Flow Traders Ltd · EURONEXT:FLOW
Flow Traders — Q3 2016 Earnings Presentation
22 slides from Flow Traders's earnings presentation, Nov 9, 2016
Slide 1: 3Q results Flow Traders N.V. Analyst Presentation
3Q results Flow Traders N.V. Analyst Presentation 9 November 2016
Slide 2: Disclaimer
Disclaimer This presentation is prepared by Flow Traders N.V. and is for information purposes only Forward-looking statements speak only as at the date at which they are made. Flow and the material contained in this document is provided ‘as is’. It is not a recommendation Traders expressly disclaims
Slide 3: Executive Summary 3Q performance
Executive Summary 3Q performance We have increased our market share in the third quarter as we grew in ETP Value Traded, confirming our position as leading global ETP liquidity provider Slow market trading activity, with VIX close to all time lows, impacted our Net Trading Income (NTI) and Reven
Slide 4: ETP market continued to grow in 3Q16
ETP market continued to grow in 3Q16 ETP market continues to show growth in an overall market characterized by lower activity Net inflows trend remains skewed Quarterly increase in ETP listings ETP Assets under Management grew towards Fixed Income & Equity driven by the Americas and APAC by 5.8% qua
Slide 5: 3Q16 key developments & highlights
3Q16 key developments & highlights Robust performance in a slow market demonstrating the flexibility and competitive advantages of Flow Traders’ business model ETP market Flow Traders Increase in volatility post Brexit was Flow Traders ETP Value Traded grew to € 149bn, +5% q-on-q, while Market E
Slide 6: Resilient performance in a challenging environment
Resilient performance in a challenging environment 3Q performance representative of sluggish market conditions but Flow Traders is on target to deliver its second-best year ever KPIs Flow Traders Flow Traders NTI (in €m) YTD YTD In €bn unless otherwise stated 3Q16 2Q16 ∆ Sept16 Sept15 ∆ 350.0 Market
Slide 7: EMEA
EMEA FLOW TRADERS Amsterdam = Cluj = New York = Singapore Flow Traders |
Slide 8: EMEA (Europe)
EMEA (Europe) Flow Traders ETP Value Traded outperformed Market ETP Value Traded, driven by technological improvements and team expansions KPIs Flow Traders EMEA (Europe) Europe NTI (in €m) 200.0 YTD YTD 180.0 In €bn unless otherwise stated 3Q16 2Q16 ∆ Sept 16 Sept 15 ∆ 160.0 ETP AuM (end of period)
Slide 9: AMERICAS
AMERICAS FLOW TRADERS Amsterdam = Cluj = New York = Singapore Flow Traders |
Slide 10: Americas
Americas Institutional Trading department launched and US is on track to deliver highest NTI contribution to date KPIs Flow Traders Americas Americas NTI (in €m) YTD YTD 60.0 In €bn unless otherwise stated 3Q16 2Q16 ∆ Sept 16 Sept 15 ∆ 50.0 ETP AuM (end of period) (1) 2,228 2,112 6% 2,228 1,845 21%
Slide 11: APAC (Asia)
APAC (Asia) FLOW TRADERS Amsterdam = Cluj = New York = Singapore Flow Traders |
Slide 12: APAC (Asia)
APAC (Asia) Market sentiment continued to deteriorate but Flow Traders performance stabilized with the basis for a turnaround in the region underway KPIs Flow Traders APAC (Asia) APAC NTI (in €m) 80.0 YTD YTD In €bn unless otherwise stated 3Q16 2Q16 ∆ Sept 16 Sept 15 ∆ 70.0 (1) ETP AuM (end of perio
Slide 13: Financial Overview
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Slide 14: Maintaining cost discipline to preserve operating margins
Maintaining cost discipline to preserve operating margins Impact of decline in Net Trading Income compensated by reduction in variable component of operating expenses 3Q 2Q 3Q16 vs YTD YTD Adj. YTD YTD16 vs Consolidated (in €m) 2016 2016 2Q16 Sep 16 Sep 15 Sep 15 adj. YTD-15 Net Trading Income 48.8
Slide 15: Preserved balance sheet strength
Preserved balance sheet strength Capital management resulted in stable trading capital, despite payment of interim dividend Condensed consolidated Financial Position Development of regulatory capital Condensed Balance Sheet (In €m) ∆ 30 Sept 16 Assets 30 Sep 16 31 Dec 15 vs. 31 Dec 15 Trading Capita
Slide 16: Putting performance in long term perspective
Putting performance in long term perspective
Slide 17: Long term historic growth trend continuous
Long term historic growth trend continuous Despite varying levels of volatility through the years, Flow Traders NTI growth trend has consistently outperformed the market AuM growth trend Flow Traders’ NTI (in €m), Market’s AUM (€Bn) and VIX annual average (%) since 2010
Slide 18: QUESTIONS?
QUESTIONS? Flow Traders | 18
Slide 19: Appendix
Flow Traders 19
Slide 20: Monthly markets update as published
Monthly markets update as published ETP Market Update September 2016 2015 Sep Aug July June May Apr Mar Feb Jan Dec Nov Oct Sep Aug Jul Jun May Apr Mar Feb Jan On & Off Exchange Value Traded - Global (€bn) 1,759 1,455 1,495 1,973 1,509 1,572 1,820 1,959 2,286 2,009 1,555 1,753 1,940 2,211 1,823 1,83
Slide 21: Market overview top 10 most traded products per region
Market overview top 10 most traded products per region 3Q16 2Q16 AMERICAS € 1,974,071.15 AMERICAS € 2,123,544.14 SPY - SPDR S&P 500 ETF TRUST € 1,056,901.46 SPY - SPDR S&P 500 ETF TRUST € 1,170,485.16 IWM - ISHARES RUSSELL 2000 ETF € 164,234.45 IWM - ISHARES RUSSELL 2000 ETF € 190,822.04 EEM - ISHAR
Slide 22: Glossary
Earnings (NTI, net profit, EBITDA, etc.) adjusted for one-off expenses related to the IPO and SARs expenses. Operating result before depreciation of property and equipment, amortization of intangible assets, write off of tangible and intangible assets and non-trading financial income and expenses. E