GPW - Giełda Papierów Wartościowych w Warszawie S.A.

Report Publication Announcement • Oct 20, 2017

Deviation of GPW Group financial results from market consensus in Q3 2017CurrentReport No. 45/2017Date: 20 October 2017Topic: Deviation of GPWGroup financial results from market consensus in Q3 2017Legal Basis:Article 17 (1) of MAR - Inside informationContent:TheWarsaw Stock Exchange ("GPW" or "Company") hereby announces, following acompilation of market expectations presented in research reports ofbrokers combined as a consensus as at 20 October 2017, that theconsolidated financial results of the GPW Group ("GPW Group" or "Group")in Q3 3017 will exceed the consensus. According to the estimates of GPWGroup, the consolidated net profit is higher than the consensus.Inthe preparation of the consolidated financial statements of the GPWGroup for Q3 2017, it was decided to recognise the following events,which in aggregate have a significant impact on the Group's quarterlyresults.In connection with a VAT correction due to amodification of the terms of taxation on services provided by PolishPower Exchange ("TGE") in 2011 - 2016:•Pursuant to a decision of the Director of the Tax Administration Chambercancelling the decision of the Head of the Second Mazovian Tax Office,the Second Mazovian Tax Office on 13 October 2017 refunded TGE, a 100%subsidiary of GPW, with PLN 3.8 million of interest on outstanding taxliabilities, accrued by the tax authority following the correction ofVAT payments due to the modification of the terms of taxation onservices provided by in 2011 - 2016. This event will reduce thefinancial costs of the Group.• Following the receipt of amountsdue from TGE contractors under correction invoices of contractors issuedfor the VAT correction, it was decided in the preparation of thefinancial statements as at 30 September 2017 to release provisions ofPLN 1.8 million, set up for uncollectible debt in this regard. Thisevent will reduce other expenses of the Group.In addition,similar to the GPW Group, it became apparent in the preparation of thefinancial statements of the Group that the fees paid by KDPW as costs ofsupervision of the capital market exercised by the Polish FinancialSupervision Authority ("KNF") in 2017, calculated on the basis of therates and adjustment factors published by the Chairperson of the PolishFinancial Supervision Authority in a communication of 30 August 2017,were lower than those covered by the relevant provisions. The differencebetween the originally expected amount of the fees due to KNF and theamount actually paid, attributable to the GPW Group, is PLN 1 million.This event will increase the share of profits of associates.Thenet total of these amounts is PLN 6.6 million, which will have a one-offadditional impact on the financial results of the GPW Group in Q3 2017.Anotherone-off event in Q3 2017 which impacted the financial results of the GPWGroup was the release of provisions at ca. PLN 5.8 million due to alower annual fee paid by the GPW Group as costs of supervision of thecapital market, as announced by the Company in Current Report No. 40 of18 September 2017.The financial statements of the Group arecurrently being audited; hence, the results of the GPW Group are notdefinitive and are subject to change. The GPW Group's quarterly reportfor Q3 2017 will be published on 30 October 2017.Legal basis:Article17 (1) of Regulation (EU) No 596/2014 of the European Parliament and ofthe Council of 16 April 2014 on market abuse (market abuse regulation)and repealing Directive 2003/6/EC of the European Parliament and of theCouncil and Commission Directives 2003/124/EC, 2003/125/EC and2004/82/EC (EU Legal Journal L 173) ("MAR").