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Zagrebačka burza d.d.

Quarterly Report Oct 23, 2019

2105_10-q_2019-10-23_1d030378-e12a-4bbb-932b-b3907150c3da.pdf

Quarterly Report

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Zagreb Stock Exchange, Inc.

Unconsolidated unaudited financial results for

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

23 October 2019

$\label{eq:2.1} \frac{1}{\sqrt{2}}\int_{0}^{\infty}\frac{1}{\sqrt{2\pi}}\left(\frac{1}{\sqrt{2\pi}}\right)^{2\alpha} \frac{1}{\sqrt{2\pi}}\int_{0}^{\infty}\frac{1}{\sqrt{2\pi}}\left(\frac{1}{\sqrt{2\pi}}\right)^{\alpha} \frac{1}{\sqrt{2\pi}}\frac{1}{\sqrt{2\pi}}\int_{0}^{\infty}\frac{1}{\sqrt{2\pi}}\frac{1}{\sqrt{2\pi}}\frac{1}{\sqrt{2\pi}}\frac{1}{\sqrt{2\pi}}\frac{1}{\sqrt{2\pi}}\frac{1}{\sqrt{2\pi}}$

CONTENTS

1 INTERIM MANAGEMENT REPORT FOR THE PERIOD BETWEEN 01/01/2019 AND 30/09/20191
1.1 Significant business events of the Zagreb Stock Exchange, Inc. in the period between 01/01/2019
and 30/09/2019 ………………………………………………………………………………………………
1.2 Expected future development of the Company
1.3 Research & Development activities
1.4 Information on repurchase of own shares
1.5 Subsidiaries of the Company
1.6 Financial instruments used by the Company
1.7 Company's objectives and policies related to financial risk management
1.8 Company's exposure to price risk, credit risk, liquidity risk and cash flow risk5
1.9 Statement of transactions and transfers between the Company and its subsidiaries and shareholders
5
1.10 Statement of events which might have an adverse effect on Company operations5
1.11 Business results for 01/01/2019 - 30/09/2019
$\overline{2}$ Declaration of responsibility for the preparation of financial statements
Unconsolidated unaudited financial statements of the Company for 01/01/2019 - 30/09/2019 8

$\label{eq:2} \frac{1}{2} \int_{\mathbb{R}^3} \frac{1}{\sqrt{2}} \, \frac{1}{\sqrt{2}} \, \frac{1}{\sqrt{2}} \, \frac{1}{\sqrt{2}} \, \frac{1}{\sqrt{2}} \, \frac{1}{\sqrt{2}} \, \frac{1}{\sqrt{2}} \, \frac{1}{\sqrt{2}} \, \frac{1}{\sqrt{2}} \, \frac{1}{\sqrt{2}} \, \frac{1}{\sqrt{2}} \, \frac{1}{\sqrt{2}} \, \frac{1}{\sqrt{2}} \, \frac{1}{\sqrt{2}} \, \frac{1}{\sqrt{2}} \, \frac{1}{\sqrt{2}} \, \frac$

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

1.1 Significant business events of the Zagreb Stock Exchange, Inc. in the period between 01/01/2019 and 30/09/2019

In the first tri quarters of 2019, the Zagreb Stock Exchange, Inc. (hereinafter: the Company or the Exchange) 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. $\omega^+$
  • 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 18 February, 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.
  • 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 420,000 was collected and for the OmoLab Company, which raised the amount of EUR 240,000.
  • 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 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 $\overline{\phantom{0}}$ Pounje d.d.
  • 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 Company

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

The Company 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 Company has pressed on with continuous efforts at developing and improving its own service offering and at expending service provision to the Slovenian market as well. At the beginning of 2019,

after 10 years, the service of the market maker was reinstated on the Ljubljana Stock Exchange with the Croatian member.

$1.4$ Information on repurchase of own shares

As at September 30, 2019, the Company held no own shares.

The Company did not acquire own shares between 1 January 2019 and 30 September 2019.

$1.5$ Subsidiaries of the Company

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%.

Financial instruments used by the Company $1.6$

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

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

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

The Company manages risks, including financial risks, particularly through two mutually independent control functions: monitoring of compliance with relevant regulations and internal audit function.

These control functions process and monitor the work of all organizational units, Company activities and support services.

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

The Company places its excess cash on deposit and invests in open-end money market and bond investment funds. Its investments are carried at fair value. The Company mitigates the price risk by diversifying its portfolio of open-end investment funds it by investing in different types of funds managed by different fund management companies, and by investing in low-risk funds.

The Company has no loans received, rather its cash and financial assets exceed substantially the liabilities of the Company, and consequently, the Company's liquidity position is satisfactory.

$1.9$ Statement of transactions and transfers between the Company and its subsidiaries and shareholders

The Company confirms that there were no transactions between the Company and its subsidiaries and 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 Company operations

The Company confirms that there were no events which might have an adverse effect on Company 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 Company realized a total of HRK 10,174 thousand of operating income, up HRK +1,140 thousand or +13% from the same year-ago period when operating income amounted to HRK 9,034 thousand. Compared to the last year's first three quarters, sales revenue increased from HRK 6,663 to HRK 6,687 thousand, or by just over HRK 24 thousand. Commissions and membership fees, as the main source of revenue, increased from HRK 2,607 to HRK 2,859 thousand, or by HRK +253 thousand (+10%), which was strongly influenced by the increased volume of securities trading in September 2019, while income from quotation maintenance increased from HRK 660 to HRK 676 thousand, or by HRK +16 thousand (+2%). Although these items increased, the increase in sales revenue did not follow this increase due to a decrease in listing maintenance fees that fell from HRK 3,063 to HRK 2,851 thousand, or by HRK -212 thousand (-7%), and a decrease in revenue from assigning and administering LEIs from HRK 334 to HRK 301 thousand, or by HRK -33 thousand (-10%). The largest increase in revenues compared to the same period last year was recorded in other operating income, which increased from HRK 2,370 to HRK 3,486 thousand, or by HRK +1,115 thousand (+47%). The increase in other operating income was mostly influenced by the increase in revenue from the educational services, from HRK 164 to HRK 706 thousand, or by HRK +542 thousand (+330%). An increase was also recorded in revenues from OTC data disclosure fees (HRK +91 thousand or +33%) and revenues from exchange data dissemination fees (HRK +240 thousand or +16%). Progress revenue dropped from HRK 33 to HRK 28 thousand, or by HRK -5

thousand (-15%), while revenue from API membership fees remained at the same level as in the first three quarters of 2018.

The total operating expenses of the Company in the first three quarters of 2019 amounted to HRK 10,283 thousand, an increase of HRK +789 thousand (+8%) over the same period last year when operating expenses amounted to HRK 9,494 thousand. Significant increase in depreciation and amortization from HRK 310 to HRK 814 thousand (+163%) and lower office space rent and related costs from HRK 1,004 to HRK 469 thousand (-53%) is associated with IFRS 16. In accordance with IFRS 16, office space and cars rent are now shown through an overview of the total rental value recognized in the balance sheet and is presented as an amortization and financial expense in the Income statement. Applying this standard has a negligible impact on the overall result; the only difference is the change in the positions where the cost is shown. Apart from depreciation and amortization, items of operating expenses that recorded an increase are: other costs by HRK +520 thousand or +47% (from HRK 1,101 to HRK 1,621 thousand), and staff costs by HRK +336 thousand or +7% (from HRK 4,567 to HRK 4,902 thousand). The decrease was recorded in material costs (from HRK 3,120 to HRK 2,773 thousand, or by HRK-347 thousand and -11%).

The increase in the item of other income and other expenses is influenced by a one-time item of subscription of shares of one of the issuers within the pre-bankruptcy settlement in the amount of HRK 383,630.54. This amount was posted as revenue and fully booked at the same time.

Operating loss amounted to HRK -109 thousand, which is a decrease of HRK 352 thousand compared to the first three quarters of the last year when operating loss amounted to HRK -461 thousand. However, in the first three quarters of 2019, financial income amounted to HRK 1,814 thousand and financial expenses amounted to HRK 421 thousand, which resulted in a positive net result. Profit for the period amounted to HRK 1,285 thousand, which is an increase of HRK +415 thousand (+48%) compared to the same period last year when profit for the period amounted to HRK 870 thousand.

Operating profit before interest, taxes, depreciation and amortization is positive and in the first three quarters of 2019 it amounted to HRK 704 thousand, up HRK +854 thousand from the same year-ago period.

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

Financial statements of the Zagreb Stock Exchange, Inc. 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.

Unconsolidated 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 Company.

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 Company is exposed.

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

ZAGREBAČKA BURZA d.d. Zagreb $\mathbf{1}$ Tomislav Gračan vana Gai ent Board Member of the Management Board President of the

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

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

Unconsolidated unaudited financial statements of the Company for 01/01/2019 - 30/09/2019

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Annex 1 ISSUER'S GENERAL DATA
Reporting period: 1.1.2019 to 30.9.2019
Year: 2019
Quarter: 3
Quarterly financial statements
pistration 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
24
Consolidated report: KN (KN-not consolidated/KD-consolidated)
Audited: $\mathbf{I}$
(RN-not audited/RD-audited)
Names of subsidiaries (according to IFRS): Registered office: MB:
Bookkeeping firm: Yes (Yes/No) Sigma Tax Consulting d.o.o.
(name of the bookkeeping firm)
Contact person: Martina Butković
(only name and sumame of the contact person)
Telephone: 01/4699-555
E mail address: [email protected]
Audit firm: 9
Certified auditor: (name of the audit firm)
(name and surname)

BALANCE SHEET balance as at 30.9.2019

in HRK

Submitter: Zagreb Stock Exchange, Inc III FINN
Item ADP
code
Last day of
the preceding
business
year
At the
reporting
date of the
current
period
1 $\overline{2}$ $\overline{3}$ 4
ASSETS
FIXED ASSETS 002+003+009+012 1 21.070.447 22.448.945
I INTANGIBLE ASSETS $\overline{\mathbf{2}}$ 630.572 903.111
II TANGIBLE ASSETS 004++008 3 399.620 1.505.579
1 Land and buildings $\overline{4}$ 0
2 Computer equipment 5 266.705 178.256
3 Other tangible assets 6 8.125 3.775
4 Leasehold improvements 7 124.790 1.323.548
5 Assets under construction 8 $\Omega$
III FIXED FINANCIAL ASSETS 010+011 $\overline{9}$ 20.040.255 20.040.255
1 Investments in associates, subsidiaries and joint ventures 10 19.375.969 19.375.969
2 Financial assets at amortised cost 11 664.286 664.286
DEFERRED TAX ASSETS 12 0
B CURRENT ASSETS 014+020+024 13 21.773.518 22.729.967
I RECEIVABLES 015++019 14 2.001.931 2.554.110
1 Trade receivables 15 1.420.517 1.999.926
2 Receivables from employees and members of the undertaking 16 1.470 256
3 Receivables from government and other institutions 17 5.977 28.100
4 Receivables from connected undertakings 18 5.192 10.733
5 Other receivables 19 568.775 515.095
III SHORT-TERM FINANCIAL ASSETS 021++023 20 17.692.980 19.626.528
1 Financial assets at amortised cost 21 0
$\Omega$
2 Financial assets at fair value through other comprehensive 22
3 Financial assets at fair value through statement of profit or 23 17.692.980 19.626.528
III CASH AND CASH EQUIVALENTS
C PREPAID EXPENSES AND ACCRUED INCOME
24
25
2.078.607
681.640
549.329
793.384
D TOTAL ASSETS 001+013+025 26 43.525.605 45.972.296
E OFF-BALANCE SHEET ITEMS
LIABILITIES
27 0
A CAPITAL AND RESERVES 029+030+031+036+037+038 28 39.386.124 40.670.630
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 31 141.000 141.000
1 Legal reserves 32 141.000 141.000
2 Reserves for treasury shares 33 0
3 Fair value reserves 34 0 0
4 Other reserves 35 $\Omega$
IV RETAINED PROFIT OR LOSS BROUGHT FORWARD 36 $-22.282.590$ $-20.972.057$
V PROFIT OR LOSS FOR THE YEAR 37 1.310.533 1.284.506
VI MINORITY INTEREST 38 0
B PROVISIONS 39 $\Omega$
C SHORT-TERM LIABILITIES 041+046 40 927.849 1.339.885
1 Liabilities for advance payments 41 8.945 5.047
2 Trade payables 42 299.469 52.679
3 Liabilities to employees 43 296.506 283.780
4 Taxes, contributions and similar liabilities 44 322.929 239.402
5 Liabilities to connected undertakings 45 0
6 Other short-term liabilities 46 0 758.977
D LONG-TERM LIABILITIES 47 0 446.913
E DEFERRED TAX LIABILITY 48 0
F ACCRUALS AND DEFERRED INCOME 49 3.211.632 3.514.868
G TOTAL LIABILITIES 028+039+040+047+048+049 50 43.525.605 45.972.296
H OFF-BALANCE SHEET ITEMS 51 $\bf{0}$
Appendix to the balance sheet (position for consolidated financial statements)
I Capital and reserves 053+054 52
1 Attributable to owners of the parent
2 Attributable to non-controlling interest 54

STATEMENT OF PROFIT OR LOSS
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
Cumulative Quarter Cumulative Quarter
$\overline{2}$ $\overline{3}$ $\overline{4}$ 5 6
A OPERATING INCOME 002+009 1 9.033.769 2.913.332 10.173.504 3.780.471
I Sales revenue 003++008 $\overline{2}$ 6.663.371 1.981.953 6.687.706 2.507.980
1 Commissions and membership fees 3 2.606.656 746.236 2.859.378 1.222.184
2 Listing maintenance fees $\overline{4}$ 3.062.824 957.974 2.850.984 979.427
3 Income from quotation maintenance 5 659.646 159.646 675.892 209.580
4 Income from auctions 6 0 0 0 $\Omega$
5 Income from memberships $\overline{7}$ $\Omega$ $\Omega$ $\Omega$ $\Omega$
6 Revenue from assigning and administering LEIs 8 334.245 118.097 301.452 96.789
Il Other operating income 010++012 9 2.370.398 931.379 3.485.798 1.272.491
1 Income from application programming interface (API) services 10 $\Omega$ $\Omega$ $\Omega$
2 Income from the supply of information 11 1.498.399 549.466 1.738.402 645.065
3 Other income 12 871.999 381.913 1.747.396 627.426
B OPERATING EXPENSES 014+017+021+022+023+026+027 13 9.494.459 3.026.866 10.282.967 3.128.939
I Material costs 015+016 14 3.120.425 905,700 2.772.976 922.947
1 Costs of raw materials 15 373.360 95.797 348.239 119.921
2 Other external costs 16 2.747.065 809.903 2.424.737 803.026
Il Staff costs 018++020 17 4.566.702 1.523.541 4.902.506 1.535.938
1 Net salaries and wages 18 2.470.549 825.439 2.681.040 848.125
2 Tax and contributions from salary costs 19 1.442.910 478.473 1.543.227 477.287
3 Payroll contributions 20 653.243 219.629 678.239 210.526
III Depreciation 21 310.492 103.648 813.543 271.318
IV Other costs 22 1.100.687 467.369 1.620.841 398.080
V Value adjustment 024+025 23 128,206 10.000 142.240 $\overline{0}$
1 fixed assets (other than financial assets) 24 $\Omega$ $\Omega$ 0
2 current assets (other than financial assets) 25 128.206 10.000 142.240 $\mathbf 0$
VI Provisions 26 n $\Omega$ $\Omega$
VII Other operating expenses 27 267.947 16.608 30.861 656
C FINANCIAL INCOME 029++034 28 1.340.880 55.167 1.814.575 514.989
1 Interest, exchange rate differences, dividends and similar 29 1.244.872 420.681 105
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 0 $\Omega$ $\Omega$
4 Unrealised gains (income) from financial assets $\overline{32}$ 28.716 28.716 1.248.438 403.973
5 Profit from reversal of provisions for impairment for expected 33 0 O $\Omega$ 0
6 Other financial income 34 $\mathbf 0$ $-3.005$ $\Omega$ $\Omega$
D FINANCIAL EXPENSES 036++040 35 10.637 $-196.125$ 420.606 348.915
1 Interest, exchange rate differences and other expenditures with 36 $\Omega$ 432 11
2 Interest, exchange rate differences and other expenditure from $\overline{37}$ 10.552 4.121 56.822 17.544
3 Unrealised losses (expenses) from financial assets 38 5 $-200.246$ 362.737 362.737
4 Loss on impairment for expected credit losses 39 0
5 Other financial expenses 40 80 O 615 $-31.377$
E TOTAL INCOME 001+028 41 10.374.649 2.968.499 11.988.079 4.295.460
F TOTAL EXPENDITURE 013+035 42 9.505.096 2.830.741 10.703.573 3.477.854
G Share in profit/loss of associates and subsidiaries 43
H PRE-TAX PROFIT OR LOSS 041-042+043 44 869.553 137.758 1.284.506 817.606
I INCOME TAX 45 0
J PROFIT OR LOSS FOR THE PERIOD 044-045 46 869.553 137.758 1.284.506 817.606
1 Change in revaluation reserves (property, plant, 47 0
2 Actuarial gains/losses on defined benefit pension plans 48 0 $\mathbf{0}$
3 Unrealised gains/losses on financial assets at fair value
through other comprehensive income
49 0
4 Gains/losses on hedging instruments in a cash flow hedge 50 0 0 $\mathbf{0}$
5 Gains/losses arising from translation of financial 51 0 0 $\mathbf{0}$ 0
6 Income tax on other comprehensive income 52 0 0 0
K OTHER COMPREHENSIVE INCOME 047++052 53 $\Omega$
TOTAL COMPREHENSIVE INCOME 046+053 54 869.553 137.758 1.284.506 817.606
M RECLASSIFICATION ADJUSTMENTS 55 $\mathbf{0}$
Appendix **
Attributable to owners of the parent 56 0 0 $\mathbf{0}$
Attributable to non-controlling interest 57 $\pmb{0}$ 0 $\pmb{0}$ $\mathbf{0}$

STATEMENT OF CASH FLOWS - indirect method

for the period 01.01.2019. to 30.9.2019

in HRK
Submitter: Zagreb Stock Exchange, Inc Same period of
Item ADP
code
the previous
year
Current period
$\overline{1}$ $\overline{2}$ 3 4
CASH FLOW FROM OPERATING ACTIVITIES
1 Pre-tax profit 1 869.553 1.284.506
2 Depreciation $\overline{2}$ 310.492 813.543
3 Increase in short-term liabilities 3 0
4 Decrease in short-term receivables $\overline{4}$ 0 0
5 Decrease in inventories $\overline{5}$ 742 0
6 Loss on impairment for expected credit losses $6\overline{6}$ 0 $\mathbf 0$
7 Other cash flow increase 7 0 $\Omega$
I Total cash flow increase from operating activities
$001 + + 007$
8 1.180.787 2.098.049
1 Decrease in short-term liabilities $\overline{9}$ 203.162 346.941
2 Increase in short-term receivables 10 510.378 552.179
3 Increase in inventories 11 0
4 Profit from reversal of provisions for impairment for expected 12
5 Other cash flow decrease 13 241.603 1.062.056
Il Total cash flow decrease from operating activities
$009 + + 013$
14 955.143 1.961.176
CASH FLOW FROM INVESTMENT ACTIVITIES
1 Cash receipts from sale of fixed tangible and intangible assets 15 0
2 Cash receipts the from sale of equity instruments and debt 16 0 0
3 Interest received 17 0
4 Dividends received 18 0
5 Other cash receipts from investment activities 19 471.378 320.000
III Total cash receipts from investment activities 015++019 20 471.378 320.000
1 Cash payments for the purchase of fixed tangible and intangible 21 20.506 422.228
2 Cash payments for the acquisition of equity financial 22 0
3 Other cash payments from investment activities 23 0 1.000.000
IV Total cash payments from investment activities
021+…+023
24 20.506 1.422.228
CASH FLOW FROM FINANCING ACTIVITIES
1 Cash receipts from the issue of equity financial instruments and
debt financial instruments
25 0 0
2 Cash receipts from credit principals, debentures, loans and
other borrowings
26 0 0
3 Other cash receipts from financing activities 27 0 0
V Total cash receipts from financing activities 025++027 28 Ω 0
1 Cash payments for credit principals and bonds 29 0 0
2 Cash payments for dividends 30 0 0
3 Cash payments for finance lease 31 0
4 Cash payments for the redemption of treasury shares
5 Other cash payments from financing activities 32
33
0
0
563.923
VI Total cash payments from operating activities 029++033 34 563.923
VII Cash and cash equivalents at the beginning of period 35 882.758 2.078.607
VIII Increase of cash and cash equivalents 36 676.516
IX Decrease of cash and cash equivalents 37 1.529.278
X Cash and cash equivalents at the end of period 38 1.559.274 549.329
for the period from 1.1.2019 ° 30.9.2019 in HRK
Attributable to owners of the parent
Item ADP Subscribed
capital
reserves
Capital
reserves
Profit
Profit or loss
for the year
(period)
profit or loss
Retained
brought
forward
Fair value
reserves
revaluati
reserves
Other
δ
controlling interests
Attributable to non-
Total capital
reserves
and
$\sim$ 3 4 5 6 $^{\circ}$ $\sigma$ $\overline{0}$ H
on the first day of the previous
business year
Balance
۳ 46.357.000 13.860.181 141.000 $-4.404.571$ $-17.590.812$ $\overline{\circ}$ $\overline{\circ}$ $\circ$ 38.362.798
Change in accounting policies $\mathbf 2$ $\circ$ $\circ$ O $\overline{\circ}$ $-287.207$ $\circ$ $\circ$ O $-287.20$
Correction of errors from prior periods 3 $\circ$ $\circ$ $\circ$ $\circ$ $\circ$ $\circ$ $\circ$ $\circ$
Balance on the first day of the previous
business year (restated)
4 000
357
46
860.181
$\mathbb{Z}$
8
141.
4.404.571 $-17.878.019$ $\circ$ $\circ$ $\circ$ 38.075.591
Profit or loss for the period 5 0 $\circ$ $\circ$ 310.533
H
$\circ$ $\circ$ $\circ$ $\circ$ 1.310.533
Unrealised gains or losses on financial assets at
fair value through other comprehensive income
6 $\circ$ $\circ$ $\circ$ $\overline{\circ}$ $\circ$ $\circ$ $\circ$ $\circ$ $\circ$
Other changes in equity unrelated to owners $\circ$ $\circ$ $\circ$ $\circ$ $\circ$ $\circ$ $\circ$ $\circ$
and
Total directly recognized income
expenses of the previous year (previous
year periods)
$\infty$ $\circ$ $\circ$ $\circ$ 310.533
$\mathbf{r}$
$\circ$ $\circ$ $\circ$ $\circ$ 1.310.533
Increase/decrease in subscribed capital $\circ$ $\circ$ $\circ$ $\circ$ $\circ$ $\circ$ $\circ$ $\circ$
Other contributions by owners $\overline{C}$ $\circ$ $\circ$ $\circ$ $\circ$ $\circ$ $\circ$ $\circ$ $\circ$
Payment of share in profit/dividend $\overline{\tau}$ $\circ$ $\circ$ $\circ$ $\overline{\circ}$ $\circ$ $\circ$ $\circ$ $\circ$
Other distribution to owners $\overline{c}$ $\circ$ $\circ$ $\circ$ 4.404.571 $-4.404.571$ $\circ$ $\circ$ $\circ$
previous
Balance on the last day of the
business year reporting period
$\frac{3}{2}$ 46.357.000 13.860.181 141.000 1.310.533 22.282.590 $\circ$ $\circ$ $\circ$ 39.386.124
current
the
đ
day
first
on the
business year
Balance
14 46.357.000 13.860.181 141.000 1.310.533 $-22.282.590$ $\circ$ O $\circ$ 39.386.124
Change in accounting policies 15 $\circ$ $\circ$ $\circ$ $\circ$ $\circ$ $\circ$
Correction of errors from prior periods 16 $\circ$ 이ㅇ $\circ$ $\overline{\circ}$ $\circ$ $\circ$ $\circ$ $\circ$
Balance on the first day of the current
business year (restated)
17 46.357.000 860.181
$\mathbb{Z}$
141.000 1.310.533 590
22.282.
$\circ$ $\circ$ $\circ$ 39.386.124
Profit or loss for the period $\frac{8}{3}$ 0 $\circ$ O 1.284.506 $\circ$ $\circ$ $\circ$ $\circ$ 1.284.506
Unrealised gains or losses on financial assets at
fair value through other comprehensive income
$\overline{9}$ $\overline{\circ}$ $\circ$ $\circ$ $\circ$ $\circ$ $\circ$ $\circ$ $\circ$ $\circ$
Other changes in equity unrelated to owners 20 $\circ$ $\circ$ $\circ$ $\circ$ $\circ$ $\circ$ $\circ$ $\circ$
current year (current
and
Total directly recognised income
the
$\mathfrak{b}$
expenses
$\overline{21}$ $\circ$ $\circ$ $\circ$ 284.506
H
$\circ$ $\circ$ $\circ$ $\circ$ 1.284.506
period)
Increase/decrease in subscribed capital 22 $\circ$ O $\circ$ $\overline{\circ}$ $\circ$ $\overline{\circ}$ $\circ$ $\circ$
Other contributions by owners 23 $\circ$ $\circ$ $\circ$ $\overline{\circ}$ $\circ$ $\circ$ $\circ$ $\circ$
Payment of share in profit/dividend 24 $\circ$ $\circ$ $\circ$ $\circ$ $\circ$ $\circ$ $\circ$
Other distribution to owners 25 $\circ$ $\circ$ $\circ$ $-1.310.533$ 1.310.533 $\circ$ $\circ$ $\circ$
the current
Balance on the last day of
business year reporting period
26 46.357.000 13.860.181 141.000 1.284.506 20.972.057 $\circ$ $\circ$ 40.670.630

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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