WSE in H1 211 Investor Presentation 3 August 211
Business highlights International issuers 19 dual-listed foreign issuers 22 single-listed foreign issuers Domestic investors 28 local exchange members 1.5m investment accounts PLN 356bn in pension and mutual funds International investors 25 remote exchange members PLN 219bn invested in Polish listed equities Domestic issuers 381 companies on Main Market 255 companies on NewConnect 142 non-treasury debt instruments on Catalyst Net profit after H1 at 75% of entire 21 result, up 31% y-o-y Strengthened WSE s international brand in listings 8 new foreign companies listed on Main Market in H1 WIG-Ukraine index launched Increased derivatives product offering H1 with highest equity session turnover value in WSE history Growing options and stock futures volumes JSW, Europe s 2nd largest IPO in 211 until its listing on July 6, closed offer with all shares sold Proven ability to deliver high dividend yield KDPW 1 launched KDPW_CCP Data as of end H1 211 1 KDPW and KDPW_CCP are part of KDPW Group: deposit, clearing & settlement institution in which WSE holds 33.3% 2
Financial highlights Net profit after H1 equals 75% of entire 21 result H1 revenue up by 23% vs H1 21 Returning profits to shareholders with one of the highest dividend yields in the sector At the middle of the range among listed exchanges in terms of price to estimated 211 earnings ratio Net profit (PLN m) 89.7 1.7 94.8 71.5 28 29 21 H1 211 Revenue (PLN m) 225.6 184.7 199.5 137.5 45. 4. 211E P/E Average 35. 3. 25. 2. 15. 13.8 1. 5.. 12. 1. 8. 6. 15.7 4. 2.. 28 29 21 H1 211 Dividend yield (%) Average 7.6 4.3 Source: Bloomberg Data based on share prices from 26.8.211. 19 listed exchanges for which data is available. Most recent gross dividend yield. 3
1/29 2/29 3/29 4/29 5/29 6/29 7/29 8/29 9/29 1/29 11/29 12/29 1/21 2/21 3/21 4/21 5/21 6/21 7/21 8/21 9/21 1/21 11/21 12/21 1/211 2/211 3/211 4/211 5/211 6/211 Moving beyond a CEE exchange Countries of origin of foreign companies listed on the WSE as of end H1 211 Ukraine (9) Czech Republic (4) Netherlands (3) Estonia (2) Hungary (2) France (2) UK (1) Austria (1) Cyprus (1) Spain (1) Canada (1) Lithuania (1) Luxembourg (1) Germany (1) Slovakia (1) Slovenia (1) USA (1) Sweden (1) Italy (1) Total: 35, Main Market only Destination of choice for issuers, investors and brokers Continued growth in turnover and market cap puts WSE in dominant position 25 2 15 1 5 Quartlerly equity trading value (EUR bn, session + block trades): 29 H1 211 Athens Exchange Warsaw Stock Exchange Vienna Q1/9 Q2/9 Q3/9 Q4/9 Q1/1 Q2/1 Q3/1 Q4/1 Q1/11 Q2/11 Source: FESE 16 14 12 1 8 6 4 2 Source: FESE Domestic market cap (EUR bn): 29 H1 211 Athens Exchange Warsaw Stock Exchange Vienna 145 91 46 World Federation of Exchanges: With over 5% growth in market cap in the 12 months to June 211 (in USD terms) WSE was #6 in the world; and #8 in terms of electronic order book trading growth in Jan- June 211 vs Jan-June 21 over 4% growth 4
Structural changes drive growth Sustained growth of session turnover value post-28 Providing diversified exposure to an increasing number of sectors of the Polish economy, with addition of insurance and energy in recent years Sectors by market cap 3 25 2 15 1 Main Market monthly session turnover value (PLN bn): 21 H1 211 Developers 3% Other 19% Media 4% Construction 5% Metals 6% Telecom 9% Energy 12% Insurance 6% Other 25% Domestic companies only, Main Market Oil & Gas 11% Basic materials 1% Banking 43% Banking 33% Oil & Gas 9% Telecom 5% 1.8.28 1.8.211 5 3 25 2 15 1 5 Quoted shares held by foreign investors (PLN bn): 24 Q1 211 24 25 26 27 28 29 21 Q1 211 Source: NBP 5
WSE s strong international brand in listings #3 in the world in terms of number of new listings in H1 according to WFE #1 in EMEA by number of new listings and #5 by capital raised in Q2 211 according to E&Y At time of listing (July 6) JSW was second largest IPO in Europe in 211 (PwC, Bloomberg) 14 12 1 8 6 4 2 12.6 #3 in EU by value of IPOs in H1 211 (regulated and alternative markets) 21 (EUR bn) H1 211 (EUR bn) Number of IPOs (H1 211, RHS) 1.2.7.7.4.3.2.1 1 9 8 7 6 5 4 3 2 1 21 H1 211: a growing proportion of foreign companies chose WSE as their sole listing venue H1 211 21 29 28 27 26 25 24 4 2 1 3 1 3 1 4 1 7 4 3 Services 12% Sectors of foreign companies newly listed in H1 211 based on their end H1 market cap (Main Market) Greater China led by number of deals, followed by Poland and US in Q2 7 Engineering 15% Food 31% 5 Main Market and NewConnect Banking 32% Dual listings Single listings E&Y Energy 1% Source: PwC Warsaw continued to lead by volume in Q2 PwC 6
Key developments on the Main Market Q1 and Q2 combined constitute the best six months in value of session trading The value of session trading in H1 211 up by 28.5% vs H1 21 Top 5 share in turnover in Q2 211 down to 49.9% from 59% in Q2 21 8 New listings 49 3 32 23 23 25 1 6 7 11 Companies transferring from NewConnect to the Main Market 1 8 4 29 21 H1 211 Session trades (PLN bn) Block trades (PLN bn) Domestic market cap (PLN bn, RHS) 1 7 9 8 7 6 5 4 3 2 1 519. 449.7 45.2 6.9 6.1 2.7 45.6 53.8 49.6 542.6 561.1 556.2 11.8 3.9 7.3 57.9 63.9 63.8 6 5 4 3 2 1 Q1/1 Q2/1 Q3/1 Q4/1 Q1/11 Q2/11 7
Derivatives evolve into a more diversified business 94% of the entire 21 single stock futures volume by end of H1 211 #5 by index options volume in Europe after H1 211 (FESE) Total derivatives trading in H1 211 down by 11.5% vs H1 21 on low WIG2 volatility 3 25 2 15 1 5 Total derivatives turnover volume (m, RHS) 4.1 4.1 179 153 3.2 169 3.3 181 Turnover volume (thousands of contracts) Single stock futures H1 211 21 Options Q1/1 Q2/1 Q3/1 Q4/1 Q1/11 Q2/11 4. 21 352 58 375 Open interest (thousands, LHS) 3.2 198 675 4.5 4. 3.5 3. 2.5 2. 1.5 1..5. New enhancements and product launches 2 new ETFs tracking DAX and S&P 5 listed in May 3 new single stock futures introduced YTD (1 in May, 2 in August) 117 new warrants and structured certificates introduced in July 8
Realizing high growth on NewConnect NewConnect was #2 in the world by number of listings in Q2 211 (E&Y) With 8 new listings and PLN 363m raised in H1 211, primary market activity exceeded entire 21 Market capitalization of NewConnect increased six-fold since end of 27 At PLN 693m, total turnover value reached record in Q2 211 8 7 6 5 4 3 2 1 Market cap (PLN bn, LHS) 61 2.6 1.2 1.4 26 24 New listings (RHS) 7.2 5.1 86 8 14 12 1 8 6 4 2 27 28 29 21 H1 211 8 7 6 5 4 3 2 1 Turnover value (session + block trades, PLN m) 687 693 561 482 481 198 Q1 21 Q2 21 Q3 21 Q4 21 Q1 211 Q2 211 5 4 3 2 1 Capital raised on NewConnect (PLN m) 88 126 18 363 237 194 155 67 53 27 28 29 21 H1 211 SPO IPO 9
WSE s fixed-income markets gain momentum TBS Poland trading value (PLN bn) Catalyst (non-treasury instruments) 25 2 15 1 5 Cash market Repo market 237.1 176.2 88.5 72.1 7.1 27.8 35.2 41.3 44.2 3.5 2.2 35.9 Q1/1 Q2/1 Q3/1 Q4/1 Q1/11 Q2/11 35 3 25 2 15 1 5 Issue value (PLN bn, LHS) Number of series (RHS) 3.9 24.3 21.6 21.5 19.9 142 1.9 97 114 73 37 51 Q1/1 Q2/1 Q3/1 Q4/1 Q1/11 Q2/11 25 2 15 1 5 Record quarter in TBS Poland history Catalyst grows with rising number and value of series traded 9 8 7 6 5 4 Catalyst issue value and total debt issue value in Poland (non-treasury, PLN bn) Municipal bonds Bank bonds Corporate bonds Catalyst launch in Q3 29 facilitated rise in non-treasury debt issuance 3 2 1 3.9 Commercial papers Non-treasury instruments listed on Catalyst 1 Source: Fitch Ratings, WSE
Targeting a diversified investor base Share in equity turnover by investor type - Main Market H1 21 H1 211 34% 19% 34% 18% 47% 48% Source: WSE survey, data should be treated as estimates Share in equity turnover by investor type - NewConnect 19% 5% 3% 92% 3% 78% Share in turnover by investor type futures contracts 31% 38% 57% 12% 15% 47% foreign domestic individual domestic institutional Share of foreign investors trending higher on Main Market and in futures trading Domestic institutions increase presence on NewConnect Individuals still an important investor base in dervitives 84.8 AUM of pension funds (PLN bn) 221.3 178.6 139.6 137.1 116.2 236.8 61.3 AUM of investment funds (PLN bn) 135. 116.1 119.2 98.8 93.5 74.2 25 26 27 28 29 21 H1 211 Source: KNF 25 26 27 28 29 21 H1 211 Source: IZFA 11
Maximizing potential of retail investors on the WSE Number of investment accounts (m) 1.48 1.53 1.13.85.85.91 1. 1.3 Big privatizations with participation of local investors increased the size of the market and changed the market structure Privatization activity continues in 211 with sale of stakes in PZU in June (PLN 3.2bn), and Tauron in March (PLN 1.3bn) as well as JSW IPO in July (PLN 5.4bn) Source: KDPW 24 25 26 27 28 29 21 H1 211 Quoted shares and mutual funds still a small percentage of households financial assets Large and growing retail deposit base 14 12 1 8 6 4 2 Financial assets of households (PLN bn) 24 25 26 27 28 29 21 Q1 211 56 72 8 85 12 6 237 444 Quoted shares Life insurance Mutual funds Currency Unquoted equity Other Pension funds Bank deposits Source: NBP 12
Q3 so far: business highlights August sets new turnover records amid market volatility: highest value of session trading on the Main Market highest WIG2 index futures volume highest options and stock futures volume 1 new Ukrainian issuer listed on the Main Market, total 1 Ukrainian companies VTB Capital (UK), BNP Paribas Arbitrage (France), Benchmark BG (Bulgaria) and TD Investment (Cyprus) have become members of the WSE NewConnect s 4th anniversary today marked by listing of company number 3 WSE: a mid-sized European exchange by market cap Domestic market cap, end-july 211 (EUR bn) 19.1 181. 144.6 Source: FESE Istanbul Stock Exchange Oslo Bors WSE 13
Financial summary H1 211 H1 21 PLN m H1 211 results as % of the entire 21 72.3 52.8 71.5 54.4 111.5 137.5 +23.3% +37.% +31.4% Earnings growth firmly in double digits y-o-y after H1 211 Revenues Net profit 61% 75% 67.8 9. +32.7% EBITDA 1 73% Basic financial ratios Top line growth drivers: Higher equity turnover value and surge in new listings Large transaction in tenders for shares in Q1 211 H121 H1 211 change EBITDA margin 6.8% 65.5% 4.7 pps EBIT margin 47.4% 52.6% 5.2 pps ROE 14.2% 23.7% 9.5 pps 1 EBITDA = EBIT + share of profit of associates + depreciation and amortization 14
H1 consolidated P&L account PLN m H1/11 H1/1 change Net profit (PLN m) Revenues 137.5 115.5 23.3% Operating expenses 65.2 58.9 1.6% Other income.7.4 26.6 27.8 22.2 18.2 38.6 32.9 Other expenses.7.2 Operating profit 72.3 52.8 37.% Net financial income 4.6 6.3 Share of profit of associates 9.9 6.8 Profit before income tax 86.8 65.9 Income tax expense 15.3 11.5 Profit for the period 71.5 54.4 31.4% Q1 21 Q2 21 Q3 21 Q4 21 Q1 211 Q2 211 Operating profit (PLN m) 38.5 33.8 25.7 27.1 22.1 16.9 EBITDA 9. 67.8 32.7% Higher profitability in H1 211 vs H1 21 Q1 21 Q2 21 Q3 21 Q4 21 Q1 211 Q2 211 15
Consolidated H1 revenues Selected revenue sources (PLN m) H1 211 H1 21 change Equities trading 77.5 55.5 39.6% Derivatives trading 18.6 22.4-16.7% Fixed income trading 6.5 4. 6.8% Listing 11.8 1.1 16.3% Information services 17.6 16. 9.9% Other 2.7 1.1 14.3% Information services 12.8% Other 2.% Maintained double-digit revenue growth for entire H1 211 8 Equities trading revenue up by 39.6% Listing revenue up by double-digits Fixed-income trading revenue up by 6.8% on TBSP volumes Derivatives revenue decrease due to lower volumes on low WIG2 volatility Revenues (PLN m) q-o-q change (%) 3% Listing 8.6% 7 6 54. 57.5 54. 6.2 1 2 69.2 68.3 25% 2% Fixed income 4.7% 5 4 11.5% 14.9% 15% 1% Other revenues from members 1.7% Derivatives 13.5% Other cash instruments.3% Equities 56.4% 3 2 1 6.5% -6.1% -1.2% Q1 21 Q2 21 Q3 21 Q4 21 Q1 211 Q2 211 1 Includes one-off increase in revenue from tenders for shares. Tenders for shares revenue totalled PLN 7.7m in Q1 211 2 Includes trading revenue increase of PLN 3m due to correction of Q1 billing error 5% % -5% -1% 16
H1 operating expenses overview Operating expenses (PLN m) q-o-q change H1 211 share in total H1 21 share in total 45 42.8 9% Depreciation and amortization 7.8 12.% 8.2 13.9% 4 35 34.1 7% 5% Salaries 19.4 29.7% 15.8 26.9% 3 28.4 3.5 3.6 4.% 31.1 3% Other employee costs Rent and other maintenance fees 5.3 8.2% 4.4 7.5% 3.4 5.2% 3. 5.2% 25 2 15 7.1%.5% -27.5% 9.6% 1% -1% -3% Fees and taxes 8.3 12.8% 8.4 14.3% 1-5% External services 17.6 27.% 15.5 26.4% 5-7% Other operating expenses 3.3 5.1% 3.5 5.9% Q1 21 Q2 21 Q3 21 Q4 21 Q1 211 Q2 211-9% 17
Profit measures Q1 and Q2 211 profit margins higher than Q1 and Q2 21 Y-o-y ROE growth in Q2 211 at 9.4 pps Net profit from last 4 quarters to end of period trending higher since Q4 21 12 1 Net profit from last 4 quarters to end of period 14.1 96.2 94.8 16.8 111.9 EBITDA margin EBIT margin 8% 7% 6% 5% 4% 3% 2% 1% % 6% 5% 4% 3% 2% 1% 63.1% 69.3% 58.7% 56.8% 61.6% 4.1% Q1 21 Q2 21 Q3 21 Q4 21 Q1 211 Q2 211 47.6% 47.1% 4.9% 28.% 55.7% 49.5% 8 6 % 25% 2% Q1 21 Q2 21 Q3 21 Q4 21 Q1 211 Q2 211 18.1% 19.2% 23.7% 4 15% 14.2% 12.7% 2 ROE 1% Q2 21 Q3 21 Q4 21 Q1 211 Q2 211 5% % Q2 21 Q3 21 Q4 21 Q1 211 Q2 211 18
Balance sheet overview PLN m 3.6.211 31.12.21 3.6.21 Non-current assets Property and equipment Investment in associates Available-for-sale financial assets Other non-current assets Current assets Available for-sale financial assets Cash and other equivalents Other current assets Total assets Shareholders equity Long-term liabilities Short-term liabilities Total equity and liabilities 394. 337.7 363. 118. 119.5 12.7 141.5 139. 186. 67.3 11.8 14.4 67.2 67.4 42. 239.5 22.9 241.. 3.8 141.8 189. 17.6 69.5 5.5 82.5 29.7 633.5 558.5 64. 461. 524.7 485. 3.4 4.8 3. 169.2 29. 116. 633.5 558.5 64. 19
Investor Relations ir@gpw.pl ul. Książęca 4-498 Warsaw Poland 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. 2 2