Gielda Papierow Wartosciowych W Warszawie S.a. · GPW:GPW
Gielda Papierow Wartosciowych W Warszawie — Giełda Papierów Wartościowych w Warszawie S.A. (Warsaw Stock Exchange) — Q2 2013 Earnings Presentation
34 slides from Gielda Papierow Wartosciowych W Warszawie's earnings presentation, July 2013
Slide 1: Presentation of WSE Group Results in Q2 2013
PRESENTATION OF WSE G ROUP RESULTS IN Q2 2013 J ULY 2013
Slide 2: Thinking strategically
Thinking strategically Warsaw – CEE Capital Centre Strategy of the Polish WSE strategy Capital Market Priorities and recommendations of EFC -2-
Slide 3: WSE Group in Q2 2013
WSE Group in Q2 2013 Strengthening WSE’s international position WSE Group financial results (PLN mn) WSE’s share in equities trading in CEE1 in June was change change Q2 2013 H1 2013 YoY YoY record-high at 65% Revenue 64.6 -7.9% 143.9 7.4% Implementation of UTP in April 2013 and technical Operating
Slide 4: Trading in Shares on Main Market
Trading in Shares on Main Market EOB (PLN bn) Value of trading in shares block trades (PLN bn) 70 60 50 40 30 20 10 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 F
Slide 5: Share of investor in WSE trading
Share of investor in WSE trading1 Equities, Main Market (%) Equities, NewConnect (%) Futures, (%) +6.0 pp +15.0 pp +6.0 pp Change of the share of foreign investors Change of the share of institutional investors Change of the share of foreign investors 2 2 2 3 6 10 11 10 7 20 10 11 14 16 17 16 43 36
Slide 6: WSE in Europe
WSE in Europe Growth rate of the value of trading on European exchanges, Q2 2013 v. Q2 20121 104% 58% Average for all exchanges: 1.7% 42% 33% 25% 21% 7% 6% 2% 1% 1% -1% -2% -9% -13% -16% -16% -16% -26% -31% -38% -94% WSE was one of the most dynamically growing exchanges in Europe by the value of tra
Slide 7: WSE's Position in CEE
WSE’s Position in CEE1 WSE’s share in equities trading in CEE WSE’s share in capitalisation in CEE2 Capitalisation of CEE exchanges (EUR bn) Value of equities trading in the region (EUR bn) WSE share WSE share CEESEG share CEESEG share 400 70% 64% 65% 59% 15 70,0% Miliardy WSE 60,0% 300 WSE 47% 12 5
Slide 8: Pension Funds on the Stock Market
Pension Funds on the Stock Market Pension fund’s shares in EOB in WSE 300 Pension funds’ investment Other investments 0.5% 30,0 portfolio [PLN bn] 30 16,7% 27,6 28,0 18% 250 Non-Treasury 11.4% 13,6% 16% debt 25 21,5 20,3 21,7 38.5% 12,0% 18,9 14% 200 20 12% 8,8% 15,2 Stock 10% 150 Bank deposits and
Slide 9: Trading in Derivatives on WSE
Trading in Derivatives on WSE Volume of trading in derivatives (by quarter, mn instruments)1 NOI2 Volume of trading in options increased by 19.7% v. 210 198 144 145 148 161 151 148 212 198 (‘000) Q1 2013 and by 43.8% v. Q2 2012 4,66 Volume of trading in WIG20 contracts increased by 3,99 3,66 6.2% v.
Slide 10: Volume of Trading in Contracts in Europe
Volume of Trading in Contracts in Europe Volume of trading in futures contracts for indices in Europe (H1 2013, mn contracts) STOXX® Europe 600 Banks 0,7 WSE remained Europe’s #5 by volume of trading in index futures IBEX 35 Mini 1,0 FTSE MIB Mini 1,4 WIG20 futures rank #9 by the volume of trading a
Slide 11: Non-Treasury Bond Market – Catalyst
Non-Treasury Bond Market – Catalyst Growth of Poland’s non-Treasury debt market Catalyst (non-Treasury debt) (value of issue at the end of a period, PLN bn) 381 H1 60,0 value of listed issues (PLN bn) 361 23,6 34,2 43,6 16,1 325 2013 number of series 302 350 46,3% 56,4 243 260 50,0 300 54,3 52,3 208
Slide 12: Commodity Market
Commodity Market 59,6 Volume of trade in electricity1 (TWh) 28,6 29,9 31,9 Total volume of spot and forward trade in electricity 21,3 was 36.8 TWh in Q2 (increase of 2.3% QoQ and 37.7% 8,5 5,7 5,4 4,6 5,6 6,0 4,9 YoY) Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 forward trade spot tade Volume of
Slide 13: Gas Market Outlook
Gas Market Outlook Gas market: Total volume of all trade on the gas market in H1 2013: 464.6 GWh Obligation to trade in gas on the exchange as a driver of a growing gas market Consumption of natural gas in Poland in 2012: 15.8 bn m3 , i.e., ca. 173.4 TWh ‘Small energy legislation tri-pack’ opens the
Slide 14: WSE Group Plans for Commodity Market
WSE Group Plans for Commodity Market Commodity financial derivatives market Efforts to open a market of financial derivatives (i.e., without physical delivery) with commodities as the underlying instrument underlying: power and gas scheduled opening date: H1 2014 (subject to PolPX obtaining a licenc
Slide 15: WSE Group Financials
WARSAW STOCK EXCHANGE & WSE Group Financials
Slide 16: Revenue and EBITDA in the Uptrend
Revenue and EBITDA in the Uptrend Revenue and EBITDA increased by 7.4% and 1.5% (YoY) respectively in H1 2013 Stability on the financial market, seasonal decrease in revenue on the commodity market in Q2 Acquisition of PolPX added significant seasonality to WSE Group results Operating profit in Q2 2
Slide 17: Revenue from the Financial Market
Revenue from the Financial Market [PLN’000] Q2 2013 Q2 2012 YoY H1 2013 H1 2012 YoY Financial market 51 701 51 341 0.7% 104 220 108 299 -3.8% Trading, including: 37 543 36 504 2.8% 75 726 78 741 -3.8% Shares 26 946 23 462 14.9% 54 789 52 838 3.7% Derivatives 5 624 7 703 -27.0% 10 967 14 958 -26.7% B
Slide 18: Revenue from the Commodity Market
Revenue from the Commodity Market [PLN’000] Q2 2013 Q2 2012 YoY H1 2013 H1 20121 YoY Commodity market 12 307 17 812 -30.9% 38 437 23 947 60.5% Trading: 6 501 7 083 -8.2% 18 389 9 762 88.4% Electricity 2 634 2 274 15.8% 5 709 3 010 89.7% Natural gas 15 - - 22 - - Property rights 2 165 3 138 -31.0% 9
Slide 19: Structure of WSE Group Revenue
Structure of WSE Group Revenue 7% Commodity Clearing 6% market: 27.2% of 3% Register of Certificates of Origin Acquisition of PolPX in February 2012 ensured revenue 6% significant diversification of revenue sources 5% Trading - other 12% Trading property rights In the last 4 quarters (Q3 2012 – Q2 2
Slide 20: Increase in Operating Expenses
Increase in Operating Expenses Operating expenses (PLN mn) 1 Cost/Income ratio3 PLN mn 35.8 40.3 35.4 41.0 38.4 44.0 total expenses actually incurred (including UTP expenditure)1 150 60% 50,7% 35.0 39.3 34.4 39.7 36.8 44.0 total expenses on accounting basis 120 38,4% 41,4% 42,4% 42,1% 42,1% 50%
Slide 21: Profitability Measures
Profitability Measures Return on equity (ROE) 1 Operating profit margin 23.0% 24.9% 21.4% 19.7% 19.8% 18.9% 55.8% 44.7% 47.7% 36.3% 54.2% 32.0% Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/12 EBITDA margin2 EPS [PLN] 69.1% 53.4% 57.0% 43.2% 64.7% 48.7% 0.79 0.62 0.61 0.50 1.0
Slide 22: Dividends
Dividends Dividends received in H1 2013: Dividend for 2012 at PLN 32.7 mn (PLN 0.78 per share) paid in PolPX: PLN 33.9 mn July 2013 BondSpot: PLN 5.1 mn KDPW: PLN 3.7 mn Dividends from subsidiaries improves WSE separate net profit which is the basis for dividend payout at 30-50% according to
Slide 23: WSE Group Balance Sheet
WSE Group Balance Bilans Sheet Grupy GPW PLN’000 30.06.2013 31.03.2013 30.06.2012 Non-current assets, including: 568 880 579 151 516 251 Plant and property 128 000 131 182 134 649 Intangible assets 268 372 271 026 213 649 Intangible assets increased as a result Investment in associates 154 050 155 0
Slide 24: Events / Contact
Events / Contact WSE Investor Relations tel. +48 22 537 72 50 ir@gpw.pl http://www.gpw.pl/relacje_inwestorskie WSE IR Events 30 October 2013, Wednesday Q3 2013 results Warsaw Stock Exchange 31 December 2013, Tuesday ul. Książęca 4, 00-498 Warsaw, Poland Interest payment on WSE bonds for the 4th tel.
Slide 25: Consolidated profit and loss account
Consolidated profit and loss account in PLN thousand, under IFRS Q2 2013 Q1 2013 4Q 2012 3Q 2012 2Q 2012 1Q 2012 2012 Revenue 64 557 79 358 74 114 65 663 70 110 63 938 273 825 Financial market 51 701 52 519 49 983 49 862 51 341 56 958 208 144 Trading 37 543 38 182 35 534 35 837 36 504 42 237 150 112
Slide 26: Balance sheet - assets
Balance sheet - assets in PLN thousand, under IFRS Q2 2013 Q1 2013 4Q 2012 3Q 2012 2Q 2012 1Q 2012 2012 Non-current assets 568 880 579 151 512 004 518 215 516 251 513 308 512 004 Tangible fixed assets 128 000 131 182 133 115 133 864 134 649 129 332 133 115 Intangible fixed assets 268 372 271 026 209
Slide 27: Balance sheet - liabilities
Balance sheet - liabilities in PLN thousand, under IFRS Q2 2013 Q1 2013 4Q 2012 3Q 2012 2Q 2012 1Q 2012 2012 Equity 584 102 600 756 555 890 537 534 525 409 560 793 555 890 Share capital 63 865 63 865 63 865 63 865 63 865 63 865 63 865 Other reserves 1 920 1 806 -1 000 -2 639 -1 459 -2 681 -1 000 Ret
Slide 28: External services, financial ratios
External services, financial ratios Twel ve-month peri od ended December, 31 i n PLN thous a nd, under IFRS 2012 2011 cha nge y-o-y External services 33 718 36 235 -7% Bui l di ng renova ti ons a nd ma i ntena nce 12 033 11 914 1% Adverti s i ng expens es 5 334 6 897 -23% El ectroni c da ta tra ns f
Slide 29: Cash flows statement
Cash flows statement in PLN thousand, under IFRS 2012 2011 Cash flows from operating activities 126 926 129 986 Cash generated from operations 159 334 152 444 Income tax paid -32 408 -22 458 Cash flows from investing activities -38 167 18 528 Purchases of property and equipment -13 482 -20 717 Proce
Slide 30: Revenues – trading: financial market
Revenues – trading: financial market Shares (PLN m) Derivatives (PLN m) Fixed income (PLN m) Other1 (PLN m) 29,4 27,8 26,9 7,3 7,7 23,5 23,7 24,6 6,3 3,8 4,1 5,7 5,3 5,6 3,6 3,5 3,4 3,5 1,8 1,8 1,7 1,8 1,6 1,5 Trading, financial market (PLN m) 42,2 36,5 35,8 35,5 38,2 37,5 Q1/12 Q2/12 Q3/12 Q4/12 Q1
Slide 31: Revenues – listing and information services
Revenues – listing and information services Listing (PLN m) Information services (PLN m) Total Number of subscribers ('000) Revenues from information services Annual fees Introduction, listing fees and others 332,0 327,3 310,2 324,4 6,5 298,2 297,0 285,1 288,1 6,1 5,7 280,7 5,3 5,6 5,3 5,5 5,5 5,6 2
Slide 32: Profit of associates and net financial income
Profit of associates and net financial income Share of profit of associates (PLN’000) Net financial income (PLN m) KDPW Group (WSE stake: 33.33%) Centrum Giełdowe (WSE stake: 24.79%) Total 7,8 5 438 1 4 577 4 649 4 420 3 614 5 058 2 849 2,6 1 998 3 957 1 738 2 013 2,0 3 985 4 325 4 693 1,6 915 2 898
Slide 33: Transaction fees
Transaction fees Average transaction fee on equities Main Market (bp)1 New transaction fees as of 2013 2,7 2,6 2,5 2,4 Reduction of transaction fees on equities markets (Main Market and NewConnect) Reduced transaction fees for day trading in futures Reduced market maker fees 2010 2011 2012 H
Slide 34: Events / Contact
Events / Contact WSE Investor Relations tel. +48 22 537 72 50 ir@gpw.pl http://www.gpw.pl/relacje_inwestorskie WSE IR Events 30 October 2013, Wednesday Q3 2013 results Warsaw Stock Exchange 31 December 2013, Tuesday ul. Książęca 4, 00-498 Warsaw, Poland Interest payment on WSE bonds for the 4th tel.