Bursa de Valori Bucuresti : H1 2023 Report

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BURSA DE VALORI BUCURESTI SA- BVB

H1 2023 Report

Release Date: 8/4/2023 8:30:18 AM

IRIS Code: AF58E

Evolution analysis of the main standalone and Group financial indicators for the first semester of the year 2023

OperatingrevenuesBVB standalone* in H1 2023 are in amount of RON 13 mn, decrease of 29% compared to H1 2022 (RON 18.35 mn), due to increased volatility and significant volumes traded in Q1 2022 as a result of the outbreak of the conflict in Ukraine, as well as higher public offers made in S1 2022, while in S1 2023 traded volumes were at a low level in the context of market expectative for the Hidroelectrica IPO.

The decrease was partly offset by the 27% increase of market data revenues, that reached the value of RON 1.94 mn, generated by the growth in the number of real-time data end users, by attracting new data clients, as well as due to the new pricing plan applied starting January 1^st 2023, together with the increase in issuers maintaining fees revenues (+9% y/y) as a result of 2022 inflation rate indexation (13.8%), as well as the higher revenues from participant admission fees compared to the previous period

OperatingrevenuesCentral Depository (DC)*in H1 2023 are in amount of RON 12.90 mn, +5% y/y, mainly result of the increase of some tariffs including the issuers maintaining fee, while the settlement revenues remained relatively constant compared to the previous period.

Revenues from post-trading segment * (DC), in H1 2023: RON 7.84 mn, similar level compared to the previous period, the reduction in local settlement revenues from the BVB markets, influenced by the values traded at the BVB, covered the increase in admission revenues and maintaining participants as a result of higher revenues from the commission for maintaining the quality of the participant - the percentage component, following the increase in the commission for retail government securities

This segment represents 61% of DC's operating revenues.

Revenues from registry segment* (DC) in H1 2023 recorded a 14% y/y increase, up to the value of RON 5.04 mn, due to the advance of issuers operations revenues by 25%, result of the increase of some of the fees, including the maintaining rate for issuers, but also an increase in revenues for the holders of financial instruments by approximately 27%, as a result of the increase in the number of services requested by the holders.

CCP.RO Bucharestdid not record operating revenuesin the first semester of 2023.

Ø Consolidated operating revenues BVB Group in H1 2023, 16% decrease to the value of RON 25.71 mn compared to RON 30.47 mn in H1 2022, generated by the evolution of trading revenues recorded in the trading segment.

Operating expenses, BVB standalone*in H1 2023: 7% increase compared to 1H 2022 up to the value of RON 11.24 mn, mainly influenced by:

· The advance of personnel expenses by 6% y/y, up to the value of RON 5.93 mn, following annual indexation of salaries according to the Remuneration Policy applied starting from April 2023, while the expenses with bonuses and SOP accruals were at a lower level, in line with the current year result. · Decrease in third-party services expenses by 19% y/y, to the value of RON 1.31 mn, based on the lower business development expenses and consulting services compared to S1 2022.· Higher other operating expenses by 21% y/y up to the value of RON 3.99 mn, base effect from the price increases due to inflation, together with the advance of expenses with depreciation of fixed assets and annual headquarters rent indexation, of marketing and promotion expenses following the campaigns carried out aimed to promote BVB projects and increase the number of investors.

Operating expenses, Central Depository (DC)*in H1 2023 2023 are in amount of RON 10.76 mn, +11% y/y, increase generated by the advance of third parties expenses (+32% y/y), impact from the inflation increase, but also as a result of higher expenses for IT maintenance, archiving services, as well as 11% increase in personnel expenses following the indexation and annual adjustment of salaries according to the Remuneration Policy starting in April 2023.

The increase is also amplified by the advance of other operating expenses (+8% y/y), impact from the inflation increase, but also result of higher IT maintenance expenses and fixed assets depreciation.

Operating expenses, CCP.RO* in H1 2023 - RON 3.74 mn, increase of 68% or RON 1.52 mn compared to H1 2022, determined by the advance of third parties services expenses, such as consultancy for the implementation Central Counterparty and SWIFT network use services, as well as other operating expenses, mainly expenses with ASF authorization fees, rent expenses, depreciation and telecommunications - private data connections expenses.

Consolidated operating expensesin H1 2023, 15% y/y increase up to the value of RON 25.55 mn, being influenced by:

· Consolidated personnel expenses higher by 14% or RON 1.71 mn, up to the value of RON 14.24 mn, following annual implementation of the Remuneration Policy - indexation and adjustment to the market level, applied starting April 2023, but also due to increase in the average number of employees (in the case of CCP.RO)· 10% advance of third parties services expenses up to RON 3.19 mn, mainly due to consultancy and SWIFT services recorded in CCP.RO.· Increase of 19% or RON 1.29 mn of other operating expenses up to the value of RON 8.13 mn, result of the new expenses recorded by CCP.RO in the authorization and implementation process of the, advance of fixed assets depreciation expenses, IT maintenance, as well as higher administrative expenses (hq rent, utilities), negative impact from the inflation increase

Operating profit, BVB standalone* of RON 1.76 mn, -77% compared to S1 2022 ( RON 7.82 mn), with an operating margin of 14%, a level directly influenced by the evolution of variable operating revenues.

Operating profit, Central Depository (DC)* in H1 2023 of RON 2.14 mn, -18% compared to H1 2022, with an operating margin of 17%, the result of the increase in operating expenses, superior to the evolution of operating income.

Operating loss of CCP.RO* in H1 2023 is RON 3.74 mn, increase of 68% y/y (RON 2.23 mn in S1 2022), a similar evolution to that of operating expenses considering that the company does not record operational revenues, being in the authorization process.

Ø Consolidated operating profit in H1 2023 of RON 160 thousand compared to RON 8.21 mn in the previous period, an evolution generated by the decrease in trading segment operating revenues and advance of consolidated operating expenses.

Net financial income, BVBstandalone* of RON 2.23 mn, a decrease of 12% compared to H1 2022, mainly generated by lower unrealized income from exchange rate differences, following the appreciation of the RON exchange rate vs USD and dividend income from the Central Depository (- 9%) compared to the previous period, decrease partially compensated by the advance of interest income and other financial income generated by the positive impact from the decrease in CDS (Credit Default Swap) rate used in the calculation of provision from expected credit losses, recognized according to IFRS9.

Net financial income, Central Depository (DC) * + 95% y/y, up to the value of RON 0.96 mn, generated by the 78% increase in interest income compared to the previous period, result of the higher interest rates on the financial investments, together with the other financial income generated by the positive impact from the decrease in CDS (Credit Default Swap) rate used in the calculation of provision from expected credit losses, recognized according to IFRS9.

Net financial income, CCP.RO in H1 2023,increase of 274% y/y up to the value of RON 1.77 mn, mainly determined by higher interest income compared to the previous period following the increase in the average yield of the investment portfolio, together with higher other financial income as well as unrealized income from exchange rate differences.

Ø Consolidated net financial income in H1 2023 of RON 3.56 mn, 82% increase compared to H1 2022 determined by the increase in interest income following a higher level of interest rates, as well as increase in other financial income.

Net profit, BVB standalone *in H1 2023 in amount of RON 3.72 mn, down from RON 9.10 mn in H1 2022, 29% net margin, directly influenced by the evolution of the operating result.

Net profit, Central Depository (DC) ofRON 2.63 mn, constant level compared to H1 2022, the decrease in the operating result was covered by the increase in the financial result.

Net loss, CCP.RO* in H1 2023 of RON 1.60 mn, up 9% compared to the previous period (H1 2022: RON 1.47 mn) influenced by the evolution of the operating loss, partially compensated by the increase in the result financial.

Consolidated net profit BVB Group in H1 2023 in amount of RON 3.35 mn, -62% y/y (RON 8.76 mn in H1 2022), being directly influenced by the evolution of the operating result, partially compensated by the increase in the financial result.

* Including intra-group transactions

BVB_20230803203954_BVB-Raport-semestrial-1H2023-RO.pdf BVB_20230803203933_BVB-Half-Year-Report-1H2023-EN.pdf BVB_20230804075549_Sumar-S1.pdf BVB_20230804075558_Summary-H1.pdf

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