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BURSA DE VALORI BUCURESTI SA - BVB

Preliminary financial results as of December 31, 2019

Release Date: 2/13/2020 8:30:04 AM

IRIS Code: 556FF

FINANCIAL RESULTS AS OF DECEMBER 31, 2019

Key events, 2019

Ø The BET index, including the most liquid companies with the exception of Financial Investment Companies (SIFs), ended the year at 9,977.3 points, very close to the 10,000 points threshold, recording an advance of 4.2% in Q4. This brought the full-year result to 35.12% growth

Ø The BET-Total Return (BET-TR), including the dividends of the BET companies, mirrored its counterpart in Q4 with 4.2% advance and witnessed an increase of 46.9% for the full year 2019

Ø At the end of 2019, the market value of all the companies listed on the Main Market of BVB reached RON 180.8bn, the equivalent of EUR 37.8bn

Ø The primary bond market broke a record with 10 new listing in Q4 2019. 5 listings took place on the main regulated market while the other half were done on the alternative platform. The 10 issuers raised in total RON 1.43 bn (EUR 300 mn)

Ø The total trading value on the regulated shares market, excluding offers, -3% from RON 9.68 bn to RON 9.38 bn

Ø Transactions with shares, excluding offers, accounts for 77% of the total traded value in 2019, respectively 68% in 2018

Ø The total traded value for all markets, including offers, -15%, from RON 14.225 bn to RON 12.155 bn, due to the decrease of offers on the main equity market with RON 1.48 bn

Ø In November 2019, the company CCP.RO Bucharest SA (CCP.RO) was incorporated, with a share capital of RON 79.80 mn, of which Bucharest Stock Exchange (BVB) holds 59.52% representing RON 47.50 mn. CCP.RO is considered a subsidiary within the BVB Group and has been included in the consolidated financial statements of BVB.

 

Evolution of financial performance, 2019 - consolidated results BVB Group

Ø The preliminary consolidated operating revenues of the Bucharest Stock Exchange (BVB) Group in 2019 were RON 34.96 mn, -12% compared to 2018 (2018: RON 39.82 mn), a decrease determined by the trading segment (BVB individual) as well as the registry segment - Central Depository (DC)

Ø Revenue from trading segment – (BVB), RON -4.57 mn (from RON 23.93 mn to RON 19.36 mn) as a result of the decrease of the total value of the “offers” transactions carried out on the BVB markets with impact of RON -3.78 mn in revenues

Ø The revenues related to the post-trading segment (DC) increased by 1% (from RON 10.11 mn to RON 10.25 mn) as a result of the advance of the revenues from the cross-border settlement services while the revenues related to the registry segment (DC) decreased by 12% (from RON 5.26 mn to RON 4.62 mn) as a base effect, considering the "one-off" revenues registered in the first half of 2018

Individual preliminary results:

Ø Revenue from trading – BVB Individual*, RON -4.57 mn (from RON 24.25 mn to RON 19.68 mn) as a result of the decrease of the total value of the “offers” transactions carried out on the BVB markets with impact of RON -3.78 mn in revenues

Ø DC Individual* revenues, -0.51mn in 2019 compared to 2018, from RON 15.48 mn to RON 14.97 mn

Ø The preliminary consolidated operating expenses - 2019, +1%, respectively RON 0.33 mn, from RON 30.94 mn to RON 31.27 mn mainly as a result of the advance of other operating expenses (mainly amortization and depreciation of fixed assets expenses and rent expenses), by 9% or RON 0.92 mn

Ø Preliminary operating expenses, BVB individual*, 2019, -2%, from RON 17.09 mn to RON 16.67 mn mainly due to the reduction of the expenses with the services provided by third parties (respectively of the expenses with consulting services)

Ø Preliminary operating expenses, DC individual*, 2019, +4%, from RON 13.37 mn to RON 13.93 mn mainly due to the advance of the other operating expenses with RON 0.32 mn, expenses being influenced by the reauthorization process according to the legal requests

 

Ø The preliminary consolidated operating profit of the BVB Group - 2019, -58%, from RON 8.88 mn to RON 3.70 mn, result of the combined effect of the decrease of the operating revenues by 12% and the increase of the operating expenses by 1%

Ø Preliminary operating profit, BVB individual* - 2019, -58%, from RON 7.16 mn to RON 3.01 mn, with 15% operating margin. This includes intra-group transactions (for trading segment values, excluding intra-group transactions - see Note 6 Segment reporting)

Ø Preliminary operating profit, DC individual* - 2019, -50%, from RON 2.10 mn to RON 1.05 mn, with 7% operating margin. This includes intra-group transactions (for post-trading and registry segments values, excluding intra-group transactions - see Note 6 Segment reporting)

 

Ø Preliminary net financial income - 2019, + 22%, from RON 3.63 mn to RON 4.42 mn, mainly determined by the advance of the unrealized exchange rate differences from the revaluation of the financial instruments in foreign currency that generated a gain of RON 1.06 mn vs. RON 0.68 mn in 2018, but also as a result of the sale of financial assets (government securities) that generated a gain of RON 0.54 mn

Ø Preliminary net financial income, BVB individual* - 2019, + 25% or RON 1.03 mn, from RON 4.03 mn to RON 5.06 mn, and includes the dividend income from the Central Depository of RON 1.38 mn. For the trading segment values, excluding dividend income from the Central Depository - see Note 6 Segment reporting

Ø Preliminary net financial income, DC individual* - 2019, + 53% or RON 0.28 mn, from RON 0.53 mn to RON 0.82 mn. For the post-trading and registry segment values ​​- see Note 6 Segment reporting

 

Ø The preliminary consolidated net profit of the BVB Group - 2019, -33%, from RON 10.19 mn to RON 6.83 mn, 78% being generated by the Group's trading segment

Ø Preliminary net profit, BVB individual* - 2019, -26%, from RON 9.49 mn to RON 7.01 mn, with 36% net margin. This includes intra-group transactions (for trading segment values, excluding intra-group transactions - see Note 6 Segment reporting)

Ø Preliminary net profit, DC individual* - 2019, -28%, from RON 2.27 mn to RON 1.64 mn, with 11% net margin. This includes intra-group transactions (for post-trading and registry segments values, excluding intra-group transactions - see Note 6 Segment reporting)

* including intra-group transactions

The Financial Report as of December 31, 2019 is available for shareholders, investors and general public as of February 13, 2020, 8:30AM local time. The printed version is available at BVB’s headquarters, located in Bucharest, 34-36 Carol I Blvd, 14th floor, district 2, and the online version is available on our website www.bvb.ro, in the “Investor relations/Financial figures/Financial statements” section, at http://www.bvb.ro/InvestorRelations/FinancialFigures/FinancialReports. The Financial Report is also attached to current announcement.

The conference call for presenting the financial results as of December 31, 2019 takes place on February 13, 2020, 16:00 local time. For joining the conference call, please contact us at ir@bvb.ro.

 



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