Oslo Børs VPS Holding ASA 1st Quarter 212 26 April 212
NOK million NOK million 1st quarter at a glance Continued good level of activity in the fixed income market Challenging conditions in the primary and secondary equities and derivatives market 3 25 2 15 1 5 Revenues Oslo Børs VPS 1 1 1 1 11 11 11 11 12 Revenues down 9% to NOK 222 million from 11 EBITDA down 13% to NOK 12 million from 11 EPS NOK 1.15 down 17% from 11 18 16 14 12 1 8 6 4 2 Revenues EBITDA and EBITDA-margin Oslo Børs VPS 1 1 1 11 11 11 11 12 7 % 6 % 5 % 4 % 3 % 2 % 1 % % EBITDA EBITDA margin 3
NOK million NOK million Reduced revenues in most segments Reduced revenues in most segments compared to 11 Reduced operating expenses compared to 11 3 Revenues per segment 18 Operating expenses 25 2 15 7 8 133 6 15 89 7 21 98 6 2 13 6 17 18 6 6 5 17 15 16 94 97 15 16 14 12 1 8 3 33 35 41 41 41 48 39 1 6 4 97 16 111 126 16 14 119 122 5 116 17 117 122 113 112 17 15 2 1 1 1 11 11 11 11 12 Oslo Børs VPS Oslo Clearing Oslo Market Solutions 1 1 1 11 11 11 11 12 Operating expenses before capitalisastion, depreciation and amortisation Capitalisastion, depreciation and amortisation 4
NOK million NOK 1 Oslo Børs Revenues down 13% to NOK 15 million from 11 EBITDA down 2% to NOK 57 million from 11 15 1 5 Revenues Oslo Børs Reduced activity in equities Increased activity in fixed income instruments 212 Equity Markets Fixed Income Markets Derivatives Markets Financial Market data Other Implementation of Millennium in 12 9 8 7 6 5 4 3 2 1 EBITDA and EBITDA-margin Oslo Børs 1 1 1 11 11 11 11 12 8 % 7 % 6 % 5 % 4 % 3 % 2 % 1 % % EBITDA EBITDA margin 5
Number No. of bonds Value (NOK bill) Value No. of issuers Market cap (NOK bill) NOK 1 Oslo Børs primary market Fixed fees from issuers down 3% from 11 Fixed fees driven by number of issuers and market capitalisation January 1 Reduced market cap. 1 Jan 212 Steady increase in number of listed bonds and certificates 35 3 25 2 15 1 5 Fixed fees- issuers Revenues primary market Prospectus and admission fees 212 13 11 9 7 5 3 1 Number and market value of listed bonds and certificates 1 1 1 11 11 11 11 12 125 12 115 11 15 1 245 24 235 23 225 22 215 21 25 2 Number of and market capitalisation of issuers of equity 1 1 1 11 11 11 11 12 2 19 18 17 16 15 14 13 12 11 1 Number Value (NOK bill) No. of issuers Market cap (NOK bill) 6
NOK million Oslo Børs primary market Prospectus and admission fees down 25% from 11 Revenues driven by number and size of IPOs and issues No new listings and three delistings in 12 Low level of issues in 12 9 8 7 6 5 4 3 2 1 New listings 1 1 1 11 11 11 11 12 No. of listings Issues of equity 3 25 2 15 1 5 1 1 1 11 11 11 11 12 Issues (NOK mill) 7
Value Trans NOK 1 Oslo Børs secondary market Low market activity in 12 Revenues down 19% from 11 Equity revenues driven by trading activity and members choice of fee structures Derivatives revenues driven by activity level and composition of derivatives trading - No of contracts down 2% from 11 - Revenues down 44% from 11 55 5 45 4 35 3 25 2 6 5 4 3 2 1 - Revenues secondary market Equities - value of turnover and number of transactions 1 1 1 11 11 11 11 12 Value (NOK bill) Trans (1) 212 Equities trading var Derivatives trading Fixed Income trading 7 6 5 6 5 5 5 4 5 4 3 5 3 8
Order book lit - market share Market share - equities trading Total YTD 212 On-exchange trading March 212 Nasdaq OMX Nordic 6 % Turquoise 3 % LSE Group 2 % Other 2 % 8 % 7 % 6 % CHI-X 13 % 5 % Markit BOAT 19 % Oslo Børs 55 % 4 % 3 % 2 % 46 % 55 % 62 % 67 % 1 % % London Stockholm Frankfurt Oslo Increased use of Smart Order Routers Increased internalisation in Europe (Source: Thomson Reuters) 9
Key market activities 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 12 - 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 Continous development of microstructure - marketplace rules, pricing structure, technology, networks and products Efficient post trade 1 - Interoperability
NOK 1 Oslo Børs market data Revenues down 13% from 11 39 37 Revenues market data Revenues primarily driven by number of professional end users of data from Oslo Børs Professional users down 7% from 11 35 33 31 29 27 25 58 Market data - number of end-users 212 Increase in private users 56 54 One-off items in 11 - Customer audits 52 5 48 46 1 1 1 11 11 11 11 12 11
Contractsc Turnover NOK 1 Oslo Clearing Revenues down 26% from 11 Shift from transaction to value based fee-schedules Derivatives activity down 2% from 11 Clearing revenues driven by trading activity and members choice of fee structures 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 212 Oslo Clearing is reviewing its timeline for interoperability Magica increased competetiveness in derivatives clearing 12 4 5 4 3 5 3 2 5 2 1 5 1 5 25 2 15 1 5 Revenues clearing Equities clearing Derivatives clearing Derivatives - number of standardised contracts and value of turnover 1 1 1 11 11 11 11 12 Contracts (1) Turnover (MNOK) 212 9 8 7 6 5 4 3 2 1
NOK million NOK 1 VPS Revenues up 2% to NOK 15 million from 11 EBITDA up 19% to NOK 45 million from 11 Increased revenues in all areas except fund Fund system delayed to June 212 14 12 1 8 6 4 2 Revenues VPS 212 Investor products Issuer products Settlement products Fund products Other revenues EBITDA and EBITDA-margin VPS 1 8 6 4 2 1 1 1 11 11 11 11 12 8 % 7 % 6 % 5 % 4 % 3 % 2 % 1 % % EBITDA EBITDA margin 13
NOK 1 VPS investor products Revenues up 4% from 11 3 25 Revenues investor products Revenues primarily driven by number of VPS accounts and market value of holdings January 1 2 15 1 5 212 1 75 1 7 1 65 1 6 1 55 1 5 1 45 1 4 1 35 1 3 Number of investor accounts and market value of holdings 1 1 1 11 11 11 11 12 VPS accounts (1) Holdings (NOK bill) 42 4 38 36 34 32 3 14
NOK 1 VPS issuer products Revenues up 9% from 11 Revenues driven by number and composition of issuers and level and composition of corporate activity 4 35 3 25 2 15 1 Revenues issuer products - AGM-season in Additional revenue from value added products - AGM-services - Stock purchase programs - Nominee-ID 5 2 5 2 1 5 1 Number of companies and bond issues registered 212 5-1 1 1 11 11 11 11 12 Companies Bond issues 15
NOK 1 VPS settlement products Revenues in level with 11 Revenues driven by number of participants and number of settlement transactions Implementation of Central CounterParty (CCP) for equities in June 6 5 4 3 2 1 Revenues settlement products 212 Number of trade transactions processed in VPS (1) 14 12 1 8 6 4 2 1 1 1 11 11 11 11 12 16
AUM (NOK bill) Transaction (1) NOK 1 VPS fund products Revenues down 5% from 11 Reduction in volumes in 212 Revenues primarily driven by assets under management and number of transactions Development of first part of new fund system delayed to June 212 - Program extended with development of new functionality 5 45 4 35 3 25 2 15 1 5 25 2 15 1 5 Revenues fund products Asset under management and number of transactions 1 1 1 11 11 11 11 12 AUM (NOK bill) Transactions (1) 212 165 16 155 15 145 14 135 17
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? 18
Largest shareholders 13 April 212 Name Nationality Holding Holding in numbers in percent 1. DNB LIV NOR 8 522 45 19,82 % 2. KLP FORSIKRING NOR 4 3 2 1, % 3. PARETO AS NOR 3 662 23 8,52 % 4. ORKLA ASA NOR 3 51 7 8,16 % 5. NBI HF ICELAND (NOM) ISL 2 812 93 6,54 % 6. JP MORGAN CLEARING (NOM) USA 2 74 75 4,82 % 7. ARENDALS FOSSEKOMPANI NOR 1 996 4,64 % 8. NORSK HYDROS PENSJONSKASSE NOR 1 9 4,42 % 9. STATE STREET BANK (NOM) USA 1 2 335 2,33 % 1. MSF-MUTUAL USA 911 2,12 % 11. JP MORGAN CHASE BANK (NOM) GBR 725 7 1,69 % 12. NORDEA NORDIC SMALL FIN 718 841 1,67 % 13. MUST INVEST AS NOR 78 52 1,65 % 14. CITIBANK N.A. NEW YORK (NOM) USA 67 566 1,56 % 15. SUNDT AS NOR 657 5 1,53 % 16. FRANKLIN TEMPLETON E LENDING ACCOUNT 2 LUX 622 1,45 % 17. STATE STREET BANK (NOM) USA 447 895 1,4 % 18. CLEARSTREAM BANKING (NOM) LUX 351 5,82 % 19. MSF-MUTUAL EUROPE USA 34,79 % 2. ELTEK HOLDING AS NOR 3,7 % Sum 2 largest 36.234.37 84,27 % Total number of shares 43.4. 1, % 19
Summary Revenues affected by reduced volumes on trading and listing Underlying operating costs somewhat below 11 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 2
Appendix
P&L 1st Quarter 1st Quarter Change 212 in % Operating revenues 221 828 243 4-9 % 921 894 Operating expenses Capitalisation of internal resources -1 742-2 676-9 16 Salary and other personnel expenses 73 53 77 856 272 84 Other operating expenses 46 256 47 67 181 828 Depreciations and write-downs 17 22 16 137 71 217 Amortisations 23 441 27 265 19 61 Operating expenses before capitalisation of internal resources, depreciations and amortisations 119 759 125 526-5 % Total operating expenses 158 66 166 252-5 % 625 894 EBITDA 12 69 117 514-13 % Operating profit (EBIT) 63 168 76 788-18 % 296 1 Net financial items 5 656 6 48 24 817 Ordinary pre-tax profit 68 824 82 836 32 818 Tax 19 311 23 231 87 773 Earnings for the period 49 513 59 65-17 % 233 45 Actuarial gains/losses defined benefit pension plans -19 135 Tax-effect 5 358 Total comprehensive income 49 513 59 65-17 % 219 268 Earnings per share (NOK) 1,15 1,39-17 % 5,42 Diluted earnings per share (NOK) 1,15 1,39-17 % 5,42 22
Breakdown revenues Oslo Børs segment Revenues per area 212 Equity Markets 55 412 64 117 243 177 Fixed Income Markets 8 117 7 612 31 152 Derivatives Markets 5 517 9 858 32 675 Financial Market data 32 981 37 755 138 648 Other 3 197 2 3 8 687 Total Oslo Børs 15 224 121 641 454 339 Revenues per category 212 Fixed fees- issuers 19 626 2 276 82 41 Trading fees 43 578 53 64 192 577 Prospectus and admission fees 4 853 6 469 27 485 Financial market data 32 981 37 755 138 648 Other income 4 186 3 52 13 589 Total Oslo Børs 15 224 121 641 454 339 23
Breakdown revenues VPS segment VPS 212 Investor products 27 242 26 136 97 124 Issuer products 27 85 25 612 116 18 Settlement products 25 89 25 885 1 883 Fund products 2 821 21 911 75 797 Other revenues 2 943 3 52 11 949 Total VPS 14 71 13 64 41 933 24
Balance sheet 31. March 31. March 31. Dec 212 Fixed assets IT-systems 324 587 429 749 345 997 Customer relations 42 588 58 8 46 461 Registrations 1 1 1 Goodwill 464 233 464 233 464 233 Deferred tax assets 88 654 73 483 88 77 Tangible assets 48 19 62 41 51 337 Financial fixed assets 75 285 45 738 75 389 Current assets Market value of outstanding derivatives positions 555 318 912 85 38 55 Receivables 94 585 126 285 81 555 Investments - 14 82 - Cash and cash equivalents 1 1 212 1 41 996 892 87 Assets 2 713 481 3 239 258 2 436 667 Equity Contributed equity 1 55 834 1 685 623 1 51 325 Earned equity - - - Total equity 1 55 834 1 685 623 1 51 325 Liabilities Pension liabilities 22 147 186 972 218 698 Deferred tax liabilities 68 816 98 285 75 379 Cash collateral - 3 723 33 96 Market value of outstanding derivatives positions 555 318 912 85 38 55 Current liabilities 318 366 324 85 228 114 25 Equity and liabilities 2 713 481 3 239 258 2 436 667
Cash flow 1st Quarter 1st Quarter 212 Cash flow from - operational activities 123 729 147 226 368 373 - investment activities -6 86-3 697-28 981 - financing activities -31-259 -345 247 Cash and cash equivalents at period's start 892 87 898 726 898 726 Change in cash and cash equivalents 117 342 143 27-5 856 Cash and cash equivalents at period's end 1 1 212 1 41 996 892 87 Cash flow per share (NOK) 2,73 3,33 -,14 26
Equity 1st Quarter 1st Quarter 2 12 Equity at period's start 1 51 325 1 626 19 1 626 19 Total comprehensive income 49 513 59 65 233 45 Dividends -343 838 Purchase of own shares -122 Acturial gains/losses in the period -13 777 Equity at period's end 1 55 834 1 685 623 1 51 325 Equity ratio 57 % 52 % 62 % 27
7.1.29 7.2.29 7.3.29 7.4.29 7.5.29 7.6.29 7.7.29 7.8.29 7.9.29 7.1.29 7.11.29 7.12.29 7.1. 7.2. 7.3. 7.4. 7.5. 7.6. 7.7. 7.8. 7.9. 7.1. 7.11. 7.12. 7.1. 7.2. 7.3. 7.4. 7.5. 7.6. 7.7. 7.8. 7.9. 7.1. 7.11. 7.12. 7.1.212 7.2.212 7.3.212 7.4.212 Price Share price Oslo Børs VPS Holding ASA 1 9 8 7 6 5 4 3 2 1 28