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

Gielda Papierow Wartosciowych W Warszawie — Giełda Papierów Wartościowych w Warszawie S.A. (WSE) — FY2011 Earnings Presentation

44 slides from Gielda Papierow Wartosciowych W Warszawie's earnings presentation, Mar 13, 2012

  1. Slide 1: Presentation of the Results of WSE Group in 2011

    Presentation of the Results of WSE Group in 2011 Warsaw, 13 March 2012

  2. Slide 2: Record-breaking Year in WSE History

    Record-breaking Year in WSE History Over PLN 250 bn of equity session turnover in 2011 (+21% vs. 2010) Derivatives volume at 15.6 m instruments (+5.7% vs. 2010) Value of Catalyst issues up by 85.8% to PLN 40 bn in 2011 Treasury BondSpot Poland reported over PLN 1 bn of Treasury bond turnover (+321%)

  3. Slide 3: Business Expansion

    Business Expansion  Extended trading hours as one of the main drivers of more investor activity (average number of transactions per trading day up by 14.2%; session Making WSE more trading up by 21%) attractive to market  Spin-off of the clearing house KDPW_CCP in KDPW Group participants  Treasur

  4. Slide 4: Challenging Market Environment

    Challenging Market Environment Peformance of main indices, 20113 Poland’s high GDP growth in 2011 (4.3% vs. 1.5% EU average1), but PLN and WSE under pressure of adverse international developments In 2011, investment funds’ clients were exiting equity funds (total cash outflow from all funds: 1 PLN

  5. Slide 5: Business Growth Drivers in 2012

    Business Growth Drivers in 2012  Poland will be the fastest growing EU economy in 20121 EU GDP forecast1 2012 2013 Poland 2.5% 2.8%  Launch of UTP, state-of-the-art trading system, scheduled for 2 November 2012 Lithuania 2.3% 3.8% Latvia 2.1% 4.0%  Retail investment fund assets to household bank

  6. Slide 6: Regional Dominance

    Regional Dominance Market cap of stock exchanges in the region Share of region’s exchanges in equities trading1 (EUR bn)1 107.5 3% 2% 1% 1% 2% Other (Bulgaria, 15% 12% 16% 16% 11% Romania, Slovenia, 12% Slovakia) 65.7 15% 19% 16% 12% CEESEG – Budapest 25% 29.2 29% 32% CEESEG – Prague 14.6 40% 41% 10

  7. Slide 7: Internationally Recognisable Brand

    Internationally Recognisable Brand IPOs in Europe, 20111 Annual growth rate of equities trading on WSE and average for selected regions (2011/2010)1 Nasdaq OMX: 30 21.2% LSE Group: 107 NYSE Euronext: 25 3.4% Luxembourg: 20 Deutsche Boerse: 18 -2.8% -4.2% -5.3% WSE: 203 -5.8% -7.3% -8.3% Oslo Bors&Os

  8. Slide 8: Issuers Tap Strengths of WSE Markets

    Issuers Tap Strengths of WSE Markets Fast growth of issuer base as proof of WSE international strengths Main Market Main Market domestic companies foreign companies +4% +44% +90% +102% 387 39 351 992 373 27 185 492 2010 2011 2010 2011 2010 2011 2010 2011  #2 in Europe by number of  WIG-Ukraine – n

  9. Slide 9: Strong Foundations of Growing Turnover

    Strong Foundations of Growing Turnover Value of equities trading on Volume of derivatives trading Value of T-bond trading on WSE Main Market (PLN bn) (thou. instruments) TBSP (PLN bn) Single-stock and currency futures, options, index units Conditional transactions Cash transactions Block trades Sess

  10. Slide 10: WSE’s Increasing Impact

    WSE’s Increasing Impact WSE Members 100 Remote Local  Growing network of WSE market data vendors 90 80  Number of real-time data subscribers increased by 15% to 327.3 70 +24% thou. subscribers 60 50 31  Growing number of accounts operated by KDPW (1,498 thou. 40 21 30 at end of 2011 vs. 1,477 tho

  11. Slide 11: PolPX: Growing WSE Shareholder Value

    PolPX: Growing WSE Shareholder Value PolPX shareholders after acquisition by WSE  Before the deal, WSE held 2.33% of PolPX  Acquisition of 80.33% from the consortium (PLN 154 per share, PLN 179.37 m in total) GPW  Additional stakes bought from RWE Polska, Enea, ZEW 90.3% Vattenfall Kogeneracja Sa

  12. Slide 12: PolPX: Commodity Market Potential

    PolPX: Commodity Market Potential Net sales revenues (PLN m) Operating expenses (PLN m) 55.9  New platform accelerating WSE growth with the introduction of new derivatives combining the 41.2 know-how of both companies 29.4  Financially attractive deal, supporting the 24.7 20.8 effectiveness of WSE

  13. Slide 13: WSE Group

    WSE Group GIEŁDA PAPIERÓW WARTOŚCIOWYCH W WARSZAWIE S.A. Subsidiaries Associates BondSpot S.A. KDPW S.A. (92,47%) (33,33%) Polish Power Exchange KDPW_CCP S.A. (90,33%) (100,00%) IRGiT S.A. Info GT Sp. z o.o. INNEX PJSC (100,00%) (24,98%) (100,00%) WSEInfoEngine S.A. Centrum Giełdowe S.A. 100,00% (24

  14. Slide 14: Successful Placement of WSE Bonds

    Successful Placement of WSE Bonds Series A Series B Qualified investors – PLN 170 m Individual investors – PLN 75 m Public offering for qualified investors Public offering for individual investors (December 2011) (February 2012) 90 subcriptions placed, 23 1,777 subscriptions for over PLN 100 m subsc

  15. Slide 15: Financial results

    | WARSAW | STOCK | EXCHANGE Financial results 15

  16. Slide 16: Historically High Revenues

    Historically High Revenues Q4/10 Q3/11 Q4/11 PLN m 2010 2011 +1% +19% Revenues grew 19% in 2011 (YoY) thanks to very good results of all lines 70.42 Sales 268.80 60.18 60.91 225.63 revenues Growth stalled in Q4 due to falling equities trading on WSE +61% +46% High growth of operating profit owing to

  17. Slide 17: Growth of Main Business Lines

    Growth of Main Business Lines Q4/10 Q3/11 Q4/11 PLN m 2010 2011 +0.5% +20% Dynamic growth of the segment owing to many IPOs on 53.50 Trading 202.97 43.85 44.05 WSE and active trading by foreign investors who revenues 168.78 generated 47% of turnover in 2011 +1% +16% Growing share of NewConnect and C

  18. Slide 18: Stable Revenues Structure

    Stable Revenues Structure Sales revenues, Q4 2011 (PLN thou.) Structure of sales revenues in 2011 Q4 2011 Q4 2010 Other Revenues Share Revenues Share Information revenues services 2% Sales revenues 60 907,4 100% 60 181,0 100% 14% Equities trading 29 037,1 48% 31 647,7 53% Derivatives trading 9 768,8

  19. Slide 19: Costs

    Costs  Operating expenses in 2011 similar to 2010  Sharp decrease of cost of external services in all of 2011 and in Q4 2011 vs. Q4 2010 due to one-off costs of the WSE public offering in 2010  Increase of staff costs in Q4 2011 due to actuarial valuation of WSE future financial liabilities to em

  20. Slide 20: High Profitability

    High Profitability  Good business results in Q4 and all of 2011 combined with high profitability  EBITDA and EBIT highest since 2008 EBITDA1 (PLN m) Net profit (PLN m) Operating profit (PLN m) EPS (PLN) EBITDA ROE EBIT 61.3% 49.7% 25.6% 13.9% 18.1% 39.9% 40.7% 52.7% 54.3% 134.1 133.7 3.20 164.7 10

  21. Slide 21: High Liquidity

    High Liquidity Balance Sheet overview (PLN thou.) 2011 2010  At end of 2011 balance sheet Non-current assets 355 291 337 664 only includes series A bond Property and equipment 128 672 119 516 issue (PLN 170 m; series B: PLN Intangible assets 60 621 60 167 75 m in Q1 2012) Investment in associates 1

  22. Slide 22: Disclaimer

    Disclaimer This presentation has been prepared by Giełda Papierów Wartościowych w Warszawie S.A. (the “Company” or “WSE”) solely for use by its shareholders, clients or analysts and should not be treated as a part of any invitation or offer to sell any securities, invest or deal in or a solicitation

  23. Slide 23: Additional slides – financial data

    Additional slides – financial data 23

  24. Slide 24: Consolidated statement of comprehensive income

    Consolidated statement of comprehensive income in PLN m, under IFRS 2011 2010 Q4 '11 Q3 '11 Q2 '11 Q1 '11 Q4 '10 Q3 '10 Q2 '10 Q1 '10 Revenue 268.80 225.63 60.91 70.42 68.31 69.16 60.18 53.97 57.49 53.98 Revenue from trading 202.97 168.78 44.05 53.50 50.64 54.79 43.85 40.69 43.19 41.05 Shares and ot

  25. Slide 25: External services. financial ratios

    External services. financial ratios in PLN thousand, under IFRS 2011 2010 External services 36 235 42 101 Building renovations and maintenance 11 914 11 433 Advertising expenses 6 897 12 968 Electronic data transfer 6 543 5 224 Consulting and audit fees 2 446 3 943 Press announcements 31 99 Staff tr

  26. Slide 26: Balance sheet - assets

    Balance sheet - assets 2011 2010 31.12.2011 30.09.2011 30.06.2011 31.03.2011 in PLN m, under IFRS Non-current assets 355.29 337.66 355.29 348.88 393.98 395.87 Property and equipment 128.67 119.52 128.67 125.00 118.05 117.20 Intangible assets 60.62 60.17 60.62 59.76 59.45 59.85 Investments in associa

  27. Slide 27: Balance sheet - equity

    Balance sheet - equity 2011 2010 31.12.2011 30.09.2011 30.06.2011 31.03.2011 in PLN m, under IFRS Equity 524.49 524.73 524.49 499.29 460.99 562.84 Share capital 63.87 63.87 63.87 63.87 63.87 63.87 Other reserves 0.27 0.20 0.27 0.10 -0.03 -0.28 Retained earnings 459.07 459.77 459.07 434.15 396.15 498

  28. Slide 28: Cash flows

    Cash flows 2011 2010 in PLN m, under IFRS Cash flows from operating activities 129.99 90.04 Cash generated from operations 152.44 110.10 Income tax paid -22.46 -20.06 Cash flows from investing activities 18.53 130.19 Purchases of property and equipment -20.72 -8.33 Proceeds from sale of property and

  29. Slide 29: Income – listing and market services

    Income – listing and market services Listing (PLN m) Information services (PLN m) Annual fees Introduction fees Total Number of subscribers Information services revenue 6.5 324.4 332.0 327.3 6.1 310.2 5.5 5.5 5.6 285.4 5.3 259.0 266.7 4.6 4.6 9.3 9.5 9.5 188.2 8.6 8.1 8.0 8.2 7.9 4.1 4.2 4.2 4.3 3.6

  30. Slide 30: Profit of associates and financial income

    Profit of associates and financial income Share of profit of associates (PLN k) Net financial income (PLN m) KDPW Group (WSE share: 33.3%) Centrum Giełdowe (GPW share: 24,79%) Total 5,438 7.8 4,359 4,434 4,420 3,614 2,890 2,487 5,058 3.9 3.464 4.287 3,984 4,325 1,998 2.3 2.3 2.6 3.435 2,848 2.0 1.6

  31. Slide 31: Revenues – trading segment

    Revenues – trading segment Equities (PLN m) Derivatives (PLN m) Fixed income (PLN m) Other3 (PLN m) 1 2 1.8 39.937.6 3.4 3.5 3.4 36.6 11.111.2 11.9 3.1 1.4 1.4 1.5 31.6 10.3 1.3 26.828.728.3 29.0 9.0 8.7 9.8 1.0 1.1 1.2 8.3 2.0 2.0 2.3 2.3 Trading (PLN m) 1 54.8 2 53.5 50.6 43.2 43.9 44.1 41.1 40.7

  32. Slide 32: Slide pool — market data

    | WARSAW | STOCK | EXCHANGE Slide pool — market data 32

  33. Slide 33: WSE Group business lines

    WSE Group business lines Listing and trading (31.12.2011) Market data and other services Largest CEE exchange, with domestic market capitalization of provider of real-time Polish trading data, supplied PLN 446 bn (Main Market) and PLN 8.4 bn (NewConnect) via 54 data vendors (327.3k subscribers at th

  34. Slide 34: WSE one of the fastest developing stock exchanges

    WSE one of the fastest developing stock exchanges Top 10 world stock exchanges with the highest Top 10 world stock exchanges with the growth of number of companies1 highest turnover growth in 20112 Warsaw SE 777 33% 291.4 Saudi Stock Market 291,4 45% Shenzhen SE 1411 21% 0,50.5 Mauritius SE 44% Sant

  35. Slide 35: Issuers and new listings

    Issuers and new listings NC: number of new listings Main Market – number of companies and new listings (long-term perspective) Domestic Foreign Number of companies New listings 53 36 41 450 426 38 28 25 400 14 18 400 374 379 0 0 1 0 2 1 1 0 351 350 300 284 255 250 230 230 216 Main Market: number of

  36. Slide 36: Attractive venue for issuers

    Attractive venue for issuers Main Market – offering value (PLN bn) NewConnect – raised capital (PLN m) 0.1 IPO SPO SPO IPO 520 17.8 12.8 42 0.2 5.7 46 44 2.3 0.3 2.3 0.2 23 45 212 196 1.0 2.5 1.2 1.1 1.2 13 44 151 168 0.5 0.7 33 58 91 55 Main Market – number of companies NewConnect – number of compa

  37. Slide 37: Domestic market capitalisation and GDP

    Domestic market capitalisation and GDP Domestic companies capitalisation to WIG index Domestic companies capitalisation to Polish GDP1 Domestic companies capitalisation (PLN bn) WIG index return rate (%) GDP (PLN bn) Domestic companies capitalisation (PLN bn) Ratio 1,400 80% 0 1,176 1,085 1,127 70%

  38. Slide 38: WSE Main Market turnover

    WSE Main Market turnover Quarterly value and turnover dynamics vs. WIG index (PLN bn) Block trading Total turnover WIG Index Session trading Change q-o-q 51.7 60.6 52.3 69.7 67.8 71.1 71.5 57.1 57,7 2.0% 17.4% -13.8% 33.4% -2.8% 4.9% 0.6% -19.3% 7.3 3.7 11.8 3.9 Equity trading (PLN bn) 6.9 2.6 6.1 2

  39. Slide 39: Value of trading and number of session trades – Main Market

    Value of trading and number of session trades – Main Market Session trading value (PLN bn) Block trading value (PLN bn) Total trading value (PLN bn) No. of trades per session (thou., RHS) 300 140 268.1 250 239.7 234.3 120 100 200 175.9 169.3 165.7 80 150 60.8 60 98.5 51.4 55.3 100 45.0 48.4 59.8 38.

  40. Slide 40: Equities market – long-term perspective

    Equities market – long-term perspective Monthly turnover value on the Main Market NewConnect: market cap (PLN bn) 2001 –2011 (PLN bn) and new listings Market Cap New listings 30 25 9 8.5 180 8 172 160 20 7 140 6 5.1 15 120 5 100 10 4 86 80 3 61 2.6 60 5 1.4 2 1.2 40 1 26 0 24 20 0 0 2007 2008 2009 2

  41. Slide 41: Derivative instruments

    Derivative instruments Index futures turnover volume in Europe (2011; m) Derivative instruments turnover volume (m) 37.5 Futures Options Total volume1 Change q-o-q 486.3 97.2 4.07 4.10 3.22 3.33 3.99 3.25 4.66 3.66 20% 1% -22% 3% 20% -19% 43% -21% 13.7 0.27 8.4 0.18 0.16 0.27 6.1 0.12 2.5 1.9 0.14 0

  42. Slide 42: Debt instruments

    Debt instruments Wartość obrotówtrading TBS Poland na TBS value Poland(PLN (mld PLN) bn) Catalyst(non-treasury Catalyst (instrumenty nieskarbowe) instruments) Cash market Repo market Issue value (PLN bn) 208 184 45.0 Number of series 200 142 237 40.0 114 150 35.0 97 40.0 176 187 30.0 73 35.0 37 51 1

  43. Slide 43: Exchange members

    Exchange members Share of remote exchange members in session equity trading Origin of WSE remote members Foreign Local 100% 90% 80% Sweden: 1 70% Estonia: 1 Russia: 3 1 60% Lithuania: 1 50% UK: 9 40% Germany: 2 1 30% Ukraine: 1 Czech rep.:3 France: 2 Slovakia:1 20% Austria:1 Hungary: 2 10% Romania:2

  44. Slide 44: Investors’ structure

    Investors’ structure Share in equity turnover by investor type – Main Market Share in futures turnover by investor type – Main Market Foreign Polish individuals Polish institutional Foreign Polish individuals Polish institutional 100% 100% 15% 19% 29% 36% 39% 32% 33% 34% 37% 39% 37% 34% 35% 24% 22%

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