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

Gielda Papierow Wartosciowych W Warszawie — Giełda Papierów Wartościowych w Warszawie — Q4 2016 Earnings Presentation

33 slides from Gielda Papierow Wartosciowych W Warszawie's earnings presentation, Feb 28, 2017

  1. Slide 1: GPW Group's Financial Results Q4 2016

    GPW Group’s Financial Results Q4 2016 28 February 2017

  2. Slide 2: Record-high Financial Results in 2016

    Record-high Financial Results in 2016 Net profit highest since 2011 (second highest in GPW Group’s history) Record-high EBITDA PLN 131.1 mn PLN 183.7 mn Record-low C/I ratio Record-high dividend yield1 48.3% 6.7% 1 Dividend yield based on GPW share closing price as at the dividend record date 2

  3. Slide 3: Our Successes in 2016

    Our Successes in 2016  Development of liquidity support programmes  Take-over of the function of WIBID and WIBOR fixing organiser  Introduction of a maker-taker price list DEVELOPMENT  Colocation service  Sale of non-display data  Six new single-stock futures and GBP/PLN futures  Launch of AB

  4. Slide 4: Summary of the GPW Group's Activity in Q4 2016

    Summary of the GPW Group’s Activity in Q4 2016 Financial Results of the GPW Group in Q4 2016

  5. Slide 5: Growth Momentum Maintained in Q4'16

    Growth Momentum Maintained in Q4’16 Sales revenue Net profit PLN mn PLN mn -5.2% +7.9%  Net profit in Q4’16: PLN 33.0 mn (up by 19.1% yoy) -2.5% 327.9 131.1 +19.1% 310.9 121.5 83.8 81.7  Strict cost discipline 33.0 27.7  C/I at 46.2% in Q4’16 and 48.3% in all of 2016  Atypical events  POLPX’s V

  6. Slide 6: Investors Came Back to the Stock Market in Q4'16

    Investors Came Back to the Stock Market in Q4’16 Highest velocity since Q2’13: 41.1%  The best quarter since Q2’13 in terms of turnover in stocks: increase to PLN 55.3 bn in Q4’16 (+13.3% Wartość obrotu, EOB (mld zł) Wskaźnik obrotu (%) qoq and +12.3% yoy): 41.1  Average daily value of trade up by

  7. Slide 7: Derivatives Trade Clearly Picked Up

    Derivatives Trade Clearly Picked Up Volume of derivatives trade +14.1%  Volume of trade in derivatives increased in Q4 including all instruments: 2.20 2.18 2.01 2.09  Volume of trade in WIG20 futures: 1.2 mn contracts 1.91 1.94 1.98 1.87 +16.6% (+12.7% qoq and +3.9% yoy)  Record-high volume of tr

  8. Slide 8: GPW: An Important Source of Capital in Europe

    GPW: An Important Source of Capital in Europe GPW in European TOP3 by number of IPOs in 2016 1 GPW in European TOP10 by value of IPOs in 20161 80 7.861 EUR mn 6.700 67 28 5.022 24 23 3.455 14 11 6 1.343 1.327 4 733 656 2 2 2 2 1 1 1 287 262 103 51 48 31 9 Szwajcaria Szwajcaria GPW Borsa Italiana Bor

  9. Slide 9: Record-high Results on the Gas Market

    Record-high Results on the Gas Market Volume of spot and forward transactions in electricity and gas  Energy market: spot transactions up by 19.2% qoq in Q4’16, Energia elektryczna (TWh) Gaz ziemny (TWh) forward transactions down moderately (-0.7% qoq) as a result 58.9 37.4 of phasing out of mandat

  10. Slide 10: Financial Results of the GPW Group in Q4 2016

    Summary of the GPW Group’s Activity in Q4 2016 Financial Results of the GPW Group in Q4 2016

  11. Slide 11: Another Quarter of Solid Financial Results

    Another Quarter of Solid Financial Results Net profit and net profit margin Sales revenue EBITDA and EBITDA margin PLN mn 53.7% PLN mn PLN mn 70.6% 44.5% 40.3% 57.9% 58.1% 33.0% 31.5% 54.0% 50.7% -2.5% 83.8 81.0 81.7 4.9% 74.5 73.7 +19.1% 52.0 45.3 47.5 39.5 43.1 41.1 33.1 33.0 27.7 25.5 Q4’15 Q1’16

  12. Slide 12: Strong Increase of Trading Revenue

    Strong Increase of Trading Revenue Q4’16: 40.7% Trading revenue – financial market  Average turnover in shares per session in Q4’16 at PLN mn PLN 892.3 mn vs. PLN 751.9 mn in Q3’16 and PLN 793.3 mn in Q4’15  New fee reductions for Exchange Members: +0.3%  Fixed fee on an order on the stock market

  13. Slide 13: Stable Listing Revenue

    Stable Listing Revenue Q4’16: 7.5% Listing revenue PLN mn  Total value of IPOs and SPOs in Q4’16 at PLN 1.1 bn  Two out of the three biggest IPOs in 2016 took place in Q4: Celon Pharma (PLN 245 mn) and +1.7% Stelmet (PLN 182 mn) 6.0 6.1 6.1 5.9 5.8  Capitalisation of domestic companies at PLN 557

  14. Slide 14: Record-high Revenue from Information Services

    Record-high Revenue from Information Services Q4’16: 12.7% Revenue from information services  New policy of selling non–display data as the main driver of growth in revenue in 2016; 43 clients as at the end of PLN mn Q4’16 vs. 37 clients in Q3’16  Record-high revenue from sales of processed data a

  15. Slide 15: Stable Trading Revenue on Commodity Market

    Stable Trading Revenue on Commodity Market Q4’16: 20.2%  Increase in revenue from trade in gas and electricity Trading revenue – commodity market driven by volumes: PLN mn  Volume of trade in gas: +109.1 qoq and +83.3% yoy  Volume of trade in electricity: +3.4 qoq and -48.0% yoy -6.5%  Increase

  16. Slide 16: Increase of Revenue from Clearing on the Commodity Market

    Increase of Revenue from Clearing on the Commodity Market Q4’16: 13.6% Revenue from clearing PLN mn  Increase of revenue from clearing mainly driven by +0.2% a dynamic increase of turnover on the gas market 11.5 and an increase of turnover in property rights in 11.1 11.1 9.0 energy efficiency certi

  17. Slide 17: Consistent Optimisation of Operating Expenses

    Consistent Optimisation of Operating Expenses Operating expenses: +33.5% qoq and -17.9% yoy  Increase of financial costs due to VAT adjustment and PLN mn resulting interest in POLPX 45.9 46.1 PFSA fees 4.6 11.2 38.0 37.7  Donation to the Polish National Foundation: PLN 3 mn Depreciation & 7.0 0.0

  18. Slide 18: Profit of Associates

    Profit of Associates Share of profit of associates  Profit of the KDPW Group: PLN mn 2.3  profit of KDPW Group decreased in Q4’16 due to an 1.4 Aquis 3.5 increase of operating expenses by 21.1% qoq 1.2 KDPW 3.2 CG  Aquis Exchange: 2.7 7.7 2.1 4.6  share in the European equity trade market stable

  19. Slide 19: GPW Group's Consolidated Balance Sheet

    GPW Group’s Consolidated Balance Sheet  Increase of trade receivables and other PLN mn 31.12.2015 31.03.2016 30.06.2016 30.09.2016 31.12.2016 Non-current assets, including among others 580.6 577.0 579.6 584.7 597.3 receivables due to recognition of Property, plant and equipment 125.2 122.3 121.5 11

  20. Slide 20: Annex: Back-up Slides

    Annex: Back-up Slides

  21. Slide 21: GPW Group's Consolidated Profit & Loss Account

    GPW Group’s Consolidated Profit & Loss Account  Increase of other operating expenses PLN mn Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 2015 2016 by PLN 3.0 mn due to a donation to Revenue 83.8 81.0 74.5 73.7 81.7 327.9 310.9 the Polish National Foundation Financial market 49.0 44.5 43.0 46.8 49.8 200.0 184.0 Tr

  22. Slide 22: GPW Group's Consolidated Cash Flows

    GPW Group’s Consolidated Cash Flows PLN mn 2015 2016  Increase of cash flows from operating Cash flows from operating activities, including among others: 93.1 205.8 activities due to a higher net profit and a Cash flows from operating activities 110.1 226.9 change of assets due to a reduction of Ne

  23. Slide 23: GPW v. Other European Exchanges

    GPW v. Other European Exchanges Capitalisation Value of equity trade, EOB1 Number of listed companies Borsa Istanbul 162.8 Borsa Istanbul 297.9 GPW 893 GPW 131.0 GPW 43.7 Borsa Istanbul 381 2 CEESEG - Vienna 95.2 CEESEG - Vienna 28.0 Bulgarian SE 354 Athens Exchange 35.4 Athens Exchange 12.9 Athens

  24. Slide 24: GPW Group's Revenue Structure

    GPW Group’s Revenue Structure 124,9 mln zł 310,9 mln zł Other income Clearing 0.6% 31.3% Register of Certificates of origin Trading - other Commodity 19.9% Market: Trading - property rights 40.2% 40.1% 7.5% Trading - gas 25.6% Trading - energy 7.4% 8.2% Information services 13.2% GPW Group’s revenue

  25. Slide 25: Financial Market: Trade in Equities

    Financial Market: Trade in Equities Value of trade in equities and number of transactions Average number of transactionsper session (thou.) EOB (PLN bn) 28.8%1 60.8 65.9 70.1 55.3 55.5 51.4 51.9 48.4 46.4  Revenue drivers: 38.2 231 251  Value of trade in equities 207 188 220 205 203 190 160 167 

  26. Slide 26: Financial Market: Trade in Derivatives

    Financial Market: Trade in Derivatives Volume of trade in derivatives NOI, thou 3.9%2 Volume of trade, mn contracts 184.8 168.1 165.0 132.8 137.2 138.1 131.0 104.2  Revenue drivers: 80.4 14.7 15.5 64.6 12.6 13.8 12.6  Volume of trade in futures 9.9 11.3 9.5 8.2 8.0  Number of open interest 2007 2

  27. Slide 27: 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 Conditional 3.3%1 1,037 1,062 307 845 450 767 2.2%2 347 599 327 260 413 324 731 612 255 161 135 498  Revenue drivers: 84 101 439 339 188 158  Value of trade in Treasury 2007 20

  28. Slide 28: Financial Market: Listing

    Financial Market: Listing Capitalisation of domestic companies Capitalisation/GDP (%) 7.7%1 Capitalisation of domestic companies (PLN bn) 41.6% 36.8% 36.5% 34.8% 30.7% 32.0% 27.9% 28.9% 29.5%2  Revenue drivers: 20.0% 593 591  Capitalisation at YE 510 421 543 446 523 517 557 267  Value of new issu

  29. Slide 29: Financial Market: Information Services

    Financial Market: Information Services Number of data vendors Local Foreign 13.2%1 57 58 58 58 52 54 53 50 50 48 34 31 37 37 30 28 27 31 32 33  Revenue drivers: 24 27 24 25  Number of data vendors 21 19 18 19 20 21  Number of subscribers 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Number of

  30. Slide 30: Commodity Market: Trade in Electricity and Gas

    Commodity Market: Trade in Electricity and Gas Volume of trade in electricity (TWh)1 Spot Forward 187 187 6.3%2 177 22 24 25 139 131 127 21 22 28 88  Revenue drivers: 13 154 163 162 109 118 99  Volume of trade in electricity 75 8 10 9  Volume of trade in gas 2007 2008 2009 2010 2011 2012 2013 201

  31. Slide 31: Commodity Market: Trade in Property Rights

    Commodity Market: Trade in Property Rights Trade in property rights (TWh) Green certificates 62 10.3%1 Cogeneration certificates 59 49 51 50 20 45 27 13 15 39 36 24 30 22  Revenue drivers: 42 36 36 32 35 32 26  Volume of trade in property 4 23 17 4 rights 2007 2008 2009 2010 2011 2012 2013 2014 20

  32. Slide 32: Commodity Market: Register of Certificates of Origin

    Commodity Market: Register of Certificates of Origin Volume of issued property rights (TWh)1 RES certificates 51 8.0%1 Cogeneration certificates 47 41 42 37 37 23 19 32 15 11 11 29 22 28  Revenue drivers: 12 26 27 26 27 28  Volume of issued property rights 22 24 18 21 5  Volume of cancelled prope

  33. Slide 33: IR events Contact: GPW Investor Relations

    IR events Disclaimer  27 April 2017 This presentation has been prepared by Giełda Papierów Wartościowych Publication of GPW Group’s Consolidated Interim Report for w Warszawie S.A. (“Warsaw Stock Exchange”, “GPW” or “Company”) for its Q1 2017 shareholders, analysts, and other contractors. This pres

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