2020
CONSOLIDATED FINANCIAL STATEMENTS
OF THE GIEŁDA PAPIERÓW WARTOŚCIOWYCH
W WARSZAWIE S.A. GROUP
FOR THE YEAR ENDED 31 DECEMBER 2020
1
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN'000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
TABLE OF CONTENTS
CONSOLIDATED STATEMENT OF FINANCIAL POSITION.................................................................. 3
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME ........................................................... 5
CONSOLIDATED STATEMENT OF CASH FLOWS ................................................................................ 6
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY ................................................................... 8
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS .............................................................. 9
1. General information, basis of preparation of the financial statements, accounting policies ........................9
1.1. Legal status .................................................................................................................................................... 9
1.2. Scope of activities of the Group ..................................................................................................................... 9
1.3. Approval of the financial statements ........................................................................................................... 10
1.4. Composition and activity of the Group ........................................................................................................ 10
1.5. Statement of compliance ............................................................................................................................. 12
1.6. New standards and interpretations ............................................................................................................. 12
1.6.1. Standards and interpretations adopted by the European Union ............................................. 12
1.6.2. Standards and interpretations awaiting adoption by the European Union ............................. 12
1.7. The scope and methods of consolidation .................................................................................................... 13
1.8. Accounting policies and other information ................................................................................................. 13
1.8.1. Functional and presentation currency ..................................................................................... 13
1.8.2. Basis of preparation ................................................................................................................. 13
1.8.3. Estimates and judgments ......................................................................................................... 13
1.8.4. Selected accounting policies .................................................................................................... 13
1.8.5. Evaluation of balances presented in foreign currencies .......................................................... 13
1.8.6. Segment reporting ................................................................................................................... 14
1.9. Impact of the SARS-CoV-2 pandemic ........................................................................................................... 14
2. Financial risk management .......................................................................................................................15
2.1. Financial risk factors .................................................................................................................................... 15
2.2. Market risk ................................................................................................................................................... 15
2.2.1. Cash flow and fair value interest risk ....................................................................................... 15
2.2.2. Foreign exchange risk ............................................................................................................... 16
2.2.3. Price risk ................................................................................................................................... 18
2.3. Credit risk ..................................................................................................................................................... 18
2.4. Liquidity risk ................................................................................................................................................. 18
2.5. Capital management .................................................................................................................................... 20
3. Notes to the consolidatedstatement of financial position ..........................................................................21
3.1. Property, plant and equipment ................................................................................................................... 21
3.2. Intangible assets .......................................................................................................................................... 23
3.3. Investment in entities measured by the equity method ............................................................................. 27
3.4. Leases ........................................................................................................................................................... 29
3.4.1. Qualitative and quantitative information about lease transactions – Group as a lessee ........ 30
3.4.2. Qualitative and quantitative information about lease transactions – Group as a lessor ......... 31
3.4.3. Selected judgments and estimates related to leases ............................................................... 31
3.4.4. Right-of-use assets ................................................................................................................... 32
3.4.5. Lease liabilities ......................................................................................................................... 33
3.4.6. Sublease receivables ................................................................................................................ 34
3.5. Financial assets ............................................................................................................................................ 35
3.5.1. Classification and measurement of financial assets ................................................................. 35
3.5.2. Impairment of financial assets ................................................................................................. 36
3.5.3. Financial assets measured at fair value through other comprehensive income...................... 37
3.5.4. Trade receivables and other receivables ................................................................................. 38
3.5.5. Financial assets measured at amortised cost ........................................................................... 40
3.5.6. Cash and cash equivalents ....................................................................................................... 41
3.6. Contract assets and contract liabilities ........................................................................................................ 42
3.7. (Non-current) prepayments ......................................................................................................................... 42
2
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN'000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
3.8. Other current assets .................................................................................................................................... 42
3.9. Equity ........................................................................................................................................................... 43
3.9.1. Share capital ............................................................................................................................. 43
3.9.2. Other reserves .......................................................................................................................... 44
3.9.3. Retained earnings .................................................................................................................... 44
3.9.4. Dividend ................................................................................................................................... 44
3.9.5. Earnings per share .................................................................................................................... 45
3.10. Bond issue liabilities ..................................................................................................................................... 45
3.11. Employee benefits payable .......................................................................................................................... 46
3.11.1. Retirement benefits ................................................................................................................. 47
3.11.2. Other employee benefits ......................................................................................................... 47
3.12. Accruals and deferred income ..................................................................................................................... 48
3.13. Other liabilities ............................................................................................................................................. 49
3.14. Trade payables ............................................................................................................................................. 49
3.15. Deferred income tax .................................................................................................................................... 50
3.16. Provisions for liabilities and other charges .................................................................................................. 51
4. Notes to the consolidated statement of comprehensive income ................................................................52
4.1. Sales revenue ............................................................................................................................................... 52
4.2. Operating expenses ..................................................................................................................................... 54
4.2.1. Salaries and other employee costs........................................................................................... 54
4.2.2. External service charges ........................................................................................................... 55
4.3. Other income ............................................................................................................................................... 56
4.4. Other expenses ............................................................................................................................................ 56
4.5. Financial income .......................................................................................................................................... 56
4.6. Financial expenses ....................................................................................................................................... 57
4.7. Income tax ................................................................................................................................................... 57
5. Note to the consolidated statement of cash flows .....................................................................................59
6. Other notes ...............................................................................................................................................60
6.1. Financial instruments ................................................................................................................................... 60
6.2. Segment reporting ....................................................................................................................................... 61
6.3. Grants .......................................................................................................................................................... 64
6.4. Related party transactions ........................................................................................................................... 65
6.4.1. Information about transactions with the State Treasury and entities which are related parties
of the State Treasury ................................................................................................................ 65
6.4.2. Transactions with entities measured by the equity method ................................................... 66
6.4.3. Other transactions ................................................................................................................... 67
6.5. Information on remuneration and benefits of the key management personnel ........................................ 67
6.6. Contracted investments ............................................................................................................................... 68
6.7. IRGiT Clearing Guarantee System ................................................................................................................ 68
6.8. Guarantees ................................................................................................................................................... 69
6.9. Contingent assets and liabilities .................................................................................................................. 69
6.9.1. Contingent assets ..................................................................................................................... 69
6.9.2. Contingent liabilities ................................................................................................................ 69
6.10. Uncertainty about VAT ................................................................................................................................ 70
6.11. Consolidation of GPW Ventures ASI S.A. and GPW Tech S.A. ...................................................................... 70
6.12. Changes of presentation in the statement of comprehensive income and the statement of cash flows ... 71
6.13. Events after the balance sheet date ............................................................................................................ 72
3
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN'000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
2020 r.
2019
(restated)
Non-current assets: 588,819 586,114
P roperty, plant and equipment 3.1. 9 7,3 3 3 1 0 1,9 6 8
Right-of-us e ass ets 3.4.4. 1 8,0 3 1 2 2,7 2 5
Intangible ass ets 3.2. 2 47 ,3 08 2 46 ,6 49
Inves tment in entities measured by equity method 3.3. 2 20 ,3 95 2 10 ,3 27
Subleas e rec eivables 3.4.6. 1 79 5 2 3
Deferred tax as s et 3.15. 1 ,4 4 2 4 6 4
Financial as sets meas ured at fair value through other
comprehensive income
3.5.3.
1 15 1 2 0
P repayments 3.7. 2 ,39 3 2 ,04 3
O ther non-c urrent ass ets 1 ,62 3 1 ,29 5
Current assets: 773,362 670,703
Inventories 1 1 4 7
C orporate inc ome tax rec eivable - 4 ,1 32
T rade rec eivables and other rec eivables 3.5.4. 5 5,2 2 9 4 5,2 4 3
Subleas e rec eivables 3.4.6. 1 37 1 9 0
C ontrac t as sets 3.6. 1 ,69 6 2 ,41 5
Financial as sets meas ured at amortised c os t 3.5.5. 2 94 ,9 86 3 28 ,9 98
O ther current ass ets 3.8. 1 40 4 ,4 0 4
C as h and cash equivalents 3.5.6. 4 21 ,1 63 2 85 ,2 74
TOTAL ASSETS 1,362,181 1,256,817
Note
As at 31 December
The attached Notes are an integral part of these Financial Statements.
4
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN'000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
CONSOLIDATED STATEMENT OF FINANCIAL POSITION – CONTINUED
2020 r.
2019
(restated)
Equity: 924,167 873,486
Equity of shareholders of the parent entity: 9 23 ,5 4 8 8 72 ,8 8 1
Share capital 3.9.1. 63,865 63,865
O ther res erves 3.9.2. 1,063 1,089
Retained earnings 3.9.3. 858,620 807,927
Non-c ontrolling interests 6 19 6 0 5
Non-current liabilities: 281,570 283,502
Liabilities on bonds is s ue 3.10. 24 4 ,7 3 8 2 4 4 ,35 0
Employee benefits payable 3.11. 1 ,11 6 9 6 0
Lease liabilities 3.4.5. 1 1 ,29 8 1 6 ,2 0 4
C ontract liabilities 3.6. 1 ,17 0 5 7 2
A c cruals and deferred inc ome 3.12. 1 2,4 6 1 6,3 89
Deferred tax liability 3.15. 2 ,11 3 5 ,3 8 6
O ther liabilities 3.13. 8 ,67 4 9 ,6 4 1
Current liabilities: 156,444 99,829
Liabilities on bonds is s ue 3.10. 1 ,16 7 1 ,9 3 2
T rade payables 3.14. 1 5,1 1 7 1 1 ,5 84
Employee benefits payable 3.11. 2 3,7 5 0 1 7 ,1 75
Lease liabilities 3.4.5. 5,4 63 5,1 81
C IT payable 6 ,74 4 1 ,5 5 4
C ontract liabilities 3.6. 5 ,58 2 4 ,3 6 4
A c cruals and deferred inc ome 3.12. 2 ,91 2 7 6 7
P rovis ions for other liabilities and other charges 3.16. 2 6,8 4 4 1 5 ,5 63
VAT correction 6.10. 26,844 15,468
O ther liabilities 3.13. 6 8,8 6 5 4 1 ,7 09
TOTAL EQUITY AND LIABILITIES 1,362,181 1,256,817
Note
As at 31 December
The attached Notes are an integral part of these Financial Statements.
5
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN'000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
2020 2019
(restated)
Sales revenue 4.1. 4 0 3 ,77 6 33 6 ,08 1
O perating expens es 4.2. (20 8 ,50 5 ) (18 1 ,1 4 9 )
Gains /(loss es) on impairment of receivables 3.5.4. (9 5 0 ) (1 ,9 0 1 )
O ther income 4.3. 5,6 9 0 6 ,61 6
O ther expenses 4.4. (11 ,6 9 1 ) (3 ,34 5 )
Operating profit 188,320 156,302
Financial inc ome, inc l.: 4.5. 6,1 6 6 8 ,91 1
I nterest income under the effective interes t rate method 3,959 8,841
Financial expenses , incl.: (21 ,1 7 0 ) (2 6 ,63 8 )
VAT correction 6.10. (11,376) (15,468)
Share of profit/(los s es ) of entities meas ured by equity method 3.3. 1 5,7 4 8 1 1 ,2 62
Profit before tax 189,064 149,837
Income tax 4.7. (37 ,6 2 4 ) (3 0 ,5 0 3 )
Profit f or the period 151,440 119,334
Gains /(Los s es ) on valuation of financial as s ets meas ured at fair
value through other comprehens ive income (entities meas ured by
equity method)
2 0 (107)
T otal items that may be rec las s ified to profit or los s 2 0 (1 0 7 )
Gains /(Los s es ) on valuation of financial as s ets meas ured at fair
value through other comprehens ive income
3.9.2. (4 ) 15
Actuarial gains /(los s es) on provis ions for employee benefits after
termination
(42) (86)
T otal items that will not be rec lass ified to profit or loss 3.9.2. (4 6 ) (7 1 )
Total other comprehensive income after tax (26 ) (178)
Total comprehensive income 151,414 119,156
Profit for the period attributable to s hareholders of the parent entity 151,426 119,320
Profit for the period attributable to non-controlling interests 14 14
T otal profit for the period 151,440 119,334
Comprehens ive income attributable to s hareholders of the parent
entity
151,400 119,142
Comprehens ive income attributable to non-controlling interests 14 14
T otal c omprehensive inc ome 151,414 119,156
Basic / Diluted earnings per share (PLN) 3.9.5. 3.61 2.84
Note
Year ended 31 December
4.6., 6.12.
The attached Notes are an integral part of these Financial Statements.
6
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN'000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
CONSOLIDATED STATEMENT OF CASH FLOWS
2020
2019
(restated)
Total net cash f lows from operating activities 231,375 191,077
Net prof it of the period 151,440 119,334
Adjustments: 112,783 113,710
Income tax 4.7. 3 7 ,6 2 4 3 0 ,5 0 3
Deprec iation and amortisation 5. 3 6 ,33 1 3 7 ,0 8 6
Share of (profit)/loss of entities measured by equity method (1 5 ,7 4 9) (11 ,2 6 2 )
(Gains ) on financ ial as s ets measured at amortis ed cos t 3.5.5. (2,4 8 5 ) (5 ,1 62 )
Interes t on bonds 3.10. 6 ,53 5 7 ,2 6 9
O ther adjus tments 5. 5 ,4 54 (1 ,99 5 )
C hange of as sets and liabilities : 4 5,0 7 3 5 7 ,27 1
I nventories 36 17
Trade receivables and other receivables (excluding dividend
payable)
3.5.4. (9,986) 24,088
Trade payables 3.14. 3,533 3,009
Contract as s ets 3.6. 719 (1,200)
Contract liabilities 3.6. 1,816 1,355
Non-current prepayments 3.7. (350) 1,149
Accruals and deferred income 3.12. (442) 1,564
Employee benef its payable 3.11. 6,731 2,710
Other liabilities (excluding contracted inves tments and
dividend payable)
3.13. 33,039 9,084
Provis ions for liabilities and other charges 3.16. 11,281 15,495
Other non-current liabilities (1,304) -
Interest on tax payable (paid)/ref unded - (1,272)
Income tax (paid)/refunded (32,848) (40,695)
Year ended 31 December
Note
The attached Notes are an integral part of these Financial Statements.
7
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN'000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
CONSOLIDATED STATEMENT OF CASH FLOWS – CONTINUED
2020
2019
(restated)
Total cash flows from investing activities: 4,918 48,448
In: 947,087 846,119
Sale of property, plant and equipment and intangible as s ets 1 03 4 ,27 6
Dividends received 6.4.2. 5 ,6 99 7 ,00 6
Sale of financial ass ets meas ured at amortised cos t 9 37 ,1 7 2 8 2 9 ,28 1
Interes t on financial ass ets measured at amortised cos t 3.5.5. 3 ,9 7 0 5 ,2 2 3
Sublease payments (interest) 1 2 2 6
Sublease payments (princ ipal) 3.4.6. 1 3 1 2 0 7
Repayment of a loan by a related party - 1 0 0
Out: (942,169) (797,671)
P urchase of property, plant and equipment and advances for
property, plant and equipment
(1 3 ,4 1 3) (9 ,2 3 7 )
P urchase of intangible ass ets and advances for intangible
as s ets
(2 3 ,0 2 6) (7 ,4 9 6 )
P urchase of financial ass ets measured at amortised cos t (9 0 4 ,6 47 ) (7 8 0 ,83 8 )
an granted to a related party 6.4.2. (5 0 0 ) (1 0 0 )
P urchase of shares of a related party (5 8 3 ) -
Total cash flows from financing activities: (100,948) (142,675)
In: 13,499 3,704
Grants rec eived 1 3,4 9 9 3 ,70 4
Out: (114,447) (146,379)
Dividend paid 3.9.4. (1 0 0 ,7 1 6) (1 33 ,4 4 9 )
Interes t paid on bonds 3.10. (7 ,3 00 ) (7 ,2 7 5 )
Zwróc one dotac je (5 0 6 ) -
Leas e payments (interest) (6 2 1 ) (74 5 )
Leas e payments (princ ipal) 3.4.6. (5 ,30 4 ) (4,9 1 0 )
Net (decrease)/increase in cash and cash equivalents 135,345 96,850
I mpact of fx rates on cash balance in currencies 544 (300)
Cash and cash equivalents - opening balance 3.5.6. 285,274 188,724
Cash and cash equivalents - closing balance 3.5.6. 421,163 285,274
Note
Year ended 31 December
4.5, 3.4.6
3.3., 4.6.
4.5, 3.4.6
The attached Notes are an integral part of these Financial Statements.
8
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN'000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share capital
Other
reserves
Retained
earnings
Total
As at 1 January 2020 63,865 1,089 807,927 872,881 605 873,486
Dividends - - (10 0,733) (100,733) - (100,733)
Transactions with owners
recognised directly in equity
Net profit for 2020 - - 1 51 ,4 2 6 151,426 1 4 151,440
O ther comprehens ive income - (26 ) - (26) - (26)
Comprehensive income for 2020 - (26 ) 151,426 151,400 14 151,414
As at 31 December 2020 63,865 1,063 858,620 923,548 619 924,167
Non-
controlling
interests
Total equity
Equity of shareholders of the parent entity
Share capital
Other
reserves
Retained
earnings
Total
As at 1 January 2019 63,865 1,267 822,078 887,210 590 887,800
Dividends - - (133,471 ) (133,471) - (133,471)
Transactions with owners
recognised directly in equity
Net profit for 2019 - - 1 1 9 ,3 20 119,320 1 4 119,334
O ther comprehens ive income - (1 7 8) - (178) - (178)
Comprehensive income for 2019 - (178) 119,320 119,142 14 119,156
As at 31 December 2019 63,865 1,089 807,927 872,881 605 873,486
Equity of shareholders of the parent entity
Non-
controlling
interests
Total equity
The attached Notes are an integral part of these Financial Statements.
9
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN'000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. GENERAL INFORMATION, BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS, ACCOUNTING
POLICIES
1.1. LEGAL STATUS
The parent entity of the Giełda Papierów Wartościowych w Warszawie S.A. Group (“the Group”, “the GPW Group”) is Giełda
Papierów Wartościowych w Warszawie Spółka Akcyjna (“the Warsaw Stock Exchange”, “the Exchange”, “GPW”,
“the Company” or “parent entity”) with its registered office in Warsaw, ul. Książęca 4 . The Company was established
by Notarial Deed on 12 April 1991 and registered in the Commercial Court in Warsaw on 25 April 1991, entry no. KRS
0000082312, Tax Identification Number 526-025-09-72, Regon 012021984. GPW is a joint-stock company listed on GPW’s
Main Market since 9 November 2010. The Company has not changed its name or other identification details since the end of
1.2. SCOPE OF ACTIVITIES OF THE GROUP
The Group operates the following markets:
GPW Main Market: trade in equities, other equity-related financial instruments and other cash markets
instruments as well as derivatives;
NewConnect: trade in equities and other equity-related financial instruments of small and medium-sized
enterprises;
Catalyst: trade in corporate, municipal, co-operative, Treasury and mortgage bonds operated by the Exchange and
BondSpot S.A. (“BondSpot”);
The Group also organises and operates trade on the markets operated by Towarowa Giełda Energii S.A. (“TGE”) and
InfoEngine S.A. (“IE”, “InfoEngine”):
Energy Market: trade in electricity on the Intra-Day Market, the Day-Ahead Market, the Commodity Forward
Instruments Market, Electricity Auctions,
Gas Market: trade in natural gas with physical delivery on the Intra-Day and Day-Ahead Market, the Commodity
Forward Instruments Market, Gas Auctions,
Property Rights Market: trade in property rights in certificates of origin of electricity from Renewable Energy
Sources and energy efficiency,
Financial Instruments Market: trade in CO
2
emission allowances,
Market Operator Platform: InfoEngine provides market operator services and balancing services to electricity
traders, producers and large industrial customers,
Agricultural Market: electronic platform of agricultural commodity trade operated by TGE and IRGiT.
On 4 May 2020, TGE opened trading on the Organised Trading Facility (“OTF”) including the following markets: Electricity
Forwards Market, Gas Forwards Market and Property Rights Forward Market where financial instruments are traded.
The GPW Group also operates:
Clearing House and Settlement System operated by Izba Rozliczeniowa Giełd Towarowych S.A. (“IRGiT”)
performing the functions of an exchange settlement system for transactions in exchange-traded commodities,
Trade Operator and Balancing Entity services – both types of services are offered by InfoEngine (balancing
involves the submission of power sale contracts for execution and clearing of non-balancing with the grid operator,
i.e., differences between actual power production or consumption and power sale contracts accepted for execution),
WIBID and WIBOR Reference Rates calculation and publication; they are used as benchmarks in financial
contracts and instruments, including credit and bond contracts, operated by GPW Benchmark S.A. (“GPWB”),
Provision and publication of indices and non-interest rate benchmarks including the Exchange Indices,
TBSP.Index and CEEplus, operated by GPWB,
Activities in education, promotion and information concerning the capital market.
10
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN'000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
1.3. APPROVAL OF THE FINANCIAL STATEMENTS
The financial statements were authorised for issuance by the Management Board of the Exchange on 9 March 2021.
1.4. COMPOSITION AND ACTIVITY OF THE GROUP
At 31 December 2020 the Exchange and its following subsidiaries:
Towarowa Giełda Energii S.A. (“TGE”), the parent entity of the Towarowa Giełda Energii S.A. Group (“TGE Group”),
which includes TGE and: Izba Rozliczeniowa Giełd Towarowych S.A. (“IRGiT”) and InfoEngine S.A. (“InfoEngine”),
BondSpot S.A. (“BondSpot”),
GPW Benchmark S.A. (“GPWB”),
GPW Ventures ASI S.A. (“GPWV”), the parent entity of the GPW Ventures ASI S.A. Group (“GPWV Group”)
which includes GPWV and: GPW Ventures Asset Management Sp. z o.o. (“GPWV AM”),
GPW Tech S.A. (“GPWT”)
comprised the Warsaw Stock Exchange Group.
These consolidated financial statements are the first financial statements to consolidate the GPW Ventures ASI S.A. Group
and the company GPW Tech S.A. The consolidated statement of financial position as at 31 December 2019 was restated
to reflect full consolidation of the group and the company which were initially presented as at 31 December 2019 as non-
consolidated entities on grounds of no significance. See Note 6.12 for details.
The following are the associates over which the Group exerts significant influence and joint ventures over which the Group
has joint control:
Krajowy Depozyt Papierów Wartościowych S.A. (“KDPW”), the parent entity of the KDPW S.A. Group
(“KDPW Group”),
Centrum Giełdowe S.A. (“CG”),
Polska Agencja Ratingowa S.A. (“PAR”).
Name of the entity
Registered office of
the entity
Scope of operations
Shareholders
Towarowa Giełda
Energii S.A.
ul. Książęca 4
00-498 Warsaw
Operation of a commodity exchange on which
the following may be traded: electricity, liquid
and gas fuels, production limits, pollution
emission limits, property rights whose value
depends directly or indirectly on the value of
electricity, liquid or gas fuels, operation of a
register of certificates of origin of energy from
renewable energy sources and from
cogeneration and agricultural biogas.
GPW: 100%
Izba Rozliczeniowa
Giełd Towarowych S.A.
ul. Książęca 4
00-498 Warsaw
Operation of a clearing house and a
settlement system for transactions
made on the regulated market,
Clearing transactions made on TGE,
Other activities related to organising and
conducting clearing or settlement of
transactions.
TGE: 100%
InfoEngine S.A.
ul. Książęca 4
00-498 Warsaw
Trade Operator services on the
electricity market,
Trade balancing services on the
electricity market.
TGE: 100%
11
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN'000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
Name of the entity
Registered office of
the entity
Scope of operations
Shareholders
BondSpot S.A.
ul. Książęca 4
00-498 Warsaw
Poland
Operation of an over-the-counter
market and conducting other activities
related to organising trading in debt
instruments,
Organising an alternative trading
system,
Organising and conducting all activities
which supplement and support the
functioning of the markets operated by
BondSpot.
GPW: 96.98%
GPW Benchmark S.A.
ul. Książęca 4
00-498 Warsaw
Poland
Organiser and administrator of WIBID
and WIBOR reference rate fixings,
Administrator of exchange indices
(including WIG20, mWIG40, sWIG80)
using the INDEXATOR system.
GPW: 100%
GPW Ventures ASI S.A.
ul. Książęca 4
00-498 Warsaw
Poland
The company is a fund of funds and plans to
invest assets of many investors in venture
capital (VC) funds, mainly funds which plan to
invest in microforms and SMEs or divest
through pre-IPOs and IPOs.
GPW: 100%
GPW Ventures Asset
Management sp. z o.o.
ul. Książęca 4
00-498 Warsaw
Poland
Management of investment funds in the form of
Alternative Investment Companies which it
plans to set up jointly with external
professional financial and industry investors
(the company was registered in the National
Court Register on 29 October 2020).
GPWV: 100%
GPW Tech S.A.
ul. Książęca 4
00-498 Warsaw
Poland
Designing, developping and commercialising IT
solutions dedicated to the financial market.
GPW: 100%
Krajowy Depozyt
Papierów
Wartościowych S.A.
ul. Książęca 4
00-498 Warsaw
Poland
Maintaining a depository for securities,
Clearing transactions made on financial
instruments exchanges, commodity
exchanges including energy exchanges,
among others via the subsidiary
KDPW_CCP S.A.,
Conducting other activities related to
trading in securities and other financial
instruments,
Administering the Guarantee Fund,
Operating a trade repository and issuing
LEI codes.
GPW: 33.33%
Centrum Giełdowe S.A.
ul. Książęca 4
00-498 Warsaw
Poland
Leasing of real estate on own account,
Real estate management,
Activities in respect of building, urban
and technological design,
Undertaking general building works
related to constructing buildings.
GPW: 24.79%
Polska Agencja
Ratingowa S.A.
ul. Książęca 4
00-498 Warsaw
Poland
Planned core business: credit rating of
companies based on scoring and non-Treasury
debt rating services, in particular for small and
medium-sized companies.
GPW: 35.86%
12
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN'000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
1.5. STATEMENT OF COMPLIANCE
These financial statements have been prepared in accordance with the International Financial Reporting Standards (“IFRS”
1
) as adopted by the European Union.
The following new standards and amendments of existing standards adopted by the European Union are effective for
the financial statements of the Group for the financial year started on 1 January 2020:
Update to references of the IFRS Conceptual Framework,
Amendments to IFRS 3 Business Combinations – definition of a business,
Amendments to IAS 1 Presentation of Financial Statements and IAS 8 Accounting Policies, Changes in Accounting
Estimates and Errors – Definition of material,
Amendments to IFRS 9 Financial Instruments, IAS 39 Financial Instruments: Recognition and Measurement, and
IFRS 7 Financial Instruments: Disclosures - Interest Rate Benchmark Reform.
Those IFRS amendments had no significant impact on data presented in these Consolidated Financial Statements.
The key accounting policies applied in the preparation of these Consolidated Financial Statements are presented below.
These policies were continuously followed in all presented periods, unless indicated otherwise.
1.6. NEW STANDARDS AND INTERPRETATIONS
The Group did not use the option of early application of new standards and interpretations already published and adopted
by the European Union or planned for adoption in the near future which will take effect after the balance sheet date.
1.6.1. STANDARDS AND INTERPRETATIONS ADOPTED BY THE EUROPEAN UNION
The following amendments already adopted by the European Union will take effect for periods starting after 1 January 2021:
Amendments to IFRS 4 Insurance Contracts – extension of the temporary exemption from applying IFRS 9 Financial
Instruments,
Amendments to IFRS 9 Financial Instruments, IAS 39 Financial Instruments: Recognition and Measurement, IFRS 7
Financial Instruments: Disclosures, IFRS 4 Insurance Contracts, and IFRS 16 Leases - Interest Rate Benchmark
Reform Phase 2,
Amendments to IFRS 16 Leases providing lessees with an exemption from treating COVID-19-related rent
concessions as lease modifications and accounting adjustments to lease liabilities and right-of-use assets
(1 June 2020).
1.6.2. STANDARDS AND INTERPRETATIONS AWAITING ADOPTION BY THE EUROPEAN UNION
IFRS adopted by the European Union are not significantly different from the regulations approved by the International
Accounting Standards Board (IASB) with the exception of the following Standards, Interpretations and Amendments that are
not yet effective in the EU as at the date of these consolidated financial statements.
The following Standards and Interpretations (not yet effective) do not apply to the Group or are not expected to have material
impact on the consolidated financial statements of the Group.
Standard
Effective date (IASB)
Amendments to IAS 37 Provisions, Contingent Liabilities and Contingent Assets – onerous
contracts – cost of fulfilling obligations
1 January 2022
Amendments to IAS 16 Property, Plant and Equipment – pre-commissioning revenue
1 January 2022
Amendments to IFRS 3 Business Combinations – references to the IFRS Conceptual
Framework
1 January 2022
Annual Improvements 2018-2020
1 January 2022
Amendments to IAS 1 Presentation of Financial Statements – Classification of liabilities as
current or non-current
1 January 2023
IFRS 17 Insurance Contracts, including Amendments to IFRS 17
1 January 2023
1
International Accounting Standards, International Financial Reporting Standards and related interpretations published in regulations of the European Commission
13
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN'000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
The Group plans to adopt these Amendments, as applicable to its business, when they become effective.
1.7. THE SCOPE AND METHODS OF CONSOLIDATION
On the date the Group takes control over a company, the subsidiary begins to be fully consolidated. The consolidation ceases
once the Group no longer controls the entity.
Associates and joint ventures are initially recognised at cost and afterwards using the equity method. Details concerning
the recognition of entities measured by the equity method are presented in Note 3.3.
Subsidiaries are entities controlled by the Company. The Company controls an entity if its investment in the entity gives it
the right to participate in variable financial results and exert influence on the amount of such financial results through
the power to govern the entity. In assessing whether the Group controls a given entity, the existence and effects of potential
voting rights, which are exercisable or convertible at a given time, must be assessed.
Acquisitions of subsidiaries by the Group are accounted for using the purchase method. The cost of the acquisition is
measured as the fair value of the consideration transferred less the value of non-controlling interest in the acquiree plus
the fair value of previously held equity interest in the acquiree less the net recognised value (fair value) of the identifiable
assets acquired and assumed liabilities. Identifiable acquired assets, liabilities and contingent liabilities assumed in a business
combination are measured initially at their fair value at the acquisition date regardless of the extent of any minority interest.
Excess of the cost of acquisition over the fair value of the Group’s share of the identifiable net assets acquired is recognised
as goodwill. If the cost of acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is
recognised directly in the consolidated statement of comprehensive income.
Intra-group transactions and settlements between Group companies, as well as unrealised gains on intra-group transactions,
have been eliminated. Unrealised losses are also subject to elimination, unless the transaction provides evidence of
an impairment loss of the asset transferred.
On loss of control, the Group no longer recognises the assets and liabilities of the subsidiary, non-controlling interests and
other equity of the subsidiary. Any surplus or shortage on loss of control is recognised in the profit / loss of the period.
If the Group retains any stake in a former subsidiary, it is shown at fair value as at the date of loss of control.
1.8. ACCOUNTING POLICIES AND OTHER INFORMATION
1.8.1. FUNCTIONAL AND PRESENTATION CURRENCY
These consolidated financial statements are presented in the Polish zloty (PLN), which is the functional currency of the parent
entity, and all values are presented in thousands of Polish zlotys (PLN’000) unless stated otherwise.
1.8.2. BASIS OF PREPARATION
The consolidated financial statements have been prepared on the historical cost basis, except for financial assets measured
at fair value.
These consolidated financial statements have been prepared on the going concern basis.
1.8.3. ESTIMATES AND JUDGMENTS
The preparation of consolidated financial statements in accordance with the IFRS requires making certain critical accounting
estimates. It also requires the Exchange’s Management Board to use its judgment in the application of the Group’s accounting
policy. Estimates and judgments are subject to on-going verification. Estimates and judgments adopted for the purpose of
preparing the consolidated financial statements are based on historical experience, analyses and predictions of future events,
which to the best knowledge of the Management Board of the Exchange are believed to be reasonable in the given situation.
Details of judgments and estimations are presented and highlighted in the Notes to these consolidated financial statements.
1.8.4. SELECTED ACCOUNTING POLICIES
Selected accounting policies are presented in the Notes to these consolidated financial statements.
The Group presents a single statement of profit or loss and other comprehensive income.
1.8.5. EVALUATION OF BALANCES PRESENTED IN FOREIGN CURRENCIES
Transactions presented in foreign currencies are booked at the transaction date at the following foreign exchange rate:
the rate actually applied at such date, depending on the nature of the transaction – for sale or purchase of foreign
currencies or payment of receivables or payables;
the average rate published for the currency by the National Bank of Poland at the day preceding such date –
for other operations.
14
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN'000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
As at the balance sheet date:
monetary items presented in foreign currencies are converted with the closing foreign exchange (FX) rates;
non-monetary items presented in foreign currencies valued at historical cost are converted at the FX rate prevailing
at the transaction date;
non-monetary items presented in foreign currencies at fair value are converted at the FX rate prevailing at the day
of determining the fair value.
Foreign exchange gains and losses resulting from settlements of transactions in foreign currencies and from the conversions
of monetary assets and liabilities denominated in foreign currencies are disclosed as profit / loss of the current period.
1.8.6. SEGMENT REPORTING
Segment information is disclosed based on the entity’s components monitored by the top management (Management Board
of the Exchange) to the extent of operating decision-making. An operating segment is a component of the entity:
which may earn revenues and incur expenses;
whose operating results are regularly reviewed by the Exchange Management Board to make decisions about
resources to be allocated to the segment and assess its performance; and
for which discrete financial information is available.
The segments are identified based on specific service groups having homogenous characteristics. The presentation
by operating segment follows the management approach at GPW Group level.
1.9. IMPACT OF THE SARS-COV-2 PANDEMIC
The outbreak of the SARS-CoV-2 pandemic in March 2020 was an unprecedented event which had a significant impact on
the activity of the Group. Revenue from the markets operated by GPW is strongly dependent on economic conditions in Poland
and globally. Factors such as business restrictions, support schemes and tax credits, and especially growing uncertainty
on the financial markets, strongly impacted volatility on the capital markets and consequently the turnover value and
the capitalisation of companies on the GPW Main Market. As a result, GPW’s revenue increased substantially and the Group’s
financial results improved in 2020 year on year.
Uncertainty relating to the pandemic
According to the recommendations issued by ESMA and the Polish Accounting Standards Committee, in connection with
the outbreak of the pandemic and the ensuing uncertainty, the Group reviewed its judgments and estimates and other
accounting policy assumptions as at 31 December 2020.
The key assumptions of the impairment tests of goodwill of the Group’s subsidiaries were reviewed. The review
identified no need for impairment allowances as at 31 December 2020 (see Note 3.2).
No need was identified to change any of the estimates concerning the useful life and the depreciation rate of
property, plant and equipment and intangible assets.
The judgments used in the valuation of lease liabilities were not modified. The Exchange Management Board decided
that the term of leases used in the valuation of lease liabilities under lease agreements with no fixed term (5 years,
i.e., by the end of 2023) is an adequate representation of the most probable term of leases taking into account
all facts and circumstances in connection with the outbreak of the pandemic. An analysis of sensitivity to the key
variables (change of the term of leases and change of the lessee’s incremental borrowing rate) is presented in Note
3.4.3. In 2020, the Exchange and the subsidiaries received and granted no rent concessions and neither did they
make significant modifications of the scope of their lease agreements.
The impact of the pandemic on the accounting treatment of financial instruments under IFRS 9 was reviewed.
In the opinion of the Exchange Management Board and the Management Boards of the Group members, the existing
classification of financial assets and the assessment of the business model of holding financial assets are adequate
and there is no indication that they should be modified.
The Exchange carried out an in-depth analysis of the regularity of payment of trade receivables due from Exchange
Members, issuers, and data vendors and modified its assumptions used in the valuation of expected credit loss of
trade receivables. No significant adverse impact was identified of the economic slow-down on the regular payment
of receivables due from counterparties of the Group as at 31 December 2020.
The estimation of the fair value of held financial instruments measured at fair value was reviewed. In view of the low
liquidity of equity instruments received in 2020 in a conversion of debt from a debtor of the Exchange,
the instruments were fully impaired at PLN 0.9 million.
15
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN'000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
Going concern
The Exchange Management Board and the Management Boards of the subsidiaries considered whether the outbreak of
the pandemic and its impact affected the companies’ ability to continue as a going concern. As at 31 December 2020, the
Group held PLN 716 million in cash and cash equivalents and short-term financial assets including bank deposits and
guaranteed corporate bonds; in the opinion of the Exchange Management Board, those financial resources are sufficient to
conclude that the Group’s short-term and mid-term liquidity risk is low. As at 31 December 2020, the Group identified no
significant uncertainty about events or circumstances which could raise serious doubt as to the ability of the Group members
to continue as a going concern.
In summary, in the opinion of the Exchange Management Board, barring significant change in the GPW Group’s environment,
the SARS-CoV-2 pandemic poses no threat to continued operation of the Group in the foreseeable future.
Risks arising from the pandemic
The Exchange Management Board and the Management Boards of the subsidiaries monitor the epidemiological situation
in Poland and globally on an on-going basis and analyse its impact on the position of the Group. In view of the new economic
situation in Poland, the Group identified a number of operational and financial risks including periodic HR shortages,
interruption of vendors’ services, restricted activity of market makers, the risk that operating processes may be slowed
down, the psychological impact of long-term isolation, and the risk of shrinking ability and willingness of the Exchange’s
clients to pay amounts due on time.
In the opinion of the Exchange Management Board and the Management Boards of the subsidiaries, such operational and
financial risks resulting from the pandemic are considered to be moderate. For detailed information about the risks, including
a description of measures taken to mitigate the identified risks and a detailed presentation of the impact of the pandemic
on the financial position of the Company and the Group, see the Management Board Report on the activity of the parent
entity and the Group of Giełda Papierów Wartościowych w Warszawie S.A., Note 2.8.
2. FINANCIAL RISK MANAGEMENT
2.1. FINANCIAL RISK FACTORS
The Group is exposed to the following financial risks:
market risk:
cash flow and fair value interest rate risk,
currency risk,
price risk,
credit risk,
liquidity risk.
The Group’s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise
any potential adverse effects on the Group’s financial performance. The Management Board of the Exchange and
the Management Boards of the subsidiaries are responsible for financial risk management. The Group has dedicated
departments responsible for ensuring its liquidity (including foreign currency liquidity), debt collection and timely payment
of liabilities (particularly tax liabilities).
2.2. MARKET RISK
2.2.1. CASH FLOW AND FAIR VALUE INTEREST RISK
The Group is moderately exposed to interest rate risk.
The Group invests free cash in bank deposits, corporate bonds, Treasury bonds, certificates of deposit, and other instruments
where the interest rate is fixed, negotiated and determined when contracted at levels close to market rates at contracting.
If market rates rise, the Group will earn higher interest income; if market rates fall, the Group will earn lower interest income.
The Exchange is an issuer of series C bonds at fixed interest rates as well as series D and E bonds at floating interest rates
based on WIBOR 6M. In the case of an increase in interest rates, the Group will be obligated to pay out interest coupons on
series D and E bonds with a higher value; in the case of a decrease in interest rates, the value of those coupons will be lower
(which has a direct impact on financial expenses of the Group).
Based on an analysis of the sensitivity of the profit before tax of the Group to market interest rates, the table below presents
the impact of a change in the rate by 0.5 percentage point on financial income/costs (assuming no other changes):
16
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN'000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
2020 2019
Financ ial inc ome (2,2 31 ) (2 ,35 1 )
Financial expens es 1 ,5 1 3 1 ,77 2
Impact of an 0.5 pps interest rate decrease on items of the statement of
comprehensive income in year ended 31 December
An 0.5 pps interest rate increase will result in the opposite change of financial income/expenses as presented above.
The table below presents financial assets and liabilities by maturity. Financial assets and liabilities not presented in the table
below bear no interest.
< 1 M 1-3 M > 3 M Total
C orporate bonds - - 8 9 ,97 7 89,977 - 89,977
Bank depos its 5 ,0 0 0 1 64 ,21 9 2 0 2,009 371,228 - 371,228
C urrent ac counts (other) 22 8 ,602 2 5 ,86 8 - 254,470 - 254,470
Total current 233,602 190,087 291,986 715,675 - 715,675
Total financial assets 233,602 190,087 291,986 715,675 - 715,675
-
Floating-rate bonds in iss ue - - - - 119,928 119,928
Total non-current - - - - 119,928 119,928
Floating-rate bonds in iss ue - - 4 8 5 485 - 485
Total current - - 485 485 - 485
Total financial liabilities - - 485 485 119,928 120,413
As at 31 December 2020
Maturity up to 1 year
1-5 Y
Total
< 1 M 1-3 M > 3 M Total
C orporate bonds - - 8 9 ,95 8 89,958 - 89,958
Bank deposits 9 5 ,25 1 5 7,1 8 5 229,503 381,939 - 381,940
C urrent ac c ounts (other) 1 37 ,58 3 - 1 ,52 6 139,109 - 139,109
Total current 232,834 57,185 320,987 611,006 - 611,007
Total financial assets 232,834 57,185 320,987 611,006 - 611,007
Floating-rate bonds in is sue - - - - 1 19 ,79 4 119,794
Total non-current - - - - 119,794 119,794
Floating-rate bonds in is sue - - 1,2 50 1,250 - 1,250
Total current - - 1,250 1,250 - 1,250
Total financial liabilities - - 1,250 1,250 119,794 121,044
As at 31 December 2019
Maturity up to 1 year
1-5 Y
Total
2.2.2. FOREIGN EXCHANGE RISK
The Group is exposed to moderate foreign exchange risk. The Group earns income in PLN and EUR. The Group pays costs
mainly in PLN and also in EUR, USD and GBP. To minimise FX risk, the Group uses natural hedging, i.e., it covers the current
cost denominated in EUR with cash deposited in a currency account, raised from clients who pay their debt in EUR. The Group
used no derivatives to manage FX risk in 2020 and in 2019.
Based on a sensitivity analysis, as at 31 December 2020, a 10% change in the average exchange rate of PLN assuming
no other changes would result in moderate change in the profit before tax, as presented in the table below:
17
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN'000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
2020 2019
EU R 1 ,8 9 2 3 ,9 6 0
U SD 3 9 1
GP B 1 2 5
Total impact on profit bef ore tax 1,932 3,986
Impact of a 10% FX rate increase on profit bef ore tax
in year ended 31 December
An 10% FX rate decrease will result in the opposite change of financial income/expenses as presented above.
PLN EUR USD GBP
Total carrying
amount in PLN
Financial ass ets measured at amortised
cos t
2 94 ,9 8 6 - - - 294,986
T rade rec eivables (net) 3 7,5 6 3 9 ,8 2 9 - - 47,392
O ther rec eivables * 1 ,62 6 - - - 1,626
Sublease rec eivables 31 6 0 - - 316
C as h and c ash equivalents 4 08 ,3 9 9 12 ,76 4 - - 421,163
Total assets
742,890 22,594 - - 765,483
Bonds in iss ue 2 45 ,9 0 6 - - - 245,905
T rade payables 1 3,7 8 5 1 ,2 4 7 7 3 1 2 15,117
Leas e liabilities 1 4 ,0 1 8 2 ,4 2 7 3 1 6 - 16,761
O ther liabilities* * 1 8,7 4 6 - - - 18,746
Total liabilities 292,455 3,674 389 12 296,529
Net FX position
450,435 18,920 (389) (12) 468,954
As at 31 December 2020
(converted to PLN at FX rate as at the balance-s heet date)
* net of prepayments and receivables from other taxes
** net of VAT payable and other taxes payable
PLN EUR USD GBP
Total carrying
amount in PLN
Financ ial assets measured at amortis ed
cos t
3 2 8 ,9 9 8 - - - 328,998
T rade receivables (net) 1 3 ,8 2 2 21 ,1 7 8 - - 35,000
O ther rec eivables* 4 ,3 9 4 4 4 1 - 5 4,840
Sublease rec eivables 5 2 4 1 8 9 - - 713
C as h and cash equivalents 25 5 ,7 5 9 29 ,5 1 5 - - 285,274
Total assets
603,496 51,323 - 5 654,825
Bonds in iss ue 2 4 6 ,2 8 2 - - - 246,282
T rade payables 6 ,7 1 7 4 ,5 5 9 1 1 0 1 9 8 11,584
Lease liabilities 20 ,3 3 9 1 ,04 6 - - 21,385
O ther liabilities ** 2 0 ,8 4 1 5 ,9 7 5 - - 26,816
Total liabilities 294,178 11,580 110 198 306,067
Net FX position
309,318 39,743 (110) (193) 348,758
As at 31 December 2019
(converted to PLN at FX rate as at the balance-s heet date)
* net of prepayments and receivables from other taxes
** net of VAT payable and other taxes payable
18
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN'000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
2.2.3. PRICE RISK
Given the nature of its business, the Group is not exposed to any mass commodity price risk.
The Group is minimally exposed to price risk of held equities measured at fair value. The value of such investments was not
significant as at 31 December 2020 and as at 31 December 2019 (see Note 3.5.3).
2.3. CREDIT RISK
Credit risk is defined as a risk of occurrence of losses due to the Group’s counterparty’s default of payments or as a risk of
decrease in economic value of amounts due as a result of deterioration of a counterparty’s ability to pay due amounts.
Credit risk connected with trade receivables is mitigated by the Exchange Management Board and the Management Boards
of the subsidiaries by performing assessment of counterparties’ credibility. In the opinion of the Exchange Management
Board, there is no material concentration of credit risk of trade receivables within the Group.
In the parent entity, resolutions of the Exchange Management Board set payment dates that differ depending on groups of
counterparties. The payment dates amount to 21 days for most counterparties, however, for data vendors, they are most
often 45 days.
In the parent entity, the credibility of counterparties is verified in accordance with internal regulations and good practice of
the capital market as applicable to issuers of securities and Exchange Members. In the verification, the Exchange reviews in
detail the application documents including financial statements, copies of entries in the National Court Register, and
notifications of the Polish Financial Supervision Authority.
The maximum exposure of the Group to credit risk is reflected in the carrying amount of trade receivables, bank deposits,
corporate bonds, certificates of deposit, and other securities. By decision of the Exchange Management Board, the Group’s
investment portfolio comprises only securities guaranteed by the State Treasury or issued (guaranteed) by institutions with
a stable market position and high rating (rated above Baa2 by Moody’s). In this way, exposure to the risk of potential loss
is mitigated. In addition, credit risk is managed by the Group by diversifying banks in which free cash is deposited.
The table below presents the Group’s exposure to credit risk.
31 December 2020 31 December 2019
T rade receivables (net) 4 7 ,3 9 2 35 ,0 0 0
O ther rec eivables* 1 ,6 2 6 4 ,8 40
C as h and cash equivalents 42 1 ,1 6 3 2 85 ,2 7 4
Financ ial as sets measured at amortis ed c os t 2 9 4 ,9 8 6 3 2 8,9 9 8
Total exposure of the Group to credit risk
765,167 654,112
* net of prepayments and receivables from other taxes
As at
The Group established collateral on its receivables under the Employee Loan Programme in GPW and TGE and POB collateral
in IE (PLN 1.8 million). The Group’s total receivables under the Employee Loan Programme stood at PLN 395 thousand as at
31 December 2020.
2.4. LIQUIDITY RISK
An analysis of the Group’s financial position and assets shows that the Group is not materially exposed to liquidity risk.
An analysis of the structure of the Group’s assets shows a stable and rising share and value of liquid assets in total assets
and, thus, a good liquidity position of the Group.
19
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN'000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
amount
% of total
assets
amount
% of total
assets
C as h and c as h equivalents 4 2 1 ,1 6 3 30 .9% 2 8 5 ,2 74 22.7%
Financial ass ets meas ured at amortised cost 2 9 4 ,9 8 6 21.7% 32 8 ,99 8 26 .2 %
A s sets other than cas h and cas h equivalents and
financial ass ets measured at amortised cos t
6 4 6 ,0 3 4 47.4% 64 2 ,54 5 51 .1 %
Total assets 1,362,183 100.0% 1,256,817 100.0%
As at
31 December 2020
As at
31 December 2019
An analysis of the structure of liabilities shows a share of equity in the financing of the operations of the Group in excess of
50%.
amount
% of total
equity and
liabilities
amount
% of total
equity and
liabilities
Equity 9 2 4 ,16 7 67.8% 87 3 ,4 86 69.5%
Liabilities 4 3 8 ,0 12 32 .2% 38 3 ,33 1 3 0.5%
Total equity and liabilities 1,362,181 100.0% 1,256,817 100.0%
As at
31 December 2020
As at
31 December 2019
To mitigate liquidity risk, the Exchange Management Board monitors, on an on-going basis, forecasts of liquid assets on the
basis of maturities of assets, due dates of payables, and other projected cash flows.
> 1M 1-3 M 3-6 M 6-12 M 1-5 Y > 5 Y Total
T rade rec eivables (net) 44,108 3 ,28 4 - - - - 47,392
O ther rec eivables * 1 ,62 6 - - - - - 1,626
Subleas e receivables 1 1 2 1 3 2 5 4 1 9 8 - 316
Financial ass ets measured at
amortised cos t
- 182,98 2 1 1 2,004 - - - 294,986
C as h and c ash equivalents 42 1,163 - - - - - 421,163
Total assets 466,908 186,287 112,036 54 198 - 765,483
Bonds in is s ue 6 20 - 9 4 1 - - 2 44,34 5 245,905
T rade payables 1 4,294 82 3 - - - - 15,117
Leas e liabilities 1,1 2 5 1 ,5 8 5 2,2 0 7 4,3 7 0 5,8 79 1,5 96 16,761
O ther liabilities* * 4 ,55 3 7 ,13 1 - - 7,0 6 2 - 18,746
Total liabilities 20,592 9,539 3,148 4,370 12,941 245,941 296,529
Liquidity surplus/(gap)
446,316 176,748 108,888 (4,316) (12,743) (245,941) 468,954
As at 31 December 2020
* net of prepayments and receivables from other taxes
** net of VAT payable and other taxes payable
20
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN'000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
> 1M 1-3 M 3-6 M 6-12 M 1-5 Y > 5 Y Total
T rade rec eivables (net) 30,955 2 ,7 7 6 1,2 6 9 - - - 35,000
O ther rec eivables * 4 ,84 0 - - - - - 4,840
Sublease rec eivables 16 3 1 4 7 9 6 5 2 3 713
Financial ass ets measured at
amortis ed cos t
20 7 ,831 50 ,2 74 70 ,04 3 - 8 5 0 - 328,998
C as h and c as h equivalents 25 5,163 30 ,1 11 - - - - 285,274
Total assets 498,805 83,192 71,359 96 1,373 - 654,825
Bonds in iss ue 1,38 0 - 9 4 1 - 24 3 ,961 - 246,282
T rade payables 1 1,083 5 0 2 - - - - 11,584
Leas es (IFRS 16 ) 7 01 1 ,5 23 2,1 2 2 8 7 1 1 4 ,57 3 1 ,59 6 21,385
O ther liabilities* * 16,281 2 ,1 7 8 - - 6 ,8 5 9 1 ,4 96 26,816
Total liabilities 29,445 4,203 3,063 871 265,393 3,092 306,067
Liquidity surplus/(gap)
469,360 78,989 68,296 (775) (264,020) (3,092) 348,758
As at 31 December 2019
* net of prepayments and receivables from other taxes
** net of VAT payable and other taxes payable
2.5. CAPITAL MANAGEMENT
It is the objective of the Group’s effective capital management to ensure that the Exchange and the subsidiaries may continue
as a going concern while providing optimum benefits to all stakeholders. It is a priority of the Exchange Management Board
and the Management Boards of the subsidiaries when deciding about the structure of financing and the dividend policy of
the Group that any investments carry low risk while generating possibly optimal returns for the shareholders and stable and
safe returns for the bondholders. Any decisions of the Management Boards in that regard have a long-term horizon and are
geared at creating long-term value for the Group and the Polish capital market. As regulated market operators, the Exchange
and BondSpot are required under the Act on Trading in Financial Instruments to maintain own capital as a minimum equal
to PLN 10 million.
In pursuit of those objectives, as at 31 December 2020 and as at 31 December 2019, the Group used external capital
(interest-bearing liabilities) including bonds in issue (see Note 3.10) and leases (Note 3.4.5). According to its internal capital
management policy and dividend policy, the Exchange annually pays a dividend to the shareholders. It is the intention of
the GPW Management Board to recommend to the General Meeting to pay a dividend depending on the profitability and
financial capacity of GPW but no less than 60% of the consolidated net profit of the GPW Group for a financial year attributable
to the shareholders of GPW, adjusted for the share of profit of associates. For more information about dividends paid in 2020
and 2019, see Note 3.9.4.
The Exchange Management Board and the Management Boards of the subsidiaries optimise the capital structure and monitor
the achievement of goals using Alternative Performance Measures calculated according to the Guidelines of the European
Securities and Markets Authority (“ESMA”). The table below presents the indicators used by the Group to monitor capital
management performance. The table presents the indicators achieved by the Group in 2020 and in 2019 as well as their
optimum thresholds which the Group does not intend to cross (thanks to effective capital management by the Exchange
Management Board and the Management Boards of the subsidiaries).
21
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN'000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
31 December 2020 31 December 2019
Debt and financing ratios:
Net debt/EBIT DA * (1 .6) (1 .3) under 3
Debt to equity** 28 .4% 30 .6% under 100 %
Liquidity ratios:
C urrent liquidity* * * 4 .9 6.7 over 1.5
C overage of interes t on bonds* *** 34 .4 2 6 .6 over 4
** Debt to equity = interest-bearing liabilities / equity (as at balance-sheet date)
As at/Year ended
Optimum
* Net debt = interest-bearing liabilities - liquid assets (as at balance-sheet date)
EBITDA = operating profit + depreciation and amortisation (for the last 12 months)
*** Current liquidity = current assets / current liabilities (as at balance-sheet date)
**** Coverage of interest on bonds = EBITDA / interest on bonds
3. NOTES TO THE CONSOLIDATEDSTATEMENT OF FINANCIAL POSITION
3.1. PROPERTY, PLANT AND EQUIPMENT
Selected accounting policies
Property, plant and equipment are disclosed at the cost of purchase or production, expansion or modernisation, net of
accumulated depreciation and impairment losses. Purchase cost includes the cost of purchase, expansion and/or
modernisation. Depreciation is calculated for property, plant and equipment items over their estimated useful life, taking
into account their residual value and using the straight-line depreciation method.
Categories of property, plant and equipment Depreciation period
Buildings 40 Y
Leasehold improvements 10 Y
V ehicles 5 Y
C omputer hardware 3-5 Y
O ther fixed ass ets 5-1 0 Y
The depreciation method, the depreciation rate and the residual value are subject to regular verification by the Group.
Any changes resulting from the verification are recorded as a change in accounting estimates, prospectively.
Land is not subject to depreciation.
Property, plant and equipment under construction or development is not depreciated until complete.
A component of property, plant and equipment is derecognised when sold or when economic benefits from its use or disposal
are no longer expected. Gains and losses on disposal/liquidation of property, plant and equipment are determined as
the difference between the proceeds (if any) and the net book value of property, plant and equipment and included in
the profit or loss of the period as other income or other expenses.
Selected judgments and estimates
The Group determines the estimated economic useful life and depreciation rates for property, plant and equipment. These
estimates are based on the anticipated periods for using the individual groups of assets. The adopted economic useful life
may undergo considerable changes as a result of new technological solutions appearing on the market, plans of
the Management Board of the Exchange or intensive use.
22
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN'000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
Land and
buildings
Vehicles and
machinery
Furniture,
fittings and
equipment
Property, plant
and equipment
under
construction
Total
Net carrying amount - opening balance 76,411 20,389 486 4,682 101,968
A dditions 3 8 0 8 ,18 2 1 2 2 1 ,3 9 2 10,077
Rec lass ific ation and other adjus tments - (33 1 ) 2 4 1 79 (128)
Disposals - (4 8) (6 ) (4 9 ) (103)
Depreciation charge* (3,2 26 ) (1 1 ,0 8 4 ) (17 1) - (14,481)
Net carrying amount - closing balance 73,566 17,108 455 6,204 97,333
As at 31 December 2020 :
Gross carrying amount 1 2 8 ,13 9 1 1 5,8 25 4 ,9 3 8 6 ,2 0 4 255,106
Written off (5 4,5 74 ) (9 8,7 17 ) (4 ,48 3 ) - (157,774)
Net carrying amount 73,566 17,108 455 6,204 97,333
Year ended 31 December 2020
*Depreciation of PLN 390 thousand is capitalised to intangible assets (licences).
Land and
buildings
Vehicles and
machinery
Furniture,
fittings and
equipment
Property, plant
and equipment
under
construction
Total
Net carrying amount - opening balance 78,290 25,834 711 3,322 108,158
A dditions 1,3 82 6 ,8 4 1 4 5 3 1 ,53 8 10,214
Rec lass ific ation and other adjus tments - 1 04 (1 0 ) (1 0 6 ) (12)
Disposals (6 1) 15 (6 3 ) (7 2) (181)
Depreciation charge* (3,2 00 ) (1 2 ,4 0 5 ) (60 5) - (16,210)
Wartość księgowa netto na koniec okresu 76,411 20,389 486 4,682 101,968
As at 31 December 2019 :
Gross carrying amount 1 2 7 ,75 9 1 0 8,0 58 5 ,2 0 5 4 ,8 7 2 245,894
Written off (5 1,3 48 ) (8 7,6 69 ) (4 ,71 9 ) (1 90 ) (143,926)
Net carrying amount 76,411 20,389 486 4,682 101,968
Year ended 31 December 2019
*Depreciation of PLN 163 thousand is capitalised to intangible assets (licences).
Vehicles and machinery include mainly IT hardware: servers, computers and network devices.
As at 31 December 2020, 1% of office space, car park space and other space owned by the Group in the Centrum Giełdowe
building was under operating leases where the Exchange was the lessor (see: Note 3.4.2). The fixed assets under the leases
(recognised in the consolidated statement of financial position as at 31 December 2020) stood at PLN 738 thousand.
As at 31 December 2019, 1% of such space was under leases and the fixed assets under the leases stood at
PLN 764 thousand.
Selected accounting policies
At each balance sheet date, the Group reviews non-financial assets to determine whether there are indicators of impairment
except for inventories and deferred tax assets.
If such indicators are identified, the recoverable amount of an asset is estimated (as the higher of: fair value less selling
costs or value in use). Value in use corresponds to the discounted value of the future economic benefits which would be
generated by an asset.
At the end of every reporting period, the Group checks for conditions indicating that the impairment losses recognised in
previous reporting periods may be redundant or excessive. In that case, impairment losses are reversed in whole or in part
and the asset value is disclosed net of the impairment losses (but including depreciation).
Impairment losses are recognised in other expenses and reversed in other income.
23
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN'000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
The Group recognised no impairment of property, plant and equipment in 2020 and in 2019.
3.2. INTANGIBLE ASSETS
Selected accounting policies
Intangible assets include goodwill and other intangible assets as well as development.
Other intangible assets (licences, copyright, and know-how) are disclosed at cost of purchase or production net of
accumulated amortisation and impairment losses.
Internally generated intangible assets are classified as research (recognised in expenses) or development (recognised in
intangible assets). Development is disclosed at cost of production which includes all directly attributable costs necessary to
create, produce and prepare the asset to be capable of operating in the manner intended by the Management Board of the
Exchange. Direct costs include the cost of services used for production; depreciation of selected property, plant and
equipment (IT hardware) used directly to produce the asset; and the cost of employee benefits directly attributable to the
production of the asset. Such costs are capitalised when the costs and the related intangible asset meet the criteria of IAS
38.
Amortisation is calculated for other intangible assets over their estimated useful life using the straight-line amortisation
method. The amortisation method and the amortisation rate are subject to regular verification by the Group. Any changes
resulting from the verification are recorded as a change in accounting estimates, prospectively.
A component of intangible assets is derecognised when sold or when economic benefits from its use or disposal are no longer
expected. Gains and losses on disposal/liquidation of intangible assets are determined as the difference between the net
proceeds (if any) and the book value of intangible assets and included in the profit or loss of the period as other income or
other expenses.
The Group performs an annual test of impairment of intangible assets which are not yet available for use by comparing the
carrying value and the recoverable amount. For impairment testing purposes, intangible assets which are not yet available
for use are allocated to cash generating units which are expected to benefit from the transaction responsible for the creation
of the assets.
If the carrying value of an asset (or a cash generating unit) is higher than its recoverable value, impairment is recognised
and the asset value is written down to recoverable value. Impairment losses are charged to the profit or loss of the period
as other income or other expenses.
Selected judgments and estimates
The Group determines the estimated economic useful life and amortisation rates for other intangible assets. These estimates
are based on the anticipated periods for using the individual groups of assets. The adopted economic useful life may undergo
considerable changes as a result of new technological solutions appearing on the market, plans of the Management Board of
the Exchange or intensive use. Individual useful life periods apply to:
intangible assets relating to trading systems whose estimated useful life ranges from 6 to 12 years;
know-how acquired in the PCR project in the subsidiary TGE whose economic useful life in 20 years;
copyright in the WIBID and WIBOR reference rates in the subsidiary GPWB whose estimated useful life is 20 years.
Apart from assets whose useful life is determined on an individual basis, the estimated useful life of intangible assets is 5
years.
24
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN'000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
Licences Copyrights Know-how Goodwill Total
Net carrying amount - opening balance 67,425 2,867 5,387 170,970 246,649
A dditions 2 0,5 5 7 15 4 - - 20,711
Rec lassification and other adjustments (7 1 ) - (4 2 ) - (113)
C apitalis ed deprec iation 4 36 - - - 436
Impairment - - - (3 ,52 4 ) (3,524)
Depreciation charge* (1 5 ,8 7 8) (4 4 9 ) (5 24 ) - (16,851)
Net carrying amount - closing balance 72,468 2,571 4,824 167,446 247,308
As at 31 December 2020 :
Gross c arrying amount 2 54 ,8 3 5 8 ,31 0 6 ,24 0 1 7 2 ,37 4 441,759
Impairment - - - (4 ,92 8 ) (4,928)
Written off (1 8 2 ,3 67 ) (5,7 38 ) (1,4 1 7 ) - (189,522)
Net carrying amount 72,468 2,571 4,824 167,446 247,308
* Amortization of PLN 46 thousand is capitalised to intangible assets (licences).
Year ended 31 December 2020
Licences Copyrights Know-how Goodwill Total
Net carrying amount - opening balance 75,009 3,199 5,386 170,970 254,564
A dditions 1 0 ,5 38 1 7 5 9 2 6 - 11,639
C apitalised deprec iation 1 68 - - - 168
Disposals (3 ,37 3 ) - (5 8 2 ) - (3,955)
Depreciation charge* (1 4 ,9 1 7 ) (50 7 ) (3 43 ) - (15,767)
Net carrying amount - closing balance 67,425 2,867 5,387 170,970 246,649
As at 31 December 2019 :
Gross carrying amount 23 3 ,9 1 4 8 ,1 5 8 6 ,2 8 0 17 2 ,37 4 420,726
Impairment - - - (1 ,40 4 ) (1,404)
Written off (1 6 6 ,4 89 ) (5,2 9 1 ) (8 9 3 ) - (172,673)
Net carrying amount 67,425 2,867 5,387 170,970 246,649
* Amortization of PLN 4 thousand is capitalised to intangible assets (licences).
Year ended 31 December 2019
Universal Trading Platform (“UTP”)
The UTP trading system represents the biggest intangible asset in the category “Licences”. The UTP trading system licence
was commissioned on 15 April 2013. The useful life of the UTP trading system was determined at 12 years (until 31 March
2025). The net value of the UTP trading system was PLN 32,976 thousand as at 31 December 2020 (PLN 40,735 thousand
as at 31 December 2019).
Development
Development includes expenditure for intangible assets developed in-house, mainly expenditure in projects co-financed with
grants described in Note 6.3. The Group did not make significant expenditures for research recognised in the period as
expenses in the consolidated statement of comprehensive income.
No impairment of intangible assets was recognised in the year ended 31 December 2020 and 31 December 2019 other
than the impairment of goodwill described below.
25
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN'000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
Goodwill
Selected accounting policies
Goodwill from acquisition is the difference between the purchase price and the fair value of the acquired assets, liabilities
and identifiable contingent commitments. After initial recognition, goodwill is disclosed at cost of purchase net of accumulated
impairment losses. Goodwill is tested against potential impairment annually or more frequently in case of events or changes
indicating potential impairment.
For impairment testing purposes, goodwill is allocated to cash generating units which are expected to benefit from the
transaction responsible for the creation of goodwill.
Impairment losses on goodwill are not subject to reversal.
Selected judgments and estimates
A cash flow generating unit, to which goodwill has been allocated, is subject to annual impairment tests.
Goodwill impairment tests are conducted using the discounted cash flows method based on financial forecasts or estimated
fair value less cost of sale. Forecasts of future financial results of cash flow generating units are based on a number of
assumptions, of which some (among others those relating to observable market data such as macroeconomic conditions)
are beyond control of the Group.
The goodwill from taking control of the TGE Group was tested for impairment as at 31 December 2020 by estimating the
value in use under the discounted cash flows (DCF) method according to the financial assumptions for 2021-2025 defined
for the test based among others on the projected turnover in electricity, gas and property rights, taking into account expected
market changes in those segments, price changes, operating expenses and capital expenditure. The main assumptions of
the impairment test are presented in the table below. The Management Board identified no key assumptions whose change
in a reasonably expected degree would cause impairment.
Following the analysis, the Exchange Management Board identified no circumstances indicating impairment of the goodwill
of the TGE Group as at 31 December 2020.
The goodwill from taking control of BondSpot was tested for impairment as at 31 December 2020 by estimating the value
in use under the discounted cash flows (DCF) method according to the financial assumptions for 2021-2025 defined for the
test based among others on the expected growth of the Treasury debt market and the company’s market share, operating
expenses and capital expenditure. The main assumptions of the impairment test are presented in the table below.
In the latter half of February and in the following months of 2020, the key driver of BondSpot’s financial position was the
outbreak of the SARS-CoV-2 pandemic and its economic impact. Initially, volatility and market risk increased sharply,
investors pulled out from bond funds, while the Monetary Policy Council and the National Bank of Poland took measures
aiming to mitigate the adverse impact of the pandemic. The Monetary Policy Council decisions and the National Bank of
Poland operations resulted in a sharp reduction of market interest rates, including yields across the Treasury curve, which
curbed transactional activity of market participants. However, the key driver which reduced their activity were regular
redemptions of Treasury bonds and instruments issued by PF and BGK, carried out by the National Bank of Poland. On the
one hand, they were an effective tool supporting liquidity in the banking system (as banks do not need to source liquidity by
selling Treasury bonds); on the other hand, they reduced the value of outstanding Treasury bonds in trading. Those drivers
caused a reduction of the turnover on Treasury BondSpot Poland, a decrease of BondSpot revenues and a downgrade of
BondSpot’s revenue guidance for 2021 and beyond.
The deterioration of the financial position of BondSpot was a criterion that required a new impairment test as at 30 June
2020 of goodwill generated by the acquisition of BondSpot by GPW, previously carried out as at 31 December 2019. The
value in use of a cash generating unit, which was considered to be the entire company, i.e., BondSpot, was carried out as a
DCF valuation on the basis of a forecast of BondSpot’s results for 2020-2024. The forecast was reduced as compared to the
forecast used in the impairment test of the investment in BondSpot as at 31 December 2019.
Following the analysis, goodwill impairment charges were recognised at PLN 3,524 thousand in other expenses of the Group
as at 30 June 2020.
The impairment test of goodwill of BondSpot as at 31 December 2020 identified no indication of further impairment.
As a result, the goodwill generated by the acquisition of BondSpot stood at PLN 19,462 thousand in the consolidated
statement of financial position of the Group as at 31 December 2020 (PLN 22,986 thousand as at 31 December 2019).
The value in use of the cash-generating unit, i.e., BondSpot, was measured using the DCF method based on BondSpot’s
projection for 2021-2025. The projection was downgraded as compared to the projection used in the impairment test of
BondSpot’s goodwill as at 31 December 2019.
26
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN'000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
The goodwill from the acquisition of an organised part of the enterprise of ELBIS Sp. z o.o. by InfoEngine (Platforma Obrotu
Energią Elektryczną “POEE”) was tested for impairment as at 31 December 2020 by estimating the value in use under the
discounted cash flows (DCF) method according to the financial assumptions for 2021-2025 defined for the test based on
existing operations, i.e., provision of the market operator service as a trade operator and the entity responsible for trade
balancing. It was assumed that the company would grow moderately in the coming years on the assumption that it would
attract 2 clients/participants per year for each of its services. The Exchange Management Board identified no key assumptions
whose change in a reasonably expected degree would cause impairment.
Following the analysis, the Exchange Management Board identified no circumstances indicating impairment of the goodwill
of Platforma Obrotu Energią Elektryczną as at 31 December 2020.
Gross carrying amount Impairment
Net amount after
impairment
Goodwill f rom:
GP W's taking control of TGE 1 47 ,7 92 - 147,792
GP W's taking control of BondSpot 2 2,9 8 6 (3 ,5 2 4 ) 19,462
InfoE ngine's ac quisition of P latforma O brotu
Energią Elektryc zną (poee)*
1 ,58 9 (1 ,4 04 ) 185
GP W's taking control of GP W C U 8 - 8
Total as at 31 December 2020 172,375 (4,928) 167,446
Goodwill f rom:
GP W's taking control of TGE 1 47 ,7 92 - 147,792
GP W's taking control of BondSpot 2 2,9 8 6 - 22,986
InfoE ngine's ac quisition of P latforma O brotu
Energią Elektryc zną (poee)*
1 ,58 9 (1 ,4 04 ) 185
GP W's taking control of GP W C U 8 - 8
Total as at 31 December 2019 172,375 (1,404) 170,970
Goodwill
* The impairment test was carried out by comparing the carrying amount of the cash flow generating unit to which the goodwill was allocated with fair value (price
of InfoEngine shares sold by GPW to TGE)
Projectio
n years
WACC
Revenue
CAGR
Expense CAGR
Growth rate
after the
projection
horizon
Key valuation assumptions as at 31 December 2020
Goodwill from:
GP W's taking control of TGE 5 7% 4% 2% 2%
GP W's taking control of BondSpot 5 8% 13% 3% 0%
InfoEngine's ac quisition of P latforma O brotu Energią
Elektryczną (poee)
5 9% 8% 3% 2%
Key valuation assumptions as at 31 December 2019
Goodwill from:
GP W's taking control of TGE 5 7% -1 % 5% 0%
GP W's taking control of BondSpot 5 7% 5% 1% 0%
InfoEngine's ac quisition of P latforma O brotu Energią
Elektryczną (poee)
5 7% 10% 3% 0%
Goodwill
27
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN'000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
+0,5 p.p. -0,5 p.p. +0,5 p.p. -0,5 p.p.
WA C C
(1 20 ,0 1 4 ) 14 9 ,17 6 (2,4 7 3 ) 2 ,8 1 6
Revenue C A GR
5 2 ,1 74 (5 1,4 5 3 ) 3 ,2 3 4 (3 ,1 9 3 )
Expense C A GR
(3 1,2 7 9 ) 30 ,84 0 (2 ,84 4) 2,8 05
Growth rate after the projec tion horizon
1 2 5 ,07 4 (1 0 0 ,64 5 ) 2 ,1 3 9 (1,8 85 )
Sensitivity of the impairment test
to change of key assumptions 2020
TGE
BondSpot
+0,5 p.p. -0,5 p.p. +0,5 p.p. -0,5 p.p.
WA C C
(7 ,50 3 ) 7 ,5 7 5 (4,2 0 6 ) 4 ,9 76
Revenue C A GR
6 0 ,6 84 (5 9 ,85 3) 6,0 0 6 (7,3 18 )
Expense C A GR
(3 5,1 6 5 ) 3 4 ,6 7 2 (3 ,5 26 ) 3 ,4 7 7
Growth rate after the projection horizon
1 7 6 ,91 4 (1 4 0 ,9 39 ) 3 ,97 7 (3 ,3 6 7 )
Sensitivity of the impairment test
to change of key assumptions 2019
TGE
BondSpot
3.3. INVESTMENT IN ENTITIES MEASURED BY THE EQUITY METHOD
Selected accounting policies
Entities measured by the entity method include associated and joint ventures. Investment in associates and joint ventures
is disclosed at cost of purchase on initial recognition.
Associates are all entities over which the Group has significant influence but does not control.
Joint ventures are entities which are jointly controlled by at least two partners under a partners’ agreement, a company
agreement, or the company’s articles of association.
The Group’s share of profit of entities measured by equity method from the date of acquisition is recognised in the
consolidated statement of comprehensive income, and its share of changes in other reserves from the date of purchase - in
other reserves. When the Group’s share of losses of an entity measured by the equity method equals or exceeds its interest
in the associate, including any other unsecured receivables, the Group ceases to recognise further losses, unless it has
incurred obligations or made payments on behalf of the entity measured by the equity method.
Unrealised gains on transactions between the Group and its entities measured by the equity method are eliminated to the
extent of the Group’s participation in those entities. Unrealised losses are also eliminated, unless the transaction provides
evidence of an impairment of the asset transferred.
The entities measured by the equity method as at 31 December 2020 and 31 December 2019 included:
KDPW S.A. Group (“KDPW”),
Centrum Giełdowe S.A. (“CG”),
Polska Agencja Ratingowa S.A. (“PAR”).
The entities measured by the equity method prepare financial statements under the Accountancy Act. The results presented
in the tables below are restated under the GPW Group accounting policies.
28
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN'000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
KDPW Group
Centrum
Giełdowe S.A.
Polska Agencja
Ratingowa S.A.
Total
Opening balance 193,197 17,129 - 210,326
Dividends due to GPW S.A . (5 ,18 7 ) (5 1 2 ) - (5,699)
Share of net profit/(los s )
15,552 412 - 15,964
Other increase/(decreas e) of profit
(217) - - (217)
T otal Group share of profit/(los s) after tax 15 ,3 3 5 4 1 2 - 15,748
Share in other c omprehensive inc ome 20 - - 20
Entities measured by equity method - closing balance 203,365 17,029 - 220,395
As at/Year ended 31 December 2020
* At the 30 of September 2019 r. the inves tment in PAR was fully impaired and f rom that day the Group's prof it does not include the
results of PAR.
KDPW Group
Centrum
Giełdowe S.A.
Polska Agencja
Ratingowa S.A.
Total
Opening balance 188,465 17,068 1,734 207,267
Dividends due to GPW S.A . (6 ,5 6 6) (4 4 1 ) - (7,007)
Share of net profit/(los s )
11,622 502 (645) 11,479
Other increase/(decreas e) of profit
(217) - - (217)
T otal Group share of profit/(los s) after tax 1 1 ,4 05 5 0 2 (6 4 5 ) 11,262
Share in other c omprehensive inc ome (1 07 ) - - (107)
Impairment of investments in entities meas ured by
equity method
- - (1,0 8 9 ) (1,089)
Entities measured by equity method - closing balance 193,197 17,129 - 210,327
As at/Year ended 31 December 2019
*The Group's profit includes the profit of PAR for the period from 1 January 2019 to 30 September 2019 when the inves tment in PAR
was fully impaired.
KDPW Group
Centrum
Giełdowe S.A.
Polska Agencja
Ratingowa S.A.*
Total
C urrent as s ets, including:
2 ,97 0 ,7 3 2 10 ,3 3 1 2 3 2 N/A
cas h and cas h equivalents
70,454 8,437 199 N/A
Non-c urrent as sets
4 64 ,3 0 9 6 1 ,68 7 2 ,2 0 1 N/A
C urrent liabilities
2 ,79 3 ,7 3 2 2 ,7 9 8 4 8 6 N/A
Non-c urrent liabilities
2 5,4 4 3 3 ,24 0 3 2 4 N/A
Sales revenue
1 72 ,1 1 6 1 5 ,65 8 - N/A
Depreciation and amortisation
2 1,3 4 0 3 ,13 5 7 3 0 N/A
Income tax
1 2,5 2 1 4 5 3 - N/A
Dividend due to GP W S.A . in 202 0
5 ,18 7 5 1 2 - N/A
Net profit/(loss) for the year ended 31 December 2020 45,939 1,661 (2,284) N/A
Group share of profit/(los s)
33 .33 % 24 .79 % 35 .86 % N/A
Group share of prof it/(loss) f or the year ended
31 December 2020
15,335 412 - 15,748
* At the 30 of September 2019 r. the investment in PAR was fully impaired and from that day the Group's profit does not include the
results of PAR.
As at/Year ended
31 December 2020
29
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN'000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
KDPW Group
Centrum
Giełdowe S.A.
Polska Agencja
Ratingowa S.A.*
Total
C urrent as s ets, including:
2 ,79 7 ,3 9 5 8 ,2 3 9 2 1 6 N/A
cas h and cas h equivalents
153,142 6,572 127 N/A
Non-c urrent as sets
2 81 ,2 4 9 6 7 ,31 1 2,9 3 1 N/A
C urrent liabilities
2 ,47 3 ,3 3 4 2 ,2 8 1 6 1 6 N/A
Non-c urrent liabilities
2 3,1 8 3 3 ,36 7 5 8 N/A
Sales revenue
1 38 ,9 9 7 1 5 ,46 2 2 3 N/A
Depreciation and amortisation
1 8,0 8 8 3 ,22 1 5 7 3 N/A
Income tax
7 ,91 4 4 72 - N/A
Dividend due to GP W S.A . in 201 9
6 ,56 6 4 41 - N/A
Net profit/(loss) for the year ended 31 December 2019 34,216 2,027 (2,816) N/A
Group share of profit/(los s)
33 .33 % 24.79% 3 3.33% N/A
Group share of prof it/(loss) f or the year ended 31
December 2019
11,405 502 (645) 11,262
As at/Year ended
31 December 2019
*The Group's profit includes the prof it of PAR for the period from 1 January 2019 to 30 September 2019 when the inves tment in PAR
was fully impaired.
Investment in PAR
The Exchange held 35.86% of PAR as at 31 December 2020 vs. 33.33% as at 31 December 2019.
In H1 2020, GPW took up 1,100,000 series C shares of PAR with a nominal value of PLN 0.53 per share and a total nominal
value of PLN 583 thousand in exchange for a cash contribution of PLN 0.53 per share (i.e., PLN 583 thousand in total). As at
30 June 2020, the Company recognised impairment of the investment in PAR at PLN 583 thousand, which was recognised in
the consolidated statement of comprehensive income under financial expenses. The impairment was recognised due to
uncertainty in connection with the postponed launch of PAR’s planned business activity. As a result, the value of the
investment in PAR was equal to PLN 0 in the consolidated statement of financial position as at 31 December 2020 and as at
31 December 2019.
3.4. LEASES
Selected accounting policies
As a lessee, under IFRS 16, the Group recognises as leases all contracts under which the right to use an asset is transferred
for a given term in exchange for a fee. According to allowed simplifications, the Group does not apply lease accounting to:
short-term lease contracts;
leases of low-value underlying assets (“low-value leases”).
Such lease payments are recognised as costs on a straight-line basis in the financial result.
Low-value leases include mainly leases of: computers, coffee machines, office furniture. For low-value leases, the Group
selects the recognition method individually for each contract, i.e., without defining a global threshold below which leases are
considered low-value.
Short-term leases are leases up to 12 months.
For each lease contract, the Group defines the lease term as an uncancellable period including:
periods when the lessee is reasonably certain to exercise an option to extend the lease; and
periods when the lessee is reasonably certain not to exercise an option to terminate the lease.
As a lessor, the Group recognises lease contracts as an operating lease or a finance lease.
A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership of an
underlying asset. A lease is classified as an operating lease if it does not transfer substantially all the risks and rewards
incidental to ownership of an underlying asset.
30
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN'000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
Lease payments from operating leases are recognised as income on either a straight-line basis or another systemic basis.
Income from office space leases is recognised in the amount of monthly rent. Any costs, including depreciation charges,
incurred to earn the lease income are recognised in the financial result.
At the commencement date, assets held under a finance lease are recognised in the consolidated statement of financial
position and presented as a lease/sublease receivable at an amount equal to the net investment in the lease.
Interest income on leases is recognised in the term of the lease to reflect a fixed periodic interest rate on the net investment
in the lease made by the Group in the finance lease; the Group applies the effective interest rate method.
Sublease contracts are contracts where the underlying asset is re-leased by the Group (“intermediate lessor”) to a third
party and the lease (“head lease”) between the head lessor and the Exchange remains in effect. Sublease contracts are
classified as an operating lease or a finance lease.
The policy applicable to the head lease applies accordingly to finance sublease contracts, i.e., as an intermediate lessor, the
Group derecognises the net value and the depreciation of the subleased assets from right-of-use assets in the consolidated
statement of financial position and from depreciation in the consolidated statement of comprehensive income, accordingly.
3.4.1. QUALITATIVE AND QUANTITATIVE INFORMATION ABOUT LEASE TRANSACTIONS – GROUP AS A LESSEE
The Group is a lessee of the following groups of assets:
office space and car park space in the Centrum Giełdowe building, ul. Książęca 4, Warsaw, and office space in Łódź
and Bełchatów;
perpetual usufruct of land occupied by the Centrum Giełdowe building;
colocation space (back-up office, racks, server rooms and maintenance rooms);
passenger cars.
Each lease contract is negotiated on an individual basis and contains a broad range of terms and conditions. The terms and
conditions with a significant impact on the value of lease liabilities include:
no fixed term of most lease contracts for space in Centrum Giełdowe (with a termination notice of several months);
for colocation services: contracts with a fixed term (several years) which automatically extend upon expiry as a
contract with no fixed term with a termination notice of several months;
three-year passenger car leases (after the term of the lease, the user has the option to buy the car; if the option is
not exercised, the car is returned to the lessor).
The Group’s leases contain no covenants; however, right-of-use assets cannot be used as loan collateral. They provide for
no material variable lease payments which would depend on an index or a rate, the Group’s revenue, a reference interest
rate, or which would change to reflect changes to market rents.
In the opinion of the Exchange Management Board, the Group is not exposed to material risk of future cash outflows in
respect of variable lease payments, residual value guarantee or leases not yet commenced. Given the nature of the lease
contracts for space in Centrum Giełdowe (no fixed term) and colocation, if the expected lease period changes, the liability
will be restated accordingly and future cash outflows will increase.
Depreciation charges on right-of-use assets (net of depreciation of subleased assets), increases in right-of-use assets, and
the carrying amount of right-of-use assets by category are presented in the table in Note 3.4.4.
Cash outflows under leases, excluding short-term leases and low-value leases, are presented net in the consolidated
statement of cash flows as lease payments (interest) and lease payments (principal).
Cash outflows under short-term leases and low-value leases are a cost of the leases recognised in the consolidated statement
of comprehensive income and presented in the table below.
The Exchange was not a lessee for any term under 12 months (short-term lease) in 2020 and in 2019.
31
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN'000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
2020 2019
Depreciation of right-of-us e as sets 3.4.4. 5 ,57 2 5 ,10 9
Interes t on lease liabilities 4.6. 6 2 1 74 5
Los ses/(Gains) on terminated leas es - 8
Low-value leas es 2 4 1 0 4
Total lease cost in the statement of comprehensive income 6,217 5,966
Note
Year ended 31 December
The Group incurred no variable lease costs in 2020 and in 2019 that would not be included in the value of lease liabilities.
3.4.2. QUALITATIVE AND QUANTITATIVE INFORMATION ABOUT LEASE TRANSACTIONS – GROUP AS A LESSOR
The Group is a lessor of office space in the Centrum Giełdowe building.
Where the Group leases proprietary space to third parties, such lease contracts are classified as operating leases.
Where the Group subleases leased space to third parties, such lease contracts are classified in accordance with the head
lease (the Group is an intermediate lessor). Consequently, the Group recognises sublease receivables and reduces right-of-
use assets under the head lease accordingly (recognised under IFRS 16).
As at 31 December 2020, the Group was:
the lessor (operating leases) of office space; and
the sublessor of office space.
The activity of the Group as a lessor and sublessor is incidental; it is not a significant source of revenue. Consequently, given
immateriality of leases, no additional disclosures have been made, such as sublease fees due in the next 5 years or
reconciliation of due sublease fees with net lease investments.
3.4.3. SELECTED JUDGMENTS AND ESTIMATES RELATED TO LEASES
Lease liabilities and right-of-use assets are calculated using professional judgment including:
determination of the period of lease;
determination of the marginal borrowing rate;
determination whether property owned by Group companies is not (in part) an investment property.
For leases signed by the Group with no fixed term, the Group estimates the most likely period of the lease taking into account
all facts and circumstances which provide an economic incentive to continue the lease. Afterwards, the Group uses judgment
to determine if it is reasonably certain that the Group will continue the lease on the occurrence of any event or change of
circumstances affecting the judgment.
The Exchange Management Board determined the term of leases using judgment as follows:
five-year term of lease of additional office space occupied by the Group in the Centrum Giełdowe building;
23-year term of lease of land occupied by the Centrum Giełdowe building (equal to the depreciation period of
premises and parts of the building in Centrum Giełdowe, owned by the Group).
The table below presents the impact of change of the term of lease of additional office space and land by 2 years.
Assuming the
term of lease is 2
years shorter
Assuming the
term of lease is 2
years longer
Assuming the
term of lease is 2
years shorter
Assuming the
term of lease is 2
years longer
(5 ,15 2 ) 4,8 6 0 (6,6 0 9 ) 6 ,23 2
(5 4 ) 5 0 (52 ) 4 9
(3 1 5 ) 30 2 (9 8 ) 9 4
(2 ) 2 (2 ) 1
(1 4 9 ) 14 0 (1 91 ) 18 0
As at/Year ended 31 December 2020
Impac t on s ublease interest income
Impac t on leas e interes t expense
Impac t on the value of leas e liabilities
Impac t on the value of s ublease payables
Impac t on operating expens es (depreciation)
32
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN'000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
The Exchange Management Board determined the lease rate using judgment of the interest rate that the Group would have
to pay to borrow, for a similar term and against similar collateral, funds necessary to buy the asset used under the lease
contract. In the opinion of the Management Board, the interest rate on the bonds issued by the Group is a reasonable
reflection of that rate.
Assuming the
lessee's
incremental
borrowing rate is
1 pp lower
Assuming the
lessee's
incremental
borrowing rate is
1 pp higher
Assuming the
lessee's
incremental
borrowing rate is
1 pp lower
Assuming the
lessee's
incremental
borrowing rate is
1 pp higher
1 2 4 (2 5 5) 6 24 (5 8 2 )
6 (6 ) 1 2 (1 2 )
1 0 5 (1 1 7) 1 20 (1 2 2 )
4 (4 ) 3 (3)
1 4 6 (1 3 3) 2 22 (2 0 7 )
As at/Year ended 31 December 2020
Impac t on s ublease interest income
Impac t on leas e interes t expense
Impac t on the value of leas e liabilities
Impac t on the value of s ublease payables
Impac t on operating expens es (depreciation)
In the opinion of the Exchange Management Board, the part of the Centrum Giełdowe building under operating leases does
not fulfil the criteria of investment property. The reason why the Exchange owns the property is not its expectation that the
market value of the property will increase or that the Exchange will earn revenue from rent.
3.4.4. RIGHT-OF-USE ASSETS
Selected accounting policies
The Group initially measures right-of-use assets at cost, including:
the initial valuation of the lease liability,
any lease payments paid at or before the commencement date less any lease incentives received,
any initial direct costs incurred by the lessee, and an estimate of any costs to be incurred by the lessee in
dismantling and removing the underlying asset, or restoring the site on which it is located, or restoring the
underlying asset to the condition required by the terms and conditions of the lease.
After the commencement date of the lease, the Group measures right-of-use assets applying a cost model, i.e., at cost less
accumulated depreciation and impairment losses and adjusted for any remeasurement of the lease liability. Right-of-use
assets are depreciated on a straight-line basis over the lease term.
For subleases, the head lease asset is derecognised in right-of-use assets in the consolidated statement of financial position
and its depreciation is derecognised in depreciation in the consolidated statement of comprehensive income.
Right-of-use assets are presented in a separate line of the consolidated statement of financial position. The Group groups
such assets by class of underlying asset and discloses the classes in the Notes. The main classes of underlying assets used
under the right to use include office space and other premises, perpetual usufruct of land and colocation space.
The table below presents changes to right-of-use assets by category, net of subleased assets.
33
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN'000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
Of fice space and
other premises
Perpetual
usuf ruct of land
Vehicles Colocation space Total
Right-of-use assets - as at the beginning
of the period
7,485 4,240 1,098 9,904 22,725
New leas es 3 60 - 1 0 7 - 467
New subleases (2 8 4 ) - (6 4 ) - (348)
T erminated subleas es 41 6 - - - 416
Rec lass ific ation and other adjus tments 7 9 1 6 5 6 0 205
Depreciation (2 ,14 8 ) (19 3 ) (5 7 7 ) (2 ,5 17 ) (5,435)
Net carrying amount - closing balance 5,907 4,048 629 7,447 18,031
Twelve-month period ended 31 December 2020
Office space
and other
premises
Perpetual
usuf ruct of land
Vehicles
Colocation
space
Total
Right-of-use assets - as at the beginning of
the period
8,872 4,433 587 12,487 26,379
New leases 3 2 4 - 9 9 4 - 1,318
New subleas es (6 2 9 ) - - - (629)
T erminated subleas es 8 2 8 - - - 828
Rec las s ification and other adjustments - - - (6 2 ) (62)
Deprec iation (1 ,91 2 ) (1 9 3 ) (4 8 3 ) (2 ,52 1 ) (5,109)
Net carrying amount - closing balance 7,483 4,240 1,098 9,904 22,725
Twelve-month period ended 31 December 2019
3.4.5. LEASE LIABILITIES
Selected accounting policies
The Group measures lease liabilities at the commencement date of the lease at the present value of the lease payments
outstanding at that date. Lease payments are discounted at the interest rate implicit in the lease. If the Group cannot easily
determine the interest rate implicit in the lease, it applies its marginal borrowing rate. The marginal borrowing rate of the
Group is equal to the interest rate that the Group would have to pay to borrow, for a similar term and against similar
collateral, funds necessary to buy an asset of a similar value as the asset used under the lease contract.
For the purposes of initial measurement of lease liabilities, the Group determines lease payments including:
fixed lease payments and variable lease payments depending on an index or rate;
amounts which the Group is expected to pay under a residual value guarantee;
the exercise price of an option to purchase the asset that the Group is reasonably certain to exercise;
payments for terminating the lease if the Group may exercise an option to terminate the lease according to the
terms and conditions of the lease.
After the commencement date of the lease, the Group measures lease liabilities by:
calculating interest on the lease liability,
reducing the carrying amount to reflect the lease payments made,
remeasuring the carrying amount of the liability to reflect any reassessment or lease modifications.
34
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN'000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
As a result, each lease payment is allocated between lease liabilities (presented in a separate item of the consolidated
statement of financial position, broken down by current and non-current items) and interest cost of leases (recognised in
financial expenses in the consolidated statement of comprehensive income).
The table below presents changes to lease liabilities by category.
Of fice space and
other premises
Perpetual
usuf ruct of land
Vehicles
Colocation
space
Total
Lease liabilities - as at the beginning of the period 8,194 1,934 1,144 10,113 21,385
New leas es 3 6 0 - 10 7 - 467
Interest on leas e liabilities 2 58 55 4 5 2 6 3 621
Lease liabilities paid in the period (equal to leasing
fees)
(2 ,47 7 ) (11 9 ) (6 2 0) (2,7 09 ) (5,925)
Remeasurement of leas e liabilities 1 8 2 - - - 182
Rec lass ific ation and other adjustments 3 2 - - - 32
Net carrying amount - closing balance, including: 6,549 1,870 676 7,667 16,761
non-current 4 ,1 5 1 1 ,80 5 1 5 7 5,1 8 5 11,298
current 2 ,3 9 8 6 5 5 19 2,4 8 1 5,463
Twelve-month period ended 31 December 2020
Office space
and other
premises
Perpetual
usuf ruct of land
Vehicles
Colocation
space
Total
Lease liabilities - as at the beginning of the
period
9,933 1,995 587 12,487 25,002
New leases 3 24 - 9 9 4 - 1,318
Interes t on leas e liabilities 2 98 5 7 5 5 3 3 5 745
Lease liabilities paid in the period (equal to
leas ing fees)
(2 ,33 6 ) (11 8 ) (4 9 2 ) (2 ,70 9 ) (5,655)
Remeas urement of leas e liabilities (25 ) - - - (25)
Rec las s ification and other adjustments - - - - -
Net carrying amount - closing balance,
including:
8,194 1,934 1,144 10,113 21,385
non-current 6,076 1,870 591 7,667 16,204
current 2,118 64 553 2,446 5,181
Twelve-month period ended 31 December 2019
An analysis of lease liabilities by due date is presented in Note 2.4.
3.4.6. SUBLEASE RECEIVABLES
Selected accounting policies
The Group measures sublease receivables in the same way as it measures lease liabilities, i.e., at the commencement date
of the lease at the present value of the lease payments outstanding at that date. Lease payments are discounted at the
interest rate implicit in the lease. If the Group cannot easily determine the interest rate implicit in the lease, it applies its
marginal borrowing rate.
35
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN'000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
The table below presents changes to sublease receivables by category.
Of fice space and other
premises
Vehicles Total
Lease receivables as at 1 January 2020 648 65 713
New subleas es 2 84 - 284
T erminated subleases (4 1 6 ) - (416)
Interes t on subleas e rec eivables 12 - 12
Sublease rec eivables paid in the period (equal to leas ing fees ) (1 43 ) - (143)
Remeas urement of sublease rec eivables 8 - 8
Rec las s ification and other adjustments (7 7 ) (6 5 ) (142)
Net carrying amount - closing balance, including: 316 - 316
non-current 1 79 - 179
current 13 7 - 137
Twelve-month period ended 31 December 2020
Of fice space and
other premises
Vehicles Total
Lease receivables - as at the beginning of the period 1,060 - 1,060
New subleases 6 3 1 6 6 697
T erminated s ubleases (82 8 ) - (828)
Interest on sublease rec eivables 2 5 1 26
Sublease rec eivables paid in the period (equal to leasing fees) (2 3 1 ) (2 ) (233)
Remeasurement of subleas e receivables (2) - (2)
Rec lass ification and other adjus tments (8 ) - (8)
Net carrying amount - closing balance, including: 648 65 713
non-current 479 44 523
current 169 21 190
Twelve-month period ended 31 December 2019
3.5. FINANCIAL ASSETS
3.5.1. CLASSIFICATION AND MEASUREMENT OF FINANCIAL ASSETS
Selected accounting policies
The Group’s financial assets are classified into the following categories:
financial assets measured at amortised cost:
cash and cash equivalents,
trade receivables,
receivables from loans granted,
36
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN'000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
other receivables,
other financial assets (including bank deposits and held-to-maturity corporate bonds and certificates of
deposit);
financial assets measured at fair value through profit or loss;
financial assets measured at fair value through other comprehensive income.
Cash and cash equivalents are presented in a dedicated item of the consolidated statement of financial position. Trade
receivables and other receivables are presented in trade receivables and other receivables in the consolidated statement of
financial position. Receivables from loans granted and other financial assets are presented in financial assets measured at
amortised cost in the consolidated statement of financial position.
The assets are classified into those categories on initial recognition. Classification depends on:
the business model of asset portfolio management; and
the contractual terms of the financial asset.
Financial assets are derecognised when the right to receive cash flows from such assets expire or are transferred and the
Group transfers substantially all the risks and rewards incidental to ownership of the assets.
Financial assets measured at amortised cost are presented in Notes 3.5.4, 3.5.5, and 3.5.6.
Financial assets measured at fair value through other comprehensive income are presented in Note 3.5.3.
The Group held no financial assets measured at fair value through profit or loss as at 31 December 2020 and as at 31
December 2019.
3.5.2. IMPAIRMENT OF FINANCIAL ASSETS
Selected accounting policies
At each balance sheet date, the Group recognises impairment (expected credit loss) of financial assets. If there has been
a significant increase in credit risk of a financial asset since initial recognition, the Group recognises expected credit loss of
the financial asset as an allowance equal to lifetime expected credit losses; otherwise, the financial asset will attract a loss
allowance equal to 12-month expected credit loss.
The Group’s impairment allowance for financial assets measured at amortised cost (other than trade receivables) is equal to
the 12-month expected credit loss in view of the low credit risk of such financial instruments. The Group considers cash and
cash equivalents, other receivables and other financial assets measured at amortised cost to carry low credit risk because it
only accepts entities, including banks and financial institutions, of a high rating and stable market position, i.e., rated above
Baa2 by Moody’s.
The Group measures expected credit loss of financial instruments taking into account:
an unbiased and probability-weighted amount that is determined by evaluating a range of possible outcomes;
the time value of money;
reasonable and supportable information that is available without undue cost or effort at the reporting date about
past events, current conditions and forecasts of future economic conditions
The Group applies a simplified approach to trade receivables and contract assets, where impairment allowances for trade
receivables are recognised as equal to lifetime expected credit loss according to a provision matrix. Trade receivables of the
Exchange have no significant financing component.
As at the end of each reporting year, to estimate expected credit loss on trade receivables, the Group performs a statistical
analysis of trade receivables by category of clients (Exchange Members, Issuers, other clients) based on historical collection
of debt from counterparties.
In the next step, the Group performs a portfolio analysis and calculates for each category of clients a provision matrix by
age group. The allowance for debt which is not overdue as at the balance sheet date for a group of clients in a time bracket
is equal to the value of trade receivables at the balance sheet date times the client’s probability of default.
The expected credit loss (or released allowance) required to adjust the expected credit loss allowance as at the reporting
date to the amount that should be recognised is presented in the consolidated statement of comprehensive income as gains
or losses on impairment.
37
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN'000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
The expected credit loss allowance for financial assets classified as financial assets measured at amortised cost is shown as
a reduction of the gross carrying amount of the financial asset in the consolidated statement of financial position.
The expected credit loss allowance for financial assets classified as financial assets measured at fair value through other
comprehensive income is shown in other comprehensive income; it does not reduce the carrying amount of the financial
asset.
3.5.3. FINANCIAL ASSETS MEASURED AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME
Selected accounting policies
Financial assets measured at fair value through other comprehensive income include:
Equity securities which the Group irrevocably elects to recognise as such on initial recognition.
Debt securities where contractual cash flows are solely payments of principal and interest and the objective of the
Group’s business model is achieved both by collecting contractual cash flows and by selling financial assets.
Financial assets measured at fair value through other comprehensive income comprise shares in entities over which
the Group does not exercise control or exert significant influence. They are disclosed as non-current assets unless
the Group intends to sell them within 12 months after the balance sheet date.
Financial assets measured at fair value through other comprehensive income are initially recognised at fair value
plus directly attributable transaction costs. After initial recognition, they are measured at fair value and any effect
of change in the fair value (other than impairment losses and FX differences) is recognised in other comprehensive
income and presented in equity as reserves. On derecognition, the cumulative profit or loss recognised in equity is
taken to retained earnings after tax.
Innex BVB Total
3 ,8 2 0 1,3 43 5,163
- (21 7 ) (217)
(3 ,82 0 ) (1,0 1 1 ) (4,831)
- 115 115
As at 31 December 2020
Impairment
Carrying amount
V alue at cost
Revaluation
Innex BVB Total
3 ,8 2 0 1,3 43 5,163
- (21 2 ) (212)
(3 ,82 0 ) (1,0 1 1 ) (4,831)
- 120 120
V alue at cost
Revaluation
Impairment
Carrying amount
As at 31 December 2019
Innex
The Exchange acquired a stake in the Ukrainian Stock Exchange Innex in July 2008. Impairment of the investment was
recognised in 2008. The Exchange Management Board identified no indications of release of the full impairment of the
investment in Innex as at 31 December 2020.
Bucharest Stock Exchange (“BVB”)
The Exchange acquired a stake in Sibex in 2010. SIBEX merged with BVB at 1 January 2018. Following the merger, the
Exchange holds 5,232 BVB shares at a par value of RON 10 per share. BVB is listed on the Bucharest Stock Exchange.
38
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN'000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
Fair value hierarchy
Selected accounting policies
The Group classifies the valuation at fair value on the basis of a fair value hierarchy which reflects the significance of valuation
input data. The fair value hierarchy includes the following levels:
(unadjusted) trading prices on active markets for identical assets or liabilities (level 1);
input data other than trading prices at level 1, which can be identified or observed for an asset or liability, directly
(as prices) or indirectly (calculations based on prices) (level 2); and
input data for an asset or liability not based on observable market data (non-observable data) (level 3).
The fair value of BVB shares as at 31 December 2020 and as at 31 December 2019 was recognised at the share price (level
1 of the fair value hierarchy).
3.5.4. TRADE RECEIVABLES AND OTHER RECEIVABLES
Selected accounting policies
Trade receivables are receivables from clients of the Group held to payment. At initial recognition, trade receivables are
measured at fair value, which is the nominal value of issued invoices. At the balance sheet date, trade receivables are
measured at amortised cost net of impairment. Trade receivables payable in less than 12 months (from initial recognition)
are measured at nominal value and not discounted.
Other receivables include mainly (current) prepayments. Prepayments are recorded when expenditures incurred relate to
future reporting periods. Prepayments are recognised in the consolidated statement of comprehensive income over the
lifetime of the relevant contract. Receivables which are not financial assets are presented at the amount due at the balance
sheet date.
Non-current prepayments are presented as prepayments in non-current assets in the consolidated statement of financial
position.
Following the implementation of IFRS 16, as of 1 January 2019, all historical, current and future payments relating to the
right to perpetual usufruct of land are included in the measurement of right-of-use assets and liabilities.
2020
2019
(restated)
5 4,0 7 7 4 1 ,0 3 9
(6 ,68 5 ) (6,0 3 9 )
47,392 35,000
6 ,20 3 5 ,29 0
8 1 1 3
Rozrac hunki z tytułu subleasingu 1 3 1 3
Grants rec eivable - 5 62
1 ,61 3 4 ,26 5
7,837 10,243
55,229 45,243
Total trade receivables
Total other receivables
C urrent prepayments
V A T refund rec eivable
Gros s trade receivables
Impairment allowanc es for trade rec eivables
O ther rec eivables
Total trade receivables and other receivables
As at 31 December
In the opinion of the Exchange Management Board, in view of the short due date of trade receivables, the carrying value of
those receivables is similar to their fair value.
39
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN'000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
2020 2019
39,057 26,530
1 to 30 days overdue 3,855 4,399
31 to 61 days overdue 3,036 1,096
61 to 90 days overdue 806 1,811
91 to 180 days overdue 1,578 1,592
More than 180 days overdue 496 105
9,772 9,003
5,248 5,505
54,077 41,039
Receivables which are neither overdue nor impaired
Total overdue receivables (no impairment)
Impaired and overdue receivables
Total gross trade receivables
As at 31 December
Trade receivables which are neither overdue nor impaired include mainly trade receivables from Exchange Members (banks
and brokerage houses) and receivables from issuers of securities as well as receivables for other services.
As at 31 December 2020, the Group’s trade receivables at PLN 15,020 thousand (31 December 2019 – PLN 14,508 thousand,
including PLN 12,345 thousand at the parent entity) were overdue, including PLN 12,088 thousand at the parent entity. The
total overdue receivables included the parent entity’s receivables from debtors under insolvency or creditor arrangement
proceedings at PLN 645 and other overdue receivables at PLN 11,443 as at 31 December 2020 (31 December 2019 – PLN
1,281 thousand and PLN 11,064 thousand, respectively).
As at 31 December 2020, trade receivables at PLN 5,248 thousand (31 December 2019 – PLN 5,505 thousand) were overdue
and impaired.
2020 2019
2 6 ,1 51 1 4 ,60 0
Iss uers*
6 9 2 1 ,58 1
O ther*
1 2 ,2 15 1 0 ,34 9
Total gross trade receivables not overdue 39,057 26,530
* Receivables from debtors who are at the s ame time Exchange Members and I s s uers or Exchange Members and Data Vendors (other
clients ) are presented under receivables from Exchange Members .
As at 31 December
Exc hange M embers
Receivables from Exchange Members include receivables from Polish and foreign banks and brokerage houses, whose risk
ratings are presented in the table below. Due to the fact that the Group does not have its own credit rating system, external
credit ratings were used. If a single debtor had no credit rating, the rating of the parent entity of the debtor was used.
Receivables from issuers include fees due from companies listed on GPW.
Trade receivables from other clients include mainly fees for information services.
2020 2019
Aa
2 ,4 2 4 55
A
1 1 ,3 29 6 ,6 2 8
Baa
3 ,8 9 1 1 ,33 4
B and BB
3 ,7 6 9 6 1 8
No rating
4 ,7 3 8 5 ,96 5
26,151 14,600
As at 31 December
Total trade receivables from Exchange Members
The Group has no collateral on receivables.
In 2020 and 2019 none of the Group’s trade receivables were subject to renegotiation of the amount.
The fair value of trade receivables and other receivables is not significantly different from the book value.
40
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN'000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
2020 2019
Opening balance 6,039 5,349
1 ,0 7 5 1 ,5 42
(4 2 9 ) (8 52 )
Closing balance 6,685 6,039
Rec eivables written off during the period as uncollec tible
C hange of allowance balanc es
As at 31 December
The impairment of trade receivables was determined according to the expected loss concept using a provision matrix
described in Note 3.5.2.
Selected judgments and estimates
The calculation of impairment of receivables under IFRS 9 requires judgments necessary to define methodologies, models,
the classification of clients, and other input data.
The Group’s trade receivables have no significant financing component. Consequently, impairment as at 31 December 2020
was determined according to lifetime expected credit losses. Based on historical data, the Group performed a statistical
analysis of the probability of payment of overdue trade receivables by receivables portfolio.
In the parent entity, the estimated default ratios for clients whose debt is overdue for less than 180 days are as follows:
Exchange Members – from 0.27% to 7.24%,
issuers of securities listed on markets operated by the Exchange – from 1.25% to 24.41%,
other clients (including data vendors) – from 0.58% to 5.40%.
The Group concluded that the default ratios estimated on the basis of historical data represent the probability of default of
trade receivables in the future and consequently the ratios were not adjusted.
The change of the impairment allowance for trade receivables in 2020 was PLN 646 thousand (increase of allowance).
PLN 950 thousand was recognised in the consolidated statement of comprehensive income in 2020 as impairment loss on
receivables. The difference at PLN 304 thousand were receivables written off in previous years.
The change of the impairment allowance for trade receivables in 2019 was PLN 690 thousand (increase of allowance) and
PLN 1,901 thousand was recognised in the consolidated statement of comprehensive income in 2019 as impairment loss on
receivables (including PLN 359 thousand receivables previously not written off and PLN 1,542 thousand under the expected
loss model and the provision matrix). The difference at PLN 852 thousand were receivables written off in previous years.
2020 2019
Domestic receivables 3 2 ,8 6 4 2 3 ,1 4 8
Foreign rec eivables 2 1 ,2 1 3 1 7 ,8 9 1
Total gross trade receivables 54,077 41,039
As at 31 December
3.5.5. FINANCIAL ASSETS MEASURED AT AMORTISED COST
Selected accounting policies
Financial assets measured at amortised cost include: cash and cash equivalents, trade receivables, receivables from loans
granted, other financial assets, and other receivables (see Note 3.5.1). Cash and cash equivalents, trade receivables and
other receivables are presented in dedicated items of the consolidated statement of financial position (Notes 3.5.4, 3.5.6).
Financial assets measured at amortised cost in the statement of financial position include other financial assets and
receivables from loans granted. Other financial assets include mainly bank deposits, certificates of deposit and corporate
bonds with initial maturities exceeding 3 months (from purchase/contracting).
Interest on financial assets classified as financial assets measured at amortised cost is measured using the effective interest
rate method and recognised in the profit or loss of the period as part of financial income or financial expenses.
41
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN'000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
2020 2019
8 9 ,9 77 89 ,95 8
2 0 5 ,00 9 2 3 9 ,0 40
294,986 328,998
294,986 328,998
Bank depos its
As at 31 December
Total financial assets measured at amortised cost (over 3 months)
C orporate bonds
Total current
Interest received Interest accrued
Total recognised in
financial income
C orporate bonds 1 ,4 2 8 (45 7 ) 971
Bank deposits 2 ,54 2 (1 ,02 9 ) 1,513
Total revenue f rom assets measured at amortised
cost (over 3 months)
3,970 (1,486) 2,484
Year ended 31 December 2020
Interest received Interest accrued
Total recognised in
financial income
C orporate bonds 5 7 9 2 3 8 817
C ertificates of deposit 3 3 3 (1 5 8 ) 175
Bank depos its 4 ,31 1 (1 41 ) 4,170
Total revenue from assets measured at amortised
cost (over 3 months)
5,223 (61) 5,162
Year ended 31 December 2019
3.5.6. CASH AND CASH EQUIVALENTS
Selected accounting policies
Cash and cash equivalents are financial assets measured at amortised cost. Cash and cash equivalents include on-demand
bank deposits, other short-term investments with original maturities up to 3 months (from contracting), which are highly
liquid and easily convertible to known amounts of cash and which are subject to an insignificant risk of change in fair value.
Cash deposited in a VAT account is classified as cash equivalents as it can be used to pay tax liabilities and can also be
transferred to other current accounts (upon application to the Tax Office).
2020
2019
(restated)
C urrent ac counts (other) 2 5 4 ,4 70 1 3 9 ,1 0 9
V A T current acc ounts (split payment) 47 4 3 ,2 6 5
Bank depos its 1 6 6 ,21 9 1 4 2 ,9 00
421,163 285,274
As at 31 December
Total cash and cash equivalents
Cash and cash equivalents include current accounts and short-term bank deposits (up to 3 months). The carrying value of
short-term bank deposits and current accounts is close to the fair value in view of their short maturity. The average maturity
of bank deposits included in cash and cash equivalents was 3 days in 2020 (2 days in 2019).
At the commencement of the development projects: New Trading System, GPW Data and GPW Private Market (see Note
6.3), the Group opened dedicated banks accounts for each of those projects. The total balance in those accounts was PLN
4,111 thousand as at 31 December 2020 (PLN 627 thousand as at 31 December 2019). Cash in such accounts is classified
as restricted cash.
42
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN'000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
Current accounts (other) included restricted cash at PLN 10.1 million as at 31 December 2020 and as at 31 December 2019
which is IRGiT’s additional risk management tool and secures the liquidity of IRGiT’s clearing of exchange transactions under
the GIR Rules.
Cash in VAT accounts is also restricted cash due to regulatory restrictions on the availability of cash in such accounts for
current payments.
3.6. CONTRACT ASSETS AND CONTRACT LIABILITIES
Selected accounting policies
Contract assets are a right to payment for services already transferred by the Group to a customer.
Contract liabilities are an obligation of the Group to provide a service to a customer in exchange for payment already received
by the Group or due at the balance sheet date.
Contract assets include mainly information services. Other revenue classified as contract assets stood at PLN 1,696 thousand
as at 31 December 2020 and PLN 2,415 thousand as at 31 December 2019.
Contract liabilities include annual and quarterly fees paid by market participants as well as fees for introduction of debt
instruments into trading.
2020 2019
Lis ting 1,170 5 7 2
T otal financ ial market 1 ,1 7 0 5 7 2
Total non-current 1,170 572
Trading 2,174 1,115
Lis ting 952 192
I nf ormation services and revenue
from the calculation of reference rates
55 762
T otal financ ial market 3 ,1 8 1 2,0 6 9
Trading 2,378 2,216
T otal commodity market 2 ,3 7 8 2,2 1 6
O ther revenue 2 3 7 9
Total current 5,582 4,364
Total contract liabilities 6,752 4,936
As at 31 December
3.7. (NON-CURRENT) PREPAYMENTS
Selected accounting policies
Non-current prepayments present amounts paid relating to future periods which are recognised over time.
Non-current prepayments stood at PLN 2,393 thousand as at 31 December 2020 including mainly IT hardware maintenance
(PLN 2,388 thousand). Non-current prepayments stood at PLN 2,043 thousand as at 31 December 2019 (PLN 2,032 thousand
for IT hardware maintenance).
3.8. OTHER CURRENT ASSETS
As at 31 December 2019, other current assets stood at PLN 4.404 thousand, including PLN 4.222 thousand
relating to payments with the UTP vendor.
Following an analysis, in the opinion of the Exchange Management Board, as at 31 December 2020, there were
indications of impairment of assets relating to payments with the UTP vendor. As a result, their amount was
charged to other expenses. Consequently, as at 31 December 2020, other current assets relating to payments
with the UTP vendor stood at PLN 0 and the Group’s total other current assets stood at PLN 140 thousand.
43
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN'000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
3.9. EQUITY
Selected accounting policies
The equity of the Group comprises:
share capital of the parent entity disclosed at par, adjusted for hyperinflation;
other reserves, including the revaluation reserve;
retained earnings, comprised of:
retained earnings from prior years (comprised of supplementary capital and other reserves formed from
prior year profits); and
profit of the current period.
The Group presents non-controlling interests pro rata to the share in the net assets of a subsidiary. Changes to a stake
in a subsidiary which do not result in loss of control are shown as transactions with the owners of the subsidiary directly
under equity. Any changes to non-controlling interests are recognised pro rata to the share in the net assets of the subsidiary.
In that case, goodwill is not adjusted and no gains or losses are recognised.
3.9.1. SHARE CAPITAL
As at 31 December 2020 and as at 31 December 2019, the share capital of the Exchange stood at PLN 41,972 thousand and
was divided into 41,972,000 shares with a nominal value of PLN 1 per share including series A shares and series B shares.
The Company’s shares were fully paid up. Series A shares are preferred registered shares which may be exchanged into
bearer shares and become series B ordinary shares on exchange. Each series A share gives 2 votes. Series B shares are
bearer shares. Each series B share gives 1 vote.
The share capital from before 1996 was restated using the general price index. The restatement of the share capital for
inflation was PLN 21,893 thousand as at 31 December 2020 and as at 31 December 2019.
As required by the Articles of Association of the parent entity, reserve capital is earmarked for covering losses that may arise
in the operations of the parent entity and for supplementing the share capital or for payment of dividends. Reserve capital
should not be lower than one-third of the share capital. Transfers from distributed profit to reserve capital may not be lower
than 10% of the profit. Transfers may be discontinued when reserve capital equals one-third of the share capital. One-third
of reserve capital may only be used to cover losses reported in consolidated financial statements.
Reserves are maintained by the parent entity to ensure the ability of financing investments and other expenses connected
with the operations of the parent entity. Reserves can be used towards share capital or payment of dividends.
share capital total vote
State T reas ury 1 4 ,6 8 8 ,4 70 35.00% 51 .77 %
Banks 4 9 ,0 0 0 0 .12 % 0.18%
Brokers 3 5 ,0 0 0 0 .08 % 0.12%
Total registered shares (A series) 14,772,470 35.20% 52.07%
Bearer shares (B series) 27,199,530 64.80% 47.93%
Total 41,972,000 100.00% 100.00%
As at 31 December 2020 and as at 31 December 2019
Value at par
%
44
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN'000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
3.9.2. OTHER RESERVES
As at
1 January
2020
Change on
revaluation
As at
31 December
2020
Revaluation (2 ) (5 ) (7)
Deferred tax 1 1 2
Total for the Group (1) (4) (5)
Revaluation 1 ,3 1 7 2 0 1,337
Total for entities measured by equity method 1,317 20 1,337
Total capital from revaluation of financial assets measured at
fair value through other comprehensive income
1,316 16 1,332
Revaluation (2 8 4 ) (5 2 ) (336)
Deferred tax 5 7 9 66
Total capital from actuarial gains/losses (227) (42) (269)
Total other reserves 1,089 (26) 1,063
3.9.3. RETAINED EARNINGS
Reserve
capital
Other
reserves
Retained
earnings
Prof it for the
period
Total retained
earnings
As at 1 January 2020 116,556 356,281 215,771 119,320 807,927
Distribution of the net profit for the year ended
31 December 20 1 9
6 6 7 1 4,6 6 8 1 03 ,9 8 5 (1 19,320) -
Dividend - - (100 ,7 33) - (100,733)
Net profit for the year ended 31 December 20 2 0 - - - 1 5 1 ,4 2 6 151,426
As at 31 December 2020 117,223 370,949 219,023 151,426 858,620
Kapitał
zapasowy
Kapitał
rezerwowy
Zysk z lat
ubiegłych
Zysk netto
bieżącego
okresu
Razem zyski
zatrzymane
As at 1 January 2019 116,509 337,283 184,604 183,683 822,078
Distribution of the net profit for the year ended
31 Dec ember 201 8
4 7 1 8 ,9 9 8 1 6 4 ,6 3 8 (1 83 ,6 83 ) -
Dividend - - (1 33 ,47 1) - (133,471)
Net profit for the year ended 3 1 December 20 1 9 - - - 1 1 9,3 2 0 119,320
As at 31 December 2019 116,556 356,281 215,771 119,320 807,927
3.9.4. DIVIDEND
On 22 June 2020, the Annual General Meeting of the Exchange passed a resolution to distribute the Company’s profit for
2019, including a dividend payment of PLN 100,733 thousand. The dividend per share was PLN 2.40. The dividend record
date was 28 July 2020. The dividend was paid on 11 August 2020. The dividend due to the State Treasury was PLN 35,252
thousand.
On 17 June 2019, the Annual General Meeting of the Exchange passed a resolution concerning the distribution of the
Company’s profit earned in 2018, including the allocation of PLN 133,471 thousand to the payment of dividend. The dividend
was PLN 3.18 per share. The dividend record date was set at 19 July 2019. The dividend was paid out on 2 August 2019.
The dividend paid to the State Treasury was PLN 46,709 thousand.
45
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN'000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
3.9.5. EARNINGS PER SHARE
2020 2019
1 5 1 ,4 4 0 1 1 9,3 3 4
4 1 ,9 7 2 41 ,97 2
Basic/diluted earnings per share (in PLN) 3.61 2.84
Net profit for the period
Weighted average number of ordinary s hares (in thousands)
Year ended 31 December
There are no dilutive instruments in the Group.
3.10. BOND ISSUE LIABILITIES
Selected accounting policies
Liabilities under bond issues, as well as trade payables and lease liabilities, are financial liabilities.
Financial liabilities at the balance sheet date are valued at amortised cost. The valuation is based on cost at which the liability
was initially recognised less the repayment of the nominal value, adjusted for the cumulative amount of the discounted
difference between the initial value and the maturity value. For instruments at floating interest rates, in relation to the next
agreed re-pricing date (on which the interest rate is determined), it is calculated using the effective interest rate method.
The effective interest rate is the internal rate of return (IRR) of the liability, which is used for discounting future cash flows
of the financial instrument to present value.
2020 2019
Series C bonds 1 2 4 ,8 1 0 1 2 4 ,55 6
Series D and E bonds 1 1 9 ,9 2 8 1 1 9 ,79 4
Total non-current 244,738 244,350
Series C bonds 6 8 3 6 83
Series D and E bonds 4 8 5 1,2 5 0
Total current 1,167 1,932
Total liabilities under bond issue 245,905 246,282
As at 31 December
Opening
balance
Interest
accrued
Interest paid Cost incurred Cost settled
Closing
balance
P rincipal 244,929 - - - - 244,929
Interest 2,316 6 ,53 5 (7 ,3 0 0 ) - - 1,551
C os t of is suanc e (962) - - (3 ) 39 1 (573)
Total liabilities under bond issue 246,282 6,535 (7,300) (3) 391 245,905
Year ended 31 December 2020
46
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN'000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
Opening
balance
Interest
accrued
Interest paid Cost incurred Cost settled
Closing
balance
P rincipal 244,929 - - - - 244,929
Interest 2,322 7 ,26 9 (7 ,2 7 5 ) - - 2,316
C os t of is suanc e (1,352) - - (2 ) 3 9 2 (962)
Total liabilities under bond issue 245,899 7,269 (7,275) (2) 392 246,282
Year ended 31 December 2019
The table below presents the key parameters of bonds in issue.
Issue date Maturity date
Total value at
par
Currency Interest rate Coupon
Series C bonds 06.10.2015 0 6.10.202 2 1 2 5 ,0 00 P LN 3 .1 9% 6M
Series D bonds 02 .0 1.201 7 31 .01 .20 22 6 0 ,0 0 0 P LN WI BO R 6M + 0,95% 6M
Series E bonds 18.01.201 7 31 .01 .2 022 60 ,0 00 P LN WIBO R 6 M + 0,95% 6M
The table below presents the fair value of bonds in issue.
2020 2019
Fair value of s eries C bonds 13 0 ,44 0 12 8 ,26 5
Fair value of s eries D and E bonds 1 21 ,1 4 7 1 2 2 ,4 70
Total fair value of bonds in issue 251,587 250,735
As at 31 December
3.11. EMPLOYEE BENEFITS PAYABLE
Selected accounting policies
Employee benefits payable include retirement benefits and other benefits, including provisions for annual awards and
bonuses and provisions for benefits after termination.
The present value of retirement benefits payable is determined as at the balance sheet date by an independent actuarial
advisor. The calculated benefits payable are equal to discounted future payments taking into account employee rotation as
at the balance sheet date. Demographic and employee rotation data are based on historical figures. Actuarial gains and
losses on employee benefits after termination are included in other comprehensive income.
The Group sets up provisions for annual awards and bonuses in order to assign costs to the periods to which they relate.
Provisions are estimated according to the best knowledge of the Exchange Management Board and the Management Boards
of the subsidiaries concerning probable bonuses to be paid based on the framework of the incentive scheme.
31 December 2020 31 December 2019
Retirement benefits 1 ,0 72 88 0
O ther employee benefits 4 4 8 0
Non-current 1,116 960
Retirement benefits 1 1 2 1 0 2
O ther employee benefits 2 3 ,6 38 17 ,07 3
Current 23,750 17,175
Total benefits in the statement of f inancial position 24,866 18,135
As at
47
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN'000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
3.11.1. RETIREMENT BENEFITS
Provisions for retirement benefits are recorded by the Group according to actuarial valuation as at the balance sheet date
provided by an independent actuarial advisor.
31 December 2020 31 December 2019
Retirement benefits - opening balance
982 831
C urrent s ervic e cos t
1 4 3 93
Interest cos t
2 0 22
A c tuarial loss es/(gains ) shown in other comprehensive income due to
change of:
5 4 1 07
- financial as s umptions 93 51
- demographic as s umptions (33) (9)
- other as s umptions (7) 64
Total change shown in comprehensive income 218 223
Benefits paid (16) (73)
Retirement benefits - closing balance 1,184 982
As at
31 December 2020 31 December 2019
Disc ount rate 1.2% 2.1%
Expec ted average annual increase of the base of provisions for retirement
benefits
3.5% 3.5%
Inflation p.a. 2.5% 2.5%
Weighted average employee mobility 6 ,5% - 10,1% 5,8 % - 10 ,0%
As at
3.11.2. OTHER EMPLOYEE BENEFITS
Opening
balance
Set up Used Reclassified Released
Closing
balance
A nnual and disc retionary bonus es
1 4,3 3 0 18 ,3 69 (13 ,2 4 8 ) 1 1 (6 2 ) 19,401
Benefits after termination 8 8 22 (88 ) - - 22
U nused holiday leave
2 ,48 7 3 ,5 1 0 (2 ,13 3 ) - - 3,864
O vertime
5 7 2 46 (57 ) - - 246
U npaid remuneration
1 13 1 0 5 (1 13 ) - - 105
Total current 17,073 22,252 (15,639) 11 (62) 23,638
A nnual and disc retionary bonus es
8 0 - (2 5 ) (11 ) - 44
Total non-current 80 - (25) (11) - 44
Total other employee benefits
payable
17,153 22,252 (15,664) - (62) 23,682
Year ended 31 December 2020
48
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN'000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
Opening
balance
Set up Used Reclassified Released
Closing
balance
A nnual and dis c retionary bonus es
1 1,6 9 6 12 ,01 3 (8 ,3 5 0 ) 1 8 6 (1 ,2 1 5) 14,330
Benefits after termination - 8 8 - - - 88
Unus ed holiday leave
2 ,30 8 2 ,2 54 (6 7 6 ) - (1,3 9 8 ) 2,487
O vertime
2 4 57 (12 ) - (1 2 ) 57
C ar allowance
1 - (1) - - -
Unpaid remuneration
1 07 1 1 3 (1 04 ) - (3 ) 113
Total current 14,136 14,525 (9,143) 186 (2,628) 17,073
A nnual and dis c retionary bonus es
4 57 - (1 7 6 ) (1 86 ) (1 5 ) 80
Total non-current 457 - (176) (186) (15) 80
Total other employee benefits
payable
14,593 14,525 (9,319) - (2,643) 17,153
Year ended 31 December 2019
3.12. ACCRUALS AND DEFERRED INCOME
Selected accounting policies
Accruals and deferred income include grants received and other payments.
Grants relating to assets are presented in the consolidated statement of financial position as deferred income (under accruals
and deferred income) and recognised in the consolidated statement of comprehensive income (under other income)
systematically through the useful life of the assets concerned by the grant.
Grants received are described in Note 6.3.
2020 2019
P C R 4 ,14 5 4 ,52 0
A gric ultural Market 82 1 1 ,0 60
New Trading P latform Projec t 6 ,37 7 8 0 9
GP W Data P roject 91 0 -
P rivate M arket 20 8 -
Total non-current def erred income f rom grants 12,461 6,389
P C R 3 75 5 1 3
A gric ultural Market 33 3 2 3
New Trading P latform Projec t 1 ,53 8 2 3 1
GP W Data P roject 58 0 -
P rivate M arket 87 -
Total non-current def erred income f rom grants 2,912 767
Total accruals and def erred income 15,373 7,156
As at 31 December
49
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN'000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
3.13. OTHER LIABILITIES
2020 2019
7 ,06 2 8 ,35 5
1 ,61 2 1 ,28 5
Total non-current 8,674 9,641
2 87 2 7 0
5 4,7 9 3 25 ,4 93
4 ,00 0 3 ,33 5
5 ,47 6 1 1 ,1 2 7
1 ,29 3 1 ,25 5
Liabilities to the Polish Financial Supervision A uthority 17 -
2 ,99 9 2 2 9
Total current 68,865 41,709
Total other liabilities 77,539 51,350
Dividend payable
Liabilities to the Polish National Foundation
V A T payable
Liabilities in res pect of other taxes
C ontrac ted investments
O ther liabilities
Liabilities to the Polish National Foundation
O ther liabilities
As at 31 December
As a co-founder of the Polish National Foundation established in 2016 by 17 companies owned by the State (“PFN”),
the Exchange is required to contribute annual payments towards the statutory mission of PFN, totalling 11 annual payments
from the establishment of the Foundation. Payments to PFN are donations and the liability of GPW to make all payments
to PFN according to the founding deed of the Foundation arose when GPW joined the Foundation and signed its founding
deed in 2016. The liability was recognised in the costs of 2016 and is charged over time. The liability of the Exchange to PFN
was PLN 8,355 thousand as at 31 December 2020 (PLN 9,610 thousand as at 31 December 2019).
3.14. TRADE PAYABLES
Selected accounting policies
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from
suppliers. Trade payables are classified as current liabilities if payment is due within one year (or in the normal operating
cycle of the business if longer). Otherwise, they are presented as non-current liabilities.
Trade payables, as well as liabilities under bond issues and lease liabilities, are financial liabilities. Financial liabilities at
the balance sheet date are valued at amortised cost.
2020
2019
(res tated)
6 8 3 6 6
T rade payables to other entities, accruals and deferred income 1 5 ,0 4 9 1 1,2 18
15,117 11,584
Total trade payables
As at 31 December
P ayables to entities measured by equity method
In the opinion of the Exchange Management Board, due to the short due dates of trade payables, the carrying value of trade
payables is similar to the fair value.
50
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN'000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
3.15. DEFERRED INCOME TAX
Selected accounting policies
Deferred tax is calculated using the liability method as tax payable or reimbursable in the future in respect of differences
between carrying amounts of assets and liabilities and the corresponding tax amounts.
The deferred tax liabilities are recorded in the full amount and are not subject to discounting.
Deferred tax assets are recognised to the extent that it is probable that future taxable income will be available against which
the temporary differences could be utilised. Deferred tax assets are reviewed at the balance sheet date; if expected future
tax gains or positive temporary differences are insufficient to realise an asset in whole or in part, it is written off.
The Group uses no deferred tax assets or liabilities for the differences between the taxable and accounting investment in
subsidiaries, associates and joint ventures when the Group cannot control the date of reversal of temporary differences
(for deferred tax liabilities) and such differences are unlikely to reverse in the foreseeable future.
Deferred tax assets and liabilities can be offset when the Exchange has an enforceable right to offset current income tax
receivables and liabilities and when the deferred tax assets and liabilities relate to income tax imposed on the same taxpayer
by the same tax authorities.
(Asset)/
Liability
Deferred tax
asset
Deferred tax
liability
Difference between ac counting and
tax value of property, plant and
equipment and intangible as sets
11,869 (1 ,7 7 8 ) - 10,091 - 10 ,0 91
Impairment los s on inves tment in
other entities
(1,227) - (1) (1,228) 1 ,22 8 -
Employee benefits (3,207) (1 ,25 6 ) (9) (4,472) 4 ,47 2 -
C os t es timates (699) (1 8 1 ) - (880) 8 8 0 -
Deferred income (1,104) (9 6 ) - (1,200) 1,2 0 0 -
Impairment los s on trade
rec eivables
(963) (2 2 9 ) - (1,192) 1,1 9 2 -
Interes t and cos ts of bond iss ue (257) 7 2 - (185) 29 5 1 0 9
O ther 509 (7 73 ) - (263) 6 2 9 3 6 6
Total def erred tax (asset)/liability 4,922 (4,241) (10) 671 9,896 10,566
Offs et (8,454) (8,454)
Total def erred tax (asset)/liability
(net)
1,442 2,113
Def erred tax (asset)/liability
(Credited)/
Debited in
profit
(Credited)/
Debited in
other
comprehensive
income
As at 31 December 2020
As at
1 January
2020
51
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN'000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
(Asset)/
Liability
Deferred tax
asset
Deferred tax
liability
Difference between ac counting and
tax value of property, plant and
equipment and intangible as sets
12,326 (4 5 7 ) - 11,869 - 1 1 ,86 9
Impairment los s on investment in
other entities
(1,323) 1 01 (5) (1,227) 1 ,22 7 -
Employee benefits (2,674) (5 1 3 ) (2 0 ) (3,207) 3 ,2 0 7 -
C os t es timates (411) (2 8 4 ) (4 ) (699) 6 9 9 -
Deferred income (1,065) (3 9 ) - (1,104) 1 ,1 04 -
Impairment los s on trade
rec eivables
(728) (2 3 5 ) - (963) 9 6 3 -
Interes t and cos ts of bond iss ue (184) (7 3 ) - (257) 4 40 1 8 3
O ther 443 6 6 - 509 9 6 6 0 5
Total def erred tax (asset)/liability 6,385 (1,434) (29) 4,922 7,736 12,657
Offs et (7,273) (7,273)
Total def erred tax (asset)/liability
(net)
464 5,386
(Credited)/
Debited in
profit
(Credited)/
Debited in
other
comprehensive
income
As at 31 December 2019
Def erred tax (asset)/liability
As at
1 January
2019
3.16. PROVISIONS FOR LIABILITIES AND OTHER CHARGES
Provisions for liabilities and other charges stood at PLN 26,844 thousand as at 31 December 2020 (including IRGiT’s VAT
provisions at PLN 26,844 thousand. Provisions for liabilities and other charges stood at PLN 15,563 thousand as at 31
December 2019 (including IRGiT’s VAT provisions at PLN 15,468 thousand) (see Note 6.10).
52
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN'000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
4. NOTES TO THE CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
4.1. SALES REVENUE
Selected accounting policies
Sales revenue is recognised at transaction price when (or as) the entity transfers control of services to a customer. All
bundled services that can be separated under the contract with the customer are recognised separately. Any discounts and
rebates of the transaction price are allocated to individual components of bundled services. Depending on whether certain
criteria are met, revenue is recognised:
over time, in a manner that depicts the entity’s performance; or
at a point in time, when control of the services is transferred to the customer.
The Group analyses potential collectability of debt when entering into a contract. If, at the time of entering into a contract,
the entity is not likely to receive the amount due for future performance of a commitment, no revenue is recognised until
the doubt about the collectability of debt is clarified.
Sales revenue consists of three main business lines: revenue from the financial market, revenue from the commodity market,
and other (sales) revenue.
Financial market:
Revenue from trading: revenue from exchange members charged under the Exchange Rules and the Alternative
Trading System Rules. The key revenue line in this category are trading fees which depend on the value of
transactions, the number of executed orders, the volume of trade and the type of traded instruments. In addition
to trading fees, flat-rate fees are charged for access to and use of the Exchange’s IT system, and BondSpot earns
revenue from trading in debt instruments.
Revenue from issuers charged under the Exchange Rules and the Alternative Trading System Rules: fees for
the listing of securities, fees for admission to trading, BondSpot’s revenue from issuers of debt instruments, as
well as other fees.
Revenue from information services: sale of real-time stock exchange data and statistical and historical data
in the form of subscriptions (by email), electronic publications, calculation of indices, as well as other stock
exchange index licenses and calculations. The sale of stock exchange information is based on separate agreements
signed with exchange data vendors, Exchange Members and other organisations including mainly financial
institutions. The Group’s revenue from information services includes revenue from the sale of BondSpot and GPW
Benchmark information services
Revenue from the commodity market includes mainly fees charged by TGE under the TGE Commodity Market Rules, by
IRGiT under the Exchange Clearing House Rules (mainly for the clearing of TGE trade), and by InfoEngine for its services as
a trade operator and a technical trade operator.
Commodity market:
Revenue from trading: fixed fees paid by TGE members for market participation and revenue from trading fees
on TGE markets: the Day-Ahead and Intra-Day Market, the Gas Market, the Property Rights Market, the
Commodity Forward Instruments Market, the Emission Allowances Market.
Revenue from the operation of the Register of Certificates of Origin and the Register of Guarantees of
Origin: fees for services provided to Register members including registration of certificates, issuance of rights,
increasing and decreasing the balance of rights, cancellation of certificates, registration of guarantees, notification
of transfers of guarantees to the end recipient, acceptance of offers to sell, processing of applications.
Revenue from clearing: IRGiT’s revenue from fixed fees paid by IRGiT members, fees for clearing and settlement
of exchange transactions on TGE markets.
Revenue from information services, i.e., commodity market data based on separate agreements signed with
exchange data vendors, exchange members and other organisations, mainly financial institutions
Other sales revenue includes among others lease and maintenance of office space, delivery of training.
Selected judgments and estimates
The Company grants rebates to Exchange Members under the Exchange’s Technology Development Support Programme. To
be eligible for rebates, Exchange Members must invest in additional technological capacity including among others IT system
53
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN'000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
and IT infrastructure upgrades or the development of new functionalities relating to brokerage services. Rebates are awarded
to Exchange Members by the Exchange Management Board on the basis of documentation of expenses up to an individual
limit set for the Exchange Member in the Programme.
As at 31 December 2020, the Exchange Management Board estimated that all Exchange Members participating in the
Programme will use up the entire awarded limit.
The table below presents sales revenue by business line.
2020 2019
255,996 184,990
185,272 117,455
151,042 87,449
15,376 10,611
7,488 8,834
10,150 10,061
1,216 500
19,307 19,629
16,916 17,458
2,391 2,171
51,417 47,906
48,121 44,049
3,296 3,857
Commodity market 144,331 149,940
72,305 75,167
1 8,9 4 5 1 6,3 3 9
Spot 4,083 4,021
Forward 14,862 12,318
1 2,6 5 8 1 2,1 3 7
Spot 2,634 2,329
Forward 10,024 9,808
2 7,1 8 5 3 4,1 9 3
27,185 34,193
1 3,5 1 7 1 2,4 9 8
24,326 27,815
46,756 46,270
944 688
Other revenue 3,449 1,151
403,776 336,081
Equities and other equity-related ins truments
Derivatives
Other fees paid by market participants
Debt ins truments
Other cas h ins truments
Listing
Year ended 31 December
Financial market
Trading
Trading
T ransac tions in electric ity:
T ransac tions in gas :
T ransac tions in property rights to certificates of origin
O ther fees paid by market participants
Operat ion of the register of certificates of origin
Lis ting fees
Fees for admis s ion and introduction and other fees
Informat ion services and revenue f rom the calculation of ref erence rates
Real-time data and revenue from the calculation of reference rates
His torical and s tatis tical data and indices
O ther fees paid by market participants
Clearing
Informat ion services
Total sales revenue
2020 % share 2019 % share
Revenue from foreign cus tomers 16 5 ,24 0 40 .9 % 99 ,93 5 2 9.7%
Revenue from loc al cus tomers 2 3 8 ,5 3 6 5 9.1% 2 36 ,1 46 70.3%
Total sales revenue 403,776 100.0% 336,081 100.0%
Year ended 31 December
54
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN'000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
4.2. OPERATING EXPENSES
Selected accounting policies
Expenses are a probable decrease of economic benefits in the reporting period, whose amount is reliably determined, that
reduces the value of assets or increases liabilities and provisions, which will reduce equity or increase negative equity, other
than due to withdrawal of funds by shareholders or owners.
Operating expenses include salaries and the cost of maintenance of the IT infrastructure of the trading system, as well as
the cost of advisory, capital market and commodity market education, promotion and information.
The Group records expenses by type.
2020 2019
Depreciation and amortisation, including: 3 6 ,3 29 36 ,91 8
capitalis ed depreciation and amortis ation charges (436) (168)
Salaries 4.2.1. 7 4 ,01 1 6 1 ,33 6
O ther employee cos ts 4.2.1. 2 1 ,61 0 1 6 ,49 5
M aintenance fees 4 ,3 3 4 3 ,9 7 0
Fees and charges , including: 1 5 ,52 8 8 ,4 20
fees paid to PFSA 6.4.1. 13,874 6,752
External service charges 4.2.2. 5 1 ,91 9 4 8 ,46 6
O ther operating expens es 4.2.3. 4,7 7 5 5 ,54 4
208,505 181,149
Note
Year ended 31 December
Total operating expenses
3.1, 3.2, 3.4.4.
4.2.1. SALARIES AND OTHER EMPLOYEE COSTS
Selected accounting policies
Liabilities in respect of current employee benefits (i.e., remuneration, social security charges, paid holidays, sick leaves,
etc.) are charged to costs in the period when benefits are paid.
Furthermore, the Group has an incentive scheme, according to which employees have the right to an annual bonus
(dependent on the sales profit and the implementation of bonus targets and the employee’s individual appraisal).
The Exchange sets up provisions for bonuses in order to assign costs to the periods to which they relate. Provisions are
estimated according to the best knowledge of the Exchange Management Board concerning probable bonuses to be paid
based on the framework of the incentive scheme.
The Group pays contributions to the Employee Pension Scheme (defined contributions scheme). Employees join the scheme
voluntarily. After payment of the contributions, the Group has no further obligations to make payments to the Employee
Pension Scheme. These contributions are charged to costs of employee benefits as they are incurred.
Under the applicable legislation, the Group is required to charge and pay contributions towards employees’ pension benefits.
Such benefits are a state scheme which is a defined contributions scheme. According to the Labour Code, employees have
the right to receive a severance pay upon reaching retirement age. Retirement severance pay is paid on a one-off basis
at the time of retirement. Paid retirement benefits are recognised as an expense of the period in which they are paid.
55
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN'000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
2020 2019
4 8,8 7 2 4 5 ,9 01
1 5,4 1 8 1 0 ,5 46
1 63 9 8
1 08 1 1 2
3 17 2 6 0
2 ,35 1 8 53
67,229 57,770
6,782 3,565
74,011 61,336
Year ended 31 December
Non-c ompetition
O ther (inc luding: unused holiday leave, overtime)
Total payroll
Supplementary payroll
Gros s remuneration
A nnual and dis c retionary bonus es
Retirement severanc e pay
Reorganis ation severance pay
Total employee costs
2020 2019
1 1 ,6 37 9,2 86
3 ,2 8 5 1 ,5 9 3
6 ,6 8 8 5 ,6 1 6
21,610 16,495
Year ended 31 December
Soc ial sec urity cos ts (ZUS)
Employee P ens ion P lan (P P E )
O ther benefits (including medic al services , lunch subsidies, sports , ins uranc e,
etc.)
Total other employee costs
Remuneration of the key management personnel is described in Note 6.5.
4.2.2. EXTERNAL SERVICE CHARGES
2020 2019
21,796 17,881
1,562 1,501
3,952 3,986
264 387
2 7 ,5 7 4 23 ,7 5 5
3 ,8 3 4 3 ,49 8
3 ,5 1 8 1 ,27 2
3 6 7 4 1 3
1 5 8 1 3 7
4 ,3 6 4 5 ,37 2
1 ,2 4 7 1 ,32 1
4 ,6 7 3 7 ,39 4
3 ,4 4 5 2 ,58 4
1 ,2 7 3 1 ,05 4
8 7 1 3 5
1 9 8 1 8 3
3 8 0 3 4 3
8 0 1 1 ,0 0 5
51,919 48,466
Year ended 31 December
T otal offic e space and offic e equipment maintenance
International (energy) market servic es
Lease, rental and maintenance of vehic les
I T infras tructure maintenance
TBSP market maintenance services
Data trans mis s ion lines
Software modification
T otal IT cost
M ail fees
Bank fees
T rans lation
O ther
Total external service charges
T rans portation servic es
P romotion, educ ation, market development
M arket liquidity support
A dvis ory (including legal, bus ines s consulting, audit)
Information servic es
T raining
56
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN'000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
4.3. OTHER INCOME
2020 2019
3 ,24 3 2 ,77 0
2 8 -
4 ,22 2 8 7
4 ,19 8 4 88
11,691 3,345
Year ended 31 December
* More information in the note 3.8.
Donations
Loss on sale of property, plant and equipment
Impairment of investments and abandoned inves tments
O ther
Total other expenses
4.4. OTHER EXPENSES
2020 2019
3,243 2,770
28 -
4,222 87
4,198 488
11,691 3,345
Year ended 31 December
* More information in the note 3.8.
Donations
Loss on sale of property, plant and equipment
Impairment of investments and abandoned investments
Other
Total other expenses
In 2020, the Group made donations to:
Fight with the coronavirus (donations to the Sanitary and Epidemiological Stations in Radom and Siedlce, hospitals
across Poland, the Public Care Centre in Siedlce) – PLN 1,683 thousand including PLN 680 thousand of the
Exchange’s profit on trade in Allegro shares on its IPO date (12 October 2020);
Polish National Foundation – PLN 1,500 thousand (recognised in expenses in 2016, see Note 3.13.),
GPW Foundation – PLN 1,350 thousand.
In 2019, the Group made donations to:
Polish National Foundation – PLN 1,500 thousand (recognised in expenses in 2016),
GPW Foundation – PLN 2,737 thousand;
World Association of Home Army Soldiers – PLN 20 thousand;
Stowarzyszenie Otwarte Drzwi – PLN 3 thousand;
Stowarzyszenie Hospicjum im. Św. Wawrzyńca – PLN 7 thousand;
Dziecięca Fantazja Foundation – PLN 3 thousand.
4.5. FINANCIAL INCOME
Selected accounting policies
Interest income is recognised on a time-proportionate basis using the effective interest rate (IRR) method. Dividend income
is recognised at the moment of establishing the shareholders’ right to receive the payment.
57
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN'000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
2020
2019
(res tated)
I ncome on financial as s ets pres ented as cas h and cas h equivalents 1,462 3,653
I ncome on financial as s ets pres ented as financial as s ets measured at
amortis ed cost
3.5.5. 2,485 5,162
I nteres t on s ubleas e receivables 3.4.6. 12 26
3,959 8,841
O ther financial inc ome 2,20 6 7 0
Tota financial income 6,166 8,911
Note
Year ended 31 December
Total Interest income under the ef fective interest rate method
Dividends received from associates are presented in detail in Note 6.4.2.
4.6. FINANCIAL EXPENSES
Selected accounting policies
Financial expenses include costs and interest of bonds in issue, interest on loans and advances, and interest on tax liabilities.
Interest on bonds is determined using the effective interest rate method.
2020
2019
(restated)
Interes t on bonds, inc luding: 3.10. 6,926 7,661
accrued (374) 386
paid 7,300 7,275
Interes t on leas e liabilities
3.4.5.
6 21 7 4 5
Interes t on tax payable, inc l.: 11 ,44 8 1 6 ,56 2
VAT correction 6.10. 11 ,3 7 6 15 ,46 8
5 83 1 ,0 8 9
1 ,59 2 5 81
Total financial expenses 21,170 26,638
Note
Year ended 31 December
O ther financial expenses
O ther financial expenses
Presentation has changed in these financial statements because impairment loss on investments in other entities was
presented under gains on investments /(losses) on impairment of investments in other entities in the statement of
comprehensive income and the statement of cash flows in 2019. For more information on the recognised loss on investment
in other entities, see Note 3.3.
4.7. INCOME TAX
Selected accounting policies
Current income tax is calculated on the basis of net taxable income of the GPW Group companies for a given financial year
determined in accordance with the binding tax regulations and using the tax rates provided in those regulations. Net taxable
income (loss) differs from accounting profit (loss) for the year due to:
costs which are not tax-deductible;
dividend income which is not taxable;
grants which are not taxable.
58
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN'000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
2020 2019
C urrent income tax 4 1 ,86 5 3 1 ,93 9
Deferred tax (4,2 41 ) (1 ,43 4 )
Total income tax 37,624 30,503
Year ended 31 December
As required by the Polish tax regulations, the corporate income tax rate applicable in 2020 and 2019 is 19%.
2020 2019
1 89 ,0 64 1 49 ,8 37
19% 19%
35,922 28,469
1,702 2,034
4 ,83 4 4 ,32 8
(1 2 9 ) -
Non-taxable share of (profit)/los s of entities measured by equity
method
(2 ,99 2 ) (2 ,14 0 )
Grants which are not taxable (5 33 ) (9 )
6 70 -
(1 4 8 ) (1 4 5 )
37,624 30,503
Year ended 31 December
A dditional taxable income
Goodwill impairment of a subsidiary
P rofit before income tax
Income tax rate
Income tax at the statutory tax rate
Tax eff ect of:
C os ts which are not tax-deductible
O ther adjustments
Total income tax
Tax Group (“TG”)
Selected accounting policies
The companies participating in TG are not treated individually but collectively as one corporate income taxpayer under the
Corporate Income Tax Act. Such taxpayer’s income is determined as the surplus of incomes of the companies participating
in TG over the sum of their losses.
While income taxes of the companies participating in TG are no longer paid individually, the companies are still required to
individually pay other taxes including VAT and local taxes.
On 25 November 2016, the Head of the First Mazovian Tax Office in Warsaw issued a decision registering TG for a period of
three tax years (from 1 December 2017 to 31 December 2019). The TG was comprised of the Exchange, TGE, BondSpot,
and GPWB.
On 24 December 2019, the Head of the First Mazovian Tax Office in Warsaw issued a decision extending TG for another tax
year, from 1 January to 31 December 2020. On 11 December 2020, the Head issued a decision extending TG for another
tax year, from 1 January to 31 December 2021.
As the Company Representing TG, the Exchange is responsible for the calculation and payment of corporate income tax
advances of TG pursuant to the Corporate Income Tax Act.
59
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN'000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
5. NOTE TO THE CONSOLIDATED STATEMENT OF CASH FLOWS
Selected accounting policies
The statement of cash flows is prepared using the indirect method.
Received interest and dividend are recognised under investment activities. Paid dividend and interest (on bonds) are
recognised under financing activities.
2020 2019
Depreciation of property, plant and equipment* 3.1. 14 ,09 1 1 6 ,21 0
A mortisation of intangible as sets ** 3.2. 1 6 ,80 5 1 5 ,76 7
Depreciation and amortis ation of right-to-us e ass ets 3.4.4. 5 ,4 3 5 5 ,10 9
Total depreciation and amortisation charges 36,331 37,086
Note
Year ended 31 December
* I n 2020 depreciation included depreciation charge capitalized to intangible as s ets at PLN 390 thous and, in 2019
at PLN 163 thous and.
** In 2020 amortization included amortization charge capitalized to intangible ass ets at PLN 46 thous and, in 2019 at PLN 5
thous and.
2020 2019
Impairment of goodwill (BondSpot) 3 ,52 4 -
4 ,22 2 -
(Gains )/los s es on FX differences (valuation of ac counts and
deposits)
(5 4 4 ) 3 0 0
Impairment of investment in P A R 58 3 1,0 8 9
Impairment of loans made to PA R 5 0 0 -
Subleas e interes t (income) (1 2 ) (2 6 )
Leas e interes t expens e 6 21 7 4 5
Financial expense on the bond iss ue 38 9 3 9 0
O ther (3 ,83 0 ) (4,4 9 3 )
Total other adjustments 5,454 (1,995)
*See Note 3.8.
Year ended 31 December
Impairment of other financial ass ets (O ptiq)
60
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN'000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
6. OTHER NOTES
6.1. FINANCIAL INSTRUMENTS
Interest
received/paid
Interest
accrued,
revaluation
and cost of
bond issue
Impairment
loss
Total shown
in net profit
Total shown
in other
comprehensiv
e income
Total shown
in the
statement of
comprehensiv
e income
T rade receivables (gros s) - - (9 50 ) (950) - (950)
Equity instruments - - (8 76 ) (876) (4 ) (880)
C orporate bonds 1 ,42 8 (45 7 ) - 971 - 971
Bank depos its 3 ,82 6 (1 ,1 2 9) - 2,697 - 2,697
Udzielone pożyc zki - - (5 0 7) (507) - (507)
C urrent bank ac c ounts 1 ,5 13 - - 1,513 - 1,513
Total financial instruments (assets) 6,767 (1,586) (2,333) 2,848 (4) 2,844
Bonds in iss ue (7 ,3 0 0) 3 74 - (6,926) - (6,926)
Total financial instruments (liabilities) (7,300) 374 - (6,926) - (6,926)
Total recognised in the statement of
comprehensive income
(533) (1,212) (2,333) (4,078) (4) (4,082)
Year ended 31 December 2020
The impairment of equity instruments at PLN 0.9 million in 2020 included impairment of shares (presented as
at 30 September 2020 as financial assets measured at fair value through profit or loss) received by the
Exchange in exchange for debt.
Interest
received/paid
Interest
accrued,
revaluation
and cost of
bond issue
Impairment
loss
Total shown
in net profit
Total shown
in other
comprehensiv
e income
Total shown
in the
statement of
comprehensiv
e income
T rade receivables (gros s) - - (1 ,9 0 1) (1,901) - (1,901)
Equity instruments - - - - 1 5 15
C orporate bonds 7 19 2 3 8 - 957 - 957
C ertificates of depos it 3 33 (1 5 8 ) - 175 - 175
Bank depos its 7 ,08 8 (13 0 ) - 6,958 - 6,958
C urrent bank ac c ounts 7 24 - - 724 - 724
Total financial instruments (assets) 8,864 (50) (1,901) 6,913 15 6,928
Bonds in iss ue (7 ,27 5 ) (38 6 ) - (7,661) - (7,661)
Total financial instruments (liabilities) (7,275) (386) - (7,661) - (7,661)
Total recognised in the statement of
comprehensive income
1,589 (436) (1,901) (748) 15 (733)
Year ended 31 December 2019
61
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN'000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
6.2. SEGMENT REPORTING
Selected accounting policies
Segment information is disclosed based on components of the entity which are monitored by the Group’s chief decision
maker (Exchange Management Board) to make operating decisions. Operating segments are based on categories of services
with common characteristics for which discrete financial information is available and which are reviewed regularly by the
chief operating decision maker to make decisions about resources to be allocated to the segment and assess the Group’s
performance. The presentation of financial data by operating segment is consistent with the management approach at Group
level.
For management purposes, the Group is divided into segments based on the type of services provided. The two main
reporting segments are the financial segment and the commodity segment.
The financial segment covers the activity of the Group including organising trade in financial instruments on
the exchange, related activities, organising an alternative trading system, as well as capital market education,
promotion and information activities.
The financial segment includes three subsegments:
trading (mainly revenue from trading fees which depends on turnover on the exchange, fees for access to and
use of exchange systems);
listing (revenue from annual securities listing fees and one-off fees, e.g., for introduction of securities to trading
on the exchange);
information services (mainly revenue from information services for data vendors, historical data, calculation
and distribution of WIBOR and WIBID reference rates).
The commodity segment covers the activity of the Group including organising trade in commodities as well as related
activities, e.g., operation of a clearing house and a settlement system, activity of a trade operator and the entity responsible
for trade balancing.
The commodity segment includes the following sub-segments:
trading (mainly revenue on the Energy Market from spot and forward transactions in electricity, revenue from
spot and forward transactions in natural gas, revenue on the Property Rights Market from trade in certificates
of origin of electricity);
operation of the Register of Certificates of Origin of electricity (mainly revenue from issuance and cancellation
of property rights in certificates of origin of electricity);
CO
2
Allowances Market (trade in certificates of origin of electricity);
clearing (revenue from other fees paid by market participants (members));
information services.
The accounting policies for the operating segments are the same as the accounting policies of the GPW Group.
The Exchange Management Board monitors separately the operating results of the segments to make decisions about
resources to be allocated and assess the results of their allocation and performance. Each segment is assessed up to the
level of net profit or loss.
Transaction prices of transactions between the operating segments are set at arm’s length, as for transactions with non-
related parties.
The Group’s business segments focus their activities on the territory of Poland.
Revenue from no third-party client of the Group accounted for more than 10% of total revenue of the Group in 2020.
The tables below present a reconciliation of the data analysed by the Exchange Management Board with the data shown in
these consolidated financial statements.
62
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN'000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
Financial
segment
Commodity
segment
Other
Total
segments
Exclusions
and
adjustments
Total
segments
and
exclusions
Sales revenue: 26 1,324 1 4 4,990 1 5 ,2 0 9 421,523 (17 ,74 7 ) 403,776
To third parties 255,996 144,331 3,449 403,776 - 403,776
Between segments 5,328 659 11,760 17,747 (17,747) -
O perating expenses , inc luding: (15 2 ,584) (7 2,0 30 ) (1,427) (226,041) 1 7 ,5 3 6 (208,505)
depreciation and amortis ation 25,957 11,599 141 37,697 - 37,697
Profit/(loss) on sales 108,740 72,960 13,782 195,482 (211) 195,271
Loss on impairment of receivables 1 1 8 (1,0 68 ) - (950) - (950)
O ther inc ome 1 ,4 4 4 4 ,33 7 - 5,781 (9 1) 5,690
O ther expenses (8 ,02 9) (1 3 9 ) - (8,168) (3 ,5 2 3 ) (11,691)
Operating profit (loss) 102,273 76,090 13,782 192,145 (3,825) 188,320
Financ ial inc ome, including: 85 ,89 9 1 1 ,4 2 9 4 97,332 (9 1 ,1 6 6 ) 6,166
interes t income 2,773 1,467 4 4,244 (285) 3,959
dividend income 80,766 9,959 - 90,725 (90,725) -
Financ ial expens es, including: (9 ,6 3 3 ) (1 2 ,5 0 6 ) (48) (22,187) 1 ,01 7 (21,170)
interes t cos t (7 ,6 1 6 ) (4 8 4 ) (46) (8,146) 527 (7,619)
VAT correction - (11 ,37 6 ) - (11,376) - (11,376)
Share of profit/(los s) of entities
meas ured by equity method
- - - - 1 5 ,74 8 15,748
Profit before income tax 178,539 75,013 13,738 267,290 (78,226) 189,064
Income tax (2 2,9 37 ) (1 4 ,6 9 5 ) 8 (37,624) - (37,624)
Net profit 155,602 60,318 13,746 229,666 (78,226) 151,440
Period ended 31 December 2020
Financial
segment
Commodity
segment
Other
Total
segments
Adjustments for
investments
measured by
equity method
Other
exclusions
and
adjustments
Total
segments and
exclusions
T otal as sets 1,077 ,3 59 2 3 1 ,5 85 3 ,937 1,312,881 2 08 ,7 4 3 (159 ,44 1) 1,362,183
T otal liabilities 38 6,6 5 2 7 4 ,00 8 69 5 461,355 - (2 3 ,34 1 ) 438,014
Net assets
(assets - liabilities)
690,707 157,577 3,242 851,526 208,743 (136,100) 924,169
As at 31 December 2020
63
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN'000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
Financial
segment
Commodity
segment
Other
Total
segments
Exclusions
and
adjustments
Total
segments
and
exclusions
Sales revenue: 1 88 ,01 5 15 0 ,421 1 1 ,7 9 3 350,229 (1 4 ,1 4 8) 336,081
To third parties 184,990 149,940 1,151 336,081 - 336,081
Between s egments 3,025 481 10,642 14,147 (14,147) -
O perating expenses , inc luding: (13 3,870 ) (6 1,3 92 ) - (195,262) 1 4 ,1 1 3 (181,149)
depreciation and amortis ation 25,421 12,950 - 38,371 (1,453) 36,918
Profit/(loss) on sales 54,145 89,029 11,793 154,967 (35) 154,932
Loss on impairment of receivables (75 6 ) (1,1 45 ) - (1,901) - (1,901)
O ther income 1 ,6 9 1 4 ,95 5 - 6,646 (3 0 ) 6,616
O ther expenses (3 ,35 1) (39 ) - (3,390) 4 5 (3,345)
Operating profit (loss) 51,729 92,800 11,793 156,322 (20) 156,302
Financial income, including: 7 6 ,5 30 3 1 ,8 4 6 - 108,376 (99 ,46 5) 8,911
interest income 5,511 3,625 - 9,136 (295) 8,841
dividend income 70,951 28,218 - 99,169 (99,169) -
Financial expenses , including: (1 1 ,0 1 7 ) (17 ,15 1 ) - (28,168) 1 ,53 0 (26,638)
interest cos t (8,460) (1,458) - (9,918) 418 (9,500)
VAT correction - (15,468) - (15,468) - (15,468)
Share of profit/(los s ) of entities
measured by equity method
- - - - 1 1,2 62 11,262
Profit bef ore income tax 117,241 107,495 11,793 236,530 (86,692) 149,837
Income tax (1 2 ,0 69 ) (1 8 ,43 4 ) - (30,503) - (30,503)
Net profit 105,173 89,061 11,793 206,027 (86,692) 119,334
Period ended 31 December 2019
(restated)
Financial
segment
Commodity
segment
Other
Total
segments
Adjustments for
investments
measured by
equity method
Other
exclusions
and
adjustments
Total
segments and
exclusions
T otal as sets 1,020 ,346 1 88 ,19 3 2 3 1,208,562 1 98 ,67 5 (150 ,420) 1,256,817
T otal liabilities 3 6 9 ,95 7 34 ,97 1 2 3 404,951 - (2 1 ,62 0) 383,331
Net assets
(assets - liabilities)
650,389 153,222 - 803,611 198,675 (128,800) 873,485
As at 31 December 2019
res tated
64
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN'000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
6.3. GRANTS
Selected accounting policies
Government grants are assistance by government in the form of transfers of resources to an entity in return for past or
future compliance with certain conditions relating to the operating activities of the entity. Government refers to government,
government agencies and similar bodies whether local, national or international.
A government grant is recognised when there is reasonable assurance that the Group will comply with any conditions
attached to the grant and the grant will be received.
Grants related to assets are government grants whose primary condition is that an entity qualifying for them should
purchase, construct or otherwise acquire long-term assets. They are presented in the statement of financial position as
deferred income and recognised in financial results (other income) systematically over the useful lifetime of the assets
concerned by the grant.
Grants relating to income are grants other than grants relating to assets and they are recognised in other income
systematically over the periods when the expenses covered by the grant are recognised.
Prepayments in respect of grants relating to assets are presented in Note 3.12, income in respect of grants is presented in
Note 4.3, and contingent liabilities and grant liabilities in respect of grants are presented in 6.9.2.
New Trading System
The New Trading System is a development project of a new trading platform which will in the future help to reduce transaction
costs and offer new functionalities and types of orders for Exchange Members, issuers and investors. The system will provide
superior reliability and security according to top technical parameters.
GPW Data
The GPW Data project is an innovative Artificial Intelligence system supporting investment decisions of capital market
participants. The core of the system is a repository of a broad range of structured exchange data. Such information will
support investments on the capital market based on classical and innovative analysis models.
Price Coupling of Regions (“PCR”)
PCR ensures co-ownership of system software of the day-ahead market by a group of European energy exchanges joined by
THE in 2015. The project was aimed at harmonisation of the European market using a shared calculation algorithm.
In 2016, in the implementation of international projects (aiming among others to implement European regulations applicable
to cross-border energy exchange), the President of the Energy Regulation Authority (URE) granted TGE a refund of part of
the PCR cost from the Polish power transmission system operator Polskie Sieci Energetyczne S.A. under a bilateral agreement
ensuring the implementation of a day-ahead electricity market in Poland.
Agricultural Market
A consortium comprised of GPW, TGE and IRGiT signed an agreement with Krajowy Ośrodek Wsparcia Rolnictwa (National
Centre for Agricultural Support, KOWR) on 29 January 2019 concerning the Agricultural Market project which will launch an
electronic trading platform for certain agricultural commodities. The project closed on 31 August 2020 according to plan.
Since 1 September 2020, the platform is operated by TGE and IRGiT (without the participation of the Exchange). As the
consortium leader and the parent entity of the GPW Group, the Exchange represented the consortium in relations with KOWR,
handled financials and provided marketing support, and received a fee from the other consortium members which covered
its expenses. The following steps were completed under the agreement during the project: preparation of the project’s
feasibility study; drafting of rules, procedures, document templates for the project pilot; pilot of the proposed food platform
solution. The project was implemented according to the timeline defined in the agreement with KOWR.
From the perspective of the consolidated financial statements of the GPW Group, the Agricultural Market project is a grant
of PLN 5.1 million whose direct beneficiaries are TGE and IRGiT.
From the perspective of the separate financial statements of the Exchange, the Agricultural Market project is not a grant;
instead, the Exchange provides project management services to TGE and IRGiT.
GPW Private Market
On 23 September 2020, acting as the leader of a consortium comprised of the Silesian University of Technology and
VRTechnology sp. z o.o., GPW signed a co-financing agreement with the National Centre for Research and Development for
the project “Development of an innovative blockchain platform”.
The objective of the project is to develop a platform for the issuance of tokens representing digital rights (digital assets).
The platform will also support trade in such assets.
65
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN'000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
6.4. RELATED PARTY TRANSACTIONS
Selected accounting policies
Related parties of the Group include:
the associates and joint ventures,
the State Treasury as the parent entity,
entities controlled and jointly controlled by the State Treasury and entities over which the State Treasury has
significant influence,
members of the key management personnel of the Exchange.
6.4.1. INFORMATION ABOUT TRANSACTIONS WITH THE STATE TREASURY AND ENTITIES WHICH ARE RELATED PARTIES OF THE
STATE TREASURY
Companies with a stake held by the State Treasury
The Group keeps no records which would clearly identify and aggregate transactions with all entities which are related parties
of the State Treasury.
Companies with a stake held by the State Treasury which are parties to transactions with the Group include issuers (from
which it charges introduction and listing fees) and Exchange Members (from which it charges fees for access to trade on the
exchange market, fees for access to the IT systems, and fees for trade in financial instruments).
Companies with a stake held by the State Treasury, with which TGE and IRGiT enter into transactions, include members of
the markets operated by TGE and members of the Clearing House. Fees are charged from such entities for participation and
for trade on the markets operated by TGE, for issuance and cancellation of property rights in certificates of origin, and for
clearing.
All trade transactions with entities with a stake held by the State Treasury are concluded by the Group in the normal course
of business and are carried out on an arm’s length basis.
Polish Financial Supervision Authority (“PFSA”)
The PFSA Chairperson publishes the rates and the indicators necessary to calculate capital market supervision fees by 31
August of each calendar year. On that basis, the entities obliged to pay the fee calculate the final amount of the annual fee
due for the year and pay the fee by 30 September of the calendar year. The Regulation of the Minister of Finance of 17
September 2020 amending the regulation concerning other deadlines of certain reporting and disclosure obligations
postponed the due date of the 2020 fee to 30 November 2020.
Fees paid by the Group to PFSA stood at PLN 13,874 thousand in 2020 and PLN 6,752 thousand in 2019.
Tax Office
The Group is subject to taxation under Polish law and pays taxes to the State Treasury, which is a related party. The rules
and regulations applicable to the Group are the same as those applicable to other entities which are not related parties of
the State Treasury.
Details concerning income tax are presented in Note 4.7.
Polish National Foundation
Payments and transactions with PFN are described in Notes 3.13 and 4.4.
66
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN'000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
6.4.2. TRANSACTIONS WITH ENTITIES MEASURED BY THE EQUITY METHOD
As owner and lessee of space in the Centrum Giełdowe building, the Exchange pays rent and maintenance charges for office
space, including joint property, to the building manager, Centrum Giełdowe S.A. Transactions with the KDPW Group included
fees for dividend payment services and joint organisation of integration events for the capital market community.
Transactions with PAR included office space lease and related fees.
Receivables Liabilities
Sales revenue or
sublease interest
Operating expenses
KDPW Group: 3 - 22 60
other 3 - 22 60
Centrum Giełdowe: - 6,185 - 5,543
leas es - 6,117 - 2,148
other - 68 - 3,395
PAR: 93 - 33 -
leas es 88 - 6 -
other 5 - 27 -
Total
96 6,185 55 5,603
As at 31 December 2020
Year ended 31 December 2020
Receivables Liabilities
Sales revenue or
sublease interest
Operating expenses
KDPW Group: 44 1 117 67
other 44 1 117 67
Centrum Giełdowe: - 7,806 - 3,496
leas es - 7,516 - 2,254
other - 290 - 1,242
PAR: 456 75 318 -
leas es 456 - 197 -
other - 75 121 -
Total
500 7,882 435 3,563
As at 31 December 2019
Year ended 31 December 2019
Other receivables from associates and joint ventures were not written off as uncollectible or provided for in the year ended
31 December 2020 and 31 December 2019 except for receivables in respect of a loan granted to PAR (see a description
below in this Note).
Dividend from associates
On 18 June 2020, the Annual General Meeting of CG decided to allocate a part of the 2019 profit equal to PLN 2,067 thousand
to a dividend payment. The dividend attributable and paid to the Exchange on 30 June 2020 was PLN 512 thousand. In 2019,
CG paid dividend for 2018 at PLN 1,779 thousand, including dividend attributable and paid to the Exchange at PLN 441
thousand.
On 29 June 2020, the Annual General Meeting of KDPW decided to allocate a part of the 2019 profit equal to PLN 15,561
thousand to a dividend payment. The dividend attributable and paid to the Exchange on 10 August 2020 was PLN 5,187
thousand. In 2019, KDPW paid dividend for 2018 at PLN 19,697 thousand, including dividend attributable and paid to the
Exchange at PLN 6,566 thousand.
Loans and advances
In February 2020, the Exchange and Polski Fundusz Rozwoju S.A. signed a PLN 400 thousand loan agreement with PAR to
finance the borrower’s short-term liquidity gap. The amount of the loan was advanced in equal parts i.e. PLN 200 thousand
by each of the lenders. Under the agreement, PAR was required to pay the entire loan back to the lenders plus interest at
3.4% per annum on or before 30 June 2021.
In September 2020, the Exchange and PAR signed another PLN 600 thousand loan agreement to finance the borrower’s
short-term debt. The first loan tranche of PLN 300 thousand was paid on 28 September 2020. The second tranche of the
loan at PLN 300 thousand was paid to PAR on 1 March 2021 (see Note 6.13). The loan bears interest at 1.8% p.a. and will
be repaid to the Exchange in a single payment on or before 30 June 2022.
67
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN'000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
As at 31 December 2020, the Group wrote off the loans granted to PAR by the Exchange together with interest at PLN 507
thousand. As a result, the total balance of loans granted by the Exchange to PAR was PLN 0 as at 31 December 2020.
6.4.3. OTHER TRANSACTIONS
Transactions with the key management personnel
The Group entered into no transactions with the key management personnel in 2020 and in 2019.
Książęca 4 Street Tenants Association
In 2020, the Exchange concluded transactions with the Książęca 4 Street Tenants Association of which it is a member. The
expenses amounted to PLN 4,160 thousand in 2020 and PLN 3,821 thousand in 2019. Moreover, when the Tenants
Association generates a surplus during a year, it is credited towards current maintenance fees, and where there is a shortage,
the Exchange is obliged to contribute an additional payment. The surplus payment amounted to PLN 13 thousand in 2020
and PLN 183 thousand in 2019.
GPW Foundation
In 2020, GPW donated PLN 1,179 thousand (in 2019 – PLN 2,737 thousand) to the GPW Foundation, received an income of
PLN 127 thousand (in 2019 – PLN 125 thousand) from the Foundation, and paid the Foundation’s costs of PLN 1 thousand
(in 2019 – PLN 3 thousand). As at 31 December 2020, the Exchange’s receivables from the GPW Foundation stood at PLN
62 thousand and its payables to the Foundation at PLN 143 thousand (as at 31 December 2019 – PLN 95 thousand and PLN
595 thousand, respectively).
Polish National Foundation
Payments and transactions with PFN are described in Notes 3.14 and 4.4.
6.5. INFORMATION ON REMUNERATION AND BENEFITS OF THE KEY MANAGEMENT PERSONNEL
Selected accounting policies
The key management personnel of the Group includes the Exchange Management Board and the Exchange Supervisory
Board as well as the Management Boards and the Supervisory Boards of the subsidiaries.
The remuneration of the Management Boards is subject to the limitations and requirements of the Act of 9 June 2016 on the
terms of determining remuneration of managers of certain companies. According to the law, the remuneration of the
Company’s management includes:
a fixed monthly base salary determined depending on the scale of the Company’s business, and
a variable part which is supplementary remuneration for the financial year depending on the performance of
management targets.
Depending on its appraisal of the performance of individual targets and the results of the Company, the Exchange Supervisory
Board and the Supervisory Boards of the subsidiaries may award a bonus to Management Board members in the amount not
greater than 100% of the base salary of the Management Board member in the previous financial year.
The table concerning remuneration of the key management personnel does not present social security contributions paid by
the employer.
The data presented in the table below are for all (current and former) members of the Exchange Management Board and the
Exchange Supervisory Board, the Management Boards and the Supervisory Boards of the subsidiaries who were in office in
2020 and 2019, respectively.
68
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN'000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
2020 2019
1,728 2,002
1,780 1,694
14 4
352 136
185 -
4,059 3,836
550 525
3,904 2,812
1,004 880
7,963 8,053
Year ended 31 December
Base salary
Variable pay
Bonus
Other benefits
Benefits after termination
Total remuneration of the Exchange Management Board
Remuneration of the Management Boards of other GPW Group companies
Total remuneration of the key management personnel
Remuneration of the Exchange Supervisory Board
Remuneration of the Supervisory Boards of other GPW Group companies
As at 31 December 2020, not pai) bonuses and variable remuneration of the key management personnel stood at PLN 3,292
thousand including bonuses for 2016-2020. The cost was shown in the consolidated statement of comprehensive income for
2016-2020.
As at 31 December 2019, not paid bonuses and variable remuneration of the key management personnel stood at PLN 5,357
thousand including bonuses for 2016-2019. The cost was shown in the consolidated statement of comprehensive income for
2016-2019.
6.6. CONTRACTED INVESTMENTS
2020 2019
C ontracted investments in property, plant and equipment 16 9 1 1 5
C ontracted investments in intangible as sets 9 1 2 1 ,2 8 7
Total contracted investments 1,082 1,402
As at 31 December
Contracted investments in plant, property and equipment included investments in IT hardware as at 31 December 2020 and
as at 31 December 2019.
Contracted investments in intangible assets included mainly the GRC system, the new Indexator and Microsoft Office licences
as at 31 December 2020 and the GRC system, server time synchronisation software, the Indexator, as well as the EPIA and
XBID platforms in TGE and the Agricultural Market as at 31 December 2019.
As at 31 December 2020, GPWT had contracted investments in connection with the planned acquisition of minority interest
in a foreign fintech at PLN 0.7 million.
6.7. IRGIT CLEARING GUARANTEE SYSTEM
The clearing guarantee system operated by IRGiT includes:
Transaction deposits which cover cash settlement,
Margins which cover positions in forward instruments,
Guarantee funds which guarantee the clearing of transactions concluded on forward markets in the event of a
shortage of transaction deposits and margins posted by a member,
Margin monitoring system which compares the amount of liabilities of an IRGiT clearing member under exchange
transactions and margins with the amount of posted transaction deposits and margins.
69
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN'000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
Selected judgments and estimates
The Group performs a judgment concerning IRGiT’s role in the clearing of transactions on the commodity forward instruments
market. According to the estimates of the Exchange Management Board, both the entire risk and all benefits related to the
holding of cash contributed to the clearing guarantee system remain with the Clearing House Members. Hence, cash in the
IRGiT clearing guarantee system is not recognised under cash assets of the Group.
Cash in IRGiT bank
accounts
Cash in clients' bank
accounts
Cash in IRGiT bank
accounts
Cash in clients' bank
accounts
Depos its 790 ,2 94 479 ,631 79 5,995 569,957
Margins 1,151,543 317 ,505 90 3,615 419,686
Guarantee funds 210 ,85 4 45 ,46 1 50 0,960 30,766
Total
2,152,691 842,597 2,200,570 1,020,409
As at 31 December 2019
As at 31 December 2020
2020 2019
Non-monetary collateral clas sified as margins 1,279 ,46 5 4,196,838
As at 31 December
6.8. GUARANTEES
As at 31 December 2020, the Group had a bank guarantee issued by a bank in favour of NordPool in relation to Market
Coupling payments between TGE and NordPool at EUR 7.1 million commencing on 1 July 2020 and valid until 15 July 2021.
As at 31 December 2019, the Group had the following bank guarantees issued to NordPool by a bank in respect of payments
between TGE and NordPool in Market Coupling:
EUR 2.7 million commencing on 1 December 2019 and valid until 30 April 2020,
EUR 2.1 million commencing on 17 December 2019 and valid until 2 January 2020,
EUR 1.7 million commencing on 1 December 2019 and valid until 30 April 2020,
EUR 0.3 million commencing on 27 November 2019 and valid until 30 June 2020.
6.9. CONTINGENT ASSETS AND LIABILITIES
6.9.1. CONTINGENT ASSETS
In September 2019, TGE submitted corrections of CIT receipts and payments for 2012-2016 and paid the resulting amounts
due together with interest (see Note 6.10).
The correction concerned among others the conversion of TGE’s debt due from IRGiT into IRGiT’s share capital in an amount
of PLN 10 million in 2013. Given the inconsistent approach of tax authorities to the tax recognition of the transaction, TGE
took measures to recover the paid tax of PLN 1.9 million.
Due to uncertainty about recovery of that amount, the Group recognised a contingent asset of PLN 2.6 million (including PLN
1.9 million principal and PLN 0.7 million interest) as at 31 December 2020 and a contingent asset at PLN 1.9 million as at
31 December 2019.
As it is uncertain whether the amount can be recovered, the Group recognised a contingent asset of PLN 2.6 million as at
31 December 2020 (including PLN 1.9 million principal and PLN 0.7 million interest).
On 19 October 2020, the Director of the Tax Chamber issued a decision refusing to recognise the requested overpayment of
PLN 2.6 million. TGE appealed against the decision to the Regional Administrative Court on 18 November 2020.
6.9.2. CONTINGENT LIABILITIES
In connection with the implementation of the projects New Trading System, GPW Data and GPW Private Market, the Exchange
presented three own blank bills of exchange to National Centre for Research and Development (NCBR) securing obligations
under the projects’ co-financing agreements. According to the agreements and the bill-of-exchange declarations, NCBR may
70
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN'000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
complete the bills of exchange with the amount of provided co-financing which may be subject to refunding, together with
interest accrued at the statutory rate of overdue taxes from the date of transfer of the amount to the Exchange’s account to
the day of repayment (separate for each project). NCBR may also complete the bills of exchange with the payment date and
insert a “no protest” clause. The bills of exchange may be completed upon the fulfilment of conditions laid down in the co-
financing agreement. Each of the bills of exchange shall be returned to the Exchange or destroyed after the project
sustainability period defined in the project co-financing agreement. As at 31 December 2019, the Group recognised a
contingent liability in respect of an overdue VAT correction. Acting in the interest of GPW shareholders, pursuant to para 92
of IAS 37 Provisions, Contingent Liabilities and Contingent Assets, the Group is not disclosing the estimated amount of the
potential payable (see: Note 6.10).
The Group had bank guarantees as at 31 December 2020 as described in Note 6.8.
6.10. UNCERTAINTY ABOUT VAT
In accordance with the GPW Group’s tax risk management policy, tax accounts of all Group companies including IRGiT have
been annually reviewed by an independent tax advisor since 2017. In addition, following one such review, with a view to
verification of tax risk identified in the review, the IRGiT Management Board requested independent advisors to provide an
analysis concerning the time of origination of input VAT from transactions in electricity and gas deliveries and the time of
origination of the right to deduct input VAT and to calculate potential impact on IRGiT’s tax payable of a potential amendment
of IRGiT’s tax policy which follows the general rules concerning the time of origination of tax liabilities regarding output VAT
and the direct application of Directive 112 to the extent of input VAT.
According to the provided opinions, IRGiT’s tax policy may be considered correct in the light of EU law, in particular to the
extent of input VAT, and considering the specificity of IRGiT’s business in relation to output VAT. However, under the literal
wording of applicable national tax law, such approach could be challenged by tax authorities.
On 9 October 2020, the Regional Administrative Court in Warsaw dismissed IRGiT’s appeal and upheld the individual
interpretation issued by the Director of the National Tax Information dated 12 November 2019 concerning the principles of
determining the time of origination of the right to deduct input VAT from invoices for electricity and gas. n 5 December 2020,
IRGiT filed for cassation with the Supreme Administrative Court in Warsaw.
To that extent, IRGiT developed a tax strategy with the support of third-party tax advisors.
Due to uncertainty concerning the amount of the aforementioned VAT payable, guided by the principles of prudence, in
accordance with IAS 37 Provisions, Contingent Liabilities and Contingent Assets, provisions were set up at PLN 15.5 million
as at 31 December 2019. After adjustment as at 31 December 2020 the provisions stood at PLN 26.8 million while the
estimated amount of interest on the tax payable equal to PLN 11.4 million was charged to the 2020 results (financial
expenses) compared to PLN 15.5 million charged in 2019. The provisions represent the best possible estimate of the potential
liability as at 31 December 2020 which would have to be paid upon an amendment of the existing methodology of determining
the time of origination of the tax liability and the deduction right.
Furthermore, there is a relatively low risk arising from the statute of limitation (five years) concerning the recognition of
output VAT reported in November 2015: once recognised, due to the application of the lex specialis concerning electricity
and gas deliveries, the tax would be deferred to December 2015 and consequently recognised for a second time without the
right to correct the accounts for November subject to the statute of limitation. According to regulations, if a liability arises
in December, it does not expire until 1 January of the sixth year. Tax liabilities arising from January to November expire on
1 January of the fifth consecutive year (as such liabilities are payable in the year when they originate).
According to tax opinions available to IRGiT, there is a relatively low risk that the competent authorities may decide that
IRGiT should report and pay the tax twice as a result of a potential correction because such interpretation of national law
would contravene the fundamental principles enshrined in the Constitution of Poland and higher-rank norms under UE law.
Acting in the interest of GPW shareholders, pursuant to point 92 of IAS 37 Provisions, Contingent Liabilities and Contingent
Assets, the Group is not disclosing the estimated amount of the potential payable.
6.11. CONSOLIDATION OF GPW VENTURES ASI S.A. AND GPW TECH S.A.
These consolidated financial statements are the first statements to fully consolidate two subsidiaries of the Exchange: GPW
Ventures ASI S.A. and GPW Tech S.A. The tables below present adjustments of balances in the consolidated statement of
comprehensive income as at 31 December 2019 due to the modification of the accounting policy whereby all subsidiaries are
fully consolidated irrespective of the criterion of significance.
71
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN'000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
Unadjusted Adjus tment Restated
Non-current assets, including: 590,114 (4,000) 586,114
Investment in non-consolidated s ubsidiaries 4 ,0 0 0 (4 ,00 0 ) -
Current assets, including: 666,680 4,023 670,703
T rade receivables and other rec eivables 45 ,2 3 2 1 1 4 5 ,24 3
O ther current as sets 4,3 8 2 2 2 4 ,40 4
C as h and cas h equivalents 28 1 ,28 4 3 ,9 9 0 2 8 5,2 7 4
TOTAL ASSETS 1,256,794 23 1,256,817
Equity 873,486 - 873,486
Non-current liabilities: 283,502 - 283,502
Current liabilities, including: 99,807 23 99,829
T rade payables 1 1,5 6 1 2 3 1 1 ,58 4
TOTAL EQUITY AND LIABILITIES 1,256,794 23 1,256,817
As at 31 December 2019
Unadjusted Adjus tment Restated
Total net cash flows from operating activities 191,087 (10) 191,077
Net prof it of the period 119,334 - 119,334
Adjustments, including: 113,720 (10) 113,710
O ther adjus tments* (1 ,97 3 ) (2 2 ) (1 ,9 9 5 )
C hange of as sets and liabilities , inc luding: 5 7,2 5 9 1 2 5 7 ,27 1
Trade receivables and other receivables (excluding dividend receivable) 24,099 (11) 24,088
Trade payables 2,986 23 3,009
Interest on tax payable (paid)/refunded (1,272) - (1,272)
Income tax (paid)/ref unded (40,695) - (40,695)
Total cash flows from investing activities: 44,448 4,000 48,448
In: 846,119 846,119
Out: (801,671) 4,000 (797,671)
Investment in a related party (4 ,0 0 0) 4 ,00 0 -
Total cash flows from financing activities: (142,675) - (142,675)
Net (decrease)/increase in cash and cash equivalents 92,860 3,990 96,850
I mpact of fx rates on cas h balance in currencies (300) - (300)
Cash and cash equivalents - opening balance 188,724 - 188,724
Cash and cash equivalents - closing balance 281,284 3,990 285,274
Year ended December 2019
*other adjustments include an impairment loss on the investment in PAR, previously presented in a dedicated line of the statement of cash flows (see Note
6.12)
6.12. CHANGES OF PRESENTATION IN THE STATEMENT OF COMPREHENSIVE INCOME AND THE STATEMENT OF CASH
FLOWS
Presentation has changed in these consolidated financial statements because gains/(losses) on investments in other entities
are presented in financial income and financial expenses, respectively. The change affects the consolidated statement of
comprehensive income and the consolidated statement of cash flows. In 2019, the amount of negative PLN 1,089 thousand
was moved from gains/(losses) on investments in other entities to financial expenses (see Note 4.6).
72
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN'000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
6.13. EVENTS AFTER THE BALANCE SHEET DATE
On 11 January 2021, the Exchange Management Board decided to reduce annual fees for the listing of shares of issuers
affected by the coronavirus pandemic. Eligible to apply for a reduction of the annual listing fee in 2021 were companies listed
on the GPW Main Market and NewConnect which met the following conditions:
decrease of income in January-September 2020 by more than 20% year on year;
market capitalisation below PLN 1 billion as at 31 December 2020;
timely publication of the Q3 2020 report;
submission of an application for the reduction of fees for the listing of shares in 2021, no later than 20 January
2021.
Annual listing fees for shares of companies whose income decreased by more than 20% but not more than 50% in January-
September 2020 were reduced by 50%. Listing fees charged to issuers whose income decreased by more 50% in January-
September 2020 were reduced by 90% in 2021.
The limited joint-stock company GPW Ventures Asset Management sp. z o.o. ASI S.K.A. was registered in the National Court
Register on 28 January 2021. GPW Ventures ASI S.A. is its only shareholder and GPW Ventures Asset Management Sp. z
o.o. is its only general partner. It is the first alternative investment fund (ASI) managed by GPW Ventures Asset Management
sp. z o.o. set up for the investor Krajowy Ośrodek Wspierania Rolnictwa (KOWR) with the Agricultural Technology investment
profile.
On 26 February 2021, the Exchange Management Board acting on request of the State Treasury passed a resolution
amending the GPW shareholder register by deleting Miejski Dom Maklerski S.A. and entering the State Treasury represented
by the Minister of State Assets as the holder of 7,000 series A registered shares.
On 1 March 2021, PAR signed an agreement concerning the monitoring service for a portfolio of companies based on credit
scorings, which fulfilled the condition of payment of the second tranche of the loan referred to in Note 6.4.2. The Exchange
paid the second tranche of the loan to PAR at PLN 300 thousand on 1 March 2020.
73
DATA FOR THE YEAR ENDED 31 DECEMBER 2020. ALL AMOUNTS IN PLN'000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
The consolidated financial statements are presented by the Management Board of the Warsaw Stock Exchange:
Marek Dietl – President of the Management Board ………………………………………
Piotr Borowski – Member of the Management Board ………………………………………
Dariusz Kułakowski – Member of the Management Board ………………………………………
Izabela Olszewska – Member of the Management Board ………………………………………
Signature of the person responsible for keeping books of account:
Małgorzata Gola-Radwan, Chief Accountant ………………………………………
Warsaw, 9 March 2021