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Zagrebačka burza d.d.
Quarterly Report • Feb 24, 2020
2105_10-q_2020-02-24_e21f55f8-01f0-48f4-b57e-bd3fc18bc383.pdf
Quarterly Report
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Zagreb Stock Exchange, Inc.
Unconsolidated unaudited financial results for
01/01/2019-31/12/2019
24 February 2020
CONTENTS
| 1 | INTERIM MANAGEMENT REPORT FOR THE PERIOD BETWEEN 01/01/2019 AND 31/12/2019 | |
|---|---|---|
| 1.1 Significant business events of the Zagreb Stock Exchange, Inc. in the period between 01/01/2019 and 31/12/2019 ……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………… |
||
| 1.2 | Trading in 2019 | |
| 1.3 | Expected future development of the Company | |
| 1.4 | Research & Development activities | |
| 1.5 | Information on repurchase of own shares | |
| 1.6 | Subsidiaries of the Company | |
| 1.7 | Financial instruments used by the Company | |
| 1.8 | Company's objectives and policies related to financial risk management | |
| 1.9 | Company's exposure to price risk, credit risk, liquidity risk and cash flow risk | |
| 1.10 | Statement of transactions and transfers between the Company and its subsidiaries and shareholders 9 |
|
| 1.11 | Statement of events which might have an adverse effect on Company operations | |
| 1.12 Business results for 01/01/2019 - 31/12/2019 | ||
| 2 Declaration of responsibility for the preparation of financial statements | ||
| Unconsolidated unaudited financial statements of the Company for 01/01/2019 - 31/12/2019 ------------------------------------------------------------------------------------- |
1 INTERIM MANAGEMENT REPORT FOR THE PERIOD BETWEEN 01/01/2019 AND 31/12/2019
1.1 Significant business events of the Zagreb Stock Exchange, Inc. in the period between 01/01/2019 and 31/12/2019
in 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.
- 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 18, 2019, the Zagreb Stock Exchange has started to release a new share index, the index of Prime market 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 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.
On July 1, 2019, the Zagreb Stock Exchange made a decision on termination the listing of Hoteli Makarska d.d. because the merger of Hoteli Makarska d.d. to IMPERIAL RIVIERA d.d. led to terminating the Issuer and the financial instrument.
- On July 25, 2019, the Zagreb Stock Exchange made a decision on termination the listing of ເ Metalska industrija Varaždin d.d. for the purpose of carrying out the corporate action of transferring shares of minority shareholders of Metalska industrija Varaždin d.d. to the major shareholder HAWLE d.o.o. by which the financial instrument ceases to be eligible for listing on the Regular Market.
- On July 25, 2019, the Zagreb Stock Exchange made a decision on termination the listing of Questus nekretnine d.d. in liquidation because of termination of the Issuer and the financial instrument.
- In July 2019, HANFA 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 HANFA site as a "ZSE L1 certificate". The request concerned the recognition of a qualification for the first level competencies - 'Information', which, in accordance with the provisions of the Qualifications Regulations, includes competences for providing services (providing information to users regarding investment services and activities and ancillary services of the company) and informing about instruments (providing information to users related to financial instruments or structured deposits).
- On August 27, 2019, the Zagreb Stock Exchange made a decision for the transfer of Uljanik d.d. from Official to Regular Market of the Exchange for failure to fulfil the conditions and / or obligations after listing on the Official Market on 2 (two) consecutive periodic reviews.
- On August 30, 2019, the Zagreb Stock Exchange made a decision on termination the listing of Pounje d.d. for failure to fulfil obligations prescribed by the Rules of the Exchange after 2 (two) consecutive periodic reviews have been carried out, as well as multiple and repeated violations of the Rules and other acts of the Exchange.
- 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.
- On October 3, 2019, the Zagreb Stock Exchange held the first Investment Webcast for Prime Market.
- On October 15, 2019, at the conference "Quality of Corporate Governance", the new Code of Corporate Governance of the Croatian Financial Services Supervisory Agency and the Zagreb Stock Exchange was officially adopted.
- At the end of October 2018, the eighth joint conference of the Zagreb Stock Exchange and investment fund industry entitled "Challenge of Change" was held in Rovinj. The Conference represents a central event of the entire Croatian financial community, as well as that of the region.
- On November 25, 2019, the Croatian Financial Services Supervisory Agency approved the new Exchange Rules, which entered into force on December 9, 2019. The new Rules regulate stock market operations after the transition to the new version of the Xetra T7 trading platform and regulate in detail the post-listing eligibility check for all issuers, with the aim of increasing transparency on the Zagreb Stock Exchange.
- On December 9, 2019, a new version of the Xetra T7 trading platform was implemented on the Zagreb and Ljubljana Stock Exchange.
- On December 12, 2019, the Zagreb Stock Exchange Awards were officially presented.
- On December 12, 2019, the Croatian Financial Services Supervisory Agency issued a decision on the registration of the Zagreb Stock Exchange as an administrator of insignificant benchmarks based on regulated data in accordance with Regulation (EU) 2016/1011 of the European Parliament and of the Council on indices used as benchmarks in financial instruments and financial contracts or for measuring the performance of investment funds and amending Directives 2008/48 / EC and 2014/17 / EU and Regulation (EU) No 1095/2010. 596/2014.
- On December 18, 2019, the Zagreb Stock Exchange acquired 5.3% of the Macedonian Stock Exchange's ownership.
- 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 HANFA's approval. By the end of 2019, education and/or exams were conducted for almost 400 employees of two banks in 4 regional centres.
- In 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.
- In 2019, four new Bonds (Republic of Croatia Ministry of Finance, February 5, two on November 27, and Jadran - Galenski laboratorij d.d., December 18) and two new Shares (Meritus ulaganja d.d., August 6, and Professio Energia d.d., October 4) were listed.
- During 2019, four campaigns were carried out on the Funderbeam SEE platform, for the TDA-Top Digital Agency Company, where the amount of EUR 416,000 was collected, for the OmoLab Company, which raised the amount of EUR 240,000, for Include, where the amount of nearly EUR 1.5 million was raised, and for Fresh Island, which had raised over EUR 700,000.
1.2 Trading in 2019
The year behind us was marked by considerable trading volatility but its second half recorded a mostly positive trend, primarily as a result of increased investor interest in the shares of confectioner Kraš d.d.
This also benefited the rest of the market to a certain extent, so trading indicators improved: order book trading turnover rose 9%, with share trading growing 38%. Overall, trading was almost 5% stronger than a year earlier.
Equity Market Capitalization (HRK) and number of listed shares
Market value as measured by market capitalisation increased by a sizeable 13% in total, with equity market capitalisation up 11.5%.
| Trading overview | ||
|---|---|---|
| 2018 | 2019 | change | ||||
|---|---|---|---|---|---|---|
| Securities trading (HRK) | ||||||
| Orderbook turnover | 2,265,671,578 | 2,471,654,732 | 9.09% | |||
| Stocks | 1,579,186,074 | 2,179,124,772 | 37.99% | |||
| Bonds | 686,485,504 | 292,529,960 | -57.39% | |||
| Equity Block Turnover | 542,352,468 | 522,597,696 | -3.64% | |||
| Debt Block Turnover | 46,040,034 | 0 | -100 00% | |||
| TOTAL | 2,854,064,079 | 2,994,252,428 | 4.91% | |||
| Equity Market Capitalization (HRK) | ||||||
| Prime market | 9,025,809,770 | 15,395,492,904 | 70.57% | |||
| Official market | 57,304,941,333 | 59,131,758,922 | 3.19% | |||
| Regular market | 66,417,792,928 | 73,456,186,221 | 10.60% | |||
| TOTAL | 132,748,544,031 | 147,983,438,047 | 11.48% | |||
| Number of listed securities | ||||||
| Stocks | 132 | 119 | -9.35% | |||
| Prime market | 4 | 5 | 25.00% | |||
| Official market | 25 | 24 | -4.00% | |||
| Regular market | 103 | 90 | -12.62% | |||
| Bonds | 25 | 26 | 4.00% | |||
| TOTAL | 157 | 145 | -7.64% |
Some indices retreated (CROBEXkonstrukt, CROBEXturist and CROBEXtransport) while others advanced at a two-digit pace: CROBEXnutris (+38.18%) led the way, with CROBEXtr (+19.42%), which reflects an excellent dividend yield, CROBEX10 (+18%), CROBEXplus (+17%), CROBEXprime (+16.42%) and CROBEX (+15.36%) following suit. The new regional ADRIAprime index rose almost 11%.
| Index | 31.12.2018 | 31,12,2019 | change | Trading 2018 (HRK) |
Trading 2019 (HRK) |
change |
|---|---|---|---|---|---|---|
| CROBEX | 1,748.81 | 2,017.43 | 15.36% | 1,260,023,211 | 1,350,953,901 | 7.22% |
| CROBEXtr | 1,129.13 | 1,348.37 | 19.42% | 1,260,023,211 | 1,350,953,901 | 7.22% |
| CROBEX10 | 1,017.07 | 1,199.89 | 17.98% | 1,064,474,807 | 1,105,200,099 | 3.83% |
| CROBEXplus | 947.63 | 1,108.73 | 17.00% | 1,235,672,482 | 1,746,444,397 | 41.34% |
| CROBEXindustrija | 853.81 | 870.48 | 1.95% | 191,356,757 | 187,629,843 | -1.95% |
| CROBEXkonstrukt | 496.32 | 432.14 | -12.93% | 35,690,124 | 17,588,508 | -50.72% |
| CROBEXnutris | 498.62 | 689.01 | 38.18% | 196,622,769 | 663,015,538 | 237.20% |
| CROBEXprime | 1,000.00 | 1,164.17 | 16.42% | * 460,385,377 | ||
| CROBEXtransport | 791.07 | *** 750.13 | -5.18% | 76,990,599 | ** 29,622,504 | -61.52% |
| CROBEXturist | 3,538.52 | 3,456.83 | -2.31% | 374,778,551 | 345,681,037 | -7.76% |
| CROBIS | 110.99 | 115.59 | 4.15% | 10,394,666,546 | 9,656,303,872 | -7.10% |
| CROBISTI | 174.21 | 187.18 | 7.45% | 10,394,666,546 | 9,656,442,652 | -7.10% |
| Regional Index | 30.04.2019 | 31,12,2019 | change | |||
| ADRIAprime | 1,000.00 | 1,109.27 | 10.93% |
Indices - value and turnover
* Trading from 18.02.2019
** Trading until 14.10.2019 when temporary suspension starts
*** Value on 14.10.2019 when temporary suspension starts
The most heavily traded shares were those of Kraš d.d., followed by hotelier Valamar Riviera d.d. and Hrvatski Telekom d.d. (Croatian Telecom Inc.). Approximately one half of the turnover was concentrated in the 10 most liquid shares.
The year 2019 also saw two new listings (Meritus ulaganja d.d. and Professio Energia d.d.) while Valamar Riviera d.d. made a transition to the Prime Market, the most demanding market segment.
1.3 Expected future development of the Company
In 2020, 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).
In 2020, the Company plans to launch new websites, common to the Zagreb and Ljubljana Stock Exchange, for the first time since 2007.
1.4 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.
During the second half of 2019, the Company began migrating the Ljubljana Stock Exchange's downstream system to the Company's internally developed data warehouse system.
1.5 Information on repurchase of own shares
As of December 31, 2019, the Company held no own shares.
The Company did not acquire own shares between 1 January 2019 and 31 December 2019.
1.6 Subsidiaries of the Company
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 %.
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%.
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%.
1.7 Financial instruments used by the Company
The Company is fully funded by its own capital. The financial instruments the Company invests in are investment funds (money market and bond funds).
1.8 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.
1.9 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.
1.10 Statement of transactions and transfers between the Company and its subsidiaries and shareholders
The Company confirms that in 2019 there were no transactions between the Company and its subsidiaries and shareholders in excess of EUR 100,000.
1.11 Statement of events which might have an adverse effect on Company operations
The Company confirms that in 2019 there were no events that might have an adverse effect on Company operations.
1.12 Business results for 01/01/2019 - 31/12/2019
In 2019, the Company realized a total of HRK 14,263 thousand of operating income, up HRK +690 thousand or +5% from 2018 when operating income amounted to HRK 13,573 thousand. Compared to the 2018, sales revenue increased from HRK 9,131 thousand to HRK 9,215 thousand, up HRK +84 thousand or +1%. Commissions and membership fees, as the main source of revenue, increased from HRK 3,539 thousand to HRK 4,005 thousand, up HRK +466 thousand or +13%, which was strongly influenced by the increased volume of securities trading from September to the end of 2019.
However, income from listing maintenance fees decreased from HRK 4,204 thousand to HRK 3,931 thousand (HRK -273 thousand or -6%) as a result of securities delisting from the regulated market (in 2019, 15 shares and 4 bonds were delisted). The shortfall in income from quotation maintenance was partially offset by price increase. In addition to income from quotation maintenance, LEI issuance and maintenance revenues decreased from HRK 457 thousand to HRK 396 thousand (HRK -61 thousand or -13%) and Income from quotation maintenance from HRK 929 thousand to HRK 882 thousand (HRK -47 thousand or -5%). The increase in total operating income was mostly influenced by the increase in other operating income by significant HRK +605 thousand or +14%, from HRK 4,443 thousand to HRK 5,048 thousand. The increase in other operating revenues includes an increase in sales of information that increased from HRK 2,248 thousand to HRK 2,349 thousand (HRK +101 thousand or +4,5%), and an increase in other income which increased from HRK 2,195 thousand to HRK 2,699 thousand (HRK +504 thousand or +23%). Other revenue items that contributed the most to this increase were: receivables (HRK +326 thousand), conference and consulting (HRK +51 thousand), and revenue from OTC service (HRK + 98 thousand).
The Company's total operating expenses in 2019 amounted to HRK 14,388 thousand, which represents an increase of HRK +831 thousand or + 6% compared to 2018 when operating expenses amounted to HRK 13,557 thousand. A significant increase in depreciation and amortization from HRK 368 thousand to HRK 1,077 thousand (+193%) and a decrease in the office space rent and related costs from HRK 1,318 thousand to HRK 624 thousand (-53%) are related to the application of 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. The increase in depreciation and amortization was also influenced by the implementation of cross request functionality at the beginning of 2019. In addition to depreciation and amortization, the items of operating expenses that recorded an increase compared to 2018 are: other expenses (HRK + 504 thousand or +28%, from HRK 1,803 to HRK 2,307 thousand), staff costs (HRK +400 thousand or +6%, from HRK 6,200 thousand to HRK 6,600 thousand) and value adjustments (HRK +48 thousand, or +14%, from HRK 340 thousand to HRK 388 thousand). The increase in other expenses was mostly influenced by the increase in advertising costs and the organization of additional presentation activities for issuers (around HRK +230 thousand), followed by the FESE membership fee (HRK 119 thousand) and the cost of the HANFA fee (HRK +30 thousand). Compared to the previous year, a decrease was recorded in material expenses (HRK -609 thousand or -13%, from HRK 4,548 thousand to HRK 3,939 thousand) and other operating expenses (HRK -222 thousand or -74%, from HRK 298 thousand to HRK 76 thousand).
| 2018 | 4Q 2018 | 2019 | 40 2019 | |
|---|---|---|---|---|
| Share capital | 46,357,000 | 46,357,000 | 46,357,000 | 46,357,000 |
| Capital and reserves | 39,386,124 | 39,386,124 | 40,579,875 | 40,579,875 |
| Total assets | 43,525,605 | 43,525,605 | 46,618,050 | 46,618,050 |
| Operating income | 13,573,558 | 4,539,789 | 14,263,379 | 4,089,875 |
| sales revenue | 9,130,781 | 2,467,410 | 9,215,269 | 2,527,563 |
| other operating income | 4,442,777 | 2,072,379 | 5,048,110 | 1,562,312 |
| Operating expenses | 13,556,609 | 4,062,150 | 14,387,619 | 4,104,652 |
| material costs | 4,547,911 | 1,427,486 | 3,939,223 | 1,166,247 |
| staff costs | 6,200,465 | 1,633,763 | 6,600,233 | 1,697,727 |
| depreciation and amortization | 367,598 | 57,106 | 1,076,658 | 263,115 |
| other costs | 2,440,635 | 943,795 | 2,771,505 | 977,563 |
| EBIT | 16,949 | 477,639 | -124,240 | -14,777 |
| EBITDA | 384,547 | 534,745 | 952,418 | 248,338 |
| Financial income | 1,330,298 | -10,582 | 1,864,923 | 50,348 |
| Financial expenses | 36,714 | 26,077 | 546,932 | 126,326 |
| Pre-tax profit or loss | 1,310,533 | 1,310,533 | 1,193,751 | -90,755 |
| Income tax | 0 | 0 | 0 | 0 |
| Profit or loss for the period | 1,310,533 | 1,310,533 | 1,193,751 | -90,755 |
| Number of shares | 4,635,700 | 4,635,700 | 4,635,700 | 4,635,700 |
| Number of employees | 25 | 25 | 26 | 26 |
The Company's key business indicators
The Company's operating loss in 2019 amounted to HRK -124 thousand, while in the previous year operating profit amounted to HRK 17 thousand. In 2019, financial income amounted to HRK 1,865 thousand or +535 thousand, or +40% more than the financial income generated the year before when financial income amounted to HRK 1,330 thousand. Financial expenses in 2019 amount to HRK 547 thousand which is an increase of HRK +510 thousand compared to 2018. The high financial expenses are the result of the adjustment of the value of the shares acquired by the Company in the course of the pre-bankruptcy settlement during 2019 and are stated in the position of unrealized losses on financial assets. As the investments in share capital were in the nominal value, it appeared that all receivables were fully paid and therefore the revenue from the receivables was recognized on that basis. However, since there are indications that the value of the shares is not equal to the nominal value, an adjustment was made to the value of those financial assets. The rest of the financial expenses relate to interest on operating leases. This is a consequence of the application of IFRS 16 under which long-term operating leases are treated as long-term liabilities and the lease payment is divided into principal and interest. In previous years, the entire amount of leasing paid was charged to the rental cost.
Accordingly, the net profit of the period amounts to HRK 1,194 thousand, which is a decrease of HRK -117 thousand or -9% compared to the previous year when net profit amounted to HRK 1,311 thousand.
Operating profit before interest, taxes, depreciation and amortization is positive and amounts to HRK 952 thousand in 2019, an increase of HRK +568 thousand compared to 2018.
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 31/12/2019 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 31/12/2019 give an objective, complete and true statement of assets and liabilities, financial position and operations of the Company.
The management report for 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 2019 have not been audited.
ZAGREBAČKA BURZA d.d. Tomisłav Gračan lvana Galit Zagreb I Member of the Management Board President of the Management Board
Contact
Zagreb Stock Exchange, Inc. lvana Lučića 2a/22 10000 Zagreb Croatia
Phone number: +385/ 1 468 6806 E-mail: [email protected]
Unconsolidated unaudited financial statements of the Company for 01/01/2019 – 31/12/2019
| Annex 1 | ISSUER'S GENERAL DATA | ||||||
|---|---|---|---|---|---|---|---|
| Reporting period: | 1.1.2019 | to | 31.12.2019 | ||||
| Year: | 2019 | ||||||
| Quarter: | 4 | ||||||
| Quarterly financial statements | |||||||
| histration number (MB): | 03749606 | Issuer's home | HR | ||||
| Member State code: | |||||||
| 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 |
26 | ||||||
| Consolidated report: | KN | (KN-not consolidated/KD-consolidated) | |||||
| Audited: | RN | (RN-not audited/RD-audited) | |||||
| Names of subsidiaries (according to IFRS): | Registered office: | MB: | |||||
| Bookkeeping firm: | 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 : | |||||||
| Certified auditor: | (name of the audit firm) | ਹੈ ਕੇ | |||||
| (name and surname) |
| BALANCE SHEET balance as at 31.12.2019 |
|||
|---|---|---|---|
| in HRK | |||
| Submitter: Zagreb Stock Exchange, Inc | At the | ||
| Last day of | reporting | ||
| Item | ADP | the preceding | date of the |
| code | business | current | |
| year | period | ||
| 1 | 2 | 3 | 4 |
| ASSETS | |||
| FIXED ASSETS 002+003+009+012 | 1 | 21,070,447 | 23,522,947 |
| I INTANGIBLE ASSETS | 2 | 630,572 | 1,080,165 |
| II TANGIBLE ASSETS 004+ +008 | 3 | 399,620 | 1,297,386 |
| 1 Land and buildings | 4 | 0 | 0 |
| 2 Computer equipment | 5 | 266,705 | 160,729 |
| 3 Other tangible assets 4 Leasehold improvements |
6 7 |
8,125 | 3,282 |
| 5 Assets under construction | 8 | 124,790 0 |
1,133,375 0 |
| III FIXED FINANCIAL ASSETS 010+011 | 9 | 20,040,255 | 21,145,396 |
| 1 Investments in associates, subsidiaries and joint ventures | 10 | 19,375,969 | 19,375,969 |
| 2 Financial assets at amortised cost | 11 | 664,286 | 1,769,427 |
| DEFERRED TAX ASSETS | 12 | 0 | 0 |
| B CURRENT ASSETS 014+020+024 | 13 | 21,773,518 | 22,369,360 |
| I REGEIVABLES 015+ +019 | 14 | 2,001,931 | 2,467,873 |
| 1 Trade receivables | 15 | 1,420,517 | 1,703,240 |
| 2 Receivables from employees and members of the undertaking | 16 | 1,470 | 390 |
| 3 Receivables from government and other institutions | 17 | 5,977 | 6,074 |
| 4 Receivables from connected undertakings | 18 | 5,192 | 199,833 |
| 5 Other receivables | 19 | 568,775 | 558,336 |
| III SHORT-TERM FINANCIAL ASSETS 021+ +023 | 20 | 17,692,980 | 19,583,059 |
| 1 Financial assets at amortised cost | 21 | 0 | 0 |
| 2 Financial assets at fair value through other comprehensive | 22 | 0 | 0 |
| 3 Financial assets at fair value through statement of profit or | 23 | 17,692,980 | 19,583,059 |
| III CASH AND CASH EQUIVALENTS | 24 | 2,078,607 | 318,428 |
| C PREPAID EXPENSES AND ACCRUED INCOME | 25 | 681,640 | 725,743 |
| D TOTAL ASSETS 001+013+025 | 26 | 43,525,605 | 46,618,050 |
| E OFF-BALANCE SHEET ITEMS | 27 | 0 | 0 |
| LIABILITES | |||
| A CAPITAL AND RESERVES 029+030+031+036+037+038 | 23 | 39,386,124 | 40,579,875 |
| I INITIAL CAPITAL II CAPITAL RESERVES |
29 | 46,357,000 | 46,357,000 |
| III PROFIT RESERVES 032+ +035 | 30 31 |
13,860,181 | 13,860,181 |
| 1 Legal reserves | 32 | 141,000 141,000 |
141,000 141,000 |
| 2 Reserves for treasury shares | 33 | 0 | 0 |
| 3 Fair value reserves | 34 | O | 0 |
| 4 Other reserves | 35 | O | 0 |
| IV RETAINED PROFIT OR LOSS BROUGHT FORWARD | રૂદિ | -22,282,590 | -20,972,057 |
| V PROFITOR LOSS FOR THE YEAR | 37 | 1,310,533 | 1,193,751 |
| VI MINORITY INTEREST | 38 | O | 0 |
| B PROVISIONS | 39 | 0 | 0 |
| C SHORT TERM LIABILITIES 041+ 046 | 40 | 927,849 | 1,841,918 |
| 1 Liabilities for advance payments | 41 | 8,945 | 11,351 |
| 2 Trade payables | 42 | 299,469 | 488,763 |
| 3 Liabilities to employees | 43 | 296,506 | 310,224 |
| 4 Taxes, contributions and similar liabilities | 44 | 322,929 | 295,767 |
| 5 Liabilities to connected undertakings | 45 | O | 2,233 |
| 6 Other short-term liabilities | 46 | O | 733,580 |
| D LONG-TERM LIABILITIES | 47 | 0 | 301,761 |
| E DEFERRED TAX LIABILITY F ACCRUALS AND DEFERRED INCOME |
48 | 0 | 0 |
| G TOTAL LIABILITIES 028+039+040+047+048+049 | 49 50 |
3,211,632 | 3,894,496 |
| H OFF-BALANCE SHEET ITEMS | 51 | 43,525,605 0 |
46,618,050 0 |
| Appendix to the balance sheet (position for consolidated financial statements) | |||
| I Capital and reserves 053+054 | 52 | 0 | 0 |
| 1 Attributable to owners of the parent | 53 | 0 | 0 |
| 2 Attributable to non-controlling interest | 54 | 0 | 0 |
| Submitter: Zagreb Stock Exchange, Inc | in HRK | ||||
|---|---|---|---|---|---|
| Item | ADP code |
Same period of the previous year | Current period | ||
| Cumulative | Quarter | Cumulative | Quarter | ||
| 1 | 2 | 3 | 4 | ട | 6 |
| A OPERATING INCOME 002+009 | 1 | 13,573,558 | 4,539,789 | 14,263,379 | 4,089,875 |
| I Sales revenue 003+ +008 | 2 | 9,130,781 | 2,467,410 | 9,215,269 | 2,527,563 |
| 1 Commissions and membership fees | 3 | 3,539,548 | 932,892 | 4,005,266 | 1,145,888 |
| 2 Listing maintenance fees | 4 5 |
4,204,410 | 1,141,586 | 3,931,751 | 1,080,767 |
| 3 Income from quotation maintenance 4 Income from auctions |
6 | 929,458 0 |
269,812 O |
882,321 O |
206,429 0 |
| 5 Income from memberships | 7 | 0 | 0 | 0 | 0 |
| 6 Revenue from assigning and administering LEIs | 8 | 457,365 | 123,120 | 395,931 | 94,479 |
| Il Other operating income 010+ +012 | 9 | 4,442,777 | 2,072,379 | 5,048,110 | 1,562,312 |
| 1 Income from application programming interface (API) services | 10 | 0 | O | 0 | 0 |
| 2 Income from the supply of information | 11 | 2,247,615 | 749,216 | 2,349,117 | 610,715 |
| 3 Other income | 12 | 2,195,162 | 1,323,163 | 2,698,993 | 951,597 |
| B OPERATING EXPENSES 014+017+021+022+023+026+027 | 13 | 13,556,609 | 4,062,150 | 14,387,619 | 4,104,652 |
| I Material costs 015+016 | 14 | 4,547,911 | 1,427,486 | 3,939,223 | 1,166,247 |
| 1 Costs of raw materials | 15 | 485,302 | 111,942 | 488,428 | 140,189 |
| 2 Other external costs | 16 | 4,062,609 | 1,315,544 | 3,450,795 | 1,026,058 |
| Il Staff costs 018+ +020 | 17 | 6,200,465 | 1,633,763 | 6,600,233 | 1,697,727 |
| 1 Net salaries and wages | 18 | 3,358,943 | 888,394 | 3,616,650 | 935,610 |
| 2 Tax and contributions from salary costs | 19 | 1,952,474 | 509,564 | 2,076,987 | 533,760 |
| 3 Payroll contributions | 20 | 889,048 | 235,805 | 906,596 | 228,357 |
| III Depreciation | 21 | 367,598 | 57,106 | 1,076,658 | 263, 115 |
| IV Other costs | 22 | 1,803,028 | 702,341 | 2,307,099 | 686,258 |
| V Value adjustment 024+025 | 23 | 339,733 | 211,527 | 388,053 | 245,813 |
| 1 fixed assets (other than financial assets) | 24 | 0 | O | O | 0 |
| 2 current assets (other than financial assets) | 25 | 339,733 | 211,527 | 388,053 | 245,813 |
| VI Provisions | 26 | 0 | 0 | 0 | 0 |
| VII Other operating expenses | 27 | 297,874 | 29,927 | 76,353 | 45,492 |
| C FINANCIAL INCOME 029+ + 034 | 28 | 1,330,298 | -10,582 | 1,864,923 | 50,348 |
| 1 Interest, exchange rate differences, dividends and similar | 29 | 1,244,925 | રેરે | 420,944 | 263 |
| 2 Interest, exchange rate differences, dividends and similar | 30 | 85,373 | 18,081 | 229,365 | 83,909 |
| 3 Income share from associates and participating interests | 31 | 0 | 0 | O | 0 |
| 4 Unrealised gains (income) from financial assets | 32 | 0 | -28,716 | 1,204,354 | -44,084 |
| 5 Profit from reversal of provisions for impairment for expected | 33 | 0 | 0 | 0 | 0 |
| 6 Other financial income D FINANCIAL EXPENSES 036+ +040 |
34 | 0 | 0 | 10,260 | 10,260 |
| 1 Interest, exchange rate differences and other expenditures with | 35 36 |
36,744 0 |
26,077 0 |
546,932 | 126,326 222 |
| 2 Interest, exchange rate differences and other expenditure from | 37 | 12,398 | 1,846 | 654 78,722 |
21,900 |
| 3 Unrealised losses (expenses) from financial assets | 38 | 24,236 | 24,231 | 467,556 | 104,819 |
| 4 Loss on impairment for expected credit losses | 39 | O | -80 | O | 0 |
| 5 Other financial expenses | 40 | 80 | 80 | O | -615 |
| ETOTAL INCOME 001+028 | 41 | 14,903,856 | 4,529,207 | 16,128,302 | 4,140,223 |
| F TOTAL EXPENDITURE 013+035 | 42 | 13,593,323 | 4,088,227 | 14,934,551 | 4,230,978 |
| G Share in profit/loss of associates and subsidiaries | 43 | 0 | 0 | 0 | 0 |
| H PRE-TAX PROFIT OR LOSS 041-042+043 | 44 | 1,310,533 | 440,980 | 1,193,751 | -90,755 |
| I INCOME TAX | 45 | 0 | 0 | 0 | 0 |
| J PROFIT OR LOSS FOR THE PERIOD 044-045 | 46 | 1,310,533 | 440,980 | 1,193,751 | -90,755 |
| 1 Change in revaluation reserves (property, plant, | 47 | 0 | 0 | 0 | 0 |
| 2 Actuarial gains/losses on defined benefit pension plans | 48 | 0 | 0 | 0 | 0 |
| 3 Unrealised gains/losses on financial assets at fair value through other comprehensive income |
49 | 0 | 0 | 0 | 0 |
| 50 | 0 | 0 | 0 | 0 | |
| 4 Gainslosses on hedging instruments in a cash flow hedge | |||||
| 5 Gains losses arising from translation of financial | 51 | 0 | 0 | 0 | 0 |
| 6 Income tax on other comprehensive income | 52 | 0 | 0 | 0 | 0 |
| K OTHER COMPREHENSIVE INCOME 047+ + 052 | રિક | 0 | 0 | 0 | 0 |
| TOTAL COMPREHENSIVE INCOME 046+053 | 54 | 1,310,533 | 440,980 | 1,193,751 | -90,755 |
| M RECLASSIFICATION ADJUSTMENTS Appendix ** |
55 | 0 | 0 | 0 | 0 |
| Attributable to owners of the parent | 56 | 0 | 0 | 0 | 0 |
| Attributable to non-controlling interest | 57 | 0 | 0 | 0 | 0 |
STATEMENT OF PROFIT OR LOSS For the period 01.01.2019. to 31.12.2019
STATEMENT OF CASH FLOWS - indirect method for the period 01.01.2019. to 31.12.2019
| in HRK | |||
|---|---|---|---|
| Submitter: Zagreb Stock Exchange, Inc | |||
| Item | ADP code |
Same period of the previous year |
Current period |
| 1 | 2 | 3 | 4 |
| CASH FLOW FROM OPERATING ACTIVITIES | |||
| 1 Pre-tax profit | 1 | 1,310,533 | 1,193,751 |
| 2 Depreciation | 2 | 367,598 | 1,076,658 |
| 3 Increase in short-term liabilities | 3 | 88,239 | 0 |
| 4 Decrease in short-term receivables | 4 | 0 | 0 |
| 5 Decrease in inventories | 5 | 3,901 | 0 |
| 6 Loss on impairment for expected credit losses | 6 | 0 | 0 |
| 7 Other cash flow increase | 7 | 189,808 | 0 |
| I Total cash flow increase from operating activities 001+ +007 |
8 | 1,960,079 | 2,270,409 |
| 1 Decrease in short-term liabilities | 9 | 0 | 553,984 |
| 2 Increase in short-term receivables | 10 | 950,576 | 853,995 |
| 3 Increase in inventories | 11 | 0 | 0 |
| 4 Profit from reversal of provisions for impairment for expected | 12 | 0 | 0 |
| 5 Other cash flow decrease | 13 | 1,485,049 | 183,264 |
| Il Total cash flow decrease from operating activities 009+ +013 |
14 | 2,435,625 | 1,591,243 |
| CASH FLOW FROM INVESTMENT ACTIVITIES | |||
| 1 Cash receipts from sale of fixed tangible and intangible assets | 15 | 0 | 0 |
| 2 Cash receipts the from sale of equity instruments and debt | 16 | 500,095 | 0 |
| 3 Interest received | 17 | 55,139 | 0 |
| 4 Dividends received | 18 | 1,244,866 | 0 |
| 5 Other cash receipts from investment activities | 19 | 0 | 320,000 |
| III Total cash receipts from investment activities 015+ +019 | 20 | 1,800,100 | 320,000 |
| 1 Cash payments for the purchase of fixed tangible and intangible | 21 | 39,176 | 654,204 |
| 2 Cash payments for the acquisition of equity financial | 22 | 44,800 | 1,105,141 |
| 3 Other cash payments from investment activities | 23 | 0 | 1,000,000 |
| IV Total cash payments from investment activities 021+ +023 |
24 | 83,976 | 2,759,345 |
| 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 | 0 | 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 | 0 |
| 4 Cash payments for the redemption of treasury shares | 32 | 0 | 0 |
| 5 Other cash payments from financing activities | 33 | 44,730 | 0 |
| VI Total cash payments from operating activities 029 + 033 | 34 | 44,780 | 0 |
| VII Cash and cash equivalents at the beginning of period | 35 | 882,758 | 2,078,607 |
| VIII Increase of cash and cash equivalents | રેણ | 1,195,848 | 0 |
| IX Decrease of cash and cash equivalents | 37 | 0 | 1,760,179 |
| X Cash and cash equivalents at the end of period | 38 | 2,078,606 | 318,428 |
| ಾರ್ | for the period from | STATEMENT OF CHANGES IN EQUITY 1.1.2019 |
||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| to | 31.12.2019 | in HRK | ||||||||
| Item | ADP | Subscribed capital |
reserves Capital |
reserves Profit |
Attributable to owners of the parent Profit or loss for the year (period) |
profit or loss Retained brought forward |
Fair value reserves |
revaluati reserves Other on |
controlling interests Attributable to non- |
Total capital reserves and |
| 2 | 3 | র্ব | 9 | 6 | 7 | 8 | 6 | 10 | 11 | |
| on the first day of the previous business year Balance |
1 | 46,357,000 | 13,860,181 | 141,000 | -4,404,571 | -17,590,812 | 0 | 0 | 0 | 38,362,798 |
| Change in accounting policies | ਟ | 0 | 0 | 0 | -287,207 | 0 | 0 | 0 | -287.207 | |
| Correction of errors from prior periods | 3 | 0 | 0 | 00 | 0 | 0 | 0 | 0 | 0 | |
| Balance on the first day of the previous business year (restated) |
7 | 46,357,000 | 13,860,181 | 141,000 | -4,404,571 | -17,878,019 | 0 | 0 | 0 | 38,075,591 |
| Profit or loss for the period | 9 | 0 | 0 | 0 | 1,310,533 | 0 | 0 | 0 | 0 | 1,310,533 |
| at Unrealised gains or losses on financial assets fair value through other comprehensive income |
9 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other changes in equity unrelated to owners | L | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| and the previous year (previous income Total directly recognized expenses of year periods) |
8 | 0 | 0 | 0 | 1,310,533 | 0 | 0 | 0 | 1,310,533 | |
| ncrease/decrease in subscribed capital | 6 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Other contributions by owners | 10 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Payment of share in profit/dividend | 11 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Other distribution to owners | 12 | 0 | 0 | 0 | 4,404.571 | -4,404,571 | 0 | 0 | 0 | |
| last day of the previous business year reporting period the on Balance |
13 | 46,357,000 | 13,860,181 | 141,000 | 1,310,533 | -22,282,590 | 0 | 0 | 3 | 39,386,124 |
| the current Balance on the first day of year business |
14 | 46.357.000 | 13,860,181 | 141,000 | 1,310,533 | -22,282,590 | 0 | 0 | 0 | 39,386,124 |
| Change in accounting policies | 15 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Correction of errors from prior periods | 16 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| current the Balance on the first day of business year (restated) |
17 | 46,357,000 | 13,860,181 | 141,000 | 1,310,533 | -22,282,590 | 0 | 0 | 0 | 39,386,124 |
| Profit or loss for the period | 18 | 0 | 0 | 0 | 1,193,751 | 0 | 0 | 0 | 0 | 1,193,751 |
| at fair value through other comprehensive income Unrealised gains or losses on financial assets |
19 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Other changes in equity unrelated to owners | 20 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| and year (current income Total directly recognised current the of expenses period) |
21 | 0 | 0 | 0 | 1,193,751 | 0 | 0 | 0 | 0 | 1,193,751 |
| Increase/decrease in subscribed capital | 22 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Other contributions by owners | 23 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||
| Payment of share in profit/dividend | 24 | 0 | 0 | 0 | 0 | 0 | 00 | 0 | 0 | |
| Other distribution to owners | 25 | 0 | 0 | 0 | -1,310,533 | 1,310,533 | 0 | 0 | 0 | |
| Balance on the last day of the current business year reporting period |
26 | 46,357,000 | 13,860,181 | 141.000 | 1,193,751 | -20,972,057 | O | 0 | 0 | 40,579,875 |
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 - 31.12.2019
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.