: 12 Main Market LSE Group: 21 6 new listings 434 listed companies, incl. 40 foreign companies NYSE Euronext: 8 28 new listings 397 listed companies, incl. 7 Nasdaq OMX: 2 f
Slide 10: Market Environment: Domestic Institutional Investors
MARKET ENVIRONMENT: DOMESTIC INSTITUTIONAL INVESTORS Investment fund AuM as % of GDP, end of 20111 Structural conditions conducive to long- 80% 70.1% 70% term growth of investment fund assets, 60% assets at 6.8% of GDP 50% 40% 30% 20% 6.8% Shares were 32.4% of pension funds’ 10% 0% portfolios at
Slide 11: Share of Investors in WSE Trading
SHARE OF INVESTORS IN WSE TRADING1 Equities, Main Market (%) Equities, NewConnect (%) Futures, (%) +3.0 p.p. +10.0 p.p. +7.0 p.p. Change of the share of foreign investors Change of the share of institutional investors Change of the share of foreign investors 2 2 2 3 11 12 10 11 14 16 17 36 6 10 20 4
Slide 12: WSE Group Financial Results
WSE Group Financial Results 12
Slide 13: WSE Group Key Financials
WSE GROUP KEY FINANCIALS Sales revenue (PLN m) Operating profit (PLN m) Net profit (PLN m) +2.6% - 7.2% - 18.7% 68.3 70.4 70.1 34.2 35.7 60.9 63.9 33.8 38.1 31.4 33.5 32.9 27.1 24.5 26.7 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Revenues up by 2.6% i
Slide 14: Revenue Structure
REVENUE STRUCTURE Revenue structure, change v. change v. Q2 2012 v. Q2 2011 (PLN’000, %) PLN’000 H1 2012 Q2 2012 H1 2011 Q2 2011 Revenues 134 048 -2.5% 70 110 2.6% 68 305 70 110 Financial market 108 299 -19.4% 51 341 -22.6% Equities Trading – equities 52 838 -31.8% 23 462 -37.5% Derivatives 33.5% Tr
Slide 15: Stable Sources of Revenue
STABLE SOURCES OF REVENUE Q2/11 Q1/12 Q2/12 PLN m H1/11 H1/12 +5.7% +13% 3.78 3.57 7.34 3.37 revenue 6.50 from trading Growing revenue on TBSP drives growth of revenue from bond trading in bonds -14.5% -8% Revenue in Q2 2012 greater than in Q1 2012 among others owing to higher receipts from 6.48
Slide 16: Profitability Ratios
PROFITABILITY RATIOS Return on Equity (ROE) Operating profit margin -4.8 p.p. +1.2 p.p. 49.5% 55.8% 23.0% 24.9% 44.7% 23.7% Q2/11 Q1/12 Q2/12 Q2/11 Q1/12 Q2/12 EBITDA margin EPS, PLN -8.2 p.p. -PLN 0.16 61.6% 69.1% 53.4% 0.78 0.79 0.62 Q2/11 Q1/12 Q2/12 Q2/11 Q1/12 Q2/12 High return on equity and EB
Slide 17: Operating Expenses
OPERATING EXPENSES Consolidated operating expenses of Q2 2012 include PLN 7.5 m of PolPX Group costs WSE’s separate operating expenses were PLN 28.9 m in Q2 2012, down by 3.5% v. Q1 2012 and down by 8.1% v. Q2 2011 Other operating expenses 6% Salaries 39% Depreciation/amo change v. rtisation PLN
Slide 18: WSE Commodity Market – Financials
WSE COMMODITY MARKET – FINANCIALS Structure of revenues in the WSE commodity market segment, Q2 2012 (poee WSE EM and PolPX Group) Trade in electricity (spot) Trade in electricity 5% (forward) 8% Clearing 26% Trade in property rights 18% Register of certificates 34% Other fees from Consolidation o
Slide 19: Group Balance Sheet
GROUP BALANCE SHEET PLN m 30.06.2012 31.03.2012 31.12.2011 30.09.2011 30.06.2011 Non-current assets 516 251 513 308 355 291 348 875 393 975 Property and equipment 134 649 129 332 128 672 125 003 118 047 Intangible assets 213 593 209 888 60 621 59 763 59 452 Current liabilities grew to Investment i
Slide 20: WSE Investor Relations
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 21: Additional Slides – Financial Data
Additional Slides – Financial Data 21
Slide 22: Consolidated Statement of Comprehensive Income
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 2011 2010 Q2 2012 Q1 2012 Q4 2011 Q3 2011 Q2 2011 Q1 2011 Q4 2010 Q3 2010 PLN’000, under IFRS Revenues 268 797 225 629 70 110 63 938 60 907 70 421 68 305 69 164 60 181 53 971 Financial market 262 154 221 576 51 341 56 958 58 762 68 985 66 340 68 068 57
Slide 23: External Services, Financial Ratios
EXTERNAL SERVICES, FINANCIAL RATIOS PLN’000, consolidated 2011 2010 External services 36 235 42 101 Property renovations and maintenance 11 914 11 433 Advertising expenses 6 897 12 968 Electronic data transfer 6 543 5 224 Consulting and audit fees 2 446 3 943 Press announcements 31 99 Staff training
Slide 24: Balance Sheet – Assets
BALANCE SHEET – ASSETS Q2 2012 Q1 2012 Q4 2011 Q3 2011 Q2 2011 PLN’000, under IFRS Non-current assets 516 251 513 308 355 291 348 875 393 975 Property and equipment 134 649 129 332 128 672 125 003 118 047 Intangible assets 213 593 209 888 60 621 59 763 59 452 Investment in associates 147 045 152 537
Slide 25: Balance Sheet – Equity and Liabilities
BALANCE SHEET – EQUITY AND LIABILITIES Q2 2012 Q1 2012 Q4 2011 Q3 2011 Q2 2011 PLN’000, under IFRS Equity 525 409 560 793 524 492 499 288 460 992 Share capital 63 865 63 865 63 865 63 865 63 865 Other reserves -1 459 -2 681 270 98 -30 Retained earnings 455 429 492 202 459 074 434 149 396 154 Non-con
Slide 26: Cash Flow Statement
CASH FLOW STATEMENT H1/12 H1/11 PLN ‘000, under IFRS Cash flows from operating activities 40 563 53 737 Cash generated from operations 57 140 63 266 Income tax paid -16 577 -9 529 Cash flows from investing activities -81 771 27 649 Purchases of property and equipment -9 359 -4 299 Proceeds from sale
Slide 27: Revenues – Listing and Information Services
REVENUES – LISTING AND INFORMATION SERVICES Listing (PLN m) Information services (PLN m) Annual fees Introduction, listing fees and others Total Przychody ze sprzedaży informacji Number of subscribers ('000) 324.4 332.0 327.3 6.5 310.2 6.1 297.0 298.2 5.6 5.5 5.3 5.3 9.5 9.5 9.4 9.3 9.3 8.2 4.1 4.2
Slide 28: 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 2.6 3,985 4,325 1,738 2.0 1.6 2,215 1,941 380 620 217 -710 -217
Slide 29: Revenues – Trading: Financial Market
REVENUES – TRADING: FINANCIAL MARKET Shares (PLN m) Derivatives (PLN m) Fixed income (PLN m) Other3 (PLN m) 39.9 1 37.62 36.6 29.0 29.4 11.9 10.3 9.7 23.5 8.3 3.5 3.4 3.8 3.6 7.3 7.7 3.1 3.4 1.8 1.8 1.4 1.6 1.2 1.3 Trading, financial market (PLN m) 1 54.60 53.40 50.502 43.70 42.24 36.50 Q1/11 Q2/11
Slide 30: Slide Pool – Market Data
&Qy Slide Pool — Market Data 30
Slide 31: WSE Group Business Lines
WSE GROUP BUSINESS LINES Listing and trading (30.06.2012) Information services and other services Largest CEE exchange, with domestic market capitalisation of PLN 473 bn Provider of real-time trading data via 60 data (Main Market) and PLN 8.1 bn (NewConnect) vendors (297.0k subscribers at 30 June 20
Slide 32: 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 33: 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 20 434 14 18 450 426 0 0 1 0 2 1 1 0 1 1 400 400 374 379 351 350 300 284 255 Main Mar
Slide 34: 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 2.5 2.3 0.3 2.3 0.2 0.2 0.3 23 45 212 151 196 168 86 75 1.0 1.2 1.1 0.5 1.2 0.7 0.6 1.2 13 91 44
Slide 35: 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 36: Main Market Turnover
MAIN MARKET TURNOVER Quarterly value and turnover dynamics v. WIG index (PLN bn) Session trades Total turnover WIG index Block trades Change QoQ Equity trading (PLN bn) 51.7 60.6 52.3 69.7 67.8 71.1 71.5 57.8 59.3 43.3 17.4% -13.8% -33.4% -2.8% 4.9% 0.6% -19.3% 2.6% -26.9% Block trades Total turnove
Slide 37: 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 38: 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 39: Derivatives Market
DERIVATIVES MARKET 94.8 Index futures trading volume in Europe (H1 2012; m) Derivatives trading volume (m)1 212.5 44.9 4.66 4.07 4.10 3.99 17.6 3.66 3.22 3.33 3.25 3.19 5.1 4.5 2.76 4.2 2.6 0.2 0.9 0.6 0.5 0.0004 Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Structure of derivatives tr
Slide 40: Bond Market
BOND MARKET Wartośd obrotów na TBS Poland (mld PLN) Catalyst (instrumenty nieskarbowe) TBS Poland trading value (PLN bn) Catalyst (non-Treasury instruments) Cash market Repo/BSB Issue value (PLN bn) 260 243 237 50.0 Number of series 208 250 184 200 40.0 142 45.9 187 114 40.9 176 97 40.0 150 30.0 73
Slide 41: Exchange Members
EXCHANGE MEMBERS Countries Pochodzenie of origin zdalnych of remote członków members GPW Number of exchange members Sweden: 1 1 Remote Local Russia: 3 Lithuania: 1 UK: Netherlands: 1 10 Germany: 2 1 Ukraine: 1 Czech Rep.:3 31 30 30 France: 2 Austria:1 31 Hungary: 2 25 Romania:2 18 23 21 Bulgaria:1 1
Slide 42: 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%