Trading

The revenues of the Group from trading on the financial market in the year ended 31 December 2013 were PLN 147.9 million, a modest decrease of 1.5% (PLN 2.2 million) compared to PLN 150.1 million in 2012.

The share of trading revenues in the total revenues on the financial market was 72.1% in 2013, which was stable year on year. The biggest share in trading revenues (87.2%) is that of revenues from the Main Market, which amounted to PLN 129.0 million in 2013 (an increase of PLN 2.4 million year on year). The remaining share in the revenues is that of Treasury BondSpot Poland, NewConnect and Catalyst.

Quarterly trading revenues on the financial market amounted to PLN 36.4 million in Q4 2013, an increase of 2.0% (PLN 0.7 million) compared to PLN 35.7 million in Q3 2013 and an increase of 2.6% (PLN 0.9 million) compared to Q4 2012. The increase in revenues on the financial market compared to Q3 2013 was driven mainly by higher revenues from trading in equities. The increase in revenues compared to Q4 2012 was driven by an increase of revenues from trading on the equities market combined with a decrease of revenues from trading in derivatives and in debt instruments (on Treasury BondSpot Poland).

Equities and equity-related instruments

Revenues of the Group from trading in equities and equity-related instruments amounted to PLN 108.4 million in 2013, an increase of 7.2% (PLN 7.3 million) year on year. The increase was driven directly by the 26.2% increase in the total value of trading in equities on the Main Market.

The total value of trading in equities on the Main Market increased by 26.2% in 2013 from PLN 202.9 billion in 2012 to PLN 256.2 billion in 2013. Furthermore, the number of session transactions on the Main Market increased by 17.3% from 11.6 million in 2012 to 12.8 million in 2013. The value of trading in equities on NewConnect (session and block trades) was PLN 1.23 billion in 2013, a decrease of 6.0% year on year. The average trading value per session on the Main Market was PLN 891.3 million in 2013, an increase of 18.3% year on year. The average trading value per session on the NewConnect market decreased by 17.0% to PLN 3.8 million. The WIG30 index lost 1.8% in 2013 and stood at 2,537.53 points at the end of the year, compared to 2,582.98 points at the end of 2012.

The Group earned PLN 0.7 million of revenue from tender offers for material share packages in 2013, compared to PLN 2.9 million in 2012. The high revenue in 2012 was mainly driven by tender offers for shares of Towarzystwo Ubezpieczeń Europa S.A., Mondi Świecie S.A., Bank Gospodarki Żywnościowej S.A. and Zakłady Azotowe w Tarnowie-Mościcach S.A.

Quarterly revenues from transactions in equities and equity-related instruments amounted to PLN 27.5 million in Q4 2013, an increase of 5.5% (PLN 1.4 million) compared to Q3 2013 and an increase of 12.0% (PLN 3.0 million) compared to Q4 2012.

The change in revenues in Q4 2013 compared to Q4 2012 was impacted by the following factors:

• a 20.9% increase in the value of session trading in equities on the Main Market;
• modifications of the WSE price list as of 1 January 2013 (including a reduction of the fixed fee on an executed order from PLN 1.0 to PLN 0.2);
• termination of an anti-crisis promotion in 2012.

The main operating statistics of trading in equities on the Main Market in the quarters under review were as follows:

• the value of session and block trades in Q4 2013, Q3 2013 and Q4 2012 was PLN 62.4 billion, PLN 61.6 billion and PLN 47.8 billion, respectively (including block trades at PLN 7.6 billion, PLN 8.0 billion and PLN 2.5 billion, respectively);
• the total volume of trading was 8.2 billion shares in Q4 2013 compared to 7.9 billion shares in Q3 2013 and 8.6 billion shares in Q4 2012;
• the average value of a transaction, measured as the total value of session trading to the number of session transactions, was PLN 15.7 thousand in Q4 2013, less than in Q3 2013 (PLN 16.1 thousand) and less than in Q4 2012 (PLN 16.4 thousand);

Consolidated revenues of WSE Group from trading in equities and equity-related instruments, the value and volume of trading in equities and equity-related instruments in 2012 and 2013 and in selected quarters of 2012 and 2013

The value of trading in equities on NewConnect (session and block trades) was PLN 408 million in Q4 2013, an increase of 26.8% compared to Q3 2013 and an increase of 38.7% compared to Q4 2012.

Derivatives

Revenues of the Company from transactions in derivatives on the financial market amounted to PLN 21.2 million in 2013, a decrease of 21.3% (PLN 5.7 million) compared to 2012. The decrease in revenues was driven mainly by:

• a 9.0% decrease in trading in WIG20 futures;
• a modification of the price list for trading in derivatives as of 1 January 2013 including the introduction of day trading and a reduction of fees for index futures from PLN 1.7 to PLN 1.6.

Revenues from transactions in derivatives amounted to PLN 4.8 million in Q4 2013, a decrease of 12.1% compared to Q3 2013 and a decrease of 16.1% compared to Q4 2012. The results were driven by a decrease in the volume of WIG20 futures, which was 10.1% lower in Q4 2013 than in Q3 2013. In addition to the decrease in the volume of WIG20 index futures (by 2.4%), the decrease in revenues in Q4 2013 compared to Q4 2012 was also driven by the introduction of day trading and the modification of the price list including the reduction of fees for index futures.

Consolidated revenues of WSE Group from trading in financial derivatives, the volume of trading in financial derivatives in 2012 and 2013 and in selected quarters of 2012 and 2013

On 23 September 2013, WSE started to calculate and publish the indices WIG30 (price index) and WIG30TR (total return index, including dividend and subscription rights income) with portfolios comprised of the 30 biggest and most liquid stocks listed on WSE. WIG30 will eventually replace WIG20. Both indices will be published in parallel until the end of 2015. WSE expects that a broader group of listed companies included in the blue-chip index will increase the interest of investors in their stock and consequently improve their liquidity. The introduction of a new WSE blue-chip index also implies modifications to existing index-based derivatives. WIG30 will be the underlying of new futures and options, and it will eventually replace the currently listed WIG20 futures and options. The migration from the currently listed derivatives to the new derivatives will begin in late 2014 and includes parallel listing of WIG20 derivatives and WIG30 derivatives for 9 months. According to the timeline, the migration to the new derivatives will be completed by September 2015 at the latest.

On 23 September 2013, WSE introduced into trading WIG20 futures with a multiplier of PLN 20. The WIG20 futures with a PLN 20 multiplier will eventually replace the currently listed instruments. The migration to the new contracts will be completed by 20 June 2014. The process may take less time if there is no open interest in any of the last series of futures with a PLN 10 multiplier; in that case, trading in such series will be suspended.

On 18 October 2013, the Company introduced into trading futures on the WIBOR reference rates and futures on short-term, mid-term and long-term Treasury bonds.

Other fees paid by market participants

Revenues of the Company from other fees paid by market participants were PLN 5.7 million in 2013, a decrease of PLN 1.1 million compared to PLN 6.9 million in 2012. The fees mainly incudes fees for access to the trading system (among others connection fees and maintenance fees). In Q2 2013, WSE replaced WARSET with the new trading system UTP, and the structure of the fees was modified.

Quarterly revenues from other fees paid by market participants amounted to ca. PLN 1.4 million both in Q4 and Q3 2013 compared to PLN 1.7 million in Q4 2012.

Debt instruments

Revenues of the Group from transactions in debt instruments decreased by 17.5% year on year from PLN 15.0 million in 2012 to PLN 12.3 million in 2013, mainly due to a decrease in the value of cash transactions on TBSP by 22.9% from PLN 449.6 billion in 2012 to PLN 346.7 billion in 2013. The value of conditional transactions on TBSP was PLN 498.2 billion in 2013, a decrease of 18.6% compared to PLN 612.1 billion in 2012. The majority of the Group’s revenues from the debt instruments segment is generated by Treasury BondSpot Poland.

Revenues of the Group in the debt instruments sub-segment stood at PLN 2.7 million in Q4 2013, a decrease of 4.0% (PLN 0.1 million) compared to Q3 2013 and a decrease of 23.9% (PLN 0.8 million) compared to Q4 2012.

Trading on TBSP in Q4 2013 stood at PLN 144.1 billion of conditional transactions and PLN 57.0 billion of cash transactions, an increase of 65.9% for conditional transactions and a decrease of 18.6% for cash transactions compared to Q3 2013 and a decrease of 10.7% and 37.9% respectively compared to Q4 2012.

The activity of market participants in 2013 was mainly influenced by market factors which had a direct impact on bond prices on the market. The local bond market was driven by global capital flows resulting from actions of the major central banks aiming to stimulate economic growth. The value of trading on the bond market was largely influenced by modifications to the pension system. The announced plans of changes to the operating framework of open-ended pension funds limited the transactional activity of this group of institutional investors, which also had an impact on the turnover in the interbank segment. Furthermore, in the second half of the year, the Ministry of Finance largely limited issues on the primary market, which also had an adverse impact on the value of trading on the secondary market.

The value of trading on Catalyst amounted to PLN 0.8 billion in Q4 2013, PLN 0.6 billion in Q3 2013 and PLN 0.7 billion in Q4 2012. Revenues from the Catalyst market have a small share in total revenues from transactions in debt instruments.

Consolidated revenues of WSE Group from trading in debt instruments, the value of trading in debt instruments in 2012 and 2013 and in selected quarters of 2012 and 2013

Other cash market instruments

Revenues from transactions in other cash market instruments amounted to PLN 0.19 million in 2013, an increase of 10.4% compared to 2012. Revenues from other cash market instruments amounted to ca. PLN 0.05 million both in Q3 and Q4 2013 compared to PLN 0.03 million in Q4 2012. The revenues include fees for trading in structured products, investment certificates, ETF units and warrants.

Listing

Listing revenues of the Group on the financial market amounted to PLN 22.3 million in 2013, an increase of 3.5% (PLN 0.8 million) compared to PLN 21.5 million in 2012.

Revenues from companies listed on the Main Market are the principal source of listing revenues. Listing revenues in 2013 amounted to PLN 18.7 million on the Main Market, PLN 2.7 million on NewConnect, and PLN 0.9 million on Catalyst.

Revenues from listing fees amounted to PLN 17.2 million in 2013, an increase of 4.0% (PLN 0.7 million) year on year. The main driver of revenues from listing fees is the number of issuers listed on the WSE markets and their capitalisation at the year’s end. Fees for introduction and admission as well as other fees amounted to PLN 5.1 million in 2013, an increase of 1.7% (PLN 0.1 million) compared to PLN 5.0 million in 2012. The revenues are driven mainly by the number and value of new listings on the WSE markets.

Quarterly listing revenues amounted to PLN 5.7 million in Q4 2013, an increase of 8.9% (PLN 0.5 million) compared to Q3 2013 and an increase of 3.6% (PLN 0.2 million) compared to Q4 2012. The increase of revenues in Q4 2013 compared to Q3 2013 was driven by a higher number of new listings and a nearly 12-fold increase on the value of offerings on the Main Market, which is reflected in higher revenues from fees for introduction and admission to trading.

Revenues from listing fees were PLN 4.2 million in Q4 2013, as compared to PLN 4.3 million in Q3 2013 and PLN 4.1 million in Q4 2012.

Revenues from fees for admission and introduction to trading and other fees amounted to PLN 1.5 million in Q4 2013, an increase of 54.0% (PLN 0.5 million) compared to the revenues in Q3 2013 and an increase of 6.1% (PLN 0.1 million) compared to the revenues in Q4 2012. The increase of the revenues in Q4 2013 was mainly driven by the IPOs of Energa S.A., PKP Cargo S.A. and Newag S.A. in Q4 2013.

23 companies were newly listed on the Main Market in 2013, 4 more than in 2012. The total value of IPOs and SPOs was PLN 7.7 billion in 2013 compared to PLN 7.3 billion in 2012. The aggregate capitalisation of domestic and foreign companies was PLN 840.8 billion at the end of 2013 compared to PLN 734.1 billion at the end of 2012 (an increase of 14.5%).

9 companies were newly listed on the Main Market and the total value of IPOs and SPOs was PLN 4.8 billion in Q4 2013, compared to 4 new listings worth PLN 0.4 billion in Q3 2013 and 7 new listings worth PLN 3.5 billion in Q4 2012. There were 450 companies listed on the Main Market and their total capitalisation was PLN 840.8 billion at the end of Q4 2013, compared to 443 companies worth PLN 810.6 billion at the end of Q3 2013 and 438 companies worth PLN 743.1 billion at the end of Q4 2012. The value of SPOs was PLN 0.2 billion in Q4 2013, a decrease of PLN 0.1 billion compared to Q3 2013. The value of IPOs was PLN 4.6 billion in Q4 2013 (including the public offering of Energa S.A. worth PLN 2.4 billion and that of PKP Cargo S.A. worth PLN 1.4 billion). The IPO of Energa S.A. was the biggest public offering in CEE in 2013.

Consolidated listing revenue of WSE Group, market capitalisation, number of listed companies, number and capitalisation of new listings, value of IPOs and SPOs, number and value of delistings on the Main Market in 2012 and 2013 and in selected quarters of

42 companies were newly listed on NewConnect in 2013, compared to 89 new listings in 2012. The aggregate capitalisation of domestic and foreign companies listed on NewConnect was PLN 11.0 billion at the end of 2013 compared to PLN 11.1 billion at the end of 2012.

6 companies were newly listed on NewConnect and the total value of IPOs and SPOs was PLN 0.2 billion in Q4 2013, compared to 8 new listings worth PLN 0.2 billion in Q3 2013 and 16 new listings worth PLN 0.2 billion in Q4 2012. There were 445 companies listed on NewConnect and their total capitalisation was PLN 11.0 billion at the end of Q4 2013, compared to 445 companies worth PLN 10.8 billion at the end of Q3 2013 and 429 companies worth PLN 11.1 billion at the end of Q4 2012.

Consolidated listing revenue of WSE Group, market capitalisation, number of listed companies, number and capitalisation of new listings, value of IPOs and SPOs, number and value of delistings on NewConnect in 2012 and 2013 and in selected quarters of 2012

The number of issuers and the value of issues on the Catalyst market operated by WSE and BondSpot grew dynamically in the period under review. Catalyst listed debt instruments of 176 issuers (including the State Treasury) at the end of 2013 compared to 156 issuers at the end of 2012. The total nominal value of issued instruments was PLN 619.1 billion at the end of 2013 compared to PLN 567.3 billion at the end of 2012, including the value of non-Treasury instruments at PLN 58.9 billion and PLN 52.3 billion, respectively.

Consolidated listing revenue of WSE Group, number of issuers, number of issued instruments, value of issued instruments on Catalyst in 2012 and 2013 and in selected quarters of 2012 and 2013

Information services

Revenues from information services amounted to PLN 35.1 million in 2013, a decrease of 3.9% (PLN 1.4 million) compared to 2012. Revenues from information services amounted to PLN 9.4 million in Q4 2013 compared to PLN 8.5 million in Q3 2013 and PLN 8.9 million in Q4 2012. The increase in Q4 2013 was mainly driven by one-off fees for exchange services booked in December 2013 (PLN 0.5 million).

Revenues from information services in the periods under review were driven among others by the number of data vendors and subscribers. The year-on-year decrease in revenues from information services in 2013 was driven mainly by a decrease in the number of subscribers of professional data feeds.

Consolidated revenues of WSE Group from information services, number of data vendors and subscribers in 2012 and 2013 and in selected quarters of 2012 and 2013