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Zagrebačka burza d.d.

Quarterly Report Apr 27, 2020

2105_10-q_2020-04-27_9d562051-a17a-42a0-a46a-51ac4404d1b0.pdf

Quarterly Report

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Zagreb Stock Exchange Group

Consolidated unaudited financial results for

01/01/2020 – 31/03/2020

27 April 2020

CONTENTS

1 INTERIM MANAGEMENT
REPORT
FOR
THE
PERIOD
BETWEEN
01/01/2020
AND
31/03/2020
1
1.1 Significant business events of the Group in the period between 01/01/2020 and 31/03/20201
1.2 Zagreb and Ljubljana Stock Exchange Trading overview2
1.3 Expected future development of the Group 5
1.4 Research & Development activities6
1.5 Information on repurchase of own shares6
1.6 Zagreb Stock Exchange Group 6
1.7 Financial instruments used by the Group7
1.8 Group's objectives and policies related to financial risk management7
1.9 Group's exposure to price risk, credit risk, liquidity risk and cash flow risk 7
1.10 Statement of transactions and transfers within the Group and between the Group and its
shareholders7
1.11 Statement of events which might have an adverse effect on Group operations8
1.12 Business results for 01/01/2020 – 31/03/20208
2 Declaration of responsibility for the preparation of financial statements11
Consolidated unaudited financial statements of the Group for 01/01/2020 – 31/03/2020 12

1 INTERIM MANAGEMENT REPORT FOR THE PERIOD BETWEEN 01/01/2020 AND 31/03/2020

1.1 Significant business events of the Group in the period between 01/01/2020 and 31/03/2020

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

  • On January 7, 2020, the Company made a decision on termination of the listing of the stocks of HOTELI BRELA d.d., HOTEL TUČEPI d.d. and ZLATNI RAT HOTELI d.d. due to merging the said companies with the joint-stock company SUNCE HOTELI d.d., which led to terminating the Issuer and the financial instrument.
  • On January 8, 2020, the stock of ALPHA ADRIATIC d.d. has been moved to a lower market segment, from Official to Regular Market.
  • On January 10, 2020, the Company made a decision on termination of the listing of the stocks of AGROMEĐIMURJE d.d. following the decision of the General Assembly to withdraw all stocks from listing on the regulated market.
  • On January 16, 2020, the Company made a decision on termination of the listing of the stocks of TERMES GRUPA d.d. following the decision of the General Assembly to withdraw all stocks from listing on the regulated market.
  • In January 2020, a campaign for the company STEMI was completed on the Funderbeam SEE platform, raising EUR 318,000.
  • On March 3, 2020, two new bonds of the Ministry of Finance of the Republic of Croatia were listed on the Official Market of the Exchange.
  • On March 6, 2020, the "Ring the bell for gender equality" event was attended by the President of the Republic of Croatia, Mr. Zoran Milanović, and a significant media presence of the event and the Zagreb Stock Exchange was achieved.
  • On March 16, 2020, following the opinion of the Market Protection Measures Committee, the level of severity and effects of breaches of the Exchange Rules on investors and the proper functioning of the market, the Company made a decision on the termination of the listing of the following Agrokor d.d. issuer's stocks: BELJE d.d., JAMNICA d.d., LEDO d.d., PIK-VINKOVCI d.d., TISAK d.d., VUPIK d.d. and STAR d.d.
  • As of March 16, 2020, the Zagreb and Ljubljana Stock Exchange has been operating out of the office. The offices of the exchanges are closed until further notice, and business is regularly carried out at secondary locations and employees work from home. The objective of the Management Boards of both exchanges is to ensure continuous trading throughout the

trading day, as long as objective circumstances permit. The decision was made in order to protect the health of employees and clients as well as the long-term sustainability of the business.

  • On March 20, 2020, following the opinion of the Market Protection Measures Committee, the level of severity and effects of breaches of the Exchange Rules on investors and the proper functioning of the market, the Company made a decision on the termination of the listing of ELEKTROPROMET d.d.
  • On March 23, 2020, the Ljubljana Stock Exchange hosted a webcast called Presenting Slovenian Listed Companies Online.

1.2 Zagreb and Ljubljana Stock Exchange Trading overview

The first quarter of 2020 was marked by a higher securities turnover since the end of February under the influence of the Covid-19 appearance in the Republic of Croatia.

Securities turnover at the Zagreb Stock Exchange

Orderbook book turnover was +183% higher than in the same period last year, with equity turnover up +209%. Overall, quarter-on-quarter traffic was almost +159% higher than last year.

Equity Market Capitalization and number of listed stocks

The Market value measured by market capitalization decreased by -2% in total, with equity market capitalization down -7.4%.

1Q 2019 1Q 2020 change
Securities trading (HRK)
Orderbook turnover 393.383.927 1.112.229.578 182,73%
Stocks 334.048.691 1.031.080.460 208,66%
Bonds 59.335.236 59.335.236 0,00%
Equity Block Turnover 141.638.148 272.720.326 92,55%
Debt Block Turnover 0 0
TOTAL 535.022.075 1.384.949.904 158,86%
Equity Market Capitalization (HRK)
Prime market 8.923.415.245 10.998.695.042 23,26%
Official market 58.412.505.070 54.152.680.977 -7,29%
Regular market 68.861.237.105 60.965.064.988 -11,47%
TOTAL 136.197.157.421 126.116.441.006 -7,40%
Number of listed securities
Stocks 130 106 -18,46%
Prime market 4 5 25,00%
Official market 25 23 -8,00%
Regular market 101 78 -22,77%
Bonds 26 26 0,00%
TOTAL 156 132 -15,38%

ZSE Trading overview

With the exception of CROBEXnutris, which increased by +15.54%, all stock indices fell by double digits: the largest decrease was recorded by CROBEXconstruct (-35.34%), followed by CROBEXindustry (-26.10%), CROBEXturist (-25.11%), CROBEX (-17.65%), CROBEXprime (-15.89%), CROBEXtr (-14.69%), CROBEXplus (-13.77%), CROBEX10 (-12.49%). The new ADRIAprime regional index is down -16.32% from its initial value.

Index 31.3.2019 31.3.2020 Change Turnover
(HRK) 1Q 2019
Turnover
(HRK) 1Q 2020
change
CROBEX 1.797,81 1.480,51 -17,65% 275.326.342 833.729.502 202,82%
CROBEXtr 1.161,65 990,99 -14,69% 275.326.342 833.729.502 202,82%
CROBEX10 1.048,23 917,27 -12,49% 209.554.290 726.698.762 246,78%
CROBEXprime 993,00 835,20 -15,89% 50.644.270 319.143.034 530,17%
CROBEXplus 947,63 817,11 -13,77% 282.434.692 806.419.202 185,52%
CROBEXindustrija 840,51 621,12 -26,10% 34.350.840 135.462.693 294,35%
CROBEXkonstrukt 470,56 304,28 -35,34% 4.230.934 5.455.560 28,94%
CROBEXnutris 492,13 568,63 15,54% 27.186.940 121.086.165 345,38%
CROBEXtransport 588,59 \ 7.187.623 \
CROBEXturist 3.392,32 2.540,45 -25,11% 84.796.694 202.364.961 138,65%
CROBIS 112,49 111,11 -1,22% 3.685.704.130 7.889.119.416 114,05%
CROBIStr 178,10 181,30 1,80% 3.685.842.910 7.889.119.416 114,04%
ADRIAprime *1.000,00 836,85 -16,32% \ \ \

Indices – value and turnover

Value on 30.4.2019 when the computation begins

Total turnover on the Ljubljana Stock Exchange in the first quarter of 2020 increased by slightly more than +100% compared to the same period in 2019. As in Croatia, the increase in turnover is influenced by the appearance of Covid-19 in Slovenia, with equity turnover reaching almost EUR 133 million in the first quarter of 2020 (+103% increase over the first quarter of 2019 when equity turnover reached just over EUR 65 million), while bond turnover amounted to EUR 0.9 million (a decrease of -34% compared to the same period in 2019 when it amounted to EUR 1.4 million).

Equity market capitalization fell by almost -16% since the first quarter of 2019. Compared to March 31, 2019, the SBI TOP index is down by -15.5%.

LJSE Trading overview
1Q 2019 1Q 2020 change
Total turnover (EUR) 66.705.972 133.638.254 100,34%
Stocks 65.328.980 132.728.078 103,17%
Bonds 1.374.022 910.176 -33,76%
Commercial Papers 2.970 0 -100,00%
Equity Market Capitalization (EUR) 6.711.690.222 5.646.492.924 -15,87%
Index value on 31 March 868 733 -15,50%

1.3 Expected future development of the Group

In 2020, 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).

In 2020, the Group 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 Group invests constant efforts into 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 Zagreb Stock Exchange began migrating the Ljubljana Stock Exchange's downstream system to the Zagreb Stock Exchange's internally developed data warehouse system. Work on the full implementation of this system has also been carried over to the first part of 2020.

1.5 Information on repurchase of own shares

As of March 31, 2020, the companies in the Group held no own shares.

The companies in the Group did not acquire own shares between 1 January 2020 and 31 March 2020.

1.6 Zagreb Stock Exchange Group

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%.

On December 18, 2019, the Zagreb Stock Exchange acquired 148 shares, or 5.3% of the Macedonian Stock Exchange's share capital.

1.7 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).

1.8 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.

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

1.9 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.

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

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

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

The emergence and spread of Covid-19 virus in the Republic of Croatia and the Republic of Slovenia and the measures taken to stop the spread and suppression of the virus will certainly have negative effects on the entire economy. To mitigate these effects, the Governments of both countries have introduced a series of measures to support the economy. The Group companies do not currently qualify for any of these measures.

In view of the development of the situation with the presence of the Covid-19 virus, the Management Boards of both companies have decided that the they will operate out of the office as of March 16, 2020. Both companies' offices are closed until further notice, and business is regularly carried out at secondary locations. The goal of management is to ensure continuous trading of securities throughout the trading day.

With its infrastructure and working procedures, the Group is fully trained and ready to ensure business continuity so that trading can proceed smoothly. Infrastructure and work processes are adapted to work in crisis situations, employees are on standby, and tests related to work in such circumstances have been successfully carried out, ensuring that trading and business are carried out without difficulty even in emergency situations. The Group will continue to closely monitor the development of the situation to ensure the orderly functioning of the market, financial stability and protection of investors.

1.12 Business results for 01/01/2020 – 31/03/2020

In the first quarter of 2020, the Group generated a total of HRK 7,576 thousand of operating income, which is HRK +2,473 thousand or +48.5% more than in the same period of 2019 when operating income amounted to HRK 3,284 thousand. Compared to the first quarter of 2019, sales revenues increased from HRK 3,284 to HRK 5,571 thousand, HRK +2,287 thousand or +69.7%. The significant increase in sales revenue was primarily the result of an increase in commission and membership fees, which, continuing with the increase in securities turnover since the end of February 2020, amounted to HRK 3,272 thousand (HRK +1,789 thousand or +120.6% over to the first quarter of 2019 when they amounted to HRK 1,483 thousand). Listing maintenance fees also increased to HRK 1,831 thousand; an increase of high HRK +353 thousand, or +23,9% compared to the same period last year when they amounted to HRK 1,477 thousand, which is the effect of the increase of listing maintenance fees at the last Exchange Price List change in August 2019. Compared to HRK 221 thousand of income from quotation maintenance generated in the first quarter of 2019, they increased by HRK +156 thousand or +70.9% in the same period this year, amounting to HRK 377 thousand, which can be attributed to a larger number of listed securities. A decrease of HRK -11 thousand or -10.8% compared to the first quarter of last year was recorded in the revenue from assigning and administering LEIs amounting to HRK 91 thousand. Increase in other operating income from HRK 1,819 to HRK 2,004 thousand (HRK

+18 thousand or +10.2%) includes an increase in income from the supply of information that increased from HRK 1,418 thousand to HRK 1,587 thousand (HRK +169 thousand or +11.9%) ), and a slight increase in other income, which increased from HRK 402 thousand in the first quarter of 2019 to HRK 418 thousand in the same period in 2020 (HRK +16 thousand or +4%).

In the first quarter of 2020, the Group's total operating expenses amounted to HRK 5,924 thousand, representing an increase of HRK +378 thousand or +6.8% compared to the same period last year when operating expenses amounted to HRK 5,546 thousand. The only items of operating expenses that recorded a decrease were material costs (HRK -75 thousand or -4.1%, from HRK 1,812 to HRK 1,737 thousand) and other expenses (HRK -69 thousand or -9%, from HRK 776 to HRK 707 thousand). The items of operating expenses that recorded an increase compared to the first quarter of 2019 are depreciation (HRK +26 thousand or +5.6%, from HRK 462 to HRK 488 thousand), value adjustments (HRK +51 thousand, from HRK 2 to HRK 53 thousand), and staff costs (HRK +414 thousand or +16.6%, from HRK 2,492 to HRK 2,906 thousand).

1Q 2019 1Q 2020
Share capital 46.357.000 46.357.000
Capital and reserves 40.539.321 41.858.237
Total assets 48.704.906 51.604.273
Operating income 5.103.214 7.575.948
sales revenue 3.283.921 5.571.470
other operating income 1.819.293 2.004.478
Operating expenses 5.546.057 5.924.267
material costs 1.812.153 1.737.306
staff costs 2.492.523 2.906.105
depreciation and amortization 462.291 488.084
other costs 779.090 792.772
EBIT -442.843 1.651.681
EBITDA 19.448 2.139.765
Financial income 471.178 14.168
Financial expenses 19.180 745.634
Share in profit/loss of associates and subsidiaries -9.451 64.809
Pre-tax profit or loss -296 985.024
Income tax -9.923 104.576
Profit or loss for the period 9.627 880.448
Number of shares 4.635.700 4.635.700
Number of employees 38 39

The Group's key business indicators

The Group's operating profit amounted to HRK 1,652 thousand in the first quarter of 2020, while in the same period last year an operating loss amounted to HRK -443 thousand. In the observed period, financial revenues amounted to HRK 14 thousand or HRK -457 thousand, -97% less than the financial revenues generated in the first quarter of 2019 when they amounted to HRK 471 thousand. Financial expenses amounted to HRK 746 thousand in the first quarter of 2020, an increase of HRK +726 thousand compared to the same period in 2019. High financial expenses are the result of realized losses from investment in investment funds (HRK 213 thousand) and unrealized losses from financial assets (HRK 486 thousand).

Considering all the above, the share in profit of associates and subsidiaries (HRK 65 thousand in the first quarter of 2020) and income tax (HRK 105 thousand in the first quarter of 2020), the Group's net profit for the first quarter of 2020 amounted to HRK 880 thousand, which is an increase of HRK +871 thousand compared to the same period last year when net profit amounted to HRK 9 thousand.

Operating profit before interest, taxes, depreciation and amortization is positive and amounts to HRK 2,140 thousand in the first quarter of 2020, an increase of HRK +2,120 thousand compared to the first quarter of 2019.

2 Declaration of responsibility for the preparation of financial statements

Financial statements of the Group prepared for the period between 01/01/2020 and 31/03/2020 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 01/01/2020 and 31/03/2020 give an objective, complete and true statement of assets and liabilities, financial position and operations of the Group.

The management report for the first quarter of 2020 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 quarter of 2020 have not been audited.

Ivana Gažić Tomislav Gračan President of the Management Board Member of the Management Board

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

Phone number: +385/ 1 468 6806 E-mail: [email protected]

Consolidated unaudited financial statements of the Group for 01/01/2020 – 31/03/2020

Annex 1 ISSUER'S GENERAL DATA
Reporting period: 1.1.2020 31.3.2020
to
Year: 2020
Quarter: 1
Quarterly financial statements Issuer's home
Registration number (MB): 03749606 HR
Member State code:
Entity's registration
number (MBS):
080034217
Personal identification
number (OIB):
84368186611 7478000050A040C0D041
LEI:
Institution
code:
4
Name of the issuer: Zagreb Stock Exchange, Inc
Postcode and town: 10000 Zagreb
Street and house number: Ivana Lučića 2a/22
E-mail address: [email protected]
Web address: www.zse.hr
Number of employees
(end of the reporting
3 9
Consolidated report: (KN-not consolidated/KD-consolidated)
KD
KN KD
Audited: (RN-not audited/RD-audited)
RN
RN RD
Names of subsidiaries (according to IFRS): Registered office: MB:
Ljubljanska borza vrednostnih papirjev d.d. Ljubljana, Slovenija 5316081
Yes
No
Bookkeeping firm: (Yes/No)
Yes
Sigma Tax Consulting d.o.o.
(name of the bookkeeping firm)
Contact person: Martina Butković
(only name and surname of the contact person)
Telephone: 01/4699-555
E-mail address: [email protected]
Audit firm: (name of the audit firm)
BALANCE SHEET
balance as at 31.3.2020
in HRK
Submitter: Zagreb Stock Exchange, Inc
Item
ADP
code
Last day of
the preceding
business
year
At the
reporting
date of the
current
period
1 2 3 4
ASSETS
FIXED ASSETS 002+003+009+012 1 14,982,290 15,373,801
I INTANGIBLE ASSETS
II TANGIBLE ASSETS 004+…+008
2
3
2,950,730 2,988,474
1 Land and buildings 4 9,882,399
7,208,909
10,167,393
7,281,472
2 Computer equipment 5 160,729 574,973
3 Other tangible assets 6 1,115,814 1,105,626
4 Leasehold improvements 7 1,396,947 1,205,322
5 Assets under construction 8 0 0
III FIXED FINANCIAL ASSETS 010+011 9 1,886,546 1,950,607
1 Investments in associates, subsidiaries and joint ventures 10 117,119 181,180
2 Financial assets at amortised cost 11 1,769,427 1,769,427
DEFERRED TAX ASSETS 12 262,615 267,327
B CURRENT ASSETS 014+020+024 13 32,425,983 34,151,654
I RECEIVABLES 015++019
1 Trade receivables
14
15
3,758,157
3,009,814
3,622,567
2,771,624
2 Receivables from employees and members of the undertaking 16 390 891
3 Receivables from government and other institutions 17 169,253 223,486
4 Receivables from connected undertakings 18 0 0
5 Other receivables 19 578,700 626,566
III SHORT-TERM FINANCIAL ASSETS 021+…+023 20 21,074,626 20,565,979
1 Financial assets at amortised cost 21 1,491,567 1,524,966
2 Financial assets at fair value through other comprehensive 22 0 0
3 Financial assets at fair value through statement of profit or 23 19,583,059 19,041,013
III CASH AND CASH EQUIVALENTS 24 7,593,200 9,963,108
C PREPAID EXPENSES AND ACCRUED INCOME 25 1,296,633 2,078,818
D TOTAL ASSETS 001+013+025 26
E OFF-BALANCE SHEET ITEMS 27 48,704,906
0
51,604,273
0
LIABILITIES
A CAPITAL AND RESERVES 029+030+031+036+037+038 28 40,539,321 41,858,237
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 31 681,243 1,119,711
1 Legal reserves 32 141,000 141,000
2 Reserves for treasury shares 33 0 0
3 Fair value reserves
4 Other reserves
34
35
0 0
IV RETAINED PROFIT OR LOSS BROUGHT FORWARD 36 540,243
-21,300,251
978,711
-20,359,103
V PROFIT OR LOSS FOR THE YEAR 37 941,148 880,448
VI MINORITY INTEREST 38 0 0
B PROVISIONS 39 103,028 105,335
C SHORT-TERM LIABILITIES 041+046 40 2,857,784 2,485,593
1 Liabilities for advance payments 41 17,007 2,734
2 Trade payables 42 950,881 709,447
3 Liabilities to employees 43 683,834 662,462
4 Taxes, contributions and similar liabilities 44
45
438,106
0
413,139
0
5 Liabilities to connected undertakings
6 Other short-term liabilities
46
D LONG-TERM LIABILITIES 47 767,956
567,952
697,811
439,653
E DEFERRED TAX LIABILITY 48 188,394 192,612
F ACCRUALS AND DEFERRED INCOME 49 4,448,427 6,522,843
G TOTAL LIABILITIES 028+039+040+047+048+049 50 48,704,906 51,604,273
H OFF-BALANCE SHEET ITEMS 51 0 0
Appendix to the balance sheet (position for consolidated financial statements)
I Capital and reserves 053+054
1 Attributable to owners of the parent
52
53
40,539,321
40,539,321
41,858,237
41,858,237

2 Attributable to non-controlling interest

14

54 0 0

STATEMENT OF PROFIT OR LOSS
For the period 01.01.2020. to 31.3.2020 in HRK
Submitter: Zagreb Stock Exchange, Inc ADP Same period of the previous year Current period
Item code Cumulative Quarter Cumulative Quarter
1 2 3 4 5 6
A OPERATING INCOME 002+009 1 5,103,214 5,103,214 7,575,948 7,575,948
I Sales revenue 003++008 2 3,283,921 3,283,921 5,571,470 5,571,470
1 Commissions and membership fees 3 1,483,006 1,483,006 3,271,951 3,271,951
2 Listing maintenance fees 4 1,477,500 1,477,500 1,830,755 1,830,755
3 Income from quotation maintenance 5 220,804 220,804 377,268 377,268
4 Income from auctions 6 0 0 0 0
5 Income from memberships 7 0 0 0 0
6 Revenue from assigning and administering LEIs 8 102,611 102,611 91,496 91,496
II Other operating income 010++012 9 1,819,293 1,819,293 2,004,478 2,004,478
1 Income from application programming interface (API) services 10 0 0 0 0
2 Income from the supply of information 11 1,417,773 1,417,773 1,586,713 1,586,713
3 Other income 12 401,520 401,520 417,765 417,765
B OPERATING EXPENSES 014+017+021+022+023+026+027 13 5,546,057 5,546,057 5,924,267 5,924,267
I Material costs 015+016 14 1,812,153 1,812,153 1,737,306 1,737,306
1 Costs of raw materials 15 144,073 144,073 153,150 153,150
2 Other external costs 16 1,668,080 1,668,080 1,584,156 1,584,156
II Staff costs 018++020 17 2,492,523 2,492,523 2,906,105 2,906,105
1 Net salaries and wages 18 1,671,664 1,671,664 2,057,089 2,057,089
2 Tax and contributions from salary costs 19 607,744 607,744 636,730 636,730
3 Payroll contributions 20 213,115 213,115 212,286 212,286
III Depreciation 21 462,291 462,291 488,084 488,084
IV Other costs
V Value adjustment 024+025
22
23
776,368
2,470
776,368
2,470
706,878
53,285
706,878
53,285
1 fixed assets (other than financial assets) 24 0 0 0 0
2 current assets (other than financial assets) 25 2,470 2,470 53,285 53,285
VI Provisions 26 0 0 0 0
VII Other operating expenses 27 252 252 32,609 32,609
C FINANCIAL INCOME 029++034 28 471,178 471,178 14,168 14,168
1 Interest, exchange rate differences, dividends and similar 29 14 14 4,446 4,446
2 Interest, exchange rate differences, dividends and similar 30 10,069 10,069 2,341 2,341
3 Income share from associates and participating interests 31 0 0 0 0
4 Unrealised gains (income) from financial assets 32 458,710 458,710 0 0
5 Profit from reversal of provisions for impairment for expected 33 0 0 0 0
6 Other financial income 34 2,385 2,385 7,381 7,381
D FINANCIAL EXPENSES 036++040 35 19,180 19,180 745,634 745,634
1 Interest, exchange rate differences and other expenditures with 36 0 0 2,019 2,019
2 Interest, exchange rate differences and other expenditure from 37 19,180 19,180 44,024 44,024
3 Unrealised losses (expenses) from financial assets 38 0 0 486,205 486,205
4 Loss on impairment for expected credit losses 39 0 0 0 0
5 Other financial expenses 40 0 0 213,386 213,386
E TOTAL INCOME 001+028 41 5,574,392 5,574,392 7,590,116 7,590,116
F TOTAL EXPENDITURE 013+035 42 5,565,237 5,565,237 6,669,901 6,669,901
G Share in profit/loss of associates and subsidiaries 43 -9,451 -9,451 64,809 64,809
H PRE-TAX PROFIT OR LOSS 041-042+043 44 -296 -296 985,024 985,024
I INCOME TAX 45 -9,923 -9,923 104,576 104,576
J PROFIT OR LOSS FOR THE PERIOD 044-045 46 9,627 9,627 880,448 880,448
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
4 Gains/losses on hedging instruments in a cash flow hedge 50 0 0 0 0
5 Gains/losses arising from translation of financial 51 12,102 12,102 438,468 438,468
6 Income tax on other comprehensive income 52 0 0 0 0
K OTHER COMPREHENSIVE INCOME 047+…+052 53 12,102 12,102 438,468 438,468
TOTAL COMPREHENSIVE INCOME 046+053 54 21,729 21,729 1,318,916 1,318,916
M RECLASSIFICATION ADJUSTMENTS 55 0 0 0 0
Appendix **
Attributable to owners of the parent 56 21,729 21,729 1,318,916 1,318,916
Attributable to non-controlling interest 57 0 0 0 0

STATEMENT OF CASH FLOWS - indirect method for the period 01.01.2020. to 31.3.2020

in HRK
Submitter: Zagreb Stock Exchange, Inc
Item ADP
code
Same period of
the previous
Current period
1 2 year
3
4
CASH FLOW FROM OPERATING ACTIVITIES
1 Pre-tax profit 1 -296 985,024
2 Depreciation 2 462,291 488,084
3 Increase in short-term liabilities 3 0 0
4 Decrease in short-term receivables 4 645,994 135,313
5 Decrease in inventories 5 468 273
6 Loss on impairment for expected credit losses 6 0 0
7 Other cash flow increase 7 1,695,799 1,988,167
I Total cash flow increase from operating activities
001++007
8 2,804,256 3,596,861
1 Decrease in short-term liabilities 9 587,991 358,048
2 Increase in short-term receivables 10 0 0
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 13 618,394 0
II Total cash flow decrease from operating activities
009++013 14 1,206,385 358,048
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 0 0
3 Interest received 17 0 0
4 Dividends received 18 0 0
5 Other cash receipts from investment activities 19 0 342,455
III Total cash receipts from investment activities 015++019 20 0 342,455
1 Cash payments for the purchase of fixed tangible and intangible 21 352,816 569,663
2 Cash payments for the acquisition of equity financial 22 0 0
3 Other cash payments from investment activities 23 1,464,157 500,000
IV Total cash payments from investment activities
021++023 24 1,816,973 1,069,663
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 26 0 0
other borrowings
3 Other cash receipts from financing activities 27 0 748
V Total cash receipts from financing activities 025++027 28 0 748
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 14,146
4 Cash payments for the redemption of treasury shares 32 0 0
5 Other cash payments from financing activities 33 0 128,299
VI Total cash payments from operating activities 029++033 34 0 142,445
VII Cash and cash equivalents at the beginning of period 35 2,441,171 7,593,200
VIII Increase of cash and cash equivalents 36 0 2,369,908
IX Decrease of cash and cash equivalents 37 219,102 0
X Cash and cash equivalents at the end of period 38 2,222,069 9,963,108
STATEMENT
CHANGES
EQUITY
OF
IN
for the period from 1.1.2020 to 31.3.2020 in HRK
Attributable to owners of
the parent
Item ADP Subscribed
capital
Capital
reserves
Profit
reserves
Profit
or loss
for
the year
(period)
Retained
profit
or loss
brought
forward
Fair value
reserves
Other
revaluation
reserves
Attributable to non
controlling interests
Total capital
and
reserves
1 2 3 4 5 6 7 8 9 10 11
Balance on the first
day of
the previous
business
year
1 46,357,000 13,860,181 141,000 189,554 -21,639,001 0 594,876 0 39,503,610
Change
in accounting policies
2 0 0 0 0 0 0 0 0 0
Correction
of
errors from
prior periods
3 0 0 0 0 0 0 0 0 0
Balance on the first
day of
the previous
business
year (restated)
4 46,357,000 13,860,181 141,000 189,554 -21,639,001 0 594,876 0 39,503,610
Profit
or loss for
the period
5 0 0 0 941,148 0 0 0 0 941,148
Unrealised gains or losses on financial
assets at
fair
value through other comprehensive income
6 0 0 0 0 0 0 0 0 0
Other
changes in equity unrelated to owners
7 0 0 0 0 0 0 94,563 0 94,563
Total
directly
recognized
income
and
expenses of
the previous
year (previous
year periods)
8 0 0 0 941,148 0 0 94,563 0 1,035,711
Increase/decrease
in subscribed capital
9 0 0 0 0 0 0 0 0 0
Other
contributions by owners
10 0 0 0 0 0 0 0 0 0
Payment of
share in profit/dividend
11 0 0 0 0 0 0 0 0 0
Other
distribution to owners
12 0 0 0 -189,554 338,750 0 -149,196 0 0
Balance on the last day of
the previous
business
year reporting
period
13 46,357,000 13,860,181 141,000 941,148 -21,300,251 0 540,243 0 40,539,321
Balance on the first
day of
the current
business
year
14 46,357,000 13,860,181 141,000 941,148 -21,300,251 0 540,243 0 40,539,321
Change
in accounting policies
15 0 0 0 0 0 0 0 0 0
Correction
of
errors from
prior periods
16 0 0 0 0 0 0 0 0 0
Balance on the first
day of
the current
business
year (restated)
17 46,357,000 13,860,181 141,000 941,148 -21,300,251 0 540,243 0 40,539,321
Profit
or loss for
the period
18 0 0 0 880,448 0 0 0 0 880,448
Unrealised gains or losses on financial
assets at
fair
value through other comprehensive income
19 0 0 0 0 0 0 0 0 0
Other
changes in equity unrelated to owners
20 0 0 0 0 0 0 438,468 0 438,468
Total
directly
recognised
income
and
the current year (current
expenses of
period)
21 0 0 0 880,448 0 0 438,468 0 1,318,916
Increase/decrease
in subscribed capital
22 0 0 0 0 0 0 0 0 0
Other
contributions by owners
23 0 0 0 0 0 0 0 0 0
share in profit/dividend
Payment of
24 0 0 0 0 0 0 0 0 0
Other
distribution to owners
25 0 0 0 -941,148 941,148 0 0 0 0
Balance on the last day of
the current
business
year reporting
period
26 46,357,000 13,860,181 141,000 880,448 -20,359,103 0 978,711 0 41,858,237

17

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: 1.1.2020-31.3.2020

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) 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.

AOP 11 Financial assets at amortized costs

The balance sheet position AOP 11 "2 Financial assets at amortized cost" as of 31 March 2020 in total amount of HRK the amount of HRK 1.769.427 (31 December 2019: HRK 1.769.427) consists of the long term financial assets other than investments in associates, subsidiaries and joint ventures which are reported at position AOP 10. Financial assets at AOP 11 consists of:

1) Given loans and deposits at amortized cost in the amount of HRK 467.161 (31 December 2019: HRK 467.161), and

2) Financial assets at fair value through other comprehensive income in the amount of HRK 1.302.265 (31 December 2019: HRK 1.302.265)

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