WARSAW STOCK EXCHANGE

Transcription

1 WARSAW STOCK EXCHANGE THE MARKET DRIVEN BY INFORMATION WARSAW, 4 DECEMBER

2 Table of contents Introduction WSE business lines and its internationalization Financial highlights Here and beyond the strategy Role of information on a stock exchange -2-

3 Introduction -3-

4 Warsaw Stock Exchange an introduction 22 years of functioning Active IPO market Leading stock exchange in the CEE region Attractive to the foreign investors and foreign issuers Ownership structure by number of shares Polish Power Exchange WSEInfoEngine Subsidiaries WSE Commodities BondSpot IRK WSE Research 35.00% 64.72% 0.28% Commodity exchange and clearing State Treasury - preffered shares Other shareholders - preffered shares Free float Ownership structure by voting rights % 0.42% % 1 Preferred shares A series held by the State Treasury, investment firms, banks and other shareholders are preferred in voting rights in a way that each A series share constitutes two voting rights at the General Shareholders Meeting. Commodity OTC market KDPW Group Depositary and clearing services Ultimately the holding company for commodity companies Associates Centrum Gieldowe Operator of WSE building Fixed income market Economic education IR and PR services -4-

5 WSE Group business lines -5-

6 Post-trade services Data & other services Data & other services Post-trade services Trading Trading Listing WSE Group business lines - summary Financial market Largest CEE exchange, with domestic market capitalisation of 138 bn (3Q 2013) 888 listed companies and 443 traded bonds and expanding range of derivative instruments (3Q 2013) 45 foreign companies traded on WSE s Main List, and further 9 on NewConnect Trading flow generated by 58 exchange members, both local and remote Cash equities Derivatives Fixed income #1 in CEE, and #10 in Europe, by cash equity turnover #1 in CEE, and #5 in Europe, by stock index future notional turnover Strong growth potential on Catalyst and Treasury BondSpot Commodity market Polish Power Exchange manages markets involving participation of the largest players in the electrical power industry in Poland Electricity Gas Property Rights Market CO2 Spot Consolidation of electricity trading within PolPX Group Volume of trading (PolPX+poee WSE EM; spot+forward) 1Q-3Q 2013: 128,3 TWh Highly perspective Gas Market opened on PolPX in December 2012 The base of the system supporting renewable energy sources and high-efficiency co-generation in Poland Volume of trading 1Q-3Q 2013: 33,5 TWh Readiness to provide the auction platform for the sale of CO2 emission allowances (EUA) in the third trading period of EU ETS ( ) The only primary provider of real-time Polish trading data, supplied via 58 data vendors (3Q 2013) Supports listed companies IR and PR strategies through WSE s internet platform, including WSEInfoSpace and WSEInternational 33.3% stake (alongside the State Treasury and the National Bank of Poland) in KDPW, the Polish operator and supervisor of the depository-settlement system for WSE, BondSpot and OTC trades KDPW_CCP, launched in 2011, performs functions involving clearing of transactions KDPW provides WSE with both influence over the structure of the Polish capital market, and an attractive share in KDPW s earnings stream Warsaw Commodity Clearing House Certificate of Origin Register Clearing and settlement of all transactions executed on PolPX Management of a register for certificates of origin (renewable energy sources, co-generation and biogas) Preparation to Exchange Information Platform launch in fulfilment of the REMIT obligations Providing service of a Trade Operator (TO) on the electricity market -6-

7 Structure of WSE Group revenue Commodity market represents 26.8% of WSE Group revenues and financial market represents 72.2% of WSE Group revenues in the period Q1 Q Structure of revenues, Q1 Q % Clearing Register of certificates of Origin Structure of revenues, 2008 FM Listing 11% FM Informati on Services 17% Other 2% 38.0% 7.2% 5.9% 6.7% 4.6% 2.4% Trading property rights Trading electricity Trading - other, including gas trading Information services Listing 12.1% Trading bonds FM Trading 70% 7.7% 2.1% 4.5% 7.8% Other fees paid by market participants Trading derivatives Trading equities Other income -7-

8 WSE in Europe ,335 1,109 Equity market capitalization, EUR bn, Oct ,393 1,055 Value of equity trading EUR bn, Jan-Oct Source: FESE, WFE for LSE and Moscow; regulated + alternatives markets -8-

9 70. 0% 60. 0% 50. 0% 40. 0% 30. 0% 20. 0% 10. 0% 0.0 % WSE in Central and Eastern Europe Warsaw Stock Exchange Equity Market Capitalization, EUR bn., Oct CEESEG - Vienna CEESEG - Prague CEESEG - Budapest Bucharest Stock Exchange CEESEG - Ljubljana Bratislava Stock Exchange Source: FESE; regulated + alternatives markets; EUR bn % WSE s shares in equities trading in CEE % 60.1% 58.4% 55.2% % 42.5% 38.1% 36.6% 38.9% % 2.3% 2.5% 3.3% 2.7% 0 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Value of equities trading in CEE WSE's share CEESEG's share Others' share 3 including: WSE, CEESEG Group, Bulgarian, Romanian and Slovak exchanges, source: FESE -9-

10 Issuers and new listings Main Market: number of listed companies and new listings Number of listed companies New listings Q1-Q NewConnect: number of listed companies and new listings Number of listed companies New listings Q1-Q

11 A leading listing venue in Europe Leading position in EU by number of IPOs LSE Warsaw NYSE Euronext Frankfurt NASDAQ OMX Swiss Oslo Other One of top exchanges in EU by value of IPOs (EUR m) Source: PwC IPO Watch, PwC IPO Watch Europe Review ,000 20, ,000 10,000 5,000 0 LSE Frankfurt NYSE Euronext Swiss Warsaw Oslo Italy NASDAQ OMX Spain Other Source: PwC IPO Watch, PwC IPO Watch Europe Review

12 Growing number of foreign companies listed on WSE Countries of origin of foreign companies listed on the WSE Ukraine (12) Czech Republic (8) Israel (4) Estonia (2) Hungary (2) Lithuania (4) UK (3) Austria (2) Bulgaria (3) Canada (1) Cyprus (1) France (1) Germany (1) Italy (1) Luxembourg (1) 2013 Foreign listings: INTERNATIONAL PERSONAL FINANCE (UK) IMMOFINANZ AG (AUSTRIA) PHOTON ENERGY N.V. (NETHERLANDS) AVIAAM LEASING (LITHUANIA) PEIXIN INT. GROUP (REPBLIC OF CHINA) Slovakia (2) Slovenia (2) Spain (1) Sweden (1) USA (1) Switzerland (1) Republic of China (1) 54 foreign companies listed (45 on WSE Main List and 9 on NewConnect) Source: WSE, YTD. -12-

13 WSE Listing Requirements stock market General listing requirements on the WSE Main List: Appropriate public information document prepared and approved by relevant supervision authority in EU ( single passport rule ), unless such information document is not required, No bankruptcy or liquidation proceedings underway with respect to the issuer, Transferability not restricted, Value of shares/equity no less than PLN equivalent of EUR 15 million, Financial statements together with auditor s opinions for at least past three consecutive financial years published (IFRS), Appropriate dispersion of shares. General listing requirements on the NewConnect: Preparation of an information document, No bankruptcy or liquidation proceedings underway with respect to the issuer, Transferability not restricted, The issuer s equity is at least PLN 500,000, Nominal value of share - min. 0,10 PLN, Appropriate dispersion of shares, Cooperation with an Authorized Adviser and Market Maker. -13-

14 Non-Treasury bond market Catalyst Growth of Poland s non-treasury debt market Source: Fitch Polska, WSE ,2% ,2% Q Q (value of issue at the end of a period, PLN bn) Municipal bonds Bank bonds Corporate bonds Commercial papers % share of non- Treasury debt listed on Catalyst Catalyst - value of listed issues (PLN bn, non-treasury issuers) 50 0 Catalyst (non-treasury debt) Q1 13 Q2 13 Q3 13 Value of listed issues (PLN bn) Number of listed series Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q Corporate banks (incl. BGK) Co-operative banks Corporates Mortgage bonds Local governments -14-

15 WSE derivatives market Index futures trading volume in Europe (H1 2013; m) Derivatives trading volume (m) , Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Structure of derivatives trading volume 1 0,9% 60% 4% 28% Q m 7% 0,1% WIG20 futures mwig40 futures stock futures currency futures option miniwig20 particiaption units The Warsaw derivatives market is the most significant market of this kind among CEE exchanges. The WSE closed 2012 on the 4th position in Europe in terms of trading volume in index futures. Index futures have been the most popular derivatives for a number of years. WIG index futures were the most traded futures contracts on the WSE. 1 as of 1 May 2012, the volume of trading in fx futures is calculated on the basis of a trading unit equal to 1,000 contracts (previously: 10,000 contracts), therefore derivatives turnover volume since that date arenot fully comparable with data in previous periods -15-

16 WSE- broad and diversified investor base Share in equity trading on Main Market by investor type 36% 39% 32% 33% 34% 37% 39% 37% 34% 35% 34% 37% 29% 29% 35% 26% 35% 30% 18% 27% 19% 18% 18% 14% 35% 32% 33% 41% 31% 33% 43% 36% 47% 47% 48% 49% Source: WSE survey, estimates H Foreign Polish individual Polish institutional Number of exchange members Countries of origin of remote members Remote Local UK: 9 Sweden: 1 Russia: 3 Netherlands: 1 Lithuania: 1 Germany: 1 Czech Rep.:2 France: 2 Austria:1 Hungary: 2 Ukraine: 1 Bulgaria: Q4/12 Q1/13 Q2/13 Q3/13 1 Brokers from Ukraine and Russia formally operate through entities registered in the UK and in Cyprus -16-

17 Financial highlights -17-

18 Financial highlights 1 Strong top line growth 3 Scalable business and margins Revenues PLN m, % PLN m, % EBITDA EBITDA margin¹ 49.7% 52.7% 54.3% % 59.6% 57.1% Q1-Q PLN m, % underpinned by high operating leverage 58.8% 59.4% 58.6% Operating profit 49.8% 54.2% 54.5% 56.9% Q1-3Q 2013 Cost/Income ratio % Q1-Q PLN m, % 13.9% and consistent profitability Net income 18.1% 25.6% 19.7% ROE² Q1 - Q % 14.6% Q1-Q Q1 - Q ¹ EBITDA = Operating profit + share of profit of associates + depreciation and amortization ² ROE - Return on equity" means profit for the last 12 months divided by average equity for the last 12 months Q1 - Q Consolidated, in accordacnce with IFRS Q1 - Q

19 Cost structure in Q Main costs are related to salaries, IT external services, telecommunication costs Structure of costs, Q1 Q Depreciation and amortisation 6% 15% Salaries 19% Rent Fees and charges External service charges 13% Other 7% 41% -19-

20 Here and beyond the strategy -20-

21 Market Capitalization/GDP Potential for growth through structural development of the market 200% 180% 160% 140% 120% 100% 80% 60% Luxembourg Irish SE SIX Swiss NYSE Euronext Nasdaq OMX Nordic IMKB 40% WSE Oslo Vienna Deutsche Athens Budapest Borsa Boerse 20% Italiana Prague Bratislava 0% 0% 20% 40% 60% 80% 100% 120% 140% 160% 180% LSE BME Velocity ratio Potential for further growth through: Continued equitization primarily through increasing private sector capital raisings and further privatization of state-owned companies New financial instruments and investment strategies as a result of implementation of UTP system: Continued development of the derivatives market Attraction of new market participants, including algo-traders Expected positive effects of changes on the Polish capital market, such as: Regulatory driven infrustructure changes (CCP, omnibus accounts, short selling, etc.) ¹ Source: Eurostat for GDP values, FESE for market capitalization and trading velocity values (as of the end of 2012) Broad and diversified investor base ensures that growth potential can be fulfilled

22 WSE: strategic initatives Enhancing WSE s attractiveness to a widening range of market participants Attract issuers through development of the trading venues and outreach to foreign issuers Capture increased investor trading flows driven by structural changes in the Polish market Enhance the value proposition to exchange members in partnership with KDPW (e.g. CCP introduction) Consolidation of trading infrastructure and transaction settlement on the domestic market Investing in new state-of-the-art technology Implementation of UTP acquired from NYSE Euronext, reducing latency and enhancing liquidity Leverage technology to attract new classes of investors (e.g. algo traders) Diversifying and expanding WSE s business through development of its product offering Expand range of listed products with additional derivatives (facilitated by introduction of UTP) and ETFs Continue to attract SMEs to the market via the NewConnect platform Grow the historically under-developed Polish bond market through Catalyst Internationalizing WSE s business and solidifying its position as a regional financial hub Continue to attract foreign market participants to the WSE platform Building regional pool of liquidity Reaching beyond the securities market to create synergies between securities and commodities markets Development of power exchange, facilitating trading in energy and related products Consistently developing the product offer: gas trading, further certificates of origin WSE clear strategic plan is based on the delivery of tangible objectives to further development of WSE and strengthen Poland s capital markets infrastructure -22-

23 Role of information on a stock exchange -23-

24 Role of information on a stock exchange Exchange functions: Allocation function transfer of funds from the investors to companies, and among investors Valuating function market valuation of companies Control function - assessment of companies performance Market should be: Fair Reliable Transparent Conditions: Efficient and safe system to facilitate trading Availability of information Liquidity Information should be timely, certain, useful, and material Reporting in accordance with IFRS on regulated market common standards helps comparability (growing number of issuers IFRS promotion and popularization) Best Annual Report contest organized by IRiP (Institute of Accounting and Taxes) - one of the criterions: excel in IFRS application Reporting frequency - transparency directive XBRL (extensible Business Reporting Language) - enables market participants to retrieve and analyze firms financial information more easily and at a lower cost -24-

25 Contact Piotr Kajczuk Director Economic and Financial Bureau Warsaw Stock Exchange ul. Książęca 4, Warsaw, Poland Disclaimer This presentation has been prepared by Giełda Papierów Wartościowych w Warszawie S.A. ( Warsaw Stock Exchange, WSE or Company ) for its shareholders, analysts, and other contractors. This presentation has been prepared solely for information and is not an offer to buy or sell or a solicitation of an offer to buy or sell any securities or instruments. This presentation is not an investment recommendation or an offer to provide any services. All efforts have been made to present the data in this presentation; however, some data are derived from external sources and have not been independently verified. No warranty or representation can be given that information in this presentation is exhaustive or true. The WSE has no liability for any decisions made on the basis of any information or opinion in this presentation. The WSE informs that in order to obtain information about the Company reference should be made to periodic and current reports published in compliance with applicable provisions of Polish legislation. -25-