GPW - Giełda Papierów Wartościowych w Warszawie S.A.

Audit Report / Information • Nov 28, 2018

Current Report No. 36/2018Date: 27 November 2018Topic:Adjustment of the consolidated interim report for Q3 2018Legalbasis: Article 56(1)(2) of the Offering Act - current and periodicreportsContent:Giełda Papierów Wartościowych w WarszawieS.A. ("the Warsaw Stock Exchange", "GPW" or "Company") announces that on27 November, the auditor ("KPMG") had completed its analysis of therecognition of the cost in respect of payments made by GPW to the PolishNational Foundation ("Foundation" or "PNF") and decided to change therecognition of the payments.As a co-founder of the PolishNational Foundation ("Foundation" or "PNF") established in 2016, GPWagreed to pay annual contributions towards the statutory activity of theFoundation (split into 11 payments) from the date of inception of theFoundation. The Company's total commitment to PNF according to thefounding deed is PLN 19,500 thousand. Up to 30 September 2018, theCompany paid PLN 7,500 thousand towards the endowment of the Foundation,including PLN 3,000 thousand paid in the first two years each (i.e., in2016 and in 2017, accordingly) and PLN 1,500 thousand paid in thenine-month period ended 30 September 2018.After KPMG analysisthe accounting treatment of payments to PNF was modified retrospectivelyby discounting future payments committed by GPW as at 31 December 2016and their one-off recognition under other expenses in the Group'sstatement of comprehensive income for the year ended 31 December 2016and, on the other hand, under other liabilities in the Group's statementof financial position as at 31 December 2016 (PLN 12,014 thousandnon-current and PLN 2,646 thousand current). The liability stood at PLN12,014 thousand as at 31 December 2017 (PLN 10,830 thousand non-currentand PLN 1,184 thousand current). The Company adjusted the presentationof the payments to PFN in the statement of comprehensive income of theGroup for 2016 and 2017 accordingly. As a result of the adjustment, theGroup's equity was reduced by PLN 14,660 thousand as at 31 December 2016and by PLN 12,014 thousand as at 31 December 2017 (presented accordinglyin the statement of changes in equity). The net profit for the yearended 31 December 2016 was reduced by PLN 14,660 thousand and the netprofit for the year ended 31 December 2017 was increased by PLN 2,464thousand. The net profit for the nine-month period ended 30 September2017 was increased by PLN 2,734 thousand and the net profit for thethree-month period ended 30 September 2017 was reduced by PLN 87thousand. The net profit for the nine-month period ended 30 September2018 was increased by PLN 1,263 thousand in comparison with the netprofit under the previous accounting treatment.The adjustmentcaused a change of selected items in the statement of cash flows for thenine-month period ended 30 September 2017 as follows: the net profitincreased by PLN 2,734 thousand; the change of other non-currentliabilities was PLN 1,912 thousand (PLN 0 thousand before theadjustment); the change of other liabilities (excluding investmentliabilities and dividend payable) was PLN 73,374 thousand (PLN 72,552thousand before the adjustment).The other data presented in theconsolidated quarterly report of the GPW Group for Q3 2018 were correct.Theadjusted consolidated quarterly report for Q3 2018 will be published bythe Company in the ESPI system.Legal basis: § 15 (4) of theRegulation of the Minister of Finance of 29 March 2018 on current andperiodic information provided by issuers of securities and on conditionsunder which information required by legal regulations of a third countrymay be recognised as equivalent.