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Bucharest Stock Exchange Presentation

Investment positives
Operator of the leading Romanian cash & derivatives markets

Integrated Group: Trading, Clearing, Settlement and Registry Systems

Market cap of approx. EUR 34.6mn, cash equals 45% 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

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www.bvb.ro

most of them coming from the mass privatization programme 3 .Markets operated by BVB Regulated spot market Shares and rights (issued by local and international entities) Corporate and municipal bonds Government securities Alternative trading system Securities issued by Romanian companies not qualified for the regulated market Bucharest Stock Exchange Foreign stocks listed on developed markets and traded at BVB Structured products Fund units Tradable UCITS (ETFs) Regulated derivatives market Futures contracts with shares. indices. commodities and exchange rates as underlying assets RASDAQ market Shares and rights issued by Romanian entities are traded.

BVB indices BET Reference index for BVB BET-BK Most liquid 25 listed companies BET-C All companies listed on BVB’s regulated market. excepting the SIFs Most liquid 10 listed companies Can be used as a benchmark by fund managers BET-FI Sectorial index including the 5 SIFs and Fondul Proprietatea BET-NG Sectorial index for energy and utilities BET-XT Blue chip index Most liquid 25 listed companies ROTX Developed by BVB together with Wiener Boerse Follows the same principles as the CECE Index family Includes most liquid blue chip stocks traded at the BVB 4 . 1st and 2nd Tier.

The intention to acquire more than 5% should be disclosed to the Stock Exchange and the market Regulator 5 www.33% Romanian private individuals.3% 100% International institutional investors. 1.03% International private individuals. BVB shareholders may not own more than 5% of the total voting rights (directly or indirectly).BVB Group Bucharest Stock Exchange Cash & Derivatives Trading BVB Shareholding Structure as of June 30.92% Central Depositary Cash Market Clearing Settlement Registration Bucharest Clearing House Derivatives Market Clearing Investors Compensation Fund Corporate Governance Institute According to the current provisions of the law.72% 69% 52. 11. 69. 2013 Romanian institutional investors.5% 62.bvb. 17.ro .

Board of Governors & CEO Unitary management system Board of Governors Lucian Anghel (BCR) – President Chief Executive Officer Ludwik Sobolewski Adrian Lupsan – Vice-President Dan Paul (Brokers’ Association) – Vice-President Robert Pana (Swiss Capital) – Secretary General Valerian Ionescu (BCR) – Member Matjaz Schroll (Franklin Templeton) – Member Narcisa Oprea (Schoenherr & Associates) – Member Stere Farmache – Member Octavian Molnar (SSIF IFB Finwest) – Member Appointed by the Board of Governors on July 1 st Mandate to start after FSA endorsement Former President and CEO of the Warsaw Stock Exchange between 2006 and 2013 Former Executive VicePresident of the National Depository (and Clearing House). among others. the National Depository for Securities. the Polish Power Exchange and BondSpot (a company organizing market for government bonds) 6 . also serving as chairman of Supervisory Boards of.

Support the successful closing of the state companies public offers 2. reduce bureaucracy and apply international best practices Increase the visibility of the Bucharest Stock Exchange and of the issuers. List new companies on the Bucharest Stock Exchange and increase number of active investors 3. Develop capabilities. products and services offered by the Bucharest Stock Exchange Group 4.bvb. Simplify and improve the regulations.ro . along with increasing the awareness of the important role that the Romanian capital market is playing Develop dialog between the Bucharest Stock Exchange and relevant institutions/authorities 6. Increase the educational role of the Bucharest Stock Exchange 7 www. Improve the corporate governance and functioning of the Bucharest Stock Exchange as a Group 5. 7.Strategic priorities 1. 8.

a program targeting Romanian SMEs (events.bvb.Main current projects The establishment of a Central Counterparty (a joint project along with the Central Depositary and Sibex) – the opportunity of a foreign CCP is currently being analyzed The clarification of RASDAQ market’s status – the process is in an advanced stage.ro “Romania Discovers the Stock Exchange”) 8 www. informative materials. oneon-one meetings. aimed at developing corporate governance and reporting practices for Romanian listed companies – recently launched Promotion of corporate governance and post-listing transparency for state-owned companies to be privatized through the capital market Promotion of financing alternatives.ro . editorial project with wall-street. with several draft laws submitted to the Romanian Parliament Encouraging short selling and securities lending (a joint project with the Central Depositary) The separation of the trading environment from post-trading and aligning to international standards (joint project with the Central Depositary) – advanced stage The improvement in coordination of operations at BVB Group level – incipient stage Corporate Governance project along with EBRD.

management. a 2-year joint project with EBRD started this year. The proposals are being analyzed by the Board. through its Corporate Governance Institute. including shareholders’ rights. focusing on the development of the corporate governance and reporting practices of local listed companies. while last year BVB started preparing the Comply or Explain Statement. BVB adhered to The Corporate Governance Code and included a dedicated chapter in the Annual Report. would provide state-owned companies with consultancy services to prepare them in view of their privatization/listing. 9 . special committees an so on. shareholder meetings. functioning. Such efforts materialized into a cooperation agreement with OPSPI (the Office of State Ownership and Privatisation in Industry). according to the legal framework in force. In 2011.Corporate Governance CG at the Bucharest Stock Exchange BVB’s Articles of Incorporation include all matters related to Corporate Governance. There have been requests from BVB’s shareholders to change the current unitary management system into a dual system. through which BVB. Moreover. CG among market participants BVB also supports the improvement of Corporate Governance practices among participants on the capital market. under the review and implementation of the Romanian CG Code.

Main market (end-Jun 13) 257 330 28 CEESEG Prague 52 61 80 98 103 CEESEG Budapest CEESEG Ljubljana BVB Bulgarian Stock Exchange CEESEG Vienna Athens Exchange Warsaw Stock Exchange Main stock market turnover in Jan-Jun 2013 (EURmn/day) 258.1 Bulgarian Stock Exchange 6.Main market (end-Jun 13) 123.6 Market Cap change Exchange Athens Exchange Bulgarian Stock Exchange CEESEG Budapest BVB CEESEG Ljubljana CEESEG Vienna Warsaw Stock Exchange 2012 30.9 BVB 15.7% 7.4% 25. FESE 10 www.8 66.0 CEESEG Prague Athens Exchange CEESEG Vienna Warsaw Stock Exchange 75.4% -3.1% 7.6% -1. Calculations in EUR terms Source: BVB.2 BVB 21.8% -21.1% -21.5% -2.2 CEESEG Ljubljana 3.5% 2013* 95.8 CEESEG Ljubljana 5.8% 22.4% -0.6 CEESEG Budapest 22.4 CEESEG Budapest Athens Exchange 77.7% 0.ro .4 Bulgarian Stock Exchange 11.6 74.6% 11.9% Number of listed companies .bvb.BVB in the region Domestic Market Cap (EURbn) .2 CEESEG Prague 30.0 1.0% -8.6 4.8 CEESEG Prague Warsaw Stock Exchange CEESEG Vienna *Data for Jan-Jun 2013.2% -6.

2013.3 BRD TLV SIF3 BRD Groupe Soc.G.2% 4.bvb.7 6.5 0.T. daily turnover turnover (EURmn) 46.2 9.N.8% 9.41 0.6% 3.5 1. 2013 Structured products With the listing of Fondul Proprietatea.2 7.ro . 11 www. Banca Transilvania SIF Transilvania Erste Group Bank AG SIF Oltenia SIF Moldova S. ADT declined on macro and political uncertainties.7 4.66 FP 0. Public offers are not included. BVB achieved in 2011 one of the highest ADT growth rates in Europe. Transgaz SIF Banat Crisana 6. 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 2012.9% 0.Trading activity statistics Most traded companies (YTD*) Average daily turnover (EURmn) Symbol 0.34 0.1% 2.3 2.3% 5. Gen.N.6 1.27 0. In 2012.29 0. 2009 2010 2011 Bonds 2012 2013 YTD Shares/Fund Units *until July 15.9% 5.8 Company Fondul Proprietatea OMV Petrom % of Avg.43 0.0% 3.19 EBS SIF5 SIF2 TGN SIF1 5.21 0.3 *until July 15.4 0.8% 4.32 0.1% 4.6 SNP 1.16 0.

Turnaround trades The turnaround settlement for OTC transactions was implemented in March 2012. 6% of all settlements made by the Central Depositary during the same period. accounting for approx. allowing international market players to expand their global business with the Romanian securities. 12 www. turnaround trades account for 40-45% of all settlements on average. including those which are subject to public offerings. The launch of the turnaround settlement service adds significant value to the new infrastructure improvements delivered by BVB Group in recent years (such as omnibus accounts). with an easier access to Romanian financial instruments. striving to be fully aligned to European industry standards and paving the way to increased market accessibility – an important step in increasing liquidity. therefore there is significant potential for the local market to grow in terms of liquidity. such service delivers substantial efficiencies to the market players by creating further opportunities for non-resident investors. it is easier to access domestic financial instruments. As a result.bvb.ro . possible for all listed shares on BVB As OTC turnaround trades are linked to at least one correspondent trade concluded on BVB. supported by such trades. Thus. EUR 78mn worth of trades were settled in H1 2013. In the region.

Expected in Q1-Q2 2014 Hidroelectrica4 Power generation - 80.5% Stake of the public offering 15% Offering value (EURmn) What is for sale Status Transgaz1 Gas transmission Power generation Gas production Electricity distribution Power generation Approx.49% 1. Societe Generale. Erste Group Bank. stake 73.1% 10%5 >250 Capital increase by 12. Consortium intermediating the offering: Citigroup.ro . BVB 13 www. Consortium intermediating the offering: Raiffeisen Capital & Investment. Wood & Company Financial Services and BT Securities 2. BRD-GSG and Intercapital Invest 5. EUR 72mn >80 >250 Existing shares Finalized 4 – 16 April 2013 Expected in Q3 2013 Expected until end-October 2013 Expected in Q4 2013 Nuclearelectrica2 Romgaz3 - 90.0% 10% 15% Capital increase Existing shares Capital increase by 105% Electrica CE Oltenia - 100% 77.29% Q1 2014 Postponed after the company exits insolvency (which took place in Jun 2013). Percent of the share capital before the share capital increase Source: Government. BCR.bvb. Consortium intermediating the offering: Swiss Capital and BT Securities 3.2% 105%5 12%5 >100 >70 Capital increase Expected in Q4 2013 – by 15.Estimated Romanian privatization agenda Company Sector Market Cap/ Fair value (EURmn) 534 Gov. Raiffeisen Capital & Investment and Intercapital Invest 4. Consortium intermediating the offering: Goldman Sachs.3% 85.

proved once again the significant interest in new shares that reach the market. any new companies listed at BVB. 14 . By extrapolation. as well as the resulting 5 times increase in average daily turnover after offer was finalized. depending on the day when the subscription was made) SPO price for institutionals: RON 179/share Closed book for the institutional tranche Significant oversubscription for the two retail tranches Source: Raiffeisen Capital & Investment International 69% The notable oversubscription for all three tranches. will attract similar attention. EUR 72mn 2-week roadshow.Recent events Subscriptions breakdown by geography Domestic 31% 15% stake sold by the Romanian State SPO period: 4-16 April 2013 Worth of approx. given the new flavor they would represent and investors’ significant need to diversify their portfolios. be either state-owned or private. with discounts for the small subscriptions tranche (3% and 5%. two for retail investors. with more than 100 investors contacted 3 tranches: one for institutional investors (85% of the offer). if not higher.

2013 – Dec 31. banks Both BVB and the Financial Supervisory Authority (FSA) have acknowledged the importance of bond issues as alternatives to traditional financing through bank loans and as gateways to the capital market. pension funds. during Jun 1. maturing on 30 Oct 2017 Interest rate: 7. 2014. EUR 55mn) First time the closed book mechanism was used by BVB for public offers 5-year. maturing on 15 Jun 2018 Interest rate: 6. RON-denominated corporate bonds. and thus both institutions have taken steps to decrease related costs with a view to encouraging such public offers. to the primary sale public offers. as follows: • • BVB has suspended its fee for applied to the buy value for the initial sale offers. including EBRD and IFC. RON-denominated corporate bonds. 15 . to the other primary methods for bond sale. with subscriptions of more than 30 local and international institutional investors. investment funds. insurance companies.35%/annum Public offer period: 14-21 June 2013 Started trading at BVB on 2 July 2013 Offer value: RON 550mn (approx.Corporate bonds at BVB 5-year.40%/annum Public offer period: 17-23 October 2012 Started trading at BVB on 20 November 2012 Offer value: RON 250mn (approx. EUR 123mn) following the significant oversubscription (by 10%) Closed book mechanism. and FSA has suspended the fee for bond offers until the end of 2013.

Equity Sector.BVB’s alternative trading system Created in 2010 to provide SMEs a flexible and simplified alternative of listing and access to financing through capital market mechanisms. Currently. given the tighter requirements for accessing bank loans and other types of financing. loans. Base Tier – Shares Started trading at BVB on 3 October 2013 Provider of financial services. described below. bancassurance. commercial facilities First Romanian company listed on BVB’s ATS. Provider of professional cleaning & maintenance services for hotels. offices. foreign exchange Included in the 1st Tier of the ATS (Equity Sector) Started trading at BVB on 11 July 2013 16 . and other companies may follow suit. there are 2 companies listed on ATS. such as leasing.

03.664 92.2009 31.2012 31.bvb.559 78.2008 31.143 81.2013 Total investors Fully compensated investors Ceiling compensated investors Excluded investors The current compensation limit is EUR 20.2011 31.12. in line with EU directives More than 90% of investor accounts have portfolios below EUR 20.2010 31.545 86.ro .865 94. regardless if an investor has accounts with several brokers Source: Investors Compensation Fund 17 www.12.12.12.12.2007 31.12.253 31.000.453 88.Investor accounts on the local capital market Number of investor accounts on the local market 87.000 and are fully compensated The number of investor accounts includes the total number of accounts on the Romanian capital market.

5bps* 5bps* Bonds T-bills Futures 2. RON 3. including VAT btw.bvb. **plus RON 0.February 2009 After March 2009 Sell 15 bps 14bps 13bps 11.BVB’s pricing policy Current pricing policy Participants annual maintaining fee Issuers annual maintaining fee RON 1. to both counterparties (buy & sell). without VAT Historical trading fees Cash Equity Market Jan 2006 .Sep 2008 Oct 2008 .7bps 12 bps Buy 4. Note: Fees in basis points (bps) are charged on the value.7bps Buy* 7bps 6bps 5bps 4.5bps Trading fees Shares.500. BVB and CNVM fees do not refer to Market Makers.1 CNVM fee on each traded futures contract.600 and RON 21.000. 18 www.1 per contract ** *plus 8 bps CNVM fee on the value of a buy trade. Fund Units Main Market + Deal Structured products Sell 11. btw RON 1 and 81 An average of RON 0.08 bps.ro .May 2007 June 2007 .16 bps 0.

Operating expenses were RON 3. The financial result amounted to RON 1.1 6.4mn during Q1.4 12.7 1.1 1.5 11. due to a revival in volumes traded.0 1. to EU Directive No 4 2009 12. trading values registered a notable increase. despite the lower trading activity during the first two months of the year.4 12.4 0. In March. 20% vs.5 0. 19 www. as well as unrealized foreign exchange gains).9 -0.Financial performance RONmn Sales revenues Operating revenues Operating expenses EBITDA Operating result Financial result Net income EPS *RAS figures.7 2011 21.2013. down by 8% y-o-y but significantly higher compared to Q4.7 21.4 17.9 1.2 5.2 The Bucharest Stock Exchange reported a net profit of RON 1.1 4.7mn.2 12. resulting in an operating profit of RON 0.7mn in the previous quarter.1mn during the quarter.2013 4.2013. as investors accumulated stakes in some issuers before reference dates for annual shareholders’ general meetings.5mn in Q1. compared to an operating loss of RON 0.1 3.bvb.3 6.5 13.2012.8 0.2 2012 17. Sales revenues reached RON 4.1 8.2013 (comprising interest revenues.0 2.7 0. acc.1 2010 13.3 7.4 13. partly due to the SPO for Transelectrica) the turnover registered a decline by a similar percentage.1 -1. but compared to the year-ago period (which was one of the best quarters of the last 5 years.0 9.1mn in Q1.1 6.0 0.ro . also influenced by the positive sentiment on developed markets.5 1.1 13.2 Q1.7 15.4 17. the previous quarter. up by approx.7 4.4 4.

4 0.ro . resulting mainly from financial activities (interest earned and unrealized foreign exchange gains).2012.4 Q4.9 1.2012 3. The data vending segment and maintenance fees charged to issuers displayed a downward trend vs. both Q1.bvb.7 Q2.Breakdown of quarterly results Quarterly sales revenue and operating result (RONmn) 6.2012 4.7 Q4.8 2.2013 sales revenues were mostly driven.7 -0. as usual. 20 www.1 0.0 1. Q1. The operating result improved from Q4.2012 Operating result Q1.2012 and Q4.5 1. but vs.7 4. BVB ended Q1.1 1.0 Q3.2012 Sales revenue Financial result BVB’s Q1.2013 1.2 -0.7 1.0 4.2013 with a net profit of RON 1. when losses were reported.9 3.2011 1.2 1.1 Q1. by trading revenues which have the highest weight in total operating revenues (27% higher q-o-q but 20% lower y-o-y).2012 a significant decline was registered because of lower revenues.2011 5.5 Q3.2012.0 4.53mn.

1 106.2 70. with a payout ratio of 100%.2 102.3 End-Mar 2013 29.0 0.6 69.5 0 92.bvb. year paid 90.6 63.7 77.7 64.7 0.3 0. after legal reserves.ro .2 2009 1. cash equivalents and securities Prepaid expenses Total assets Shareholders’ equity Short-term debt Long-term debt Prepaid revenues Provisions Total equity and liabilities 2009 25.4 0 0.9 1. For the following years.2 98.14 0.2 64.4 64.5 2010 25. BVB intends to maintain the policy of distributing cash dividends.30 Ordinary dividend (RON/share) 2.2 2.12 2010 2011 2012 2013 * Gross amounts.1 88.1 106.6 0.02 0.6 0 0.1 90.1 100.5 0 0.6 2.5 73.Individual balance sheet overview RONmn Non-current assets Current assets o/w: cash.3 92.01 0.0 *RAS figures acc.8 0.0 94. to EU Directive No 4 Starting 2009 BVB had a stable dividend policy.5 90.4 67.0 0 0.0 1. Debt-free capital structure The decrease in cash position in 2012 reflects the highest dividends ever paid to BVB shareholders 21 www.7 0.1 3.1 98.0 100.3 65.70 1.0 2.6 0 2011 28.0 96.2 0.7 0.9 2012 28.

6 25.1 6.1 2.0 9.7 1.2 3.0 16.4 17. BVB will be involved in a series of projects related to the capital market architecture (such as the Central Counterparty project). and projects were planned (which should lead to the future development of the stock exchange as a financing alternative for the economy).bvb.4 2.2 y-o-y change 36% 36% 3% 151% 189% -53% 97% 97% 2015 Projection 32.4 4. Thus.2 2013 Budget 18.1 4.8 15.1 14.6 15.0 17.ro .9 10.5 13.0 9. 22 www. Even though BVB’s profitability for 2013 will be affected.6 0.0 32. Thus absolutely necessary expenses were accounted for. 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.0 1.2013 budget and projections for 2014-2015 RONmn Sales revenues Operating revenues Operating expenses EBITDA Operating result Financial result Net Income EPS *RAS figures 2012 17.5 4.6 9.0 1.7 4. following the implementation of a new organizational structure.9 y-o-y change 25% 25% 7% 51% 55% 107% 61% 61% 2013 is expected to bring about a process of modernization and improved efficiency for BVB.8 18.6 1. which will require significant investments with implications on the 2013 budget and also for the future years’ projections. all these measures and projects would set grounds for a sustainable organic development which will be reflected in the future years’ financial results. all leading to modernization and increased efficiency.6 y-o-y change 8% 8% 16% -11% -18% -64% -49% -49% 2014 Projection 25.0 15.

2011) Dow Jones Global Exchanges Index (Jun 17.12/share Registration date: 15 May Ex-divi date: 13 May 17. 2012) BVB ROBVBAACNOR0 ROBVB.674.ro .96 (Buy) 22.bvb.39 22.27 2012 dividend: RON 1. 2013 Jan 31.0 (Hold) 24. 2010) BET Index (Mar 21.BX BVB.BVB share data and statistics Symbol ISIN Reuters Bloomberg Bloomberg BBGID Share price (15 July) Market Cap (15 July) Outstanding shares Free float Included in several indices:      FTSE Mondo Visione Exchanges Index (Nov 9.6mn 7.0 (Outperform) 18.93 22. 2011) BET-BK (Jul 3. 2011) ROTX Index (Sep 19.96 19 17 15 19.48 21.96 EUR 34. 2013 21.64 (Hold) Last report Jul 8. 2013 May 7. 2013 23 www.198 100% 27 Turnover velocity (value traded ÷ average market cap) Liquidity (shares traded ÷ shares outstanding) 2010 2011 2012 2010 2011 2012 154% 42% 40% 104% 32% 37% BVB share evolution (12 months) 25 23 21 24.9 19.27 Feb 13.RO BBG000BBWMN3 RON 19.66 20.97 Analyst coverage Analyst (Company) Vlad Vasilescu (NBG Securities) Raluca Negoescu (Alpha Bank) Andrei Radulescu (SSIF Broker) Roxana Dascalu (SSIF IEBA Trust) 12M TP (Recommendation) 22.

The information contained in this document has not been independently verified and no representation or warranty expressed or implied is made as to.2012 Results & Earnings Conference Call 8/12/2013 – Q2.A.4/25/2013 – GSM 5/10/2013 – Q1. 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.Financial calendar and Contact info Financial Calendar 2/11/2013 – 2012 Preliminary results & Earnings Conference Call 4/24/2013 . and no reliance should be placed on the fairness.36 Carol I Boulevard. performance or events to differ materially from those expressed or implied in such statements.ro Contact person: Anca Olteanu Disclaimer This presentation was prepared by Bursa de Valori Bucuresti. Romania Tel: (+40)(21) 307 95 00 Fax: (+40)(21) 307 95 19 www.ro ir@bvb. District 2.2012 Results & Earnings Conference Call 11/12/2013 – Q3.ro .bvb. 14th Floor Bucharest.bvb. The exchange rate used for the average daily turnover is the official exchange rate announced by the National Bank of Romania. 34 . completeness or correctness of this information.2012 Results & Earnings Conference Call Bursa de Valori Bucuresti S. accuracy. This document does not constitute an offer or invitation to purchase any shares. Past performance is no guarantee of future results. 24 www.