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Zagrebačka burza d.d.
Quarterly Report • Jul 26, 2021
2105_10-q_2021-07-26_b41b74c8-aa8a-4f03-a18a-2b0867c97f71.pdf
Quarterly Report
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Zagreb Stock Exchange Group
Consolidated unaudited financial results for
01/01/2021 – 30/06/2021
26 July 2021
CONTENTS
| 1 | INTERIM MANAGEMENT REPORT FOR THE PERIOD BETWEEN 01/01/2021 AND 30/06/2021 1 | |
|---|---|---|
| 1.1 | Significant business events of the Group in the period between 01/01/2021 and 30/06/2021 1 | |
| 1.2 | Zagreb and Ljubljana Stock Exchange overview 3 | |
| 1.3 | Expected future development of the Group 6 | |
| 1.4 | Research & Development activities 7 | |
| 1.5 | Information on repurchase of own shares 7 | |
| 1.6 | Zagreb Stock Exchange Group 7 | |
| 1.7 | Financial instruments used by the Group 8 | |
| 1.8 | Group's objectives and policies related to financial risk management 8 | |
| 1.9 | Group's exposure to price risk, credit risk, liquidity risk and cash flow risk 8 | |
| 1.10 | Statement of transactions and transfers within the Group and between the Group and its shareholders 9 |
|
| 1.11 | Statement of events which might have an adverse effect on Group operations 9 | |
| 1.12 | Business results for 01/01/2021 – 30/06/2021 9 | |
| 2 | DECLARATION OF RESPONSIBILITY FOR THE PREPARATION OF FINANCIAL STATEMENTS 13 | |
| Consolidated unaudited financial statements of the Group for 01/01/2021 – 30/06/2021 14 |
1 INTERIM MANAGEMENT REPORT FOR THE PERIOD BETWEEN 01/01/2021 AND 30/06/2021
1.1 Significant business events of the Group in the period between 01/01/2021 and 30/06/2021
In the first half of 2021, the Zagreb Stock Exchange Group (hereinafter: the Group) recorded the following significant business events:
- On March 2, 2021, the Zagreb Stock Exchange launched a new project on its YouTube channel called "ZSE Stock Talk" conceived as a new communication channel to the general population on economic and financial topics. The first series of videos had the theme of macroeconomic forecasts for 2021.
- On March 8, 2021, in cooperation with the Croatian Employers' Association, the Zagreb Stock Exchange organized the event "Ring for Gender Equality" to mark International Women's Day by opening a trade in symbolic bells to emphasize the need to include more women in the world of work and their advancement in the business world.
- On March 16, 2021, the Zagreb Stock Exchange received from the Securities Commission of the Republic of Northern Macedonia (Komisijata za hartii od vrednost na Republika Severna Makedonija) a decision approving the transfer above the threshold of 10% ownership stake in Makedonska berza AD Skopje, i.e., for the acquisition of shares of the Macedonian Stock Exchange whose total cumulative amount does not exceed 20% of the total issued voting shares.
- On March 24, 2021, the Zagreb Stock Exchange joined the United Nations Sustainable Stock Exchanges (SSE) initiative to promote sustainability and transparency in capital markets. The Zagreb Stock Exchange will engage in peer-to-peer dialogue to explore how exchanges can work together with investors, regulators, and companies, to encourage sustainable investment, while also enhancing corporate transparency and performance in respect to environmental, social and corporate governance issues, in line with the SEE initiative goals.
- On March 24, 2021, the Ljubljana Stock Exchange held a webcast entitled "Slovenian Listed Companies Online".
- In the period from March 22 to 28, 2021, the Ljubljana Stock Exchange held an event called "Open Days to the Financial World" as part of the World Money Week, where trainings on the capital market and financial literacy were held for pupils and students.
- On April 8, 2021, the first ETFs of the issuer Expat Bulgaria SOFIX UCITS ETF were listed on the Ljubljana Stock Exchange.
- On April 15, 2021, the Ljubljana Stock Exchange held a webcast entitled " Overview of Events on the Stock Exchange in Q1".
- In the period from 27 to 28 May 2021, the Croatian and Slovenian Investor Days CEE Investment Opportunities were held. For the first time, Slovenian and Croatian companies were joined by companies listed on the Macedonian Stock Exchange. The event was conducted through the GoToWebinar platform, and was attended by about thirty panelists and 120 participants, and in addition to presentations by publishers, presentations of the Croatian, Slovenian and Macedonian capital markets were held.
- On June 11, 2021, the 12th annual education for issuers was held, co-organized by HANFA, the CDCC and the Zagreb Stock Exchange. The education gathered more than a hundred representatives of companies listed on the Zagreb Stock Exchange.
- On June 28, 2021, a new version of the Xetra T7 9.1 trading system was released into production.
1.2 Zagreb and Ljubljana Stock Exchange overview
In the first half of 2021, the orderbook turnover amounted to HRK 929 million, which is significantly less (-44%) than in the first half of last year, which was marked by increased securities turnover from the end of February until the beginning of May under the influence of the Covid-19 outbreak in the Republic of Croatia. Of this amount of turnover in the first six months of 2021, HRK 805 million relates to shares, HRK 93 million to bonds, while ETFs, which began trading in mid-November last year, in the first half of 2021 generated a turnover of just over HRK 31 million. In the same period, the equity block turnover amounted to almost HRK 292 million (H1 2020: HRK 305 million), while the debt block turnover was absent. If we compare the second with the first quarter of the current year, the orderbook turnover increased by slightly more than HRK +19 million or +4%, while the equity block turnover increased by a significant HRK +132 million or +166%.
Securities turnover
Compared to June 30, 2020, the market value measured by market capitalization as of June 30, 2021, is higher by almost HRK +15 billion or +6%, while the equity market capitalization alone is lower by HRK -1.6 billion or -1.2%. These data point to a constant market recovery since May last year when the initial market shock caused by the emergence of the Covid-19 virus, which contributed to a large drop in market capitalization in the first quarter of 2020, began to weaken.
As of 30 June 2021, a total of eight fewer shares were listed on the Regular Market compared to the same day in 2020, while one share from the Official Market moved to a higher quotation, the Prime Market.
| 1H 2020 | 1H 2021 | change | ||||||
|---|---|---|---|---|---|---|---|---|
| Securities turnover (HRK) | ||||||||
| Orderbook turnover | 1.662.698.798 | 928.501.991 | -44,16% | |||||
| Stocks | 1.532.526.868 | 804.521.266 | -47,50% | |||||
| Bonds | 130.171.930 | 92.556.627 | -28,90% | |||||
| ETFs | 0 | 31.424.099 | ||||||
| Equity Block Turnover | 304.975.792 | 291.699.952 | -4,35% | |||||
| Debt Block Turnover | 0 | 0 | ||||||
| TOTAL | 1.967.674.590 | 1.220.201.943 | -37,99% | |||||
| Market Capitalization (HRK) | ||||||||
| Stocks | 132.403.762.303 | 130.834.615.709 | -1,19% | |||||
| Prime market | 12.267.273.260 | 30.729.538.906 | 150,50% | |||||
| Official market | 56.245.716.664 | 46.823.250.251 | -16,75% | |||||
| Regular market | 63.890.772.379 | 53.281.826.552 | -16,60% | |||||
| Bonds | 115.792.368.276 | 132.711.816.473 | 14,61% | |||||
| ETFs | 0 | 52.209.004 | ||||||
| TOTAL | 248.196.130.579 | 263.598.641.185 | 6,21% | |||||
| Number of securities listed | ||||||||
| Stocks | 108 | 100 | -7,41% | |||||
| Prime market | 5 | 6 | 20,00% | |||||
| Official market | 23 | 22 | -4,35% | |||||
| Regular market | 80 | 72 | -10,00% | |||||
| Bonds | 27 | 28 | 3,70% | |||||
| ETFs | 0 | 2 | ||||||
| TOTAL | 135 | 130 | -3,70% |
Zagreb Stock Exchange overview
A comparison of the data for the first half of 2021 with the data for the same period last year shows a stable and positive trend among the indices as well. After a sharp decline in the index's values since the end of February 2020, the index's values began to normalize and continued to grow continuously from May last year. With the exception of CROBEXkonstrukt, which weakened -3.82%, equity indices generally rose in double digits compared to the closing value on June 30, 2020: the highest CROBEXindustrija (+44.74%) while other indices rose by more than +20%. The ADRIAprime regional index increased by +33.6%, and the bond indices by +3% (CROBIStr) and +0.5% (CROBIS).
| Index | 30.6.2020 | 30.6.2021 | Change | Turnover (HRK) 1H 2020 |
Turnover (HRK) 1H 2021 |
Change |
|---|---|---|---|---|---|---|
| CROBEX | 1.621,55 | 1.980,49 | 22,14% | 1.247.181.626 | 1.885.108.067 | 51,15% |
| CROBEXtr | 1.090,39 | 1.356,68 | 24,42% | 1.247.181.626 | 1.885.108.067 | 51,15% |
| CROBEX10 | 1.012,72 | 1.218,32 | 20,30% | 1.076.935.496 | 1.579.203.982 | 46,64% |
| CROBEX10tr | \ | 1.234,04 | \ | \ | 484.036.133 | \ |
| CROBEXprime | 944,77 | 1.170,27 | 23,87% | 516.852.949 | 771.279.606 | 49,23% |
| CROBEXplus | 961,80 | 1.172,54 | 21,91% | 1.246.227.548 | 1.866.174.136 | 49,75% |
| CROBEXindustrija | 738,03 | 1.068,21 | 44,74% | 198.958.873 | 324.532.518 | 63,12% |
| CROBEXkonstrukt | 491,68 | 472,89 | -3,82% | 33.248.445 | 96.873.815 | 191,36% |
| CROBEXnutris | 598,00 | 723,87 | 21,05% | 174.886.501 | 286.638.338 | 63,90% |
| CROBEXtransport | \ | 850,25 | \ | \ | 53.838.861 | \ |
| CROBEXturist | 2.924,62 | 3.624,25 | 23,92% | 330.520.043 | 434.896.393 | 31,58% |
| CROBIS | 111,22 | 111,78 | 0,50% | 22.580.124.877 | 25.040.891.148 | 10,90% |
| CROBIStr | 182,72 | 188,20 | 3,00% | 22.580.124.877 | 25.040.891.148 | 10,90% |
| ADRISprime | 960,48 | 1.283,20 | 33,60% | \ | \ | \ |
Indices – value and turnover (1H 2020 vs. 1H 2021)
The total securities turnover on the Ljubljana Stock Exchange in the first half of 2021 decreased by - 9.7% compared to the same period last year. This is understandable because, as in Croatia, the securities turnover in the first half of 2020 was influenced by the Covid-19 outbreak in Slovenia. However, this decline is not as pronounced as on the Zagreb Stock Exchange because the turnover on the Ljubljana Stock Exchange has remained above average since May 2020, when the turnover on the Zagreb Stock Exchange decreased and returned closer to the usual amounts. The orderbook equity turnover in the first half of 2021 reached EUR 174 million (a decrease of -24% compared to the same period last year when it amounted to almost EUR 229 million), while the debt turnover amounted to only EUR 38 thousand, which is a decrease of -98% compared to the first six months of 2020 when the debt turnover amounted to EUR 1,823 thousand. In the first six months of this year, the equity block turnover amounted to almost EUR 45 million, while the debt block turnover was absent, as on the Zagreb Stock Exchange.
Ljubljana Stock Exchange Turnover
Compared to June 30, 2020, the equity market capitalization increased by almost +30% and on the last day of the first half of 2021 amounted to EUR 8.5 billion. Since the last value on June 30, 2020, the SBITOP index has increased by +32%, and with the listing of the first ETFs on the Ljubljana Stock Exchange in April 2021 started the calculation of the SBITR index, which ended the half-year at 1,268.
| 1H 2020 | 1H 2021 | change | |
|---|---|---|---|
| Total Turnover (EUR) | 242.481.986 | 218.960.812 | -9,70% |
| Stocks | 229.510.878 | 174.104.799 | -24,14% |
| Bonds | 1.823.474 | 37.673 | -97,93% |
| Equity block | 11.147.634 | 44.818.339 | 302,04% |
| Debt block | 0 | 0 | |
| Equity Market Capitalization on 30 June (EUR) | 6.525.290.749 | 8.464.381.741 | 29,72% |
| SBITOP on 30 June | 850 | 1.125 | 32,33% |
| SBITR on 30 June | \ | 1.268 |
Ljubljana Stock Exchange overview
1.3 Expected future development of the Group
In 2021, 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 continue internally to develop IT services that will be used by the Zagreb and Ljubljana Stock Exchanges, and thus further reduce the need for external suppliers.
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).
1.4 Research & Development activities
The Group invests constant efforts into developing and improving its own service offering and at expanding 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.
During 2020, the Zagreb Stock Exchange also developed and launched a completely new website of the Zagreb and Ljubljana Stock Exchanges.
1.5 Information on repurchase of own shares
As of June 30, 2021, the companies in the Group held no own shares.
The companies in the Group did not acquire own shares between 1 January 2021 and 30 June 2021.
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 share of the Zagreb Stock Exchange, Inc. in the share capital is 30%.
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 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 and Ljubljana Stock Exchange, invests free funds in open-end money market and bond investment funds, as well as bank deposits. Their investments are carried at fair value. Zagreb 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 2021 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
In 2021, uncertainty continued over the prevention measures taken to halt the spread and suppression of the COVID-19 pandemic. It is not possible to estimate the future duration of the pandemic, but the Group is actively monitoring the situation and will take all necessary measures to minimize potential negative impacts in the event of a worsening situation. With its infrastructure and working procedures, the Group is fully trained and ready to ensure business continuity so that trading can run smoothly. Infrastructure and work processes are adapted to work in crisis situations, employees are on standby, and tests related to working in such circumstances have been successfully conducted, thus ensuring continuous trading in securities throughout the trading day, without difficulties even in emergencies.
The long-term effect can also affect the company's operations in terms of difficult operations of our clients - issuers, as well as reducing the volume of trade due to possible uncertainties of investors related to the impact of the crisis on the Croatian and Slovenian economy. Despite the aforementioned, at the date of issue of these financial statements, the Group continues to settle due to liabilities and, consequently, prepares financial statements under the assumption of indefinite operation.
Apart from the above, no other business events or transactions have occurred after the balance sheet date that would have a material impact on the financial statements on or for the period then ended or are of such significance to the Group's operations as to require disclosure in management.
1.12 Business results for 01/01/2021 – 30/06/2021
In the first half of 2021, the Group generated a total of HRK 12,645 thousand of operating revenues, which is HRK -1,168 thousand or -8.45% less than in the same period last year when they amounted to HRK 13,813 thousand. Compared to the first half of 2020, sales revenues fell from HRK 9,808 to HRK 8,792 thousand, i.e., by HRK -1,016 thousand or -10.36%. The significant decline in sales revenue is primarily the result of a decrease in trading commissions and membership fees, which, following the reduction in turnover compared to the significantly increased turnover in securities from the end of February to mid-April 2020, reached HRK 4,025 thousand in the first half of this year (HRK -1,330 thousand or -24.84% less compared to the first half of 2020 when they amounted to HRK 5,355 thousand). Although three bonds and one share were listed on the Zagreb Stock Exchange in the first half of 2021, i.e., two shares less than in the first half of 2020, revenues from listing fees at the Group level increased by HRK +144 thousand or +18.27% due to exceptional dynamism in terms of new listings on the Ljubljana Stock Exchange. Namely, in the first half of 2021, one new share, two bonds, nine treasury bills, two commercial papers, and for the first time five ETFs were listed (in the first half of 2020, four bonds and one treasury bill were listed). Within sales revenue, listing maintenance fees also increased by HRK +170 thousand or +4.64% compared to the same period last year (increase from HRK 3,663 to HRK 3,833 thousand). Compared to the first half of 2020, other operating income fell by HRK -151 thousand or -3.78%, i.e., from HRK 4,004 to HRK 3,853 thousand. This decrease in other operating income is due to a decrease in other income (including income from education and income from the issuance and maintenance of LEI) which fell by HRK -168 thousand or -16.87% and amounted to HRK 829 thousand, while income from the supply of information increased from HRK 3,007 to HRK 3,024 thousand (HRK +17 thousand or +0.56%).
Looking only at the second quarter of 2021, the Group's total operating revenues amounted to HRK 6,378 thousand, which is HRK +140 thousand (+2.24%) more than in the second quarter of last year when operating revenues amounted to HRK 6,238 thousand. Sales revenues increased from HRK 4,315 thousand in the second quarter of 2020 to HRK 4,365 thousand in the same period of the current year. This increase is due to the increase in income from quotation maintenance from HRK 351 to HRK 420 thousand (HRK +69 thousand or +19.78%) for the reason already mentioned and the increase in listing maintenance fees from HRK 1,881 to HRK 1,917 thousand (HRK + 36 thousand or +1.9%). Although the Zagreb Stock Exchange recorded an increase in securities turnover in the second quarter of 2021 compared to the same period last year, the Ljubljana Stock Exchange generated slightly less turnover in the observed period than in the exceptionally good second quarter of 2020. For this reason, commissions and membership fees at the Group level fell from HRK 2,083 thousand in the second quarter of 2020 to HRK 2,027 thousand in the same period this year (HRK -56 thousand or -2.66%). The increase in operating revenues was also contributed by the increase in other operating revenues from HRK 1,923 to HRK 2,013 thousand (HRK +90 thousand or +4.68%). Within other operating revenues, compared to the second quarter of 2020, income from the supply of information increased from HRK 1,420 to HRK 1,575 thousand (HRK +155 thousand or +10.9%), while other income decreased from HRK 503 to HRK 438 thousand. (HRK -65 thousand or -12.88%).
At the beginning of the coronavirus pandemic, i.e., in the first quarter of 2020, the Group began to record a decline in operating expenses primarily due to a changed working mode (working from home, the lack of business trips, live events, etc.). In the first half of 2021, the Group's total operating expenses amounted to HRK 12,031 thousand which is HRK -56 thousand or -0.46% less than in the same period last year. Items of operating expenses that decreased in the first half of 2021 compared to the same period last year are value adjustments of fixed and current assets amounting to HRK 42 thousand (HRK -110 thousand or -72.45%), staff costs amounting to HRK 6,043 thousand (HRK -31 thousand or -0.52%), other operating expenses amounting to HRK 5 thousand (HRK -24 thousand or - 82.82%) and material costs amounting to HRK 3,421 thousand (HRK -13 thousand or -0, 37%), while only other costs amounting to HRK 1,533 thousand (HRK +116 thousand or +8.17%) and depreciation amounting to HRK 987 thousand (HRK +7 thousand or +0.7%) increased.
In the second quarter of 2021 alone, the Group's total operating expenses amounted to HRK 6,391 thousand, which is an increase of HRK +241 thousand (+3.91%) compared to the second quarter of last year when operating expenses amounted to HRK 6,150 thousand. As at the half-year level, the value adjustment of fixed and current assets amounts to HRK 42 thousand (a decrease of HRK -57 thousand or -57.57%). Other items of operating expenses are higher in the second quarter of 2021 than the amount in the same period last year: other operating expenses amounting to HRK 3 thousand (HRK +6 thousand), depreciation amounting to HRK 502 thousand (2Q 2020: HRK 492 thousand; HRK +10 thousand or +2.12%), staff costs amounting to HRK 3,220 thousand (2Q 2020: HRK 3,168 thousand; HRK +52 thousand or +1.64%), material costs amounting to HRK 1,741 HRK thousand (2Q 2020: HRK 1,683 thousand; HRK +58 thousand or +3.45%) and other costs amounting to HRK 882 thousand (2Q 2020: HRK 711 thousand; HRK +171 thousand or + 24.08%).
| HRK | 1H 2020 | 1H 2021 | change | 2Q 2020 | 2Q 2021 | change |
|---|---|---|---|---|---|---|
| Capital and reserves | 42.020.506 | 43.261.202 | 2,95% | 42.020.506 | 43.261.202 | 2,95% |
| Total assets | 51.007.140 | 54.771.777 | 7,38% | 51.007.140 | 54.771.777 | 7,38% |
| Operating income | 13.812.557 | 12.644.942 | -8,45% | 6.238.561 | 6.378.239 | 2,24% |
| sales revenue | 9.808.261 | 8.792.006 | -10,36% | 4.315.124 | 4.364.881 | 1,15% |
| other operating income | 4.004.296 | 3.852.936 | -3,78% | 1.923.437 | 2.013.358 | 4,68% |
| Operating expenses | 12.087.454 | 12.031.388 | -0,46% | 6.150.175 | 6.390.951 | 3,91% |
| material costs | 3.433.590 | 3.420.936 | -0,37% | 1.683.272 | 1.741.410 | 3,45% |
| staff costs | 6.074.566 | 6.043.185 | -0,52% | 3.168.461 | 3.220.430 | 1,64% |
| depreciation and amortization | 979.901 | 986.782 | 0,70% | 491.817 | 502.228 | 2,12% |
| other costs | 1.599.397 | 1.580.485 | -1,18% | 806.625 | 926.883 | 14,91% |
| EBIT | 1.725.103 | 613.554 | -64,43% | 88.386 | -12.712 | -114,38% |
| EBITDA | 2.705.004 | 1.600.336 | -40,84% | 580.203 | 489.516 | -15,63% |
| Financial income | 116.727 | 41.846 | -64,15% | 102.559 | -28.288 | -127,58% |
| Financial expenses | 528.150 | 298.915 | -43,40% | -202.519 | 65.123 | -132,16% |
| Share in profit/ loss of associates and subsidiaries |
41.402 | 20.309 | -50,95% | -23.407 | -52.202 | 123,02% |
| Pre-tax profit or loss | 1.355.082 | 376.794 | -72,19% | 370.057 | -158.325 | -142,78% |
| Income tax | 171.627 | 53.064 | -69,08% | 67.051 | 6.839 | -89,80% |
| Profit or loss for the period | 1.183.455 | 323.730 | -72,65% | 303.006 | -165.164 | -154,51% |
| Other comprehensive income | 297.730 | 6.793 | -97,72% | -140.738 | 6.793 | -104,83% |
| Total comprehensive income | 1.481.185 | 330.523 | -77,69% | 162.268 | -158.371 | -197,60% |
| Number of employees | 38 | 37 | -2,63% | 38 | 37 | -2,63% |
The Group's key business indicators
The Group's operating profit in the first half of 2021 amounted to HRK 614 thousand, while in the same period last year it amounted to HRK 1,725 thousand. At the second-quarter level, the Group reported an operating loss in the amount of HRK -13 thousand, while the operating profit in the same period last year amounted to HRK 88 thousand. Financial income decreased at half-year level as well as at the second-quarter level compared to the same periods last year. In the first half of this year, financial revenues amounted to HRK 103 thousand (HRK -75 thousand or -64.15%), while financial revenues in the second quarter amounted to HRK -28 thousand (HRK -131 thousand or -127.58%). In the first half of this year, financial expenses amounted to HRK 299 thousand (HRK -229 thousand or -43.4%), while in the second quarter alone they were higher by HRK +268 thousand and amounted to HRK 65 thousand (in the second quarter of 2020, financial expenses due to the reduction of unrealized losses on financial assets were in the positive amount of HRK 203 thousand).
If we add up the positive operating profit, negative net financial result, share in the profit/loss of the associates and subsidiaries in the amount of HRK 20 thousand and income tax in the amount of HRK 53 thousand, the Group's net profit for the first six months of 2021 amounts to HRK 324 thousand, which is HRK -860 thousand (-72.65%) less than in the same period of 2020, when the Group's net profit amounted to HRK 1,183 thousand. Adding other comprehensive income in the amount of HRK 7 thousand to the net profit, in the first half of 2021 the Group's total comprehensive income amounts to HRK 330 thousand (a decrease of HRK -1,151 thousand or -77.69% compared to HRK 1,481 thousand in the first half of 2020). The share in the profit/loss of the associates and subsidiaries in the second quarter of 2021 amounts to HRK -52 thousand, and the profit tax amounts to HRK 7 thousand, therefore the Group in the second quarter of 2021 records a loss in the amount of HRK -165 thousand and a total comprehensive loss in the amount of HRK -158 thousand.
Operating profit before interest, taxes, depreciation and amortization is positive and in the first half of 2021 amounts to HRK 1,600 thousand, i.e., HRK -1,105 thousand less than in the first half of 2020, while in the second quarter of 2021 it amounts to HRK 489 thousand, i.e., HRK -91 thousand less than in the same period last year.
2 DECLARATION OF RESPONSIBILITY FOR THE PREPARATION OF FINANCIAL STATEMENTS
Financial statements of the Group prepared for the period between 01/01/2021 and 30/06/2021 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 01/01/2021 and 30/06/2021 give an objective, complete and true statement of assets and liabilities, financial position and operations of the Group.
The management report for the first half of 2021 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 half of 2021 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 01/01/2021 – 30/06/2021
| ISSUER'S GENERAL DATA | ||||||
|---|---|---|---|---|---|---|
| Reporting period: | 1.1.2021 | to | 30.6.2021 | |||
| Year: | 2021 | |||||
| Quarter: | 2 | |||||
| Quarterly financial statements | ||||||
| Registration number (MB): | 03749606 | Issuer's home Member State code: |
HR | |||
| Entity's registration number (MBS): |
080034217 | |||||
| Personal identification number (OIB): |
84368186611 | LEI: | 7478000050A040C0D041 | |||
| Institution code: |
4 | |||||
| Name of the issuer: Zagreb Stock Exchange, Inc | ||||||
| Postcode and town: | 10000 | Zagreb | ||||
| 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 7 | |||||
| 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: |
| BALANCE SHEET | |||
|---|---|---|---|
| balance as at 30.6.2021 | |||
| 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 | 15.619.546 | 18.416.745 |
| I INTANGIBLE ASSETS | 2 | 2.788.458 | 2.879.439 |
| II TANGIBLE ASSETS 004+…+008 | 3 | 9.253.415 | 11.957.945 |
| 1 Land and buildings | 4 | 7.411.114 674.695 |
9.913.483 674.737 |
| 2 Computer equipment 3 Other tangible assets |
5 6 |
1.004.436 | 944.976 |
| 4 Leasehold improvements | 7 | 163.170 | 424.749 |
| 5 Assets under construction | 8 | 0 | 0 |
| III FIXED FINANCIAL ASSETS 010+011 | 9 | 3.391.957 | 3.403.504 |
| 1 Investments in associates, subsidiaries and joint ventures | 10 | 115.150 | 135.829 |
| 2 Financial assets at amortised cost | 11 | 3.276.807 | 3.267.675 |
| DEFERRED TAX ASSETS | 12 | 185.716 | 175.857 |
| B CURRENT ASSETS 014+020+024 | 13 | 34.808.639 | 34.230.737 |
| I RECEIVABLES 015++019 | 14 | 3.700.106 | 3.439.215 |
| 1 Trade receivables | 15 | 3.026.665 | 2.407.511 |
| 2 Receivables from employees and members of the undertaking | 16 | 622 | 1.730 |
| 3 Receivables from government and other institutions | 17 | 112.673 | 254.868 |
| 4 Receivables from connected undertakings | 18 | 0 | 0 |
| 5 Other receivables | 19 | 560.146 | 775.106 |
| III SHORT-TERM FINANCIAL ASSETS 021+…+023 | 20 | 21.784.766 | 19.085.105 |
| 1 Financial assets at amortised cost | 21 | 4.010.501 | 3.252.093 |
| 2 Financial assets at fair value through other comprehensive | 22 | 0 | 0 |
| 3 Financial assets at fair value through statement of profit or | 23 | 17.774.265 | 15.833.012 |
| III CASH AND CASH EQUIVALENTS | 24 | 9.323.767 | 11.706.417 |
| C PREPAID EXPENSES AND ACCRUED INCOME | 25 | 665.873 | 2.124.295 |
| D TOTAL ASSETS 001+013+025 | 26 | 51.094.058 | 54.771.777 |
| E OFF-BALANCE SHEET ITEMS | 27 | 0 | 0 |
| LIABILITIES | |||
| A CAPITAL AND RESERVES 029+030+031+036+037+038 I INITIAL CAPITAL |
28 29 |
42.930.679 46.357.000 |
43.261.202 46.357.000 |
| II CAPITAL RESERVES | 30 | 13.860.181 | 13.860.181 |
| III PROFIT RESERVES 032++035 | 31 | 920.350 | 927.143 |
| 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 | 779.350 | 786.143 |
| IV RETAINED PROFIT OR LOSS BROUGHT FORWARD | 36 | -20.359.103 | -18.206.852 |
| V PROFIT OR LOSS FOR THE YEAR | 37 | 2.152.251 | 323.730 |
| VI MINORITY INTEREST | 38 | 0 | 0 |
| B PROVISIONS | 39 | 118.209 | 167.152 |
| C SHORT-TERM LIABILITIES 041+046 | 40 | 2.985.598 | 3.866.566 |
| 1 Liabilities for advance payments | 41 | 266.720 | 133.794 |
| 2 Trade payables | 1.437.656 | ||
| 42 | 886.130 | ||
| 3 Liabilities to employees | 43 | 726.747 | 702.159 |
| 4 Taxes, contributions and similar liabilities | 44 | 429.996 | 551.251 |
| 5 Liabilities to connected undertakings | 45 | 5.276 | 0 |
| 6 Other short-term liabilities | 46 | 670.729 | 1.041.706 |
| D LONG-TERM LIABILITIES | 47 | 247.431 | 2.788.338 |
| E DEFERRED TAX LIABILITY | 48 | 189.395 | 188.247 |
| F ACCRUALS AND DEFERRED INCOME G TOTAL LIABILITIES 028+039+040+047+048+049 |
49 50 |
4.622.746 51.094.058 |
4.500.272 54.771.777 |
| 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 |
42.930.679 42.930.679 |
43.261.202 43.261.202 |
16
| in HRK Submitter: Zagreb Stock Exchange, Inc |
||||||
|---|---|---|---|---|---|---|
| Item | ADP | Same period of the previous year | Current period | |||
| code | Cumulative | Quarter | Cumulative | Quarter | ||
| 1 | 2 | 3 | 4 | 5 | 6 | |
| A OPERATING INCOME 002+009 | 1 | 13.812.557 | 6.238.561 | 12.644.942 | 6.378.239 | |
| I Sales revenue 003++008 | 2 | 9.808.261 | 4.315.124 | 8.792.006 | 4.364.881 | |
| 1 Commissions and membership fees | 3 | 5.355.006 | 2.082.980 | 4.024.605 | 2.027.482 | |
| 2 Listing maintenance fees | 4 5 |
3.663.378 789.877 |
1.881.233 350.911 |
3.833.189 934.212 |
1.917.064 420.335 |
|
| 3 Income from quotation maintenance 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 | 0 | 0 | 0 | 0 | |
| II Other operating income 010++012 | 9 | 4.004.296 | 1.923.437 | 3.852.936 | 2.013.358 | |
| 1 Income from application programming interface (API) services | 10 | 0 | 0 | 0 | 0 | |
| 2 Income from the supply of information | 11 | 3.006.801 | 1.420.088 | 3.023.717 | 1.574.855 | |
| 3 Other income | 12 | 997.495 | 503.349 | 829.219 | 438.503 | |
| B OPERATING EXPENSES 014+017+021+022+023+026+027 | 13 | 12.087.454 | 6.150.175 | 12.031.388 | 6.390.951 | |
| I Material costs 015+016 | 14 | 3.433.590 | 1.683.272 | 3.420.936 | 1.741.410 | |
| 1 Costs of raw materials | 15 | 336.801 | 183.651 | 264.502 | 127.218 | |
| 2 Other external costs | 16 | 3.096.789 | 1.499.621 | 3.156.434 | 1.614.192 | |
| II Staff costs 018++020 | 17 | 6.074.566 | 3.168.461 | 6.043.185 | 3.220.430 | |
| 1 Net salaries and wages | 18 | 4.178.230 | 2.121.141 | 4.103.235 | 2.089.966 | |
| 2 Tax and contributions from salary costs | 19 | 1.427.695 | 790.965 | 1.461.872 | 858.749 | |
| 3 Payroll contributions | 20 | 468.641 | 256.355 | 478.078 | 271.715 | |
| III Depreciation | 21 | 979.901 | 491.817 | 986.782 | 502.228 | |
| IV Other costs | 22 | 1.417.736 | 710.858 | 1.533.520 | 882.014 | |
| V Value adjustment 024+025 | 23 | 151.981 | 98.696 | 41.873 | 41.873 | |
| 1 fixed assets (other than financial assets) | 24 | 0 | 0 | 0 | 0 | |
| 2 current assets (other than financial assets) | 25 | 151.981 | 98.696 | 41.873 | 41.873 | |
| VI Provisions | 26 | 0 | 0 | 0 | 0 | |
| VII Other operating expenses | 27 | 29.680 | -2.929 | 5.092 | 2.996 | |
| C FINANCIAL INCOME 029++034 | 28 | 116.727 | 102.559 | 41.846 | -28.288 | |
| 1 Interest, exchange rate differences, dividends and similar | 29 | 610 | 38 | 0 | 0 | |
| 2 Interest, exchange rate differences, dividends and similar | 30 | 16.401 | 10.186 | 10.953 | -56.834 | |
| 3 Income share from associates and participating interests | 31 | 0 | 0 | 0 | 0 | |
| 4 Unrealised gains (income) from financial assets | 32 | 0 | 0 | 25.609 | 25.609 | |
| 5 Profit from reversal of provisions for impairment for expected | 33 | 0 | 0 | 0 | 0 | |
| 6 Other financial income | 34 | 99.716 | 92.335 | 5.284 | 2.937 | |
| D FINANCIAL EXPENSES 036++040 | 35 | 528.150 | -202.519 | 298.915 | 65.123 | |
| 1 Interest, exchange rate differences and other expenditures with | 36 | 4.115 | 2.096 | 2.450 | 402 | |
| 2 Interest, exchange rate differences and other expenditure from | 37 | 43.051 | 13.992 | 22.800 | 22.800 | |
| 3 Unrealised losses (expenses) from financial assets | 38 | 267.670 | -218.535 | 273.665 | 41.921 | |
| 4 Loss on impairment for expected credit losses | 39 | 0 | 0 | 0 | 0 | |
| 5 Other financial expenses | 40 | 213.314 | -72 | 0 | 0 | |
| E TOTAL INCOME 001+028 | 41 | 13.929.284 | 6.341.120 | 12.686.788 | 6.349.951 | |
| F TOTAL EXPENDITURE 013+035 | 42 | 12.615.604 | 5.947.656 | 12.330.303 | 6.456.074 | |
| G Share in profit/loss of associates and subsidiaries | 43 | 41.402 | -23.407 | 20.309 | -52.202 | |
| H PRE-TAX PROFIT OR LOSS 041-042+043 I INCOME TAX |
44 45 |
1.355.082 | 370.057 | 376.794 | -158.325 | |
| J PROFIT OR LOSS FOR THE PERIOD 044-045 | 46 | 171.627 1.183.455 |
67.051 303.006 |
53.064 323.730 |
6.839 -165.164 |
|
| 47 | 0 | 0 | 0 | 0 | ||
| 1 Change in revaluation reserves (property, plant, | 48 | 0 | 0 | 0 | 0 | |
| 2 Actuarial gains/losses on defined benefit pension plans 3 Unrealised gains/losses on financial assets at fair value |
49 | 0 | 0 | 0 | 0 | |
| through other comprehensive income | ||||||
| 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 | 297.730 | -140.738 | 6.793 | 6.793 | |
| 6 Income tax on other comprehensive income | 52 | 0 | 0 | 0 | 0 | |
| K OTHER COMPREHENSIVE INCOME 047+…+052 | 53 | 297.730 | -140.738 | 6.793 | 6.793 | |
| TOTAL COMPREHENSIVE INCOME 046+053 | 54 | 1.481.185 | 162.268 | 330.523 | -158.371 | |
| M RECLASSIFICATION ADJUSTMENTS | 55 | 0 | 0 | 0 | 0 | |
| Appendix ** | ||||||
| Attributable to owners of the parent | 56 | 1.481.185 | 162.268 | 330.523 | -158.371 | |
| Attributable to non-controlling interest | 57 | 0 | 0 | 0 | 0 17 |
STATEMENT OF PROFIT OR LOSS
For the period 01.01.2021. to 30.6.2021
| Submitter: Zagreb Stock Exchange, Inc Same period of ADP Item the previous Current period code year 1 2 3 4 CASH FLOW FROM OPERATING ACTIVITIES 1 Pre-tax profit 1 1.355.082 376.794 2 Depreciation 2 979.901 986.782 3 Increase in short-term liabilities 3 0 509.990 4 Decrease in short-term receivables 4 1.093.996 459.083 5 Decrease in inventories 5 273 312 6 Loss on impairment for expected credit losses 6 0 0 7 Other cash flow increase 0 20.320 7 I Total cash flow increase from operating activities 8 3.429.252 2.353.281 001++007 1 Decrease in short-term liabilities 9 119.354 0 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 13 229.559 1.834.664 II Total cash flow decrease from operating activities 14 348.913 1.834.664 009++013 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 43.716 4 Dividends received 18 0 957.313 5 Other cash receipts from investment activities 19 342.455 1.707.982 III Total cash receipts from investment activities 015++019 20 342.455 2.709.011 1 Cash payments for the purchase of fixed tangible and intangible 21 635.776 458.548 2 Cash payments for the acquisition of equity financial 22 0 0 3 Other cash payments from investment activities 23 500.000 0 IV Total cash payments from investment activities 24 1.135.776 458.548 021++023 CASH FLOW FROM FINANCING ACTIVITIES 1 Cash receipts from the issue of equity financial instruments and 25 0 0 debt financial instruments 2 Cash receipts from credit principals, debentures, loans and 26 0 0 other borrowings 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 29.284 0 4 Cash payments for the redemption of treasury shares 32 0 0 5 Other cash payments from financing activities 33 1.774.262 386.430 VI Total cash payments from operating activities 029++033 34 1.803.546 386.430 VII Cash and cash equivalents at the beginning of period 35 7.593.200 9.323.767 VIII Increase of cash and cash equivalents 2.382.650 36 483.472 IX Decrease of cash and cash equivalents 37 0 0 X Cash and cash equivalents at the end of period 38 8.076.672 11.706.417 |
for the period 01.01.2021. to 30.6.2021 in HRK |
|||||
|---|---|---|---|---|---|---|
STATEMENT OF CASH FLOWS - indirect method
18
| STATEMENT OF CHANGES IN EQUITY |
||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| for the period from | 1.1.2021 | to | 30.6.2021 | 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 | 941.148 | -21.300.251 | 0 | 540.243 | 0 | 40.539.321 |
| 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 | 941.148 | -21.300.251 | 0 | 540.243 | 0 | 40.539.321 |
| Profit or loss for the period |
5 | 0 | 0 | 0 | 2.152.251 | 0 | 0 | 0 | 0 | 2.152.251 |
| 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 | 239.107 | 0 | 239.107 |
| Total directly recognized income and expenses of the previous year (previous year periods) |
8 | 0 | 0 | 0 | 2.152.251 | 0 | 0 | 239.107 | 0 | 2.391.358 |
| 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 | -941.148 | 941.148 | 0 | 0 | 0 | 0 |
| of previous Balance on the last day the business year reporting period |
13 | 46.357.000 | 13.860.181 | 141.000 | 2.152.251 | -20.359.103 | 0 | 779.350 | 0 | 42.930.679 |
| Balance on the first day of the current business year |
14 | 46.357.000 | 13.860.181 | 141.000 | 2.152.251 | -20.359.103 | 0 | 779.350 | 0 | 42.930.679 |
| 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 | 2.152.251 | -20.359.103 | 0 | 779.350 | 0 | 42.930.679 |
| Profit or loss for the period |
18 | 0 | 0 | 0 | 323.730 | 0 | 0 | 0 | 0 | 323.730 |
| 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 | 6.793 | 0 | 6.793 |
| Total directly recognised income and expenses of the current year (current period) |
21 | 0 | 0 | 0 | 323.730 | 0 | 0 | 6.793 | 0 | 330.523 |
| 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 | -2.152.251 | 2.152.251 | 0 | 0 | 0 | 19 0 |
| Balance on the last day of the current business year reporting period |
26 | 46.357.000 | 13.860.181 | 141.000 | 323.730 | -18.206.852 | 0 | 786.143 | 0 | 43.261.202 |
NOTES TO THE ANNUAL FINANCIAL STATEMENTS – TFI (drawn up for quarterly reporting periods) Name of issuer: Zagrebačka burza d.d. Personal identification number (OIB): 84368186611
Reporting period: 1.1.2021-30.6.2021 Sort of report: Consolidated
1. Reporting entity
Zagrebačka burza d.d. ("the Company") is a company domiciled in Republic of Croatia and was registered at the Commercial Court in Zagreb on 5 July 1991 under the number (MBS) 0800034217. The personal identification number of the Company (OIB) is 84368186611.The address of the Company's registered office is Eurotower, 22nd floor, Ivana Lučića 2a/22, Zagreb, Croatia.
2. Basis of preparation and significant accounting policies
Basis for preparation
Consolidated financial statements are prepared on a historical cost basis, except for financial assets at fair value through profit or loss, financial assets at fair value through other comprehensive income which are measured at fair value and buildings and lend that are measured at fer value.
Detailed information on the basis of preparation of the financial statements are provided in the Note to the consolidated financial statements No. 2 presented in the Annual Report on Group Status and Business Activities in 2020 available on the internet page www.zse.hr (further: Annual Report for the Group).
Significant accounting policies
The interim financial statements for the second quarter of 2021 are prepared applying the same accounting policies as in the latest annual financial statements presented in the Annual Report on Group Status and Business Activities in 2020 available on the internet page www.zse.hr (further: Annual Report for the Group).
Disclosure of information required by IFRSs that is not presented elsewhere in the statement of financial position, statement of comprehensive income, statement of cash flows and statement of changes in equity
Information required by IFRSs that is not presented elsewhere in the statement of financial position, statement of comprehensive income, statement of cash flows and statement of changes in equity are disclosed in Consolidated unaudited financial result for period 1.1. to 30.6.2021 (further: Consolidated result for the second quarter) as published on the internet page www.zse.hr.
3. Financial commitments, guarantees or contingencies that are not included in the balance sheet, and an indication of the nature and form of any valuable security which has been provided
The Group does not have financial commitments, guarantees or contingencies that are not included in the consolidated balance sheet as at 30 June 2021 nor has issued securities.
4. Amount and nature of individual items of income or expenditure which are of exceptional size or incidence
Details on the income or expenditure which are of exceptional size or incidence are presented in the Notes to the consolidated financial statements in Note 1.12 presented in the Consolidated result for the second quarter (www.zse.hr).
Besides the above-mentioned notes, we are describing the differences in classification between incomes and expenditures as presented in the audited consolidated financial statements and Notes to the consolidated financial statements and incomes and expenditures presented in this TFI form:
- (a) income from assigning and administering LEIs is, in accordance with the Group's accounting policies reported in other income (AOP 12) in the amount of HRK 180 thousand
- (b) other differences between the information presented in the financial statements in TFI form compare to the classification of the information in the audited consolidated financial statements for 2020 are presented in the Attachment to these notes.
5. Liabilities falling due after more than five years, as well as the debts covered by valuable security
At the balance sheet date, the Group does not have liabilities falling due after more than five years.
At the balance sheet date, the Group does not have debts covered by valuable securities.
6. Average number of employees during the financial year
The average amount of employees during second quarter of the financial year is 37.
7. Capitalized costs of the salaries during the financial year
The Group did not capitalized the salaries in the financial year.
8. Deferred taxes
The provision for deferred taxes, amount of the deferred taxes at the beginning and at the end of the reported period and movement through the reported period are as follows:
| 1.1.2021 | Increase | Decrease | 30.6.2021 | |
|---|---|---|---|---|
| HRK'000 | HRK'000 | HRK'000 | HRK'000 | |
| Deferred tax assets | 186 | - | 10 | 176 |
| Deferred tax liabilities | (189) | 1 | (188) | |
|---|---|---|---|---|
| (3) | 1 | 10 | (12) |
9. Name and registered office of each of the companies in which the issuer, either itself or through a person acting in their own name but on the issuer's behalf, holds a participating interest
The investments joint ventures and holdings of a participating interest are presented in the Notes 13 and 14 to the consolidated financial statements presented in the Annual Report on the Group. During the reporting period there were no significant changes in comparison to the information presented in the Annual Group report.
10. Number and the nominal value shares subscribed during the financial year within the limits of the authorised capital
There were no shares subscribed during the financial year within the limits of the authorised capital.
11. Existence of any participation certificates, convertible debentures, warrants, options or similar securities or rights
The Group has no participation certificates, convertible debentures, warrants, options or similar securities or rights.
12. Name, registered office and legal form of each of the companies of which the issuer is a member having unlimited liability
The Group has no shares in companies having unlimited liability.
13. Name and registered office of the company which draws up the consolidated financial statements of the largest group of companies of which the issuer forms part as a controlled group member
The Company is the final parent company and is not controlled member of any group.
The Company prepares consolidated financial statements for each quarter that are available for use on the internet page www.zse.hr.
14. Name and registered office of the company which draws up the consolidated financial statements of the smallest group of companies of which the issuer forms part as a controlled group member and which is also included in the group of companies referred to in point 13.
The Company is the final parent company and is not controlled member of any group.
15. Place where copies of the consolidated financial statements referred to in points 13 and 14 may be obtained, provided that they are available
The Company prepares consolidated financial statements for each quarter that are available for use on the internet page www.zse.hr.
16. Nature and business purpose of the company's arrangements that are not included in the balance sheet and the financial impact on the company of those arrangements
The Group has no arrangement that are not included in the presented consolidated financial statements.
17. Nature and the financial effect of material events arising after the balance sheet date which are not reflected in the profit and loss account or balance sheet
Material events arising after the balance sheet date are presented in the Note 1.11 to the consolidated financial statements as part of the Consolidated result for the second quarter of 2021 as published on the internet page www.zse.hr.
Attachment: Reconciliation of the classification of the items of the financial statements in TFI form in comparison to the classification used in preparation of the audited financial statements for the year 2020.
| P&L item (IFRS) | Amount HRK'000 |
P&L item (GFI) | Amount HRK'000 |
|---|---|---|---|
| Staff costs | 6.464 | Staff costs | 6.043 |
| Reclassification from other costs | 421 | ||
| Othe operating costs | 4.580 | Costs of raw materials | 265 |
| Other external costs | 3.156 | ||
| Value adjustment | 42 | ||
| Other costs | 1.533 | ||
| Other operating expenses | 5 | ||
| Reclassification to staff costs | -421 | ||
| Balance sheet item (IFRS) | Amount HRK'000 |
Balance sheet item (GFI) | Amount HRK'000 |
| Property and equipment | 8.479 | Land and buildings | 9.913 |
| Assets with right of use | 3.479 | Computer equipment | 675 |
| Other tangible assets | 945 | ||
| Assets under construction | 425 | ||
| Financial assets at fair value through other comprehensive | Financial assets at amortised cost (long | ||
| income | 1.302 | term) | 3.268 |
| Long term deposits | 1.749 | ||
| Loans receivable from associate | 217 | ||
| Trade receivables and other assets | 3.435 | Receivables (short term) | 3.439 |
| Inventories | 6 | Rounding | 2 |
| Trade and other payables | 3.197 | Liabilities for advance payments | 134 |
| Short term financial assets | 673 | Trade payables | 1.438 |
| Liabilities to employees | 702 | ||
| Taxes, contributions and similar liabilities | 551 | ||
| Liabilities to connected undertakings | - | ||
| Other short-term liabilities | 1.042 | ||
| Rounding | 3 | ||
| Contractual liabilities | 4.499 | Accruals and deferred income | 4.500 |
| Rounding | -1 |