Gielda Papierow Wartosciowych W Warszawie S.a. · GPW:GPW
Gielda Papierow Wartosciowych W Warszawie — Giełda Papierów Wartościowych w Warszawie S.A. (Warsaw Stock Exchange Group) — Daiwa Conference April 2021
30 slides from Gielda Papierow Wartosciowych W Warszawie's conference presentation, April 2021
Slide 1: Warsaw Stock Exchange Group Investor Presentation
Warsaw Stock Exchange Group Investor Presentation April 2021
Slide 2: History of GPW and future progress
History of GPW and future progress GPW aquires Aquis Exchange 2013 Launch of UTP trading system Launch of NewConnect 2007 (GPW alternative market) FTSE Russel decision Decision to build about promotion Poland GPW Trading Platform GPW shares 2017 to Developed Markets 2019 2010 debut on Launch of X-St
Slide 3: Key highlights of GPW
Key highlights of GPW ESG Diversified business profile Strongly committed to ESG Core Exchange related and IT services; with WIG ESG index and ESG Guidelines Attractive dividend (2021e: 5.4% DY). for issuers (May 2021). One of the EU’s most dynamic Operator of Central and Eastern IPO venues, and CEE
Slide 4: Attractive investment opportunity amongst Exchange and Polish peers
Attractive investment opportunity amongst Exchange and Polish peers One of the highest dividend yield among peers GPW’s dividend yield vs. WIG20 7,0% 7,0% 6,0% Dividend Yield 2021e (%)* 5,4% 6,0% Dividend Yield 2021e (%)* 5,4% 5,0% 5,0% 4,0% 4,0% 3,0% 3,0% 2,0% 2,0% 1,0% 1,0% 0,0% 0,0% Discount vers
Slide 5: GPW has a leading position in CEE region
GPW has a leading position in CEE region Rankings by Stock Exchange Market with significant domestic capitalisation (EUR bn)* Warsaw Stock Exchange 146 Vienna Stock Exchange 108 Athens Stock Exchange 42 Budapest Stock Exchange 23 Prague Stock Exchange 22 432 LISTED COMPANIES (49 FOREIGN COMPANIES) B
Slide 6: Advantageous mix of investors on GPW
Advantageous mix of investors on GPW Share of investors in trade in shares Share of investors in trade on the Main Market (%) on the futures market (%) institutional individual foreign institutional individual foreign 25 19 34 31 29 33 37 36 30 35 35 36 38 38 37 38 12 25 12 13 16 15 13 12 50 46 46 5
Slide 7: Wide range of products and services
Wide range of products and services GPW Group TRADING LISTING POST-TRADING MARKET DATA INCLUDING COR1 AND RGO2 MEMBERSHIP EQUITIES & OTHER DERIVATIVES BONDS COMMODITIES ▪ Equities ▪ Access and use of ▪ Equities ▪ Futures: ▪ Corporate bonds ▪ Electricity spot and ▪ Settlement ▪ Real-time data GPW tra
Slide 8: GPW shareholders map (% stake in capital)
GPW shareholders map (% stake in capital) ▪ 41.972.000: total number of GPW shares ▪ 27.283.530: free float (total number of GPW shares „minus” shares held by State Treasury) ▪ 10.786.873: the number of GPW shares held by foreign investors ▪ 25.70%: share of foreign investors in GPW capital ▪ 39.54%
Slide 9: Attractive dividend policy
Attractive dividend policy 142.3% 1 4,5 2 150 Dividend per share (PLN) Dividend payout ratio (%) 4 77.1% 3,5 89.9% 93.2% 3 100 80.1% 63.3% 2,5 70.7% 2 45.2% 44.5% 1,5 50 31.0% 1 0,5 3.20 1.40 0.80 1.20 2.40 2.36 2.15 2.20 3.18 2.40 0 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 6.1% 3.8% 2.0%
Slide 10: Ambitious financial targets
Ambitious financial targets GPW Group financial targets for 2022 REVENUE EBITDA ROE COST/INCOME DIVIDEND PLN PLN C/I under ▪ dividend payout rate 470 mn 250 mn 19% 50% not lower than 60% of consolidated net profit in 2022 in 2022 in 2022 after 2022 (it may temporarily fall (it may temporarily range
Slide 11: Strategic initiatives of #GPW2022
Strategic initiatives of #GPW2022 GPW Group STOCK MARKET DEBT MARKET DERIVATIVES COMMODITY INFORMATION NEW BUSINESS MARKET MARKET PRODUCTS LINES Securities BondSpot Derivatives Organized GPW Data GPW Private Market Lending Platform development Development Trading Facility (OTF) GPW TCA TOOL GPW Tech
Slide 12: Key drivers of further growth
Key drivers of further growth Strong macro readings for Poland ▪ GDP: to grow by +4.1% in 2021 and +5.4% in 2022 ▪ Accumulated nominal GDP Growth Active development activities 2007-19: +45.7% (highest in EU) ▪ Strategy implementation ▪ Inflation: +3.1% projection in 2021 and +2.8% in 2022 ▪ New IPOs
Slide 13: The potential of local investors
The potential of local investors Polish institutional investors Supported by new employee capital plans (PPK) ANNUAL PPK FUNDS INFLOWS [PLN bn] ASSETS IN PENSION FUNDS [PLN BN] PPK FUNDS ASSETS [PLN bn] ASM. 30% PARTICIPATION IN THE PROGRAMME 2.8 12.8 10.3 10.7 9.6 10 1.4 6.5 155 148 3.8 2.9 3 3.1 3
Slide 14: Record-high revenue and EBITDA in 2020
Record-high revenue and EBITDA in 2020 Sales revenue PLN mn Operating expenses PLN mn 59,0% 53,9% 403.8 49,7% 51,6% C/I +20.1% 336.1 208.5 Key highlights: 181.1 PFSA 13.9 PFSA 6.8 +15.1% ▪ Diversified business model 80.3 115.9 +44.4% 47.4 57.6 174.4 194.6 with growth correlation to +21.5% different
Slide 15: Sound financial performance
Sound financial performance Solid top-line growth … … and high operating leverage EBITDA, PLN mn EBITDA margin, % Total revenue, PLN mn 61.1% 58.2% 57.5% 55.5% 54.9% 54.4% 55.6% 51.8% 51.1% 50.7% 47.1%48.1% CAGR +6.6% 403.8 224.6 352.0 346.8 336.1 212.2 202.0 317.6 327.9 310.9 193.2 180.2 183.7 268.
Slide 16: CAPEX and OPEX 2016 - 2020
CAPEX and OPEX 2016 - 2020 CAPEX PLN mn CAPEX CAPEX/Revenue (%) ▪ 2020 CAPEX was PLN 36.4 mln due to 9.0% strategic intitaives implementation 7.6% 6.4% 6.1% 5.0% ▪ The Group’s total capital expenditure amounted to PLN 36.4 mn including 36.4 expenditure for property, plant and equipment 23.6 22.7 at
Slide 17: ESG – environmental, social, governance factors
ESG – environmental, social, governance factors Development of ESG competences Support for issuers and investors Product development The Warsaw Stock Exchange and the companies of the GPW Group pursue their business operations in compliance with the highest business and ethical standards, taking int
Slide 18: Appendices
Appendices
Slide 19: Largest economy in the CEE region…
Largest economy in the CEE region… Largest economy in CEE And 7th largest economy in the EU (including UK) Nominal GDP in 2020 (EUR bn) Population (mn) Nominal GDP in 2020 (EUR bn) Poland 580 38.4 Germany 3780 Austria 433 8.9 UK 2638 Romania 249 19.6 France 2551 Czech Rep. 242 10.6 Hungary 150 9.8 I
Slide 20: … a leader of economic growth
… a leader of economic growth Polish economy forecast to bounceback strongly Poland’s credit ratings ▪ Poland’s GDP to grow by 4.1% in 2021 and to grow by 5.4% in 2022 - according to National Bank of Poland (NBP) projection in March 2021. A2 A- A- outlook stable outlook stable outlook stable ▪ NBP e
Slide 21: Employee Capital Plans (PPK)
Employee Capital Plans (PPK) 1st pillar Employee Pension Plans 2nd pillar (PPE) (obligatory) (obligatory since 2013 r., now optional) IKE IKZE ZUS OFE Employee Capital Plans (social security) (OPF - Open Pension Funds) (PPK) PUBLIC FUNDS PUBLIC FUNDS PRIVATE FUNDS ▪ Employee Capital Plans (ECP)/Prac
Slide 22: Employee Capital Plans (ECP) / PPK
Employee Capital Plans (ECP) / PPK ECP intruduction schedule Equities/debt share in total assets Size od company Number of potential Stage (number of employese) participants (mn) Schedule Time left to the defined date Equities Debt I >250 3.3 started (reaching 60 years old) II 50-249 2 started >20 y
Slide 23: PPK assets: PLN 3.26 billion
PPK assets: PLN 3.26 billion AuM of target-date funds 3 500 000 Assets under management PPK (PLN mn) 3 000 000 2 500 000 2 000 000 1 500 000 1 000 000 500 000 0 Q4’19 Q1’20 Q2’20 Q3’20 Q4’20 Q1’21 ▪ PLN 3.26 bn – PPK AuM ▪ According to PFR (Polish Development Fund) forecasts, PPK assets should reach
Slide 24: Estimated yearly inflows into PPK (PLN bn)
Estimated yearly inflows into PPK(PLN bn) Estimated inflows into Polish equity market 4,5 3,8 4,0 3,7 3,6 3,3 3,4 3,5 3,1 3,2 2,9 3,0 3,0 bn PLN 2,5 1,9 2,0 1,5 1,0 0,8 0,5 0,0 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Assumptions: Estimated inflows into capital market 1. Participation
Slide 25: Attractive investment opportunity amongst Polish peers
Attractive investment opportunity amongst Polish peers GPW shares in electronic order book in 2020 GPW stock price in 2020 v. mWIG40 and WIG ▪ Turnover value: EUR 154.15 mn ▪ Turnover ratio: 59.4% ▪ Average trading volume per session: 64 592 ▪ Average numer of trades per session: 633 ▪ Average sprea
Slide 26: GPW Group’s consolidated statement of financial position
GPW Group’s consolidated statement of financial position PLN mn 31.12.2019 31.03.2020 30.06.2020 30.09.2020 31.12.2020 Non-current assets, including among others 586,1 587,8 577,4 579,7 588,8 ▪ Increase of assets as at 31 December Property, plant and equipment 102,0 98,2 95,6 93,4 97,3 2020 vs. 31 D
Slide 27: GPW Group consolidated statement of comprehensive income
GPW Group consolidated statement of comprehensive income PLN mn 2019 2020 Q4'19 Q4'20 ▪ YoY increase in sales revenue in 2020 driven by an increase in trading revenue on the financial market Revenue 336,1 403,8 80,3 115,9 Financial market 185,0 256,0 43,6 78,6 by 38.4% YoY i.e. PLN 71.0 mn to PLN 25
Slide 28: GPW Group consolidated statement of cash flows
GPW Group consolidated statement of cash flows PLN mn 12 months period ended 31 December of 2020 2019 Total net cash flows from operating activities 231,4 191,1 Net prof it of the period 151,4 119,3 Adjustments: 112,8 113,7 Income tax 37,6 30,5 Depreciation and amortisation 36,3 37,1 Share of (profi
Slide 29: GPW Group’s revenue structure
GPW Group’s revenue structure: incremental for 12 months ended 31 December 2020 GPW Group: PLN 403.8 mn incl. TGE Group: PLN 144.3 mn 0,9% Other(0,9%) 0,2% Market data (commodity market) 11,6% Commodity Clearing Market: 35.7% 35,7% Register of Certificates of Origin 6,0% Other 3,3% Trading - propert
Slide 30: Contact
Disclaimer This presentation has been prepared by Giełda Papierów Wartościowych IR events w Warszawie S.A. (“Warsaw Stock Exchange”, “GPW” or “Company”) for its shareholders, analysts, and other contractors. This presentation has been prepared solely for information and is not an offer to buy or sel