C
ONSOLIDATED
F
INANCIAL
S
TATEMENTS
OF THE GIEŁDA PAPIERÓW WARTOŚCIOWYCH
W WARSZAWIE S.A. GROUP
FOR THE YEAR ENDED 31 DECEMBER 2022
1
D
ATA FOR THE YEAR ENDED
31
D
ECEMBER
2022. A
LL AMOUNTS IN
PLN’000
UNLESS STATED OTHERWISE
.
C
ONSOLIDATED
F
INANCIAL
S
TATEMENTS
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 ............................................................................................................................. 13
1.6. New standards and interpretations ............................................................................................................. 13
1.6.1. Standards and interpretations adopted by the European Union ............................................. 13
1.6.2. Standards and interpretations awaiting adoption by the European Union ............................. 13
1.7. The scope and methods of consolidation .................................................................................................... 14
1.8. Accounting policies and other information ................................................................................................. 14
1.8.1. Functional and presentation currency ..................................................................................... 14
1.8.2. Basis of preparation ................................................................................................................. 14
1.8.3. Estimates and judgments ......................................................................................................... 14
1.8.4. Selected accounting policies .................................................................................................... 14
1.8.5. Evaluation of balances presented in foreign currencies .......................................................... 15
1.8.6. Segment reporting ................................................................................................................... 15
1.9. Impact of the SARS-CoV-2 pandemic ........................................................................................................... 15
1.10. Impact of the war in Ukraine ....................................................................................................................... 15
1.11. Analysis of the impact of climate change on the GPW Group ..................................................................... 16
2. Financial risk management .......................................................................................................................16
2.1. Financial risk factors .................................................................................................................................... 16
2.2. Market risk ................................................................................................................................................... 16
2.2.1. Cash flow and fair value interest rate risk ................................................................................ 16
2.2.2. Foreign exchange risk ............................................................................................................... 17
2.2.3. Price risk ................................................................................................................................... 18
2.3. Credit risk ..................................................................................................................................................... 18
2.4. Liquidity risk ................................................................................................................................................. 20
2.5. Capital management .................................................................................................................................... 21
3. Notes to the consolidated statement of financial position .........................................................................22
3.1. Property, plant and equipment ................................................................................................................... 22
3.2. Intangible assets .......................................................................................................................................... 23
3.2.1. Goodwill ................................................................................................................................... 25
3.3. Investment in entities measured by the equity method ............................................................................. 28
3.4. Leases ........................................................................................................................................................... 30
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 ................................................................................................................ 35
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 ........................................................................... 41
3.5.6. Cash and cash equivalents ....................................................................................................... 42
3.6. Contract assets and contract liabilities ....................................................................................................... 43
2
D
ATA FOR THE YEAR ENDED
31
D
ECEMBER
2022. A
LL AMOUNTS IN
PLN’000
UNLESS STATED OTHERWISE
.
C
ONSOLIDATED
F
INANCIAL
S
TATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
3.7. Non-current prepayments ........................................................................................................................... 43
3.8. Equity ........................................................................................................................................................... 44
3.8.1. Share capital ............................................................................................................................. 44
3.8.2. Other reserves .......................................................................................................................... 44
3.8.3. Retained earnings..................................................................................................................... 44
3.8.4. Dividend ................................................................................................................................... 45
3.8.5. Earnings per share .................................................................................................................... 45
3.9. Bond issue liabilities ..................................................................................................................................... 46
3.10. Employee benefits payable .......................................................................................................................... 47
3.10.1. Retirement benefits ................................................................................................................. 48
3.10.2. Other employee benefits ......................................................................................................... 48
3.11. Accruals and deferred income ..................................................................................................................... 49
3.12. Other liabilities ............................................................................................................................................. 50
3.13. Trade payables ............................................................................................................................................. 50
3.14. Deferred income tax .................................................................................................................................... 51
3.15. Provisions for other liabilities and other charges ........................................................................................ 52
3.16. Phantom shares ........................................................................................................................................... 52
4. Notes to the consolidated statement of comprehensive income ................................................................54
4.1. Sales revenue ............................................................................................................................................... 54
4.2. Operating expenses ..................................................................................................................................... 56
4.2.1. Salaries and other employee costs........................................................................................... 57
4.2.2. External service charges ........................................................................................................... 58
4.3. Other income ............................................................................................................................................... 58
4.4. Other expenses ............................................................................................................................................ 59
4.5. Financial income .......................................................................................................................................... 59
4.6. Financial expenses ....................................................................................................................................... 60
4.7. Income tax ................................................................................................................................................... 60
5. Note to the consolidated statement of cash flows .....................................................................................61
6. Other notes ...............................................................................................................................................63
6.1. Financial instruments ................................................................................................................................... 63
6.2. Acquisition of a subsidiary ........................................................................................................................... 63
6.3. Segment reporting ....................................................................................................................................... 66
6.4. Grants .......................................................................................................................................................... 69
6.5. Related party transactions ........................................................................................................................... 70
6.5.1. Information about transactions with the State Treasury and entities which are related parties
of the State Treasury ................................................................................................................ 70
6.5.2. Transactions with entities measured by the equity method ................................................... 71
6.5.3. Other transactions ................................................................................................................... 72
6.6. Information on remuneration and benefits of the key management personnel ........................................ 72
6.7. Audit firm’s fees ........................................................................................................................................... 73
6.8. Contracted investments ............................................................................................................................... 73
6.9. IRGiT Clearing Guarantee System ................................................................................................................ 73
6.10. Guarantees ................................................................................................................................................... 74
6.11. Contingent assets and liabilities .................................................................................................................. 74
6.11.1. Contingent assets ..................................................................................................................... 75
6.11.2. Contingent liabilities................................................................................................................. 75
6.12. Uncertainty about VAT ................................................................................................................................ 75
6.13. Events after the balance sheet date ............................................................................................................ 76
3
D
ATA FOR THE YEAR ENDED
31
D
ECEMBER
2022. A
LL AMOUNTS IN
PLN’000
UNLESS STATED OTHERWISE
.
C
ONSOLIDATED
F
INANCIAL
S
TATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Note As at
31 December 2022 31 December 2021
Non-current assets: 651,608
603,573
Property, plant and equipment 3.1. 107,605
91,887
Right-to-use assets 3.4.4. 4,685
9,084
Intangible assets 3.2. 282,892
264,022
Investment in entities measured by equity method 3.3. 241,313
230,825
Sublease receivables 3.4.6. 290
-
Deferred tax asset 3.14. 6,526
4,173
Financial assets measured at fair value through other comprehensive income 3.5.3. 6,681
123
Prepayments 781
2,474
Other non-current assets 835
985
Current assets: 530,648
807,115
Inventories -
15
Corporate income tax receivable 6,652
364
Trade receivables and other receivables 3.5.4. 79,348
177,077
Sublease receivables 3.4.6. 94
71
Contract assets 3.6. 1,949
2,412
Financial assets measured at amortised cost 3.5.5. 63,964
277,322
Other current assets -
530
Cash and cash equivalents 3.5.6. 378,641
349,324
TOTAL ASSETS 1,182,256
1,410,688
The attached Notes are an integral part of these Financial Statements.
4
D
ATA FOR THE YEAR ENDED
31
D
ECEMBER
2022. A
LL AMOUNTS IN
PLN’000
UNLESS STATED OTHERWISE
.
C
ONSOLIDATED
F
INANCIAL
S
TATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED)
Note
As at
31 December 2022 31 December 2021
Equity: 1,000,827
967,857
Equity of shareholders of the parent entity: 990,780
967,211
Share capital 3.8.1. 63,865
63,865
Other reserves 3.8.2. (11,941) (5,557)
Retained earnings 3.8.3. 938,856
908,903
Non-controlling interests 10,047
646
Non-current liabilities: 53,814
44,206
Employee benefits payable 3.10. 1,524
1,518
Lease liabilities 3.4.5. 495
4,170
Contract liabilities 3.6. 7,276
7,451
Accruals and deferred income 3.11. 30,899
20,551
Deferred tax liability 3.14. 2,158
239
Other liabilities 3.12. 11,462
10,277
Current liabilities: 127,615
398,625
Liabilities on bonds issue 3.9. -
246,278
Trade payables 3.13. 17,927
13,704
Employee benefits payable 3.10. 31,109
31,106
Lease liabilities 3.4.5. 4,852
5,393
CIT payable 401
6,167
Contract liabilities 3.6. 4,406
5,567
Accruals and deferred income 3.11. 4,755
3,551
Provisions for other liabilities and other charges 3.15. 32,098
28,837
- VAT provision 6.12. 30,691
28,771
Other liabilities 3.12. 32,067
58,022
TOTAL EQUITY AND LIABILITIES 1,182,256
1,410,688
The attached Notes are an integral part of these Financial Statements.
5
D
ATA FOR THE YEAR ENDED
31
D
ECEMBER
2022. A
LL AMOUNTS IN
PLN’000
UNLESS STATED OTHERWISE
.
C
ONSOLIDATED
F
INANCIAL
S
TATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Note
Year ended 31 December
2022 2021
Sales revenue
4.1.
389,265
407,571
Operating expenses
4.2.
(254,881) (229,367)
Gains on reversed impairment of receivables/ (Loss) on impairment of
receivables
3.5.4.
565
1,746
Other income
4.3.
10,027
3,007
Other expenses
4.4.
(14,384) (3,016)
Operating profit
130,592
179,941
Financial income, incl.:
4.5.
23,501
997
interest income under the effective interest rate method
22,459
900
Financial expenses, incl.:
4.6.
(7,505) (11,559)
financial cost of VAT risk
6.12.
(1,919) (1,927)
Share of profit of entities measured by equity method
3.3.
28,255
24,376
Profit before tax
174,843
193,755
Income tax
4.7.
(29,867) (32,479)
Profit for the period
144,976
161,276
Share of other comprehensive income/(expense) of entities measured by
equity method (net)
3.8.2.
(7,211) (6,883)
Total items that may be reclassified to profit or loss
(7,211) (6,883)
Gains/(Losses) on valuation of financial assets measured
at fair value through other comprehensive income, net
3.8.2.
811
5
Actuarial gains/(losses) on provisions for employee benefits after
termination, net
3.8.2.
16
258
Total items that will not be reclassified to profit or loss
827
263
Total other comprehensive income after tax
(6,384)
(6,620)
Total comprehensive income
138,592
154,656
Profit for the period attributable to shareholders
of the parent entity
144,956
161,249
Profit for the period attributable to non-controlling interests
20
27
Total profit for the period
144,976
161,276
Comprehensive income attributable to shareholders
of the parent entity
138,572
154,629
Comprehensive income attributable
to non-controlling interests
20
27
Total comprehensive income
138,592
154,656
Basic / Diluted earnings per share (PLN)
3.8.5.
3.45
3.84
The attached Notes are an integral part of these Financial Statements.
6
D
ATA FOR THE YEAR ENDED
31
D
ECEMBER
2022. A
LL AMOUNTS IN
PLN’000
UNLESS STATED OTHERWISE
.
C
ONSOLIDATED
F
INANCIAL
S
TATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
CONSOLIDATED STATEMENT OF CASH FLOWS
Nota
Year ended 31 December
2022 2021
Total net cash flows from operating activities 216,214
53,089
Net profit for the period 144,976
161,276
Adjustments: 116,145
(71,599)
Income tax 4.7. 29,867
32,479
Depreciation and amortisation 4.2., 5 36,827
35,245
Impairment allowances (86) 178
Share of profit of entities measured by equity method (28,255) (24,376)
(Gains) on financial assets measured at amortised cost (5,169) (611)
Interest on bonds 3,169
5,440
Other adjustments 5 (8,530) (5,585)
Change of assets and liabilities: 88,322
(114,369)
Inventories 15
(5)
Trade receivables and other receivables 3.5.4. 99,081
(121,847)
Trade payables 3.13. 3,982
(1,413)
Contract assets 3.6. 463
(716)
Contract liabilities 3.6. (1,336) (1,344)
Prepayments 3.7. 1,717
(81)
Accruals and deferred income 3.11. 10,726
9,983
Employee benefits payable 3.10. 9
7,758
Other current liabilities (excluding contracted investments
and dividend payable)
3.12. (27,226) (7,362)
Provisions for liabilities and other charges 3.15. 3,261
1,993
Other non-current liabilities 3.12. (2,370) (1,335)
Income tax (paid)/refunded (44,907) (36,588)
The attached Notes are an integral part of these Financial Statements.
7
D
ATA FOR THE YEAR ENDED
31
D
ECEMBER
2022. A
LL AMOUNTS IN
PLN’000
UNLESS STATED OTHERWISE
.
C
ONSOLIDATED
F
INANCIAL
S
TATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
Nota
Year ended 31 December
2022 2021
Total cash flows from investing activities: 183,727
(3,731)
In: 627,974
1,189,802
Sale of property, plant and equipment and intangible assets -
4,486
Dividends received 10,556
7,063
Inflow related to the expiry of deposits and the maturity of bonds 592,486
1,177,672
Interest on financial assets measured at amortised cost 5,152
444
Grants received 6.4 11,238
-
Sublease payments (interest) 5
7
Sublease payments (principal) 106
130
Cash in the subsidiary acquired after deduction of payment 8,431
-
Out: (444,247) (1,193,533)
Purchase of property, plant and equipment and advances for property,
plant and equipment
(25,661) (12,091)
Purchase of intangible assets and advances for intangible assets (34,547) (31,273)
Establishing deposits and subscription of bonds (378,980) (1,149,869)
Purchase of financial assets at fair value through other comprehensive
income
(5,000) -
Loan granted to a related party -
(300)
Purchase of shares of related parties (59) -
Total cash flows from financing activities: (370,709) (110,882)
In: -
9,928
Grants received -
9,928
Out: (370,709) (120,810)
Dividend paid (115,025) (105,208)
Interest paid on bonds (4,708) (5,452)
Redemption of issued bonds (244,929) -
Settlement of a grant advance -
(4,215)
Lease payments (interest) 3.4.5. (247) (353)
Lease payments (principal) 3.4.5. (5,800) (5,582)
Net increase in cash and cash equivalents 29,232
(61,524)
Impact of fx rates on cash balance in currencies 85
(170)
Cash and cash equivalents - opening balance 3.5.6. 349,324
411,018
Cash and cash equivalents - closing balance 3.5.6. 378,641
349,324
The attached Notes are an integral part of these Financial Statements.
8
D
ATA FOR THE YEAR ENDED
31
D
ECEMBER
2022. A
LL AMOUNTS IN
PLN’000
UNLESS STATED OTHERWISE
.
C
ONSOLIDATED
F
INANCIAL
S
TATEMENTS
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 1 January 2022 63,865
(5,557) 908,903
967,211
646
967,857
Dividends -
-
(115,003) (115,003) (28)
(115,031)
Transactions with owners recognised
directly in equity
-
-
(115,003) (115,003) (28)
(115,031)
Net profit for the year ended 31 December
2022
-
-
144,956
144,956
20
144,976
Other comprehensive income -
(6,384) -
(6,384) -
(6,384)
Comprehensive income for the year
ended 31 December 2022
-
(6,384) 144,956
138,572
20
138,592
Other changes in equity -
-
-
-
9,409
9,409
Obtaining control over subsidiaries -
-
-
-
9,409
9,409
As at 31 December 2022 63,865
(11,941) 938,856
990,780
10,047
1,000,827
Equity
Non-
controlling
interests
Total
equity
Share
capital
Other
reserves
Retained
earnings
Total
As at 1 January 2021 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
The attached Notes are an integral part of these Financial Statements.
9
D
ATA FOR THE YEAR ENDED
31
D
ECEMBER
2022. A
LL AMOUNTS IN
PLN’000
UNLESS STATED OTHERWISE
.
C
ONSOLIDATED
F
INANCIAL
S
TATEMENTS
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 identifying information 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
D
ATA FOR THE YEAR ENDED
31
D
ECEMBER
2022. A
LL AMOUNTS IN
PLN’000
UNLESS STATED OTHERWISE
.
C
ONSOLIDATED
F
INANCIAL
S
TATEMENTS
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 11 April 2023.
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”)
GPW Private Market S.A. (the company name was changed from Teelgren S.A. on 24 June 2022, the company was
acquired on 19 January 2022),
GPW Logistics S.A. (the company name was changed from Molonello Investments S.A. on 26 August 2022, the
company was acquired on 14 April 2022),
GPW DAI S.A. (the company name was changed from Tanerstille Investments S.A. on 10 February 2023, the
company was acquired on 13 October 2022),
Armenia Securities Exchange OJSC (“AMX”) (the company was acquired on 27 December 2022, for details on the
acquisition, see Note 6.2), the parent entity of the AMX Group which includes AMX and Central Depository of Armenia
OJSC (“CDA”)
form the Giełda Papierów Wartościowych w Warszawie Group.
Increase of the share capital of GPW Private Market S.A.
On 29 April 2022, the share capital of GPW Private Market S.A. was increased by PLN 2,000 thousand. The company issued
2,000,000 series B ordinary registered shares with a nominal value and issue price of PLN 1. The shares were fully taken up
by GPW.
Increase of the share capital of GPW Logistics S.A.
On 31 May 2022, the General Meeting of GPW Logistics S.A. adopted a resolution to increase the share capital of the company
by PLN 100 thousand. The company issued 100,000 series B ordinary registered shares with a nominal value of PLN 1 and
issue price of PLN 22 per share. The shares were taken up by GPW in exchange for a cash contribution paid prior to the
registration of the share capital increase.
Increase of the share capital of GPW Benchmark S.A.
On 10 June 2022, the Extraordinary General Meeting of GPW Benchmark S.A. adopted a resolution to increase the share
capital of the company by PLN 1,000 thousand. The company issued 20,000 series G ordinary registered shares with a
nominal value and issue price of PLN 50 per share. The shares were issued in a private subscription. 100% of series G shares
were taken up by the company’s sole shareholder, GPW S.A., in exchange for a cash contribution paid prior to the registration
of the shares. The opening and closing dates of the subscription of the new issue shares were set for 21 June 2022 and 15
July 2022 respectively. Payment for the shares was made on 12 July 2022.
Increase of the share capital of GPW Tech S.A.
On 29 September 2022 and on 29 December 2022, the Extraordinary General Meeting of GPW Tech S.A. adopted resolutions
to increase the share capital of the company by PLN 2,000 thousand and PLN 7,800 thousand respectively. The company
issued 2,000,000 series D ordinary registered shares and 7,800,000 series E ordinary registered shares. The nominal value
and issue price of both series was PLN 1 per share. All series D and E shares were taken up by the company’s sole shareholder,
GPW S.A., in exchange for a cash contribution paid prior to the registration of the shares. Payment for the shares was made
on 11 October 2022 and on 30 December 2022.
The following are the associates over which the Group exerts significant influence:
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”), which is under joint control.
11
D
ATA FOR THE YEAR ENDED
31
D
ECEMBER
2022. A
LL AMOUNTS IN
PLN’000
UNLESS STATED OTHERWISE
.
C
ONSOLIDATED
F
INANCIAL
S
TATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
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%
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.
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%
12
D
ATA FOR THE YEAR ENDED
31
D
ECEMBER
2022. A
LL AMOUNTS IN
PLN’000
UNLESS STATED OTHERWISE
.
C
ONSOLIDATED
F
INANCIAL
S
TATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
Name of the entity
Registered office of the
entity
Scope of operations Shareholders
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%
GPW Private Market S.A.
ul. Książęca 4
00-498 Warsaw
Poland
GPW PM is creating an innovative online
platform based on blockchain technology.
The company plans to start with premium
investment crowdfunding and tokenisation of
paintings, which will democratise access to
the art market for a wider group of
collectors. In the future, the Company also
intends to tokenise other selected non-
financial assets.
GPW: 100%
GPW Logistics S.A.
ul. Książęca 4
00-498 Warsaw
Poland
The company was acquired to operate as a
digital system operator in the Transport,
Shipping, Logistics (TSL) industry as part of
the PCOL project.
GPW: 100%
GPW DAI S.A.
ul. Książęca 4
00-498 Warsaw
Poland
Business activities related to the multi-
module auction platform developed by GPW
for the comprehensive handling of media
market transactions related to dynamic ad
insertion (DAI),
Cooperation with television operators and
broadcasters and advertisers.
GPW: 100%
Armenia Securities
Exchange OJSC (“AMX”)
Vazgen Sargsyan 26/1,
0010, Yerevan, Armenia
Organiser of stock exchange trading in
financial instruments in Armenia. The
company provides, inter alia, listing, trading,
clearing services for shares and bonds, as
well as stock information services.
GPW: 65.03%
Central Depository of
Armenia OJSC
(“CDA”)
Vazgen Sargsyan 26/1,
0010, Yerevan, Armenia
The company is the securities depository of
the first level in Armenia’s two-tier
depository system. It also clears transactions
in equity instruments and corporate debt
securities (both on the organised exchange
market and over-the-counter).
AMX: 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%
13
D
ATA FOR THE YEAR ENDED
31
D
ECEMBER
2022. A
LL AMOUNTS IN
PLN’000
UNLESS STATED OTHERWISE
.
C
ONSOLIDATED
F
INANCIAL
S
TATEMENTS
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 effective for the
financial statements of the Group for the financial year started on 1 January 2022:
amendments to IAS 16 Property, Plant and Equipment – proceed before use,
amendments to IAS 37 Provisions, Contingent Liabilities and Contingent Assets – Onerous Contracts – Cost of
fulfilling a contract,
amendments to IFRS 3 Business Combinations – amendments to the conceptual framework,
annual improvements to IFRS 2018-2020 to clarify the guidance on recognition and measurement.
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. S
TANDARDS 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 2023:
Amendment to IAS 1 Presentation of Financial Statements, Practice Statement IFRS 2 Disclosure of Accounting
Policies;
Amendment to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors: Definition of Accounting
Estimates;
IFRS 17 Insurance Contracts (including Amendment to IFRS 17 Insurance Contracts (published on 25 June 2020)
and Amendment to IFRS 17 Insurance Contracts: Initial Application of IFRS 17 and IFRS 9 – Comparative
Information (published on 9 December 2021);
Amendment to IAS 12 Income Tax – Deferred Tax related to Assets and Liabilities arising from a Single Transaction.
1.6.2. S
TANDARDS 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 2024
1
International Accounting Standards, International Financial Reporting Standards and related interpretations published in regulations of the
European Commission
14
D
ATA FOR THE YEAR ENDED
31
D
ECEMBER
2022. A
LL AMOUNTS IN
PLN’000
UNLESS STATED OTHERWISE
.
C
ONSOLIDATED
F
INANCIAL
S
TATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
Standard Effective date (IASB)
Amendment to IAS 1 Presentation of Financial Statements
– Non-current Liabilities with
Covenants
1 January 2024
Amendment to IFRS Leases
– Lease Liability in a Sale and Leaseback 1 January 2024
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. B
ASIS 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. E
STIMATES 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. S
ELECTED ACCOUNTING POLICIES
Selected accounting policies are presented in the Notes to these consolidated financial statements.
The Group presents a single statement of profit or loss and other comprehensive income.
15
D
ATA FOR THE YEAR ENDED
31
D
ECEMBER
2022. A
LL AMOUNTS IN
PLN’000
UNLESS STATED OTHERWISE
.
C
ONSOLIDATED
F
INANCIAL
S
TATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
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. S
EGMENT 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 Group is monitoring the development of the coronavirus pandemic nationally and internationally. In the opinion of the
Exchange Management Board and the Management Boards of the subsidiaries, the risk associated with the pandemic is low.
The Exchange Management Board and the Management Boards of the subsidiaries have considered the impact of the
pandemic on the Group’s ability to continue as a going concern. As at 31 December 2022, 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.
The Group monitors the epidemiological situation in Poland and globally on an on-going basis and analyses its impact on the
position of the organisation. The Exchange 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 Exchange’s clients to pay debt when due.
The details are presented in the Management Board’s Report on the Activities of the Parent Entity and the Warsaw Stock
Exchange Group, Note 2.7.
1.10. IMPACT OF THE WAR IN UKRAINE
On 24 February 2022, armed conflict broke out in Ukraine. The international community reacted by imposing sanctions
against Russia. In view of the impact of the conflict on the political and economic situation in Europe and the world, the GPW
Group took into account the recommendations of the Polish Financial Supervision Authority issued on 2 March 2022 for
issuers of securities.
In this connection, the Group has:
conducted an analysis of potential risks arising from the conflict that may affect the operations of the Exchange and
the Group companies (Management Board’s Report on the Activities of the Parent Entity and the Warsaw Stock
Exchange Group, Note 2.7); and
conducted an analysis of the potential impact of the conflict on the 2022 financial statements in the context of
assessing the Group’s ability to continue as a going concern.
The companies of the GPW Group have no direct investments/exposures to entities with operations in Ukraine/Russia.
16
D
ATA FOR THE YEAR ENDED
31
D
ECEMBER
2022. A
LL AMOUNTS IN
PLN’000
UNLESS STATED OTHERWISE
.
C
ONSOLIDATED
F
INANCIAL
S
TATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
As at 31 December 2022, no material receivables were identified from GPW Group counterparties related to parties involved
in the armed conflict in Ukraine. As shown in Note 2.2.2, the Group does not hold any 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 2022, the Group held PLN 434 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 to medium term is low.
Based on the information currently available and the analyses performed as at 31 December 2022, 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.
The Group follows and monitors developments related to the armed conflict in Ukraine and analyses the potential negative
consequences of the conflict on the operations of the Group companies in order to take the necessary measures to mitigate
the potential impact. Given the significant uncertainties arising from further developments in the conflict and the reactions
of the international community and their impact on the economy, the long-term impact of the conflict is impossible to
determine as at the date of these financial statements.
1.11. ANALYSIS OF THE IMPACT OF CLIMATE CHANGE ON 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 2022 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 2022.
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 floating, 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.
In the previous reporting period, as an issuer of series D and E bonds with a floating interest rate based on WIBOR 6M, the
Group was exposed to interest rate risk. On 31 January 2022, the Group redeemed both series of outstanding floating-rate
bonds, which reduced the impact of interest rate risk on the period’s financial costs. For more information on bond liabilities,
see Note 3.9.
The Group determines the impact of interest rate risk based on a sensitivity analysis assuming a change in interest rates of
0.5 p.p. (and holding other factors constant). Based on the analysis, the possible impact of a change in financial income on
pre-tax profit and equity was determined. The sensitivity analysis in 2022 showed that an increase in interest rates would
result in an increase in financial income of PLN 2,009 thousand, while a decrease in rates of 0.5 p.p. would result in a
decrease in financial income of PLN 2,039 thousand.
17
D
ATA FOR THE YEAR ENDED
31
D
ECEMBER
2022. A
LL AMOUNTS IN
PLN’000
UNLESS STATED OTHERWISE
.
C
ONSOLIDATED
F
INANCIAL
S
TATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
The following table presents an analysis of financial assets and liabilities based on maturity. Financial assets and liabilities
that are not presented in the tables below are non-interest bearing. The assets are presented before deduction of expected
credit losses.
As at 31 December 2022
Maturity up to 1 year
Total
< 1 M 1-3 M > 3 M
Corporate bonds -
34,623
19,114
53,737
Bank deposits 164,176
98,254
1,000
263,430
Other assets -
-
10,273
10,273
Current accounts (other) 114,844
-
-
114,844
Total current 279,020
132,877
30,387
442,284
Total financial assets 279,020
132,877
30,387
442,284
As at 31 December 2021
Maturity up to 1 year
Total
< 1 M 1-3 M > 3 M
Corporate bonds -
14,995
150,271
165,266
Bank deposits 41,167
199,081
109,078
349,326
Other assets -
-
10,148
10,148
Current accounts (other) 86,876
13,530
-
100,406
Total current 128,043
227,606
269,497
625,146
Total financial assets 128,043
227,606
269,497
625,146
Bonds issued -
-
246,468
246,468
Total current -
-
246,468
246,468
Total financial liabilities -
-
246,468
246,468
2.2.2. F
OREIGN 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 2022 and in 2021.
Based on a sensitivity analysis, as at 31 December 2022, 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. An 10% FX rate
decrease will result in the opposite change of financial income/costs as presented above.
Impact of a 10% FX rate increase on profit before tax in year ended 31
December
Year ended 31 December
2022 2021
EUR 990
1,164
USD 3
7
GPB (17) -
AMD 1,386
-
Total impact on profit before tax 2,363
1,171
18
D
ATA FOR THE YEAR ENDED
31
D
ECEMBER
2022. A
LL AMOUNTS IN
PLN’000
UNLESS STATED OTHERWISE
.
C
ONSOLIDATED
F
INANCIAL
S
TATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
The table below shows the Group’s foreign exchange position by financial instrument.
As at 31 December 2022
(converted to PLN at FX rate as at the balance-sheet date)
PLN EUR USD GBP AMD
Total carrying
amount in PLN
Financial assets measured at amortised
cost
63,964
-
-
-
-
63,964
Trade receivables (net)
34,081
9,161
-
-
1,595
44,837
Other receivables *
16,473
-
328
6
449
17,256
Sublease receivables
384
-
-
-
-
384
Cash and cash equivalents
359,643
4,103
21
3
14,871
378,641
Total assets 474,545
13,264
349
9
16,915
505,082
Trade payables
15,184
2,309
193
-
241
17,927
Lease liabilities
4,115
1,007
127
-
98
5,347
Other liabilities * *
21,955
46
-
179
2,712
24,892
Total liabilities 41,254
3,362
320
179
3,051
48,166
Net FX position 433,291
9,902
29
(170) 13,864
456,916
* net of prepayments and receivables from other taxes
** net of VAT payable and other taxes payable
As at 31 December 2021
(converted to PLN at FX rate as at the balance-sheet date)
PLN EUR USD GBP AMD
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 liabilities 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
2.2.3. P
RICE 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 2022 and as at 31 December 2021 (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 counterparties.
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
19
D
ATA FOR THE YEAR ENDED
31
D
ECEMBER
2022. A
LL AMOUNTS IN
PLN’000
UNLESS STATED OTHERWISE
.
C
ONSOLIDATED
F
INANCIAL
S
TATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
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.
As at 31 December
2022 2021
Trade receivables (net) 44,837
45,037
Other receivables* 17,256
10,663
Cash and cash equivalents 378,641
349,324
Contract assets 1,949
2,412
Sublease receivables 384
71
Financial assets measured at amortised cost 63,964
277,322
Total exposure of the Group to credit risk 507,031
684,829
* 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 1.2 million as at 31 December 2022 and PLN 1.5 million as
at 31 December 2021. The Group’s total receivables under the Employee Loan Scheme amounted to PLN 751 thousand as
at 31 December 2022 and PLN 765 thousand as at 31 December 2021.
The tables below show the changes in the allowance for expected credit losses by financial asset:
Year ended 31 December 2022
Trade
receivables
Cash and cash
equivalents
Financial assets measured at
amortized cost
Total
Opening balance
4,516
233
178
4,927
Creating a write-off 1,555
821
316
2,692
Dissolution of the write-off
(2,018)
(817)
(448)
(3,283)
Utilisation of the write-off (39) -
-
(39)
Receivables written off during the period
as uncollectible
(5) -
-
(5)
Closing balance
4,009
237
46
4,292
Year ended 31 December 2021
Trade
receivables
Cash and cash
equivalents
Financial assets measured at
amortized cost
Total
Opening balance 6,685
-
-
6,685
Creating a write-off
2,328
233
178
2,739
Dissolution of the write-off (4,074) -
-
(4,074)
Utilisation of the write-off
-
-
-
-
Receivables written off during the period
as uncollectible
(423) -
-
(423)
Closing balance 4,516
233
178
4,927
For trade receivables, the Group uses a simplified approach and estimates the allowance over the life of the receivables. For
cash and cash equivalents, an allowance for expected credit losses is made in full for an amount equal to 12 months of
expected credit losses. Allowances for financial assets measured at amortised cost are also 12-month allowance for expected
credit losses, except for the PAR loan impaired due to credit risk (see Note 6.5.2).
20
D
ATA FOR THE YEAR ENDED
31
D
ECEMBER
2022. A
LL AMOUNTS IN
PLN’000
UNLESS STATED OTHERWISE
.
C
ONSOLIDATED
F
INANCIAL
S
TATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
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 significant share of liquid assets in total assets and, thus, a good
liquidity position of the Group.
As at 31 December 2022 As at 31 December 2021
amount
% of total
assets
amount
% of total
assets
Cash and cash equivalents 378,641
32.0% 349,324
24.8%
Financial assets measured at amortised cost 63,964
5.4% 277,322
19.7%
Assets other than cash and cash equivalents and financial assets
measured at amortised cost
739,651
62.6% 784,042
55.6%
Total assets 1,182,256
100.0% 1,410,688
100.0%
An analysis of the structure of liabilities shows a share of equity in the financing of the operations of the Group of 85% in
2022 (over 68% as at 31 December 2021):
As at 31 December 2022 As at 31 December 2021
amount
% of total
liabilities
amount
% of total
liabilities
Equity 1,000,827
84.7% 967,857
68.6%
Liabilities 181,429
15.3% 442,831
31.4%
Total equity and liabilities 1,182,256
100.0% 1,410,688
100.0%
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. The table below shows the surplus
liquidity of the Group.
As at 31 December 2022
< 1M 1-3 M 3-6 M 6-12 M 1-5 Y > 5Y Total
Trade receivables (gross) 46,791
2,055
-
-
-
-
48,846
Other receivables* 17,232
-
-
24
-
-
17,256
Sublease receivables 10
19
29
44
306
-
408
Financial assets measured at amortised cost -
35,085
19,481
10,309
-
-
64,875
Cash and cash equivalents 280,173
98,556
-
-
-
-
378,729
Total assets 344,206
135,715
19,510
10,377
306
-
510,114
Trade payables 16,996
931
-
-
-
-
17,927
Lease liabilities 505
976
1,394
2,073
522
-
5,470
Other liabilities** 5,502
5,837
343
1,522
8,269
8,407
29,880
Total liabilities 23,003
7,744
1,737
3,595
8,791
8,407
53,277
Liquidity surplus/(gap) 321,203
127,971
17,773
6,782
(8,485)
(8,407)
456,837
* net of prepayments and receivables from other taxes
** net of VAT payable and other taxes payable
21
D
ATA FOR THE YEAR ENDED
31
D
ECEMBER
2022. A
LL AMOUNTS IN
PLN’000
UNLESS STATED OTHERWISE
.
C
ONSOLIDATED
F
INANCIAL
S
TATEMENTS
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
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, the Group used third-party capital (interest-bearing liabilities) in the form of bonds issued (see
Note 3.9) 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 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 2022 and
2021 are presented in Note 3.8.4.
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 5.1 of the Management Board’s Report on the Activity of the Parent Entity and the Group
of Giełda Papierów Wartościowych w Warszawie S.A.
22
D
ATA FOR THE YEAR ENDED
31
D
ECEMBER
2022. A
LL AMOUNTS IN
PLN’000
UNLESS STATED OTHERWISE
.
C
ONSOLIDATED
F
INANCIAL
S
TATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
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 and machinery
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 are fixed assets under construction, installation or improvement of an
existing fixed asset. They are valued at cost or at the total cost directly related to their construction, less any impairment
losses. 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.
Year ended 31 December 2022
Land and
buildings
Vehicles and
machinery
Furniture,
fittings and
equipment
Property,
plant and
equipment
under
construction
Total
Net carrying amount - opening balance 72,320
16,528
383
2,656
91,887
Additions 496
14,451
258
11,006
26,211
Reclassification and other adjustments 54
6,392
-
(5,375) 1,071
Obtaining control over subsidiaries -
145
985
-
1,130
Disposals
(68)
-
(15)
-
(83)
Depreciation charge* (3,301) (9,017) (293) -
(12,611)
Net carrying amount - closing balance 69,501
28,499
1,318
8,287
107,605
As at 31 December 2022
Gross carrying amount 130,535
130,554
8,558
8,287
277,934
Accumulated depreciation
(61,034)
(102,055)
(7,240)
-
(170,329)
Net carrying amount 69,501
28,499
1,318
8,287
107,605
* Depreciation of PLN 1070 thousand is capitalised to intangible assets (development work)
23
D
ATA FOR THE YEAR ENDED
31
D
ECEMBER
2022. A
LL AMOUNTS IN
PLN’000
UNLESS STATED OTHERWISE
.
C
ONSOLIDATED
F
INANCIAL
S
TATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
Year ended 31 December 2021
Land and
buildings
Vehicles and
machinery
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
Reclassification and other adjustments (17) -
-
-
(17)
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
Accumulated depreciation (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)
Vehicles and machinery include mainly IT hardware: servers, computers and network devices.
As at 31 December 2022, 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 2022) stood at PLN 695 thousand. As at 31 December
2021, 1% of such space was under leases and the fixed assets under the leases stood at PLN 723 thousand.
Selected accounting policies
At each balance sheet date, the Group reviews non-financial assets to determine whether there are indicators of impairment
except for inventories and deferred tax assets.
If such indicators are identified, the recoverable amount of an asset is estimated (as the higher of: fair value less selling
costs or value in use). Value in use corresponds to the discounted value of the future economic benefits which would be
generated by an asset.
At the end of every reporting period, the Group checks for conditions indicating that the impairment losses recognised in
previous reporting periods may be redundant or excessive. In that case, impairment losses are reversed in whole or in part
and the asset value is disclosed net of the impairment losses (but including depreciation).
Impairment losses are recognised in other expenses and reversed in other income.
The Group recognised no impairment of property, plant and equipment in 2022 and in 2021.
3.2. INTANGIBLE ASSETS
Selected accounting policies
Intangible assets include goodwill, other intangible assets, and development work.
Other intangible assets (licences, copyright, know-how and perpetual usufruct of land) 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.
24
D
ATA FOR THE YEAR ENDED
31
D
ECEMBER
2022. A
LL AMOUNTS IN
PLN’000
UNLESS STATED OTHERWISE
.
C
ONSOLIDATED
F
INANCIAL
S
TATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
The cost of production of intangible assets 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. Cash-generating units were established as the companies carrying out the development works.
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.
Year ended 31 December 2022
Licences Copyrights
Know-
how
Goodwill
Development
work
Perpetual
usufruct
of land
Intangible
assets
recognised in
business
combinations
Total
Net carrying amount -
opening balance
44,299
2,445
4,352
167,446
39,669
5,811
-
264,022
Additions
6,910
135
4
55
27,611
-
-
34,715
Reclassification and other
adjustments
3,225
-
178
-
(3,491) -
-
(88)
Obtaining control over
subsidiaries
492
444
-
-
-
-
11,918
12,854
Capitalised depreciation -
-
-
-
2,072
-
-
2,072
Impairment -
-
-
(9,832) (46) -
-
(9,878)
Amortisation charge*
(19,790)
(364) (571) -
-
(80) -
(20,805)
Net carrying amount -
closing balance
35,136
2,660
3,963
157,669
65,815
5,731
11,918
282,892
As at 31 December 2022
Gross carrying amount 254,187
9,788
6,498
172,429
65,861
5,973
11,918
526,654
Impairment -
-
-
(14,760)
(46) -
-
(14,806)
Accumulated amortisation
(219,051)
(7,128)
(2,535)
-
-
(242) -
(228,956)
Net carrying amount 35,136
2,660
3,963
157,669
65,815
5,731
11,918
282,892
* Amortisation of PLN 1002 thousand is capitalised to intangible assets (development work)
25
D
ATA FOR THE YEAR ENDED
31
D
ECEMBER
2022. A
LL AMOUNTS IN
PLN’000
UNLESS STATED OTHERWISE
.
C
ONSOLIDATED
F
INANCIAL
S
TATEMENTS
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
Intangible
assets
recognised in
business
combinations
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)
Amortisation charge*
(16,691)
(433) (545) -
-
(81) (17,750)
Net carrying amount -
closing balance
44,299
2,445
4,352
167,446
39,669
5,811
-
264,022
As at 31 December 2021
Gross carrying amount
243,356
8,616
6,316
172,374
39,669
5,973
-
476,304
Impairment
-
-
-
(4,928)
-
-
-
(4,928)
Accumulated amortisation
(199,057)
(6,171)
(1,964)
-
-
(162) -
(207,354)
Net carrying amount 44,299
2,445
4,352
167,446
39,669
5,811
-
264,022
* Amortisation of PLN 137 thousand is capitalised to intangible assets (development work)
In 2022, the cost of research recognised in the statement of comprehensive income amounted to PLN 4,133 thousand (PLN
3,257 thousand in 2021). Development work is expenditure on intangible assets generated in-house, comprising mainly
expenditure on projects with grants described in Note 6.4.
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 17,458 thousand as at 31 December 2022 (PLN 25,217 thousand
as at 31 December 2021).
In the year ended 31 December 2022, impairment allowances were recognised at PLN 46 thousand for development work
and PLN 9,832 thousand for goodwill. No impairment of intangible assets was recognised in the year ended 31 December
2021.
Impairment testing of intangible assets – development work in progress
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 not yet available
for use (requirement under IAS 36 para. 11), the recoverable amount was determined at the level of the cash-generating
unit to which the asset belongs. The individual companies to which these assets belong are recognised as cash-generating
units. The assets stood at PLN 39,669 thousand as at the balance sheet date. As at 31 December 2022, the impairment tests
of the development work in progress 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 units as at 31 December 2022
based on financial assumptions for 2023-2027 are as follows:
increase in revenues and expenses related to operations, planned capital expenditure and implementation of
strategic projects;
weighted average cost of capital of 10.32%,
growth rate after 2027 equal to 2.5%.
3.2.1. G
OODWILL
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.
26
D
ATA FOR THE YEAR ENDED
31
D
ECEMBER
2022. A
LL AMOUNTS IN
PLN’000
UNLESS STATED OTHERWISE
.
C
ONSOLIDATED
F
INANCIAL
S
TATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
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 2022 by estimating the
value in use under the discounted cash flows (DCF) method according to the financial assumptions for 2023-2027 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 impact of regulatory
changes resulted in a decrease in electricity and gas trading compared to 2021, resulting in lower trading revenues.
The cash-generating unit is the TGE Group. 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 2023-2027. The key assumptions of the test
performed as at 31 December 2022:
average annual revenue growth in the period 2023-2027 of 1.6% (2.4% in 2021),
weighted average cost of capital of 10.32% (7.66% in 2021),
growth rate after 2027 equal to 2.5% (2.0% in 2021).
The goodwill impairment test performed as at 31 December 2022 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 5.0 percentage point decrease
in the average annual revenue growth rate or a 16.0 percentage point decrease in the growth rate after 2027 or a 7.8
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 2022.
Impairment test of investment in BondSpot S.A.
In 2022, the main factor affecting the company’s financial performance was the situation on the Treasury bond market,
where bond yields increased almost from the beginning of 2022. From the beginning of 2022, 10-year bond yields steadily
increased in line with the increase in Treasury bond yields in foreign markets. Inflationary pressure supported by an increase
in fuel prices on global markets proved to be an important element supporting the increase in yields of Polish Treasury
securities. The fall in the prices of Treasury bonds, both Polish and foreign, was also influenced by the policy of the US central
bank (FED) pursuing a policy of sharp interest rate hikes.
Turnover on the Treasury BondSpot Poland market decreased year on year in 2022, resulting in a decrease in BondSpot’s
revenue. For these reasons, a goodwill analysis was performed in the third quarter of 2022 and a decision was taken to
create a goodwill impairment charge of PLN 6,706 thousand. The analysis included a DCF valuation based on a five-year
projection period with the following assumptions: average annual revenue growth of 19.0%, average annual growth in
expenses of 13.5%, WACC of 11.66%, and a growth rate after the projection period of 2.5%.
Goodwill was tested again for impairment as at 31 December 2022. The rationale for the test was to review the Company’s
revenue assumptions related to the projects at Bondspot. The cash-generating unit was BondSpot. The goodwill impairment
test was carried out using the DCF method based on BondSpot’s projected earnings in 2023-2027. The key assumptions of
the test performed at 31 December 2022 were:
average annual revenue growth in 2023-2027 of 10.3% (16.6% in 2021) assuming that BondSpot’s key technology
project will be operational by 2025,
weighted average cost of capital of 10.32% (7.66% in 2021),
growth rate after 2027 equal to 2.5% (2.0% in 2021).
The goodwill impairment test carried out as at 31 December 2022 identified the need for an additional allowance to be
recognised in the consolidated financial statements of the GPW Group at PLN 3,126 thousand, bringing the total allowance
in 2022 to PLN 9,832 thousand. With the recognition of the allowance, the recoverable amount is equal to the carrying
amount; hence, any negative change of the key assumptions would require a further allowance.
27
D
ATA FOR THE YEAR ENDED
31
D
ECEMBER
2022. A
LL AMOUNTS IN
PLN’000
UNLESS STATED OTHERWISE
.
C
ONSOLIDATED
F
INANCIAL
S
TATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
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 2022 by estimating the value in use under the
discounted cash flows (DCF) method according to the financial assumptions for 2023-2027 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 was carried out using the DCF method on the basis of InfoEngine’s projected earnings in 2023-
2027. The key assumptions of the test performed as at 31 December 2022:
average annual revenue growth in the period 2023-2027 of 5.0% (7.5% in 2021),
weighted average cost of capital of 10.32% (7.66% in 2021),
growth rate after 2027 equal to 2.5% (2.0% in 2021).
The goodwill impairment test performed as at 31 December 2022 did not indicate a need for a write-down in the consolidated
financial statements of the GPW Group. No reasonable change in the assumptions would give rise to an impairment of
goodwill arising from the acquisition of an organised part of the enterprise.
Following the analysis, the Exchange Management Board identified no circumstances indicating impairment of the goodwill
of Platforma Obrotu Energią Elektryczną as at 31 December 2022.
Goodwill
Gross carrying
amount
Impairment
Net amount
after
impairment
Goodwill from:
GPW's taking control of TGE Group 147,792
-
147,792
GPW's taking control of BondSpot 22,986
(13,356) 9,630
InfoEngine's acquisition of Platforma Obrotu Energią Elektryczną (poee) 1,588
(1,404) 184
GPW's taking control of GPWB 8
-
8
GPW's taking control of GPWL 17
-
17
GPW's taking control of GPWPM 19
-
19
GPW's taking control of GPW DAI 19
-
19
Total as at 31 December 2022 172,429
(14,760) 157,669
Net amount after impairment
GPW's taking control of TGE Group 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
The table below presents the Group’s key assumptions and estimates used to assess goodwill impairment.
Projection
years
WACC
Revenue
CAGR
Growth rate
after the
projection
horizon
Key valuation assumptions as at 31 December 2022
Goodwill from:
GPW's taking control of TGE Group 5 10.32% 1.6% 2.5%
GPW's taking control of BondSpot 5 10.32% 14.5% 2.5%
InfoEngine's acquisition of Platforma Obrotu Energią Elektryczną (poee) 5 10.32% 5.0% 2.5%
28
D
ATA FOR THE YEAR ENDED
31
D
ECEMBER
2022. A
LL AMOUNTS IN
PLN’000
UNLESS STATED OTHERWISE
.
C
ONSOLIDATED
F
INANCIAL
S
TATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
Projection
years
WACC
Revenue
CAGR
Growth rate
after the
projection
horizon
Key valuation assumptions as at 31 December 2021
Goodwill from:
GPW's taking control of TGE Group 5 7,66% 2,4% 2,0%
GPW's taking control of BondSpot 5 7,66% 16,6% 2,0%
InfoEngine's acquisition of Platforma Obrotu Energią Elektryczną (poee) 5 7,66% 7,5% 2,0%
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
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 2022 and as at 31 December 2021 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. The tables below show the changes in the value
of the investments in 2022 and 2021.
Year ended 31 December 2022
KDPW Group
Centrum
Giełdowe S.A .
Total
Opening balance 213,959
16,866
230,825
Dividends due to GPW S.A . (9,793) (763) (10,556)
Share of net profit/(loss ) 28,076
409
28,485
Other increase/(decrease) of profit (230) -
(230)
Total Group share of profit/(loss ) after tax 27,846
409
28,255
Share in other comprehensive income (7,211) -
(7,211)
Entities measured by equity method - closing balance 224,801
16,512
241,313
29
D
ATA FOR THE YEAR ENDED
31
D
ECEMBER
2022. A
LL AMOUNTS IN
PLN’000
UNLESS STATED OTHERWISE
.
C
ONSOLIDATED
F
INANCIAL
S
TATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
Year ended 31 December 2021
KDPW Group
Centrum
Giełdowe S.A .
Total
Opening balance 203,366
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)
Entities measured by equity method - closing balance 213,959
16,866
230,825
The tables below present a summary of financial information for investments measured using the equity method.
As at/Year ended 31 December 2022
KDPW
Group**
Centrum
Giełdowe S.A .
Polska Agencja
Ratingowa S.A
Total
Current assets, incl.:
3,277,674
13,569
1,809
n/d
cash and cash equivalents
68,042
12,296
199
n/d
Non-current asset
473,115
59,087
784
n/d
Current liabilities
3,050,019
2,404
797
n/d
Non-current liabilities
15,904
3,064
-
n/d
Sales revenue
216,538
16,311
2,797
n/d
Depreciation and amortisation
25,194
3,386
698
n/d
Income tax
16,028
429
-
n/d
Dividend due to GPW S.A . in 2021
9,793
763
-
n/d
Net prof it/(loss) for the period ended 31 December
2022
83,470
1,651
1,085
n/d
Group share of prof it/(loss) for the period ended 31
December 2022
27,846
409
-
28,255
* 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 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 asset
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
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 GP W S.A . in 2020
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.
30
D
ATA FOR THE YEAR ENDED
31
D
ECEMBER
2022. A
LL AMOUNTS IN
PLN’000
UNLESS STATED OTHERWISE
.
C
ONSOLIDATED
F
INANCIAL
S
TATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
Investment in PAR
The Exchange held 35.86% of PAR as at 31 December 2022 and as at 31 December 2021.
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 2022
and as at 31 December 2021.
Note 6.5.2 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:
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. Q
UALITATIVE 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:
31
D
ATA FOR THE YEAR ENDED
31
D
ECEMBER
2022. A
LL AMOUNTS IN
PLN’000
UNLESS STATED OTHERWISE
.
C
ONSOLIDATED
F
INANCIAL
S
TATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
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 of assets for a term shorter than 12 months (short-term lease) in 2022 and in 2021.
The table below shows the lease costs recognised in the statement of comprehensive income.
Note
Year ended 31 December
2022 2021
Depreciation of right-to-use assets 3.4.4. 5,483
5,385
Interest on lease liabilities 4.6. 241
353
Revaluation of leasing contracts 1,139
17
Total lease cost in the statement of comprehensive income
6,863
5,755
The Group incurred no variable lease costs in 2022 and in 2021 that would not be included in the value of lease liabilities.
3.4.2. Q
UALITATIVE 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 2022, 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 the amount of the Group’s income as lessor/sub-
lessor, sublease fees due in the next 5 years or reconciliation of due sublease fees with net lease investments.
3.4.3. S
ELECTED 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
32
D
ATA FOR THE YEAR ENDED
31
D
ECEMBER
2022. A
LL AMOUNTS IN
PLN’000
UNLESS STATED OTHERWISE
.
C
ONSOLIDATED
F
INANCIAL
S
TATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
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.
Year ended 31 December
2022 2021
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 (3,590) 6,726
(4,968) 4,691
Impact on operating expenses (depreciation) (3,219) (180) (5,013) 4,529
Impact on lease interest expense (156) 191
(1,496) 437
The Exchange Management Board determined the lease rate using judgment of the interest rate that the Group would have
to pay to borrow, for a similar term and against similar collateral, funds necessary to buy the asset used under the lease
contract. In the opinion of the Management Board, the interest rate on the bonds issued by the Group is a reasonable
reflection of that rate. The table below shows the potential impact of a change in interest rate estimates.
Year ended 31 December
2022 2021
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 23
(23) 71
(68)
Impact on operating expenses (depreciation) 64
(62) 214
(203)
Impact on lease interest expense (57) 56
(99) 112
3.4.4. R
IGHT-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.
33
D
ATA FOR THE YEAR ENDED
31
D
ECEMBER
2022. A
LL AMOUNTS IN
PLN’000
UNLESS STATED OTHERWISE
.
C
ONSOLIDATED
F
INANCIAL
S
TATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
The table below presents changes to right-to-use assets by category, net of subleased assets.
Year ended 31 December 2022
Office space
and other
premises
Vehicles and
machinery
Colocation
space
Total
Right-of-use assets - as at the beginning of the
period
3,796
283
5,005
9,084
New leases
-
152
-
152
Terminated leases
(13)
-
-
(13)
Asset remeasurement 399
362
-
761
Acquired in business combination
205
-
-
205
Reclassification and other adjustments
(54)
33
-
(21)
Depreciation
(2,258)
(571)
(2,654)
(5,483)
Net carrying amount - closing balance 2,075
259
2,351
4,685
Year ended 31 December 2021
Office space and
other premises
Vehicles and
machinery
Colocation
space
Total
Right-of-use assets - as at the beginning of
the period
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
3.4.5. L
EASE 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).
34
D
ATA FOR THE YEAR ENDED
31
D
ECEMBER
2022. A
LL AMOUNTS IN
PLN’000
UNLESS STATED OTHERWISE
.
C
ONSOLIDATED
F
INANCIAL
S
TATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
An analysis of lease liabilities by due date is presented in Note 2.4.
The table below presents changes to lease liabilities by category.
Year ended 31 December 2022
Office space
and other
premises
Vehicles and
machinery
Colocation
space
Total
Lease liabilities - as at the beginning of the period 4,103
225
5,235
9,563
New leases 2
150
-
152
Terminated leases
(14)
(3)
-
(17)
Interest on lease liabilities 106
24
117
247
Lease liabilities paid in the period (equal to leasing fees) (2,598) (607) (2,842) (6,047)
Remeasurement of lease liabilities 777
362
-
1,139
Reclassification and other adjustments 74
137
1
212
Acquired in business combination
98
-
-
98
Net carrying amount - closing balance, including: 2,548
288
2,511
5,347
non-current 405
90
-
495
current 2,143
198
2,511
4,852
Year ended 31 December 2021
Office space and
other premises
Vehicles and
machinery
Colocation
space
Total
Lease liabilities - as at the beginning of the period 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
35
D
ATA FOR THE YEAR ENDED
31
D
ECEMBER
2022. A
LL AMOUNTS IN
PLN’000
UNLESS STATED OTHERWISE
.
C
ONSOLIDATED
F
INANCIAL
S
TATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
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.
The table below presents changes to sublease receivables by category.
Year ended 31 December 2022
Office space
and other
premises
Vehicles and
machinery
Colocation
space
Total
Net carrying amount
at the beginning of the period
71
-
-
71
Interest on sublease receivables 8
-
-
8
Sublease receivables paid in the period (equal to leasing
fees)
(112) -
1
(111)
Remeasurement of sublease receivables
378
-
-
378
Reclassification and other adjustments 39
-
(1) 38
Net carrying amount - closing balance, including: 384
-
-
384
non-current
290
-
-
290
current
94
-
-
94
Year ended 31 December 2021
Office space and
other premises
Vehicles and
machinery
Colocation
space
Total
Net carrying amount
at the beginning of the period
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
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
D
ATA FOR THE YEAR ENDED
31
D
ECEMBER
2022. A
LL AMOUNTS IN
PLN’000
UNLESS STATED OTHERWISE
.
C
ONSOLIDATED
F
INANCIAL
S
TATEMENTS
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 2022 and as at 31
December 2021. The fair value of the shares was PLN 0 as at 31 December 2022 and as at 31 December 2021.
3.5.2. I
MPAIRMENT 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 losses for assets related to debt instruments measured at amortised cost regardless of
whether there is an indication of impairment. The allowance for expected credit losses is made based on the estimated
ratings of the issuer and the probability of loss assigned to the rating and the amount of loss.
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
Group 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 and as a
cost of the period in financial expenses.
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
D
ATA FOR THE YEAR ENDED
31
D
ECEMBER
2022. A
LL AMOUNTS IN
PLN’000
UNLESS STATED OTHERWISE
.
C
ONSOLIDATED
F
INANCIAL
S
TATEMENTS
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.
The table below shows the Group’s investments measured at fair value through other comprehensive income.
Year ended 31 December 2022
Innex BVB ETF TransactionLink Total
Value at cost 3,820
1,343
5,000
692
10,855
Revaluation
(3,820)
(1,168)
(287)
1,101
(4,174)
Carrying amount -
175
4,713
1,793
6,681
Year ended 31 December 2021
Innex BVB ETF TransactionLink Total
Value at cost 3,820
1,343
-
-
5,163
Revaluation (3,820) (1,220) -
-
(5,040)
Carrying amount -
123
-
-
123
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 2022.
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.
TransactionLink
The investment includes 60 shares in TransactionLink Sp. z o.o. acquired by GPW Tech S.A.. The entity offers a technology
platform providing services including identity verification processes, financial history checks and credit risk assessment.
ETF
The Exchange purchased 25,929 certificates of the BETA ETF based on the Treasury BondSpot Poland Index. The arranger
of the issue is AgioFunds TFI S.A. The instrument was newly listed on 17 January 2022.
38
D
ATA FOR THE YEAR ENDED
31
D
ECEMBER
2022. A
LL AMOUNTS IN
PLN’000
UNLESS STATED OTHERWISE
.
C
ONSOLIDATED
F
INANCIAL
S
TATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
Fair value hierarchy
Selected accounting policies
The Group classifies the valuation at fair value on the basis of a fair value hierarchy which reflects the significance of valuation
input data. The fair value hierarchy includes the following levels:
(unadjusted) trading prices on active markets for identical assets or liabilities (level 1);
input data other than trading prices at level 1, which can be identified or observed for an asset or liability, directly
(as prices) or indirectly (calculations based on prices) (level 2); and
input data for an asset or liability not based on observable market data (non-observable data) (level 3).
The fair value of BVB shares and ETFs as at 31 December 2022 and as at 31 December 2021 was recognised at the share
price (level 1 of the fair value hierarchy).
3.5.4. T
RADE 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 and grants receivable.
Non-current prepayments are presented as prepayments in non-current assets in the consolidated statement of financial
position.
The table below shows trade and other significant categories of receivables.
As at
31 December 2022 31 December 2021
Gross trade receivables 48,846
49,553
Impairment allowances for trade receivables (4,009) (4,516)
Total trade receivables 44,837
45,037
Current prepayments 7,243
7,061
VAT refund receivable 10,012
114,316
Sublease receivables 12
12
Grants receivable 3,889
3,670
Other receivables 13,355
6,981
Total other receivables 34,511
132,040
Total trade receivables and other receivables 79,348
177,077
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.
The table below shows trade receivables by maturity and the allowance for expected credit losses.
39
D
ATA FOR THE YEAR ENDED
31
D
ECEMBER
2022. A
LL AMOUNTS IN
PLN’000
UNLESS STATED OTHERWISE
.
C
ONSOLIDATED
F
INANCIAL
S
TATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
As at 31 December 2022 As at 31 December 2021
Trade
receivables
Impairment
Total
receivables
Trade
receivables
Impairment
Total
receivables
Receivables which are not overdue
36,119
(103)
36,016
41,356
(85)
41,271
1 to 30 days overdue 5,289
(38) 5,251
2,605
(34) 2,571
31 to 61 days overdue 1,994
(13) 1,981
595
(20) 575
61 to 90 days overdue 1,442
(17) 1,425
358
(17) 341
91 to 180 days overdue 155
(12) 143
315
(36) 279
More than 180 days overdue 3,847
(3,826) 21
4,324
(4,324) -
Overdue receivables 12,727
(3,906) 8,821
8,197
(4,431) 3,766
Total gross trade receivables 48,846
(4,009) 44,837
49,553
(4,516) 45,037
As at 31 December 2022, the Group’s trade receivables at PLN 12,727 thousand were overdue, including PLN 7,971 thousand
at the parent entity (31 December 2021 – PLN 8,197 thousand, including PLN 5,851 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 955 thousand and other overdue receivables at PLN 11,774 thousand as at 31 December 2022 (31
December 2021 – PLN 743 thousand and PLN 7,454 thousand, respectively).
As at
31 December 2022 31 December 2021
Exchange Members 23,315
15,972
Issuers* 1,097
231
Other* 11,707
25,154
Total gross trade receivables not overdue 36,119
41,356
* 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.
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. The details are
presented in the table below.
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 2022 31 December 2021
Aa 588
1,340
A 6,507
8,194
Baa 222
487
Ba 14
50
B and BB 101
112
No rating 15,688
5,790
Total trade receivables from Exchange Members 23,315
15,972
40
D
ATA FOR THE YEAR ENDED
31
D
ECEMBER
2022. A
LL AMOUNTS IN
PLN’000
UNLESS STATED OTHERWISE
.
C
ONSOLIDATED
F
INANCIAL
S
TATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
The Group has no collateral on receivables.
None of the Group’s trade receivables were subject to renegotiation of the amount in 2022 and in 2021.
The fair value of trade receivables and other receivables is not significantly different from the carrying amount.
The table below shows trade receivables by domestic and international receivables.
As at
31 December 2022 31 December 2021
Domestic receivables 30,851
33,349
Foreign receivables 17,995
16,204
Total gross trade receivables 48,846
49,553
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 2022
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 0.11% to 4.11%,
issuers of securities listed on markets operated by the Exchange – from 1.71% to 34.97%,
other clients (including data vendors) – from 0.15% to 1.58%.
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 impairment of trade receivables was determined according to the expected loss concept using a provision matrix
described in Note 3.5.2.
As at
31 December 2022 31 December 2021
Opening balance 4,516
6,685
Creating a write-off 1,453
2,328
Dissolution of the write-off (2,018) (4,074)
Utilisation of the write-off (39) -
Increase due to business combination 102
-
Receivables written off during the period as uncollectible (5) (423)
Closing balance 4,009
4,516
41
D
ATA FOR THE YEAR ENDED
31
D
ECEMBER
2022. A
LL AMOUNTS IN
PLN’000
UNLESS STATED OTHERWISE
.
C
ONSOLIDATED
F
INANCIAL
S
TATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
The change of the impairment allowance for trade receivables in 2022 was PLN 507 thousand (decrease of allowance)
resulting from a higher amount of reversal (PLN 2,018 thousand) than creation of allowance (PLN 1,453 thousand); PLN 565
thousand was recognised in the statement of comprehensive income in 2022 as gains on reversed impairment of receivables
and PLN 5 thousand were receivables written off as non-recoverable.
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.
3.5.5. F
INANCIAL 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) and up to 3 months (from
purchase/contracting) considered to be at risk of impairment as a result of possible changes in the economic environment
or the issuer’s condition and therefore not classified as cash, 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.
The table below shows current financial assets measured at amortised cost.
As at
31 December 2022 31 December 2021
Corporate bonds 53,737
150,271
Bank deposits -
117,081
Other assets 10,273
10,148
Total current 64,010
277,500
Allowance for losses on debt instruments measured at amortised cost (46) (178)
Total financial assets measured at amortised cost 63,964
277,322
The table below shows recognised financial income in relation to presented financial assets.
Year ended 31 December 2022
Interest received Remeasurement
Total amounts included
in financial income
Corporate bonds 4,740
(27) 4,713
Bank deposits 537
(81) 456
Borrowings granted 37
-
37
Total financial assets measured at amortised cost 5,314
(108) 5,206
42
D
ATA FOR THE YEAR ENDED
31
D
ECEMBER
2022. A
LL AMOUNTS IN
PLN’000
UNLESS STATED OTHERWISE
.
C
ONSOLIDATED
F
INANCIAL
S
TATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
Year ended 31 December 2021
Interest received Remeasurement
Total amounts included
in financial income
Corporate bonds
365
95
460
Bank deposits
79
71
150
Total financial assets measured at amortised cost 444
166
610
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 2022 31 December 2021
A+ 5,084
5,086
A
-
50,094
A- 34,601
217,079
Baa 19,097
-
Ba/BBB+ 5,181
5,064
Total 63,964
277,322
3.5.6. C
ASH 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).
Cash and cash equivalents include current accounts and short-term bank deposits (up to 3 months). The details are shown
in the table below.
As at
31 December 2022 31 December 2021
Current accounts (other)
114,844
100,406
VAT current accounts (split payment) 604
1,911
Corporate bonds (banks)
-
14,995
Bank deposits
263,430
232,245
Expected credit loss (237) (233)
Total cash and cash equivalents 378,641
349,324
0.00
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 12 days in 2022 and 22 days in 2021.
At the commencement of the development projects: New Trading System, GPW Data, GPW Private Market, TeO, PCOL and
Gospostrateg (see Note 6.4), the Group opened dedicated banks accounts for each of those projects. The total balance in
those accounts was PLN 7,698 thousand as at 31 December 2022 (PLN 4,389 thousand as at 31 December 2021). Cash in
such accounts is classified as restricted cash.
Cash in VAT accounts at PLN 604 thousand (PLN 1,911 thousand as at 31 December 2021) is also restricted cash due to
regulatory restrictions on the availability of cash in such accounts for current payments.
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.
43
D
ATA FOR THE YEAR ENDED
31
D
ECEMBER
2022. A
LL AMOUNTS IN
PLN’000
UNLESS STATED OTHERWISE
.
C
ONSOLIDATED
F
INANCIAL
S
TATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
As at
31 December 2022 31 December 2021
Aaa
9,251
3
A+
351
220
A- 192,337
270,700
Ba/BBB+ 161,831
78,401
No rating 14,871
-
Total 378,641
349,324
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 other revenue on the international markets earned by TGE and information services at GPW. Other
revenue classified as contract assets stood at PLN 1,949 thousand as at 31 December 2022 and PLN 2,412 thousand as at
31 December 2021.
Contract liabilities include annual and quarterly fees paid by market participants as well as fees for introduction of instruments
into trading.
As at
31 December 2022 31 December 2021
Listing 7,048
7,249
Total financial market 7,048
7,249
Other revenue 228
202
Total non-current 7,276
7,451
Trading
731
1,313
Listing
3,182
3,488
Information services and revenue from the calculation of reference rates -
2
Total financial market 3,913
4,803
Trading 249
506
Total commodity market 249
506
Other revenue 245
258
Total current
4,407
5,567
Total contract liabilities 11,683
13,018
3.7. NON-CURRENT PREPAYMENTS
Selected accounting policies
Non-current prepayments present amounts paid relating to future periods which are recognised over time.
As at
31 December 2022 31 December 2021
IT equipment maintenance service
599
2,469
Other
182
5
Total non-current prepayments 781
2,474
44
D
ATA FOR THE YEAR ENDED
31
D
ECEMBER
2022. A
LL AMOUNTS IN
PLN’000
UNLESS STATED OTHERWISE
.
C
ONSOLIDATED
F
INANCIAL
S
TATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
3.8. 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.
3.8.1. S
HARE CAPITAL
As at 31 December 2022 and as at 31 December 2021, 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 2022 and as at 31 December 2021.
3.8.2. O
THER RESERVES
The table below shows the carrying amount and the change during the period for other reserves.
As at 1 January
2022
Change on
revaluation
As at 31
December 2022
Revaluation (1) 866
865
Deferred tax 1
(55) (54)
Total reserves arising from financial assets measured at fair value
through other comprehensive income
-
811
811
Share of other comprehensive income/(expense) of entities measured by
equity method (net)
(5,546) (7,211) (12,757)
Total for entities measured by the equity method (5,546) (7,211) (12,757)
Revaluation (15) 20
5
Deferred tax 4
(4) -
Total capital from actuarial gains/losses (11) 16
5
Total other reserves (5,557) (6,384) (11,941)
3.8.3. R
ETAINED 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.
45
D
ATA FOR THE YEAR ENDED
31
D
ECEMBER
2022. A
LL AMOUNTS IN
PLN’000
UNLESS STATED OTHERWISE
.
C
ONSOLIDATED
F
INANCIAL
S
TATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
Reserve
capital
Other
reserves
Retained
earnings
Profit for the
period
Total
retained
earnings
As at 1 January2022 118,878
435,141
193,635
161,249
908,903
Distribution of the net profit for the year 2021 1,580
130,741
28,928
(161,249) -
Dividends -
-
(115,003) -
(115,003)
Profit for the period ended 31 December 2022 -
-
-
144,956
144,956
As at 31 December 2022 120,458
565,882
107,560
144,956
938,856
Reserve
capital
Other
reserves
Retained
earnings
Profit for the
period
Total
retained
earnings
As at 1 January2021 117,223
370,949
212,156
152,256
852,584
Distribution of the net profit for the year 2020 1,655
64,192
86,409
(152,256) -
Dividends -
-
(104,930) -
(104,930)
Profit for the year 2021 -
-
-
161,249
161,249
As at 31 December 2021 118,878
435,141
193,635
161,249
908,903
3.8.4. D
IVIDEND
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 23 June 2022, the Annual General Meeting of the Exchange passed a resolution to distribute the Company’s profit for
2021, including a dividend payment of PLN 115,003 thousand. The dividend per share was PLN 2.74. The dividend record
date was 25 July 2022 and the dividend payment date was 5 August 2022. The dividend due to the State Treasury was PLN
40,266 thousand.
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.
In 2021, BondSpot S.A. paid outstanding dividend to a minority shareholder at PLN 29 thousand due for the years 2014-
2016.
3.8.5. E
ARNINGS PER SHARE
Selected accounting policies
Basic earnings per share is calculated by dividing the net profit attributable to equity holders of the parent entity by the
weighted average number of shares in issue.
Diluted earnings per share is calculated by dividing the net profit attributable to equity holders of the parent entity by the
weighted average number of shares in issue, adjusted for the number of potential shares that could be issued as a result of
the conversion of dilutive equity instruments into shares.
46
D
ATA FOR THE YEAR ENDED
31
D
ECEMBER
2022. A
LL AMOUNTS IN
PLN’000
UNLESS STATED OTHERWISE
.
C
ONSOLIDATED
F
INANCIAL
S
TATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
Year ended 31 December
2022 2021
Net profit for the period 144,956
161,249
Weighted average number of ordinary shares (in thousands) 41,972
41,972
Basic/diluted earnings per share (in PLN) 3.45 3.84
There are no dilutive instruments in the Group.
3.9. 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 table below shows the outstanding balance of the bond issue.
As at
31 December 2022 31 December 2021
Series C bonds -
125,746
Series D and E bonds -
120,532
Total current -
246,278
Total liabilities under bond issue -
246,278
On 31 January 2022, GPW redeemed series D and E bonds issued on 18 January 2017 with a total nominal value of PLN
120,000 thousand.
On 6 October 2022, GPW redeemed series C bonds issued on 6 October 2015 with a total nominal value of PLN 125,000
thousand.
The changes in the bond liability in 2022 and 2021 are shown in the tables below.
Year ended 31 December 2022
Opening
balance
Interest
accrued
Interest
paid
Bonds
redeemed
Cost settled
Closing
balance
Principal 244,929
71
-
(245,000) -
-
Interest 1,539
3,169
(4,708) -
-
-
Cost of issuance (190) -
-
-
190
-
Total Liabilities under bond issue 246,278
3,240
(4,708) (245,000) 190
-
47
D
ATA FOR THE YEAR ENDED
31
D
ECEMBER
2022. A
LL AMOUNTS IN
PLN’000
UNLESS STATED OTHERWISE
.
C
ONSOLIDATED
F
INANCIAL
S
TATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
Year ended31 December 2021
Opening
balance
Interest
accrued
Interest
paid
Bonds
redeemed
Cost settled
Closing
balance
Principal 244,929
-
-
-
-
244,929
Total Liabilities under bond issue 245,905
5,440
(5,452) (1) 386
246,278
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 2/01/2017 1/31/2022 60,000
PLN WIBOR 6M + 0,95% 6M
Series E bonds 1/18/2017 1/31/2022 60,000
PLN WIBOR 6M + 0,95% 6M
The fair value of the bonds was recognised based on quoted prices (level 1 in the fair value hierarchy). The table below
presents the fair value of bonds in issue.
As at
31 December 2022 31 December 2021
Fair value of series C bonds
-
126,491
Fair value of series D and E bonds
-
120,588
Total fair value of bonds in issue -
247,079
3.10. 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.
The table below shows employee benefits payable recognised as at the balance sheet date.
As at
31 December 2022
31 December 2021
Retirement benefits
1,006
915
Other employee benefits 518
603
Non-current 1,524
1,518
Retirement benefits 174
133
Other employee benefits
30,935
30,973
Current 31,109
31,106
Total benefits in the statement of financial position 32,633
32,624
48
D
ATA FOR THE YEAR ENDED
31
D
ECEMBER
2022. A
LL AMOUNTS IN
PLN’000
UNLESS STATED OTHERWISE
.
C
ONSOLIDATED
F
INANCIAL
S
TATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
3.10.1. 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. Changes of retirement benefits in the period are shown in the table below.
Year ended
31 December 2022
31 December
2021
Retirement benefits - opening balance 1,048
1,184
Current service cost 138
174
Interest cost 38
15
Gains and losses on the benefits scheme (18) (8)
Actuarial losses/(gains) shown in other comprehensive income due to change
of:
(20) (317)
- financial assumptions (41) (244)
- demographic assumptions (52) -
- other assumptions 73
(73)
Total change shown in comprehensive income 138
(136)
Benefits paid (6) -
Retirement benefits - closing balance 1,180
1,048
The key actuarial assumptions used to determine the present value of retirement benefits payable are presented in the table
below.
Year ended
31 December 2022 31 December 2021
Discount rate
6.7%
3.6%
Expected average annual increase of the base of provisions for retirement benefits 6.0% 3.5%
Inflation p.a.
n/a
2.5%
Weighted average employee mobility
6,8% -11,7%
6,2% - 9,7%
3.10.2. O
THER EMPLOYEE BENEFITS
The table below shows the details of other employee benefits and their changes during the financial year.
Year ended 31 December 2022
Opening
balance
Set up Used Reclassified Released
Closing
balance
Annual and discretionary bonuses
22,445
21,502
(15,557)
(46)
(3,691)
24,653
Benefits after termination -
611
(102) -
(305) 204
Unused holiday leave 5,141
5,003
(3,344) -
(1,149) 5,651
Overtime
136
2,596
(2,451)
-
-
281
Unpaid remuneration* 3,251
142
(64) (1,311) (1,872) 146
Total current 30,973
29,854
(21,518) (1,357) (7,017) 30,935
Annual and discretionary bonuses 603
27
(38) 46
(120) 518
Total non-current 603
27
(38) 46
(120) 518
Total other employee benefits
payable
31,576
29,881
(21,556) (1,311) (7,137) 31,453
49
D
ATA FOR THE YEAR ENDED
31
D
ECEMBER
2022. A
LL AMOUNTS IN
PLN’000
UNLESS STATED OTHERWISE
.
C
ONSOLIDATED
F
INANCIAL
S
TATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
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
3.11. 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.
The following table shows accruals and deferred income. These mainly relate to grants received, which are presented by
project. Grants received are described in Note 6.4.
As at
31 December
2022
31 December 2021
PCR 3,537
3,770
Agricultural Market 316
488
New Trading System Project 19,753
13,243
GPW Data Project 3,934
2,518
Telemetria Project 1,671
-
Private Market 814
532
Project PCOL 874
-
Total non-current deferred income from grants 30,899
20,551
PCR 280
375
Agricultural Market 226
333
Telemetria Project -
1,191
Private Market 3,127
1,652
Total non-current deferred income from grants 3,633
3,551
Other deferred liabilities 1,122
-
Total other deferred liabilities 1,122
-
Total current 4,755
3,551
Total accruals and deferred income 35,654
24,102
50
D
ATA FOR THE YEAR ENDED
31
D
ECEMBER
2022. A
LL AMOUNTS IN
PLN’000
UNLESS STATED OTHERWISE
.
C
ONSOLIDATED
F
INANCIAL
S
TATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
3.12. OTHER LIABILITIES
The table below shows the details of other liabilities as at the balance sheet date.
As at
31 December 2022 31 December 2021
Security deposits - collateral on the balancing market -
985
Liabilities to the Polish National Foundation 4,361
5,731
Perpetual usufruct liabilities 3,989
3,561
Liabilities due to the purchase of subsidiary 3,112
-
Total non-current 11,462
10,277
Dividend payable 15
9
VAT payable 14,140
43,201
Liabilities in respect of other taxes 4,497
3,067
Contracted investments 8,558
5,387
Liabilities to the Polish National Foundation 1,371
1,331
Other liabilities 3,486
5,027
Total current 32,067
58,022
Total other liabilities 43,529
68,299
As a co-founder of the Polish National Foundation established in 2016 by 17 companies owned by the State (“PFN”), the
Exchange is required to contribute annual payments towards the statutory mission of PFN, totaling 11 annual payments from
the establishment of the Foundation. Payments to PFN are donations and the liability of GPW to make all payments to PFN
according to the founding deed of the Foundation arose when GPW joined the Foundation and signed its founding deed in
2016. The liability was recognised in the costs of 2016 and is charged over time. The liability of the Exchange to PFN was
PLN 5,732 thousand as at 31 December 2022 (PLN 7,062 thousand as at 31 December 2021).
3.13. 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 2022 31 December 2021
Trade payables to associates 89
91
Trade payables to other entities, accruals and deferred income 17,838
13,613
Total trade payables 17,927
13,704
Due to the short due dates of trade payables, the carrying amount of trade payables is similar to the fair value.
51
D
ATA FOR THE YEAR ENDED
31
D
ECEMBER
2022. A
LL AMOUNTS IN
PLN’000
UNLESS STATED OTHERWISE
.
C
ONSOLIDATED
F
INANCIAL
S
TATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
3.14. 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
2022
(Credited)/
Debited in
profit
(Credited)/Debited
in other
comprehensive
income
Acquired in
business
combination
As at 31 December 2022
(Asset)/
liabilities
Deferred
tax asset
Deferred
tax liability
Difference between accounting and tax
value of property, plant and equipment
and intangible asset
7,996
(2,359) -
35
5,672
-
5,672
Impairment loss on investment in other
entities
(1,227) -
55
-
(1,172)
(1,172) -
Employee benefits (6,161) (107) 4
-
(6,264)
(6,264) -
Costes estimates (691) (631) -
(149)
(1,471)
(1,471) -
Deferred income (2,803) 212
-
-
(2,591)
(2,591) -
Impairment loss on trade receivables (761) 116
-
3
(642) (642) -
Interest and costs of bond issue (256) 257
-
-
1
-
1
Other (31) 3
-
2,127
2,099
-
2,099
Total deferred tax (asset)/liability (3,934) (2,509) 59 2,016 (4,368) (12,140) 7,772
Offset -
-
-
-
-
5,614
(5,614)
Total deferred tax (asset)/liability
(net)
-
-
-
-
-
(6,526) 2,158
52
D
ATA FOR THE YEAR ENDED
31
D
ECEMBER
2022. A
LL AMOUNTS IN
PLN’000
UNLESS STATED OTHERWISE
.
C
ONSOLIDATED
F
INANCIAL
S
TATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
Deferred tax (asset)/liability
As at 1
January
2021
(Credited)/
Debited in
profit
(Credited)/Debited
in other
comprehensive
income
Acquired in
business
combination
As at 31 December 2021
(Asset)/
liabilities
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) 65
-
(6,161)
(6,161) -
Costes 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) 66 - (3,934) (11,930) 7,996
Offset 7,757
(7,757)
Total deferred tax (asset)/liability
(net)
(4,173) 239
3.15. PROVISIONS FOR OTHER LIABILITIES AND OTHER CHARGES
Selected accounting policies
Provisions are liabilities arising from past events whose amount or due date is uncertain. A provision is recognised when the
entity has a present obligation (legal or constructive) as a result of a past event or it is probable that an outflow of economic
benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. If the
effect of the change in the time value of money is material, the provision is discounted using a pre-tax discount rate that
reflects current market assessments of the time value of money and the risks associated with the liability.
As at 31 December 2022, provisions for liabilities and other charges stood at PLN 32,098 thousand (including a provision for
IRGiT’s VAT at PLN 30,202 thousand). As at 31 December 2021, provisions and other charges stood at PLN 28,837 thousand
(including a provision for IRGiT’s VAT at PLN 28,771 thousand) (see Note 6.12).
3.16. PHANTOM SHARES
Selected accounting policies
The Exchange maintains a Phantom Share Scheme, which is treated as a cash-settled scheme under IFRS 2 Share-based
Payment. For future payments of the Scheme, a liability is recognised in the consolidated statement of financial position
under items relating to employee benefits payable. The liability associated with the shares granted is measured at each
balance sheet date at the closing price of GPW shares on the balance sheet date. Differences in the measurement at fair
value at the balance sheet date are recognised in employee costs in the statement of comprehensive income.
On 29 April 2021, on the occasion of the 30
th
anniversary of the Company, the Exchange Management Board approved a
Phantom Share Scheme (“Scheme”) for GPW employees. The Scheme covers all GPW employees in employment as at 16
April 2021. The total number of phantom shares granted at the beginning of the Scheme was 10,428 shares.
In each successive year of the Scheme, 4 phantom shares are awarded to each Scheme participant as at 16 April and the
only condition for the award is that the employee is employed by GPW. The phantom shares are subject to a lock-up until
53
D
ATA FOR THE YEAR ENDED
31
D
ECEMBER
2022. A
LL AMOUNTS IN
PLN’000
UNLESS STATED OTHERWISE
.
C
ONSOLIDATED
F
INANCIAL
S
TATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
the termination or expiry of the employment relationship or until the employee reaches retirement age (“Lock-up Period”).
After the Lock-up Period, the employee acquires an unconditional right to receive a cash benefit for the phantom shares
held, at the closing price of the GPW shares on 16 April of the year prior to vesting.
Allocated phantom shares retain the right to dividends. The employee may, by 30 September each year, request a dividend
payment, which is made by 15 October each year. In the event that the employee does not request a payment during the
term of employment, the payment is made upon termination of employment or retirement.
The Exchange Management Board may decide to terminate the Phantom Share Scheme, but not before the end of 2031.
As at 31 December 2022, the estimated number of phantom shares was 10,483 shares (31 December 2021: 10,301 shares).
In 2022, the cost of the Scheme was PLN 12 thousand (year ended 31 December 2021: PLN 621 thousand).
As at 31 December 2022, the Phantom Share Scheme liabilities amounted to PLN 707 thousand (31 December 2021: PLN
743 thousand), of which non-current liabilities amounted to PLN 518 thousand (31 December 2021: PLN 603 thousand) and
current liabilities amounted to PLN 189 thousand (31 December 2021: PLN 140 thousand).
54
D
ATA FOR THE YEAR ENDED
31
D
ECEMBER
2022. A
LL AMOUNTS IN
PLN’000
UNLESS STATED OTHERWISE
.
C
ONSOLIDATED
F
INANCIAL
S
TATEMENTS
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). 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 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.
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
55
D
ATA FOR THE YEAR ENDED
31
D
ECEMBER
2022. A
LL AMOUNTS IN
PLN’000
UNLESS STATED OTHERWISE
.
C
ONSOLIDATED
F
INANCIAL
S
TATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
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
2022
2021
Financial market 247,748
254,688
Trading 167,505
177,895
Equities and other equity-related instruments 123,691
143,797
Derivatives 21,317
13,737
Other fees paid by market participants 9,974
8,353
Debt instruments 11,070
10,745
Other cash instruments 1,453
1,263
Listing
22,989
21,553
Listing fees 19,272
17,165
Fees for introduction and other fees 3,717
4,388
Information services:
57,254
55,240
Real-time data 53,761
51,991
Historical and statistical data and indices 3,493
3,249
Commodity market 138,056
149,957
Trading 69,193
74,682
Transactions in electricity: 13,374
19,068
Spot 4,926
5,321
Forward 8,448
13,747
Transactions in gas: 11,525
14,970
Spot 2,288
2,944
Forward 9,237
12,026
Transactions in property rights to certificates of origin 24,273
25,068
Spot 24,273
25,068
Transactions in agri-food goods
6
22
Other fees paid by market participants 20,015
15,554
Operation of the register of certificates of origin
24,956
23,793
Clearing 42,614
50,409
Information services 1,293
1,073
Other revenue 3,461
2,926
Total sales revenue 389,265
407,571
Sales revenue by foreign and domestic customers is as follows:
Year ended 31 December
2022 % share 2021 % share
Revenue from foreign customers
128,792
33.1%
125,552
30.8%
Revenue from local customers
260,473
66.9%
282,019
69.2%
Total sales revenue 389,265
100.0% 407,571
100.0%
56
D
ATA FOR THE YEAR ENDED
31
D
ECEMBER
2022. A
LL AMOUNTS IN
PLN’000
UNLESS STATED OTHERWISE
.
C
ONSOLIDATED
F
INANCIAL
S
TATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
The following table presents a breakdown of the Group’s revenue by method of recognition over time:
Year ended 31 December
2022 2021
Revenues recognised over the passage of time
92,099
85,794
Financial market
79,039
75,826
Trading
336
448
Listing
22,126
20,175
Information services:
56,577
55,203
Commodity market
11,112
8,635
Trading
9,127
7,599
Information services
1,985
1,036
Other revenue
1,948
1,333
Provision of services to Group companies (other than leasing)
408
279
Provision of services to companies outside the Group (other than leasing)
1,423
944
Revenue from the Alternative Trading System Rules
117
110
Revenues recognised at a specific point in time
297,166
321,777
Financial market
168,709
178,862
Trading
167,169
177,447
Listing
863
1,378
Information services:
677
37
Commodity market
126,944
141,322
Trading
60,066
67,083
Operation of the register of certificates of origin
24,956
23,793
Clearing
42,614
50,409
Information services
(692)
37
Other revenue
1,513
1,593
Provision of services to Group companies (other than leasing)
87
-
Provision of services to companies outside the Group (other than leasing)
1,426
315
Revenue from the Alternative Trading System Rules
-
768
Revenues from International Markets
-
510
Total sales revenue 389,265 407,571
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.
57
D
ATA FOR THE YEAR ENDED
31
D
ECEMBER
2022. A
LL AMOUNTS IN
PLN’000
UNLESS STATED OTHERWISE
.
C
ONSOLIDATED
F
INANCIAL
S
TATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
The following table shows the Group’s operating expenses by category.
Note
Year ended 31 December
2022 2021
Depreciation and amortisation, incl:
36,827
35,245
- including: capitalised depreciation and amortisation charges
(2,072) (638)
Salaries
4.2.1.
85,857
85,375
Other employee costs
4.2.1.
25,780
24,253
Rent and maintenance fees
5,176
4,845
Fees and charges
18,099
16,958
- including: fees paid to PFSA
6.5.1.
14,773
14,515
External service charges
4.2.2.
76,013
57,264
Other operating expenses
7,129
5,427
Total operating expenses 254,881
229,367
4.2.1. S
ALARIES 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 Group
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 Management Boards 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.
In 2022, the Group’s average full-time equivalent (FTE) headcount was 460 FTEs, while in 2021 the average headcount was
439 FTEs. The tables below provide details of employee costs.
Year ended 31 December
2022 2021
Gross remuneration 64,440
52,659
Annual and discretionary bonuses 14,697
18,340
Retirement severance pay 174
190
Reorganisation severance pay 309
77
Non-competition 189
17
Other (including: unused holiday leave, overtime) 2,831
2,053
Total payroll 82,640
73,336
Supplementary payroll 3,217
12,039
Total employment costs 85,857
85,375
58
D
ATA FOR THE YEAR ENDED
31
D
ECEMBER
2022. A
LL AMOUNTS IN
PLN’000
UNLESS STATED OTHERWISE
.
C
ONSOLIDATED
F
INANCIAL
S
TATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
Year ended 31 December
2022 2021
Social security costs (ZUS)
13,347
12,328
Employee Pension Plan (PPE)
4,346
4,328
Other benefits (including medical services, lunch subsidies, sports, insurance, etc.) 8,087
7,597
Total other employee costs 25,780
24,253
Remuneration of the key management personnel is described in Note 6.6.
4.2.2. E
XTERNAL SERVICE CHARGES
Year ended 31 December
2022 2021
IT infrastructure maintenance 31,549
24,461
TBSP market maintenance services 1,500
1,574
Data transmission lines 3,767
4,061
Software modification 1,463
784
Total IT cost 38,279
30,880
Repair and maintenance of installations 1,182
1,026
Security 2,085
2,022
Cleaning 818
803
Phone and mobile phone services 327
312
Total office space and office equipment maintenance 4,412
4,163
International (energy) market services 819
-
Lease, rental and maintenance of vehicles 415
340
Transportation services 438
228
Promotion, education, market development 8,294
6,862
Market liquidity support 986
1,044
Advisory (including legal, business consulting, audit) 13,438
7,787
Information services 3,619
3,173
Training 869
1,041
Mail fees 77
95
Bank fees 122
124
Translation
340
424
Other 3,905
1,103
Total external service charges 76,013
57,264
External service charges include among others office services, data vendor services and other third-party services.
4.3. OTHER INCOME
Year ended 31 December
2022
2021
Grants received 1,065 734
Gains on sale of property, plant and equipment 45 15
Annual correction of input VAT 120 -
Medical services reinvoiced to employees 619 539
Damages received 7 4
Donations received 15 -
Gain from a bargain purchase 7,945 -
Cost reimbursement from URE/PSE - 770
International markets - estimated revenue - 822
Other 211 123
Total other income 10,027 3,007
59
D
ATA FOR THE YEAR ENDED
31
D
ECEMBER
2022. A
LL AMOUNTS IN
PLN’000
UNLESS STATED OTHERWISE
.
C
ONSOLIDATED
F
INANCIAL
S
TATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
4.4. OTHER EXPENSES
Year ended 31 December
2022 2021
Donations 3,984
2,155
Loss on sale of property, plant and equipment 52
50
Damages, penalties, fines -
3
Impairment of assets 125
-
Other 391
808
Impairment of goodwill
9,832
-
Total other expenses 14,384
3,016
In 2022, the Group made donations to:
Polish National Foundation – PLN 1,500 thousand (booked in expenses of 2016, see Note 3.12.),
GPW Foundation – PLN 3,067 thousand,
Association SOS Wioski Dziecięce w Polsce – PLN 15 thousand,
Municipalities and organisations assisting refugees from Ukraine – PLN 872 thousand.
In 2021, the Group made donations to:
Polish National Foundation – PLN 1,500 thousand (booked in expenses of 2016, see Note 3.12),
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.
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
2022 2021
Income on financial assets presented as cash and cash equivalents
17,248
282
Income on financial assets presented as financial assets measured at
amortised cost
5,206
611
Interest on sublease receivables
5
7
Total income according to the effective interest rate method 22,459
900
Reversal of expected credit losses 155
-
Other financial income
74
97
FX differences
813
-
Total financial income 23,501
997
Details concerning dividend received from subsidiaries are presented in Note 6.5.2.
60
D
ATA FOR THE YEAR ENDED
31
D
ECEMBER
2022. A
LL AMOUNTS IN
PLN’000
UNLESS STATED OTHERWISE
.
C
ONSOLIDATED
F
INANCIAL
S
TATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
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
2022 2021
Interest on bonds, including:
3,430
5,826
remeasurement (1,278) 374
paid 4,708
5,452
Interest on lease liabilities
241
353
Interest on loans 5
52
Interest on tax payable, including: 2,208
1,964
VAT provisions 1,919
1,927
Expected credit loss 26
411
Other financial expenses 827
1,151
FX differences 768
1,802
Total financial expenses 7,505
11,559
4.7. INCOME TAX
Selected accounting policies
Current income tax is calculated on the basis of net taxable income of the GPW Group companies for a given financial year
determined in accordance with the binding tax regulations and using the tax rates provided in those regulations. Net taxable
income (loss) differs from accounting profit (loss) for the year due to:
costs which are not tax-deductible;
dividend income which is not taxable;
grants which are not taxable.
Year ended 31 December
2022 2021
Current income tax
32,376
35,704
Deferred tax
(2,509) (3,225)
Total income tax 29,867
32,479
The table below shows a reconciliation of the theoretical amount of income tax at the statutory tax rate and the amount of
income tax expense reported in the statement of comprehensive income.
61
D
ATA FOR THE YEAR ENDED
31
D
ECEMBER
2022. A
LL AMOUNTS IN
PLN’000
UNLESS STATED OTHERWISE
.
C
ONSOLIDATED
F
INANCIAL
S
TATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
Year ended 31 December
2022 2021
Profit before income tax 174,843
193,755
Income tax rate 19% 19%
Income tax at the statutory tax rate 33,220
36,813
Tax effect of: (3,353) (4,334)
Non tax-deductible costs 1,297
1,656
Impairment of goodwill of a subsidiary 1,274
-
Non-taxable grants (87) (5)
Non-taxable share of profit of entities measured by the equity method (5,368) (4,631)
Other non-taxable income -
28
Other adjustments (469) (1,382)
Total income tax 29,867
32,479
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. The Head of the First Mazovian Tax Office in Warsaw issued subsequent decisions extending TG for further tax
years. The Group received the latest decision on 14 December 2022; it concerns the registration of TG for a period of one
fiscal year, i.e., 2023.
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.
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.
Starting from the financial year ended 31 December 2022, the Group presents grants received and expenses in respect of
payments from grant advances on a net basis in the cash flows from investing activities of the consolidated statement of
cash flows.
In the consolidated statement of cash flows for the financial year ended 31 December 2021, the Group presented grants
received of PLN 9,928 thousand and expenses in respect of payments from grant advances of PLN 4,215 thousand separately
in cash flows from financing activities.
In the opinion of the Group’s management, the change in presentation is not material from the point of view of the financial
statements, and therefore no retrospective restatement of comparative data has been made.
The table below provides details of depreciation and amortisation costs during the period under review.
62
D
ATA FOR THE YEAR ENDED
31
D
ECEMBER
2022. A
LL AMOUNTS IN
PLN’000
UNLESS STATED OTHERWISE
.
C
ONSOLIDATED
F
INANCIAL
S
TATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
Year ended 31 December
2022 2021
Depreciation of property, plant and equipment* 11,541
12,246
Amortisation of intangible assets** 19,803
17,614
Depreciation and amortisation of right-to-use assets 5,483
5,385
Total depreciation and amortisation charges 36,827
35,245
* In the year ended in 2022, depreciation was reduced by depreciation capitalized to intangible assets of PLN 1070 thousand, and in year
ended in 2021, of PLN 501 thousand.
* In the year ended in 2022, depreciation was reduced by depreciation capitalized to intangible assets of PLN 1002 thousand, and in year
ended in 2021, of PLN 137 thousand.
Details of other adjustments included in net cash flows from operating activities are presented in the table below.
Year ended 31 December
2022 2021
(Gains)/losses on FX differences (valuation of accounts and deposits) (85) 170
Sublease interest income (8) (3)
Lease interest expense 247
368
Financial expense on the bond issue 190
383
Grants - transfer to the investment activities (11,238) (5,149)
Actuarial (gains)/losses 16
-
Goodwill impairment 9,832
-
Bargain purchase (7,945) -
Other 289
(1,354)
Total other adjustments (8,530) (5,585)
63
D
ATA FOR THE YEAR ENDED
31
D
ECEMBER
2022. A
LL AMOUNTS IN
PLN’000
UNLESS STATED OTHERWISE
.
C
ONSOLIDATED
F
INANCIAL
S
TATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
6. OTHER NOTES
6.1. FINANCIAL INSTRUMENTS
The following tables show the income received and expenses incurred by type of financial instrument held by the Group.
Year ended 31 December 2022
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) -
-
565
565
-
565
Equity instruments -
-
-
-
811
811
Corporate bonds
4,740
(27) (38) 4,675
-
4,675
Bank deposits 15,398
825
77
16,300
-
16,300
Loans granted 452
(178) 18
292
-
292
Current bank accounts 1,478
-
71
1,549
-
1,549
Total financial instruments (assets) 22,068
620
693
23,381
811
24,192
Bonds in issue (4,708) 1,277
-
(3,431) -
(3,431)
Total financial instruments (liabilities) (4,708) 1,277
-
(3,431) -
(3,431)
Total recognised in the statement of
comprehensive income
17,360
1,897
693
19,950
811
20,761
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
Corporate bonds 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
Bonds in issue (5,452) (374) -
(5,826) -
(5,826)
Total financial instruments (liabilities)
(5,452)
(374)
-
(5,826)
-
(5,826)
Total recognised in the statement of
comprehensive income
(4,812) (122) 1,746
(3,188) 5
(3,183)
6.2. ACQUISITION OF A SUBSIDIARY
On 28 June 2022, GPW signed an Armenia Securities Exchange (AMX) Share Purchase Agreement with the Central Bank of
Armenia (CBoA) as well as a Shareholders’ Agreement regarding the participation of the parties to the agreement in AMX.
The Share Purchase Agreement was a conditional agreement. The acquisition of control of AMX was subject to the following
formal conditions:
− obtaining approval for the transaction from the Central Bank of Armenia (CBoA),
− amendment to the Articles of Association of AMX in accordance with the Shareholders’ Agreement,
− opening of a securities account in Armenia by GPW,
− payment of consideration by GPW for AMX shares.
The final fulfilment of all conditions took place on 27 December 2022, and on that date GPW’s acquisition of 65.03% of the
Armenia Securities Exchange was closed.
64
D
ATA FOR THE YEAR ENDED
31
D
ECEMBER
2022. A
LL AMOUNTS IN
PLN’000
UNLESS STATED OTHERWISE
.
C
ONSOLIDATED
F
INANCIAL
S
TATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
As a result of the transaction, AMX’s ownership structure is as follows:
− AMX holds 148 treasury shares corresponding to a 9.95% interest in the company’s share capital,
− CBoA holds 372 shares corresponding to a 25.02% interest in the company’s share capital,
− GPW holds 967 shares corresponding to a 65.03% interest in the company’s share capital.
As a result of the transaction, GPW indirectly acquired control of the Central Depository of Armenia (CDA), in which AMX
holds 100% of the share capital.
The total price of AMX shares acquired by GPW was PLN 9.5 million payable in two tranches:
1. the first tranche in the amount of PLN 6.4 million was paid upon the fulfilment of all conditions set out in the
agreement,
2. the second tranche of approximately PLN 3.1 million payable subject to the closing of all litigation and claims to
which AMX is a party and which are described in the Share Purchase Agreement. The closing of litigation is
understood to mean the definitive end of legal proceedings or the dismissal of an action and, for cases not currently
pending before the court, the failure to file an action within 3 consecutive years.
The second tranche of the payment was discounted over three years using the cost of debt after taking into account the tax
shield and recognised as a liability.
Components of purchase consideration
Cash paid 6,440
Deferred consideration 3,112
Total purchase consideration 9,552
The Shareholders’ Agreement provides for a call option for CBoA and a put option for GPW on the acquired shares in AMX.
CBoA may exercise the option in the last month of the closed period if GPW is in material breach of the Business Plan
assumptions, and GPW may exercise the option unconditionally within two months after the expiry of the closed period. The
closed period is defined as 5 years from the registration of the shares.
Inflow of cash to acquire
subsidiary, net of cash
acquired
Cash consideration
(6,440)
Addition of balance of cash acquired 14,871
Net inflow of cash in investing activities
8,431
The Group acquired AMX to gain access to the Eurasian financial market, Eurasian issuers and retail investors. For more than
18 years, AMX has been creating an organised securities market in Armenia, offering market professionals a fully automated
electronic trading platform. It is a member of the Federation of Euro-asian Stock Exchanges (FEAS). Instruments listed on
the Armenia Securities Exchange include equities, corporate and government bonds, currency, credit resources, as well as
repos and swaps. The AMX Group includes the central securities depository CDA which provides registry, custody, clearing
and settlement services for securities (private and public), funds and cash, and is the administrator of the pension scheme.
The Armenian financial market is a developing market and is currently placing great emphasis on modernisation and
international development and opening up to foreign markets. Armenia is currently in a phase of transition, which includes
in particular anti-corruption, economic growth and capital market development. Capital market development is a priority
project on the government’s new economic growth agenda. This seems to offer good prospects for significant stock market
development.
The Group sees a number of areas offering opportunities for beneficial collaboration and opportunities for synergies,
particularly in the use of a single trading platform and cooperation in energy and commodity trading services.
As at 31 December 2022, the Group completed the purchase price allocation process.
65
D
ATA FOR THE YEAR ENDED
31
D
ECEMBER
2022. A
LL AMOUNTS IN
PLN’000
UNLESS STATED OTHERWISE
.
C
ONSOLIDATED
F
INANCIAL
S
TATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
The fair value of the company’s identifiable assets and liabilities at the date of acquisition of control is as follows:
Carrying amount
Fair value
adjustments
in
accordance
with IFRS 3
Fair values as
at the
acquisition
date
Non-current assets: 2,423
11,918
14,341
Property, plant and equipment
1,130
-
1,130
Intangible assets
936
11,918
12,854
Right-to-use assets 205
-
205
Deferred tax asset 128
-
128
Other non-current assets 24
-
24
Current assets: 16,915
-
16,915
Trade receivables and other receivables
2,044
-
2,044
Cash and cash equivalents
14,871
-
14,871
Total assets 19,338
11,918
31,256
Non-current liabilities:
443
2,144
2,587
Deferred tax liability
-
2,144
2,144
Other liabilities 443
-
443
Current liabilities: 1,763
-
1,763
Lease liabilities 98
-
98
Trade payables
241
-
241
Accruals and deferred income 826
-
826
CIT payable
386
-
386
Other liabilities
212
-
212
Total liabilities 2,206
2,144
4,350
Net identifiable assets acquired 17,132
9,774
26,906
Adjustment for non-controlling interests (9,409)
Acquired net assets
17,497
Total purchase consideration 9,552
Gain on bargain purchase (7,945)
Transaction costs of PLN 297 thousand were recognised as financial costs in the statement of comprehensive income and as
a component of cash flows from operating activities in the statement of cash flows.
The consolidated revenue and profit of the AMX Group for the full 2022 financial year amounted to PLN 17,126 thousand and
PLN 3,086 thousand, respectively. As the subsidiary acquisition date is close to the balance sheet date, the revenue and
profit presented do not differ materially from the revenue and profit of the acquired entity for the entire financial year, and
the values for the combined entities correspond to those presented in the consolidated statement of comprehensive income.
The Group recognises non-controlling interest in the acquiree either at fair value or at the proportionate amount of the
acquiree’s identifiable net assets. The decision as to the method is made independently for each acquisition. For the AMX
acquisition, the Group decided to book the transaction as a proportionate recognition in the amount of PLN 9,409 thousand.
The Group recognised the gains on the bargain purchase in other income.
66
D
ATA FOR THE YEAR ENDED
31
D
ECEMBER
2022. A
LL AMOUNTS IN
PLN’000
UNLESS STATED OTHERWISE
.
C
ONSOLIDATED
F
INANCIAL
S
TATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
6.3. SEGMENT REPORTING
Selected accounting policies
Segment information is disclosed based on components of the entity which are monitored by the Group’s chief decision
maker (Exchange Management Board) to make operating decisions. Operating segments are based on categories of services
with common characteristics for which discrete financial information is available and which are reviewed regularly by the
chief operating decision maker to make decisions about resources to be allocated to the segment and assess the Group’s
performance. The presentation of financial data by operating segment is consistent with the management approach at Group
level.
For management purposes, the Group is divided into segments based on the type of services provided. The two main
reporting segments are the financial segment and the commodity segment.
The financial segment covers the activity of the Group including organising trade in financial instruments on the exchange
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 2022 and 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.
67
D
ATA FOR THE YEAR ENDED
31
D
ECEMBER
2022. A
LL AMOUNTS IN
PLN’000
UNLESS STATED OTHERWISE
.
C
ONSOLIDATED
F
INANCIAL
S
TATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
Year ended 31 December 2022
Financial
segment
Commodity
segment
Other
Total
segments
Exclusions
and
adjustments
Total
segments
and
exclusions
Sales revenue: 255,080
138,803
16,384
410,267
(21,002) 389,265
To third parties 247,748
138,056
3,461
389,265
-
389,265
Between segments 7,332
747
12,923
21,002
(21,002) -
Operating expenses, including: (191,953) (79,147) (4,439) (275,539) 20,658
(254,881)
depreciation and amortisation (27,325) (10,233) (151) (37,709) 882
(36,827)
Profit/(loss) on sales 63,127
59,656
11,945
134,728
(344) 134,384
Loss on impairment of receivables 588
(23) -
565
-
565
Other income 2,346
886
-
3,232
6,795
10,027
Other expenses (11,308) (235) -
(11,543) (2,841) (14,384)
Operating profit (loss) 54,753
60,284
11,945
126,982
3,610
130,592
Financial income, including: 50,851
35,946
79
86,876
(63,375) 23,501
interest income 13,357
9,364
79
22,800
(341) 22,459
dividend income 36,468
26,539
-
63,007
(63,007) -
Financial expenses, including: (4,018) (5,655) (26) (9,699) 2,194
(7,505)
interest cost (3,990) (397) (9) (4,396) 430
(3,966)
VAT provision -
(3,609) -
(3,609) 1,690
(1,919)
Share of profit/(loss) of entities measured by
equity method
-
-
-
-
28,255
28,255
Profit before income tax 101,586
90,575
11,998
204,159
(29,316) 174,843
Income tax (22,439) (6,375) 67
(28,747) (1,120) (29,867)
Net profit 79,147
84,200
12,065
175,412
(30,436) 144,976
As at 31 December 2022
Financial
segment
Commodity
segment
Other
Total
segments
Exclusions
and
adjustments
Other
exclusions
and
adjustments
Total
segments
and
exclusions
Total assets 750,983
352,558
17,470
1,121,011
229,661
(168,416) 1,182,256
Total liabilities 107,297
81,397
1,783
190,477
-
(9,048) 181,429
Net assets
(assets - liabilities)
643,686
271,161
15,687
930,534
229,661
(159,368) 1,000,827
68
D
ATA FOR THE YEAR ENDED
31
D
ECEMBER
2022. A
LL AMOUNTS IN
PLN’000
UNLESS STATED OTHERWISE
.
C
ONSOLIDATED
F
INANCIAL
S
TATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
Year ended 31 December 2021
Financial
segment
Commodity
segment
Other
Total
segments
Exclusions
and
adjustments
Total
segments
and
exclusions
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) 19,148
(229,367)
depreciation and amortisation (25,303) (10,748) (107) (36,158) 913
(35,245)
Profit/(loss) on sales 85,080
79,101
13,045
177,226
978
178,204
Loss on impairment of receivables 1,066
680
-
1,746
-
1,746
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 (loss) 84,423
82,212
13,049
179,684
257
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 provision -
(1,927) -
(1,927) -
(1,927)
Share of profit/(loss) of entities measured by
equity method
-
-
-
-
24,376
24,376
Profit before income tax 179,975
136,469
13,050
329,494
(135,739) 193,755
Income tax (25,947) (6,591) 59
(32,479) -
(32,479)
Net profit 154,028
129,878
13,109
297,015
(135,739) 161,276
As at 31 December 2021
Financial
segment
Commodity
segment
Other
Total
segments
Exclusions
and
adjustments
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
Detailed information on sales revenue within each operating segment is presented in Note 4.1.
69
D
ATA FOR THE YEAR ENDED
31
D
ECEMBER
2022. A
LL AMOUNTS IN
PLN’000
UNLESS STATED OTHERWISE
.
C
ONSOLIDATED
F
INANCIAL
S
TATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
6.4. 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 3.11, 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 6.11.
New Trading System
The New Trading System is a development project of a new trading platform which will in the future help to reduce transaction
costs and offer new functionalities and types of orders for Exchange Members, issuers and investors. The system will provide
superior reliability and security according to top technical parameters.
GPW Data
The GPW Data project is an innovative Artificial Intelligence system supporting investment decisions of capital market
participants. The core of the system is a repository of a broad range of structured exchange data. Such information will
support investments on the capital market based on classical and innovative analysis models.
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 Group participates in the transfer of grants from NCBiR to the other participants in the consortium. Respective cash
flows are presented on a net basis in the statement of cash flows from 2022 onwards.
Telemetry (“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.
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.
Polish Digital Logistics Operator (“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.
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
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.
70
D
ATA FOR THE YEAR ENDED
31
D
ECEMBER
2022. A
LL AMOUNTS IN
PLN’000
UNLESS STATED OTHERWISE
.
C
ONSOLIDATED
F
INANCIAL
S
TATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
The table below provides key information on the amount of the grants received by project:
As at/Period ended 31 December 2022
Planned
total budget
(PLN
million)
Value of
grants
awarded
(PLN
million)
Value of
grants
received in
2022 (PLN
thousand)
Amount
recognised
in income
(PLN
thousand)
Amount
included in
Accruals
and
deferred
income
(PLN
thousand)
Amount of
capitalized
costs as at
the balance
sheet date
(PLN
thousand)
Expected
project
completion
date (or
completion
date)
New Trading System
Project
90.0
29.3
7,124
147
19,753
41,308
1Q2024
GPW Data Project 7.9
3.9
2,009
-
3,934
6,677
2Q2023
Private Market 11.6
8.5
1,757
-
3,941
1,006
4Q2023
Telemetria Project 33.3
13.3
(426) -
1,671
3,516
4Q2023
PCOL Project 8.8
5.1
681
194
874
1,090
4Q2023
Gospostrateg Project 7.9
0.3
98
117
-
-
1Q2023
Total 159.5
60.4
11,243
458
30,173
53,597
6.5. 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.
6.5.1. I
NFORMATION 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 Related Party Disclosures and keeps no records which would clearly identify
and aggregate transactions with the State Treasury and 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.
Fees paid by the Group to PFSA stood at PLN 14,773 thousand in 2022 and PLN 14,515 thousand in 2021.
71
D
ATA FOR THE YEAR ENDED
31
D
ECEMBER
2022. A
LL AMOUNTS IN
PLN’000
UNLESS STATED OTHERWISE
.
C
ONSOLIDATED
F
INANCIAL
S
TATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
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 3.12 and 4.4.
6.5.2. T
RANSACTIONS 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.
As at 31 December 2022 Year ended 31 December 2022
Receivables
Trade payables and
other liabilities
Sales revenue or
sublease interest
Operating expenses
KDPW Group:
53
-
132
120
other
53
-
132
120
Centrum Giełdowe:
-
2,500
-
4,581
leases
-
2,188
-
2,329
other
-
312
-
2,252
PAR:
5
10
84
40
leases
-
-
1
-
other
5
10
83
40
Total
58
2,510
216
4,741
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
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 2022 and 31 December 2021.
Dividend from associates
On 8 April 2022, the Annual General Meeting of CG decided to allocate a part of the profit equal to PLN 1,077 thousand and
a part of reserves equal to PLN 2,002 thousand to a dividend payment. The dividend attributable to the Exchange was PLN
763 thousand. The dividend was paid on 31 May 2022.
On 23 June 2022, the Annual General Meeting of KDPW decided to allocate a part of the profit equal to PLN 29,379 thousand
to a dividend payment. The dividend attributable to GPW was PLN 9,793 thousand. The dividend was paid on 6 September
2022.
Loans and advances
As at 31 December 2022, the carrying amount of loans granted to PAR was 0 and the impairment allowance was PLN 576
thousand (31 December 2021: PLN 771 thousand). PAR repaid PLN 200 thousand on 30 September 2022, resulting in release
of part of the allowance.
In November 2022, an annex was signed for the agreement concerning the loan granted by GPW to PAR of September 2020.
The intention of the parties was to extend the loan repayment period until 30 June 2023. In accordance with the changes
introduced by the annex, interest for the period from the date of the loan will be capitalised and added to the loan amount.
72
D
ATA FOR THE YEAR ENDED
31
D
ECEMBER
2022. A
LL AMOUNTS IN
PLN’000
UNLESS STATED OTHERWISE
.
C
ONSOLIDATED
F
INANCIAL
S
TATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
6.5.3. OTHER TRANSACTIONS
Transactions with the key management personnel
The Group entered into no transactions with the key management personnel in 2022 and in 2021 other than the transactions
described in Note 6.6.
Książęca 4 Street Tenants Association
In 2022 and in 2021, 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 2022 and PLN 4,719 thousand in 2021. 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 98 thousand
in 2022 and PLN 130 thousand in 2021.
GPW Foundation
In 2022, GPW donated PLN 3,067 thousand (in 2021 – PLN 2,070 thousand) to the GPW Foundation, received an income of
PLN 134 thousand (in 2021 – PLN 236 thousand) from the Foundation, and paid the Foundation’s costs of PLN 2 thousand
(in 2021 – PLN 54 thousand). As at 31 December 2022, the Exchange’s receivables from the GPW Foundation stood at PLN
40 thousand and its payables to the Foundation at PLN 0 thousand (as at 31 December 2021 – PLN 39 thousand and PLN 0
thousand, respectively).
Polish National Foundation
Payments and transactions with PFN are described in Notes 3.12 and 4.4.
6.6. I
NFORMATION 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
2022 and 2021, respectively.
The table concerning remuneration of the key management personnel does not present social security contributions paid by
the employer.
Year ended 31 December
2022 2021
Base salary 1,607
1,613
Variable pay 1,938
1,627
Other benefits 129
286
Benefits after termination 271
-
Total remuneration of the Exchange Management Board 3,945
3,526
Remuneration of the Exchange Supervisory Board 598
581
Remuneration of the Management Boards of other GPW Group companies 4,009
3,895
Remuneration of the Supervisory Boards of other GPW Group companies 929
899
Total remuneration of the key management personnel 9,481
8,901
73
D
ATA FOR THE YEAR ENDED
31
D
ECEMBER
2022. A
LL AMOUNTS IN
PLN’000
UNLESS STATED OTHERWISE
.
C
ONSOLIDATED
F
INANCIAL
S
TATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
As at 31 December 2022, due (not paid) bonuses and variable remuneration of the key management personnel stood at PLN
6,491 thousand and concerned bonuses for 2018-2022. The cost was shown in the statement of comprehensive income for
2018-2022.
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.
6.7. AUDIT FIRM’S FEES
Year ended 31 December
2022 2021
Audit of the annual financial statements 421
491
Other assurance services (including review of financial statements) 101
101
Total auditor's remuneration 522 592
6.8. CONTRACTED INVESTMENTS
As at
31 December 2022 31 December 2021
Contracted investments in property, plant and equipment 3
65
Contracted investments in intangible assets 1,473
3,983
Total contracted investments 1,476
4,048
Contracted investments in plant, property and equipment as at 31 December 2022 included purchase of office furniture and
as at 31 December 2021 included mainly investments in IT hardware.
Contracted investments in intangible assets as at 31 December 2022 were related mainly to the modernisation of the
integration layer as part of the New Market Image project and the development of the Wibix system. Contracted investments
in intangible assets as at 31 December 2021 were related mainly to investments in the controlling system, the Wibix system,
and the implementation of software supporting the exchange of information with commodity market participants.
6.9. 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.
74
D
ATA FOR THE YEAR ENDED
31
D
ECEMBER
2022. A
LL AMOUNTS IN
PLN’000
UNLESS STATED OTHERWISE
.
C
ONSOLIDATED
F
INANCIAL
S
TATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
As at 31 December 2022 As at 31 December 2021
Cash in IRGiT
bank accounts
Cash in clients'
bank accounts
Cash in IRGiT
bank accounts
Cash in clients'
bank accounts
Deposits
2,460,607
1,052,174
1,607,503
1,947,379
Margins
5,282,781
785,286
6,188,750
1,181,855
Guarantee funds
663,349
37,634
161,672
21,323
Total 8,406,738
1,875,094
7,957,926
3,150,557
As at
31 December 2022 31 December 2021
Non-monetary collateral classified as margins 8,958,949
16,158,373
6.10. GUARANTEES
As at 31 December 2022, the Group held bank guarantees issued in favour of:
NordPool in the amount of EUR 47.7 million effective to 16 June 2023,
NordPool in the amount of EUR 32.0 million effective to 13 January 2023,
Slovenská Elektrizačná Prenosová Sústava (SEPS) in the amount of EUR 0.5 million effective to 30 June
2023,
ČEPS in the amount of EUR 3.3 million effective to 30 June 2023,
European Commodity Clearing AG (ECC) in the amount of EUR 6.3 million effective to 30 June 2023.
The Group has an agreement with Santander Bank Polska S.A for a guarantee limit of EUR 90.0 million. The agreement was
concluded on 14 June 2022. During the financial year, an annex was concluded under which the limit was increased to EUR
140.0 million. The limit in this amount was valid until 31 January 2023, and the amount was reduced to EUR 90.0 million
after that date.
The Group also guarantees the due performance by the subsidiary InfoEngine of its payment obligations under the
Transmission Agreement concluded between InfoEngine and PSE. The guarantee amount is PLN 2.0 million.
As at 31 December 2021, the Group held bank guarantees issued in favour of NordPool of EUR 5.6 million, SEPS of EUR 0.5
million, ČEPS of EUR 1.5 million, and ECC of EUR 3.0 million.
6.11. CONTINGENT ASSETS AND LIABILITIES
Selected accounting policies
Contingency is a feature of liabilities and assets that are not recognised in the financial statements because their existence
is dependent on the occurrence or non-occurrence of one or more uncertain future events that are not wholly within the
control of the Exchange.
Contingent assets arise from unplanned or unexpected events which give rise to the possibility of an inflow of economic
benefits to the Group, the outcome of which is uncertain.
A contingent liability is a possible obligation whose existence is yet to be confirmed or is a present obligation that does not
meet the criteria for liability recognition (either because it is not probable that an outflow of economic benefits will be required
to settle the obligation or the amount of the obligation cannot be measured with sufficient reliability).
75
D
ATA FOR THE YEAR ENDED
31
D
ECEMBER
2022. A
LL AMOUNTS IN
PLN’000
UNLESS STATED OTHERWISE
.
C
ONSOLIDATED
F
INANCIAL
S
TATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
6.11.1. 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.
6.11.2. 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 2022, 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 6.12).
The Group had bank guarantees as at 31 December 2022 as described in Note 6.10.
6.12. 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.
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. IRGiT is currently awaiting a date to be set for a hearing before the Supreme Administrative Court.
In this respect, IRGiT developed a tax strategy together with external tax advisors.
Due to uncertainty concerning the timing of accounting for input and output VAT in all open periods and the amount of the
aforementioned VAT payable, guided by the principles of prudence, in accordance with IAS 37 Provisions, Contingent
Liabilities and Contingent Assets, provisions were set up against interest that will arise in the event of a postponement of
VAT deduction periods in the amount of PLN 30.2 million as at 31 December 2022 (PLN 28.8 million as at 31 December
2021). As a result of an update of the provisions, the Group’s financial costs in 2022 were charged with PLN 1.4 million (1.9
million in 2021). The provisions represent the best possible estimate of the potential liability as at 31 December 2022 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 delivery
transactions. 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.
76
D
ATA FOR THE YEAR ENDED
31
D
ECEMBER
2022. A
LL AMOUNTS IN
PLN’000
UNLESS STATED OTHERWISE
.
C
ONSOLIDATED
F
INANCIAL
S
TATEMENTS
of the Giełda Papierów Wartościowych w Warszawie S.A. Group
6.13. EVENTS AFTER THE BALANCE SHEET DATE
On 28 March 2023, the General Meeting of GPW Private Market S.A. adopted a resolution to increase the share capital
by PLN 3,600 thousand as a result of the issue of 3,600,000 series C ordinary registered shares with a nominal value and
an issue price of PLN 1. The shares were fully taken up by GPW.
77
D
ATA FOR THE YEAR ENDED
31
D
ECEMBER
2022. A
LL AMOUNTS IN
PLN’000
UNLESS STATED OTHERWISE
.
C
ONSOLIDATED
F
INANCIAL
S
TATEMENTS
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 ………………………………………
Monika Gorgoń – Member of the Management Board ………………………………………
Adam Młodkowski – 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, 11 April 2023