Slide 1: Q423 & FY23 Results Presentation
Flow Traders Ltd. Q423 & FY23 Results Presentation 8 February 2024 AMSTERDAM CLUJ HONG KONG LONDON MILAN NEW YORK PARIS SHANGHAI SINGAPORE Flow Traders |
Slide 2: Disclaimer
Disclaimer This presentation is prepared by Flow Traders Ltd. and is for information purposes only and the Forward-looking statements speak only as at the date at which they are made. Flow Traders expressly material contained in this document is provided ‘as is’. It is not a recommendation to engage
Slide 3: Q423 & FY23 snapshot
Q423 & FY23 snapshot Q423 saw an improvement in market trading volumes but volatility remained subdued. ETP Value Traded (€bn) Total Value Traded (€bn) Normalized Total Income (€m) Highlights Flow Traders Equity 6,764 NTI 460.6 Market trading volumes improved in Market 51,811 Fixed income Other in
Slide 4: Global ETP market continues to grow in Q423 and FY23
Global ETP market continues to grow in Q423 and FY23 ETP Value Traded (€bn) * Average Implied Volatility (VIX) 15,085 60 13,676 GENERAL MARKET DEVELOPMENTS 55 11,640 50 11,411 11,714 Market ETP Valued Traded increased by 1% y/y in 10,948 11,349 45 10,666 10,146 9,872 Q423 vs. Q322 but declined by
Slide 5: Fixed income and crypto market dynamics
Fixed income and crypto market dynamics TRACE volumes ($bn) US CDX index US High Grade US High Yield 600 IG (bps) HY (bps) BOND MARKET DEVELOPMENTS 2,708 2,546 500 2,353 2,325 2,335 U.S. Investment Grade and High Yield bond 2,163 2,179 700 2,186 volumes increased in Q423 on both a quarter- 612 400
Slide 6: Q423 & FY23 regional performance overview
Q423 & FY23 regional performance overview Market ETP Value Traded (€bn) Flow ETP Value Traded (€bn) NTI (€m) Q423 and FY23 Highlights -14% -22% -49% Maintained position as a leading liquidity provider in ETPs in Q423 and FY23 2,371 787 313 amidst subdued market trading volumes and low volatility w
Slide 7: Continued global expansion and asset class diversification
Continued global expansion and asset class diversification Geographical Mix (NTI, %) Asset Class Mix (NTI, %) 3% 3% 3% 14% 10% 12% 18% 6% 16% 17% 22% 32% 20% 22% 40% 22% 31% 19% 28% 10% 31% 15% 64% 64% 68% 69% 65% 59% 55% 57% 52% 52% 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 EMEA Americas AP
Slide 8: Continued investment to drive strategic growth - solid margins maintained despite lower revenues
Continued investment to drive strategic growth - solid margins maintained despite lower revenues Normalized fixed operating expenses (€m)* Normalized EBITDA margin (%) FTEs Employee expenses (fixed) Trading Technology Other Technology expenses Other expenses 45 +8% 42 174.1 639 660 667 653 658 646 1
Slide 9: Trading Capital
Trading Capital Shareholders’ Equity and Normalized ROE Trading capital 1,800 101% 110 1,800 140 Normalized ROE Shareholders’ Equity Return on trading capital (%) Total trading capital (€m) 1,600 100 1,600 120 90 1,400 1,400 80 100 1,200 70 1,200 77% 73% 54% 72% 71% 80 1,000 50% 60 1,000 63% 66% 67%
Slide 10: Supportive mega trends remain intact
Supportive mega trends remain intact Four key trends continue to shape Flow Traders’ market environment, largely offering an increased market opportunity set Digital assets ETP growth Electronification Regulation 2.5x ~50% $1.6 tr Total Crypto Market Number of national regulations Executed volumes
Slide 11: Key strategic objectives
Key strategic objectives Significant strategic achievements in 2023 with clear focus areas for 2024 FY23 achievements FY24 focus Deepen product Expansion with new offices in Enhancements to and expansion of Equity coverage and Chicago and Shanghai our global core ETP business geographic footprin
Slide 12: Q&A
Q&A Flow Traders | Q423 & FY23 Results 12
Slide 13: Thank you!
Thank you! AMSTERDAM CLUJ HONG KONG LONDON MILAN NEW YORK Flow PARIS Traders |SHANGHAI SINGAPORE
Slide 14: Appendix
Appendix Flow Traders | Q423 & FY23 Results 14
Slide 15: Unrecognized variable expenses schedule
Unrecognized variable expenses schedule Share plan has a different accounting treatment to the previous FCIP which creates an unrecognised variable expenses schedule 2023 charge 2024 charge 2025 charge Off balance liability 2024 2025 2026 2021 variable remuneration 1.4 0.0 0.0 Share 2025 -33% 11% 20
Slide 16: Normalized income statement (unaudited)
Normalized income statement (unaudited) Flow Traders | Q423 & FY23 Results 16
Slide 17: IFRS income statement (unaudited)
IFRS income statement (unaudited) Flow Traders | Q423 & FY23 Results 17
Slide 18: Recent monthly market updates
Recent monthly market updates Flow Traders | Q423 & FY23 Results 18