Integrated Report
2020

Key highlights of GPW

Diversified business profile

Core Exchange related and IT services; Attractive dividend (2021e: 5.4% DY)

One of the EU’s most dynamic IPO venues, and CEE IPO hub

Leading growth sectors include eCommerce and Video Games. Recent main market IPOs include:

  • Allegro: EUR 2.1 bn (PLN 9.2 bn)
  • Huuuge: EUR 372 mn (PLN 1.67 bn)
  • PCF Group: EUR 45 mn (PLN 203 mn)
Diversified market participant base
  • Local investors (19%)
  • International investors (56%)
  • Retail investors (25%)
Strongly committed to ESG

with WIG-ESG index and ESG Guidelines for issuers (May 2021)

Operator of Central and Eastern Europe’s largest Equities, Derivatives, Commodities and Agricultural exchange

GPW accounts for 95% of equity trading in Polish equities

Ample growth opportunities

New products (ETFs, structured products, etc.), own trading platform, new IT services

GPW Group milestones
in 2020

Products

  • New listing of WIG20levBeta ETF: seventh ETF listed on GPW and fourth Beta ETF
  • Futures on shares of Biomed-Lublin, Mercator, XTB and Allegro.eu
  • More than 2.1 thousand listed structured instruments
  • GPW and BondSpot initiated simplification of the Catalyst market

Technology

  • GPW Tech product development: trading system, TCA Tool, GRC, index calculator
  • Completed architecture of the new trading system
  • Colocation service - one new client
  • NCBR co-financing for a token trading platform (Private Market)

Relations

  • Analytical Coverage Support Programme – expansion from 39 to 51 participants
  • New edition of GPW Growth
  • First "virtual roadshow" with global investors
  • Participation in working groups on the Capital Market Development Strategy (SRRK)
  • GPW analyses acquisition of the Armenia Stock Exchange

Products

  • Opening of the Agricultural Market (wheat, rye, maize)
  • GPW Ventures and KOWR signed a Memorandum of Understanding to establish the KOWR Ventures Fund
  • TGE renewed its Nominated Electricity Market Operator (NEMO) status for another 4 years

Technology

  • Alignment of TGE and IRGiT IT systems with the needs of the Agricultural Market
  • TGE forward instrument markets transformed into an organised trading facility (OTF)

Relations

  • Agricultural Market: three brokers and 39 authorised warehouses, another 28 pending authorisation
  • Continued development of the secondary capacity market

Products

  • GPW Benchmark was authorised by PFSA as administrator of interest-rate benchmarks
  • New total return index WIGtechTR
  • Analytical Coverage Support Programme reports distributed by Refinitiv
  • Publication of the new Bondspot information services policy

Technology

  • GPW Data project milestones reached (NCBR co-financing)

Relations

  • 28 new clients of GPW Group members’ information services

Finance in 2020

Revenue
403,8 million PLN in 2020
EBITDA
224,6 million PLN in 2020
Net profit
151,4 million PLN in 2020
Dividend
104,9 million PLN in 2020
Capitalization of companies
1068,7 million PLN
Companies
806 companies
Electricity trading volume
243 TWh
Total trading volume in natural gas markets
151 TWh

Letter from the President of the Management Board

Marek Dietl President of GPW

Dear Sir or Madam, Dear Shareholder, Dear Investor,

I am proud to present you the integrated annual report of the GPW Group prepared according to the International Integrated Reporting Framework standards developed by the International Integrated Reporting Council – IIRC.

Focusing on key issues related to the GPW Group's activity including resources, business model, strategy and achievements, viewed from the perspective of the external environment and anticipated macroeconomic trends, this report aims to reveal how the value for our stakeholders has been created.

I believe that our report will meet your expectations in terms of reliable, useful and user friendly information, and the experience gained while developing the report will allow us, as the largest stock exchange in the region and the strong player in Europe, to shape our own approach to integrated reporting.

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Izabela
Olszewska
Member of the WSE Management Board

Piotr
Borowski
Member of the WSE Management Board

Dariusz
Kułakowski
Member of the WSE Management Board

Stock market

  • Securities Lending System
  • Trading Platform
  • GPW Growth

Debt market

  • BondSpot Development
  • Polish Rating Agency (PAR)

Dervatives market

  • Derivatives Development

Commodity market

  • Organised Trading Facility (OTF)
  • Agricultural Commodity Market

Information products

  • GPW Data
  • GPW TCA TOOL
  • GPW Benchmark development

New business lines

  • GPW Private Market
  • GPW Ventures
  • GPW Tech
Revenue
470 mn PLN in 2022
EBITDA
250 mn PLN in 2022
ROE
19 ultimately in 2022
Cost/Income
50 C/I ratio after 2022 below
Dividend
60 no less than

Who we are

The Warsaw Stock Exchange Group (GPW Group) operates trading platforms for shares, Treasury and corporate bonds, derivatives, electricity and gas, and provides indices and benchmarks including WIBOR and WIBID.

The index agent FTSE Russell classifies the Polish capital market as a Developed Market since 2018.

The markets operated by the GPW Group are the biggest in Central and Eastern Europe.

Listed companies

ability to raise capital for development

Investors

wide range of investment opportunities

Society

impact on the development of the Polish economy and financial education of society

GPW Group

market reliability
European regulations and Polish regulations under the supervision of the PFSA
attractive product offer
broad investor base
Dialogue with stakeholders Impact on the natural environment GPW Foundation CSR strategy of the GPW Group

Social
Responsibility

CSR strategy of the GPW Group

Warsaw Stock Exchange S.A. and companies belonging to the GPW Group conduct their operating activities taking into account not only the highest business standards but also social, ethical and environmental issues.

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GPW Foundation

Educational activity is one of the foundations of building trust in the capital market and entities operating on it. In carrying out its mission, the Warsaw Stock Exchange S.A. has for many years been conducting educational activities targeted at young people, investors and capital market professionals.

In search of an appropriate tool to increase the reach and effectiveness of implemented initiatives, companies belonging to the GPW Group established the GPW Foundation in 2015.

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Dialogue with stakeholders

In line with the assumptions of the CSR strategy, one of the basic goals of the GPW Group is to shape the corporate culture and appropriate attitudes of participants in the capital and commodity markets in Poland based on high standards of corporate and communication governance.

This goal is achieved through activities carried out in cooperation and dialogue with stakeholders of the capital and commodity market.

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Impact on the natural environment

A uniform environmental policy is in place in all companies of the GPW Group, aimed at reducing the environmental impact of the companies' activities and operations and building environmental awareness among the Group's employees.

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COVID-19

The GPW Group's governance and Social Responsibility during the SARS-CoV-2 pandemic

Following the SARS-CoV-2 pandemic announced by the WHO, the GPW Management Board and the Management Boards of the subsidiaries faced the challenge of aligning the operation of the companies and their work systems with the new conditions. Despite the pandemic in 2020, the Company’s effective process management continued without interruption to address business needs and support the implementation of the GPW Group strategy.

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