The Polish Government adopted the Capital Market Development Strategy (SRRK) on 1 October 2019. The Strategy was published on 25 October 2019. The Strategy aims to improve access to financing for Polish companies, in particular small and medium-sized enterprises which generate approximately three-fourths of Poland’s GDP. The average cost of capital will be reduced, contributing to long-term growth of the Polish economy. The Strategy lists the top 20 barriers to the development of the capital market in Poland and suggests how to resolve them with 90 initiatives. The initiatives include improvement of savings and investments in Poland as well as better education of the general public in matters concerning the financial market.

Specific goals of the strategy include:

• to improve the scale of capital raised by companies on the capital market;
• to improve market liquidity;
• to improve the efficiency of intermediary institutions;
• to improve the share of savings in the economy;
• to make administrative procedures more efficient.

On 6 March 2020, the Minister of Finance appointed Antoni Rzepa as Plenipotentiary for the Capital Market Development Strategy (SRRK). The mission of the Plenipotentiary is to implement 90 proposals defined in the Strategy in order to promote the capital market as a venue of investment of personal savings. Facilitation measures, transparency and investor orientation will attract savings of Poles as well as international capital.

The GPW Group actively participates in the development of Strategy initiatives as a member of task forces dedicated to thematic modules. The Strategy initiatives include seven thematic strands:

• Strand1: Strategy project management(7 initiatives)
• Strand 2: General(11 initiatives)
• Strand 3: Supervision and regulation reform(31 initiatives),
• Strand 4: Tax incentives and tax administration(4 initiatives),
• Strand 5: Market structure(29 initiatives),
• Strand 6: Innovation(3 initiatives),
• Strand 7: Sustainable financing, green investments(5 initiatives).

Twenty-one capital market institutions were invited to take part in the Strategy consultation process by joining the task forces. The GPW Group’s projects and initiatives are implemented in line with the Strategy framework.

The GPW Strategy Department provides estimates of contributions to be paid into PPK in the coming years. The forecast assumptions are as follows:

• 1. Participation rate: 2021 -28%, as of 2022 -30%
• 2. Average contribution rate –3.5%
• 3. Income CAGR -4%
• 4. Average monthly gross salary –PLN 4,918.17 (Statistics Poland)
• 5. Annual Labour Fund contribution -PLN 240.00
• 6. Portfolio: domestic shares -30%, foreign shares -10%, domestic bonds -50%, foreignbonds -10%

Source: GPW estimates

On 2^nd March, 2021, the Council of Ministers adopted a draft law which provides for transfers of assets from Open-ended Pension Funds (OFE) to Individual Pension Accounts (IKE) in a process similar to the draft discussed by the government in early 2020, before the outbreak of the COVID-19 pandemic.

The draft law adopted on 2^nd March, 2021 sets out the process of liquidation of Open-ended Pension Funds (OFE) and the transfer of their assets to Individual Pension Accounts (IKE) by default or to the Social Security Institution (ZUS) as an option. In particular, the draft law provides as follows:

• pension fund companies (PTE) which manage OFEs will be converted into investment fund companies (TFI) and OFEs will become specialised open-ended investment funds (SFIO);
• 100% of OFE assets will be transferred to Individual Pension Accounts (IKE) managed by TFIs, subject to inheritance, or as an option to the Social Security Institution (ZUS);
• assets transferred to IKE will be subject to a 15% conversion fee paid to FUS paid over two years (70% in 2021 and 30% in 2022). This aims to ensure equal treatment of pensioners because assets transferred to FUS and paid in pensions will be subject to personal income tax (no conversion fee will be charged on assets transferred to FUS);
• OFE assets may be transferred to the Social Security Institution (ZUS). No conversion fee will be charged for such transfers. The assets will be managed by the Demographic Reserve Fund (FRD). Assets invested in ZUS may be withdrawn on reaching retirement age, subject to income tax. Demographic Reserve Fund assets will be managed by a specialised investment institution: an investment fund company set up as a subsidiary of Polski Fundusz Rozwoju S.A. (PFR);
• the investment policies of SFIOs, into which OFEs will be converted, will depend on the insureds’ age and risk profile in the long term to protect the assets transferred from OFEs;
• TFIs’ management fee for assets transferred from OFEs will be capped.

The Polish economy navigated through the crisis caused by the pandemic relatively easily. As a result, the development gap to the “Old European Union” continued to be closed even at a moderately faster rate. The economic shock caused by the COVID-19 pandemic was strong but not as strong as expected at the outset of the crisis. Consumption and investments fell sharply in the crisis but economic activity recovered in Q3 across the economies bolstered by fiscal and monetary measures. According to economists, a V-shaped recovery is curbed by subsequent waves of the pandemic. However, recent statistics suggest quick adaptation across the population, mitigating the sensitivity of the economy to restrictions. Consumption and exports have recovered strongly but continued uncertainty about the economic outlook keeps companies’ investments low. According to economists, 2021 is bound to be better than 2020. How much better depends on the spread of the contagion and the efficiency of the vaccination programme. Consequently, expectations for 2021 are marked by strong uncertainty, even if this year may have fewer surprises in store. The market consensus is that the pandemic will gradually recede in 2021. Mass vaccination programmes should build population resistance, preventing new hard lockdowns. However, as vaccinations take time, some of the restrictions will continue in 2021, slowing down the pace of recovery after the crisis. According to economists, the Polish economy is very likely to accelerate strongly as of H2 2021. The growth will mainly be driven by consumer demand and exports. In late 2021 or in 2022, the economy will additionally be bolstered by EU funds which may lift GDP growth to a high single-digit rate. Economists expect that the Monetary Policy Council will maintain the interest rates at levels close to 0 in the coming quarters. Financial markets are likely to gradually stabilise in 2021.

Financial capital is a group of stable financing of the GPW Group and the potential for developing larger capital. It includes financial resources intended for conducting business, including equity and foreign capital as well as funds generated as part of operating activities.

The intellectual capital of the GPW Group is knowledge-based intangible and organizational resources of the Group, including the Group's brand, as well as software, information products, databases, services and internal procedures.

In the GPW CG, human capital is understood as the competences, abilities and experience of employees, as well as their motivation to create innovation.

The Group's social and relational capital includes experiences and relationships within and between communities and stakeholder groups.

The Group's manufactured capital consists of tangible and intangible assets that are intended to be used in the GPW Group's business process, mainly transaction systems and IT infrastructure.

Natural capital mainly includes the consumption of electricity, heat and water, resources ensuring the stable operation of exchange trading systems and IT infrastructure.

Net profit

• 2020: PLN 151.4 mn
• 2019: PLN 119.3 mn
• 2018: PLN 183.7 mn

EBITDA

• 2020: PLN 224.6 mn
• 2019: PLN 193.2 mn
• 2018: PLN 202.0 mn

Sales revenue

• 2020: PLN 403.8 mn
• 2019: PLN 336.1 mn
• 2018: PLN 346.8 mn

• Continuation of research and development work: development of a proprietary Trading Platform co-financed with an NCBR grant
• Launch of next edition of GPW Growth
• New listing of structured future contracts and structured products : 1798 structured products in 2020 vs. 1220 in 2019 vs. 1151 in 2018
• New listing of ETFs ( ETF WIG20lev) Total number of listed ETFs: 7 in 2020, 6 in 2019 vs. 3 in 2018
• Commencement of the takeover process of the stock exchange in Armenia

• 100% reliability of the trading systems
• number of reported transaction on GPW markets: 33,5 mn in 2020 vs. 17,9 mn in 2019 vs. 18B ,1 mn transactions in 2018
• number of reported transaction on TGE markets: 7,6 mn transactions in 2020 vs. 5,8 mn transactions in 2019 vs. 4,5 mn transactions in 2018

• Electricity consumption: 1,046.12 MWh in 2020 vs. 1,173.42 MWh in 2019.
• Thermal energy consumption: 857.97 MWh in 2020 vs. 949.42 MWh in 2019.
• CO₂ emissions for electricity at the level of 752.16 t in 2020 vs. 897.7 t in 2019.
• CO₂ emission for heat energy at the level of 298.1 in 2020 vs. 329.8 t in 2019.
• Water consumption at the level of 2,126.80 m³> in 2020 vs. 3,480.22 m3 in 2019.
• Fuel consumption: 5.3 thousand in 2020 vs. 10.2 thousand. l in 2019
• Paper consumption: 316 thousand. A4 sheets in 2020 vs. 554 thousand. A4 sheets in 2019

• employment 454 employees in 2020 vs. 413 employees in 2019 vs. 363 employees in 2018 r.
• staff turnover in GPW Group 8.02% in 2020 10.73% in 2019 vs. 12.13 % in 2018
• total employee costs PLN 95.6 mn in 2020 vs. PLN 77.8 mn in 2019 vs. PLN 68.8 mn in 2018
• the ratio of women to men in 2020 is 183 women/271 men vs. in 2019 is 168 women / 245 men vs. in 2018: 149 women / 214 men.

• Taxes paid: 37.6 mn in 2020 vs. PLN 30.5 mn in 2019 vs. PLN 41.7 mn in 2018
• b Go4Polandb  conference participants: 180 in 2020 (only 35 physical presence due to covid restrictions) vs. 180 in 2019 vs.130 in 2018
• 1,050 school students visited GPW in 2020 (due to the pandemic, school visits were suspended in March 2020 due to the epidemic restrictions) vs. about 9,000 school students visited GPW in 2019 vs. 8,700 in 2018
• Online School Exchange Game (SIGG) participants: 18,000 in 2020 vs. 18,700 in 2019 vs. 18,000 in 2018
• 641 students involved in the educational program School of Stock Exchange in 2020 vs. 661 students involved 2019 vs. 645 students involved in the 2018

• Dividend from net profit:2020: PLN 104.9 mn (PLN 2.5 per share recommended by Management Board) vs. 2019: PLN 100.7 mn (PLN 2.40 per share) vs. 2018: PLN 133.5 mn (PLN 3.18 per share)
• EBITDA mergin: 55.7% in 2020 vs. 57.5% in 2019 vs. 58.2% in 2018 r.
• ROE: 14.6% in 2020 vs. 13.6% in 2019 vs. 21.7% in 2018

• IPO value: IPO PLN 9,625 mn in 2020 vs. PLN 76 mn in 2019 vs.PLN 346 mn in 2018
• SPO value: PLN 4.7 billion in 2020 vs. PLN 8.1 billion in 2019 vs. PLN 5.4 billion in 2018
• Value of turnover in the electronic order book on the stock market: PLN 297 billion in 2020 vs. PLN 192 billion in 2019 vs. PLN 204 billion in 2018
• Value of turnover in the electronic order book on the stock market: PLN 297 billion in 2020 vs. PLN 192 billion in 2019 vs. PLN 204 billion in 2018
• Share of equity turnover of retail investors on the GPW Main Market: 25% w 2020 r vs. 12 w 2019 r. vs. 12% w 2018 r.
• Launching a program dedicated to current and future issuers, entitled "IT'S WORTH TO BE A LISTED COMPANY"

• GPW is a responsible employer recruiting high-class specialists for all areas of the company's operations (14th out of 50 companies where employees work best in 2020, according to Tygodnik Wprost)
• Responsible policy of managing HR, payroll, social and bonus processes so that they meet business needs and support the implementation of the GPW strategy
• 4.2 -average training days per employee in 2020 vs. 4.0 - days per employee in 2019 vs.6.2 in 2018
• Programs dedicated to the GPW employees in the COVID-19 pandemic: remote work for about 90% of employees, flu vaccinations, vouchers for test whether employeeb s body has produced antibodies against SARS-CoV-2, home office funding (PLN 1,000 per employee)
• 37 online events in 2020, free webinars and conferences for investors and stock exchange issuers, attended by approx. 30 thousand. participants

• Participation in the creation of legal acts in the area of capital and commodity markets
• Fee for the Polish Financial Supervision Authority PLN 13.9 mn in 2020 vs. PLN 6.8 mn in 2019 vs. PLN 12.5 mn in 2018

• Transfer to the economy as tax paid: PLN 37.6 mn in 2020 vs. PLN 30.5 mn in 2019 vs. PLN 42.3 mn in 2018
• Reorganization of the debt market
• Enabling financing for enterprises
• Popularization of the capital market and long-term saving culture (also Employee Capital Plans)
• Education in the field of capital market functioning
• Support for Poland's economic development e.g. by the Polish Logistics Operator project