GPW Group Financial Results Q4 2015 25 February 2016 Summary of - PowerPoint PPT Presentation

GPW Group Financial Results Q4 2015 25 February 2016

Summary of GPW Activities in 2015 GPW Group Financial Results in Q4 2015

Year-on-year improvement of results Net profit EBITDA Revenue Operating expenses PLN mn PLN mn PLN mn PLN mn +3.3% 57.2% +10.2% +9.4% 53.2% 61.2% 54.8% C/I -4.0% -0.1% 327.9 123.7 179.5 +10.9% +16.2% 317.6 -10.6% 181.6 164.1 112.3 174.4 83.9 83.8 45.1 28.2 51.3 40.7 24.3 45.9 Q4’14 Q4’15 2014 2015 Q4’14 Q4’15 2014 2015 Q4’14 Q4’15 2014 2015 Q4’14 Q4’15 2014 2015 Improved liquidity on the Group’s markets driven by client acquisition, liquidity Liquidity support programmes and infrastructure development Issuers 36 new issuers of shares and 23 new issuers of bonds, improved standards, transparency and safety on the Group’s markets Multiple optimisation initiatives in the GPW Group helping to cut costs and Optimisation enhance operational excellence of the Group 3

Building up liquidity on the equity market Velocity up by 5.6 p.p. YoY in Q4 2015  New Exchange Members: Credit Suisse International, Spire Europe Ltd., Sun Trading International  New equity market makers: Hudson River Trading, Trigon  Launch of ABN Amro Clearing Bank in April 2016  Development of High Volume Providers programme and launch of new High Volume Funds programme:  6 participants of both programmes at the end of Q4 2015 on the cash and derivatives markets  growing share of HVP and HVF in turnover: • equity EOB: average 4.5% w 2015 >PLN 22 bn • derivatives: average 4.5% w 2015  pipeline of several more participants  Infrastructure development:  re-launch of GPW colocation service: first clients in Q1 2016 value of trade in shares in 2015 generated RMA application and Kill Switch functionality  by new clients 1 first international ISV, more in the pipeline  1 EOB equity turnover on the GPW Main Market, double-counted; HVP and HVF participants, new market makers 4

Exchange: a source of growth capital GPW in Europe’s TOP3 by number of IPOs in 2015 1  Sustained strong acquisition of issuers (mainly SMEs) 92 30 new issuers on the Main Market in 2015 vs. 28 in  2014 72 13 transfers from NewConnect in 2015 – 47 companies  33 32 have transferred in GPW history 27 24 23  Two significant public offers: Uniwheels (IPO – PLN 11 8 8 6 6 5 3 3 2 2 2 504 mn), Pfleiderer Grajewo (SPO – PLN 561 mn) 1 1 1 1 1 United Kingdom Sweden Poland France Italy Spain Germany Finland Netherlands Norway Belgium Turkey Romania Iceland Switzerland Denmark Ireland Croatia Estonia Lithuania Bulgaria Austria Czech Republic  23 new non-Treasury bond issues worth PLN 5.1 bn on Catalyst in 2015 ECM activity: good in H1 and slightly weaker in H2 2015 2 GPW in Europe’s TOP10 by IPO value in 2015 EUR mn PLN bn 16,370 7,794 2.5 6,795 2.2 2.1 6,113 5,216 5,265 1.6 1.6 4,720 1.4 1.1 0.7 2,039 1,078 440 409 395 394 168 112 42 36 6 1 1 United Kingdom Spain Germany Netherlands Italy Sweden France Switzerland Norway Poland Finland Belgium Ireland Denmark Iceland Turkey Croatia Bulgaria Austria Czech Republic Q1’14 Q2’14 Q3’14 Q4’14 Q1’15 Q2’15 Q3’15 Q4’15 5 1 PwC IPO Watch Europe Q4 2015 (regulated and alternative markets) 2 ECM - Equity Capital Market; source: Dealogic, ECM value at transaction value as at the pricing date

GPW market promotion Capital for Growth Polish Capital Markets Days and other initiatives  Polish Capital Markets Days – series of seminars:  Promoting the Exchange as a venue of raising growth capital: promoting SMEs   targeting Polish companies and local governments 5 events: London, New York, Warsaw, Stegersbach,   16 meetings in Poland’s biggest cities Paris  close to 1,200 participants participation of 100 Polish companies   more than 30 presentations of listed companies 900 meetings with 252 investors   Multiple meetings with all of the biggest investment Gdańsk banks active in CEE 5.8% 52 Olsztyn 2.7% 3.8% 8 Szczecin  International events for potential issuers: Vilnius, 11 Bydgoszcz Białystok 2.3% Belgrade, Wrocław (Slovenia Day), Odessa, Kyiv 7 4.5% 21 Poznań 2.2% Warszawa 21.9% 8 9.7% 324 Łódź 69 Zielona Góra 6.1% Lublin Wrocław 34 8.5% Kielce 4.0% 105 2.1% 13 9 12.5% 2.4% 100 11 Rzeszów Kraków Opole Katowice 3.9% 7.7% 15 57 # Number of listed companies in the region (Main Market and NewConnect) % Percentage share of the region in Poland’s GDP 6 Source: PwC, GPW

Improvement of market attractiveness Raising standards Dialogue with Exchange Members New areas of development  New Best Practices for GPW  Reduced transaction fees for  Active participation in legislative Listed Companies: equity trade: work: Outcome of broad public Based on dialogue and REIT    agreement with brokers market consultations Covered bonds  Objective: to improve Fee reduced from 0.033% to   Access for banks  0.029% on order value up to corporate governance  Structural realignment: requirements and align with PLN 100 thou. – from 1 January 2016 international trends Integration of post-trade services –  Fees on SME shares traded by  analysis underway  NewConnect 2.0 reform: market makers at 0 – H2 Simplification of Catalyst structure  Council of Authorised Advisers  2015 – pending More transparency of   Trading hours on TGE energy  New products and services: introducing companies to ATS and gas market extended to Non-display data   100% UTP availability 15:30 Financial Instruments Market (TGE)  Trade reporting (TGE)  Liquidity Safety Development Availability Transparency Innovation Corporate governance Turnover Competitivity 7

Another year of building up liquidity on the commodity market Liquidity on the electricity market 1 in 2015: 138% -  Record-high volume of trade in energy and gas Europe’s #3 market after German/Austrian and Nordic markets Electicity (TWh) Gas (TWh) 58.9 45.7 58.9  Liquidity on the gas market in 2015: 62% - Europe’s 58.6 55.6 35.5 48.6 47.5 #3 market after UK and Netherlands 43.5 44.0 43.1 41.5 38.1 36.8 35.5 30.7  Recovery of the volume of trade in property rights – 20.3 20.4 58.9 TWh in 2015 vs. 36.0 TWh in 2014 4.2 1.7 0.3 1.0 0.2 0.2  TGE’s key initiatives: Q1’13 Q2’13 Q3’13 Q4’13 Q1’14 Q2’14 Q3’14 Q4’14 Q1’15 Q2’15 Q3’15 Q4’15  Member of Multi-Regional Coupling (MRC) and Price Coupling of Regions (PCR) NEMO appointed by ERA President for the Polish electricity market  Volume of trade in property rights – December 2015 Start-up of Polish-Lithuanian link  Renewable energy sources (TWh) Cogenaration (TWh) Launch of Financial Instruments Market  23.7 Extended trading hours on the electricity and gas markets  Trade reporting service  6.7 18.8 Green certificates futures market  15.5 Pending implementation of a new trading system –  8.7 12.8 11.9 11.8 X-stream Trading Technology 11.1 5.8 4.5 7.7 17.0 6.7 6.4  Key legislation in 2015: 5.8 5.8 9.3 10.7 4.0 10.1 9.6 Renewable Energy Sources Act  5.9 7.4 6.2 5.6 5.6 5.2 3.9 CO 2 Trade Act 2.6  Energy Efficiency Act  Q1’13 Q2’13 Q3’13 Q4’13 Q1’14 Q2’14 Q3’14 Q4’14 Q1’15 Q2’15 Q3’15 Q4’15 1 Exchange turnover (spot and forward) to domestic consumption 8

Summary of GPW Activities in 2015 GPW Group Financial Results in Q4 2015

Revenue growth supported by strict cost discipline in 2015 … Net profit and net profit margin Revenue EBITDA and EBITDA margin PLN mn. % PLN mn. % PLN mn 61.6% 53.8% 53.8% 54.7% 51.7% 43.6% 48.5% 48.9% 38.2% 37.7% 35.0% 35.4% 33.7% 29.0% +3.3% +9.4% +10.2% 327.9 -0.1% 317.6 179.5 123.7 88.2 83.9 83.8 +10.9% 164.1 78.7 77.2 +16.2% 112.3 54.3 38.4 45.1 42.3 40.7 30.1 37.8 28.2 27.0 24.3 Q4’14 Q1’15 Q2’15 Q3’15 Q4’15 2014 2015 Q4’14 Q1’15 Q2’15 Q3’15 Q4’15 2014 2015 Q4’14 Q1’15 Q2’15 Q3’15 Q4’15 2014 2015  Cost/income ratio in 2015 – 53.2% vs. 57.2% in 2014  Dividend paid from 2014 profit – PLN 2.40 per share, dividend yield 4.9% 1 1 Dividend yield based on GPW share price as at the dividend record date 10

.. translated into the largest value of revenue and EBITDA in GPW history Net profit and net profit margin Revenue EBITDA and EBITDA margin PLN mn, % PLN mn, % PLN mn 55.5% 54.7% 49.9% 51.8% 51.7% 50.9% 48.1% 42.0% 40.0% 38.8% CAGR 37.7% 35.4% +7.8% 327.9 317.6 179.5 164.1 283.8 273.8 134.1 268.8 149.3 144.4 141.8 123.7 113.5 112.3 225.6 106.2 108.4 94.8 2010 2011 2012 2013 2014 2015 2010 2011 2012 2013 2014 2015 2010 2011 2012 2013 2014 2015 11

Financial market revenue up by 5.4% YoY in Q4 2015: 61.0% 2015: 38.2% Revenue – financial market Revenue – commodity market PLN mn PLN mn 0.0% +9.4% 200.0 200.0 125.2 +5.4% 51.5 50.2 49.2 49.0 46.5 114.5 -4.2% 37.4 35.7 34.2 26.9 26.7 Q4’14 Q1’15 Q2’15 Q3’15 Q4’15 2014 2015 Q4’14 Q1’15 Q2’15 Q3’15 Q4’15 2014 2015 12