Slide 1: Analyst presentation Q2 2016 earnings
Analyst presentation Q2 2016 earnings AMSTERDA M - NEW YORK - SINGAP O R E - CLUJ
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’. It is not a recommendation to engage in investment activities and you must not rely on the content of this document when making any in
Slide 3: Content
Content Post-IPO Business Review 2Q16 Results Long term objectives 3
Slide 4: Post-IPO Business Review
1 Post-IPO Business Review AMSTERDA M - NEW YORK - SINGAP O R E - CLUJ 4
Slide 5: ETP landscape evolving as expected
ETP landscape evolving as expected Market analyses suggest global ETP AuM set to reach $6tn* by 2020 Strong AuM growth for ETPs Ten consecutive quarters Steady increase in number seen globally since 2014 of net inflows in ETPs of ETP listings 130 € bn 107 109 12,000 3,000 2,851 110 2,642 2,667 9,542
Slide 6: Flow Traders' growth strategy on track
Flow Traders’ growth strategy on track Consistent progress across all pillars ETP Pricing Proprietary Technology Largest trader in Off-Exchange Trading in Europe via RFQ* Trading platform continued to prove highly resilient throughout the period and during the surge in global trading Stable ov
Slide 7: Geographic expansion in line with our strategy
Geographic expansion in line with our strategy Expanding the breadth and raising the profile of Flow Traders globally AMERICAS EMEA APAC Americas office has grown FTEs EMEA office has grown FTEs by APAC office has grown FTEs by by 36% to 45 since July 2015 25% to 217 since July 2015 42% to 44
Slide 8: Regulation evolves, Flow Traders pro-actively involved
Regulation evolves, Flow Traders pro-actively involved Flow Traders supports increased transparency and level playing field FACTS MIFID 2 Reg AT FTT Brexit MiFID 2 is expected to have Regulation Automated Trading Financial Transaction Tax (FTT) Impact of any changes in an impact on HFT and e
Slide 9: 2Q16 Results Overview
2 2Q16 Results Overview AMSTERDA M - NEW YORK - SINGAP O R E - CLUJ
Slide 10: 2Q16 key developments & highlights
2Q16 key developments & highlights Flow Traders delivers solid growth, outperforming a slower market ETP market Flow Traders Capital & Dividend Lower value traded due to the Flow Traders’ organic growth Capital remained well above continued risk aversion strategy contributed to a strong requir
Slide 11: 2Q16 demonstrates Flow Traders' resilience
2Q16 demonstrates Flow Traders’ resilience Robust results in an evolving and challenging market KPIs Flow Traders Flow Traders NTI (in €m) YTD YTD 160.0 147.4 In €bn unless otherwise stated 2Q16 1Q16 ∆ Jun 16 Jun 15 ∆ 140.0 132.5 Market ETP Value Traded (1) 5,053 6,065 (17%) 11,118 10,010 11% Europe
Slide 12: EMEA (Europe)
EMEA (Europe) NTI and Revenue Capture improved, strong performance during Brexit KPIs Flow Traders EMEA (Europe) Europe NTI (in €m) 120 97 YTD YTD 100 (4) 83 In €bn unless otherwise stated 2Q16 1Q16 ∆ June 16 June 15 ∆ 80 ETP AuM (end of period) (1) 482 452 7% 482 467 3% EMEA ETP Value Traded (2) 24
Slide 13: Americas
Americas FTEs and Products Traded grew, NTI continued to improve, FINRA license granted KPIs Flow Traders Americas Americas NTI (in €m) 40 36 35 YTD YTD (4) 30 In €bn unless otherwise stated 2Q16 1Q16 ∆ June 16 June 15 ∆ ETP AuM (end of period) (1) 25 21 2,112 1,938 9% 2,112 1,968 7% 20 Americas ETP
Slide 14: APAC (Asia)
APAC (Asia) Slower market activity affected Flow Traders performance, improvements underway KPIs Flow Traders APAC (Asia) Asia NTI (in €m) 35 30 30 YTD YTD (4) In €bn unless otherwise stated 2Q16 1Q16 ∆ June 16 June 15 ∆ 25 ETP AuM (end of period) (1) 256 219 17% 256 208 23% 20 APAC ETP Value Traded
Slide 15: Cost control remains tight
Cost control remains tight Maintaining strong margins is a key priority. 48% EBITDA margin in 2Q16 YTD YTD Adj. YTD Consolidated (in €m) 2Q16 1Q16 ∆ Jun 16 Jun 15 Jun 15 ∆* Net Trading Income 67.9 64.6 5% 132.5 147.4 147.4 (10%) Employee expenses (fixed) (6.6) (6.0) (12.6) (10.1) (10.1) 25% Employee
Slide 16: Strong financial position
Strong financial position Strong capital management and trading results yield an interim dividend of € 0.55 Condensed consolidated Financial Position Development regulatory capital In €m ∆ 31 Jun 16 400 vs. 31 Dec 338.8 Assets 30 Jun 16 31 Dec 15 350 15 298.9 280.3 Trading capital 299 339 (40) 300 P
Slide 17: Long term objectives
Long term objectives FLOW TRADERS AMSTERDAM - CLUJ - NEW YORK - SINGAPORE
Slide 18: Focus for future growth remains unchanged
Focus for future growth remains unchanged Volume growth, Maintaining our desired risk profile, through growth in product coverage, in order to build a sustainable business over the Institutional Counterparties and platform growth long term that focuses on maximising returns Connecting to more trad
Slide 19: Questions
3 Questions AMSTERDA M - NEW YORK - SINGAP O R E - CLUJ
Slide 20: Appendix
4 Appendix AMSTERDA M - NEW YORK - SINGAP O R E - CLUJ
Slide 21: Monthly markets update as published
Monthly markets update as published ETP Market Update June 2016 2015 24-Jun June May Apr Mar Feb Jan Dec Nov Oct Sep Aug Jul Jun May Apr Mar Feb Jan On & Off Exchange Value Traded – 193.8 1,973 1,509 1,572 1,820 1,959 2,286 2,009 1,555 1,753 1,940 2,211 1,823 1,838 1,448 1,615 1,863 1,371 1,876 Cons
Slide 22: Full Remuneration policy as approved during AGM
Full Remuneration policy as approved during AGM Principles of our Remuneration policy: Aligned with the business, promoting prudent and risk-aware behavior. No “star trader” behavior allowed Remuneration elements: limited fixed pay; ‘no profit, The Remuneration Policy no variable pay’ aims to captur
Slide 23: Growth drivers remain in tact
Growth drivers remain in tact Delivering on strategic growth and financial objectives External – Growth Catalysts for ETP Liquidity Providers Internal – Flow Traders Specific Growth Opportunities New Products New Markets Grow presence in the fixed income ETP space Operational Upside in the Impro
Slide 24: Thank you
Thank you AMSTERDA M - NEW YORK - SINGAP O R E - CLUJ