GPW - Giełda Papierów Wartościowych w Warszawie S.A.

Earnings Release • Apr 7, 2023

Current Report no. 2/2023Date: 7 April 2023Topic: Deviation ofGPW Group's financial results from market consensus in Q4 2022Legalbasis: Article 17(1) MAR - Inside informationContent:TheWarsaw Stock Exchange ("GPW", "Company") announces that, following thecompilation on 7 April 2023 of market expectations presented in researchreports prepared by brokerage firms gathered in the form of a consensus,the consolidated financial results of the GPW Group ("GPW Group","Group") in Q4 2022 will be higher than the consensus. The GPW Group'sprojected consolidated net profit is estimated to be higher.TheGPW Group's preliminary consolidated financial estimates for Q4 2022 areas follows:? Sales revenue: PLN 91.5 million? Operatingexpenses: PLN 64.2 million? Operating profit: PLN 31.9 million?EBITDA: PLN 40.8 million? Net profit: PLN 37.7 millionDuringthe preparation of GPW's Annual Report 2022 and the GPW Group'sConsolidated Annual Report 2022, it was decided to recognise thefollowing events with a cumulative material impact on the Group'sresults:? As a result of the closing of GPW's acquisition of65.03% of the shares of Armenia Securities Exchange, announced by theCompany in Current Report no. 30/2022 of 27 December 2022, net assetswere identified at fair value of PLN 26.906 million (in words:twenty-six million nine hundred and six thousand zlotys). Afteradjusting identifiable net assets for non-controlling interests in theamount of PLN 9.409 million (in words: nine million four hundred andnine thousand zlotys) and the total purchase price of PLN 9.552 million(in words: nine million five hundred and fifty-two thousand zlotys), theCompany realised gains on bargain purchase in the amount of PLN 7.945million (in words: seven million nine hundred and forty-five thousandzlotys). The gains were recognised in other income;? At year-end2022, goodwill (BondSpot S.A.) was once again tested for impairment. Thetest was carried out using the DCF method on the basis of BondSpot'sprojected earnings in 2023-2027. The goodwill impairment test as at 31December 2022 identified the need for an additional allowance to berecognised in the consolidated financial statements of the GPW Group inthe amount of PLN 3.126 million (in words: three million one hundred andtwenty-six thousand zlotys). In total, the allowance in the whole of2022 stood at PLN 9.832 million (in words: nine million eight hundredand thirty-two thousand zlotys).The financial statements of theGroup are still being reviewed by the auditor and therefore the GPWGroup's results are not final and may be subject to change. GPW's AnnualReport 2022 and the GPW Group's Consolidated Annual Report 2022 will bepublished on 12 April 2023.Legal basis: Article 17(1) of theRegulation(EU) No. 596/2014 of the European Parliament and of theCouncil of 16 April 2014 on market abuse (market abuse regulation) andrepealing Directive 2003/6/EC of the European Parliament and of theCouncil and Commission Directives 2003/124/EC, 2003/125/EC and2004/82/EC (Official Journal L No. 173) ("MAR").