CONSOLIDATED FINANCIAL STATEMENTS
OF THE GIEŁDA PAPIERÓW WARTOŚCIOWYCH
W WARSZAWIE S.A. GROUP
FOR THE YEAR ENDED 31 DECEMBER 2021
1
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. 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 .......................................................... 14
1.8.6. Segment reporting ................................................................................................................... 14
1.9. Impact of the SARS-CoV-2 pandemic ........................................................................................................... 14
1.10. Analysis of the impact of climate change on the activity of the GPW Group .............................................. 15
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 rate risk ................................................................................ 15
2.2.2. Foreign exchange risk ............................................................................................................... 17
2.2.3. Price risk ................................................................................................................................... 18
2.3. Credit risk ..................................................................................................................................................... 18
2.4. Liquidity risk ................................................................................................................................................. 19
2.5. Capital management .................................................................................................................................... 20
3. Notes to the consolidated statement 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-to-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. Equity ........................................................................................................................................................... 43
2
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
3.7.1. Share capital ............................................................................................................................. 43
3.7.2. Other reserves .......................................................................................................................... 44
3.7.3. Retained earnings .................................................................................................................... 44
3.7.4. Dividend ................................................................................................................................... 45
3.7.5. Earnings per share .................................................................................................................... 45
3.8. Bond issue liabilities ..................................................................................................................................... 45
3.9. Employee benefits payable .......................................................................................................................... 46
3.9.1. Retirement benefits ................................................................................................................. 47
3.9.2. Other employee benefits ......................................................................................................... 48
3.10. Accruals and deferred income ..................................................................................................................... 48
3.11. Other liabilities ............................................................................................................................................. 49
3.12. Trade payables ............................................................................................................................................. 50
3.13. Deferred income tax .................................................................................................................................... 50
3.14. 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 .......................................................................................................................................... 57
4.6. Financial expenses ....................................................................................................................................... 57
4.7. Income tax ................................................................................................................................................... 57
4.8. Phantom shares ........................................................................................................................................... 58
5. Note to the consolidated statement of cash flows .....................................................................................59
6. Other notes ...............................................................................................................................................60
6.1. Financial instruments ................................................................................................................................... 60
6.2. Segment reporting ....................................................................................................................................... 60
6.3. Grants .......................................................................................................................................................... 63
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 ................................................... 65
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 ................................................................................................................................ 69
6.11. Corrections of errors .................................................................................................................................... 70
6.11.1. Fees for introduction of shares to trading ............................................................................... 70
6.11.2. Right of perpetual usufruct of land .......................................................................................... 70
6.11.3. IRGiT clearing collateral ............................................................................................................ 70
6.11.4. Energy transactions on international markets (“international markets”) ............................... 70
6.12. Events after the balance sheet date ............................................................................................................ 73
3
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. 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
Note
As at
31 December
2020
(restated*)
Non-current assets, including:
592,110
Property, plant and equipment
3.1.
97,333
Right-to-use assets
3.4.4.
13,984
Intangible assets
3.2.
253,200
Investment in entities measured by the equity method
3.3.
220,395
Sublease receivables
3.4.6.
179
Deferred tax asset
3.13.
2,888
Financial assets measured at amortised cost through other comprehensive
income
3.5.3.
115
Prepayments
2,393
Other non-current assets
1,623
Current assets:
773,362
Inventories
11
Corporate income tax receivable
-
Trade receivables and other receivables
3.5.4.
55,229
Sublease receivables
3.4.6.
137
Contract assets
3.6.
1,696
Financial assets measured at amortised cost
3.5.5.
305,131
Other current assets
140
Cash and cash equivalents
3.5.6.
411,018
TOTAL ASSETS
1,365,472
* Data for the comparative period have been restated. See Note 6.11.
The attached Notes are an integral part of these Financial Statements.
4
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. 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)
Note
As at
31 December
2021
31 December
2020
(restated*)
1 January 2020
(restated*)
Equity:
967,857
918,131
866,620
Equity of shareholders of the parent entity:
967,211
917,512
866,015
Share capital
3.7.1.
63,865
63,865
63,865
Other reserves
3.7.2.
(5,557)
1,063
1,089
Retained earnings
3.7.3.
908,903
852,584
801,061
Non-controlling interests
646
619
605
Non-current liabilities:
44,206
288,947
291,653
Liabilities on bonds issue
3.8.
-
244,738
244,350
Employee benefits payable
3.9.
1,518
1,116
960
Lease liabilities
3.4.5.
4,170
9,493
14,334
Contract liabilities
3.6.
7,451
6,776
7,005
Accruals and deferred income
3.10.
20,551
12,461
6,389
Deferred tax liability
3.13.
239
2,113
5,386
Other liabilities
3.11.
10,277
12,250
13,229
Current liabilities:
398,625
158,394
101,903
Liabilities on bonds issue
3.8.
246,278
1,167
1,932
Trade payables
3.12.
13,704
15,117
11,584
Employee benefits payable
3.9.
31,106
23,750
17,175
Lease liabilities
3.4.5.
5,393
5,396
5,116
CIT payable
6,167
6,742
1,553
Contract liabilities
3.6.
5,567
7,586
6,489
Accruals and deferred income
3.10.
3,551
2,912
767
Provisions for other liabilities and other charges, including:
28,837
26,844
15,563
VAT provisions
6.10.
28,771
26,844
15,468
Other liabilities
3.11.
58,022
68,880
41,724
TOTAL EQUITY AND LIABILITIES
1,410,688
1,365,472
1,260,176
* Data for the comparative period have been restated. See Note 6.11.
The attached Notes are an integral part of these Financial Statements.
5
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. 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
Note
Year ended 31 December
2021
2020
(restated*)
Sales revenue
4.1.
407,571
403,959
Operating expenses
4.2.
(229,367)
(206,150)
Gains on reversed impairment of receivables/(loss) on impairment of receivables
1,746
(950)
Other income
4.3.
3,007
4,212
Other expenses
4.4.
(3,016)
(11,691)
Operating profit
179,941
189,380
Financial income, incl.:
4.5.
997
6,166
Interest income under the effective interest rate method
900
3,959
Financial expenses, incl.:
4.6.
(11,559)
(21,220)
financial cost of VAT risk
6.10.
(1,927)
(11,376)
Share of profit of entities measured by the equity method
3.3.
24,376
15,748
Profit before tax
193,755
190,074
Income tax
4.7.
(32,479)
(37,804)
Profit for the period
161,276
152,270
Gains/(Losses) on valuation of financial assets measured at fair value through other
comprehensive income, net
(6,883)
20
Total items that may be reclassified to profit or loss
(6,883)
20
Gains/(Losses) on valuation of financial assets measured at fair value through other
comprehensive income, net
5
(4)
Actuarial gains/(losses) on provisions for employee benefits after termination, net
258
(42)
Total items that will not be reclassified to profit or loss
263
(46)
Total other comprehensive income after tax
(6,620)
(26)
Total comprehensive income
154,656
152,244
Profit for the period attributable to shareholders of the parent entity
161,249
152,256
Profit for the period attributable to non-controlling interests
27
14
Total profit for the period
161,276
152,270
Comprehensive income attributable to shareholders of the parent entity
154,629
152,230
Comprehensive income attributable to non-controlling interests
27
14
Total comprehensive income
154,656
152,244
Basic / Diluted earnings per share (PLN)
3.84
3.63
* Data for the comparative period have been restated. See Note 6.11.
The attached Notes are an integral part of these Financial Statements.
6
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. 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
Note
Year ended 31 December
2021
2020
(restated*)
Total net cash flows from operating activities
53,089
231,375
Net profit of the period
161,276
152,270
Adjustments:
(71,599)
111,953
Income tax
4.7.
32,479
37,804
Depreciation and amortisation
4.2.
35,245
36,219
Impairment allowances
178
4,022
Share of profit of entities measured by equity method
(24,376)
(15,748)
(Gains) on financial assets measured at amortised cost
(611)
(2,484)
Interest on bonds
5,440
6,535
Other adjustments
5
(5,585)
1,480
Change of assets and liabilities:
(114,369)
44,125
Inventories
(5)
36
Trade receivables and other receivables
3.5.4.
(121,847)
(9,986)
Trade payables
3.12.
(1,413)
3,533
Contract assets
3.6.
(716)
719
Contract liabilities
3.6.
(1,344)
868
Prepayments
3.10.
(81)
(350)
Accruals and deferred income
3.10.
9,983
(442)
Employee benefits payable
3.9.
7,758
6,731
Other current liabilities (excluding contracted investments
and dividend payable)
3.11.
(7,362)
33,039
Provisions for liabilities and other charges
1,993
11,281
Other non-current liabilities
3.11.
(1,335)
(1,304)
Income tax (paid)/refunded
(36,588)
(32,848)
* Data for the comparative period have been restated. See Note 6.11.
The attached Notes are an integral part of these Financial Statements.
7
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. 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)
Note
Year ended 31 December
2021
2020
(restated*)
Total cash flows from investing activities:
(3,731)
4,918
In:
1,189,802
947,087
Sale of property, plant and equipment and intangible assets
4,486
103
Dividends received
7,063
5,699
Sale of financial assets measured at amortised cost
1,177,672
937,172
Interest on financial assets measured at amortised cost
444
3,970
Sublease payments (interest)
7
12
Sublease payments (principal)
130
131
Out:
(1,193,533)
(942,169)
Purchase of property, plant and equipment and advances for property,
plant and equipment
(12,091)
(13,413)
Purchase of intangible assets and advances for intangible assets
(31,273)
(23,026)
Purchase of financial assets measured at amortised cost
(1,149,869)
(904,647)
Loan granted to a related party
(300)
(500)
Purchase of shares of related parties
-
(583)
Total cash flows from financing activities:
(110,882)
(100,948)
In:
9,928
13,499
Grants received
9,928
13,499
Out:
(120,810)
(114,447)
Dividend paid
(105,208)
(100,716)
Interest paid on bonds
(5,452)
(7,300)
Settlement of a grant advance
(4,215)
(506)
Lease payments (interest)
3.4.5.
(353)
(621)
Lease payments (principal)
3.4.5.
(5,582)
(5,304)
Net increase in cash and cash equivalents
(61,524)
135,345
Impact of fx rates on cash balance in currencies
(170)
544
Cash and cash equivalents - opening balance
3.5.6.
411,018
275,129
Cash and cash equivalents - closing balance
3.5.6.
349,324
411,018
* Data for the comparative period have been restated. See Note 6.11.
The attached Notes are an integral part of these Financial Statements.
8
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. 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
Equity
Non
controlling
interests
Total
equity
Share
capital
Other
reserves
Retained
earnings
Total
As at January 2021 (restated*)
63,865
1,063
852,584
917,512
619
918,131
Dividends
-
-
(104,930)
(104,930)
-
(104,930)
Transactions with owners recognised
directly in equity
-
-
(104,930)
(104,930)
-
(104,930)
Net profit for 2021
-
-
161,249
161,249
27
161,276
Other comprehensive income
-
(6,620)
-
(6,620)
-
(6,620)
Comprehensive income for 2021
-
(6,620)
161,249
154,629
27
154,656
As at 31 December 2021
63,865
(5,557)
908,903
967,211
646
967,857
* Data for the comparative period have been restated. See Note 6.11.
Equity
Non
controlling
interests
Total
equity
Share
capital
Other
reserves
Retained
earnings
Total
As at 1 January 2020
(previously reported)
63,865
1,089
807,930
872,884
605
873,489
Adjustments:
-
-
(6,869)
(6,869)
-
(6,869)
As at 1 January 2020 (restated*)
63,865
1,089
801,061
866,015
605
866,620
Dividends
-
-
(100,733)
(100,733)
-
(100,733)
Transactions with owners recognised
directly in equity
-
-
(100,733)
(100,733)
-
(100,733)
Net profit for 2020
-
-
152,256
152,256
14
152,270
Other comprehensive income
-
(26)
-
(26)
-
(26)
Comprehensive income for 2020
-
(26)
152,256
152,230
14
152,244
As at 31 December 2020 (restated*)
63,865
1,063
852,584
917,512
619
918,131
* Data for the comparative period have been restated. See Note 6.11.
9
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. 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 the previous
reporting period.
1.2. SCOPE OF ACTIVITIES OF THE GROUP
The core activities of the Group include organising exchange trading in financial instruments and activities related to such
trading. At the same time, the Group organises an alternative trading system and pursues activities in education, promotion
and information concerning the capital market.
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”);
Treasury BondSpot Poland: wholesale trade in Treasury bonds operated by 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,
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 S.A. (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 (the reference rates 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 and the commodity market.
10
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. 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 15-16 March 2022.
1.4. COMPOSITION AND ACTIVITY OF THE GROUP
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”) and GPW Ventures SKA (“GPWV
SKA”),
GPW Tech S.A. (“GPWT”)
form the Giełda Papierów Wartościowych w Warszawie Group.
The share capital of GPW Benchmark S.A. was increased by PLN 2,000 thousand on 28 April 2021. The company issued
40,000 series F ordinary registered shares with a nominal value and issue price of PLN 50 per share. All shares were taken
up by GPW.
On 21 December 2020, the Extraordinary General Meeting of GPW Tech S.A. passed a resolution to increase the share
capital of GPWT. Under the resolution, the company issued 700,000 series B ordinary registered shares with a nominal value
and issue price of PLN 1 per share. All shares were taken up by GPW for a total amount of PLN 0.7 million. On 16 June 2021,
the Extraordinary General Meeting of GPW Tech S.A. passed a resolution to increase the share capital of GPWT by PLN 2
million. The company issued 2 million shares with a nominal value and issue price of PLN 1 per share. All shares were taken
up by GPW. Both share capital increases were registered in the National Court Register in 2021. As a result of the increases,
the share capital of GPWT was PLN 3.7 million as at 31 December 2021.
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
Poland
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
Poland
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
Poland
Trade Operator services on the
electricity market,
Trade balancing services on the
electricity market.
TGE: 100%
11
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. 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: 97.23%
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
The company manages 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 Ventures Asset
Management sp. z o.o.
S.K.A.
ul. Książęca 4
00-498 Warsaw
Poland
An alternative investment fund which is
to be an investment vehicle in the
“KOWR Ventures” project. Shares in the
entity will be taken up by a sector
investor (KOWR), and amounts thus
paid into the fund will be invested in
accordance with its policy and
investment strategy: in venture capital
(VC) funds and companies operating in
the agri-tech sector.
GPWV: 100%
GPW Tech S.A.
ul. Książęca 4
00-498 Warsaw
Poland
Design, development and
commercialisation of 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%
12
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. 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
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%
GPW is the ultimate parent company of the GPW Group. The parent entity of GPW is the State Treasury.
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 in force for the
financial statements of the Group for the financial year started on 1 January 2021:
Amendments to IFRS 4 Insurance Contracts – Extension of the temporary exemption from applying IFRS 9,
Amendments to IFRS 16 Leases –COVID-19-related rent concessions,
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.
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 2022:
Amendments to IAS 16 Property, Plant and Equipment – proceeds from selling items before an asset is available
for use,
Amendments to IAS 37 Provisions, Contingent Liabilities and Contingent Assets – onerous contracts – cost of
fulfilling a contract,
Amendments to IFRS 3 Business Combinations – reference to the conceptual framework,
Annual Improvements 2018-2020 provide clarification and additional guidance on recognition and measurement.
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 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 financial statements of the Group.
Standard
Effective date (IASB)
Amendments to IAS 1 Presentation of Financial Statements – presentation of liabilities as
current or non-current.
1 January 2023
Amendments to IAS 1 Presentation of Financial Statements and IASB Guidelines on accounting
policy disclosures in practice – materiality of accounting policies.
1 January 2023
IFRS 17 Insurance Contracts – the standard replaces the existing regulations on insurance
contracts (IFRS 4).
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 2021. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
Standard
Effective date (IASB)
Amendments to IAS 8 Accounting Policies – changes in accounting estimates and correction of
errors – definition of estimates.
1 January 2023
Amendments to IAS 12 Income Tax – mandatory recognition of deferred tax on transactions,
i.e., leases.
1 January 2023
Amendments to IFRS 17 Insurance Contracts – initial application of IFRS 17 and IFRS 9 –
Comparative information.
1 January 2023
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 non-controlling interest or a stake which gives no significant influence 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.
The 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.
14
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
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.
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 significantly affected the
business of the Exchange. Revenues from the markets operated by GPW are strongly linked to the economic situation in
Poland and globally. Factors such as business restrictions, aid programmes and tax incentives, and above all increased
uncertainty on the financial markets had a significant impact on the volatility of the capital markets, which impacted the
value of turnover and the capitalisation of companies on the GPW Main Market. That resulted in a significant increase in the
revenues of GPW and an improvement in the financial performance of the Exchange in 2020 compared to 2019. The high
level of performance was maintained in 2021. Regarding the commodity market, turnover on the electricity and gas markets
increased in 2020 due to changes in consumption demand caused by the pandemic. In 2021, commodity market turnover
stabilised and no impact of the Sars-CoV-2 pandemic on revenues was reported.
Uncertainty caused by the outbreak of a pandemic
The Group reviewed the judgements and estimates made and other assumptions used in its accounting policies as at 31
December 2021:
the key assumptions of the impairment tests of investment in subsidiaries were analysed. No need was identified
to recognise impairment losses on investment in subsidiaries as at 31 December 2021 (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)
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. A sensitivity analysis of the key variables (i.e., change in term of
lease and change in the lessee’s incremental borrowing rate) is presented in Note 3.4.3. In addition, the Exchange
and its subsidiaries did not receive or grant any rent concessions or materially change the scope of their leases in
2021;
the impact of the pandemic on the accounting for financial instruments under IFRS 9 was considered. In the opinion
of the Exchange Management Board and the Management Boards of the Group subsidiaries, the current classification
15
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
of financial assets and assessment of the business model for holding financial assets is correct and there are no
indications that their recognition should change or that impairment should be recognised;
an in-depth analysis of the regularity of payment of trade receivables was carried out and the assumptions used in
the valuation of expected credit loss of trade receivables were updated. 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 2021.
Going concern
The Exchange Management Board and the Management Boards of the subsidiaries also considered whether the outbreak of
the pandemic and its impact affected the ability of the Group to continue as a going concern. As at 31 December 2021, the
Group held PLN 349 million of cash and cash equivalents and short-term financial assets in the form of bank deposits and
guaranteed corporate bonds. These represent sufficient financial resources to conclude that the Group’s liquidity risk in the
short and medium term is low. As at 31 December 2021, the Group did not identify any material uncertainties relating to
events or circumstances that would cast significant doubt on its ability to continue as a going concern.
Risks associated with the outbreak of 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, slow-down of operational processes, the psychological
impact of long isolation, and shrinking ability and will of the Group’s clients to pay debt when due.
In the opinion of the Exchange Management Board and the Management Boards of the subsidiaries, those operational and
financial risks associated with the outbreak of the pandemic are considered moderate. Details of risks, together with a
description of actions taken to mitigate the identified risks and a detailed discussion of the impact of the pandemic on the
financial position of the Company and the Group are presented in the Management Board’s Report on the activities of the
parent entity and the Warsaw Stock Exchange Group, Note 2.8.4.
1.10. ANALYSIS OF THE IMPACT OF CLIMATE CHANGE ON THE ACTIVITY OF THE GPW GROUP
The European Securities and Markets Authority (ESMA) has identified climate-related issues as one of its priorities in its
annual public position setting out the European common supervisory priorities for the 2021 annual financial reports.
Accordingly, the Group has analysed the impact of climate change on the Consolidated Financial Statements and concluded
that climate change has no impact on the carrying amount of the assets and liabilities presented as at 31 December 2021.
In particular, the impact of climate change on the estimates and judgements, including the impairment assessment of cash-
generating units, was considered. As a result of the analysis, no update for the useful lives of property, plant and equipment
and intangible assets was identified as necessary.
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 RATE RISK
The Group is moderately exposed to interest rate risk.
The Group invests free cash in bank deposits, corporate bonds, Treasury bonds, and other instruments where the interest
rate is fixed or variable, 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.
16
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
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). In the case of fixed rate bonds, the Group is exposed to the
risk of foregoing potential benefits associated with a decrease in interest rates while at the same time being protected in the
event that interest rates rise above the level specified in the terms of issue.
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):
Impact of an 0.5 pps interest rate decrease on items of the statement of comprehensive
income
Year ended 31 December
2021
2020
Financial income
(1,981)
(2,231)
Financial expenses
1,029
1,513
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.
As at 31 December 2021
Maturity up to 1 year
1-5 Y
Total
< 1 M
1-3 M
> 3 M
Total
Corporate bonds
-
14,995
150,272
165,267
-
165,266
Bank deposits
41,167
199,081
109,078
349,326
-
349,326
Other assets
-
-
10,148
10,148
-
10,148
Current accounts (other)
86,876
13,530
-
100,406
-
100,406
Total current
128,043
227,606
269,498
625,147
-
625,146
Total financial assets
128,043
227,606
269,498
625,147
-
625,146
Bonds issued
-
-
246,468
246,468
-
246,468
Total current
-
-
246,468
246,468
-
246,468
Total financial liabilities
-
-
246,468
246,468
-
246,468
As at 31 December 2020
Maturity up to 1 year
1-5 Y
Total
< 1 M
1-3 M
> 3 M
Total
Corporate bonds
-
-
89,977
89,977
-
89,977
Bank deposits
2,000
164,219
205,009
371,228
-
371,228
Current accounts (other)
218,457
25,868
-
244,325
-
244,325
Total current
220,457
190,087
294,986
705,530
-
705,530
Total financial assets
220,457
190,087
294,986
705,530
-
705,530
Bonds issued
-
-
-
-
244,929
244,929
Total non-current
-
-
-
-
244,929
244,929
17
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
Bonds issued
-
-
1,551
1,551
-
1,551
Total current
-
-
1,551
1,551
-
1,551
Total financial liabilities
-
-
1,551
1,551
244,929
246,480
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 2021 and in 2010.
Based on a sensitivity analysis, as at 31 December 2021, 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.
Impact of a 10% FX rate increase on profit before tax
Year ended 31 December
2021
2020
EUR
1,164
1,892
USD
7
39
GPB
-
1
Total impact on profit before tax
1,171
1,932
An 10% FX rate decrease will result in the opposite change of financial income/expenses as presented above.
As at 31 December 2021
(converted to PLN at FX rate as at the balance-sheet date)
PLN
EUR
USD
GBP
Total carrying
amount in PLN
Financial assets measured at amortised cost
277,322
-
-
-
277,322
Trade receivables (net)
36,185
8,852
-
-
45,037
Other receivables *
10,663
-
-
-
10,663
Sublease receivables
71
-
-
-
71
Cash and cash equivalents
344,117
5,207
-
-
349,324
Total assets
668,358
14,059
-
-
682,417
Bonds in issue
246,278
-
-
-
246,278
Trade payables
12,257
1,378
69
-
13,704
Lease liabilities
8,526
1,037
-
-
9,563
Other liabilities * *
22,031
-
-
-
22,031
Total liabilitie
289,092
2,415
69
-
291,576
Net FX position
379,266
11,644
(69)
-
390,841
* Net of prepayments and receivables from other taxes.
** Net of VAT payable and other taxes payable.
18
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. 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
(converted to PLN at FX rate as at the balance-sheet date)
PLN
EUR
USD
GBP
Total carrying
amount in PLN
Financial assets measured at amortised cost
305,131
-
-
-
305,131
Trade receivables (net)
37,563
9,829
-
-
47,392
Other receivables *
1,626
-
-
-
1,626
Sublease receivables
316
-
-
-
316
Cash and cash equivalents
398,254
12,764
-
-
411,018
Total assets
742,890
22,593
-
-
765,484
Bonds in issue
245,905
-
-
-
245,905
Trade payables
13,785
1,247
73
12
15,117
Lease liabilities
12,146
2,427
316
-
14,889
Other liabilities * *
18,746
-
-
-
18,746
Total liabilitie
290,582
3,674
389
12
294,657
Net FX position
452,308
18,920
(389)
(12)
470,827
* Net of prepayments and receivables from other taxes.
** Net of VAT payable and other taxes payable.
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 2021 and as at 31 December 2010 (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 BBB+ by at least one rating agency: Moody’s, Fitch, Standards &
Poors, Polska Agencja Ratingowa, EuroRating). 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. In this way, exposure to the risk
of expected credit loss is mitigated.
The table below presents the Group’s exposure to credit risk.
19
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. 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 2021
2021
2020
Trade receivables (net)
45,037
47,392
Other receivables*
10,663
1,626
Cash and cash equivalents
349,324
411,018
Contract assets
2,412
1,696
Sublease receivables
71
316
Financial assets measured at amortised cost
277,322
305,131
Total exposure of the Group to credit risk
684,829
767,179
* Net of prepayments and receivables from other taxes.
In addition, the Group established collateral on its receivables under the Employee Loan Scheme at GPW and TGE and
collateral on trade balancing activities at IE in the amount of PLN 1.5 million as at 31 December 2021 and PLN 1.8 million as
at 31 December 2020. The Group’s total receivables under the Employee Loan Scheme amounted to PLN 765 thousand as
at 31 December 2021 and PLN 541 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 of liquid assets in total assets and, thus,
a good liquidity position of the Group.
As at 31 December 2021
As at 31 December 2020*
amount
% of total
assets
amount
% of total
assets
Cash and cash equivalents
349,324
24.8%
411,018
30.1%
Financial assets measured at amortised cost
277,322
19.7%
305,131
22.3%
Assets other than cash and cash equivalents and financial assets
measured at amortised cost
784,042
55.6%
649,323
47.6%
Total assets
1,410,688
100.0%
1,365,472
100.0%
* Data for the comparative period have been restated. See Note 6.11.
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%.
As at 31 December 2021
As at 31 December 2020*
amount
% of total
liabilities
amount
% of total
liabilities
Equity
967,857
68.6%
918,131
67.2%
Liabilities
442,831
31.4%
447,341
32.8%
Total equity and liabilities
1,410,688
100.0%
1,365,472
100.0%
* Data for the comparative period have been restated. See Note 6.11.
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.
20
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. 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 2021
< 1M
1-3 M
3-6 M
6-12 M
1-5 Y
> 5Y
Total
Trade receivables (gross)
34,355
15,198
-
-
-
-
49,553
Other receivables*
10,615
-
-
27
-
21
10,663
Sublease receivables
11
19
25
82
25
-
162
Financial assets measured at amortised cost
52,154
111,144
69,662
46,031
-
-
278,991
Cash and cash equivalents
349,474
-
-
-
-
-
349,474
Total assets
446,609
126,361
69,687
46,140
25
21
688,843
Bonds in issue
120,649
1,988
-
127,000
-
-
249,637
Trade payables
9,285
1,694
-
-
-
-
10,979
Lease liabilities
881
629
794
3,094
5,115
-
10,513
Other liabilities**
6,518
2,547
-
531
4,457
3,561
17,614
Total liabilities
137,333
6,858
794
130,625
9,572
3,561
288,743
Liquidity surplus/(gap)
309,276
119,503
68,893
(84,485)
(9,547)
(3,540)
400,100
* Net of prepayments and receivables from other taxes.
** Net of VAT payable and other taxes payable.
As at 31 December 2020
< 1M
1-3 M
3-6 M
6-12 M
1-5 Y
> 5Y
Total
Trade receivables (gross)
50,379
3,284
-
-
-
-
53,663
Other receivables*
1,607
5
5
10
-
23
1,650
Sublease receivables
21
12
68
35
66
-
202
Financial assets measured at amortised cost
-
183,013
122,164
-
708
-
305,885
Cash and cash equivalents
411,021
-
-
-
-
-
411,021
Total assets
463,028
186,314
122,237
45
774
23
772,421
Bonds in issue
720
1,988
720
2,000
249,637
-
255,065
Trade payables
13,843
823
-
-
-
-
14,666
Lease liabilities
889
1,397
777
3,092
9,913
2,013
18,081
Other liabilities**
2,793
7,132
140
-
10,688
-
20,753
Total liabilities
18,245
11,340
1,637
5,092
270,238
2,013
308,565
Liquidity surplus/(gap)
444,783
174,974
120,600
(5,047)
(269,464)
(1,990)
463,856
* Net of prepayments and receivables from other taxes.
** Net of VAT payable and other taxes payable.
2.5. CAPITAL MANAGEMENT
The objective of the Group when managing capital is to safeguard the ability of the Exchange and the subsidiaries to continue
as a going concern and provide optimal benefits to all stakeholders. The priority of the Exchange Management Board and
the Management Board of the subsidiaries when making decisions about the structure of financing and the Group’s dividend
policy is to ensure a low level of investment risk while obtaining the best possible rate of return for the shareholders and a
stable and reliable rate of return for the bondholders. Decisions taken by the Management Boards in this respect have a
long-term horizon and are aimed at long-term building of value of the Group and the Polish capital market. In addition, as
entities operating a regulated market, the Exchange and BondSpot are required by the Act on Trading in Financial
Instruments to maintain a minimum level of equity equal to PLN 10 million.
To achieve those objectives, as at 31 December 2021 and as at 31 December 2020, the Group used third-party capital
(interest-bearing liabilities) in the form of bonds issued (see Note 3.8) and leases (Note 3.4). In addition, in accordance with
its internal capital management and dividend policy, the Exchange pays an annual dividend to shareholders. It is the intention
of the GPW Management Board to recommend to the General Meeting dividend payments in line with the profitability and
financial capacity of GPW, not less than 60% of the consolidated net profit of the GPW Group for the financial year attributable
to shareholders of GPW adjusted for the share of profit of associates. In accordance with the strategy #GPW2022, the
21
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
Exchange will pay each year a dividend higher by at least PLN 0.1 per share than the dividend per share paid in the previous
year. Details of the dividend payments in 2021 and 2020 are presented in note 3.7.4.
The Exchange Management Board and the Management Boards of the subsidiaries optimise the structure of capital and
monitor performance against targets using Alternative Performance Measures calculated according to the Guidelines of the
European Securities and Markets Authority (“ESMA”). The measures used by the Group to monitor its capital management
performance are presented in Note 1.1 of the Management Board’s Report on the Activity of the Parent Entity and the Group
of Giełda Papierów Wartościowych w Warszawie S.A.
3. NOTES TO THE CONSOLIDATED STATEMENT 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
Buildings
40 years
Leasehold improvements
10 years
Vehicles
5 years
Computer hardware
3-5 years
Other fixed assets
5-10 years
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 2021. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
Year ended 31 December 2021
Land and
buildings
Vehicles
Furniture,
fittings and
equipment
Property,
plant and
equipment
under
construction
Total
Net carrying amount - opening balance
73,566
17,108
455
6,204
97,333
Additions
2,221
8,452
377
308
11,358
Disposals
(183)
-
(1)
(3,856)
(4,040)
Depreciation charge*
(3,267)
(9,032)
(448)
-
(12,747)
Net carrying amount - closing balance
72,320
16,528
383
2,656
91,887
As at 31 December 2021:
Gross carrying amount
130,053
109,545
5,344
2,656
247,598
Written off
(57,733)
(93,017)
(4,961)
-
(155,711)
Net carrying amount
72,320
16,528
383
2,656
91,887
*Depreciation of PLN 501 thousand is capitalised to intangible assets (development work)
Year ended 31 December 2020
Land and
buildings
Vehicles
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
Additions
381
8,182
122
1,392
10,077
Reclassification and other adjustments
-
(331)
24
179
(128)
Disposals
-
(48)
(6)
(49)
(103)
Depreciation charge*
(3,226)
(11,084)
(171)
-
(14,481)
Net carrying amount - closing balance
73,566
17,108
455
6,204
97,333
As at 31 December 2020:
Gross carrying amount
128,139
115,825
4,938
6,204
255,106
Written off
(54,573)
(98,717)
(4,483)
-
(157,773)
Net carrying amount
73,566
17,108
455
6,204
97,333
*Depreciation of PLN 390 thousand is capitalised to intangible assets (development work)
Starting with Q1 2021, the Group presents capital expenditure (development work) separately from property, plant and
equipment. Comparable data have been restated for the sake of comparability in this Note.
Vehicles and machinery include mainly IT hardware: servers, computers and network devices.
As at 31 December 2021, 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 statement of financial position as at 31 December 2021) stood at PLN 723 thousand. As at 31 December
2020, 1% of such space was under leases and the fixed assets under the leases stood at PLN 738 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.
23
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
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.
The Group recognised no impairment of property, plant and equipment in 2021 and in 2020.
3.2. INTANGIBLE ASSETS
Selected accounting policies
Intangible assets include goodwill, other intangible assets, and development work.
Other intangible assets (licence and, copyright) are disclosed at cost of purchase or production net of accumulated
amortisation and impairment losses.
Intangible assets developed in-house are classified as research (recognised as an expense) or development work (recognised
as an intangible asset). Development work is recognised at cost, 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 amount 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 amount 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 2021. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
Year ended 31 December 2021
Licences
Copyrights
Know-how
Goodwill
Development
work
Perpetual
usufruct of
land
Total
Net carrying amount -
opening balance**
53,791
2,572
4,821
167,446
18,678
5,892
253,200
Additions
7,199
306
76
-
20,817
-
28,398
Reclassification and other
adjustments
-
-
-
-
(18)
-
(18)
Capitalised depreciation
-
-
-
-
638
-
638
Disposals
-
-
-
-
(446)
-
(446)
Depreciation charge*
(16,691)
(433)
(545)
-
-
(81)
(17,750)
Net carrying amount -
closing balance
(unaudited)
44,299
2,445
4,352
167,446
39,669
5,811
264,022
As at 31 December 2021:
Gross carrying amount
242,726
8,614
6,315
172,374
40,299
6,054
476,382
Impairment
-
-
-
(4,928)
-
-
(4,928)
Written off
(199,057)
(6,172)
(1,960)
-
-
(243)
(207,432)
Net carrying amount
43,669
2,442
4,355
167,446
40,299
5,811
264,022
* Depreciation of PLN 137 thousand is capitalised to intangible assets (development work)
** Data for the comparative period have been restated. See Note 6.11.
Year ended 31 December 2020
Licences
Copyrights
Know-how
Goodwill
Development
work
Perpetual
usufruct of
land
Total
As at 1 January 2020
(reported)
67,425
2,867
5,387
170,970
-
-
246,649
Adjustments
(5,036)
-
-
-
5,036
5,973
5,973
Net carrying amount -
opening balance (restated)
62,389
2,867
5,387
170,970
5,036
5,973
252,622
Additions
7,351
154
-
-
13,206
-
20,711
Reclassification and other
adjustments
(71)
-
(42)
-
-
-
(113)
Capitalised depreciation
-
-
-
-
436
-
436
Disposals
-
-
-
(3,524)
-
-
(3,524)
Depreciation charge*
(15,878)
(449)
(524)
-
-
(81)
(16,932)
Net carrying amount -
closing balance (restated)
53,791
2,572
4,821
167,446
18,678
5,892
253,200
As at 31 December 2020:
Gross carrying amount
236,157
8,310
6,240
172,374
18,678
5,973
447,732
Impairment
-
-
-
(4,928)
-
-
(4,928)
Written off
(182,366)
(5,738)
(1,419)
-
-
(81)
(189,604)
Net carrying amount
53,791
2,572
4,821
167,446
18,678
5,892
253,200
* Depreciation of PLN 46 thousand is capitalised to intangible assets (development work)
** Data for the comparative period have been restated. See Note 6.11.
Starting with Q1 2021, the Group presents capital expenditure (development work) within intangible assets. Comparable
data have been restated for the sake of comparability in this Note.
25
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
The Company has reclassified its share in the right of perpetual usufruct of land from “Right-to-use assets” to “Intangible
assets”. A complete description of the reclassification is presented in Note 6.11.2.
In 2021, the cost of research recognised in the statement of comprehensive income amounted to PLN 3,257 thousand and
remained stable year on year (PLN 3,257 thousand in 2020). Development work is expenditure on intangible assets generated
in-house, comprising mainly expenditure on projects with grants described in Note 6.3.
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 25,217 thousand as at 31 December 2021 (PLN 32,976 thousand
as at 31 December 2020).
No impairment of intangible assets was recognised in the year ended 31 December 2021 and 31 December 2020.
Impairment testing of intangible assets
Due to the nature of its business, the Group does not identify individual assets as cash-generating units that are largely
independent of other assets or a group of assets. Therefore, for the purposes of testing intangible assets, the recoverable
amount was determined at the level of the cash-generating unit to which the asset belongs. As at 31 December 2021, the
tests for impairment of the cash-generating unit did not identify the need to recognise impairment losses.
The main assumptions used to determine the value in use of the Group’s cash-generating unit as at 31 December 2021:
increase in revenues and expenses related to operations, planned capital expenditure and implementation of
strategic projects;
weighted average cost of capital of 7.66%,
growth rate after 2026 equal to 2%.
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.
Test for impairment of goodwill resulting from taking control of the TGE Group
The goodwill from taking control of the TGE Group was tested for impairment as at 31 December 2021 by estimating the
value in use under the discounted cash flows (DCF) method according to the financial assumptions for 2022-2026 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 goodwill impairment test based on a DCF valuation of the company was prepared on the basis of the forecast results of
the TGE Group in the years 2022-2026. The main assumptions of the test performed as at 31 December 2021:
average annual revenue growth in the period 2022-2026 of 2.4%,
average annual growth in expenses in the period 2022-2026 of 1.9%,
weighted average cost of capital of 7.66%,
growth rate after 2026 equal to 2.0%.
26
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
The goodwill impairment test performed as at 31 December 2021 did not indicate a need for a write-down in the consolidated
financial statements of the GPW Group. The analysis of the impairment test indicates that a 10.1 percentage point decrease
in the average annual revenue growth rate or a 478.5 percentage point decrease in the growth rate after 2026 or a 20.3
percentage point increase in the WACC will result in the carrying amount being equal to recoverable amount of the cash-
generating unit.
Following the analysis, the Exchange Management Board identified no circumstances indicating impairment of the goodwill
from taking control of the TGE Group as at 31 December 2021.
Impairment of BondSpot goodwill
In 2020, the key factor impacting the financial position of the company was the situation on the Treasury bond market.
Treasury bond yields were falling sharply for the greater part of 2020, i.e., from the outbreak of the SARS-CoV-2 pandemic.
The initial withdrawal of capital from bond funds combined with actions taken by the NBP to offset the market changes led
at the turn of 2020 and 2021 to a change in the trend in the prices/yields of Polish Treasury bonds. 10-year bond yields
were rising steadily from the beginning of 2021, in line with rising yields of government bonds in foreign markets. The
increased activity of foreign banks in the Polish bond market contributed to the improvement of the company’s results. The
increased volatility was underpinned by rising inflation expectations and investor sentiment in the market from the beginning
of 2021. Inflationary pressure, supported by rising fuel prices on global markets, proved to be a significant factor supporting
the increase in yields of Polish Treasury securities. As a direct result of those factors, turnover on the Treasury BondSpot
Poland market increased and so did the revenues of BondSpot S.A.
The goodwill impairment test based on a DCF valuation of the company was prepared on the basis of the forecast results of
BondSpot in the years 2022-2026. The main assumptions of the test performed as at 31 December 2021:
average annual revenue growth in the period 2022-2026 of 16.6% assuming that BondSpot’s key technology project
is launched by 2024,
average annual growth in expenses in the period 2022-2026 of 4.5%,
weighted average cost of capital of 7.66%,
growth rate after 2026 equal to 2%.
The test showed that the recoverable amount of BondSpot S.A. determined using the DCF method is higher than the value
of the shares in BondSpot S.A. recognised at cost in the Exchange’s statement of financial position as at 31 December 2021
amounting to PLN 34.4 million. Therefore, the investment in BondSpot S.A. was not found to be impaired as at 31 December
2021. The impairment test analysis indicates that a 1.1 percentage point decrease in the average annual revenue growth
rate or a 1.5 percentage point increase in the weighted average cost of capital or a 1.9 percentage point decrease in the
growth rate after 2026 will result in the carrying amount being equal to recoverable amount of the shares.
Impairment test of goodwill from the acquisition of an organised part of the enterprise of ELBIS Sp. z o.o. by
InfoEngine.
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 2021 by estimating the value in use under the
discounted cash flows (DCF) method according to the financial assumptions for 2022-2026 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.
The goodwill impairment test based on a DCF valuation of the company was prepared on the basis of the forecast results of
InfoEngine in the years 2022-2026. The main assumptions of the test performed as at 31 December 2021:
average annual revenue growth in the period 2022-2026 of 7.5%,
average annual growth in expenses in the period 2022-2026 of 1.9%,
weighted average cost of capital of 7.66%,
growth rate after 2026 equal to 2.0%.
The goodwill impairment test performed as at 31 December 2021 did not indicate a need for a write-down in the consolidated
financial statements of the GPW Group. The analysis of the impairment test indicates that a 6.1 percentage point decrease
in the average annual revenue growth rate or a 149.5 percentage point decrease in the growth rate after 2026 or a 24.7
percentage point increase in the WACC will result in the carrying amount being equal to recoverable amount of the shares.
Following the analysis, the Exchange Management Board identified no circumstances indicating impairment of the goodwill
of Platforma Obrotu Energią Elektryczną as at 31 December 2021.
27
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
Goodwill
Gross carrying amount
Impairment
Net amount after
impairment
Goodwill from:
GPW's taking control of TGE
147,792
-
147,792
GPW's taking control of BondSpot
22,986
(3,524)
19,462
InfoEngine's acquisition of Platforma Obrotu Energią
Elektryczną (poee)*
1,588
(1,404)
184
GPW's taking control of GPWB
8
-
8
Total as at 31 December 2021
172,374
(4,928)
167,446
Goodwill from:
GPW's taking control of TGE
147,792
-
147,792
GPW's taking control of BondSpot
22,986
(3,524)
19,462
InfoEngine's acquisition of Platforma Obrotu Energią
Elektryczną (poee)*
1,588
(1,404)
184
GPW's taking control of GPWB
8
-
8
Total as at 31 December 2020
172,374
(4,928)
167,446
* 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)
Projection
years
WACC
Revenue
CAGR
Expense
CAGR
Growth rate
after the
projection
horizon
Key valuation assumptions as at 31 December 2021
Goodwill from:
GPW's taking control of TGE
5
8%
2%
2%
2%
GPW's taking control of BondSpot
5
8%
17%
5%
2%
InfoEngine's acquisition of Platforma Obrotu Energią Elektryczną
(poee)
5
8%
7%
2%
2%
Key valuation assumptions as at 31 December 2020
Wartość firmy powstała w wyniku:
Goodwill from:
5
7%
4%
2%
2%
GPW's taking control of BondSpot
5
8%
13%
3%
0%
InfoEngine's acquisition of Platforma Obrotu Energią Elektryczną
(poee)
5
9%
8%
3%
2%
3.3. INVESTMENT IN ENTITIES MEASURED BY THE EQUITY METHOD
Selected accounting policies
Entities measured by the equity method include associates and joint ventures. Investments in associates and joint ventures
are initially recognised at cost.
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 the 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
28
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
other reserves. When the Group’s share of losses of an entity measured by the equity method equals or exceeds its interest
in the entity, 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 2021 and as at 31 December 2020 included:
KDPW S.A. Group (“KDPW Group”),
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.
As at/Year ended 31 December 2021
KDPW Group
Centrum
Giełdowe S.A.
Total
Opening balance
203,365
17,029
220,395
Dividends due to GPW S.A .
(6,642)
(421)
(7,063)
Share of net profit/(loss )
24,348
258
24,606
Other increase/(decrease) of profit
(230)
-
(230)
Total Group share of profit/(loss ) after tax
24,118
258
24,376
Share in other comprehensive income
(6,883)
-
(6,883)
Closing balance
213,958
16,866
230,825
As at/Year ended 31 December 2020
KDPW Group
Centrum
Giełdowe S.A
.
Total
Opening balance
193,197
17,129
210,326
Dividends due to GPW S.A .
(5,187)
(512)
(5,699)
Share of net profit/(loss )
15,553
412
15,965
Other increase/(decrease) of profit
(217)
-
(217)
Total Group share of profit/(loss ) after tax
15,336
412
15,748
Share in other comprehensive income
20
-
20
Closing balance
203,366
17,029
220,395
As at/Year ended 31 December 2021
KDPW
Group**
Centrum
Giełdowe S.A .
Polska Agencja
Ratingowa S.A
Total
Current assets, incl.:
3,009,050
12,134
679
n/d
cash and cash equivalents
76,253
10,108
528
n/d
Non-current assets
518,870
61,756
1,478
n/d
Current liabilities
2,859,167
2,089
1,080
n/d
Non-current liabilities
18,074
3,143
-
n/d
29
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
Sales revenue
204,167
16,804
1,355
n/d
Depreciation and amortisation
23,306
3,395
723
n/d
Income tax
12,859
263
-
n/d
Dividend due to GPW S.A . in 2021
6,642
421
-
n/d
Net prof it/(loss) for the year ended 31 December
2021
72,286
1,041
(540)
n/d
Group share of prof it/(loss) for the year ended 31
December 2021
24,118
258
24,376
* As at 30 September 2019, the investment in PAR was fully impaired and as of that date the result of PAR is no longer included in the Group's net profit.
** The KDPW Group prepares its financial statements in accordance with the Accounting Act. The results presented in the table above have been adjusted to the
accounting principles applied in the GPW Group.
As at/Year ended 31 December 2020
KDPW
Group**
Centrum
Giełdowe S.A .
Polska Agencja
Ratingowa S.A
Total
Current assets, incl.:
2,970,732
10,331
232
n/d
cash and cash equivalents
70,454
8,437
199
n/d
Non-current assets
464,309
61,687
2,201
n/d
Current liabilities
2,793,732
2,798
486
n/d
Non-current liabilities
25,443
3,240
324
n/d
Sales revenue
172,116
15,658
-
n/d
Depreciation and amortisation
21,340
3,135
730
n/d
Income tax
12,521
453
-
n/d
Dividend due to GP W S.A . in 2020
5,187
512
-
n/d
Net prof it/(loss) for the year ended 31 December
2020
45,939
1,661
(2,284)
n/d
Group share of prof it/(loss) for the year ended 31
December 2020
15,335
412
-
15,748
* As at 30 September 2019, the investment in PAR was fully impaired and as of that date the result of PAR is no longer included in the Group's net profit.
** The KDPW Group prepares its financial statements in accordance with the Accounting Act. The results presented in the table above have been adjusted to the
accounting principles applied in the GPW Group.
Investment in PAR
The Exchange held 35.86% of PAR as at 31 December 2021 and as at 31 December 2020.
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 Exchange’s consolidated statement of financial position as at 31 December 2021
and as at 31 December 2020.
Note 6.4.2 presents information relating to the loan granted by the Exchange to PAR.
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. It is assumed that low-value assets
are those assets whose unit value does not exceed PLN 20,000, which is approximately equivalent to USD 5,000.
Short-term leases are leases up to 12 months.
For each lease contract, the Group defines the lease term as an uncancellable period including:
30
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
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.
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.
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-to-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;
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-to-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-to-use assets (net of depreciation of subleased assets), increases in right-to-use assets, and
the carrying amount of right-to-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 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 statement of
comprehensive income and presented in the table below.
The Group was not a lessee for any term under 12 months (short-term lease) in 2021 and in 2020.
31
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
Note
Year ended 31 December
2021 r.
2020 r.
Depreciation of right-to-use assets
3.5.4.
5,385
5,572
Interest on lease liabilities
4.6.
353
621
Remeasurement of leases
17
182
Low-value leases
-
24
Total lease cost in the statement of comprehensive income
5,755
6,399
The Group incurred no variable lease costs in 2021 and in 2020 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-to-
use assets under the head lease accordingly (recognised under IFRS 16).
As at 31 December 2021, 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-to-use assets are calculated using professional judgment including:
determination of the period of lease;
determination of the lessee’s incremental borrowing rate.
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 using judgment determined the five-year term of lease of additional office space occupied
by the Group in the Centrum Giełdowe
The table below presents the impact of change of the term of lease of additional office space and land by 2 years.
as at 31 December / Year ended 31 December
2021
2020
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
Impact on the value of lease liabilities
(4,968)
4,691
(5,013)
4,727
Impact on the value of sublease payables
-
-
(1,192)
1,124
Impact on operating expenses (depreciation)
(5,013)
4,529
(118)
88
Impact on sublease interest income
-
-
(34)
33
Impact on lease interest expense
(1,496)
437
(145)
137
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
32
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
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.
as at 31 December / Year ended 31 December
2021
2020
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
Impact on the value of lease liabilities
71
(68)
339
(310)
Impact on the value of sublease payables
-
-
44
(15)
Impact on operating expenses (depreciation)
214
(203)
96
(91)
Impact on sublease interest income
-
-
26
(25)
Impact on lease interest expense
99
(112)
133
(126)
3.4.4. RIGHT-TO-USE ASSETS
Selected accounting policies
The Group initially measures right-to-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-to-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-to-use
assets are depreciated on a straight-line basis over the lease term.
For subleases, the head lease asset is derecognised in right-to-use assets in the consolidated statement of financial position
and its depreciation is derecognised in depreciation in the consolidated statement of comprehensive income.
Right-to-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, cars and colocation space.
The table below presents changes to right-of-use assets by category, net of subleased assets.
As at 31 December 2021:
Office space
and other
premises
Vehicles
Colocation
space
Total
Right-of-use assets - as at the beginning of the period
(restated*)
5 908
629
7 447
13 984
New leases
490
216
662
1 368
Terminated leases
(538)
(1)
(453)
(992)
Terminated subleases
131
-
-
131
Reclassification and other adjustments
(24)
-
2
(22)
Depreciation
(2 171)
(561)
(2 653)
(5 385)
Net carrying amount - closing balance
3 796
283
5 005
9 084
* Data for the comparative period have been restated. See Note 6.11.
33
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. 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:
Office space and
other premises
Perpetual
usufruct of
land
Vehicles
Colocation
space
Total
Right-of-use assets - as at the beginning
of the period (previously reported)
7,483
4,240
1,098
9,904
22,725
Corrections
-
(4,240)
-
-
(4,240)
Right-of-use assets - as at the beginning
of the period (restated*)
7,483
-
1,098
9,904
18,485
New leases
360
-
107
-
467
New subleases
(284)
-
(64)
-
(348)
Terminated subleases
416
-
-
-
416
Reclassification and other adjustments
82
-
65
60
207
Depreciation
(2,148)
-
(577)
(2,517)
(5,242)
Net carrying amount - closing balance
5,908
-
629
7,447
13,984
* Data for the comparative period have been restated. See Note 6.11.
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 incremental borrowing rate. The incremental 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 expects to be paid 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.
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.
34
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
Rok zakończony 31 grudnia 2021 r.
Office space
and other
premises
Vehicles
Colocation
space
Total
Lease liabilities - as at the beginning of the period
(restated data *)
6,549
676
7,667
14,892
New leases
491
216
663
1,370
Terminated leases
(580)
(2)
(468)
(1,050)
Interest on lease liabilities
145
27
196
368
Lease liabilities paid in the period (equal to leasing fees)
(2,518)
(596)
(2,821)
(5,935)
Remeasurement of lease liabilities
17
-
-
17
Reclassification and other adjustments
(1)
(96)
(2)
(99)
Net carrying amount - closing balance, including:
4,103
225
5,235
9,563
non-current
1,731
(49)
2,488
4,170
current
2,372
274
2,747
5,393
* Data for the comparative period have been restated. See Note 6.11.
As at 31 December 2020:
Office space and
other premises
Perpetual
usufruct of
land
Vehicles
Colocation
space
Total
Lease liabilities - as at the beginning of
the period (previously reported)
8,194
1,934
1,144
10,113
21,385
Corrections
-
(1,934)
-
-
(1,934)
Lease liabilities - as at the beginning of
the period (restated data *)
8,194
-
1,144
10,113
19,451
New leases
360
-
107
-
467
Interest on lease liabilities
258
-
45
263
566
Lease liabilities paid in the period (equal to
leasing fees)
(2,477)
-
(620)
(2,709)
(5,806)
Remeasurement of lease liabilities
182
-
-
-
182
Reclassification and other adjustments
29
-
-
-
29
Net carrying amount - closing balance,
including:
6,546
-
676
7,667
14,889
non-current
4,151
-
157
5,185
9,493
current
2,395
-
519
2,482
5,396
* Data for the comparative period have been restated. See Note 6.11.
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
incremental borrowing rate.
35
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. 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.
As at 31 December 2021:
Office space and other
premises
Colocation space
Total
Sublease receivables - opening balance
316
-
316
Terminated subleases
(77)
-
(77)
Interest on sublease receivables
6
(3)
3
Sublease receivables paid in the period (equal to leasing
fees)
(137)
-
(137)
Reclassification and other adjustments
(37)
3
(34)
Net carrying amount - closing balance, including:
71
-
71
current
71
-
71
As at 31 December 2020:
Office space and other
premises
Vehicles
Total
Net carrying amount as at 1 January 2020
648
65
713
New subleases
284
-
284
Terminated subleases
(416)
-
(416)
Interest on sublease receivables
12
-
12
Sublease receivables paid in the period (equal to leasing
fees)
(143)
-
(143)
Remeasurement of sublease receivables
8
-
8
Reclassification and other adjustments
(77)
(65)
(142)
Net carrying amount - closing balance, including:
316
-
316
non-current
179
-
179
current
137
-
137
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,
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.
36
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
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 Exchange held shares of IDM S.A. in bankruptcy by arrangement received from the debtor in exchange for receivables
and classified them as financial assets measured at fair value through profit or loss as at 31 December 2021 and as at 31
December 2020. The fair value of the shares was PLN 0 as at 31 December 2021 and as at 31 December 2020.
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 assesses expected credit loss for assets related to debt instruments measured at amortised cost regardless of
whether there is any indication of impairment. An allowance for expected credit loss is recognised on the basis of the issuer’s
estimated rating and the probability of loss and amount of loss attributed to the rating.
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 credit loss ratio based
on 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 credit loss ratio.
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 statement of comprehensive income as gains or losses on
impairment.
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.
37
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
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 the contractual cash flows are solely payments of principal and interest and the objective of
the Company’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 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. For debt instruments, accrued interest is recognised
directly in profit or loss.
As at 31 December 2021
Innex
BVB
Total
Value at cost
3,820
1,343
5,163
Revaluation
(3,820)
(1,220)
(5,040)
Carrying amount
-
123
123
As at 31 December 2020
Innex
BVB
Total
Value at cost
3,820
1,343
5,163
Revaluation
(3,820)
(1,228)
(5,048)
Carrying amount
-
115
115
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 2021.
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.
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).
38
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
The fair value of BVB shares as at 31 December 2021 and as at 31 December 2020 was recognised at the share price (level
1 of the fair value hierarchy). As there is no active market for Innex shares and the fair value of Innex shares cannot be
reliably determined, it was recognised at cost less impairment loss (level 3 in 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 the transaction price under IFRS 15. 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 VAT refund receivable. The increase in VAT refund receivable is due to the reversal of trade
on the international energy market and the prevalence of exports over imports.
Non-current prepayments are presented as prepayments in non-current assets in the consolidated statement of financial
position.
As at 31 December
2021
2020
Gross trade receivables
49,553
54,077
Impairment allowances for trade receivables
(4,516)
(6,685)
Total trade receivables
45,037
47,392
Current prepayments
7,061
6,203
Current prepayments
114,316
8
Sublease receivables
12
13
Grants receivable
3,670
-
Other receivables
6,981
1,613
Total other receivables
132,040
7,837
Total trade receivables and other receivables
177,077
55,229
In the opinion of the Exchange Management Board, in view of the short due date of trade receivables, the carrying amount
of those receivables is similar to their fair value.
Year ended 31 December 2021
Year ended 31 December 2020
Trade
receivables
Impairment
Total
receivables
Trade
receivables
Impairment
Total
receivables
Receivables which are not overdue
41,356
(85)
41,271
38,731
(480)
38,251
1 to 30 days overdue
2,605
(34)
2,571
4,051
(326)
3,725
31 to 61 days overdue
595
(20)
575
3,099
(61)
3,038
61 to 90 days overdue
358
(17)
341
829
(29)
800
91 to 180 days overdue
315
(36)
279
1,698
(120)
1,578
More than 180 days overdue
4,324
(4,324)
-
5,669
(5,669)
-
Overdue receivables
8,197
(4,431)
3,766
15,346
(6,205)
9,141
Total gross trade receivables
49,553
(4,516)
45,037
54,077
(6,685)
47,392
39
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
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 2021, the Group’s trade receivables at PLN 8,197 thousand were overdue, including PLN 5,851 thousand
at the parent entity (31 December 2020 – PLN 15,346 thousand, including PLN 12,855 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 743 thousand and other overdue receivables at PLN 7,454 thousand as at 31 December 2021 (31
December 2020 – PLN 645 thousand and PLN 14 701 thousand, respectively).
As at 31 December
2021
2020
Exchange Members
15,972
26,209
Issuers*
231
696
Other*
25,154
11,826
Total gross trade receivables not overdue
41,356
38,731
* Receivables from debtors who are at the same time Exchange Members and Issuers or Exchange Members and Data Vendors (other clients) are presented under
receivables from Exchange Members.
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.
As at 31 December
2021
2020
Aa
1,340
2,424
A
8,194
11,328
Baa
487
3,891
Ba
50
-
B and BB
112
3,769
No rating
5,790
4,797
Total trade receivables from Exchange Members
15,972
26,209
The Group has no collateral on receivables.
None of the Group’s trade receivables were subject to renegotiation of the amount in 2021 and in 2020.
The fair value of trade receivables and other receivables is not significantly different from the carrying amount.
As at 31 December
2021
2020
Opening balance
6,685
6,039
Creating a write-off
2,328
5,465
Dissolution of the write-off
(4,074)
(4,301)
Receivables written off during the period as uncollectible
(423)
(518)
Closing balance
4,516
6,685
The impairment of trade receivables was determined according to the expected loss concept using a provision matrix
described in Note 3.5.2.
40
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. 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 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 2021
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. For receivables past due more
than 180 days, the expected credit loss is assumed to be 100% of the past due receivable. For receivables past due between
90 and 180 days, the expected credit losses is estimated based on analysis of historical data.
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 0.31% to 8.89%,
issuers of securities listed on markets operated by the Exchange – from 1.12% to 26.88%,
other clients (including data vendors) – from 0.67% to 5.80%.
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 Company considers a financial asset to be at risk of default if internal and external information indicates that it is unlikely
that the Company will receive the remaining contractual cash flows in full. A financial asset is written off if there is no
reasonable expectation that the contractual cash flows will be recovered.
The change of the impairment allowance for trade receivables in 2021 was PLN 2,169 thousand (decrease of allowance)
resulting from a higher amount of reversal (PLN 4,074 thousand) than creation of allowance (PLN 2,328 thousand); PLN
1,746 thousand was recognised in the statement of comprehensive income in 2021 as gains on reversed impairment of
receivables and PLN 423 thousand were receivables written off as non-recoverable.
The change of the impairment allowance for trade receivables in 2020 was PLN 646 thousand (increase of allowance) resulting
from a higher amount of creation (PLN 5,465 thousand) than reversal of allowance (PLN 4,301 thousand); PLN 950 thousand
was recognised in the statement of comprehensive income in 2020 as loss on reversed impairment of receivables and PLN
518 thousand were receivables written off as non-recoverable
As at 31 December
2021
2020
Domestic receivables
33,349
32,864
Foreign receivables
16,204
21,213
Total gross trade receivables
49,553
54,077
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), as well as restricted cash which represents
an additional risk management tool at IRGIT and secures the liquidity of clearing exchange transactions by IRGIT in cases
specified in the Rules of the Exchange Clearing House.
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 2021. 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
2021
2020
Corporate bonds
150,271
89,977
Bank deposits
117,081
215,154
Other assets
10,148
-
Total current
277,500
305,131
Allowance for losses on debt instruments measured at amortised cost
(178)
-
Total financial assets measured at amortised cost (over 3 months)
277,322
305,131
Year ended 31 December 2021
Interest received
Interest accrued
Total recognised in
financial income
Corporate bonds
365
95
460
Bank deposits
79
71
150
Total revenue from assets measured at amortised
cost (over 3 months)
444
166
610
Year ended 31 December 2020
Interest received
Interest accrued
Total recognised in
financial income
Corporate bonds
1,428
(457)
971
Bank deposits
2,542
(1,029)
1,513
Total revenue from assets measured at amortised
cost (over 3 months)
3,970
(1,486)
2,484
The table below presents the risk classification of financial assets measured at amortised cost. Due to the fact that the
Exchange 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.
As at 31 December
2021
2020
Aa/AA2
-
110 005
A+
5 086
5 086
A
50 093
-
A-
217 079
95 004
Ba/BBB+
5 064
95 035
Total
277 322
305 131
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).
42
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. 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
2021
2020
Current accounts (other)
100,406
244,325
VAT current accounts (split payment)
1,911
474
Corporate bonds
14,995
-
Bank deposits
232,245
166,219
Expected credit loss
(233)
-
Total cash and cash equivalents
349,324
411,018
* Data for the comparative period have been restated. See Note 6.11.
0.00
0.00
Cash and cash equivalents include current accounts and short-term bank deposits (up to 3 months). The carrying amount
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 22 days in 2021, similar to 2020.
At the commencement of the development projects: New Trading System, GPW Data, GPW Private Market and TeO (see
Note 6.3), the Group opened dedicated banks accounts for each of those projects. The total balance in those accounts was
PLN PLN 4,389 thousand as at 31 December 2021 (PLN 4,111 thousand as at 31 December 2020). Cash in such accounts is
classified as restricted cash.
Cash in VAT accounts at PLN 1,911 thousand (PLN 474 thousand as at 31 December 2020) is also restricted cash due to
regulatory restrictions on the availability of cash in such accounts for current payments.
The Group reclassified the IRGiT clearing collateral from cash and cash equivalents to other assets in financial assets
measured at amortised cost". For a full description of the reclassification, see Note 6.11.3.
The table below presents the risk classification of cash and cash equivalents. Due to the fact that the Exchange 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.
As at 31 December
2021
2020
Aaa
3
-
Aa/AA2
-
132,204
A+
220
89
A-
270,700
200,422
Ba/BBB+
78,401
78,303
Total
349,324
411,018
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 2,412 thousand
as at 31 December 2021 and PLN 1,696 thousand as at 31 December 2020.
Contract liabilities include annual and quarterly fees paid by market participants as well as fees for introduction of instruments
into trading.
43
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. 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
2021
2020
Listing
7,249
6,776
Total financial market
7,249
6,776
Other revenue
202
-
Total non-current
7,451
6,776
Trading
1,313
4,178
Listing
3,488
952
Information services and revenue
from the calculation of reference rates
2
55
Total financial market
4,803
5,185
Trading
506
2,378
Total commodity market
506
2,378
Other revenue
258
23
Total current
5,567
7,586
Total contract liabilities
13,018
14,362
* Data for the comparative period have been restated. See Note 6.11.
3.7. 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.
3.7.1. SHARE CAPITAL
As at 31 December 2021 and as at 31 December 2020, 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 2021 and as at 31 December 2020.
44
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
3.7.2. OTHER RESERVES
As at
1 January
2021
Change on
revaluation
As at
31 December
2021
Revaluation
(7)
6
(1)
Deferred tax
2
(1)
1
Total
(5)
5
-
Revaluation
1,337
(6,883)
(5,546)
Total for entities measured by the equity method
1,337
(6,883)
(5,546)
Total capital from revaluation of financial assets measured at fair
value through other comprehensive income
1,332
(6,878)
(5,546)
Revaluation
(336)
320
(16)
Deferred tax
66
(62)
4
Total capital from actuarial gains/losses
(269)
258
(11)
Total other reserves
1,063
(6,620)
(5,557)
3.7.3. RETAINED EARNINGS
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.
Reserve
capital
Other
reserves
Retained
earnings
Profit for
the period
Total
retained
earnings
As at 1 January 2021 (restated)*
117,223
370,949
212,156
152,256
852,584
Distribution of the net profit for the year ended
31 December 2020
1,655
64,192
86,409
(152,256)
-
Dividend
-
-
(104,930)
-
(104,930)
Net profit for 2021
-
-
-
161,249
161,249
As at 31 December 2021
118,878
435,141
193,635
161,249
908,903
* Data for the comparative period have been restated. See Note 6.11.
Reserve
capital
Other
reserves
Retained
earnings
Profit for the
period
Total retained
earnings
As at 1 January 2020 (restated)*
116,556
356,281
207,739
120,485
801,061
Distribution of the net profit for the year ended
31 December 2019
667
14,668
105,150
(120,485)
-
Dividend
-
-
(100,733)
-
(100,733)
Net profit for 2020
-
-
-
152,256
152,256
As at 31 December 2020
(restated)
117,223
370,949
212,156
152,256
852,584
* Data for the comparative period have been restated. See Note 6.11.
45
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
3.7.4. DIVIDEND
As required by the Commercial Companies Code, the amounts to be divided between the shareholders may not exceed the
net profit reported for the last financial year plus retained earnings, less accumulated losses and amounts transferred to
reserves that are established in accordance with the law or the Articles of Association that may not be earmarked for the
payment of dividend.
On 21 June 2021, the Annual General Meeting of the Exchange passed a resolution to distribute the Company’s profit for
2020, including a dividend payment of PLN 104,930 thousand. The dividend per share was PLN 2.50. The dividend record
date was 23 July 2021 and the dividend was paid on 5 August 2021. The dividend paid to the State Treasury was PLN 36,721
thousand.
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.
In 2021, BondSpot S.A. paid outstanding dividend to a minority shareholder at PLN 29 thousand due for the years 2014-
2016.
3.7.5. EARNINGS PER SHARE
There are no dilutive instruments in the Group.
Year ended 31 December
2021
2020
Net profit for the period
161,276
152,270
Weighted average number of ordinary shares (in thousands)
41,972
41,972
Basic/diluted earnings per share (in PLN)
3.84
3.63
3.8. 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.
The fair value of the bonds was recognised based on quoted prices as at 31 December 2021 and as at 31 December 2020
(level 1 in the fair value hierarchy).
As at 31 December
2021
2020
Series C bonds
-
124,810
Series D and E bonds
-
119,928
Total non-current
-
244,738
Series C bonds
125,746
683
Series D and E bonds
120,532
484
Total current
246,278
1,167
Total liabilities under bond issue
246,278
245,905
46
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
Year ended 31 December 2021
Opening
balance
Interest
accrued
Interest paid
Cost incurred
Cost settled
Closing
balance
Principal
244,929
-
-
-
-
244,929
Interest
1,551
5,440
(5,452)
-
-
1,539
Cost of issuance
(575)
-
-
(1)
386
(190)
Total liabilities under bond
issue
245,905
5,440
(5,452)
(1)
386
246,278
Year ended 31 December 2020
Opening
balance
Interest
accrued
Interest paid
Cost incurred
Cost settled
Closing
balance
Principal
244,929
-
-
-
-
244,929
Interest
2,316
6,535
(7,300)
-
-
1,551
Cost of issuance
(965)
-
-
(1)
391
(575)
Total liabilities under bond
issue
246,280
6,535
(7,300)
(1)
391
245,905
The table below presents the key parameters of bonds in issue.
Issued date
Redemption date
Total par
value
Currency
Interest
Coupon
Series C bonds
6.10.2015
6.10.2022
125,000
PLN
3.19%
6M
Series D bonds
02.01.2017
31.01.2022
60,000
PLN
WIBOR 6M + 0.95%
6M
Series E bonds
18.01.2017
31.01.2022
60,000
PLN
WIBOR 6M + 0.95%
6M
The table below presents the fair value of bonds in issue.
As at 31 December
2021
2020
Fair value of series C bonds
126,491
130,440
Fair value of series D and E bonds
120,588
121,147
Total fair value of bonds in issue
247,079
251,587
3.9. 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.
47
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. 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
2021
2020
Retirement benefits
915
1,072
Other employee benefits
603
44
Non-current
1,518
1,116
Retirement benefits
133
112
Other employee benefits
30,973
23,638
Current
31,106
23,750
Total benefits in the statement of financial position
32,624
24,866
3.9.1. 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.
As at 31 December
2021
2020
Retirement benefits - opening balance
1,184
982
Current service cost
174
143
Interest cost
15
20
Gains and losses on the benefits scheme
(8)
-
Actuarial losses/(gains) shown in other comprehensive income due to change of:
(317)
55
- financial assumptions
(244)
95
- demographic assumptions
-
(33)
- other assumptions
(73)
(7)
Total change shown in comprehensive income
(136)
218
Benefits paid
-
(16)
Retirement benefits - closing balance
1,048
1,184
As at 31 December
2021
2020
Discount rate
3.6%
1.2%
Expected 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
6,2% - 9,7%
6,5% - 10,1%
48
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. 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 EMPLOYEE BENEFITS
Year ended 31 December 2021
Opening
balance
Set up
Used
Reclassified
Released
Closing
balance
Annual and discretionary bonuses
19,401
21,355
(18,161)
-
(150)
22,445
Benefits after termination
22
-
(22)
-
-
-
Unused holiday leave
3,864
4,282
(3,005)
-
-
5,141
Overtime
246
202
(312)
-
-
136
Unpaid remuneration
105
3,251
(105)
-
-
3,251
Total current
23,638
29,090
(21,605)
-
(150)
30,973
Annual and discretionary bonuses
44
626
(67)
-
-
603
Total non-current
44
626
(67)
-
-
603
Total other employee benefits
payable
23,682
29,716
(21,672)
-
(150)
31,576
Year ended 31 December 2020
Opening
balance
Set up
Used
Reclassified
Released
Closing
balance
Annual and discretionary bonuses
14,330
18,370
(13,248)
11
(62)
19,401
Benefits after termination
88
22
(88)
-
-
22
Unused holiday leave
2,487
3,510
(2,133)
-
-
3,864
Overtime
57
246
(57)
-
-
246
Unpaid remuneration
113
105
(113)
-
-
105
Total current
17,076
22,252
(15,639)
11
(62)
23,638
Annual and discretionary bonuses
80
-
(25)
(11)
-
44
Total non-current
80
-
(25)
(11)
-
44
Total other employee benefits
payable
17,155
22,252
(15,664)
-
(62)
23,682
3.10. 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.
49
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. 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
2021
2020
PCR
3,770
4,145
Agricultural Market
488
821
New Trading Platform Project
13,243
6,377
GPW Data Project
2,518
910
Private Market
532
208
Total non-current
20,551
12,461
PCR
375
375
Agricultural Market
333
333
GPW Data Project
-
1,537
GPW Data Project
-
580
Telemetria Project
1,191
-
Private Market
1,652
87
Total current
3,551
2,912
Total accruals and deferred income
24,102
15,373
3.11. OTHER LIABILITIES
Other liabilities as at 31 December 2021 mainly consist of VAT liabilities.
As a co-founder of the Polish National Foundation established by 17 State-owned companies in 2016 (“PFN”), the Exchange
is required to contribute annual payments towards the statutory mission of PFN, totalling 11 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 charged to expenses in 2016 and is recognised over time. The liability of the Exchange to PFN was
PLN 7,062 thousand as at 31 December 2021 (PLN 8,355 thousand as at 31 December 2020).
As at 31 December
2021
2020
Security deposits - collateral on the balancing market
985
-
Liabilities to the Polish National Foundation
5,731
7,062
Perpetual usufruct liabilities
3,561
5,188
Total non-current
10,277
12,250
Dividend payable
9
287
VAT payable
43,201
54,793
Liabilities in respect of other taxes
3,067
4,000
Contracted investments
5,387
5,476
Liabilities to the Polish National Foundation
1,331
1,293
Liabilities to the Polish Financial Supervision Authority
-
17
Other liabilities
5,027
3,014
Total current
58,022
68,880
Total other liabilities
68,299
81,130
50
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
3.12. 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.
As at 31 December
2021
2020
Trade payables to associates
91
68
Trade payables to other entities, accruals and deferred income
13,613
15,049
Total trade payables
13,704
15,117
In the opinion of the Exchange Management Board, due to the short due dates of trade payables, the carrying amount of
trade payables is similar to the fair value.
3.13. 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 is able to 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 Group 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.
Deferred tax (asset)/liability
As at 1
January 2021
(restated*)
(Credited)/
Debited in
profit
(Credited)/De
bited in other
comprehensiv
e income
As at 31 December 2021
(Asset)/
Liability
Deferred tax
asset
Deferred
tax liability
Difference between accounting and
tax value of property, plant and
equipment and intangible asset
10,091
(2,095)
-
7,996
-
7,996
Impairment loss on investment in
other entities
(1,228)
-
1
(1,227)
1,227
-
Employee benefits
(4,472)
(1,754)
60
(6,161)
6,161
-
51
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
Cost estimates
(880)
189
-
(691)
691
-
Deferred income
(2,646)
(157)
-
(2,803)
2,803
-
Impairment loss on trade
receivables
(1,192)
431
-
(761)
761
-
Interest and costs of bond issue
(185)
(71)
-
(256)
256
-
Other
(263)
232
-
(31)
31
-
Total deferred tax
(asset)/liability
(775)
(3,225)
61
(3,934)
11,930
7,996
Offset
-
-
-
-
(7,757)
(7,757)
Total deferred tax
(asset)/liability (net)
-
-
-
-
4,173
239
* Data for the comparative period have been restated. See Note 6.11.
Deferred tax (asset)/liability
As at
1 January
2020
(reported)
Corrections
As at
1 January
2020
(restated)
(Credited)
/ Debited
in profit
(Credited)
/Debited
in other
compre-
hensive
income
As at 31 December 2020
(Asset)/
Liability
Deferred
tax
asset
Deferred
tax
liability
Difference between
accounting and tax value of
property, plant and
equipment and intangible
asset
11,869
-
11,869
(1,778)
-
10,091
-
10,091
Impairment loss on
investment in other entities
(1,227)
-
(1,227)
-
(1)
(1,228)
1,228
-
Employee benefits
(3,207)
-
(3,207)
(1,256)
(9)
(4,472)
4,472
-
Cost estimates
(699)
-
(699)
(181)
-
(880)
880
-
Deferred income
(1,104)
(1,446)
(2,550)
(96)
-
(2,646)
2,646
-
Impairment loss on trade
receivables
(963)
-
(963)
(229)
-
(1,192)
1,192
-
Interest and costs of bond
issue
(257)
-
(257)
72
-
(185)
295
109
Other
509
-
509
(773)
-
(263)
629
366
Total deferred tax
(asset)/liability
4,922
(1,446)
3,476
(4,241)
(10)
(775)
11,342
10,566
Offset
-
-
-
-
-
-
(8,454)
(8,454)
Total deferred tax
(asset)/liability (net)
-
-
-
-
-
-
2,888
2,113
* Data for the comparative period have been restated. See Note 6.11.
3.14. PROVISIONS FOR LIABILITIES AND OTHER CHARGES
Provisions for liabilities and other charges stood at PLN 28,837 thousand as at 31 December 2021 (including IRGiT’s VAT
provisions at PLN 28,771 thousand). Provisions for liabilities and other charges stood at PLN 26,844 thousand as at 31
December 2020 and related to IRGiT’s VAT (see Note 6.10).
52
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. 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.
Revenues from the service of introduction to trading are inseparable from the listing service; as a result, fees for introduction
to trading are recognised over time in the expected term of the agreement with the client (average listing period). Therefore,
a decision was made to retrospectively change the accounting treatment of revenue from fees for introduction of shares to
trading (see Note 6.11.1.). The Group determined an estimated period of 9 years for the listing service based on a historical
analysis of the average listing period of companies on the Main Market and New Connect. This estimate is subject to
uncertainty and will be reviewed at each reporting date.
Other sales revenue is measured at the transaction price specified in the contract. No significant financing component has
been identified due to the fact that sales have a payment term of 21 days, which is in line with market practice. Revenue is
recognised on a one-off basis when the performance obligation is met, which is when the payment becomes unconditionally
due and only a specified period of time is required to receive it. In rare cases, the Group grants deferred payment terms,
but never for more than 12 months; therefore, the transaction price is not adjusted for the impact of a significant financing
component.
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.
53
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
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
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.
The table below presents sales revenue by business line.
Year ended 31 December
2021
2020*
Financial market
254,688
256,944
Trading
177,895
185,272
Equities and other equity-related instruments
143,797
151,042
Derivatives
13,737
15,376
Other fees paid by market participants
8,353
7,488
Debt instruments
10,745
10,150
Other cash instruments
1,263
1,216
Listing
21,553
20,255
Listing fees
17,165
16,916
Fees for admission and introduction and other fees
4,388
3,339
Information services
55,240
51,417
Real-time data
51,991
48,121
Historical and statistical data and indices
3,249
3,296
Commodity market
149,957
144,331
Trading
74,682
72,305
Transactions in electricity
19,068
18,945
Spot
5,321
4,083
Forward
13,747
14,862
Transactions in gas
14,970
12,658
Spot
2,944
2,634
Forward
12,026
10,024
Transactions in property rights to certificates of origin
25,068
27,185
Spot
25,068
27,185
Transactions in agricultural and food products
22
-
Other fees paid by market participants
15,554
13,517
Operation of the register of certificates of origin
23,793
24,326
Clearing
50,409
46,756
Information services
1,073
944
Other revenue
2,926
2,684
Total sales revenue
407,571
403,959
* Data for the comparative period have been restated. See Note 6.11.
54
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
Year ended 31 December
2021
% share
2020
% share
Revenue from foreign customers
125,552
30.8%
165,240
40.91%
Revenue from local customers
282,019
69.2%
238,719
59.09%
Total sales revenue
407,571
100.0%
403,959
100%
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.
Note
Year ended 31 December
2021
2020*
Depreciation and amortisation, incl.:
35,245
36,217
- capitalised depreciation and amortisation charges
(638)
(436)
Salaries
4.2.1.
85,375
74,011
Other employee costs
4.2.1.
24,253
21,610
Rent and maintenance fees
4,845
4,334
Fees and charges, including:
16,958
15,528
- fees paid to PFSA
6.4.1.
14,515
13,874
External service charges
4.2.2.
57,264
49,676
Other operating expenses
5,427
4,775
Total operating expenses
229,367
206,150
* Data for the comparative period have been restated. See Note 6.11.
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 2021. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
Year ended 31 December
2021
2020
Gross remuneration
52,659
48,872
Annual and discretionary bonuses
18,340
15,418
Retirement severance pay
190
163
Reorganisation severance pay
77
108
Non-competition
17
317
Other (including: unused holiday leave, overtime)
2,053
2,351
Total payroll
73,336
67,229
Supplementary payroll
12,039
6,782
Total employee costs
85,375
74,011
Year ended 31 December
2021
2020
Social security costs (ZUS)
12,328
11,637
Employee Pension Plan (PPE)
4,328
3,285
Other benefits (including medical services, lunch subsidies, sports, insurance, etc.)
7,597
6,688
Total other employee costs
24,253
21,610
Remuneration of the key management personnel is described in Note 6.5.
4.2.2. EXTERNAL SERVICE CHARGES
Year ended 31 December
2021
2020*
IT infrastructure maintenance
24,461
21,796
TBSP market maintenance services
1,574
1,562
Data transmission lines
4,061
3,952
Software modification
784
264
Total IT cost
30,880
27,574
Repair and maintenance of installations
1,026
878
Security
2,022
1,881
Cleaning
803
815
Phone and mobile phone services
312
260
Total office space and office equipment maintenance
4,163
3,834
International (energy) market services
-
1,275
Lease, rental and maintenance of vehicles
340
367
Transportation services
228
158
Promotion, education, market development
6,862
4,364
Market liquidity support
1,044
1,247
Advisory (including legal, business consulting, audit)
7,787
4,673
Information services
3,173
3,445
Training
1,041
1,273
Mail fees
95
87
Bank fees
124
198
Translation
424
380
Other
1,103
801
Total external service charges
57,264
49,676
* Data for the comparative period have been restated. See Note 6.11.
56
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. 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
Year ended 31 December
2021
2020*
Grants received
734
3,471
Gains on sale of property, plant and equipment
15
2
Annual correction of input VAT
-
372
Medical services reinvoiced to employees
539
481
Damages received
4
37
Cost reimbursement from URE/PSE
770
-
International markets - estimated revenue
822
-
Other
123
(151)
Total other income
3,007
4,212
* Data for the comparative period have been restated. See Note 6.11.
4.4. OTHER EXPENSES
Year ended 31 December
2021
2020
Donations
2,155
3,243
Loss on sale of property, plant and equipment
50
28
Damages, penalties, fines
3
-
Impairment of assets
-
4,222
Other
808
4,198
Total other expenses
3,016
11,691
In 2021, the Group made donations to:
Polish National Foundation – PLN 1,500 thousand (booked in expenses of 2016, see Note 3.13),
GPW Foundation – PLN 2,070 thousand,
Care and Education Centre, Franciszków – PLN 20 thousand,
Border Guards – PLN 20 thousand,
Children’s Friends Society – PLN 18 thousand,
European Foundation for Those in Need, Gorzów Wlkp. – PLN 14 thousand,
orphanages – PLN 12 thousand,
Bródno Hospital – PLN 1 thousand.
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),
GPW Foundation – PLN 1,350 thousand.
57
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
4.5. FINANCIAL INCOME
Selected accounting policies
Interest income is recognised on a time-proportionate basis using the effective interest rate method. Dividend income is
recognised at the moment of establishing the shareholders’ right to receive the payment.
Year ended 31 December
2021
2020
Income on financial assets presented as cash and cash equivalents
282
1,462
Income on financial assets presented as financial assets measured
at amortised cost
611
2,485
Interest on sublease receivables
7
12
Total income according to the effective interest rate method
900
3,959
Other financial income
97
2,206
Total financial income
997
6,166
Details concerning dividend received from subsidiaries are presented in Notes 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.
Year ended 31 December
2021
2020
Interest on bonds, including:
5,826
6,926
- accrued
374
(374)
- paid
5,452
7,300
Interest on lease liabilities
353
621
Interest on loans
52
-
Interest on tax payable, including:
1,964
11,448
- VAT provisions
1,927
11,376
Impairment loss on investment in other entities
-
583
Expected credit loss
411
-
Other financial expenses
1,151
1,149
FX differences
1,802
493
Total financial expenses
11,559
21,220
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;
58
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
dividend income which is not taxable;
grants which are not taxable.
Year ended 31 December
2021
2020*
Current income tax
35,704
42,045
Deferred tax
(3,225)
(4,241)
Total income tax
32,479
37,804
* Data for the comparative period have been restated. See Note 6.11.
Year ended 31 December
2021
2020*
Profit before income tax
193,755
190,074
Income tax rate
19%
19%
Income tax at the statutory tax rate
36,813
36,114
Tax effect of:
(4,334)
1,691
Non-tax deductible costs
1,656
4,834
Impairment of goodwill of a subsidiary
-
670
Non-taxable grants
(5)
(533)
Non-taxable share of profit of entities measured by the equity method
(4,631)
(2,992)
Other non-taxable income
28
(129)
Other adjustments
(1,382)
(159)
Total income tax
32,479
37,804
* Data for the comparative period have been restated. See Note 6.11.
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 TG was extended for another tax year,
from 1 January to 31 December 2021. By decision of 7 December 2021, the TG was extended for the year 2022.
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.
4.8. PHANTOM SHARES
On 29 April 2021, on the occasion of the 30
th
anniversary of the Company, the Exchange Management Board approved a
Phantom Share Programme (“Programme”) for GPW employees which will continue at least until 2031. The Programme
covers all GPW employees in employment as at 16 April 2021. Under the Programme, each employee in employment as at
16 April 2021 is eligible to receive the following:
a number of phantom shares defined under the Programme for the period from the start of employment with GPW
to 16 April 2021 – in total, 10,428 shares were allotted as at 16 April 2021,
59
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
another 4 phantom shares in each year of the Programme (provided that the GPW employee remains in employment
as at 16 April of such year) – the estimated number of such phantom shares was 10,301 as at 31 December 2021,
dividend, i.e., the number of phantom shares allotted to the employees times the dividend per GPW share in the
year determined by the GPW General Meeting,
the right to dividends from the shares held. Employees may, by 30 September each year, request a dividend
payment which will be made by 15 October each year. If an employee does not request a payment during the period
of employment, the payment is made upon termination of employment or retirement.
The Programme meets the criteria of a share-based payment programme and will be accounted for under IFRS 2 Share-
based Payment.
The liability in respect of shares allotted in successive years will be recognised in subsequent years of the Programme up to
2031 and measured as at each balance-sheet date depending on the closing price of GPW shares at the balance-sheet date
and the number of eligible employees. Differences of valuation against fair value as at each balance-sheet date will be
recognised in employee costs.
The Phantom Share Programme was recognised in these financial statements as follows:
PLN 603 thousand – liability under the Programme as at 31 December 2021, presented under Non-current liabilities
– Employee benefits payable in the statement of financial position (the part vested as at 16 April 2021, updated on
each anniversary of the programme),
PLN 140 thousand – liability under the Programme as at 31 December 2021, presented under Current liabilities –
Employee benefits payable in the statement of financial position (the dividend part and liabilities in respect of vested
benefits),
PLN 621 thousand – Programme cost in the 12-month period of 2021, presented in Employee costs in the statement
of comprehensive income.
The liability recognised as at 31 December 2021 will be increased with the value of future shares and dividends. The estimated
total dividend payable was PLN 486 thousand as at 31 December 2021 and the estimated amount of the Programme based
on a variable number of employees and a variable share price is PLN 1,224 thousand by the end of 2031.
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.
Year ended 31 December
2021
2020***
Depreciation of property, plant and equipment*
12,246
14,093
Amortisation of intangible assets**
17,614
16,693
Depreciation and amortisation of right-to-use assets
5,385
5,433
Total depreciation and amortisation charges
35,245
36,219
* In 2021 depreciation included depreciation charge capitalised to intangible assets at PLN 501 thousand, and in 2020, PLN 390 thousand.
** In 2021 amortisation included amortisation charge capitalised to intangible assets at PLN 137 thousand and in 2020, PLN 46 thousand.
*** Data for the comparative period have been restated. See Note 6.11.
Year ended 31 December
2021
2020
Impairment of other financial assets (Optiq)
-
4,222
(Gains)/losses on FX differences (valuation of accounts and deposits)
170
(544)
Impairment of investment in PAR
-
583
60
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
Sublease interest expense
(3)
(12)
Lease interest expense
368
621
Financial expense on the bond issue
383
389
Grants moved to cash flows from financing activities
(5,149)
(3,678)
Other
(1,354)
(101)
Total other adjustments
(5,585)
1,480
6. OTHER NOTES
6.1. FINANCIAL INSTRUMENTS
Year ended 31 December 2021
Interest
received/paid
Interest
accrued,
revaluation
and cost of
bond issue
Impairment
loss
Total shown
in net profit
Total shown in
other
comprehensive
income
Total shown in
the statement
of
comprehensive
income
Trade receivables (gross)
-
-
1,746
1,746
-
1,746
Equity instruments
365
107
-
472
5
477
Bank deposits
194
145
-
339
-
339
Current bank accounts
81
-
-
81
-
81
Total financial instruments (assets)
640
252
1,746
2,638
5
2,643
Current bank accounts
(5,452)
(374)
-
(5,826)
-
(5,826)
Total financial instruments (liabilities)
(5,474)
(374)
-
(5,848)
-
(5,848)
Total recognised in the statement of
comprehensive income
(4,834)
(122)
1,746
(3,210)
5
(3,205)
Year ended 31 December 2020
Interest
received/paid
Interest
accrued,
revaluation
and cost of
bond issue
Impairment
loss
Total shown
in net profit
Total shown in
other
comprehensive
income
Total shown in
the statement
of
comprehensive
income
Trade receivables (gross)
-
-
(950)
(950)
-
(950)
Equity instruments
-
-
(876)
(876)
(4)
(880)
Corporate bonds
1,428
(457)
-
971
-
971
Bank deposits
3,826
(1,129)
-
2,697
-
2,697
Loans granted
-
-
(507)
(507)
-
(507)
Current bank accounts
1,513
-
-
1,513
-
1,513
Total financial instruments (assets)
6,767
(1,586)
(2,333)
2,848
(4)
2,844
Bonds in issue
(7,300)
374
-
(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)
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
61
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
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
as well as related activities. The Group also organises an alternative trading system and engages in 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 other 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 in 2021.
The tables below present a reconciliation of the data analysed by the Exchange Management Board with the data shown in
these consolidated financial statements.
Year ended 31 December 2021
Financial
segment
Commodity
segment
Other
Total
segments
Exclusions
and
adjustments
Total
Sales revenue:
260,311
150,552
14,878
425,741
(18,170)
407,571
To third parties
254,688
149,957
2,926
407,571
-
407,571
Between segments
5,623
595
11,952
18,170
(18,170)
-
Operating expenses, including:
(175,231)
(71,451)
(1,833)
(248,515)
19,146
(229,367)
- depreciation and amortisation
(25,303)
(10,748)
(107)
(36,158)
913
(35,245)
Profit on sales
85,080
79,101
13,045
177,226
976
178,204
Gains on reversed impairment of
receivables/(Loss) on impairment of
receivables
1,066
680
-
1,746
-
1,746
62
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
Other income
1,608
2,501
4
4,113
(1,106)
3,007
Other expenses
(3,331)
(70)
-
(3,401)
385
(3,016)
Operating profit
84,423
82,212
13,049
179,684
255
179,941
Financial income, including:
102,972
59,014
1
161,987
(160,990)
997
- interest income
1,122
270
1
1,393
(493)
900
- dividend income
101,762
58,698
-
160,460
(160,462)
(2)
Financial expenses, including:
(7,420)
(4,757)
-
(12,177)
618
(11,559)
- interest cost
(6,261)
(595)
4
(6,852)
584
(6,268)
- VAT provisions
-
(1,927)
-
(1,927)
-
(1,927)
Share of profit/(loss) of entities measured
by the equity method
-
-
-
-
24,376
24,376
Profit before income tax
179,975
136,469
13,050
329,492
(135,741)
193,755
Income tax
(25,947)
(6,591)
59
(32,479)
-
(32,479)
Profit for the period
154,028
129,878
13,109
297,013
(135,741)
161,276
As at 31 December 2021
Financial
segment
Commodity
segment
Other
Total
segments
Adjustments
for
investments
measured
by the
equity
method
Other
exclusions
and
adjustments
Total
segments
and
exclusions
Total assets
987,301
446,479
4,632
1,438,412
219,173
(246,897)
1,410,688
Total liabilities
346,424
202,832
661
549,917
-
(107,086)
442,831
Net assets
(assets - liabilities)
640,877
243,647
3,971
888,495
219,173
(139,811)
967,857
Year ended 31 December 2020
(restated)
Financial
segment
Commodity
segment
Other
Total
segments
Exclusions
and
adjustments
Total
Sales revenue:
262,272
144,225
15,209
421,706
(17,747)
403,959
To third parties
256,944
143,566
3,449
403,959
-
403,959
Between segments
5,328
659
11,760
17,747
(17,747)
-
Operating expenses, including:
(152,472)
(69,787)
(1,427)
(223,686)
17,536
(206,150)
- depreciation and amortisation
25,957
11,599
141
37,697
-
37,697
Profit on sales
109,800
74,438
13,782
198,020
(211)
197,809
Gains on reversed impairment of
receivables/(Loss) on impairment of
receivables
118
(1,068)
-
(950)
-
(950)
Other income
1,444
2,859
-
4,303
(91)
4,212
Other expenses
(8,029)
(139)
-
(8,168)
(3,523)
(11,691)
Operating profit
103,333
76,090
13,782
193,205
(3,825)
189,380
Financial income, including:
85,899
11,429
4
97,332
(91,166)
6,166
- interest income
2,773
1,467
4
4,244
(285)
3,959
63
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
- dividend income
80,766
9,959
-
90,725
(90,725)
-
Financial expenses, including:
(9,683)
(12,506)
(48)
(22,237)
1,017
(21,220)
- interest cost
(7,616)
(484)
(46)
(8,146)
527
(7,619)
- VAT provisions
-
(11,376)
-
(11,376)
-
(11,376)
Share of profit/(loss) of entities measured
by the equity method
-
-
-
-
15,748
15,748
Profit before income tax
179,549
75,013
13,738
268,300
(78,226)
190,074
Income tax
(23,117)
(14,695)
8
(37,804)
-
(37,804)
Profit for the period
156,432
60,318
13,746
230,496
(78,226)
152,270
As at 31 December 2020
(restated)
Financial
segment
Commodity
segment
Other
Total
segments
Adjustments
for
investments
measured
by the
equity
method
Other
exclusions
and
adjustments
Total
segments
and
exclusions
Total assets
1,080,648
231,585
3,937
1,316,170
208,743
(159,441)
1,365,472
Total liabilities
395,981
74,008
695
470,684
-
(23,341)
447,341
Net assets
(assets - liabilities)
684,667
157,577
3,242
845,486
208,743
(136,100)
918,131
Detailed information on sales revenue within each operating segment is presented in Note 4.1.
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 3.10, income in respect of grants is presented in
Note 4.3, and contingent liabilities and grant liabilities in respect of grants are presented in the table in Note 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 advanced technical parameters. The amount of the grant in the New Trading
System project will be PLN 30.3 million, the estimated cost of the project is PLN 90 million, the project has not been completed
as at 31 December 2021.
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. The amount of the grant in
64
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
the GPW Data project will be PLN 4.2 million, the estimated cost of the project is PLN 8.3 million, the project has not been
completed as at 31 December 2021.
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
TGE 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. The amount of the grant in the PCR project was
PLN 7.0 million, the estimated cost of the project is PLN 10,791 thousand, the project has been completed as at 31 December
2021.
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 cost of the project amounted to PLN 2,565 thousand, the project has been completed as at 31 December
2021.
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. The amount of the grant in the GPW Private Market project will be PLN
8.5 million, the estimated cost of the project is PLN 12.6 million, the project has not been completed as at 31 December
2021.
TeO
On 4 October 2021, GPW signed an agreement with the National Centre for Research and Development (“NCBiR”) to co-
finance work related to the development of the TeO system - a multi-module auction platform designed for comprehensive
handling of media market transactions.
The aim of the project is to develop an innovative TeO Platform. The new solution will be designed to profile TV users and
sell and display targeted advertising on linear TV. The amount of the grant in the project will be PLN 13.3 million, the
estimated cost of the project is PLN 33.3 million, the project has not been completed as at 31 December 2021.
Gospostrateg
On 27 October 2021, as a member of a consortium comprising the Mazowieckie Voivodeship as Leader and the Warsaw
School of Economics, GPW concluded an agreement with the National Centre for Research and Development for the
implementation of the Gospostrateg project.
The main objective of the project is to transform the Mazowieckie Voivodeship into an accelerator of global enterprises by
building a knowledge repository of key global markets and developing and implementing an effective model of co-operation
between administration, science and business taking into account the conditions of the Mazowieckie Voivodeship. The amount
of the grant in the Gospostrateg project will be PLN 0.3 million, the estimated cost of the project is PLN 7.9 million, the
project has not been completed as at 31 December 2021.
PCOL
On 4 November 2021, GPW signed an agreement with the National Centre for Research and Development to co-finance the
Polish Digital Logistics Operator (“PCOL”) project in the amount of PLN 5.4 million. The estimated total project cost is PLN
9.3 million.
PCOL is a project for an innovative logistics platform based on artificial intelligence to optimise costs in areas related to
transport and logistics services for State-owned companies as well as private companies which will in the future use the
65
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
services and solutions offered. The grant will be used to finance research and development work related primarily to the
development of innovative technologies based on artificial intelligence. The amount of the grant in the PCOL project will be
PLN 5.4 million, the estimated cost of the project is PLN 9.3 million, the project has not been completed as at 31 December
2021.
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 applies the exemption under IAS 24 and 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 14,515 thousand in 2021 and PLN 13,874 thousand in 2020.
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 3.11. and 4.4.
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.
66
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. 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 2021
Year ended 31 December 2021
Receivables
Trade payables and
other liabilities
Sales revenue or
sublease interest
Operating expenses
KDPW Group:
-
-
3
122
other
-
-
3
122
Centrum Giełdowe:
-
4,287
-
4,570
leases
-
3,813
-
2,095
other
-
474
-
2,475
PAR:
50
-
22
40
leases
50
-
2
-
other
-
-
20
40
Total
50
4,287
25
4,732
As at 31 December 2020
Year ended 31 December 2020
Receivables
Trade payables and
other liabilities
Sales revenue or
sublease interest
Operating expenses
KDPW Group:
3
-
22
60
other
3
-
22
60
Centrum Giełdowe:
-
6,185
-
5,543
leases
-
6,117
-
2,148
other
-
68
-
3,395
PAR:
93
-
33
-
leases
88
-
6
-
other
5
-
27
-
Total
96
6,185
55
5,603
Receivables from associates and joint ventures were not written off as uncollectible, with the exception of receivables under
a loan grated to PAR (see below), or provided for in the year ended 31 December 2021 and 31 December 2020.
Dividend from associates
On 18 June 2021, the Annual General Meeting of CG decided to allocate a part of the 2020 profit equal to PLN 1,700 thousand
to a dividend payment. The dividend paid to the Exchange on 23 July 2021 was PLN 421 thousand. In 2020, CG paid dividend
for 2019 at PLN 2,067 thousand, including dividend paid to the Exchange at PLN 512 thousand.
On 29 June 2021, the Annual General Meeting of KDPW decided to allocate a part of the 2020 profit equal to PLN 19,925
thousand to a dividend payment. The dividend paid to the Exchange on 3 September 2021 was PLN 6,641 thousand. In
2020, KDPW paid dividend for 2019 at PLN 15,561 thousand, including dividend paid to the Exchange at PLN 5,187 thousand.
Loans and advances
As at 31 December 2021, the carrying amount of loans granted to PAR was 0 (impairment loss of PLN 832 thousand), of
which the amount of the impairment loss on the loan equal to PLN 507 thousand was charged to 2020 and the amount of
PLN 325 thousand was charged to 2021. The carrying amount of the loans granted at 31 December 2020 was 0 (impairment
loss of PLN 507 thousand). For more information, see GPW’s financial statements for 2020.
On 30 June 2021, an annex was signed to the agreement concerning the loan granted to PAR by GPW in September 2020.
In accordance with the amendments introduced by the annex, the interest for the period from the date of the loan to 30
June 2021 was capitalised as at 30 June 2021 and added to the loan amount. The interest for the period from 1 July 2021
to 30 June 2022 will be calculated in accordance with the existing provisions of the agreement. The loan and accrued interest
will be repaid in a single payment by 30 June 2022.
67
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
6.4.3. OTHER TRANSACTIONS
Transactions with the key management personnel
In 2021 and 2020 there were no transactions with members of the key management personnel in the Group apart from
those described in note 6.5.
Książęca 4 Street Tenants Association
In 2021 and in 2020, the Exchange concluded transactions with the Książęca 4 Street Tenants Association of which it is a
member. The expenses amounted to PLN 4,719 thousand in 2021 and PLN 4,160 thousand in 2020. 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 130
thousand in 2021 and PLN 13 thousand in 2020.
GPW Foundation
In 2021, GPW donated PLN 2,070 thousand (in 2020 – PLN 1,179 thousand) to the GPW Foundation, received an income of
PLN 236 thousand (in 2020 – PLN 127 thousand) from the Foundation, and paid the Foundation’s costs of PLN 54 thousand
(in 2020 – PLN 1 thousand). As at 31 December 2021, the Exchange’s receivables from the GPW Foundation stood at PLN
39 thousand and its payables to the Foundation at PLN 0 thousand (as at 31 December 2020 – PLN 63 thousand and PLN
143 thousand, respectively).
Polish National Foundation
Payments and transactions with PFN are described in Notes 3.12. 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 their appraisal of the performance of individual targets and the results of the Companies, 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 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
2021 and 2020, respectively.
The table concerning remuneration of the key management personnel does not present social security contributions paid by
the employer.
Year ended 31 December
2021
2020
Base salary
1,613
1,728
Variable pay
1,627
1,780
Bonus
-
14
Other benefits
286
352
Benefits after termination
-
185
Total remuneration of the Exchange Management Board
3,526
4,059
Remuneration of the Exchange Supervisory Board
581
550
Remuneration of the Management Boards of other GPW Group companies
3,895
3,904
Remuneration of the Supervisory Boards of other GPW Group companies
899
1,004
Total remuneration of the key management personnel
8,901
9,517
68
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. 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 2021, due (not paid) bonuses and variable remuneration of the key management personnel stood at PLN
2,949 thousand and concerned bonuses for 2017-2021. The cost was shown in the statement of comprehensive income for
2017-2021.
As at 31 December 2020, due (not paid) bonuses and variable remuneration of the key management personnel stood at PLN
3,292 thousand and concerned bonuses for 2016-2020. The cost was shown in the statement of comprehensive income for
2016-2020.
6.6. CONTRACTED INVESTMENTS
As at 31 December
2021
2020
Contracted investments in property, plant and equipment
65
169
Contracted investments in intangible assets
3,983
912
Total contracted investments
4,048
1,081
Contracted investments in plant, property and equipment included mainly investments in IT hardware as at 31 December
2021 and as at 31 December 2020.
Contracted investments in intangible assets included mainly investments in the controlling system, the Wibix system, and
the implementation of software supporting the exchange of information with commodity market participants
as at 31 December 2021. Contracted investments in intangible assets included the GRC system, the new Indexator and
Microsoft Office licences as at 31 December 2020.
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.
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
resources of the IRGiT clearing guarantee system are not assets of the Group and neither are they presented under cash
assets of the Group.
As at 31 December 2021
As at 31 December 2020
Cash in IRGiT
bank accounts
Cash in clients'
bank accounts
Cash in IRGiT
bank accounts
Cash in clients'
bank accounts
Deposits
1,607,503
1,947,379
790,294
479,631
Margins
6,188,750
1,181,855
1,151,543
317,505
Guarantee funds
161,672
21,323
210,854
45,461
Total
7,957,925
3,150,557
2,152,691
842,597
69
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. 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
2021
2020
Non-monetary collateral classified as margins
16,158,373
1,279,465
6.8. GUARANTEES
As at 31 December 2021, the Group had bank guarantees issued in favour of:
NordPool at EUR 5.6 million commencing on 1 July 2021 and valid until 30 June 2022,
Slovenská Elektrizačná Prenosová Sústava (SEPS) at EUR 0.5 million commencing on 17 June 2021 and valid
until 30 June 2022,
ČEPS at EUR 1.5 million commencing on 1 July 2021 and valid until 30 June 2022,
European Commodity Clearing AG (ECC) at EUR 3.0 million commencing on 1 July 2021 and valid until 30 June
2022.
The changes in the amounts result from the annexes signed in September 2021 reducing the amounts of the 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.
6.9. CONTINGENT ASSETS AND LIABILITIES
6.9.1. CONTINGENT ASSETS
In September 2019, TGE submitted corrections of CIT returns and payments for 2012-2016 and paid the resulting amounts
due together with interest. 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. 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 2021 (including PLN 1.9 million
principal and PLN 0.7 million interest). 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. On 14 April 2021, the Regional Administrative Court in
Warsaw in an in camera session dismissed TGE’s appeal and upheld the interpretation. TGE appealed against the Court’s
decision in cassation on 25 June 2021 and the final decision is pending.
6.9.2. CONTINGENT LIABILITIES
In connection with the implementation of the projects New Trading System, GPW Data, GPW Private Market, TEO and PCOL,
the Exchange presented five own blank bills of exchange to NCBR securing obligations under the projects’ co-financing
agreements. According to the agreements and the bill-of-exchange declarations, NCBR may 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 2021, the Group recognised a contingent liability in respect of an overdue VAT correction. 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 (see: Note 6.10).
The Group had bank guarantees as at 31 December 2021 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.
70
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
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. On 5 December
2020, IRGiT filed for cassation with the Supreme Administrative Court in Warsaw, and supplemented it on 15 April 2021 with
reference to recent CJEU case-law, not yet available at the date of the cassation, which fully endorses the cassation pleas
raised by IRGiT.
In this respect, IRGiT developed a tax strategy together with external tax advisors.
Due to uncertainty concerning the timing of input and output VAT in all open periods and concerning the amount of the
aforementioned potential VAT payable, guided by the principles of prudence, in accordance with IAS 37 Provisions,
Contingent Liabilities and Contingent Assets, provisions were set up against interest to be accrued in the event that VAT
deduction periods are shifted in the amount PLN 28.8 million as at 31 December 2021 (PLN 26.8 million as at 31 December
2020). As a result of the provisions set up, PLN 1.9 million was charged to the Group’s financial expenses in 2021 (PLN 11.4
million in 2020). The provisions represent the best possible estimate of the potential liability as at 31 December 2021 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.
From the tax perspective, there is a risk arising from the statute of limitation (five years) concerning the recognition of
output VAT reported in November 2016: once recognised, due to the application of the lex specialis concerning electricity
and gas deliveries, the tax would be deferred to December 2016 and consequently recognised for a second time without the
right to correct the accounts for November, which would be in direct violation of the principle of VAT neutrality. According to
regulations, if a liability arises in December, it does not expire until 1 January of the sixth consecutive 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). Literal application of those rules could however result in double VAT imposed on the Company.
Consequently, acting in the interest of GPW shareholders, pursuant to point 92 of IAS 37, the Group is not disclosing the
estimated amount of the potential payable.
6.11. CORRECTIONS OF ERRORS
6.11.1. FEES FOR INTRODUCTION OF SHARES TO TRADING
When preparing the financial statements for H1 2021, the recognition of revenue from fees for introduction of shares to
trading was reviewed. As a result of the analysis, in line with the IFRIC agenda decision of January 2019 Assessment of
promised goods or services, it was determined in the light of IFRS 15 Revenue from Contracts with Customers that the
service of introduction to trading is inextricably linked to the listing service. As a result, it was decided that revenue from
fees for introduction to trading will be recognised over time during the expected term of contracts with customers (average
listing period). Accordingly, the accounting recognition of revenue from fees for introduction of shares to trading was modified
retrospectively. The Group restated the comparative figures presented in these financial statements.
The Exchange defined the average period of provision of the listing service equal to 9 years following a historical analysis of
the average period of listing of companies on the Main Market and NewConnect. The estimate is subject to uncertainty and
will be reviewed as at each reporting date.
6.11.2. RIGHT OF PERPETUAL USUFRUCT OF LAND
When preparing the financial statements for H1 2021, the recognition of the Exchange’s share in the right of perpetual
usufruct of land at 4, Książęca St., Warsaw, was reviewed. As a result, it was determined that the share does not meet the
criteria of leases under IFRS 16 Leases. As a result, it was reclassified from “Right-to-use assets” to “Intangible assets” and
from “Lease liabilities” to “Other liabilities”. The useful life of the asset was reviewed and its depreciation period was extended
to 2093. The corrections are retrospective and the Group restated the comparative data presented in these financial
statements.
6.11.3. IRGIT CLEARING COLLATERAL
As a result of a review under IAS 7 Statement of Cash Flows, it was determined that restricted cash in the amount of PLN
10 million, which constitutes an additional risk management tool at IRGiT and is held for the purpose of securing the liquidity
of clearing of exchange transactions by IRGiT in cases specified in the Rules of the Exchange Clearing House, does not meet
the definition of cash equivalents. Accordingly, a presentation change has been made in these consolidated financial
statements by reclassifying such cash from “Cash and cash equivalents” to “Financial assets measured at amortised cost”.
The corrections are retrospective and the Group restated the comparative data presented in these financial statements.
6.11.4. ENERGY TRANSACTIONS ON INTERNATIONAL MARKETS (“INTERNATIONAL MARKETS”)
The Group reviewed the presentation of revenue and expenses related to TGE’s participation in the single European energy
market in terms of their economic substance. As a result of the review, the presentation of such transactions was changed.
Revenue and expenses from such transactions were previously presented under “Operating income”, “Other revenue” and
“Operating expenses” but are now recognised on a net basis in a single line: “Operating expenses”. The corrections are
retrospective and the Group restated the comparative data presented in these financial statements.
71
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
The tables below present the impact of the corrections described above on the statement of financial position, the statement
of cash flows, and the statement of comprehensive income for each relevant period.
As at 31
December
2020
(reported)
Corrections
31 December
2020
(restated*)
Cash
Perpetual
usufruct
of land
Fees for
introduction
of shares to
trading
International
markets
Non-current assets, including:
588,819
-
1,845
1,446
-
592,110
Right-to-use assets
18,031
-
(4,047)
-
-
13,984
Intangible assets
247,308
-
5,892
-
-
253,200
Deferred tax asset
1,442
-
-
1,446
-
2,888
Current assets, including:
773,362
-
-
-
-
773,362
Financial assets measured at amortised
cost
294,986
10,145
-
-
-
305,131
Cash and cash equivalents
421,163
(10,145)
-
-
-
411,018
TOTAL ASSETS
1,362,181
-
1,845
1,446
-
1,365,472
Equity:
924,169
-
126
(6,164)
-
918,131
Equity of shareholders of the parent
entity:
923,550
-
126
(6,164)
-
917,512
Share capital
63,865
-
-
-
-
63,865
Other reserves
1,063
-
-
-
-
1,063
Retained earnings
858,622
-
126
(6,164)
-
852,584
Supplementary capital
117,223
-
-
-
-
117,223
Reserves
370,949
-
-
-
-
370,949
Earnings of previous years
219,024
-
64
(6,932)
-
212,156
This period's net profit
151,426
-
62
768
-
152,256
Non-current liabilities, including:
281,570
-
1,771
5,606
-
288,947
Lease liabilities
11,298
-
(1,805)
-
-
9,493
Contract liabilities
1,170
-
-
5,606
-
6,776
Other liabilities
8,674
-
3,576
-
-
12,250
Current liabilities, including:
156,442
-
(52)
2,004
-
158,394
Lease liabilities
5,463
-
(67)
-
-
5,396
Contract liabilities
5,582
-
-
2,004
-
7,586
Other liabilities
68,865
-
15
-
-
68,880
TOTAL EQUITY AND LIABILITIES
1,362,181
-
1,845
1,446
-
1,365,472
* Data for the comparative period have been restated. See Note 6.11.
72
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
As at 1
January
2019
(reported)
Corrections
As at 31
December
2019
(restored)
Cash
International
markets
Perpetual
usufruct
of land
Fees for
introduction
of shares to
trading
Non-current assets, including:
586,114
-
-
1,733
1,626
589,473
Right-to-use assets
22,725
-
-
(4,240)
-
18,485
Intangible assets
246,649
-
-
5,973
-
252,622
Deferred tax asset
464
-
-
-
1,626
2,090
Current assets, including:
670,703
-
-
-
-
670,703
Financial assets measured at amortised cost
328,998
10,145
-
-
-
339,143
Cash and cash equivalents
285,274
(10,145)
-
-
-
275,129
TOTAL ASSETS
1,256,817
-
-
1,733
1,626
1,260,176
Equity:
873,489
-
-
63
(6,932)
866,620
Equity of shareholders of the parent entity:
872,884
-
-
63
(6,932)
866,015
Share capital
63,865
-
-
63,865
Other reserves
1,089
-
-
1,089
Retained earnings
807,930
-
-
63
(6,932)
801,061
Supplementary capital
116,556
-
-
-
-
116,556
Reserves
356,281
-
-
-
-
356,281
Earnings of previous years
215,773
-
-
-
(8,034)
207,739
This period's net profit
119,320
-
-
63
1,102
120,485
Non-controlling interests
605
-
-
-
-
605
Non-current liabilities, including:
283,500
-
-
1,720
6,433
291,653
Lease liabilities
16,204
-
-
(1,870)
-
14,334
Contract liabilities
572
-
-
-
6,433
7,005
Other liabilities
9,639
-
-
3,590
-
13,229
Current liabilities, including:
99,828
-
-
(50)
2,125
101,903
Lease liabilities
5,181
-
-
(65)
-
5,116
Contract liabilities
4,364
-
-
-
2,125
6,489
Other liabilities
41,709
-
-
15
-
41,724
TOTAL EQUITY AND LIABILITIES
1,256,817
-
-
1,733
1,626
1,260,176
* Data for the comparative period have been restated. See Note 6.11.
73
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
Period ended 31 December 2020
Before
corrections
Cash
Perpetual
usufruct
of land
Fees for
introduction
of shares to
trading
International
markets
Restated
Total cash flows from operating
activities
231,375
-
-
-
-
231,375
Profit for the period
151,440
-
62
768
-
152,270
Corrections, including:
112,783
-
(62)
(768)
-
111,953
Income tax
37,624
-
-
180
-
37,804
Depreciation and amortisation
36,331
-
(112)
-
-
36,219
Other
1,430
50
-
-
1,480
Change of assets and liabilities, including:
45,073
-
-
(948)
-
44,125
Contract liabilities
1,816
-
-
(948)
-
868
(Decrease)/increase of net cash and
cash equivalents
135,345
-
-
-
-
135,345
Cash and cash equivalents - opening
balance
285,274
(10,145)
-
-
-
275,129
Cash and cash equivalents - closing
balance
421,163
(10,145)
-
-
-
411,018
Year ended
31 December
2020
(reported)
Corrections
Year ended
31 December
2020
(restated)
Cash
Perpetual
usufruct of
land
Fees for
introduction
of shares to
trading
'International
markets
Sales revenue
403,776
-
-
948
(765)
403,959
Operating expenses
(208,505)
-
112
-
2,243
(206,150)
Other income
5,690
-
-
-
(1,478)
4,212
Operating profit
188,320
-
112
948
-
189,380
Financial expenses, incl.:
(21,170)
-
(50)
-
-
(21,220)
Profit before tax
189,064
-
62
948
-
190,074
Income tax
(37,624)
-
-
(180)
-
(37,804)
Profit for the period
151,440
-
62
768
-
152,270
6.12. EVENTS AFTER THE BALANCE SHEET DATE
On 19 January 2022, GPW acquired a shelf company Teelgren Investements spółka akcyjna for PLN 117.8 thousand to
simplify and shorten the process of establishing and registering a company. This shelf company will be used to operate the
market under the Private Market project.
On 31 January 2022, GPW redeemed series D and E bonds issued on 18 January 2017. The total nominal value of the bonds
redeemed was PLN 120,000 thousand.
On 24 February 2022, armed conflict broke out in Ukraine. The international community reacted by imposing sanctions on
Russia. Due to the impact of the conflict on the political and economic situation in Europe and globally, the GPW Group took
74
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. ALL AMOUNTS IN PLN’000 UNLESS STATED OTHERWISE.
CONSOLIDATED FINANCIAL STATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
into consideration the recommendations of the Polish Financial Supervision Authority for issuers of securities issued on 2
March 2022.
As a result, the GPW Group:
analysed potential risks arising from the conflict which may affect the GPW Group’s activities (see the Management
Board’s Report on the Activity of the Parent Entity and the Group of the Warsaw Stock Exchange, Note 2.8); and
analysed the potential impact of the conflict on the 2021 financial statements in the context of the GPW Group’s
ability to continue as a going concern.
The Group has no direct investments in / exposures to entities operating in Ukraine / Russia. No material receivables from
the GPW Group’s counterparties related to parties involved in the armed conflict in Ukraine were identified as at 31 December
2021. As shown in Note 2.2.2, the GPW Group has no material foreign currency assets and, therefore, exchange rate
fluctuations are not expected to have a material impact on the Group’s financial position.
As at 31 December 2021, the Group held PLN 627 million in cash and cash equivalents and short-term financial assets
including bank deposits and guaranteed corporate bonds. They are sufficient financial resources to conclude that the Group’s
short-term and mid-term liquidity risk is low.
According to available information and based on analyses completed as at 31 December 2021, the GPW Group did not identify
any material uncertainties relating to events or circumstances that would cast significant doubt on its ability to continue as
a going concern.
The Group follows and monitors developments relating to the armed conflict in Ukraine and analyses the potential adverse
consequences of the conflict on the Group’s operations in order to take necessary actions to mitigate the potential impact.
Given the significant uncertainties arising from further developments in the conflict, the reaction of the international
community, and the impact on the economy, the long-term effects of the conflict are not determinable as at the date of
the financial statements.
75
DATA FOR THE YEAR ENDED 31 DECEMBER 2021. 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:
Piotr Kajczuk, Director, Financial Department ………………………………………
Warsaw, 15-16 March 2022