1Q 2017 FINANCIAL RESULTS MAY 2017

Transcription

1 1Q 2017 FINANCIAL RESULTS MAY 2017

2 Key events during 1Q 2017 January 2017 Bucharest Stock Exchange kicked off 2017 with new heights in January, being the best first month of the year in terms of value traded on the main market for shares since According to BVB data, the total trading value for equities went up by nearly 25% last month compared to December 2016 and 12% compared to the first month of 2016, to RON 710 million. January, 3 Wood & Company Financial Services, a leading investment firm focused on European Emerging markets,, becomes Super Market Maker for BVB shares. February, 2 Romania will likely offer dividends over 7% this year also; double-digit dividends are expected for some companies, according to Carsten Hesse, EME Equity Strategist at Berenberg February, 6 BVB launched Made in Romania : the league of 15 companies for the growth of the Romanian economy. The project is organized for the first time in the history of the Romanian capital market. January, 4 The indirect participant, a nee feature offered to BVB intermediaries. The move allows a BVB participant to choose how to perform post-trading operations. March, 20 BVB expanded its main indices, BET and BET-TR, to 12 companies. The two new companies joining the main indices are CONPET (symbol COTE) and MedLife (symbol M). January, 26 BVB launched Leii BVB, a special project which will be carried out throughout the whole year 2017 as a manner of celebrating the 150 th anniversary of Leu becoming the national currency of Romania. March, 18 Over 500 people attended the 6th edition of the Individual Investors Forum, one of the benchmark events dedicated to retail investors and organized by the Bucharest Stock Exchange. 2

3 Presentation of BVB Group and of the consolidation process 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 - consolidated Financial performance, BVB Group (RON mn, unless otherwise stated) 1Q Q 2016 Change (%) Operating revenues % Operating expenses % Operating profit % Net financial revenue/(expenses) 0.45 (0.25) 280% Profit before tax ,310% Profit for the period ,975% Total comprehensive income 2.95 (0.16) 1,944% EPS attributable to owners (RON/share) 0,3623 0,0115 3,050% * The financial results for 1Q 2017 are prepared in accordance with IFRS and are not audited, The financial results for 2015 are final and audited. Profitability ratios, BVB Group (%) 1Q 2017) 1Q 2016 Change (%) Operating margin 33% 6% - Net margin 31% 1% - Return on equity (ROE) 2.6% 0% - * Indicators based on consolidated financial results 4

5 Analysis of the consolidated results for the quarter 6.49 Main financial indicators, 1Q 2017 vs. 1Q 2016 (RON mn) Distribution of operating revenues and result, by segment, 1Q 2017 (RON mn) Q Q 2017 Trading Post-trading Registry FCI services Operating revenues Operating profit Net profit Operating revenues Operating profit * The financial indicators for the 1 st quarter of 2017 are prepared in accordance with IFRS and are not audited. The Bucharest Stock Exchange Group (BVB Group) ended the first quarter of 2017 with a growth of more than 7 times of the consolidated operating profit of RON 2.96 mn The BVB Group's operating income grew by 42% in the first three months of the year compared to the similar period of 2016, up to RON 9.19 mn, mainly driven by the increase in the total value of transactions traded on the BVB markets. Operating expenses amounted to RON 6.23 mn, where up only 1.6% compared to the first three months of last year. Consolidated net profit in 1Q 2017 amounted to RON 2.83 mn, significantly increasing compared to the net result obtained in the same period of the previous year (1Q 2016: RON 0.04 mn) with a net margin of 31%, while 89% of the net profit being obtained from the Group's trading segment. 5

6 Analysis of the trading segment revenues (1/2) Breakdown of trading segment revenues in 1Q 2017 (%) Data vending, 6% Issuers fees, 9% Other, 4% Trading fees, 81% Trading segment revenues BVB's trading activity on the stock market was more intense, with a 42% increase from the first quarter of 2016 to a level of RON 2.92 bn. For the regulated market of shares, the average daily value of the transactions was RON mn. 1Q 2017 is the the best first quarter of the past 7 years in terms of number of transactions (212 thousand). Operating revenues and profit, trading segment (RON mn) Q Q 2017 Op. revenues, RON mn Op profit, RON mn Net result Trends in trading activity The most significant transaction in the offer segment was the public offer for the purchase of Fondul Proprietatea shares, amounting to RON mn lei. The market for fixed income instruments (bonds and government securities) registered a decrease compared to the same period last year, up to a value of RON 55 mn. In the first quarter of 2017, the sale of Vrancart bonds amounted to million lei took place. * The financial indicators for the 1 st quarter of 2017 are prepared in accordance with IFRS and are not audited. 6

7 Analysis of the trading segment revenues (2/2) Trading value for shares, rights and units (RON bn) Trading value for certificates (RON bn) Q Q Q Q Q 2017 Average trading value, shares - regulated market (RON mn/day) 1Q Q Q Q Q 2017 Trading value, fixed-income instruments (RON bn) Q Q Q Q Q Q Q Q Q Q 2017 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 Post-trading segment revenues Operating revenues and profit, post-trading segment (RON mn) Q Q Op. revenues, RON mn Op profit, RON mn Net profit, RON mn The revenues from the registry activity carried out by the Central Depository are heterogeneous and variations are not generally significant to indicate the trend of these revenues. In the first quarter of 2017, there was a similar evolution of the revenue over the same period of the previous year. Revenues from the post-trading segment of the first quarter of 2017, of RON 2.26 mn, increased by 15% compared to the same period in 2016, amid the increase in the trading activity of BVB, which generated an increase over 40% of revenues from the local settlement, as well as an 8% increase in revenues from admission and maintenance of participants in the clearing-settlement system and custodians. The incomes of the Investor Compensation Fund (FCI) are represented by the interest income related to the investments of the Fund, classified as operational revenues, ie those remaining at the disposal of the FCI to cover the administrative expenses or to increase the Fund's resources. They have a small share in the total operating income of the BVB Group and come to cover only a fraction of Fund s expenses. * The financial indicators for the 1 st quarter of 2017 are prepared in accordance with IFRS and are not audited. 8

9 Overview of the consolidated financial position Consolidated financial position (RON mn) Dividends and dividend yield March 2017 Dec 2016 Non-current assets Current assets Total assets Shareholders equity attributable to owners of the Company Minority interest Short-term liabilities Total equity and liabilities % 4.4% 3.9% 3.2% 3.0% % 8% 7% 6% 5% 4% 3% 2% 1% 0% At the end of March 2017, total assets of the BVB Group amounted to RON mn (31 December, 2016: RON mn), down by 3% compared to the beginning of the year, mainly as a result of the decrease in current assets. Non-current assets recorded a similar level to the beginning of the year, while current assets decreased to RON mn (31 December, 2016: RON mn) following the payment of dividends operated by the Central Depository to the shareholders of listed companies, also clients of the Depositary. Dividend/share [RON] Dividend yield [%] Note: Dividend yields are calculated using the price on the corresponding ex-dates, except for 2016, where the closing price as of 12 April 2017 was used Stable dividend policy, with a payout ratio of 100%, after legal reserves The dividend policy is expected to remain unchanged 9

10 Thank you! Upcoming events 10 August 2017 Half-yearly financial statements 14 November rd quarter results IR Contact Daniela Serban, Director IR & PR Natalia Negru, IR & PR 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.