GPW - Giełda Papierów Wartościowych w Warszawie S.A.

Interim / Quarterly Report • Nov 9, 2023

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS OF THE

GIEŁDA PAPIERÓW WARTOŚCIOWYCH W WARSZAWIE S.A. GROUP

FOR THE PERIOD ENDED 30 SEPTEMBER 2023

		CONSOLIDATED STATEMENT OF FINANCIAL POSITION 2
		CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 4 CONSOLIDATED STATEMENT OF CASH FLOWS 5
		CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 7
		NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 8
1.		General information, basis of preparation of the financial statements, accounting policies 8
	1.1.	Legal status 8
	1.2.	Scope of activities of the Group 8
	1.3.	Approval of the financial statements 9
	1.4.	Composition and activity of the Group 9
	1.5.	Statement of compliance 9
2.		Notes to the statement of financial position11
	2.1.	Property, plant and equipment 11
	2.2.	Intangible assets 12
	2.3.	Investment in entities measured by the equity method 13
	2.4.	Financial assets 13
		2.4.1. Trade receivables and other receivables13
		2.4.2. Financial assets measured at amortised cost 14
		2.4.3. Cash and cash equivalents14
	2.5.	Change of estimates 14
	2.6.	Contract liabilities15
	2.7.	Accruals and deferred income 15
	2.8.	Other liabilities16
3.		Notes to the statement of comprehensive income 16
	3.1.	Income tax 16
4.		Note to the statement of cash flows17
	4.1.	Depreciation and amortisation17
5.		Other notes 17
	5.1.	Related party transactions17
		5.1.1. Information about transactions with the State Treasury and entities which are related parties of
		the State Treasury17
		5.1.2. Transactions with entities measured by the equity method18
		5.1.3. Other transactions19
	5.2.	Information on remuneration and benefits of the key management personnel 19
	5.3.	Dividend20
	5.4.	Grants 20
	5.5.	Seasonality 21
	5.6.	Segment reporting 21
	5.7.	Additional information concerning the outbreak of war in Ukraine 25
	5.8.	Contingent liabilities25
		5.8.1. Contingent liabilities25
		5.8.2. Transactions with IRL Polska Sp. z o.o. 26
		5.8.3. Industrial dispute at GPW 26
	5.9.	Uncertainty about VAT 26
	5.10.	Events after the balance sheet date 27

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

		As at
	Note	30 September 2023 (unaudited)	31 December 2022
Non-current assets:		707 107	651 608
Property, plant and equipment	2.1.	105 649	107 605
Right-to-use assets	0	9 349	4 685
Intangible assets	2.2.	306 509	282 892
Investment in entities measured by equity method	2.3.	262 125	241 313
Sublease receivables	0	268	290
Deferred tax asset	0	7 692	6 526
Financial assets measured at fair value through other comprehensive income	0	12 306	6 681
Prepayments		3 196	781
Other non-current assets		13	835
Current assets:		489 492	530 648
Inventories		1	-
Corporate income tax receivable		11 194	6 652
Trade receivables and other receivables	2.4.1.	70 158	79 348
Sublease receivables	0	93	94
Contract assets	0	4 153	1 949
Financial assets measured at amortised cost	2.4.2.	252 191	63 964
Cash and cash equivalents	2.4.3.	151 702	378 641
TOTAL ASSETS		1 196 599	1 182 256

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

		As at
	Note	30 September 2023 (unaudited)	31 December 2022
Equity:		1 006 030	1 000 827
Equity of shareholders of the parent entity:		994 559	990 780
Share capital	0	63 865	63 865
Other reserves	0	(6 298)	(11 941)
Foreign exchange translation reserve		198	-
Retained earnings	0	936 794	938 856
Non-controlling interests		11 471	10 047
Non-current liabilities:		66 907	53 814
Employee benefits payable	0	1 496	1 524
Lease liabilities	0	6 781	495
Contract liabilities	2.6.	7 674	7 276
Accruals and deferred income	2.7.	38 499	30 899
Deferred tax liability	0	2 144	2 158
Other liabilities	2.8.	10 313	11 462
Current liabilities:		123 662	127 615
Trade payables	0	17 604	17 927
Employee benefits payable	0	28 706	31 109
Lease liabilities	0	2 852	4 852
CIT payable		1 328	401
Contract liabilities	2.6.	18 037	4 406
Accruals and deferred income	2.7.	1 396	4 755
Provisions for other liabilities and other charges:	0	35 815	32 098
- VAT provision	5.9.	34 787	30 691
Other liabilities	2.8.	17 924	32 067
TOTAL EQUITY AND LIABILITIES		1 196 599	1 182 256

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

		Three months ended 30 September (unaudited)			Nine months period ended 30 September (unaudited)
	Note	2023	2022	2023	2022
Sales revenue	0	106 084	88 443	329 023	297 757
Operating expenses	0	(74 601)	(59 334)	(235 826)	(190 684)
Gains on reversed impairment of receivables/ (Loss) on impairment of receivables	0	283	89	(374)	354
Other income	0	1 025	384	3 776	1 351
Other expenses	0	(118)	(9 100)	(1 772)	(10 044)
Operating profit		32 673	20 482	94 827	98 734
Financial income, incl.:	0	6 639	8 758	22 966	17 928
interest income under the effective interest rate method		5 489	8 200	21 094	16 811
Financial expenses, incl.:	0	(1 884)	(189)	(5 747)	(6 328)
financial cost of VAT risk	5.9.	(1 320)	1 405	(4 096)	(1 580)
Share of profit of entities measured by equity method	0	10 319	8 346	23 770	20 702
Profit before tax		47 747	37 397	135 816	131 036
Income tax	3.1.	(7 654)	(6 255)	(23 228)	(23 774)
Profit for the period		40 093	31 142	112 588	107 262
Share of other comprehensive income/(expense) of entities measured by equity method (net)	0	745	(1 050)	5 130	(7 722)
Exchange differences on translation of foreign subsidiaries		1 353	-	304	-
Total items that may be reclassified to profit or loss		2 098	(1 050)	5 434	(7 722)
Gains/(Losses) on valuation of financial assets measured at fair value through other comprehensive income, net	0	210	1 063	513	667
Total items that will not be reclassified to profit or loss		210	1 063	513	667
Total other comprehensive income after tax		2 308	13	5 947	(7 055)
Total comprehensive income		42 401	31 155	118 535	100 207
Profit for the period attributable to shareholders of the parent entity		39 687	31 139	111 262	107 254
Profit for the period attributable to non-controlling interests		406	3	1 326	8
Total profit for the period		40 093	31 142	112 588	107 262
Comprehensive income attributable to shareholders of the parent entity		41 522	31 152	117 103	100 199
Comprehensive income attributable to non-controlling interests		879	3	1 432	8
Total comprehensive income		42 401	31 154	118 535	100 207
Basic / Diluted earnings per share (PLN)	0	0,95	0,74	2,65	2,56

CONSOLIDATED STATEMENT OF CASH FLOWS

		Nine months period ended 30 September (unaudited)
	Note	2023	2022
Total net cash flows from operating activities		119 641	196 012
Net profit for the period		112 588	107 262
Adjustments:		35 086	124 045
Income tax	3.1.	23 228	23 774
Depreciation and amortisation	4.1.	23 711	27 895
Impairment allowances		113	(75)
Share of profit of entities measured by equity method		(23 770)	(20 702)
(Gains) on financial assets measured at amortised cost		(7 810)	(5 301)
Interest on bonds		-	3 173
Other adjustments	0	4 025	1 892
Change of assets and liabilities:		15 589	93 389
Inventories		(1)	5
Trade receivables and other receivables	2.4.1.	9 190	83 482
Trade payables	0	(323)	1 115
Contract assets	0	(2 204)	(383)
Contract liabilities	2.6.	14 029	12 416
Prepayments	0	(2 415)	1 543
Accruals and deferred income	2.7.	4 241	6 404
Employee benefits payable	0	(2 431)	(2 224)
Other current liabilities (excluding contracted investments and dividend payable)	2.8.	(7 065)	(10 208)
Provisions for liabilities and other charges	0	3 717	2 832
Other non-current liabilities	0	(1 149)	(1 593)
Income tax (paid)/refunded		(28 033)	(35 295)

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)

		Nine months period ended 30 September (unaudited)
		2023	2022
Total cash flows from investing activities:		(228 036)	115 489
In:		305 010	479 177
Sale of property, plant and equipment and intangible assets		-	9
Dividends received		8 088	10 556
Inflow related to the expiry of deposits and the maturity of bonds		284 032	464 946
Interest on financial assets measured at amortised cost		5 487	3 641
Grants received		6 733	-
Sublease payments (interest)		6	4
Sublease payments (principal)		97	21
Interest received on loans granted		45	-
Loan repayment by a related party		522	-
Out:		(533 046)	(363 688)
Purchase of property, plant and equipment and advances for property, plant and equipment		(16 615)	(12 534)
Purchase of intangible assets and advances for intangible assets		(31 091)	(21 761)
Establishing deposits and subscription of bonds		(480 324)	(324 354)
Purchase of financial assets at fair value through other comprehensive income		(5 016)	(5 001)
Purchase of shares of related parties		-	(38)
Total cash flows from financing activities:		(118 700)	(234 351)
In:		-	12 160
Grants received		-	9 841
Proceeds from loans and borrowings		-	2 319
Out:		(118 700)	(246 511)
Dividend paid		(113 339)	(115 025)
Interest paid on bonds		-	(2 708)
Redemption of issued bonds		-	(120 000)
Settlement of a grant advance		-	(4 261)
Lease payments (interest)	0	(154)	(199)
Lease payments (principal)	0	(5 207)	(4 318)
Net increase in cash and cash equivalents		(227 095)	77 150
Impact of fx rates on cash balance in currencies		156	397
Cash and cash equivalents - opening balance	2.4.3.	378 641	349 324
Cash and cash equivalents - closing balance	2.4.3.	151 702	426 871

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

	Equity
	Share capital	Other reserves	Foreign exchange Retained translation earnings reserve		Total	Non controlling interests	Total equity
As at 1 January 2023	63 865	(11 941)	-	938 856	990 780	10 047	1 000 827
Dividend	-	-	-	(113 324)	(113 324)	(19)	(113 343)
Transactions with owners recognised directly in equity	-	-	-	(113 324)	(113 324)	(19)	(113 343)
Net profit for the nine months period ended 30 September 2023	-	-	-	111 262	111 262	1 326	112 588
Other comprehensive income	-	5 643	198	-	5 841	106	5 947
Comprehensive income for the nine months period ended 30 September 2023	-	5 643	198	111 262	117 103	1 432	118 535
Other changes	-	-	-	-	-	11	11
Increase of capital of a related company	-	-	-	-	-	11	11
As at 30 September 2023 (unaudited)	63 865	(6 298)	198	936 794	994 559	11 471	1 006 030

	Share capital	Other reserves	Foreign exchange translation reserve	Retained earnings	Total	Non controlling interests	Total equity
As at 1 January 2022	63 865	(5 557)	-	908 903	967 211	646	967 857
Dividend	-	-	-	(115 003)	(115 003)	(28)	(115 031)
Transactions with owners recognised directly in equity	-	-	-	(115 003)	(115 003)	(28)	(115 031)
Net profit for year ended 31 December 2022	-	-	-	144 956	144 956	20	144 976
Other comprehensive income	-	(6 384)	-	-	(6 384)	-	(6 384)
Comprehensive income for year ended 31 December 2022	-	(6 384)	-	144 956	138 572	20	138 592
Other changes	-	-		-	-	9 409	9 409
Obtaining control over subsidiaries	-	-	-	-	-	9 409	9 409
As at 31 December 2022	63 865	(11 941)	-	938 856	990 780	10 047	1 000 827

	Share capital	Other reserves	Foreign exchange translation reserve	Retained earnings	Total	Non controlling interests	Total equity
As at 1 January 2022	63 865	(5 557)	-	908 903	967 211	646	967 857
Dividend	-	-	-	(115 003)	(115 003)	(28)	(115 031)
Transactions with owners recognised directly in equity	-	-	-	(115 003)	(115 003)	(28)	(115 031)
Net profit for the nine months period ended 30 September 2022	-	-	-	107 254	107 254	8	107 262
Other comprehensive income	-	(7 055)	-	-	(7 055)	-	(7 055)
Comprehensive income for the nine months period ended 30 September 2022	-	(7 055)		107 254	100 199	8	100 207
As at 30 September 2022 (unaudited)	63 865	(12 612)	-	901 154	952 407	626	953 033

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

1. GENERAL INFORMATION, BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS, ACCOUNTING POLICIES

1.1. LEGAL STATUS

The parent entity of the Giełda Papierów Wartościowych w Warszawie S.A. Group ("the Group", "the GPW Group") is Giełda Papierów Wartościowych w Warszawie Spółka Akcyjna ("the Warsaw Stock Exchange", "the Exchange", "GPW", "the Company" or "Parent entity") with its registered office in Warsaw, ul. Książęca 4. The Company was established by Notarial Deed on 12 April 1991 and registered in the Commercial Court in Warsaw on 25 April 1991, entry no. KRS 0000082312, Tax Identification Number 526-025-09-72, Regon 012021984. GPW is a joint-stock company listed on GPW's Main Market since 9 November 2010. The Company has not changed its name or other identification details since the end of the previous reporting period.

1.2. SCOPE OF ACTIVITIES OF THE GROUP

The core activities of the Group include organising exchange trading in financial instruments and activities related to such trading. At the same time, the Group organises an alternative trading system and pursues activities in education, promotion and information concerning the capital market.

The Group operates the following markets:

• GPW Main Market: trade in equities, other equity-related financial instruments and other cash market instruments as well as derivatives;
• NewConnect: trade in equities and other equity-related financial instruments of small and medium-sized enterprises;
• Catalyst: trade in corporate, municipal, co-operative, Treasury and mortgage bonds operated by the Exchange and BondSpot S.A. ("BondSpot");
• Treasury BondSpot Poland: wholesale trade in Treasury bonds operated by BondSpot.

The Group also organises and operates trade on the markets operated by Towarowa Giełda Energii S.A. ("TGE") and InfoEngine S.A. ("IE", "InfoEngine"):

• Energy Market: trade in electricity on the Intra-Day Market, the Day-Ahead Market, the Commodity Forward Instruments Market, Electricity Auctions,
• Gas Market: trade in natural gas with physical delivery on the Intra-Day and Day-Ahead Market, the Commodity Forward Instruments Market, Gas Auctions,
• Property Rights Market: trade in property rights in certificates of origin of electricity from Renewable Energy Sources and energy efficiency,
• Financial Instruments Market: trade in CO2 emission allowances,
• Market Operator Platform: InfoEngine provides market operator services and balancing services to electricity traders, producers and large industrial customers,
• Agricultural Market: electronic platform of agricultural commodity trade operated by TGE and IRGiT,
• Organised Trading Facility ("OTF") comprising the following markets: Electricity Forwards Market, Gas Forwards Market and Property Rights Forwards Market, where financial instruments are traded.

The GPW Group also operates:

• Clearing House and Settlement System operated by Izba Rozliczeniowa Giełd Towarowych S.A. ("IRGiT") performing the functions of an exchange settlement system for transactions in exchange-traded commodities,
• Trade Operator and Balancing Entity services offered by InfoEngine (balancing involves the submission of power sale contracts for execution and clearing of non-balancing with the grid operator, i.e., differences between actual power production or consumption and power sale contracts accepted for execution),
• WIBID and WIBOR Reference Rates calculation and publication (they are used as benchmarks in financial contracts and instruments, including credit and bond contracts) operated by GPW Benchmark S.A. ("GPWB"),
• Provision and publication of indices and non-interest rate benchmarks including the Exchange Indices, TBSP.Index and CEEplus, operated by GPWB,
• Activity on the financial market in Armenia through interest in the Armenia Securities Exchange and the Central Depository of Armenia, covering the operations of the securities exchange and the securities depository,

Activities in education, promotion and information concerning the capital and commodity market.

1.3. APPROVAL OF THE FINANCIAL STATEMENTS

These Condensed Consolidated Interim Financial Statements were authorised for issuance by the Management Board of the Exchange on 9 November 2023.

1.4. COMPOSITION AND ACTIVITY OF THE GROUP

The Exchange and its following subsidiaries:

• Towarowa Giełda Energii S.A. ("TGE"), the parent entity of the Towarowa Giełda Energii S.A. Group ("TGE Group"), which includes TGE and: Izba Rozliczeniowa Giełd Towarowych S.A. ("IRGiT") and InfoEngine S.A. ("InfoEngine") - 100%,
• BondSpot S.A. ("BondSpot") 97.23%,
• GPW Benchmark S.A. ("GPWB") 100%,
• GPW Ventures ASI S.A. ("GPWV"), the parent entity of the GPW Ventures ASI S.A. Group ("GPWV Group") which includes GPWV and: GPW Ventures Asset Management Sp. z o.o. ("GPWV AM") and GPW Ventures SKA ("GPWV SKA") – 100%,
• GPW Tech S.A. ("GPWT") 100%,
• GPW Private Market S.A. 100%,
• GPW Logistics S.A. 95%,
• GPW DAI S.A. 100%,
• Armenia Securities Exchange OJSC ("AMX") 65.03% (company acquired on 27 December 2022 ), the parent entity of the AMX Group which includes AMX and: Central Depository of Armenia OJSC ("CDA") – 100% via AMX comprise the Warsaw Stock Exchange Group.

The following are the associates over which the Group exerts significant influence:

• Krajowy Depozyt Papierów Wartościowych S.A. ("KDPW"), the parent entity of the KDPW S.A. Group ("KDPW Group") – 33.33%,
• Centrum Giełdowe S.A. ("CG") 24.79%.

Polska Agencja Ratingowa S.A. ("PAR") is a joint venture in which the Group holds 35.86%.

Increase of the share capital of GPW Private Market S.A.

On 23 March 2023, the General Meeting of GPW Private Market S.A. adopted a resolution to increase the share capital by PLN 3,600 thousand as a result of the issue of 3,600,000 series C ordinary registered shares with a nominal value and an issue price of PLN 1. The shares were fully taken up by GPW.

Increase of the share capital of GPW Logistics S.A.

On 24 February 2023, the Extraordinary General Meeting of GPW Logistics S.A. adopted a resolution to increase the share capital by PLN 10,527 as a result of the issue of 10,527 series C ordinary registered shares with a nominal value of PLN 1. The shares were fully taken up by KGHM Polska Miedź S.A.

Increase of the share capital of GPW DAI S.A.

On 26 June 2023, the Extraordinary General Meeting of GPW DAI S.A. adopted a resolution to increase the share capital by PLN 50,000 as a result of the issue of 50,000 series B ordinary registered shares with a nominal value of PLN 1. The shares were fully taken up by GPW.

1.5. STATEMENT OF COMPLIANCE

These Condensed Consolidated Interim Financial Statements of the Giełda Papierów Wartościowych w Warszawie S.A. Group have been prepared according to the International Accounting Standard 34 "Interim Financial Reporting" approved by the European Union. These Financial Statements do not contain all information required of complete financial statements prepared under the International Financial Reporting Standards adopted by the European Union ("EU IFRS" 1).

In the opinion of the Management Board of the Parent entity, in the notes to the Condensed Consolidated Interim Financial Statements of the Giełda Papierów Wartościowych w Warszawie S.A. Group, the Company included all material information

¹ The International Accounting Standards, the International Financial Reporting Standards and related interpretations published in Regulations of the European Commission.

necessary for the proper assessment of the assets and the financial position of the Group as at 30 September 2023 and its financial results in the period from 1 January 2023 to 30 September 2023.

These Condensed Consolidated Interim Financial Statements have been prepared on the assumption that the Group will continue as a going concern in the foreseeable future. As at the date of preparation of these Condensed Consolidated Interim Financial Statements, in the opinion of the Management Board of the parent entity, there are no circumstances indicating any threats to the Group's ability to continue operations.

The Group has prepared the Condensed Consolidated Interim Financial Statements in accordance with the same accounting policies as those described in the Consolidated Financial Statements for the year ended 31 December 2022 other than for changes resulting from the application of new standards as described below. The Condensed Consolidated Interim Financial Statements for the nine-month period ended 30 September 2023 should be read in conjunction with the Consolidated Financial Statements of the Group for the year ended 31 December 2022.

The following standards and amendments of existing standards adopted by the European Union are effective for the financial statements of the Group for the financial year started on 1 January 2023:

• Amendment to IAS 1 Presentation of Financial Statements, Practice Statement IFRS 2 Disclosure of Accounting Policies;
• Amendment to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors: Definition of Accounting Estimates;
• IFRS 17 Insurance Contracts (including Amendment to IFRS 17 (published on 25 June 2020) and Amendment to IFRS 17 Insurance Contracts: Initial Application of IFRS 17 and IFRS 9 – Comparative Information (published on 9 December 2021);
• Amendment to IAS 12 Income Tax Deferred Tax related to Assets and Liabilities arising from a Single Transaction.

Those amendments to the International Financial Reporting Standards had no significant impact on data presented in these condensed consolidated interim financial statements.

Amendments to IAS 1 Presentation of Financial Statements – presentation of liabilities as current or non-current, Amendment to IAS 1 Presentation of Financial Statements – Non-current Liabilities with Covenants, Amendment to IFRS 16 Leases – Lease Liability in a Sale and Leaseback, and Amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures – supplier finance arrangements have not been adopted by the European Union and have not yet entered into force for annual periods starting on 1 January 2023.

Those standards and interpretations are not applicable to the activities of the Group or have no significant impact on the consolidated financial statements of the Group.

The Group intends to apply amendments to the standards as of their effective date.

2. NOTES TO THE STATEMENT OF FINANCIAL POSITION

2.1. PROPERTY, PLANT AND EQUIPMENT

	Nine months period ended 30 September 2023 (unaudited)
	Land and buildings	Vehicles and machinery	Furniture, fittings and equipment	Property, plant and equipment under construction	Total
Net carrying amount - opening balance	69 501	28 499	1 318	8 287	107 605
Additions (+)	495	12 620	1 350	3 459	17 924
Purchase and modernisation	114	5 736	1 339	3 459	10 648
Transfer to PPE from Assets under construction	381	6 884	-	-	7 265
Other changes	-	-	11	-	11
Disposals (-)	(2 470)	(9 441)	(727)	(7 265)	(19 903)
gross carrying amount (-)	(223)	(38)	(24)	-	(285)
accumulated depreciation (+)	223	38	24	-	285
Transfer from Assets under construction	-	-	-	(7 265)	(7 265)
Changes of presentation	(1)	-	1	-	-
Depreciation charge*	(2 469)	(9 441)	(728)	-	(12 638)
Differences on foreign currency translation of subsidiaries (+)/(-)		-	23		23
Net carrying amount - closing balance	67 526	31 678	1 964	4 481	105 649
As at 30 September 2023 (unaudited)
Gross carrying amount	130 806	143 136	9 908	4 481	288 331
Accumulated depreciation	(63 280)	(111 458)	(7 944)	-	(182 682)
Net carrying amount	67 526	31 678	1 964	4 481	105 649

* Depreciation of PLN 3028 thousand is capitalised to intangible assets (development work)

	Year ended 31 December 2022
	Land and buildings	Vehicles and machinery	Furniture, fittings and equipment	Property, plant and equipment under construction	Total
Net carrying amount - opening balance	72 320	16 528	383	2 656	91 887
Additions (+)	550	20 988	1 243	12 076	34 857
Purchase and modernisation	496	14 451	258	12 076	27 281
Transfer to PPE from Assets under construction	54	6 392	-	-	6 446
Obtaining control over subsidiaries	-	145	985	-	1 130
Disposals (-)	(3 369)	(9 017)	(308)	(6 445)	(19 139)
Transfer from Assets under construction	-	-	-	(6 446)	(6 446)
Depreciation charge* Other changes	(3 301) (68)	(9 017) -	(293) (15)	- 1	(12 611) (82)
Net carrying amount - closing balance	69 501	28 499	1 318	8 287	107 605
As at 31 December 2022
Gross carrying amount Accumulated depreciation	130 535 (61 034)	130 554 (102 055)	8 558 (7 240)	8 287 -	277 934 (170 329)
Net carrying amount	69 501	28 499	1 318	8 287	107 605

* Depreciation of PLN 1070 thousand is capitalised to intangible assets (development work)

Contracted investments in property, plant and equipment amounted to PLN 37 thousand as at 30 September 2023 and concerned purchase of IT hardware.

Contracted investments in plant, property and equipment amounted to PLN 3 thousand as at 31 December 2022 and concerned purchase of office furniture.

of the Giełda Papierów Wartościowych w Warszawie S.A Group

2.2. INTANGIBLE ASSETS

	Nine months period ended 30 September 2023 (unaudited)
	Licences	Copyrights	Know how	Goodwill	Development work	Perpetual usufruct of land	Intangible assets recognised in business combinations	Total
Net carrying amount - opening balance	35 136	2 660	3 963	157 669	65 815	5 731	11 918	282 892
Additions (+)	3 624	139	-	-	35 087	-	-	38 850
Purchase and modernisation	288	139	-	-	29 568	-	-	29 995
Capitalised depreciation	-	-	-	-	5 519	-	-	5 519
Transfer to Intangibles form Development work (+)	3 336	-	-	-	-	-	-	3 336
Disposals (-)	(10 584)	(275)	(407)	-	(3 337)	(61)	(580)	(15 244)
Transfer from Development work (-)	-	-	-	-	(3 336)	-	-	(3 336)
Amortisation charge*	(10 584)	(275)	(407)	-	-	(61)	(580)	(11 907)
Other changes	-	-	-	-	(1)	-	-	(1)
Differences on foreign currency translation of subsidiaries (+)/(-)	5	7	-	-	-	-	(1)	11
Net carrying amount - closing balance	28 181	2 531	3 556	157 669	97 565	5 670	11 337	306 509
As at 30 September 2023 (unaudited)
Gross carrying amount	257 816	9 934	6 498	172 429	97 611	5 973	11 917	562 178
Impairment	-	-	-	(14 760)	(46)	-	-	(14 806)
Accumulated amortisation	(229 635)	(7 403)	(2 942)	-	-	(303)	(580)	(240 863)
Net carrying amount	28 181	2 531	3 556	157 669	97 565	5 670	11 337	306 509

* Amortisation of PLN 2490 thousand is capitalised to intangible assets (development work)

Year ended 31 December 2022
Licences	Copyrights	Know how	Goodwill	Development work	Perpetual usufruct of land	Intangible assets recognised in business combinations	Total
44 299	2 445	4 352	167 446	39 669	5 811	-	264 022
							53 044
6 910	135	4	55	27 611	-	-	34 715
-	-	-	-	2 072	-	-	2 072
3 225	-	178	-	-	-	-	3 403
492	444	-	-	-	-	11 918	12 854
(19 790)	(364)	(571)	(9 832)	(3 537)	(80)	-	(34 174)
-	-	-	-	(3 403)	-	-	(3 403)
-	-	-	(9 832)	(46)	-	-	(9 878)
(19 790)	(364)	(571)	-	-	(80)	-	(20 805)
-	-	-	-	(88)	-	-	(88)
35 136	2 660	3 963	157 669	65 815	5 731	11 918	282 892
254 187	9 788	6 498	172 429	65 861	5 973	11 918	526 654
-	-	-	(14 760)	(46)	-	-	(14 806)
(219 051)	(7 128)	(2 535)	-	-	(242)	-	(228 956)
35 136	2 660	3 963	157 669	65 815	5 731	11 918	282 892
	10 627	579	182	55	29 683	-	11 918

* Amortisation of PLN 1002 thousand is capitalised to intangible assets (development work)

Details of capitalised development costs are presented in Note 5.4.

Contracted investments in intangible assets amounted to PLN 306 thousand as at 30 September 2023 and concerned mainly the investment in the WATS system, the POB information exchange support system and work on the margin netting project (contracted investments in intangible assets amounted to PLN 1,473 thousand as at 31 December 2022 and concerned mainly modernisation of the integration layer in the New Market Image project and development of the WIBIX system).

Impairment of goodwill

Indications of impairment of goodwill recognised in these financial statements were reviewed as at 30 September 2023. No indications were identified that would require an impairment test.

2.3. INVESTMENT IN ENTITIES MEASURED BY THE EQUITY METHOD

The entities measured by the equity method included:

• Krajowy Depozyt Papierów Wartościowych S.A. ("KDPW") (parent entity of the KDPW Group),
• Centrum Giełdowe S.A. ("CG"),
• Polska Agencja Ratingowa S.A. ("PAR").

As a result of the recognition of impairment of the investment in PAR at PLN 583 thousand as at 30 September 2020, the value of the investment in PAR was equal to nil in the Group's consolidated statement of financial position as at 30 September 2023 and as at 31 December 2022.

A loan granted by the Exchange to PAR is disclosed in Note 5.1.2.

	Nine months period ended 30 September 2023 (unaudited)	Year ended 31 December 2022
Opening balance	241 313	230 825
Dividends due to GPW S.A.	(8 088)	(10 556)
Share of net profit/(loss)	24 299	28 485
Other increase/(decrease) of profit	(529)	(230)
Total Group share of profit/(loss) after tax	23 770	28 255
Share in other comprehensive income	5 130	(7 211)
Closing balance	262 125	241 313

	As at
	30 September 2023 (unaudited)	31 December 2022
Grupa Kapitałowa KDPW S.A.	246 521	224 801
Centrum Giełdowe S.A.	15 604	16 512
Polska Agencja Ratingowa S.A.	-	-
Total carrying amount of entities measured by equity method	262 125	241 313

2.4. FINANCIAL ASSETS

2.4.1. TRADE RECEIVABLES AND OTHER RECEIVABLES

	As at
	30 September 2023 (unaudited)	31 December 2022
Gross trade receivables	47 656	48 846
Impairment allowances for trade receivables	(4 163)	(4 009)
Total trade receivables	43 493	44 837
Current prepayments	13 893	7 243
VAT refund receivable	749	10 012
Other public and legal receivables Sublease receivables	49 269	- 12
Grants receivable	6 371	3 889
Other receivables	5 334	13 355
Total other receivables	26 665	34 511
Total trade receivables and other receivables	70 158	79 348

In the opinion of the Exchange Management Board, in view of the short due date of trade receivables, the carrying amount of those receivables is similar to their fair value.

2.4.2. FINANCIAL ASSETS MEASURED AT AMORTISED COST

	As at
	30 September 2023 (unaudited)	31 December 2022
Corporate bonds	43 012	53 737
Bank deposits	209 338	-
Other assets	-	10 273
Total current	252 350	64 010
Allowance for losses on debt instruments measured at amortised cost	(159)	(46)
Total financial assets measured at amortised cost	252 191	63 964

The carrying amount of financial assets measured at amortised cost is close to their fair value.

2.4.3. CASH AND CASH EQUIVALENTS

	As at
	30 September 2023 (unaudited)	31 December 2022
Current accounts (other)	97 344	114 844
VAT current accounts (split payment)	110	604
Bank deposits	54 364	263 430
Expected credit loss	(116)	(237)
Total cash and cash equivalents	151 702	378 641

Cash and cash equivalents include current accounts and short-term bank deposits (up to 3 months). The carrying amount of short-term bank deposits and current accounts is close to the fair value in view of their short maturity.

At the commencement of the projects: New Trading System, GPW Data, GPW Private Market, TeO, PCOL and Gospostrateg (see Note 5.4), the Group opened dedicated banks accounts for each of those projects. The total balance in those accounts was PLN 4,026 thousand as at 30 September 2023 (PLN 7,698 thousand as at 31 December 2022). Cash in such accounts is classified as restricted cash.

Cash in VAT accounts at PLN 110 thousand (PLN 604 thousand as at 31 December 2022) is also restricted cash due to regulatory restrictions on the availability of cash in such accounts for current payments.

2.5. CHANGE OF ESTIMATES

In the period from 1 January 2023 to 30 September 2023, impairment losses for trade receivables were adjusted as follows:

	Nine months period ended
	30 September 2023 (unaudited)	31 December 2022
Opening balance	4 009	4 516
Creating a write-off	1 569	1 453
Dissolution of the write-off	(944)	(2 018)
Utilisation of the write-off	(1)	(39)
Increase due to business combination	-	102
Receivables written off during the period as uncollectible	(470)	(5)
Closing balance	4 163	4 009

In the period from 1 January 2023 to 30 September 2023, there were the following changes in estimates:

• provisions against employee benefits were reduced by PLN 2,440 thousand (provisions set up at PLN 24,956 thousand, provisions used at PLN 20,976 thousand and provisions released at PLN 6,340 thousand);
• provisions against interest on a VAT correction were increased by PLN 4,096 thousand (see Note 5.9).

2.6. CONTRACT LIABILITIES

Contract liabilities include liabilities to provide services against annual fees charged from market participants and data vendors, which are recognised over time, as well as fees for the introduction of financial instruments to trading.

	As at
	30 September 2023 (unaudited)	31 December 2022
Listing	7 533	7 048
Total financial market	7 533	7 048
Other revenue	141	228
Total non-current	7 674	7 276
Trading	380	730
Listing	6 951	3 182
Information services and revenue from the calculation of reference rates	6 828	-
Total financial market	14 159	3 912
Trading	3 336	249
Total commodity market	3 336	249
Other revenue	542	245
Total current	18 037	4 406
Total contract liabilities	25 711	11 682

The year-to-date increase of contract liabilities as at 30 September 2023 was due to pro-rata distribution over time of annual fees invoiced by the Group in the first days of the financial year.

2.7. ACCRUALS AND DEFERRED INCOME

Accruals and deferred income include income of future periods from grants in the part relating to assets (the part of grants relating to incurred expenses is recognised in other income).

	As at
	30 September 2023 (unaudited)	31 December 2022
PCR project	3 326	3 537
Agricultural Market	146	316
New Trading System Project	22 510	19 753
GPWT Data Project	3 934	3 934
Telemetria Project	5 064	1 671
Private Market Project	1 367	814
Project PCOL Total non-current deferred income from grants PCR	2 152 38 499 280	874 30 899 280
Agricultural Market	226	226
Private Market	147	3 127
Gospostrateg Project	18	-
Total non-current deferred income from grants Other deferred liabilities Total other deferred liabilities	671 725 725	3 633 1 122 1 122
Total current	1 396	4 755
Total accruals and deferred income	39 895	35 654

As at 30 September 2023, the Group recognised over time the following deferred income:

• reimbursement of part of the PCR project expenses received from Polskie Sieci Energetyczne,
• revenue received from Krajowy Ośrodek Wsparcia Rolnictwa (National Centre for Agricultural Support, KOWR) in the Agricultural Market project,
• grant received from Narodowe Centrum Badań i Rozwoju (National Centre for Research and Development, NCBR) in the development of the New Trading System,
• grant received from Narodowe Centrum Badań i Rozwoju in the GPW Data project,
• grant received from Narodowe Centrum Badań i Rozwoju in the GPW Private Market project,
• grant received from Narodowe Centrum Badań i Rozwoju in the Telemetry project,
• grant received from Narodowe Centrum Badań i Rozwoju in the PCOL project,
• grant received from Narodowe Centrum Badań i Rozwoju in the Gospostrateg project.

Details of grants are presented in Note 5.4.

2.8. OTHER LIABILITIES

	As at
	30 September 2023 (unaudited)	31 December 2022
Liabilities to the Polish National Foundation	2 928	4 361
Perpetual usufruct liabilities	3 504	3 989
Liabilities due to the purchase of subsidiary	-	3 112
Other liabilities	3 881	-
Total non-current	10 313	11 462
Dividend payable	-	15
VAT payable	5 651	14 140
Liabilities in respect of other taxes	4 322	4 497
Contracted investments	1 495	8 558
Liabilities to the Polish National Foundation	1 401	1 371
Other liabilities	5 055	3 486
Total current	17 924	32 067
Total other liabilities	28 237	43 529

Other liabilities as at 30 September 2023 included mainly credits/debits with the tax office relating to current reporting periods and liabilities to the Polish National Foundation.

3. NOTES TO THE STATEMENT OF COMPREHENSIVE INCOME

3.1. INCOME TAX

	Three months ended 30 September (unaudited)		Nine months period ended 30 September (unaudited)
	2023	2022	2023	2022
Current income tax	2 559	2 616	24 504	27 400
Deferred tax	5 095	3 639	(1 276)	(3 626)
Total income tax	7 654	6 255	23 228	23 774

As required by the Polish tax regulations, the corporate income tax rate applicable in 2023 and 2022 is 19%.

of the Giełda Papierów Wartościowych w Warszawie S.A Group

	Three months ended 30 September (unaudited)		Nine months period ended 30 September (unaudited)
	2023	2022	2023	2022
Profit before income tax	47 747	37 397	135 816	131 036
Income tax rate	19%	19%	19%	19%
Income tax at the statutory tax rate	9 072	7 105	25 805	24 897
Tax effect of:	(1 418)	(851)	(2 577)	(1 123)
Non tax-deductible costs	726	160	1 194	1 974
Impairment of goodwill of a subsidiary	-	1 274	-	1 274
Non-taxable share of profit of entities measured by the equity method	(1 960)	(1 585)	(4 516)	(3 933)
Other adjustments	(184)	(699)	745	(438)
Total income tax	7 654	6 255	23 228	23 774

The Group established a Tax Group ("TG") in 2017. The Tax Group is comprised of the Exchange, TGE, BondSpot, and GPWB. As the Company Representing the Tax Group, GPW is responsible for the calculation and payment of mothly corporate income tax advances pursuant to the Corporate Income Tax Act.

4. NOTE TO THE STATEMENT OF CASH FLOWS

4.1. DEPRECIATION AND AMORTISATION

	Nine months period ended 30 September (unaudited)
	2023	2022
Depreciation of property, plant and equipment*	9 610	8 622
Amortisation of intangible assets**	9 417	15 174
Depreciation and amortisation of right-to-use assets	4 684	4 099
Total depreciation and amortisation charges	23 711	27 895

* In the nine months period ended in 30 September 2023, depreciation was reduced by depreciation capitalized to intangible assets of PLN 3028 thousand, and in nine months period ended in 30 September 2022, of PLN 463 thousand.

** In the nine months period ended in 30 September 2023, amortisation was reduced by amortisation capitalized to intangible assets of PLN 2490 thousand, and in nine months period ended in 30 September 2022, of PLN 63 thousand.

5. OTHER NOTES

5.1. RELATED PARTY TRANSACTIONS

Related parties of the Group include:

• the entities measured by the equity method,
• the State Treasury as the parent entity,
• entities controlled and jointly controlled by the State Treasury and entities over which the State Treasury has significant influence,
• members of the key management personnel of the Group.

5.1.1. INFORMATION ABOUT TRANSACTIONS WITH THE STATE TREASURY AND ENTITIES WHICH ARE RELATED PARTIES OF THE STATE TREASURY

Companies with a stake held by the State Treasury

The Group applies the exemption under IAS 24 Related Party Disclosures and keeps no records which would clearly identify and aggregate transactions with the State Treasury and all entities which are related parties of the State Treasury.

Companies with a stake held by the State Treasury which are parties to transactions with the Exchange include issuers (from which it charges introduction and listing fees) and Exchange Members (from which it charges fees for access to trade on the exchange market, fees for access to the IT systems, and fees for trade in financial instruments).

Companies with a stake held by the State Treasury, with which TGE and IRGiT enter into transactions, include members of the markets operated by TGE and members of the Clearing House. Fees are charged from such entities for participation

and for trade on the markets operated by TGE, for issuance and cancellation of property rights in certificates of origin, and for clearing.

All trade transactions with entities with a stake held by the State Treasury are concluded by the Group in the normal course of business and are carried out on an arm's length basis.

Polish Financial Supervision Authority ("PFSA")

The PFSA Chairperson publishes the rates and the indicators necessary to calculate capital market supervision fees by 31 August of each calendar year. On that basis, the entities obliged to pay the fee calculate the final amount of the annual fee due for the year and pay the fee by 30 September of the calendar year.

The fee for 2023 charged to the GPW Group's operating expenses in the first nine months of 2023 was PLN 15,479 thousand, equal to the annual 2023 fee.

The fee for 2022 charged to the Group's operating expenses in the first nine months of 2022 was PLN 14,765 thousand.

Tax Office

The Group is subject to taxation under Polish law and pays taxes to the State Treasury, which is a related party. The rules and regulations applicable to the Group are the same as those applicable to other entities which are not related parties of the State Treasury.

Polish National Foundation

As one of the founders of the Polish National Foundation ("PFN"), established in 2016 by 17 state-owned companies, the Exchange is obliged to make an annual contribution towards the statutory activities of PFN in the form of 11 annual payments starting from the date of establishment of the Foundation. This liability was recognised in 2016 costs and is accrued over time. As at 30 September 2023, the liability of the Exchange to PFN amounted to PLN 4,329 thousand (31 December 2022: PLN 5,732 thousand).

5.1.2. TRANSACTIONS WITH ENTITIES MEASURED BY THE EQUITY METHOD

Dividend

Dividends paid by associates to the Group stood at PLN 8,088 thousand in the nine-month period ended 30 September 2023 (PLN 10,556 thousand in the nine-month period ended 30 September 2022).

On 5 June 2023, the Annual General Meeting of CG decided to allocate a part of the profit equal to PLN 1,683 thousand to a dividend payment. The dividend attributable to GPW was PLN 417 thousand. GPW also received a dividend for previous years at PLN 496 thousand. The dividend was paid on 13 June 2023.

On 1 June 2023, the Annual General Meeting of KDPW decided to allocate a part of the profit equal to PLN 21,525 thousand to a dividend payment. The dividend attributable to GPW was PLN 7,175 thousand. The dividend payment date was set at 5 September 2023.

Loans and advances

The joint venture PAR repaid in full the liability under the loan to GPW on 11 July 2023. In view to PAR's repayment of the loan, the allowance set up for the loan was reversed in the period and financial income of PLN 576 thousand was recognised.

Space lease

As owner and lessee of space in the Centrum Giełdowe building, the Exchange pays rent and maintenance charges for office space to the building manager, Centrum Giełdowe S.A. Transactions with the KDPW Group concerned services related to trade reporting and securities services. Transactions with PAR concerned the rental of office space and related fees.

	As at 30 September 2023 (unaudited)		Nine months period ended 30 September 2023 (unaudited)
	Receivables	Trade payables and other liabilities		Expenses
KDPW Group:	-	-	69	112
other	-	-	69	112
Centrum Giełdowe:	-	7 050	-	3 100
leases	-	7 027	-	1 932
other	-	23	-	1 168
PAR:	6	-	86	17
leases	-	-	28	-
other	6	-	58	17
Total	6	7 050	155	3 229

of the Giełda Papierów Wartościowych w Warszawie S.A Group

	As at 31 December 2022		Year ended 31 December 2022
	Receivables	Trade payables and other liabilities	Sales revenue or sublease interest	Expenses
KDPW Group:	53	-	132	120
other	53	-	132	120
Centrum Giełdowe:	-	2 500	-	4 581
leases	-	2 188	-	2 329
other	-	312	-	2 252
PAR:	5	10	84	40
leases	-	-	1	-
other	5	10	83	40
Total	58	2 510	216	4 741

Receivables from associates and joint ventures were not provided for or written off as uncollectible in the nine months of 2023 and 2022.

5.1.3. OTHER TRANSACTIONS

Transactions with the key management personnel

The Group entered into no transactions with the key management personnel as at 30 September 2023 and as at 31 December 2022 other than those listed in Note 5.2.

Książęca 4 Street Tenants Association

In 2023 and 2022, the Exchange concluded transactions with the Książęca 4 Street Tenants Association of which it is a member. The expenses amounted to PLN 3,918 thousand in the nine-month period ended 30 September 2023 and PLN 3,871 thousand in the nine-month period ended 30 September 2022.

GPW Foundation

In the nine months of 2023, GPW made donations to the GPW Foundation at PLN 1,245 thousand (in the nine months of 2022 – PLN 2,250 thousand), received an income of PLN 116 thousand from the Foundation (in the nine months of 2022 – PLN 78 thousand), and paid costs to the Foundation at PLN 8 thousand (in the nine months of 2022 – PLN 2 thousand). As at 30 September 2023, the Exchange's receivables from the GPW Foundation stood at PLN 25 thousand (as at 31 December 2022 – PLN 16 thousand) and the Exchange had no payables to the Foundation (as at 31 December 2022 – PLN 0 thousand).

5.2. INFORMATION ON REMUNERATION AND BENEFITS OF THE KEY MANAGEMENT PERSONNEL

The data presented in the table below are for all (current and former) members of the Exchange Management Board and the Exchange Supervisory Board, the Management Boards and the Supervisory Boards of the subsidiaries who were in office in the three-month and the six-month period ended 30 September 2023 and 30 September 2022, respectively.

The table concerning remuneration of the key management personnel does not present social security contributions paid by the employer.

	Three months ended 30 September (unaudited)		Nine months period ended 30 September (unaudited)
	2023	2022	2023	2022
Base salary	648	388	1 945	1 195
Variable pay	332	535	1 447	1 402
Other benefits	136	27	203	109
Benefits after termination	-	170	34	170
Total remuneration of the Exchange Management Board	1 116	1 120	3 629	2 876
Remuneration of the Exchange Supervisory Board	204	149	673	448
Remuneration of the Management Boards of other GPW Group companies	2 749	922	6 141	3 018
Remuneration of the Supervisory Boards of other GPW Group companies	234	208	901	673
Total remuneration of the key management personnel	4 303	2 399	11 344	7 015

As at 30 September 2023, unpaid bonuses and variable remuneration of the key management personnel stood at PLN 6,513 thousand including bonuses and remuneration for 2022-2023. The cost was shown in the consolidated statements of comprehensive income for 2022-2023.

As at 30 September 2022, unpaid bonuses and variable remuneration of the key management personnel stood at PLN 5,449 thousand including bonuses and remuneration for 2017-2022. The cost was shown in the consolidated statements of comprehensive income for 2017-2021.

5.3. DIVIDEND

As required by the Commercial Companies Code, the amounts to be divided between the shareholders may not exceed the net profit reported for the last financial year plus retained earnings, less accumulated losses and amounts transferred to reserves that are established in accordance with the law or the Articles of Association that may not be earmarked for the payment of dividend.

On 26 June 2023, the Annual General Meeting of the Exchange passed a resolution to distribute the Company's profit for 2022, including a dividend payment of PLN 113,324 thousand. The dividend per share was PLN 2.70. The dividend record date was 24 July 2023 and the dividend payment date was 7 August 2023. The dividend due to the State Treasury was PLN 39,675 thousand.

On 23 June 2022, the Annual General Meeting of the Exchange passed a resolution to distribute the Company's profit for 2021, including a dividend payment of PLN 115,003 thousand. The dividend per share was PLN 2.74. The dividend record date was 25 July 2022 and the dividend payment date was 5 August 2022. The dividend due to the State Treasury was PLN 40,266 thousand.

5.4. GRANTS

New Trading System

The New Trading System is a development project of a new trading platform which will in the future help to reduce transaction costs and offer new functionalities and types of orders for Exchange Members, issuers and investors. The system will provide superior reliability and security according to advanced technical parameters.

GPW Data

The GPW Data project is an innovative Artificial Intelligence system supporting investment decisions of capital market participants. The core of the system is a repository of a broad range of structured exchange data. Such information will support investments on the capital market based on classical and innovative analysis models.

GPW Private Market

On 23 September 2020, acting as the leader of a consortium comprised of the Silesian University of Technology and VRTechnology sp. z o.o., GPW signed a co-financing agreement with the National Centre for Research and Development for the project "Development of an innovative blockchain platform".

The objective of the project is to develop a platform for the issuance of tokens representing digital rights (digital assets). The platform will also support trade in such assets.

Telemetry ("TeO")

On 4 October 2021, GPW signed an agreement with the National Centre for Research and Development ("NCBiR") to co-finance work related to the development of the TeO system - a multi-module auction platform designed for comprehensive handling of media market transactions.

The aim of the project is to develop an innovative TeO Platform. The new solution will be designed to profile TV users and sell and display targeted advertising on linear TV.

Polish Digital Logistics Operator ("PCOL")

On 4 November 2021, GPW signed an agreement with the National Centre for Research and Development to co-finance the Polish Digital Logistics Operator ("PCOL") project.

PCOL is a project for an innovative logistics platform based on artificial intelligence to optimise costs in areas related to transport and logistics services for State-owned companies as well as private companies which will in the future use the services and solutions offered. The grant will be used to finance research and development work related primarily to the development of innovative technologies based on artificial intelligence.

Gospostrateg

On 27 October 2021, as a member of a consortium comprising the Mazowieckie Voivodeship as Leader and the Warsaw School of Economics, GPW concluded an agreement with the National Centre for Research and Development for the implementation of the Gospostrateg project.

The main objective of the project is to transform the Mazowieckie Voivodeship into an accelerator of global enterprises by building a knowledge repository of key global markets and developing and implementing an effective model of co-operation between administration, science and business taking into account the conditions of the Mazowieckie Voivodeship.

The table below provides key information on the amount of the grants received by project:

	As at/for the period ended 30 September 2023
	Planned total budget (PLN million)	Value of grants awarded (PLN million)	Value of grants received in 2023 (PLN thousand)	Amount recognised in income (PLN thousand)	Amount included in Accruals and deferred income (PLN thousand)
New Trading System Project	90,0	29,2	3 300	370	22 510
GPWT Data Project	8,3	4,2	-	-	3 934
Private Market Project	15,6	2,8	177	-	1 514
Telemetria Project	33,6	13,3	946	-	5 064
Project PCOL	19,7	5,1	2 310	1 259	2 152
Gospostrateg Project	0,4	0,3	98	62	18
Total	167,6	54,9	6 831	1 691	35 192

5.5. SEASONALITY

The activity of the Group shows no significant seasonality except for the revenue from the commodity market which shows seasonality during the year (the revenue of the first and last months of the year is higher than the revenue for the other quarters of the year). Stock prices and turnover depend largely on local, regional, and global trends impacting the capital markets, which makes revenue from the financial market cyclical.

5.6. SEGMENT REPORTING

Segment information is disclosed in these Financial Statements based on components of the entity which are monitored by the Group's chief decision maker (Exchange Management Board) to make operating decisions. The presentation of financial data by operating segment is consistent with the management approach at Group level. The Group's business segments focus their activities on the territory of Poland.

The two main reporting segments are the financial segment and the commodity segment.

The financial segment covers the activity of the Group including organising trade in financial instruments on the exchange and in the alternative trading system as well as related activities: trading, listing, information services.

The commodity segment covers the activity of the Group including organising trade in commodities on the exchange as well as related activities: trading, operation of the Register of Certificates of Origin of electricity, the CO2 Emissions Allowances market, clearing, the operation of a clearing house and a settlement system, the activity of a trade operator and the entity responsible for trade balancing, information services.

The accounting policies for the business segments are the same as the accounting policies of the GPW Group.

The tables below present a reconciliation of the data analysed by the Exchange Management Board with the data shown in these Financial Statements.

of the Giełda Papierów Wartościowych w Warszawie S.A Group

	Nine months period ended 30 September 2023 (unaudited)
	Financial segment	Commodity segment	Other	Total segments	Exclusions and adjustments	Total segments and exclusions
Sales revenue:	205 078	117 372	26 499	348 949	(19 926)	329 023
To third parties	198 097	116 673	14 253	329 023	-	329 023
Between segments	6 981	699	12 246	19 926	(19 926)	-
Operating expenses, including:	(173 783)	(65 193)	(16 503)	(255 479)	19 653	(235 826)
depreciation and amortisation	(17 504)	(5 951)	(376)	(23 831)	120	(23 711)
Profit/(loss) on sales	31 295	52 179	9 996	93 470	(273)	93 197
Loss on impairment of receivables	(604)	214	16	(374)	-	(374)
Other income	4 545	649	58	5 252	(1 476)	3 776
Other expenses	(1 825)	(138)	(51)	(2 014)	242	(1 772)
Operating profit (loss)	33 411	52 904	10 019	96 334	(1 507)	94 827
Financial income, including:	74 031	34 235	452	108 718	(85 752)	22 966
interest income	9 012	11 845	377	21 234	(140)	21 094
dividend income	63 448	22 111	-	85 559	(85 559)	-
Financial expenses, including:	(788)	(4 779)	(163)	(5 730)	(17)	(5 747)
interest cost	(437)	(220)	(41)	(698)	306	(392)
VAT provision	-	(4 096)	-	(4 096)	-	(4 096)
Share of profit/(loss) of entities measured by equity method	-	-	-	-	23 770	23 770
Profit before income tax	106 654	82 360	10 308	199 322	(63 506)	135 816
Income tax	(17 788)	(5 564)	103	(23 249)	21	(23 228)
Net profit	88 866	76 796	10 411	176 073	(63 485)	112 588

		As at 30 September 2023 (unaudited)
	Financial segment	Commodity segment	Other	Total segments	Adjustments for investments measured by equity method	Other exclusions and adjustments	Total segments and exclusions
Total assets	766 737	334 304	22 116	1 123 157	250 473	(177 031)	1 196 599
Total liabilities	128 140	69 573	3 736	201 449	-	(10 880)	190 569
Net assets (assets - liabilities)	638 597	264 731	18 380	921 708	250 473	(166 151)	1 006 030

of the Giełda Papierów Wartościowych w Warszawie S.A Group

	Nine months period ended 30 September 2022 (unaudited)
	Financial segment	Commodity segment	Other	Total segments	Exclusions and adjustments	Total segments and exclusions
Sales revenue:	195 771	105 711	11 730	313 212	(15 455)	297 757
To third parties	190 335	105 157	2 265	297 757	-	297 757
Between segments	5 436	554	9 465	15 455	(15 455)	-
Operating expenses, including:	(144 447)	(58 896)	(2 493)	(205 836)	15 152	(190 684)
depreciation and amortisation	(20 616)	(7 816)	(112)	(28 544)	649	(27 895)
Profit/(loss) on sales	51 324	46 815	9 237	107 376	(303)	107 073
Loss on impairment of receivables	360	(6)	-	354	-	354
Other income	1 550	641	-	2 191	(840)	1 351
Other expenses	(3 607)	(101)	-	(3 708)	(6 336)	(10 044)
Operating profit (loss)	49 627	47 349	9 237	106 213	(7 479)	98 734
Financial income, including:	48 889	32 397	32	81 318	(63 390)	17 928
interest income	11 281	5 821	32	17 134	(323)	16 811
dividend income	36 469	26 539	-	63 008	(63 008)	-
Financial expenses, including:	(3 704)	(4 854)	(23)	(8 581)	2 253	(6 328)
interest cost	(3 743)	(535)	(6)	(4 284)	394	(3 890)
VAT provision	-	(3 270)	-	(3 270)	1 690	(1 580)
Share of profit/(loss) of entities measured by equity method	-	-	-	-	20 702	20 702
Profit before income tax	94 812	74 892	9 246	178 950	(47 914)	131 036
Income tax	(19 317)	(4 451)	(6)	(23 774)	-	(23 774)
Net profit	75 495	70 441	9 240	155 176	(47 914)	107 262

	As at 31 December 2022
	Financial segment	Commodity segment	Other	Total segments	Adjustments for investments measured by equity method	Other exclusions and adjustments	Total segments and exclusions
Total assets	750 983	352 558	17 470	1 121 011	229 661	(168 416)	1 182 256
Total liabilities	107 297	81 397	1 783	190 477	-	(9 048)	181 429
Net assets (assets - liabilities)	643 686	271 161	15 687	930 534	229 661	(159 368)	1 000 827

of the Giełda Papierów Wartościowych w Warszawie S.A Group

	Three months ended 30 September 2023 (unaudited)
	Financial segment	Commodity segment	Other	Total segments	Exclusions and adjustments	Total segments and exclusions
Sales revenue:	72 997	35 824	4 374	113 195	(7 111)	106 084
To third parties	70 483	35 590	11	106 084	-	106 084
Between segments	2 514	234	4 363	7 111	(7 111)	-
Operating expenses, including:	(56 096)	(18 773)	(6 419)	(81 288)	6 687	(74 601)
depreciation and amortisation	(4 838)	(2 054)	(130)	(7 022)	41	(6 981)
Profit/(loss) on sales	16 901	17 051	(2 045)	31 907	(424)	31 483
Loss on impairment of receivables	(73)	340	16	283	-	283
Other income	1 109	-	44	1 153	(128)	1 025
Other expenses	(145)	(34)	(36)	(215)	97	(118)
Operating profit (loss)	17 792	17 357	(2 021)	33 128	(455)	32 673
Financial income, including:	3 043	3 475	183	6 701	(62)	6 639
interest income	2 000	3 462	108	5 570	(81)	5 489
Financial expenses, including:	(426)	(1 416)	(61)	(1 903)	19	(1 884)
interest cost	(251)	(68)	(29)	(348)	143	(205)
VAT provision	-	(1 320)	-	(1 320)	-	(1 320)
Share of profit/(loss) of entities measured by equity method	-	-	-	-	10 319	10 319
Profit before income tax	20 409	19 416	(1 899)	37 926	9 821	47 747
Income tax	(6 045)	(1 727)	118	(7 654)	-	(7 654)
Net profit	14 364	17 689	(1 781)	30 272	9 821	40 093

	Three months ended 30 September 2022 (unaudited)
	Financial segment	Commodity segment	Other	Total segments	Exclusions and adjustments	Total segments and exclusions
Sales revenue:	59 936	30 014	3 871	93 821	(5 378)	88 443
To third parties	57 960	29 821	662	88 443	-	88 443
Between segments	1 976	193	3 209	5 378	(5 378)	-
Operating expenses, including:	(47 529)	(16 482)	(912)	(64 923)	5 589	(59 334)
depreciation and amortisation	(6 681)	(2 125)	(38)	(8 844)	200	(8 644)
Profit/(loss) on sales	12 407	13 532	2 959	28 898	211	29 109
Loss on impairment of receivables	30	59	-	89	-	89
Other income	472	189	-	661	(277)	384
Other expenses	(2 555)	(15)	-	(2 570)	(6 530)	(9 100)
Operating profit (loss)	10 354	13 765	2 959	27 078	(6 596)	20 482
Financial income, including:	5 473	3 227	28	8 728	30	8 758
interest income	4 857	3 224	28	8 109	91	8 200
dividend income	1	-	-	1	(1)	-
Financial expenses, including:	(910)	618	(1)	(293)	104	(189)
interest cost	(1 143)	(221)	(1)	(1 365)	(59)	(1 424)
VAT provision	-	1 405	-	1 405	-	1 405
Share of profit/(loss) of entities measured by equity method	-	-	-	-	8 346	8 346
Profit before income tax	14 917	17 610	2 986	35 513	1 884	37 397
Income tax	(4 757)	(1 458)	(4)	(6 219)	(36)	(6 255)
Net profit	10 160	16 152	2 982	29 294	1 848	31 142

5.7. ADDITIONAL INFORMATION CONCERNING THE OUTBREAK OF WAR IN UKRAINE

In February 2022, armed conflict broke out in Ukraine. In view of the impact of the conflict on the political and economic situation in Europe and the world, the GPW Group took into account the recommendations of the Polish Financial Supervision Authority issued on 2 March 2022 for issuers of securities and carried out an analysis of the impact of the war on current operations and on the ability of the GPW Group companies to continue as a going concern in the next 12 months.

As the GPW Group companies do not have business operations in Russia and Ukraine, the war in this region does not directly affect the presented and future financial results of the Group. The Group's financial results may be affected by the situation on the gas and electricity market in connection with the operation of a commodity exchange for the trading of these commodities.

The GPW Group analysed the depreciation rates for property, plant and equipment and intangible assets applied to assets held as at 30 September 2023 and identified no need to change the estimates used.

The Group considers that the outbreak of war did not affect the judgements made in the measurement of lease liabilities or the existing classification of financial assets under IFRS 9.

As at 30 September 2023, the GPW Group held PLN 403.9 million of cash and cash equivalents and short-term financial assets in the form of bank deposits and guaranteed corporate bonds. These represent sufficient financial resources to conclude that the Group's liquidity risk in the short to medium term is low.

The Group does not hold any material foreign currency assets and therefore exchange rate fluctuations due to uncertainty in the foreign exchange markets would be immaterial to the financial statements.

The GPW Group monitors the amount of trade receivables on an ongoing basis, especially trade receivables from counterparties related to parties involved in the armed conflict. As at 30 September 2023, no significant receivables were identified in this group of counterparties.

Details of the identified risks related to the pandemic and the outbreak of the armed conflict in Ukraine on the Company's and the Group's operations and financial position are presented in Note 2.7 to the Management Board Report on the Activity of the Parent Company and the Warsaw Stock Exchange Group for 2022 and in Note 7.1 to the Interim Report of the Warsaw Stock Exchange Group for the nine months of 2023.

The Exchange Management Board and the Management Boards of the Group companies monitor the situation related to the above-mentioned factors on an ongoing basis and will take appropriate action, including informing the market, if new factors emerge that could have a material impact on the GPW Group's operations and financial results.

In the opinion of the GPW Management Board, at the time of publication of this report, the Group has not identified any material uncertainties relating to events or circumstances that might cast significant doubt on its ability to continue as a going concern. The prolonged conflict, actions taken by the Polish government, the European Union authorities and NATO, and the related uncertainty on the financial markets may affect the operations and financial results of the GPW Group companies in the future. As at the date of publication of this report, it is not possible to estimate that impact.

5.8. CONTINGENT LIABILITIES

5.8.1. CONTINGENT LIABILITIES

In connection with the implementation of the projects New Trading System, GPW Data, GPW Private Market, TeO and PCOL, the Exchange presented five own blank bills of exchange to NCBR securing obligations under the projects' co-financing agreements. According to the agreements and the bill-of-exchange declarations, NCBR may complete the bills of exchange with the amount of provided co-financing which may be subject to refunding, together with interest accrued at the statutory rate of overdue taxes from the date of transfer of the amount to the Exchange's account to the day of repayment (separate for each project). NCBR may also complete the bills of exchange with the payment date and insert a "no protest" clause. The bills of exchange may be completed upon the fulfilment of conditions laid down in the co-financing agreement. Each of the bills of exchange shall be returned to the Exchange or destroyed after the project sustainability period defined in the project co-financing agreement.

As at 30 September 2023, the Group recognised a contingent liability in respect of an overdue VAT correction. Acting in the interest of GPW shareholders, pursuant to point 92 of IAS 37 Provisions, Contingent Liabilities and Contingent Assets, the Group is not disclosing the estimated amount of the potential payable (see: Note 5.9).

As at 30 September 2023, the Group held bank guarantees issued in favour of:

• NordPool in the amount of EUR 5.0 million effective to 16 June 2024,
• Slovenská Elektrizačná Prenosová Sústava (SEPS) in the amount of EUR 5.0 million effective to 30 June 2024,
• ČEPS in the amount of EUR 4.7 million effective to 30 June 2024,
• European Commodity Clearing AG (ECC) in the amount of EUR 5.5 million effective to 30 June 2024.

The Group also has an agreement with Santander Bank Polska S.A. concerning a guarantee limit up to EUR 90 million.

The Group guarantees the due performance by the subsidiary InfoEngine of its payment obligations under the Transmission Agreement concluded between InfoEngine and PSE. The amount of the guarantee is PLN 2.0 million.

5.8.2. TRANSACTIONS WITH IRL POLSKA SP. Z O.O.

The subsidiary IRGiT provides clearing and settlement of transactions in forward instruments on the electricity exchange market, to which IRL Polska Sp. z o.o. ("IRL") is a party. As a result of its failure to file VAT returns (JPK files), IRL was removed from the VAT taxpayer register. Between September 2022 and the end of March 2023, input VAT resulting from invoices issued in self-invoicing was not deducted by IRGiT. As a result of internal consultations, analysis of the regulations, and two opinions confirming the right to deduct input VAT, it was decided to submit corrections to the tax returns for the periods from September 2022 to March 2023, recognising the amounts of input VAT, and it was decided to settle on an ongoing basis, starting from April 2023, the input VAT from invoices issued by IRGiT on behalf of IRL in self-invoicing. IRGiT was reporting the amount of tax payable in the aforementioned period, and the VAT corrections resulted in an overpayment. Consequently, in addition to the corrections to the tax returns, IRGiT submitted applications for the declaration of overpayment for each of the corrected accounting periods.

As at 30 June 2023, the Group presented a VAT receivable of PLN 10.9 million under trade receivables and other receivables. As a result of overpayment claims submitted up to 30 September 2023, the Group was refunded VAT in full.

5.8.3. INDUSTRIAL DISPUTE AT GPW

On 1 June 2023, an industrial dispute arose with the Trade Union of Stock Exchange Employees ("ZZPG"). The dispute arose as a result of the refusal to comply with the demands of the ZZPG concerning, among others, the payment of an inflationary benefit at GPW, which for 2023 would amount to at least 15% of the annual gross base salary of GPW employees. The Company notified the competent district labour inspector that a dispute had arisen and entered into negotiations in good faith. On 4 July 2023, a record of divergence at the negotiation stage was drawn up.

Following mediation, the parties reached an agreement, which was concluded on 12 October 2023. Pursuant to the agreement, GPW paid employees a one-off inflation benefit equal to a percentage of gross annual base salary, depending on the employee's annual appraisal for 2022. As at 30 September 2023, a provision of PLN 3.1 million was set up for the benefit, which increased the costs of the period. The inflation benefit was paid on 18 October 2023.

5.9. UNCERTAINTY ABOUT VAT

In accordance with the GPW Group's tax risk management policy, tax accounts of all Group companies including IRGiT were subject of an annual tax review carried out by an independent tax advisor since 2017. In addition, following one such review, with a view to verification of tax risk identified in the review, the IRGiT Management Board requested independent advisors to provide an analysis concerning the time of origination of input VAT from transactions in electricity and gas deliveries and the time of origination of the right to deduct input VAT and to calculate potential impact on IRGiT's tax payable of a potential amendment of IRGiT's tax policy which follows the general rules concerning the time of origination of tax liabilities regarding output VAT and the direct application of Directive 112 to the extent of input VAT.

According to the provided opinions, IRGiT's tax policy may be considered correct in the light of EU law, in particular to the extent of input VAT, and considering the specificity of IRGiT's business in relation to output VAT. However, under the linguistic interpretation of applicable national tax law, such approach could be challenged by tax authorities.

On 9 October 2020, the Regional Administrative Court in Warsaw dismissed IRGiT's appeal and upheld the individual interpretation issued by the Director of the National Tax Information dated 12 November 2019 concerning the principles of determining the time of origination of the right to deduct input VAT from invoices for electricity and gas. On 5 December 2020, IRGiT filed for cassation with the Supreme Administrative Court in Warsaw and followed up with a supplementary submission of 15 April 2021 which referred to recent CJEU case-law, not yet available when the cassation appeal was filed, which fully supports the pleas raised by IRGiT.

IRGiT has developed a tax strategy in that regard in partnership with independent tax advisors.

Due to uncertainty concerning the time of settlement of input and output VAT in all open periods and the amount of the aforementioned VAT payable, guided by the principles of prudence, in accordance with IAS 37 Provisions, Contingent Liabilities and Contingent Assets, provisions were set up at PLN 34.3 million as at 30 September 2023 (PLN 30.2 million as at 31 December 2022) against interest that will arise in the event of a shift in the VAT deduction period. After an update of the provisions, the Group recognised financial expense of PLN 4.1 million (financial expense of PLN 3.3 million in the nine months of 2022). The provisions represent the best possible estimate of the potential liability as at 30 September 2023 which would have to be paid upon an amendment of the existing methodology of determining the time of origination of the tax liability and the deduction right.

From the tax perspective, there is a risk arising from the statute of limitation (five years) concerning the recognition of output VAT reported in November 2016: once recognised under general VAT regulations, due to the application of the lex specialis concerning the time of origination of tax on electricity and gas deliveries, the tax would be deferred to December 2016 and consequently recognised for a second time without the right to correct the accounts for November, which would be in direct

violation of the principle of VAT neutrality. According to regulations, if a liability arises in December, it does not expire until 1 January of the sixth consecutive year. Tax liabilities arising from January to November expire on 1 January of the fifth consecutive year (as such liabilities are payable in the year when they originate). Literal application of those rules could however result in double VAT imposed on deliveries. Consequently, acting in the interest of GPW shareholders, pursuant to point 92 of IAS 37, the Group is not disclosing the estimated amount of the contingent liability.

5.10. EVENTS AFTER THE BALANCE SHEET DATE

After the balance sheet date, an agreement ending the industrial dispute with the Exchange Employees' Trade Union was concluded. Details of the impact of the agreement on the financial statements and further details are presented in Note 5.8.3 above.

The consolidated financial statements are presented by the Management Board of the Warsaw Stock Exchange:

Marek Dietl – President of the Management Board ………………………………………

Monika Gorgoń – Member of the Management Board ………………………………………

Adam Młodkowski – Member of the Management Board ………………………………………

Izabela Olszewska – Member of the Management Board ………………………………………

Signature of the person responsible for keeping books of account:

Dariusz Wosztak, Director, Financial Department ………………………………………

Warsaw, 9 November 2023