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

Transcription

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

2 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%) Sales revenues highest in history (PLN mn) WSE Group financial results PLN m 2011 change vs Sales revenues % Operating expenses % Operating profit % Net profit % EBITDA % 1 EBITDA = EBIT + share of profit of associates + depreciation and amortisation WSE on the Stock Exchange 1 Market capitalisation PLN 1.48 bn Average daily turnover in 2011 PLN 4.74 m Dividend yield 9.1% Free float 64.05% Turnover ratio % 1 As at Turnover volume for 2011 to capitalisation as at

3 Business Expansion Making WSE more attractive to market participants 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 trading up by 21%) Spin-off of the clearing house KDPW_CCP in KDPW Group Treasury Securities Dealers once again selected TBSP as the platform of organised Treasury bond trading Diversification and business expansion Acquisition of PolPX (Feb. 2012) drives WSE expansion in exchange commodities and commodity derivatives trading New single-stock futures, new ETFs, new structured products Catalyst enters a phase of dynamic growth Strengthening the regional role of WSE 16 new foreign listings; 46 foreign companies listed at end of 2011 (MM: 39, NC: 7) Of 12 brokers admitted to operation in 2011, 10 are foreign brokers One of Europe s strongest IPO markets, record-high number of IPOs 3

4 Challenging Market Environment Poland s high GDP growth in 2011 (4.3% vs. 1.5% EU average 1 ), 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: PLN 3.33 bn) 2 Horizontal price movements and very low volatility in H did not favour increased equities and derivatives trading Peformance of main indices, Higher volatility in Q3 combined with stock price falls drove trading volumes up but was not good for investors Regulatory changes in Open Pension Funds without influence on the funds activity on WSE in the last couple of months Selected currencies to euro, Lira Turkey -15.3% Forint Hungary -11.6% Złoty Poland -10.8% Koruna Czech Rep. -2.8% Roble Russia -2.3% Leu Romania -1.4% Lev Bulgaria 0.0% Despite the adverse market conditions, WSE s initiatives ensured record-high equities and derivatives trading volumes and very good financial results of WSE 1 Source: Eurostat; 2 Source: Analizy Online; 3 Source: FESE; 4 Source: ECB 4

5 Dec-99 Dec-00 Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Business Growth Drivers in 2012 Poland will be the fastest growing EU economy in Launch of UTP, state-of-the-art trading system, scheduled for 2 November 2012 Retail investment fund assets to household bank deposits ratio lowest since 2004 (15%); the trend may reverse as market sentiment improves Ministry of Treasury plans to continue privatisation projects on WSE in ; this will attract new investors to WSE WSE focus: strengthen WSE image among foreign issuers and investors improve trading liqidity in foreign stocks promote WSE markets among domestic investors (in particular bonds and derivatives) develop commodity products 1 Source: Eurostat; 2 Source: Analizy Online Retail investment fund assets to household bank deposits 2 EU GDP forecast Poland 2.5% 2.8% Lithuania 2.3% 3.8% Latvia 2.1% 4.0% Romania 1.6% 3.4% Bulgaria 1.4% 3.0% Estonia 1.2% 4.0% Slovakia 1.2% 2.9% Denmark 1.1% 1.7% Malta 1.0% 2.0% Finland 0.8% 1.7% Luxembourg 0.7% 2.3% Austria 0.7% 1.9% Sweden 0.7% 2.1% Germany 0.6% 1.5% UK 0.6% 1.5% Ireland 0.5% 2.3% France 0.4% 1.4% EU27 0.0% 1.5% Czech Rep. 0.0% 1.7% Belgium -0.1% 1.5% Hungary -0.1% 1.4% Slovenia -0.1% 1.5% Euro Zone % 1.3% Cyprus -0.5% 1.8% Netherlands -0.9% 1.3% Spain -1.0% 1.4% Italy -1.3% 0.7% Portugal -3.3% 1.1% Greece -4.4% 0.7% 5

6 Regional Dominance Market cap of stock exchanges in the region (EUR bn) Share of region s exchanges in equities trading 1 3% 2% 1% 1% 2% 15% 12% 16% 16% 11% 15% 19% 16% 12% 40% 41% 32% 29% 12% 25% Other (Bulgaria, Romania, Slovenia, Slovakia) CEESEG Budapest CEESEG Prague 50% 42% 34% 26% 26% CEESEG - Vienna WSE WSE: 50% of trading in stocks of companies from the region Market capitalisation of domestic companies listed on WSE represents over 45% of market capitalisation of exchanges in the region 1 Source: FESE WSE attracts foreign issuers and investors 6

7 Internationally Recognisable Brand IPOs in Europe, Nasdaq OMX: 30 LSE Group: 107 NYSE Euronext: 25 Luxembourg: 20 Deutsche Boerse: 18 WSE: 203 Oslo Bors&Oslo Axess: 13 BME (Spanish Exch.): 9 Annual growth rate of equities trading on WSE and average for selected regions (2011/2010) % 3.4% -2.8% -4.2% -5.3% -5.8% -7.3% -8.3% WSE: #3 in Europe by value of IPOs and #1 by number of IPOs 1 WSE in 2011 #3 globally after Shenzhen and TMX Group 2 in terms of number of new listings 2 WSE ranked #7 globally in 2011 by growth rate of equities trading and #1 by growth rate of the number of listings 1 1 Source: PwC (excluding transfers between markets of a Group, e.g., from NewConnect to WSE Main Market) 2 Source: WFE (excluding transfers between markets) 1 Source: WFE, Prague Stock Exchange (session trading in local currencies; arithmetic mean; number of exchanges in brackets) 2 EME Emerging Markets Europe (Poland, Hungary, Czech Rep., Turkey, Russia) 3 EM all markets other than DM (mainly emerging and frontier markets) 4 EMEA Europe, Middle East, Africa 5. DM Developed Market 7

8 Issuers Tap Strengths of WSE Markets Fast growth of issuer base as proof of WSE international strengths Main Market domestic companies Main Market foreign companies +4% +44% +90% +102% #2 in Europe by number of IPOs, #3 by value of IPOs (EUR 2.2 bn) 1 WIG-Ukraine new WSE index (10 participants) Bulgarian, Lithuanian and Slovenian listings #1 by number of IPOs on alternative markets in Europe 1 Value of issues PLN 40 bn at end of 2011 (+85.8%) First eurobond issue 1 Source: PwC (excluding transfers between markets of a Group, e.g., from NewConnect to WSE Main Market) 2 Non-Treasury bonds only 8

9 Strong Foundations of Growing Turnover Value of equities trading on WSE Main Market (PLN bn) Volume of derivatives trading (thou. instruments) Value of T-bond trading on TBSP (PLN bn) Block trades Session trades Single-stock and currency futures, options, index units Index futures +14% +6% Conditional transactions Cash transactions +321% WSE trading value increased while other key markets of the region reported decreased or stable trading values. Liquidity up from 42.0% in 2010 to 45.6% in 2011 Average daily turnover increased by 15.4% to PLN 1,068 m Biggest derivatives market in CEE Total trading volume increased 5.7% YoY in 2011 Share of derivatives other than WIG20 futures in total volume increased from 8.4% in 2010 to 12.3% in 2011 Share of TBSP in secondary Treasuries trading was 9.6% in 2011 (3.9% in 2010) Share of TBSP in inter-bank secondary Treasuries trading was 25.1% in 2011 (12.8% in 2010) 9

10 WSE s Increasing Impact Growing network of WSE market data vendors Number of real-time data subscribers increased by 15% to thou. subscribers Growing number of accounts operated by KDPW (1,498 thou. at end of 2011 vs. 1,477 thou. at end of 2010) Growing WSE Member network one of key elements of WSE strategy 12 new WSE Members in 2011: 2 Polish institutions 10 foreign investment firms WSE Members Remote Local +24% WSE Data Vendors Foreign vendors Domestic vendors +10% 31 Remote WSE Members in 14 countries at end of Remote WSE Members generated 23.4% of session equities trading in 2011 (+7.4 pp vs. 2010)

11 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 m in total) GPW 90.3% Vattenfall Sales Poland 6.8% Additional stakes bought from RWE Polska, Enea, ZEW Kogeneracja Bergen Energi AS 0.8% Electrabel 1.0% PKP Energetyka 1.0% PolPX: the only commodity exchange in Poland, the biggest national power exchange in the region 1 Very profitable business Poland: #1 in the region and #6 in EU by production of electricity 2 Strong position of WSE Group in view of regulatory changes on the EU and Polish energy market (liberalisation of gas market, further requirements for RES production) 1 Central and Eastern Europe 2 Source: Eurostat, 2009 data. 11

12 PolPX: Commodity Market Potential Net sales revenues (PLN m) Operating expenses (PLN m) New platform accelerating WSE growth with the introduction of new derivatives combining the know-how of both companies Net profit (PLN m) Financially attractive deal, supporting the effectiveness of WSE sources of funding, no major impact on dividend pay-out capacity Fulfilment of WSE strategy of consolidating the Polish market infrastructure Natural complementarity and further diversification of WSE Group business Access to an attractive revenue stream

13 WSE Group GIEŁDA PAPIERÓW WARTOŚCIOWYCH W WARSZAWIE S.A. Subsidiaries BondSpot S.A. (92,47%) Associates KDPW S.A. (33,33%) Polish Power Exchange (90,33%) KDPW_CCP S.A. (100,00%) IRGiT S.A. (100,00%) Info GT Sp. z o.o. (100,00%) INNEX PJSC (24,98%) WSEInfoEngine S.A. 100,00% Centrum Giełdowe S.A. (24,79%) Instytut Rynku Kapitałowego WSE Research S.A. (100,00%) 13

14 Successful Placement of WSE Bonds Series A Qualified investors PLN 170 m Public offering for qualified investors (December 2011) 90 subcriptions placed, 23 subscriptions accepted Placed subscriptions 4.8 times higher than the value of allocated bonds Series B Individual investors PLN 75 m Public offering for individual investors (February 2012) 1,777 subscriptions for over PLN 100 m 25 percent reduction of subscriptions Yield: WIBOR 6M + margin 117 bp Two series of 5Y bonds, total value PLN 245 m 20 February 2012: assimilation, listed on: Catalyst regulated market, Catalyst ATS Q After bond issue 4 Debt to equity 1 : Net debt 2 / EBITDA 3 : 0% ~44% Interest-bearing liabilities (total liabilities under debt, e.g. principal and interest)/ approximate consolidated equity for WSE and PolPx; 2 Interest-bearing liabilities cash and cash equivalents (without debt issue) 3 EBITDA = EBIT + share of profit of associates + depreciation and amortisation 4 Including series A bonds (PLN 170 m) and series B bonds, issued in February 2012 (PLN 75 m); on the basis of consolidated data 14

15 Financial results 15

16 Historically High Revenues Q4/10 Q3/11 Q4/11 PLN m % Sales revenues % Revenues grew 19% in 2011 (YoY) thanks to very good results of all lines Growth stalled in Q4 due to falling equities trading on WSE % Operating profit % High growth of operating profit owing to cost discipline and no major one-off expenses (public offering expenses in 2010) % Net profit % Growth of net profit modestly lower than growth of operating profit due to less growth of associates profit 16

17 Growth of Main Business Lines Q4/10 Q3/11 Q4/11 PLN m % Trading revenues % Dynamic growth of the segment owing to many IPOs on WSE and active trading by foreign investors who generated 47% of turnover in % Listing revenues % Growing share of NewConnect and Catalyst issuers in total revenues (respectively, 7.7% in 2011 and 10.8% in Q and 4.5% in 2010 and 3.6% in Q of listing revenues) Modification of NewConnect price list as of 2012 (introduction fee increased from PLN 3 thou. to PLN 6 thou.) % Information services revenues % Modification of monthly subscriber fees as of July 2011 grew revenues in Q4 Price increase as of 2012 (annual data vendor fees) 17

18 Stable Revenues Structure Sales revenues, Q (PLN thou.) Structure of sales revenues in 2011 Q Q Revenues Share Revenues Share Sales revenues ,4 100% ,0 100% Equities trading ,1 48% ,7 53% Information services 14% Other revenues 2% Derivatives trading 9 768,8 16% 8 726,1 14% Trading (other) ,4 3% 1 211,1 2% Bond trading 3 448,8 6% 2 265,2 4% Listing 5 561,0 9% 5 507,0 9% Information services 9 462,0 16% 8 621,0 14% Other revenues 1 834,4 3% 2 203,0 4% Listing 9% Trading 1 (other) 2% Bonds 5% Derivatives 15% Equities 53% Growth of bond trading and information services revenues in Q vs. Q driven by dynamic growth of Catalyst and TBSP and modification of information services prices Share of equities in sales revenues increased to 53% in 2011 (51% in 2010) thanks to equities market growth faster than in other segments 1 WSE Member fees and other cash market instruments 18

19 Costs Operating expenses in 2011 similar to 2010 Sharp decrease of cost of external services in all of 2011 and in Q vs. Q due to one-off costs of the WSE public offering in 2010 Increase of staff costs in Q due to actuarial valuation of WSE future financial liabilities to employees change (YoY) Q4/11 Q3/11 Q4/10 change (Q4 11/Q4 10) Operating expenses % % Depreciation and amortisation % % Staff costs % % Rent and other maintenance fees % % Fees and charges % % including: fee paid to KNF % % External services % % Other operating expenses % % 19

20 High Profitability Good business results in Q4 and all of 2011 combined with high profitability EBITDA and EBIT highest since 2008 EBITDA 1 (PLN m) Net profit (PLN m) Operating profit (PLN m) EPS (PLN) EBITDA 52.7% 54.3% % ROE 13.9% 18.1% % EBIT 39.9% 40.7% % Quarterly EBITDA Quarterly ROE Quarterly EBIT Quarterly EPS Q4/10 Q3/11 Q4/11 Q4/10 Q3/11 Q4/11 Q4/10 Q3/11 Q4/11 Q4/10 Q3/11 Q4/ % 59.3% 54.2% 1 EBITDA = EBIT + share of profit of associates + depreciation and amortisation 18.1% 25.4% 25.6% 28.0% 48.6% 43.8%

21 High Liquidity At end of 2011 balance sheet only includes series A bond issue (PLN 170 m; series B: PLN 75 m in Q1 2012) Cash and equivalents net of receipts from the issue at a high PLN 121 m Dividend policy to pay out at least 30-50% of separate profit is safe Balance Sheet overview (PLN thou.) Non-current assets Property and equipment Intangible assets Investment in associates Current assets Trade and other receivables Available-for-sale financial assets Cash and equivalents Total assets Equity Long-term liabilities Liabilities in respect of bond issue Short-term liabilities Trade payables Corporate income tax liabilities Other liabilities Employee benefits payable Total liabilities

22 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 of an offer to purchase any securities or recommendation to conclude any transaction, in particular with respect to securities of WSE. The information contained in this document has been compiled in good faith by the Company. However, all users of this presentation should take note that some of the data are based or provided to WSE by external sources and have not been independently verified. WSE does not make any representation as to accuracy, fairness, correctness or completeness of the information or the opinions contained herein. WSE shall not be liable for the consequences of any decision made based on information included in this presentation. WSE hereby informs persons viewing this presentation that the only source of reliable data describing WSE financial results and events are current or periodic reports issued by WSE in satisfaction of its disclosure obligations under Polish law.

23 Additional slides financial data 23

24 Consolidated statement of comprehensive income in PLN m, under IFRS Q4 '11 Q3 '11 Q2 '11 Q1 '11 Q4 '10 Q3 '10 Q2 '10 Q1 '10 Revenue Revenue from trading Shares and other equity instruments Derivative instruments Other fees from market participants Fixed-income securities Other cash instruments Revenue from listing Annual listing fees Introduction and admission fees Revenue from information services Other revenue Operating expenses Depreciation and amortization Salaries Other employee costs Rent and other rent related fees Fees and charges including: fees paid to KNF External services Other operating expenses Other income Other expenses Operating profit Net financial income Share of profit of associates Profit before income tax Income tax expense Profit for the period

25 External services. financial ratios in PLN thousand, under IFRS External services Building renovations and maintenance Advertising expenses Electronic data transfer Consulting and audit fees Press announcements Staff training Security Telecommunication Information services Office cleaning Legal and translation services Software modifications Other external services PLN m Q4 '11 Q3 '11 Q2 '11 Q1 '11 Operating profit EBITDA* 61.3% 54.3% 54.2% 59.3% 61.6% 69.3% EBITDA margin** (%) 49.7% 40.7% 44.5% 48.6% 49.5% 55.7% Operating profit margin*** (%) 25.6% 18.1% 25.6% 25.0% 23.1% 20.4% Return on equity (ROE)**** (%) 32.5% 0.0% 32.5% 0.0% 0.0% 0.0% 25

26 Balance sheet - assets in PLN m, under IFRS Non-current assets Property and equipment Intangible assets Investments in associates Deferred tax assets Available for sale financial assets Financial assets held to maturity Prepayments Current assets Inventories Corporate income tax receivable Trade and other receivables Available-for-sale financial assets Financial assets held to maturity Other short-term financial assets Cash and cash equivalents Total assets

27 Balance sheet - equity in PLN m, under IFRS Equity Share capital Other reserves Retained earnings Non-controlling interest Non-current liabilities Employee benefits payable Other non-current liabilities Finance lease liabilities Provisions for other liabilities and charges Current liabilities Trade payables Finance lease liabilities Corporate income tax payable Other liabilities Employee benefits payable Provisions for other liabilities and charges Total equity and liabilities Equity

28 Cash flows in PLN m, under IFRS Cash flows from operating activities Cash generated from operations Income tax paid Cash flows from investing activities Purchases of property and equipment Proceeds from sale of property and equipment Purchases of intangible assets Purchases of financial assets available for sale Purchase of an associate Acquisition of subsidiary less acquired cash Redemption/ sale of financial assets available for sale Redemption of financial assets held to maturity Purchases of bonds held to maturity Redemption of financial assets held to maturity Interest received Dividends received Other Cash flows from financing activities Dividends paid Net increase/ (decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the period Cash and cash equivalents at the end of the period Cash flows from operating activities

29 Income listing and market services Listing (PLN m) Information services (PLN m) Annual fees Introduction fees Total Number of subscribers Information services revenue Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Record number of new listings on NewConnect market Annual fees: Depend on the company s market capitalization at the end of each year Stable revenue source throughout the year Fees for information services denominated only in PLN, change from EUR, increase of monthly fees denominated in PLN (1 July 2011) Change of annual fees for data vendors as of the beginning of 2012 (price increase and currency change to PLN) 29

30 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 4,359 4,434 5,438 4,420 3, ,890 2, , ,984 4,325 1, ,848 2, Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 KDPW net profit for WSE (PLM m) Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Centrum Giełdowe result depends on USD/PLN exchange rate due to a loan denominated in USD In Q the share of profit of associates was increased by PLN 218 k as an impact of full consolidation - first-time consolidation of KDPW_CCP in the KDPW Group 30

31 Revenues trading segment Equities (PLN m) Derivatives (PLN m) Fixed income (PLN m) Other 3 (PLN m) Trading (PLN m) Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 1 Includes revenue from tender for shares in the amount of PLN 7.7 m (mainly tender for BZ WBK shares) 2 Includes PLN 3 m trading revenue from invoice correction for Q Other fees paid by market participants and other cash instruments 31

32 Slide pool market data 32

33 Trading Listing WSE Group business lines Listing and trading ( ) Market data and other services Largest CEE exchange, with domestic market capitalization of PLN 446 bn (Main Market) and PLN 8.4 bn (NewConnect) 777 listed companies (426 Main Market, NewConnect) 39 foreign issuers listed on the WSE Main Market, 7 on NewConnect market 208 non-treasury bond series, PLN 40.0 bn issue value of Catalyst bond market provider of real-time Polish trading data, supplied via 54 data vendors (327.3k subscribers at the end of 2011) Supports listed companies IR and PR strategies through company WSEInfoEngine and internet platforms, including WSEInfoSpace and WSEInternational Strong trading flow generated by 60 exchange members, both local and remote Cash securities Derivatives Fixed income Commodities #1 in CEE, and #9 in Europe, by cash equity turnover value #1 in CEE, and #4 in Europe, by stock index future turnover Strong growth potential on Catalyst and Treasury BondSpot Poland Growth potential of electricity market and other products Post-trade services 33.3% stake (alongside the State Treasury and the National Bank of Poland) in KDPW Group, the Polish CSD and clearing house for WSE, BondSpot and OTC trades KDPW provides WSE with both influence over the structure of the Polish capital markets, and an attractive share in KDPW s earnings stream WSE operates across a wide range of financial markets, maximising revenue potential from listing, trading, market data and post-trade services 33

34 WSE one of the fastest developing stock exchanges Top 10 world stock exchanges with the highest growth of number of companies 1 Warsaw SE Shenzhen SE Santiago SE Colombo SE Budapest SE Mexican Exch. Istanbul SE Hong Kong Exch National SE India TMX Group % 6% 5% 5% 5% 13% 11% 16% 21% 33% - Increase of no. of companies 2010 to Number of companies as of end 2011 Saudi Stock Market Mauritius SE Colombia SE Philippine SE Korea Exchange MICEX Warsaw SE Lima SE Bursa Malaysia Ljubljana SE Top 10 world stock exchanges with the highest turnover growth in , , , , , , , , , , % 27% 26% 26% 25% 24% 21% 16% 45% 44% - Increase of turnover 2010 to Turnover value 2011 (USD bn) The first stock exchange in the world in terms of the growth dynamics of the number of companies in The fifth stock exchange in the world and the first in Europe in terms of turnover growth 2010 to Source: WFE; regulated and alternative markets 2 Source: WFE; session trading (USD) 34

35 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 Main Market: number of new listings Domestic Foreign Transfer form NC

36 Attractive venue for issuers Main Market offering value (PLN bn) NewConnect raised capital (PLN m) 0.1 IPO SPO SPO IPO Main Market number of companies NewConnect number of companies Domestic Foreign Domestic Foreign

37 Domestic market capitalisation and GDP Domestic companies capitalisation to WIG index Domestic companies capitalisation to Polish GDP 1 Domestic companies capitalisation (PLN bn) WIG index return rate (%) 1,400 GDP (PLN bn) Domestic companies capitalisation (PLN bn) Ratio 80% , , ,176 1,016 1,068 1,085 1, % 46% 48% 39% 38% 34% % % % % 14% Source: Central Statistical Office, WSE. GDP in 2011 preliminary data 70% 60% 50% 40% 30% 20% 10% 0% 37

38 WSE Main Market turnover Quarterly value and turnover dynamics vs. WIG index (PLN bn) Block trading Session trading Total turnover Change q-o-q WIG Index Equity trading (PLN bn) Block trading Total turnover Session trading , % 17.4% -13.8% 33.4% -2.8% 4.9% 0.6% -19.3% % Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 Q4/ Free float (%) Turnover ratio (%) Top 5 share in turnover (%) Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 38

39 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)

40 Equities market long-term perspective 30 Monthly turnover value on the Main Market (PLN bn) NewConnect: market cap (PLN bn) and new listings Market Cap New listings WSE Main Market: return of turnover growth dynamics to the level before crisis Turnover value in 2011 on the level of 121.1% of the entire 2010 value NewConnect: constant increase of the market parameters, market supplied with new companies and increased investors interest NewConnect: turnover value (PLN m)

41 Derivative instruments Index futures turnover volume in Europe (2011; m) Derivative instruments turnover volume (m) Futures Options Total volume 1 Change q-o-q % % -22% 3% 20% -19% 43% -21% Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Increasing share of options and stock futures volume WIG20 futures Options Stock futures Currency futures miniwig20 participation units mwig40 futures 92.8% % m 2.6% 0.8% 0.2% 0.2% 87.7% m 5.8% 4.7% 1.3% 0.3% 0.2% 41

42 Debt instruments TBS Poland trading value (PLN bn) Wartość obrotów na TBS Poland (mld PLN) Catalyst (instrumenty nieskarbowe) Catalyst (non-treasury instruments) Cash market Repo market Issue value (PLN bn) Number of series Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 Q4/ Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 Q4/ Development of non-treasury debt market in Poland (value of issues at the end of the period; PLN bn) Municipal bonds Bank bonds Corporate bonds Commercial papers Total: PLN 63.7 bn out of which 32% listed Total: PLN 97.5 bn out of which 41% listed on Catalyst Q4/10 Q4/11 Source: Fitch Polska 42

43 1/2006 4/2006 7/ /2006 1/2007 4/2007 7/ /2007 1/2008 4/2008 7/ /2008 1/2009 4/2009 7/ /2009 1/2010 4/2010 7/ /2010 1/2011 4/2011 7/ /2011 Exchange members 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Share of remote exchange members in session equity trading Foreign Local Origin of WSE remote members UK: 9 Sweden: 1 Estonia: 1 Russia: 3 1 Lithuania: 1 Germany: 2 Ukraine: 1 Czech rep.:3 France: 2 Slovakia:1 Austria:1 Hungary: 2 Romania:2 Bulgaria:2 1 The number of exchange members Remote Local Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 1 Brokers from Ukraine and Russia formally operate through entities registered in the UK and in Cyprus 43

44 Investors structure Share in equity turnover by investor type Main Market Share in futures turnover by investor type Main Market 100% 80% Foreign Polish individuals Polish institutional 29% 36% 32% 39% 33% 34% 37% 39% 37% 34% 35% 100% 80% Foreign Polish individuals Polish institutional 15% 19% 24% 22% 20% 25% 34% 37% 37% 36% 38% 60% 40% 37% 29% 29% 35% 26% 35% 30% 18% 27% 19% 18% 60% 40% 83% 79% 74% 74% 75% 66% 56% 53% 52% 50% 46% 20% 0% 34% 35% 41% 43% 47% 47% 32% 33% 31% 33% 36% % 0% 2% 2% 2% 4% 5% 9% 10% 10% 11% 14% 16% AUM of Polish pension. funds (PLN bn) AUM of Polish investment. funds (PLN bn) Source: KNF Source: IZFiA 44