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Zagrebačka burza d.d.
Quarterly Report • Jul 29, 2022
2105_10-q_2022-07-29_a4b2538a-a31c-4761-bced-bf9a67294b0a.pdf
Quarterly Report
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Zagreb Stock Exchange Group
Consolidated unaudited financial results for
1/1/2022 – 30/6/2022
29 July 2022
CONTENTS
| 1 | INTERIM MANAGEMENT REPORT FOR THE PERIOD BETWEEN 1/1/2022 AND 30/6/2022 1 | |
|---|---|---|
| 1.1 | Significant business events of the Group in the period between 1/1/2022 and 30/6/2022 1 | |
| 1.2 | Zagreb and Ljubljana Stock Exchange overview 3 | |
| 1.3 | Expected future development of the Group 10 | |
| 1.4 | Research & Development activities 10 | |
| 1.5 | Information on repurchase of own shares 10 | |
| 1.6 | Zagreb Stock Exchange Group 11 | |
| 1.7 | Financial instruments used by the Group 11 | |
| 1.8 | Group's objectives and policies related to financial risk management 11 | |
| 1.9 | Group's exposure to price risk, credit risk, liquidity risk and cash flow risk 12 | |
| 1.10 | Statement of transactions and transfers within the Group and between the Group and its shareholders 12 |
|
| 1.11 | Statement of events which might have an adverse effect on Group operations 12 | |
| 1.12 | Business results for 1/1/2022 – 30/6/2022 13 | |
| 2 | DECLARATION OF RESPONSIBILITY FOR THE PREPARATION OF FINANCIAL STATEMENTS 16 | |
| Consolidated unaudited financial statements of the Group for 1/1/2022 – 30/6/2022 17 |
1 INTERIM MANAGEMENT REPORT FOR THE PERIOD BETWEEN 1/1/2022 AND 30/6/2022
1.1 Significant business events of the Group in the period between 1/1/2022 and 30/6/2022
In the first quarter of 2022, the Zagreb Stock Exchange Group (hereinafter: the Group) recorded the following significant business events:
- On March 8, 2022, the Stock Exchange marked International Women's Day by opening a trade with a symbolic bell ringing to highlight the need to involve more women in the world of work and their advancement in the business world.
- On March 11, 2022, the Ljubljana Stock Exchange marked International Women's Day by opening a trade with a symbolic sound of bells to emphasize the need to include more women in the world of work and their advancement in the business world.
- On March 23, 2022, the Ljubljana Stock Exchange held a webcast entitled "Slovenian listed companies online".
- On March 24, 2022, as part of the World Money Week, the Ljubljana Stock Exchange held a webinar entitled "Let's go to the stock exchange" intended for pupils and students.
- On May 26 and 27, 2022, the investment conference of the Zagreb and Ljubljana stock exchanges "CEE Investment Opportunities" was held. The event was organized for the first time in 2014. The aim of the event is to facilitate the access of regional and international investors to Slovenian and Croatian companies, thereby strengthening their visibility and supporting liquidity. For the second year in a row, Slovenian and Croatian companies were joined by companies listed on the Macedonian Stock Exchange. The event was held via the Zoom webinar platform, and was attended by about 200 analysts and investors from the region, as well as from Austria, the Czech Republic, Estonia, Germany, Poland, Spain, Turkey, Great Britain, the United States of America and Japan.
- On May 31, 2022, to bring the Slovenian capital market closer to the general public, the Ljubljana Stock Exchange organized an event called "Trade on the Stock Exchange", which was visited by more than 550 people.
- On June 8, 2022, the Annual Education for issuers was held in the co-organization of the Croatian Financial Services Supervisory Agency, the Central Depository & Clearing Company and the Zagreb Stock Exchange, which has been held since 2011. The training brought together more than a hundred representatives of companies listed on the Zagreb Stock Exchange and was held online.
- On June 14, the Zagreb Stock Exchange's General Assembly was held where, among others, a decision was made to regularly reduce the share capital by merging shares according to the ratio 2:1, by issuing to each shareholder one new ordinary registered share with a nominal
value of HRK 10 for two shares outstanding. The basic capital of the Zagreb Stock Exchange was thus reduced from HRK 46,357,000 by HRK 23,178,500 to HRK 23,178,5001 .
- On June 15, 2022, a presentation was held at the Zagreb Stock Exchange for investors of the Funderbeam SEE campaign of the company FRIENDLY FIRE.
- On June 24, 2022, the Zagreb Stock Exchange acquired an additional 199 shares of the Macedonian Stock Exchange and increased its share in that stock exchange to 17.05%.
- On June 27, 2022, the new version of the Xetra T7 10.1 trading system was put into production on the Zagreb and Ljubljana Stock Exchanges. The migration was carried out without difficulty.
1 More in the Notes to the financial statements in item 10.
1.2 Zagreb and Ljubljana Stock Exchange overview
In the second quarter of 2022, the total turnover amounted to HRK 499 million, which is -27% less than in the same period of 2021, while the total turnover since the beginning of the year, i.e., in the first half of 2022, amounts to HRK 1,507 million (+32% compared to the first half of 2021).
| HRK | 2Q 2021 | 2Q 2022 | change | 1H 2021 | 1H 2022 | change |
|---|---|---|---|---|---|---|
| TOTAL TURNOVER | 685.821.627 | 499.472.946 | -27,17% | 1.140.549.730 | 1.506.902.174 | 32,12% |
| Orderbook turnover | 473.773.888 | 471.730.911 | -0,43% | 928.501.991 | 1.127.048.795 | 21,38% |
| Stocks | 404.793.992 | 432.379.785 | 6,81% | 804.521.266 | 1.048.684.936 | 30,35% |
| Bonds | 51.168.022 | 28.767.474 | -43,78% | 92.556.627 | 33.020.421 | -64,32% |
| ETFs | 17.811.874 | 10.583.652 | -40,58% | 31.424.099 | 45.343.438 | 44,30% |
| Block turnover | 212.047.739 | 27.742.035 | -86,92% | 212.047.739 | 379.853.379 | 79,14% |
| Equity Block | 212.047.739 | 27.742.035 | -86,92% | 212.047.739 | 379.853.379 | 79,14% |
| Debt Block | 0 | 0 | 0 | 0 |
Securities turnover
The biggest jump in the amount of daily turnover began to be noticed in late February following the start of the war in Ukraine. The next few weeks were marked by high volatility, and the initial shock did not subside until late March. The continuation of the half-year brought mostly positive sentiment, so in the second quarter of 2022, the orderbook turnover amounted to HRK 471 million, only -0.43% less than in the second quarter of 2021. Of this amount, HRK 432 million refers to stock turnover (2Q 2021: HRK 405 million), HRK 29 million to bonds turnover (2Q 2021: HRK 51 million), while ETFs achieved a turnover of HRK 11 million (2Q 2021: HRK 18 million). The equity block turnover amounted to almost HRK 28 million (2Q 2021: HRK 212 million), while the debt block turnover was absent as in the same period last year. Since the beginning of 2022, the total turnover has reached HRK 1,507 million, which is as much as +32% more than in the first half of last year (1H 2021: HRK 1,141 million). Within the orderbook in the first half of 2022, the stock turnover amounted to HRK 1,049 million and is higher by +30.3% (1H 2021: HRK 805 million), the bond turnover was only HRK 33 million and is lower by -64,3% (1H 2021: HRK 93 million), while ETF turnover increased by +44.3% and amounts to HRK 45 million (1H 2021: HRK 31 million). The largest part of equity block turnover was realized in the first quarter, and at the level of the half-year, it amounts to a significant HRK 380 million, which is an increase of as much as +79% compared to the same period in 2021 (1H 2021: HRK 212 million).
Securities turnover
The market value measured by market capitalization as of 30 June 2022 was higher by a total of HRK 335 million compared to the end of the first half of 2021. The equity market capitalization is higher by HRK +6.5 billion or +5%, with the market capitalization of the Prime Market lower by -4.7%, the Official Market higher by +4.4%, and the Regular Market by +11%. The debt market capitalization is lower by -4.6% while the value of ETFs increased by a significant +25.5%.
Market capitalization and number of listed securities
| Market capitalization (HRK) | Number of listed securities | |||||
|---|---|---|---|---|---|---|
| 30.6.2021 | 30.6.2022 | change | 30.6.2021 | 30.6.2022 | change | |
| TOTAL | 263.598.641.185 | 263.934.200.886 | 0,13% | 130 | 130 | 0,00% |
| Stocks | 130.834.615.709 | 137.319.943.118 | 4,96% | 100 | 98 | -2,00% |
| Prime Market | 30.729.538.906 | 29.294.947.386 | -4,67% | 6 | 6 | 0,00% |
| Official Market | 46.823.250.251 | 48.898.906.526 | 4,43% | 22 | 21 | -4,55% |
| Regular Market | 53.281.826.552 | 59.126.089.206 | 10,97% | 72 | 71 | -1,39% |
| Bonds | 132.711.816.473 | 126.548.728.789 | -4,64% | 28 | 30 | 7,14% |
| ETFs | 52.209.004 | 65.528.979 | 25,51% | 2 | 2 | 0,00% |
Compared to the end of the first half of 2021, as of 30 June 2022, one less share was listed on the Regular and the Official Market, while the number of stocks listed on the Prime Market remained unchanged.
Equity Market Capitalization and number of stocks listed
A comparison of data for the first half of 2022 with data from the same period last year shows a stable trend among indices as well. With the exception of CROBEXkonstrukt, which weakened -10.77%, all other stock indices increased or slightly decreased compared to the closing value on June 30, 2021. CROBEXtransport (+26%) increased the most, followed by CROBEXplus (+11%). CROBEXtr, which also calculates the dividend yield, rose by +5%, which is an excellent indicator of the return on investment that investors could achieve. The ADRIAprime regional index rose by +2.6%, while bond indices fell by -9.8% (CROBIS) and -7.7% (CROBIStr).
Indices - value (30.6.2021 vs. 30.6.2022)
* (=x/10)
1H 2021 1H 2022
* (=x/10)
The total turnover at the Ljubljana Stock Exchange in the second quarter of 2022 amounted to EUR 90 million, which is a decrease of -6% compared to the second quarter of last year, while the total turnover since the beginning of the year, i.e., in the first half of 2022, amounted to EUR 253 million which is an increase of +15.5% compared to the first half of 2021.
| EUR | 2Q 2021 | 2Q 2022 | change | 1H 2021 | 1H 2022 | change |
|---|---|---|---|---|---|---|
| TOTAL TURNOVER | 95.509.856 | 89.631.744 | -6,15% | 218.973.101 | 252.893.074 | 15,49% |
| Orderbook turnover | 89.569.285 | 87.430.752 | -2,39% | 174.154.762 | 240.051.771 | 37,84% |
| Stocks | 89.533.132 | 87.384.654 | -2,40% | 174.104.799 | 239.705.409 | 37,68% |
| Bonds | 23.864 | 3.361 | -85,91% | 37.673 | 15.706 | -58,31% |
| Structured products | 12.290 | 42.737 | 247,75% | 12.290 | 330.656 | 2590,55% |
| Block turnover | 5.940.571 | 2.200.992 | -62,95% | 44.818.339 | 12.841.303 | -71,35% |
| Equity block | 5.940.571 | 2.200.992 | -62,95% | 44.818.339 | 12.841.303 | -71,35% |
| Debt block | 0 | 0 | 0 | 0 | ||
| 30.6.2021 | 30.6.2022 | change | ||||
| Equity Market Capitalization (EUR) |
8.464.381.741 | 7.985.270.725 | -5,66% | |||
| SBITOP | 1.125 | 1.118 | -0,54% | |||
| SBITR | 1.268 | 1.343 | 5,91% |
LJSE overview
Within the orderbook, the stocks turnover in the second quarter of 2022 reached the amount of EUR 87 million, which is a slight decrease of -2.5% compared to the same period last year when it amounted to EUR 89 million. The share of bonds and structured products turnover is far lower than the stocks turnover share in the total securities turnover of the Ljubljana Stock Exchange. In the second three months of 2022, the bonds turnover amounted to only EUR 3.3 thousand (2Q 2021: EUR 24 thousand), while at the same time the turnover of the structured products amounted to EUR 42.7 thousand. In the second quarter of 2022, the equity block turnover amounted to EUR 2 million (a decrease of EUR - 3.7 million compared to the second quarter of 2021), while the debt turnover was absent as at the same time last year. At the half-yearly level, the stock turnover within the orderbook is higher by +37.7% and in the first half of 2022 amounts to EUR 240 million. At the same time, bonds turnover reached the amount of only EUR 15.7 thousand (1H 2021: EUR 37.7 thousand), and the turnover of the structured products was EUR 330.6 thousand (1H 2021: EUR 12 thousand). The equity block turnover in the first six months of 2022 is EUR 12.8 million, which is a decrease of -71.3% compared to the same period last year (1H 2021: EUR 44.8 million), while the debt block turnover is not recorded as in the same period last year.
Compared to June 30, 2021, the equity market capitalization decreased by -5.7% and on the last day of the first half of 2022 amounted to almost EUR 8 billion. From the last value on June 30, 2021, the SBITOP index slightly decreased by -0.5% and amounts to 1,118, while the SBITR index increased by almost +6%, ending June this year at a value of 1,343.
Stocks turnover at the Ljubljana Stock Exchange
1.3 Expected future development of the Group
In 2022, 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.
In 2021, the biggest focus was on the development of Exchange's own trading monitoring software, Zeus, as well as on the Exchange's strategy development project for the next five years. The Exchange also participated in the CCP implementation project for the Republic of Croatia and successfully implemented new trading system releases and other infrastructure optimization activities.
In 2022, the Zagreb Stock Exchange is intensively carrying out activities and preparatory actions for the introduction of the euro as the official currency in the Republic of Croatia from January 1, 2023
1.5 Information on repurchase of own shares
As of June 30, 2022, the companies in the Group held no own shares.
The companies in the Group did not acquire own shares between 1 January 2022 and 30 June 2022.
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 June 30, 2022, the Zagreb Stock Exchange, Inc. holds a total of 476 shares, i.e., 17.05% of the share capital of Macedonian Stock Exchange, Inc.2
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.
2 After the balance sheet date, the Zagreb Stock Exchange increased its ownership stake in the Macedonian Stock Exchange to 691 shares or 24.75% in two additional transactions.
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 2022 there were no transactions within the Group and between the Group and its shareholders in excess of EUR 100,000.
1.11 Statement of events which might have an adverse effect on Group operations
The ongoing war in Ukraine and sanctions against the Russian Federation are affecting economies in Europe and the world. The Group has no significant exposure in Ukraine, Russia and Belarus. However, the effect on the general economic situation may require a revision of certain assumptions and estimates, which may lead to significant adjustments in the carrying amount of certain assets and liabilities over the next financial year. At this stage, management cannot reliably assess the impact as new developments take place day by day.
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 importance to the Group's operations that it would require disclosure in the management report.
1.12 Business results for 1/1/2022 – 30/6/2022
In the first half of 2022, the Group generated a total of HRK 14,484 thousand of operating revenues, which is HRK +1,839 thousand or +14.5% more than in the same period last year when they amounted to HRK 12,645 thousand. Compared to the first half of 2021, sales revenue increased from HRK 8,792 to HRK 9,975 thousand, i.e., by HRK +1,183 thousand or +13.5%. The increase in sales revenue is primarily the result of an increase in income from commissions and membership fees, which, following the increased securities turnover from the end of February to mid-March this year, reached the amount of HRK 5,062 thousand by the end of the first half of this year; HRK +1,038 thousand or +25.8% more compared to the first half of 2021, when they amounted to HRK 4,025 thousand. In the first six months of 2022, income from listing maintenance fees amounts to HRK 3,917 thousand, which is an increase of HRK +84 thousand or +2.2% (1H 2021: HRK 3,833 thousand). Due to a slightly higher number of new listings than in the same period last year, in the first half of 2022, income from quotation maintenance increased by HRK +61 thousand or +6.5% and amounted to HRK 995 thousand (1H 2021: HRK 934 thousand). Compared to the first half of 2021, other operating income increased by a significant HRK +656 thousand or +17%, i.e., from HRK 3,853 to HRK 4,509 thousand. The stated increase in other operating income is a consequence of the increase in other income by HRK +710 thousand or +85.7% which amounts to HRK 1,540 thousand and includes income from education and income from issuing and maintaining LEI (1H 2021: HRK 829 thousand). Income from the supply of information fell by HRK -54 thousand or -1.8% and amounted to HRK 2,969 thousand (1H 2021: HRK 3,024 thousand).
Observing only at the second quarter of 2022, the Group's total operating income amounts to HRK 6,599 thousand, which is an increase of HRK +174 thousand (+2.7%) compared to the second quarter of last year, when operating income amounted to HRK 6,425 thousand. Sales revenues fell from HRK 4,411 thousand in the second quarter of 2021 to HRK 4,203 thousand in the same period of the current year. The decrease in income from commissions and membership fees from HRK 2,027 to HRK 1,876 thousand (-HRK 151 thousand or -7.5%) contributes to the aforementioned decline. The income from listing maintenance fees remained at almost the same level and amounts to HRK 1,970 thousand (2Q 2021: HRK 1,963 thousand). Income from quotation maintenance fell from HRK 420 to HRK 356 thousand (HRK -65 thousand or -15.4%). Other operating income increased from HRK 2,013 to HRK 2,396 thousand (HRK +383 thousand or +19%). Within other operating income, income from the supply of information fell from HRK 1,575 to HRK 1,475 thousand (HRK -100 thousand or -6.3%), and other income increased from HRK 438 to HRK 921 thousand (HRK +482 thousand or +110%).
Along with the normalization of business operations after two pandemic years, the Group began to record an increase in operating expenses, while the impact of inflation on their amount should also be taken into account. The Group's total operating expenses were thus HRK +1,613 thousand (+13.4%) higher than in the first half of 2021 and amounted to HRK 13,645 thousand (1H 2021: HRK 12,031 thousand). All items of operating expenses are higher in the first half of 2022 compared to the same period last year:
- staff costs amount to HRK 6,820 thousand, which is an increase of HRK +777 thousand or +12.9% (1H 2021: HRK 6,043 thousand),
- material costs amount to HRK 4,010 thousand, which is an increase of HRK +589 thousand or +17.2% (1H 2021: HRK 3,421 thousand),
- other costs amount to HRK 1,676 thousand, which is an increase of HRK +142 thousand or +9.3% (1H 2021: HRK 1,534 thousand),
- depreciation amounts to HRK 1,061 thousand, which is an increase of HRK +74 thousand or +7.5% (1H 2021: HRK 987 thousand),
- other operating expenses amount to HRK 28 thousand, which is an increase of HRK +23 thousand (1H 2021: HRK 5 thousand),
- value adjustment amounts to HRK 50 thousand, which is an increase of HRK +8 thousand or +19.4% (1H 2021: HRK 42 thousand).
In the second quarter of 2022 alone, operating expenses amount to HRK 7,113 thousand, which is an increase of HRK +722 thousand or +11.3% compared to the same period last year (2Q 2021: HRK 6,391 thousand). The biggest increase was recorded in material costs, which amounted to HRK 1,741 thousand in the second quarter of 2021, and HRK 2,227 thousand in the same period of the current year (HRK +485 thousand or +27.9%). In addition to them, staff costs increased from HRK 3,220 to HRK 3,400 thousand (HRK 180 thousand or +5.6%), depreciation increased from HRK 502 to HRK 538 thousand (HRK +36 thousand or +7.1%), value adjustment increased from HRK 42 to HRK 50 thousand (HRK +8 thousand or +19.4%), and other costs from HRK 882 to HRK 898 thousand (HRK +16 thousand or +1.8%). Other operating expenses were almost annulled (HRK -3 thousand or -99%).
| 000 HRK | 1H 2021 | 1H 2022 | change | 2Q 2021 | 2Q 2022 | change |
|---|---|---|---|---|---|---|
| Capital and reserves | 43.261 | 43.751 | 1,13% | 43.261 | 43.751 | 1,13% |
| Total assets | 54.772 | 54.991 | 0,40% | 54.772 | 54.991 | 0,40% |
| Operating income | 12.645 | 14.484 | 14,54% | 6.425 | 6.599 | 2,71% |
| sales revenue | 8.792 | 9.975 | 13,45% | 4.411 | 4.203 | -4,73% |
| other operating income | 3.853 | 4.509 | 17,03% | 2.013 | 2.396 | 19,00% |
| Operating expenses | 12.031 | 13.645 | 13,41% | 6.391 | 7.113 | 11,29% |
| material costs | 3.421 | 4.010 | 17,21% | 1.741 | 2.227 | 27,86% |
| staff costs | 6.043 | 6.820 | 12,85% | 3.220 | 3.400 | 5,58% |
| depreciation and amortization | 987 | 1.061 | 7,49% | 502 | 538 | 7,09% |
| other costs | 1.580 | 1.754 | 10,99% | 927 | 948 | 2,31% |
| EBIT | 614 | 839 | 36,74% | 34 | -514 | -1624,63% |
| EBITDA | 1.600 | 1.900 | 18,71% | 536 | 24 | -95,56% |
| Financial income | 42 | 55 | 32,62% | -28 | 8 | |
| Financial expenses | 299 | 681 | 127,70% | 65 | 399 | 512,31% |
| Share in profit/loss of associates and subsidiaries |
20 | 16 | -21,16% | -52 | 8 | |
| Pre-tax profit or loss | 377 | 230 | -39,00% | -112 | -897 | 701,86% |
| Income tax | 53 | 151 | 184,38% | 7 | -7 | -203,66% |
| Profit or loss for the period | 324 | 79 | -75,61% | -119 | -890 | 649,71% |
| Other comprehensive income | 7 | 445 | 6456,37% | -117 | 289 | |
| Total comprehensive income | 331 | 524 | 58,63% | -236 | -601 | 154,90% |
| Number of employees | 37 | 38 | 2,70% | 37 | 38 | 2,70% |
The Group's key business indicators
The Group's operating profit in the first half of 2022 amounted to HRK 839 thousand, while in the same period last year it amounted to HRK 614 thousand (HRK +225 thousand or +36.7%). At the level of the second quarter, the Group reports an operating loss in the amount of HRK -514 thousand, while the operating profit in the same period last year amounted to HRK 34 thousand. Financial income recorded modest growth in the first half of the year as well as in the second quarter compared to the same periods last year. In the first half of 2022, financial income amounted to HRK 55 thousand (HRK +13 thousand or +36.6%), while financial income in the second quarter accounted for HRK 8 thousand (HRK +36 thousand). In the first half of this year, financial expenses amount to HRK 681 thousand (HRK +382 thousand or +127.7%), while in the second quarter alone they are higher by HRK +334 thousand and amount to HRK 399 thousand. Changes in the movement of financial income and expenses are primarily the result of the negative yield of bond funds in which the Group has invested free funds.
If we add up the positive operating profit, negative net financial result and share in the profit of the associates and subsidiaries in the amount of HRK 16 thousand and income tax in the amount of HRK 151 thousand, the Group's net profit in the first six months of 2022 amounts to HRK 79 thousand which is HRK -245 thousand (-75.6%) less than in the same period of 2021 when the Group's net profit amounted to HRK 324 thousand. Adding other comprehensive income in the amount of HRK 445 thousand to the net profit, the Group's total comprehensive income for the first half of 2022 amounts to HRK 534 thousand (an increase of HRK +194 thousand or +58.6% compared to HRK 331 thousand in the first half of 2021. The share in the profit of the associates and subsidiaries in the second quarter of 2022 is HRK 8 thousand, and the income tax is a positive HRK 7 thousand, therefore the Group in the second quarter of 2022 reports a loss in the amount of HRK -890 thousand and a total comprehensive loss in the amount of HRK -601 thousand.
Operating profit before interest, taxes, depreciation and amortization is positive and in the first half of 2022 amounts to HRK 1,900 thousand, i.e., HRK +300 thousand more than in the first half of 2021, while in the second quarter of 2022 it amounts to HRK 24 thousand, i.e., HRK -512 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 1/1/2022 and 30/6/2022 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 1/1/2022 and 30/6/2022 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 2022 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 2022 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 1/1/2022 – 30/6/2022
| Annex 1 | ISSUER'S GENERAL DATA | ||
|---|---|---|---|
| Reporting period: | 1.1.2022 | to | 30.6.2022 |
| Year: | 2022 | ||
| Quarter: | 2 | ||
| Quarterly financial statements | |||
| Registration number (MB): 03749606 |
Issuer's home | HR | |
| Entity's registration 080034217 |
Member State code: | ||
| number (MBS): Personal identification |
|||
| 84368186611 number (OIB): Institution |
LEI: | 7478000050A040C0D041 | |
| 4 code: |
|||
| 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 3 8 |
|||
| (end of the reporting 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 | |||
| Bookkeeping firm: Yes |
(Yes/No) | Sigma Tax Consulting d.o.o. | No |
| Contact person: Martina Butković | (name of the bookkeeping firm) | ||
| Telephone: 01/4699-555 | (only name and surname of the contact person) | ||
| E-mail address: [email protected] | |||
| Audit firm: | |||
| (name of the audit firm) |
18
| BALANCE SHEET | ||||||
|---|---|---|---|---|---|---|
| balance as at 30.6.2022 | ||||||
| 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 | 17.038.930 | 20.527.862 | |||
| I INTANGIBLE ASSETS II TANGIBLE ASSETS 004+…+008 |
2 3 |
2.803.702 11.762.570 |
2.799.411 11.538.614 |
|||
| 1 Land and buildings | 4 | 9.428.635 | 8.937.217 | |||
| 2 Computer equipment | 5 | 742.389 | 662.921 | |||
| 3 Other tangible assets | 6 | 941.859 | 1.154.016 | |||
| 4 Leasehold improvements | 7 | 649.687 | 784.460 | |||
| 5 Assets under construction | 8 | 0 | 0 | |||
| III FIXED FINANCIAL ASSETS 010+011 | 9 | 2.293.745 | 6.021.895 | |||
| 1 Investments in associates, subsidiaries and joint ventures 2 Financial assets at amortised cost |
10 11 |
145.796 2.147.949 |
161.706 5.860.189 |
|||
| DEFERRED TAX ASSETS | 12 | 178.913 | 167.942 | |||
| B CURRENT ASSETS 014+020+024 | 13 | 35.959.157 | 31.803.233 | |||
| I RECEIVABLES 015++019 | 14 | 3.857.348 | 3.247.642 | |||
| 1 Trade receivables | 15 | 3.075.430 | 2.295.158 | |||
| 2 Receivables from employees and members of the undertaking | 16 | 524 | 7.613 | |||
| 3 Receivables from government and other institutions | 17 | 179.089 | 341.103 | |||
| 4 Receivables from connected undertakings | 18 | 0 | 0 | |||
| 5 Other receivables | 19 | 602.305 | 603.768 | |||
| III SHORT-TERM FINANCIAL ASSETS 021+…+023 1 Financial assets at amortised cost |
20 21 |
20.492.049 6.012.762 |
16.411.792 6.008.797 |
|||
| 2 Financial assets at fair value through other comprehensive | 22 | 0 | 0 | |||
| 3 Financial assets at fair value through statement of profit or | 23 | 14.479.287 | 10.402.995 | |||
| III CASH AND CASH EQUIVALENTS | 24 | 11.609.760 | 12.143.799 | |||
| C PREPAID EXPENSES AND ACCRUED INCOME | 25 | 609.973 | 2.660.088 | |||
| D TOTAL ASSETS 001+013+025 | 26 | 53.608.060 | 54.991.183 | |||
| E OFF-BALANCE SHEET ITEMS | 27 | 0 | 0 | |||
| LIABILITIES | ||||||
| A CAPITAL AND RESERVES 029+030+031+036+037+038 I INITIAL CAPITAL |
28 29 |
43.226.778 46.357.000 |
43.751.099 23.178.500 |
|||
| II CAPITAL RESERVES | 30 | 13.860.181 | 13.860.181 | |||
| III PROFIT RESERVES 032++035 | 31 | 852.898 | 7.446.121 | |||
| 1 Legal reserves | 32 | 141.000 | 141.000 | |||
| 2 Reserves for treasury shares | 33 | 0 | 0 | |||
| 3 Fair value reserves | 34 | 0 | 418.691 | |||
| 4 Other reserves | 35 | 711.898 | 6.886.430 | |||
| IV RETAINED PROFIT OR LOSS BROUGHT FORWARD V PROFIT OR LOSS FOR THE YEAR |
36 37 |
-18.206.852 363.551 |
-812.650 78.947 |
|||
| VI MINORITY INTEREST | 38 | 0 | 0 | |||
| B PROVISIONS | 39 | 192.109 | 238.113 | |||
| C SHORT-TERM LIABILITIES 041+046 | 40 | 3.286.093 | 2.885.574 | |||
| 1 Liabilities for advance payments | 41 | 126.864 | 9.065 | |||
| 2 Trade payables | 42 | 1.154.241 | 664.644 | |||
| 3 Liabilities to employees | 43 | 745.001 | 810.486 | |||
| 4 Taxes, contributions and similar liabilities | 44 45 |
278.324 0 |
707.807 0 |
|||
| 5 Liabilities to connected undertakings 6 Other short-term liabilities |
46 | 981.663 | 693.572 | |||
| D LONG-TERM LIABILITIES | 47 | 2.414.550 | 2.524.894 | |||
| E DEFERRED TAX LIABILITY | 48 | 188.771 | 291.877 | |||
| F ACCRUALS AND DEFERRED INCOME | 49 | 4.299.759 | 5.299.626 | |||
| G TOTAL LIABILITIES 028+039+040+047+048+049 | 50 | 53.608.060 | 54.991.183 | |||
| 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 | 43.226.778 | 43.751.099 | |||
| 1 Attributable to owners of the parent 2 Attributable to non-controlling interest |
53 54 |
43.226.778 0 |
43.751.099 0 |
|||
| STATEMENT OF PROFIT OR LOSS For the period 1.1.2022 to 30.6.2022 |
|||||||
|---|---|---|---|---|---|---|---|
| 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 | 12.644.942 | 6.424.668 | 14.483.608 | 6.598.721 | ||
| I Sales revenue 003++008 | 2 | 8.792.006 | 4.411.310 | 9.974.618 | 4.202.761 | ||
| 1 Commissions and membership fees | 3 | 4.024.605 | 2.027.482 | 5.062.308 | 1.876.477 | ||
| 2 Listing maintenance fees | 4 | 3.833.189 | 1.963.493 | 3.917.128 | 1.970.486 | ||
| 3 Income from quotation maintenance 4 Income from auctions |
5 6 |
934.212 0 |
420.335 0 |
995.182 0 |
355.798 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 | 3.852.936 | 2.013.358 | 4.508.990 | 2.395.960 | ||
| 1 Income from application programming interface (API) services | 10 | 0 | 0 | 0 | 0 | ||
| 2 Income from the supply of information | 11 | 3.023.717 | 1.574.855 | 2.969.341 | 1.475.178 | ||
| 3 Other income | 12 | 829.219 | 438.503 | 1.539.649 | 920.782 | ||
| B OPERATING EXPENSES 014+017+021+022+023+026+027 | 13 | 12.031.388 | 6.390.951 | 13.644.646 | 7.112.779 | ||
| I Material costs 015+016 | 14 | 3.420.936 | 1.741.410 | 4.009.736 | 2.226.566 | ||
| 1 Costs of raw materials | 15 | 264.502 | 127.218 | 156.185 | 92.766 | ||
| 2 Other external costs | 16 | 3.156.434 | 1.614.192 | 3.853.551 | 2.133.800 | ||
| II Staff costs 018++020 | 17 | 6.043.185 | 3.220.430 | 6.819.937 | 3.400.056 | ||
| 1 Net salaries and wages | 18 | 4.103.235 | 2.089.966 | 4.819.860 | 2.323.598 | ||
| 2 Tax and contributions from salary costs | 19 | 1.461.872 | 858.749 | 1.487.534 | 807.888 | ||
| 3 Payroll contributions | 20 | 478.078 | 271.715 | 512.543 | 268.570 | ||
| III Depreciation | 21 | 986.782 | 502.228 | 1.060.723 | 537.839 | ||
| IV Other costs | 22 | 1.533.520 | 882.014 | 1.675.832 | 898.282 | ||
| V Value adjustment 024+025 | 23 | 41.873 | 41.873 | 50.000 | 50.000 | ||
| 1 fixed assets (other than financial assets) | 24 | 0 | 0 | 0 | 0 | ||
| 2 current assets (other than financial assets) VI Provisions |
25 26 |
41.873 0 |
41.873 0 |
50.000 0 |
50.000 0 |
||
| 27 | 5.092 | 2.996 | 28.418 | 36 | |||
| VII Other operating expenses C FINANCIAL INCOME 029++034 |
28 | 41.846 | -28.288 | 55.497 | 7.910 | ||
| 1 Interest, exchange rate differences, dividends and similar | 29 | 0 | 0 | 175 | 11 | ||
| 2 Interest, exchange rate differences, dividends and similar | 30 | 10.953 | -56.834 | 52.940 | 6.389 | ||
| 3 Income share from associates and participating interests | 31 | 0 | 0 | 0 | 0 | ||
| 4 Unrealised gains (income) from financial assets | 32 | 25.609 | 25.609 | 0 | 0 | ||
| 5 Profit from reversal of provisions for impairment for expected | 33 | 0 | 0 | 0 | 0 | ||
| 6 Other financial income | 34 | 5.284 | 2.937 | 2.382 | 1.510 | ||
| D FINANCIAL EXPENSES 036++040 | 35 | 298.915 | 65.123 | 680.623 | 398.756 | ||
| 1 Interest, exchange rate differences and other expenditures with | 36 | 2.450 | 402 | 2.869 | 1.501 | ||
| 2 Interest, exchange rate differences and other expenditure from | 37 | 22.800 | 22.800 | 105.601 | 69.039 | ||
| 3 Unrealised losses (expenses) from financial assets | 38 | 273.665 | 41.921 | 572.153 | 328.216 | ||
| 4 Loss on impairment for expected credit losses | 39 | 0 | 0 | 0 | 0 | ||
| 5 Other financial expenses | 40 | 0 | 0 | 0 | 0 | ||
| E TOTAL INCOME 001+028 | 41 | 12.686.788 | 6.396.380 | 14.539.105 | 6.606.631 | ||
| F TOTAL EXPENDITURE 013+035 | 42 | 12.330.303 | 6.456.074 | 14.325.269 | 7.511.535 | ||
| G Share in profit/loss of associates and subsidiaries | 43 | 20.309 | -52.202 | 16.012 | 7.651 | ||
| H PRE-TAX PROFIT OR LOSS 041-042+043 | 44 | 376.794 | -111.896 | 229.848 | -897.253 | ||
| I INCOME TAX J PROFIT OR LOSS FOR THE PERIOD 044-045 |
45 46 |
53.064 323.730 |
6.839 -118.735 |
150.901 78.947 |
-7.089 -890.164 |
||
| 47 | 0 | 0 | 0 | 0 | |||
| 1 Change in revaluation reserves (property, plant, 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 | 521.523 | 521.523 | ||
| 5 Gains/losses arising from translation of financial | 51 | 6.793 | -117.037 | 26.683 | -129.503 | ||
| 6 Income tax on other comprehensive income | 52 | 0 | 0 | 102.832 | 102.832 | ||
| K OTHER COMPREHENSIVE INCOME 047+…+052 | 53 | 6.793 | -117.037 | 445.374 | 289.188 | ||
| TOTAL COMPREHENSIVE INCOME 046+053 | 54 | 330.523 | -235.772 | 524.321 | -600.976 | ||
| M RECLASSIFICATION ADJUSTMENTS | 55 | 0 | 0 | 0 | 0 | ||
| Appendix ** | |||||||
| Attributable to owners of the parent | 56 | 330.523 | -235.772 | 524.321 | -600.976 | ||
| Attributable to non-controlling interest | 57 | 0 | 0 | 0 | 0 | ||
| 20 |
| for the period 1.1.2022 to 30.6.2022 | |||||
|---|---|---|---|---|---|
| Submitter: Zagreb Stock Exchange, Inc | in HRK | ||||
| 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 | 376.794 | 229.848 | ||
| 2 Depreciation | 2 | 986.782 | 1.060.723 | ||
| 3 Increase in short-term liabilities | 3 | 509.990 | 0 | ||
| 4 Decrease in short-term receivables | 4 | 459.083 | 596.347 | ||
| 5 Decrease in inventories | 5 6 |
312 0 |
0 0 |
||
| 6 Loss on impairment for expected credit losses 7 Other cash flow increase |
7 | 20.320 | 522.397 | ||
| I Total cash flow increase from operating activities 001++007 |
8 | 2.353.281 | 2.409.315 | ||
| 1 Decrease in short-term liabilities | 9 | 0 | 120.021 | ||
| 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 | 1.834.664 | 1.051.211 | ||
| II Total cash flow decrease from operating activities 009++013 |
14 | 1.834.664 | 1.171.232 | ||
| 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 | 43.716 | 0 | ||
| 4 Dividends received | 18 | 957.313 | 0 | ||
| 5 Other cash receipts from investment activities III Total cash receipts from investment activities 015++019 |
19 20 |
1.707.982 2.709.011 |
3.523.386 3.523.386 |
||
| 21 | 458.548 | 579.699 | |||
| 1 Cash payments for the purchase of fixed tangible and intangible 2 Cash payments for the acquisition of equity financial |
22 | 0 | 3.190.716 | ||
| 3 Other cash payments from investment activities | 23 | 0 | 48.095 | ||
| IV Total cash payments from investment activities 021++023 |
24 | 458.548 | 3.818.510 | ||
| CASH FLOW FROM FINANCING ACTIVITIES | |||||
| 1 Cash receipts from the issue of equity financial instruments and debt financial instruments |
25 | 0 | 0 | ||
| 2 Cash receipts from credit principals, debentures, loans and other borrowings |
26 | 0 | 0 | ||
| 3 Other cash receipts from financing activities | 27 | 0 | 0 | ||
| V Total cash receipts from financing activities 025++027 | 28 | 0 | 0 | ||
| 1 Cash payments for credit principals and bonds | 29 | 0 | 0 | ||
| 2 Cash payments for dividends | 30 | 0 | 0 | ||
| 3 Cash payments for finance lease | 31 | 0 | 0 | ||
| 4 Cash payments for the redemption of treasury shares | 32 | 0 | 0 | ||
| 5 Other cash payments from financing activities | 33 | 386.430 | 408.920 | ||
| VI Total cash payments from operating activities 029++033 | 34 | 386.430 | 408.920 | ||
| VII Cash and cash equivalents at the beginning of period | 35 | 9.323.767 | 11.609.760 | ||
| VIII Increase of cash and cash equivalents | 36 | 2.382.650 | 534.039 | ||
| IX Decrease of cash and cash equivalents | 37 | 0 | 0 | ||
| X Cash and cash equivalents at the end of period | 38 | 11.706.417 | 12.143.799 21 |
STATEMENT OF CASH FLOWS - indirect method
| STATEMENT OF CHANGES IN EQUITY |
|||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| for the period from | 1.1.2022 | to | 30.6.2022 | 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 | 2.152.251 | -20.359.103 | 0 | 779.350 | 0 | 42.930.679 | |
| 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 | |
| first of previous Balance on the day the business year (restated) |
4 | 46.357.000 | 13.860.181 | 141.000 | 2.152.251 | -20.359.103 | 0 | 779.350 | 0 | 42.930.679 | |
| Profit for or loss the period |
5 | 0 | 0 | 0 | 363.551 | 0 | 0 | 0 | 0 | 363.551 | |
| on financial Unrealised gains or losses 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 | -67.452 | 0 | -67.452 | |
| Total directly recognized income and expenses of the previous year (previous year periods) |
8 | 0 | 0 | 0 | 363.551 | 0 | 0 | -67.452 | 0 | 296.099 | |
| 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 | -2.152.251 | 2.152.251 | 0 | 0 | 0 | 0 | |
| Balance on the last day of the previous business year reporting period |
13 | 46.357.000 | 13.860.181 | 141.000 | 363.551 | -18.206.852 | 0 | 711.898 | 0 | 43.226.778 | |
| Balance on the first day of the current business year |
14 | 46.357.000 | 13.860.181 | 141.000 | 363.551 | -18.206.852 | 0 | 711.898 | 0 | 43.226.778 | |
| 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 | 363.551 | -18.206.852 | 0 | 711.898 | 0 | 43.226.778 | |
| Profit or loss for the period |
18 | 0 | 0 | 0 | 78.947 | 0 | 0 | 0 | 0 | 78.947 | |
| 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 | 418.691 | 26.683 | 0 | 445.374 | |
| Total directly recognised income and |
|||||||||||
| expenses of the current year (current period) |
21 | 0 | 0 | 0 | 78.947 | 0 | 418.691 | 26.683 | 0 | 524.321 | |
| Increase/decrease in subscribed capital |
22 | -23.178.500 | 23.178.500 | 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 | -363.551 | 363.551 | 0 | 0 | 0 | 22 0 |
|
| of Balance on the last day the current business year reporting period |
26 | 23.178.500 | 37.038.681 | 141.000 | 78.947 | -17.843.301 | 418.691 | 738.581 | 0 | 43.751.099 |
NOTES TO THE FINANCIAL STATEMENTS – TFI (drawn up for quarterly reporting periods) Name of issuer: Zagrebačka burza d.d. Personal identification number (OIB): 84368186611
Reporting period: 1.1.2022 - 30.6.2022 Sort of report: Consolidated
1. Reporting entity
Zagrebačka burza d.d. ("the Company") is a joint stock company domiciled in the 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 in accordance with International Financial Reporting Standards as adopted by the European Union (IFRS). Consolidated financial statements are prepared on a historical cost basis, except for financial assets at fair value through profit or loss and financial assets at fair value through other comprehensive income, which are measured at fair value, and buildings and land that are measured at fer value.
Detailed information on the basis for preparation of the financial statements are provided in the Note No. 2 to the consolidated financial statements presented in the Annual Report on Group Status and Business Activities in 2021 available on the internet page www.zse.hr (further: Annual Report of the Group).
Significant accounting policies
The interim financial statements for the reporting period are prepared applying the same accounting policies as in the latest annual consolidated financial statements for 2021, available on the internet page www.zse.hr.
Disclosure of information required by IFRSs that are 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 are not presented elsewhere in the consolidated statement of financial position, statement of comprehensive income, statement of cash flows and statement of changes in equity are disclosed in the report Consolidated unaudited financial result for period 1.1. to 30.6.2022 (further: Consolidated Result for 2nd 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 of 30 June 2022 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 Note 1.12 of Consolidated Result for 2nd 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 presented in the Annual Report of the Group and incomes and expenditures presented in this TFI form:
(a) income from assigning and administering LEIs is, in accordance with the Groups accounting policies, reported in other income (AOP 12) in the amount of HRK 171 thousand
(b) other differences between the information presented in the consolidated financial statements in TFI form compared to the classification of the information in the audited consolidated financial statements for 2021 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 reporting period
The average number of employees during the reporting period is 37.
7. Capitalized costs of salaries during the reporting period
The Group did not capitalize the cost of salaries during the reporting period.
8. Deferred taxes
The provision for deferred taxes, amount of the deferred taxes at the beginning and at the end of the reporting period and movement during the reporting period is as follows:
| 1.1.2022 | Increase | Decrease | 30.6.2022 | |
|---|---|---|---|---|
| kn'000 | kn'000 | kn'000 | kn'000 | |
| Deferred tax assets | 179 | - | (11) | 168 |
| Deferred tax liabilities | (189) | (102) | - | (291) |
| (10) | (102) | (11) | (123) |
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, showing the amount of capital held, the amount of total capital and reserves, and profit or loss
The investments in controlled companies, 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 of the Group for 2021. During the reporting period there were no significant changes in comparison to the information presented in the Annual Report of the Group.
10. Number and nominal value of shares subscribed during the reporting period within the limits of the authorised capital
There were no shares subscribed during the reporting period within the limits of the authorised capital.
Based on the Decision of the Company's Assembly dated June 14, 2022, the share capital of the Company is reduced in a regular procedure for the purpose of transferring HRK 23,178,500.00 to other reserves of the Company. By undertaking the share capital reduction, the nominal value per share is reduced to the amount which is lower than the minimum nominal amount permitted under Article 163(2) of the Companies Act. Hence, the share capital is reduced in a regular procedure through a consolidation of shares (reverse split), in accordance with Article 342(4) of the Companies Act. The shares are consolidated at a ratio of 2:1 by issuing to each shareholder 1 registered share with a nominal value of HRK 10.00 for 2 shares outstanding.
The company used other reserves to cover losses from previous periods in the amount of HRK 17,030,651.07, after which the amount of HRK 6,147,848.93 remained in the company's other reserves.
11. Existence of any participation certificates, convertible debentures, warrants, options or similar securities or rights, with an indication of their number and the rights they give
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 a controlled member of any group.
The Company prepares quarterly consolidated financial statements 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 for the reporting period 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 a controlled member of any group.
15. Place where copies of the consolidated financial statements referred to in points 13 and 14 may be obtained
The Company prepares quarterly consolidated financial statements 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, provided that the risks or rewards of such arrangements are material and to the extent that disclosure of such risks or rewards is necessary to assess the issuer's financial condition
The Group has no arrangements that are not included in the presented consolidated financial statements.
17. Nature and the financial effect of significant events arising after the balance sheet date which are not reflected in the profit and loss account or balance sheet
Significant events arising after the balance sheet date are presented in the Note 1.11 to the Consolidated Result for 2nd quarter of 2022 as published on the internet page www.zse.hr
Attachment: Reconciliation of the classification of the items of the financial statements in TFI form compared to the classification used in preparation of the audited financial statements for the year 2021:
| P&L item (IFRS) | Amount HRK'000 |
P&L item (GFI) | Amount HRK'000 |
|---|---|---|---|
| Staff costs | 7.225 | Staff costs | 6.820 |
| Reclassification from other costs | 405 | ||
| Other operating costs | 5.358 | Costs of raw materials | 156 |
| Other external costs | 3.854 | ||
| Value adjustment | 50 | ||
| Other costs | 1.676 | ||
| Other operating expenses | 27 | ||
| Reclassification to staff costs | -405 | ||
| Balance sheet item (IFRS) | Amount HRK'000 |
Balance sheet item (GFI) | Amount HRK'000 |
| Property and equipment | 8.464 | Land and buildings | 8.937 |
| Assets with right of use | 3.075 | Computer equipment | 663 |
| Other tangible assets | 1.154 | ||
| Leasehold improvements | 784 | ||
| Rounding | 1 | ||
| Financial assets at fair value through other comprehensive income | 5.393 | Financial assets at amortised cost (long term) | 5.860 |
| Long term deposits | - | Rounding | - |
| Guarantee deposits | 250 | ||
| Loans receivable from associate | 217 | ||
| Trade receivables and other assets | 3.243 | Receivables (short term) | 3.248 |
| Inventories | 6 | Rounding | 1 |
| Trade and other payables (short term) | - | Liabilities for advance payments | 9 |
| Short term financial liabilities | - | Trade payables | 665 |
| Liabilities for corporate income tax | 2.298 | Liabilities to employees | 810 |
| Taxes, contributions and similar liabilities | 708 | ||
| Liabilities to connected undertakings | - | ||
| Other short-term liabilities | 694 | ||
| Rounding | -588 | ||
| Contractual liabilities | 447 | Accruals and deferred income | 5.300 |
| Rounding | -4.853 |