Warsaw Stock Exchange Group Investor Presentation. March 2017

Transcription

1 Warsaw Stock Exchange Group Investor Presentation March 207

2 Disclaimer This presentation has been prepared by Giełda Papierów Wartościowych w Warszawie S.A. ( Warsaw Stock Exchange, Exchange, GPW or Company ). The information, opinions and statements contained in this presentation are not official projections, policies or opinions of the Exchange. The data presented herein are valid as at the date of the document. All efforts have been made to compile and 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. GPW has no liability for any decisions made on the basis of any information or opinion in this presentation. The official source of information about the Company are periodic and current reports published by the Exchange in compliance with applicable provisions of Polish legislation. This presentation 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.

3 I. Summary of recent GPW Group activities 3 II. Market highlights and opportunities III. GPW Group financial results in Q IV. Appendices 39

4 Record-high Financial Results in 206 Net profit highest since 20 (second highest in GPW Group s history) PLN 3. mn Record-high EBITDA PLN 83.7 mn Record-low C/I ratio 48.3% Record-high dividend yield 6.7% Dividend yield based on GPW share closing price as at the dividend record date 4

5 Our Successes in 206 DEVELOPMENT Development of liquidity support programmes Take-over of the function of WIBID and WIBOR fixing organiser Introduction of a maker-taker price list Colocation service Sale of non-display data Six new single-stock futures and GBP/PLN futures Launch of ABN Amro Clearing TRANSPARENCY New segmentation of NewConnect New calendar and methodology of the main exchange indices Three new sector indices DIALOGUE Ambassador programme for the top 20 banks in Poland Intensified educational initiatives Polish-Belarussian IPO Centre Tenth edition of the Respect Index TECHNOLOGY New systems: X-Stream Clearing NASDAQ in IRGiT and NASDAQ Trading in TGE PFSA s approval for TGE as operator of CO 2 auction platform OTC trade reporting service: TGE RRM 5

6 Growth Momentum Maintained in Q4 6 Sales revenue Net profit PLN mn -2.5% % 30.9 PLN mn +9.% % Net profit in Q4 6: PLN 33.0 mn (up by 9.% yoy) Strict cost discipline C/I at 46.2% in Q4 6 and 48.3% in all of 206 Atypical events Q4 5 Q4 6 2M 5 2M 6 Q4 5 Q4 6 2M 5 2M 6 TGE s VAT correction and resulting interest cost EBITDA Operating expenses Donation to the Polish National Foundation PLN mn 4.9% % PLN mn 54.8% 46.2% -7.9% 53.2% 48.3% C/I -3.9% Net profit margin Q % 42.3% EBITDA margin 58.% 59.% Q4 5 Q4 6 2M 5 2M 6 Q4 5 Q4 6 2M 5 2M 6 6 5

7 Investors Came Back to the Stock Market in Q4 6 Highest velocity since Q2 3: 4.% Value of trading in equities, EOB (PLN mn) Velocity (%) The best quarter since Q2 3 in terms of turnover in stocks: increase to PLN 55.3 bn in Q4 6 (+3.3% qoq and +2.3% yoy): Average daily value of trade up by 8.7% qoq and 2.5% yoy WIG20 gained 2.89% in Q4 6 rising energy and banking stocks Share of new proprietary traders 2 in turnover in stocks at 8.9% in Q4 6 and 0.2% in all of 206 Q 5 Q2 5 Q3 5 Q4 5 Q 6 Q2 6 Q3 6 Q4 6 Average daily value of EOB trade Growth of the main indices PLN mn +2.5% WIG20 mwig40 swig % Q 5 Q2 5 Q3 5 Q4 5 Q 6 Q2 6 Q3 6 Q4 6 Change in the value of turnover in stocks participating in WIG20, mwig40 and swig80; Q 5 = 00% 2 Participants of liquidity support programmes (HVP and HVF) and a new market maker 7

8 Derivatives Trade Clearly Picked Up Liquidity back to levels reported in % % Volume of trade in derivatives increased in Q4 including all instruments: Volume of trade in WIG20 futures:.2 mn contracts (+2.7% qoq and +3.9% yoy) Record-high volume of trade in single-stock futures: 479 thou. contracts (+2.8 qoq and +63.9% yoy) Q 5 Q2 5 Q3 5 Q4 5 Q 6 Volume of derivatives trade Q2 6 Q3 6 Q4 6 Volume of trade in interest rate futures: 4.8 thou. contracts (v. 2 thou. contracts in Q4 5 and 37 thou. contracts in Q3 5) Volume of trade in FX futures: 365 thou. contracts (+39.9% qoq, +8.0% yoy) WIG WIG20 New GBP/PLN futures introduced in Q4 34.4% 35.0% Share of new investors in futures trade at 9.2% in Q4 6 and 7.0% in all of % 22.7% 9.2% 22.0% 28.5% 28.0% 6.5% 6.8% 6.3% 8.7% 4.2% 20.0% 20.% 9.3% 5.4% 3.9% 4.3% 2.6% 3.6% 5.4%

9 Nasdaq OMX Londyn GPW BME Euronext Borsa Italiana Deutsche Boerse Oslo Bors Szwajcaria Istambuł Bukareszt Luxemburg Sofia Praga Budapeszt Vienna Nasdaq OMX Londyn Deutsche Boerse Euronext Borsa Italiana BME Szwajcaria Praga Oslo Bors GPW Istambuł Bukareszt Luxemburg Sofia Budapeszt GPW: An Important Source of Capital in Europe GPW in European TOP3 by number of IPOs in GPW in European TOP0 by value of IPOs in EUR mn GPW was the third European market by the number of IPOs in 206 (28 IPOs v. 33 in 205) and tenth by the value of IPOs. 9 new non-treasury issued on Catalyst worth PLN 4.3 bn in 206. Major IPOs in 206: Celon Pharma (PLN 245 mn) X-trade Brokers DM S.A (PLN 89 mn) Stelmet (PLN 82 mn) 7 transfers from NewConnect to the Main Market in 206 PwC IPO Watch 206 r. 9

10 Record-high Results on the Gas Market Volume of spot and forward transactions in electricity and gas Energy (TWh) Gas (TWh) Q 5 Q2 5 Q3 5 Q4 5 Q 6 Q2 6 Q3 6 Q4 6 Q 5Q2 5Q3 5Q4 5Q 6Q2 6Q3 6Q4 6 Volume of trade in property rights Green energy (TWh) Energy efficiency (toe) 56.5 Cogeneration (TWh) Energy market: spot transactions up by 9.2% qoq in Q4 6, forward transactions down moderately (-0.7% qoq) as a result of phasing out of mandatory sales and shift of trade in electricity to the OTC market annual volume of spot transactions in electricity was historically high at 27.6 TWh (up by 9.9 % yoy) Volume of trade in natural gas in 206: 4.5 TWh highest annual result in TGE history. record-high volume of spot transactions in Q4 6: 9.4 TWh (up by 65.3 yoy and 224.3% qoq) Register of Certificates of Origin/Property Rights Market: as of October 206, new Energy Efficiency Act introduced white certificate solutions similar to other certificates of origin (no more tenders, phasing out of the substitution fee) record-high volume of trade in property rights in energy efficiency (56.5 toe in Q4 6 and 34.8 toe in 206) 2970 new members of TGE Register of Certificates of Origin (43 new members in 206) CO 2 trading platform: PFSA s approval for TGE to operate a CO 2 allowances auction platform Q 5 Q2 5 Q3 5 Q4 5 Q 6 Q2 6 Q3 6 Q4 6 0

11 I. Summary of recent GPW Group activities 3 II. Market highlights and opportunities III. GPW Group financial results in Q IV. Appendices 39

12 Our market highlights and opportunities Solid financial performance and attractive dividend 2 3 Diversified revenue structure The largest CEE economy and growth leader in EU Large and still growing client base Potential for further growth in free float and liquidity in financial segment Vibrant commodity segment 2

13 Sound financial performance Solid top-line growth and high operating leverage Total revenue, PLN mn EBITDA, PLN mn EBITDA margin, % CAGR % % % % % % % % % % underpinned by increasing diversification and consistent profitability other market data listing.9% 6.5%.% Commodity market: 0% 40.2% 0.6% 8.0% 2.6% 9.6% other COR clearing trading/cm Net profit, PLN mn 25.6% 8.% 3.9% 0.2% ROE, % 9.6% 8.9% 6.% 7.3% 8.0% trading/fm 70.4% Financial market: 3.2 % 7.7% % 59.2% 38.3% Certificate of Origin Register

14 Attractive dividend policy GPW s attractive dividend continues Dividend per share (PLN) Dividend payout ratio 2 Dividend yield % 89.9% 80.% 45.2% 3.0% 44.5% 6.% 4.9% 6.7% %.4 2.0% % DIVIDEND POLICY: to pay out over 60% of consolidated net profit of GPW Group for the financial year attributable to GPW shareholders, adjusted for the share of profit of associates By financial year for which dividend was paid 2 Based on the consolidated profit attributable to the shareholders of the parent entity 3 Based on the share price as at the dividend record date 4

15 2 Diversified revenue structure Listing Equities Bonds ETFs Warrants Structured products Membership Access and use of GPW trading system Membership and participation on the commodity markets Equities & other Equities Structured products Warrants ETFs Investment certificates Trading Derivatives Bonds Commodities Futures: - index - single stock - fx - interest rate Options - index Corporate bonds Municipal bonds Bank bonds T-bills T-bonds Electricity spot and forward contracts Natural gas spot and forward contracts Property rights in certificates of origin CO 2 emission allowances Post-trading including COR and RGO 2 Settlement Custody Clearing COR RGO 2 3 Market data Real-time data Non-display data Delayed data Historical data Indices Financial market Commodity market Share in total revenue 4, LTM 5 7.7% 5.2% FM: 2.2% CM: 3.0% 28.8% 3.9% 3.3% 9.6% % 3.2% Certificate of Origin Register 2 Register of Guarantees of Origin 3 Associate company (33.33%); KDPW Group offers post-trading services on the financial market 4 Does not include other revenues, which constitute 0.6% of GPW Group revenues 5 Last twelve months ending on 3 December Does not include the KDPW revenues (associate company; equity method is applied) 5

16 3 Largest economy in the CEE region Largest economy in CEE region accumulated GDP growth 205 GDP (EUR bn) Population (m) Poland Czech Rep % Romania % +0.2% Hungary % -6.7% +4.% Slovakia %.2% -.3% -0,7% +5.6% +24.2% Slovenia % +.% +3.0% +3.5% +4.4% -0.% +8.5% -3.8% Bulgaria % -8.9% +6.% -4.4% The EU s 6th largest population of ca million, equal to 7.4% of EU s Member States population in 206 The EU s 8th largest GDP with 2.8% growth, compared to EU s.9% in 206; the European Commission expects Poland s GDP growth of 3.2% in 207 while the euro area - of.6% Source: Ministry of Finance, Eurostat, EBOR Eurostat, European Commission Winter 206 Economic Forecast 6

17 Germany United Kingdom Ukraine Russia Croatia Lithuania Hungary Latvia Romania Czech Republic Slovenia Bulgaria Slovakia Estonia Poland France Italy Spain Netherlands Sweden Poland Belgium Austria Denmark Finland Ireland Greece Portugal Czech Republic Romania Hungary Slovakia Luxembourg Croatia 3 and a growth leader in the EU Poland is the 8th largest economy in the EU growing faster then other CEE economies % 35% 5% 57% 66% 70% 74% 78% 9% 229% 238% 256% % Note: GDP at market prices as of 204, EURbn Source: Eurostat Economic forecast at glance Note: Cumulative GDP growth Source: Ministry of Finance; World Bank; Eurostat e 208e Real GDP (%yoy) 3.6% 2,8% 3.2% 3.2% Nominal GDP (EURbn) IMF Forecast GDP per capita (PPP EUR) IMF Forecast 24,34 25,467 26,844 28,380 Household consumption (real, %yoy) 3.0% 3.7% 3.6% 3.4% Consumer prices (avg, %yoy) -0.9% 0.4%.8% 2.2% Unemployment rate (avg%) 9.8% 9.5% 9.4% - Poland Debt/GDP 5.5% vs Europe s average 63.5% Balanced current account with deficit of.% GDP in 206 Export of goods (%yoy) 6.5% 6.6% 5.4% 5.0% Import of goods (%yoy) 6.0% 7.3% 6.5% 6.2% Source: Ministry of Finance, Eurostat, EBOR, Bloomberg market consensus forecasts as of 4/03/6; IMF forecast converted into EUR using EUR/USD as of Eurostat, European Commission Winter 206 Economic Forecast 7

18 4 Potential for retail investment growth Poles savings (%) Household assets, 2003 Q 206 (PLN bn) 2 Debt Shares Investment Funds 3.35% 9.43%.8% Insurance 9.8% % Deposits 62% 3.6% 59% Cash Deposits and cash 3 Other Q3 206 Most of Poles savings are located in bank deposits: in view of record-low interest rates, a growth potential for direct and indirect investments on the GPW exists Stocks represent only 3.4% of Poles savings; however, individual investors are very active on the GPW (turnover share at 3% in 206; individual investor portfolio turnover ratio at 59% in 206) GPW initiatives: education, joint initiatives with market participants, promotion of direct and indirect investment on the Exchange, including pension savings Net of pension entitlements (pension funds and Social Insurance Institution sub-accounts), non-listed shares, other equity interest 2 Short and long-term debt securities, short and long-term loans 3 Listed shares, insurance, investment funds, short and long-term debt securities, short and long-term loans Source: National Bank of Poland (NBP); data as of the end of Q 206 8

19 Strong domestic institutional investor base Open Pension Funds Investment funds OPF s share in GPW turnover Funds assets, PLN bn OPF s share in GPW free float Shares of domestic companies in portfolio (%) Largest institutional investor pool in the CEE region Open Pension Fund net assets value amounts to PLN 53.4 bn as of end of 206 Investment funds enjoy strong confidence of retail investors who increasingly seek more sophisticated savings and investment products As a long-term investor, pension funds freeze a large part of the free float on GPW (average turnover ratio of pension fund equity portfolios at 7,% in 206) Part of the free float in pension fund portfolios could be released through securities lending -> necessary regulatory change Source: PFSA, NBP, GPW 9

20 4 Strong and growing foreign investor base Focused efforts, in co-operation with issuers, to spark interest in GPW-listed companies among foreign investors Close co-operation with investment banks Value of GPW listed shares held by foreign investors accounted for 4.2% of the market capitalization of domestic shares listed on the GPW GPW investor origins (free float by geographic segment) 3 Portfolio turnover ratio of selected investors on the GPW 2 Domestic Investors Year Pension funds Investment funds Individual investors Foreign investors % 7% 62% 42% % 92% 34% 50% 200 2% 73% 89% 53% 20 9% 80% 00% 57% 202 3% 69% 89% 44% 203 4% 75% 83% 48% 204 9% 60% 62% 4% 205 9% 59% 59% 43% 206 7% 60% 59% 44% Value of shares held: ) Data as of the end of GPW estimates; portfolio turnover ratio: value of the electronic order book (buy and sell trades)/2/average portfolio value 3 Free float excluding State Treasury and strategic investors 20 Source: PFSA, NBP, GPW, Thomson Reuters

21 700k 650k 600k 550k 500k 450k 400k 350k 300k 250k 200k 50k 00k 50k 0k Addition of the commodity market and nondisplay products to information services The GPW Group is the only primary provider of realtime Polish trading data Growing number of non-display data agreements (43 in 206) Increase in the number of subscribers for data from GPW, TGE and Bondspot to 22.4 thou. in 206 Record-high number of vendors who buy TGE data in 206, a contract signed with the 6th client, the first to specialise in distribution of commodity market data (Montel of Norway) Strong growth potential via: commodity market data non-display products index licensing customised indices for financial institutions Strong reach via number of distributors and subscribers Number of sybscribers (LHS) Number of distributors (RHS) Customers non-display Information products represent an attractive opportunity for GPW to enhance revenues by leveraging its central role in the Polish capital market infrastructure 2

22 Market Cap to GDP "Equitization" (205) Jan-5 Mar-5 Jun-5 Sep-5 Dec-5 Mar-6 Jun-6 Sep-6 Dec-6 5 Equity market: potential for further free float and liquidity growth Turnover velocity and volatility cyclically depressed Material upside potential of free float 50 Velocity ratio Average velocity ratio WIG20 volatility 45.7 Domestic market capitalisation Growth of free float market cap Free float 49% Government stakes 7% 40% 39% 44% 43% 46% 47% 48% 48% 49% Other static shareholders 34% European markets equitisation and trading velocity % Developed CH 28% 64% 32% 6% 8% 4% 2% HR LT MT BG CY LV SV EE RO Frontier Emerging RU BE IL IE CZ PL AT HU GB DK SE NL FI FR DEES NO PT ITTR Advanced / Emerging Expected further growth of free float and turnover velocity Introduction of UTP facilitated lower-latency trading and hence, will boost liquidity from more active trading strategies % % 2% 4% 8% 6% 32% 64% 28% 256% Trading Velocity (205) Source: Turnover, Mkt Cap - Thomson Reuters, GDP for Eurostat (except of TR, UA, IL, RU - IMF). Companies' turnover and mkt cap country allocation according to primary listing venue country. 22

23 5 Europe s No. 4 market by the number of listed companies Issuer activity on GPW markets Strong flow of new companies to the market Equity market Main Market NewConnect Main Market 434 domestic companies 53 foreign issuers Market cap: PLN 557 bn PLN 559 bn 2.0% Equity market for SME NewConnect 398 domestic companies 8 foreign issuers Market cap: PLN 9.8 bn Debt market Catalyst 76 issuers (incl. State) 525 listed non-treasury issues Value of non- Treasury issues: PLN 8.8 bn Acquisition of issuers Unlocking NewConnect potential On the radar: family companies, PE funds, CEE companies, state-owned companies and their subsidiaries 400 of 500 Polish companies with the highest revenue are not listed -> more than 00 may potentially be interested in listing on the Exchange NewConnect as a springboard for the Main Market - since 2009, 54 companies have transferred from NC to the Main Market Strengthening market credibility and quality through stricter oversight As of the end of Q2 206 Source: GPW 23

24 Irland Netherlands Denmark GB USA Sweden France Norway Spain Portugal Austria Finland Italy Belgium Germany Greece Hungary Slovakia Poland Slovenia 5 Opportunities for further debt market development Number of non-treasury issues on Catalyst Total debt securities by residence of issuer as % of GDP % Simplification of the corporate debt market architecture Active role of the Exchange in attracting new issuers Single banking licence: an opportunity to grow bank activity as debt market participants Source: Fitch Polska (as at December 205); other markets: Bank of International Settlements (as at June 205, financial and non-financial institutions); GDP: Eurostat (204); USA: World Bank (204) 24

25 6 High liquidity of a large market makes TGE a key partner of EU s major exchanges Liquidity of the exchange electricity market in 205 Liquidity of the exchange gas market in % 374.8% 302.4% 55.6% 38.3% 95.% 75.2% 64.% 4.0% 30.0% 6.8% 55.0% 39.6% 35.4% 3.7% 6.3% Germany and Austria Nordic market Poland France Hungary Czech Republic Netherlands Belgium Liquidity of the exchange spot market in 204 (spot market/consumption) United Kingdom Netherlands Poland Denmark France Germany Austria Czech Republic Turnover on the exchange (spot + forward) to consumption. Consumption data for 204. Due to modifications of EEX s presentation methodology (OTC cleared by the exchange included in the volume), the data are not directly comparable with 204. Data for the Scandinavian market include Norway, Sweden, Denmark, Estonia and Latvia. Data for the German-Austrian market based on EEX/EPEX and Nasdaq OMX volumes. In view of the high volume of Hungarian contracts on PXE, these are shown under the Hungarian market. Netherlands and Belgium turnover based on APX data for those markets 2 Turnover on the exchange (spot + forward) to consumption. Consumption data for 204. Data for the Netherlands market based on ICE and PEGAS. Data for other markets based on PEGAS (France, Germany), ICE (UK), TGE (Poland), CEGH (Austria), Gas Point Nordic (Denmark), PXE and OTE (Czech Republic). 205 data for Hungary not available Source: TGE, Enerdata, Eurostat, Hungarian Statistical Office, Energienet.dk, Eurogas 25

26 6 Commodity market perspectives Commodity market growth drivers Gas market obligation to sell a proportion of gas on the exchange: 40% in 204, 55% in 205 and beyond Development of the cash-settled commodity futures contracts segment New Energy Efficiency Act introduced white certificate solutions similar to other certificates of origin (no more tenders, phasing out of the substitution fee) PFSA s approval for TGE as operator of CO 2 auction platform Development of OTC trade reporting service: TGE RRM Tapping the large potential of Poland s agricultural and food industries TGE electricity trade volumes Dynamic development of natural gas trading TWh

27 I. Summary of recent GPW Group activities 3 II. Market highlights and opportunities III. GPW Group financial results in Q IV. Appendices 39

28 Another Quarter of Solid Financial Results Net profit and net profit margin Sales revenue EBITDA and EBITDA margin PLN mn 53.7% PLN mn PLN mn 44.5% 40.3% 33.0% 54.0% 3.5% -2.5% 50.7% 57.9% 70.6% 58.% % % Q4 5 Q 6 Q2 6 Q3 6 Q4 6 Q4 5 Q 6 Q2 6 Q3 6 Q4 6 Q4 5 Q 6 Q2 6 Q3 6 Q4 6 Strong uptrend in revenue, especially on the financial market Further cost optimisation and impact of one-off events : Increase of financial costs due to adjustment of VAT in TGE (3,6 mn PLN) Donation of PLN 3 mn to the Polish National Foundation Solid net profit of PLN 33.0 mn and high EBITDA of PLN 47.5 mn 28

29 Strong Increase of Trading Revenue Q4 6: 40.7% Trading revenue financial market PLN mn Average turnover in shares per session in Q4 6 at PLN mn vs. PLN 75.9 mn in Q3 6 and PLN mn in Q % % New fee reductions for Exchange Members: Fixed fee on an order on the stock market reduced from PLN 0.20 to PLN 0.5 as of November 206 Share of low-margin clients in turnover: 0.2% in 206 and 8.9% in Q Equities Average transaction fee on the stock market in Q4 6: 2.0 bps. Investor activity on GPW markets Q Q Q Q Q4 6 Derivatives Other Q4 5 Q 6 Q2 6 Q3 6 Q Shares value of trade (EOB, PLN bn) % yoy -6.9% yoy +3.3% qoq Futures and options volume of trade (mn contracts) % yoy -2.8% yoy +6.9% qoq Treasury bonds TBSP, cash transactions (PLN bn) % yoy -2.4% yoy Debt instruments, other cash market instruments, other fees paid by market participants 29

30 Stable Listing Revenue Listing revenue PLN mn Q4 6: 7.5% Total value of IPOs and SPOs in Q4 6 at PLN. bn +.6% Two out of the three biggest IPOs in 206 took place in Q4: Celon Pharma (PLN 245 mn) and Stelmet (PLN 82 mn) % Capitalisation of domestic companies at PLN 557. bn in Q4 6 vs bn in Q Listing Issuer activity Q4 5 Q 6 Q2 6 Q3 6 Q4 6 Introduction Q4 5 Q 6 Q2 6 Q3 6 Q Number of IPOs on the Main Market Capitalisation of domestic companies (PLN bn) -60.0% yoy -36.7% yoy +50.0% qoq % yoy +7.8% yoy +8.0% qoq Value of IPOs (PLN mn) % yoy -44.9% yoy 30

31 Record-high Revenue from Information Services Revenue from information services PLN mn Q4 6: 2.7% New policy of selling non display data as the main driver of growth in revenue in 206; 43 clients as at the end of Q4 6 vs. 37 clients in Q % % Record-high revenue from sales of processed data and indicators Increase in the number of subscribers for data from GPW, TGE and Bondspot to 22.4 thou. in Q4 6 (highest since Q2 5) Monthly fee for top bid/ask for individual investors reduced by 25% in November 206. Data vendors, subscribers and non-display clients Q4 5 Q 6 Q2 6 Q3 6 Q4 6 Q4 5 Q 6 Q2 6 Q3 6 Q Number of subscribers (tys.) % qoq +.6% yoy Number of data vendors Nondisplay

32 Stable Trading Revenue on Commodity Market Energy Trading revenue commodity market PLN mn Gas Property Rights Other Q Q 6-6.5% Q Q3 6 Q4 6: 20.2% Q % Increase in revenue from trade in gas and electricity driven by volumes: Volume of trade in gas: +09. qoq and +83.3% yoy Volume of trade in electricity: +3.4 qoq and -48.0% yoy Increase of revenue from trade in property rights driven by rising turnover in rights to energy efficiency certificates (+282% yoy and 00% qoq) Increase of revenue from other fees due to continued development of the RRM trade reporting service and an increase in the number of members of the market in gas and the Register of Certificates of Origin Investor activity on the commodity market Q4 5 Q 6 Q2 6 Q3 6 Q Electricity volume of trade (TWh) Natural gas volume of trade (TWh) -48.0% yoy -3.2% yoy +3.4% qoq Property rights volume of trade (TWh) +83.3% yoy +7.% yoy 09.0% qoq % yoy -4.8% yoy +7.6% qoq 32

33 Increase of Revenue from Clearing on the Commodity Market Revenue from clearing Q4 6: 3.6% PLN mn % % Increase of revenue from clearing mainly driven by a dynamic increase of turnover on the gas market and an increase of turnover in property rights in energy efficiency certificates No cancellation of certificates of origin and lower volumes of certificates issued in Q4 6 (8.7 TWh in Q4 6) Q4 5 Q 6 Q2 6 Q3 6 Q4 6 Q4 6: 4.5% Revenue from operation of the Register Activity of participants of the Register of Certificates of Origin PLN mn % % Q4 5 Q 6 Q2 6 Q3 6 Q Volume of issued certificates of origin (TWh) Volume of cancelled certificates of origin (TWh) -7.4% yoy -6.9% yoy -29.8% qoq % yoy +92.3% yoy -00% qoq Q4 5 Q 6 Q2 6 Q3 6 Q4 6 33

34 Consistent Optimisation of Operating Expenses Operating expenses: +33.5% qoq and -7.9% yoy PLN mn PFSA fees Depreciation & amortisation Employee costs External services Other Q Q Q2 6 Change in operating expenses Q Q4 6 Increase of financial costs due to VAT adjustment and resulting interest in TGE Donation to the Polish National Foundation: PLN 3 mn No fee paid by the GPW Group for capital market supervision (PFSA) due to modified accounting policies (all fees recognised in Q) Increase of external service charges due to alignment of the trading system with MiFID II and increase of the cost of promotion and education C/I 2 in Q4 6: 46.2%, in 2m 206: 48.3% vs 53.2% in 2m 205 PLN mn 74,4 -,0-6,9-0,3-3,6 -,0 -,3 50,2 205 Depreciation & amortisation Emplyee cost Rent Other includes rent, fees and charges (net of the PFSA fees), and other operating expenses Taxes External Other expenses services C/I based on reported data, before netting

35 Profit of Associates Share of profit of associates PLN mn Q Q Q Change in share of profits of associates Q Q4 6 Aquis KDPW CG Profit of the KDPW Group: profit of KDPW Group decreased in Q4 6 due to an increase of operating expenses by 2.% qoq Aquis Exchange: share in the European equity trade market stable at more than.0% in Q4 6 additional capital raised in Q4 6 (GPW s interest measured by the number of shares down to 22.99% and share in voting rights down to 20.3%) Turnover on Aquis Exchange PLN mn Share in equities trading in Europe (%) Aquis Exchange EOB trading (EUR bn Source: FESE 35

36 GPW Group s Consolidated Balance Sheet PLN mn Non-current assets, including among others Property, plant and equipment Intangible assets Share of profit of associates Current assets, including among others Trade and other receivables Available-for-sale financial assets Cash and cash equivalents Total assets,073.,60.7,8.6,09.6,57.8 Increase of trade receivables and other receivables due to recognition of receivables from TGE counterparties following modifications of the VAT accounting policy: PLN 66.3 mn Increase of other current liabilities due to TGE s VAT liabilities of PLN 77.6 mn As of: PLN mn Equity Non-current liabilities Liability under the bond issue Current liabilities, including among others Trade payables Income tax payable Dividend and other liabilities Employee benefits payable Provisions Total equity and liabilities,073.,60.7,8.6,09.6,

37 GPW Group s Consolidated Profit & Loss Account PLN mn Q4'5 Q'6 Q2'6 Q3'6 Q4' Revenue Financial market Trading Listing Information services Commodity market Trading Register of Certificates of Origin Clearing Other operating income Operating expenses Other income Other expenses Operating profit Financial income Financial expenses Share of profit of associates Profit before income tax Income tax Net profit EBITDA Increase of other operating expenses by PLN 3.0 mn due to a donation to the Polish National Foundation Increase of financial expenses by PLN 3.6 mn in 206 due to interest accrued on TGE s VAT overdue liability Increase of external service charges by PLN.6 mn due to alignment of the IT systems with MiFID II and by PLN.5 mn of the cost of promotions Financial income down in Q4 6 due to positive revaluation of Aquis in Q2 6 and Q3 6 37

38 GPW Group s Consolidated Cash Flows PLN mn Cash flows from operating activities, including among others: Cash flows from operating activities Net profit of the period Adjustments: Income tax Depreciation of property, plant and equipment Financial income on restatement of share of profit of associates Interest income on deposits Interest and premium on bond issue Share of profit of associates Change in current assets and liabilities Decrease of trade and other recievables Increase / decrease of other liabilities Income tax expense Cash flows from investing activities, including among others: Purchase of property, plant and equipment Purchase of intangible assets Sale of available-for-sale financial assets Purchase of associates Interest received Cash flows from financing activities, including among others: Dividend paid and company social fund Interest paid Proceeds from bond issue Buy-back of bonds issued Increase/decrease of net cash and cash equivalents Increase of cash flows from operating activities due to a higher net profit and a change of assets due to a reduction of the TGE Group s current VAT payments and an increase of liabilities following reclassification of GPW bonds to current liabilities in view of approaching redemption Capital expenditures for investments in GPW s trading system relating to MiFID II and the TGE Group s trading and clearing systems Cash and cash equivalents - opening balance Cash and cash equivalents - closing balance

39 I. Summary of recent GPW Group activities 3 II. Market highlights and opportunities III. GPW Group financial results in Q IV. Appendices 39

40 GPW Group s Revenue Structure 30.9 mln zł 0.6% Other income 24.9 mln zł Clearing 3.3% Register of Certificates of origin Commodity Market: 40.2% 40.% 9.9% 7.5% 25.6% 7.4% 8.2% Trading - other Trading - property rights Trading - gas Trading - energy 3.2% Information services Listing GPW Group s revenue (PLN mn) Financial Market: 59.2% 7.7% 2.3% 3.2% 3.9% Trading - other cash instruments Trading - fixed income instruments Trading - derivatives CAGR: 7.7% % Trading - cash instruments

41 Financial Market: Trade in Equities Value of trade in equities and number of transactions Average number of transactionsper session (thou.) 28.8% Revenue drivers: EOB (PLN bn) Value of trade in equities Structure of orders (small, large, mid-sized) Velocity ratio and volatility - equity market WIG WIG % 35.0% 24.4% 22.7% 28.5% 28.0% 9.2% 22.0% 6.5% 6.8% 4.2% 6.3% 8.7% 20.0% 20.% 5.4% 9.3% 3.9% 4.3% 2.6% 3.6% 5.4% Share in GPW Group s revenue in 206 4

42 Financial Market: Trade in Derivatives Volume of trade in derivatives 3.9% 2 NOI, thou Volume of trade, mn contracts Revenue drivers: Volume of trade in futures Number of open interest Volatility Volume of trade in futures v. volatility PLN bn 522% 480% 404% 439% DLR Trade - WIG20 stocks Trade - WIG20 futures % 39% 6% 32% 2% 0% Velocity ratio (value of trade in WIG20 futures to value of trade in WIG20 stocks) 2 Share in GPW Group s revenue in

43 Financial Market: Other Instruments and Fees Paid by Participants Value of trade on Treasury BondSpot Poland, PLN bn 3.3% Cash Conditional, , % 2 Revenue drivers: Value of trade in Treasury bonds Number of exchange members Number of exchange members Local Remote Share in GPW Group s revenue in 206, trade in debt instruments 2 Share in GPW Group s revenue in 206, fees paid by market participants 43

44 Financial Market: Listing Capitalisation of domestic companies 7.7% Revenue drivers: Capitalisation at YE Value of new issue shares and bonds Number of issuers Capitalisation/GDP (%) Capitalisation of domestic companies (PLN bn) 4.6% 20.0% % % 27.9% % IPO/SPO value and number of companies 36.5% % 28.9% IPO, PLN bn Number of companies, Main Market and NewConnect SPO, PLN bn % Share in GPW Group s revenue in Source: Estimates -NBP

45 Financial Market: Information Services Number of data vendors Local 48 Foreign % Revenue drivers: Number of data vendors Number of subscribers Number of subscribers (thou.) Share in GPW Group s revenue in

46 Commodity Market: Trade in Electricity and Gas Volume of trade in electricity (TWh) Spot 6.3% 2 Revenue drivers: Volume of trade in electricity Volume of trade in gas Forward Share of spot and forward trade Volume of trade in gas (TWh) Spot Forward Data for include trade on the GPW Energy Market poee 2 Share in GPW Group s revenue in

47 Commodity Market: Trade in Property Rights Trade in property rights (TWh) 0.3% Revenue drivers: Volume of trade in property rights Share of certificate categories in trade Green certificates Cogeneration certificates Number of participants of the Register of Certificates of Origin Number of register participants Share in GPW Group s revenue in

48 Commodity Market: Register of Certificates of Origin Volume of issued property rights (TWh) 8.0% RES certificates Cogeneration certificates Revenue drivers: 2 Volume of issued property rights Volume of cancelled property rights Volume of cancelled property rights (TWh) RES certificates Cogeneration certificates Share in GPW Group s revenue in

49 IR events 27 April 207 Publication of GPW Group s Consolidated Interim Report for Q July 207 Publication of GPW Group s Consolidated Interim Report for H October 207 Publication of GPW Group s Consolidated Interim Report for Q3 207 Disclaimer This presentation has been prepared by Giełda Papierów Wartościowych w Warszawie S.A. ( Warsaw Stock Exchange, GPW 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. GPW has no liability for any decisions made on the basis of any information or opinion in this presentation. GPW 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. Contact: GPW Investor Relations Phone ir@gpw.pl 49