Bucharest Stock Exchange Presentation
2 www.bvb.ro
Operator of the leading Romanian cash, structured products & derivatives markets
Integrated Group: Trading, Clearing, Settlement and Registry Systems
Market cap of approx. EUR 36mn, cash equals 41% of the Market Cap
100% free-float, no major shareholder
Rich cash position, close to zero leverage
Stable dividend policy with 100% payout ratio, after legal reserves
Stock price close to historical lows, but with good perspectives in privatization process
Investment positives
3 www.bvb.ro
According to the current provisions of the law, BVB
shareholders may not own more than 5% of the total
voting rights (directly or indirectly).
The intention to acquire more than 5% should be
disclosed to the Stock Exchange and the market
Regulator
BVB Shareholder Structure
as of December 31, 2012
Central
Depository Cash Market
Clearing
Settlement
Registration
Bucharest Stock
Exchange
Cash & Derivatives
Trading
Corporate
Governance
Institute
52.5% 62.3% 69% 100%
Bucharest
Clearing House Derivatives Market
Clearing
Investors
Compensation
Fund
Romanian institutional
shareholders 71.27% International
Institutional shareholders
12.25%
Romanian private
individuals 16.28%
International private
individuals 0.20%
BVB Group
4 www.bvb.ro
Board of Governors
Lucian Anghel (BCR) President
Adrian Lupsan (SSIF Intercapital Invest) Vice-President
Dan Paul (Brokers’ Association) Vice-President
Robert Pana (SSIF Swiss Capital) Secretary General
Valerian Ionescu (BCR) Member
Matjaz Schroll (Franklin Templeton) Member
Narcisa Oprea (Schoenherr & Associates) Member
Stere Farmache (Alpha Bank) Member
Octavian Molnar (SSIF IFB Finwest) Member
5 www.bvb.ro
Strategic priorities
Support the successful closing of the state companies public offers 1.
List new companies on the Bucharest Stock Exchange and increase number of active investors 2.
Develop capabilities, products and services offered by the Bucharest Stock Exchange Group 3.
Improve the corporate governance and functioning of the Bucharest Stock Exchange as a Group 4.
Simplify and improve the regulations, reduce bureaucracy and apply international best practices 5.
Increase the visibility of the Bucharest Stock Exchange and of the issuers, along with increasing the
awareness of the important role that the Romanian capital market is playing 6.
Develop dialog between the Bucharest Stock Exchange and relevant institutions/authorities 7.
Increase the educational role of the Bucharest Stock Exchange 8.
6 www.bvb.ro
Main current projects
Facilitate market access:
For issuers
Review of the admission/maintenance set of criteria in the light of the macroeconomic and
investment realities
For investors
Review of the current Pricing Policy of the BVB, along with the other institutions with the
aim of creating a more competitive environment in terms of costs
Improve overall volumes and specific liquidity indicators:
New IPO/SPOs and listings (Government privatizations, private IPOs, enhance selected
RASDAQ issuers on the regulated market)
Range of securities – encourage straight/convertible bonds
Facilitate short-selling and buying on margin
Reorganize the BVB internally, as well as the remodeling of the entire BVB Group, with a view to
improving overall efficiency
Analysis of current market architecture and of potential opportunities, such as the Central
Counterparty
Originate the modernization of capital market institutions and legislation at all relevant levels
7 www.bvb.ro
Source: BVB, FESE
Exchange 2012 2013*
Athens Exchange 30.8% 10.6%
BVB 11.7% 9.9%
Bulgarian Stock
Exchange -21.1% 3.4%
CEESEG -
Vienna 22.4% 2.5%
CEESEG -
Budapest 7.6% 1.2%
Warsaw Stock
Exchange 25.4% -2.2%
CEESEG -
Ljubljana 0.8% -2.4%
CEESEG -
Prague -3.5% -8.4%
*Data for Jan-Feb 2013. Calculations in EUR terms
Market Cap change (yoy)
BVB in the region
4.8 5.2 13.3 15.9 37.6 25.8
82.4
131.9
CEESEG -Ljubljana
BulgarianStock
Exchange
BucharestStock
Exchange
CEESEG -Budapest
AthensExchange
CEESEG -Prague
CEESEG -Vienna
WarsawStock
Exchange
Domestic Market Cap (EURbn) - Main market (end-Feb13)
28 52 60 80 97 99
264 329
CEESEG -Prague
CEESEG -Budapest
CEESEG -Ljubljana
BucharestStock
Exchange
BulgarianStock
Exchange
CEESEG -Vienna
AthensExchange
WarsawStock
Exchange
Number of listed companies - Main market (end-Feb13)
1.2 1.7 5.2 22.6 31.1 66.7 71.7
265.2
CEESEG -Ljubljana
BulgarianStock
Exchange
BucharestStock
Exchange
CEESEG -Prague
CEESEG -Budapest
AthensExchange
CEESEG -Vienna
WarsawStock
Exchange
Main stock market turnover in Jan-Feb 2013 (EURmn/day)
8 www.bvb.ro
Symbol Company % of turnover
FP Fondul Proprietatea 42.7%
SNP OMV Petrom 11.9%
TLV Banca Transilvania 7.3%
SIF2 SIF Moldova 5.8%
SIF3 SIF Transilvania 5.7%
SIF5 SIF Oltenia 5.5%
BRD BRD Groupe Societe Generale 5.1%
SIF1 SIF Banat Crisana 3.9%
SIF2 SIF Muntenia 2.2%
TEL Transelectrica 1.8%
With the listing of Fondul Proprietatea, BVB achieved in
2011 one of the highest ADT growth rates in Europe. In 2012,
ADT declined on macro and political uncertainties.
The structured products segment was the most dynamic at
BVB: ADT tripled in 2011 yoy (from a small base) and
increased by 50% yoy in 2012.
Trading activity statistics
Most traded companies in 2013 (YTD)*
*until April 9, 2013
*until April 9, 2013
4.8 5.3
9.2
6.7 6.5
1.2
2.5
0.5
1.3
0.5
0.4
0.6
0.5
2009 2010 2011 2012 2013 YTD*
Shares/Fund Units Bonds Structured products
Average daily turnover (EURmn)
9 www.bvb.ro
Company Sector
Market Cap/
Fair value
(EURmn)
Gov.
stake
Stake of
the public
offering
Offering
value
(EURmn)
What is for sale Status
Transgaz1 Gas
transmission 534 73.5% 15% 68 - 92 Existing shares
Ongoing
4 – 16 April 2013
Nuclearelectrica2 Power
generation - 90.3% 10% >80 Capital increase
Expected until
end-May 2013
Romgaz3 Gas
production - 85.0% 15% >250 Existing shares
Expected until
end-October 2013
Electrica Electricity
distribution - 100% 105%5 >100
Capital increase
by 105%
Expected in Q4
2013
CE Oltenia Power
generation - 77.2% 12%5 >70
Capital increase
by 15.29%
Expected in Q4 2013 –
Q1 2014
CE Hunedoara Power
generation - 100% 105%5 TBD
Capital increase
by 105% Expected in H1 2014
Hidroelectrica4 Power
generation - 80.1% 10%5 >250
Capital increase
by 12.49%
Postponed after the
company exits
insolvency (expected by
mid-2013)
Source: Government, BVB
1. Consortium intermediating the offering: Raiffeisen Capital & Investment, Wood & Company Financial Services and BT Securities
2. Consortium intermediating the offering: Swiss Capital and BT Securities
3. Consortium intermediating the offering: Goldman Sachs, Erste Group Bank, BCR, Raiffeisen Capital & Investment and Intercapital Invest
4. Consortium intermediating the offering: Citigroup, Societe Generale, BRD-GSG and Intercapital Invest
5. Percent of the share capital before the share capital increase
Estimated Romanian privatization agenda
10 www.bvb.ro
Source: Investors Compensation Fund
The current compensation limit is EUR 20,000, in line with EU directives
More than 90% of investor accounts have portfolios below EUR 20,000 and are fully compensated
The number of investor accounts includes the total number of accounts on the Romanian capital market, regardless if
an investor has accounts with several brokers
Investor accounts on the local capital market
65,304
87,664 92,865 94,545
86,453 88,143 81,559
31.12.2006 31.12.2007 31.12.2008 31.12.2009 31.12.2010 31.12.2011 31.12.2012
Number of investor accounts on the local market
Fully compensated investors Ceiling compensated investors Excluded investors Total investors
11 www.bvb.ro
Cash Equity Market Sell Buy*
Jan 2006 - May 2007 15 bps 7bps
June 2007 - Sep 2008 14bps 6bps
Oct 2008 - February
2009 13bps 5bps
After March 2009 11.7bps 4.5bps
*plus 8 bps CNVM fee on the value of a buy trade;
**plus RON 0.1 CNVM fee on each traded futures contract.
Note: Fees in basis points (bps) are charged on the value, to both counterparties (buy & sell);
BVB and CNVM fees do not refer to Market Makers.
Current pricing policy
Historical trading fees Participants
annual maintaining fee RON 1,500,
including VAT
Issuers
annual maintaining fee
btw. RON 3,600 and
RON 21,000,
without VAT
Trading fees Sell Buy
Shares, Fund Units
Main Market + Deal 11.7bps 4.5bps*
Structured products 12 bps 5bps*
Bonds 2.16 bps
T-bills 0.08 bps,
btw RON 1 and 81
Futures An average of RON 0.1 per
contract **
BVB’s pricing policy
12 www.bvb.ro
RONmn 2008 2009 2010 2011 2012
Sales revenues 20.9 12.4 13.1 21.7 17.4
Operating revenues 20.9 12.4 13.2 21.7 17.5
Operating expenses 15.5 13.9 12.9 15.3 13.4
EBITDA 7.2 -0.1 1.0 7.1 4.7
Operating result 5.4 -1.5 0.3 6.4 4.1
Financial result 6.8 11.1 6.2 12.4 6.0
Net Income 10.6 8.5 5.7 17.0 9.0
EPS 1.4 1.1 0.7 2.2 1.2
*RAS figures, acc. to EU Directive No 4
The Bucharest Stock Exchange registered a FY net profit of RON 9mn in 2012, during a year that featured lower
activity on international exchanges (noticed also at the BVB) and also local developments, both macroeconomic and
political, which impacted investor sentiment.
Sales revenues reached RON 17.4mn in 2012, down by 20% y-o-y, mainly because of lower revenues from trading.
The listing of Fondul Proprietatea generated an exceptional trading activity in 2011 which was reflected positively on
operating revenues, but in 2012 the postponement of listings of state-owned companies kept investors away from
the market, ultimately affecting the year’s revenues.
Operating expenses were RON 13.4mn last year, 13% lower y-o-y, mainly due to measures taken in order to
improve efficiency by reducing personnel costs, marketing expenses, provisions and depreciation.
The result from financing activities amounted to RON 6.05mn, down by 51.3% y-o-y, as dividends cashed in from
the Central Depository were significantly lower compared to the previous year.
Financial performance
13 www.bvb.ro
Breakdown of quarterly results
BVB ended Q4.2012 with sales revenues of RON 3.42mn, on the back of seasonal declines of the trading activity
and the lower number of trading days in December 2012 compared to 2011.
Operating expenses amounted to RON 4.19mn, down by 19.7% compared to Q4.2011, but the reduction was not
enough to compensate the downfall of the sales, thus BVB registered an operating loss of RON 0.72mn.
BVB ended Q4 with net losses of RON 0.43mn, as the financial result was affected by unrealized foreign exchange
losses and was only RON 0.16mn.
4.9 6.0
4.8 5.0 4.9 4.0
3.4 1.3 2.5
-0.4
1.9 1.7
1.1 -0.7
9.5
1.5 1.7 1.2
3.7
1.0 0.2
Q2.2011 Q3.2011 Q4.2011 Q1.2012 Q2.2012 Q3.2012 Q4.2012
Quarterly sales revenue and operating result (RONmn)
Sales revenue Operating result Financial result
14 www.bvb.ro
RONmn 2008 2009 2010 2011 2012
Fixed assets 20.1 25.4 25.4 28.7 28.6
Current assets 73.4 67.2 64.6 77.5 69.3
o/w: cash, cash
equivalents and
securities 70.2 64.6 63.3 73.8 65.0
Prepaid expenses 0.1 0.3 0.1 0.1 0.1
Total assets 93.5 92.5 90.1 106.2 98.0
Shareholders’ equity 91.9 90.2 88.0 102.0 94.6
Short-term debt 1.5 2.2 1.5 2.6 2.4
Long-term debt 0.01 0.01 0 0 0
Prepaid revenues 0.4 0.5 0.6 0.7 0.7
Provisions 0 0 0 0.9 0.3
Total equity and
liabilities 93.5 92.5 90.1 106.2 98.0
*RAS figures acc. to EU Directive No 4
Debt-free capital structure
The decrease in cash position in 2012 reflects the highest dividends
ever paid to BVB shareholders
Starting 2009 BVB had a stable dividend
policy, with a payout ratio of 100%, after legal
reserves.
For the following years, BVB intends to
maintain the policy of distributing cash
dividends.
* Gross amounts, year paid
Individual balance sheet overview
1.30
1.02
0.70
2.14
1.12
2009 2010 2011 2012 2013
Ordinary dividend (RON/share)
15 www.bvb.ro
RONmn 2012 2013
Budget
y-o-y
change
2014
Projection
y-o-y
change
2015
Projection
y-o-y
change
Sales revenues 17.4 18.8 8% 25.6 36% 32.0 25%
Operating revenues 17.5 18.8 8% 25.6 36% 32.0 25%
Operating expenses 13.4 15.5 16% 15.9 3% 17.0 7%
EBITDA 4.7 4.2 -11% 10.6 151% 16.0 51%
Operating result 4.1 3.4 -18% 9.7 189% 15.1 55%
Financial result 6.0 2.1 -64% 1.0 -53% 2.1 107%
Net Income 9.0 4.6 -49% 9.0 97% 14.6 61%
EPS 1.2 0.6 -49% 1.2 97% 1.9 61%
*RAS figures
2013 is expected to bring about a process of modernization and improved efficiency for BVB, following the
implementation of a new organizational structure. Thus absolutely necessary expenses were accounted for, and
projects were planned (which should lead to the future development of the stock exchange as a financing alternative
for the economy), all leading to modernization and increased efficiency.
BVB will be involved in a series of projects related to the capital market architecture (such as the Central
Counterparty project), which will require significant investments with implications on the 2013 budget and also for the
future years’ projections.
Even though BVB’s profitability for 2013 will be affected, all these measures and projects would set grounds for a
sustainable organic development which will be reflected in the future years’ financial results. Thus, the operating
result for 2014 and 2015 is estimated to compensate for the declines in previous years and to exceed the
10% growth rate set as target by BVB’s Board of Governors.
2013 budget and projections for 2014-2015
Turnover velocity (value traded ÷ average market cap)
2010 154%
2011 42%
2012 40%
Liquidity (shares traded ÷ shares outstanding)
2010 104%
2011 32%
2012 37%
16 www.bvb.ro
BVB share data and statistics
Included in several indices:
FTSE Mondo Visione Exchanges Index (Nov 9, 2010)
BET Index (Mar 21, 2011)
Dow Jones Global Exchanges Index (Jun 17, 2011)
ROTX Index (Sep 19, 2011)
BET-BK (Jul 3, 2012)
Symbol BVB
ISIN ROBVBAACNOR0
Reuters ROBVB.BX
Bloomberg BVB.RO
Bloomberg BBGID BBG000BBWMN3
Share price (9 April) RON 20.7
Market Cap (9 April) EUR 36mn
Outstanding shares 7,674,198
Free float 100%
BVB share evolution since Jan 2012
Analyst
(Company)
12M TP
(Recommendation) Last report
Andrei Radulescu
(SSIF Broker) 24.96 (Buy) Feb 13, 2013
Roxana Dascalu
(SSIF IEBA Trust) 22.64 (Hold) Jan 31, 2013
Raluca Negoescu
(Alpha Bank) 25.2 (Hold) Sep 5, 2012
Vlad Pintilie
(NBG Securities) 29.24 (Neutral) Aug 13, 2012
Analyst coverage
15
20
25
30
35
40
35.95
28.9
19.66
33.0
23.2
22.93
31.5 Dividende 2011: 2,14 lei/acțiune
Dată de înregistrare: 21 mai
Dată ex-dividend: 17 mai
26.2
20.7
20.25
21.9
22.48
17 www.bvb.ro
Bursa de Valori Bucuresti S.A. 34 - 36 Carol I Boulevard, 14th Floor,
Bucharest, sector 2, ROMANIA
Tel: (+40)(21) 307 95 00
Fax: (+40)(21) 307 95 19
www.bvb.ro
Contact person:
Anca Olteanu
THIS PRESENTATION WAS PREPARED BY BURSA DE VALORI BUCURESTI. THE INFORMATION CONTAINED IN THIS
DOCUMENT HAS NOT BEEN INDEPENDENTLY VERIFIED AND NO REPRESENTATION OR WARRANTY EXPRESSED OR
IMPLIED IS MADE AS TO, AND NO RELIANCE SHOULD BE PLACED ON THE FAIRNESS, ACCURACY, COMPLETENESS OR
CORRECTNESS OF THIS INFORMATION. PAST PERFORMANCE IS NO GUARANTEE OF FUTURES RESULTS. THIS
DOCUMENT DOES NOT CONSTITUTE AN OFFER OR INVITATION TO PURCHASE ANY SHARES. CERTAIN STATEMENTS
CONTAINED IN THIS DOCUMENT MAY BE STATEMENTS OF FUTURE EXPECTATIONS AND OTHER FORWARD-LOOKING
STATEMENTS THAT ARE BASED ON THE MANAGEMENT’S CURRENT VIEWS AND ASSUMPTIONS AND INVOLVE KNOWN
AND UNKNOWN RISKS AND UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS, PERFORMANCE OR EVENTS TO
DIFFER MATERIALLY FROM THOSE EXPRESSED OR IMPLIED IN SUCH STATEMENTS. THE EXCHANGE RATE USED FOR ADT IS THE DAILY EXCHANGE RATE AS ANNOUNCED BY THE NBR.
Financial Calendar
2/11/2013 – 2012 Preliminary results &
Earnings Conference Call
4/24/2013 - 4/25/2013 – GSM
5/10/2013 – Q1.2012 Results & Earnings
Conference Call
8/12/2013 – Q2.2012 Results & Earnings
Conference Call
11/12/2013 – Q3.2012 Results & Earnings
Conference Call
Disclaimer
Financial calendar and Contact info