Bursa de Valori Bucuresti SA ($BVB)

Hello, and welcome to the Bucharest Stock Exchange presentation of the financial results for the first quarter of 2026. My name is Alexandru Stefan, and I am managing the Investor Relations for the Bucharest Stock Exchange. Here with me, we have also Ms. Cristina Radulescu, Manager for Finance Controlling. And we will have a presentation for you that is [indiscernible]. Okay. So talking about the share of the Bucharest Stock Exchange, we have seen that from the beginning of the year, the share price is up 32%. It seems that we are recovering some of the performance over the last 5 years. And if you can look at the chart on the right, you can see the comparison with the main market index. So over the last 5 years, the performance of BVB share has been of more than 100%, while the main index has been of 148%. With the financial results this quarter, we are currently sitting with a price earnings ratio calculated on a trailing 12 months of 21 as well as a price to book of 2.8 also calculated on a trailing 12 months basis. In terms of our shareholding structure, it has been relatively stable. We have registered a slight increase in the number of shareholders compared to the previous quarters. We have also seen recently another shareholder that has crossed the 5% mark. This is BT Asset Management. And of course, we are welcoming them to our shareholder structure. In terms of the trading activity in the first quarter, I would say we had a very good quarter. If we look at the turnover for equity-like instruments, so the first chart, the liquidity has been up 20% compared to the same period of the previous year. If we only look at main market shares, so only regular transactions, this is a similar performance. Liquidity has been up 180%. We have a slight decrease on the fixed income segment, although the fixed income segment is not as material as the equity segment in our financial statements. In terms of offers, although we had an IPO of an equity instrument, the total value of offers has been slightly down, and this has an effect from the fixed income instruments as well, namely the Fidelis government bonds. But we also had -- we also registered an increase in the trading activity on the MTS market that we are managing. Just to add some context for the first quarter of -- as I mentioned, trading activity accelerated sharply with nearly RON 14 billion total turnover. So this is up 40% year-over-year. Equity turnover has been up by almost 200%. In terms of number of trades, this has also stood out with almost 900 trades. This is up 81% year-over-, signaling strong retail participation. Last quarter, we also had the IPO of Electroarge? International. This is an entrepreneurial company. This has made records for the IPO market in terms of subscription in the retail tranche, which has been of almost 6x. The offer has been of RON 580 million. This is EUR 115 million. It also has been a first in terms of closing early after only 5 days, and the final offer price has been on the top of the range. Also, we welcomed a new bond issue of UniCredit with a total value of RON 600 million. This has been the listing of the UniCredit bonds. Also in terms of bonds, if we discuss about government bonds, the Ministry of Finance continued the monthly issuance of government bonds attracting the total value of RON 4 billion. Another very important aspect has been that the ETFs covering indices crossed the RON 1.5 billion in assets under management for the first time ever. In terms of main index, we saw new all-time highs. So the bank index has continued with its momentum built last year and it ended the quarter up by almost 14%, while the total market capitalization crossed the RON 115 billion mark for the first time ever. Also, we saw a very positive development in terms of the number of retail accounts, which has reached 30,000 at the end of the first quarter. This is up by 25% compared to the same period of the previous year. In terms of the second quarter and our expectations, we see that this is a robust start of the second quarter with market pushing higher in terms of main market indices as well as total market capitalization. The main market index broke through the 30,000 mark for the first time ever, a 23% value from the beginning of the year. In terms of total average daily liquidity, this stands close to RON 20 million, so EUR 43 million. This is daily average from the beginning of the year, and this is up 22% compared to full 2025 average daily trading value. We also welcomed the corporate bonds of Vista Bank, which made their debut on the Bucharest Stock Exchange with a bond issue worth EUR 17 million. Also, the Ministry of Finance continues the Fidelis government bond issuances on a monthly basis. And I would say there is also -- there are also public statements regarding potential new IPOs to come, but this will very much depend on the market conditions, which are currently very good as well as on IPO readiness of the respective issuers. One other highlight that I would like to mention is that following the extraordinary general shareholders' meeting, which was held at the end of April 2026, the shareholders approved the distribution of a stock dividend amounting close to RON 8 million through the issuance of bonus shares. Just to sum up this slide. So the first quarter has been very well in terms of liquidity -- we are also encouraged by the momentum that the market has in terms of valuation, in terms of new investors attracted to the market, namely the retail accounts. We also had the IPO of Electroarge? International. And we are seeing a continuation of this trend in the second quarter as far as the second quarter has gone. Now we will jump into the financial highlights, and I will give the floor to Cristina.

Thank you, Alex. Hello, everyone. As Alex already mentioned, we had a very tough quarter. This directly impacted the operating revenues. At individual level, we had a significant increase in operating revenues compared with the first quarter of the previous year. This was driven by the 170% increase in trading revenue, but also supported by the other business segments, market data and the issuers fees. [indiscernible] increase in operating revenues was 70%, supported also by the post-trading segment, which follows the same trend, with an increase in total of 56% year-on-year. Regarding operating expenses, we see increase by 11% both at individual but also at consolidated level, mainly driven by higher personnel costs, mainly from our [indiscernible] started in 2025. In cost operational performance in the first quarter of 2026, a direct impact from the volumes spread, which were significantly higher compared to Q1 2025, but also from the post-trading segment and consolidated endpoint. So in bottom line, with a net profit of RON 7 million both individual and consolidated level in the first 3 months of 2026. So here, I would like to mention that as a [indiscernible], we have [indiscernible] from Q1 2025 when we recorded an additional impairment loss for CCP participation.

Just to mention here, we were also joined by Remus Vulpescu, the CEO of Bucharest Stock Exchange. We will continue with the financial aspects, and then Mr. Vulpescu will be available for questions at the end of the session.

Moving on, a few details on the financial results at individual level. And as I mentioned, operating revenue increased to RON 16 million. Now, this positive evolution was driven by increase in trading revenues of almost RON 8 million versus Q1 2025, supported by higher market liquidity, stronger investment activity and interest impact from the FTSE Russell index rebalancing and increased public offer activity. This was supported by the 18% increase in other revenues - market data and issuer fees. Operating expenses at individual level amounted to RON 7.35 million in Q1 2026, up 11% year-on-year. And are mainly influenced by the increase in personnel expenses, impact from the new hires made during 2025, for positions starting from 2025, and share-based compensation and performance bonuses in line with the operational performance. While in Q1 2025, due to the absence of non-recurring factors, we had a lower base. Operating profit reached RON 8.6 million, higher compared with Q1 2025, determined mainly by the evolution of trading revenues - and the operating margin reaching a significant growth. But as I mentioned, we have a base effect from the additional impairment in 2025 of RON 1 million. Also, I would like to mention that in Q1 2026, we had no additional indications or information that the portfolio or rating required impairment, as it was already recorded and presented in the financial statements of 2025. Net profit at individual level was RON 7.5 million in Q1. Consolidated financial cost performance Q1 2026. So operating revenue has been increased from RON 28 million, 70% higher year-on-year. Almost RON 5 million favorable evolution was coming from the trading segment, but also by the increase in revenues of clearing and settlement segment, which were directly influenced by the data and the main capitalization of the retail segment. Consolidated operating expenses rose by 11% year-on-year to RON 20 million in Q1 2026. And as I mentioned, this is impacted from the higher personnel cost, which was driven by the expansion of staff necessary for CCP authorization, but also by the increase - the increases in salaries during 2025. There were some salary adjustments that will result in line with the remuneration policy. Comparable operating profit reaches RON 8.2 million compared with a loss of EUR 1.0 million reported in Q1 2025, significantly impacted by the non-recurring impairment recorded back then. Financial result is at an amount of RON 1.2 million. And this is mainly represented by the interest income generated on deposits. Net profit at group level reached RON 7.2 million. Okay. Moving on to the financial performance by segments. The trading segment represented the main share in terms of operating revenue at the group level, with a share of 56%. So trading revenues represent 78%, so a significant increase - so more development in Q1 2026, so by 10 points compared with the previous quarter. Post-trading segment represents 32% of group operating revenues and reaching RON 9 million in Q1 2026, a strong increase year-on-year. Registry segment revenues recorded RON 3.14 million in Q1 2026. And this represents an increase of 7% due to indexation of tariffs as well as increased activity. CCP is in the process of authorization and operationalization, with direct impact on the level of operating expenses, being currently at maximum leverage according to the business plan. A few details on the operating expenses at individual level. As I mentioned, the increase of 11% compared with Q1 2025, mainly driven by the personnel expenses. So the effect from 2025 was mainly determined by the increase in number of FTEs in order to cover the operational needs and regulatory requirements. And remuneration starting 2025 and bonus schemes, which were not reported in 2025 - at BVB operating expenses. Regarding service provided by third parties, we recorded a 9% decrease mainly in some lines of services provided by vendors, lower compared to previous year. Other operating expenses remain at the same level compared to Q1 2025, but mainly driven by increase in depreciation and amortization, compensated by the lower marketing intent expenses. At consolidated level, operating expenses reported in Q1 2026 were RON 20 million, mainly represented by personnel costs reaching RON 10 million, an increase of RON 1.8 million compared with 2025, mainly due to the increase in employees in CCP and BVB, as I mentioned, in 2025, but also from the pay adjustments according to the remuneration policy. Third-party services at group level amount to RON 3.5 million, stable compared with Q1 2025. And 61% of operating system management services are recorded mainly by CCP, but also together with other services regarding IT consultancy and support. Other operating expenses at consolidated level of RON 2.2 million, 8% increase, mainly influenced by the increase in depreciation and amortization cost, which represents 56% of total. Regarding financial position, main highlights. At individual level, share capital increase, which was recently finalized at the end of March, was presented mainly by cash contribution from the shareholders at the level of liquidity in amount of RON 60 million, but also at the level of current liabilities. Finally, the approval of the Trade Register for the share capital increase of RON 5.5 million, new share capital of BVB being at RON 93.9 million. At consolidated level, our total assets have increased by 2% compared with the end of 2025. And the growth is driven mainly by the increase in liquidity from the capital increase at the level of non-current assets, but also by the recording of intangible assets related to the CCP development. Net equity increased 13% up to almost RON 200 million, driven by higher proceeds generated by the share capital injection before BVB, but also by placing in short-term investments and bank deposits. Liabilities at group level increased 43% compared with 2025, up to RON 8.6 million. But the increase is driven by the shareholder side increase and also by deferred income related to issuer maintenance fees, which were charged for the whole year 2026. Regarding the stock dividend, which was recently approved at the end of April, we already progressed with the process in order to increase the share capital and issue a new level of shares, which will be [indiscernible], yes.

Okay. So yes, I believe we have reached the conclusion of our presentation in terms of the overall market as well as the financial results. We would now give the floor for questions and answers. And we are happy to take any questions and...

2 things I'd like to add. Hello, everyone. First of all, thank you, Cristina. Thank you, Alex. We are actually thrilled and thankful for 2 aspects I would like to point out before the Q&A. One is the rally of our shareholders in support of the CCP project. After some uncertainty mid-2024, we've seen a very strong and confirmed rally in supporting the Bucharest Stock Exchange as main shareholder of the central counterparty. So for 2024, our shareholders have waived their dividend, and for 2025, they have approved to be granted stock dividend, therefore constituting liquidity reserve for the support of CCP by the Bucharest Stock Exchange for at least 1 year. And we are quite confident in the success of our authorization process, which is very advanced. And we hopefully will be able to announce something when we will present the second quarter 2026. And the other thing is the market dynamics in Romania after the very recent political development has not diverged from regional market dynamics, which is for us a very, very good and strong indication that the market is actually seeing that Romania will keep its direction and its commitments international level. I will be glad to answer your questions together with Cristina and Alex here. So please.

So we have one question, and I will try to read it out loud first. So the question is, can you please provide some color on the Moldova project?

Moldova project is going well. As you know, the Bucharest Stock Exchange is a minority shareholder in the newly established Moldova International Stock Exchange. And we are also a technology provider. We discussed this in our previous interaction. Software-as-a-Service contract was signed and the implementation has begun. We are on schedule currently with the implementation of the Software-as-a-Service agreement, and the Moldova International Stock Exchange is on schedule currently with the authorization dossier that they are constituting. There's some recruitment. There's a lot of training. There's a lot of institutional interaction. It's a live and lively project that we are having there. And it's quite satisfying so far, but we are going to wait and only make it good news when it will be good news in terms of authorization granted by the National Commission for Financial Markets of the Republic of Moldova.

: So we have another question. I will read it out loud. Can we expect a possible announcement in CCP in the second quarter of 2026...

Well, the calendar of the authorization process is ending on July 2, 2026. So we should be able to announce something either before -- on or before June 30. And hopefully, it's not going to be on the 1st or 2nd of July. So my personal assessment at this moment is yes, we will be able to announce something regarding CCP.RO during the second quarter 2026.

: Okay. Just as a reminder, please note that you can share any question towards a follow-up after the video conference, and we will be happy to answer them. With this being said, we would like to thank you again for participating in the video conference for the presentation of the financial results of the Bucharest Stock Exchange for the first quarter of 2026. And thank you and see you at the next video conference.

Thank you, everyone.

Thank you.

Bye.