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

Gielda Papierow Wartosciowych W Warszawie — Giełda Papierów Wartościowych w Warszawie S.A. (GPW) — Q4 2019 Earnings Presentation

30 slides from Gielda Papierow Wartosciowych W Warszawie's earnings presentation, Apr 8, 2020

  1. Slide 1: GPW Group's Financial Results Q4 2019

    GPW Group’s Financial Results Q4 2019 8 April 2020

  2. Slide 2: Summary of the GPW Group's Activity in Q4 2019

    Summary of the GPW Group’s Activity in Q4 2019 Financial Results of the GPW Group in Q4 2019

  3. Slide 3: Business highlights in 2019

    Business highlights in 2019 Products Technology Relations • New ETF’s: Beta ETF WIG20TR, Beta • Launch of GPW Tech • Launch of GPW Growth Financial ETF mWIG40TR, Beta ETF • Launch of Proprietary • Courses for companies Market WIG20short Trading Platform with implementing PPK • NewConnect granted SME

  4. Slide 4: Net profit impacted by provision of PLN 15.5 mn

    Net profit impacted by provision of PLN 15.5 mn  Revenue Revenue Opex Revenue decreased by 9.3% YoY in Q4’19. PLN mn 53,1% C/I Annual revenue dropped by 3.1% YoY in 50,1% -3.1% 48,0% 47,1% 2019. 346.8 -9.3% +4.2% 336.1 PLN mn 88.5  Operating expenses 80.3 +11.6% 181.1 Operating expenses up by 11.6

  5. Slide 5: Investor activity in equity market

    Investor activity in equity market Value of EOB trade on the Main Market EOB Trading PLN bn  Velocity ratio: 31.0% in Q4’19 vs. 33.2% in Q3’19 Turnover velocity (source: FESE) and 32.9% in Q4’18. Velocity ratio 31.8% in 2019 vs. 34,9% 32,3% w 2018 r. 80 36 ,0% 34,3% 35 ,0% 70 33,3% 33,2% 32,9% 32,8

  6. Slide 6: Trade in derivatives

    Trade in derivatives Volume of trade in derivatives mn  Total volume of trade in derivatives: 1.68 -24.2% mn contracts in Q4’19 (-24.2% YoY, -15.2% 2.22 2.11 2.08 1.98 QoQ) 1.73 1.76 1.71 1.68 1.60 -15.2%  Total volume of trade in derivatives: 7.0 mn contracts in 2019 (-14.5% YoY, 8.2 mn in 2018)

  7. Slide 7: Trade in electricity, gas and property rights

    Trade in electricity, gas and property rights  Electricity market: Total volume of trade in electricity: 66.7 TWh Volume of spot and forward trade in in Q4’19 (-0.9% YoY, +2.6% QoQ). Volume of spot transactions: electricity and gas 9.0 TWh (+15.3% YoY, +11.8% QoQ). Volume of forward transactions: 5

  8. Slide 8: Financial Results of the GPW Group in Q4 2019

    Summary of the GPW Group’s Activity in Q4 2019 Financial Results of the GPW Group in Q4 2019

  9. Slide 9: Lower financial results in a difficult market environment

    Lower financial results in a difficult market environment Revenue EBITDA and EBITDA margin Net profit and net profit margin PLN mn 47.7% 49.8% 42.0% 64.6% 67.8% 59.6% 29.1% -9.3% 45.8% 51.3% 14.0% 88.5 89.1 84.2 82.5 PLN mn 80.3 -21.9% PLN mn 57.6 55.9 -69.8% 52.7 41.2 42.6 41.1 38.6 37.1 24.5 11.2

  10. Slide 10: Trading revenue on the financial market

    Trading revenue on the financial market Q4’19: 33,8%  Trading revenue on the financial market: PLN 27.1 mn Trading revenue – financial market in Q4’19 (-11.4% YoY, -9.3% QoQ). PLN mn  Average EOB turnover in shares per session: PLN 756.8 mn in Q4’19 (-8.5% YoY) -11.4%  Average fee on the stock ma

  11. Slide 11: Listing revenue on the financial market

    Listing revenue on the financial market Q4’19: 5,3%  One debut on the Main Market (Selvita split by Listing revenue separation: Selvita + Ryvu Therapeutics) in Q4’19. Three debuts on NewConnect in Q4’19. PLN mn  Seven debuts on the Main Market in 2019 (including five transfers from NC). Fifteen de

  12. Slide 12: Revenue from information services – financial market

    Revenue from information services – financial market Q4’19: 15,2%  In Q4'19 (and in 2019) the highest quarterly (and annual) revenues coming from information services in the history of the GPW Group Revenue from information services1 PLN mn  New clients in different market segments attracted in Q4

  13. Slide 13: Revenue from the electricity and gas markets

    Revenue from the electricity and gas markets Q4’19: 22.9%  Decrease in revenues from electricity trading in Q4'19 to PLN 4.9 million (-13.8% YoY), resulting from a decrease in turnover on Trading revenue – commodity market the forward market and reductions in transaction fees with PLN mn liquidity

  14. Slide 14: Revenue from clearing

    Revenue from clearing Q4’19: 15.4%  Decline in revenues from clearing in Q4'19 to PLN 12.4 Revenue from clearing million (-4.6% YoY). PLN mn  Lower revenues from Register of Certificates of Origin in -4.6% Q4'19 equal to PLN 5.1 million (-16.8% YoY) - mainly as a 12.9 12.2 12.4 result of terminati

  15. Slide 15: Higher operating costs due external services and salary increases

    Higher operating costs due external services and salary increases  Cost/income ratio (C/I)2: 59.0 in Q4’19 vs. 48.0 in Q4'18. Annual C/I in 2019: 53.9 vs. 50.1 in 2018 Operating expenses: PLN 47.4 mn (+11.6 % YoY and -31.2% QoQ)  Depreciation and amortization: PLN 9.4 mn in Q4'19 (+19.1% YoY, PLN

  16. Slide 16: Share of profit of entities measured by the equity method

    Share of profit of entities measured by the equity method Share of profit of entities measured by the equity method  The Group's share in the profits of associates in PLN mn Q4’19 was PLN 1.9 mn (+1.0% YoY and -58.6% PAR KDPW CG 4.69 QoQ). In 2019, the profit share amounted to PLN 3.64 11.3 mn vs.

  17. Slide 17: GPW Group's consolidated statement of financial position

    GPW Group’s consolidated statement of financial position PLN mn 31.12.2018 31.03.2019 30.06.2019 30.09.2019 31.12.2019  The increase in total assets Non-current assets, including among others 580,5 598,2 586,2 585,6 590,1 as at December 31, 2019 Property, plant and equipment 108,2 104,5 100,6 97,3

  18. Slide 18: Annex – Back-up Slides

    Annex —- Back-up Slides

  19. Slide 19: GPW Group's consolidated statement of comprehensive income

    GPW Group’s consolidated statement of comprehensive income PLN mn Q4'18 Q4'19 2018 2019  YoY decrease in revenues is a result of the decrease in revenues on the financial market Revenue 88,5 80,3 346,8 336,1 (by PLN 10.7 mn) and commodities (by PLN 3.6 Financial market 48,1 43,6 191,9 185,0 mn). Tr

  20. Slide 20: GPW Group's consolidated statement of cash flows

    GPW Group’s consolidated statement of cash flows PLN mn 12 months period ended 31 December of 2019 2018 Total net cash f lows f rom operating activities 191,1 136,5 Net prof it of the period 119,3 183,7 • Positive cash flow from operating activities Adjustments: 113,7 -5,5 achieved in 2019 was highe

  21. Slide 21: GPW Group's revenue structure

    GPW Group’s revenue structure GPW Group: 336.1 PLN mn including TGE Group: 149.9 PLN mn 0,3% other revenue (0,3%) 0,2% Clearing 13,8% Register of Certificates of Origin 8,3% Trading - other Commodity Market: 3,7% Trading - property rights 44,6% 44.6% 10,2% Trading - gas 3,6% Trading - energy 4,9% GP

  22. Slide 22: Financial market: Trade in equities

    Financial market: Trade in equities Value of trade in equities and number of transactions Average number of transactions per session (thous.) Value of trading in equities, EOB (PLN mn) 26.0%1 80.2 70.1 73.1 72.1 65.9 55.3 51.9 55.5 51.4 48.4 46.4 38.2 251 236 207 220 205 203 204 191 167 188 190 160

  23. Slide 23: Financial market: Trade in derivatives

    Financial market: Trade in derivatives Volume of trade in derivatives Number of Open Interest (thous.) 3.2%2 184.8 168.1 165.0 171.2 132.8 137.2 138.1 140.1 143.6 131.0 104.2  Revenue drivers: 80.4 14.7 15.5 ✓ Volume of trade in futures 12.6 13.8 12.6 11.3 9.5 8.2 8.0 8.2 7.6 7.0 ✓ Number of open i

  24. Slide 24: Financial market: Other instruments and fees paid by participants

    Financial market: Other instruments and fees paid by participants Value of trade on Treasury BondSpot Poland, PLN bn Cash transactions 3.0%1 Repo transactions 1.037 1.062 3,0 307 450 845 767 2,9%22 2.6% 347 327 599 535 260 413 407 196 324 731 147 282 612 255  Revenue drivers: 135 498 439 86 84 101

  25. Slide 25: Financial market: Listing

    Financial market: Listing Capitalisation of domestic companies Market Capitalisation/GDP (%) 5.8%1 Market Capitalisation of domestic companies (PLN bn) 36.8% 36.5% 34.8% 34.8% 32.0% 28.9% 30.0% 30.0% 27.9% 25.0%  Revenue drivers: 671 593 591 557 579 550 543 523 ✓ Capitalisation at YE 446 517 ✓ Valu

  26. Slide 26: Financial and commodity market: Information services

    Financial and commodity market: Information services Number of data vendors Domestic 14.5%1 Foreign 83 78 57 58 58 58 37 52 54 53 52 36 50 37 34 31 37 30 28 27  Revenue drivers: 32 33 42 46 ✓ Number of data vendors 18 19 20 21 24 27 24 25 25 ✓ Number of subscribers 2009 2010 2011 2012 2013 2014 201

  27. Slide 27: Commodity market: Trade in electricity and gas

    Commodity market: Trade in electricity and gas Volume of trade in electicity (TWh)1 Spot Forward 228.9 8.5%2 226.1 27.7 33.9 186.7 186.7 176.6 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 25.2 198.3 195.0 154.3 163.0 161.6 109.1 118.1 ✓ Volume of trade in el

  28. Slide 28: Commodity market: Trade in property rights

    Commodity market: Trade in property rights Spot trade in property rights (TWh) Green Certificates 62.2 10.2%1 Cogeneration certificates 58.9 59.3 58.1 48.8 50.8 50.2 19.9 44.8 43.9 26.6 29.8 30.8 13.2 15.1 39.3 9.6 36.0 24.0 29.9 25.9 6.8 21.8  Revenue drivers: 42.4 35.7 32.1 35.2 35.6 32.3 26.2 28

  29. Slide 29: Commodity market: Register of Certificates of Origin

    Commodity market: Register of Certificates of Origin Volume of issued certificates of origin (TWh) Green Certificates 8.3%1 Cogeneration 50.7 47.2 48.5 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  Revenue drivers: 11.9 21.0 ✓ Volume of issued property rights

  30. Slide 30: IR events, Disclaimer and Contact: GPW Investor Relations

    IR events Disclaimer  30 April 2019 This presentation has been prepared by Giełda Papierów Wartościowych Introduction of the period of limited investor w Warszawie S.A. (“Warsaw Stock Exchange”, “GPW” or “Company”) for its communications preceding the publication of Q1’20 shareholders, analysts, an

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