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Warsaw Stock Exchange Group

Investor Presentation

May 2020

I. About the GPW Group 3

III. Market highlights and opportunities 13

IV. GPW Group financial results in Q1 2020 38

V. Appendices 48

II. Business activity in Q1 2020 8

Key milestones

3

1991

2010

2014

20172013 2019

Establishment of the WarsawStock Exchange (GPW)

GPW sharesdebut on the GPW

Announcementof new strategyGPW2020

FTSE Russel decisionabout promotionPoland to Developed Markets

Strategyupdate #GPW2022

Implementationof strategy

2012

GPW acquiresPolish Power Exchange (TGE)

2009

Launch of Catalyst (GPW bond market)

1998

Launch of derivativesmarket

2018

Selling of AquisExchange

2003

The firstforeigncompanylisted

2007

GPW aquiresAquis Exchange

Launch of UTP trading system

Launch of NewConnect(GPW alternativemarket)

The updated development strategy of the GPW Group is based on building shareholder value through the development of existing business lines and new segments at sustained profitability levels combined with risk management discipline. The strategy update focuses on four areas of development of the GPW Group: core business development development through diversification and new business areas development of new technological solutions sustained attractive dividend policy

Launch of X-StreamTrading and SAPRI trade systems

2022

Decision to build GPW Trading Platform

2020

AgriculturalCommodity Market

Launch of GPW Tech and GPW VenturesASI

GPW share price

4Source: Bloomberg

30

35

40

45

50

55

2013 2014 2015 2016 2017 2018 2019 2020

PLN (closing price)

0

200000

400000

600000

800000

1000000

2013 2014 2015 2016 2017 2018 2019 2020

Volume

5

Source: Bloomberg

0

5

10

15

20

25

EV/EBITDA 2020e

P/E 2020 P/E 2021 EV/EBITDA 2020 EV/EBITDA 2021 Dividend Yield 2020* Market Cap (USD mn)

Average (24 global peers)

24,67 23,29 15,89 14,44 3,20 -

GPW 14,48 13,81 7,16 7,46 6,20 400

Discount (%) -41,3% -40,7% -54,9% -48,3% +3 p.p. -

(%)

0

1

2

3

4

5

6

7Dividend Yield 2020e (%)*

*Dividend Yield in 2020e from 2019 net profit

Highest dividend yield among Exchange Peers

6

7

8

9

10

11

12

13

14

15

16

17

18

2015 2016 2017 2018 2019 2020

GPW P/E

P/E Average (5 Years)

+1 Standard Deviation from Average

-1 Standard Deviation from Average

Źródło: Bloomberg

GPW P/E ratio performance

7

Social Responsibility during COVID-19

In March, GPW’s Management Board decided to grant a

donation of PLN 1 million for the acquisition of SARS-

CoV-2 testing equipment by the Sanitary Stations in

Siedlce and Radom.

In early May, the labs opened coronavirus

diagnostic operations. Tests rely on state-of-the-art

equipment purchased with GPW’s support.

On the initiative of GPW Employees, fresh fruit boxes

have been regularly delivered since March to 36

emergency stations in Warsaw on the front of the

fight with the pandemic.

As the operator of capital market infrastructure in

Poland, GPW is exposed to moderate operational and

financial risk posed by the pandemic. GPW’s

Management Board has taken a number of measures

mitigating the risk.

95% of GPW employees work remotely and GPW

has maintained full operational capacity.

PLN 80 million

Amount of grants from companies with a stake held by

the State Treasury to help fight the coronavirus

pandemic

Developing ESG competences in the GPW Group…

Supporting issuers and investors to ensure

strong communication and understanding of the

role and importance of ESG.

Developing the product offer of GPW

(benchmarks, financial instruments, information

services, including WIG-ESG futures, WIG-ESG

options, WIG-ESG ETF).

8

Leading ESG adoption and engagement

…and working with external partners

Partnership with the European Bank for

Restructuring and Development (EBRD) which

supports partner countries in transition to climate-

resilient low-carbon economy.

Global Compact is a UN agency supporting compliance

with human rights, labour rules and environmental

standards. GPW has joined Global Compact to gain

expertise and build local ESG standards on the basis of

Global Compact guidelines.

ESG partnership in CEE to support relations and

consolidate GPW’s position as the leader.

The GPW has been a member of the Sustainable Stock

Exchange Initiative since 2013. Participates in

quarterly conferences aimed at sharing knowledge

between members. The initiative also supports stock

exchanges in ESG activities.




V. Appendices 48


64,5%59,0% 57,8%

10

Strong financial results of GPW Group in Q1’20

Q4’19Q1’19 Q1’20

84.2 80.3

97.0

+20.9%

+15.3%

Q4’19Q1’19 Q1’20

24.5

11.2

29.3

+161.3%

+19.7%

Sales revenue

12.9

41.4

Q1’19 Q1’20

46.0

Q4’19

10.0

54.347.4

56.1

+18.3%

+3.2%

Operating expenses

Net profitEBITDA

Q1’20Q1’19 Q4’19

38.641.2

50.0

+21.6%

+29.8%

C/IPLN mn

PLN mn

PLN mn

PLN mn

10

Sales revenue

Sales revenue increased in Q1’20 by

15.3% YoY driven by higher revenue

both from the financial market and

on the commodity market.

Operating expenses

Operating expenses increased in

Q1’20 by 3.2% YoY driven by an

increase of external service charges,

and salaries and other employee

related costs. Provisions set up

against PFSA fees in Q1’20 stood at

PLN 10.0 mn vs. PLN 12.9 mn in

Q1’19 vs. PLN 9.0 mn in Q1’18.

EBITDA

EBITDA increased in Q1’20 by 29.8%

YoY to PLN 50.0 mn.

Net profit

Net profit increased in Q1’20 by

19.7% YoY to PLN 29.3 mn.

PFSA fee

Operating expensesexcludingPFSA fee

Increase in the value of EOB trading in equities to PLN

61 bn in Q1’20 +36.8% QoQ and +19.2% YoY

Velocity ratio at 48.8% in Q1’20 vs. 32.8% in Q1’19

Growing interest of retail investors: 56.600 new broker

accounts in 2020 (January-April).

WIG index down 28.0% in Q1’20

Indices were falling in Q1’20 due to the coronavirus

epidemic, but significant recovery since 12 March.

The biggest gains were reported by NCIndex (+7.7%

in Q1’20 and 38.1% in January-April 2020) and WIG

Games (+8.8% in Q1’20 and +42.6% in January-

April )

We continue to support companies in search for new

investors and new capital through virtual conferences and

roadshows. We have arranged roadshows in Japan and

Singapore with our broker partners.

Share of HVP participants in trading in equities in Q1’20

at 9.7% vs. 10.4% in Q1’19.

11

Growing trading investor activity

Value of EOB trading on the Main Market

Activity of HVP clients vs. market turnover on the Main Market

54

48

5449

51

4649

45

61

8,6%9,3%

8,8%

10,3% 10,4% 10,2%

11,5%

10,0% 9,7%

0%

2%

4%

6%

8%

10%

12%

14%

-8

2

12

22

32

42

52

62

I II III IV I II III IV I

2018 2019 2020

EOB turnover (lhs) HVP share in turnover (rhs)

PLN bn

53,748,0 53,5 49 51,2

46,3

49,0 45

61

31,1% 30,7%34,3% 32,9% 32,8%

30,2%33,2%

31,0%

48,8%

0,00%

10,00%

20,00%

30,00%

40,00%

50,00%

60,00%

0

10

20

30

40

50

60

70

80

Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20

EOB Trading

Turnover velocity (source: FESE)PLN bn

Volume of derivatives trading increased to 3.1

mn in Q1’20: +84.4% QoQ and +80.8% YoY.

Volume of trading in WIG20 futures increased

to 1.86 mn in Q1’20: +96.3% QoQ and +86.0%

YoY.

Volume of trading in single-stock futures

increased to 0.62 mn in Q1’20: + 43% QoQ and

+108.7% YoY.

WIG20 volatility in Q1’20 at 32.9%,

WIG volatility 29.1%.

Share of HVP proprietary trading participants in

futures trading at 13.9% in Q1’20 vs. 10.4% in

Q1’19.

12

Growing volumes in derivatives trading driven by high volatility of the underlying

mn.

1 HVP and HVF participants and a new market maker

Volume of trading in derivatives

1,82,1

1,8

2,2

1,7 1,6

2,01,7

3,1

Q4’18 Q3’19Q2’19Q1’18 Q4’19Q1’19Q2’18 Q3’18 Q1’20

+84,4%

+80,8%

Quarterly volatility of WIG and WIG20

29,1%

32,9%

0%

5%

10%

15%

20%

25%

30%

35%

WIG volatility WIG20 volatility

13

Trading on the commodity market in Q1’20

Volume of spot and forward trading in electricity and gas

Volume of trading in property rights

52.9

Q1’20Q1’19 Q2’19 Q3’19 Q4’19

44.3

65.0 66.7 66.6

Electricity (TWh)

39.6

28.5

Q3’19Q1’19 Q2’19 Q4’19 Q1’20

37.340.7 39.9

Natural gas (TWh)

Q3’19

5.0

5.9

6.7

8.1

12.9

Q1’19

21,1

Q2’19 Q4’19 Q1’20

11,0

5.6 6.3

Cogeneration (TWh)*

OZE (TWh)

Q2’19Q1’19

63.1

Q1’20

175.6

Q3’19 Q4’19

172.4

81.0 80.5

Energy efficiency (ktoe)

* Trading in cogeneration property rights ended at the end of June 2019.

Electricity market – Total volume of trading in

electricity in Q1’20 at 66.6 TWh (+50.3% YoY). Volume

of spot transactions at 8.5 TWh (-0.4% YoY). Volume of

forward transactions at 58.1 TWh (+62.4% YoY).

Gas market – Total volume of trading on the gas

markets in Q1’20 at 39.9 TWh (+40.0% YoY). Volume of

spot transactions in gas at 7.4 TWh (+7.7% YoY).

Volume of forward transactions at 32.5 TWh (+50.3%

YoY).

Property rights market:

No more trading in property rights from

cogeneration as of June 2019.

Volume of trading in RES property rights in Q1’20 at

6.7 TWh (+13.0% YoY).

Volume of trading in property rights in energy

efficiency in Q1’20 at 80.5 ktoe (+27.6% YoY).




V. Appendices 48


Our market highlights and opportunities

15

Solid financial performance and attractive dividend

Diversified revenue structure

The largest CEE economy and growth leader in EU

Large and still growing client base

Potential for further growth in free float and liquidity in financial segment

Employee Capital Plans (ECP)

Dynamic commodity segment

Strategy update #GPW2022 (strategic initiatives)

Promotion to Developed Market status (FTSE Russell and STOXX)

1

2

3

4

5

6

7

8

9

16

… and high operating leverage

Sound financial performance

Solid top-line growth …

… underpinned by increasing diversification … and consistent profitability

CAGR

2010 2015 20182014

225.6

2009 20132011 2012

273.8

2016 2017

283.8

199.5

268.8

317.6 327.9 310.9352.0 346.8

2019

336.1

+5.4%

Total revenue, PLN mn

94.0

47.1%

20122009

48.1%55.5%

161.1

2011

51.8% 50.7%51.1%

2013

54.4%

2014

54.9%

20152010 2016

202.0

61.1%

2017

58.2%

2018 2019

108.4

149.3 142.0 144.9

183.7212.2

193.2

57.5%

180.2

EBITDA, PLN mn EBITDA margin, %

19.6%

13.6%

2010

13.9%

2011

119.3

2009 2014

18.1%

25.6%

2012

18.9%

2013

17.3%

20162015

16.1%

20.7%

2017

21.7%

20192018

100.7 94.8

131.1134.1

105.9 112.8 107.5121.5

158.7183.7

16.1%

Net profit, PLN mn ROE, %

1

70,4%

11,1%

16,5%

1,9%

26,0%

3,2%3,0%

2,8%5,8%

14,3%

44,6%

0,3%

Information services

Listing

Trading - other

Trading - fixed income

Trading - derivatives

Trading - shares

Financial Market:

including Market Data from FM (14.3%)

4,9%3,6%

10,2%

3,7%

8,3%

13,8%

0,2%

Commodity Market:Market Data

Other

Listing

Trading: Financial Market 98.1% 55.1%

0% 44.6%

2008 2019

Other 0,3%

17

Ambitious financial targets

GPW Group financial targets for 2022

1

• PLN 470 mn in 2022Revenue

• PLN 250 mn in 2022EBITDA

• ROE: 19% in 2022 (it may temporarily fall below 19% due to strategyimplementation expenditures)

ROE

• C/I under 50% after 2022 (it may temporarily range from 63% to 55% due tostrategy implementation expenditures)Cost/Income

• dividend payout rate not lower than 60% of consolidated net profit

• dividend not lower than PLN 2.4 per share from 2019 profit

• annual increase in the dividend from the 2020-2022 profits by at least PLN 0.1 per share

Dividend

DIVIDEND POLICY:

dividend payout rate not lower than 60% of consolidated net profit of GPW Group for the financial year attributable to GPW

shareholders, adjusted for the share of profit of associates

dividend at least PLN 2.4 per share from 2019 profit

annual increase in the dividend from the 2020-2022 profits by at least PLN 0.1 per share

Attractive dividend policy

18

89.9%

2010

1.40

3.20

1.20

31.0%

142.3%

70.7%

2.36

2011

45.2%3.18

0.80

2012

44.5%

2013

2.40

2014

80.1%

2.20

2015

2.15

2016

63.3%

2017

77.1%

2018

2.40

93.2%

2019

Dividend yield3

1 By financial year for which dividend was paid2 Based on the consolidated profit attributable to the shareholders of the parent entity and adjusted for the share of profit of associates3 Based on the share price as at the dividend record date* Dividend Yield based on the Management Board recommendation date (17.04.2020)

1

4.4%3.8% 2.0% 3.2% 4.9% 6.7%6.1% 5.8% 7.4% 6,6%*

Dividend payout ratio (%)Dividend per share (PLN)1 2 Management Board recommendation

approved by Supervisory Board

3

Settlement

Custody

Clearing

COR1

RGO2

Share in total revenue 4, LTM 5

Equities & other

Derivatives Bonds Commodities

Trading

Listing

Equities

Bonds

ETFs

Warrants

Structuredproducts

Financial market Commodity market

Real-timedata

Non-displaydata

Delayeddata

Historicaldata

Indices

Post-tradingincluding COR1 and

RGO2

Electricity spotand forward contracts

Natural gas spotand forward contracts

Property rights in certificates of origin

CO2 emission allowances

Corporatebonds

Municipalbonds

Bank bonds

T-bills

T-bonds

Futures:

- index

- single stock

- fx

- interest rate

Options

- index

Equities

Structuredproducts

Warrants

ETFs

Investmentcertificates

Membership

Access and useof GPW trading system

Membership and participation on the commoditymarkets

Market data

Diversified revenue structure

1 Certificate of Origin Register 2 Register of Guarantees of Origin 3 Associate company (33.33%); KDPW Group offers post-trading services on the financial market 4 Does not include other revenues, which constitute 0.3% of GPW Group revenues 5 Last twelve months ending on 31 March 20206 Does not include the KDPW revenues (associate company; equity method is applied)

19

FM: 2.3%CM: 3.7%

GPW Group

2

65,7% 6,1% 27,5% 18,7% 21,4% 13,9%

3,6% 3,0%

And 7th largest economy in the EU (including UK)Largest economy in CEE

Largest economy in the CEE region…

20Source: Eurostat

3

48

61

94

156

220

223

398

527

Slovenia

Bulgaria

Slovakia

Hungary

Czech Rep.

Romania

Austria

Poland

Nominal GDP in 2019 (EUR bn)

527

812

1245

1787

2418

2523

3435

Poland

Netherlands

Spain

Italy

France

UK

Germany

Nominal GDP in 2019 (EUR bn)

38,4

10,6

19,6

9,8

5,4

8,9

7,1

Population (mn)

21

Poland’s credit ratings

… a leader of economic growth in EU

Polish economy forecast to bounceback strongly1

Historical GDP and Bloomberg projection 2020-20222

1 GUS (Central Statistical Office of Poland)2 Bloomberg3 GUS

3

Source: Moody’s, Fitch, S&P

Poland’s GDP to drop by 2.6% in 2020 and to grow

by 3.2% in 2021 according to NBP’s Macroeconomic

Survey

According to NBP’s central inflation projection, average

annual CPI will be +3.7% in 2020 (average annual

inflation was 2.3% in 2019)

A2outlook stable

A-outlook stable

A-outlook stable

+4.1%

GDP growth in 20193

1,82,4

2,02,6

2,01,5

3,33,33,8

3,1

4,9 5,1

4,13,3

2,7

-4

-3

-2

-1

0

1

2

3

4

5

6

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022-1,4

-3,9

0,3

1,41,8

European Union (YoY%)

Poland (YoY%)

Most of Poles’ savings are located in bank deposits: in view of record-low interest rates, a growth potential for direct

and indirect investments on the GPW exists

Stocks represent only 4.0% of Poles’ savings; however, individual investors are very active on the GPW (turnover

share at 12% in 2019; individual investor portfolio turnover ratio at 40% in 2019)

GPW initiatives: education, joint initiatives with market participants, promotion of direct and indirect investment on

the Exchange, including pension savings

New flows to be injected into the Polish capital market by Employee Capital Plans (PPK) –> more in slides 30-32

Poles’ savings (%)1 Household assets 1 (PLN bn)

11%59%

Deposits and cash Other

2

4

Potential for retail investment growth

22

15%

63%

4%

5%

10%Insurance

Cash

Shares Loans

Deposit

1%

Debt securities

2%

Investment Funds

1 193

2009

334

2019

780

207

310

218

737

2006

342

265

519

2007

426

2016

919

187

2008 2017

477

1 042

211 233

2010

585528

625

2011

225

2012

670

249

614

2013

262

2014

262

2015 2018

899688936

607

752 792850

999

293

1 346

316

1 030

1 483

354

1 130

1 270

1 Net of pension entitlements (pension funds and Social Insurance Institution sub-accounts), non-listed shares, other equity interest2 Short and long-term debt securities, short and long-term loans3 Listed shares, insurance, investment funds, short and long-term debt securities, short and long-term loansSource: National Bank of Poland (NBP); data as of the end of 2019, latest data available

4

3

Investment funds in Poland2Open Pension Funds1

Largest institutional investor pool in the CEE region

Open Pension Fund (OFE) net assets value amounts to PLN 116.172 bn as of Q1 2020

Investment funds enjoy strong confidence of retail investors who increasingly seek more sophisticated savings and investment products

As a long-term investor, pension funds freeze a large part of the free float on GPW

Part of the free float in pension fund portfolios could be released through securities lending -> necessary regulatory change

OPF’s share in GPW turnover

OPF’s share in GPW free float Non-public funds, assets PLN bn

Capital Market funds, assets PLN bn

Strong domestic institutional investor base

23

42.138.8

12.0

36.1

11.613.4

43.1

11.3

41.8

9.8 8.8

43.1

6.7

2012

8.3

43.0

6.3

43.0

7.5

41.5

20152011 2013 2014

42.4

Q1’202016 2017 2018 2019

1PFSA, NBP, GPW

4

27 3862 68

89 93 9388

127

146

2011

108

141

279

2012

147

2013

259

2014

105

2015

147

111

2016

239

171

108

2017

167146

2018 2019

175

1Q’20

268

114

189209

252 257

2According to the classification of funds created by IZFiA (The Chamber of Fund and Asset Management), the non-public funds sector includesthose whose assets are not investedin capital markets. Non-public funds include: securitization, real estate and non-public assets.

Focused efforts, in co-operation with issuers, to spark interest in GPW-listed companies among foreign investors

Close co-operation with investment banks

Value of GPW listed shares held by foreigninvestors accounted for 39.8%1 of the market capitalization of domestic shares listed on the GPW

24

Share of investors in trade on the futures market (%)

Strong and growing foreign investor base

Share of investors in trade in shares on the Main Market (%)

Portfolio turnover ratio of selected investors on the GPW2

1 Data as of the end of 20192 GPW estimates; portfolio turnover ratio: value of the electronic order book (buy

and sell trades)/2/average portfolio value; data as of the end of 2019

Source: PFSA, NBP, GPW

4

Domestic investors Foreign Investors

Year Pension Funds Investment FundsIndividual Investors

2008 28% 71% 62% 42%

2009 26% 92% 134% 50%

2010 21% 73% 89% 53%

2011 19% 80% 100% 57%

2012 13% 69% 89% 44%

2013 14% 75% 83% 48%

2014 9% 60% 62% 41%

2015 9% 59% 59% 43%

2016 7% 60% 59% 44%

2017 7% 53% 70% 50%

2018 5% 61% 50% 57%

2019 5% 45% 40% 56%

47 49 51 53 53 59 63

15 13 12 13 1612

12

38 38 37 34 31 29 25

201920162013 201820172014 2015

institutional individual foreign

17 18 15 18 19 17 18

50 46 47 46 51 48 47

33 37 38 36 30 35 35

20172014 20182013 2015 2016 2019

institutional foreignindividual

Information services allow GPW to increase its revenue by tapping the potential of the key role of the infrastructure on the capital market.

Broad reach thanks to growing numbers of clients

New services: commodity market and non-display data

25

4

285,0

327,3

288,1

261,9240,3

221,1 224,6

247,6 247,9260,0

312,1

52 57 58 58 58 5453

52

78 83 85

2943

5365

94 96

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Q1'20

Number of subscribers, thou.

Number of distributors

Non-display clients

Offer of state-of-the art innovative services supporting analyses of market data and investing as an important pillar of GPW Group’s growth.

Developing GPW Data:

The GPW Data project relies onmachine learning and AI.

The project introduces electronicreporting standards in InlineeXtensible Business ReportingLanguage (iXBRL).

GPW Data is scheduled for roll-out inH2 2021.

European markets equitisation and trading velocity*Turnover velocity and volatility

Material upside potential of free float

Equity market: potential for further freefloat and liquidity growth

26Source: GPW

5

20152013

39%

2009

47% 52%48%

2014

197.3

48% 49%49%

2016

246.3

49%

2017 2018

50%

2019

165.3

279.3 282.8270.3

329.9

299.9276.0

Q1’20

Free float value, PLN bn Free float, %

* Source: Turnover, Mkt Cap - Thomson Reuters, GDP - Eurostat (except of TR, UA, IL, RU - IMF).

0,0

10,0

20,0

30,0

40,0

50,0

60,0

70,0

80,0

sty

-18

lut-

18

mar-

18

kw

i-18

maj-

18

cze-1

8

lip-1

8

sie

-18

wrz

-18

paź-1

8

lis-1

8

gru

-18

sty

-19

lut-

19

mar-

19

kw

i-19

maj-

19

cze-1

9

lip-1

9

sie

-19

wrz

-19

paź-1

9

lis-1

9

gru

-19

sty

-20

lut-

20

mar-

20

Velocity ratio WIG20 volatility

Main Market399 domestic companies48 foreign issuers

NewConnect371 domestic companies6 foreign issuers

Catalyst146 issuers (incl. State) 510 listed non-TreasuryIssues

Market cap:PLN 404 bnPLN 378 bn

Market cap:PLN 9,9 bn

Value of non-Treasury issues: PLN 95,6 bn

Flow of new companies to the marketIssuer activity on GPW markets1

Acquisition of issuers

On the radar: family companies, PE funds, CEE companies, state-owned companies and theirsubsidiaries

Intensive activities aimed at promoting the stock market as a place to raise capital for development

Individual meetings with companies previously inactive on the GPW markets

GPW Growth

27

Diversified issuers portfolio

Launch of a comprehensive educational program GPW

Growth oriented to support the development of small

and medium enterprises

Supporting non-public companies in building their value

through expansion using external sources of financing,

in particular with a strong accent of development

through the capital market

84 107185

351429 445 431 418 406 408 387 375 377

374 379

400

426

438 450 471 487 487 482 465 449 447

201520102008 2009 20142011 2012 2013 2016 2017 2018 2019 Q1’20

CAGR 5.0%

NewConnectMain MarketEquity market

Debt market

Equity market for SME

1 As of the end of March 2020; Source: GPW

5

NewConnect is dedicated to SMEs across many sectors,

including technology companies

NewConnect opened in 2007 and its current capitalisation is

PLN 9.9 billion1.

Since the launch, over 600 companies1 have been listed on

NewConnect.

Since the launch, 69 companies have transferred from

NewConnect to GPW’s main market, i.e., 15 percent of

companies listed on the GPW Main Market started on

NewConnect1.

NewConnect is dominated by individual investors who

generated 86% of turnover in 2019.

Since the launch, IPOs and SPOs on NewConnect, have

totalled approx. PLN 5.0 billion1.

In July 2019, NewConnect was authorised by PFSA as an SME

Growth Market, joining an exclusive group of trading venues

including the London Stock Exchange AIM and AIM Italia.

28

Strong position of NewConnect among European alternative trading venues

#3 in Europe by number of IPOs in 20192

IPOs on NewConnect 2014-2019

1 Source: GPW data as at Q1 20202 Source: IPO Watch, PwC for 2019.

5

19

1615

10

3

1

Borsa Italiana - AIM

Nasdaq Nordiq (First North)

Euronext (Alternext)

NewConnect LSE (AIM) Deutsche Borse -Scale

BME Alternative

0

Number of IPOs in 2019

22

19

16

19

15 15

20192014 20162015 2017 2018

Number of IPOs

Segmentation of the corporate debt market architecture

Active role of the Exchange in attracting new issuers

Single banking licence: an opportunity to grow bank activity as debt market participants

Number of non-Treasury issues on Catalyst Total debt securities by residence of issuer as % of GDP1

Opportunities for further debt market development

29

3597

208

325

408

487 496 525566

527 512 510

20172011 20122009 2010 2013 2014 2015 2016 2018 2019 Q1’20

27.6%

1 Source: BIS (non-Treasury bonds as at the end of Q2 2019, latest available data), IMF (GDP in 2019, World Economic Outlook Database)

5

Employee Capital Plans (ECP)

30

6

max

min

ZUS (socialsecurity) OFE (OPF -

Open PensionFunds)

EmployeeCapital Plans(PPK)

EmployeePensionPlans(PPE)

IKE IKZE

2nd pillar (obligatory since 2013 r., now optional)

3rd pilllar (voluntary)1st pillar (obligatory)

public funds private funds

Employee Capital Plans (ECP)/Pracownicze Plany Kapitałowe (PPK) are a new system of private long-term pension savings, mandatory for employers but optional for employees, based on contributions of employees, employers and the public budget.

PPK scheme are very similar to UK Workplace Pension System PPK’s impact on GPW:

Increase of market turnover and increase of the velocity rate Attracting new issuers: growing number of IPOs A stronger market in equities, corporate bonds, treasury bonds, real estate investment funds Improved trust in and promotion of the capital market

31

Equities/debt share in total assets

Employee Capital Plans (ECP) / PPK

ECP intruduction schedule

Source: Ministry of Finance of Poland

6

StageSize od company (number of

employese)

number of potential

participants (mn)Start

I >250 3.3 01.07.2019

II 50-249 2 01.01.2020*

III 20-49 1.1 01.07.2020

IV others 5.1 01.01.2021

Total 11.5

Basic contributionVoluntary

contributionMax contribution

Employeecontribution

2% of gross wageup to 2,0% gross

wage4% gross wage

Employercontribution

1,5% of grosswage

up to 2,5% grosswage

4% gross wage

Maximum total contribution 8% gross wage

Contriubution paid by publicbudget:

welcome payment – PLN 250

annual payment – PLN 240

* Stage II is delayed; will be implemented simultaneously with Stage IIISource: Ministry of Finance of Poland

ECP assumes three (I, II, III) sources of contribution

Time left to the defineddate (reaching 60 years

old)Equities Debt

>20 years 60-80% 20-40%

11-20 years 40-70% 30-60%

6-10 years 25-50% 50-75%

1-5 years 10-30% 70-90%

After reaching the defined date (60 years)

<15% >85%


40%

20%

10%

20%

WIG20

mWIG40

other local equities

foreign equities

min

max


Equity portfolio structure

max

min

I

II

III

According to PFR forecasts, PPK assets should reach approx.

PLN 3 billion by the year’s end.

The PPK launch is currently in its second round including

companies with at least 50 employees. The deadlines have

been postponed to 27 October 2020 (PPK management

contract) and 10 November 2020 (PPK operation contract).

Speaking at a debate hosted by the Chamber of Fund and

Asset Managers on 11 May, PFR CEO Paweł Borys said that

PPK deadlines may have to be pushed back depending on the

evolution of the epidemic.

Source: PFSA, Analizy Online 32

PPK assets have crossed the mark of PLN 1 billion

PPK: net asset value of target-date funds1

0

100

200

300

400

500

600

700

800

900

1 000

1 100

Mar.-20St.-20Gr.-19 Kw.-20Luty-20

PPK assets [PLN M]

6

Lunch of Agricultural Market– pilot wheat trading from March to August 2020.

Maker-Taker: On 1 January 2019, TGE opened a Maker-Taker pilot liquidity support programme to minimise operating expenses of market participants by narrowing the spread between bids and asks. TGE reviewed the programme performance and decided to continue the programme to June 2020.

CO2 emission allowances: On 18 July 2019, TGE reopened the Financial Instruments Market which lists CO2 emission allowances; under MiFID2, allowances are a financial instrument.

White certificates: The Act amending the Excise Tax Act and certain other Acts of 29 June 2019 extended the support scheme for energy efficiencycertificates to the end of June 2021.

Organised Trading Facility (OTF) - transformation of TGE’s forward commodity market into an organised trading facility (OTF) under MiFID II

Energy market – obligation to sell a proportion of Energy on the exchange – increased from 30% to 100%.

Commodity market growth drivers

Natural gas trading (spot+forward)TGE electricity trade volumes (spot+forward)

TWh

Commodity market

33

10,1 9,1

87,9

130,8139,4

176,6186,8186,7

126,7111,7

226,1228,9

66,6

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Q1'20

0,0 1,1 2,4

111,6 106,9114,5

138,7 143,3 146,1

39,9

2011 2012 2013 2014 2015 2016 2017 2018 2019 Q1'20

7

TWh

34

Agricultural Market: a new business pillar

The Agricultural Market includes 20 authorised

warehouses and 3 authorised brokers (Noble

DM, DM BOŚ, PGE DM)

The first auction held on 14 May sold all offered

250 tonnes of wheat in 10 transactions at the

average price of 830.40 PLN/tonne.

The fee waiver expires at the end of August.

Agricultural Market pilot till the end of August

The priority during the pilot is to attract more market

participants, authorised warehouses and brokers.

The range of agricultural products will later be extended

to include maize, sugar, skimmed milk powder,

pork semi-carcasses, concentrated apple juice.

New products on the horizon

transaction fee (TGE), both in single-price trading

and at auctions 2.40 PLN/tonne

clearing fee (IRGiT): single-price trading 1

PLN/tonne, auctions 2.00 PLN/tonne

fees may be temporarily reduced

Fees after the pilot

7

More information: www.tge.pl/en-home

Strategy update #GPW2022 (strategicinitiatives)

Stock MarketDebt Market

Commodity MarketInformation offer for

investors and issuers

New business linesDerivatives MarketStock market Debt marketCommodity

marketInformation

productsDerivatives

market

GPW Growth

SecuritiesLendingSystem

- GPW - TGE - BondSpot PRA

Derivatives Development

Organised Trading Facility (OTF)

Waste and Secondary Raw Materials Trading Platform

GPW DataGPW Private Market

GPW TCA TOOL

BondSpot Development

Polish Rating Agency

35

AgriculturalCommodityMarket

GPW Ventures

GPW Group

8

GPW Tech

Trading Platform

Aids classification of Poland amongst the 25 Developed Markets…

Poland’s Promotion to Developed Markets: Success of Poland’s Economy and Capital Market

Well-developed and stable market infrastructure

Broad selection of listed stocks and high liquidity

Wide and unlimited access to professional market intermediaries

Independent supervision over the market and high standards of corporate

governance

Efficient and secure trading and post-trading services

Little limitations on investing by foreign investors

Extensive, legally regulated added value services including short selling

and omnibus securities accounts

Highly appreciated Polish capital market…

Ceremony at London Stock Exchange FTSE Developed Markets ranking in numbers1

developed markets

emerging, frontier, other markets

0.12%Poland’s share in FTSE Developed All Cap Index as of September ’19

1.33%Poland’s previous share in FTSE Emerging All Cap Index

September 2018Poland’s reclassification by FTSE Russel

0,71%Poland’s share in MSCI EmergingMarkets

1 Source: FTSE Russell 36

9




V. Appendices 48


38

Strong financial results driven by above-average market volatility

EBITDA and EBITDA marginSales revenue Net profit and net profit margin

PLN mn

PLN mn

PLN mn

GPW Group’s sales revenue increased by 15.3% YoY to PLN 97.0 mn driven by higher revenues from

the financial market (+18.7% YoY) and the commodity market (+10.4% YoY)

GPW Group’s EBITDA at PLN 50.0 mn (+29.8% YoY)

GPW Group’s net profit at PLN 29.3 mn (+19.7% YoY). The increase of the net profit was driven by

a high growth of revenue while operating expenses kept stable.

Q1’20Q4’19Q1’19 Q3’19Q2’19

89.184.2 82.5 80.3

97.0

+15.3%

Q1’19

57.6

Q2’19 Q3’19 Q4’19 Q1’20

55.9

38.6 41.2

50.0

+29.8%

51.6%64.6%

45.8% 51.3%67.8%

Q1’19 Q2’19 Q3’19 Q4’19 Q1’20

42.6

24.5

41.1

11.2

29.3

+19.7%

30.2%

14.0%

49.8%

29.1%

47.7%

39

Increase in trading revenue from the financial market

Trading revenue – financial market

Investor activity on GPW markets

Trading revenue from the financial market at PLN 41.5 mn

in Q1’20 (+29.7% YoY)

Average EOB turnover in shares per session on the Main

Market in Q1’20 at PLN 986.4 mn vs. PLN 834.6 mn in

Q1’19. The annual average in 2019 was PLN 787.4 mn.

Average fee on the stock market at 2.26 bps in Q1’20

driven by higher investor activity including new retail

investors.

Average fee historically by quarter: 2.22 bps in Q1’19,

2.19 bps in Q2’19, 2.16 bps in Q3’19, 2.20 bps in Q4’19.

The annual average fee in 2019 was 2.19 bps.

vs. 2.21 bps in 2018 vs. 2.18 in 2017.

PLN mn

1 Other cash market instruments, other fees paid by market participants

Q1'19 Q2’19 Q3’19 Q4’19 Q1’20

Shares – value of trading (EOB, PLN bn)

51.2 46.3 49.0 44.9 61.1

+19,2% YoY

+36,1% QoQ

Futures and options – volume of trading (mn contracts)

1.7 1.6 2.0 1.7 3.1

+80,8% YoY

+83,4% QoQ

Treasury bonds – TBSP, cash transactions (PLN bn)

36.4 17.8 21.1 10.6 18.6

-48,9% YoY

+76,3% QoQ

Treasury bonds – TBSP, conditional transactions (PLN bn)

57.9 70.5 35.3 32.9 43.6

-24,7% YoY+32,6% QoQ

Q1’20: 42,8%

1

2.6

20.9

2.42.4

Equities

Q4’19

2.7

Q2’19

22.0

2.9

2.5 2.2

Q3’19

20.4

2.72.6

2.61.5

32.0

4.5

2.8

Q1’20

Derivatives

2.6 2.5

24.1

Other

29.9

27.1

Q1’19

41.5

32.0

28.4

Fixed income

+29.7%

40

Stable listing revenue

Listing revenue

Issuer activity

PLN mn

Q1’20: 5,5%

Three IPOs on NewConnect in Q1’20 (Plantwear,

Drageus Games, SpyroSoft).

SPO value in Q1’20 892 PLN mn vs. 192 PLN mn in

Q1’19.

Listing revenue in Q1’20 stable YoY. 447 listed

companies at the end of Q1’20 vs. 461 at the end of

Q1’19 (on the Main Market).

Free float on the Main Market at the end of Q1’20 at

49.0% vs. 52% at the end of Q1’19.

Q1’19 Q2’19 Q3’19 Q4’19 Q1’20

Number of new listings on the Main Market

2 2 2 1 0

Capitalisation of domestic companies (PLN bn)

597.7 594.4 551.1 550.2 404.2

-32,4% YoY

-26,5% QoQ

Value of IPOs (PLN mn)

22 40 5 9 3

Q2’19

0.70.7

4.6

4.3

Q1’19

0.8

4.3

0.8

4.2

Q3’19

4.3

0.0

Q4’19

4.5

Q1’20

Listing

Introduction

5.15.3

5.05.4

+1.9%

41

Stable revenue from information services – financial market and commodity market

Revenue from information services – financial market

Data vendors, subscribers and non-display clients

PLN mn

Q1’20: 12,5%

Q4’19

0.2

11.8

Q3’19

0.2 0.2

Q1’19

0.2

12.2 12.0

Q2’19

11.5 12.2

0.3

Q1’20

12.4 12.111.7

12.4 12.1

-2.0%

Q1'19 Q2'19 Q3'19 Q4’19 Q1’20

Number of subscribers (thou.)

253.8 249.6 238.5 260.3 312.1

+23,0% YoY

+19,9%

QoQ

Number of vendors

80 82 83 83 85

+6,3% YoY

+2,4% QoQ

Non-display

84 86 88 94 96

+14,3% YoY

+2,1% QoQ

New clients of GPW data in different marketsegments attracted in Q1’20:

2 GPW Group data vendors

2 non-display clients

2 users of processed data

Dynamic increase in the number of individualsubscribers (basic data feed – 1 ask and 1 bid)

Market Data (financial market)

Market Data (commodity market)

42

Revenue from the electricity, gas, and property rights markets

Trading revenue – commodity market

Investor activity on the commodity market

PLN mn

Q1’20: 19,5%

Q1’19 Q2’19 Q3’19 Q4’19 Q1’20

Electricity – volume of trading (TWh)

44.3 52.9 65.0 66.7 66.6

+50,3% YoY

-0,1% QoQ

Natural gas – volume of trading (TWh)

28.5 37.3 39.6 40.7 39.9

+40,0 % YoY

-1,8% % QoQ

Property rights – volume of trading (TWh)

11.0 21.1 5.6 6.3 6.7

-39,0% YoY+6,9% QoQ

Q3’18 Q4’18 Q1’19 Q2’19 Q3’19

Q3’19

7.6

3.5

Q1’19 Q2’19 Q4’19

Electricity

Natural gas

3.3

Property rights

Other fees

3.4 3.4

3.2

15.9

Q1’20

22.1

18.8 18.3 18.9

3.0

7.3

2.4

3.2

3.0

12.5

3.1

3.3

4.7

6.7

4.9

3.5

7.3

4.8

+18.9%

Revenue from trading in electricity in Q1’20 increased to PLN

4.8 mn (+50.0% YoY) due to a sharp increase of forward

trading combined with flattish spot trading.

Revenue from trading in gas in Q1’20 increased to PLN 3.4

mn (+40.6% YoY) due to continuation of high volumes

already reported in H2 2019.

Revenue from trading in property rights stable at PLN 7.3 mn

(-0.9% YoY), a very strong figure given that trading in

cogeneration certificates ended as of the end of June 2019

Other fees paid by market participants increased to PLN 3.5

mn (+16.1% YoY).

43

Revenue from clearing

Revenue from clearing

Revenue from operation of the Register1 Activity of participants of the Register of Certificates of Origin

PLN mn

PLN mn

Q1’20: 13,5%

Q1’20: 6,0%

1 Revenue from the Register of Certicicates of Origin, including revenue

from the Register of Guarantees of Origin.

12.4

Q3’19Q1’19 Q4’19Q2’19 Q1’20

13.112.2

10.9 10.8

+20.3%

Q2’19 Q4’19Q1’19

6.2

Q3’19 Q1’20

7.69.0

5.15.9

-22.9%

Q1’19 Q2’19 Q3’19 Q4’19 Q1’20

Volume of issued property rights (TWh)

18.0 8.3 4.8 4.0 6.0

-66,6% YoY

+50,0% QoQ

Volume of cancelled certificates of origin (TWh)

7.2 19.9 13.1 5.4 4.4

-38,9% YoY

-18,5% QoQ

Guarantees of Origin – volume of trade (TWh)

6.0 4.1 4.1 3.9 5.0

-16,5% YoY

+28,2% QoQ

Revenue from clearing increased in Q1’20 to PLN

13.1 mn (+20.3% YoY).

Revenue from the operation of the Register of

Certificates of Origin decreased in Q1’20 to PLN 5.9

mn zł (-22.9% YoY) mainly due to the end of

cancellation of cogeneration certificates.

The volume of transactions in RES electricity in the

Register of Guarantees of Origin in Q1/20 at

5,027,866 MWh, a decrease of 16.5% YoY.

Cost/income ratio (C/I)2 in Q1’20 at 57.8

vs. 64.5 in Q1’19.

Depreciation charges in Q1’20 at PLN 9.8 mn (+6.2% YoY).

Salaries and other employee costs increased to PLN 22.3 mn

(+14.7% YoY) driven by additional headcount in the

implementation of the strategy.

External service charges increased to PLN 11.4 mn (+12.5%

YoY) driven mainly by higher cost of IT services and external

advisory. External service charges decreased by 25.5% QoQ

driven by a decrease in the cost of promotions, advisory, IT

and training.

44

Operating expenses impacted by higher external service charges, headcount, and salaries

Operating expenses: +3.2% YoY

Change in operating expenses

1 Other includes rent, fees and charges (net of the KNF fees), and other operating expenses2 C/I based on reported data

PLN mn

PLN mn

12.9

9.2

Q1’19

47.4

22.319.4

8.99.4

10.1

2.7

19.3

PFSA (KNF) fee

19.9

11.5

3.1

Q2’19

-6.2

19.2

11.5

2.7

10.0

Q3’19

56.1

D&A

11.4

9.4

15.3

2.7

9.8

2.6

Q1’20

Total employee costs

External services

Q4’19

Other

54.3

43.3 36.1

1

2.9

Q1’19 Total employee costs

54.3 0.6

Rents Taxes (inc. PFSA fee)

Deperciation & Amortization

2.9

Other

0.0

1.3

Q1’20External services

0.156.1

Group’s share of profit of associates in Q1’20 at PLN

1.980 mn (+100.2% YoY).

KDPW:

The Group’s share of profit of KDPW (GPW holds

33.33% of shares) in Q1’20 at PLN 1.848 mn

vs. PLN 1.068 mn in Q1’19.

The Group’s share of profit of Polska Agencja

Ratingowa (PAR)* in Q1’20 at PLN 0.0 mn vs. loss of

(PLN 0.171 mn) in Q1’19

GPW’s share of profit of Centrum Giełdowe in Q1’20 at

PLN 0.132 mn vs. PLN 0.092 mn in Q1’19

45

Share of profit of entities measured by the equity method

Share of profit

Change (YoY) of share of profit

PLN mn

0.780

Q1’19

0.171

Q1’20

0.0400.989

1.980

PLN mn

CG

(24,79%)KDPW

(33,33%)

Polish

Rating

Agency

(33,33%)

Q2’19Q1’19 Q3’19 Q4’19 Q1’20

0.989

3.638

4.692

1.943 1.980

+100.2%

KDPW

PAR

CG

46

GPW Group’s consolidated balance sheet

The increase in total assets

as of March 31, 2020

compared to December 31,

2019 is mainly the result of

an increase in the balance

of cash of PLN 55.4 million

*(mainly the result of

higher Q1 2020 vs. Q4

2020 revenues, including

annual fees paid in advance

for the whole year in

January).

PLN mn 31.03.2019 30.06.2019 30.09.2019 31.12.2019 31.03.2020

Non-current assets, including among others 598,2 586,2 585,6 590,1 587,8

Property, plant and equipment 104,5 100,6 97,3 102,0 98,2

Intangible assets 250,1 246,8 247,3 246,6 246,0

Share of profit of associates 207,9 204,8 208,4 210,3 211,7

Current assets, including among others 733,2 771,9 645,4 666,7 740,2

Trade and other receivables 66,5 73,2 56,2 45,2 68,1

Financial assets measured at amortised cost 361,7 217,7 333,7 329,0 243,3

Cash and cash equivalents 302,6 478,1 253,4 281,3 422,4

Total assets 1 331,4 1 358,1 1 231,1 1 256,8 1 328,1

PLN mn 31.03.2019 30.06.2019 30.09.2019 31.12.2019 31.03.2020

Equity 911,9 821,2 859,1 873,5 901,6

Non-current liabilities 281,0 281,2 282,6 283,5 276,9

Liability under the bond issue 244,1 244,2 244,3 244,4 244,4

Current liabilities, including among others 138,5 255,7 89,3 99,8 149,6

Trade payables 19,9 31,9 13,8 11,6 21,4

Employee benefits payable 13,0 13,6 16,5 17,2 15,8

Contract liabilities 32,7 22,2 12,0 4,4 35,6

Other current liabilities 54,6 171,9 34,0 41,7 43,6

Total equity and liabilities 1 331,4 1 358,1 1 231,1 1 256,8 1 328,0

* Total cash should be analyzed as a sum of "Cash and cash equivalents" and "Financial assets measured at amortized cost". The "Cash and cash equivalents" item includes cash on bank accounts and deposits with maturity up to 3 months, the item "Financial assets valued according to amortized cost” includes, among others cash on deposits with maturity over 3 months




V. Appendices 48


GPW Group’s consolidated profit and loss account

48

Sales revenue increased YoY driven by an

increase of revenue from the financial market

(by PLN 9.2 mn) and the commodity market

(by PLN 3.5 mn).

Operating expenses increased YoY by

PLN 1.8 mn mainly driven by an increase of

salaries and other employee costs (by PLN 2.9

mn mainly due to additional headcount) and

an increase in external service charges (by

PLN 1.3 mn).

The net profit of Q1’20 charged with a one-off:

provisions set up at PLN 7.0 mn against

potential VAT payable in Izba Rozliczeniowa

Giełd Towarowych (IRGiT). GPW holds

indirectly 100% of IRGiT. The provisions were

charged to financial expenses (including

interest on tax payables).

PLN mn Q1'19 Q4'19 Q1'20

Revenue 84,2 80,3 97,0

Financial market 49,5 43,6 58,7

Trading 32,0 27,1 41,5

Listing 5,3 4,3 5,4

Information services 12,2 12,2 11,8

Commodity market 34,6 36,0 38,1

Trading 15,9 18,3 18,9

Register of Certificates of Origin 7,6 5,1 5,9

Clearing 10,9 12,4 13,1

Information services 0,2 0,2 0,3

Other operating income 0,1 0,7 0,2

Operating expenses 54,3 47,4 56,1

Other income 1,3 1,5 1,2

Impairment gains/(losses) on receivables -1,1 -1,8 -1,1

Other expenses 0,7 0,8 0,9

Operating profit 29,4 31,7 40,3

Financial income 2,1 1,8 4,3

Financial expenses 2,1 17,8 9,1

Balance on financial income and expencies -16,0 -4,8

Impairment loss on investments in other entities 0,0 0,0 0,0

Share of profit/(loss) of entities measured by

equity method1,9 2,0

Profit before income tax 30,3 17,6 37,4

Income tax 5,9 6,4 8,2

Net profit 24,5 11,2 29,3

EBITDA 38,6 41,2 50,0

GPW Group’s consolidated cash flows

49

Positive cash flows from operating

activities in Q1’20, down by PLN 35.3

mn YoY mainly due to negative

changes in balance sheet items

(adjustments down by PLN 38.8 mn)

combined with a higher net profit (up

by PLN 4.5 mn).

Positive cash flows from investing

activities in Q1’20, up by PLN 61.5 mn

YoY mainly driven by an improved

balance of purchase and sale of

financial assets measured at amortised

cost (corporate bonds, bank deposits).

Negative cash flows from financing

activities in Q1’20, up by PLN 0.6 mn

YoY mainly due to revenue from

grants.

The Group’s capex in Q1’20 at PLN

11.2 mn (PLN 4.1 mn in Q1’19).

PLN mn 3 months period ended 31 March of 2020 2019

Total net cash flows from operating activities 67,1 102,4

Net prof it of the period 29,3 24,5

Adjustments: 48,3 87,1

Income tax 8,2 5,9

Depreciation and amortisation 9,8 9,2

Share of (profit)/loss of entities measured by equity method -2,0 -1,0

(Gains ) on assets measured by equity method -1,2 -1,2

Interest on bonds 1,8 1,8

Other adjustments -1,8 0,4

Change of assets and liabilities : 33,5 71,9

Trade receivables and other receivables -22,8 2,9

Other liabilities (excl. contracted inves tments and dividend payable) 8,8 30,6

Provis ions for liabilities and other charges 6,9 0,0

Income tax (paid)/refunded -10,5 -9,1

Total cash flows from investing activities: 76,0 14,5

In: 257,0 214,8

Sale of property, plant and equipment and intangible assets 0,1 1,5

Sale of financial assets measured at amortised cost 254,9 0,0

Interest on financial as sets measured at amortised cost 1,8 1,6

Out: -181,0 -200,4

Purchase of property, plant and equipment -4,1 -1,2

Purchase of intangible as sets and advances for intangible as sets -7,0 -2,8

Purchase of financ ial as sets measured at amortised cos t -169,6 -196,3

Total cash flows from financing activities: -2,4 -3,0

In: 0,8 -

Grants received 0,8 -

Out: -3,2 -3,0

Interes t paid on bonds -1,7 -1,7

Net (decrease)/increase in cash and cash equivalents 140,7 113,9

Cash and cash equivalents - opening balance 281,3 188,7

Cash and cash equivalents - closing balance 422,4 302,6

27,3%

3,6%

3,0%2,6%

5,7%

13,6%

44,0%

0,3%

Information services

Listing

Trading - other

Trading - fixed income

Trading - derivatives

Trading - shares

Commodity Market: 44,0%

Financial Market (excl. Information services): 42,1%

Other revenue (0,3%)

2010 2012 20182011 20152013 20162014

311

2017

226

2019

269 274 284318 328

352 347 336

CAGR: +6,7%

GPW Group’s annual revenue (PLN mn)

GPW Group’s revenue structure: incremental for 12 months ended 31 March 2020

50

5,1%

3,8%

9,8%

3,7%

7,5%

13,9%

0,2%Information services (commoditymarket)Clearing

Register of Certificates of Origin

Trading - other

Trading - property rights

Trading - gas

Trading - energy

including TGE Group: 153,5 PLN mn

Information services:13,6%*

*Since revenue from information services on the commodity market is presented in a dedicated line, the data

above only include revenue on the financial market.

GPW Group: 349,0 PLN mn

Revenue drivers:

Value of trading in equities

Structure of orders (small,

large, mid-sized)

51

Financial market: Trading in equities

Value of trading in equities and number of transactions

Volatility – WIG and WIG20

1 Share in GPW Group’s revenue in Q1'20

32,9%1

203167

38.2

160

20162008

51.951.4 48.4

201720112009

207 205

2010

72.1

55.3251 46.4

188

2012

112.2

2014

220 204

2013

55.565.9

2015

61

70.1

190

80.2

236

71.573.1

2018

191

2019

51

Q1’19 Q1’20

Average number of transactions per session (thous.)

Value of trading in equities, EOB (PLN mn)

20,1%

28,5%28,0%

15,4%19,3%

13,9%14,3%12,6%13,6%

15,4%11,6%

14,9%12,6%

28,4%

22,7%

34,4%35,0%

19,2%22,0%

16,5%16,8%14,2%

16,3%18,7%

14,8%18,6%

14,9%

32,2%

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Q1'20

WIG WIG20

52

Financial market: Trading in derivatives

Volume of trading in derivatives

Volume of trading in futures vs. volatility

1 Velocity ratio (value of trading in WIG20 futures to value of trading in WIG20 stocks)2 Share in GPW Group’s revenue in Q1'20

9.5

104.2

131.0

80.4

201720162009

12.614.7

8.2

177.8168.1

2008 2014

13.8

2010

132.8

15.5

3.1

2011 Q1’20

137.2

2018

12.611.3

143.6

2012

184.8

2013

138.1

7.6

2015

140.1

165.0 171.2

2019

8.2

156.5

Q1’19

8.0 7.0

1.7

Number of Open Interest (thous.)

480%439%404%

121%181%

139% 116% 132% 116% 121% 123%127% 106% 111%PLN bn

1DLR

125 124 152192

149 174 160 162 147

174160 163

42 51

602

502

668

347

207 201 212 196170

210 204174

46 63

20162011 20122008 20152009 2010 2013 2014 2017 2018 2019 Q1’19 Q1’20

Revenue drivers:

Volume of trading in futures

Number of open interest

Volatility

4,6%2

Trading - WIG20 stocks

Trading - WIG20 futures

53

Financial market: Other instruments and fees paid by participants

Value of trading on Treasury BondSpot Poland, PLN bn

Number of exchange members

1 Share in GPW Group’s revenue in Q1'20, trading in debt instruments2 Share in GPW Group’s revenue in Q1'20, other trading fees paid by market participants

2,9%1

188

731612

498 439339

158

338260 197

58

135

307450

347327

260

255

196

147

86

36 19

84

44

20122008 2009 2010 2015

845

201420132011 2016

101

2017 2018

407

2019 Q1’19

599

Q1’20

767

324

1.037 1.062

413

535

282

94 62

Repo transactions

Cash transactions

18 17 19

29 27 26 26 28 25 25 25 28 28

3129

30

32 3331 30 29

28 28 27 22 22

20122008 201420112009

5053

2010

61

2013 2015 2016 2017 2018 2019 Q1’20

4946

49

6057 56 57

53 5250

Local

Remote

2,0%2

Revenue drivers:

Value of trading in Treasury

bonds

Number of exchange members

54

Financial market: Listing

Capitalisation of domestic companies

IPO/SPO value and number of companies


5,5%1

28.9%

267

20.0%

550

20092008

30.7%

421

2013

36.8%

671543

2010

27.9%

446

2011

32.0%

523

2012 2018

36.5%

2019

593

34.8%

30.0%

591

20152014

517

Q1’20

30.0%

557

2016

34.8%

2017

579

25.0%

18.4%

404

Revenue drivers:

Capitalisation at year end

Value of newly issued shares

and bonds

Number of issuers

Market Capitalisation/GDP (%)

Market Capitalisation of domestic companies (PLN bn)

486585

777867 895 902 905 893 890 852 824

20182010

22.71

2012 20172014

1.36

2015

1.15

2016 2019

6.84

Q1’20

20.08

0.90

15.69

2009

7.734.14 3.66

3.124.355.24

3.622.07

0.35

43.13

3.95

90.79

0.08 0.00

8.105.36

20132011

9.23

IPO, PLN bn

SPO, PLN bn

Number of listed companies (Main Market + NC)

55

Financial and commodity market: Information services

Number of data vendors

Number of subscribers (thou.)

12,5%1

19 18 19 20 21 24 27 24 25 25

42 46 47

31 32 33 37 37 34 3130 28 27

3637 38

20132011

54

2008 2009

50

2010 2012 201820152014

53

2016 2017

52

2019

85

Q1’20

5057 58 58 58

52

7883

Domestic

Foreign

187

307327

288

262240

221 225248 248

260

312

201220112009 2014 201820132010 2015 2016 2017 2019 Q1’20

Revenue drivers:

Number of data vendors

Number of subscribers

1 Total share of information services on the financial market and the commodity market in GPW Group’s revenue in Q1’20

56

Commodity market: Trading in electricity and gas

Volume of trading in electicity (TWh)1

Volume of trading in gas (TWh)

1 Data for 2006-2013 include trading on the GPW Energy Market poee2 Total share of trading in electricity and trade in gas in GPW Group’s revenue in Q1’20

8,4%2

gaz

228.9

22.3

2008 201620122009 2011

74.5

2010

21.7

109.1

33.9

2014

21.3

27.7

118.1154.3

2013

195.0

2017

86.4

23.7

9.1

163.0

25.1

161.6

2015

27.6

99.0

10.1

25.2 198.3

130.8

87.9

2018 2019

8.5

13.4

35.8

Q1’19

8.5

186.7

58.1

Q1’20

139.4

176.6186.7

126.6111.7

226.1

44.3

66.6

114.7105.1 123.5119.6

0.42.41.1

2016

28.5

13.9

0.0

143.3

2012

6.9

2013

39.9

6.5

2019

2.0

Q1’20

111.6 106.8

138.7

2015

92.9 89.9

2017

146.1

Q1’19

32.5

2018

114.5

7.4

2014

24.6

24.0 23.7 22.6

21.6

Spot

Forward

Spot

Forward

Revenue drivers:

Volume of trading in electricity

Volume of trading in gas

Share of spot and forward trading

57

Commodity market: Trading in property rights

Spot trading in property rights (TWh)

Number of participants of the Register of Certificates of Origin

1 Share in GPW Group’s revenue in Q1'202 Trading in cogeneration property rights ended at the end of June 2019.

35.2

2008

13.2

6.7

32.1

59.362.2

26.6

2010

58.9

35.6 35.7

39.3

20162011

48.8 19.9

18.0

42.4

2014

21.8

50.236.0

30.8

17.526.2

24.0

20132012 2017

15.1

25.9

28.532.3

2015

6.7

2018

29.8

2009

28.3

Q1’19

23.1

0.0

Q1’20

29.9

44.8

50.8

58.1

2019

11.0

6.8

9.6

5.9

3.9

5.0

43.9

Green Certificates

Cogeneration certificates

14451656

18622117

2539

2970

34493706

3980 3911

20142011 20182012 20172013 2015 2016 2019 Q1’20

7,5%1

Revenue drivers:

Volume of trading in property

rights

Share of certificate categories

in trading

Number of register participants

2

58

Commodity market: Register of Certificates of Origin

Volume of issued certificates of origin (TWh)

Volume of cancelled certificates of origin (TWh)


6,0%1

6,0

5,525,9

2009

10,710,8

24,2

2008

11,9

21,5

47,250,7

41,1

21,0

25,8

19,9

2010

26,6

2011

15,3

48,5

14,1

2012

17,6 20,6

2013

21,6

2014 2015

23,4

27,3

18,9

28,3

2016

24,5

24,0

36,6

12,5

2017

27,6

6,0

2018 2019 Q1’19

0,0

Q1’20

27,6

31,9

37,2

29,5

18,0

42,2

47,5

35,1

Green Certificates


7,24,4

9,6

8,8

9,1

13,8

45,6

2018

15,4

10,3

18,826,9

2009 2010

25,2

16,6

47,0

2011

20,6

12,4

30,8

2012

19,0

20,027,4

36,2

2013

0,6

2014

13,2

2015

22,3

16,8

43,2

26,1

2016 2017

28,0

17,8

2008 Q1’192019 Q1’20

20,1

27,8

27,025,0

42,9

52,1

25,8


Green Certificates

Revenue drivers:

Volume of issued property rights

Volume of cancelled property

rights

Glossary (1)

59

Cogeneration

Colocation

COR

ECM

EOB

ETF

ETP

FESE

Free float

Green certificates

HVF

technological process where electricity and heat are generated simultaneously in a combined heat and power plant; thanks to lower consumption of fuel, cogeneration provides material economic benefits and environmental advantages over separate generation of heat in a traditional heat plant and of electricity in a condensation power plant

a service where the exchange provides physical space and allows clients to install hardware and software in direct proximity to the exchange’s trading system

Certificates of Origin Register, register maintained by the Polish Power Exchange responsible for registration and record-keeeping of certificates of origin

Equity Capital Market, value of equity raised on the financial market

Electronic Order Book, trade excluding block trades

Exchange Traded Funds, track the performance of an exchange index. Similar to other investment funds, ETFs are regulated under EU Directives and national regulations. ETF can daily create and cancel ETF units. ETF units are exchange traded on the same terms as shares.

Exchange Traded –Products, structured products – financial instruments whose price in linked to the value of a market indicator (the underlying instrument)

Federation of European Stock Exchanges

free float shares are shares other than held by shareholders which hold more than 5% each, Treasury shares for cancellation, and registered shares; free float includes all shares held by investment funds, pension funds and asset managers and shares participating in depository receipt issue programmes

Certificate of origin is a document cerifing that the Energy was produced from the renewable Energy resources

High Volume Funds, a promotion programme addressed to investment funds actively trading in shares on GPW

Glossary (2)

60

HVP

IPO

ISV

MCO

MRC

MTF

NEMO

OTC

REIT

RES

High Volume Provider, a promotion programme addressed to legal entities whose core business is to invest on financial markets only on own account

Initial Public Offering, in this presentation, PwC IPOwatch Europe reports and FESE data, IPO means all offerings where a company first raises equity on the capital market, either in a public offering or a private placement

Independent Software Vendors, providers of client software for exchange members used to trade on the trading platform

Market Coupling operator

Multi-regional Coupling, European project of operational integration of spot electricity markets

Multilateral Trading Facility, addressed mainly to institutional investors, offers trade in stocks combined with very short lead times for the execution of orders as well as low trading fees. MTFs are usually operated by investment firms (banks, brokers) or securities exchanges. MTFs offer trade in the same stocks as those listed on other markets and do not provide listings.

Nominated Electricity Market Operator is a market operator designated by the competent authority of the European Union Member State to participate in single day-ahead or single intraday coupling

Over the Counter, a non-regulated market outside the exchange, where trade in non-standard financial instruments is made directly between counterparties without the mediation of a securities exchange

Real Estate Investments Trusts are special companies and funds investing in real estate; they manage a real estate portfolio to earn a fixed income from rent, and pay out most of the earnings to shareholders as dividend

renewable energy sources

Glossary (3)

61

RGO

SPO

Post-trade services

UTP

White certificates

Velocity

Register of Guarantees of Origin, register of instruments supporting renewable energy sources, which aim to provide disclosure for the end customer as to the amount of electricity generated in a renewable source and supplied to the power distribution or transmission network

Second Public Offering

depository, clearing and settlement services

Universal Trading Platform, the trading system of the Warsaw Stock Exchange supplied by NYSE Technologies

Certificates of origin of energy efficiency

a measure of liquidity of trade in stocks equal to turnover in a period to average capitalisation at the beginning and at the end of the period

61

62

Contact:

GPW Investor Relations

Phone 22 537 72 50

[email protected]

www.gpw.pl/relacje_inwestorskie

Disclaimer

This presentation has been prepared by Giełda Papierów Wartościowych

w Warszawie S.A. (“Warsaw Stock Exchange”, “GPW” or “Company”) for its

shareholders, analysts, and other contractors. This presentation has been prepared

solely for information and is not an offer to buy or sell or a solicitation of an offer to

buy or sell any securities or instruments. This presentation is not an investment

recommendation or an offer to provide any services.

All efforts have been made to present the data in this presentation; however, some

data are derived from external sources and have not been independently verified.

No warranty or representation can be given that information in this presentation is

exhaustive or true.

GPW has no liability for any decisions made on the basis of any information or

opinion in this presentation. GPW informs that in order to obtain information about

the Company reference should be made to periodic and current reports published in

compliance with applicable provisions of Polish legislation.

IR events

28-29 May 2020

EME Financials, WOOD & Company, Warsaw

18 June 2020

Emerging & Frontier Markets - 2020 GEM's Conference:

domestic consumption stories, BM PKO BP, Rosenblat and

GPW, New York.

30 July 2020

Communication with investors restricted prior to publication of

H1 2020 financial results.

13 August 2020

Publication of the consolidated interim report of GPW Group for

H1 2020.

20-24 September 2020

25th Annual Financials CEO Conference, Bofa, London

1-2 October 2020

European Financials Conference, mBank, Warsaw

mailto:[email protected]

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