Slide 1: 2018 results Flow Traders N.V. Analyst Presentation
2018 results Flow Traders N.V. Analyst Presentation 8 February 2019 AMSTERDAM CLUJ HONG KONG LONDON NEW YORK SINGAPORE Flow Traders |
Slide 2: Disclaimer
Disclaimer This presentation is prepared by Flow Traders N.V. and is for information purposes only and the Forward-looking statements speak only as at the date at which they are made. Flow Traders expressly material contained in this document is provided ‘as is’. It is not a recommendation to engage
Slide 3: Record 2018 with a strong finish in 4Q18
Record 2018 with a strong finish in 4Q18 4Q18 market trading activity picked up, leading to a strong quarterly result for Flow Traders ETP market 4Q18 Flow Traders’ performance 4Q18 Market ETP Value Traded grew 73% to € 8.4tn*** 4Q18 Net Trading Income (NTI) rose 75% to €74.1m, which is our stro
Slide 4: Overview ETP market developments in 4Q18
Overview ETP market developments in 4Q18 Market trading dynamics picked up in 4Q18, resulting in a growth of 73% in Market ETP Value Traded Q-o-Q ETP Value Traded development GENERAL EVENTS IMPACTING GLOBAL MARKETS Realized market volatility on daily basis (*) 40 9,000 8,454 • Developments around Br
Slide 5: Flow Traders KPIs reflect strong focus on execution and growth
Flow Traders KPIs reflect strong focus on execution and growth KPIs Flow Traders (*) Consolidated overview Europe In €bn unless otherwise stated 4Q18 3Q18 ∆ FY18 FY17 ∆ Flow Traders Europe 4Q18 NTI reached € 44.4m (+62% Q-o-Q) Flow Traders ETP Value Traded 272.8 183.2 49% 899.4 685.8 31% Europe 12
Slide 6: Strong financial performance in 2018 with tight cost control and strong NTI growth
Strong financial performance in 2018 with tight cost control and strong NTI growth Consolidated In thousands of euro 4Q18 3Q18 ∆ FY 18 FY 17 ∆ Net Trading Income 74.1 42.4 75% 383.4 166.0 131% HIGHLIGHTS Employee expenses (fixed) 9.6 8.9 8% 36.1 32.2 12% 2018 overview is based on IFRS, meaning tha
Slide 7: Capital position Flow Traders: balanced and unleveraged
Capital position Flow Traders: balanced and unleveraged CET 1 required levels under CRR – Flow Traders NV Development of Prime Broker solvency ratio* €mln HIGHLIGHTS ON CAPITAL POSITION €mln • Flow Traders’ trading capital remained comfortably 500 Solvency ratio above our Prime Broker requirements a
Slide 8: Strategy update
Strategy update Flow Traders | 4Q18/FY18 results 8
Slide 9: 2018: Continued focused execution of our growth strategy
2018: Continued focused execution of our growth strategy Overview of progress made across all strategic areas in 2018 2018 strategic objectives 2018 achievements “ Total number ETP counterparties grew to almost 1,000, number of venues connected to grew to Continue to focus on growing organically,
Slide 10: 2019: Strategy focuses on global growth through diversification and on operational leverage
2019: Strategy focuses on global growth through diversification and on operational leverage Foundation built recent years leads to 4 strategic focus areas for 2019 to enable organic growth globally through diversification Expand presence in ETP trading, both in Intensify and expand liquidity providi
Slide 11: Flow Traders will further leverage current platform and trading relationships to facilitate growth
Flow Traders will further leverage current platform and trading relationships to facilitate growth Flow Traders has a historic strong foothold in ETPs, across all underlying asset classes Flow Traders is improving trading capabilities by growing scale in trading financial products while ETP trad
Slide 12: Structural diversification in Flow Traders' product mix traded already present
Structural diversification in Flow Traders’ product mix traded already present To further grow ETP presence globally, diversification of trading is needed HIGHLIGHTS Break up total value traded since 1Q 2016 Presented here is the breakup of Flow Traders’ 1,200 total value traded since 1Q 2016 in E
Slide 13: Q&A
Q&A Flow Traders | 4Q18/FY18 results 13
Slide 14: Thank you!
Thank you! AMSTERDAM CLUJ HONG KONG LONDONFlowNEW TradersYORK | SINGAPORE
Slide 15: Appendix
Appendix Flow Traders | 4Q18/FY18 results 15
Slide 16: Reported vs adjusted P&L – showing impact equity participation plan and other charges
Reported vs adjusted P&L – showing impact equity participation plan and other charges Consolidated Reported In thousands of euro 2018 Adj. Adj. 2018 Net Trading Income 383.4 383.4 Employee expenses (fixed) 36.1 36.1 €mln Technology expenses 35.4 35.4 Other expenses 19.3 (0.8) 18.5 Fixed operational
Slide 17: Overview of the FCIP mechanics
Overview of the FCIP mechanics Payment schedule FCIP plan T0 – Off balance liability 2022 FCIP accounting mechanics: taken 20% on 2021 All 5 future cash incentives are funded out of this years bonus pool balance 20% 2020 20% The cash incentive will only be paid to employees which are employed at
Slide 18: Monthly markets update as published over 2018
Monthly markets update as published over 2018 ETP Market Update December 2018 (unaudited) 2018 2017 Dec Nov Oct Sept Aug Jul Jun May Apr Mar Feb Jan Dec Nov Oct On & Off Exchange* Value Traded - Global (€bn) 3,033 2,321 3,100 1,545 1,699 1,629 1,880 1,794 1,870 2,080 2,478 1,983 1,690 1,605 1,435 On
Slide 19: Cyclicality of NTI performance Flow Traders through time made visible versus ETP market dynamics
Cyclicality of NTI performance Flow Traders through time made visible versus ETP market dynamics Flow Traders’ NTI (in €m), Market’s AUM (€Bn) and VIX index since 2010 NTI AUM 384 6,000 NTI (€m) 400 AUM CAGR (2010 – 2018): 18.9% 6,000.00 AUM (€bn)* 350 NTI CAGR (2010 – 2018): 29.7% 5,000 5,000.00 30