Flow Traders |
AMSTERDAM CLUJ HONG KONG LONDON NEW YORK SINGAPORE
Annual Shareholders Meeting Flow Traders N.V.
8 May 2019
Annual Shareholders Meeting Flow Traders N.V. 8 May 2019 Flow - - PowerPoint PPT Presentation
Flow Traders | AMSTERDAM CLUJ HONG KONG LONDON NEW YORK SINGAPORE Annual Shareholders Meeting Flow Traders N.V. 8 May 2019 Flow Traders | Such forward-looking statements speak only as of the date on which they are made.
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8 May 2019
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AGM 2019 2 This presentation contains “forward-looking statements” which relate to, without limitation, our plans,
which we operate. These forward-looking statements are characterized by words such as “anticipate”, “estimate”, “believe”, “intend”, “plan”, “predict”, “may”, “will”, “would”, “should”, “continue”, “expect” and similar expressions, but these expressions are not the exclusive means of identifying such
achievements to be materially different from any future circumstances, results, performance or achievements expressed or implied by such statements. Such factors include, among other things, reduced levels of overall trading volume and lower margins; dependence upon prime brokers, ETP issuers, trading counterparties, CCPs and custodians; losing access to an important exchange or other trading venue; occurrence of a systemic market event; incurrence of trading losses; failures or disruption of our trading platform or our or third-party technical infrastructure; risks associated with
processes and strategies; intense competition in our business; dependence on continued access to sources of liquidity; capacity constraints of computer and communications systems; dependence on third-party software, infrastructure or availability of certain software systems; damage to our reputation and the reputation of our industry; loss of key staff or failure to attract and retain other highly skilled professionals; changes to applicable regulatory requirements; compliance with applicable laws and regulatory requirements, including those specific to our industry; enhanced media and regulatory attention and its impact upon public perception of us or of companies in our industry; and other risks. The forward-looking statements contained in this document are based on assumptions, beliefs and expectations that we have made in light of our experience in the industry, as well as our perceptions of historical trends, current conditions, expected future developments and other factors we believe are appropriate under the circumstances. Although we believe that the expectations reflected in such forward-looking statements are reasonable at this time, we cannot assure you that such expectations will prove to be correct. Given the risks and uncertainties associated with forward-looking statements, you are cautioned not to place undue reliance on such forward-looking statements. Such forward-looking statements speak only as of the date on which they are made. Accordingly,
listed, we do not undertake any obligation to update or revise any of them, whether as a result of new information, future events or otherwise. Any forward-looking statements should not be regarded as a representation or warranty by us or any other person with respect to the achievement of the results set out in such statements or that the underlying assumptions used will in fact be the case. If any of these risks and uncertainties materialize, or if any of our underlying assumptions prove to be incorrect,
herein as anticipated, believed, estimated or expected. Statements regarding the market, industry and trends, including the FX market and development in ETP Assets under Management in certain markets, ETP value traded in certain markets and Flow Traders’ competitive position are based on outside data and sources.
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Flow Traders’ disciplined execution on its growth strategy resulted in more products traded, more counterparties and more venues connected to
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7.98 7.42 9.57 7.97 9.11 7.09 6.24 6.58 5.43 5.37 4.53 4.67 6.66 5.23 4.32 7.99
2 4 6 8 10 12 14 16 18
1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18
Overall EMEA Americas APAC APAC ex China 5,109 4,901 5,974 5,317 6,065 5,053 4,708 5,464 5,005 4,951 4,250 4,730 6,540 5,543 4,874 8,454
2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 € tn
GENERAL EVENTS IMPACTING GLOBAL MARKETS
market sentiment in Europe
global sentiments in 2H18
government shutdown
causing volatility to increase in 4Q18
ETP Value Traded development ETP AuM development on Half Year basis ETP Velocity
DEVELOPMENTS ETP MARKET
reaching € 4.19tn end 2018 as Equity ETPs saw
2018, with 4Q18 being highest value traded since begin 2015
realized in the US
in 4Q18
Realized market volatility on daily basis (*)
(*): Based on realized volatility in SPY, MSEF, NKY and MXEF. Source Bloomberg 1,744 1,918 2,079 2,642 2,667 2,851 3,322 3,604 3,962 4,237 4,192
1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000
Dec 2013 Jun 2014 Dec 2014 Jun 2015 Dec 2015 Jun 2016 Dec 2016 Jun 2017 Dec 2017 Jun 2018 Dec 2018
€ tn Equity Fixed Income Commodities Other
20 30 40 50 1/17 2/17 3/17 4/17 5/17 6/17 7/17 8/17 9/17 10/17 11/17 12/17 1/18 2/18 3/18 4/18 5/18 6/18 7/18 8/18 9/18 10/18 11/18
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grow, consolidating our number 1 position
market
€474bn, 13% higher YoY, comparing to a 6% increase in market ETP Value Traded YoY
counterparties
allowing for further growth of value traded in FX
London and is prepared for all Brexit scenarios
2% in 2018 as trading circumstances improved and Flow Traders grew its presence
€391bn, which is a 60% increase YoY, comparing to a 39% increase in market ETP Value Traded YoY
to above 110, OTC Value Traded in ETPs continued to grow every quarter
2018, supported by the offices in Hong Kong and Singapore
reached €35bn, which is a 51% increase YoY, comparing to a 30% increase in market ETP Value Traded (ex China) YoY
Eurex also during Asian trading hours
and won 4 awards at the HKEX Awards end 2018
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Fixed expenses per employee 2018 2017 2016
89,327 87,463 88,989
Fixed
expenses 2018 2017 2016
+7% +16% +11%
Fixed Technology expenses 2018 2017 2016
+7% +27%
FTE 2018 2017 2016
436 (+11%) 394 (+16%) 341
Consolidated In milllions of euro FY18 FY17 FY16 Net Trading Income 383.4 166.0 250.0 Employee expenses (fixed) 36.1 32.2 26.5 Technology expenses 35.4 37.3 34.8 Other expenses 19.3 15.2 12.4 Fixed operational expenses 90.7 84.7 73.6 Employee expenses (variable) 92.9 25.2 57.7 Total operational expenses 183.6 109.9 131.3 EBITDA 199.8 56.0 118.7 Depreciation / Amortisation 9.0 7.2 6.3 Write offs tangible assets 0.3 0.5 2.8 (Profit) or loss on subsidiaries (3.4) (0.1) 0.2 Profit Before Tax 193.9 48.4 109.4 Tax 33.0 8.8 17.5 Net Profit 160.9 39.6 91.9 EPS (in €) 3.46 0.85 1.98 EBITDA margin (in %) 52% 34% 47%
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Balance sheet:
conducts
bonus as the variable compensation is tied to the operational profit
time
reality for any operational losses Condensed Balance Sheet (in €m) Assets 31 Dec 2018 31 Dec 2017 31 Dec 2016 Trading capital 424.7 271.8 343.3 Property, equip. and intang. assets 30.2 28.8 23.2 Other receivables 23.3 21.1 25.9 Total assets 478.1 321.8 392.3 Equity & liabilities Bonus liabilities 97.8 49.7 98.9 Other liabilities 39.3 18.0 23.3 Total liabilities 137.0 67.7 122.2 Total equity 341.1 254.1 270.1
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91.2 143.3 172.7 304.7 250.0 166.0 383.4 50 100 150 200 250 300 350 2012 2013 2014 2015 2016 2017 2018
Net Trading Income (€m) Net Income and Dividends (€m) EBITDA (€m)
35.2 65.9 84.2 156.7 118.7 56 199.8 20 40 60 80 100 120 140 160 180 2012 2013 2014 2015 (adj) 2016 2017 2018 16.8 41.8 43.4 69.8 58.2 30.2 109.4 11.0 11.8 24.5 27.5 32.9 9.4 51.5 27.8 53.6 67.9 97.3 91.1 39.6 160.9 0.0 50.0 100.0 150.0 200.0 250.0 300.0 2012 2013 2014 2015 2016 2017 2018 Dividend Declared Retained Earnings
+23% top-line CAGR since 2012
CAGR
NTI growth and operating leverage driving EBITDA margin expansion Historically high dividend pay-out
+ 13 % pts EBITDA Margin 39% 52%
64%
Pay-out Ratio
60% 78% 72% 63% 76% 68%
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Flow Traders’ ETP Value Traded 1Q19:
€ 258.6 billion (-5% Q-o-Q)
Flow Traders’ non-ETP Value Traded 1Q19:
€ 738.1 billion (-9% Q-o-Q)
average in especially February and March as markets recovered from weak market sentiment, witnessed in 4Q18
invested in Exchange Traded Products (ETPs) at the end of 1Q19 reached €4.87 trillion, which is a 14% increase Q-o-Q
1Q19, with biggest swings noticed in the US
predominantly visible with sustained higher traded volumes on MTFs
employees (FCIP)
Market ETP Value Traded 1Q19:
€ 6.081 trillion (-28% Q-o-Q)
Global ETP AuM end 1Q19:
€ 4.875 trillion (+14% Q-o-Q)
EPS 1Q19:
€ 0.41
Flow Traders’ NTI 1Q19:
€ 63.1 million (-15% Q-o-Q)
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Asset class Products
Equity Fixed Income Commodities FX ETPs
Futures
Spot
FWD/NDF
n/a n/a
In progress Top coverage No coverage
Flow Traders’ current market coverage
Flow Traders’ future addressable market Flow Traders’ current addressable market Leveraging our scale and capabilities to diversify into new products & asset classes
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2380 2520 2900 3600 1000 2000 3000 4000 5000 6000 2015 2016 2017 2018
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550 694 790 1100 250 500 750 1000 1250 1500 1750 2000 2250 2500 2015 2016 2017 2018 95 98 110 161 50 100 150 200 250 2015 2016 2017 2018 91.2 143.3 172.7 304.7 250.0 166.0 383.0 50 100 150 200 250 300 350 400 450 2012 2013 2014 2015 2016 2017 2018
Counterparties Venues NTI Total value traded
>5000 >200 >2000
€m €bn
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Audit Committee Remuneration and Appointment Committee Risk Committee Trading and Technology Committee
Internal Audit External Audit Trading Risk and Mid-Office Legal and Compliance Finance and Tax HR and Recruitment Technology
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Strategy Risk Management Trading and Markets Succession Planning Management Board and Supervisory Board New legislation and regulation External Auditor and Internal Audit Function Senior Management Employees and Culture Evaluation and Governance
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► Scope ► Strategy ► Execution
Page 25
Page 27
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► Finance department ► Management Board ► Supervisory Board and Audit committee
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