SALES REVENUE

The Group has three revenue-generating segments:

• financial market,
• commodity market,
• other revenues

Revenues from the financial market include revenues from:

• trading;
• listing;
• information services.

Trading revenue includes fees paid by market participants in respect of:

• transactions on markets of equities and equity-related instruments;
• transactions in derivative financial instruments;
• transactions in debt instruments;
• transactions in other cash market instruments;
• other fees paid by market participants.

Revenues from transactions in equities and equity-related securities are the Group’s main source of trading revenues and its main source of sales revenues in general.

Revenues from transactions in derivative financial instruments are the second biggest source of trading revenues on the financial market. Transactions in WIG20 index futures account for the majority of revenues from transactions in derivatives.

Revenues from other fees paid by market participants include mainly fees for services providing access to the trading system.

Revenues from transactions in debt instruments are generated by the Catalyst market as well as Treasury BondSpot Poland operated by the WSE’s subsidiary BondSpot S.A.

Revenues from transactions in other cash market instruments include fees for trading in structured products, investment certificates, warrants and ETF units.

Listing revenues include two segments:

• one-off fees paid by issuers for introduction of new shares and other instruments to trading on the exchange;
• periodic listing fees.

Revenues from information services mainly include fees paid by data vendors for real-time market data as well as historical and statistical data. Real-time data fees include fixed annual fees and monthly fees based on the data vendor’s number of subscribers and the scope of data feeds used by a subscriber.

Revenues of the Group in the commodity market segment include revenues of PolPX and WCCH, and revenues of WSEInfoEngine as a trade operator, an entity responsible for balancing, and for operation of the OTC commodity platform. Until the end of Q1 2013, the Group also earned revenues from the operation of the poee WSE Energy Market.

The commodity market segment includes the following sub-segments:

• trading,
• operation of the Register of Certificates of Origin of electricity,
• clearing.

Trading revenue on the commodity market includes:

• revenue from trading in electricity (spot and forward),
• revenue from trading in natural gas (spot and forward),
• revenue from trading in property rights,
• other fees paid by market participants (members).

Other fees paid by market participants include fees charged by PolPX, as well as revenues of WSEInfoEngine as a trade operator, an entity responsible for balancing, and for operation of the OTC commodity platform.

Revenues of the sub-segment “clearing” include revenues of the company WCCH, which clears and settles transactions concluded on PolPX, manages the resources of the clearing guarantee system and determines the amount of credits and debits of WCCH members resulting from their transactions.

The Group’s other revenues include revenues of Instytut Rynku Kapitałowego – WSE Research S.A., as well as revenues of WSE and the PolPX Group, among others, from educational services, office space lease, and sponsorship.

The Group’s sales revenues amounted to PLN 317.6 million in 2014, an increase of 11.9% (PLN 33.8 million) compared to 2013.

The year-on-year increase in revenues was driven mainly by an increase in revenues from the commodity market segment (by 50.6% or PLN 38.5 million), mainly from trading in property rights in certificates of origin, clearing, trading in gas, and operation of the register of certificates of origin. Revenues from the financial market decreased by 2.6% (PLN 5.3 million) mainly as a result of a decrease in revenues from trading in derivatives and a decrease in revenues from trading in equities.

Revenues from the financial market amounted to PLN 200.0 million in 2014 and PLN 205.3 million in 2013.

Revenues from the commodity market stood at PLN 114.5 million in 2014 and PLN 76.0 million in 2013, representing respectively 36.0% and 26.8% of the total revenue of the Group in the periods under review.

The revenues of the PolPX Group stood at PLN 114.0 million in 2014 and PLN 74.6 million in 2013. The revenues of BondSpot S.A. stood at PLN 12.2 million and PLN 12.5 million respectively in the periods under review.

Consolidated revenues of WSE Group and revenue structure, 2012-2014

The Group generates sales revenues both from Polish and foreign clients. The table below presents the quarterly and annual revenues by client category.

Consolidated revenues of WSE Group by geographical segment, 2012-2014

FINANCIAL MARKET

TRADING

The revenues of the Group from trading on the financial market in the year ended 31 December 2014 were PLN 137.8 million, a decrease of 6.8% (PLN 10.1 million) compared to PLN 147.9 million in 2013.

The share of trading revenues in the total revenues on the financial market was 68.9% in 2014 compared to 72.1% in 2013. The biggest share in trading revenues (86.6%) is that of revenues from the Main Market, which amounted to PLN 119.3 million in 2014 (a decrease of PLN 9.6 million year on year). The remaining share in the revenues is that of Treasury BondSpot Poland, NewConnect and Catalyst.

Equities and equity-related instruments

Revenues of the Group from trading in equities and equity-related instruments amounted to PLN 105.3 million in 2014, a decrease of 2.9% (PLN 3.1 million) year on year. The decrease was driven directly by a decrease in the total value of trading in equities on the Main Market.

The total value of trading in equities on the Main Market decreased by 9.1% in 2014 from PLN 256.1 billion in 2013 to PLN 232.9 billion in 2014, including a decrease in the value of the electronic order book by 6.7% (PLN 14.9 billion) and a decrease in the value of block trades by 23.4% (PLN 8.4 billion). The value of trading in equities on NewConnect (electronic order book and block trades) was PLN 1.43 billion in 2014, an increase of 17.1% year on year. The average trading value per session on the Main Market was PLN 824.8 million in 2014, a decrease of 7.5% year on year. The average trading value per session on the NewConnect market increased by 28.7% to PLN 4.9 million. The WIG20 index lost 3.5% in 2014 and stood at 2,315.94 points at the end of the year, compared to 2,400.98 points at the end of 2013. The total volume of trading was 19.5 billion shares in 2014 compared to 32.1 billion shares in 2013 and 33.8 billion shares in 2012. The average value of a transaction, measured as the total value of the electronic order book to the number of transactions per session, was PLN 14.9 thousand in 2014, less than in 2013 (PLN 17.2 thousand) and less than in 2012 (PLN 16.2 thousand).

The Group earned PLN 3.2 million of revenue from tender offers for qualifying holdings in 2014, compared to PLN 0.7 million in 2013. The high revenue in 2014 was mainly driven by tender offers for shares of Bank Gospodarski Żywnościowej S.A., Nordea Bank Polska S.A., Ciech S.A. and Rovese S.A.

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

Derivatives

Revenues of the Company from transactions in derivatives on the financial market amounted to PLN 14.8 million in 2014, a decrease of 30.1% (PLN 6.4 million) compared to 2013. The decrease in revenues was driven mainly by a 26.9% decrease in the volume of trading in WIG20 futures. The decrease in the volume of trading in WIG20 futures was due, among others, to replacement of futures with a multiplier of 10 by futures with a multiplier of 20 and low volatility of indices in 2014.

Consolidated revenues of WSE Group from trading in financial derivatives, the volume of trading

Other fees paid by market participants

Revenues of the Group from other fees paid by market participants were PLN 5.8 million in 2014, an increase of PLN 0.1 million compared to PLN 5.7 million in 2013. The fees mainly include fees for access to the trading system (among others, system use fees and maintenance fees). In Q2 2013, WSE replaced WARSET with the new trading system UTP, and the structure of the fees was modified.

Debt instruments

Revenues of the Group from transactions in debt instruments decreased by 5.8% year on year from PLN 12.3 million in 2013 to PLN 11.6 million in 2014, mainly due to a decrease in the value of cash transactions on TBSP by 5.6% from PLN 346.7 billion in 2013 to PLN 327.5 billion in 2014. The value of conditional transactions on TBSP was PLN 439.2 billion in 2014, a decrease of 11.8% compared to PLN 498.2 billion in 2013. The majority of the Group’s revenues from the debt instruments segment is generated by Treasury BondSpot Poland.

The value of trading on Catalyst amounted to PLN 3.1 billion in 2014 compared to PLN 4.3 billion in 2013. 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

Other cash market instruments

Revenues from transactions in other cash market instruments amounted to PLN 263 thousand in 2014, an increase of 41.4% compared to 2013. 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 24.0 million in 2014, an increase of 7.5% (PLN 1.7 million) compared to PLN 22.3 million in 2013.

Revenues from companies listed on the Main Market are the principal source of listing revenues and amounted to PLN 20.1 million in 2014 compared to PLN 2.5 million on NewConnect, and PLN 1.4 million on Catalyst.

Revenues from listing fees amounted to PLN 19.0 million in 2014, an increase of 10.9% (PLN 1.9 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 as well as other fees amounted to PLN 4.9 million in 2014, a decrease of 3.8% (PLN 0.2 million) compared to PLN 5.1 million in 2013. The revenues are driven mainly by the number and value of new listings on the WSE markets.

28 companies were newly listed on the Main Market in 2014, 5 more than in 2013. The total value of IPOs and SPOs was PLN 4.6 billion in 2014 compared to PLN 7.7 billion in 2013. The aggregate capitalisation of domestic and foreign companies was PLN 1,253.0 billion at the end of 2014 compared to PLN 840.8 billion at the end of 2013 (an increase of 49.0%). The capitalisation of the Main Market was driven by the IPO of Banco Santander S.A. at PLN 377 billion.

Consolidated listing revenue of WSE Group, Main Market

22 companies were newly listed on NewConnect in 2014, compared to 42 new listings in 2013. The total value of IPOs and SPOs was PLN 0.4 billion in 2014 compared to PLN 0.6 billion in 2013. The aggregate capitalisation of domestic and foreign companies listed on NewConnect was PLN 9.1 billion at the end of 2014 compared to PLN 11.0 billion at the end of 2013. The decrease of the capitalisation of NewConnect was driven mainly by the transfer of 10 companies with a total capitalisation of PLN 2.6 billion to the WSE Main Market.

Consolidated listing revenue of WSE Group, NewConnect

Catalyst listed debt bonds of 193 issuers (192 excluding the State Treasury) at the end of 2014 compared to 176 issuers (175 excluding the State Treasury) at the end of 2013. The total nominal value of debt instruments listed on Catalyst was PLN 544.6 billion at the end of 2014 compared to PLN 619.1 billion at the end of 2013, including the value of non-Treasury bonds at PLN 64.1 billion in 2014 and PLN 58.9 billion in 2013. The decrease in the value of issues on Catalyst was due to the transfer of Treasury securities at PLN 130.2 billion from open-ended pension funds (OFE) to the Social Security Institution (ZUS) on 3 February 2014.

Consolidated listing revenue of WSE Group, Catalyst

INFORMATION SERVICES

Revenues from information services amounted to PLN 38.2 million in 2014, an increase of 9.0% (PLN 3.1 million) compared to 2013.

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 increase in revenues from information services in 2014 was driven mainly by an increase in the number of subscribers of professional data feeds as well as a change in the structure of fees including an increase of certain fees.

Consolidated revenues of WSE Group from information services

COMMODITY MARKET

Revenues on the commodity market include revenues of the PolPX Group.

Revenues of the PolPX Group are driven mainly by the volume of transactions in electricity, natural gas and property rights, the volume of certificates of origin issued and cancelled by members of the Register of Certificates of Origin, as well as revenues from clearing and settlement of transactions in exchange commodities in the clearing sub-segment operated by WCCH.

Revenues of the WSE Group on the commodity market stood at PLN 114.5 million in 2014 compared to PLN 76.0 million in 2013.

The year-on-year increase in the revenues by 50.6% (PLN 38.5 million) in 2014 was largely driven by the increase in revenues from trading in property rights in certificates of origin, trading in gas, clearing, and operation of the register of certificates of origin.

The PolPX Group contributed to the revenues of the WSE Group its revenues from the commodity market at PLN 113.2 million in 2014, including PLN 14.5 million of revenues from spot and forward transactions in electricity, PLN 7.4 million of revenues from spot and forward transactions in natural gas, PLN 31.0 million of revenues from transactions in property rights in certificates of origin, PLN 6.0 million of other fees paid by market participants, PLN 22.5 million from the operation of the register of certificates of origin, PLN 31.9 million of revenues from clearing and settlement.

 TRADING

Trading revenues of the WSE Group on the commodity market amounted to PLN 60.1 million in 2014, including PLN 2.4 million of revenues from spot transactions in electricity, PLN 12.1 million of revenues from forward transactions in electricity, PLN 0.7 million of revenues from spot transactions in gas, PLN 6.7 million of revenues from forward transactions in gas, PLN 31.0 million of revenues from transactions in property rights in certificates of origin of electricity, and PLN 7.3 million of other fees paid by market participants.

Other fees paid by commodity market participants are mainly fees from market participants of PolPX as well as revenues of WSEInfoEngine acting as a trade operator and revenues of the poee WSE Energy Market in Q1 2013.

The Group’s revenues from trade in electricity amounted to PLN 14.5 million in 2014 compared to PLN 13.6 million in 2013. The total volume of trading on the energy markets operated by PolPX amounted to 186.7 TWh in 2014 compared to 177.0 TWh in 2013. The year-on-year increase of revenues from trading in electricity was a result of the higher volume of trading.

The Group’s revenues from trade in gas amounted to PLN 7.4 million in 2014 compared to PLN 0.1 million in 2013. The volume of trade in natural gas on PolPX was 111.6 TWh in 2014 and 2.4 TWh in 2013.

Revenues of the Group from transactions in property rights amounted to PLN 31.0 million in 2014 compared to PLN 19.1 million in 2013. The volume of transactions in property rights was 36.0 TWh in 2014, lower than in 2013 (39.3 TWh).

The volume of transactions in property rights in green certificates of origin of electricity was 32.1 TWh in 2014 compared to 21.8 TWh in 2013. Revenues from transactions in property rights in green certificates of origin of electricity represented respectively 97% and 82% of the total revenues of the Group from transactions in property rights.

The higher revenues from transactions in property rights in 2014 compared to 2013 were driven by higher volumes of trade in property rights in green certificates of origin as well as the expiration of promotion fees on transactions in property rights in green certificates of origin closed at a session (as of the end of 2013).

Revenues of the Group from other fees paid by commodity market participants amounted to PLN 7.3 million in 2014 compared to PLN 7.1 million in 2013. Other fees paid by commodity market participants included fees paid by PolPX market participants and revenues of WSEInfoEngine from the activity of trade operator.

Other fees paid by market participants are driven mainly by revenues from fixed market participation fees, fees for cancellation of transactions, fees for position transfers, fees for access to the system, and fees for management of the resources of the guarantee fund. Other fees paid by market participants depend mainly on the activity of WCCH Members, in particular the number of transactions, the number of new clients of brokerage houses, and the number of new users accessing the clearing system.

Consolidated trading revenue of WSE Group on the commodity market and the volume of trading

REGISTER OF CERTIFICATES OF ORIGIN

Revenues from the operation of the Register of Certificates of Origin amounted to PLN 22.5 million in 2014 compared to PLN 15.6 million in 2013. The increase in the revenues from the operation of the Register of Certificates of Origin was driven by a higher volume of property rights issued.

Consolidated revenue of WSE Group from operation of the Register of Certificates of Origin of electricity, volume of issued and cancelled property rights

CLEARING

The Group earns revenues from the clearing activities of WCCH, which is a subsidiary of PolPX. The revenues stood at PLN 31.9 million in 2014 compared to PLN 20.5 million in 2013.

The year-on-year increase in the revenue in 2014 was mainly driven by higher volumes of trading in the gas and certificates of origin markets organised by PolPX.

OTHER REVENUES

The Group’s other revenues amounted to PLN 3.1 million in 2014 compared to PLN 2.5 million in 2013. The Group’s other revenues include revenues from educational and PR services, office space lease, and sponsorship.

OPERATING EXPENSES

Total operating expenses of the Group amounted to PLN 181.6 million in 2014, an increase of 9.3% (PLN 15.4 million) compared to PLN 166.2 million in 2013. Depreciation and amortisation, salaries and other employee costs, external service charges, fees and charges increased while other operating expenses as well as rent and other maintenance fees decreased in 2014.

Operating expenses of the PolPX Group and BondSpot S.A. amounted to PLN 34.8 million and PLN 8.8 million in 2014 and PLN 27.6 million and PLN 9.0 million, respectively, in 2013.

Consolidated operating expenses of WSE Group and structure of operating expenses

The Group is not dependent on any single supplier or service provider as the expenses of the Group per contractor (other than fees to PFSA) never exceed 10% of the Group’s total expenses.

Depreciation and amortisation

Depreciation and amortisation was PLN 28.8 million in 2014, an increase of 11.8% (PLN 3.0 million) compared to PLN 25.7 million in 2013. The increase in depreciation and amortisation in 2014 compared to 2013 was mainly driven by the implementation of WSE’s new trading system UTP: the additional depreciation and amortisation charges were incurred in nine months of 2013 and twelve months of 2014. The increase in depreciation and amortisation of PolPX by PLN 0.7 million was due to a one-off cancellation of the Oracle licence and increased amortisation of the clearing system licence.

Salaries and other employee costs

Salaries and other employee costs of the Group amounted to PLN 69.5 million in 2014, an increase of 8.6% (PLN 5.5 million) compared to PLN 64.0 million in 2013.

Salaries and other employee costs in the period under review were mainly driven by the following factors:

• One-off events:
  - reorganisation severance pay to reduced employees of WSE (PLN 0.7 million). Workforce reorganisation affected 10 employees in 2014;
  - changes on the WSE Management Board and the related no-compete clause (PLN 0.7 million) and holiday pay (PLN 0.5 million);
  - additional provisions set up against retirement benefits in WSE (PLN 0.3 million);
  - salaries and other employee costs of BondSpot decreased by PLN 0.5 million due to released provisions against disputes with the former Management Board.
• Costs related to the growth of WSE Group:
  - increase of the headcount of PolPX by 15 persons and WCCH by 6 persons in 2014 due to the dynamic growth of the companies (increase by PLN 1.6 million);
  - discretionary bonuses for 2014 paid in PolPX Group (PLN 0.9 million);
  - increase of salaries and other employee costs by PLN 0.7 million related to the activity of the companies Institute of Analysis and Rating and WSE Services;

Employment in WSE Group

Rent and other maintenance fees

Rent and other maintenance fees of the Group amounted to PLN 10.3 million in 2014, a decrease of 2.8% (PLN 0.3 million) compared to 2013. The decrease was caused by a lower cost of rent of server and IT infrastructure space.

Fees and charges

Fees and charges stood at PLN 22.4 million in 2014, an increase of 7.8% (PLN 1.6 million) compared to 2013. The main component of the Group’s fees and charges are fees paid by WSE to the Polish Financial Supervision Authority (PFSA), which stood at PLN 21.1 million in 2014 and PLN 18.2 million in 2013. The total increase of fees and charges is lower than the increase in PFSA charges due to recognised VAT tax correction in WSE, which decreased costs by PLN 1.3 million.

According to a PFSA letter received in January 2015, which sets the amount of advance fees to be paid to the regulator by entities operating on the capital market, WSE fees will be PLN 5.55 million in each of Q1 and Q2 2015.

External service charges

External service charges of the Group amounted to PLN 42.0 million in 2014, an increase of 15.8% (PLN 5.7 million) compared to 2013.

The increase of external service charges in 2014 was driven by the following factors:

• increase of the cost of promotion, education and market development by PLN 2.9 million due to higher promotion costs of PolPX (by PLN 1.6 million) following the movement of the cost of advertising from other operating expenses to external service charges (PLN 1.1 million) as well as conference costs (PLN 0.5 million), higher promotion costs of WSE (by PLN 1.1 million) due to the organised celebrations of the 25^th anniversary of free Poland, and higher costs of promotion of BondSpot (by PLN 0.1 million);
• increase of the cost of advisory by PLN 2.3 million due to higher costs of advisory of WSE (by PLN 1.6 million) related to projects implemented by WSE (including negotiations with the Vienna Stock Exchange, investment in the Aquis trading platform) and higher costs of advisory of PolPX (by PLN 0.6 million) due to implemented development projects;
• increase of the maintenance cost of plant, property and equipment as well as intangible assets related, among others, to the refurbishment and modernisation of PolPX offices (PLN 0.8 million);
• increase of the maintenance cost of the TBSP market (by PLN 0.3 million).

At the same time, the cost of legal services decreased by PLN 0.6 million and the cost of software modifications decreased by PLN 0.5 million in 2014.

The cost of WSE’s sponsorship was PLN 0.98 million in 2014 compared to PLN 0.45 million in 2013. The cost of sponsorship is a part of the cost of promotion, education and market development.

Other operating expenses

Other operating expenses of the Group amounted to PLN 8.7 million in 2014, a decrease of 2.5% compared to PLN 8.9 million in 2013. Other operating expenses in 2014 compared to 2013 were driven mainly by recognised impairment losses on goodwill of WSEInfoEngine S.A. at PLN 1,311 thousand and impairment losses on assets of Instytut Rynku Kapitałowego – WSE Research S.A. at PLN 366 thousand. WSE’s lower costs of acquired software and electricity bills, which are part of the costs of materials and electricity. The PolPX Group contributed PLN 2.4 million in 2014 and PLN 2.7 million in 2013 to the costs of the Group.

Other operating expenses mainly included costs of materials and electricity, business travel, professional organisation fees, property insurance and conferences.

OTHER INCOME AND EXPENSES

Other income of the Group amounted to PLN 1.3 million and other expenses amounted to PLN 1.9 million in 2014, as compared to PLN 3.2 million and PLN 2.1 million, respectively, in 2013.

Other income in the periods under review was driven mainly by the following factors:

• lower other income of WSE in 2014 (a decrease of PLN 1.0 million) due to relatively high income in 2013 including mainly PLN 1.0 million of debt enforced from clients in respect of information services;
• lower other income of PolPX in 2014 (a decrease of PLN 1.0 million) due to relatively high income in 2013 including an adjustment of the VAT sale ratio for 2012 applied by the PolPX Group to deduct VAT accrued on purchase invoices.

Other expenses in 2014 mainly included: a write-down of WSE receivables, as well as a loss on the sale of plant, property and equipment related to the sale of a licence to a subsidiary (WSE Services). The Group paid the cost of donations at PLN 115 thousand, compared to PLN 112 thousand expensed in 2013.

FINANCIAL INCOME AND EXPENSES

Financial income of the Group amounted to PLN 10.4 million in 2014, a decrease of PLN 0.6 million compared to PLN 10.9 million in 2013.

Financial income mainly includes interest on bank deposits, financial income from investments in Treasury bonds and a surplus of positive fx differences. Interest income from bank deposits amounted to PLN 9.2 million in 2014 and PLN 8.7 million in 2013. Financial income from held Treasury bonds amounted to PLN 0.6 million in 2014 and PLN 0.6 million in 2013. The fx differences balance was positive in 2014 and 2013 and it was recognised under financial income in the amount of PLN 0.3 million and PLN 0.9 million, respectively.

The Group’s total financial expenses were PLN 10.4 million in 2014 compared to PLN 12.2 million in 2013. The expenses were lower in 2014 mainly due to the interest cost of debt service in respect of a bond issue, which amounted to PLN 9.5 million in 2014 compared to PLN 11.2 million in 2013. In December 2011 and February 2012, WSE issued bonds with a total nominal value of PLN 245.0 million. The bonds of both series are due for redemption on 2 January 2017. The bonds bear interest at a floating rate equal to WIBOR 6M + 1.17%, interest is paid semi-annually.

The total cost of the bond offering was PLN 2.2 million and it was recognised in prepayments, reducing the Company’s financial expenses on a straight-line basis from the issue date of series A bonds (23 December 2011) until the redemption date of series A and B bonds (2 January 2017). The prepayments reduce the Company’s bond issue liabilities. The cost of the offering added PLN 0.5 million to the financial expenses of the Group in 2014 and PLN 0.5 million in 2013.

As of 1 January 2012, WSE applies hedge accounting. As at the end of December 2014, hedging covered cash flows under the agreement concerning the acquisition and delivery of a new trading system (UTP-Derivatives). The Company decided to designate cash held in euro for the above purpose as a hedging instrument. As of 1 January 2012, fx differences on the balance sheet valuation of such cash are recognised in equity instead of financial income or expenses. The fx differences recognised in equity were positive at PLN 0.2 million in 2014 and PLN 3.1 million in 2013.

SHARE OF PROFIT OF ASSOCIATES

The Group’s share of profit of associates amounted to PLN 3.7 million in 2014, a decrease of 70.0% compared to PLN 12.5 million in 2013. The lower profit was driven mainly by the net loss of Aquis Exchange Limited at PLN 22.2 million in 2014.

Aquis Exchange Limited became an associate upon WSE’s acquisition of the second tranche of shares in February 2014. From 18 February to 31 December 2014, Aquis Exchange Ltd contributed a loss of PLN 6.7 million to the Group’s results under share of profit of associates.

The profit of the KDPW Group was PLN 30.0 million in 2014 compared to PLN 36.1 million in 2013.  The decrease in net profit of KDPW Group is the result of higher operating costs and higher effective tax rate compared to 2013.

The net profit of Centrum Giełdowe was PLN 1.5 million in 2014 compared to PLN 1.9 million in 2013. The significant volatility of the profit of Centrum Giełdowe year on year results mainly from fx differences and derives from the payment amounts and dates of the company’s US$ denominated loan.

Profit / (Loss) of associates

WSE's share of profit / (loss) of associates

INCOME TAX

The Group’s effective income tax rate was 19.3% in 2014 and 12.5% in 2013, compared to the standard Polish corporate income tax rate of 19%. Income tax was PLN 26.8 million in 2014 compared to PLN 16.3 million in 2013. The low tax rate of 2013 was influenced by recognised tax relief for new technologies (PLN 7.0 million).

Income tax paid by the Group was PLN 15.2 million in 2014 compared to PLN 19.8 million in 2013. WSE accounted for income tax under the general rules in 2014 and in 2013. WSE reported a tax credit of PLN 8.4 million at the end of 2014, which is expected to be cleared in the coming years.