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PZU’s stock prices

Shares of PZU Group in 2014 attracted wide interest. With capitalization of nearly PLN 42 billion at the end of 2014, PZU was the second largest listed polish company, and its share in WIG20 portfolio was 14.4%.

In the face of the events on the global markets, 2014 did not bring any spectacular profits to the stock exchange investors on WSE. The average price/profit ratio for all the shares of domestic companies from the WSE’s main market at the end
of December amounted 19.7. WIG index increased of mere +0.26%.

Not even the largest companies avoided the reduction of share prices. WIG20 with the result of -3.5% finished the second consecutive year with a negative result (+0.5%, including dividends). The companies with lower capitalisation achieved even worse results. WIG250 recorded a -18% decline compared with 2013. During 12 months of the previous year only 4 out of 11 sectoral indices recorded any increase. WIGEnergy recorded the highest increase (by +23.6%). WIG-Food recorded the highest decrease (by -20.0%).

Evolution of PZU’s share price (%) compared to MSCI indexes (USD)

Evolution of PZU’s share price (%) compared to MSCI indexes (USD)

* Quotations since 12 May 2010 (PZU’s IPO) Source: Reuters

PZU share’s performance

IPO of PZU on the Warsaw Stock Exchange on 12th May 2010 and since its debut it has been included in the WIG20 index.
With capitalization of nearly PLN 42 billion at the end of 2014, PZU was the second largest listed company in Poland, and its share in WIG20 portfolio was 14.4%.

PZU was also included in the following indices of the WSE: WIG, WIG30, WIG-Poland, RESPECT Index and WIGdiv. Since 2012 PZU’s shares are also included in the sustainable development index CEERIUS.

In 2014 PZU’s stock prices fared much better than other WSE (WIG20) or banks (WIG-Banks). The closing price from the last session in 2014 amounted to PZU’s share price development in the years 2010 - 2014 PLN 486, which was a growth by +8.3% compared to the closing price of 31st December 2013 of PLN 448.95. Taking into account PLN 34 per share of the dividend paid in 2014, the PZU shares allowed the investors to earn 15.83%. Thus, PZU was in the top five companies in the WIG20 index with the highest rate of return in 2014. Taking into account PLN 20 of additional dividends from the surplus capital (paid in 2013 in the form of an advance from the profit for 2013), the rate of return from the PZU shares would increase to the level of 20.3%.

Shareholder who bought shares in PZU’s initial public offering, saw the value of his investment grow by 101.3% as at the end of 2014.

During the session on 8th September 2014, the PZU’s share price exceeded the barrier of PLN 500 for the first time (reaching PLN 501.4). The historical maximum closing price (PLN 511 per share) was achieved on 4th November 2014. It is worth noting that the price of PZU’s shares in the IPO in May of 2010 was PLN 312.5. Any investor who bought the shares at that point, doubled the price of compared to the closing price of 31st December 2013 of their investment at the end of 2014. The rate of return on investment in PZU shares, taking into account PLN 143.04 of the accumulated dividends was 101.3%.

PZU’s share price development in the years 2010 - 2014

PZU’s share price development in the years 2010 - 2014

* Quotations since 12 May 2010 (PZU’s IPO) Source: Reuters


PZU Group’s capital market ratios31 December 201431 December 201331 December 201231 December 2011
(P/BV)
Market price per share / book value per share
3.19 2.95 2.64 2.07
BVPS
Book value per share
152.49 152.02 165.24 149.03
(P/E)
Market price per share / earnings per share
14.14 11.77 11.60 11.38
EPS (PLN)
Earnings (losses) per share / number of shares
34.37 38.16 37.68 27.14



PZU’s shares are characterised by a high level of liquidity. At the end of 2014, 59,8% shares were in free float. The average number of transactions per session was 2 495 (an increase by 5.3% y/y). Average daily turnover per session declined. In 2014, it was 163,5 thousand units, which means a drop by 13.1% in comparison to 2013. The highest trading volume (592.5 thousand shares) was recorded on 13 November 2014, that is, on the date of publication of the interim consolidated financial statements of PZU Group for three quarters of 2014.

The price/book value ratio was 3.19, making PZU one of the best-valued companies in the financial market listed on the WSE.

Factors influencing performance of the PZU’s shares

The PZU’s share’s good results were undoubtedly influenced by the consistency with which the Management Board of PZU implemented its PZU 2.0 strategy. Restructuring of PZU Group brings the expected results in terms of cost optimisation and improved operational efficiency. PZU cares about the image of a modern insurer, undertakes innovative health-related projects and introduces innovative solutions. Refreshment of the brand, revitalisation of the branch network and actions aimed at providing a high level of customer service - these are just a few of the initiatives taken by PZU in recent years.

Key events affecting the PZU’s share price in 2014 year

Key events affecting the PZU’s share price in 2014 year

Business decisions of the Management Board, such as ground breaking direct claims handling and the company’s own fleet of replacement cars, are very well-received not only by the customers but also by investors and analysts.

One of the most important events in the course of implementation of PZU’s strategy was acquisition in 2014 insurance companies in Baltic States and Poland. After this transaction was announced (in April 2014), PZU price increased by 3.6%, which resulted in an increase in the market capitalization of PLN 1.3 billion.

High dividends (paid annualy), guaranteeing an attractive dividend rate, also had a positive impact on the share prices. PZU paid the highest dividend to date from the profit from 2013 (PLN 54 per share).

Share statistics1 January – 30 December
2014
1 January – 30 December
2013
1 January – 30 December
2012
1 January – 30 December
2011
Maximum price of shares (PLN) 511.00 477.90 437.20 396.80
Minimum price of shares (PLN) 409.00 385.00 292.10 294.20
The closing price from the last session of the year (PLN) 486.00 448.95 437.00 309.00
Average price per session (PLN) 452.23 432.19 346.07 349.40
Value of the volume (PLN million) 18,400.72 19,970.39 18,152.22 23,315.25
Average value of the volume per session (PLN million) 73.90 80.85 73.19 92.98
Number of transactions 621,224.00 582,205.00 411,635 526,265.00
Average number of transactions per session 2,495.00 2,369.00 1,660.00 2,097.00
Trading volume (million) 40.72 46.49 52.56 66.74
Average trading volume per session 163,553 188,219 211,955.00 265.883
Capitalisation at the end of the period (PLN million) 41,954.10 38,755.75 37,735.96 26,682.86