GPW - Giełda Papierów Wartościowych w Warszawie S.A.

Quarterly Report • Sep 21, 2021

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS OF GIEŁDA PAPIERÓW WARTOŚCIOWYCH W WARSZAWIE S.A. GROUP FOR THE SIX-MONTH PERIOD ENDED 30 JUNE 2021

TABLE OF CONTENTS

	CONSOLIDATED STATEMENT OF FINANCIAL POSITION
	CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME CONSOLIDATED STATEMENT OF CASH FLOWS
	CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
	NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
	1. General information, basis of preparation of the financial statements, accounting policies
	1.1.
	1.2.
	1.3.
	1.4. Composition and activity of the Group
	1.5. Statement of compliance
	2. Notes to the statement of financial position
	2.1.
	2.2. Intangible assets
	2.3.
	2.4. Financial assets
	2.4.1.
	2.4.2. Financial assets measured at amortised cost
	2.4.3. Cash and cash equivalents
	2.5.
	2.6.
	2.7.
	2.8.
	2.9. Other liabilities
	3. Notes to the statement of comprehensive income
	3.1 - Income tax
	3.2.
	4. Notes to the statement of cash flows
	4.1.
	5. Other notes
	5.1.
	5.1.1.
	of the State Treasury
	5.1.2.
	5.1.3. Other transactions
	5.2.
	5.3.
	5.4.
	5.5. Seasonality
	5.6. Segment reporting
	5.7.
	5.8.
	5.8.1. Contingent assets
	5.8.2. Contingent liabilities
	5.9.
	5.10. Corrections of errors
	5.10.1. Fees for introduction of shares to trading
	5.10.2. Right of perpetual usufruct of land
	5.10.3. I IRGiT clearing collateral
	5.10.4. Energy transactions on international markets ("international markets")
	5.10.5. First consolidation of GPWT and GPWV ("GPWT, GPWV")……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
	5.11. C Events after the balance sheet date

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

		As at
	Note	30 June 2021 (unaudited)	31 December 2020 (restated*)
Non-current assets:		599,527	592,110
Property, plant and equipment	2.1.	92,809	97,333
Right-to-use assets		11,533	13,984
Intangible assets	2.2.	256,209	253,200
Investment in entities measured by equity method	2.3.	226,586	220,395
Sublease receivables		ર ર	179
Deferred tax asset		7,762	2,888
Financial assets measured at fair value through other comprehensive income		121	115
Prepayments		3,007	2,393
Other non-current assets		1,435	1,623
Current assets:		844,358	773,362
Inventories		20	11
Corporate income tax receivable		256	-
Trade receivables and other receivables	2.4.1.	65,754	55,229
Sublease receivables		118	137
Contract assets		2,760	1,696
Financial assets measured at amortised cost	2.4.2.	499,229	305,131
Other current assets		299	140
Cash and cash equivalents	2.4.3.	275,922	411,018
TOTAL ASSETS		1,443,885	1,365,472

*Comparative data have been restated. See Note 5.10.

The attached Notes are an integral part of these Financial Statements.

2

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

		As at
	Note	30 June 2021 (unaudited)	31 December 2020 (restated*)
Equity:		897,158	918,129
Equity of shareholders of the parent entity:		896,520	917,510
Share capital		63,865	63,865
Other reserves		1,105	1,063
Retained earnings		831,550	852,582
Non-controlling interests		639	619
Non-current liabilities:		167,150	288,947
Liabilities on bonds issue	2.6.	124,937	244,738
Employee benefits payable		1,761	1,116
Lease liabilities		6,846	9,493
Contract liabilities	2.7.	5,887	6,776
Accruals and deferred income	2.8.	17,127	1 2,461
Deferred tax liability			2,113
Other liabilities	2.9.	10,592	12,250
Current liabilities:		379,577	158,396
Liabilities on bonds issue	2.6.	121,127	1,167
Trade payables		12,551	15,117
Employee benefits payable		20,232	23,750
Lease liabilities		5,411	5,396
CIT payable		10,147	6,744
Contract liabilities	2.7.	31,976	7,586
Accruals and deferred income	2.8.	1,194	2,912
Provisions against other liabilities and other charges		27,925	26,844
VAT provision	5.9.	27,925	26,844
Other liabilities	2.9.	149,014	68,880
TOTAL EQUITY AND LIABILITIES		1,443,885	1,365,472

*Comparative data have been restated. See Note 5.10.

The attached Notes are an integral part of these Financial Statements.

3

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

			Three-month period Six-month period ended 30 June ended 30 June
	Note	2021 (unaudited)	2020 (restated*, unaudited)	2021 (unaudited)	2020 (restated*, unaudited)
Sales revenue		98,134	101,367	209,437	198,643
O perating expenses		(50,974)	(44,137)	(116,787)	(100,214)
Gains on reversed impairment of receivables/(Losses) on impairment of receivables		1,589	783	1,302	(278)
Other income		3 ਤੋਂ ਰੋ	719	679	1,795
Other expenses		52	(4,602)	(601)	(5,468)
Operating profit		49,160	54,129	94,030	94,478
Financial income, incl.:		240	1,145	369	5,425
Interest income under the effective interest rate method		220	1,319	310	3,453
Financial expenses, incl.:		(3,171)	(5,633)	(6,647)	(14,748)
VAT provision	5.9.	(575)	(2,880)	(1,081)	(9,886)
Share of profit/(losses) of entities measured by equity method		7,859	4,404	13,217	6,385
Profit before tax		54,090	54,046	100,969	91,541
Income tax	3.1.	(8,848)	(10,559)	(17,052)	(18,784)
Profit for the period		45,242	43,487	83,917	72,757
Gains/(Losses) on valuation of financial assets measured at fair value through other comprehensive income		(1,025)	119	37	115
Total items that may be reclassified to profit or oss		(1,025)	119	37	115
Gains/(Losses) on valuation of financial assets measured at fair value through other comprehensive income			571	5
Total items that will not be reclassified to profit or loss			571	5
Total other comprehensive income after tax		(1,025)	690	42	115
Total comprehensive income		44,217	44,177	83,959	72,872
Profit for the period attributable to shareholders of the parent entity		45,234	43,488	83,897	72,752
Profit for the period attributable to non- controlling interests		8	(1)	20	5
Total profit for the period		45,242	43,487	83,917	72,757
Comprehensive income attributable to shareholders of the parent entity		44,209	44,178	83,939	72,867
Comprehensive income attributable to non- controlling interests		8	(1)	20	5
Total comprehensive income		44,217	44,177	83,959	72,872
Basic / Diluted earnings per share (PLN)		1.08	1.04	2.00	1.73

*Comparative data have been restated. See Note 5.10.

The attached Notes are an integral part of these Financial Statements.

of the Giełda Papierów Wartościowych w Warszawie S.A. Group

CONSOLIDATED STATEMENT OF CASH FLOWS

	Note	Six-month period ended 30 June
		2021 (unaudited)	2020 (restated*, unaudited)
Total net cash flows from operating activities		84,429	138,622
Net profit of the period		83,917	72,757
Adjust ments:		21,377	85,837
Income tax	3.1.	17,052	18,784
Depreciation and amortisation	4.1.	17,736	18,896
Impairment allowances			4,107
Impairment loss on investment in other entities		(13,217)	(6,385)
(Gains) on financial assets measured at amortised cost		(141)	(2,048)
Interest on bonds		2,697	3,627
Other adjustments		2,914	(6,203)
Change of assets and liabilities :		(5,664)	55,059
Inventories		(9)	29
Trade receivables and other receivables	2.4.1.	(513)	(12,145)
Trade payables		(2,566)	10,656
Contract assets		(1,064)	(633)
Contract liabilities	2.7.	23,501	21,255
Non-current prepayments		(614)	634
Accruals and deferred income	2.8.	(355)	4,922
Employee benefits payable		(2,873)	(2,289)
Other current liabilities (excluding contracted investments and dividend payable)		(20,594)	22,840
Provisions for liabilities and other charges		1,081	9,790
Other non-current liabilities	2.9.	(1,658)
Income tax (paid)/refunded		(20,865)	(19,972)

*Comparative data have been restated. See Note 5.10.

The attached Notes are an integral part of these Financial Statements.

CONSOLIDATED STATEMENT OF CASH FLOWS

		Six-month period ended 30 June
	Note	2021 (unaudited)	2020 (res tated*, unaudited)
Total cash f lows f rom invest ing act ivit ies:		(211,879)	(1,548)
In:		294,076	451,371
Sale of property, plant and equipment and intangible as s ets		3,973	-
Dividends rec eived		-	512
Sale of financ ial as s ets meas ured at amortis ed c os t		289,862	447,675
I nteres t on financ ial as s ets meas ured at amortis ed c os t		168	2,852
Subleas e payments (interes t)		2	12
Subleas e payments (princ ipal)		71	320
Out:		(505,955)	(452,919)
P urc has e of property, plant and equipment and advanc es for property, plant and equipment		(6,461)	(5,295)
P urc has e of intangible as s ets and advanc es for intangible as s ets		(15,207)	(11,056)
P urc has e of financ ial as s ets meas ured at amortis ed c os t		(483,987)	(435,785)
Loan granted to a related party	5.1.2.	(300)	(200)
P urc has e of s hares of related parties and payments towards s hares of related parties		-	(583)
Total cash f lows f rom f inancing act ivit ies:		(7,327)	(252)
In:		1,956	6,391
G rants rec eived		1,956	6,391
Out:		(9,283)	(6,643)
Dividend paid		(29)	-
I nteres t paid on bonds		(2,732)	(3,656)
Settlement of a grant advanc e		(3,536)	-
Leas e payments (interes t)		(194)	(328)
Leas e payments (princ ipal)		(2,792)	(2,659)
Net increase in cash and cash equivalents		(134,777)	136,822
Impact of fx rates on cas h balance in currencies		(319)	386
Cash and cash equivalents - opening balance	2.4.3.	411,018	285,284
Cash and cash equivalents - closing balance	2.4.3.	275,922	422,492

*Comparative data have been res tated. See Note 5.10.

The attached Notes are an integral part of these Financial Statements.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

		Equity	Non
	Share capital	Other reserves	Retained earnings	Total equity	controlling interests	Total equity
As at 1 January 2021 (res tated*)	63,865	1,063	852,582	917,510	619	918,129
Dividend	-	-		(1 0 4 ,9 3 0 ) (104,930)	-	(104,930)
Transact ions with owners recognised direct ly in equity	-	-	(104,930)	(104,930)	-	(104,930)
N et profit for the s ix-month period ended 3 0 June 2 0 2 1	-	-	8 3 ,8 9 7	83,897	20	83,917
O ther c omprehens ive inc ome	-	42	-	42	-	42
Comprehensive income for the six-month period ended 30 June 2021	-	42	83,897	83,939	20	83,959
As at 30 June 2021 (unaudited)	63,865	1,105	831,550	896,520	639	897,158

*Comparative data have been res tated. See Note 5.10.

		Equity	Non
	Share capital	Other reserves	Retained earnings	Total equity	controlling interests	Total equity
As at 1 January 2020 (reported)	63,865	1,089	807,927	872,881	605	873,486
A djus tments	-	-	(6,869)	(6,869)	-	(6,869)
As at 1 January 2020 (res tated*)	63,865	1,089	801,058	866,012	605	866,617
Dividend	-	-		(1 0 0 ,7 3 3 ) (100,733)	-	(100,733)
Transact ions with owners recognised direct ly in equity	-	-	(100,733)	(100,733)	-	(100,733)
N et profit for 2 0 2 0	-	-	1 5 2 ,2 5 6	152,256	14	152,270
O ther c omprehens ive inc ome	-	(26)	-	(26)	-	(26)
Comprehensive income for 2020	-	(26)	152,256	152,230	14	152,244
As at 31 December 2020 (res tated*)	63,865	1,063	852,582	917,510	619	918,129

*Comparative data have been res tated. See Note 5.10.

CONSOLIDATED FINANCIAL STATEMENTS

of the Giełda Papierów Wartościowych w Warszawie S.A. Group

	Equity				Non-
	Share capital	Other reserves	Retained earnings	Total equity	controlling interests	Total equity
As at 1 January 2020 (reported)	63,865	1,089	807,927	872,881	605	873,486
A djustments			(6,869)	(6,869)		(6,869)
As at 1 January 2020 (restated*)	63,865	1,089	801,058	866,012	605	866,617
Dividend			(100,733)	(100,733)	-	(100,733)
Transactions with owners recognised directly in equity	-	-	(100,733)	(100,733)	-	(100,733)
Net profit for the six-month period ended 30 June 2020			72,757	72,757	5	72,762
Other comprehensive income		115		115		115
Comprehensive income for the six-month period ended 30 June 2020		115	72,757	72,872	5	72,878
As at 30 June 2020 (restated*, unaudited)	63,865	1,204	773,082	838,151	610	838,762

*Comparative data have been restated. See Note 5.10.

The attached Notes are an integral part of these Financial Statements.

8

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 markets 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 both types of services are offered by InfoEngine S.A. ("IE", "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,
• Activities in education, promotion and information concerning the capital and commodity market.

1.3. APPROVAL OF THE FINANCIAL STATEMENTS

These Condensed Interim Consolidated Financial Statements were authorised for issuance by the Management Board of the Exchange on 14-15 September 2021.

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") which holds close to 3% of TransactionLink sp. z. o. o. 100%,

comprise the Warsaw Stock Exchange Group.

The share capital of GPW Benchmark S.A. was increased by PLN 2,000 thousand on 28 April 2021. The company issued 40,000 series F ordinary registered shares with a nominal value and issue price of PLN 50 per share. All shares were taken up by GPW. GPW paid for the shares before 30 June 2021 but the acquisition was yet not registered in the National Court Register.

On 16 June 2021, the Extraordinary General Meeting of GPW Tech S.A. passed a resolution to increase the share capital of GPW Tech S.A. by PLN 2 million. The company issued 2 million shares with a nominal value and issue price of PLN 1 per share. All shares were taken up by GPW.

The following are the associates over which the Group exerts significant influence and joint ventures over which the Group has joint control:

• 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") 35.86%.

1.5. STATEMENT OF COMPLIANCE

These Condensed Interim Consolidated 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 Interim Consolidated Financial Statements of the Giełda Papierów Wartościowych w Warszawie S.A. Group, the Company included all material information necessary for the proper assessment of the assets and the financial position of the Group as at 30 June 2021 and its financial results in the period from 1 January 2021 to 30 June 2021.

These Condensed Interim Consolidated 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 Interim Consolidated 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 Interim Consolidated Financial Statements in accordance with the same accounting policies as those described in the Consolidated Financial Statements for the year ended 31 December 2020 other than for changes other than for changes described in Note 5.7 and resulting from the application of new standards as described below. The Condensed Interim Consolidated Financial Statements for the six-month period ended 30 June 2021 should be read in conjunction with the Consolidated Financial Statements of the Group for the year ended 31 December 2020.

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 2021:

Amendments to IFRS 4 Insurance Contracts – extension of the temporary exemption from applying IFRS 9 Financial Instruments,

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

• Amendments to IFRS 16 Leases providing lessees with an exemption from treating COVID-19-related rent concessions as lease modifications,
• Amendments to IFRS 9 Financial Instruments, IAS 39 Financial Instruments: Recognition and Measurement, IFRS 7 Financial Instruments: Disclosures, IFRS 4 Insurance Contracts, and IFRS 16 Leases - Interest Rate Benchmark Reform Phase 2.

Those amendments to the International Financial Reporting Standards had no significant impact on data presented in these Condensed Interim Consolidated financial statements.

Amendments to IFRS 3 Business Combinations, IAS 16 Property, Plant and Equipment, IAS 37 Provisions, Contingent Liabilities and Contingent Assets, and Annual Improvements 2018-2020 have been adopted by the European Union but have not yet entered into force for annual periods starting on 1 January 2021.

Standards and Interpretations awaiting adoption by the European Union as at the balance-sheet date:

• Amendments to IAS 12 Income Tax Deferred Tax related to Assets and Liabilities arising from a Single Transaction,
• Amendments to IFRS 10 Consolidated Financial Statements and IAS 28 Investment in Associates Sale or Contribution of Assets between an Investor and its Associate or Joint Venture,
• IFRS 17 Insurance Contracts the amendment allows for continuation of the recognition of insurance contracts according to account policies under national standards,
• Amendments to IAS 1 Presentation of Financial Statements presentation of liabilities as current or non-current and recognition of material accounting policies,
• Amendments to IAS 8 Accounting Policies changes in accounting estimates and correction of errors.

Those standards and interpretations (not yet adopted) 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 which are applicable to its activities as of their effective date.

2. NOTES TO THE STATEMENT OF FINANCIAL POSITION

2.1. PROPERTY, PLANT AND EQUIPMENT

	Six-month period ended 31 June 2021
	Land and buildings	Vehicles and machinery	Furniture, f itt ings and equipment	Property, plant and equipment under construct ion	Total
Net carrying amount - opening balance	73,566	17,108	455	6,204	97,333
A dditions	372	5,081	87	44	5,584
Dis pos als	-	(1)	-	(3,917)	(3,918)
Deprec iation c harge*	(1,593)	(4,466)	(131)	-	(6,190)
Net carrying amount - closing balance (unaudited)	72,345	17,722	411	2,331	92,809

*Depreciation charges capitalised to intangible assets (licences) were PLN 230 thousand.

of the Giełda Papierów Wartościowych w Warszawie S.A. Group

	Year ended 31 December 2020
	Land and buildings	Vehicles and machinery	Furniture, fittings and equipment	Property, plant and equipment under construction	Total
Net carrying amount - opening balance	76,411	20,389	486	4,682	101,968
Additions	380	8,182	122	1,392	10,077
Reclassification and other adjustments		(331)	24	179	(128)
Disposals		(48)	(6)	(49)	(103)
Depreciation charge*	(3,226)	(11,084)	(171)		(14,481)
Net carrying amount - closing balance	73,566	17,108	455	6,204	97,333

*Depreciation charges capitalised to intangible assets (licences) were PLN 390 thousand.

Starting with Q1 2021, the Group presents capital expenditure (development work) separately from property, plant and equipment. Comparable data have been restated for the sake of comparability in this Note.

There were no significant contracted investments in plant, property and equipment as at 30 June 2021.

Contracted investments in plant, property and equipment amounted to PLN 169 thousand as at 31 December 2020, including investment in IT hardware.

2.2. INTANGIBLE ASSETS

	Six-month period ended 31 June 2021
	Licences	Copyrights	Know-how	Goodwill	Development work	Perpetual usufruct of land	Total
Net carrying amount - opening balance (restated)	53,790	2,571	4,824	167,446	18,678	5,892	253,200
A dditions	1,162	11	75		10,660	-	11,908
Reclassification and other adjustments	841				(841)
Capitalised depreciation					270	-	270
Disposals					(55)	-	(55)
Depreciation charge*	(8,592)	(211)	(271)			(40)	(9,114)
Net carrying amount - closing balance (unaudited)	47,201	2,371	4,628	167,446	28,712	5,852	256,209

*Depreciation charges capitalised to intangible assets (licences) were PLN 40 thousand.

		Year ended 31 December 2020
	Licences	Copyrights	Know-how	Goodwill	Development work	Perpetual usufruct of and	Total
As at 1 January 2020 (reported)	62,389	2,867	5,387	170,970	5,036	-	246,649
A djustments						5,973	5,973
Net carrying amount - opening balance (restated)	62,389	2,867	5,387	170,970	5,036	5,973	252,622
A dditions	7 ,35 1	154			13,206		20,711
Reclassification and other adjustments	(71)		(42)				(113)
Capitalised depreciation					436		436
Depreciation charge*	(15,878)	(449)	(524)			(81)	(16,932)
Net carrying amount - closing balance (restated)	53,790	2,571	4,824	167,446	18,678	5,892	253,200

*Depreciation charges capitalised to intangible assets (licences) were PLN 46 thousand.

Starting with Q1 2021, the Group presents capital expenditure (development work) separately from intangible assets. Comparable data have been restated for the sake of comparability in this Note.

The Group has reclassified its share in the right of perpetual usufruct of land from "Right-to-use assets" to "Intangible assets". A complete description of the reclassification is presented in Note 5.10.2.

Contracted investments in intangible assets amounted to PLN 1,445 thousand as at 30 June 2021, including mainly the GRC system, the new Indexator, the WIBIX system, and the new billing system (contracted investments in intangible assets amounted to PLN 912 thousand as at 31 December 2020, including mainly the GRC system and the Indexator).

Impairment of goodwill of BondSpot

Indications of impairment of goodwill recognised in these financial statements were reviewed as at 30 June 2021. Indications of an impairment test were identified only for the goodwill on the investment in BondSpot.

Conditions prevailing on the sovereign bond market were the key driver of BondSpot's financial position in 2020. Sovereign yields were falling sharply throughout 2020 after the outbreak of the SARS-CoV-2 pandemic. Initial outflows from bond funds combined with measures taken by the National Bank of Poland to neutralise the impact of market developments reversed the trends underlying Polish sovereign bond prices and yields at the turn of 2021. 10Y yields have been rising steadily since early 2021 in alignment with growing yields of foreign sovereign bonds. The company's profits were bolstered by more active trading in Polish sovereign bonds by international banks. Volatility increased as a result of rising inflation expectations and investor sentiment prevailing on the market since early 2021. Inflation pressures driven by rising global oil prices supported the growing yields of Polish sovereign bonds.

As a result, Treasury BondSpot Poland turnover increased, which boosted BondSpot's revenue and improved BondSpot's outlook for 2021 and, subject to continued high volatility, beyond 2021 on Treasury BondSpot.

A change of the timeline of a key project was an indication to carry out once again the goodwill impairment test previously carried out as at 31 December 2020.

The value in use of the cash generating unit, which was considered to be the entire company BondSpot, was carried out as a DCF valuation on the basis of a forecast of BondSpot's results for 2021-2025. The revenue projection used in the BondSpot goodwill impairment test as at 31 December 2020 was reduced.

The key assumptions of the test carried out as at 30 June 2021 were as follows:

• revenue CAGR 2021-2025 at 7.30%,
• expenses CARG 2021-2025 at 0.74%,
• weighted average cost of capital at 5.65%;
• growth rate after 2025 at 2%.

The goodwill impairment test as at 30 June 2021 identified no need for additional impairment to be charged to the consolidated financial statements of the GPW Group. The impairment test suggests that a decrease of CAGR revenue by 1.04 pps or an increase of WACC by 1.53 pps would bring the recoverable value of the cash generating unit to its carrying amount.

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").

The Exchange held 35.86% of PAR as at 30 June 2021.

As a result of the recognition of impairment of the investment in PAR at PLN 583 thousand as at 30 June 2020, the value of the investment in PAR was equal to 0 in the Group's statement of financial position as at 30 June 2021 and as at 31 December 2020.

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

CONSOLIDATED FINANCIAL STATEMENTS

of the Giełda Papierów Wartościowych w Warszawie S.A. Group

	As at / Period ended
	30 June 2021 (unaudited)	31 December 2020
Opening balance	220,395	210,326
Dividends due to GPW S.A.	(7,063)	(5,699)
Share of net profit/(loss)	13,447	15,964
Other increase/(decrease) of profit	(230)	(217)
Total Group share of profit/(loss) after tax	13,217	15,748
Share in other comprehensive income	37	20
Closing balance	226,586	220,395

	As at
	30 June 2021 (unaudited)	31 December 2020
KDPW S.A. Group	209,843	203,365
Centrum Giełdowe S.A.	16,743	17,029
Polska Agencja Ratingowa S.A.	1	I
Total carrying amount of entities measured by equity method	226,586	220,395

2.4. FINANCIAL ASSETS

2.4.1. TRADE RECEIVABLES AND OTHER RECEIVABLES

	As at
	30 June 2021 (unaudited)	31 December 2020
Gross trade receivables	47,762	54,077
Impairment allowances for trade receivables	(5,384)	(6,685)
Total trade receivables	42,378	47,392
Dividend receivable	7,063
Current prepayments	11,853	6,203
VAT refund receivable	280	8
Sublease receivables	47	13
Grants receivable	2,951
Other receivables	1,182	1,613
Total other receivables	23,376	7,837
Total trade receivables and other receivables	65,754	55,229

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 June 2021 31 December 2020 (unaudited)
C orporate bonds	129,060	89,977
Bank depos its	360,024	205,009
O ther as s ets	10,145	10,145
Total current	499,229	305,131
Total f inancial assets measured at amort ised cost	499,229	305,131
(over 3 months)

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 June 2021 (res tated, unaudited)	31 December 2020
C urrent ac c ounts (other)	97,574	244,325
V A T c urrent ac c ounts (s plit payment)	120	474
C orporate bonds	19	-
Bank depos its	178,209	166,219
Total cash and cash equivalents	275,922	411,018

The carrying amount of cash and cash equivalents is close to the fair value in view of their short maturity.

At the commencement of the projects: New Trading System, GPW Data and GPW Private Market (see Note 5.4), the Group opened dedicated banks accounts for each of those projects. The total balance in those accounts was PLN 1,779 thousand as at 30 June 2020 (PLN 4,111 thousand as at 31 December 2020). Cash in such accounts is classified as restricted cash.

Cash in VAT accounts at PLN 120 thousand (PLN 474 thousand as at 31 December 2020) is also restricted cash due to regulatory restrictions on the availability of cash in such accounts for current payments. The Group reclassified IRGiT clearing collateral from "Cash and cash equivalents" to "Other assets" in "Financial assets measured at amortised cost". For details of the reclassification, see Note 5.10.3.

2.5. CHANGE OF ESTIMATES

In the period from 1 January 2021 to 30 June 2021, impairment losses for trade receivables were adjusted as follows:

	As at
	30 June 2021 (unaudited)	31 December 2020
Opening balance	6,685	6,039
C hange of allowanc e balanc es	(1,301)	1,075
Rec eivables written off during the period as unc ollec tible	-	(429)
Closing balance	5,384	6,685

In the period from 1 January 2021 to 30 June 2021, there were the following changes in estimates:

• provisions against employee benefits were reduced by PLN 2,697 thousand (provision additions of PLN 15,598 thousand, usage of PLN 18,295 thousand);
• provisions against interest on a VAT correction were increased by PLN 1,081 thousand (see Note 5.9).

2.6. BOND ISSUE LIABILITIES

	As at
	30 June 2021 (unaudited)	31 December 2020
Series C bonds	124,937	124,810
Series D and E bonds	-	119,928
Total non-current	124,937	244,738
Series C bonds	672	683
Series D and E bonds	120,455	485
Total current	121,127	1,167
Total liabilit ies under bond issue	246,064	245,905

The table below presents the key parameters of bonds in issue.

	Issued date	Redempt ion date	Total par value	Currency	Interest	Coupon
Series C bonds	6 .1 0 .2 0 1 5	6 .1 0 .2 0 2 2	125,000	P LN	3 .1 9%	6 M
Series D bonds	0 2 .0 1 .2 0 1 7	3 1 .0 1 .2 0 2 2	60,000	P LN	WIBO R 6M + 0 ,9 5%	6 M
Series E bonds	1 8 .0 1 .2 0 1 7	3 1 .0 1 .2 0 2 2	60,000	P LN	WIBO R 6M + 0 ,9 5%	6 M

The table below presents the fair value of bonds in issue.

	As at
	30 June 2021 (unaudited)	31 December 2020
Fair value of s eries C bonds	128,457	130,440
Fair value of s eries D and E bonds	120,664	121,147
Total fair value of bonds in issue	249,121	251,587

2.7. CONTRACT LIABILITIES

Contract liabilities include income of future periods from 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 June 2021 (unaudited)	31 December 2020
Lis ting	5,887	6,776
T otal financ ial market	5,887	6,776
Total non-current	5,887	6,776
Trading	2,712	4,178
Lis ting	11,921	952
I nformation s ervices and revenue from the calculation of reference rates	12,373	55
T otal financ ial market	27,006	5,185
Trading	4,755	2,378
T otal c ommodity market	4,755	2,378
O ther revenue	215	23
Total current	31,976	7,586
Total contract liabilit ies	37,863	14,362

The year-to-date increase of contract liabilities as at 30 June 2021 was due to pro-rata distribution over time of annual fees invoiced by the Group in the first days of the financial year.

2.8. 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 June 2021 (unaudited)	31 December 2020
P C R	3,957	4,145
A gric ultural M arket	654	821
N ew T rading P latform projec t	10,326	6,377
GP W Data projec t	1,678	910
P rivate M arket	512	208
Total non-current deferred income f rom grants	17,127	12,461
P C R	375	375
A gric ultural M arket	333	333
N ew T rading P latform projec t	-	1,538
GP W Data projec t	-	580
P rivate M arket	486	87
Total current deferred income f rom grants	1,194	2,912
Total accruals and deferred income	18,321	15,373

As at 30 June 2021, 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.

Details of grants are presented in Note 5.4.

2.9. OTHER LIABILITIES

	As at
	30 June 2021 (unaudited)	31 December 2020
Liabilities to the P olis h N ational Foundation	7,083	7,062
Liabilities in res pec t of a s hare in the right of perpetual us ufruc t of land	3,509	5,188
Total non-current	10,592	12,250
Dividend payable	105,191	287
V A T payable	16,889	54,793
Liabilities in res pec t of other levies	2,776	4,000
Liabilities in res pec t of inves tments	1,300	5,476
Liabilities to the P olis h N ational Foundation	1,312	1,293
Liabilities to the P olis h Financ ial Supervis ion A uthority	14,190	17
Liabilities due to perpetual us ufruc t right	7,356	3,014
Total current	149,014	68,880
Total other liabilit ies	159,606	81,130

Other liabilities as at 30 June 2021 included mainly dividend payable. As at 30 June 2021, the Group recognised credits/debits between TGE and IRGiT and the tax office relating to current reporting periods as well as a significant liability to PFSA in respect of the capital market supervision fee payable in Q3 2021.

3. NOTES TO THE STATEMENT OF COMPREHENSIVE INCOME

3.1. INCOME TAX

As required by the Polish tax regulations, the corporate income tax rate applicable in 2021 and 2020 is 19%.

	Three-month period ended 30 June		Six-month period ended 30 June
	2021 (unaudited)	2020 (unaudited)	2021 (unaudited)	2020* (res tated, unaudited)
C urrent inc ome tax	5,734	8,833	24,043	24,417
Deferred tax	3,114	1,726	(6,991)	(5,633)
Total income tax	8,848	10,559	17,052	18,784

CONSOLIDATED FINANCIAL STATEMENTS

of the Giełda Papierów Wartościowych w Warszawie S.A. Group

	Three-month period ended 30 June		Six-month period ended 30 June
	2021 (unaudited)	2020 (unaudited)	2021 (unaudited)	2020* (res tated, unaudited)
P rofit before inc ome tax	54,090	54,046	100,969	91,541
I nc ome tax rate	19%	19%	19%	19%
Income tax at the statutory tax rate	10,280	10,269	19,184	17,377
Tax ef fect of :	(1,432)	290	(2,132)	1,407
C os ts whic h are not tax-deduc tible	300	1,472	620	2,265
A dditional inc ome whic h is not taxable	-	1,878	-	1,878
G rants whic h are not taxable	-	(93)	-	(93)
N on- taxable s hare of profit of entities meas ured by the equity method	(1,493)	(837)	(2,511)	(1,213)
O ther c orrec tions	(239)	(2,130)	(241)	(1,430)
Total income tax	8,848	10,559	17,052	18,784

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 quarterly corporate income tax advances pursuant to the Corporate Income Tax Act.

3.2. PHANTOM SHARES

On 29 April 2021, on the occasion of the 30th anniversary of the Company, the Exchange Management Board approved a Phantom Shares Programme ("Programme") for GPW employees which will continue at least until 2031. The Programme covers all GPW employees in employment as at 16 April 2021. Under the Programme, each employee in employment as at 16 April 2021 is eligible to receive the following:

• a number of phantom shares defined under the Programme for the period from the start of employment with GPW to 16 April 2021 – in total, 10,428 shares were allotted as at 16 April 2021,
• another 4 phantom shares in each year of the Programme (provided that the GPW employee remains in employment as at 16 April of such year) – the estimated number of such phantom shares was 10,480 as at 30 June 2021,
• dividend, i.e., the number of phantom shares allotted to the employees times the dividend per GPW share in the year determined by the GPW General Meeting.

The Programme meets the criteria of a share-based payment programme and will be accounted for under IFRS 2 Sharebased Payment.

The liability in respect of shares allotted in successive years will be recognised in the vesting period up to 2031 and measured as at each balance-sheet date depending on the closing price of GPW shares at the balance-sheet date and the number of eligible employees.

Differences of valuation against fair value as at each balance-sheet date will be recognised in employee costs.

The Phantom Share Programme was recognised in these financial statements as follows:

• PLN 689 thousand liability under the Programme as at 30 June 2021, presented under Non-current liabilities Employee benefits payable in the statement of financial position,
• PLN 700 thousand Programme cost in the six-month period of 2021, presented in Employee costs in the statement of comprehensive income.

The liability recognised as at 30 June 2021 will be increased with the value of future shares and dividends.

The estimated total dividend payable was PLN 493 thousand as at 30 June 2021 and the estimated amount of the Programme based on a variable number of employees and a fixed share price is PLN 1,262 thousand by the end of 2031.

4. NOTES TO THE STATEMENT OF CASH FLOWS

4.1. DEPRECIATION AND AMORTISATION

	Six-month period ended 30 June
	2021 (unaudited)	2020* (res tated, unaudited)
Deprec iation of property, plant and equipment*	5,960	7,893
A mortis ation of intangible as s ets * *	9,074	8,410
Deprec iation and amortis ation of right- to-us e as s ets	2,702	2,593
Total depreciat ion and amort isat ion charges	17,736	18,896

*Depreciation charges were reduced with PLN 230 thousand capitalised to intangible assets in the six-month period ended 30 June 2021 and PLN 103 thousand in the six-month period ended 30 June 2020.

**Depreciation charges were reduced with PLN 40 thousand capitalised to intangible assets in the six-month period ended 30 June 2021 and PLN 14 thousand in the six-month period ended 30 June 2020.

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 Exchange.
• 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 keeps no records which would clearly identify and aggregate transactions with 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 2021 charged to the GPW Group's operating expenses in the first six months of 2021 was PLN 14,198 thousand, equal to the annual 2021 fee.

The fee for 2020 charged to the Group's operating expenses in the first six months of 2020 was PLN 10,024 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.

5.1.2. TRANSACTIONS WITH ENTITIES MEASURED BY THE EQUITY METHOD

Dividend

Dividends paid by associates to the Group stood at PLN 7,063 thousand in the six-month period ended 30 June 2021 (PLN 5,699 thousand in the six-month period ended 30 June 2020).

On 18 June 2021, the Annual General Meeting of CG decided to allocate a part of profit equal to PLN 1,700 thousand to a dividend payment. The dividend attributable to the Exchange was PLN 421 thousand. The dividend was paid on 23 July 2021.

On 18 June 2020, the Annual General Meeting of CG decided to allocate a part of profit equal to PLN 2,067 thousand to a dividend payment. The dividend attributable to the Exchange was PLN 512 thousand. The dividend was paid on 30 June 2020.

On 29 June 2021, the Annual General Meeting of KDPW decided to allocate a part of profit equal to PLN 19,925 thousand to a dividend payment. The dividend attributable to the Exchange was PLN 6,642 thousand. The dividend was paid on 5 August 2021.

On 29 June 2020, the Annual General Meeting of KDPW decided to allocate a part of profit equal to PLN 15,561 thousand to a dividend payment. The dividend attributable to the Exchange was PLN 5,187 thousand. The dividend was paid on 10 August 2020.

Loans and advances

As at 30 June 2021, the carrying amount of loans granted to PAR stood at PLN 0 (impairment of PLN 832 thousand), including impairment of PLN 507 thousand recognised in 2020 and impairment of PLN 325 thousand recognised in H1 2021. The carrying amount loans as at 31 December 2020 stood at PLN 0 (impairment of PLN 507 thousand). For more information, see the GPW financial statements for 2020.

On 28 June 2021, the Management Board decided to extend the maturity of the PLN 200 thousand loan granted to PAR in February 2020 to 30 June 2022.

An annex to the agreement concerning the loan granted by GPW to PAR in September 2020 was signed on 30 June 2021. According to the annex, interest for the period from the loan grant date to 30 June 2021 shall be capitalised as at 30 June 2021 and added to the principal. Interest for the period from 1 July 2021 to 30 June 2022 shall be accrued under the original agreement. The loan principal plus accrued interest shall be repaid in a single payment on or before 30 June 2022.

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.

The Group leases office space to PAR.

		As at 30 June 2021 (unaudited)		Six-month period ended 30 June 2021 (unaudited)
	Receivables	Trade payables and other liabilit ies	Sales revenue or sublease interest	Operat ing expenses
KDPW Group:	3	3	7	23
other	3	3	7	2 3
Centrum Giełdowe:	-	5,076	-	1,861
leas es	-	4,973	-	1,170
other	-	103	-	691
PAR:	70	-	21	-
leas es	65	-	17	-
other	5	-	4	-
Total	73	5,079	28	1,884

CONSOLIDATED FINANCIAL STATEMENTS

of the Giełda Papierów Wartościowych w Warszawie S.A. Group

	As at 31 December 2020		Year ended 31 December 2020
	Receivables	Trade payables and other liabilit ies	Sales revenue or sublease interest	Operat ing expenses
KDPW Group:	3	-	22	60
other	3	-	2 2	6 0
Centrum Giełdowe:	-	6,185	-	5,543
leas es	-	6,117	-	2,148
other	-	68	-	3,395
PAR:	93	-	33	-
leas es	88	-	6	-
other	5	-	27	-
Total	96	6,185	55	5,603

Other than the receivables under the loan granted to PAR (see above, Loans and advances), receivables from associates and joint ventures were not provided for or written off as uncollectible in the six months of 2021 and 2020.

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 June 2021 and as at 31 December 2020.

Książęca 4 Street Tenants Association

In 2021 and 2020, the Exchange concluded transactions with the Książęca 4 Street Tenants Association of which it is a member. The expenses amounted to PLN 2,285 thousand in the six-month period ended 30 June 2021 and PLN 1,914 thousand in the six-month period ended 30 June 2020.

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 six-month period ended 30 June 2021 and 30 June 2020, respectively.

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

	Three-month period ended 30 June		Six-month period ended 30 June
	2021 (unaudited)	2020 (unaudited)	2021 (unaudited)	2020 (unaudited)
Bas e s alary	403	439	807	934
V ariable pay	411	445	822	958
O ther benefits	41	36	81	154
Benefits after termination	-	204	-	204
Total remunerat ion of the Exchange Management Board	855	1,124	1,710	2,250
Remunerat ion of the Exchange Supervisory Board	147	144	280	290
Remunerat ion of the Management Boards of other GPW Group companies	805	962	1,778	1,766
Remunerat ion of the Supervisory Boards of other GPW Group companies	216	207	463	421
Total remunerat ion of the key management personnel	2,023	2,437	4,231	4,727

As at 30 June 2021, unpaid bonuses and variable remuneration of the key management personnel stood at PLN 3,769 thousand including bonuses and remuneration for 2017-2020. The cost was shown in the statement of comprehensive income for 2017-2020.

As at 30 June 2020, unpaid bonuses and variable remuneration of the key management personnel stood at PLN 4,908 thousand including bonuses for 2017-2020. The cost was shown in the statement of comprehensive income for 2017-2020.

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 21 June 2021, the Annual General Meeting of the Exchange passed a resolution to distribute the Company's profit for 2020, including a dividend payment of PLN 104,930 thousand. The dividend per share was PLN 2.50. The dividend record date was 23 July 2021 and the dividend payment date was 5 August 2021. The dividend paid to the State Treasury was PLN 36,721 thousand.

On 22 June 2020, the Annual General Meeting of the Exchange passed a resolution to distribute the Company's profit for 2019, including a dividend payment of PLN 100,733 thousand. The dividend per share was PLN 2.40. The dividend record date was 28 July 2020 and the dividend payment date was 11 August 2021. The dividend paid to the State Treasury was PLN 35,252 thousand.

In the first six months of 2021, BondSpot S.A. paid outstanding dividend to a minority shareholder at PLN 29 thousand due for the years 2014-2016.

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 top 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.

Price Coupling of Regions ("PCR")

PCR ensures co-ownership of system software of the day-ahead market by a group of European energy exchanges joined by TGE in 2015. The project was aimed at harmonisation of the European market using a shared calculation algorithm.

In 2016, in the implementation of international projects (aiming among others to implement European regulations applicable to cross-border energy exchange), the President of the Energy Regulation Authority (URE) granted TGE a refund of part of the PCR cost from the Polish power transmission system operator Polskie Sieci Energetyczne S.A. under a bilateral agreement ensuring the implementation of a day-ahead electricity market in Poland.

Agricultural Market

A consortium comprised of GPW, TGE and IRGiT signed an agreement with Krajowy Ośrodek Wsparcia Rolnictwa (National Centre for Agricultural Support, KOWR) on 29 January 2019 concerning the Agricultural Market project which will launch an electronic trading platform for certain agricultural commodities. The project closed on 31 August 2020 according to plan. Since 1 September 2020, the platform is operated by TGE and IRGiT (without the participation of the Exchange). As the consortium leader and the parent entity of the GPW Group, the Exchange represented the consortium in relations with KOWR, handled financials and provided marketing support, and received a fee from the other consortium members which covered its expenses.

From the perspective of the consolidated financial statements of the GPW Group, the Agricultural Market project is a grant of PLN 5.1 million whose direct beneficiaries are TGE and IRGiT.

From the perspective of the separate financial statements of the Exchange, the Agricultural Market project is not a grant; instead, the Exchange provides project management services to TGE and IRGiT.

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.

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 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.

	Six-month period ended 30 June 2021 (unaudited)
	Financial segment	Commodity segment	Other	Total segments	Exclusions and adjustments	Total segments and exclusions
Sales revenue:	136,518	74,410	7,480	218,408	(8,971)	209,437
To third parties	133,964	74,092	1,381	209,437	-	209,437
Between segments	2,554	318	6,099	8,971	(8,971)
O perating expenses , including:	(86,722)	(38,093)	(785)	(125,600)	8,813	(116,787)
depreciation and amortis ation	(12,966)	(5,365)	(81)	(18,412)	676	(17,736)
Profit / ( loss) on sales	49,796	36,317	6,695	92,808	(158)	92,650
Loss on impairment of receivables	964	3 3 8		1,302		1,302
Other income	220	459		679	-	679
Other expenses	(579)	(22)		(601)		(601)
Operating profit (loss)	50,401	37,092	6,695	94,188	(158)	94,030
Financial income, including:	102,097	58,766		160,863	(160,494)	369
interest income	280	30		310	(29)	281
dividend income	101,762	58,698		160,460	(160,457)	3
Financial expenses, including:	(4,123)	(2,685)	(10)	(6,818)	171	(6,647)
interest cost	(3,201)	(114)	(8)	(3,323)	171	(3,152)
VAT provisions		(1,081)		(1,081)	-	(1,081)
Share of profit/(loss) of entities measured by equity method					13,217	13,217
Profit before income tax	148,375	93,173	6,685	248,231	(147,264)	100,969
Income tax	(14,199)	(2,849)	(4 )	(17,052)		(17,052)
Net profit	134,176	90,324	6,681	231,179	(147,264)	83,917

	As at 30 June 2021
	Financial segment	Commodity segment	Other	Total segments	Adjustments for investments measured by equity met hod	Other exclusions and adjustments	Total segments and exclusions
Total assets	1,080,890	465,435	3,096	1,549,421	214,934	(320,470)	1,443,885
Total liabilities	473,368	257,056	607	731,031		(184,304)	546,727
Net assets (assets - liabilities)	607,522	208,379	2,489	818,390	214,934	(136,166)	897,158

	Six-month period ended 30 June 2020 (unaudited)
	Financial segment	Commodity segment	Other	Total segments	Exclusions and adjust ments	Trotal segments and exclusions
Sales revenue:	122,626	78,463	6,076	207,165	(8,522)	198,643
To third parties	119,864	78,254	525	198,643	-	198,643
Between segments	2,762	209	5,551	8,522	(8,522)
O perating expenses , including:	(73,457)	(34,968)	-	(108,425)	8,211	(100,214)
depreciation and amortisation	(13,389)	(6,174)	-	(19,563)	668	(18,896)
Profit / ( loss) on sales	49,169	43,495	6,076	98,740	(311)	98,429
Loss on impairment of receivables	(148)	(130)		(278)		(278)
Other income	1,033	763		1,796	(1)	1,795
Other expenses	(5,393)	(75)		(5,468)		(5,468)
Operating profit (loss)	44,661	44,053	6,076	94,790	(312)	94,478
Financial income, including:	84,916	1,414	-	86,330	(80,907)	5,425
interest income	2,239	1,355		3,594	(141)	3,453
dividend income	80,766			80,766	(80,766)
Financial expenses, including:	(4,796)	(10,193)		(14,989)	241	(14,748)
interest cost	(4,186)	(201)	-	(4,387)	241	(4,146)
VAT provisions		(9,886)	-	(9,886)	-	(9,886)
Share of profit/(loss) of entities measured by equity method				-	6,385	6,385
Profit before income tax	124,781	35,274	6,076	166,131	(74,593)	91,541
Income tax	(10,250)	(8,534)	-	(18,784)		(18,784)
Net profit	114,531	26,740	6,076	147,347	(74,593)	72,757

	As at 31 December 2020
	Financial segment	Commodity segment	Other	Total segments	Adjustments for investments measured by equity met hod	Other exclusions and adjustments	llotal segments and exclusions
Total assets	1,080,647	231,585	3,937	1,316,169	208,744	(159,441)	1,365,472
Total liabilities	395,980	74,008	6 ਹੈ ਦੇ	470,683		(23,340)	447,343
Net assets (assets - liabilities)	684,667	157,577	3,242	845,486	208,744	(136,101)	918,129

	Three-month period ended 30 June 2021 (unaudited)
	Financial segment	Commodity segment	Other	Total segments	Exclusions and adjustments	Total segments and exclusions
Sales revenue:	62,202	37,203	2,903	102,308	(4,174)	98,134
To third parties	61,244	37,040	(150)	98,134		98,134
Between segments	ರಿ 28	163	3,053	4,174	(4,174)
O perating expenses , including :	(39,382)	(15,465)	(444)	(55,291)	4 ,3 1 7	(50,974)
depreciation and amortis ation	(6,623)	(2,632)	(42)	(9,297)	343	(8,954)
Profit / ( loss) on sales	22,820	21,740	2,459	47,019	143	47,162
Loss on impairment of receivables	1,597	(8 )		1,589		1,589
Other income	116	243		359		359
Other expenses	(74)	(10)		(84)	136	52
Operating profit (loss)	24,459	21,963	2,459	48,881	279	49,160
Financial income, including:	101,929	58,747	-	160,676	(160,436)	240
interest income	1 55	14		169	22	191
dividend income	101,762	58,698	-	160,460	(160,457)	3
Financial expenses, including:	(2,009)	(1,234)	(ਰੇ )	(3,252)	8 1	(3,171)
interest cost	(1,623)	(54)	(7)	(1,684)	81	(1,603)
VAT provisions		(575)		(575)		(575)
Share of profit/(loss) of entities measured by equity method					7,859	7,859
Profit before income tax	124,379	79,476	2,450	206,304	(152,216)	54,090
Income tax	(8,853)	4	1	(8,848)		(8,848)
Net profit	115,526	79,480	2,451	197,457	(152,216)	45,242

CONSOLIDATED FINANCIAL STATEMENTS

of the Giełda Papierów Wartościowych w Warszawie S.A. Group

	Three-month period ended 30 June 2020 (unaudited)
	Financial Commodity segment segment		Other	Total segments	Exclusions and adjustments	Total segments and exclusions
Sales revenue:	62,893	40,047	3,127	106,067	(4,700)	101,367
To third parties	61,070	39,943	354	101,367	-	101,367
Between s egments	1,823	104	2,773	4,700	(4,700)	-
O perating expens es , inc luding:	(33,917)	(14,687)	206	(48,398)	4,260	(44,137)
depreciation and amortis ation	(6,523)	(2,945)	-	(9,468)	333	(9,136)
Prof it/(loss) on sales	28,977	25,522	3,333	57,832	(439)	57,393
Los s on impairment of rec eivables	589	194	-	783	-	783
O ther inc ome	189	503	-	692	27	719
O ther expens es	(4,513)	(67)	-	(4,580)	(22)	(4,602)
Operat ing prof it (loss)	25,242	25,990	3,333	54,565	(435)	54,129
Financ ial inc ome, inc luding:	81,578	400	-	81,978	(80,835)	1,145
interes t income	951	437	-	1,388	(69)	1,319
dividend income	80,766	-	-	80,766	(80,766)	-
Financ ial expens es , inc luding:	(2,689)	(3,066)	-	(5,755)	122	(5,633)
interes t cos t	(2,093)	(105)	-	(2,198)	128	(2,070)
VAT provis ions	-	(2,880)	-	(2,880)	-	(2,880)
Share of profit/(los s ) of entities meas ured by equity method	-	-	-	-	4,404	4,404
Prof it before income tax	104,132	23,326	3,333	130,791	(76,745)	54,046
I nc ome tax	(5,634)	(4,925)	-	(10,559)	-	(10,559)
Net prof it	98,498	18,401	3,333	120,232	(76,745)	43,487

5.7. ADDITIONAL INFORMATION CONCERNING THE SARS-COV-2 PANDEMIC

In the first six months of 2021, the Group identified no new risks arising from the pandemic and took no additional measures to mitigate the impact of the pandemic on the Group's operations and results as compared to those identified in the annual financial statements for 2020.

In the opinion of the Exchange Management Board and the Management Boards of the subsidiaries, operational and financial risks resulting from the pandemic are considered to be moderate. For detailed information about the risks, including a description of measures taken to mitigate the identified risks and a detailed presentation of the impact of the pandemic on the financial position of the Company and the Group, see the Management Board Report on the activity of the parent entity and the Group of Giełda Papierów Wartościowych w Warszawie S.A. for 2020.

5.8. CONTINGENT ASSETS AND LIABILITIES

5.8.1. CONTINGENT ASSETS

In September 2019, TGE submitted corrections of CIT receipts and payments for 2012-2016 and paid the resulting amounts due together with interest. The correction concerned among others the conversion of TGE's debt due from IRGiT into IRGiT's share capital in an amount of PLN 10 million in 2013. Given the inconsistent approach of tax authorities to the tax recognition of the transaction, TGE took measures to recover the paid tax of PLN 1.9 million. Due to uncertainty regarding the refund, as at 30 June 2021, the Group recognised a contingent asset of PLN 2.6 million (including PLN. 1.9 million principal and PLN 0.7 million interest). The Director of the Tax Chamber issued a decision refusing to recognise the requested overpayment of PLN 2.6 million. TGE appealed against the decision. On 14 April 2021, the Regional Administrative Court in Warsaw at a closed session dismissed TGE's appeal and upheld the interpretation. TGE appealed against the judgment in cassation, pending the final resolution.

5.8.2. CONTINGENT LIABILITIES

In connection with the implementation of the projects New Trading System, GPW Data and GPW Private Market, the Exchange presented three 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 cofinancing agreement.

As at 30 June 2021, 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 as it is in the process of confirming the adequacy of its approach (see: Note 5.9).

As at 30 June 2021, the Group held bank guarantees issued by a bank in favour of NordPool in respect of payments between TGE S.A. and NordPool in the Market Coupling project as follows:

• EUR 7.1 million effective as of 1 July 2020 and expiring on 15 July 2021,
• EUR 22.2 million effective as of 1 July 2021 and expiring on 30 June 2022,

as well as the following guarantees:

• EUR 2.0 million effective as of 17 June 2021 and expiring on 30 June 2022 issued in favour of Slovenská elektrizačná prenosová sústava (SEPS),
• EUR 3.0 million effective as of 17 June 2021 and expiring on 30 June 2022 issued in favour of ČEPS,
• EUR 18.7 million effective as of 1 July 2021 and expiring on do 30 June 2022 issued in favour of European Commodity Clearing AG (ECC).

As at 31 December 2020, the Group held bank guarantees issued by a bank in favour of NordPool in respect of payments between TGE S.A. and NordPool in the Market Coupling project at EUR 7.1 million effective as of 1 July 2020 and expiring on 15 July 2021.

5.9. UNCERTAINTY ABOUT VAT

In accordance with the GPW Group's tax risk management policy, tax accounts of all Group companies including IRGiT have been subject to 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 literal wording 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, k 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 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 15.5 million as at 31 December 2019. After adjustment as at 31 December 2020, the provisions stood at PLN 26.8 million while the estimated amount of interest on the tax payable equal to PLN 11.4 million was charged to the 2020 results (financial expenses) compared to PLN 15.5 million charged in 2019. The provisions were adjusted to PLN 27.9 million as at 30 June 2021. The provisions represent the best possible estimate of the potential liability as at 30 June 2021 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.

Furthermore, there is a relatively low risk arising from the statute of limitation (five years) concerning the recognition of output VAT reported in November 2015: once recognised under general VAT regulations, due to the application of the lex

specialis concerning the date of arising of the tax obligation for electricity and gas deliveries, the tax would be deferred to December 2015 and consequently recognised for a second time without the right to correct the accounts for November subject to the statute of limitation, which would directly violate 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).

According to tax opinions available to IRGiT, there is a relatively low risk that the competent authorities may decide that IRGiT should report and pay the tax twice as a result of a potential correction because such interpretation of national law would contravene the fundamental principles enshrined in the Constitution of Poland and higher-rank norms under UE law. Acting in the interest of GPW shareholders, pursuant to point 92 of IAS 37, the Group is not disclosing the estimated amount of the potential payable.

For more information concerning the actions taken by the Company and its VAT approach, see the Consolidated Financial Statements of the Group for the year ended 31 December 2020.

5.10. CORRECTIONS OF ERRORS

5.10.1. FEES FOR INTRODUCTION OF SHARES TO TRADING

When preparing these financial statements, the Exchange Management Board reviewed the recognition of revenue from fees for introduction of shares to trading. As a result of the analysis, in line with the IFRIC agenda decision of January 2019 Assessment of promised goods or services, it was determined in the light of IFRS 15 Revenue from Contracts with Customers that the service of introduction to trading is inextricably linked to the listing service. As a result, it was decided that revenue from fees for introduction to trading will be recognised over time during the expected term of contracts with customers (average trading period). As a result, the accounting recognition of revenue from fees for introduction of shares to trading was modified retrospectively.

The Exchange defined the average period of provision of the trading service equal to 9 years following a historical analysis of the average period of trading of companies listed on the Main Market and NewConnect. The estimate is subject to uncertainty and will be reviewed as at each reporting date.

5.10.2. RIGHT OF PERPETUAL USUFRUCT OF LAND

When preparing these financial statements, the Exchange Management Board analysed the recognition of the Exchange's share in the right of perpetual usufruct of land at 4, Książęca St., Warsaw, and determined that the share does not meet the criteria of leases under IFRS 16 Leases. As a result, it was reclassified from "Right-to-use assets" to "Intangible assets" and from "Lease liabilities" to "Other liabilities". The useful life of the asset was reviewed and its depreciation period was extended to 2093. The adjustments are retrospective and the Company restated the comparative data presented in these financial statements.

5.10.3. IRGIT CLEARING COLLATERAL

Following a review under IAS 7 Statement of Cash Flows, it was determined that restricted cash at PLN 10 million, which is IRGiT's additional risk management tool and secures the liquidity of IRGiT's clearing of exchange transactions under the GIR Rules, does not meet the criteria of cash equivalents. As a result, the presentation in these consolidated financial statements was changed as follows: the restricted cash was reclassified from "Cash and cash equivalents" to "Financial assets measured at amortised cost." The adjustments are retrospective and the Group restated the comparative data presented in these financial statements.

5.10.4. ENERGY TRANSACTIONS ON INTERNATIONAL MARKETS ("INTERNATIONAL MARKETS")

The Group reviewed the presentation of revenue and expenses related to TGE's participation in the single European energy market in terms of their economic substance. As a result of the review, the presentation of such transactions was changed.

Revenue and expenses from such transactions were previously presented under "Operating income", "Other revenue" and "Operating expenses" but are now recognised on a net basis in a single line: "Operating expenses". The adjustments are retrospective and the Group restated the comparative data presented in these financial statements.

5.10.5. FIRST CONSOLIDATION OF GPWT AND GPWV ("GPWT, GPWV")

The Group's consolidated financial statements for the financial year ended 31 December 2020 for the first time fully consolidated two subsidiaries: GPW Ventures S.A. and GPW Tech S.A. The adjustments are retrospective and the reported data for the six-month period and the three-month period ended 30 June 2020 were restated.

The tables below present the impact of the corrections described above on the statement of financial position, the statement of cash flows, and the statement of comprehensive income for each relevant period.

	As at		As at
	31 December 2020 (reported)		Perpetual usufruct of land	Fees for introduction of shares to	31 December 2020 (restated)
Non-current assets, including:	588,819	-	1,845	1,446	592,110
Right-to-use assets	18,031	-	(4,047)	-	13,984
Intangible assets	247,308	-	5,892	-	253,200
Deferred tax asset	1,442			1,446	2,888
Current assets, including:	773,362	-			773,362
Financial assets measured at amortised cost	294,986	10,145		-	305,131
Cash and cash equivalents	421,163	(10,145)		-	411,018
TOTAL ASSETS	1,362,181		1,845	1,446	1,365,472

Equit y	924,167		126	(6,164)	918,129
Equity of shareholders of the parent entity:	923,548		126	(6,164)	917,510
Share capital	63,865				63,865
Other reserves	1,063				1,063
Retained earnings	858,620		126	(6,164)	852,582
Earnings of previous years	219,023	-	64	(6,932)	212,155
This period's net profit	151,426		62	768	152,256
Non-current liabilities:	281,570	-	1,771	5,606	288,947
Lease liabilities	11,298	-	(1,805)		9,493
Contract liabilities	1,170			5,606	6,776
Other liabilities	8,674		3,576		12,250
Current liabilities, including:	156,444		(52)	2,004	158,396
Lease liabilities	5,463		(67)		5,396
Contract liabilities	5,582			2,004	7,586
Other liabilities	68,865		15		68,880
TOTAL EQUITY AND LIABILITIES	1,362,181		1,845	1,446	1,365,472

			Adjustments
	Six-month period ended 30 June 2020 (reported, unaudited)	Perpetual usufruct of land	Fees for introduction of shares to trading	GPWT, GPWV	Six-month period ended 30 June 2020 (restated, unaudited)
Total cash flows from operating activities	138,511	(25)	474	(338)	138,622
Net profit of the period	72,766	31	384	(424)	72,757
Adjustments:	85,717	( (	90	86	85,837
Income tax	18,694		90	-	18,784
Depreciation and amortisation	18,952	(56)			18,896
Other adjustments	(6,200)		-	(3 )	(6,203)
Change of assets and liabilities, including:	54,970		-	8 d	55,059
Trade receivables and other receivables (excluding dividend receivable)	(12,135)			(10)	(12,145)
Trade payables	10,557			ਰੇਰੇ	10,656
Total cash flows from investing activities	(1,548)		-	4,000	2,452
Net (decrease)/increase in cash and cash equivalents	136,711	(25)	474	3,662	140,822
Cash and cash equivalents - opening balance	281,284				281,284
Cash and cash equivalents - closing balance	418,381	(25)	474	3,662	422,492

	As at 31 December 2020 (reported)	Cash		Perpetual usufruct of land	Fees for introduction of shares to trading	International markets	Year ended 31 December 2020 (restated)
Sales revenue	403,776				948	(767)	403,957
O perating expenses	(208,505)		-	112	-	(1,461)	(209,854)
Other income	5,690				-	(694)	4,996
Operating profit	188,320			112	948	-	189,380
Financial expenses	(21,170)		-	(50)	-	-	(21,220)
Profit before tax	189,064		-	62	948	-	190,074
Income tax	(37,624)			-	(180)	-	(37,804)
Profit for the period	151,440		-	62	768	-	152,270

CONSOLIDATED FINANCIAL STATEMENTS

of the Giełda Papierów Wartościowych w Warszawie S.A. Group

	Six-month period ended 30 June 2020 (reported, unaudited)	Perpetual us ufruct of land	Fees for introduction of s hares to trading	GPWT, GPWV	I nternationa l markets	Six-month period ended 30 June 2020 (res tated, unaudited)
Sales revenue	198,169	-	474	-		198,643
O perating expens es	(101,109)	56	-	(4 2 7 )	1,266	(100,214)
O ther inc ome	3,061	-	-	-	(1,266)	1,795
Operat ing prof it	94,375	56	474	(427)	-	94,478
Financ ial expens es	(14,723)	(25)	-	-	-	(14,748)
Prof it before tax	91,460	31	474	(424)	-	91,541
I nc ome tax	(18,694)	-	(90)	-	-	(18,784)
Prof it for the period	72,766	31	384	(424)	-	72,757

		Adjustments
	Three-month period ended 31 March 2021 (reported, unaudited)	Perpetual us ufruct of land	Fees for introduction of s hares to trading	GPWT, GPWV	I nternationa l markets	Three-month period ended 31 March 2021 (res tated, unaudited)
Sales revenue	101,130	-	237	-	-	101,367
O perating expens es	(45,048)	28	-	(2 2 1 )	1,104	(44,137)
O ther inc ome	1,823	-	-	-	(1,104)	719
Operat ing prof it	54,086	28	237	(222)	-	54,129
Financ ial expens es	(5,622)	(12)	-	-	-	(5,634)
Prof it before tax	54,013	16	237	(221)	-	54,045
I nc ome tax	(10,514)	-	(45)	-	-	(10,559)
Prof it for the period	43,499	16	192	(221)	-	43,486

5.11. EVENTS AFTER THE BALANCE SHEET DATE

On 26 July 2021, the National Centre for Research and Development granted co-financing of GPW's project Polish Digital Logistics Operator ("PCOL") at PLN 5,401 thousand. The total cost of the project is estimated at PLN 9,304 thousand. PCOL is an innovative logistics platform based on artificial intelligence designed to optimise the cost of transport and logistics of State-owned companies and private companies which will use offered services and solutions. On 15 April 2021, GPW signed memoranda of understanding with companies interested in participation in the PCOL project. The grants will finance research and development work designed to develop innovative technology based on artificial intelligence. The agreement with the National Centre for Research and Development was not signed until the date of these financial statements.

Om 8 September 2021, the District Court for the City of Warsaw registered a share capital increase of GPW Benchmark S.A. by PLN 2,000 thousand. The share capital following the increase stands at PLN 4,900 thousand.

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

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

Piotr Borowski – Member of the Management Board ………………………………………

Dariusz Kułakowski – Member of the Management Board ………………………………………

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

Signature of the person responsible for keeping books of account:

Piotr Kajczuk, Financial Department ………………………………………

Warsaw, 14-15 September 2021