GPW - Giełda Papierów Wartościowych w Warszawie S.A.

Business and Financial Review • Mar 25, 2020

Current Report No 4/2020Date: 25 March 2020Legal basis: Article17(1) MAR - inside informationTopic: Impact of the spread ofthe SARS-CoV-2 virus on the activity of the GPW GroupContent:TheManagement Board of the Warsaw Stock Exchange ("GPW", "Company" or"Exchange") announces information concerning the impact of the spread ofthe SARS-CoV-2 virus on the activity of the Issuer and the GPW Group.Asan operator of Poland's capital market infrastructure, GPW is exposed tomoderate operational and financial risk generated by the outbreak of theSARS-CoV-2 pandemic.The Exchange Management Board has taken a numberof measures to mitigate the risk.Risks identified in connection withthe spread of the infectious disease COVID-19 caused by the SARS-CoV-2virus include:• Periodic HR shortages caused by potentialcoronavirus infection and/or quarantine of GPW employees. To preventsuch risks, most of the GPW Group's employees have been delegated towork remotely (over 95% of staff are working remotely). GPW continuouslymonitors human resources across the Group's departments andsubsidiaries. Key employees have been identified and their substituteshave been appointed. A total ban on business travel has been imposed.The procedures in place provide for mitigating measures in the event ofconfirmed coronavirus infections among employees. The legal frameworkapplicable in the GPW Group companies supports continued operation evenif more than a half of members of the Management Boards and SupervisoryBoards of Group companies were to be quarantined.• Interruption ofvendors' services. GPW Group employees continuously monitor compliancewith the scope and quality requirements for services provided bythird-party vendors. The GPW Group has not identified any interruptionin the provision of services by telecommunication, energy, and bankingsuppliers. Business continuity of the GPW Group is ensured among othersby diversification of providers and recovery resources available at theback-up location.• Economic slowdown adversely impacting thevaluations of companies listed on GPW, which could restrict the activityof institutional and retail investors and cause delistings. Fallingnumbers of investors and GPW-listed companies could reduce the liquidityof instruments listed on GPW and reduce the Company's revenue.•Restricted activity of brokers - Exchange Members, including marketmakers, caused by potential higher COVID-19 incidence and/or quarantineof their employees, which could reduce the liquidity of financialinstruments listed on GPW. The GPW Group's procedures cover riskscenarios of the epidemic and include operational and legal solutionsnecessary to ensure business continuity of GPW. To ensure efficientcrisis management, we have activated a Crisis Management Teamresponsible for continuous monitoring and identification of risks. Inconsultation with the GPW Group companies, the Crisis Management Teamhas prepared an action plan in the event of further escalation. As anorganiser of trading, under its business continuity plan, the GPW Grouphas established a range of tools, procedures and mechanisms to ensurecontinuity and safety of trade at a time of high market volatility.Inthe opinion of the Exchange Management Board, the SARS-CoV-2 pandemic atthis stage poses no threat to continued operation of the Company.Legalbasis: Article 17(1) of Regulation (EU) No 596/2014 of the EuropeanParliament and of the Council of 16 April 2014 on market abuse (marketabuse regulation) and repealing Directive 2003/6/EC of the EuropeanParliament and of the Council and Commission Directives 2003/124/EC,2003/125/EC and 2004/72/EC (EU Official Journal L 173) ("MAR")