Quarterly Report • Oct 19, 2020
Quarterly Report
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Consolidated unaudited financial results for
01/01/2020 – 30/09/2020
19 October 2020
| 1 | INTERIM MANAGEMENT REPORT FOR THE PERIOD BETWEEN 01/01/2020 AND 30/09/2020 1 | ||
|---|---|---|---|
| 1.1 | Significant business events of the Group in the period between 01/01/2020 and 30/09/2020 1 | ||
| 1.2 | Zagreb and Ljubljana Stock Exchange Trading overview 4 | ||
| 1.3 | Expected future development of the Group 8 | ||
| 1.4 | Research & Development activities 8 | ||
| 1.5 | Information on repurchase of own shares 8 | ||
| 1.6 | Zagreb Stock Exchange Group 9 | ||
| 1.7 | Financial instruments used by the Group 9 | ||
| 1.8 | Group's objectives and policies related to financial risk management 9 | ||
| 1.9 | Group's exposure to price risk, credit risk, liquidity risk and cash flow risk 10 | ||
| 1.10 | Statement of transactions and transfers within the Group and between the Group and its shareholders 10 |
||
| 1.11 | Statement of events which might have an adverse effect on Group operations 10 | ||
| 1.12 | Business results for 01/01/2020 – 30/09/2020 11 | ||
| 2 | Declaration of responsibility for the preparation of financial statements 14 | ||
| Consolidated unaudited financial statements of the Group for 01/01/2020 – 30/09/2020 15 |
In the first three quarters of 2020, the Zagreb Stock Exchange Group (hereinafter: the Group) recorded the following significant business events:
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 May 4, 2020, the Zagreb Stock Exchange started operating in two teams in such a way that the first team works in the offices of the Stock Exchange for one week, and the second team works in secondary locations during that time. The Ljubljana Stock Exchange started operating in two teams on May 11, 2020. In accordance with favorable epidemiological conditions, on May 18, 2020, all employees of the Ljubljana Stock Exchange began working in offices, while the operations of the Zagreb Stock Exchange began to take place again at the primary location on June 1, 2020.
On June 10, 2020, the 11th annual training for issuers was held, organized by the Zagreb Stock Exchange, the Croatian Financial Services Supervisory Agency and the Central Depository and Clearing Company, and the educational meeting was held virtually for the first time, with a record 160 representatives.
On July 6, 2020, the General Assembly of the Zagreb Stock Exchange was held at which the Annual Financial Statements and consolidated financial statements of the Exchange for 2019 were presented, decisions were made on the use of profit generated in 2019, on granting discharge to the members of the Management Board and the Supervisory Board for 2019, and on the appointment of the Stock Exchange auditor for 2020.
The largest securities turnover in the first three quarters of 2020 was realized in the period from the end of February to the end of April under the influence of the Covid-19 appearance in the Republic of Croatia. For this reason, in the first quarter, the securities turnover was by far the largest compared to the other two quarters of 2020, i.e. even three times higher turnover compared to the first quarter of last year (visible in the graphic below). Securities turnover has been declining since the beginning of May 2020, so that trading days in the third quarter would end with mostly lower turnover than the 2019 daily average. Therefore, the turnover in the second quarter was slightly higher than in the same period last year, while in the third quarter there was twice as less securities turnover as in the third quarter of 2019. It should be taken into account that in September 2019, the focus of trading was on Kraš shares due to the then takeover process, and then only HRK 40 million lower securities turnover was achieved than in the record March 2020, when turnover was affected by the Covid -19 appearance in the Republic of Croatia.
Looking only at the third quarter of 2020, the total orderbook turnover amounted to HRK 403 million (-54.15% less compared to the third quarter of 2019). Orderbook stock turnover amounted to HRK 365 million or -55.9% less than in the third quarter of the last year. Overall, the orderbook turnover in the first three quarters of 2020 amounted to HRK 2.07 billion or +17.13% more than in the first three quarters of the last year, of which the stock turnover accounted for HRK 1.90 billion, which is +16.77% more than in the first nine months of 2019.
Compared to the last day of the third quarter of 2019, the market value measured by market capitalization on September 30, 2020, is higher by a total of +5 billion HRK or +2.06%, while the equity market capitalization is lower by almost -15 billion or -10.17%. In addition to the already known Covid-19 impact, the reason for the decline in the equity market capitalization is reflected in the fewer number of listed shares (above graph). On 30 September 2020, a total of 18 shares were listed less than on the same day in 2019, 17 shares less on the Regular, and one share less on the Official Market.
| 1-3Q 2019 | 1-3Q 2020 | change | |
|---|---|---|---|
| Securities turnover (HRK) | |||
| Orderbook turnover | 1,763,180,030 | 2,065,253,161 | 17.13% |
| Stocks | 1,624,991,993 | 1,897,517,253 | 16.77% |
| Bonds | 138,188,037 | 167,735,908 | 21.38% |
| Equity Block Turnover | 335,754,754 | 337,298,535 | 0.46% |
| Debt Block Turnover | 0 | 0 | |
| TOTAL | 2,098,934,784 | 2,402,551,696 | 14.47% |
| Equity Market Capitalization (HRK) | |||
| Prime market | 15,061,296,301 | 12,148,433,961 | -19.34% |
| Official market | 57,917,787,394 | 56,564,718,242 | -2.34% |
| Regular market | 72,518,008,548 | 61,993,668,313 | -14.51% |
| TOTAL | 145,497,092,242 | 130,706,820,516 | -10.17% |
| Number of securities listed | |||
| Stocks | 124 | 106 | -14.52% |
| Prime market | 5 | 5 | 0.00% |
| Official market | 24 | 23 | -4.17% |
| Regular market | 95 | 78 | -17.89% |
| Bonds | 25 | 26 | 4.00% |
| TOTAL | 149 | 132 | -11.41% |
With the exception of CROBEXkonstrukt, which increased by a significant +74.8%, and CROBEXindustrija, which increased slightly by +1.43%, all other stock indices ended the third quarter of 2020 with a lower value compared to September 30 last year. The largest decline was recorded by CROBEXnutris (-18.48%), followed by CROBEXturist (-18.21%), CROBEX (-18.08%), CROBEXprime (- 17.30%), CROBEXtr (-17.15%), CROBEX10 (-14.1%), CROBEXplus (-6.54%). The regional index ADRIAprime decreased by -6.33% since September 30 last year. Debt indices also recorded a decline compared to the same period last year: CROBIS (-3.96%), CROBIStr (-1.22%). In May 2020, the Stock Exchange introduced a new stock index, CROBEX10tr, while the calculation of the CROBEXtransport index ceased after October 2019. The above data are visible in the following table.
| Index | 30.9.2019 | 30.9.2020 | Change | Turnover (HRK) 3Q 2019 |
Turnover (HRK) 3Q 2020 |
Change |
|---|---|---|---|---|---|---|
| CROBEX | 1,963,54 | 1,608,54 | -18.08% | 336,955,786 | 301,004,391 | -10.67% |
| CROBEXtr | 1,312,35 | 1,087,33 | -17.15% | 336,955,786 | 301,004,391 | -10.67% |
| CROBEX10 | 1,166,18 | 1,001,75 | -14.10% | 263,657,529 | 222,767,221 | -15.51% |
| CROBEX10tr | \ | 999,19 | \ | \ | 204,534,868 | \ |
| CROBEXprime | 1,137,26 | 940,47 | -17.30% | 132,773,083 | 99,551,345 | -25.02% |
| CROBEXplus | 1,125,42 | 1,051,78 | -6.54% | 678,532,240 | 318,174,774 | -53.11% |
| CROBEXindustrija | 864,50 | 876,88 | 1.43% | 36,988,478 | 60,242,631 | 62.87% |
| CROBEXkonstrukt | 421,84 | 737,36 | 74.80% | 4,935,809 | 41,928,860 | 749.48% |
| CROBEXnutris | 771,06 | 628,54 | -18.48% | 420,989,766 | 52,756,421 | -87.47% |
| CROBEXtransport | 742,91 | \ | \ | 13,852,062 | \ | \ |
| CROBEXturist | 3,577,52 | 2,926,09 | -18.21% | 75,353,774 | 45,897,593 | -39.09% |
| CROBIS | 116,90 | 112,27 | -3.96% | 2,151,050,210 | 1,506,640,908 | -29.96% |
| CROBIStr | 187,86 | 185,57 | -1.22% | 2,151,050,210 | 1,506,640,908 | -29.96% |
| ADRISprime | 1,052,56 | 985,94 | -6.33% | \ | \ | \ |
However, the comparison of the data for the third quarter with the data for the first quarter of the current year shows a stable and positive trend. Namely, after a sharp decline in the indices value since the end of February 2020 due to a significant increase in securities turnover, the values of the indices began to normalize and continue to grow continuously from May. The following table shows how all stock indices rose relative to the closing value on March 31, 2020. The largest increase was recorded by CROBEXkonstrukt (+142.33%), CROBEXindustrija (+41.18%), CROBEXplus (+28.72%), CROBEXturist (+15.18) and CROBEXprime (+12.6%), while other indices increased slightly less than +10%, CROBEXtr (+9.72%), CROBEX10 (+9.21%) and CROBEX (+8.65%). The regional index ADRIAprime increased by +17.82%, and the dept indices by +2.35% (CROBIStr), and +1.04% (CROBIS).
| Index | 31.1.2020 | 30.9.2020 | Change | Turnover (HRK) 1Q 2019 |
Turnover (HRK) 3Q 2019 |
Change |
|---|---|---|---|---|---|---|
| CROBEX | 1,480,51 | 1,608,54 | 8.65% | 833,729,502 | 301,004,391 | -63.90% |
| CROBEXtr | 990,99 | 1,087,33 | 9.72% | 833,729,502 | 301,004,391 | -63.90% |
| CROBEX10 | 917,27 | 1,001,75 | 9.21% | 726,698,762 | 222,767,221 | -69.35% |
| CROBEX10tr | \ | 999,19 | \ | \ | 204,534,868 | \ |
| CROBEXprime | 835,20 | 940,47 | 12.60% | 319,143,034 | 99,551,345 | -68.81% |
| CROBEXplus | 817,11 | 1,051,78 | 28.72% | 806,419,202 | 318,174,774 | -60.54% |
| CROBEXindustrija | 621,12 | 876,88 | 41.18% | 135,462,693 | 60,242,631 | -55.53% |
| CROBEXkonstrukt | 304,28 | 737,36 | 142.33% | 5,455,560 | 41,928,860 | 668.55% |
| CROBEXnutris | 568,63 | 628,54 | 10.54% | 121,086,165 | 52,756,421 | -56.43% |
| CROBEXturist | 2,540,45 | 2,926,09 | 15.18% | 202,364,961 | 45,897,593 | -77.32% |
| CROBIS | 111,11 | 112,27 | 1.04% | 7,889,119,416 | 1,506,640,908 | -80.90% |
| CROBIStr | 181,30 | 185,57 | 2.35% | 7,889,119,416 | 1,506,640,908 | -80.90% |
| ADRISprime | 836,85 | 985,94 | 17.82% | \ | \ | \ |
Total orderbook turnover on the Ljubljana Stock Exchange in the first three quarters of 2020 increased by slightly over +30% 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 300 million in the first nine months of 2020 (+45,6% increase over the same period of 2019 when equity turnover reached just over EUR 205 million), while bond turnover amounted to EUR 1.8 million (a decrease of -92,6% compared to the same period in 2019 when it amounted to almost EUR 25 million).
Compared to June 30, 2019, the Equity Market Capitalization fell by -3.7% and as of June 30, 2020, amounted to EUR 6.5 billion. From the last value on June 30, 2019, the SBI TOP index fell by -3.6%.
| 1-3Q 2019 | 1-3Q 2020 | change | |
|---|---|---|---|
| Total Orderbook Turnover (EUR) | 230,215,441 | 300,633,132 | 30.59% |
| Stocks | 205,252,234 | 298,799,396 | 45.58% |
| Bonds | 24,960,237 | 1,833,736 | -92.65% |
| Commercial Papers | 2,970 | 0 | -100.00% |
| Equity Market Capitalization on 30 September (EUR) | 6,516,525,430 | 6,358,403,209 | -2.43% |
| Index value on 30 September | 855 | 846 | -1.00% |
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).
The Group will continue to edit new websites and develop new and improve existing functionalities to make information even more accessible and understandable to users.
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.
As of September 30, 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 30 September 2020.
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 share of the Zagreb Stock Exchange, Inc. in the share capital as of July 7, 2020 is 30%1 .
On December 18, 2019, the Zagreb Stock Exchange acquired 148 shares, or 5.3% of the Macedonian Stock Exchange's share capital.
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).
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.
1 On July 7, 2020, the Zagreb Stock Exchange signed Share purchase and transfer agreement representing 10% of the share capital of Funderbeam SEE d.o.o. Following the acquisition, the share of the Zagreb Stock Exchange in the total share capital of Funderbeam SEE d.o.o. is 30%.
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.
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.
The Group confirms that in the first three quarters of 2020 there were no transactions within the Group and between the Group and its shareholders in excess of EUR 100,000.
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.
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, additional investments were made to work from home, 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.
In the first three quarters of 2020, the Group generated a total of HRK 19,523 thousand of operating revenues, which is HRK +2,038 thousand or +11.7% more than in the same period last year when operating revenues amounted to HRK 17,485 thousand. Compared to the first three quarters of last year, sales revenues increased from HRK 11,198 to HRK 14,100 thousand, i.e. by a significant HRK +2,902 thousand, with the largest increase within sales revenues recorded by commissions and membership fees, which increased from HRK 5,325 to HRK 6,920 thousand (HRK +1,595 thousand or +30%), which was greatly influenced by the already mentioned increased trading volume from the end of February to the end of April 2020. However, looking at only the third quarter of the current year, commissions and membership fees are lower by HRK -484 thousand or -23.6% compared to last year's third quarter (down from HRK 2,049 to HRK 1,565 thousand), which is a reflection of the decline in securities turnover since mid-2020 and the one-time impact of the turnover increase on the Zagreb Stock Exchange in September 2019 due to trading in the Kraš share. Within sales revenues, revenues from listing maintenance fees also increased (increase from HRK 4,579 to HRK 5,654 thousand, i.e. HRK +1,075 thousand or +23.5%), revenues from quotation maintenance, continuing on a larger number of newly listed securities than in the same period last year, they increased from HRK 993 to HRK 1,249 thousand, or by HRK +256 thousand or +25.8%), while revenue from assigning and administering LEIs fell from HRK 301 to HRK 277 thousand (HRK -24 thousand or -8%). Compared to the first nine months of 2019, in the first three quarters of 2020, other operating revenues fell by a total of HRK -864 thousand (decrease from HRK 6,287 to HRK 5,423 thousand; HRK -864 thousand or -13.7%), within which revenues from the supply of information increased from HRK 4,256 to HRK 4,369 thousand (HRK +112 thousand or +2.6%), and other revenues decreased from HRK 2,030 to HRK 1,054 thousand (HRK -976 thousand or -48.1%) ). A significantly lower amount of other revenues in the first nine months of 2020 compared to the same period last year, mostly due to fewer seminars, which is why last year's higher revenues from seminars were missing (in the first three quarters of 2019 revenues from seminars amounted to about HRK 870 thousand). However, despite the COVID-19 crisis, the Zagreb Stock Exchange organized education through online platforms and in the first nine months of 2020 generated a small but significant income from seminars in the amount of HRK 260 thousand.
The Group's total operating expenses in the first three quarters of 2020 amounted to HRK 17,420 thousand, which is a decrease of HRK -619 thousand or -3.4% compared to the same period last year when operating expenses amounted to HRK 18,039 thousand. This significant decline in operating expenses is directly related to the changed way of working due to the coronavirus pandemic, primarily working from home. The decrease in operating expenses was mostly due to the decrease in material costs (HRK -918 thousand or -16.1%; from HRK 5,704 to HRK 4,786 thousand) and other costs (HRK - 483 thousand or -18.3%, i.e. from HRK 2,636 to HRK 2,153 thousand) for whose decline is most responsible the reduction of costs of translation, legal, notary and consulting services, royalties related to education, representation, business trips and PR. Compared to the same period last year, in the first nine months of 2020, other operating expenses also decreased (HRK -363 thousand or -92.3%; from HRK 393 to HRK 30 thousand), as well as the value adjustment of fixed and current assets (HRK -36 thousand or -21.6%; from HRK 169 to HRK 133 thousand), while staff costs increased by HRK +1,109 thousand or +14.3% (from HRK 7,740 to HRK 8,849 thousand), which is within the planned, and depreciation for HRK +73 thousand or +5.3% (from HRK 1,396 to HRK 1,469 thousand).
| HRK 000 | 1-3Q 2019 | 1-3Q 2020 | change | 3Q 2019 | 3Q 2020 | change |
|---|---|---|---|---|---|---|
| Capital and reserves | 40,262 | 42,669 | 5.98% | 40,262 | 42,669 | 5.98% |
| Total assets | 47,797 | 51,173 | 7.06% | 47,797 | 51,173 | 7.06% |
| Operating income | 17,485 | 19,523 | 11.66% | 6,136 | 5,710 | -6.94% |
| sales revenue | 11,198 | 14,100 | 25.92% | 3,983 | 4,107 | 3.11% |
| other operating income | 6,287 | 5,423 | -13.74% | 2,153 | 1,603 | -25.54% |
| Operating expenses | 18,039 | 17,420 | -3.43% | 5,924 | 5,333 | -9.98% |
| material costs | 5,704 | 4,786 | -16.10% | 1,922 | 1,352 | -29.64% |
| staff costs | 7,740 | 8,849 | 14.33% | 2,485 | 2,775 | 11.64% |
| depreciation and amortization | 1,396 | 1,469 | 5.25% | 468 | 489 | 4.59% |
| other costs | 3,199 | 2,317 | -27.60% | 1,049 | 717 | -31.66% |
| EBIT | -554 | 2,103 | -479.26% | 212 | 377 | 77.85% |
| EBITDA | 841 | 3,571 | 324.56% | 680 | 866 | 27.46% |
| Financial income | 1,411 | 237 | -83.17% | 521 | 121 | -76.83% |
| Financial expenses | 58 | 290 | 400.11% | -2 | -238 | 15697.88% |
| Share in profit/ loss of associates and subsidiaries |
30 | 30 | -0.43% | 37 | -11 | -130.16% |
| Pre-tax profit or loss | 829 | 2,080 | 150.94% | 772 | 725 | -6.05% |
| Income tax | 26 | 209 | 710.86% | 7 | 37 | 447.14% |
| Profit or loss for the period | 803 | 1,871 | 132.97% | 765 | 688 | -10.10% |
| Other comprehensive income | -45 | 259 | 29 | -39 | -234.30% | |
| Total comprehensive income | 758 | 2,130 | 180.92% | 794 | 649 | -18.27% |
The Group's operating profit in the first nine months of 2020 amounts to HRK 2,103 thousand, while in the same period last year the operating loss amounted to HRK -554 thousand. At the level of the third quarter of 2020, the Group generated operating profit in the amount of HRK 377 thousand, while operating profit in the same period last year amounted to HRK 212 thousand. Financial revenues in the first three quarters of 2020 amounted to HRK 237 thousand (a decrease of HRK -1,173 thousand or - 83.2% compared to the same period in 2019), and half of that amount (HRK 121 thousand) was realized only in the third quarter which indicates significantly reduced or even negative returns of bond funds in which the Group invested free funds in the first half of this year. In the middle of this year, the income from the sale of financial assets obtained by the Zagreb Stock Exchange in the process of prebankruptcy settlement of one issuer was realized. In the first nine months of this year, financial expenses amounted to HRK 290 thousand (HRK +232 thousand), while in the third quarter alone unrealized losses on financial assets decreased and financial expenses amounted to HRK 239 thousand (HRK -236 thousand).
Taking into account all the above and income tax in the amount of HRK 209 thousand, the Group's net profit in the first three quarters of 2020 amounted to HRK 1,871 thousand, which is HRK +1,068 thousand (+133%) more than in the same period in 2019. when the Group's net profit amounted to HRK 803 thousand. In the third quarter of 2020, income tax amounted to HRK 37 thousand and the Group's net profit amounted to HRK 688 thousand, which is HRK -77 thousand (-10.1%) less than HRK 765 thousand net profit for the same period last year. Adding other comprehensive income to net profit, in the first three quarters of 2020 the total comprehensive income amounted to HRK 2,130 thousand (an increase of HRK +1,372 thousand or +180.9% compared to HRK 758 thousand in the first nine months of 2019), and in the third quarter of the current year alone it amounted to HRK 649 thousand (a decrease of HRK -145 thousand or -18.3% compared to HRK 794 thousand in the same period last year).
Operating profit before interest, taxes, depreciation, and amortization is positive and for the period for the first nine months of 2020 amounts to HRK 3,571 thousand, or HRK +2,730 thousand more than in the first three quarters of 2019, while in the third quarter of 2020 alone, it amounts to HRK 866 thousand, i.e. HRK +186 thousand more than in the same period last year.
Financial statements of the Group prepared for the period between 01/01/2020 and 30/09/2020 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 30/09/2020 give an objective, complete and true statement of assets and liabilities, financial position and operations of the Group.
The management report for the first three quarters 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 three quarters of 2020 have not been audited.
Contact Zagreb Stock Exchange, Inc. Ivana Lučića 2a/22 10000 Zagreb Croatia
Phone number: +385/ 1 4686 806 E-mail: [email protected]
Consolidated unaudited financial statements of the Group for 01/01/2020 – 30/09/2020
| Annex 1 | ISSUER'S GENERAL DATA | ||||
|---|---|---|---|---|---|
| Reporting period: | 1.1.2020 | to | 30.9.2020 | ||
| Year: | 2020 | ||||
| Quarter: | 3 | ||||
| Quarterly financial statements | |||||
| Registration number (MB): | 03749606 | Member State code: | Issuer's home | 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 | |||
| 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 6 | ||||
| Consolidated report: | KD | (KN-not consolidated/KD-consolidated) | KN | KD | |
| Audited: | RN | (RN-not audited/RD-audited) | 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 | (Yes/No) | 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 as at 30.9.2020
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 | 16.111.458 |
| I INTANGIBLE ASSETS | 2 | 2.950.730 | 2.812.311 |
| II TANGIBLE ASSETS 004+…+008 | 3 | 9.882.399 | 9.612.649 |
| 1 Land and buildings | 4 | 7.208.909 | 7.046.860 |
| 2 Computer equipment | 5 | 160.729 | 640.897 |
| 3 Other tangible assets | 6 | 1.115.814 | 1.045.053 |
| 4 Leasehold improvements | 7 | 1.396.947 | 879.839 |
| 5 Assets under construction | 8 | 0 | 0 |
| III FIXED FINANCIAL ASSETS 010+011 | 9 | 1.886.546 | 3.424.543 |
| 1 Investments in associates, subsidiaries and joint ventures | 10 | 117.119 | 146.278 |
| 2 Financial assets at amortised cost | 11 | 1.769.427 | 3.278.265 |
| DEFERRED TAX ASSETS | 12 | 262.615 | 261.955 |
| B CURRENT ASSETS 014+020+024 | 13 | 32.425.983 | 33.449.811 |
| I RECEIVABLES 015++019 | 14 | 3.758.157 | 2.576.534 |
| 1 Trade receivables | 15 | 3.009.814 | 1.796.435 |
| 2 Receivables from employees and members of the undertaking | 16 | 390 | 123 |
| 3 Receivables from government and other institutions | 17 | 169.253 | 129.407 |
| 4 Receivables from connected undertakings | 18 | 0 | 0 |
| 5 Other receivables | 19 | 578.700 | 650.569 |
| III SHORT-TERM FINANCIAL ASSETS 021+…+023 | 20 | 21.074.626 | 21.542.223 |
| 1 Financial assets at amortised cost | 21 | 1.491.567 | 4.011.936 |
| 0 | |||
| 2 Financial assets at fair value through other comprehensive | 22 | 0 | |
| 3 Financial assets at fair value through statement of profit or | 23 | 19.583.059 | 17.530.287 |
| III CASH AND CASH EQUIVALENTS | 24 | 7.593.200 | 9.331.054 |
| C PREPAID EXPENSES AND ACCRUED INCOME | 25 | 1.296.633 | 1.611.482 |
| D TOTAL ASSETS 001+013+025 | 26 | 48.704.906 | 51.172.751 |
| E OFF-BALANCE SHEET ITEMS | 27 | 0 | 0 |
| LIABILITIES | |||
| A CAPITAL AND RESERVES 029+030+031+036+037+038 | 28 | 40.539.321 | 42.669.306 |
| 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 | 940.130 |
| 1 Legal reserves | 32 | 141.000 | 141.000 |
| 2 Reserves for treasury shares | 33 | 0 | 0 |
| 3 Fair value reserves | 34 | 0 | 0 |
| 4 Other reserves | 35 | 540.243 | 799.130 |
| IV RETAINED PROFIT OR LOSS BROUGHT FORWARD | 36 | -21.300.251 | -20.359.103 |
| V PROFIT OR LOSS FOR THE YEAR | 37 | 941.148 | 1.871.098 |
| VI MINORITY INTEREST | 38 | 0 | 0 |
| B PROVISIONS | 39 | 103.028 | 104.434 |
| C SHORT-TERM LIABILITIES 041+046 | 40 | 2.857.784 | 1.998.544 |
| 1 Liabilities for advance payments | 41 | 17.007 | 46.322 |
| 2 Trade payables | 42 | 950.881 | 357.005 |
| 3 Liabilities to employees | 43 | 683.834 | 658.683 |
| 4 Taxes, contributions and similar liabilities | 44 | 438.106 | 469.030 |
| 5 Liabilities to connected undertakings | 45 | 0 | 0 |
| 6 Other short-term liabilities | 46 | 767.956 | 467.504 |
| D LONG-TERM LIABILITIES | 47 | 567.952 | 314.645 |
| E DEFERRED TAX LIABILITY | 48 | 188.394 | 190.966 |
| F ACCRUALS AND DEFERRED INCOME G TOTAL LIABILITIES 028+039+040+047+048+049 |
49 50 |
4.448.427 48.704.906 |
5.894.856 51.172.751 |
| H OFF-BALANCE SHEET ITEMS | 51 | 0 | 0 |
| Appendix to the balance sheet (position for consolidated financial statements) | |||
| I Capital and reserves 053+054 | 52 | 40.539.321 | 42.669.306 |
2 Attributable to non-controlling interest
17
54 0 0
| For the period 01.01.2020. to 30.9.2020 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 | 5 | 6 | ||
| A OPERATING INCOME 002+009 | 1 | 17.484.603 | 6.136.048 | 19.522.659 | 5.710.102 | ||
| I Sales revenue 003++008 | 2 | 11.197.717 | 3.982.704 | 14.099.868 | 4.106.718 | ||
| 1 Commissions and membership fees | 3 | 5.324.840 | 2.049.179 | 6.920.012 | 1.565.006 | ||
| 2 Listing maintenance fees | 4 | 4.578.755 | 1.548.768 | 5.653.583 | 1.990.205 | ||
| 3 Income from quotation maintenance | 5 | 992.670 | 287.968 | 1.248.845 | 458.968 | ||
| 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 | 301.452 | 96.789 | 277.428 | 92.539 | ||
| II Other operating income 010++012 | 9 | 6.286.886 | 2.153.344 | 5.422.791 | 1.603.384 | ||
| 1 Income from application programming interface (API) services 2 Income from the supply of information |
10 11 |
0 4.256.810 |
0 1.495.518 |
0 4.368.749 |
0 1.361.948 |
||
| 3 Other income | 12 | 2.030.076 | 657.826 | 1.054.042 | 241.436 | ||
| B OPERATING EXPENSES 014+017+021+022+023+026+027 | 13 | 18.038.985 | 5.923.833 | 17.420.133 | 5.332.679 | ||
| I Material costs 015+016 | 14 | 5.704.029 | 1.921.550 | 4.785.556 | 1.351.966 | ||
| 1 Costs of raw materials | 15 | 428.035 | 144.560 | 479.060 | 142.259 | ||
| 2 Other external costs | 16 | 5.275.994 | 1.776.990 | 4.306.496 | 1.209.707 | ||
| II Staff costs 018++020 | 17 | 7.739.973 | 2.485.393 | 8.849.143 | 2.774.577 | ||
| 1 Net salaries and wages | 18 | 5.072.743 | 1.667.576 | 6.097.460 | 1.919.230 | ||
| 2 Tax and contributions from salary costs | 19 | 1.988.991 | 607.291 | 2.068.680 | 640.985 | ||
| 3 Payroll contributions | 20 | 678.239 | 210.526 | 683.003 | 214.362 | ||
| III Depreciation | 21 | 1.395.597 | 467.570 | 1.468.929 | 489.028 | ||
| IV Other costs | 22 | 2.636.438 | 708.284 | 2.153.236 | 735.500 | ||
| V Value adjustment 024+025 | 23 | 169.350 | 9.014 | 132.777 | -19.204 | ||
| 1 fixed assets (other than financial assets) | 24 | 0 | 0 | 0 | 0 | ||
| 2 current assets (other than financial assets) | 25 | 169.350 | 9.014 | 132.777 | -19.204 | ||
| VI Provisions | 26 | 0 | 0 | 0 | 0 | ||
| VII Other operating expenses | 27 | 393.598 | 332.022 | 30.492 | 812 | ||
| C FINANCIAL INCOME 029++034 | 28 | 1.410.949 | 520.996 | 237.440 | 120.713 | ||
| 1 Interest, exchange rate differences, dividends and similar | 29 | 137 | 105 | 701 | 91 | ||
| 2 Interest, exchange rate differences, dividends and similar | 30 | 160.542 | 116.918 | 107.243 | 90.842 | ||
| 3 Income share from associates and participating interests | 31 | 0 | 0 | 0 | 0 | ||
| 4 Unrealised gains (income) from financial assets | 32 | 1.247.823 | 403.973 | 21.829 | 21.829 | ||
| 5 Profit from reversal of provisions for impairment for expected | 33 | 0 | 0 | 0 | 0 | ||
| 6 Other financial income | 34 | 2.447 | 0 | 107.667 | 7.951 | ||
| D FINANCIAL EXPENSES 036++040 | 35 | 58.002 | -1.507 | 290.076 | -238.074 | ||
| 1 Interest, exchange rate differences and other expenditures with | 36 | 1.180 | -19.051 | 5.553 | 1.438 | ||
| 2 Interest, exchange rate differences and other expenditure from | 37 | 56.822 | 17.544 | 52.378 | 9.327 | ||
| 3 Unrealised losses (expenses) from financial assets | 38 | 0 | 0 | 0 | -267.670 | ||
| 4 Loss on impairment for expected credit losses | 39 | 0 | 0 | 0 | 0 | ||
| 5 Other financial expenses | 40 | 0 | 0 | 232.145 | 18.831 | ||
| E TOTAL INCOME 001+028 | 41 | 18.895.552 | 6.657.044 | 19.760.099 | 5.830.815 | ||
| F TOTAL EXPENDITURE 013+035 | 42 | 18.096.987 | 5.922.326 | 17.710.209 | 5.094.605 | ||
| G Share in profit/loss of associates and subsidiaries H PRE-TAX PROFIT OR LOSS 041-042+043 |
43 44 |
30.362 828.927 |
37.037 771.755 |
30.232 2.080.122 |
-11.170 725.040 |
||
| I INCOME TAX | 45 | 25.778 | 6.835 | 209.024 | 37.397 | ||
| J PROFIT OR LOSS FOR THE PERIOD 044-045 | 46 | 803.149 | 764.920 | 1.871.098 | 687.643 | ||
| 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 | -44.944 | 28.922 | 258.887 | -38.843 | ||
| 6 Income tax on other comprehensive income | 52 | 0 | 0 | 0 | 0 | ||
| K OTHER COMPREHENSIVE INCOME 047+…+052 | 53 | -44.944 | 28.922 | 258.887 | -38.843 | ||
| TOTAL COMPREHENSIVE INCOME 046+053 | 54 | 758.205 | 793.842 | 2.129.985 | 648.800 | ||
| M RECLASSIFICATION ADJUSTMENTS Appendix ** |
55 | 0 | 0 | 0 | 0 | ||
| Attributable to owners of the parent | 56 | 758.205 | 793.842 | 2.129.985 | 648.800 | ||
| Attributable to non-controlling interest | 57 | 0 | 0 | 0 | 0 |
18
for the period 01.01.2020. to 30.9.2020
| 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 | 828.927 | 2.080.122 |
| 2 Depreciation | 2 | 1.395.605 | 1.468.929 |
| 3 Increase in short-term liabilities | 3 | 0 | 0 |
| 4 Decrease in short-term receivables | 4 | 155.928 | 1.319.580 |
| 5 Decrease in inventories | 5 | 3.472 | 273 |
| 6 Loss on impairment for expected credit losses | 6 | 0 | 0 |
| 7 Other cash flow increase | 7 | 0 | 1.046.344 |
| I Total cash flow increase from operating activities 001++007 |
8 | 2.383.932 | 5.915.248 |
| 1 Decrease in short-term liabilities | 9 | 779.873 | 824.907 |
| 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 | 1.293.914 | 0 |
| II Total cash flow decrease from operating activities 009++013 |
14 | 2.073.787 | 824.907 |
| CASH FLOW FROM INVESTMENT ACTIVITIES | 15 | 0 | 0 |
| 1 Cash receipts from sale of fixed tangible and intangible assets | 16 | 0 | 0 |
| 2 Cash receipts the from sale of equity instruments and debt 3 Interest received |
17 | 0 | 0 |
| 4 Dividends received | 18 | 0 | 0 |
| 5 Other cash receipts from investment activities | 19 | 4.393.883 | 2.342.454 |
| III Total cash receipts from investment activities 015++019 | 20 | 4.393.883 | 2.342.454 |
| 1 Cash payments for the purchase of fixed tangible and intangible | 21 | 435.484 | 899.536 |
| 2 Cash payments for the acquisition of equity financial | 22 | 0 | 0 |
| 3 Other cash payments from investment activities | 23 | 1.000.000 | 3.000.000 |
| IV Total cash payments from investment activities 021++023 |
24 | 1.435.484 | 3.899.536 |
| 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 | 44.731 | 34.333 |
| 4 Cash payments for the redemption of treasury shares | 32 | 0 | 0 |
| 5 Other cash payments from financing activities | 33 | 563.924 | 1.761.072 |
| VI Total cash payments from operating activities 029++033 | 34 | 608.655 | 1.795.405 |
| VII Cash and cash equivalents at the beginning of period | 35 36 |
2.441.174 0 |
7.593.200 1.737.854 |
| VIII Increase of cash and cash equivalents IX Decrease of cash and cash equivalents |
37 | -2.659.889 | 0 |
| X Cash and cash equivalents at the end of period | 38 | 5.101.063 | 9.331.054 |
| STATEMENT CHANGES OF IN EQUITY |
||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| for the period from | 1.1.2020 | to | 30.9.2020 | 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 |
| first of previous Balance on the day the 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 previous year (previous the 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 |
| profit/dividend Payment of share in |
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 for or loss the period |
18 | 0 | 0 | 0 | 1.871.098 | 0 | 0 | 0 | 0 | 1.871.098 |
| 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 | 258.887 | 0 | 258.887 |
| Total directly recognised income and |
||||||||||
| expenses of the current year (current period) |
21 | 0 | 0 | 0 | 1.871.098 | 0 | 0 | 258.887 | 0 | 2.129.985 |
| 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 |
| Payment of share in profit/dividend |
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 20 |
| of Balance on the last day the current business year reporting period |
26 | 46.357.000 | 13.860.181 | 141.000 | 1.871.098 | -20.359.103 | 0 | 799.130 | 0 | 42.669.306 |
Name of the issuer: Zagreb Stock Exchange, Inc
Personal identification number (OIB): 84368186611
Reporting period: 1.1.2020 - 30.9.2020
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
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.
The balance sheet position AOP 11 "2 Financial assets at amortized cost", as of 30 September 2020 in total amount of HRK the amount of HRK 3.281.191 (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 1.978.926 (31 December 2019: HRK 467.161), and
2) Financial assets at fair value through other comprehensive income in the amount of HRK 1.769.427 (31 December 2019: HRK 1.302.265)
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