Oslo Børs VPS Holding ASA 4th Quarter January 2008
Overview
4 Fourth quarter highlights Letter of intent for strategic co-operation with the London Stock Exchange Considers Central counterparty (CCP) arrangement for shares Somewhat lower level of market activity Goodwill and system write-down of NOK 376 million Higher amortisation due to change in amortisation periods Proposed dividend of NOK 5 per share Operating revenues: NOK million (proforma 321.8) Operating profit before depreciation and write-downs: NOK million (proforma 189.1) Operating profit: NOK million (proforma 169.1) Earnings for the period: NOK million (proforma 128.2) Earnings per share: NOK (actual 2.97/proforma 2.98)
5 The market activity in fourth quarter Compared to Q407Q308 EquitiesNumber of transactions35%10% EquitiesValue of turnover-50%-30% SettlementNumber of transactions40%17% Derivatives Number of exchange traded contracts traded and cleared -3%-1% Market dataNumber of end users8%3%
6 Events and activities in the fourth quarter New trading system under consideration CCP under consideration Link Up Markets Chi-X, Turquoise, Nasdaq OMX Europe and BATS Europe has started trading in Norwegian stocks Turbulent market conditions
7 Activities Evaluate the value chain and implement measures based on the evaluation Intensify market activities both locally and internationally Development and improvement of products in all areas Co-ordinated focus on the retail segment, including considering new system for fund products New trading systems Realise synergies
8 Activities 2009 Implement a new trading system Implement central counterparty arrangements for trading in equity instruments Improve the efficiency of operations and development Increased focus on strong sectors Further development of the derivatives area Increase revenue from value-adding services
Financial review
10 Important information This section of the presentation contains proforma financial information and historical financial information for periods in which VPS, Oslo Clearing and Oslo Market Solutions (part of Market Data and Solutions) were not a part of Oslo Børs VPS Holding Group. The numbers are derived from actual numbers for VPS, Oslo Clearing and Oslo Market Solutions and have been adjusted for differences between Norwegian GAAP and IFRS and depreciation of excess values identified in the purchase price allocation that has been prepared by independent financial advisers.
11 P&L 4th Quarter 2008
12 Oslo Børs Transactions up 35%, value of turnover down 50% 2 new listings in Q4 – net decrease 5 Trading revenues down NOK 11 million Listing/admission/prospectus – down NOK 16 million Market data – down NOK 1 million
13 VPS Transactions processed up 40% - revenues down NOK 3 million Investor products – revenues down NOK 4 million Issuer products – revenues down NOK 2 million Fund products – revenues down NOK 3 million Writedown of goodwill – NOK 250 million
14 Oslo Clearing Reduction in revenues from all products Reclassification between revenues/costs Writedown of goodwill and systems – NOK 87 million
15 Oslo Market Solutions Increased internal revenues and costs Reduction in capitalising of internal resources Writedown of goodwill and systems – NOK 39 million
16 Balance sheet
17 Cash flow
18 Equity
19 Share price
20 Largest shareholders
21
22 Breakdown revenues – Oslo Børs segment
23 Breakdown revenues – VPS segment (proforma)