Post on 22-Dec-2015
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OVERVIEW OF THE POLISH CAPITAL MARKETCHANCES AND OPPORTUNITIES
NOVEMBER 2013
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Poland’s Key Position in the enlarged EU
The largest and most populated new (i.e. accession post 2004) EU member State (population c.a. 38 million)
Poland’s GDP accounts for c.a. 38% of the new EU 12 members’ GDP
GDP growth in 2010: 3.9%
GDP growth in 2011: 4.3%
GDP growth in 2012: 1.9%
GDP growth forecast in 2013: 1.1%
Polish government GDP growth forecast in 2014: 2,5%
2008 - 2012 accumulated GDP: 18.1%
Ratings A2 Stable by Moody’s A- Stable by S&P A- Stable by Fitch
Source: Ministry of Finance, Polish Central Statistical Office, Eurostat, EBOR.
Key statistics:
Economy:EU GDP (%) 2008 2009 2010 2011 2012 2013f 2014f
2008-2012 accumulate
d GDP
Poland 5,1 1,6 3,9 4,5 1,9 1,1 2,2 18,1
Lithuania 2,9 -14,8 1,5 5,9 3,7 3,1 3,6 -2,3
Latvia -3,3 -17,7 -0,9 5,5 5,6 3,8 4,1 -12,1
Slovakia 5,8 -4,9 4,4 3,2 2,0 1,0 2,8 10,6
Estonia -4,2 -14,1 3,3 8,3 3,2 3,0 4,0 -5,0
Romania 7,3 -6,6 -1,1 2,2 0,7 1,6 2,2 2,0
Malta 3,9 -2,8 2,9 1,7 0,8 1,4 1,8 6,5
Denmark -0,8 -5,7 1,6 1,1 -0,5 0,7 1,7 -4,4
Luxemburg -0,7 -4,1 2,9 1,7 0,3 0,8 1,6 0,0
Austria 1,4 -3,8 2,1 2,7 0,8 0,6 1,8 3,1
Finland -8,5 0,3 3,3 2,8 -0,2 0,3 1,0 -2,7
Germany 1,1 -5,1 4,2 3,0 0,7 0,4 1,8 3,7
Bulgaria 6,2 -5,5 0,4 1,8 0,8 0,9 1,7 3,4
Ireland -2,1 -5,5 -0,8 1,4 0,9 1,1 2,2 -6,1
France -0,1 -3,1 1,7 2,0 0,0 -0,1 1,1 0,4
UK -1,0 -4,0 1,8 1,0 0,3 0,6 1,7 -2,0
Sweden -0,6 -5,0 6,6 3,7 0,7 1,5 2,5 5,1
EU (27 countries)
0,3 -4,3 2,1 1,6 -0,3 -0,1 1,4 -0,7
Belgium 1,0 -2,8 2,4 1,8 -0,3 0,0 1,2 2,0
Czech Republic 3,1 -4,5 2,5 1,9 -1,3 -0,4 1,6
1,5
Euro area (17 countries)
0,4 -4,4 2,0 1,5 -0,6 -0.4 1,2 -1,2
Hungary 0,9 -6,8 1,3 1,6 -1,7 0,2 1,4 -4,9
Cyprus 3,6 -1,9 1,3 0,5 -2,4 -8,7 -3,9 1,0
Netherlands 1,8 -3,7 1,6 1,0 -1,0 -0,8 0,9-0,4
Italy -1,2 -5,5 1,7 0,4 -2,4 -1,3 0,7 -7,0
Slovenia 3,4 -7,8 1,2 0,6 -2,3 -2,0 -0,1 -5,2
Spain 0,9 -3,7 -0,3 0,4 -1,4 -1,5 0,9 -4,1
Portugal 0,0 -2,9 1,9 -1,6 -3,2 -2,3 0,6 -5,8
Romania 7,3 -6,6 -1,1 2,2 0,7 1,6 2,2 2,0
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WSE- broad and diversified investor base
WSE successfully attracts new domestic and remote trading members. These are mainly local investment firms, international investments banks and regional financial intermediaries. With recent launch of the UTP trading system, WSE has opened up to new groups of investors, including global investment firms active in algorithmic trading and proprietary trading firms.
Equity trading - structure of investors in H1 2013
49%
37%
14%
ForeignPolish InstitutionalPolish Retail
16%
34%
50%
ForeignPolish InstitutionalPolish Retail
Derivatives trading - structure of investors in H1 2013
Largest institutional investment pool in the CEE with high allocation in domestic equities AUM Pension Funds - EUR 69 bn (as of Sept. 2013) AUM Investment Funds - EUR 41 bn (as of Sept. 2013)
Broad retail investor base with active interest in capital markets investments At the end of 2012, the number of individual securities accounts registered with the Central Securities
Depository of Poland (KDPW) was over 1.5 million.
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Cash market(equities and other)
Derivatives market Cash market (bonds) Market data and indices Commodities Post-trading services
22 years of functioning
Active IPO market
Leading stock exchange in the CEE region
Attractive to the foreign investors and
foreign issuers
Warsaw Stock Exchange Group
Shares of 446 companies, including 46 foreign on WSE Main List (regulated market)Shares of 445 companies, including 9 foreign, on NewConnect (WSE alternative market for SMEs) Derivatives: futures contracts on various underlyings (i.e. indices, single stocks and currencies), options on WIG20 indexETP segment covering ETF’s, warrants, structured certificates (including knock-out certificates and newly introduced factor certificates) and structured bondsDebt instruments (including treasury bonds, corporate, municipal bonds, mortgage backed bonds)
Shares
Debt Instruments
InvestmentCertificates
ETFs
Structured Products
Warrants
Futures
Options
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The Warsaw Stock Exchange is among the most dynamic European markets, holding unquestionable leadership in Central and Eastern Europe in terms of: market capitalisation, trading value and the number of new trading members and issuers.
WSE – one of the fastest developing market in Europe
Exchanges’ share in capitalisation of shares in CEE1 region, 2012
WSE share of exchanges in trading in shares in CEE1 region, 2012
55%
21%
12%
10%2%
Warsaw Stock Exchange CEESEG- Vienna CEESEG- Prague CEESEG- Budapest
Bucharest SE, CEESEG- Lubljana, Bulgarian SE, Bratislava SE
48%
28%
10%5%
10%
1 Including: WSE, CEESEG Group, Bulgarian, Romanian and Slovak stock exchanges, source: FESE2 Only non-Treasury bonds
WSE’s share in equities trading in CEE1 in June was record-high at 65%
According to the IPO Watch Europe report, WSE ranked 2nd in Europe by the number of IPOs in H1 2013 (31 IPOs representing 26% of all IPOs in Europe) and 7th by the value of IPOs (EUR 325 mn)
Main Market - equities# domestic companies
Main Market- equities# foreign companies
2011 2012 2013 (Sep)
387 395 398
2011 2012 2013 (Sep)
3943 45
2011 2012 2013 (Sep)
351
429 447
2011 2012 2013 (Sep)
99
155175
NewConnect # small caps companies
Catalyst2
# bonds issuers
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WSE in Europe
Growth rate of the value of trading on European exchanges, Q1-Q3 2013 versus Q1-Q3 20121
1 Source: FESE; session trades in EUR2 Since 20.05.2013, BATS Chi-X Europe operates in Europe as a licensed exchange
Cyprus SECEESEG - Prague
Bratislava SEOslo Børs
Bucharest SECEESEG - Budapest
BME (Spanish Exchanges)BATS Chi-X Europe
London SEDeutsche BörseNYSE Euronext
NASDAQ OMX NordicCEESEG - Ljubljana
Luxembourg SECEESEG - Vienna
EquiductSIX Swiss
Warsaw SEBoerse Stuttgart
Borsa IstanbulAthens Exchange
Malta SEIrish SE
Bulgarian SE
CEE regionEuropean Exchanges
-85%-35%-31%-25%
-12%-11%
-8%-6%-4%-2%-2%-1%
1%1%3%7%11%16%
28%33%35%41%44%
202%
9.7%-2.0%
202%
2
Value of equities trading on WSE in Q1-Q3 2013 increased by 16.1% YoY
Value of trading in CEE in Q1-Q3 2013 increased by 9.7% YoY while the value of trading on all European exchanges decreased by 2.0% YoY
WSE’s share in the value of equities trading in CEE3 was 59.3% year to date
WSE’s shares in equities trading in CEE3
3 including: WSE, CEESEG Group, Bulgarian, Romanian and Slovak exchanges, source: FESE
Q3/12 Q4/12 Q1/13 Q2/13 Q3/130
5
10
15
20
25
30
0 .0 %
1 0 .0 %
2 0 .0 %
3 0 .0 %
4 0 .0 %
5 0 .0 %
6 0 .0 %
7 0 .0 %
56.9% 55.2%59.4% 60.1% 58.4%
40.7% 42.5%38.1% 36.6% 38.9%
2.4% 2.3% 2.5% 3.3% 2.7%
Value of equities trading in CEE WSE's share CEESEG's share Others' share
EUR bn
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60.6%
0.9%
3.9% 27.6%
7.0%
0.1%
EUREX
Liffe N
YSE E
uronex
tOMX
Italy
WSE
Spain
Norway
Greece
Hungary
Austria
Romania
0
1 0
2 0
3 0
4 0
5 0
6 0
7 0
177,3
44.5
16.4
5.0 4.3 3.7 1.8 1.0 0.2 0.2 0.1
Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13
3.99
3.25
4.66
3.66
2.763.19
2.74 2.653.17 3.37 3.43
Derivatives trading volume (m)1Index futures trading volume in Europe (H1 2013; m)
WIG20 futures
mWIG40 futures
stock futures
currency futures
option
miniWIG20 particiaption units
Structure of derivatives trading volume1
Q3 20133.43 m
WSE derivatives market – brand new opportunities under your fingertips
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
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.
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Growing number of foreign companies listed on 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) Slovakia (2)
Slovenia (2) Spain (1) Sweden (1) USA (1)
Switzerland (1) Republic of China (1)
55 foreign companies listed (46 on WSE Main List and 9 on NewConnect)
26 foreign companies joined the WSE-listed companies’ family since the beginning of 2011 (both WSE equities
markets).
Source: WSE, YTD.
Countries of origin of foreign companies listed on the WSE
2013 debuts:
INTERNATIONAL PERSONAL FINANCE (UK)
IMMOFINANZ AG (AUSTRIA)
PHOTON ENERGY N.V. (NETHERLANDS)
AVIAAM LEASING (LITHUANIA)
PEIXIN INT. GROUP (REPBLIC OF CHINA)
WSE-listed company with Israeli capital:
ATLAS ESTATES
CINEMA CITY
PLAZA CENTERS
RONSON EUROPE
GLOBE TRADE CENTRE
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Attractive venue for issuers
Source: PwC IPO Watch Europe report
Retail (68) Support services (60) Financial services (43)
IT (42) Technology (38) Media (37)
Construction (30) Investments (24) Health care (22)
Real estate (20) Eco-energy (16) Leisure (14)
Telecommunication (12) E-trade (10) Recycling (9)
NewConnect: Breakdown by sector
WSE Main List: Breakdown by sector
Finance other (37) Other services (36) Construction (35)
Developers (32) IT (31) Food (29)
Wholesale trade (29) Electroengineering (27) Retail trade (21)
Metals (20) Building materials (19) Banking (17)
Media (16) Pharmaceutical (11) Energy (11)
Light (9) Wood & paper (8) Oil & gas (8)
Hotels & restaurants (8) Basic materials (7) Telecom (7)
Chemicals (6) Plastics materials (6) Automobiles (6)
Capital market (6) Other industries (3) Insurance (1)
Exchange # of IPOsValue
(EUR M)Exchange # of IPOs
Value (EUR M)
London 25 1704 London 25 2633WSE 10 15 WSE 18 44
Nasdaq OMX 4 - Nasdaq OMX 10 371Borsa Italiana 3 58 NYSE Euronext 9 922
NYSE Euronext 3 43 Deutsche Boerse 3 714Deutsche Boerse 2 500 Borsa Istanbul 3 326
Oslo Bors & Oslo Axess
2 409 Borsa Italiana 3 318
Borsa Istanbul 1 2 Luxembourg 2 30
Spain (BME) 1 2Oslo Bors
& Oslo Axess2 12
Ireland 1 310 Ireland - -Luxembourg - - Spain (BME) 1 -
Q3 2013 Q2 2013
WSE remained Europe’s #2 by the number of IPOs in Q3 2013
There were 10 IPOs on Warsaw Stock Exchange in Q3 2013 (2 IPOs on the WSE Main Market and 8 IPOs on NewConnect). The share of WSE in the total number of all IPOs in Europe was 19%. The London Stock Exchange remained the leader by the number of IPOs. The aggregate value of IPOs on WSE in Q3 2013 was EUR 15 million, which ranked WSE #7 in Europe by the value of initial public offerings.
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Q3 2012 Q3 2013
25.1 19.8
29.1 34.6
43.3 44.7
15.0 16.6 Municipal bonds
Bank bonds
Corporate bonds
Commercial papers
30,2% 51,2%% share of non-Treasury debt listed on Catalyst
Non-Treasury bond market – Catalyst
Over the four years of Catalyst, as at the end of Q3 2013:
Value of issues listed on Catalyst increased by more than 10 times to PLN 59.2 bn;
Number of non-Treasury bond issues increased by more than 10 times to 407 listed series
2009 2010 2011 2012 Q1 13 Q2 13 Q3 130
50
100
150
200
250
300
350
400
0
10
20
30
40
50
60
70
11 22 40 52 54 56 5935
97
208
325361
381407
Value of listed issues (PLN bn) Number of listed series
Growth of Poland’s non-Treasury debt market (value of issue at the end of a period, PLN bn)
Catalyst (non-Treasury debt)
Source: Fitch Polska, WSE
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WSE Listing Requirements – stock market
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 WSE Main List:
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 Animator.
General listing requirements on the NewConnect:
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Credit Suisse Securities (Europe) Ltd, JP Morgan Securities Ltd, Goldman Sachs International, HSBC BANK, Merrill Lynch International, Liquidnet Europe, UBS Ltd, Wedbush Europe Ltd., Morgan Stanley & Co International Plc, VTB Capital Plc
Raiffeisen Centrobank AG
IP Intercapital Markets AD
Concorde Securities Ltd, Equilor Investment Renaissance Securities, Dragon Capital, SIB (Cyprus) Ltd.
ING Bank NV Wood & Company, Cyrrus, Fio Banka
Orion Securities Societe Generale SA, BNP Paribas Arbitrage SNC
Neonet Securities AB UniCredit Bank AG
32 local + 26 foreign brokerage houses operating on the WSE (exchange members) from 11 countries
WSE – entry ticket for full access to capital markets
Why Warsaw Stock Exchange?
Favorable macroeconomic conditions – forecast of Polish GDP growth in 2013 equals 1.8 %, while EU27
average is 0.4%
Presence on the largest market in the CEE Region
Access to wide base of large institutional and retail investors
Recognition by international financial community operating on the WSE
Receptive to foreign issuers – large companies and SMEs
Availability of other means of financing – debt instruments (Catalyst)
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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.
Contact
Warsaw Stock Exchangeul. Książęca 4, 00-498 Warsaw, Poland
tel. (48) 22 628 32 32 www.wse.com.pl
gpw@gpw.pl