ir update november 2016 - bucharest stock exchangebvb.ro/info/2017.05 - ir update - may 2017...

IR UPDATE

May 2017

1. Company Highlights 3

2. Recent Accomplishments 7

3. Business Strategy 11

4. Romanian Capital Market Overview 15

5. Appendix: Financial Data 20

6. IR contacts 28

2WWW.BVB.RO

Contents

Company Highlights

4

Indicator BVB

ISIN ROBVBAACNOR0

Reuters ROBVB.BX

Bloomberg BVB.RO

Bloomberg BBGID BBG000BBWMN3

Share price (19 May 2017) EUR 7.6 / RON 34.5

Market Cap (19 May 2017) EUR 58 mn / RON 264.7 mn

No. of outstanding shares 7,674,198

ADT 12TM (ended 19 May 2017) RON 0.06 mn

P/E (price as of 19 May 2017, 12TM EPS) 26x***

P/BV (price as of 19 May 2017) 2.6x***

Turnover velocity (2016)* 6%

Liquidity (2016)** 5%

2015 dividend:

RON 0.87/share

Ex-div date: 16 May

Company Highlights

Bucharest Stock Exchange – BVB

WWW.BVB.RO

Analyst coverage

Analyst 12M TP

(Recommendation)Last report

(Company)

Lucian Albulescu

(Wood&Co)

37.0

(Buy)20-Mar-17

Mihaela Podgorski

(Swiss Capital)

30.15

(Buy)24-Aug-16

Catalin Diaconu

(Raiffeisen Bank)

30.4

(Hold)12-May-16

Raluca Negoescu

(Alpha Bank)

28.0

(Hold)10-May-16

100% free-float, listed since 2010

20% ownership threshold,

majority institutional shareholders

BVB main shareholders: NN Group N.V. – 8.67%,

SIF Transilvania – 8.58%, EBRD – 5.12%,

SIF Moldova – 5.00%, SIF Oltenia – 5.00%,

SIF Muntenia – 4.32%

* value traded ÷ average market cap ** no. of shares traded ÷ no. of shares outstanding

*** P/E and P/BV are calculated based on BVB Group financials as of March 31, 2017

20

23

26

29

32

35

04.01.2016 30.03.2016 27.06.2016 20.09.2016 12/16/2016 15.03.2017

BVB share performance [YTD]

2016 dividend:

RON 0.92/share

Ex-div date: 15 May

Business model

BVB is the leading stock exchange in Romania and operates several

markets:

• The Regulated Market - where financial instruments such

as shares and rights issued by international and Romanian

entities, debt instruments (corporate, municipality and

government bonds issued by Romanian entities and

international corporate bonds), UCITs (shares and fund

units), structured products, tradable UCITS (ETFs) are

traded;

• AeRO Market - designed for start-ups and SMEs, launched

on 25 February 2015.

BVB’s operating revenues are generated mainly from the trading of all

the listed financial instruments, from fees charged to issuers for the

admittance and maintenance to the trading system, as well as from data

vending to various users.

Main BVB group entities:

• Central Depository - clearing / settlement operations for

transactions with securities carried out at BVB and registry

services;

• Investors’ Compensation Fund - pays compensations

when fund members fail to return the money or the

financial instruments owed by or belonging to investors

5WWW.BVB.RO

Company Highlights

Main financial indicators

39.6

30.831.9

5.6 4.73.1

14.1

6.67.8

2014 2015 2016

Main financial indicators, 2014 - 2016 (RON mn)

Operating revenues Net financial revenues Net profit

1.12 1.181.46

0.87 0.92

6.1%

4.4%

3.9%

3.2%3.0%

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

2012 2013 2014 2015 2016

Dividends and dividend yield

Dividend/share [RON] Dividend yield [%]

6

Latest developments

WWW.BVB.RO

Company Highlights

Operational developments

• Intensify retail dedicated projects in order to bring new liquidity to the

market

• Support the implementation of short selling, market making

• New products launched, such as warrants

• Expand data vending and IT&C services

• Attract partnerships for current events

Transparency

• BVB becomes one of the first IRIS (new reporting system) user

• Include Corporate Governance compliance Report in the Annual Report

• Quarterly analysts calls and yearly meetings

• Live audio casts of financial results meetings

• Annual meetings with investors and roadshows (London, Warsaw,

Budapest and New York)

• Reporting in both Romanian and English languages

• New IFRS standard consolidated reporting

• Reducing the multitude of trading venues by planned merger

with SIBEX, the Sibiu Stock Exchange

• Plans for CCP services establishment for both spot & futures

markets

• Increased attention paid to cost management discipline

• Budget of CSD pre-approved by the Bucharest Stock Exchange

Expense management disciplineNew sources of short-term revenues

Recent Accomplishments

8

Company Highlights

Recent events

WWW.BVB.RO

29 Sept

Romania put on

FTSE Russel

Emerging Market

Watchlist

5 Jan

BET extended to 12

companies

3 Mar29 Oct

400 participants

to 5th

Individual

Investors Forum

15 Nov

New version of the

trading platform

ArenaXT web 1.4.0

7 Mar

21 Dec

MedLife,

largest private

healthcare

provider,

shares start

trading

Wood&Co becomes

Super Market Maker on

BVB shares30% gain for the winner

of the first live trading

competition

20 March

4 April 11 April

13 April

16 May

17 May

GSM approves the

merger with SIBEX,

change of tariffs and

buy-back program

Launch of

InvestingRomania.com

BVB and National Trade

Registry launch a

common project

Listing of DIGI, telekom

company, after the

completion of the

largest IPO of a private

company

15 companies chosen

as part of Made in

Romania

Launch of an online petition

to support the National

Investment Day on May 15

500 participants at 6th

Individual Investors

Forum

6 April

Source: ASF, AAF

Company Highlights

Why Bucharest Stock Exchange?

WWW.BVB.RO

Largest dividends in the world

Growing Domestic Potential

Wide market reforms

Potential privatizations

Emerging Market Watchlist

BET companies are expected to pay 7% DivY in 2017, according to Berenberg. Almost 8% dividend yield was

paid in 2016 by Romania’s BET index companies - highest yield in the world, above Kuwait (7.6%) and Bahrain

(7.2%).

Steady growth of the pensions fund, with an advance of 22% during 2016 after another comparable increase in

2015 of 21%. Currently, pension funds total assets equal EUR 7.3 bn, out of which 18.8% is invested in

equities. The AuM of the Romanian investment funds equal EUR 5.7 bn as of April 30, 2017. There is also a big

potential vested in the currently small, but very active local retail investors base.

Constant work on ameliorating the investment landscape, with focus on: easing investors’ access to the market

and fiscal compliance, reducing the cost of the market, improving the servicing of investors’ rights, simplifying

procedures related to primary markets for equities and bonds and developing the market infrastructure.

Rich portfolio of state-owned companies as the state has majority stake in 250 companies in total. Some are

currently pending the privatization. Some of the expected companies:

As per the decision of FTSE Russell published on the 29th of September 2016, the Romanian capital market

has been put on the list of countries that have a substantial potential to be upgraded to the status of the

Emerging Market. In the case of Romania, the upgrade will depend on the progress as regards the market

liquidity and the presence on the market of largest companies with significant individual liquidity.

9

The current situation

Bucharest Stock Exchange, key figures

Proven growth story

Future Emergent

Market

Steps to improving

the market

High potential local

growth

Significant

transactions

The biggest dividend

yield in the world

Romanian Capital Market put on FTSE

Russel Emerging Market Watchlist

(September 2016)

3 companies, the minimum criterion

imposed by MSCI for promoting the local

market to the Emerging Market status

EUR 11.2 mn/day

Average value traded in shares in 2017*

7%

BET companies are expected to pay

7% DivY in 2017, according to

Berenberg

RON 1.2 bn (EUR 260 mn)

The private companies IPO’s in the

last six months

Reforms for local market modernization

and development projects

• Suporting listing of state owned and

private companies

• Modernization according to EU

regulation and standards

• Expanding the individual investors

base

• Improvement of the corporate

governance

Over 20%

BET and BET-TR indices evolution in 2017

(BET Total Return index includes the dividends

distributed by companies included in the main

index of the market, BET)

9,7%

BET-TR index evolution in 2016

RON 230 mn

44% shares as

of December

2016

RON 944 mn

25,6% shares

as of May 2017

* Including the offers, as of May 25, 2017

WWW.BVB.RO 10

Business Strategy

12www.bvb.ro

Key focus

Developing retail

investors’ base

Attracting private issuers

to the main market and

AeRO

Improving issuers’

transparency

• Resuming the privatization process to bring new pipeline of listed companies and improve the free float of those already listed

through SPOs

• Improving the market liquidity through increase in the local retail investors base

Launching new products

and trading mechanisms

• Enlarging the domestic retail

base

• Expanding the educational

projects (‘Fluent in Finance’) and

events (Investor Forums),

platforms and an online TV

channel, 7/24 Capital

• National Investment Day: a BVB

initiative to establish a special

day dedicated to all kind of

investments

• Full enforcement of Corporate

Governance in force starting with

February 4th, 2016

• Training of listed companies on

Investor Relations management,

global trends, good governance

• Improve the reporting system of

issuers, through launching a new

Issuers Reporting Information

System (IRIS)

• Increasing the importance of

sustainability and ESG reporting

through UN SSE partnership

• Attracting new potential issuers

for both the Regulated Market, as

well as continue approaching the

SMEs for listings on the AeRO

market

• New projects to be launched:

AeRO Fundraising Solution,

various projects for ypung

entrepreneurs and prospective

listing companies on the AeRO

market

Stimulating revenue from

data vending

Mid-term strategic objective: Upgrade to the Emerging Market Status

Business strategy

• Short-selling, trading on margin

• Lending and Borrowing

• Warrants

Other major projects

• Acquiring CCP services

• Relaunching of the derivatives

market

• Merger with Sibex, the Romanian

derivatives exchange

Steps towards Emerging Market Status

13WWW.BVB.RO

Business strategy

Main criteria to be fulfilled by Emerging Markets

MSCI

FTSE Russell

S&P Dow Jones

STOXX

Institutions evaluating Romania

Min. 3 companies fulfilling the following:

• Company size [full market cap] of USD 1,375 mn

• Free Float value of USD 687 mn

• ATVR (Annualized Traded Value Ratio) of min. 15%

• Min. 3 companies meeting eligibility tests (size, free float

and liquidity criteria)

• Qualitative criteria checked by BVB in 2015-2016:

• fair and non-prejudicial treatment of minority

shareholders

• free and well-developed foreign exchange market

• transaction costs – implicit and explicit costs to be

reasonable and competitive

• Low free float of the listed companies

• Reduced total market liquidity

• Lack of possibility to do sizeable investments in Romania

MSCI

FTSE

• Permanent communication with MSCI, FTSE, STOXX and S&P

Dow Jones

• Organizing a communication platform with international investing

community, supported by EBRD and Bloomberg

The upgrade to a superior classification is voted by global players:

large institutional investors and custodians

• Full domestic market capitalization over USD 2.5 bn

• Domestic annual turnover value over USD 1 bn

• Exchange development ratio (Mcap to GDP) over 5%

S&P

Promotion of the local capital market reform:

All the institutions assess Romania as a Frontier market mainly due to

Romania placed on Emerging Market Watchlist

14

Expanding the local retail investor base

• Large deposits (27K Romanians have deposits of value over 100k EUR, totaling

to EUR 6.3 bn; 14.6 mn Romanians have deposits below 100k EUR, totaling to

EUR 26.8 bn) and a growing salaries (4.6 mn employees in Romania out of

which 250k have salaries over 4k RON a month). In the light of low interest

rates, there is a potential for direct and indirect investments on the stock

exchange

• Low level of financial literacy (lowest in the EU as per 2015 Global S&P study)

shows the potential of the market

• With the restored privatization process and certain positive developments such

as lower, 5% tax on dividends, the retail base shall improve, providing a push to

open an account

• High focus on educational and informative campaigns led by the Stock

Exchange in cooperation with other stakeholders

• The current compensation limit is EUR 20,000, in line with EU

directives

• 83% 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

Business strategy

WWW.BVB.RO

36% 34% 33% 30%36%

29%27% 30%

24%20%

26% 31% 24%37%

25%

6% 6%10%

6%

9%

4% 2% 3% 3%

10%

2H.2013 1H.2014 2H.2014 1H.2015 2H.2015

BVB investor base, by value traded

EU Local legal entities Local retail US Others

60,99255,115 52,316

8,772

10,00710,775

71,108

66,49364,392

Dec-15 Dec-16 Apr-17

Number of investor accounts 2015 - 2017

Fully compensated investors Ceiling compensated investors

Excluded investors Total no. of investors

Romanian Capital Market Overview

16

Bucharest Stock Exchange

MCap: EUR 19 bn

Avg. daily turnover: EUR 8.7 mn/day

Bulgarian Stock Exchange

MCap: EUR 4.7 bn


CEESEG Vienna

MCap: EUR 110.1 bn

Avg. daily turnover: EUR 135 mn/day

Budapest Stock Exchange

MCap: EUR 21.7 bn

Avg. daily turnover: EUR 34.2

mn/day

Ljubljana Stock Exchange

MCap: EUR 5.3 bn


Warsaw Stock Exchange

MCap: EUR 162.4 bn

Avg. daily turnover: EUR 254 mn/day

Source: FESE (data as per April 2017), LJSE, BSE; for BVB public offers are not included.

CEESEG Prague

MCap: EUR 23.7 bn



Regional perspective

WWW.BVB.RO

Positive macroeconomic outlook


17WWW.BVB.RO

Long-Term Credit Rating Credit ratings Outlook

Standard & Poor’s

(May 16, 2014) BBB- stable

Moody’s

(April 21, 2017)Baa3 stable

Fitch

(July 4, 2011)BBB- stable

Indicator 2011 2012 2013 2014 2015 2016 2017f** 2018f**

Real GDP, yoy change (%) 1.1 0.6 3.5 3.0 3.8 4.8 5.2 5.7

Inflation rate (%) 5.8 3.3 4.0 1.1 -0.6 -0.5 1.7 3,4

Key interest rate (%) 6.00 5.25 4.00 2.75 1.75 1.75 1.75 2.00

Population (mn) 20.2 20.1 20.0 20.0 20.0 19.8 19.8 19.7

Exchange rate, eop (RON/EUR) 4.3 4.4 4.5 4.5 4.5 4.5 4.5 4.5

Sources: Erste Research, ECB, Eurostat, NBR, National Statistics Office, Romanian National

Commission for Prognosis, rating agencies, FESE, BVB, LJSE, ZSE

Capital Markets

in the CEE

Domestic market cap (EUR bn)

2013 2014 2015 2016 2017YTD

Bucharest Stock Exchange 17.8 18.4 16.9 18.0 20.4

Budapest Stock Exchange 14.4 12.0 16.2 21.5 21.7

Bulgarian Stock Exchange 5.1 5.0 4.4 4.3 4.7

Ljubljana Stock Exchange 5.2 6.2 5.5 5.1 5.3

CEESEG - Prague 22.0 22.6 23.5 22.2 23.7

Notes:

* Average rate of consumer prices over the last 12 months as compared to the previous 12 months

** Romanian National Commission for Prognosis estimates for 2017 and 2018

Source: BVB


High dividend yields

WWW.BVB.RO

• Romanian Capital Market has recorded the highest dividend yields

in the world in 2016 and the first data show a high return also this

year, 2017

• In 2016, energy and utilities companies offered a dividend yileld of

nearly 9% (as of October, 2016) and an estimate of over 8% in

May 2017.

• BET, the main index of the Bucharest Stock Exchange market,

reach the highs of the last 9 years

• Last year, BET-TR index, which includes also the dividends payed

by BET companies, increased by 9,7%

• In the last three years, BET-TR index increased by 58%

• In March, BVB expanded its main indices, BET and BET-TR, to 12

companies. The two new companies joining the main indices are

CONPET (symbol COTE) and MedLife (symbol M)

+58%

+30.8%

Note: Chart for BET-TR uses back-tested values before Sept 19, 2014 (index

launch date). The chart is rebased at 100

18

90

100

110

120

130

140

150

160

3-Jan-14 3-Sep-14 3-May-15 3-Jan-16 3-Sep-16 3-May-17

BET vs. BET -TR index (2014-2017 YTD)*

BET BET-TR

8.7% 9.4% 9.1%

6.8%

0.0%

6.3%

9.1%

11.8%

8.1%

12.5%

11.3%

4.76%

4.53%5.11%

6.87%

0

Average

yield

COTE TGN SNN SNP EL TEL SNG

DivY - 2016-2017

DivY2016 (Oct.16) DivY2017 (Mai.17)

19

• Strong growth rate of net assets starting from 2014. From the

begining of 2017, the growht rate continued the trend set in

previous years

• The number of investors slightly decreased in Q1 2017, after the

industry gained over 23,000 between 2014 – 2016

• Advance of 22% of pension funds’ total assets during 2016

(pillar II and III), after another comparable increase of 21% Y-

o-Y in 2015

• During 2016, investments in equities increased in value (from

EUR 1.1 bn registered in 2015 to EUR 1.4 bn), and slightly

decreased in percentage of funds’ total assets from 19.3% to

18.8%.

Sources: ASF, AAF


Growing pension funds and asset management industry

WWW.BVB.RO

3.3

4.5

5.7

7.3

0.5

0.9 1.11.4

15.6%

19.2% 19.3%

18.8%

-4.0%

1.0%

6.0%

11.0%

16.0%

21.0%

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

2013 2014 2015 2016

Pension funds: total assets and allocation in Romanian equities,

2013-2016 [EUR bn, %]

Total assets (EUR bn) Investments in equities (EUR bn) Investments in equities (%)

4.6

5.25.5

5.7

403,024

420,766426256 425,286

150,000

200,000

250,000

300,000

350,000

400,000

450,000

0.0

1.0

2.0

3.0

4.0

5.0

6.0

Dec-14 Dec-15 Dec-16 Apr-17

Asset managers: net assets (EUR bn),

number of investors, 2014 - 2017

Total assets [EUR bn] Total number of investors

Appendix: Financial Data

21


Presentation of BVB Group and of the consolidation process

WWW.BVB.RO

Entities included in the

consolidation process

Not included in the

consolidation

process

Segments within BVB Group:

• Trading segment – Bucharest Stock Exchange

• Post-trading segment which includes:

• Clearing & settlement services of the Central Depository

• Registry segment – Registry activities of the Central Depository

• FCI services – Activities of the Investors Compensation Fund

Bucharest Stock Exchange

100% free float

Central Depository

69.04%

Bucharest Clearing House

52.5%

Investors Compensation

Fund62.3%

Corporate Governance

Institute100%

Bucharest

Stock

Exchange

100% free float

Central

Depository

69.04%

Bucharest

Clearing

House

52.5%

Investors

Compensa-

tion Fund

62.45%

Corporate

Governance

Institute

100%

Main Market

Listed companies:

84 domestic and 2 foreign

Domestic market cap:

EUR 20.4 bn

Total market cap:

EUR 38.6 bn

Instruments:

shares, rights, corporate and

municipal bonds, government

securities, structured products,

fund units, tradable UCITS (ETFs),

warrants

Listed companies:

287 domestic and 2 foreign

Domestic market cap:

EUR 1.0 bn

Total market cap:

EUR 1.03 bn

Instruments:

shares, rights, bonds

AeRO market for SMEs

Markets operated by BVB

22


Market size and structure

WWW.BVB.RO

Note: Public offers included. Note: Public offers not included. Data for 1 Jan – 31 Dec 2016

• The ADT on shares increased with 38% in 2017, as of May 20, compared to 2016 average, following two successful IPOs of private

companies (MedLife and DIGI)

• Banca Transilvania continued to be most traded company on the Bucharest Stock Exchange in the first 4 and a half months of this year,

followed by Fondul Proprietatea. Digi Communications made a strong entrance on the market, starting with May 16th, 2017

• In Q1 2017, BVB recorded the best first quarter of the last 6 years, given the value traded on the main market with shares

11.9

7.9 8.2

11.3

0.9

2.51.2

0.17

0.2

0.4

0.4

0.29

2014 2015 2016 2017YTD

Average daily turnover 2014-2017 YTD*

[EUR mn/day]

Shares/Fund Units Bonds Structured products

Banca Transilvania,

19.4%

Fondul Proprietatea,

14.89%

Romgaz, 10.66%

BRD Gr-

Soc.,

10.16%

OMV Petrom ,

8.25%

Electrica,

6.72%

Electrica, 6.10%

Digi

Communications,

5.27%

Others, 18.55%

Most traded stocks at BVB in January 2017 - May 19,

2017 (%)

23

• The Bucharest Stock Exchange Group (BVB Group) ended the

first quarter of 2017 with a growth of more than 7 times of the

consolidated operating profit of RON 2.96 mn

• The BVB Group's operating income grew by 42% in the first

three months of the year compared to the similar period of

2016, up to RON 9.19 mn, mainly driven by the increase in the

total value of transactions traded on the BVB markets.


1Q 2017 BVB Group financial results

Note: Consolidated financial results, prepared in accordance with IFRS. The financial

figures for 1Q 2017 are restated to IFRS and are not audited

WWW.BVB.RO

6.49

9.19

0.36

2.96

0.04

2.83

1Q 2016 1Q 2017

Main financial indicators, 1Q 2017 vs. 1Q 2016

(RON mn)

Operating revenues Operating profit Net profit

6.03

2.26

0.80

0.10

2.64

0.370.09 -0.14

Trading Post-trading Registry FCI services

Distribution of operating revenues and result, by

segment, 1Q 2017 (RON mn)

Operating revenues Operating profit

• Operating expenses amounted to RON 6.23 mn, where up only

1.6% compared to the first three months of last year.

• Consolidated net profit in 1Q 2017 amounted to RON 2.83 mn,

significantly increasing compared to the net result obtained in

the same period of the previous year (1Q 2016: RON 0.04 mn)

with a net margin of 31%, while 89% of the net profit being

obtained from the Group's trading segment.

24


2016 BVB Group financial results

WWW.BVB.RO

7.5

14.1

6.67.8

11%

28%

11%

19%

21%

36%

19%

25%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

0

5

10

15

20

25

2013 2014 2015 2016

Net profit, operating and net margins, 2013-2016

Net profit Operating margin (%) Net margin (%)

• BVB Group’s operating revenue reached RON 31.93 mn in 2016, a

4% increase in y-o-y terms, mainly due to BVB trading segment.

• For the other business segments, changes were less significant, both

in value terms as well as in percentage terms, given that their

revenues are much less dependent on changes in trading activity.

• The operating profit registered a 89% y-o-y increase to RON 6.07 mn,

mainly generated by the trading segment.

• 2016 net financial expenses of RON 3.09 mn was recorded mainly

from financial investments in government securities and bank

deposits.

• The consolidated net profit for 2016 was RON 7.87 mn, a 19%

increase in y-o-y terms.

39.6

30.831.9

5.6 4.73.1

14.1

6.67.8

2014 2015 2016

Main financial indicators, 2014 - 2016 (RON mn)

Operating revenues Net financial revenues Net profit

24.126.5

17.419.4

6.9

8.7

8.3

8.5

5.5

4.4

4.63.6

0.50.4

2013 2014 2015 2016

Breakdown of operating revenues, 2013-2016

(RON mn)

Trading Post-trading Registry FCI services

25


Trading segment overview

WWW.BVB.RO

Drivers of the trading segment revenues

• Trading fees represent the main driver behind the trading

segment performance and account for 80% of the segment

revenues.

• BVB's trading activity on the stock market was more intense, with

a 42% increase from the first quarter of 2016 to a level of RON

2.92 bn.

• For the regulated market of shares, the average daily value of the

transactions was RON 43.41 mn.

• 1Q 2017 is the the best first quarter of the past 7 years in terms

of number of transactions (212 thousand).

Trading fees,

81%

Issuers fees,

9%

Data vending,

6%

Other, 4%

Breakdown of trading segment revenues in 1Q

2017 (%)

5.15

6.03

1.37

2.64

0.04

2.53

1Q 2016 1Q 2017

Operating revenues and profit, trading segment

(RON mn)

Op. revenues, RON mn Op profit, RON mn Net result

BVB trading fees

Sell Buy

Shares, fund units,

certificates10 bps 4 bps

BVB public offers fees

For sale of shares 0.135% (for the seller)

For purchases of shares 0.216% (for each side of the trade)

Note: Fees in bps are charged to the value of the trade (buy & sell) and do not refer to Market

makers and DEAL trades.

26

• Starting 2014, the consolidated balance sheet is reflecting, in both

current assets and short-term liabilities, the amounts that the

Central Depository must distribute as dividends to the shareholders

of listed companies

• At the end of March 2017, total assets of the BVB Group amounted

to RON 167.54 mn (31 December, 2016: RON 173.00 mn), down

by 3% compared to the beginning of the year, mainly as a result of

the decrease in current assets.

• Non-current assets recorded a similar level to the beginning of the

year, while current assets decreased to RON 83.98 mn (31

December, 2016: RON 89.97 mn) following the payment of

dividends operated by the Central Depository to the shareholders of

listed companies, also clients of the Depositary.

• Stable dividend policy, with a payout ratio of 100%, after legal

reserves

• The dividend policy is expected to remain unchanged

* Gross dividends are presented.

Dividend yields are calculated using the price on the corresponding ex-date


BVB Group financial position

WWW.BVB.RO

1.12 1.181.46

0.87 0.92

6.1%

4.4%

3.9%

3.2%3.0%

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

2012 2013 2014 2015 2016

Dividends and dividend yield

Dividend/share [RON] Dividend yield [%]

March 2017 Dec 2016

Non-current assets 83.5 83.1

Current assets 83.9 89.8

Total assets 167.5 173.0

Shareholders’ equity attributable

to owners of the Company

100.5 97.6

Minority interest 10.4 10.5

Short-term liabilities 56.6 64.9

Total equity and liabilities 167.5 173.0

27

Notes

WWW.BVB.RO

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 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. EXCHANGE RATE USED FOR ADT IS THE DAILY EXHANGE RATE AS ANNOUNCED BY THE NBR.

ACEASTA PREZENTARE A FOST REALIZATA DE BURSA DE VALORI BUCURESTI. INFORMATIILE CONTINUTE IN ACEASTA PREZENTARE NU AU FOST VERIFICATE DE CATRE O TERTA PARTE INDEPENDENTA, ASTFEL NU EXISTA NICIO

GARANTIE SI NU TREBUIE LUATA CA ATARE ACURATETEA, CORECTITUDINEA SI COMPLETITUDINEA ACESTOR INFORMATII. PERFORMANÞA ANTERIOARA NU ESTE O GARANTIE A REZULTATELOR VIITOARE. ACEST DOCUMENT NU

REPREZINTA O OFERTA DE A CUMPARA ACTIUNI. ANUMITE DECLARATII DIN ACEST DOCUMENT POT FI DECLARATII DESPRE ASTEPTARILE VIITOARE SAU ALTE EVOLUTII VIITOARE SI SE BAZEAZA PE VIZIUNEA SI IPOTEZELE ACTUALE ALE

CONDUCERII COMPANIEI SI IMPLICA RISCURI CUNOSCUTE SI NECUNOSCUTE, PRECUM SI INCERTITUDINI CARE POT DETERMINA CA REZULTATELE EFECTIVE, PERFORMANÞA SAU EVENIMENTELE VIITOARE SA DIFERE SEMNIFICATIV DE

CELE EXPRIMATE SAU INTELESE IN ACESTE DECLARATII.

BURSA DE VALORI BUCURESTI SA • Bulevardul Carol I nr. 34-36, Etaj 13-14, Sector 2, 020922, Bucuresti, Romania • Tel.: +40 21 307 95 00 • Fax: +40 21 307 95 19

Website: www.bvb.ro • E-mail: [email protected] • Registrul Comertului: J40/12328/2005 • CUI: 17777754 • Capital social, integral subscris si varsat: 76.741.980 lei

Decizia CNVM Nr. 369 / 31.01.2006

IR Contact

Daniela Serban, Director IR&PR

Natalia Negru, IR&PR Specialist

Email: [email protected]

Phone: +40.21.307.95.00

Fax: +40.21.307.95.19

28

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