INTERIM REPORT OF THE

GIEŁDA PAPIERÓW WARTOŚCIOWYCH W WARSZAWIE S.A.

GROUP

FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2023

1. Selected market data 2
2. Selected consolidated financial data 5
3. Information about the GPW Group 7
3.1. Information about the Group 7
3.1.1. Background information about the Group 7 3.1.2. Organisation of the Group 8 3.1.3. Ownership 9
3.2. Main risks and threats 9
4. Financial position and assets 14
4.1. Summary of the GPW Group's results 14
4.2. Consolidated statement of comprehensive income 16
4.2.1. Sales revenue – summary 16 4.2.2. Sales revenue – financial market 16 4.2.3. Sales revenue – commodity market 21
4.2.4. Other sales revenue 23
4.2.5. Operating expenses 23 4.2.6. Other income, other expenses, loss on impairment of receivables 25


4.2.7. Financial income and expenses 25 4.2.8. Share of profit of entities measured by the equity method 25
4.2.9. Income tax 25
4.3. Consolidated statement of financial position 26
4.4. Consolidated statement of cash flows 27
5. Seasonality and cyclicity of operations 27
5.1. Trading on the financial market 27
5.2. Trading on the commodity market 27
6. Atypical factors and events impacting the GPW Group's results in Q3 2023 28
7. Atypical factors and events impacting the results at least in the next quarter 28
7.1. External factors 28
7.2. Internal factors 29
8. Other information 29
9. Quarterly financial information of Giełda Papierów Wartościowych w Warszawie S.A. for 9M 2023 31
Appendix: 36

1. Selected market data1

Capitalisation of domestic companies - Main Market (PLN bn)

Session turnover on the Main Market - equities (PLN bn)

Number of companies - Main Market domestic foreign

transfers from NewConnect new companies on the Main Market

Number of new listings - Main Market

Value of primary offerings - Main Market and NewConnect (PLN mn)

All value and volume statistics in this Report are single-counted, unless indicated otherwise.

Including dual-listed companies.

Turnover volume - futures contracts (mn contracts)

Number of new listings - NewConnect

Catalyst - value of listed non-treasury bond issues (PLN bn)⁴

Number of companies - NewConnect

22.3 21.7 29.9 28.7 38.2 26.1 29.1 59.8 91.6 80.8 0 20 40 60 80 100 120 140 - TBSP (PLN bn) cash transactions repo transactions

Treasury debt securities turnover value

Turnover volume - property rights in certificates of origin of electricity from RES (spot + forward,TWh)

Turnover volume - electricity (spot + forward; TWh)

3Q2023 4Q2023 1Q2023 2Q2023 3Q2023

Volume of redeemed certificates of origin of electricity from RES (TWh)

Volume of issued certificates of origin of electricity from RES (TWh)

Turnover volume - gas (spot + forward; TWh)

2. Selected consolidated financial data

Table 1: Consolidated statement of comprehensive income, earnings per share, EBITDA

	Nine months period ended 30 September (unaudited)
	2023	2022	2023	2022
	PLN'000		EUR'000[1]
Sales revenue	329,023	297,757	71,620	63,723
Operating expenses	(235,826)	(190,684)	(51,333)	(40,808)
Gains on reversed impairment of receivables/(Losses) on impairment of receivables	(374)	354	(81)	76
Other revenue	3,776	1,351	822	289
Other expenses	(1,772)	(10,044)	(386)	(2,150)
Operating profit	94,827	98,734	20,641	21,130
Financial income	22,966	17,928	4,999	3,837
Financial expenses	(5,747)	(6,328)	(1,251)	(1,354)
Share of profit/(loss) of entities measured by the equity method	23,770	20,702	5,174	4,430
Profit before tax	135,816	131,036	29,564	28,043
Income tax expense	(23,228)	(23,774)	(5,056)	(5,088)
Net profit for the period	112,588	107,262	24,508	22,955
Basic/Diluted earnings per share [2] (PLN, EUR)	2.65	2.56	0.58	0.55
EBITDA [3]	118,538	126,629	25,803	27,100

[1] At the incremental average exchange rate EUR/PLN for 9 months published by the National Bank of Poland (1 EUR = 4.5940 PLN in 2023 and 1 EUR = 4.6727 PLN in 2022).

[2] Based on net profit.

[3] EBITDA = operating profit + depreciation/amortisation.

Note: For some items, the sum of the amounts in the columns or lines of the tables presented in this Report may not be exactly equal to the sum presented for such columns or lines due to rounding off. Some percentages presented in the tables in this Report have also been rounded off and the sums in such tables may not be exactly equal to 100%. Percentage changes between comparable periods were calculated on the basis of the original amounts (not rounded off).

Table 2: Consolidated statement of financial position

	As at
	30 September 2023 (unaudited)	31 December 2022	30 September 2023 (unaudited)	31 December 2022
		PLN'000	EUR'000[1]
Non-current assets:	707,107	651,608	152,538	138,939
Property, plant and equipment	105,649	107,605	22,791	22,944
Right-to-use assets	9,349	4,685	2,017	999
Intangible assets	306,509	282,892	66,121	60,319
Investment in entities measured by the equity method	262,125	241,313	56,546	51,454
Other non-current assets	23,475	15,113	5,064	3,222
Current assets:	489,492	530,648	105,594	113,147
Trade receivables and other receivables	70,158	79,348	15,135	16,919
Financial assets measured at amortised cost	252,191	63,964	54,403	13,639
Cash and cash equivalents	151,702	378,641	32,725	80,735
Other current assets	15,441	8,695	3,331	1,854
TOTAL ASSETS	1,196,599	1,182,256	258,132	252,086
Equity	1,006,030	1,000,827	217,023	213,400
Non-current liabilities:	66,907	53,814	14,433	11,474
Lease liabilities	6,781	495	1,463	106
Other liabilities	60,126	53,319	12,970	11,369
Current liabilities:	123,662	127,615	26,677	27,211
Lease liabilities	2,852	4,852	615	1,035
Other liabilities	120,810	122,763	26,061	26,176
TOTAL EQUITY AND LIABILITIES	1,196,599	1,182,256	258,132	252,086

[1] At the average exchange rate EUR/PLN of the National Bank of Poland as at 30.06.2023 r. (1 EUR = 4.6356 PLN) and as at 30.12.2022 (1 EUR = 4.6899 PLN).

Table 3: Selected financial indicators

	As at/Nine months period ended 30 September (unaudited)
	2023	2022
EBITDA margin (EBITDA/Sales revenue)	36.0%	42.5%
Operating profit margin (Operating profit/Sales revenue)	28.8%	33.2%
Return on equity (ROE) (Net profit for last 12 months/Average equity at the beginning and at the end of the 12-month period)	15.3%	15.8%
Debt to equity (Lease liabilities and liabilities under bond issue/Equity)	1.0%	14.3%
Cost / income (GPW Group operating expenses / GPW Group sales revenue (for a 12-month period))	71.7%	64.0%

3. Information about the GPW Group 3.1. Information about the Group

3.1.1. Background information about the Group

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 "the parent entity") with its registered office in Warsaw, ul. Książęca 4.

The GPW Group comprises the most important capital and commodity market institutions in Poland and it is the biggest stock exchange in the region of Central and Eastern Europe. The main entity of the group is the Warsaw Stock Exchange, which organises trading in financial instruments and promotes economic knowledge among the general public through numerous educational initiatives. GPW is the most important source of capital for companies and local governments in the region and contributes to the dynamic development of the Polish economy, new jobs, the international competitiveness of Polish companies and, as a result, an increase in the wealth of Polish society. Presence on the capital market also brings other benefits to Polish entrepreneurs, such as increased recognition, credibility, efficiency and transparency of management. The Warsaw Stock Exchange has the highest capitalisation of any stock exchange in Central and Eastern Europe. It is also one of Europe's largest markets. Towarowa Giełda Energii S.A. operates markets whose participants include the largest companies in the energy sector in Poland. The product offer on TGE is similar to the most developed commodity exchanges in the markets of the European Union countries. The volume of electricity and gas trading positions the Polish exchange not only as the largest in the region but also as a major player on a European scale.

The GPW Group conducts activity in the following segments:

organising trade in financial instruments and conducting activities related to such trade, organising an alternative trading system;
operating the wholesale Treasury bond market Treasury Bondspot Poland;
operating a commodity exchange, including trade in electricity, gas, property rights in certificates of origin of electricity from renewable energy sources and energy efficiency, CO2 emission allowances, food and agricultural products, operating a register of certificates of origin, providing the services of trade operator and entity responsible for balancing;
operating a clearing house and settlement institution which performs the functions of an exchange clearing house for transactions in exchange commodities;
administering regulated data benchmarks (Exchange Indices Family, WIG, CEEplus) and non-interest-rate benchmarks (TBSP.Index), as well as interest rate benchmarks including the WIBID and WIBOR Reference Rates,
design, development and commercialisation of IT solutions dedicated to the widely understood financial market,
conducting activities in capital market education, promotion and information.

Basic information about the parent entity:

Name and legal status:	Giełda Papierów Wartościowych w Warszawie Spółka Akcyjna
Abbreviated name:	Giełda Papierów Wartościowych w Warszawie S.A.
Registered office and address:	ul. Książęca 4, 00-498 Warszawa, Poland
Telephone number:	+48 (22) 628 32 32
Telefax number:	+48 (22) 628 17 54, +48 (22) 537 77 90
Website:	www.gpw.pl
E-mail:	[email protected]
KRS (registry number):	0000082312
REGON (statistical number):	012021984
NIP (tax identification number):	526-02-50-972

3.1.2. Organisation of the Group

As at 30 September 2023, the parent entity and 14 direct and indirect subsidiaries comprised the Giełda Papierów Wartościowych w Warszawie S.A. Group. GPW held shares in companies measured by the equity method: two associates (one of which has a subsidiary) and one joint venture.

Chart 1: GPW Group, associates and joint ventures as at 30 September 2023

*Polska Agencja Ratingowa S.A. is a joint venture

Details of interest in other entities are presented below in section 8. The Group does not hold any branches or establishments.

3.1.3. Ownership

As at the date of publication of this Report, the share capital of the Warsaw Stock Exchange was divided into 41,972,000 shares including 14,772,470 Series A preferred registered shares (one share gives two votes) and 27,199,530 Series B ordinary bearer shares.

As at the date of publication of this Report, according to the Company's best knowledge, the State Treasury holds 14,695,470 Series A preferred registered shares, which represent 35.01% of total shares and give 29,390,940 votes, which represents 51.80% of the total vote. The total number of votes from Series A and B shares is 56,744,470.

According to the Company's best knowledge, as at the date of publication of this Report, no shareholders other than the State Treasury held directly or indirectly at least 5% of the total vote in the parent entity. The ownership structure of material blocks of shares (i.e., more than 5%) did not change since the publication of the previous periodic report.

3.2. Main risks and threats

The operation of the GPW Group is exposed to external risks related to the market, legal, and regulatory environment, as well as internal risks related to operating activities. With a view to its strategic objectives, the GPW Group actively manages its business risks in order to mitigate or eliminate their potential adverse impact on the Group's results.

The Group considers the following risks in each category to be objectively the most material; however, the order in which they are presented does not reflect the materiality or scale of their impact on the activity of the Group. Additional risks, which are currently not identified or are considered to be immaterial, may in the future have an adverse impact on the activity of the Group, its financial standing and business results.

Business risk:
- Risk related to geopolitics and the global economic conditions;
- Risk of the economic situation in Poland;
- Risk of diminished benefits of the Company's investment in KDPW;
- Risk of the amount of regulatory fees;
- Risk of concentration of turnover and dependence of a large part of sales revenue of the Group on turnover in shares of a limited number of issuers and in futures by a limited number of Exchange Members;
- Risk of concentration of turnover due to dependence of a large part of revenue of the Group from derivatives on turnover in WIG20 futures;
- Risk of concentration of turnover in the contingent transactions segment of the TBSP market;
- Risk of termination of the agreement under which TBSP has been appointed the reference market;
- Risk of non-implementation of the strategy by the Group;
- Risk of operating in the exchange and MTF sector;
- Risk of price competition;
- Risk of technological changes;
- Risk of provision of the WIBID and WIBOR Reference Rates;
- Risk of provision of the WIRON index;
- Risk of provision of capital market indices and benchmarks.
- Operational risk:
  - Risk of being capable of attracting and retaining qualified employees of the Group;
  - Risk of industrial dispute;
  - Risk of failure of the Group's trading systems;
  - Risk of dependence of the Group's business on third parties;
  - Risk of outsourcing of certain services;
  - Risk of insufficient insurance cover;
  - Climate risk related to the impact of extreme weather events;
  - Risk of the acquisition of the Armenia Securities Exchange by GPW.
- Legal risk:
  - Risk of amendments to national laws;
  - Regulatory risk related to European Union law;
  - Risk of ineffective protection of intellectual property;
  - Risk of potential infringements of intellectual property rights of third parties by the Group;
  - Risk of regulations governing open-ended pension funds in Poland;
  - Risk of amendments and interpretations of tax regulations.

Compliance risk:
- Risk of failure to meet regulatory requirements and PFSA recommendations applicable to the activity of the Group;
- Risks related to the requirements of financial and market institutions for climate and environmental protection and non-financial disclosures;
- Risk of potential violation of competition regulations by the Company;
- Risk of the Benchmark Administrator;
Reputation risk:
- Risk to the Group's reputation and clients' confidence in its ability to process exchange transactions;
- Reputation risk relating to GPW Benchmark.
ESG risk;
AML/CFT risk;
Financial risk:
- Credit risk;
- Liquidity risk;
- Market risk.

Detailed information on the risks listed is provided in the GPW Group's Annual Report for 2022, Note 2.7. Supplementary information is presented below.

Risk of provision of the WIBID and WIBOR Reference Rates

The Polish Financial Supervision Authority unanimously authorised GPW Benchmark S.A. on 16 December 2020 as an administrator of interest-rate benchmarks including critical benchmarks.

The benchmarks provided by GPW Benchmark S.A. include the Warsaw Interbank Offered Rate (WIBOR), entered into the critical benchmark register referred to in Article 20(1) of Regulation (EU) 2021/1011 of the European Parliament and of the Council of 10 February 2021 (BMR). The authorisation allows GPW Benchmark S.A. to provide other interest-rate benchmarks in accordance with the BMR requirements.

On 25 April 2022, the Prime Minister announced the government's plans to support borrowers, including replacing the WIBOR index with another index. Consequently, the Act on Crowdfunding of Business Projects and Borrower Assistance, which came into force on 29 July 2022, among others provides for the procedure of introduction of a replacement for the WIBOR index enabling the application of Article 23c of the BMR. On 18 May 2022, GPW Benchmark started publishing three test indices: WIRON (previous name: WIRD), WIRF, WRR. On 27 September 2022, the Steering Committee of the National Working Group on Reference Index Reform approved the Roadmap for the replacement of the WIBOR and WIBID benchmarks with WIRON, which is an index provided by GPW Benchmark. The calculation method of the WIRON index is the same as the WIRD index.

The key risks to a benchmark administrator include loss of representativeness required under the BMR, i.e., the ability of the benchmarks to represent accurately and reliably the market or economic reality that the benchmark is intended to measure. The Polish Financial Supervision Authority has carried out an assessment of representativeness and concluded in its communication of 29 June 2023 that the critical interest-rate benchmark WIBOR has the ability to measure the market and economic reality that it is intended to measure. According to the PFSA assessment, the WIBOR benchmark responds appropriately to changing liquidity conditions, changes in central bank rates and the economic reality.

As a result of the Administrator's own analyses conducted as part of the Cyclical Review of the WIBID and WIBOR Reference Rate Method, including the Data Waterfall Method, which concluded that the use of WIBOR for Fixing Term 1Y is limited, and the PFSA position in this regard, the Administrator conducted a public consultation on the safe cessation of the provision of the Reference Rates for Fixing Term 1Y. The results of the consultation will be published on the Administrator's website within 4 weeks of the end of the public consultation.

The Roadmap for the Replacement of the WIBOR and WIBID Reference Rates with the WIRON Index is a set of measures necessary to ensure the safe and effective transition of the WIBID and WIBOR Reference Rates, including above all the WIBOR Benchmark, to a new risk-free rate (RFR) index. For 2025, the Roadmap provides: "In line with the National Working Group's Roadmap, readiness is expected for the cessation of the calculation and publication of the WIBID and WIBOR Reference Rates."

Risk of provision of the WIRON index

GPW Benchmark, which is an administrator of interest-rate benchmarks under an authorisation granted by the Polish Financial Supervision Authority and registered with the European Securities and Markets Authority (ESMA) in accordance with the BMR, published on 1 December 2022 the documentation of the WIRON (Warsaw Interest Rate Overnight) and the WIRON Compound Indices Family required by the BMR.

GPW Benchmark has thus met a milestone under the 2023 Roadmap for the replacement of the WIBOR and WIBID benchmarks with WIRON: "the WIRON benchmark is fully available and can be used in financial products and instruments by entities that are willing to use it." The WIRON benchmark is available for use as a benchmark by supervised entities in financial contracts, financial instruments and investment funds.

In 2022, in addition to the WIRON benchmark, GPW Benchmark developed and implemented the WIRON compound rates for 1M, 3M and 6M and the WIRON Fixed-Base Index. The WRR is planned to be provided as an interest-rate benchmark that can be used as an alternative benchmark to WIRON, based on O/N repo and buy-sell-back transactions, as well as the WRR Compound Rate and WRR Single-Base benchmarks.

The Polish Financial Supervision Authority announced on 13 February 2023 that WIRON had become an interest-rate benchmark as WIRON was introduced as a component of success fees (variable fees) in the first investment funds.

The risks that the administrator identifies include the occurrence of unforeseen circumstances and factors, i.e., external events beyond the administrator's control, which may result in a permanent disruption of the market being measured, i.e., a permanent absence of transactions as inputs for the determination of WIRON and the consequent need to permanently apply the established substitute procedure until the method is modified in agreement with the Oversight Committee of Reference Interest Rates and after public consultation. In addition, the administrator identifies potential limitations to the reliability of the measurement of the market that WIRON is intended to measure when input data sources are insufficient, inaccurate or unreliable.

Reputation risk relating to GPW Benchmark

In the context of litigation between borrowers and lenders in connection with the increase of the WIBOR benchmark, attempts have been made to challenge the WIBOR benchmark as being inconsistent with the BMR. It should be noted that in the course of the proceedings for the authorisation of GPW Benchmark SA to operate as a benchmark administrator, the Polish Financial Supervision Authority verified and assessed the WIBOR benchmark method and found it to be in compliance with BMR, which was a requirement for granting the authorisation.

The PFSA granted the authorisation on 16 December 2020.

The PFSA exercises day-to-day supervision over the activities of GPW Benchmark in relation to the WIBOR method. In their communications issued on 6 and 9 December 2022 https://www.knf.gov.pl/komunikacja/komunikaty?articleId=80486&p\_id=18 and https://www.nbp.pl/nadzormakroostroznosciowy/komunikaty/20221209.aspx, the Polish Financial Supervision Authority and the Financial Stability Committee stressed the full compliance of WIBOR with the BMR and the absence of any grounds to challenge the WIBOR benchmark.

Furthermore, the Polish Financial Supervision Authority has carried out an assessment of the ability of the WIBOR interest-rate benchmark to measure the market and economic reality and concluded in its communication of 29 June 20233 that the critical interest-rate benchmark WIBOR has the ability to measure the market and economic reality that it is intended to measure. According to the PFSA assessment, the WIBOR benchmark responds appropriately to changing liquidity conditions, changes in central bank rates and the economic reality.

Risk of industrial dispute

The majority of the Company's employees are members of the Trade Union of Stock Exchange Employees, the only trade union organisation active at GPW since 2005. The trade union has the power to coordinate and consult on activities (including those concerning the Company's restructuring) of an opinion-making nature. On 1 June 2023, a collective dispute arose between GPW and the Trade Union of Stock Exchange Employees. The dispute arose as a result of the refusal to meet the Union's demands regarding the additional inflation-related benefit. On 12 October 2023, an agreement was reached to end the industrial dispute with

³ https://www.knf.gov.pl/knf/pl/komponenty/img/KNF_przeprowadzila_ocene_zdolnosci_wskaznika_referencyjnego_stopy_procentowej_WIBOR_do_ pomiaru_rynku_oraz_realiow_gospodarczych_82923.pdf

the Exchange Employees' Trade Union, under which GPW will pay employees a one-off inflation benefit totalling approximately PLN 2.7 million gross.

Risk related to amendments of national laws and regulations

The Group operates primarily in Poland. The Polish legal system and regulatory environment can be subject to significant unanticipated changes and its laws and regulations may be subject to conflicting official interpretations. The capital market and the commodity market are widely subject to government regulation and may be subject to increasingly strict supervision. Regulatory change may affect the Group as well as existing and prospective customers of its services. For instance, regulatory changes may affect the attractiveness of listing or trading on the markets organised and operated by the Group or the attractiveness of services provided by the Group. Such changes could also encourage companies listed on GPW to transfer to other markets which offer competitive listing costs or more flexible listing or corporate governance requirements.

The Act of 16 August 2023 amending certain acts in connection with ensuring the development of the financial market and the protection of investors in the market provides (in certain cases) for the sanction of invalidity for transactions in shares of alternative investment companies (ASI), thus imposing a partial restriction on the transferability of such shares. According to the Exchange Rules and the Alternative Trading System Rules, one condition for the admission of a company's shares to trading is that there are no restrictions on their transferability. This legal situation generates a risk, which is difficult to estimate, that some transactions concluded on the GPW markets in shares of ASIs will be deemed invalid as of 29 September 2023. This could have further negative consequences for the interests of exchange investors participating in trading in such shares after this date, and it could pose a threat to the safety of exchange trading. Following a detailed analysis of the amendments to the provisions of the Investment Fund Act and an assessment of the potential risks arising from these amendments to the safety of exchange trading and the interests of its participants, and after consultation with external advisors, the Exchange decided on 27 September 2023 to suspend trading in the shares of nine ASIs from 29 September 2023 until the legal risks have ceased.

Risk of EU and national legislative bodies establishing a legal and organisational framework unfavourable to the TGE Group in the area of international spot electricity trade, including amendments to the CACM Regulation and the EMD

Establishment by (international or local) legislative bodies of an unfavourable legal and organisational framework governing the operations of and cooperation between Exchanges (NEMOs) and Clearing Houses. TGE's strategy and business performance in the electricity spot market may be affected by the proposed amendment to the CACM 2.0 regulation published by ACER in December 2021 and the Electricity Market Design project amending among others Regulation 943/2019 governing the obligations of NEMOs and related entities in respect of operated markets. These legislative changes may affect the competitiveness of TGE in the electricity market.

Climate risk related to the impact of extreme weather events

An increased frequency and severity of extreme weather events can disrupt logistics processes and may affect IT infrastructure. In 2022, climate risk was assessed at GPW as part of the operational risk selfassessment. In addition, the occurrence of weather anomalies regarding ambient temperature levels may result in increased costs related to the adaptation and operation of office infrastructure (e.g., costs of increased air conditioning consumption). It may also affect the well-being of employees.

The analysis carried out showed that GPW is only marginally exposed to the direct impact of climate risk.

Risks related to the requirements of financial and market institutions for climate and environmental protection and non-financial disclosures

As a result of dynamic regulatory changes at national and EU level with regard to corporate sustainability, including climate and environmental protection, the Group may be under increasing pressure from financial and market institutions and stakeholders to adapt more intensively and in a more complex manner to the rising expectations of such institutions. New and planned regulations related to the environmental and climate transition under the European Green Deal entail the need for the Group to continuously analyse regulatory changes, to adapt to the new requirements, including the disclosure of an increasing range of non-financial information, and to undertake decarbonisation efforts, including the extension of certain sustainability policies to entities along the value chain. Failure to ensure legal compliance may result in administrative fines imposed by supervisory authorities and reputational damage to Group companies.

This risk may also be associated with increased costs in the future resulting from the transition to a zero-carbon and low-energy economy.

In addition, if products and services are not adapted to changing trends and the needs/expectations of participants of the GPW Group's markets, this could potentially affect the turnover and liquidity on the markets operated by the GPW Group and, consequently, impair the competitiveness of the business.

The analysis carried out showed that GPW is only marginally exposed to the above-mentioned risks.

Risks of the geopolitical and economic situation globally

The Group's business depends on conditions on the global financial markets. Economic trends in the global economy, especially in Europe and the USA, as well as the geopolitical situation in neighbouring countries, especially the risk of persistent inflation and the risk of recession, impact investors' perception of risks and their activity on financial and commodity markets, which may result in a shift towards safer investments and, consequently, a reduction of financial instrument trading volumes on GPW. The perception of investment risk will also be affected by the war in Ukraine, which will certainly result in the collapse of the Ukrainian economy and have a negative impact on economic development in Europe, including Poland. Sanctions imposed on Russia will, on the one hand, drive up the prices of energy commodities and, on the other hand, exacerbate problems in the supply chains, which will probably boost inflation. Moreover, there is a risk of retaliatory sanctions by the Russian Federation, which will result in losses for Polish companies with exposure to Russia and Belarus. Given the possible scenarios for further development of the conflict, investment risk aversion towards CEE assets is likely to increase. The perception of investment risk in European economies may also be affected, among others, by an economic slowdown or crisis in Europe or unexpected economic crises in other parts of the world, especially caused by difficulties of some countries in servicing their debt, which may have an adverse impact on the Group's results. In addition, the current conflict in the Gaza Strip, which may lead to destabilisation of the situation on global markets and increased volatility and thus increased risk aversion of international investors, may indirectly cause the flight of foreign capital from the Polish stock exchange in order to reduce investment risk exposure. As global investors evaluate geographic regions from the perspective of potential investment, their perception of Poland and GPW may decline in spite of a relatively stronger macroeconomic situation compared to other countries of the region. Less active trading by international investors on the markets operated by the Group could make the markets less attractive to other participants and reduce the amount of charged trading fees, which are the main source of the Group's revenue. Combined with a stable cost level, this could reduce the GPW Group's profit.

Risk of the acquisition of the Armenia Securities Exchange by GPW

Following the fulfilment of formal conditions, the Warsaw Stock Exchange acquired 65.03% of the shares of the Armenia Securities Exchange (AMX) from the Central Bank of Armenia (CBoA). In addition, GPW indirectly took control of the Central Securities Depository of Armenia (CDA), in which AMX holds 100 percent of the share capital. The current difficult humanitarian situation related to the influx of refugees from Nagorno-Karabakh and the risk of a reconfiguration of the geopolitical system in the region (increasing pressure to open the Zangezur corridor which would connect the two parts of Azerbaijan through the territory of Armenia) may have a negative impact on economic growth of the country, consequently leading to weaker conditions on the capital market. Furthermore, the geographical distance between the companies' headquarters may generate potential risks for the integration of AMX into GPW, hindering the rebuilding of Armenia's capital market with our joint efforts and delaying the expansion of our activities in the region. As GPW and AMX (a non-EU entity) operate in different legal regimes, there are increased legal and compliance risks. An additional risk is the limited access to local human resources with the appropriate level of knowledge and professional experience in capital and financial markets.

4. Financial position and assets 4.1. Summary of the GPW Group's results

The GPW Group generated a consolidated net profit of PLN 112.6 million in 9M 2023 (+PLN 5.3 million i.e. +5.0% year on year), driven by an increase of sales revenue to PLN 329.0 million (+PLN 31.3 million i.e. +10.5%) and an increase of financial income to PLN 23.0 million (+PLN 5.0 million i.e. +28.1%) combined with an increase of operating expenses to PLN 235.8 million (+45.1 million i.e. +23.7%) and a reduction of financial expenses (-PLN 0.6 million i.e. -9.2%). The operating profit stood at PLN 94.8 million (-PLN 3.9 million i.e. -4.0% year on year). EBITDA stood at PLN 118.5 million (-PLN 8.1 million i.e. -6.4% year on year).

One-off (and cyclical) events impacting the GPW Group's results in 9M 2023 included:

an increase in interest on bank deposits and financial instruments (corporate bonds, bank deposits) to PLN 21.1 million as a result of NBP's interest rate decisions;
the cost of the capital market supervision fee at PLN 15.5 million.

Table 4: Consolidated statement of comprehensive income

PLN'000, %	Nine months period ended 30 September (unaudited)		Change (2023 vs 2022)	Growth rate (%) (2023 vs
	2023	2022		2022)
Sales revenue	329,023	297,757	31,266	10.5%
Operating expenses	(235,826)	(190,684)	(45,142)	23.7%
Other revenue, other (expenses), gains on reversal of impairment of receivables/(losses) on impairment of receivables	1,630	(8,339)	9,969	(119.5%)
Operating profit	94,827	98,734	(3,907)	(4.0%)
Financial income	22,966	17,928	5,038	28.1%
Financial expenses	(5,747)	(6,328)	581	(9.2%)
Share of profit of entities measured by the equity method	23,770	20,702	3,068	14.8%
Profit before tax	135,816	131,036	4,780	3.6%
Income tax expense	(23,228)	(23,774)	546	(2.3%)
Net profit for the period	112,588	107,262	5,326	5.0%

The separate net profit of GPW in 9M 2023 stood at PLN 102.4 million (+PLN 11.3 million i.e. +12.4% year on year). The Company reported a decrease of sales revenue (-PLN 10.6 million i.e. -5.5%) and an increase of financial income (+PLN 23.7 million i.e. +49.2%) combined with an increase in operating expenses (+PLN 12.7 million i.e. +9.9%) and a decrease in financial expenses (-PLN 3.2 million i.e. -87.2%). The higher financial income was mainly due to higher dividends from subsidiaries. EBIDTA stood at PLN 55.5 million (-PLN 23.8 million i.e. -30.0% year on year).

The net profit of TGE in 9M 2023 increased year on year and stood at PLN 52.6 million (+PLN 2.8 million i.e. +5.7% year on year). EBITDA stood at PLN 36.4 million (+PLN 2.9 million i.e. +8.7% year on year).

The net profit of IRGiT in 9M 2023 was PLN 16.9 million (+PLN 2.2 million i.e. +14.7% year on year). EBITDA stood at PLN 21.6 million (+PLN 0.8 million i.e. +3.6% year on year).

Table 5: Selected consolidated financial indicators

	As at/Nine months period ended 30 September (unaudited)
	2023	2022
Debt and financing ratios of the Group
Net debt / EBITDA for 12 months	(2.5)	(2.4)
Debt to equity	1.0%	14.3%
Liquidity ratios
Current liquidity	4.0	2.4
Coverage ratio of interest rate on bond issue	-	37.6
Profitability ratios
EBITDA margin	36.0%	42.5%
Operating profit margin	28.8%	33.2%
Net profit margin	34.2%	36.0%
Cost / income	71.7%	64.0%
ROE	15.3%	15.8%
ROA	12.1%	11.4%

Net debt = interest-bearing liabilities less liquid assets (as at the balance-sheet date) Liquid assets = financial assets measured at amortised cost and other financial assets + cash and cash equivalents

EBITDA = GPW Group operating profit plus depreciation/amortisation (for 9 months, net of the share of profit/loss of associates)

Debt to equity ratio = interest-bearing liabilities / equity (as at the balance-sheet date)

Current liquidity = current assets / current liabilities (as at the balance-sheet date)

Coverage ratio of interest costs on the bond issue = EBITDA / interest cost on bonds (interest paid and accrued for a 9-month period)

EBITDA margin = EBITDA / GPW Group sales revenue (for a 9-month period)

Operating profit margin = operating profit / GPW Group sales revenue (for a 9-month period)

Net profit margin = net profit / GPW Group sales revenue (for a 9-month period)

Cost / income = GPW Group operating expenses / GPW Group sales revenue (for a 9-month period)

ROE = GPW Group net profit (for a 12-month period) / average equity at the beginning and at the end of the 12-month period

ROA = GPW Group net profit (for a 12-month period) / average total assets at the beginning and at the end of the 12-month period

Net debt to EBITDA was negative as at 30 September 2023 as liquid assets significantly exceeded interestbearing liabilities. The debt to equity ratio remained stable year on year.

Current liquidity increased year on year as current liabilities decreased significantly in relation to change in current assets.

The EBITDA margin decreased year on year due to an increase of operating expenses by 23.7%. The operating profit margin and the net profit margin decreased year on year as a result of a decrease of the Group's operating profit year on year. The cost/income ratio increased year on year as a result of rising expenses (mainly including external service charges and employee costs).

ROE decreased modestly year on year while ROA increased as a result of a decrease in assets year on year.

4.2. Consolidated statement of comprehensive income

4.2.1. Sales revenue – summary

The GPW Group's sales revenue in 9M 2023 increased year on year and stood at PLN 329.0 million (+PLN 31.3 million i.e. +10.5% year on year). The increase in revenue was mainly generated by new business segments: stock exchange operations in Armenia (PLN 17.2 million) and logistics services (PLN 12.3 million). The Group's sales revenue from the financial market in 9M 2023 amounted to PLN 198.1 million (+PLN 7.8 million i.e. +4.1%). The commodity market segment's revenue in 9M 2023 increased year on year (+PLN 11.5 million i.e. +11.0%).

Figure 1: Structure and value of consolidated sales revenue in 9M 2023

The main revenue streams included trading on the financial market (36.4%), trading on the commodity market (18.8%), and information services and revenues from the calculation of reference rates on the financial market (13.3%). The share of those revenue streams in 9M 2022 was 43.8%, 17.6%, and 14.3%, respectively.

The share of sales revenue from foreign clients in total sales revenue in 9M 2023 increased to 37.2% of total sales. The trend of increasing share of remote Exchange Members in trading on the cash and derivatives market has continued for several years and, consequently, the share of these entities in the GPW Group's revenue mix has increased.

The Group's sales revenue shows no concentration: the share of single clients in total sales revenue did not exceed 10% in 9M 2023.

4.2.2. Sales revenue – financial market

The Group's sales revenue on the financial market in 9M 2023 stood at PLN 198.1 million (+PLN 7.8 million i.e. +4.1% year on year), representing 60.2% of total sales revenue. The biggest stream of sales revenue on the financial market was trading revenue (60.5%), in particular trading in equities and equity-related instruments (43.6%). The second biggest stream of consolidated sales revenue on the financial market were information services and revenues from the calculation of reference rates (22.1% of total revenue on the financial market).

Table 6: Revenue on the financial market

	Nine months period ended 30 September (unaudited)				Change (2023 vs	Growth rate (%)
PLN'000, %	2023	%	2022	%	2022)	(2023 vs 2022)
Financial market	198,097	100.0%	190,335	100%	7,762	4.1%
Trading revenue	119,799	60.5%	130,297	68.5%	(10,498)	(8.1%)
Equities and equity-related instruments	86,445	43.6%	96,740	50.8%	(10,295)	(10.6%)
Derivatives	14,396	7.3%	15,812	8.3%	(1,416)	(9.0%)
Other fees paid by market participants	8,500	4.3%	7,365	3.9%	1,135	15.4%
Debt instruments	9,917	5.0%	8,476	4.5%	1,441	17.0%
Other cash instruments	541	0.3%	1,904	1.0%	(1,363)	(71.6%)
Listing revenue	17,310	8.7%	17,412	9.1%	(102)	(0.6%)
Listing fees	14,241	7.2%	14,583	7.7%	(342)	(2.3%)
Fees for introduction and other fees	3,069	1.5%	2,829	1.5%	240	8.5%
Information services and revenue from the calculation of reference rates	43,781	22.1%	42,626	22.4%	1,155	2.7%
Real-time data and revenue from the calculation of reference rates	41,334	20.9%	40,121	21.1%	1,213	3.0%
Historical and statistical data and indices	2,447	1.2%	2,505	1.3%	(58)	(2.3%)
Armenia Securities Exchange	17,207	8.7%	-	-	17,207	-
Exchange operations	2,795	1.4%	-	-	2,795	-
Depository operations	14,412	7.3%	-	-	14,412	-

The Group's revenue from trading in equities and equity-related instruments stood at PLN 86.4 million in 9M 2023 (-PLN 10.3 million i.e. -10.6% year on year). Revenue fell on both the Main Market and on NewConnect. Turnover on the Main Market decreased year on year and stood at PLN 201.6 billion (-PLN 27.6 billion i.e. -12.0%), and turnover on NewConnect decreased to PLN 1.7 billion (-PLN 0.4 billion i.e. -19.0%). In the period under review, the electronic order book turnover value on the Main Market decreased by 12.9% year on year (to PLN 195.9 billion) while the value of block trades increased by 32.3% year on year (to PLN 5.7 billion). The average daily EOB turnover value in equities on the Main Market increased year on year and stood at PLN 948.0 million in 9M 2023 compared to PLN 921.7 million in 9M 2022.

Table 7: Data for the markets in equities and equity-related instruments

	Nine months period ended 30 September (unaudited)		Change (2023 vs	Growth rate (%) (2023 vs
	2023	2022	2022)	2022)
Financial market, trading revenue: equities and equity-related instruments (PLN mn)	86.4	96.7	(10.3)	(10.6%)
Main Market:
Turnover value - total (PLN bn)	201.6	229.2	(27.6)	(12.0%)
Value of trading - Electronic Order Book (PLN bn)	195.9	224.9	(29.0)	(12.9%)
Value of trading - block trades (PLN bn)	5.7	4.3	1.4	32.3%
Turnover volume (bn shares)	7.4	9.8	(2.4)	(24.7%)
NewConnect:
Turnover value - total (PLN bn)	1.7	2.1	(0.4)	(19.0%)
Value of trading - Electronic Order Book (PLN bn)	1.6	2.0	(0.4)	(19.6%)
Value of trading - block trades (PLN bn)	0.1	0.1	(0.0)	(2.0%)
Turnover volume (bn shares)	2.0	1.9	0.1	6.0%

Revenue of the Group from trading in derivatives on the financial market (futures and options) stood at PLN 14.4 million in 9M 2023 (-PLN 1.4 million i.e. -9.0% year on year). The total volume of turnover in derivatives amounted to 10.6 million contracts, showing a year-on-year decrease (-0.8 million contracts i.e. -7.1%). The volume of turnover in WIG20 futures decreased by 8.5% year on year (6.3 million contracts in 9M 2023 vs. 6.9 million contracts in 9M 2022).

Table 8: Data for the derivatives market

	Nine months period ended 30 September (unaudited)		Change (2023 vs	Growth rate (%)
	2023	2022	2022)	(2023 vs 2022)
Financial market, trading revenue: derivatives (PLN mn)	14.4	15.8	(1.4)	(9.0%)
Derivatives turnover volume (mn instruments), incl.:	10.6	11.4	(0.8)	(7.1%)
- WIG20 futures turnover volume (mn futures)	6.3	6.9	(0.6)	(8.5%)

Revenue of the Group from other fees paid by market participants stood at PLN 8.5 million (+PLN 1.1 million i.e. +15.4% year on year). The fees mainly included fees for access to and use of the trading system (among others, licence fees, connection fees, and maintenance fees).

Revenue of the Group from trading in debt instruments stood at PLN 9.9 million in 9M 2023, an increase of PLN 1.4 million year on year. The revenue on Treasury BondSpot Poland ("TBSP") stood at PLN 9.3 million (+PLN 1.8 million i.e. +23.8%). The value of turnover in Polish Treasury securities on TBSP was PLN 329.0 billion (+PLN 10.8 billion i.e. +3.4% year on year). The conditional transaction segment reported a decrease of the value of transactions. The value of conditional transactions stood at PLN 232.2 billion (-PLN 31.8 billion i.e. -12.1% year on year) while the value of cash transactions stood at PLN 96.8 billion (+PLN 42.7 billion i.e. +78.8% year on year).

The value of turnover on Catalyst stood at PLN 4.3 billion (-PLN 2.4 billion i.e. -36.3% year on year), including turnover in non-Treasury instruments at PLN 1.6 billion compared to PLN 1.9 billion in 9M 2022.

Table 9: Data for the debt instruments market

	Nine months period ended 30 September (unaudited)		Change (2023 vs 2022)	Growth rate (%) (2023 vs
	2023	2022		2022)
Financial market, trading revenue: debt instruments (PLN mn)	9.9	8.5	1.4	17.0%
Catalyst, turnover value, incl.:	4.3	6.7	(2.4)	(36.3%)
Non-Treasury instruments (PLN bn)	1.6	1.9	(0.4)	(18.4%)
Treasury BondSpot Poland, turnover value:
Conditional transactions (PLN bn)	232.2	264.1	(31.8)	(12.1%)
Cash transactions (PLN bn)	96.8	54.1	42.7	78.8%

The Group's revenue from trading in other cash market instruments stood at PLN 0.5 million, representing a decrease of PLN 1.4 million year on year. The revenue includes fees for trading in structured products, investment certificates, ETF units, and warrants.

The Group's listing revenue on the financial market stood at PLN 17.3 million in 9M 2023 (-PLN 0.1 million i.e. -0.6% year on year) and included:

revenue from listing fees, which stood at PLN 14.2 million (-PLN 0.3 million i.e. -2.3%). The main driver of revenue from listing fees is the number of issuers listed on the GPW markets and their capitalisation at previous year's end;

revenue from fees for introduction and other fees, which increased to PLN 3.1 million (+PLN 0.2 million i.e. +8.5% year on year). The revenue remains low due to a low number of IPOs (IPOs on the Main Market of 7 companies with a capitalisation of PLN 1.9 billion in 9M 2023 compared to IPOs of 6 companies with a capitalisation of PLN 1.1 billion in 9M 2022).

Table 10: Listing revenue on the Main Market

	Nine months period ended 30 September (unaudited) 2023 2022		Change (2023 vs 2022)	Growth rate (%) (2023 vs 2022)

Main Market
Listing revenue (PLN mn)	13.7	14.0	(0.3)	(2.3%)
Total capitalisation of listed companies (PLN bn), incl.:	1,319.0	963.3	355.7	36.9%
- Capitalisation of listed domestic companies	631.0	465.7	165.3	35.5%
- Capitalisation of listed foreign companies	688.0	497.6	190.4	38.3%
Total number of listed companies, incl.:	412	419	(7)	(1.7%)
- Number of listed domestic companies	369	374	(5)	(1.3%)
- Number of listed foreign companies	43	45	(2)	(4.4%)
Value of IPOs and SPOs (PLN bn)	1.8	7.3	(5.5)	(75.5%)
Number of newly listed companies (in the period)	7	6	1	16.7%
Capitalisation of newly listed companies (PLN bn)	1.9	1.1	0.8	69.8%
Number of delisted companies	10	17	(7)	(41.2%)
Capitalisation of delisted companies* (PLN bn)	7.0	19.3	(12.3)	(63.7%)

*capitalisation as at delisting

Listing revenue on the GPW Main Market decreased to PLN 13.7 million in 9M 2023 (-PLN 0.3 million i.e. -2.3% year on year). The table above presents the key financial and operating figures for the Main Market.

The value of IPOs on the Main Market was PLN 40 million in 9M 2023 and PLN 40 million in 9M 2022. The value of SPOs decreased from PLN 7.2 billion in 9M 2022 to PLN 1.7 billion in 9M 2023. Seven companies were newly listed on the Main Market and 10 companies were delisted. The capitalisation of the companies delisted on the Main Market was PLN 7.0 billion.

Table 11: Listing revenue on NewConnect

	Nine months period ended 30 September (unaudited)		Change (2023 vs	Growth rate (%) (2023 vs
	2023 2022		2022)	2022)
NewConnect
Listing revenue (PLN mn)	1.8	2.0	(0.2)	(7.7%)
Total capitalisation of listed companies (PLN bn), incl.:	13.2	14.7	(1.6)	(10.6%)
- Capitalisation of listed domestic companies	13.1	14.6	(1.5)	(10.0%)
- Capitalisation of listed foreign companies	0.1	0.1	(0.0)	(4.4%)
Total number of listed companies, incl.:	360	376	(16)	(4.3%)
- Number of listed domestic companies	356	372	(16)	(4.3%)
- Number of listed foreign companies	4	4	-	-
Value of IPOs and SPOs (PLN bn)	0.2	0.3	(0.1)	(36.3%)
Number of newly listed companies (in the period)	9	10	(1)	(10.0%)
Capitalisation of newly listed companies (PLN bn)	0.4	0.3	0.1	18.5%
Number of delisted companies*	28	14	14	100.0%
Capitalisation of delisted companies, (PLN bn) **	2.4	1.5	0.9	56.0%

* including transfers to the Main Market

** capitalisation as at delisting

Listing revenue on NewConnect decreased modestly to PLN 1.8 million (-PLN 0.2 million i.e. -7.7% year on year).

The value of IPOs on NewConnect was PLN 26 million (-PLN 44 million year on year) while the value of SPOs decreased from PLN 193 million in 9M 2022 to PLN 142 million in 9M 2023. Nine companies were newly listed and 28 companies were delisted in 9M 2023. The capitalisation of the companies delisted on NewConnect was PLN 2.4 billion.

Table 12: Listing revenue on Catalyst

	Nine months period ended 30 September (unaudited)		Change (2023 vs	Growth rate (%) (2023 vs 2022)
	2023	2022	2022)
Catalyst
Listing revenue (PLN mn)	1.8	1.4	0.4	25.7%
Number of issuers	131	133	(2)	(1.5%)
Number of listed instruments, incl.:	612	565	47	8.3%
- non-Treasury instruments	550	503	47	9.3%
Value of listed instruments (PLN bn), incl.:	1,241.3	1,153.2	88.2	7.6%
- non-Treasury instruments	105.9	95.4	10.5	11.0%

Listing revenue on Catalyst stood at PLN 1.8 million (+PLN 0.4 million i.e. +25.7% year on year) while the number of issuers increased modestly year on year and the value of issued instruments increased (+PLN 88.2 billion i.e. +7.6% year on year).

Revenue from information services and calculation of reference rates on the financial market and the commodity market in aggregate stood at PLN 45.0 million (+PLN 1.4 million i.e. +3.3% year on year).

Table 13: Data for information services

	Nine months period ended 30 September (unaudited)		Change (2023	Growth rate (%) (2023 vs 2022)
	2023	2022	vs 2022)
Information services and revenue from the calculation of reference rates* (PLN mn)	45.0	43.6	1.4	3.3%
Number of data vendors	99	95	4	4.2%
Number of subscribers (thou.)	586.2	522.5**	63.7	12.2%

*Revenue from information services includes the financial market and the commodity market.

** Restated

The year-on-year increase of revenue was driven by the following factors:

acquisition of new clients of GPW Group data (mainly non-display users and data vendors);
increase in the number of subscribers (up by 63,700 year on year in 9M 2023).

GPW Benchmark made a contribution to the increase of the revenue from information services and calculation of reference rates: it generated revenue from the calculation of reference rates at PLN 10.2 million in 9M 2023 (+PLN 2.3 million i.e. +28.3% year on year).

The presented data for the financial market include the revenue of the Armenia Securities Exchange. This is the first year of its operations within the GPW Group. The Armenia Securities Exchange generated revenue of PLN 17.2 million, with exchange operations generating PLN 2.8 million and depository operations PLN 14.4 million.

4.2.3. Sales revenue – commodity market

Revenue of the Group on the commodity market stood at PLN 116.7 million in 9M 2023 (+PLN 11.5 million i.e. +11.0% year on year) accounting for 35.5% of the Group's total sales revenue. It included trading revenue (electricity, gas, property rights in certificates of origin, food and agricultural products, other fees paid by market participants), revenue from the operation of the Register of Certificates of Origin, revenue from clearing, and revenue from information services.

	Nine months period ended 30 September (unaudited)	Change (2023 vs	Growth rate (%)
PLN'000, %	2023	%	2022	%	2022)	(2023 vs 2022)
Commodity market	116,673	100.0%	105,157	100.0%	11,516	11.0%
Trading revenue	61,773	52.9%	52,349	49.8%	9,424	18.0%
Transactions in electricity:	20,261	17.4%	10,611	10.1%	9,650	90.9%
- Spot	12,153	10.4%	3,607	3.4%	8,546	236.9%
- Forward	8,108	6.9%	7,004	6.7%	1,104	15.8%
Transactions in gas:	9,944	8.5%	7,929	7.5%	2,015	25.4%
- Spot	1,239	1.1%	1,436	1.4%	(197)	(13.7%)
- Forward	8,705	7.5%	6,493	6.2%	2,212	34.1%
Transactions in property rights to certificates of origin	16,066	13.8%	19,328	18.4%	(3,262)	(16.9%)
Trade in food and agricultural products	-	-	6	0.0%	(6)	(100.0%)
Other fees paid by market participants	15,502	13.3%	14,475	13.8%	1,027	7.1%
Operation of the register of certificates of origin	18,173	15.6%	20,155	19.2%	(1,982)	(9.8%)
Clearing	35,489	30.4%	31,697	30.1%	3,792	12.0%
Information services	1,238	1.1%	956	0.9%	282	29.5%

Table 14: Value and structure of revenue on the commodity market

Revenue on the commodity market includes the revenue of the TGE Group which includes TGE, Izba Rozliczeniowa Giełd Towarowych S.A. ("IRGiT"), and InfoEngine S.A. ("InfoEngine").

Revenue of the TGE Group is driven mainly by the volume of turnover in electricity, natural gas, and property rights; the volume of certificates of origin issued and cancelled by members of the Register of Certificates of Origin; and revenue from clearing and settlement of transactions in exchange-traded commodities in clearing operated by IRGiT.

The Group's trading revenue on the commodity market stood at PLN 61.8 million in 9M 2023 (+PLN 9.4 million i.e. +18.0% year on year).

Table 15: Trading revenue on the commodity market

`	Nine months period ended 30 September (unaudited)		Change (2023 vs	Growth rate (%) (2023 vs
	2023	2022	2022)
Commodity market, trading revenue (PLN mn)	61.8	52.3	9.4	18.0%
Electricity turnover volume:
- Spot transactions (TWh)	45.5	24.3	21.2	87.2%
- Forward transactions (TWh)	59.6	89.9	(30.3)	(33.7%)
Gas turnover volume:
- Spot transactions (TWh)	12.2	14.3	(2.0)	(14.4%)
- Forward transactions (TWh)	81.6	83.9	(2.3)	(2.8%)
Turnover volume in property rights (TGE) (TWh)
- Spot transactions (TWh)	16.0	19.8	(3.8)	(19.2%)
- Spot transactions (toe)	85,006.1	72,590.1	12,415.9	17.1%

The Group's revenue from trading in electricity stood at PLN 20.3 million in 9M 2023 (+PLN 9.7 million i.e. +90.9%). The total volume of turnover on the energy market operated by TGE was 105.1 TWh in 9M 2023 (-9.1 TWh i.e. -8.0% year on year). The decrease in electricity turnover in 9M 2023 was mainly driven by a decrease of forward trade by 33.7% to 59.6 TWh. The turnover decreased mainly due to smaller turnover in one-year contracts following the abolition of the obligation to sell electricity on the exchange and uncertainties about market conditions. Spot market trading increased significantly, mainly as a result of the popularity of Day-Ahead Market block contracts. Despite the decrease in total trading volumes, revenues from trading in electricity increased by 90.9%, mainly due to changes in the fee schedules of both the Organised Trading Facility (OTF), effective from 1 January 2023, and the Exchange Commodity Market (RTG), effective from 16 February 2023.

The Group's revenue from trading in gas stood at PLN 9.9 million in 9M 2023 (+PLN 2.0 million i.e. +25.4% year on year). The volume of turnover in natural gas on TGE was 93.8 TWh in 9M 2023 (-4.4 TWh i.e. -4.5%). The decrease in the turnover volume on the gas market year on year was driven by a decrease of turnover on the spot market by 14.4% i.e. from 14.3 TWh to 12.2 TWh, due to higher temperatures compared to 9M 2022 as well as high contracted gas supplies under forward contracts. Turnover on the forward market decreased by 2.8% year in year to 81.6 TWh. Despite the decrease in total trading volumes in gas, total revenues from trading in gas increased by 25.4% due to changes in the fee schedule of the Organised Trading Facility effective from 1 January 2023.

The Group's revenue from trading in property rights in certificates of origin stood at PLN 16.1 million in 9M 2023 (-PLN 3.3 million i.e. -16.9% year on year). The volume of turnover in property rights in certificates of origin was 16.0 TWh in 9M 2023 (-3.8 TWh i.e. -19.2% year on year). The decrease was driven among others by the ongoing work at the Ministry of Climate and Environment regarding the level of the green certificate redemption obligation. The project aims to lower the obligation once again, which creates uncertainty in the market. The volume of turnover in rights in energy efficiency increased by 17.1% from 72,590 toe to 85,006 toe. The increase was driven by relatively high trading volumes made in Q1 and towards the end of the clearing period, as well as higher volumes of energy efficiency certificates issued between December 2022 and February 2023.

Revenue of the Group from other fees paid by commodity market participants stood at PLN 15.5 million in 9M 2023 (+PLN 1.0 million i.e. +7.1% year on year). Other fees paid by commodity market participants included fees paid by TGE market participants at PLN 8.8 million, revenue of InfoEngine as a trade operator at PLN 2.9 million, and revenue of IRGiT at PLN 3.8 million in 9M 2023. The year-on-year change of TGE's revenue in 9M 2023 is mainly due to changes in the activity of members in the various markets, as well as the expiration of the temporary fee reductions applicable in 2022.

Revenue from the operation of the Register of Certificates of Origin stood at PLN 18.2 million in 9M 2023 (-PLN 2.0 million i.e. -9.8% year on year). The decrease in revenue is related to the RES property rights segment, mainly due to significant declines in the volume of rights issued, as well as a reduction in the obligation to redeem and trade green certificates (affecting the fee for increasing the balance of property rights in the Register). The obligation to redeem green certificates was reduced from 18.5% in 2022 to 12%. Another major reduction is scheduled in 2024 to 5% of the volume of electricity sales to end users.

Nine months period ended 30 September (unaudited) Change (2023 vs 2022) Growth rate (%) (2023 vs 2023 2022 2022) Commodity market, revenue from the operation of the Register of Certificates of Origin in electricity (PLN mn) 18.2 20.2 (2.0) (9.8%) Issued property rights (TWh) 13.8 17.4 (3.7) (21.0%) Cancelled property rights (TWh) 19.0 19.1 (0.1) (0.4%)

Table 16: Data for the Register of Certificates of Origin

The Group earns revenue from clearing operated by IRGiT. The revenue was PLN 35.5 million in 9M 2023 (+PLN 3.8 million i.e. +12.0% year on year). The revenue from clearing of transactions in electricity stood at PLN 14.4 million, the revenue from clearing of transactions in gas stood at PLN 14.6 million, and the revenue from clearing of transactions in property rights stood at PLN 6.4 million.

4.2.4. Other sales revenue

The Group's other revenue stood at PLN 14.3 million in 9M 2023 and increased year on year (+PLN 12.0 million i.e. +529.3%). The key item of other revenue is the revenue generated by GPW Logistics at PLN 12.3 million. The Group's other revenue also includes revenue from educational and PR activities, office space lease, and sponsorship.

4.2.5. Operating expenses

Operating expenses stood at PLN 235.8 million in 9M 2023 (+PLN 45.1 million i.e. +23.7% year on year). Salaries, and external service charges increased substantially.

Figure 2: Structure and value of consolidated operating expenses

Table 17: Operating expenses

	Nine months period ended 30 September (unaudited)			Growth rate
PLN'000, %	2023	%	2022	%	Change (2023 vs 2022)	(%) (2023 vs 2022)
Depreciation and amortisation	23,711	10.1%	27,895	14.6%	(4,184)	(15.0%)
Salaries	82,340	34.9%	63,985	33.6%	18,355	28.7%
Other employee costs	22,929	9.7%	19,963	10.5%	2,966	14.9%
Maintenance fees	3,987	1.7%	3,859	2.0%	128	3.3%
Fees and charges, incl.	17,347	7.4%	17,469	9.2%	(122)	(0.7%)
PFSA fee	15,479	6.6%	14,765	7.7%	714	4.8%
External service charges	77,206	32.7%	52,623	27.6%	24,583	46.7%
Other operating expenses	8,306	3.5%	4,890	2.6%	3,416	69.9%
Total	235,826	100.0%	190,684	100.0%	45,142	23.7%

The capital market supervision fee due to the Polish Financial Supervision Authority in the amount of PLN 15.5 million was the only expense line relating to a single vendor and represented 6.6% of the Group's operating expenses in 9M 2023.

Depreciation and amortisation charges decreased year on year in 9M 2023 and stood at PLN 23.7 million (-PLN 4.2 million i.e. -15.0% year on year), including depreciation charges for property, plant and equipment at PLN 9.6 million, amortisation charges for intangible assets at PLN 9.4 million, and depreciation charges related to leases at PLN 4.7 million. The decrease in depreciation and amortisation charges was the result of a reduction in the value of licences held.

Salaries and other employee costs of the Group stood at PLN 105.3 million in 9M 2023 and increased year on year by +PLN 21.3 million i.e. +25.4%. The year-on-year increase in the Group's salaries was driven by a gradual increase of the headcount due to increased workload and additional FTEs related to the implementation of strategic projects and development projects, as well as a higher nominal amount of salaries of currently employed staff. Employee costs are also driven by costs incurred for design work carried out under civil law contracts.

Table 18: GPW Group FTEs

		As at 30 September (unaudited)
	2023	2022
GPW	291	273
Subsidiaries	282	184
Total	573	458

Maintenance fees stood at PLN 4.0 million in 9M 2023 and increased modestly year on year (+PLN 0.1 million i.e. +3.3%). Maintenance fees included mainly maintenance fees at the Centrum Giełdowe building.

Fees and charges stood at PLN 17.3 million in 9M 2023 (-PLN 0.1 million i.e. -0.7% year on year), including the PFSA capital market supervision fee in 2023 at PLN 15.5 million (+PLN 0.7 million i.e. +4.8% year on year). The PFSA fees increased the most for GPW (+PLN 0.8 million i.e. +10.1% year on year) and remained stable year on year for the other companies of the Group. The amount recognised in each financial year represents the annual fee, which is not evenly distributed in time. The Group cannot control the amount of PFSA fees.

External service charges stood at PLN 76.8 million (+PLN 24.1 million i.e. +45.9% year on year).

Table 19: External service charges

	Nine months period ended 30 September (unaudited)			Change (2023 vs	Growth rate (%)
PLN'000, %	2023	%	2022	%	2022)	(2023 vs 2022)
IT costs:	32,836	42.8%	26,753	50.8%	6,083	22.7%
IT infrastructure maintenance	27,676	36.1%	22,217	42.2%	5,459	24.6%
TBSP market maintenance services	1,236	1.6%	1,215	2.3%	21	1.7%
Data transmission lines	3,015	3.9%	2,748	5.2%	267	9.7%
Software modification	909	1.2%	573	1.1%	336	58.6%
Building and office equipment maintenance:	3,425	4.4%	3,032	5.8%	393	13.0%
Repair, maintenance, service	638	0.8%	627	1.2%	11	1.8%
Security	1,839	2.4%	1,541	2.9%	298	19.3%
Cleaning	716	0.9%	613	1.2%	103	16.8%
Phone and mobile phone services	232	0.3%	251	0.5%	(19)	(7.6%)
International (energy) market services	583	0.8%	1,359	2.6%	(776)	(57.1%)
Car leases and maintenance	235	0.3%	286	0.5%	(51)	(17.8%)
Promotion, education, market development	5,582	7.2%	5,174	9.8%	408	7.9%
Market liquidity support	713	0.9%	674	1.3%	39	5.8%
Advisory (including audit, legal, business consulting)	16,485	21.4%	8,606	16.4%	7,879	91.6%
Information services	2,519	3.3%	2,768	5.3%	(249)	(9.0%)
Training	577	0.7%	485	0.9%	92	19.0%
Office services	805	1.0%	1,565	3.0%	(760)	(48.6%)
Fees related to the calculation of indices	669	0.9%	-	0.0%	669	n/a
Other	12,777	16.6%	1,921	3.7%	10,856	565.1%
Total	77,206	116.5%	52,623	103.7%	24,583	46.7%

The year-on-year increase of external service charges in 9M 2023 was due to changes in the following cost categories:

IT infrastructure maintenance services an increase of +PLN 5.5 million (i.e. +24.6%), resulting from higher licence and maintenance fees;
advisory an increase of +PLN 7.9 million (i.e. +91.6%) due to a higher cost of GPW's advisory services in connection with ongoing projects, tax advisory, process management in the commodity segment, as well as the costs of developing the 2023-2027 strategy;
other external service charges an increase of PLN 10.9 million driven mainly by GPW Logistics' transport operations.

Other operating expenses stood at PLN 8.3 million in 9M 2023 (+PLN 3.4 million i.e. +69.9% year on year). They included mainly the cost of electricity and heat, membership fees, insurance, and business travel. Significant increase in the costs relate to the inclusion of AMX operations, which did not occur in the comparative period.

4.2.6. Other income, other expenses, loss on impairment of receivables

Other income of the Group stood at PLN 3.8 million in 9M 2023 (+PLN 2.4 million i.e. +179.5% year on year) and included among others grants received, which are distributed over time, at PLN 2.1 million (see the Consolidated Financial Statements, Note 2.7.).

Other expenses stood at PLN 1.8 million (-PLN 8.3 million i.e. -82.4% year on year). The decrease of other expenses was due to a high comparative base of 9M 2022. The company recognised Bondspot goodwill impairment costs of PLN 6.7 million and made donations of PLN 3.1 million in 9M 2022. The Group made donations of PLN 1.3 million in 9M 2023.

As at the balance-sheet date, the Group's loss on impairment of receivables stood at PLN 0.4 million, compared to a gain on reversal of impairment at PLN 0.4 million in 9M 2022.

4.2.7. Financial income and expenses

Financial income of the Group stood at PLN 23.0 million (+PLN 5.0 million year on year) and included mainly interest on bank deposits and corporate bonds. The higher income was driven by a higher level of short-term investments.

Financial expenses of the Group stood at PLN 5.7 million (-PLN 0.6 million i.e. -9.2% year on year). A key line of financial expenses was interest on VAT obligations at PLN 4.1 million (+PLN 0.8 million year on year) at IRGiT (see the Consolidated Financial Statements, Note 5.9).

4.2.8. Share of profit of entities measured by the equity method

The Group's share of profit of entities measured by the equity method stood at PLN 23.8 million in 9M 2023 (+PLN 3.1 million i.e. +14.8% year on year). The higher share of profit of entities measured by equity method in 9M 2023 was mainly driven by higher profits of the KDPW Group year on year.

Table 20: GPW's share of profit of entities measured by the equity method

	(unaudited)	Nine months period ended 30 September	Change	Growth rate (%)
PLN'000, %	2023	2022	(2023 vs 2022)	(2023 vs 2022)
KDPW S.A. Group	23,765	19,980	3,785	18.9%
Centrum Giełdowe S.A.	5	722	(717)	(99.3%)
Total	23,770	20,702	3,068	14.8%

4.2.9. Income tax

Income tax of the Group was PLN 23.2 million in 9M 2023 (-PLN 0.5 million i.e. -2.3% year on year). The effective income tax rate was 17.1% in 9M 2023 (18.1% in 9M 2022), as compared to the standard Polish corporate income tax rate of 19%. The difference was due among others to the exclusion of the share of profit of entities measured by the equity method from taxable income. Income tax paid by the Group in 9M 2023 was PLN 28.0 million (-PLN 7.3 million i.e. -20.6% year on year).

4.3. Consolidated statement of financial position

The structure of the Group's statement of financial position is very stable: equity had a predominant share in the Group's sources of financing as at 30 September 2023 and as at 30 September 2022. The company's net working capital, equal to the surplus of current assets over current liabilities, was positive at PLN 365.8 million as at 30 September 2023. Fixed capital decreased by -PLN 37.2 million i.e. -9.2% year to date and by -PLN 20.1 million i.e. -5.2% year on year. However, the level of fixed capital reflects the Group's secure asset position.

The balance-sheet total of the Group was PLN 1,196.6 million as at 30 September 2023, representing an increase of PLN 14.3 million i.e. +1.2% year to date and a decrease of -PLN 81.4 million i.e. -6.4% year on year, driven mainly by a decrease of current assets (-PLN 41.2 million i.e. -7.8% year to date and -PLN 173.9 million i.e. -26.2% year on year).

Non-current assets stood at PLN 707.1 million as at 30 September 2023 (+PLN 55.5 million i.e. +8.5% year to date and +PLN 92.5 million i.e. +15.1% year on year) representing 59.1% of total assets as at 30 September 2023 compared to 55.1% as at 31 December 2022 and 48.1% as at 30 September 2022.

Current assets stood at PLN 489.5 million as at 30 September 2023 (-PLN 41.2 million i.e. -7.8% year to date and -PLN 173.9 million i.e. -26.2% year on year) representing 40.9% of total assets as at 30 September 2023 compared to 44.9% as at 31 December 2022 and 51.9% as at 30 September 2022. The decrease of current assets was mainly driven by a decrease of liquid assets, understood as cash and cash equivalents and short-term financial assets measured at amortised cost (-PLN 38.7 million i.e. -8.7% year to date and -PLN 161.4 million i.e. -28.6% year on year).

Equity stood at PLN 1,006.0 million as at 30 September 2023 (+PLN 5.2 million i.e. +0.5% year to date and +PLN 53.0 million i.e. +5.6% year on year) representing 84.1% of the Group's total equity and liabilities as at 30 September 2023 compared to 84.6% as at 31 December 2022 and 74.6% as at 30 September 2022. Non-controlling interests, which stood at PLN 11.5 million as at 30 September 2023, increased year to date (+PLN 1.4 million i.e. +14.2%).

Non-current liabilities stood at PLN 66.9 million as at 30 September 2023 (+PLN 13.1 million i.e. +24.3% year to date and +PLN 19.4 million i.e. +40.9% year on year) representing 5.6% of total equity and liabilities as at 30 September 2023 compared to 4.6% as at 31 December 2022 and 3.7% as at 30 September 2022.

The biggest line of non-current liabilities was deferred income. Deferred income mainly includes payments under grants received for projects at PLN 37.8 million. For more information on grants, see the Consolidated Financial Statements, Note 2.7 and Note 5.4.

Current liabilities stood at PLN 123.7 million as at 30 September 2023 (-PLN 4.0 million i.e. -3.1% year to date and -PLN 153.8 million i.e. -55.4% year on year) representing 10.3% of total equity and liabilities as at 30 September 2023 compared to 10.8% as at 31 December 2022 and 21.7% as at 30 September 2022. The year-on-year decrease of liabilities is the result of the repayment of bond liabilities.

4.4. Consolidated statement of cash flows

Table 21: Consolidated statement of cash flows

	Nine months period ended 30 September (unaudited)
PLN'000	2023	2022
Cash flows from operating activities	119,641	196,012
Cash flows from investing activities	(228,036)	115,489
Cash flows from financing activities	(118,700)	(234,351)
Increase (decrease) of net cash	(227,095)	77,150
Impact of FX changes on balance of FX cash	156	397
Cash and cash equivalents - opening balance	378,641	349,324
Cash and cash equivalents - closing balance	151,702	426,871

The Group generated positive cash flows from operating activities at PLN 119.6 million in 9M 2023 compared to positive cash flows at PLN 196.0 million in 9M 2022. The change in the cash flows was driven by lower changes in working capital in the period.

Cash flows from investing activities were negative at PLN 228.0 million vs. positive cash flows at PLN 115.5 million in 9M 2022. The negative cash flows were mainly due to higher investments in bank deposits and bonds.

Cash flows from financing activities were negative at PLN 118.7 million vs. negative cash flows of PLN 234.4 million in 9M 2022. The difference in the cash flows was mainly due to the redemption of GPW bonds in 9M 2022.

The Group's capital expenditure stood at PLN 47.7 million in 9M 2023, including expenditure for property, plant and equipment at PLN 16.6 million (PLN 12.5 million in 9M 2022) and expenditure for intangible assets at PLN 31.1 million (PLN 21.8 million in 9M 2022).

In the period ended 30 September 2023, capital expenditure for property, plant and equipment and intangible assets related to the implementation of key projects, including the New Trading Platform and Telemetry, and the purchase of IT hardware.

5. Seasonality and cyclicity of operations 5.1. Trading on the financial market

Share prices and turnover value are significantly influenced by local, regional, and global trends impacting the capital markets, which determines the number and size of new issues of financial instruments and the activity of investors on GPW. As a result, the revenue of the Group is cyclical in the long term.

5.2. Trading on the commodity market

Trading in certificates of origin on TGE is subject to seasonality. The volume of turnover on the property rights market operated by TGE and the activity of participants of the Register of Certificates of Origin are largely determined by the obligation imposed on energy companies which sell electricity to final consumers and have to cancel a certain quantity of certificates of origin in relation to the volume of electricity sold in the preceding year. The percentage of certificates of origin which must be cancelled is fixed for every year in laws and regulations of the Minister of Climate.

According to the Energy Law, the obligation has to be performed until 30 June (of each year in relation of electricity sold in the preceding year). As a result, turnover in the first half of the year is relatively higher than in the second half of the year.

Trade in electricity on the Commodity Forward Instruments Market operated by TGE is not spread equally throughout the year. It is seasonal in that it depends on hedging strategies of large market players and it is typically lower in H1. However, seasonality may be distorted because the strategies of market players also depend on the financial standing of companies, regulatory changes, and current energy and gas prices.

6. Atypical factors and events impacting the GPW Group's results in Q3 2023

Atypical factors and events impacting the GPW Group's results in 9M 2023 included:

implementation of projects with grants from NCBiR (see Note 5.4. to the Consolidated Financial Statements),
revaluation of provisions concerning VAT in IRGiT (see Note 5.9. to the Consolidated Financial Statements),
share of profit of associates.

7. Atypical factors and events impacting the results at least in the next quarter 7.1. External factors

Impact of the armed conflict in Ukraine on the GPW Group's business

The GPW Group took into account the recommendations of the Polish Financial Supervision Authority of 25 February 2022 addressed to issuers in connection with the political and economic situation in Ukraine and the introduction of the CRP alert level in Poland by the Prime Minister. Due to the ongoing war in Ukraine, the GPW Group identifies the following risks to its operations:

Risk of withdrawal of funds by investors;
Risks associated with an above-average load on the trading system;
Risk of money laundering or terrorist financing;
Risk of breach of sanctions lists;
Risk of cyber attack;
Risk of bankruptcy or deterioration of transparency of companies participating in the WIG-Ukraine index;
Risk of loss of representativeness of indices that include Ukrainian companies;
Risk of obstruction of gas supplies to Poland;
Risk of decline in natural gas consumption in Poland;
Risk of decline in electricity turnover on TGE due to legislative amendments;
Risks relating to the activity of participants in Treasury bond trading and the structure of such trading.

GPW and its subsidiaries are monitoring the situation on an ongoing basis and taking measures to manage business continuity.

The war risks are described extensively in the Management Board Report on the Activity of the Parent Company and the Warsaw Stock Exchange Group, Note 2.7.5., and in the Consolidated Financial Statements of the GPW Group for the year ended 31 December 2022, Note 1.10. Supplementary information is provided below.

Other factors which may impact the GPW Group's results in the coming quarters

The PMI industry index, which reflects the level of activity and the degree of optimism in the industry, rose from 43.1 points in August to 45.1 points in September. This was the PMI's 17th consecutive reading under 50 points. Although the Polish manufacturing industry continued to experience a severe slowdown in September, the latest PMI data show a lower rate of decline of the key readings. Production volumes, new orders, backlogs and purchases all declined at a slower rate than in August, and the outlook for the next 12 months was among the best since the Russian invasion of Ukraine in February 2022. The latest survey data raised hopes that the worst phase of the slowdown in Polish manufacturing since mid-2022 is over as the PMI rose to its highest level in three months and the forward-looking index of future production recorded its best 12-month forecast since March 2023.
Assets invested in investment funds stood at PLN 299.8 billion as at 31 August 2023 (+PLN 30.3 billion year to date). Debt fund assets increased by almost PLN 2.5 billion (2.6%) in August. Most of the world's major stock markets were bearish in August. Assets in the equity fund segment fell by less than PLN 1.5 billion (-4.3%) in August and amounted to almost PLN 32.6 billion at the end of the month. The largest outflows were recorded by Polish equity funds, both universal equity funds (-PLN 96.0 million) and SME equity funds (-PLN 42.0 million).
Assets in pension funds fell to PLN 179.0 billion (as at 30 September 2023), impacting the activity of investors and the performance of the WIG20 index;

Due to the specificity of the activity of repo market players, there is a risk of concentration of turnover in the conditional transactions segment of the TBSP market (MMF), where the exposure of a single participant up to half of total turnover may generate business risks in the segment;
Assets of employee capital plans (PPK) increased by a total of PLN 6.14 billion (more than 50%) year to date. Despite negative performance in September, the assets increased in value by PLN 100 million and amounted to PLN 18.1 billion at the end of the month. The growing value of PPKs' net assets may have a positive impact on the demand for instruments listed on the GPW markets and a further increase in the prices of assets listed on GPW;
Lifting of the obligation to trade in gas on the exchange;
Rising or persistently high inflation;
Further interest rate hikes;
Legislative changes with a direct impact on benchmarks.

7.2. Internal factors

Internal factors and activities which may impact the GPW Group's results in the coming quarters include:

provisions for potential VAT interest payable in IRGiT (see Note 5.9 to the Consolidated Financial Statements);
development of the key initiatives of the GPW strategy 2023-2027.

8. Other information

Contingent liabilities and assets

For details of contingent assets and liabilities, see the Consolidated Financial Statements, Note 5.8.

Pending litigation

According to the Company's best knowledge, there is no litigation pending against the parent entity or other companies of the Group before a court, an arbitration body or a public administration body concerning liabilities or debt with a value of at least 10% of the Group's equity.

Loans and advances

The Group neither granted nor terminated loans or advances in third quarter 2023.

In previous years, the Group granted loans to its related party, PAR – see Note 5.1.2 to the Consolidated Financial Statements.

Investment in and relations with other entities

GPW has organisational and equity relations with members of the Group, associates, and joint ventures. For a description of the Group and the associates, see section 3.1. of this Report.

As at 30 September 2023, the GPW Group held an interest in the following entities:

Bucharest Stock Exchange (BVB) 0.06%,
INNEX PJSC 10%,
TransactionLink Sp. z o.o. 2.16%,
IDM 1.54% (acquired in a debt-to-equity conversion),
EuroCTP B.V. 0.1%.

The carrying amount of the GPW Group's interest in the Bucharest Stock Exchange stood at PLN 322 thousand as at 30 September 2023 (PLN 175 thousand as at 31 December 2022) and its interest in Innex and IDM at PLN 0, TransactionLink at PLN 1,793 thousand, and EuroCTP B.V. at PLN 31 thousand.

In addition to interest in those companies, Group members, associates, and joint ventures, GPW's main local investments as at 30 September 2023 included bank deposits and corporate bonds.

For details of transactions of the Group with related parties, see the Consolidated Financial Statements, Note 5.1.

Guarantees and sureties granted

For a description of guarantees received by the Group, see the Consolidated Financial Statements, Note 5.8.1.

Related party transactions

The Exchange and the other entities of the GPW Group did not enter into transactions with related parties on terms other than market terms in 9M 2023.

Feasibility of previously published forecasts

The Group did not publish any forecasts of results for the nine-month period ended 30 September 2023.

Dividends

Dividends are presented in the Consolidated Financial Statements, Note 5.3.

Events after the balance-sheet date which could significantly impact the future financial results of the issuer

Events after the balance sheet date are presented in the Consolidated Financial Statements, Note 5.10.

9. Quarterly financial information of Giełda Papierów Wartościowych w Warszawie S.A. for 9M 2023

The quarterly financial information of Giełda Papierów Wartościowych w Warszawie S.A. was prepared according to the same accounting principles that were followed in the preparation of the Consolidated Financial Statements for the year ended 31 December 2022.

There were no significant changes of estimates in the nine-month period ended 30 September 2023. The Company issued no loan guarantees. The loan granted by the Company to PAR is described in Note 5.1.2 of the Consolidated Financial Statements.

Table 23: Separate statement of comprehensive income (PLN'000)

	Nine months period ended 30 September (unaudited)		Three months ended 30 September (unaudited)
	2023	2022	2023	2022
Sales revenue	179,945	190,508	59,284	57,987
Operating expenses	(141,329)	(128,591)	(44,654)	(41,934)
Gains on reversed impairment of receivables/(Losses) on impairment of receivables	(605)	360	(74)	30
Loss on impairment of receivables	4,355	1,491	1,038	466
Other expenses	(1,755)	(3,601)	(143)	(2,553)
Operating profit	40,611	60,167	15,451	13,996
Financial income	71,952	48,232	2,184	5,105
Financial costs	(470)	(3,659)	(238)	(901)
Profit before tax	112,093	104,740	17,397	18,200
Income tax	(9,653)	(13,605)	(3,580)	(3,039)
Net profit for the period	102,440	91,135	13,817	15,161
Total comprehensive income	102,943	90,791	14,027	15,213
Basic/diluted earnings per share (PLN)	2.44	2.17	0.33	0.36

Table 24: Separate statement of financial position (PLN'000)

	As at
ASSETS	30 September 2023 (unaudited)	31 December 2022	30 September 2022 (unaudited)
Non-current assets	526,764	492,077	466,187
Property, plant and equipment	86,234	91,078	83,818
Right-to-use assets	3,121	2,551	3,258
Intangible assets	110,373	88,167	81,026
Investment property	7,598	7,889	7,986
Investment in associates and joint ventures	11,652	11,652	11,652
Investment in subsidiaries	284,425	278,939	266,068
Sublease receivable	3,606	305	667
Deferred tax asset	6,784	6,029	6,356
Assets measured at fair value through other comprehensive income	10,513	4,888	4,702
Prepayments	2,458	579	654
Current assets	170,880	203,699	348,888
Inventory	-	-	10
CIT payable	11,158	6,615	988
Trade receivables and other receivables	43,560	37,447	37,795
Sublease receivable	1,299	2,023	2,372
Contract assets	2,161	543	1,299
Financial assets measured at amortised cost	94,662	53,698	116,214
Cash and cash equivalents	18,040	100,037	190,210
Assets held for sale	-	3,336	-
TOTAL ASSETS	697,644	695,776	815,075

	As at
EQUITY AND LIABILITIES	30 September 2023 (unaudited)	31 December 2022	30 September 2022 (unaudited)
Equity	585,400	595,781	587,180
Share capital	63,865	63,865	63,865
Other reserves	290	(213)	(385)
Retained earnings	521,245	532,129	523,700
Non-current liabilities	58,916	46,556	41,917
Employee benefits payable	1,206	1,242	1,212
Lease liabilities	5,493	424	1,382
Contract liabilities	7,310	6,825	5,874
Accruals and deferred income	35,027	27,046	25,600
Other liabilities	9,880	11,019	7,849
Current liabilities	53,328	53,439	185,978
Liabilities under bond issue	-	-	126,933
Trade payable	9,709	12,512	9,146
Employee benefits payable	17,635	18,994	20,202
Lease liabilities	2,601	4,616	5,150
Contract liabilities	13,160	3,844	14,938
Accruals and deferred income	165	3,127	422
Provisions for liabilities and other charges	413	1,407	1,317
Other liabilities	9,645	8,939	7,870
TOTAL EQUITY AND LIABILITIES	697,644	695,776	815,075

Table 25: Separate statement of cash flows (PLN'000)

	Nine months period ended 30 September (unaudited)
	2023	2022
Cash flows from operating activities	37,378	68,755
Cash inflows from operating activities	53,501	91,307
Advances received from related entities under the Tax Group	6,858	7,786
Income tax (paid)/refunded	(22,981)	(30,338)
Cash flows from investing activities:	(1,317)	188,199
In:	309,485	548,490
Sale of property, plant and equipment and intangible assets	-	9
Dividends received	63,448	36,468
Inflow related to the expiry of deposits and the maturity of bonds	228,032	414,958
Interest on financial assets measured at amortised cost	4,271	3,868
Grants received	6,733	-
Sublease payments (interest)	61	90
Sublease payments (principal)	2,046	1,887
Loan repayment by a related party	522	91,210
Inflow from non-current assets held for sale	4,372	-
Out:	(310,802)	(360,291)
Purchase of property, plant and equipment and advance payments for property, plant, and equipment	(6,468)	(11,713)
Purchase of intangible assets and advance payments for intangible assets	(25,744)	(18,784)
Purchase of financial assets measured at amortised cost	(268,424)	(324,359)
Purchase of financial assets measured at fair value through other comprehensive income	(5,016)	-
Purchase of interest in subsidiaries	-	(5,435)
Increase of capital of a related company	(5,150)	-
Cash flows from financing activities:	(118,064)	(236,534)
In:	-	9,841
Grants received	-	9,841
Out:	(118,064)	(246,375)
Dividends paid	(113,324)	(115,003)
Interest paid on bonds	-	(2,708)
Redemption of issued bonds	-	(120,000)
Refunded grants	-	(4,261)
Lease payments (interest)	(122)	(192)
Lease payments (principal)	(4,618)	(4,211)
Net (decrease)/increase of cash and cash equivalents	(82,004)	20,420
Impact of FX changes on balance of FX cash	7	329
Cash and cash equivalents - opening balance	100,037	169,461
Cash and cash equivalents - closing balance	18,040	190,210

Table 26: Separate statement of changes in equity (PLN'000)

	Share capital	Other reserves	Retained earnings	Total equity
As at 1 January 2023	63,865	(213)	532,129	595,781
Dividend	-	-	(113,324)	(113,324)
Transactions with owners recognised directly in equity	-	-	(113,324)	(113,324)
Net profit for the nine months period ended 30 September 2023	-	-	102,440	102,440
Other comprehensive income for nine months period ended 30 September 2023	-	503	-	503
Total comprehensive income nine months period ended 30 September 2023	-	503	102,440	102,943
As at 30 September 2023	63,865	290	521,245	585,400
As at 1 January 2022	63,865	(41)	547,568	611,392
Dividend	-	-	(115,003)	(115,003)
Transactions with owners recognised directly in equity	-	-	(115,003)	(115,003)
Net profit for the year 2022	-	-	99,564	99,564
Other comprehensive income	-	(172)	-	(172)
Total comprehensive income for 2022	-	(172)	99,564	99,392
As at 31 December 2022	63,865	(213)	532,129	595,781
As at 1 January 2022	63,865	(41)	547,568	611,392
Dividend	-	-	(115,003)	(115,003)
Transactions with owners recognised directly in equity	-	-	(115,003)	(115,003)
Net profit for the nine months period ended 30 September 2022	-	-	91,135	91,135
Other comprehensive income	-	(344)	-	(344)
Total comprehensive income nine months period ended 30 September 2022	-	(344)	91,135	90,791
As at 30 September 2022	63,865	(385)	523,700	587,180

The Interim Report of the Giełda Papierów Wartościowych w Warszawie S.A. Group for the nine-month period ended 30 September 2023 is presented by the GPW Management Board:

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 ………………………………………

Warsaw, 9 November 2023

Appendix:

Condensed Consolidated Financial Statements for the nine-month period ended 30 September 2023

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5624_rns_2023-11-09_6428a887-dfaf-45cb-ab57-0c48125e01ac.pdf