Oslo Børs VPS Holding ASA 3rd Quarter 2014

Transcription

1 Oslo Børs VPS Holding ASA 3rd Quarter 23 October

2 3rd quarter at a glance Trading in shares up by 19% relative to the third quarter of Continuing strong interest in admission of both shares and bonds to stock exchange listing Six new companies admitted to listing in the quarter VPS continues its work on renewing its core system CSD-Regulation (CSDR) published Successful implementation of shorter settlement cycle (T+2) as of 6 October Changes in the distribution of investor messages Individual share savings product launched by VPS Ownership restrictions changed as of 1 July 2

3 NOK million NOK million 3rd quarter at a glance Revenues down NOK 11 million or 5% to NOK 29 million from After correction for Burgundy and Oslo Clearing organic growth NOK 19 million Expenses down NOK 6 million to NOK 99 million from 13 - After correction for one-offs and Burgundy and Oslo Clearing in line with 13 EBITDA down NOK 4 million from 13 - After correction for one-offs and Burgundy and Oslo Clearing up NOK 19 million Revenues Oslo Børs VPS EBITDA and EBITDA-margin Oslo Børs VPS 57% 43% 38% % 52% 47% 48% 53% 52% EBITDA EBITDA margin 6% 4% 2% %

4 NOK million NOK 1 Oslo Børs Revenues down 2% or NOK 2 million to NOK 16 million from 13 - Up 16% or NOK 15 million adjusted for Burgundy EBITDA down 3% or NOK 2 million to NOK 61 million from 13 - Up 36% or NOK 16 million adjusted for Burgundy and oneoffs Increased activity in both first and second hand markets Revenues Oslo Børs 212 Equity Markets Fixed Income Markets Derivatives Markets Financial Market data Other EBITDA and EBITDA-margin Oslo Børs 49% 44 66% 61 37% 37 5% 54 59% 56% 55% % 58% EBITDA EBITDA margin 8% 6% 4% 2% %

5 Number No. of issuers NOK 1 Oslo Børs primary market Steady increase in number of listed bonds and certificates Fixed fees from issuers up 16% from 13 Fixed fees driven by number of issuers and market capitalisation January 1 Market cap. issuers up 2% from Revenues primary market Fixed fees- issuers Prospectus and admission fees Number and market value of listed bonds and certificates Number of and market capitalisation of issuers of equity Number Value (NOK bill) No. of issuers Market cap (NOK bill) 5

6 NOK million Oslo Børs primary market Prospectus and admission fees up NOK 4 million to NOK 12 million in 14 Revenues driven by number and size of IPOs and issues Increasing level of new listings and issues of equity Six new listings in 14 High level of issues of fixed income instruments New listings No. of listings Issues of equity Issues (NOK mill) 6

7 Value NOK 1 Oslo Børs secondary market Revenues from trading on Oslo Børs and Fish Pool up NOK 4 million from 13 Value of turnover up 19% from 13 Revenues from Burgundy NOK 17 million in 13 Derivatives revenues driven by activity level and composition of derivatives trading 7 - No of contracts on Oslo Børs down 2% from 13 - Revenues in line with Revenues secondary market Equities trading Derivatives trading Fixed Income trading Equities - value of turnover and number of transactions Value (NOK bill) Trans (1) 6 4 2

8 NOK 1 Oslo Børs market data Revenues up NOK 2 million or 6% from 13 Revenues primarily driven by number of professional end users of data from Oslo Børs Professional users estimated up 7% from Revenues market data 212 Market data - number of end-users

9 Key market activities Market activities to attract issuers - Domestic and international - Equities and fixed income Common marketing activities with Fish Pool - Listings on Oslo Børs - Trading on Fish Pool Nordic ABM - Nordic bond offering for high yield bonds Continous improvement of microstructure - Marketplace rules, pricing structure, technology, networks and products - Introducing new functionality in the North Sea Dark Book in 215 Efficient post trade - Choice of Oslo Clearing and LCH.Clearnet as clearing provider 9

10 NOK million NOK 1 VPS Revenues up NOK 2 million or 2% to NOK 12 million from Revenues VPS EBITDA up NOK 2 million or 5% to NOK 49 million from 13 Modernisation of core IT-system 1 - Project period External capex and expenses about NOK 12 million - Capex about NOK 1 mill. - Expenses about NOK 2 mill - Yearly reduction in operating expenses approx. NOK 2 million (full year effect starting 218) - Enabling T2S connection Investor products Issuer products Settlement products Fund products Other revenues EBITDA and EBITDA-margin VPS 42% 39 6% 56 43% 43 51% 48% % 47% % 62 49% EBITDA EBITDA margin 49 8% 6% 4% 2% %

11 NOK million NOK 1 VPS investor products Revenues in line with 13 Revenues primarily driven by number of VPS accounts and market value of holdings January 1 - Reduction in number of accounts Revenues investor products Increased holdings Number of investor accounts and market value of holdings Income-earning accounts (1) EBITDA margin Please note change from gross number of investor accounts to number of investor accounts that directly affect the revenues of Investor products

12 NOK 1 VPS issuer products Revenues in line with 13 Revenues driven by number and composition of issuers and level and composition of corporate activity - AGM-season in Additional revenue from value added products - AGM-services - Bond holders meeting - Stock purchase programs - Nominee-ID Revenues issuer products Number of companies and bond issues registered Companies Bond issues 12

13 NOK 1 VPS settlement products Revenues up 7% to NOK 24 million in 14 Revenues driven by number of participants and number of settlement transactions Revenues settlement products Number of trade transactions processed in VPS (1)

14 NOK 1 VPS fund products Revenues in 14 up NOK 1 million from 13 Evolution up NOK 2 million Revenues in VPS primarily driven by assets under management and number of transactions Nordic Fund Managers and distributors still attractive customers for VPS However, strong competition from international providers and internal IT in targeted 14 markets Revenues fund products Asset under management and number of transactions AUM (NOK bill) Transactions (1)

15 Oslo Market Solutions Revenues down NOK,9 million from 13 EBITDA down NOK 1 million from ,6 Revenues and EBITDA Oslo Market Solutions 5,1 4,2 4,8 5,1 6,5 6,3 1,2,3,7 1, 1,7 1,1 1,5 -, ,1 4,2 Revenues EBITDA 15

16 European regulation implications MiFID II and MiFIR - More level playing field and increased transparency expected into force January 217 CSD-Regulation - Published in Official Journal in September - CSDs must comply with regulation and apply for authorisation early Increased competition opportunity and threat 16

17 Summary Increased activity in the capital markets Continued intense competition and pressure on market share Continuous focus on operating costs Continuous assessment of new products and new positions in order to adapt to challenging competitive environment Focus forward - Attract new listings/registrations and members - Increased sale to existing customers, e.g. Cairo in Norway - Strengthen competitive position in secondary market - Successful execution of projects - modernisation of VPS IT 17

18 Appendix

19 P&L 3rd Quarter 3rd Quarter Change 3 Sept 3 Sept Change in % in % Operating revenues % % Operating expenses Capitalisation of internal resources Salary and other personnel expenses Other operating expenses Depreciations and write-downs Amortisations Operating expenses before capitalisation of internal resources, depreciations and amortisations % % Total operating expenses % % EBITDA % % Operating profit (EBIT) % % Net financial items Ordinary pre-tax profit Tax Earnings for the period % % Actuarial gains/losses defined benefit pension plans Tax-effect Total comprehensive income % % Earnings per share (NOK) 1,37 1,42-4 % 5,61 3,65 54 % 4,98 Diluted earnings per share (NOK) 1,37 1,42-4 % 5,61 3,65 54 % 4,98 Earnings per share (NOK) before amorisations 1,72 1,76-3 % 6,66 4,66 43 % 6,33 19

20 Breakdown revenues Oslo Børs segment Revenues per area Equity Markets Fixed Income Markets Derivatives Markets Financial Market data Other Total Oslo Børs Revenues per category Fixed fees- issuers Trading fees Prospectus and admission fees Financial market data Other income Total Oslo Børs

21 Breakdown revenues VPS segment VPS Investor products Issuer products Settlement products Fund products Other revenues Total VPS

22 Balance sheet Fixed assets 3 Sept 3 Sept 31 Dec IT-systems Customer relations Registrations Goodwill Deferred tax assets Tangible assets Treasury bills and bonds Financial fixed assets Current assets Market value of outstanding derivatives positions Receivables Treasury bills and bonds Cash and cash equivalents Assets Equity Contributed equity Earned equity Non-controlling interests Total equity Liabilities 22 Pension liabilities Deferred tax liabilities Cash collateral Market value of outstanding derivatives positions Current liabilities Equity and liabilities

23 Cash flow Cash flow from 3rd Quarter 3rd Quarter 3 Sept 3 Sept - operational activities investment activities investments in systems and tangible assets investments in subsidiaries investments in treasury bills and bonds received cash collateral from members financial income financing activities Cash and cash equivalents at period's start Change in cash and cash equivalents Cash and cash equivalents at period's end Cash flow per share (NOK) -2,71 3,29-2,8 3,13 6,23 Treasury bills, bonds and bank deposits Cash collateral from members Net after deduction for cash collateral from members

24 Equity 3rd Quarter 3rd Quarter 3 Sept 3 Sept 2 14 Equity at period's start Total comprehensive income Dividends Purchase of own shares Acturial gains/losses in the period Change in non-controlling interests Equity at period's end Equity ratio 74 % 41 % 74 % 41 % 44 % 24

25 Largest shareholders 14 October 25

26 Share price Oslo Børs VPS Holding ASA 26

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