1Q 2016 FINANCIAL RESULTS MAY 2016

Transcription

1 1Q 2016 FINANCIAL RESULTS MAY 2016

2 Key events during the first quarter 11 January Erste Group Bank becomes participant at the BVB trading system 12 March The 4 th edition of the Individual Investors Forum takes place 5 February BVB signs cooperation agreement with the Ministry of Communications and Information Society 21 March Shares of Feper start trading on AeRO market 8 February Capital Fleet Services bonds start trading on AeRO market 30 March The 3 rd component of the Fluent in Finance program is launched, i.e. for universities 15 February New segmentation for AeRO market is enforced, for enhanced visibility 2

3 First quarterly results presented on a consolidated basis Central Depository Central Depository 69.04% Bucharest Clearing House Bucharest Clearing House Bucharest Stock 100% Exchange free float 100% free float 52.5% Bucharest Stock Exchange Compensation Investors Compensa- Fund 62.3% tion Fund Governance Corporate Institute 100% Governance Institute Segments within BVB Group: Trading segment Bucharest Stock Exchange Post-trading segment which includes: Clearing & settlement services of the Central Depository Activities of the Bucharest Clearing House Registry segment Registry activities of the Central Depository 69.04% 52.5% 62.45% 100% FCI services Activities of the Investors Compensation Fund Entities included in the consolidation process Not included in the consolidation process 3

4 Key financial highlights Financial performance, consolidated (RON mn, unless otherwise stated) 1Q Q 2015* Change (%) Operating revenues % Operating expenses % Operating profit % Net financial revenue/(expenses) (0.25) 1.80 n/a Profit before tax % Profit for the period % Total comprehensive income (0.16) 1.98 n/a EPS attributable to owners (RON/share) % * The financial results for first quarter of 2015 represent restated figures in accordance with IFRS and are not audited Profitability ratios (%) 1Q Q 2015* Operating margin 6% 8% Net margin 1% 27% Return on equity (ROE) 0% 2% * Indicators based on consolidated financial results. The ratios for first quarter of 2015 are based on restated figures in accordance with IFRS 4

5 Analysis of the consolidated results for the quarter 7.31 Main financial indicators, 1Q 2016 vs. 1Q 2015 (RON mn) Distribution of the operating revenues and result, by segment, 1Q 2016 (RON mn) Q 2015* 1Q Trading Post-trading Registry FCI services Operating revenues Operating profit Net financial revenue/expenses * The financial figures for 1Q 2015 are restated to IFRS and are not audited Operating revenues Operating result BVB Group s operating revenues went down 11% y-o-y, determined by a similar decline revenues generated by the trading segment of the Group and by weaker revenues of the registry segment. Revenues from the post-trading segment (clearing & settlement) remained unchanged compared to the year-ago period at RON 1.97 mn Operating expenses cumulated RON 6.13 mn, down by 9% y-o-y, as lower revenues determined a reduction in variable costs The operating profit was RON 0.36 mn, mostly generated by the trading segment Net financial expenses reached RON 0.25 mn, mainly represented by unrealized unfavorable foreign exchange differences resulted from the revaluation of financial instruments denominated in foreign currencies. The net consolidated profit registered in the first quarter was RON 0.04 mn 5

6 Analysis of the trading segment revenues (1/2) Data vending, 9% Issuers fees, 10% Breakdown of trading segment revenues in 1Q 2016 (%) Other, 8% Trading fees, 73% Trading segment revenues The trading segment represents the business of BVB Revenues from trading fees were RON 2.67 mn during 1Q 2016 and accounted for most of the segment operating revenues, i.e. 73%. Issuers fees reached RON 0.37 mn, down 8% compared to the year-ago period, based on a high-base effect created by oneoff fees paid by companies transferred from RASDAQ market to the Regulated Market/AeRO. The data vending business line generated RON 0.32 mn in revenues, up 8% y-o-y. Operating revenues and profit, trading segment (RON mn) Q 2015* 1Q 2016 Operating revenues Operating profit * The financial figures for 1Q 2015 are restated to IFRS and are not audited Trends in trading activity Less intense trading activity, but volatile on unfavorable international context 15% decline in shares trading activity versus 1Q 2015 The decline is steeper compared to 4Q 2015 when ABBs for Romgaz and Banca Transilvania were registered Certificates had a good quarter with higher turnover in both y- o-y and q-o-q terms, to RON 136 mn The fixed-income market was up 4% y-o-y to RON 126 mn, but down compared to 4Q 2015 which featured the International Investment Bank bond sale 6

7 Analysis of the trading segment revenues (2/2) Trading value, shares, rights & units (RON bn) Trading value, certificates (RON bn) -15% -33% 36% 61% Q Q Q Q Q Q Q Q Q Q 2016 Average trading value, shares - regulated market (RON mn/day) -20% -20% Trading value, fixed-income instruments (RON bn) 4% -54% Q Q Q Q Q Q Q Q Q Q 2016 Note: Figures are presented on a single counted basis and include Deal trades (for stocks and structured products) and offers. Average trading value includes all equities markets, excluding offers 7

8 Analysis of the post trading and registry segment revenues Operating revenues and profit, post-trading segment (RON mn) Q 2015* 1Q 2016 Operating revenues Operating revenues and profit, registry segment (RON mn) Q 2015* 1Q 2016 Operating revenues Operating profit Operating profit * The financial figures for 1Q 2015 are restated to IFRS and are not audited Post-trading segment revenues The post-trading segment includes settlement activities of the Central Depository and, less significant for the Group financial standing, the activities of the Bucharest Clearing House Revenues for the segment remained relatively unchanged Higher fees were registered for admission and maintenance of participants to the clearing and settlements system and custodians The average monthly portfolio managed by custodians, the basis for variable maintenance fees, increased by 1% y-o-y A decline was registered for revenues directly related to the trading activity, i.e. local settlement revenues Registry segment revenues The registry segment is heterogeneous in nature Changes are not generally significant to indicate the trend for these revenues During 1Q 2016, the lower number of companies having registries maintained by the Depository led to lower revenues from maintenance fees In the year-ago period, transfers of holdings in the State portfolio were operated from one ministry to another, generating additional revenues 8

9 Analysis of operating expenses for BVB Group Operating expenses breakdown, 1Q 2016 vs. 1Q 2015 (RON mn) -9% Third party services, 1Q 2016 (%) Audit services, 10% Q 2015* 1Q 2016 Personnel costs & Directors' fees Other operating expenses Third party services Other third party services, 54% Commissions & fees, 14% Promotion activities, 23% Group operating expenses down 9% on reduced variable expenses Higher personnel costs and Directors fees due to higher number and turnover of personnel, variations in capitalized costs for in-house developed intangible assets and the appointment of the remaining BoD members of the Central Depository Lower third-party services costs, i.e. promotion, travel expenses, fees owed to the regulator Depreciation charges again higher, on continuous investments * The financial figures for 1Q 2015 are restated to IFRS and are not audited FSA fees and other taxes, 12% Other operating expenses, 1Q 2016 (%) Other expenses, 22% IT maintenance and service, 16% Rent and office utilities, 28% Amortisation, 22% 9

10 Financials Overview of the consolidated financial position Consolidated financial position (RON mn) 1Q Q 2015* Non-current assets Current assets Total assets Shareholders equity attributable to owners of the Company Minority interest Short-term liabilities Total equity and liabilities Lower current assets and short-term liabilities, as the Central Depository paid dividends to its clients Other changes in current assets resulted from the payments made by the Investors Compensation Fund to investors in Harinvest case 60% of short-term liabilities are dividends to be paid by the Central Depository to its clients 30% of short-term liabilities are guarantee funds and margin % 2.14 Gross dividends and dividend yields 6.1% 4.4% % 3.5% 1.46 Note: Dividend yields are calculated using the price on the corresponding exdates, except for 2015, where the closing price as of 11 May 2016 was used Stable dividend policy, with a payout ratio of 100%, after legal reserves The dividend policy is expected to remain unchanged Gross dividend/share (RON) Dividend yield (%) 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% -2.0% -4.0% -6.0% -8.0% -10.0% * The financial figures for 1Q 2015 are restated to IFRS and are not audited 10

11 Thank you! Upcoming events 8/11/2016 2Q.2016 Results & Earnings Conference Call 11/10/2016 3Q.2016 Results & Earnings Conference Call IR Contact Daniela Serban, Director IR & PR Anca Olteanu, CFA, Research Specialist Zuzanna Kurek, IR Specialist Phone: Fax: BURSA DE VALORI BUCURESTI SA Bulevardul Carol I nr , Etaj 13-14, Sector 2, , Bucuresti, Romania Tel.: Fax: Website: bvb@bvb.ro Registrul Comertului: J40/12328/2005 CUI: Capital social, integral subscris si varsat: lei Decizia CNVM Nr. 369 / THIS PRESENTATION WAS PREPARED BY BURSA DE VALORI BUCURESTI. THE INFORMATION CONTAINED IN THIS DOCUMENT HAS NOT BEEN INDEPENDENTLY VERIFIED AND NO REPRESENTATION OR WARRANTY EXPRESSED OR IMPLIED IS MADE AS TO, AND NO RELIANCE SHOULD BE PLACED ON THE FAIRNESS, ACCURACY, COMPLETENESS OR CORRECTNESS OF THIS INFORMATION. PAST PERFORMANCE IS NO GUARANTEE OF FUTURES RESULTS. THIS DOCUMENT DOES NOT CONSTITUTE AN OFFER OR INVITATION TO PURCHASE ANY SHARES. CERTAIN STATEMENTS CONTAINED IN THIS DOCUMENT MAY BE STATEMENTS OF FUTURE EXPECTATIONS AND OTHER FORWARD-LOOKING STATEMENTS THAT ARE BASED ON MANAGEMENT S CURRENT VIEWS AND ASSUMPTIONS AND INVOLVE KNOWN AND UNKNOWN RISKS AND UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS, PERFORMANCE OR EVENTS TO DIFFER MATERIALLY FROM THOSE EXPRESSED OR IMPLIED IN SUCH STATEMENTS. EXCHANGE RATE USED FOR ADT IS THE DAILY EXHANGE RATE AS ANNOUNCED BY THE NBR. ACEASTA PREZENTARE A FOST REALIZATA DE BURSA DE VALORI BUCURESTI. INFORMATIILE CONTINUTE IN ACEASTA PREZENTARE NU AU FOST VERIFICATE DE CATRE O TERTA PARTE INDEPENDENTA, ASTFEL NU EXISTA NICIO GARANTIE SI NU TREBUIE LUATA CA ATARE ACURATETEA, CORECTITUDINEA SI COMPLETITUDINEA ACESTOR INFORMATII. PERFORMANÞA ANTERIOARA NU ESTE O GARANTIE A REZULTATELOR VIITOARE. ACEST DOCUMENT NU REPREZINTA O OFERTA DE A CUMPARA ACTIUNI. ANUMITE DECLARATII DIN ACEST DOCUMENT POT FI DECLARATII DESPRE ASTEPTARILE VIITOARE SAU ALTE EVOLUTII VIITOARE SI SE BAZEAZA PE VIZIUNEA SI IPOTEZELE ACTUALE ALE CONDUCERII COMPANIEI SI IMPLICA RISCURI CUNOSCUTE SI NECUNOSCUTE, PRECUM SI INCERTITUDINI CARE POT DETERMINA CA REZULTATELE EFECTIVE, PERFORMANÞA SAU EVENIMENTELE VIITOARE SA DIFERE SEMNIFICATIV DE CELE EXPRIMATE SAU INTELESE IN ACESTE DECLARATII.