XTB S A : Report for the 3rd Quarter 2022

REPORT FOR

THE 3RD QUARTER 2022

XTB S.A. GROUP

This document is an unofficial translation of the Polish version of Periodic Report for the 3rd Quarter 2022 and does not constitute a current or periodical report as defined under the Regulation of the Minister of Finance on the current and periodical information provided by issuers of securities and the conditions for considering the information required by the provisions of law of the state not being a member state as equivalent thereto that was issued in accordance with the Polish Act on Public Offering , the Conditions Governing the Introduction of Finance Instruments to Organised Trading, and Public Companies dated 29 July 2005 (amended and restated: Journal of Laws of 2020, item 2080 with subsequent amendments). This document is for informational purposes only. Neither the Company, its shareholders, nor any of their advisors are responsible for translation errors, if any, or for any discrepancies between the original report and this translation into English. If there are any discrepancies between the English translation and the Polish version, the latter shall prevail.

TABLE OF CONTENTS

FINANCIAL CONSOLIDATED HIGHLIGHTS	3
INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS	5
INTERIM CONDENSED CONSOLIDATED COMPREHENSIVE INCOME STATEMENT	6
INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION	7
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY	8
INTERIM CONDENSED CONSOLIDATED CASH FLOW STATEMENT	11
ADDITIONAL EXPLANATORY NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS	12
1.	Information about the Parent Company and composition of the Group	12
2.	Basis for drafting the financial statements	14
3.	Professional judgement	16
4.	Adopted accounting principles	17
5.	Seasonality of operations	17
6.	Operating income	18
7.	Salaries and employee benefits	19
8.	Marketing	19
9.	Other external services	19
10.	Commission expenses	19
11.	Finance income and costs	20
12.	Segment information	20
13.	Cash and cash equivalents	27
14.	Financial assets at fair value through P&L	27
15.	Financial assets at amortised cost	27
16.	Intangible assets	29
17.	Property, plant and equipment	32
18.	Amounts due to customers	35
19.	Financial liabilities held for trading	35
20.	Liabilities due to lease	35
21.	Other liabilities	35
22.	Provisions for liabilities and contingent liabilities	36
23.	Equity	37
24.	Profit distribution and dividend	38
25.	Earnings per share	38
26.	Current tax and deferred income tax	39
27.	Related party transactions	43
28.	Employment	44
29.	Supplementary information and explanations to the cash flow statement	44
30.	Post balance sheet events	45
31.	Off-balance sheet items	45
32.	Items regarding the compensation scheme	46
33.	Capital management	46
34.	Risk management	48
NOTES TO THE QUARTERLY REPORT	64
1.	Information about the Group's activities	64
2.	Summary and analysis of the results of the Group	64
3.	Company's authorities	78
4.	Information about shares and shareholding	79
5.	XTB as FinTech	81
6.	Strategy of XTB	82
7.	Other information	83
INTERIM CONDENSED FINANCIAL STATEMENTS	94
INTERIM CONDENSED COMPREHENSIVE INCOME STATEMENT	95
INTERIM CONDENSED STATEMENT OF FINANCIAL POSITION	96
INTERIM CONDENSED STATEMENT OF CHANGES IN EQUITY	97
INTERIM CONDENSED CASH FLOW STATEMENT	100

FINANCIAL CONSOLIDATED HIGHLIGHTS

XTB S.A. Group

Report for the 3rd Quarter of 2022

(Translation of a document originally issued in Polish)

FINANCIAL CONSOLIDATED HIGHLIGHTS

		IN PLN'000	IN EUR'000
		NINE-MONTH ENDED	NINE-MONTH ENDED
		30.09.2022	30.09.2021	30.09.2022	30.09.2021
	Consolidated comprehensive income statement:
	Total operating income	1 227 503	442 028	261 839	96 968
	Profit on operating activities	827 171	193 971	176 444	42 551
	Profit before tax	876 194	206 211	186 901	45 237
	Net profit	715 789	169 311	152 685	37 142
	Net profit and diluted net profit per share attributable to
	shareholders of the Parent Company	6,10	1,44	1,30	0,32
	(in PLN/EUR per share)
	Consolidated cash flow statement:
	Net cash from operating activities	856 349	163 105	182 668	35 780
	Net cash from investing activities	(23 214)	250 209	(4 952)	54 888
	Net cash from financing activities	(179 254)	(214 532)	(38 237)	(47 062)
	Increase/(Decrease) in net cash and cash equivalents	653 881	198 782	139 480	43 607

	IN PLN'000	IN EUR'000
	30.09.2022	31.12.2021	30.09.2022	31.12.2021
Consolidated statement of financial position:
Total assets	4 176 511	3 147 743	857 635	684 381
Total liabilities	2 714 148	2 232 183	557 343	485 320
Share capital	5 869	5 869	1 205	1 276
Equity	1 462 363	915 560	300 292	199 061
Number of shares	117 383 635	117 383 635	117 383 635	117 383 635
Carrying amount and diluted carrying amount per share
attributable to shareholders of the Parent Company
(in PLN/EUR per share)	12,46	7,80	2,56	1,70

The above data was translated into EUR as follows:

• items in the consolidated comprehensive income statement and consolidated cash flow statement - by the arithmetic average of exchange rates published by the National bank of Poland as of the last day of the month during the reporting period:
• • for the current period: 4,6880;
  • for the comparative period: 4,5585;
• items of consolidated statement of financial position - by the average exchange rate published by the National Bank of Poland as of the end of the reporting period:
• • for the current period: 4,8698;
  • for the comparative period: 4,5994.

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INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS