Ladies and gentlemen, welcome to the Warsaw Stock Exchange at 1Q 2021 results call. I now have the pleasure of handing over to your host Pawel, to begin today's presentation. Good afternoon, ladies and gentlemen. My name is Paweł Wieczorkowski. On behalf of Wood & Company, I very warmly welcome you to the first quarter results conference call with Warsaw Stock Exchange Management. Today, the company is represented by Izabela Olszewska, member of the management board, Piotr Borowski, also a member of the management board of the Warsaw Stock Exchange, and Mr. Adam Matuszak, Vice President of the management board of the Polish Power Exchange. Gentlemen, congrats on the results. Please go ahead. Hello. I'm Izabela Olszewska. I'm the member of the management board. I'm in charge of business and sales. In my part of presentation, I would like to focus on trading volumes and investors activity in the first quarter of 2021. Just Slide number three. Just starting with an international landscape, the Warsaw Stock Exchange maintaining its leading position on the European market when it comes to the dynamics of the trading volume growth. Trading volumes in Q1 were 37% higher than the same period last year. The chart shows that other exchanges of our old continent, say, recorded slower growth or declines. Of course, this is for Q1, we are now in May, let me comment on April and May. The market was more quiet in April and a little bit better in May. Trading volumes were and are still not bad, but a little bit worse than in Q1 months. In Q1 of the year, the Warsaw Stock Exchange recorded very well velocity ratio, with an increase in market capitalization by about 40%. Please look at Slide number four, and this is about the situation on equity markets. The Q1 2021, it was very good on the equity market, although our trading volume was lower than in the last quarter of the previous year. Of course, we should remember that in Q4 last year, there were two extraordinary months. October, with the debut of Allegro, the company, and it was the largest IPO in the Warsaw Stock Exchange history, the second IPO in the whole of Europe. The value of offer reached PLN 10.6 billion, and this debut was accompanied by an extremely high turnover, especially in the first sessions after the debut. In December, we noticed very heavy trading on another blue chip, CD Projekt. This is a company games provider, and they released the long-awaited game, Cyberpunk. Of course, together with the release of this game, the investors, they traded a lot in the stocks of this company. The high trading volumes in Q1 were that of several main factors, and just I would like to point out the continuing significant investors activity on Allegro stock and the share of trading in Allegro in the total trading volume reached almost 11%. Also, high volatility of CD Projekt stock, so almost 19% of the total trading volume. We had also the debut of Huuuge, Inc., which is registered in the U.S., and the value of offer was PLN 1.7 billion. Again, the big company, and it resulted in the trading activity, especially high trading activity in the first sessions after the debut. Also, the increased base and activities of retail investors, that was also in Q1. We continue with this high activity of our retail clients. I would like also to underline the inflow of new capital to equity funds in Poland, and it was around PLN 2 billion of fresh capital. We are optimistic when it comes to our equity markets. On Wednesday this week, we had another interesting debut, which is Pepco company. This company represent the commerce sector, and the value of offer was PLN 3.7 billion. There are a few perspectives of other companies with Polish FSA waiting for approval. We think that this year would be a good year on a primary market. We see also an interest of foreign investors and traders in our markets. Commenting on the situation on our SME platform, NewConnect, we noticed a quite significant decline in trading volumes quarter-over-quarter. However, in Q1, the trading volume was still much higher than a year ago, and we think that the trading volume for this market will rather stabilize on the levels observed in the third quarter of 2020. The third and fourth quarter of 2020 seems to be very extraordinary. In the other segments of equity markets, the structured products have been becoming more and more popular among our investors. Currently, we have 2,200 products. In Q1, our ETF offer, to our ETF offer, there were added two additional products, ETF based on NASDAQ-100 Index and ETF based on S&P 500. Both ETFs, they are with built-in currency risk hedging, which means that they are little good, especially for our retail clients. We continued in Q1 with our sales and marketing activities. We organized the sixth edition of WSE Innovation Day. This is a very good event the opinion of our investors because the goal is to present the innovative companies to our investors, both those who are already listed on our market and those who are just being prepared to listing. We continued the second edition of GPW Growth Academy. This is our educational and networking project dedicated to mid and small caps. Some of our participants, they already declared that they are very much interested in floating on our market. We also continued with our project, the title, It's Worth Being Listed Company. In this program, we would like to provide support to our issuers in various forms, so education, but also, last year we decreased listing fees for COVID losers. Also, we had many one-on-one meetings with potential stock and bond issuers. In the liquidity space, we had our high-volume providers very active in equity turnover, so their share in equity, their average, more than 13%. What also worth underlining that, again, the number of brokerage accounts for retail clients increased, and comparing the situation at the end of Q1 with the year end in 2019, it was an increase of more than 86,000 accounts. Just going to the derivatives market, so Slide number five. The trading volume in Q1 was comparable to Q1 last year, 2020. It's worth saying here that the structure of an order was slightly different. Single stock futures and currency futures were more popular than WIG20 futures. Bearing in mind that the trading fees are lower for single stock futures and currency futures than for WIG20 futures. I would say in the total bill, we earn less by 15% quarter-over-quarter. We are very open for the new products and the new single stock futures are in the pipeline. We are going to launch single stock futures based on Pepco stock, and it will happen very soon in days. In the liquidity space, the share of HVP participants program, it was 11%, a little bit lower than in the Q1 2020. However, I would like to underline that we had a relatively large share of all liquidity providers, so not only HVP but also market makers on our derivatives. Now a few words about ESG, Slide number six. ESG is a very hot topic for us. We have been continuing to prepare our company and our capital group to the best standards of reporting and simultaneously also as an organizer of trading platform for 800 companies. We want to support our listed companies in this area. First of all, the updated Best Practice for GPW Listed Companies 2021, which will be effective as of third July this year. They have been implemented, and they cover ESG factors, including, of course, climate, sustainable development, social issues and some other important factors from ESG space. The companies are obliged to comply or explain if they are not compliant with our best practice document. Together with the European Bank for Reconstruction and Development, we publish the ESG reporting guidelines. This is a very practical manual based on interviews with a number of global investors. We hope that these guidelines will support our issuers in non-financial reporting, which will address investor expectations. We organize some education activities for our issuers for both sell side and buy side. On the product development side, we have already the ESG index, and our daughter company, GPW Benchmark, has been analyzing low carbon indicators. We would like to focus on greening our big index family. We have started the cooperation with the Ministry of Finance in Poland to develop the set of incentives for green bond markets. We look at ESG as business. This is absolutely a very important topic for us. That is from my side at the moment. Piotr, over to you. Thank you, Izabela. Yeah, I'm Piotr Borowski, treasury operations and finance. We are on Slide number eight. The excellent market situation resulted in very good sales revenues. Also, to rechange, Capital Group generated such revenues in the first quarter at the level of PLN 112 million, which was increased by 16.5% year-over-year. Operating expenses also increased to the level of 66.1 million PLN, and that's mainly due to the higher employee cost and higher external service charges connected with our new strategic initiatives. We also created a higher provision for the fee for market regulator at the level of PLN 14 million, and it is four million higher when compared to the same provision in the first quarter of last year. We created a provision of the maximum possible amount not to be surprised this year by our regulator. EBITDA was at the level of PLN 53.6 million, and that is increased year-on-year by 7.1%, and net profit was much higher by 32% when compared in the first quarter of last year, and net profit for this quarter was PLN 33.7 million. Slide number nine. This good sales revenue resulted in still very healthy EBITDA margin at the level of 37.8% in the first quarter. According to the net profit margin, amounted 34.4% for the first quarter of this year. Slide number 10. We had excellent quarter on the financial market, on the securities market, and it resulted in a high trading revenue, which increased by 28% year-on-year to the level of PLN 53.2 million. We observed quite high average equity turnover per one trading session, which was PLN 1.6 million in first quarter. It was slightly lower than the last quarter of the last year, which was PLN 1.8 million. On the other hand, this quarter, the first quarter of this year was much, much better than the first quarter of the last year because then the turnover was around PLN 1 billion. The ADT is more or less stable on the stock market of PLN 2.72 billion. That is mostly because of the higher activity not only on the equity market but also on the futures and options market, and especially the gradual, the bond market, the treasury bond market, and our daughter company BondSpot. This had very good first quarter with a higher turnover, especially on the conditional transaction. It was higher by 93%. Slide number 11. Listing revenues was also higher than in the first quarter of the last year, higher by 16% and amounted PLN 6.2 million. That's mainly due to the new listings of secondary offering, which are IPOs. We had big IPOs in the first quarter. It was mentioned by Izabela. We have additional income, and we are quite optimistic on this business line. We expect more IPOs in the coming months of this year. Slide number 12. Revenue information. This is some other market data. We are quite particular on this and it's stable. There's steady growth. It was higher by almost 12% year-on-year, and we developed this business line due to the very active specialty securities market. We are all the time connecting the new clients and data vendors. On this slide, clients, not only from the market data from lots of editions, but also from Bloomberg, GPW Benchmark, and also from TGE, our commodity exchange. We observe the increase in the whole segment of this business line. That's at the moment from me, sending over to Adam Matuszak from Polish Power Exchange. Thank you, Piotr. Welcome, everyone. Adam Matuszak from TGE speaking. Looking to bring to you the most important information about the commodity market in the first quarter of 2021. We are on Slide 13. In the first quarter, the volume of electricity traded on TGE, day-a head market, reached the highest level in its history, which also resulted in a record volume of trading in the entire spot energy market, which amounted to 9.6 TWh. In relation to the first quarter of 2020, the turnover on the spot market increased by 13% and in comparison to the first quarter of 2020, by 2%. The decrease in turnover on the forward market resulted in a decrease in the total volume of electricity trading, which in Q1 2021 amounted to 47.7 TWh. It has to reach -28.3% year-over-year and -21.4% quarter-over-quarter. It should be noted that we deal here with the base effect, because the first quarter of 2020 was the beginning of the lockdown, which was followed by a record high turnover on the forward market, and which made it the best first calendar quarter in terms of turnover on the energy market in the whole history of TGE. For the first quarter of this year, ranks second on this ranking. The total volume of trading on the natural gas market in Q1 was 36.5 TWh, down by 8.9% compared to first quarter 2020 and by 9.2% compared to the previous quarter. Relatively frosty beginning of the year compared to the previous years, resulted in an increase in the turnover on the spot gas market in the first quarter of this year. In relation to the same period of 2020, the volume increased by over one-third, reaching the level of 10 TWh. The volume of trading on the gas forward market in Q1 2021 was 36.5 TWh, recording a year-over-year decrease by 18.5%. On the RES property rights market, the trading volume in the first quarter of 2021 amounted to 7.2 TWh and was higher by 17.8% compared to the first quarter of the previous year. On the agricultural exchange market, the first quarter of 2021 brought the largest trading volume so far, amounting 4,500 tons. We know that this market is still in the development phases. Let's go to the next slide, referring to revenue in the first quarter 2021. Falling turnover on the energy and gas markets contributed to the decrease in revenue in the first quarter of this year. On the energy market, revenues decreased by 18.6% year-over-year, and on the gas market, of 7.3% year-over-year. Revenues from property rights trading fell by 4.1% year-over-year, which was due to a significant decline in trading rights certificates. In Q1, we record that higher revenues from other fees paid by participants. It was a result of increased prices in the P-table and new fees collected from participants for agents. Now, the last slide from this part, revenues from the clearing and register of certificates of origin. In Q1 2021, our clearing house reached revenues from transaction settlement of PLN 30 million, which means minus 0.8% year-over-year, but 2.4% quarter-on-quarter. In spite of a fairly large decrease in turnover in the forward energy gas market, turnover in the spot market increased, as I mentioned before. Hence, we noted such a small decrease in income from segments. Maintaining the certificate of origin register and the guarantees register generated revenues at the level of PLN 6.8 million. Such a high level of revenue in relation to the previous quarters was mainly from the greater number of issued certificate of origin. That's all for the commodity market for today. Thanks for your attention. Thank you, Adam. We are on Slide 18 again. As a result of the capital of the Warsaw Stock Exchange operating expenses, the cost income ratio slightly increased to the level of 59.5%. as I mentioned, we created a high provision this year for the market regulator at the level of PLN 14.2 million, compared with the PLN 10 million in the first quarter of last year. Depreciations was lower by 10% and amounted to PLN 8.8 million. there was an increase of total employee costs and external service charges. Employee cost increased mainly due to our new business projects, and external services, there are several factors like new strategic initiatives, but also higher cost of IT and new markets like international energy markets started by the commodity exchange and higher promotion and educational cost we observed in the first quarter of this year. Slide number 19. We had a very good share of profit of entities measured by the equity method in the first quarter of this year because it was at the level of PLN 5.4 million. It was a record high in the last couple of quarters. It was mainly due to the excellent results of the KDPW, which is the National Depository for Securities and Clearing House on the Polish market. They profited from a very active market situation and securities, but also they opened a new business line like the registering, which is obligatory in Poland, registering of non-public bonds, and from this year they started a business line of keeping the register of non-public shares for joint stock companies. It's also obligatory in Poland and also developed a new shareholders identification services concerning the public companies. It was the main factor influencing the increase in this part of our financials. Slide number 20 continues the statement of the financial position. You can see we have an excellent liquidity position. The sharp increase in net liquid financial assets from 616 at the end of last year to 798.5 million PLN at the end of this quarter. This is one of the factors, the management board of the Warsaw Stock Exchange recommended to pay the dividends for the last year. The dividends payment recommended by us is 104.9 million PLN, which is 2.5 PLN per share, and it's in line with our dividend policy, and this dividend will be higher by 2.1 PLN when compared with the dividends for 2019. Of course, the decision about the dividend payment will be taken by our shareholders' meeting, which is planned for the 21st of June. This is the last slide in our presentation. Thank you. Ladies and gentlemen, if you would like to ask a question, please press star followed by one on your telephone keypad now. If you change your mind, please press star followed by two. For those of you that have joined online, please press the flag icon. When preparing to ask a question, please ensure your phone is unmuted locally. If I may, I'll start. Probably just Wood & C ompany. You've mentioned that you're working now on several strategic initiatives. There is now new project in the pipeline, the digital logistics operator. Could you please elaborate a bit more on how the potential cost of this project and revenues that you expect, and when shall we expect or shall we see the first impact on your P&L from these initiatives and this project? Okay. Maybe I will start with describing some initiatives, and I will comment on revenues. I would like to ask Piotr to just to comment on the cost of initiatives. We are, I'll say, in the middle of our strategic implementation, and The goal of the strategy is to diversify the sources of revenue. We would like to be less dependent on our equity trading. Sometimes we have no influence on this macroeconomic situation, and we would like to have more predictable sources of revenue. We decided to implement a couple of initiatives in the financial market space and commodity space. Two of these initiatives, they are being implemented with the support of grants that we received from National Centre for Research and Development. They are bigger projects, and we need to wait for the results some more time. Some of our initiatives, they have been already implemented, and we started to charge, and we have first revenues, for example, from our GPW Growth Academy. Also, for example, the first revenues from agriculture markets. They are not huge revenues. This is just the beginning. However, it's very positive that we started just to generate the revenues. As it was declared during the previous investor conference, we expect a couple of million PLN as revenues from our strategic initiatives this year. we haven't changed our minds, so still we expect these revenues. Of course, perhaps the majority of these revenues we'll have in the end of the year. the first quarter, this is just the beginning. Piotr, if you can comment on the upside of our strategic revenues. Yes. Generally, concerning the OpEx of our group, we expect a slight increase this year when compared with the last year operating costs, but it will be a sharp increase in percentage, while for the first quarter it should be rather slower. The CapEx due to the new business projects, we estimate that it will be also slightly higher than in the last year, which was on a quite reasonable, rather low level at PLN 14 million. Still, we know that it will be higher this year. Thank you. Okay, perfect. Thank you. My next question would be to be more precise about the potential impact from the strategic initiatives on 2021 financials. You've mentioned recently that we shall expect low single-digit millions of revenues in this year. Do you still think this is the correct figure, or do you see an upside to this low single-digit millions number? Yes. We haven't changed our opinion and expectation. I can confirm that it was declared during this regular investor conference, and we still expect that it will be single-digit million revenues from the strategic initiatives this year. Okay, perfect. My next question concerns the M&A in Armenia. You are considering purchasing the majority stake in Armenia Stock Exchange. Could you please update us on what's happening with the deal, at what stage it is now? When shall we expect some news flow? This, the Armenian deal is, of course, still on our radar, and as we mentioned in, again, our previous comments, this Armenian business seems to be a very healthy one, but of course, we need to conduct due diligence. We hope to finish it in the first quarter of this year. In the meantime, we are in the process of preparation of the data files and together with EBRD. EBRD is also involved in this deal, and together with the management board of Armenia Stock Exchange. After the results of due diligence, we will make the final decision. I think that then till this moment, of course, there'll be no flow of financial resources. Also, it's worth saying that this transaction has some built-in mechanism that within three years we can withdraw and regain our invested capital. I think that the conditions which have been negotiated so far are very good for the Warsaw Stock Exchange, but of course, the due diligence results will be here the most important for the final decision. Perfect, thank you. My next question is about the pension reform that we'll have this year in Poland. I was clicking the second pillar assets and between the third pillar and then the first pillar, the default option is that all OFE members or private pension fund members are going to the third pillar unless they declare that they prefer to join the first pillar. Have you run any kind of analysis, or do you have any expectations regarding the fraction of the OFE members that will go to the third pillar or the first pillar? Of course, we have prepared some scenarios because it's difficult to say now what is the percentage of Polish citizens that will decide to transfer their funds to private accounts, or maybe some of them they decide to transfer to social security system. Of course, there are some scenarios, and we analyze them. Of course, we need to analyze it and see the wider picture because this is one reform, and currently, it has not been decided when this reform will start in Poland. We expected that the Polish citizens, they will have the window for their declaration beginning on the 1st of June, but now it's not obvious, so probably it will be delayed. We need to look at it together with another reform, and I mean here Employee Capital Plans. This is the initiative of the government that was implemented in 2019, and the idea is to build long-term savings of Polish citizens. This is the reform which is mandatory for the Polish companies and enterprises and voluntary for their employees. However, the assets of Employee Capital Plans, they reached the level of almost PLN 5 billion, and it is invested on our exchange. Now looking at the situation on the private pension fund side, where probably a part of these financial resources will cover a so-called conversion fee because if somebody will decide to transfer the funds to a private account, the conversion fee should be paid, and it's 15%. Together with the Employee Capital Plans, we think that we can expect a couple, PLN single-digit billion as inflow to Warsaw Stock Exchange. we assess it altogether as a positive reform or two reforms for the Warsaw Stock Exchange future inflows to the market. However, of course, it's very difficult to say how Polish citizens will behave and which options they will choose. Perfect. Last question from my side, I promise. You've mentioned in your part of the presentation that you are working very hard in promoting ESG initiatives and all the issues associated with corporate governance, et cetera. I know that you are collaborating with EBRD in this area. Could you please shed some light on your future plans as far as the collaboration with EBRD and promotion to standards is concerned? I know that you'll be running shortly a conference on ESG. Any color would be appreciated. Yes, we just finished the project together with EBRD in the sense that the reporting guidelines, they have been published. Of course, this is the first step, but then we plan to organize some workshops and trainings for the companies. At the beginning, we'll do it together with the external advisor who prepared these guidelines for us and for EBRD. We would like to take over as a change these training activities, and we'll organize the workshops, the trainings for the companies by our staff. It will be organized by our staff. As I mentioned, these reporting guidelines are very practical. They refer to the regulations, also new CSRD directives, but also our project team met global investors and also our local investors, institutional investors, and also some enterprises, and just try to collect what are the needs on the side of the investors and how they should be addressed by the companies. Everything is included in the guidance. We hope that it will be a very practical and good material for our companies, and it will inspire them to prepare good reports for the investors. We as a exchange are very much interested in this because this is a part of our business. If the global capital decide that the companies are good and they report properly, so we hope that this capital will be here in Poland. If the companies will not provide the reports according to the expectation of the global investors, so we can expect that they will be blacklisted and they'll be outside of the radar and the interest. This is a lot of business for us as an organizer of trading platform for many companies. Perfect. Thank you so much. As a reminder, to ask any further questions, please press star followed by one on your telephone keypad now. We currently have no questions. I'll pass back to your host. Ladies and gentlemen, it's been a pleasure to moderate today's call. Thank you so much for participating in it. Have a great afternoon and a great weekend, and speak to you after the second quarter results. Stay safe. Thank you. Thank you. Bye. Ladies and gentlemen, this concludes today's call. Thank you for joining. You may now disconnect your line.