Quarterly Report • Jul 31, 2023
Quarterly Report
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For the period 1 January 2023 – 30 June 2023
In accordance with the International Financial Reporting Standards
ATHENS EXCHANGE GROUP 110 Athinon Ave. 10442 Athens GREECE GEMI: 003719101000
| 1. DECLARATIONS BY MEMBERS OF THE BOARD OF DIRECTORS 4 | ||
|---|---|---|
| 2. MANAGEMENT REPORT OF THE BOARD OF DIRECTORS 6 | ||
| 3. REVIEW REPORT BY THE INDEPENDENT CERTIFIED AUDITORS ACCOUNTANTS21 | ||
| 4. 1st HALF 2023 COMPANY & CONSOLIDATED FINANCIAL STATEMENTS 25 | ||
| 4.1. | Interim Statement of Comprehensive Income 26 | |
| 4.2. | Interim Statement of Financial Position 28 | |
| 4.3. | Interim Statement of Changes in Equity29 | |
| 4.4. | Interim Cash Flow Statement 31 | |
| 5. NOTES TO THE INTERIM 1st HALF 2023 FINANCIAL STATEMENTS 32 | ||
| 5.1. | General information about the Company and its subsidiaries33 | |
| 5.2. | Basis of preparation of the company and consolidated financial statements for the 1st Half of 2023 33 | |
| 5.3. | Basic Accounting Principles 34 | |
| 5.4. | Segment Information36 | |
| 5.5. | Overview of the capital market37 | |
| 5.6. | Trading38 | |
| 5.7. | Post trading 38 | |
| 5.8. | Listing38 | |
| 5.9. | Data services39 | |
| 5.10. | IT and Digital services39 | |
| 5.11. | Ancillary services 40 | |
| 5.12. | Personnel remuneration and expenses40 | |
| 5.13. | Third party remuneration and expenses40 | |
| 5.14. | Maintenance / IT Support41 | |
| 5.15. | Building / equipment management 41 | |
| 5.16. | Utilities41 | |
| 5.17. | Other operating expenses42 | |
| 5.18. | Taxes42 | |
| 5.19. | Owner occupied tangible assets and intangible assets42 | |
| 5.20. | Leases 43 | |
| 5.21. | Participations and other long term claims 43 | |
| 5.22. | Trade and other receivables44 | |
| 5.23. | Financial assets45 | |
| 5.24. | Cash and cash equivalents45 | |
| 5.25. | Third party balances in bank accounts of the Group46 | |
| 5.26. | Deferred Tax 46 | |
| 5.27. | Contractual obligations 47 | |
| 5.28. | Equity and reserves 47 |
| 5.29. | Trade and other payables48 | |
|---|---|---|
| 5.30. | Taxes payable 49 | |
| 5.31. | Current income tax and income taxes payable 49 | |
| 5.32. | Related party disclosures50 | |
| 5.33. | Litigation or arbitration disputes and other contingent liabilities52 | |
| 5.34. | Risk Policies and Management52 | |
| 5.35. | Fair value 54 | |
| 5.36. | Events after the date of the Statement of Financial Position55 | |
| 5.37. | Adjustments 56 | |
(in accordance with article 5 of Law 3556/2007)
Athens, 31 July 2023
THE CHAIRMAN OF THE BoD
THE CHIEF EXECUTIVE OFFICER
THE MEMBER OF THE BoD
GEORGE HANDJINICOLAOU YIANOS KONTOPOULOS GIORGOS DOUKIDIS
ID: Χ-501829 ID: AA-246553 ID: X-468731
OF
(in accordance with article 5 of Law 3556/2007)
The Board of Directors of HELLENIC EXCHANGES-ATHENS STOCK EXCHANGE SA (Athens Exchange or ATHEX or the Company) publishes its Report on the separate and consolidated interim Financial Statements for the period that ended on 30.06.2023, in accordance with the provisions of Law 4548/2018, Law 4706/2020, article 5 of Law 3556/2007 and the implementation decisions issued thereon by the Board of Directors of the Hellenic Capital Market Commission.
The separate and consolidated interim financial statements have been prepared in accordance with the International Financial Reporting Standards that were adopted by the European Union, and in particular in accordance with IAS 34.
In 2023 the Group continues to implement its new strategy, which is based on 5 main pillars: a) increase trading activity; b) increase revenue from existing services and explore new ones; c) optimize servicing its international customers; d) improve the operational model of the Group; and e) digital innovation.
The Athens Exchange General Index closed on 30.06.2023 at 1,278.6 points, 57.8% higher than the close at the end of the 1st half of 2022 (810.4 points). In the 1st half of 2023 the average capitalization of the market was €76.0bn, increased by 17.3% compared to the corresponding period in 2022 (€64.8bn).
The total value of transactions in the 1st half of 2023 (€13.5bn) is 23.9% higher compared to the corresponding period in 2022 (€10.9bn), while the average daily traded value was €110.6m compared to €91.0m in the 1st half of 2022, increased by 21.5%.
In the 1st half of 2023, capital totaling €579.8m was raised.
The most significant corporate actions in the 1st half of 2023 were the following:
| Company | Corporate action |
Capital raised (€m) |
Comment | ||||
|---|---|---|---|---|---|---|---|
| AustriaCard Holdings AG | IPO | 0 | Dual listing at the Vienna and Athens Exchanges |
||||
| Attica Bank | Rights issue | 473.3 | |||||
| OPAP | Rights issue | 105.6 | Dividend reinvestment | ||||
* IPO – Initial Public Offer
In the first half of 2023, the Group expanded its international partnerships, successfully completing an important milestone towards the integration of the Albanian energy market under the EU Target Model, which resulted in the successful launch of the Day-ahead Energy Market of the Albanian Energy Exchange (ALPEX) and its trading and post-trading activities. The Group together with the support and contribution of the Hellenic Energy Exchange (EnExGroup) created a new regulatory framework, the relevant systems and operational procedures, as well as the implementation of the relevant training and awareness raising activities for the participants. The aforementioned cooperation continues in order to bring to fruition the other ALPEX actions for the implementation of European standards and the wider cooperation between the Energy Markets in the region.
In the first half of 2023, the Group continued a series of projects aimed at upgrading and improving its services. In collaboration with an external consultant, it is proceeding with the planning of the reorganization and change of the IT operating model in order to optimally support its strategic objectives.
The main projects and actions of the ATHEX Group in the 1st half of 2023 concerned the continuous improvement of its operating environment and its adaptation to the developments resulting from the new major European initiatives in the field of clearing services. Initially, the Group proceeded to identify and record the specifications required to adapt its services and systems to the requirements of the new EMIR REFIT Regulation, as significant changes are expected to be required in the implementation of EMIR TR, which concerns the obligation to report trades and positions for derivative products. The project is expected to be implemented in 2023 and the final changes to be put into production in the 3rd quarter of 2024. In addition, it continued to design the new website of the Group.
Finally, in the context of the European Central Bank's (ECB) "T2-T2S Consolidation" project, which concerns the technical and operational consolidation of the TARGET2 payment system and the TARGET2-Securities (T2S) settlement system and aims to optimize the liquidity management of participants through a central liquidity management (CLM) tool, the company has made the necessary adjustments to its services by introducing the use of new ISO 20022 messages and new interconnection services from the SWIFT provider. The project went into production on 20.03.2023.
As part of its ongoing efforts to develop the derivatives market, expand its product portfolio and enhance its visibility in the international investment community, the Group collaborated with MSCI for the creation of a new derivative product linked to the new MSCI Greece Rebased Index, which started trading on the Athens Exchange's derivatives market on 10 May 2023.
In 2023 the Group participated in new events organized in collaboration with other renowned market participants in order to promote the Greek capital market.
Turnover in the 1st half of 2023 for the Athens Exchange Group was €22.92m compared to €19.58m in the corresponding period in 2022, increased by 17%. Approximately 63% of the turnover of the Group is from fees on trading, post-trading services (mainly clearing and settlement) of trades, 14% is from technology services such as digital services, infrastructure and technology solutions to other markets, and 23% from other services (listings / services to issuers, data services et al.)
In the 1st half of 2023 EBITDA was €9.54m compared to €8.03m in the corresponding period last year, increased by 18.8%.
Earnings Before Interest and Taxes (EBIT) were €7.66m vs. €5.73m in the corresponding period last year, increased by 33.7%.
After deducting €1.9m in income tax, the net after tax earnings of the Athens Exchange Group amounted to €6.57m, increased by 22.3% compared to the 1st half of 2022. After including Other Comprehensive Income (valuation of participations), earnings amount to €5.64m compared to €7.25m last year, reduced by 22.1%.
For the parent company, turnover was €10.4m in the 1st half of 2023 compared to €9.4m in the corresponding period in 2022, increased by 10.6%.
In the 1st half of 2023 EBITDA was €2.69m compared to €2.59m in the corresponding period last year, increased by 3.9%.
Earnings Before Interest and Taxes (EBIT) were €1.57, remaining at the same level as the corresponding period in 2022.
After deducting €485 thousand in income tax, the net after tax earnings for the parent company amounted to €6.52m vs. €6.16m, increased by 5.9%. After including Other Comprehensive Income (valuation of participations), earnings amount to €5.6m compared to €8m in the corresponding period last year, reduced by 30.3%, due to the valuation of the Company's participation in Boursa Kuwait (loss of €0.93 million in the 1st half of 2023 compared to a gain of €1.88 million in the corresponding comparative period).
After its successful participation in the contest by CMA Kuwait to privatize Boursa Kuwait, ATHEX is a shareholder of Boursa Kuwait with a 0.779% stake, corresponding to 1,564,500 shares.
The shares of Boursa Kuwait began trading in the Kuwait organized securities market on 14.09.2020. On 30.06.2023 the shares posted a valuation loss of €0.93m compared to 31.12.2022 which is accounted in the special securities valuation reserve.
The Group, through its subsidiary ATHEXClear is aligned with the corporate governance framework determined by Regulation (EU) 648/2012 of the European Parliament and Council (EMIR Regulation), and keeps all cash collaterals that are being managed by the Company and concern the cash market and the derivatives market, as well as the cash balances of ATHEXClear, in an account it maintains at the Bank of Greece (BoG) as a direct participant over the internet to the TARGET2-GR Express Transfer of Capital and Settlement System in real time (TARGET2-GR).
Therefore, its own cash balance and the balances of third parties (margins) are deposited in the same account that ATHEXClear maintains at the Bank of Greece, and as a result a separation of the assets is necessary in order for the collateral that ATHEXClear collects to be shown separately in the current assets of 30.06.2023. In the
Statement of Financial Position of 30.06.2023, they are reported as equal amounts in both current assets and short term liabilities as "third party balances at the bank account of the company" and concern exclusively the margins in the derivatives market that were deposited in the bank account maintained by ATHEXClear at the BoG on 30.06.2023.
On 30.06.2023 at the BoG bank account cash market margins of €161m and derivatives market margins of €121m had been deposited.
The Company is listed on Athens Exchange, and its shares are traded in the ATHEX cash market, in the Main Market with Medium Trading Activity segment. The shares of the Company are common registered, with a voting right.
The General Meeting on 31.05.2021 granted authorization for the Company to acquire own shares in accordance with the terms and conditions of article 49 of Law 4548/2018, for a time period not to exceed twelve (12) months, at a minimum price of €0.49 and a maximum price of €5.00 per share. The maximum number of own shares acquired will not exceed 10% of the paid-in share capital.
The share buyback program began on 3.12.2021 and was completed on 30.11.2022. The Company possesses 2,498,000 shares, at an average acquisition price of €3.336 per share and a total cost of €8.33m; these shares correspond to 4.14% of the voting rights of the Company.
The General Meeting on 08.06.2023 granted authorization for the Company to acquire own shares in accordance with the terms and conditions of article 49 of Law 4548/2018, for a time period not to exceed twenty-four (24) months, at a minimum price of €0.42 and a maximum price of €6.00 per share. The maximum number of own shares acquired will not exceed 10% of the paid-in share capital.
No shares have been acquired under the new program as of 31.07.2023.
The Annual General Meeting of Hellenic Exchanges-Athens Stock Exchange shareholders on 08.06.2023 decided to distribute dividend for fiscal year 2022 amounting to €9,052 thousand or €0.15 per share to shareholders. Out of this amount, €6,638 thousand concerns the distribution of part of the excess mandatory regular reserve of the Company. The ex-date of the right to the dividend was on 14.06.2023, and the dividend was paid on 20.06.2023.
Transactions that concern payroll costs for the executives and the executive members of the BoD for the 1st half of 2023 amounted to €1,525 thousand for the Group and €1,239 thousand for the Company. Besides these transactions, there are no other related party transactions, as defined by IAS 24, which could materially affect the financial position or the performance of the Group during the period in question. There is no (credit or debit) balance from these transactions on 30.06.2023. For the other related party transactions, see note 5.32.
The Group through its subsidiary "HELLENIC CENTRAL SECURITIES DEPOSITORY" – ATHEXCSD has a branch office in Thessaloniki, at Katouni St.
According to the Bank of Greece's Report published in June 2023, the Greek economy maintained its growth momentum in 2022 and during the first few months of 2023, despite rising inflationary pressures and the impact
of Russia's invasion of Ukraine. High growth rates, high inflation and greater tax compliance have been key factors for the return to a primary fiscal surplus and the remarkable deceleration of the public debt-to-GDP ratio in 2022.
Inflation, based on the Harmonized Consumer Price Index, was 9.3% in 2022, mainly due to the upward trend in the prices of energy goods, but also due to food price increases. Harmonized inflation has been on a sharp downward path since October 2022 and recorded 4.1% in May 2023 and 5.6% on average in the first five months of 2023. It is expected to gradually decelerate in 2023 to 4.3% and further in 2024 and 2025 to 3.8% and 2.3% respectively, mainly due to the expected decline in energy prices.
The upgrade of Greek government debt, by two agencies in 2022 and another in early 2023, has narrowed the gap from investment grade. Also, in March and April 2023, two agencies changed the outlook on the credit rating to positive from stable, which bodes well for an upgrade to investment grade in the near term.
The elimination of the effects of the coronavirus, the normalization of energy prices and the confirmation of forecasts that inflation is decelerating, despite the ongoing military conflict in Ukraine, will allow a rapid return to normality and risk appetite, creating a positive outlook for the strengthening of domestic business sentiment. This is reflected in the Greek capital market, with share prices at the Athens Stock Exchanges significantly outperforming share prices in both the USA and the Eurozone since the start of the year.
The Greek economy is expected to continue to grow in the coming years. More specifically, growth is expected to reach 3.0% in 2024 and 2.7% in 2025. This performance can be achieved provided that in the external environment the geopolitical crisis will have subsided, energy prices will have declined and the tightening of Eurosystem monetary policy will have a limited negative impact on the euro area economy. In addition, the forecasts are based on the assumption that the Greek economy will continue to be significantly strengthened by international tourism, the good implementation of investment projects and the growth performance of the euro area, which is the country's major trading partner.
The excellent organization of the Group, the reliable operation of the capital market even in extremely difficult conditions such as at present, the continuous investment in modern equipment and processes, the lack of debt obligations, the recognition of its reliability by internationally recognized rating agencies, as well as the liquidity that it possesses, guarantee its survival in the long term, with significant benefits for shareholders, employees and society at large.
Besides the fees from trading that takes place in the ATHEX markets and which are collected through the Members, important revenue streams for the Group are also fees from orders and Member terminals, revenue from Member and Operator subscriptions, revenue from subscriptions and rights issues of listed companies and corporate actions in general, revenue from data vendors, revenue from administrative, IT and IT support services, educational services etc.
The turnover of the Athens Exchange Group depends, to a large extent, on factors over which it has no influence, since they are connected with developments in the Greek capital market, which in turn are affected by a series of factors such as, the key financial data of listed companies, the fundamental macroeconomic data of the Greek economy as well as developments in international capital markets.
Contrary to revenues, which partly cannot be controlled by the companies of the Group, on the cost side concerted efforts are being made to rationalize them, in order to improve the financial results of the Group and allocate them in activities of added value.
A major consideration of the Athens Exchange Group (Group) is managing the risk that arises from international developments in the sector, its business activities and its business operation.
The Group, as operator of the capital market, has developed a framework for managing the risks to which it is exposed, ensuring its viability and development, and contributing to the stability and security of the capital market. Risk management is recognized as part of its supervisory functions which, together with the regulatory compliance system, form the second level of defense of the organization.
In particular, Athens Exchange Clearing House (ATHEXClear), a 100% subsidiary of ATHEX, operates as a Central Counterparty (CCP) for clearing cash and derivative markets products and as such is obliged to satisfy the strict requirements of the current regulatory framework EMIR (European Market Infrastructure Regulation) concerning risk management in accordance with which it has been licensed since 2015.
In addition, Hellenic Central Securities Depository (ATHEXCSD), 100% subsidiary of ATHEX, follows the particularly extensive requirements of the CSDR (Central Securities Depositories Regulation) framework, under which it is operating since April 2021.
Finally, at the parent company ATHEX, the risk management system operates effectively, coordinating the actions and priorities of all Group companies at the level of Board of Directors' committees, protecting the interests of shareholders from risks to which ATHEX and its subsidiaries are exposed, through a single framework that combines the highest requirements of regulatory frameworks and international best practices.
The risk strategy of the Group is aligned with its business strategy to provide the appropriate infrastructure for the reliable, secure and continuous operation of the capital market. In accordance with the strategy of the Group, the risk appetite level is set in order to correspond with the capital adequacy of the companies of the Group, satisfy the needs of the market, contain costs for participants, maximize the exploitation of business opportunities but also ensure market security and compliance with regulatory requirements.
In particular, the Group monitors risks and assesses their riskiness at two levels. The management level and the operational level. Alignment of the risk management strategy with the Group's business strategy is achieved, among other things, through the Enterprise Risk Management system which supports the planning and monitoring of risk mitigation actions, aligning them with the development actions and objectives for the year, as included in the relevant budget.
The risk management system is managed through the risk management committees of each company of the Group, as well as through the EMIR Risk Committee of the CCP, while coordination for the alignment of risk management strategy, risk appetite and the prioritization of risk areas, where efforts to improve the control environment are focused, is ensured by the joint chairmanship of the four committees of the three companies and the common framework and policies adopted by the companies.
The operational structure of the organization follows the three lines of defense model, establishing the intermediate line between the first and the second line of defense, especially for the business continuity systems (BCP), information security (DPO) and information systems security (ISO). It supports the second line of defense with an independent organic Risk Management Unit of the Group, ensuring the independence of internal audit in the third line of defense.
Besides the comprehensive measures for ensuring the smooth operation of the systems of the Group, each organizational unit of the Group is responsible for monitoring and managing the sources of risk related to its activity and scope of competence in such a way as to react immediately and effectively in case of occurrence of events or incidents, carry out the analysis of key objections and introduce or improve the control environment.
In particular, for each company of the Group separately, the organizational structure that supports risk management includes the following units:
The Group approaches the risk profile map of the organization from two perspectives. The management perspective (top-down) and the business perspective (bottom-up).
Risk management actions from the Top-Down management perspective, aim to protect shareholders, trading parties, employees and society at large, from adverse events arising from or enhanced by the Group's activities.
Risk management activities from the business perspective, Bottom-Up, aim to continuously improve the quality of operations and to contribute to the documentation of risk assessment as they are reflected in the risk profile mapping of the organization of top-down processes. At the administrative level, risk categories are developed on the basis of four main categories.
This management perspective focuses on comparative risk calibration, with the aim of setting the right priorities for risk mitigation actions throughout the organization.
The operational perspective, on the other hand, recognizes the potential for different development and analysis of the various risks, according to failure events or the current needs of the organization, therefore the emphasis is on providing meaningful feedback to the management perspective and risk allocation of the Group, based on events and findings of the risk analysis processes carried out in the Group.
These processes consist of the following:
Risk management at the management level maps the risks that have been identified and formulates the distribution of their risk in this mapping, in such a way that priority is given to actions with an annual horizon, aimed at mitigating and controlling these risks. In 2023, priority has been given to risks related to cyber risk, the modernization of information systems and software development technology and risks related to the Group's commercial operations. The actions to mitigate risks related to human resources issues launched in 2022 have
improved the control environment and downgraded these risks in relation to the risk allocation as formulated for 2023.
At the same time, risk management at the operational level motivates the organization to improve the quality of the services provided and the safe and smooth execution of the functions that support them. In 2023, emphasis has been placed on the analysis of the data collected and the adoption of actions by the individual units of the organization to implement the recommendations for improving the functioning of the institutional services of the companies of the Group.
The Group ensures that it deals with all risks, internal or external, present or future, and especially those that have been recognized as significant. It is recognized that each service provided by the Group can expose it to any combination of the risks mentioned below.
The usual risks to which, due to the nature of its activities, the Group may be exposed to are:
Risk of loss resulting from inadequate or failed internal processes and systems, due to human factor, or from external events, including legal risk. Risk corresponding to the security of the IT systems, as in the majority of companies, is now becoming very important, and appropriate measures to contain it are being taken.
Risk due to inadequate or ineffective adoption of the provisions of the regulatory and legal frameworks governing the operations of the companies of the Group. Risks related to conflicts of interest and biased decision-making, deviations of the code of conduct and neutrality in supporting market participants.
Risk assumed by the Group in selecting, designing and implementing development projects, partnerships, innovative services and other commercial activities, as well as risks arising from communication and publicity and the organization's performance in meeting its ESG targets.
Liquidity and capital adequacy risk, accounting and tax compliance risks, forecasting, budgeting and controlling its execution, credit and other financial risks. Specifically, for the management of the ATHEXClear subsidiary, the following risks are monitored by a dedicated unit for the specific subsidiary, according to the EMIR regulation:
The Group, and in particular the parent company ATHEX, monitors the risk of its participation in the two individual subsidiaries, as well as, of course, in its other participations in third companies, and reflects its risk appetite. The level of risk that the parent company ATHEX specifically assumes from the operation of the subsidiary ATHEXClear in its role as a central counterparty of the market, is clearly documented in the risk management of the parent company and is completely within its ability to absorb it without impacting its operation and its economic value.
The Group recognizes that the appearance of systemic risk depends on macroeconomic developments and is affected by external events such as changes in the competitive capital markets environment, changes in the
international and domestic economic environment, legal and regulatory developments, changes in taxation policy and in technology etc. Such events may impact the growth and sustainability of the Group, causing a reduction in trading activity, a drop in expected earnings, inability to liquidate and/or asset impairment etc.
In this context, the Group continually and systematically monitors developments and adapts to the environment, and calculates on an annual basis its capital requirements for business risk.
The Group also recognizes the risks associated with the changing business environment and the speed of developments in the digital operating environment, both in relation to the skills and development of its human resources, as well as in relation to the modernization of the services provided. It has given special emphasis to its digital transformation strategy and the modernization of the environment for the development and operation of its infrastructure.
Operational risk is maintained at acceptable levels, through a combination of good corporate governance and risk management, robust systems and controls.
In the 1st half of 2023 there was no incident of unavailability of transaction activity or other core services of the Group.
The Group, as an operating infrastructure of the capital market, pays particular attention to the assessment, monitoring and reduction of operational risk contained in its operations and activities, as well as the need to maintain sufficient capital in order to be able to deal with this type of risk.
The Group has processed and put into operation an appropriate infrastructure and a disaster recovery plan, and it has received and it maintains its certification in accordance with the international business continuity standard ISO-22301. These include:
The above are systematically tested in different adverse scenarios in order to ensure the operational resilience of the organization.
The Group has put into operation, within the Technology Division and under the supervision of the Risk Management Unit, all measures to protect systems and information from cyberattacks or intentional and unintentional leakage of information, in accordance with ISO 27001 standards.
The Group has integrated the reinsurance of important risks, such as Direct Financial Losses & Professional Indemnity, Directors & Officers, Cyber & Information Security, Civil Liability and others, into the responsibilities of the risk management unit, prioritizing the mitigation of identified risks and reinsuring the residual risk, with the aim of better and more direct communication with reinsurers and achieving better insurance terms.
The Group is exposed to a limited extent to market risk resulting from its activities. In each case, the Group monitors the potential exposure that may result in market risk and calculates any capital that it must maintain against market risk in accordance with the capital adequacy methodology that it applies.
The Group faces credit risk both from equity investments as well as from client balances. As part of its Investment Policy, specific principles are defined for cash deposit arrangements. Cash deposit arrangements are with the four systemic banks of the country, in approximately equal amounts, minimizing the level of credit risk.
Short term cash arrangements that do not exceed three months take place at Greek Systemic Banks, in accordance with the Investments Policy set by the management of the ATHEX Group. In particular, out of total cash and cash equivalents of the Group of €60m, approximately €43.4m is deposited in Greek systemic banks, and the remaining approximately €16.6m at the Bank of Greece.
An Alternative Performance Measure (APM) is an adjusted financial measurement of past or future financial performance, financial position or cash flows that is different from the financial measurement defined in the applicable financial reporting framework. In other words, an APM on the one hand is not exclusively based on financial statement standards, and on the other it provides material supplementary information, excluding items that may potentially differentiate from the operating results or the cash flows.
Transactions with a non-operational or non-cash valuation that have a significant effect in the Statement of Comprehensive Income are considered items that affect the adjustment of the indices to APMs. These, nonrecurring in most cases, items may arise among others from:
APMs must always be taken into consideration in conjunction with the financial results that have been drafted based on IFRS, and in no instance should they be considered as replacing them. The Athens Exchange Group used APMs for the first time in fiscal year 2016, in order to better reflect the financial and operational performance related to the activity of the Group as such in the fiscal year in question, as well as the previous comparable period.
The definition, analysis and calculation basis of the APMs used by the Group is presented below.
In accordance with the financial statements for the 1st half of 2023, the item that affect the adjustment of the indices used by the Group in order to calculate APMs is the valuation loss of the participation in Boursa Kuwait and the Belgrade Stock Exchange, which is recorded in the Statement of Comprehensive Income and the table of Other Comprehensive Income, as well as the change in the value of the real estate, due to a valuation.
| in € thousand | 01.01- 30.06.2023 |
01.01- 30.06.2022 |
|---|---|---|
| Other Comprehensive Income | ||
| Valuation of participations | (925) | 1,877 |
| Total | (925) | 1,877 |
| Earnings Before Interest, Taxes, | items affecting the | |||
|---|---|---|---|---|
| 1. EBITDA |
= | Depreciation & Amortization | - | adjustment |
| € thousand | 01.01- 30.06.2023 |
01.01- 30.06.2022 |
Deviation % |
|---|---|---|---|
| EBITDA | 9,540 | 8,033 | 19% |
| items affecting the | |||||
|---|---|---|---|---|---|
| 2. | EBIT | = | Earnings Before Interest & Taxes | - | adjustment |
| € thousand | 01.01- 30.06.2023 |
01.01- 30.06.2022 |
Deviation % |
|---|---|---|---|
| EBIT | 7,655 | 5,726 | 34% |
| € thousand | 01.01- 30.06.2023 |
01.01- 30.06.2022 |
Deviation % |
|---|---|---|---|
| EBT | 8,438 | 6,872 | 23% |
| € thousand | 01.01- 30.06.2023 |
01.01- 30.06.2022 |
Deviation % |
|---|---|---|---|
| EΑT | 6,568 | 5,371 | 22% |
| investments | Net cash flows | Net cash flows | items affecting | |
|---|---|---|---|---|
| (cash flows before financial activities in the Statement of |
6. from operating = activities |
- from investment activities |
- | the adjustment |
| Cash Flows) |
| € thousand | 01.01- 30.06.2023 |
01.01- 30.06.2022 |
Deviation % |
|---|---|---|---|
| Net cash flows from operating activities | 10,290 | 7,342 | 40% |
| Net cash flows from investment activities | (1,771) | (1,731) | 2% |
| Cash flows after investment activities | 8,519 | 5,611 | 52% |
Earnings After Taxes – items affecting the adjustment
6. Adjusted Return on Equity (ROE), % =
Total Equity (average)
| € thousand | 01.01- 30.06.2023 |
01.01- 30.06.2022 |
Deviation % |
|---|---|---|---|
| Return on Equity | 5.76% | 7.03% | (18)% |
| Net earnings for the period | 5,643 | 7,248 | (22)% |
| Items affecting the adjustment | 925 | (1,877) | (149)% |
| Total | 6,568 | 5,371 | 22% |
| Total Equity | 97,931 | 103,063 | (5)% |
| Adjusted Return on Equity | 6.71% | 5.21% | 29% |
| Deviation % | 16% | (26)% |
x 100
7. Adjusted Degree of Financial Self-Sufficiency =
Total Balance sheet – third party cash assets
x 100
x 100
| € thousand | 01.01- 30.06.2023 |
01.01- 30.06.2022 |
Deviation % |
|---|---|---|---|
| Degree of Financial Self-Sufficiency | 81% | 82% | (1)% |
| Total Equity | 97,931 | 103,063 | (5)% |
| Items affecting the adjustment | 925 | (1,877) | (149)% |
| Total (a) | 98,856 | 101,186 | (2)% |
| Total Balance Sheet - Third party cash and cash equivalents (b) | 120,709 | 125,888 | (4)% |
| Adjusted Degree of Financial Self-Sufficiency (a/b) | 82% | 80% | 2% |
| Deviation % | 1% | (2)% |
8. Adjusted EPS =
Average number of shares during the period
€ thousand 01.01- 30.06.2023 01.01- 30.06.2022 Deviation % EPS 0.097 0.121 (20)% Other comprehensive income 5,643 7,248 (22)% Adjustment items 925 (1,877) (149)% Net adjusted other comprehensive income 6,568 5,371 22% Average number of shares during the period 57,850,000 59,905,963 (3)% Adjusted EPS 0.114 0.090 27% Deviation 18% (26)%
On the publication date of the Financial report, the composition of the Boards of Directors of the Companies of the Group was the following:
| HELLENIC EXCHANGES - ATHENS STOCK EXHANGE S.A. HOLDING | ||||||
|---|---|---|---|---|---|---|
| Name | Position | |||||
| George Handjinicolaou | Chairman, independent non-executive member | |||||
| John Costopoulos | Vice Chairman, independent non-executive member | |||||
| Yianos Kontopoulos | Chief Executive Officer, executive member | |||||
| Konstantinos Vassiliou | Independent non-executive member | |||||
| Dimitrios Dosis | Independent non-executive member | |||||
| Giorgos Doukidis | Independent non-executive member | |||||
| Polyxeni Kazoli | Independent non-executive member | |||||
| Theano Karpodini | Independent non-executive member | |||||
| Nicholaos Krenteras | Independent non-executive member |
| Spyridoula Papagiannidou | Independent non-executive member |
|---|---|
| Thomas Zeeb | Independent non-executive member |
| ATHENS EXCHANGE CLEARING HOUSE S.A | |||||||
|---|---|---|---|---|---|---|---|
| Name | Position | ||||||
| George Handjinicolaou | Chairman, independent non-executive member | ||||||
| Thomas Zeeb | Vice Chairman, independent non-executive member | ||||||
| Yianos Kontopoulos | Chief Executive Officer, executive member | ||||||
| Giorgos Doukidis | Independent non-executive member | ||||||
| Polyxeni Kazoli | Independent non-executive member | ||||||
| Theano Karpodini | Independent non-executive member | ||||||
| John Costopoulos | Independent non-executive member |
| HELLENIC CENTRAL SECURITIES DEPOSITORY S.A. | |||||||
|---|---|---|---|---|---|---|---|
| Name | Position | ||||||
| George Handjinicolaou | Chairman, independent non-executive member | ||||||
| Thomas Zeeb | Vice Chairman, independent non-executive member | ||||||
| Yianos Kontopoulos | Chief Executive Officer, executive member | ||||||
| Giorgos Doukidis | Independent non-executive member | ||||||
| Polyxeni Kazoli | Independent non-executive member | ||||||
| Theano Karpodini | Independent non-executive member | ||||||
| Spyridoula Papagiannidou | Independent non-executive member |
On 8 June 2023 the General Meetings of shareholders elected the above Boards of Directors, with a three-year term of office and appointed their independent members.
There is no event that has a significant effect in the results of the Group which has taken place or was completed after 30.06.2023, the date of the 1st Half 2023 financial statements and up until the approval of the financial statements by the Board of Directors of the Company on 31.07.2023.
Athens, 31 July 2023
The Board of Directors
We have reviewed the accompanying condensed separate and consolidated statement of financial position of HELLENIC EXCHANGES - ATHENS STOCK EXCHANGE S.A. as of 30 June 2023 and the related condensed separate and consolidated statements of comprehensive income, changes in equity and cash flows for the sixmonth period then ended, and the selected explanatory notes that comprise the interim condensed financial information, which forms an integral part of the six-month financial report under Law 3556/2007.
Management is responsible for the preparation and fair presentation of this interim condensed financial information, in accordance with the International Financial Reporting Standards, as adopted by the European Union and apply for Interim Financial Reporting (International Accounting Standard "IAS 34"). Our responsibility is to express a conclusion on these interim condensed financial statements based on our review.
We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing, as incorporated into the Greek Legislation, and consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim condensed financial information is not prepared, in all material respects, in accordance with IAS 34.
Based on our review, we did not identify any material misstatement or error in the representations of the members of the Board of Directors and the information included in the six-month Board of Directors Management Report, as required under article 5 and 5a of Law 3556/2007, in respect of the accompanying condensed separate and consolidated financial information.
Athens, July 31, 2023
The Certified Public Accountant The Certified Public Accountant
Thanasis Xynas Vasiliki Tsipa
Registry Number SOEL 34081 Registry Number SOEL 58201
© 2023 Grant Thornton Chartered Accountants Management Consultants | 58 Katehaki Av., 115 25, Athens | Τ: +30 210 7280000 F: +30 210 7212222 | www.grant-thornton.gr
In accordance with the International Financial Reporting Standards
| Group | Company | ||||
|---|---|---|---|---|---|
| 01.01 | 01.01 | 01.01 | 01.01 | ||
| Notes | 30.06.2023 | 30.06.2022 | 30.06.2023 | 30.06.2022 | |
| Revenue | |||||
| Trading | 5.6 | 4,340 | 3,500 | 4,340 | 3,496 |
| Post trading | 5.7 | 10,255 | 7,970 | 0 | 0 |
| Listing | 5.8 | 2,680 | 2,417 | 1,756 | 1,641 |
| Data services | 5.9 | 1,828 | 1,820 | 1,661 | 1,664 |
| IT and digital services | 5.10 | 3,240 | 3,323 | 2,215 | 2,207 |
| Ancillary services | 5.11 | 573 | 548 | 425 | 393 |
| Total turnover | 22,916 | 19,578 | 10,397 | 9,401 | |
| Hellenic Capital Market Commission fee | (992) | (789) | (363) | (294) | |
| Total revenue | 21,924 | 18,789 | 10,034 | 9,107 | |
| Expenses | |||||
| Personnel remuneration and expenses | 5.12 | 6,928 | 5,618 | 3,860 | 3,319 |
| Third party remuneration and expenses | 5.13 | 890 | 766 | 724 | 645 |
| Maintenance / IT support | 5.14 | 1,134 | 992 | 877 | 769 |
| Building / equipment management | 5.15 | 293 | 315 | 61 | 58 |
| Utilities | 5.16 | 760 | 786 | 221 | 169 |
| Other operating expenses | 5.17 | 1,612 | 1,374 | 1,154 | 1,031 |
| Taxes | 5.18 | 767 | 905 | 444 | 523 |
| Total operating expenses before depreciation | 12,384 | 10,756 | 7,341 | 6,514 | |
| Earnings before Interest, Taxes, Depreciation & Amortization (EBITDA) |
9,540 | 8,033 | 2,693 | 2,593 | |
| Depreciation | 5.19& 5.20 |
(1,885) | (2,307) | (1,120) | (1,019) |
| Earnings Before Interest and Taxes (EBIT) | 7,655 | 5,726 | 1,573 | 1,574 | |
| Capital income | 207 | 44 | 56 | 29 | |
| Dividend income | 5.21 & 5.23 |
395 | 306 | 5,211 | 4,319 |
| Income from participations | 5.21 | 205 | 210 | 205 | 210 |
| Income from tax returns | 5.31 | 0 | 625 | 0 | 625 |
| Financial expenses | (24) | (39) | (37) | (39) | |
| Earnings Before Tax (EBT) | 8,438 | 6,872 | 7,008 | 6,718 | |
| Income tax | 5.26 & 5.31 |
(1,870) | (1,501) | (485) | (560) |
| Earnings after tax (ΕΑΤ) | 6,568 | 5,371 | 6,523 | 6,158 |
Certain amounts of the previous fiscal year have been changed (see note 5.37).
| Group | Company | |||||
|---|---|---|---|---|---|---|
| 01.01 | 01.01 | 01.01 | 01.01 | |||
| Notes | 30.06.2023 | 30.06.2022 | 30.06.2023 | 30.06.2022 | ||
| Earnings after tax (A) | 6,568 | 5,371 | 6,523 | 6,158 | ||
| Items that are not later reclassified in the results: |
||||||
| Financial assets at fair value through other income - Valuation profits / (losses) during the period |
5.23 | (1,186) | 2,406 | (1,186) | 2,406 | |
| Income tax effect | 261 | (529) | 261 | (529) | ||
| Other comprehensive income / (losses) after taxes (B) |
(925) | 1,877 | (925) | 1,877 | ||
| Total other comprehensive income after taxes (A) + (B) |
5,643 | 7,248 | 5,598 | 8,035 |
| Distributed to: | 2023 | 2022 |
|---|---|---|
| Company shareholders | 5,643 | 7,248 |
| Profits after tax per share (basic & diluted; in €) |
0.098 | 0.121 |
| Weighted average number of shares | 57,850,000 | 59,905,963 |
Any differences between the amounts in the financial statements and the corresponding amounts in the notes are due to rounding.
The notes in chapter5 form an integral part of the interim financial statements of 30.06.2023.
| Group | Company | |||||
|---|---|---|---|---|---|---|
| Note | 30.06.2023 | 31.12.2022 | 30.06.2023 | 31.12.2022 | ||
| ASSETS | BS1 | BS2 | BS3 | BS4 | ||
| Non-Current Assets | ||||||
| Tangible owner-occupied assets | 5.19 | 20,010 | 20,490 | 759 | 948 | |
| Right of use assets | 5.20 | 215 | 235 | 1,394 | 1,523 | |
| Real Estate Investments | 6,187 | 6,187 | 2,900 | 2,900 | ||
| Intangible assets | 5.19 | 6,643 | 7,128 | 4,620 | 4,859 | |
| Deferred tax | 5.26 | 49 | 48 | 0 | 0 | |
| Participations & other long term receivables | 5.21 | 6,914 | 6,821 | 51,853 | 51,760 | |
| Financial assets at fair value through other income | 5.23 | 8,811 | 9,996 | 8,811 | 9,996 | |
| 48,829 | 50,905 | 70,337 | 71,986 | |||
| Current Assets | ||||||
| Trade receivables | 5.22 | 4,103 | 3,953 | 2,144 | 2,229 | |
| Other receivables | 5.22 | 6,261 | 4,077 | 1,505 | 1,230 | |
| Financial assets valued at amortized cost | 5.23 | 1,480 | 0 | 1,480 | 0 | |
| Third party balances in Group bank accounts | 5.25 | 282,445 | 244,677 | 0 | 0 | |
| Cash and cash equivalents | 5.24 | 60,036 | 60,609 | 13,210 | 15,842 | |
| 354,325 | 313,316 | 18,339 | 19,301 | |||
| Total Assets | 403,154 | 364,221 | 88,676 | 91,287 | ||
| EQUITY & LIABILITIES | ||||||
| Equity & Reserves | ||||||
| Share capital | 5.28 | 25,346 | 25,346 | 25,346 | 25,346 | |
| Treasury stock | 5.28 | (8,333) | (8,333) | (8,333) | (8,333) | |
| Share premium | 5.28 | 157 | 157 | 157 | 157 | |
| Reserves | 5.28 | 36,933 | 44,195 | 27,391 | 34,954 | |
| Retained earnings | 5.28 | 43,828 | 39,977 | 33,777 | 29,669 | |
| Total Equity | 97,931 | 101,342 | 78,338 | 81,793 | ||
| Non-current liabilities | ||||||
| Contractual obligation | 5.27 | 1,240 | 1,498 | 438 | 480 | |
| Deferred tax | 5.26 | 3,192 | 3,344 | 1,516 | 1,719 | |
| Lease liabilities | 5.20 | 154 | 173 | 1,308 | 1,421 | |
| Employee benefit obligation | 1,859 | 1,794 | 1,145 | 1,106 | ||
| Other provisions | 90 | 60 | 30 | 0 | ||
| 6,535 | 6,869 | 4,437 | 4,726 | |||
| Current liabilities | ||||||
| Trade and other payables | 5.29 | 5,794 | 4,861 | 3,378 | 2,777 | |
| Contractual obligation | 5.27 | 1,999 | 2,132 | 755 | 879 | |
| Income tax payable | 5.31 | 1,794 | 32 | 488 | 60 | |
| Taxes payable | 5.30 | 5,983 | 3,547 | 684 | 371 | |
| Social Security | 612 | 696 | 418 | 491 | ||
| Lease liabilities | 5.20 | 61 | 65 | 178 | 190 | |
| Third party balances in Group bank accounts | 5.25 | 282,445 | 244,677 | 0 | 0 | |
| 298,688 | 256,010 | 5,901 | 4,768 | |||
| Total Liabilities | 305,223 | 262,879 | 10,338 | 9,494 | ||
| Total Equity & Liabilities | 403,154 | 364,221 | 88,676 | 91,287 | ||
Certain amounts of the previous fiscal year have been reclassified (see note 5.37).
Any differences between the amounts in the financial statements and the corresponding amounts in the notes are due to rounding.
The notes in chapter 5 form an integral part of the interim financial statements of 30.06.2023.
| Share Capital |
Treasury Stock |
Share Premium |
Reserves | Retained Earnings |
Total Equity |
|
|---|---|---|---|---|---|---|
| Balance 01.01.2022 | 25,346 | (854) | 157 | 62,107 | 21,751 | 108,507 |
| Earnings distribution to reserves | 0 | 0 | 0 | 301 | (301) | 0 |
| Share buyback | 0 | (3,634) | 0 | 0 | 0 | (3,634) |
| Dividends paid | 0 | 0 | 0 | (6,638) | (2,414) | (9,052) |
| Transactions with shareholders | 0 | (3,634) | 0 | (6,337) | (2,715) | (12,686) |
| Earnings for the period | 0 | 0 | 0 | 5,371 | 5,371 | |
| Gains / (losses) from valuation of financial | ||||||
| assets at fair value through other | 0 | 0 | 0 | 1,877 | 0 | 1,877 |
| comprehensive income | ||||||
| Other comprehensive income | 0 | 0 | 0 | 1,877 | 0 | 1,877 |
| Total comprehensive income after taxes | 0 | 0 | 0 | 1,877 | 5,371 | 7,248 |
| Balance 30.06.2022 | 25,346 | (4,488) | 157 | 57,646 | 24,402 | 103,063 |
| Balance 01.01.2023 | 25,346 | (8,333) | 157 | 44,195 | 39,977 | 101,342 |
| Earnings distribution to reserves | 0 | 0 | 0 | 301 | (301) | 0 |
| Dividends paid | 0 | 0 | 0 | (6,638) | (2,414) | (9,052) |
| Transactions with shareholders | 0 | 0 | 0 | (6,337) | (2,715) | (9,052) |
| Earnings for the period | 0 | 0 | 0 | 0 | 6,568 | 6,568 |
| Gains / (losses) from valuation of financial | ||||||
| assets at fair value through other | 0 | 0 | 0 | (925) | 0 | (925) |
| comprehensive income | ||||||
| Other comprehensive income | 0 | 0 | 0 | (925) | 0 | (925) |
| Total comprehensive income after taxes | 0 | 0 | 0 | (925) | 6,568 | 5,643 |
| Balance 30.06.2023 | 25,346 | (8,333) | 157 | 36,933 | 43,828 | 97,931 |
Any differences between the amounts in the financial statements and the corresponding amounts in the notes are due to rounding.
The notes in chapter 5 form an integral part of the annual financial statements of 30.06.2023.
| Share Capital |
Treasury Stock |
Share Premium |
Reserves | Retained Earnings |
Total Equity |
|
|---|---|---|---|---|---|---|
| Balance 01.01.2022 | 25,346 | (854) | 157 | 53,586 | 13,192 | 91,427 |
| Share buy back | 0 | (3,634) | 0 | 0 | 0 | (3,634) |
| Dividends paid | 0 | 0 | 0 | (6,638) | (2,414) | (9,052) |
| Transactions with shareholders | 0 | (3,634) | 0 | (6,638) | (2,414) | (12,686) |
| Earnings for the period | 0 | 0 | 6,158 | 6,158 | ||
| Profits/(losses) from valuation of financial | ||||||
| assets at fair value through other | 0 | 1,877 | 0 | 1,877 | ||
| comprehensive income | ||||||
| Other comprehensive income | 1,877 | 0 | 1,877 | |||
| Total other comprehensive income after taxes | 0 | 0 | 0 | 1,877 | 6,158 | 8,035 |
| Balance 30.06.2022 | 25,346 | (4,488) | 157 | 48,824 | 16,935 | 86,774 |
| Balance 01.01.2023 | 25,346 | (8,333) | 157 | 34,954 | 29,669 | 81,793 |
| Dividends paid | 0 | (6,638) | (2,414) | (9,052) | ||
| Transactions with shareholders | 0 | (6,638) | (2,414) | (9,052) | ||
| Earnings for the period | 0 | 0 | 0 | 0 | 6,523 | 6,523 |
| Profits/(losses) from valuation of financial | ||||||
| assets at fair value through other | 0 | (925) | 0 | (925) | ||
| comprehensive income | ||||||
| Other comprehensive income | 0 | 0 | 0 | (925) | 0 | (925) |
| Total other comprehensive income after taxes | 0 | 0 | 0 | (925) | 6,523 | 5,598 |
| Balance 30.06.2023 | 25,346 | (8,333) | 157 | 27,391 | 33,777 | 78,338 |
Any differences between the amounts in the financial statements and the corresponding amounts in the notes are due to rounding.
The notes in chapter 5 form an integral part of the annual financial statements of 30.06.2023.
| Group | Company | |||||
|---|---|---|---|---|---|---|
| Notes | 01.01- | 01.01- | 01.01- | 01.01- | ||
| 30.06.2023 | 30.06.2022 | 30.06.2023 | 30.06.2022 | |||
| Cash flows from operating activities | ||||||
| Earnings before tax | 8,438 | 6,872 | 7,008 | 6,718 | ||
| Plus / (minus) adjustments for | ||||||
| Depreciation | 5.19 & | 1,885 | 2,307 | 1,120 | 1,019 | |
| 5.20 | ||||||
| Staff retirement obligations | 65 | 34 | 39 | 17 | ||
| Interest Income | (207) | (44) | (56) | (29) | ||
| Dividend income | 5.21, | (395) | (306) | (5,211) | (4,319) | |
| 5.23 | ||||||
| Income from affiliates | 5.21 | (205) | (210) | (205) | (210) | |
| Interest and related expenses paid | 24 | 39 | 37 | 39 | ||
| Income from tax returns | 5.31 | 0 | (625) | 0 | (625) | |
| Plus/ (minus) adjustments for changes in working | ||||||
| capital accounts or concerning operating activities | ||||||
| Reduction/(Increase) in receivables | (2,219) | (1,821) | (75) | 273 | ||
| (Reduction)/Increase in liabilities (except loans) | 2,924 | 506 | 703 | (563) | ||
| Total adjustments for changes in working capital | 10,310 | 6,752 | 3,360 | 2,320 | ||
| Interest and related expenses paid | (20) | (35) | (7) | (5) | ||
| Tax return from previous fiscal years | 0 | 625 | 0 | 625 | ||
| Net inflows / outflows from operating activities (a) | 10,290 | 7,342 | 3,353 | 2,940 | ||
| Cash flows from investing activities | ||||||
| Purchases of tangible and intangible assets | 5.19 | (893) | (1,775) | (595) | (1,304) | |
| Purchase of financial assets valued at amortized cost | 5.23 | (1,480) | (1,480) | |||
| Interest received | 207 | 44 | 56 | 29 | ||
| Dividends received | 5.51 & | 395 | 0 | 5,211 | 4,013 | |
| 5.53 | ||||||
| Total inflows / (outflows) from investing activities (b) | (1,771) | (1,731) | 3,192 | 2,738 | ||
| Cash flows from financing activities | ||||||
| Share buy back | 5.28 | 0 | (3,634) | 0 | (3,634) | |
| Lease payments | 5.20 | (40) | (29) | (125) | (120) | |
| Dividend payments | 5.28 | (9,052) | (9,052) | (9,052) | (9,052) | |
| Total outflows from financing activities (c) | (9,092) | (12,715) | (9,177) | (12,806) | ||
| Net increase/ (decrease) in cash and cash equivalents | (573) | (7,104) | (2,632) | (7,128) | ||
| from the beginning of the period (a) + (b) + (c) | ||||||
| Cash and cash equivalents at start of period | 5.24 | 60,609 | 71,860 | 15,842 | 27,892 | |
| Cash and cash equivalents at end of period | 5.24 | 60,036 | 64,756 | 13,210 | 20,764 |
Any differences between the amounts in the financial statements and the corresponding amounts in the notes are due to rounding.
The notes in chapter 5 form an integral part of the annual financial statements of 30.06.2023.
The Company "HELLENIC EXCHANGES-ATHENS STOCK EXCHANGE S.A. (ATHEX)" with the commercial name "ATHENS STOCK EXCHANGE" was founded in 2000 (Government Gazette 2424/31.3.2000) and has General Electronic Commercial Registry (GEMI) No 003719101000 (former Companies Register No 45688/06/Β/00/30). Its head office is in the Municipality of Athens at 110 Athinon Ave, Postal Code 10442. The shares of the Company are listed in the Main Market segment of the Athens Exchange cash market.
The Company is the parent company of the Group that supports the operation of the Greek capital market. The parent company and its subsidiaries operate the organized cash and derivatives markets, carry out trade clearing, settlement and safekeeping of securities, provide comprehensive technology solutions to the Greek capital market, provide support services of other organized markets in Greece and abroad as well as other ancillary services, and promote the development of capital markets culture in Greece.
The duration of the Company is set at two hundred (200) years and commences as of the recording in the relevant Company Register by the competent supervisory authority of the administrative decision to issue a license for the incorporation of the Company and the approval of its articles of association.
The 1st half 2023 interim financial statements of the Group and the Company have been approved by the Board of Directors on 31.07.2023. The interim financial statements have been published on the internet, at www.athexgroup.gr. The interim and the annual financial statements of the subsidiaries of the Group ATHEXCSD and ATHEXClear have been published at www.athexgroup.gr.
The following table lists the companies being consolidated by ATHEX on 30.06.2023, their headquarters, activity, direct and indirect participations of the Company in their share capital, as well as the consolidation method:
| Company | Headquarters | Activity | Direct participation % |
Indirect participation % |
Total participation % |
Consolidation method |
|---|---|---|---|---|---|---|
| Hellenic Exchanges-Athens Stock Exchange (ATHEX) |
Greece | Exchange | Parent company | |||
| ATHEX subsidiaries | ||||||
| Athens Exchange Clearing House (ATHEXClear) |
Greece | Clearing of transactions |
100% | - | 100% | Full consolidation |
| Hellenic Central Securities Depository (ATHEXCSD) |
Greece | Depository | 100% | - | 100% | Full consolidation |
| ΑTHEX affiliate | ||||||
| Hellenic Energy Exchange (HenEx) | Greece | 21% | - | 21% | Equity | |
| HenEx subsidiary | ||||||
| EnΕx Clearing House (EnExClear) | Greece | - | 21% | 21% | Equity |
The company and consolidated financial statements for the 1st half of 2023 have been prepared in accordance with the International Financial Reporting Standards (IFRS) as issued by the International Accounting Standard Board (IASB) and their interpretations as issued by the International Financial Reporting Interpretations Committee (IFRIC) of IASB and adopted by the European Union and are mandatory for fiscal years starting on 1.1.2023. There are no standards and interpretations of standards that have been applied before the date they go into effect.
The financial statements for the six-month period that ended on 30.06.2023 have been drafted in accordance with the provisions of International Accounting Standard 34 "Interim Financial Report."
The attached financial statements have been drafted on the basis of historical cost (except owner-occupied assets, investments in real estate and financial assets through other income, which are valued at fair value) and the principle of "going concern", which assumes that the Company and its subsidiaries will be able to continue their operations as going concerns for the foreseeable future. In particular, the Management of the Group and the Company, taking into account the current and projected financial position of the Group and the Company and their liquidity levels (including the observance of medium-term budgets) estimates that the use of the going concern principle when drawing up the attached interim of condensed financial statements is appropriate.
The preparation of financial statements in accordance with the International Financial Reporting Standards requires that the Management of the Group make important assumptions and accounting estimates that affect the balances of the Asset and Liability accounts, the disclosure of contingent claims and liabilities on the preparation date of the Financial Statements, as well as the revenues and expenses presented in the period in question. Despite the fact that these estimates are based on the best possible knowledge of the management of the Company as regards the current conditions, actual results may differ from these estimates in the end.
Estimates and judgments are continuously evaluated, and are based on empirical data and other factors, including anticipation of future events that are to be expected under reasonable conditions. The significant estimates and judgements used in drafting the attached financial statements are presented in note 5.3.21 of the 2022 Annual Financial Report.
The basic accounting principles adopted by the Group and the Company for the preparation of the attached financial statements for the 1st half of 2023 do not differ from those used for the publication of the 2022 Annual Financial Report that has been audited by the certified auditors-accountants of the Group and is posted on the internet at www.athexgroup.gr. At the same time, the significant accounting estimates and judgement adopted by Management for the application of the accounting principles by the Company and the Group are consistent with those adopted in the annual Financial Statements of 31.12.2022.
The following new Standards, Interpretations and amendments of IFRSs have been issued by the International Accounting Standards Board (IASB), are adopted by the European Union, and their application is mandatory from or after 01.01.2023.
In May 2017, the IASB issued a new Standard, IFRS 17, which replaces an interim Standard, IFRS 4. The aim of the project was to provide a single principle-based standard to account for all types of insurance contracts, including reinsurance contracts that an insurer holds. A single principle-based standard would enhance comparability of financial reporting among entities, jurisdictions and capital markets. IFRS 17 sets out the requirements that an entity should apply in reporting information about insurance contracts it issues and reinsurance contracts it holds. Furthermore, in June 2020, the IASB issued amendments, which do not affect the fundamental principles introduced when IFRS 17 has first been issued. The amendments are designed to reduce costs by simplifying some requirements in the Standard, make financial performance easier to explain, as well as ease transition by deferring the effective date of the Standard to 2023 and by providing additional relief to reduce the effort required when applying the Standard for the first time. The above have been adopted by the European Union with effective date of 01.01.2023.
In February 2021, the IASB issued narrow-scope amendments that pertain to accounting policy disclosures. The objective of these amendments is to improve accounting policy disclosures so that they provide more useful information to investors and other primary users of the financial statements. More specifically, companies are required to disclose their material accounting policy information rather than their significant accounting policies. The above have been adopted by the European Union with effective date of 01.01.2023.
In February 2021, the IASB issued narrow-scope amendments that they clarify how companies should distinguish changes in accounting policies from changes in accounting estimates. That distinction is important because changes in accounting estimates are applied prospectively only to future transactions and other future events, but changes in accounting policies are generally also applied retrospectively to past transactions and other past events. The above have been adopted by the European Union with effective date of 01.01.2023.
In May 2021, the IASB issued targeted amendments to IAS 12 to specify how companies should account for deferred tax on transactions such as leases and decommissioning obligations – transactions for which companies recognize both an asset and a liability. In specified circumstances, companies are exempt from recognizing deferred tax when they recognize assets or liabilities for the first time. The amendments clarify that the exemption does not apply and that companies are required to recognize deferred tax on such transactions. The above have been adopted by the European Union with effective date of 01.01.2023.
In December 2021, the IASB issued a narrow-scope amendment to the transition requirements in IFRS 17 to address an important issue related to temporary accounting mismatches between insurance contract liabilities and financial assets in the comparative information presented when applying IFRS 17 Insurance Contracts" and IFRS 9 Financial Instruments" for the first time. The amendment aims to improve the usefulness of comparative information for the users of the financial statements. The above have been adopted by the European Union with effective date of 01.01.2023.
The above new Standards and Interpretations do not have any impact in the consolidated financial statements.
The following new Standards, Interpretations and amendments of IFRSs have been issued by the International Accounting Standards Board (IASB), but their application has not started yet or they have not been adopted by the European Union.
In May 2023, the International Accounting Standards Board (IASB) issued amendments to IAS 12 "Income Taxes": International Tax Reform—Pillar Two Model Rules. The amendments introduced a) a temporary exception to the requirements to recognize and disclose information about deferred tax assets and liabilities related to Pillar Two income taxes and b) targeted disclosure requirements for affected entities. Companies may apply the temporary exception immediately, but disclosure requirements are required for annual periods commencing on or after 1 January 2023. The Group will examine the impact of the above on its Financial Statements, though it is not expected to have any. The above have not been adopted by the European Union.
In January 2020, the IASB issued amendments to IAS 1 that affect requirements for the presentation of liabilities. Specifically, they clarify one of the criteria for classifying a liability as non-current, the requirement for an entity to have the right to defer settlement of the liability for at least 12 months after the reporting period. The amendments include: (a) specifying that an entity's right to defer settlement must exist at the end of the reporting period; (b) clarifying that classification is unaffected by management's intentions or expectations about whether the entity will exercise its right to defer settlement; (c) clarifying how lending conditions affect classification; and (d) clarifying requirements for classifying liabilities an entity will or may settle by issuing its own equity instruments. Furthermore, in July 2020, the IASB issued an amendment to defer by one year the effective date of the initially issued amendment to IAS 1, in response to the Covid-19 pandemic. However, in October 2022, the IASB issued an additional amendment that aim to improve the information companies provide about long-term debt with covenants. IAS 1 requires a company to classify debt as non-current only if the company can avoid settling the debt in the 12 months after the reporting date. However, a company's ability to do so is often subject to complying with covenants. The amendments to IAS 1 specify that covenants to be complied with after the reporting date do not affect the classification of debt as current or non-current at the reporting date. Instead, the amendments require a company to disclose information about these covenants in the notes to the financial statements. The amendments are effective for annual reporting periods beginning on or after 1 January 2024, with early adoption permitted. The Group will examine the impact of the above on its Financial Statements, though it is not expected to have any. The above have not been adopted by the European Union.
In September 2022, the IASB issued narrow-scope amendments to IFRS 16 "Leases" which add to requirements explaining how a company accounts for a sale and leaseback after the date of the transaction. A sale and leaseback is a transaction for which a company sells an asset and leases that same asset back for a period of time from the new owner. IFRS 16 includes requirements on how to account for a sale and leaseback at the date the transaction takes place. However, IFRS 16 had not specified how to measure the transaction when reporting after that date. The issued amendments add to the sale and leaseback requirements in IFRS 16, thereby supporting the consistent application of the Accounting Standard. These amendments will not change the accounting for leases other than those arising in a sale and leaseback transaction. The Group will examine the impact of the above on its Financial Statements, though it is not expected to have any. The above have not been adopted by the European Union.
In May 2023, the International Accounting Standards Board (IASB) issued Supplier Finance Arrangements, which amended IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures. The IASB issued Supplier Finance Arrangements to require an entity to provide additional disclosures about its supplier finance arrangements. The amendments require additional disclosures that complement the existing disclosures in these two standards. They require entities to provide users of financial statements with information that enable them a) to assess how supplier finance arrangements affect an entity's liabilities and cash flows and to understand the effect of supplier finance arrangements on an entity's exposure to liquidity risk and how the entity might be affected if the arrangements were no longer available to it. The amendments to IAS 7 and IFRS 7 are effective for accounting periods on or after 1 January 2024. The Group will examine the impact of the above on its Financial Statements, though it is not expected to have any. The above have not been adopted by the European Union.
In accordance with the provisions of IFRS 8, the determination of operating segments is based on a "management approach." Based on this approach, information that is disclosed for operating segments must be that which is based on internal organizational and managerial structures of the Group and the Company, and in the main accounts of the internal financial reports that are being provided to the chief operating decision makers. The chief business decision market of the Group is the Chief Executive Officer (Executive member of the BoD).
An operating segment is defined as a group of assets and operations exploited in order to provide products and services, each of which has different risks and returns from other business segments. For the Group, the main interest in financial information focuses on operating segments since the company's electronic systems – located at its headquarters - are at the disposal of investors irrespective of their physical location.
On 30.06.2023, 30.06.2022 and 31.12.2022 the core activities of the Group were broken down in the following operating segments:
| Group | Segment information on 30.06.2023 | |||||||
|---|---|---|---|---|---|---|---|---|
| Trading | Post trading |
Listing | Data Services |
IT and Digital Services |
Ancillary services |
Total | ||
| Revenue | 4,053 | 9,959 | 2,785 | 1,910 | 3,242 | 576 | 22,525 | |
| Capital income | 0 | 0 | 0 | 0 | 0 | 207 | 207 | |
| Expenses | (2,473) | (4,502) | (1,216) | (692) | (3,020) | (506) | (12,409) | |
| Depreciation | (558) | (899) | (131) | (93) | (170) | (33) | (1,885) | |
| Taxes | (226) | (1,010) | (319) | (249) | (12) | (54) | (1,870) | |
| Earnings after tax | 795 | 3,548 | 1,119 | 875 | 41 | 189 | 6,568 | |
| Tangible and intangible assets | 9,789 | 15,768 | 2,301 | 1,639 | 2,975 | 583 | 33,055 | |
| Cash and cash equivalents | 7,269 | 32,434 | 10,228 | 8,001 | 374 | 1,730 | 60,036 | |
| Other assets | 3,344 | 297,365 | 4,705 | 3,681 | 172 | 796 | 310,063 | |
| Total assets | 20,402 | 345,568 | 17,234 | 13,321 | 3,521 | 3,109 | 403,154 | |
| Total liabilities | 1,154 | 301,969 | 974 | 753 | 199 | 176 | 305,223 |
Revenue in the above table is reduced by the corresponding Capital Market Commission fee and increased by income from dividends, participations, tax refunds and gains from property revaluation.
| Group | Segment information on 30.06.2022 | |||||||
|---|---|---|---|---|---|---|---|---|
| Trading | Post trading |
Listing | Data Services |
IT and Digital Services |
Ancillary services |
Total | ||
| Revenue | 3,260 | 8,110 | 2,589 | 2,021 | 3,385 | 566 | 19,930 | |
| Capital income | 0 | 0 | 0 | 0 | 0 | 44 | 44 | |
| Expenses | (2,205) | (3,584) | (1,393) | (693) | (2,551) | (370) | (10,795) | |
| Depreciation | (758) | (910) | (178) | (134) | (287) | (41) | (2,307) | |
| Taxes | (65) | (790) | (222) | (261) | (120) | (43) | (1,501) | |
| Earnings after tax | 233 | 2,826 | 796 | 933 | 428 | 156 | 5,371 | |
| Segment information on 31.12.2022 | ||||||||
| Tangible and intangible assets | 9,771 | 15,515 | 2,369 | 1,688 | 4,097 | 600 | 34,040 | |
| Cash and cash equivalents | 5,033 | 29,650 | 11,806 | 12,209 | 574 | 1,337 | 60,609 | |
| Other assets | 2,060 | 256,812 | 4,832 | 4,997 | 235 | 547 | 269,482 | |
| Total assets | 16,864 | 301,976 | 19,007 | 18,893 | 4,907 | 2,484 | 364,131 | |
| Total liabilities | 839 | 259,697 | 945 | 940 | 244 | 124 | 262,790 |
Revenue in the above table is reduced by the corresponding Hellenic Capital Market Commission fee and increased by any income from dividends, participations, tax refunds and real estate valuation gains.
The Athens Exchange General Index closed on 30.06.2023 at 1,278.6 points, 57.8% higher than the close at the end of the 1st half of 2022 (810.4 points). In the 1st half of 2023 the average capitalization of the market was €76.0bn, increased by 17.3% compared to the corresponding period in 2022 (€64.8bn).
The total value of transactions in the 1st half of 2023 (€13.5bn) is 23.9% higher compared to the corresponding period in 2022 (€10.9bn), while the average daily traded value was €110.6m compared to €91.0m in the 1st half of 2022, increased by 21.5%.
In the 1st half of 2023, capital totaling €579.8m was raised.
Revenue from trading is analyzed in the table below:
| Group | Company | |||
|---|---|---|---|---|
| 30.06.2023 | 30.06.2022 | 30.06.2023 | 30.06.2022 | |
| Shares | 3,546 | 2,878 | 3,546 | 2,874 |
| Derivatives | 406 | 305 | 406 | 305 |
| Member subscriptions | 376 | 303 | 376 | 303 |
| Bonds | 10 | 14 | 10 | 14 |
| ETFs | 2 | 0 | 2 | 0 |
| Total | 4,340 | 3,500 | 4,340 | 3,496 |
Revenue from post trading is analyzed in the following table:
| Group | Company | |||
|---|---|---|---|---|
| 30.06.2023 | 30.06.2022 | 30.06.2023 | 30.06.2022 | |
| Clearing - equities | 5,275 | 4,244 | 0 | 0 |
| Clearing - derivatives | 962 | 725 | 0 | 0 |
| Clearing – other (orders-transfers-allocations) | 885 | 798 | 0 | 0 |
| Settlement | 1,658 | 947 | 0 | 0 |
| Operator subscriptions | 1,168 | 984 | 0 | 0 |
| Services to operators / participants | 245 | 210 | 0 | 0 |
| Member subscriptions | 62 | 62 | 0 | 0 |
| Total | 10,255 | 7,970 | 0 | 0 |
The increase in revenue from the clearing of transactions is due to the increase in trading activity in 2023 compared to the corresponding period last year.
Certain amounts of the previous fiscal year have been changed (see note 5.37).
Revenue from this category includes revenue for quarterly subscriptions and corporate actions such as rights issues from ATHEX listed companies.
SIX MONTH 2023 FINANCIAL REPORT
| Group | Company | |||
|---|---|---|---|---|
| 30.06.2023 | 30.06.2022 | 30.06.2023 | 30.06.2022 | |
| Listed company subscriptions | 1,363 | 1,290 | 1,249 | 1,179 |
| Corporate actions (1) | 975 | 878 | 395 | 364 |
| Initial Public Offers (IPOs) | 162 | 89 | 88 | 63 |
| Other services to issuers | 135 | 113 | 14 | 18 |
| Greek government securities | 9 | 15 | 7 | 12 |
| Bonds | 36 | 32 | 3 | 5 |
| Total | 2,680 | 2,417 | 1,756 | 1,641 |
(1) Fees collected from corporate actions by listed companies includes rights issues by companies and the listing of corporate bonds. Part of the corporate actions that were invoiced in 2023 concerning rights issues and new listings has been transferred to future fiscal years (See note 5.27, contractual obligations).
Revenue from this category includes the rebroadcast of Athens Stock Exchange and Cyprus Stock Exchange market data, as well as revenue from the sale of statistical information.
| Group | Company | |||
|---|---|---|---|---|
| 30.06.2023 | 30.06.2022 | 30.06.2023 | 30.06.2022 | |
| Revenue from Market Data | 1,469 | 1,483 | 1,632 | 1,641 |
| Revenue from Inbroker | 333 | 317 | 2 | 2 |
| Statistics sales | 26 | 20 | 27 | 21 |
| Total | 1,828 | 1,820 | 1,661 | 1,664 |
Revenue from this category includes revenue from digital services, infrastructure and technological solutions to the Energy Exchange Group, the Cyprus Stock Exchange and Boursa Kuwait. The same category includes revenue from Electronic Book Building [EBB], Axialine, Axia e-Shareholders Meeting, Colocation, PKI, ARM-APA, EMIR TR, SFTR, LEI, ATHEXNet and other licenses.
| Group | Company | |||
|---|---|---|---|---|
| 30.06.2023 | 30.06.2022 | 30.06.2023 | 30.06.2022 | |
| Digital services | 1,156 | 1,215 | 485 | 505 |
| Infrastructure | 950 | 949 | 806 | 769 |
| Technological solutions | 445 | 494 | 377 | 414 |
| Licenses | 689 | 663 | 547 | 519 |
| Total | 3,240 | 3,321 | 2,215 | 2,207 |
Certain amounts of the previous fiscal year have been changed. See note 5.37.
Revenue from ancillary services mainly concern revenue from supporting the Energy Exchange Group, rents and other revenue.
| Group | Company | |||
|---|---|---|---|---|
| 30.06.2023 | 30.06.2022 | 30.06.2023 | 30.06.2022 | |
| Support services | 249 | 242 | 108 | 101 |
| Rents | 179 | 177 | 98 | 98 |
| Education | 4 | 20 | 3 | 20 |
| Investor services | 48 | 42 | 0 | 0 |
| Grants | 39 | 0 | 39 | 0 |
| Other | 54 | 69 | 177 | 174 |
| Total | 573 | 550 | 425 | 393 |
Certain amounts of the previous fiscal year have been changed. See note 5.37.
The change in the number of employees of the Group and the Company, as well as the breakdown in staff remuneration is shown in the following table.
| Group | Company | |||
|---|---|---|---|---|
| 30.06.2023 | 30.06.2022 | 30.06.2023 | 30.06.2022 | |
| Salaried staff | 246 | 225 | 124 | 116 |
| Total Personnel | 246 | 225 | 124 | 116 |
| Group | Company | |||
|---|---|---|---|---|
| 30.06.2023 | 30.06.2022 | 30.06.2023 | 30.06.2022 | |
| Personnel remuneration | 5,361 | 3,971 | 2,980 | 2,298 |
| Social security contributions | 934 | 877 | 541 | 497 |
| Other benefits | 556 | 449 | 288 | 220 |
| Termination benefits | 12 | 287 | 12 | 287 |
| Personnel actuarial study | 65 | 34 | 39 | 17 |
| Total | 6,928 | 5,618 | 3,860 | 3,319 |
Personnel Remuneration as at 30.06.2023 includes a proportion of the Bonus provision for the 2023 fiscal year, which did not exist in the first half of 2022.
Third party fees and expenses include the remuneration of the members of the BoDs of all the companies of the Group.
| Group | Company | |||
|---|---|---|---|---|
| 30.06.2023 | 30.06.2022 | 30.06.2023 | 30.06.2022 | |
| Fees to consultants | 458 | 381 | 341 | 314 |
| Remuneration to BoD & Committee members | 340 | 237 | 311 | 209 |
| Other remuneration | 7 | 46 | 6 | 45 |
| Fees to FTSE | 46 | 55 | 46 | 55 |
| Fees to auditors | 39 | 47 | 20 | 22 |
| Total | 890 | 766 | 724 | 645 |
Maintenance and IT support includes expenses for the maintenance of the Group's technical infrastructure and support for the IT systems (technical support for the electronic trading platforms, databases, Registry [DSS] etc.).
In the 1st half of 2023 the amount for the Group was €1,134 thousand compared to €992 thousand in the 1st half of 2022, increased by 14.3%, while for the Company the corresponding amounts were €877 thousand in the 1st half of 2023 vs. €769 thousand in 2022, increased by14%.
This category includes expenses such as: security and cleaning services, building and equipment maintenance and repairs, and is analyzed in the table below:
| GROUP | COMPANY | |||
|---|---|---|---|---|
| 30.06.2023 | 30.06.2022 | 30.06.2023 | 30.06.2022 | |
| Cleaning and building security services | 201 | 195 | 57 | 51 |
| Building- other equip. repair and maintenance | 76 | 84 | 4 | 7 |
| Other | 16 | 36 | 0 | 0 |
| Total | 293 | 315 | 61 | 58 |
In this category, the expenses of the Group decreased by 3.3% and are analyzed in the table below. This category mainly concerns electricity, fixed and mobile telephony costs, ATHEXNet leased lines and water.
| Group | Company | |||||
|---|---|---|---|---|---|---|
| 30.06.2023 | 30.06.2022 | 30.06.2023 | 30.06.2022 | |||
| Fixed - mobile telephony - internet | 96 | 81 | 61 | 28 | ||
| Leased lines - ATHEXNet | 139 | 121 | 138 | 116 | ||
| Electricity | 525 | 584 | 22 | 25 | ||
| Total | 760 | 786 | 221 | 169 |
This category mainly concerns insurance premiums, promotional expenses, XNET, Inbroker, and other expenses, and is analyzed in the following table. Line Other mainly concerns transportation expenses - €69 thousand, travel expenses - €67 thousand; rents - €50 thousand et al.
| Group | Company | |||||
|---|---|---|---|---|---|---|
| 30.06.2023 | 30.06.2022 | 30.06.2023 | 30.06.2022 | |||
| Insurance premiums | 349 | 371 | 340 | 358 | ||
| Subscriptions | 271 | 294 | 243 | 269 | ||
| Promotional expenses | 202 | 101 | 191 | 92 | ||
| XNET / Inbroker expenses | 163 | 170 | 7 | 23 | ||
| LEI - EMIR TR- SFTR expenses | 232 | 157 | 0 | 0 | ||
| Other | 395 | 281 | 373 | 289 | ||
| Total | 1,612 | 1,374 | 1,154 | 1,031 |
The taxes that burden the results of the fiscal year (Property Tax, value added tax, stamp duty etc.) for the Group amounted to €767 thousand in the 1st half of 2023 compared to €905 thousand in the corresponding period last year. For the Company, taxes amounted to €444 thousand vs. €523 thousand in the corresponding period last year.
The tangible assets of the Group on 30.06.2023 amounted to €20,010 thousand compared to €20,490 thousand on 31.12.2022. The reduction is due to depreciation amounting to €595 for the period (mainly concerning the buildings of the Group), as well as additions of buildings, machinery and other equipment - €115 thousand.
The tangible assets of the Company on 30.06.2023 amounted to €759 thousand compared to €948 thousand on 31.12.2022. The reduction is due to depreciation amounting to €201 thousand (mainly concerning other equipment), as well as additions of other equipment - €12 thousand.
During 2022, the management of the Company and the Group reassessed the useful life of the "Buildings and technical works" category. The useful life of buildings and technical works was determined to be 50 years from 25 years. In determining it, management took into account current market conditions, the condition of its owneroccupied buildings and the estimates obtained from the independent property appraiser as part of the study carried out to determine their fair value.
On 30.06.2023 there were no encumbrances on the fixed assets of the Companies of the Group.
The intangible assets of the Group on 30.06.2023 amounted to €6,643 thousand compared to €7,128 thousand on 31.12.2022. The increase is due to the addition of software in the amount of €414 thousand and internally created systems in the amount of €358 thousand less software depreciation for the period of €824 thousand and internally created systems of €433 thousand.
The intangible assets of the Company on 30.06.2023 amounted to €4,620 thousand compared to €4,859 thousand on 31.12.2022. The increase is due to the addition of software in the amount of €414 thousand and internally created systems in the amount of €169 thousand less software depreciation for the period of €602 thousand and internally created systems of €220 thousand.
The rights-of-use and the lease liabilities of the Group and the Company are presented in the following tables:
| Assets right of use - Group | 30.06.2023 | 31.12.2022 |
|---|---|---|
| Real Estate | 0 | 15 |
| Means of transport | 215 | 220 |
| 215 | 235 | |
| Lease obligations | ||
| Long-term lease obligations | 154 | 173 |
| Short-term lease obligations | 61 | 65 |
| 215 | 238 |
| Assets right of use - Company | 30.06.2023 | 31.12.2022 |
|---|---|---|
| Real Estate | 1,243 | 1,331 |
| Means of transport | 151 | 192 |
| 1,394 | 1,523 | |
| Lease obligations | ||
| Long-term lease obligations | 1,308 | 1,421 |
| Short-term lease obligations | 178 | 190 |
| 1,486 | 1,611 |
The analysis of the participations and other long term claims of the Group on 30.06.2023 is shown in the table below.
| Group | Company | |||
|---|---|---|---|---|
| 30.06.2023 | 31.12.2022 | 30.06.2023 | 31.12.2022 | |
| Participation in subsidiaries | 0 | 0 | 45,300 | 45,300 |
| Participation in affiliates (1) | 2,098 | 2,008 | 2,098 | 2,008 |
| Management committee reserve | 12 | 12 | 1 | 1 |
| Lease guarantees | 83 | 80 | 33 | 30 |
| Dividend tax withheld for offset (2) | 4,721 | 4,721 | 4,421 | 4,421 |
| Total | 6,914 | 6,821 | 51,853 | 51,760 |
be recovered from the tax authorities. The Group and the Company measure current tax claims both initially and subsequently at the amount expected to be recovered from the tax authorities. Management estimates that there is no risk that the claim will not be recovered.
The breakdown of the participations of the parent Company in the subsidiaries of the Group on 30.06.2023 is shown below:
| % of direct participation |
Number of shares / total number of shares |
Cost 30.06.2023 |
Cost 31.12.2022 |
|
|---|---|---|---|---|
| ATHEXCSD (former TSEC) |
100 | 802.600 | 32,380 | 32,380 |
| ATHEXClear | 100 | 8,500,000 | 12,920 | 12,920 |
| Total | 45,300 | 45,300 |
In the 1st half of 2023 the Company received dividend amounting to €6.00 per share from the ATHEXCSD subsidiary for fiscal year 2022, amounting to €4,815,600.
All claims are short term and no discounting is required on the date of the statement of financial position. The breakdown of clients and other receivables is shown in the following table:
| Group | Company | ||||
|---|---|---|---|---|---|
| 30.06.2023 | 31.12.2022 | 30.06.2023 | 31.12.2022 | ||
| Clients | 6,004 | 5,852 | 3,808 | 3,891 | |
| Less: expected credit losses | (1,901) | (1,899) | (1,664) | (1,662) | |
| Net commercial receivables | 4,103 | 3,953 | 2,144 | 2,229 | |
| Other receivables | |||||
| Tax (0.20%) (1) | 4,430 | 2,606 | 0 | 0 | |
| HCMC fee claim | 21 | 21 | 21 | 21 | |
| Taxes withheld on deposits | 35 | 8 | 12 | 5 | |
| Prepaid non-accrued expenses (2) | 370 | 602 | 370 | 546 | |
| Contractual claims (3) | 1,036 | 546 | 931 | 546 | |
| Other withheld taxes | 12 | 10 | 11 | 10 | |
| Other debtors | 357 | 284 | 160 | 102 | |
| Total other receivables | 6,261 | 4,077 | 1,505 | 1,230 |
The provisions for expected credit losses are analyzed in the table below:
| Expected credit losses | Group | Company |
|---|---|---|
| Balance on 31.12.2021 | 1,637 | 1,525 |
| Provision reversal in 2022 | 262 | 137 |
| Balance on 31.12.2022 | 1,899 | 1,662 |
| Provision reversal | (16) | (16) |
| Additional provisions in 2023 | 18 | 18 |
| Balance on 30.06.2023 | 1,901 | 1,664 |
The book value of the claims above reflects their fair value.
On 30.06.2023 financial assets at fair value through other income includes the shares that the Group has acquired in Boursa Kuwait as well as in the Belgrade Stock Exchange.
The shares of Boursa Kuwait posted a valuation loss of €1,186 thousand compared to 31.12.2022 which was accounted in the special securities valuation reserve, from which the corresponding deferred tax of €261 thousand was subtracted.
The GM of Boursa Kuwait decided to distribute dividend for fiscal year 2022. The Company recognized income of €396 thousand in 2023.
The change in the value of the 0.779% participation in Boursa Kuwait and the 10.24% participation in the Belgrade Stock Exchange are analyzed below:
| Group | Company | |||
|---|---|---|---|---|
| 30.06.2023 | 31.12.2022 | 30.06.2023 | 31.12.2022 | |
| Participation in the Belgrade Stock Exchange | ||||
| Balance - start of the period | 193 | 155 | 193 | 155 |
| Profit / (Loss) from the valuation of the participation recognized in the Statement of Comprehensive Income |
0 | 38 | 0 | 38 |
| Balance - end of period | 193 | 193 | 193 | 193 |
| Participation in Boursa Kuwait | ||||
| Balance - start of the period | 9,804 | 9,223 | 9,804 | 9,223 |
| Profit / (Loss) from the valuation of the participation recognized in the Statement of Comprehensive Income |
(1,186) | 581 | (1,186) | 581 |
| Balance - end of period | 8,618 | 9,804 | 8,618 | 9,804 |
| Grand total | 8,811 | 9,996 | 8,811 | 9,996 |
On 30.06.2023 financial assets valued at amortized cost include 6-month Greek Government Bonds which the Company acquired during the 1st half, valued at €1,480 thousand.
The cash at hand and at bank of the Group are invested in short term interest bearing instruments in order to maximize the benefits, in accordance with the policy set by the Company and the Group.
On 30.06.2023, a significant portion (24%) of the cash of the Group is, due to compliance of ATHEXClear with the EMIR Regulation, kept at the Bank of Greece (BoG). Deposits of the Group at the BoG from 18.09.2019 up until 26.07.2022 carried a negative interest rate of 0.5%.
The breakdown of the cash at hand and at bank of the Group is as follows:
| Group | Company | |||
|---|---|---|---|---|
| 30.06.2023 | 31.12.2022 | 30.06.2023 | 31.12.2022 | |
| Deposits at the Bank of Greece | 16,637 | 14,661 | 0 | 0 |
| Sight deposits in commercial banks | 3,466 | 25,944 | 2,378 | 9,840 |
| Time deposits < 3 months | 39,927 | 20,000 | 10,830 | 6,000 |
| Cash at hand | 6 | 4 | 2 | 2 |
| Total | 60,036 | 60,609 | 13,210 | 15,842 |
Third party balances in bank accounts of the Group is a memo account for the margins that ATHEXClear receives from its Members for the derivatives market and the cash market. ATHEXClear manages Member margins, which in accordance with the investment policy for deposits, are placed with the Bank of Greece.
Implementation of the ATHEXClear investment policy begun together with the application of the new clearing model and risk management in the derivatives market on 1.12.2014. The amounts of €282,445 thousand on 30.06.2023 and €244,677 thousand on 31.12.2022 respectively shown below and in the Statement of Financial Position on 30.06.2023 and 31.12.2022 respectively, concern exclusively Member collaterals in the cash and derivatives markets as well as XNET.
| Group | Company | |||
|---|---|---|---|---|
| 30.06.2023 | 31.12.2022 | 30.06.2023 | 31.12.2022 | |
| Clearing Fund accounts – Cash Market | 14,533 | 11,155 | 0 | 0 |
| Additional Clearing Fund collaterals – Cash Market | 146,434 | 140,706 | 0 | 0 |
| Clearing Fund accounts – Derivatives Market | 18,853 | 12,827 | 0 | 0 |
| Additional Clearing Fund collaterals – Derivatives Market | 101,774 | 79,176 | 0 | 0 |
| Members Guarantees in cash for Χ-ΝΕΤ et al. (1) | 851 | 813 | 0 | 0 |
| Third party balances | 282,445 | 244,677 | 0 | 0 |
(1) On 30.06.2023, at the bank accounts of the Group with commercial banks, dormant client balances of the Clearing Fund amounting to €35 thousand were kept, and the amount of €816 thousand concerning returns from bond interest payments to deceased beneficiaries and from forced sales.
The deferred tax obligations of the Group dropped from €3,296 thousand on 31.12.2022 to €3,143 thousand on 30.06.2023. This reduction is mainly due to the decrease in deferred tax obligations by €261 thousand due to the decrease in the valuation of the participation in Boursa Kuwait, as well as due to the decrease in the deferred tax claim from other provisions by the amount of €84 thousand due to the reduction in the amount concerning Contractual Obligations.
As part of IFRS 15, revenue from new listings at ATHEX, as well as rights issues that take place during the fiscal year are considered to concern not only the fiscal year during which they are paid, but must be recognized and allocated to the duration that the company remains listed at ATHEX, during which the service is expected to be provided.
The contractual obligations by service, on 30.06.2023 and 31.12.2022 for the Group and the Company are analyzed as follows:
| Group | Short-term contractual obligations |
Long-term contractual obligations |
|---|---|---|
| New listings | 196 | 445 |
| Rights issues | 1,803 | 795 |
| 1,999 | 1,240 |
| Company | Short-term contractual obligations |
Long-term contractual obligations |
|---|---|---|
| New listings | 118 | 198 |
| Rights issues | 637 | 240 |
| 755 | 438 |
| Group | Short-term contractual obligations |
Long-term contractual obligations |
|---|---|---|
| New listings | 232 | 381 |
| Rights issues | 1,900 | 1,117 |
| 2,132 | 1,498 |
| Company | Short-term contractual obligations |
Long-term contractual obligations |
|---|---|---|
| New listings | 160 | 146 |
| Rights issues | 719 | 334 |
| 879 | 480 |
| Number of shares | Par value (€) | Share Capital (€) | Share Premium (€) | |
|---|---|---|---|---|
| Total 01.01.2022 | 60,348,000 | 0.42 | 25,346,160 | 157,084 |
| Total 31.12.2022 | 60,348,000 | 0.42 | 25,346,160 | 157,084 |
| Total 31.06.2023 | 60,348,000 | 0.42 | 25,346,160 | 157,084 |
| Group | Company | |||
|---|---|---|---|---|
| 30.06.2023 | 31.12.2022 | 30.06.2023 | 31.12.2022 | |
| Regular Reserve (1) | 17,356 | 23,693 | 14,839 | 21,478 |
| Tax free and specially taxed reserves | 10,735 | 10,737 | 10,281 | 10,281 |
| Treasury stock reserve | (12,669) | (12,669) | (12,669) | (12,669) |
| Real estate revaluation reserve | 8,201 | 8,201 | 1,906 | 1,907 |
| Other | 5,982 | 5,982 | 5,982 | 5,982 |
| Special securities valuation reserve (2) | 5,943 | 6,866 | 5,943 | 6,866 |
| Reserve from stock option plan to employees | 1,385 | 1,385 | 1,109 | 1,109 |
| Total | 36,933 | 44,195 | 27,391 | 34,954 |
The General Meeting on 31.05.2021 decided to grant authorization for the Company to acquire own shares in accordance with the terms and conditions of article 49 of Law 4548/2018, for a time period not to exceed twelve (12) months, at a minimum price of €0.49 and a maximum price of €5.00 per share. The maximum number of own shares acquired will not exceed 10% of the paid-in share capital.
The share buyback program began on 3.12.2021 and was completed on 30.11.2022. The Company possesses 2,498,000 shares, at an average acquisition price of €3.336 per share and a total cost of €8.33m; these shares correspond to 4.14% of the voting rights of the Company.
The General Meeting on 08.06.2023 decided to grant authorization for the Company to acquire own shares in accordance with the terms and conditions of article 49 of Law 4548/2018, for a time period not to exceed twentyfour (24) months, at a minimum price of €0.42 and a maximum price of €6.00 per share. The maximum number of own shares acquired will not exceed 10% of the paid-in share capital.
There were no share purchases under the new program up until 31.07.2023.
The retained earnings of the Group of €39,977 thousand on 31.12.2022 amounted to €43,828 thousand on 30.06.2023, as they increased by €6,568 thousand in comprehensive income in the 1st half, and were reduced by the formation of a regular reserve of €301 thousand and by the amount of €2,414 thousand in dividends paid.
The retained earnings of the Company of €29,669 thousand on 31.12.2022 amounted to €33,777 thousand on 30.06.2023, as they increased by €6,523 thousand in comprehensive income in the 1st half and were reduced by the amount of €2,414 thousand in dividends paid.
All liabilities are short term and, therefore, no discounting on the date of the financial statements is required. The breakdown of suppliers and other liabilities are shown in the following table:
| Group | Company | |||
|---|---|---|---|---|
| 30.06.2023 | 31.12.2022 | 30.06.2023 | 31.12.2022 | |
| Suppliers | 1,578 | 2,323 | 909 | 1,176 |
| Hellenic Capital Market Commission Fee | 991 | 598 | 363 | 202 |
| Dividends payable | 9 | 12 | 9 | 12 |
| Accrued third party services | 699 | 349 | 541 | 278 |
| Employee remuneration payable | 1,339 | 887 | 713 | 531 |
| Share capital return to shareholders | 79 | 79 | 79 | 79 |
| Prepaid revenue | 400 | 299 | 295 | 262 |
| Various creditors | 699 | 314 | 469 | 237 |
| Total | 5,794 | 4,861 | 3,378 | 2,777 |
The analysis of taxes payable of the Group and the Company are presented in the table below:
| Group | Company | |||
|---|---|---|---|---|
| 30.06.2023 | 31.12.2022 | 30.06.2023 | 31.12.2022 | |
| Tax on stock sales 0.20% | 5,023 | 2,962 | 0 | 0 |
| Payroll taxes | 337 | 361 | 211 | 234 |
| Tax on external associates | 6 | 5 | 5 | 5 |
| VAT-Other taxes | 617 | 219 | 468 | 132 |
| Total | 5,983 | 3,547 | 684 | 371 |
ATHEXCSD, as full legal successor to the Central Securities Depository, based on article 9 §2 of Law 2579/88 as amended by Law 2742/99, acts as an intermediary and collects from ATHEX members the tax (0.20%) on stock sales that take place on ATHEX which it turns over to the Greek State. The amount of €5.02m corresponds to the tax (0.20%) on stock sales for June 2023 and was turned over to the Greek State in July 2023.
Income tax has been calculated based on the rules of tax legislation. Non-deductible expenses mainly include provisions, various expenses as well as amounts which the Company considers that they will not be considered justifiable production expenses in a potential tax audit and which are adjusted by management when the income tax is calculated.
| Tax liabilities | Group | Company | ||
|---|---|---|---|---|
| 30.06.2023 | 31.12.2022 | 30.06.2023 | 31.12.2022 | |
| Liabilities / (claims) start | 32 | 1,286 | 60 | (254) |
| Income tax expense | 1,762 | 1,711 | 428 | 100 |
| Return of income tax prepayment | 0 | 223 | 0 | 214 |
| Taxes paid | 0 | (3,188) | 0 | 0 |
| Liabilities / (claims) end | 1,794 | 32 | 488 | 60 |
| Group | Company | |||
|---|---|---|---|---|
| 30.06.2023 | 30.06.2022 | 30.06.2023 | 30.06.2022 | |
| Income Tax | 1,762 | 1,173 | 428 | 213 |
| Deferred Tax | 107 | 328 | 57 | 347 |
| Income tax expense / (revenue) | 1,870 | 1,501 | 485 | 560 |
| Group | Company | |||
|---|---|---|---|---|
| Income tax | 30.06.2023 | 30.06.2022 | 30.06.2023 | 30.06.2022 |
| Earnings before taxes | 8,438 | 6,872 | 7,008 | 6,718 |
| Income tax rate | 22% | 22% | 22% | 22% |
| Expected income tax expense | 1,856 | 1,512 | 1,542 | 1,478 |
| Tax effect of non-taxable income | (30) | (74) | (1,090) | (965) |
| Tax effect of non-deductible expenses | 44 | 63 | 32 | 47 |
| Income tax expense / (revenue) | 1,870 | 1,501 | 485 | 560 |
The Company was tax audited for tax years 2008, 2009 and 2010 by the Large Corporation Audit Center (KEMEP) in accordance with audit order 760/4/1118/22.12.2015. On 11.7.2016 the Company was notified about the acts of temporary corrective tax determination and audit findings note by the Large Corporation Audit Center (KEMEP).
Within the time limits of the law, on 30.9.2016, the Company filed an administrative appeal in accordance with article 63 of Law 4174/2013 at the Dispute Settlement Division (DED) of the General Secretariat of Public Revenue (GGDE), against the findings of the tax audit, and at the same time paid 100% of the amount due i.e. €1,562 thousand, in order to avoid the accumulation, calculation and assessment of interest for the duration of the suspension of the sum due (article 53 §1 of law 4174/2013).
The result of the Company's appeal before the Dispute Settlement Division (DED), was the reduction of the assessed additional taxes and surcharges by the amount of €579 thousand, an amount which has already been returned to the Company by the Tax Office through netting with tax liabilities of the Company. Subsequently, the Company exercised its right to further appeal to the Administrative Courts in order to be reimbursed the remaining amount of additional taxes and surcharges totaling €983 thousand. The Company received a summons and appeared before the Administrative Court of Appeal for the hearing of its case, which with decision no. 3901/2018 referred the case to the competent Three-Member Administrative Court of First Instance of Athens.
On February 9, 2022, the Company was notified of decisions no. 113/2022 and 114/2022 of the Administrative Court of First Instance of Athens with which the appeal of the Company was partially accepted and as a result on 5 April 2022 the amount of €625 thousand was returned. On 8 April 2022 the Company appealed to the Administrative Court of Appeals for the return of the amount of €270 thousand, which were determined and discussed on 29 July 2022, for which a decision is awaited.
The value of transactions and the balances of the Group with related parties are analyzed in the following table:
| Group | Company | |||
|---|---|---|---|---|
| 30.06.2023 | 30.06.2022 | 30.06.2023 | 30.06.2022 | |
| Remuneration of executives and members of the BoD | 1,301 | 1,162 | 1,060 | 937 |
| Cost of social security | 224 | 177 | 179 | 133 |
| Other compensation | 0 | 658 | 0 | 658 |
| Total | 1,525 | 1,997 | 1,239 | 1,729 |
The intra-Group balances on 30.06.2023 and 31.12.2022, as well as the intra-Group transactions of the companies of the Group on 30.06.2023 and 30.06.2022 are shown below:
| INTRA-GROUP BALANCES 30.06.2023 | ||||
|---|---|---|---|---|
| ATHEX | ATHEXCSD | ATHEXCLEAR | ||
| ATHEX | Claims | 0 | 74 | 0 |
| Liabilities | 0 | 11 | 0 | |
| ATHEXCSD | Claims | 11 | 0 | 682 |
| Liabilities | 74 | 0 | 2 | |
| ATHEXCLEAR | Claims | 0 | 2 | 0 |
| Liabilities | 0 | 682 | 0 |
| INTRA-GROUP BALANCES 31.12.2022 | ||||
|---|---|---|---|---|
| ATHEX | ATHEXCSD | ATHEXCLEAR | ||
| ATHEX | Claims | 0 | 71 | 0 |
| Liabilities | 0 | 2 | 0 | |
| ATHEXCSD | Claims | 2 | 0 | 502 |
| Liabilities | 71 | 0 | 2 | |
| ATHEXCLEAR | Claims | 0 | 2 | 0 |
| Liabilities | 0 | 502 | 0 |
| INTRA-GROUP REVENUES-EXPENSES 01.01 - 30.06.2023 | ||||
|---|---|---|---|---|
| ATHEX | ATHEXCSD | ATHEXCLEAR | ||
| ATHEX | Revenue | 0 | 238 | 56 |
| Expenses | 0 | 193 | 0 | |
| Dividend Income | 0 | 4,816 | 0 | |
| ATHEXCSD | Revenue | 193 | 0 | 3,886 |
| Expenses | 238 | 0 | 0 | |
| ATHEXCLEAR | Revenue | 0 | 0 | 0 |
| Expenses | 56 | 3,886 | 0 |
| INTRA-GROUP REVENUES-EXPENSES 01.01 - 30.06.2022 | ||||
|---|---|---|---|---|
| ATHEX | ATHEXCSD | ATHEXCLEAR | ||
| ATHEX | Revenue | 0 | 231 | 37 |
| Expenses | 0 | 223 | 0 | |
| Dividend Income | 0 | 4,013 | 0 | |
| ATHEXCSD | Revenue | 223 | 0 | 3,642 |
| Expenses | 231 | 0 | 0 | |
| ATHEXCLEAR | Revenue | 0 | 0 | 0 |
| Expenses | 37 | 3,642 | 0 |
Intra-Group transactions concern the fee for settlement services from ATHEXCSD to ATHEXClear, market data rebroadcast services from ATHEX to ATHEXCSD, the provision of administrative support services between the companies of the Group, as well as other services which are invoiced at prices comparative to those between third parties.
For the affiliated company HELLENIC ENERGY EXCHANGE, the table of claims and revenue for the 1st half of 2023 and the corresponding period in 2022 follows below:
| Claims (in € thousand) | 30.06.2023 | 31.12.2022 |
|---|---|---|
| ATHEX | 422 | 614 |
| ATHEXCSD | 114 | 78 |
| ATHEXClear | 15 | 9 |
| Revenue (in € thousand) | 01.01 -30.06.2023 | 01.01 -30.06.2022 |
|---|---|---|
| ATHEX | 432 | 457 |
| ATHEXCSD | 133 | 133 |
| ATHEXClear | 15 | 15 |
In the first half of 2023 the Group recognized dividend of €116 thousand, which has not been collected up until 30.06.2023.
For the affiliated company EnΕx CLEARING HOUSE, the table of claims and revenue for the 1st half of 2023 and the corresponding period in 2022 follows below:
| Claims (in € thousand) | 30.06.2023 | 31.12.2022 |
|---|---|---|
| ATHEX | 122 | 37 |
| ATHEXCSD | 30 | 20 |
| ATHEXClear | 5 | 3 |
| Revenue (in € thousand) | 01.01 -30.06.2023 | 01.01 -30.06.2022 |
|---|---|---|
| ATHEX | 220 | 248 |
| ATHEXCSD | 33 | 33 |
| ATHEXClear | 5 | 5 |
The Group is involved in litigation with employees, members of the Athens Exchange, listed companies as well as with third parties. The management of the Group and its legal counsel estimate that the outcome of these cases will not have a significant effect on the economic situation, financial position or the results of the operation of the Group and the Company.
.
A major consideration of the Athens Exchange Group is the management of risk that arises from international developments in the sector, its business activities and its business operation.
The Group, as operator of the capital market, has developed a framework for managing the risks to which it is exposed, ensuring its viability and development, and contributing to the stability and security of the capital
market. Risk management is recognized as part of its supervisory functions which, together with the regulatory compliance system, form the second level of defense of the organization.
The Group's and the Company's risk in relation to their investments derives primarily from any adverse changes in the current valuation prices of shares and other securities traded on organized markets. In particular, the Group and the Company hold on 30.06.2023 financial assets measured at fair value through other comprehensive income which mainly include the Group's investment in Boursa Kuwait (0.778%).
On 30.06.2023, the assets exposed to market risk amounted to €8,618 thousand for the Group and the Company. A change of ±10% in investments whose valuation gains or losses are recognized cumulatively in equity would result in a change of ±€862 thousand for the Group and the Company, respectively.
Liquidity risk is the risk of not being able to find sufficient cash to cover the Company's obligations.
The Group manages its liquidity needs through careful monitoring of scheduled payments for short-term liabilities as well as cash outflows from its day-to-day operations. Liquidity needs are monitored in various time frames (daily, weekly, monthly).
Liquidity risk is kept at a low level by maintaining sufficient cash reserves.
The Group's and the Company's trade and other payables of €5,794 thousand and €3,378 thousand respectively will be settled within the next 6 months.
The functional currency of the Group and the Company is the Euro. The majority of transactions of the Group and the Company takes place in the functional currency, and as such, currency risk that arises from normal operations is limited.
The Group and the Company hold as of 30.06.2023 an investment in Boursa Kuwait (0.778%), whose shares are traded on the stock market of Kuwait since 14.09.2020 in Kuwaiti Dinars (KWD). At the same time, on 30.06.2023 the Group and the Company hold an investment in the Belgrade Stock Exchange in Serbian Dinar. As such, the Group and the Company are exposed to the KWD/EUR and the RSD/EUR exchange rates. A reasonable change in the KWD/EUR exchange rate of ±10% would result in a change of ±€42 thousand in the results and of ±€862 thousand in equity for the Group and the Company, respectively. Also, a fair change in the RSD/EUR exchange rate of ±10% would result in a change in equity of ±€19 thousand for the Group and the Company.
The Group faces credit risk both from equity investments as well as from client balances. As part of its Investment Policy, specific principles are defined for cash deposit arrangements. Cash deposit arrangements are with the four systemic banks of the country, in approximately equal amounts, minimizing credit risk levels.
Short term cash arrangements that do not exceed three months take place at Greek Systemic Banks, in accordance with the Investments Policy set by the management of the ATHEX Group. In particular, out of total cash and cash equivalents of the Group of €60m, approximately €43.6m is deposited in Greek systemic banks, and the remaining approximately €16.4m at the Bank of Greece.
The financial assets and financial liabilities measured at fair values in the Statement of Financial Position of the Group and the Company are classified based on the following hierarchy into 3 Tiers for determining and disclosing the fair value of financial instruments by valuation technique:
Tier 1: Investments valued at fair value based on traded (unadjusted) prices in active markets for similar assets or liabilities.
Tier 2: Investments valued at fair value based on valuation models in which all inputs that significantly affect fair value are based (either directly or indirectly) on observable market data.
Tier 3: Investments valued at fair value based on valuation models in which inputs that significantly affect fair value are not based on observable market data.
The following tables present the financial assets that are measured at fair value on a recurring basis on 30.06.2023 and 31.12.2022. There are no financial liabilities measured at fair value at any of the periods presented.
| 30.06.2023 | Group | ||
|---|---|---|---|
| Tier 1 | Tier 2 | Tier 3 | |
| Financial assets | |||
| Investments in shares listed in organized markets | 8,618 | ||
| Investments in shares not listed in organized markets | 193 | ||
| Total | 8,618 | 193 |
| 31.12.2022 | Group | |||
|---|---|---|---|---|
| Tier 1 | Tier 2 | Tier 3 | ||
| Financial assets | ||||
| Investments in shares listed in organized markets | 9,804 | |||
| Investments in shares not listed in organized markets | 193 | |||
| Total | 9,804 | 193 |
| 30.06.2023 | Company | |||
|---|---|---|---|---|
| Tier 1 | Tier 2 | Tier 3 | ||
| Financial assets | ||||
| Investments in shares listed in organized markets | 8,618 | |||
| Investments in shares not listed in organized markets | 193 | |||
| Total | 8,618 | 193 |
| 31.12.2022 | Company | |||
|---|---|---|---|---|
| Tier 1 | Tier 2 | Tier 3 | ||
| Financial assets | ||||
| Investments in shares listed in organized markets | 9,804 | |||
| Investments in shares not listed in organized markets | 193 | |||
| Total | 9,804 | 193 |
Within the periods presented, there were no transfers between Tiers 1 and 2.
The amounts at which assets, receivables and current liabilities are reported in the Statement of Financial Position approximate their respective fair values due to their short-term maturity. Accordingly, there are no differences between the fair values and the corresponding carrying amounts of the financial assets and liabilities. The Company does not use derivative financial products.
The following tables present the non-financial assets that are measured at fair value on a recurring basis on 30.06.2023 and 31.12.2022.
| 30.06.2023 | Group | |||
|---|---|---|---|---|
| Tier 1 | Tier 2 | Tier 3 | ||
| Non-financial assets | ||||
| Owner occupied tangible assets | 18,487 | |||
| Investments in real estate | 6,187 | |||
| Total | 24,674 |
| 31.12.2022 | Group | |||
|---|---|---|---|---|
| Tier 1 | Tier 2 | Tier 3 | ||
| Non-financial assets | ||||
| Owner occupied tangible assets | 18,654 | |||
| Investments in real estate | 6,187 | |||
| Total | 24,841 |
| 30.06.2023 | Company | ||
|---|---|---|---|
| Tier 1 | Tier 2 | Tier 3 | |
| Non-financial assets | |||
| Investments in real estate | 2,900 | ||
| Total | 2,900 |
| 31.12.2022 | Company | ||
|---|---|---|---|
| Tier 1 | Tier 2 | Tier 3 | |
| Non-financial assets | |||
| Investments in real estate | 2,900 | ||
| Total | 2,900 |
The determination of the fair value of owner-occupied tangible assets and investments in real estate in Tier 3 for the Group and the Company is based on an assessment report carried out by independent, recognized real estate assessors. The key assumptions used are analyzed in detail in the 2022 Annual Financial report (notes 5.21 and 5.23).
There is no event that has a significant effect in the results of the Group and the Company which has taken place or was completed after 30.06.2023, the date of the 1st half 2023 interim financial statements and up until the approval of the financial statements by the Board of Directors of the Company on 31.07.2023.
A reclassification of accounts in the Statement of Comprehensive Income for the 1st half of 2022 took place in order for them to be comparable with the corresponding accounts in the 1st half of 2023.
| GROUP | ||||
|---|---|---|---|---|
| 01.01 | 01.01 | 01.01 | ||
| 30.06.2022 | 30.06.2022 | 30.06.2022 | ||
| Modified | Published | Reclassification | ||
| Post Trading | 7,970 | 7,989 | (19) | |
| IT and Digital Services | 3,323 | 3,302 | 21 | |
| Ancillary Services | 548 | 550 | (2) |
A reclassification of accounts in the Statement of Financial Position for fiscal year 2022 took place in order for them to be comparable with the corresponding accounts in the 1st half of 2023.
| GROUP | COMPANY | |||||
|---|---|---|---|---|---|---|
| 01.01 | 01.01 | 01.01 | 01.01 | 01.01 | 01.01 | |
| 31.12.2022 | 31.12.2022 | 31.12.2022 | 31.12.2022 | 31.12.2022 | 31.12.2022 | |
| Modified | Published | Reclassification | Modified | Published | Reclassification | |
| Other claims | 4,077 | 3,987 | 90 | 1,230 | 1,169 | 61 |
| Suppliers and other liabilities | 4,861 | 4,771 | 90 | 2,777 | 2,716 | 61 |
Athens, 31 July 2023
THE CHAIRMAN OF THE BoD
GEORGE HANDJINICOLAOU ____________________________
THE CHIEF EXECUTIVE OFFICER YIANOS KONTOPOULOS ____________________________
THE CHIEF FINANCIAL AND ISSUER RELATIONS OFFICER NICK KOSKOLETOS ____________________________
THE DIRECTOR OF FINANCIAL MANAGEMENT
LAMBROS GIANNOPOULOS ____________________________
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