Slide 1: Flow Traders
FLOW ®TRADERS AMSTERDAM ® CLUJ = HONG KONG = LONDON = NEW YORK = SINGAPORE
Slide 2: Disclaimer
Disclaimer This presentation is prepared by Flow Traders N.V. and is for information purposes only and the material contained in this document is provided ‘as is’. Itis not a recommendation to engage in investment activities and you must not rely on the content of this document when making any inves
Slide 3: 4Q19 & FY19 results snapshot
4Q19 & FY19 results snapsh ETP value traded exceeded €1 trillion for the first time in 2019 - lower volumes in 4Q and reduced volatility affected NTI generation ETP market dynamics Flow Traders performance Market ETP Value Traded fell 11% Q-0-Q and 7% 2019 vs 2018 Decline in Market ETP Value traded
Slide 4: ETP market dynamics
• • • • • • • • • **: Source Bloomberg, iShares, Tradeweb, Bloomberg RfQ, Flow Traders. See appendix ***: BlackRock iShares ETP Landscape update
Slide 5: Regional performance overview
Regional performance overview FT ETP Value Traded (€bn) Market ETP Value Traded (€bn) NTI (€m) 1,347 474 388 3300132 35 33 4019 2018 2019 3Q19 4019 2018 2019 3Q19 4Q19 2018 = 2019 39 _ 48 = Il i 6 : = 4Q19 2018 2019 3Q19 4Q19 2018, 2019 3Q19 4Q19 2018 2019 18 844 42 : [ B 201 | q 9 4Q19 2018 2019 3Q
Slide 6: Growth investments made in maximum growth in fixed operating expenses
Growth investments made in maximum growth in fixed operating expenses Fixed operating expenses (€m) FTEs Hl Employee expenses (fixed) lj Other expenses Hil Technology expenses _ [lll One-off expenses +18% 1 99.8 513 90.7 43.6 150 2018 2019 Hl Trading [lj Technology [jij Other 3Q19 4Q19 2019 - = 10%
Slide 7: Capital position remains strong and conservative
Capital position remains strong and conservative Regulatory Own Funds Requirement (OFR) (€m) 278 294 287 110 146 133 168 148 154 31-Dec-18 30-Jun-19 31-Dec-19 HM Excess Capital [lJ Required CET Annual dividend (€) 25 20 15 1.0 05 0.0 0.57 0.36' 0.17, 7 235 150 125 ogo 093 dg0 / 0.65 . v 2010 2011 20
Slide 8: 4Q19/FY19 Results
4Q19/FY19 Results 8 Flow Traders
Slide 9: 2019 strategic objectives
2019 strategic objectives 2019 achievements r(é r(é r(é r(é Expand presence in ETP trading, both in products and trading relations, especially in the Americas and APAC Intensify and expand liquidity providing in ETPs and the underlying asset classes globally Grow technology infrastructure to increas
Slide 10: Leveraging our global ETP trading footprint to drive further growth
Leveraging our global ETP trading footprint to drive fur Focus remains on enlarging the ETP footprint Venues 240 160 1500 80 750 0 2019 205 = 2016 =. 207 205 2016 2017 2018 Counterparties 2250 gg Flow Traders ETP value traded (€bn) 603 640 686 399 1009 2015 2016 2017 2018 2019 2018 2019 Americas US
Slide 11: Three near term key growth drivers — fixed income and currencies
Three near term key growth drivers — fixed income and currencies a Technology and regulatory developments are catalysts for these key growth drivers Asset classes a v v GROWTH A DRIVER z ov ov 1S) 3 3 g x x x v x n/a n/a x GROWTH GROWTH DRIVER DRIVER Y Coverage 3€ No complete coverage yet = Growth f
Slide 12: Strategic priorities
ategic priorities Expand leading ETP liquidity provider position and continue to grow ETP ecosystem through more venues, products and counterparties Expand currency trading capabilities Expand fixed income trading capabilities — will strengthen fixed income ETP trading Drive efficiency improvements
Slide 13: Q&A
Q&A Flow Traders| 4Q19/FY19 Results 13
Slide 14: Thank you!
Thank you! i TRADERS AMSTERDAM ® CLUJ = HONG KONG = LONDON = NEW YORK = SINGAPORE
Slide 15: Flow Traders| 4Q19/FY19 Results 15
Flow Traders| 4Q19/FY19 Results 15
Slide 16: Income statement 4Q19 and FY19
€ millions 4Q19 3Q19 p FY19 FY18 p Net Trading Income 46.1 53.3 (13%) 216.4 383.4 (44%) Employee expenses (fixed) 11.6 11.1 5% 43.6 36.1 21% Technology expenses 10.9 10.0 9% 39.7 35.4 12% Other expenses 3.9 3.5 13% 15.0 18.4 (19%) One-off expenses 1.2 0.4 209% 1.5 0.8 88% Fixed operational expenses
Slide 17: Flow Cash Incentive Plan (FCIP) mechanics overview
Flow Cash Incentive Plan (FCIP) mechanics overview Payment schedule FCIP Accounting considerations = AlL5 future cash incentives are funded out of this year’s bonus pool = Cash incentive will only be paid to employees who remain employed at the company and still hold shares = This results in a servi
Slide 18: Monthly market value traded
2019 2018 Dec Nov Oct Sep Aug Jul Jun May Apr Mar Feb Jan Dec Nov Oct On & Off Exchange* Value Traded - Global (€bn) 1,786 1,654 2,041 1,973 2,462 1,739 1,853 2,228 1,761 2,116 1,696 2,281 3,033 2,321 3,100 On & Off Exchange* Value Traded - EMEA (€bn) 128 124 136 130 135 129 119 124 111 118 113 125