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Zagrebačka burza d.d.

Quarterly Report Oct 23, 2019

2105_10-q_2019-10-23_b2dd6683-c599-44f9-a74e-84cc347ffdcf.pdf

Quarterly Report

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Zagreb Stock Exchange Group

Consolidated unaudited financial results for

$01/01/2019 - 30/09/2019$

23 October 2019

CONTENTS

$\mathbf{1}$ INTERIM MANAGEMENT REPORT FOR THE PERIOD BETWEEN 01/01/2019 AND 30/06/20191
1.1 Significant business events of the Group in the period between 01/01/2019 and 30/06/20191
1.2 Expected future development of the Group
1.3 Research & Development activities
1.4 Information on repurchase of own shares
1.5 Zagreb Stock Exchange Group
1.6 Financial instruments used by the Group
1.7 Group's objectives and policies related to financial risk management
1.8 Group's exposure to price risk, credit risk, liquidity risk and cash flow risk
1.9 Statement of transactions and transfers within the Group and between the Group and its
shareholders
1.10 Statement of events which might have an adverse effect on Group operations5
1.11 Business results for 01/01/2019 - 30/06/2019
$\overline{2}$ Declaration of responsibility for the preparation of financial statements
Consolidated unaudited financial statements of the Company for 01/01/2019 - 30/06/2019

$\mathbf{1}$ INTERIM MANAGEMENT REPORT FOR THE PERIOD BETWEEN 01/01/2019 AND 30/09/2019

$1.1$ Significant business events of the Group in the period between 01/01/2019 and 30/09/2019

In the first three quarters of 2019, the Zagreb Stock Exchange Group (hereinafter: the Group) recorded the following significant business events:

  • On January 2, 2019, the Zagreb Stock Exchange successfully implemented the Cross Request functionality in the trading system.
  • On January 3, 2019, the Zagreb Stock Exchange and Podravka signed a contract for transferring the Podravka Company from the Official to the Prime Market.
  • On January 3, 2019, the BC Institute was admitted to the Progress market.
  • On January 29, 2019, the Croatian Financial Services Supervisory Agency approved the registration of the Zagreb Stock Exchange's Progress Market as an SME growth market, making Progress among the few SME growth markets in Europe.
  • On February 1, 2019, the Company Interkapital started performing the business of market maker on the Ljubljana Stock Exchange for stocks of Krka and Triglav osiguranje.
  • On February 18, 2019, the Zagreb Stock Exchange has started to release a new share index, the index of Prime market CROBEXprime. CROBEXprime presents the so-called free float market capitalization weighted index, in which the weight of each share will be determined in accordance with its free float market capitalization.
  • On March 22, 2019, the Zagreb Stock Exchange made a decision on termination the listing of Dalma d.d., Imunološki zavod d.d., Jadran film d.d. and Tankerkomerc d.d. for non-fulfillment of obligations.
  • On March 22, 2019, the Ljubljana Stock Exchange hosted a webcast called "Slovenian Listed Companies Online"
  • In the period from 25 to 27 March 2019, the Ljubljana Stock Exchange had Open doors days.
  • In the first quarter of 2019, two campaigns were carried out on the Funderbeam SEE platform, for the TDA-Top Digital Agency Company, where the amount of EUR 350,000 was collected and for the OmoLab Company, which raised the amount of EUR 430,000.
  • On April 26, 2019, the Zagreb Stock Exchange and Valamar Riviera signed a contract for the transfer of Valamar Riviera from the Official to the PRIME Market.

  • On May 16, 2019, the Company Lux investment was admitted to trading on the Progress market.

  • At the end of May, the 6th Zagreb and Ljubljana Stock Exchange Investor Days were held, attended by fifteen issuers from the Zagreb and Ljubljana Stock Exchange, who held 255 meetings with investors from nine countries in two days.
  • On June 7, 2019, the 10th annual education of the Zagreb Stock Exchange, the Croatian Financial Services Supervisory Agency and the Central Depository & Clearing Company was held. The education was intended for companies whose financial instruments are listed on the regulated market of the Zagreb Stock Exchange.
  • On June 13, 2019, the Ljubljana Stock Exchange General Assembly was held, whereby the Annual Financial Statements of the Ljubljana Stock Exchange for 2018 were presented, decisions made on the payment of dividends, on the release of the members of the Management Board and the Supervisory Board for 2018 and on the appointing of the auditor for 2019.
  • On June 19, 2019, the first joint Zagreb and Ljubljana stock exchange Prime market index $-$ ADRIAprime, was published.
  • On June 27, 2019, the Zagreb Stock Exchange General Assembly was held, whereby the Annual Financial Statements and Consolidated Financial Statements of the Exchange for 2018 were presented, decisions made on the use of the profit realized in 2018, on the release of the members of the Management Board and the Supervisory Board for 2018 and on the appointing a stock exchange auditor for 2019.
  • In the second quarter of 2019, one campaign was launched on the Funderbeam SEE platform, for Include, where the amount of nearly EUR 1.5 million was raised.
  • On July 1, 2019, the Zagreb Stock Exchange made a decision on termination the listing of Hoteli Makarska d.d.
  • On July 25, 2019, the Zagreb Stock Exchange made a decision on termination the listing of Metalska industrija Varaždin d.d. and Questus nekretnine d.d. in liquidation
  • In July 2019, CFSSA acknowledged the Zagreb Stock Exchange as a provider of appropriate education and exams for the relevant functions defined by the Ordinance on Qualifications and Personnel Requirements for the Investment Services as providing information to clients about financial instruments and investment services. This qualification has been included in the list of recognized qualifications on the CFSSA site as a "ZSE L1 certificate". It is planned to start respective educational activities at the end of 2019.
  • On August 27, 2019, the Zagreb Stock Exchange made a decision for the transfer of Uljanik d.d. from Official to Regular Market

  • On August 30, 2019, the Zagreb Stock Exchange made a decision on termination the listing of Pounje d.d.

  • On September 3, 2019, the Ljubljana Stock Exchange hosted a second webcast called "Slovenian Listed Companies Online" in partnership with NLB and Wood & Co.
  • In September 2019, the Ljubljana Stock Exchange started an education for the second generation of participants in the Partner Program.
  • From January 1 to September 30, 2019, one new Bond (Republic of Croatia Ministry of Finance, February 5, 2019) and one new Share (Meritus ulaganja d.d., August 6, 2019) were listed
  • In the first three quarters of 2019, the Price List of the Exchange has been amended twice. The First Amendments to the Price List came into force on January 23, 2019. As part of these amendments, the amount of membership fee was reduced and a number of new fees were introduced, namely fees for changing the designation of a financial instrument, for termination of listing on the regulated market, for data vendors who redistribute data on transactions reported through ZSE APA service, fees for issuing certificates on the status of a member and/or the market maker, and prescribes general principles or types of discounts that the Exchange may grant to its users. On August 15, 2019, the Second Amendments to the Price List entered into force. These Amendments have changed the methodology for determining the listing price of shares and bonds on the regulated market and the listing maintenance fee in such a way that the respective fee is calculated on the basis of market capitalization, which is a standard accepted among comparable European stock exchanges. The alignment of the business and legal regulation of the Exchange with the standards of other exchanges in the European Union is, among other things, one of the reasons for the changes in the Price List.
  • On September 4, 2019, the Warsaw Stock Exchange, in cooperation with the stock exchanges from the Czech Republic, Slovakia, Hungary, Romania, Croatia and Slovenia, launched the calculation of the new CEEplus stock index, which includes four shares from the Ljubljana Stock Exchange and two shares from the Zagreb Stock Exchange.
  • In 2018, Corporate Communications took over the organization of education and exams in relation to the Ordinance on Qualifications and Personnel Requirements for the Investment Services, following CFSSA's approval. By the end of September 2019, education and/or exams were conducted for almost 300 employees of two banks in 4 regional centres.
  • At the end of the third quarter of 2019, a campaign was launched on the Funderbeam SEE platform for Fresh Island, which, by the time this report was published, had raised over EUR 700,000.

$1.2$ Expected future development of the Group

In 2019, the Group will continue to focus on restoring confidence and raising Corporate Governance standards and reporting on a regulated market. The Group will also focus on greater promotion of existing issuers, with a focus on Prime Market.

The Group will press on with previously initiated projects, placing the greatest emphasis on the project of regional SME capital market development (Progress), and further activities related to financing and investing in start-ups (Funderbeam SEE).

By the end of 2019, extensive activities regarding moving to a new version of the T7 trading system will be ended.

$1.3$ Research & Development activities

The Group invests constant efforts into developing and improving its own service offering and at expending service provision to the Slovenian market as well.

$1.4$ Information on repurchase of own shares

As at September 30, 2019, the companies in the Group held no own shares.

The companies in the Group did not acquire own shares between 1 January 2019 and 30 June 2019.

1.5 Zagreb Stock Exchange Group

SEE Link d.o.o., a company domiciled in Skopje. The issued share capital of SEE LINK is EUR 80,000, in which the Zagreb Stock Exchange, Inc. participates with 33.33 %.

The Ljubljana Stock Exchange, Inc., a company domiciled in Ljubljana. The issued share capital of the Ljubljana Stock Exchange is EUR 1,401,000, in which the Zagreb Stock Exchange, Inc. participates with 100 %.

Funderbeam South East Europe d.o.o., a company domiciled in Zagreb. The issued share capital of Funderbeam South East Europe d.o.o. is HRK 244,000, and the Zagreb Stock Exchange, Inc. participates with 20%.

1.6 Financial instruments used by the Group

The Group is fully funded by its own capital. The financial instruments the companies in the Group invest in are investment funds (money market and bond funds) and deposits (a vista and fixed-term deposits).

$1.7$ Group's objectives and policies related to financial risk management

All employees of the companies in the Group, including their Management and Supervisory Board, are involved in the implementation of internal control and risk management systems.

The companies in the Group manage risks, including financial risks, particularly through cooperation and coordination of two mutually independent control functions that exist at Zagreb Stock Exchange and Ljubljana Stock Exchange: monitoring of compliance with relevant regulations and internal audit function.

1.8 Group's exposure to price risk, credit risk, liquidity risk and cash flow risk

The companies in the Group, Zagreb Stock Exchange and Ljubljana Stock Exchange, place their excess cash on deposits and invest in open-end money market and bond investment funds. Their investments are carried at fair value. Zagreb Stock Exchange and Ljubljana Stock Exchange mitigate the price risk by diversifying their portfolio of open-end investment funds by investing in different types of funds managed by different fund management companies, and by investing in low-risk funds.

SEE Link and Funderbeam SEE are not exposed to the risks mentioned in this paragraph.

The companies in the Group have no loans received from external financial institutions, rather their cash and financial assets exceed substantially the liabilities of the companies in the Group, and consequently, their liquidity position is satisfactory.

1.9 Statement of transactions and transfers within the Group and between the Group and its shareholders

The Group confirms that there were no transactions within the Group and between the Group and its shareholders in excess of EUR 100,000 in the first three quarters of 2019.

1.10 Statement of events which might have an adverse effect on Group operations

The Group confirms that there were no events which might have an adverse effect on Group operations in the first three quarters of 2019.

1.11 Business results for 01/01/2019 - 30/09/2019

In the first three quarters of 2019, the Group realized HRK 17,499 thousand of operating income, an increase of HRK +556 thousand or +3% compared to the same year-ago period when operating income amounted to HRK 16,943 thousand. Sales revenues decreased from HRK 11,777 thousand to HRK 11,214 thousand, or by HRK -563 thousand (-5%), which was the most influenced by the decrease in commission and membership fees from HRK 5,704 to HRK 5,325 thousand, or by HRK -379 thousand (-7%). However, comparing the third quarter of 2019 with the same period last year, we can see that commissions and membership fees have increased by slightly over HRK +460 thousand or +29% (from HRK 1,589 to HRK 2,049) and sales revenue have increased accordingly in the same period by HRK +486 thousand or $+$ 14% (from HRK 5,237 to HRK 6,148 thousand). In addition to commissions and membership fees, in the first three quarters of 2019, revenues from assigning and administering LEIs decreased by HRK -33 thousand or -10% (from HRK 334 to HRK 301 thousand) and listing revenues by HRK -262 thousand or -5% (from HRK 4,841 to 4,579 thousand). The revenue items that saw an increase in the first three quarters of 2019 compared to the same period last year are other operating income, which increased by HRK +1,119 thousand or +22% (from HRK 5,166 to HRK 6,284 thousand), and income from quotation maintenance, which increased by HRK +112 thousand or +12% (from HRK 897 to HRK 1,009 thousand).

Total operating expenses of the Group in the first three quarters of 2019 amounted to HRK 17,675 thousand, an increase of HRK +423 thousand (+4%) in comparison to the same period last year when operating expenses amounted to HRK 16,955 thousand. The largest increase was recorded in amortization and depreciation (HRK +479 thousand or +52%, from HRK 916 to HRK 1,396 thousand) and other expenses (HRK +381 thousand +17%, from HRK 2,256 to HRK 2,636 thousand). In addition, staff costs increased from HRK 7,640 to HRK 7,740 thousand (HRK +100 thousand or +1%) and material costs increased from HRK 5,667 to HRK 5,703 thousand (HRK +36 thousand or +1%). In the first three quarters of 2019, other operating expenses decreased compared to the same period last year (HRK-237 thousand or -88%, or from HRK 268 to HRK 31 thousand).

Operating loss amounted to HRK-177 thousand, which is an increase of HRK 165 thousand compared to the first three quarters of 2018 when operating loss amounted to HRK -12 thousand. However, in the first three quarters of 2019, financial income amounted to HRK 1,412 thousand and financial expenses amounted to HRK 436 thousand, which resulted in a positive net result. The Group's total net profit amounted to HRK 803 thousand, an increase of HRK +825 thousand compared to the same period last year when the net loss was HRK-22 thousand.

Operating profit before interest, taxes, depreciation and amortization is positive and in the first three quarters of 2019, it amounted to HRK 1,219 thousand, up by HRK +314 thousand compared to last year's first three quarters when it amounted to HRK 904 thousand.

$\overline{2}$ Declaration of responsibility for the preparation of financial statements

Financial statements of the Group prepared for the period between 01/01/2019 and 30/09/2019 give a fair and true account of facts in accordance with the International Standards of Financial Reporting and the Croatian Accounting Act.

Consolidated financial statements for the period between 01/01/2019 and 30/09/2019 give an objective, complete and true statement of assets and liabilities, financial position and operations of the Group.

The management report for the first three quarters of 2019 contains a true and fair view of the development and results of operations, with a description of the principal risks and uncertainties to which the Group is exposed.

Consolidated financial statements for the first three quarters of 2019 have not been audited.

ZAGREBAČKA BURZA d.d. Zagreb $\overline{1}$ Ivana Gažić Tomislav Gračan Ment Board President of the Manage Member of the Management Board

Contact Zagreb Stock Exchange, Inc. Ivana Lučića 2a/22 10000 Zagreb Croatia

Phone number: +385/1468 6806 E-mail: [email protected]

Consolidated unaudited financial statements of the Group for 01/01/2019 - 30/09/2019

$\frac{d^2}{d\mu} \rightarrow \mu \langle 0, \mu \rangle$ with

Annex 1 ISSUER'S GENERAL DATA
Reporting period: 1.1.2019 to 30.9.2019
Year: 2019
Quarter: 3
Quarterly financial statements
histration number (MB): 03749606 Issuer's home
Member State code:
HR
Entity's registration
number (MBS):
080034217
Personal identification
number (OIB):
84368186611 LEI: 7478000050A040C0D041
Institution
code:
4
Name of the issuer: Zagreb Stock Exchange, Inc.
Postcode and town: 10000 Zagreb
et and house number: Ivana Lučića 2a/22
E-mail address: [email protected]
Web address: www.zse.hr
Number of employees
(end of the reporting
36
Consolidated report KD (KN-not consolidated/KD-consolidated)
Audited: RN (RN-not audited/RD-audited)
Names of subsidiaries (according to IFRS): Registered office: MB:
Lubljanska borza d.d. Ljubljana Slovenska cesta 56, Ljubljana SI5978006
Bookkeeping firm: Yes (Yes/No) Sigma Tax Consulting d.o.o.
Contact person: Lucija Tropčić (name of the bookkeeping firm)
Telephone: 01/4699-555 (only name and surname of the contact person)
E-mail address: [email protected]
Audit firm:
Certified auditor: (name of the audit firm)
(name and sumame)

$\boldsymbol{9}$

BALANCE SHEET

balance as at 30.9.2019

in HRK

Submitter: Zagreb Stock Exchange, Inc III NRN
Item ADP
code
Last day of
the preceding
business
year
At the
reporting
date of the
current
period
$\mathbf{1}$ $\overline{2}$ $\overline{3}$ $\overline{\mathbf{4}}$
ASSETS
FIXED ASSETS 002+003+009+012 1 17.259.267 18.131.233
I INTANGIBLE ASSETS $\overline{2}$ 2.519.987 2.730.698
II TANGIBLE ASSETS 004++008 3 12.275.248 12.925.646
1 Land and buildings $\overline{4}$ 10.529.784 10.253.596
2 Computer equipment 5 398.497 178.256
3 Other tangible assets 6 1.291.947 1.170.246
4 Leasehold improvements
5 Assets under construction
$\overline{7}$
8
0
55.020
1.323.548
III FIXED FINANCIAL ASSETS 010+011 $\overline{9}$ 2.189.810 2.226.996
1 Investments in associates, subsidiaries and joint ventures 10 42.009 72.679
2 Financial assets at amortised cost 11 2.147.801 2.154.317
DEFERRED TAX ASSETS 12 274.222 247.893
B CURRENT ASSETS 014+020+024 13 27.637.863 28.238.584
I RECEIVABLES 015++019 14 3.421.201 3.501.955
1 Trade receivables 15 2.692.589 2.863.185
2 Receivables from employees and members of the undertaking 16 1.470 256
3 Receivables from government and other institutions 17 152.625 114.366
4 Receivables from connected undertakings 18 0 n
5 Other receivables 19 574.517 524.148
III SHORT-TERM FINANCIAL ASSETS 021++023 20 21.775.488 19.635.566
1 Financial assets at amortised cost 21 4.082.508 9.038
2 Financial assets at fair value through other comprehensive 22 $\Omega$ O
3 Financial assets at fair value through statement of profit or 23 17.692.980 19.626.528
III CASH AND CASH EQUIVALENTS 24 2.441.174 5.101.063
C PREPAID EXPENSES AND ACCRUED INCOME 25 1.121.576 1.427.273
D TOTAL ASSETS 001+013+025 26 46.018.706 47.797.090
E OFF-BALANCE SHEET ITEMS 27 0 0
LIABILITIES
A CAPITAL AND RESERVES 029+030+031+036+037+038 28 39.503.610 40.261.815
I INITIAL CAPITAL 29 46.357.000 46.357.000
II CAPITAL RESERVES 30 13.860.181 13.860.181
III PROFIT RESERVES 032++035 31 735.876 690.932
1 Legal reserves
2 Reserves for treasury shares
32
33
141.000
0
141.000
3 Fair value reserves 34 O
4 Other reserves 35 594.876 549.932
IV RETAINED PROFIT OR LOSS BROUGHT FORWARD 36 $-21.639.001$ $-21.449.447$
V PROFIT OR LOSS FOR THE YEAR 37 189.554 803.149
VI MINORITY INTEREST 38 0
B PROVISIONS 39 0
C SHORT-TERM LIABILITIES 041+046 40 2.084.893 2.019.258
1 Liabilities for advance payments 41 8.945 7.712
2 Trade payables 42 973.562 317.273
3 Liabilities to employees 43 671.054 624.491
4 Taxes, contributions and similar liabilities 44 370.485 295.889
5 Liabilities to connected undertakings 45 0
6 Other short-term liabilities 46 60.847 773.893
D LONG-TERM LIABILITIES 47 31.110 477.958
E DEFERRED TAX LIABILITY 48 223.050 222.593
F ACCRUALS AND DEFERRED INCOME 49 4.176.043 4.815.466
G TOTAL LIABILITIES 028+039+040+047+048+049 50 46.018.706 47.797.090
H OFF-BALANCE SHEET ITEMS 51 0 0
Appendix to the balance sheet (position for consolidated financial statements)
I Capital and reserves 053+054 52 39.503.610 40.201.130
1 Attributable to owners of the parent 53 39.503.610 40.201.130
2 Attributable to non-controlling interest 54 0 $\overline{0}$

STATEMENT OF PROFIT OR LOSS
For the period 01.01.2019. to 30.9.2019

in HRK

Submitter: Zagreb Stock Exchange, Inc
Item ADP Same period of the previous year Current period
code Cumulative Quarter Cumulative Quarter
$\mathbf{1}$ $\overline{2}$ $\overline{3}$ $\overline{4}$ 5 6
A OPERATING INCOME 002+009 $\mathbf{1}$ 16.943.099 5.236.964 17.498.734 6.147.735
Sales revenue 003++008 $\overline{2}$ 11.777.265 3.501.032 11.214.294 3.987.103
1 Commissions and membership fees 3 5.704.299 1.588.940 5.324.840 2.049.179
2 Listing maintenance fees $\overline{4}$ 4.841.142 1.568.206 4.578.755 1.548.768
3 Income from quotation maintenance 5 897.579 225.789 1.009.247 292.367
4 Income from auctions 6 0 0 0 0
5 Income from memberships $\overline{7}$ $\Omega$ $\Omega$ $\Omega$ $\mathbf 0$
6 Revenue from assigning and administering LEIs 8 334.245 118.097 301.452 96.789
Il Other operating income 010++012 $\overline{9}$ 5.165.834 1.735.932 6.284.440 2.160.632
1 Income from application programming interface (API) services 10 $\Omega$ 0 $\Omega$ $\Omega$
2 Income from the supply of information 11 3.995.520 1.389.779 4.256.810 1.495.518
3 Other income 12 1.170.314 346.153 2.027.630 665.114
B OPERATING EXPENSES 014+017+021+022+023+026+027 13 16.955.270 5.306.546 17.675.550 5.604.180
I Material costs 015+016 14 5.667.548 1.639.418 5.703.323 1.933.255
1 Costs of raw materials 15 482.069 117.525 428.035 144.560
2 Other external costs 16 5.185.479 1.521.893 5.275.288 1.788.695
Il Staff costs 018++020 17 7.639.991 2.492.914 7.739.973 2.485.393
1 Net salaries and wages 18 5.091.526 1.663.430 5.072.743 1.667.576
2 Tax and contributions from salary costs 19 1.895.222 609.855 1.988.991 607.291
3 Payroll contributions 20 653.243 219.629 678.239 210.526
III Depreciation 21 916.145 318.322 1.395.605 467.578
IV Other costs 22 2.255.838 749.689 2.636.438 708.284
V Value adjustment 024+025 23 207.801 89.595 169.350 9.014
1 fixed assets (other than financial assets) 24 $\Omega$ $\Omega$ $\Omega$ $\mathbf 0$
2 current assets (other than financial assets) 25 207.801 89.595 169.350 9.014
VI Provisions 26 $\Omega$ 0 $\Omega$ $\Omega$
VII Other operating expenses 27 267.947 16.608 30.861 656
C FINANCIAL INCOME 029++034 28 109.180 53.251 1.411.564 520.997
1 Interest, exchange rate differences, dividends and similar 29 13.172 $-1.912$ 17.670 6.113
2 Interest, exchange rate differences, dividends and similar 30 67.292 29.452 145.456 110.911
3 Income share from associates and participating interests 31 $\Omega$ $\Omega$ $\Omega$ $\Omega$
4 Unrealised gains (income) from financial assets 32 28.716 28.716 1.248.438 403.973
5 Profit from reversal of provisions for impairment for expected 33 $\Omega$ $\Omega$ $\Omega$ $\mathbf 0$
6 Other financial income 34 $\Omega$ $-3.005$ $\Omega$ $\mathbf 0$
D FINANCIAL EXPENSES 036++040 35 18.733 $-194.675$ 436.183 329.834
1 Interest, exchange rate differences and other expenditures with 36 4.678 1.444 1.180 $-19.051$
2 Interest, exchange rate differences and other expenditure from 37 13.970 4.127 71.651 17.525
3 Unrealised losses (expenses) from financial assets 38 5 5 $-200.246$ 362.737 362.737
4 Loss on impairment for expected credit losses 39 80 1 80 $\Omega$ $\Omega$
5 Other financial expenses 40 $\Omega$ $-80$ 615 $-31.377$
E TOTAL INCOME 001+028 41 17.052.279 5.290.215 18.910.298 6.668.732
F TOTAL EXPENDITURE 013+035 42 16.974.003 5.111.871 18.111.733 5.934.014
G Share in profit/loss of associates and subsidiaries 43 $-18.941$ 9.448 30.362 37.037
H PRE-TAX PROFIT OR LOSS 041-042+043 44 59.335 187.792 828.927 771.755
I INCOME TAX 45 81.019 $-34.858$ 25.778 6.835
J PROFIT OR LOSS FOR THE PERIOD 044-045 46 $-21.684$ 222.650 803.149 764.920
1 Change in revaluation reserves (property, plant, 47 $\overline{0}$ 0
2 Actuarial gains/losses on defined benefit pension plans 48 $\overline{0}$ $\mathbf{0}$ 0
3 Unrealised gains/losses on financial assets at fair value 49 $\overline{0}$ 0 0 0
through other comprehensive income
4 Gains/losses on hedging instruments in a cash flow hedge 50 $\Omega$ 0 $\mathbf 0$
5 Gains/losses arising from translation of financial 51 $-195.967$ 257.193 -44.944 28.922
6 Income tax on other comprehensive income 52 $\overline{0}$ $\Omega$
K OTHER COMPREHENSIVE INCOME 047++052 53 $-195.967$ 257.193 -44.944 28.922
TOTAL COMPREHENSIVE INCOME 046+053 54 $-217.651$ 479.843 758.205 793.842
M RECLASSIFICATION ADJUSTMENTS 55 0 0 0
Appendix **
Attributable to owners of the parent
56 $-217.651$ 479.843 758.205 793.842
Attributable to non-controlling interest 57 $\overline{0}$ $\Omega$ $\Omega$ 0

STATEMENT OF CASH FLOWS - indirect method for the period 01.01.2019. to 30.9.2019

in HRK
Submitter: Zagreb Stock Exchange, Inc
Item ADP
code
Same period of
the previous
year
Current period
1 $\overline{2}$ 3 4
CASH FLOW FROM OPERATING ACTIVITIES
1 Pre-tax profit 1 59.335 828.927
2 Depreciation $\overline{2}$ 916.145 1.395.605
3 Increase in short-term liabilities $\overline{3}$ O
4 Decrease in short-term receivables 4 117.254 155.928
5 Decrease in inventories 5 742 3.472
6 Loss on impairment for expected credit losses $6\overline{6}$ O 0
7 Other cash flow increase 7 656.851 $\Omega$
I Total cash flow increase from operating activities
$001 + + 007$
8 1.750.327 2.383.932
1 Decrease in short-term liabilities 9 1.157.825 779.873
2 Increase in short-term receivables 10 0
3 Increase in inventories 11 0 0
4 Profit from reversal of provisions for impairment for expected 12 O
5 Other cash flow decrease 13 686.334 1.293.914
Il Total cash flow decrease from operating activities
$009 + + 013$
14 1.844.159 2.073.787
CASH FLOW FROM INVESTMENT ACTIVITIES
1 Cash receipts from sale of fixed tangible and intangible assets 15 1.524.059 0
2 Cash receipts the from sale of equity instruments and debt 16 0 0
3 Interest received 17 0 0
4 Dividends received 18 O O
5 Other cash receipts from investment activities 19 2.358.793 4.393.883
III Total cash receipts from investment activities 015++019 20 3.882.852 4.393.883
1 Cash payments for the purchase of fixed tangible and intangible 21 129.103 435.484
2 Cash payments for the acquisition of equity financial 22 $\Omega$
3 Other cash payments from investment activities 23 2.929.198 1.000.000
IV Total cash payments from investment activities
$021 + + 023$
24 3.058.301 1.435.484
CASH FLOW FROM FINANCING ACTIVITIES
1 Cash receipts from the issue of equity financial instruments and
debt financial instruments
25 0 $\mathbf{0}$
2 Cash receipts from credit principals, debentures, loans and
other borrowings
26 $\mathbf{0}$ $\mathsf{O}\xspace$
3 Other cash receipts from financing activities 27 0 $\mathbf 0$
V Total cash receipts from financing activities 025++027 28 0 $\bf{0}$
1 Cash payments for credit principals and bonds 29 0 $\pmb{0}$
2 Cash payments for dividends 30 O 0
3 Cash payments for finance lease 31 62.722 44.731
4 Cash payments for the redemption of treasury shares 32 0
5 Other cash payments from financing activities 33 0 563.924
VI Total cash payments from operating activities 029++033 34 62.722 608.655
VII Cash and cash equivalents at the beginning of period 35 1.848.893 2.441.174
VIII Increase of cash and cash equivalents 36 667.997
IX Decrease of cash and cash equivalents 37 $-2.659.889$
X Cash and cash equivalents at the end of period 38 2.516.890 5.101.063
STATEMENT OF CHANGES IN EQUITY
for the period from 1.1.2019 g 30.9.2019 in HRK
Item ADP Subscribed Capital Profit Attributable to owners of the parent
Profit or loss
profit or loss
Retained
Fair value revaluati
Other
Attributable to non- Total capital
and
capital reserves reserves for the year
(period)
brought
forward
reserves reserves
δ
controlling interests reserves
2 3 4 5 6 $^{\circ}$ Θ $\overline{0}$ Ξ
previous
the
đ
day
first
Balance on the
business year
$\overline{\phantom{0}}$ 46.357.000 13.860.181 141.000 $-3.754.703$ $-17.620.569$ $\circ$ 896.018 39.878.92
Change in accounting policies $\mathbf{z}$ $\circ$ ⊃∣ 0 .871
$-323$
$\circ$ O -87
323.
Correction of errors from prior periods 3 $\circ$ $\overline{\circ}$ $\circ$ 이이 $\circ$ $\circ$ $\circ$ $\overline{\circ}$
previous
Balance on the first day of the
business year (restated)
4 46.357.000 13.860.181 141.000 3.754.703 $-17.944.440$ $\circ$ 896.018 $\circ$ 39.555.056
Profit or loss for the period 5 $\circ$ $\circ$ O 189.554 $\circ$ $\circ$ $\circ$ $\circ$ 189.554
Unrealised gains or losses on financial assets at
fair value through other comprehensive income
6 $\circ$ $\circ$ $\circ$ $\circ$ $\overline{\circ}$ $\circ$ $\circ$ $\circ$ o
Other changes in equity unrelated to owners $\circ$ $\circ$ $\circ$ $\circ$ $\circ$ $\circ$ $-241.001$ $\circ$ 241.00
and
income
Total directly recognized
expenses of the previous year (previous
year periods)
$\infty$ $\circ$ $\circ$ $\circ$ 189.554 $\circ$ O $-241.001$ $\circ$ 51.447
Increase/decrease in subscribed capital $\circ$ O $\circ$ $\overline{\circ}$ $\overline{\circ}$ $\circ$ $\circ$ $\circ$
Other contributions by owners $\overline{C}$ $\circ$ $\circ$ $\circ$ $\overline{0}$ $\overline{\circ}$ $\circ$ $\circ$ $\circ$
Payment of share in profit/dividend $\overline{1}$ $\circ$ 이이 $\circ$ $\circ$ $\circ$ $\circ$ $\circ$ $\circ$ 0
Other distribution to owners 12 $\circ$ $\circ$ 3.754.703 3.694.561 $\circ$ $-60.141$ $\circ$
Balance on the last day of the previous
business year reporting period
S 46.357.000 13.860.181 141.000 189.554 21.639.001 Ō 594.876 $\circ$ 39.503.610
current
the
Balance on the first day of
business year
4 46.357.000 13.860.181 141.000 189.554 $-21.639.001$ $\circ$ 594.876 $\circ$ $rac{10}{2}$
503.
39.
Change in accounting policies 5 0 O $\circ$ 0 o
Correction of errors from prior periods 0 $\circ$ $\circ$ $\circ$ $\frac{1}{\sqrt{2}}$ $\frac{1}{\sqrt{2}}$ $\circ$ $\circ$ 이어 o
current
the
ð
Balance on the first day
business year (restated)
$\overline{\phantom{0}}$ 46.357.000 13.860.181 141.000 189.554 21.639.001 $\circ$ 594.876 $\circ$ 39.503.610
Profit or loss for the period $\infty$ 0 $\overline{\circ}$ 0 803.149 $\overline{\circ}$ $\circ$ $\circ$ $\circ$ 803.149
Unrealised gains or losses on financial assets at
fair value through other comprehensive income
Φ $\circ$ $\circ$ $\circ$ $\circ$ $\overline{\circ}$ $\circ$ $\circ$ $\circ$ o
Other changes in equity unrelated to owners $\overline{a}$ $\circ$ $\circ$ $\circ$ $\circ$ $\overline{\circ}$ $\circ$ $-44.944$ $\circ$ 44,944
and
expenses of the current year (current
income
Total directly recognised
period)
21 $\circ$ $\circ$ $\circ$ 803.149 O $\circ$ -44.944 $\circ$ 758.205
Increase/decrease in subscribed capital 22 0 $\circ$ $\circ$ ∘∣ $\circ$ O O
Other contributions by owners $\circ$ $\circ$ $\overline{\circ}$ $\circ$ 이이 $\circ$ $\circ$ $\circ$ O
Payment of share in profit/dividend $ \mathfrak{A} $ ង $ \mathfrak{A} $ $\circ$ $\frac{1}{\sqrt{2}}$ $\overline{\circ}$ $\circ$ $\circ$ $\circ$ $\circ$ $\circ$ O
Other distribution to owners $\circ$ $\circ$ $-189.554$ 189.554 $\circ$ $\circ$ $\circ$ 0
Balance on the last day of the current
business year reporting period
26 46.357.000 13.860.181 141.000 803.149 $-21.449.447$ $\overline{\circ}$ 549.932 $\circ$ 40 261.815

NOTES TO FINANCIAL STATEMENTS - TFI (drawn up for quarterly reporting periods)

Name of the issuer: Zagreb Stock Exchange, Inc.

Personal identification number (OIB): 84368186611

Reporting period: 1.1.2019 - 30.9.2019

Notes to financial statements for quarterly periods include:

a) an explanation of business events relevant to understanding changes in the statement of financial position and financial performance for the quarterly reporting period of the issuer with respect to the last business year: information is provided regarding these events and relevant information published in the last annual financial statement is updated

b) information on the access to the latest annual financial statements, for the purpose of understanding information published in the notes to financial statements drawn up for the quarterly reporting period

c) a statement explaining that the same accounting policies are applied while drawing up financial statements for the quarterly reporting period as in the latest annual financial statements or, in the case where the accounting policies have changed, a description of the nature and effect of the changes

d) a description of the financial performance in the case of the issuer whose business is seasonal.

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