Human
Capital

Human capital is understood as the competences, abilities and experience of employees, as well as their motivation to create innovation, including:

• implementation of GPW Group strategy,
• employee loyalty and motivation in implementing new products,
• low staff turnover,
• highly qualified (85% of staff was tertiary education),
• experienced Management Board.

Our results achieved on human capital:

• employment 363 employees in 2018 r. vs. 341 in 2017
• staff turnover 10% in 2018 vs. 16% in 2017
• total employee costs PLN 68.8 mn in 2018 vs. PLN 62.8 mn in 2017
• employee access to additional benefits

Recipients of the value creation process

The GPW Group's employees ensure its efficient and effective functioning, performing business functions and implementing strategic development plans. Human capital is a key element of GPW Group activities related to value creation, which is why the generated value applies to all groups of our stakeholders.

How we try to maintain value

GPW Group employees have unique qualifications and experience connected with the capital market. Our HR policy focuses on investing in continuous development and shaping the corporate culture, based on values ​​and effective internal communication. We support development and educational programs, we support employees in achieving their professional ambitions.

Intellectual
and Physical Capital

The intellectual and physical capital of the GPW Group consists of knowledge-based intangible and organizational resources, including:

• the GPW brand and its subsidiaries and associates,
• internal procedures,
• software used in current operations,
• websites belonging to the GPW Group,
• 56 GPW Exchange Members in 2018 vs. 53 in 2017,
• 78 TGE Exchange Members in 2018 vs. 72 in 2017 r.,
• Trading systems used in GPW Group,
• IT infrastructure,
• Capital expenditure: PLN 21.2 mn in 2018 (including PLN 13.0 mn expenditure for tangible assets and PLN 8.3 mn expenditure for intangible assets) vs. PLN 22.7 mn in 2017 (including PLN 10.3 mn expenditure for tangible assets and PLN 12.4 mn expenditure for intangible assets).

The GPW brand developed over the years of activity, as well as the internal procedures developed, information products, services and databases, form the intellectual foundation of an effective capital market in Poland.

Our results achieved on intellectual and physical capital:

• Three new indexes:  WIG20dvp, mWIG40dvp oraz sWIG80dvp
• Start work on using Blockchain technology
• Start work on the agricultural commodities market
• Start work on Polish Rating Agency
• Participation in creating the Capital Market Development Strategy
• Participation in creating and issuing opinions on legislation for the capital and commodity market in Poland
• GPW awarded „Transparent Company of the year” belonging to the mWIG40 Index, for the second year in a row
• 100% reliability of the trading systems
• The first full year of using and amortization of new systems: X-Stream and Sapri
• Share of HVP and HVF participants in trading in shares at 9.3% in 2018 vs. 7.4% in 2017
• Number of reported transaction on TGE markets: 4,466,249 transactions in 2018 vs. 3,158,648 transactions in 2017
• Number of reported transaction on TGE markets: 18,052,898 transactions in 2018 vs. 20,040,736 transactions in 2017
• 1644 users of RRM (Registered Reporting Mechanism) in 2018 vs. 1,475 users in 2017

Recipients of the value creation process

The GPW Group is one of the biggest and most recognised financial institutions in Poland and in Central and Eastern Europe. Our intellectual and physical capital is a key contributor to value creation including security and top standards of daily operation of the exchange market. Value created by intellectual and physical capital helps Poland’s financial market to grow and serves all groups of our shareholders (Exchange Members, banks, issuers, shareholders, investors, issuer and investor organisations, brokers, asset managers, the Polish Financial Supervision Authority, the GPW Foundation).

How we maintain value

With our focus on technological development, we continue to grow our intellectual and physical capital by regularly investing in trading, clearing and IT infrastructure systems. They ensure secure trading between buyers and sellers and the security of data and information products. The overarching objective is to maintain the highest security and performance standards of the Exchange’s systems. Our intellectual and physical capital is regularly audited in order to review compliance with the performance standards necessary to ensure top quality service. Investing in production capital underpins our business model and helps to maximise financial results in the long term.

Social
and Relational Capital

Social and relational capital includes experience and relationships within and between communities and stakeholders, including:

• relations with Exchange Members,
• relations with banks,
• relations with issuers,
• relations with shareholders,
• relations with investors,
• relations with organizations associating: issuers, investors, brokers, asset managers,
• cooperation with institutions supervising capital market: KNF and ESMA,
• international cooperation with organizations associating exchanges,
• educational activities of the GPW Foundation.

We maintain close relationships with key external stakeholders, which allows us to build confidence in the Polish capital market. Our extensive educational activities have a positive impact on our perception at societal level.

Our results achieved on social and relational capital:

• Taxes paid: PLN 41.7 mn in 2018 vs. PLN 46.5 mn in 2017
• “Go4Poland” conference participants: 130 in 2018 vs. 153 in 2017
• 8,700 school students visited GPW in 2018 vs. 5.000 in 2017
• The product training sessions and initiatives addressed to students reached approximately 1,800 participants in 2018 vs. 1,000 in 2017
• Online School Exchange Game (SIGG) participants: 18,000 in 2018 vs. similar level in 2017
• 2 new universities started cooperating with the GPW Foundation in 2018.

Recipients of the value creation process

Our social and relational capital allows us to effectively build the position of the largest stock exchange in the region. Building a trust, attracts external stakeholders: market participants, brokers and investors. We cooperate with national and international institutions and educate society.

How we try to maintain value

We support social and relational capital through dialogue and interaction with a wide range of stakeholders. We build relationships through regular contacts with stakeholders, fulfilling our mission of developing effective mechanisms for the movement of resources, supporting economic development and building a long-term investing culture.