Oslo Børs VPS Holding ASA 3rd Quarter 2011 · •MiFID II and MiFIR - More level playing field and...
27
Transcript of Oslo Børs VPS Holding ASA 3rd Quarter 2011 · •MiFID II and MiFIR - More level playing field and...
Oslo Børs VPS Holding ASA 3rd Quarter 2011
3 November 2011
3rd quarter at a glance
• Satisfactory development
in Q311
• Somewhat higher level of
market activity compared
to Q310
• Continued competition for
market share
• Revenues up 6% to
NOK 223 million from Q310
• EBITDA up 13% to NOK 121
million from Q310
• EPS NOK 1.40 – up 11% from
Q310
3
0 %
10 %
20 %
30 %
40 %
50 %
60 %
70 %
0
20
40
60
80
100
120
140
160
180
Q409 Q110 Q210 Q310 Q410 Q111 Q211 Q311
NO
K m
illion
EBITDA and EBITDA-margin
(before amortisations and write-downs)
EBITDA EBITDA margin
0
50
100
150
200
250
300
Q409 Q110 Q210 Q310 Q410 Q111 Q211 Q311
NO
K m
illion
Revenues
Increased revenues in all segments
•Increased revenues in all
segments compared to Q310
•Operating expenses in line
with Q310
4
128 124
92 102
109
123
103 102
10 13
15
16 17
16
16 16
0
20
40
60
80
100
120
140
160
Q409 Q110 Q210 Q310 Q410 Q111 Q211 Q311
NO
K m
illion
Operating expenses before amortisations and
write-downs
Operating expenses before depreciations Depreciations
109 114 116 107 117 122 113 112
120 126
133
89
98 103
108 94
7 6
8
15
21 20 17
17
9 6
7
6
7 6
6
6
0
50
100
150
200
250
300
Q409 Q110 Q210 Q310 Q410 Q111 Q211 Q311
NO
K m
illion
Revenues per segment
Oslo Børs VPS Oslo Clearing Oslo Market Solutions
Oslo Børs – primary market
• Fixed fees from issuers up 15% from
Q310
• Fixed fees driven by number of
issuers and market capitalisation
January 1
• High market cap. 1 Jan 2011
• Steady increase in number of listed
bonds and certificates
5
0
5 000
10 000
15 000
20 000
25 000
30 000
35 000
Q4 2009
Q1 2010
Q2 2010
Q3 2010
Q4 2010
Q1 2011
Q2 2011
Q3 2011
NO
K 1
000
Revenues primary market
Fixed fees- issuers Prospectus and admission fees
1000
1100
1200
1300
1400
1500
1600
1700
1800
1900
2000
200
205
210
215
220
225
230
235
240
245
Q409 Q110 Q210 Q310 Q410 Q111 Q211 Q311
Mark
et
cap (
NO
K b
ill)
No. of is
suers
Number of and market capitalisation of issuers of equity
No. of issuers Market cap (NOK bill)
950
1000
1050
1100
1150
1200
100
300
500
700
900
1100
1300
Q409 Q110 Q210 Q310 Q410 Q111 Q211 Q311
Number and market value of listed bonds and certificates
Number Value (NOK bill)
Valu
e (
NO
K b
ill)
No. of bonds
Oslo Børs – primary market
• Prospectus and admission fees
up 3% from Q310
• Revenues driven by number
and size of IPOs and issues
• Four listings and six delistings
in Q311
• Moderate level of issues in
Q311
• Continued focus on strong
sector initiatives
- 7 foreign issuers
- 12 issuers within strong
sectors
6
0
1
2
3
4
5
6
7
8
9
Q409 Q110 Q210 Q310 Q410 Q111 Q211 Q311
New listings
0
5 000
10 000
15 000
20 000
25 000
30 000
Q409 Q110 Q210 Q310 Q410 Q111 Q211 Q311
NO
K m
illion
Issues of equity
Oslo Børs – secondary market
• Positive effect on equity
trading activity of market
turmoil in Q311
• Revenues up 11% from Q310
• Equity revenues driven by
trading activity and members
choice of fee structures
• Derivatives revenues driven
by activity level and
composition of derivatives
trading
- Activity in line with Q310
- Revenues up 24% from Q310
7
-
5 000
10 000
15 000
20 000
25 000
30 000
35 000
40 000
Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011
NO
K 1
000
Revenues secondary market
Equities trading Derivatives trading Fixed Income trading
3 000
3 500
4 000
4 500
5 000
5 500
6 000
6 500
7 000
200
250
300
350
400
450
500
550
Q409 Q110 Q210 Q310 Q410 Q111 Q211 Q311
Equities - value of turnover and number of transactions
Value (NOK bill) Trans (1000)
Valu
e
Tra
ns
Market share - equities trading
• On-exchange
trading - OBX-index
- Between 70% and
75% in the period
• Increased use of
Smart Order
Routers
• Increased
internalisation in
Europe
8
40 %
50 %
60 %
70 %
80 %
90 %
100 %
02.0
1.2
009
02.0
3.2
009
02.0
5.2
009
02.0
7.2
009
02.0
9.2
009
02.1
1.2
009
02.0
1.2
010
02.0
3.2
010
02.0
5.2
010
02.0
7.2
010
02.0
9.2
010
02.1
1.2
010
02.0
1.2
011
02.0
3.2
011
02.0
5.2
011
02.0
7.2
011
02.0
9.2
011
Oslo Børs
København
Stockholm
Helsinki
Frankfurt
Paris
London
Sources:www.batstrading.co.uk
Key activities to increase market share
• Continous dialogue with customers
• North Sea Dark Pool
- Execution of non-displayed block orders
in a fully regulated exchange
environment
- Attract Dark Pool Volume
• Millennium to be implemented
- Owned and used by London Stock
Exchange Group
- One of the world’s fastest trading system
- A flexible system
- Attract new members and trading volume
• Contionous development of
microstructure
- marketplace rules, pricing structure,
technology, networks and products
• Efficient post trade
- Interoperability and T2S
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Oslo Børs – market data
• Revenues in line with Q310
• Revenues primarily driven
by number of professional
end users of data from Oslo
Børs
• Professional users in line
with Q310
• Increase in private users
• One-off items in Q111
- Customer audits
10
31 000
32 000
33 000
34 000
35 000
36 000
37 000
38 000
39 000
Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011
NO
K 1
000
Revenues market data
44 000
46 000
48 000
50 000
52 000
54 000
56 000
Q409 Q110 Q210 Q310 Q410 Q111 Q211 Q311
Market data - number of end-users
Oslo Clearing
• Revenues up 12% from Q310
• 45% increase in equity transactions
from Q310
• Derivatives activity in line with Q310
• Clearing revenues driven by
• number of equity transactions
• activity level and composition of derivatives trading
• National FSAs approval of
interoperability agreements
• Opening up for implementation of the first interoperability agreements in 1st half 2012
• Oslo Clearing is reviewing its timeline for interoperability
• Magica – common margin model for
equities and derivatives
11
0
5000
10000
15000
20000
25000
Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011
NO
K 1
000
Revenues clearing
Equities clearing Derivatives clearing
10 000
20 000
30 000
40 000
50 000
60 000
70 000
80 000
90 000
500
1 000
1 500
2 000
2 500
3 000
3 500
4 000
4 500
Q409 Q110 Q210 Q310 Q410 Q111 Q211 Q311
Derivatives - number of standardised contracts and value of turnover
Contracts (1000) Turnover (MNOK)
Contr
acts
c
Turn
over
VPS – investor products
• Revenues up 13% from
Q310
• Revenues primarily driven
by number of VPS accounts
and market value of
holdings January 1
- Positive effect of high market
values January 1 2011
12
0
5 000
10 000
15 000
20 000
25 000
30 000
Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011
NO
K 1
000
Revenues investor products
3000
3200
3400
3600
3800
4000
4200
1 300
1 350
1 400
1 450
1 500
1 550
1 600
1 650
1 700
1 750
Q409 Q110 Q210 Q310 Q410 Q111 Q211 Q311
Number of investors and market value of holdings
VPS accounts (1000) Holdings (NOK bill)
VPS A
ccounts
Hold
ings
VPS – issuer products
• Revenues down 2% from Q310
• Revenues driven by number of
issuers and level and
composition of corporate
activity
- AGM-season in Q2
- Public offerings in Statoil Fuel
& Retail and Gjensidige in
Q410
• Value added products
- AGM-services
- Stock purchase programs
- Nominee-ID
13
0
5 000
10 000
15 000
20 000
25 000
30 000
35 000
40 000
Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011
Revenues issuer products
-
500
1 000
1 500
2 000
2 500
Q409 Q110 Q210 Q310 Q410 Q111 Q211 Q311
Number of companies and bond issues registered
Companies Bond issues
VPS – settlement products
• Revenues up 13% from Q310
• Revenues driven by number of
participants and number of
settlement transactions
• Implementation of Central
CounterParty (CCP) for
equities in June 2010
• Target2Securities (T2S)
expected to be implemented in
2015
- Draft agreements expected
within year-end 2011
- ECB expects signing in Q212
14
0
10 000
20 000
30 000
40 000
50 000
60 000
Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011
NO
K 1
000
Revenues settlement products
0
2 000
4 000
6 000
8 000
10 000
12 000
14 000
Q409 Q110 Q210 Q310 Q410 Q111 Q211 Q311
Number of trade transactions processed in VPS (1000)
VPS – fund products
• Revenues up 3% from
Q310
• Reduction in volumes in
2012
• Revenues primarily driven
by assets under
management and number
of transactions
• Development of new fund
system according to plan
- considering further
activities
15
0
5 000
10 000
15 000
20 000
25 000
Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011
NO
K 1
000
Revenues fund products
1300
1350
1400
1450
1500
1550
1600
1650
0
100
200
300
400
500
Q409 Q110 Q210 Q310 Q410 Q111 Q211 Q311
Asset under management and number of transactions
AUM (NOK bill) Transactions (1000)
AU
M (
NO
K b
ill)
Tra
nsaction (
1000)
Group operating expenses
• Increase in underlying
operating expenses of NOK
3 million in both Q3 and
YTD
- Increase due to
modernisation of IT at VPS
• Operating expenses in 2012
expected to increase
- Millennium project
- Modernisation of IT at VPS
16
112 115
3 6
75
85
95
105
115
125
Q310 Q311
Underlying operating expenses
Change in depreciations and capitalisastion of internal resources
Restructuring cost
NO
K m
illion
353 356
14 20 6
-10 -25
0 25 50 75
100 125 150 175 200 225 250 275 300 325 350 375 400
YTD 10 YTD 11
Fund project
Restructuring cost
Change in
depreciations and
capitalisastion of
internal resources
Underlying
operating expenses
NO
K m
illion
European regulation - implications
• MiFID II and MiFIR
- More level playing field and increased transparency
• EMIR
- Opportunity for CCPs in mandatory clearing
- Requirements for CCPs – organisation, capital and access and
interoperability
• CSD-legislation
- Increased competition – opportunity and threat
• Financial transactions tax?
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Summary
• Satisfactory development in Q3
- Revenues up 6%
- EBITDA up 13%
• Focus forward
- Attract new listings/registrations
and members
- Increased sale to existing
customers
- Strengthen competitive position in
secondary market
- Trading, clearing and settlement
- Successful execution of projects
- Millennium, Magica, Fund project, modernisation of VPS IT
- Consider opportunities to increase
scale in post trade, e.g. share
technology
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Appendix
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P&L 3rd Quarter 3rd Quarter Change 30. sep. 30. sep. Change
2011 2010 in % 2011 2010 in %
Operating revenues 223 110 209 836 6 % 703 239 709 790 -1 %
Operating expenses
Capitalisation of internal resources -2 252 -3 880 -7 248 -16 743
Salary and other personnel expenses 62 547 67 414 200 719 215 263
Other operating expenses 41 646 38 911 134 639 120 309
Depreciations 16 189 16 020 48 372 43 986
Operating expenses before amortisations
and write-downs 118 130 118 466 0 % 376 482 362 815 4 %
Operating profit before amortisations
and write-downs 104 980 91 370 15 % 326 757 346 975 -6 %
Amortisations 27 265 20 601 81 796 61 803
Write-downs 0 0 0 0
Total operating expenses 145 395 139 067 5 % 458 278 424 618 8 %
Operating profit 77 715 70 769 10 % 244 961 285 172 -14 %
Net financial items 6 087 5 014 18 318 16 915
Ordinary pre-tax profit 83 802 75 783 263 279 302 087
Tax 23 508 21 260 73 852 84 554
Earnings for the period 60 294 54 523 11 % 189 427 217 533 -13 %
Actuarial gains/losses defined benefit pension plans 0 0 0 0
Tax-effect 0 0 0 0
Total comprehensive income 60 294 54 523 11 % 189 427 217 533 -13 %
Earnings per share (NOK) 1,40 1,27 11 % 4,40 5,06 -13 %
Diluted earnings per share (NOK) 1,40 1,27 11 % 4,40 5,06 -13 %
21
Breakdown revenues – Oslo Børs segment Revenues per area Q3 2011 Q3 2010 30.09.2011 30.09.2010 2010
Equity Markets 60 848 56 609 186 336 183 813 249 357
Fixed Income Markets 7 816 7 015 23 056 21 402 30 112
Derivatives Markets 7 903 6 386 25 857 20 574 27 534
Financial Market data 33 922 33 749 105 553 102 768 136 901
Other 1 552 2 983 6 044 8 366 9 656
Total Oslo Børs 112 041 106 742 346 846 336 924 453 560
Revenues per category Q3 2011 Q3 2010 30.09.2011 30.09.2010 2010
Fixed fees- issuers 20 677 17 998 60 989 53 166 72 606
Fixed fees - members 15 210 15 610 46 020 46 430 61 383
Trading fees 32 447 28 664 101 739 99 193 131 359
Prospectus and admission fees 7 001 6 781 22 880 24 353 37 313
Financial market data 33 922 33 749 105 553 102 768 136 901
Other income 2 785 3 940 9 666 11 013 13 998
Total Oslo Børs 112 041 106 742 346 846 336 924 453 560
22
Breakdown revenues – VPS segment
VPS Q3 2011 Q3 2010 30.09.2011 30.09.2010 2010
Investor products 22 951 20 340 73 425 64 896 85 790
Issuer products 25 201 25 590 88 055 84 400 114 102
Settlement products 25 186 22 314 76 227 131 506 156 747
Fund products 18 124 17 601 58 232 53 513 71 316
Other revenues 2 598 3 603 9 215 13 603 17 545
Total VPS 94 060 89 449 305 154 347 918 445 500
23
Balance sheet 30. sep. 30. sep.
2011 2010 2010
Fixed assets
Intangible assets 902 617 1 023 140 993 558
Tangible assets 56 199 66 672 63 913
Financial fixed assets 149 473 125 731 113 170
Current assets
Market value of outstanding derivatives positions 908 405 750 305 792 828
Receivables 86 474 100 296 104 519
Investments 4 982 9 901 14 832
Cash and cash equivalents 816 836 788 200 898 726
Assets 2 924 986 2 864 245 2 981 547
Equity 1 471 606 1 571 767 1 626 019
Liabilities
Pension liabilities 194 888 188 793 184 366
Deferred tax liabilities 83 014 111 687 105 920
Cash collateral 32 451 15 897 28 673
Market value of outstanding derivatives positions 908 405 750 305 792 828
Current liabilities 234 622 225 796 243 741
Equity and liabilities 2 924 986 2 864 245 2 981 547
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Cash flow 3rd Quarter 3rd Quarter 30. sep. 30. sep.
2011 2010 2011 2010
Cash flow from
- operational activities 98 453 116 835 295 574 280 908
- investment activities -27 512 -5 728 -32 643 -54 229
- financing activities -260 -165 -344 821 -344 156
Cash and cash equivalents at
period's start 746 155 677 258 898 726 905 677
Change in cash and cash equivalents 70 681 110 942 -81 890 -117 477
Cash and cash equivalents at
period's end 816 836 788 200 816 836 788 200
Cash flow per share (NOK) 1,64 2,58 -1,90 -2,73
25
Equity
3rd Quarter 3rd Quarter 30. sep. 30. sep.
2011 2010 2011 2010
Equity at period's start 1 411 311 1 517 612 1 626 019 1 698 425
Total comprehensive income 60 294 54 523 189 427 217 533
Dividends 0 0 -343 838 -343 825
Purchase of own shares 0 -367 0 -367
Acturial gains/losses in the period 0 0 0 0
Equity at period's end 1 471 606 1 571 767 1 471 606 1 571 767
Equity ratio 50 % 55 % 50 % 55 %
Share price
26
0
20
40
60
80
100
120
140
160
28.0
5.2
001
31.0
5.2
002
02.0
6.2
003
03.0
6.2
004
01.0
6.2
005
29.0
5.2
006
29.0
5.2
007
28.0
5.2
008
28.0
5.2
009
31.0
5.2
010
25.0
5.2
011
Price (
28.0
5.2
001 =
19)
Oslo Børs VPS Holding VS OSEBX Priceindex
Oslo Børs VPS Holding OSEBXPR (norm.)
27
Largest shareholders 13 October 2011 Name Nationality Holding Holding
in numbers in percent
1. VITAL FORSIKRING ASA NOR 8 522 045 19,82 %
2. KLP FORSIKRING NOR 4 300 200 10,00 %
3. PARETO AS NOR 3 662 230 8,52 %
4. ORKLA ASA NOR 3 510 700 8,16 %
5. NBI HF ICELAND (NOM) ISL 2 812 930 6,54 %
6. ARENDALS FOSSEKOMPANI NOR 1 996 000 4,64 %
7. NORSK HYDROS PENSJONSKASSE NOR 1 900 000 4,42 %
8. GOLDMAN SACHS INT (NOM) GBR 1 392 697 3,24 %
9. STATE STREET BANK (NOM) USA 1 074 835 2,50 %
10. MSF-MUTUAL USA 911 000 2,12 %
11. JP MORGAN CHASE BANK (NOM) GBR 725 700 1,69 %
12. NORDEA NORDIC SMALL FIN 718 841 1,67 %
13. MUST INVEST AS NOR 708 520 1,65 %
14. CITIBANK N.A. NEW YORK USA 678 666 1,58 %
15. JP MORGAN CLEARING (NOM) USA 664 798 1,55 %
16. SUNDT AS NOR 657 500 1,53 %
17. FRANKLIN TEMPLETON (NOM) LUX 622 000 1,45 %
18. STATE STREET BANK (NOM) USA 447 895 1,04 %
19. CLEARSTREAM BANKING (NOM) LUX 432 100 1,00 %
20. MSF-MUTUAL EUROPE USA 340 000 0,79 %
Sum 20 largest 36.078.657 83,91 %
Total number of shares 43.004.000 100,00 %
