GPW - Giełda Papierów Wartościowych w Warszawie S.A.

Earnings Release • Mar 29, 2019

Current Report No. 6/2019Date: 29 March 2019Topic: Opinion of the Exchange Supervisory Board on the distribution of the Company’s profit for 2018 proposed by the GPW Management BoardLegal basis: Article 17(1) of MAR – inside informationContent:Further to Current Report No. 5/2019 of 29 March 2019, the Warsaw Stock Exchange (“Exchange", “GPW", “Company") hereby announces that on 29 March 2019 the Exchange Supervisory Board has issued a positive opinion on the motion of the Exchange Management Board concerning the distribution of the profit for the financial year 2018 which provides for the payment of a dividend of PLN 133,470,960.00 (in words: one hundred thirty three million four hundred seventy thousand nine hundred sixty zloty).The proposed dividend payment of PLN 133,470,960.00 implies a dividend of PLN 3.18 per share. The dividend payout ratio will be 72.7% of the consolidated profit (77.1% of the net profit attributable to the shareholders of the parent entity adjusted for the share of profit of associates) and the dividend yield will be 8.15% based on GPW’s capitalisation as at 26 March 2019.The recommendation of the Exchange Management Board and the opinion of the Exchange Supervisory Board on that matter are in line with GPW’s dividend policy, which provides for the payment of dividend, depending on the profitability and financial capacity of GPW, above 60% of the consolidated net profit of the GPW Group of the financial year attributable to the shareholders of GPW adjusted for the share of profit of associates.In issuing a positive opinion on the proposal of the Exchange Management Board concerning the proposed dividend amount, the Exchange Supervisory Board has taken into consideration among others the following material factors indicated by the Exchange Management Board:• very food financial results reported by the GPW Group in 2018;• Guidelines for Companies of the State Treasury which Prepare Financial Statements for 2018, approved by the Chancellery of the Prime Minister in September 2018;• consistently high and rising return ratios: ROE (21.7%) and ROA (15.5%), consistently high current liquidity (11.1), high and growing financial resources, and no risk to the payment of debt (negative net debt);• gains on the sale of Aquis Exchange PLC at PLN 45.4 million before tax on a consolidated basis and PLN 32.2 million before tax on a separate basis;• investment needs derived from the implementation of the GPW Group’s strategy #2022;• the dividend yield and the payout ratios used by comparable companies;• liquidity needs of the GPW Group depending on actual and expected market and regulatory conditions, current operating expenses and debt service, and optimisation of the structure of financing of the GPW Group.The General Meeting is the Company’s body exclusively competent to decide about profit distributions, including dividend payments.Legal basis: Article 17(1) of Regulation (EU) 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC (EU Official Journal L 173) (“MAR").