Zagreb Stock Exchange - ZSE · 2 D.D./ICAM OUTFOX 2 1 1 2 Source: ZSE`s Employee Checklist on 31 Dec 2018 2 1 Source: *ZSE publishes monthly full list of shareholders on it's web

Zagreb Stock Exchange Investor Presentation

FY17 – FY19 1Q

May, 2019 1

Financial highlights

2

0,500

1,000

1,500

2,000

0,000

5,000

10,000

15,000

20,000

25,000

30,000

Ind

ex

Turn

ove

r (H

RK

00

0)

CROBEX index

Turnover (000 HRK) Index

Operating highlights (Zagreb Stock Exchange)

2017 2018 % change 1Q 2018 1Q 2019 % change

Orderbook turnover (HRK

m.) 2.989 2.266 -24.2% 652 393 -39.6%

Stocks 2.621 1.579 -39.8% 420 334 -20.4%

Bonds 368 686 86.6% 232 59 -74.4%

Block Turnover (HRK m.) 670 588 -12.2% 226 142 -37.3%

Equity 589 542 -8.0% 226 142 -37.3%

Debt 81 46 -43.1% - - 0.0%

TOTAL Turnover (HRK m.) 3.660 2.854 -22.0% 877 535 -39.0%

TOTAL Volume (HRK m.) 401 590 47.3% 148 66 -55.5%

CROBEX© (closing) 1.843 1.749 -5.1% 1.805 1.798 -0.4%

Market capitalization (HRK

m) 236.078 233.549 -1.1% 238.816 247.121 3.5%

Average Daily (000)

Turnover 14.6 11.6 -21.1% 13.9 8.5 -39.0%

Volume 1.6 2.4 49.0% 2.4 1.0 -55.5%

Trading days 250 247 -1.2% 63 63 0.0%

Financial performance (Consolidated)

HRK 000, unless stated

otherwise 2017 2018 % change

Operating revenue 24.227 23.888 -1.4%

Operating expenses 26.630 22.395 -15.9%

EBITDA (2.403) 1.493 -162.1%

Net profit (3.755) 190 105.1%

EPS (HRK) (81) 4 105.1%

Profitability ratios

(Consolidated)

% 2017 2018

EBITDA margin -9.9% 6.3%

Net profit margin -15.5% 0.8%

Return on equity (ROE) -9.4% 0.5% 900

950

1000

1050

1100

0,000

0,400

0,800

1,200

1,600

2,000

2,400

2,800

18.2

.201

9

20.2

.201

9

22.2

.201

9

24.2

.201

9

26.2

.201

9

28.2

.201

9

2.3.

2019

4.3.

2019

6.3.

2019

8.3.

2019

10.3

.201

9

12.3

.201

9

14.3

.201

9

16.3

.201

9

18.3

.201

9

20.3

.201

9

22.3

.201

9

24.3

.201

9

26.3

.201

9

28.3

.201

9

Ind

ex

Turn

ove

r (H

RK

000

)

CROBEXprime


4

5

8

10

1

2

3

4

Key events

2018

Trading activity

About ZSE Group

ZSE Indices

5

6

7

8

Projects

Financial results

Financial position

Share statistics &

Expectations

12

17

19

20

3

Table of Contents

Projects Financial results

Financial position

Share statistics &

Expectations

ZSE Indices

About ZSE Group

Trading activity

Key events 2018

4

Dec-18; Up to this point a total of EUR 2,5m was

raised for Croatian start-ups and SME`s

via Funderbeam

Oct-18; CE ENTER was shut down

and will be replaced with

Progress Market.

Dec-18; First issuer on

Progress Market; NEXE Grupa d.d.

Jun-18; ZSE joined

Federation of European Securities

Exchanges, FESE

May-18; 4th Ljubljana and Zagreb Stock

Exchange Investment

Days

Mar-18; ZSE participated in global initiative Ring The Bell for Gender Diversity

Sep-18; First issuer joined the

ZSE Prime Market; Atlantic

Grupa d.d.

Jan-18; ZSE was authorized by HANFA to carry out the activity of

publishing trading reports for the account

of investment companies by which ZSE gained

formal conditions for the introduction of APA

(approved publishing arrangement)

Oct-18; 7th joint conference of the

ZSE and Association of Pension Fund

Management and Pension Insurance

Companies

Nov-18; ZSE introduced ZSE`s

brief; a new communication

platform that will discuss key issues for the Croatian

and regional economy

Dec-18; Zagreb Stock

Exchange Awards


Financial position

Share statistics &

Expectations

ZSE Indices

About ZSE Group

Trading activity

Key events 2018

5

Total turnover decreased in 2018 by 22% compared to 2017. Main reason arises from smaller stocks turnover by 40% or HRK 1,042m. However, bonds turnover shows better results with 87% YoY growth to HRK 686m. Total volume increased by 47%. In both years most of the volume relates to bonds (2017; 70%, 2018; 87%). 1Q 2019, in terms of total turnover and volume, shows decrease compared to 1Q 2018.

Source: Trading Summary


Source: Trading Summary; 2017 Source: Trading Summary; 2018

Total turnover

HRK m. 2017 2018 % change 1Q 2018 1Q 2019 % change

Stocks 2.621 1.579 -40% 420 334 -20%

Bonds 368 686 87% 232 59 -74%

Commercial bills 0 0 0% 0 0 0%

Structured products 0 0 0% 0 0 0%

Equity Block Turnover 589 542 -8% 226 142 -37%

Debt Block Turnover 81 46 -43% 0 0 0%

Total turnover 3.660 2.854 -22% 877 535 -39%

Total volume 400.9 590.4 47% 148.5 66.0 -56%

OTC trades turnover 19.7 12.9 -34% 3.8 4.6 21%

Stocks; 9,6%

Bonds; 70,3%

Structured products; 0,0%

Equity Block; 1,4% Debt Block; 18,7%

Total volume; 2017

Stocks; 5,1%

Bonds; 86,8%

Equity Block; 0,6% Debt Block; 7,5%

Total volume; 2018


Financial position

Share statistics &

Expectations

ZSE Indices

About ZSE Group

Trading activity

Key events 2018

6

Source: Trading Summary Source: Trading Summary


877

641 586 750

535

1Q 2018 2Q 2018 3Q 2018 4Q 2018 1Q 2019

Total turnover (HRK m.)

420 356 348

456

334

226

85 137

95 142

1Q 2018 2Q 2018 3Q 2018 4Q 2018 1Q 2019

Turnover - stocks and equity block (HRK m.)

Stocks Equity Block

420 356 348

456

334

1Q 2018 2Q 2018 3Q 2018 4Q 2018 1Q 2019

Turnover - stocks (HRK m.)

10,3 9,3

6,3

10,9

6,2

2,3 3,0

0,4

3,1

1,0

1Q 2018 2Q 2018 3Q 2018 4Q 2018 1Q 2019

Average daily figures (HRK m.)

Daily order book turnover Daily order book volume


Financial position

Share statistics &

Expectations

ZSE Indices

About ZSE Group

Trading activity

Key events 2018

7

Compared to 2017, total market capitalization slightly decreased by 1% to HRK 233,6b. Stocks market capitalization decreased by 4% and bonds market capitalization increased by 3% However, compared to 31 Dec 2018, as of 2019 1Q`s end, total market capitalization increased by 5,8% to HRK 247,1b. Sector with the largest share in total turnover in 2018 was Accommodation and food services (27%). As of 2019 1Q`s end, Financial and insurance services had the largest share in total market capitalization (30%).



I Accomodation and food service activities;

27%

MA Legal, accounting, management, arhitecture,

engineering, technical testing and analysis

activities; 16%

JB Telecommunications;

15%

CA Manufacture of food products,

beverages and tobacco products; 10%

K Financial and insurance activities; 7%

G Wholesale and retail trade; repair of motor

vehicles and motorcycles; 7%

CL Manufacture of transport equipment;

5%

Other; 12%

2018 Turnover per Sectors

K Financial and insurance activities;

30%

CD Manufacture of coke and refined

petroleum products; 23%

I Accomodation and food service

activities; 14%

JB Telecommunications

; 10%

MA Legal, accounting,

management, arhitecture, engineering,

technical testing and analysis activities;

6%

H Transportation and storage; 4%

CA Manufacture of food products, beverages and

tobacco products; 4%

Other; 9%

1Q 2019 Market capitalization per Sectors

Market capitalization HRK m. 2017 2018 % change 1Q 2018 1Q 2019 % change Stocks 138.257 132.749 -4% 141.057 136.197 -3% Bonds 97.821 100.800 3% 97.759 110.924 13% Structured products 0 0 0% 0 0 0%

Total 236.078 233.549 -1% 238.816 247.121 3%

Listed Financial Instruments 2017 2018 % change 1Q 2018 1Q 2019 % change Official & Regular Market 163 157 -4% 167 156 -7%

Equities 137 132 -4% 138 130 -6% Bonds 26 25 -4% 29 26 -10%

CE Enter* / Progress Market 20 0 -100% 17 2 -88% *CE Enter was shut down on 28 Sep 2018 and replaced with Progress Market on which, as of 1 Apr 2019, were two (2) companies (BC Institut i NEXE Grupa d.d.)



Financial position

Share statistics &

Expectations

ZSE Indices

About ZSE Group

Trading activity

Key events 2018

8

ZSE is the first regional exchange that has listed it`s shares on the regulated market.

It manages (1) Regulated market and (2) Progress Market.

As of Dec 30, 2015, ZSE Group consists of Zagreb Stock Exchange and Ljubljana Stock Exchange.

ZSE`s share in SEE Link, regional trading integration, equals to 33%. Also, ZSE holds 20% stake in Funderbeam South East Europe (crowdfunding platform for start-ups).

As of 31 Dec 2018, ZSE had 25 employees.

Supervisory Board

Management Board

Information Technology and Business Development

Tomislav Gračan Member of the

Board

Ivana Gažić President of the

Board

Markets and Surveillance

Information Technology

Business Development

Markets Department

Surveillance Department

Legal and General Affairs

Business Support

Legal Affairs and Human Resources

Compliance

Finances

Corporate Communications

Education department

Administration Office & Investor

Relations

2

4 5

2

2

2

1

1

2

Source: ZSE`s Employee Checklist on 31 Dec 2018

2

1

Source: www.zse.hr *ZSE publishes monthly full list of shareholders on it's web pages, according

to Capital Market Act

EUNEX-C d.o.o.; 20,0%

ADDIKO BANK D.D./PBZ CO OMF - KATEGORIJA

B - Skrbnički račun; 10,0%

PRIVREDNA BANKA ZAGREB D.D./BAKTUN, LLC - Skrbnički račun;

7,9%

ADDIKO BANK D.D./ICAM OUTFOX

MACRO INCOME FUND - Skrbnički račun; 6,0%

ZAGREBAČKA BANKA D.D./EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT - Skrbnički račun; 5,2%

ADDIKO BANK D.D./SZAIF D.D. -

Skrbnički račun; 4,9%

OTP BANKA D.D.; 4,6%

ERSTE & STEIERMARKISCHE BANK D.D.; 3,3%

ADDIKO BANK D.D; 2,9%

Other; 35,3%

ZSE`s shareholders as of 1 April 2019

Progress market department

1

http://www.zse.hr/


Financial position

Share statistics &

Expectations

ZSE Indices

About ZSE Group

Trading activity

Key events 2018

9

Supervisory Board

Management Board

Market Operations

Nina Vicar Member of the

Board

Aleš Ipavec President of the

Board

Information Technology

Legal Affairs

Market Operations

IT

General Affairs

Management Board Cabinet and PR

Development and sales

Finance, Internal Audit and HRM

2

2 1

1

2

Source: LJSE`s Employee Checklist on 31 Dec 2018

4

1

Source: www.zse.hr *ZSE publishes monthly full list of shareholders on it's web pages, according

to Capital Market Act

ZSE is the first regional exchange that has listed it`s shares on the regulated market.

It manages (1) Regulated market and (2) Progress Market.

As of Dec 30, 2015, ZSE Group consists of Zagreb Stock Exchange and Ljubljana Stock Exchange.

ZSE`s share in SEE Link, regional trading integration, equals to 33%. Also, ZSE holds 20% stake in Funderbeam South East Europe (crowdfunding platform for start-ups).

As of 31 Dec 2018, LJSE had 13 employees.

EUNEX-C d.o.o.; 20,0%

ADDIKO BANK D.D./PBZ CO OMF - KATEGORIJA

B - Skrbnički račun; 10,0%

PRIVREDNA BANKA ZAGREB D.D./BAKTUN, LLC - Skrbnički račun;

7,9%

ADDIKO BANK D.D./ICAM OUTFOX

MACRO INCOME FUND - Skrbnički račun; 6,0%

ZAGREBAČKA BANKA D.D./EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT - Skrbnički račun; 5,2%

ADDIKO BANK D.D./SZAIF D.D. -

Skrbnički račun; 4,9%

OTP BANKA D.D.; 4,6%

ERSTE & STEIERMARKISCHE BANK D.D.; 3,3%

ADDIKO BANK D.D; 2,9%

Other; 35,3%

ZSE`s shareholders as of 1 April 2019

http://www.zse.hr/


Financial position

Share statistics &

Expectations

ZSE Indices

About ZSE Group

Trading activity

Key events 2018

10

Source: ZSE Trading data Source: ZSE Trading data


0,000

0,250

0,500

0,750

1,000

1,250

1,500

0,000

5,000

10,000

15,000

20,000

25,000

30,000

Ind

ex

Turn

ove

r (H

RK

00

0)

CROBEXtr


0

250

500

750

1000

1250

0,000

5,000

10,000

15,000

20,000

25,000

30,000

Ind

ex

Turn

ove

r (H

RK

00

0)

CROBEXplus


0

200

400

600

800

1000

1200

0,000

2,000

4,000

6,000

8,000

10,000

12,000

Ind

ex

Turn

ove

r (H

RK

00

0)

CROBEXindustrija


0,000

1,000

2,000

3,000

4,000

5,000

0,000

2,000

4,000

6,000

8,000

10,000

12,000

Ind

ex

Turn

ove

r (H

RK

000

)

CROBEXturist



Financial position

Share statistics &

Expectations

ZSE Indices

About ZSE Group

Trading activity

Key events 2018

11

Source: ZSE Trading data


Source: ZSE Trading data

01002003004005006007008009001000

0,000

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

Ind

ex

Turn

ove

r (H

RK

00

0)

CROBEXnutris


200

300

400

500

600

700

800

900

1000

0

200

400

600

800

1000

1200

1400

Ind

ex

Turn

ove

r (H

RK

00

0)

CROBEXkonstrukt


0

250

500

750

1000

1250

1500

0,000

0,500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

Ind

ex

Turn

ove

r (H

RK

000

)

CROBEXtran


100

105

110

115

120

0,000

100,000

200,000

300,000

400,000

500,000

Ind

ex

Turn

ove

r (H

RK

00

0)

CROBIS



Financial position

Share statistics &

Expectations

ZSE Indices

About ZSE Group

Trading activity

Key events 2018

12

Ljubljana Stock Exchange

LJSE was successfully acquired by ZSE in December 2015 by which ZSE confirmed it`s role as a pioneer of the consolidation processes in the region.

In 2018, total turnover amounted to EUR 337,3m which is slight decrease compared to 2017 (-2,9%). Total market capitalization on 28.12.2018 amounted to EUR 33,4m which is an increase of 12,5% compared to 31.12.2017.

Out of total turnover achieved during 2018, 97,1% relates to shares and 2,9% to bonds.

SBI TOP, Slovenian Blue Chip index slightly decreased compared to 2017 (-0,18%)

Source: Ljubljana Stock Exchange; Extended statistical report 2018.

Source: Ljubljana Stock Exchange; Statistical Data

700

750

800

850

900

950

0

2.000

4.000

6.000

8.000

10.000

12.000

sij vlj ožu tra svi lip srp kol ruj lis stu pro

SBI

TO

P

TU

RN

OVER IN

000 E

UR

Type of security

Number of

Issuers

31.12.2018

Market

capital isation

(EURm)

31.12.2018

Turnover (EUR)Number of

trades

Shares 31 6.349 327.694.073 37.756

Prime Market 9 5.668 266.124.342 30.924

Standard Market 22 681 61.569.731 6.832

Entry Market 0 0 0 0

Bonds 16 27.017 9.628.045 352

Treasury Bills 1 0 0 0

Commercial Papers 2 0 0 0

TOTAL 50 33.366 337.322.118 38 .108


Financial position

Share statistics &

Expectations

ZSE Indices

About ZSE Group

Trading activity

Key events 2018

13

SEE Link – regional securities trading platform

SEE Link was established in 2014 by the Bulgarian, Macedonian and Zagreb Stock Exchange in order to spur liquidity and enable a more simple and efficient access to investors and local brokerages.

SEE LINK project is supported by European Bank for Reconstruction and Development providing a EUR 540,000 grant to establish electronic system for order-routing. In parallel, participating stock exchanges extended EUR 80,000 in capital strengthening of the SEE LINK.

SEE Link became fully operational in March 2016 and currently includes securities from seven stock exchanges; Bulgarian (BSE), Bosnia and Herzegovina (BLSE and SASE), Croatian (ZSE), Macedonian (MSE), Serbian (BELEX) and Slovenian (LJSE).

As of 31 Dec 2018, SEE Link represents a connection to markets with a capitalisation of over USD 50,0 billion allowing order routing of almost 1,200 securities.

Founders of SEE Link in 2014.

Other SEE Link members


Financial position

Share statistics &

Expectations

ZSE Indices

About ZSE Group

Trading activity

Key events 2018

14

Funderbeam South East Europe

The stock market should serve as a "financial hub" for financing companies at all stages of growth (shown on picture bellow).

Stock exchanges that are focused on all growth phases of companies can be a significant growth generator of the economy.

In October 2016 ZSE presented Funderbeam SEE – a new model of start-up financing.

Funderbeam is a crowdfunding platform for start-ups enabling investors, immediately after the initial investment stage, to begin trading their units thanks to the innovative system based on bitcoin technology.

Stock market should be present in all growth stages of a Company

In order to provide a legal framework for the project, together with the Estonian partner Funderbeam Ventures, the Zagreb Stock Exchange established Funderbeam South-East Europe d.o.o. company based in Zagreb in which it holds an equity participation of 20 %.

In its first stage, Funderbeam SEE will focus on companies from Croatia, Slovenia and Serbia while planning to expand its business to the entire region in the future and will provide access to the market by global investors right from the start.

As of 31 Mar 2019, there were 7 Croatian companies that raised capital through Funderbeam platform: Include, Aspida, Sense Consulting, Medvedgrad Craft Brewery, Entrio, Top Digital Agency and OmoLab.

Crowdfunding Platform: Funderbeam

SEE

Private Company Market

Z

Regulated Market (lower segment)

Regulated Market (higher

segment)


Financial position

Share statistics &

Expectations

ZSE Indices

About ZSE Group

Trading activity

Key events 2018

Progress Market – fresh capital for SME`s

Progress market is multilateral trading facility in Croatia and Slovenia, managed by the Zagreb Stock Exchange, Inc., intended for small and medium enterprises.

The cooperation between Zagreb and Ljubljana Stock Exchanges will enable small and medium-sized companies to raise capital in Croatia and Slovenia.

The main problems which Croatian and Slovenian SME`s encounter are growth financing and ownership transfer. Progress Market is designed to solve these problems.

The main characteristic of the Progress Market is lower transparency requirements for Issuers compared to the regulated market and, consequently, a higher associated risk of investing in Financial Instruments traded on the Progress Market.


Crowdfunding Platforma: Funderbeam

SEE


Z



segment)

Specificity for Progress Market is that every new Issuer has to have an Advisor for a period of two years after listing. As of April 2019, there are 11 Croatian and 7 Slovenian Authorised advisors.

NEXE Grupa d.d. and BC Institut d.d. are first issuers on Progress Market.

On 29 January 2019, the Croatian Financial Services Supervisory Agency approved the registration of the Zagreb Stock Exchange's Progress Market as an SME growth market, making Progress among the 4 SME growth markets in Europe.

Authorized Advisors


Financial position

Share statistics &

Expectations

ZSE Indices

About ZSE Group

Trading activity

Key events 2018


Crowdfunding Platforma: Funderbeam

SEE


Z



segment)

800

850

900

950

1.000

1.050

2.1

.201

8

16

.2.2

01

8

2.4

.201

8

17

.5.2

01

8

1.7

.201

8

15

.8.2

01

8

29

.9.2

01

8

13

.11

.20

18

28

.12

.20

18

11

.2.2

01

9

CROBEX vs CROBEXprime

CROBEXprime

CROBEX stand

As of June 2019, ZSE will introduce Adria Prime Index which will

encompass both Croatian and Slovenian Prime Market companies


Financial position

Share statistics &

Expectations

ZSE Indices

About ZSE Group

Trading activity

Key events 2018

17

Total consolidated revenue for 2018 amounts to HRK 23,9m which is a slight decrease compared to 2017. (-1,4%). Commissions, with 46%, make the largest part of sales revenue.

Other operating revenue remained stable with 1,2% YoY growth. Income from the supply of information remained the most important other operating income with a share of 66%.

Source: annual report


Source: annual reports


2016

2017

Consolidated Income Statement

HRK 000 2017 2018 % change

Revenue 24.227 23.888 -1.4%

Sales revenue 15.858 15.421 -2.8%

Other operating income 8.369 8.467 1.2%

Operating expenses (26.630) (22.395) -15.9%

Staff costs (10.940) (10.853) -0.8%

Software and licenses (6.531) (3.564) -45.4%

Professional services (2.042) (1.497) -26.7%

Rent (1.291) (1.380) 6.9%

Utility expenses (831) (506) -39.1%

Fees and charges (736) (787) 6.9%

Post and telephone (483) (282) -41.6%

Other expenses* (3.776) (3.526) -6.6%

EBITDA (2.403) 1.493 162.1%

Depreciation (1.792) (1.134) -36.7%

EBIT (4.195) 359 -108.6%

Net financial result 607 54 -91.1%

EBT (3.588) 413 -111.5%

Share of loss of equity -

accounted investees (56) (124) 121.4%

Corporate Income Tax (111) (99) -10.8%

Profit/(Loss) for the Period (3.755) 190

*Other expenses include entertainment, business travel, write off of

software, impairment costs, other expenses

Sales revenue 2017 2018

Commissions 7.757 7.052

Quotation maintaining 6.767 6.819

Quotation fee 763 1.029

Membership fees 571 521

Total 15.858 15.421

49%

43%

5% 4%

Commissions; 46% Quotation

maintaining; 44%

Quotation fee; 7% Membership fees;

3%

Sales revenue; 2017 vs 2018

Supply of information;

66%

Seminars; 17%

Income from grant; 0%

API services; 0%

Sale and lease of equipment;

2%

Other income; 14%

Other operating income 2018

14,469 14,129 14,513

24,205 24,227 23,888

10,000

12,000

14,000

16,000

18,000

20,000

22,000

24,000

26,000

2013 2014 2015 2016 2017 2018

HR

K 0

00

Revenue Zagrebačka burza d.d. 2013 - 2018*

2013 2014 2015 2016 2017 2018

*since 2016 revenue is consolidated


Financial position

Share statistics &

Expectations

ZSE Indices

About ZSE Group

Trading activity

Key events 2018

18

In 2018 ZSE Group`s operating expenses were equal to HRK 22,4m which represents a significant decrease of 15,9%.

The most important cost are staff costs (HRK 10,9m) and software and licenses costs (HRK 3,6m). As of 31 Dec 2018, Group employs 38 employees.

Other expenses include consultancy, legal, audit and accountings fees, postal and communication services, utilities, entertainment, business trips, write offs, etc.

ZSE Group`s EBITDA considerably improved. Even though revenue decreased by 1,4%, operating expenses decreased by 15,9%. EBITDA for 2018 amounts to HRK 1,5m while EBITDA in 2017 was negative.

After loss in 2017, ZSE Group achieved profit in 2018 in the amount of HRK 190k.

LJSE stand alone results show a slight increase in operating revenue and a 4,6% increase in EBITDA which, for 2018, amounts to HRK 1,2m.

Source: annual data


2016

2017


Consolidated Income Statement

HRK 000 2017 2018 % change

Revenue 24.227 23.888 -1.4%

Sales revenue 15.858 15.421 -2.8%

Other operating income 8.369 8.467 1.2%


Staff costs (10.940) (10.853) -0.8%

Software and licenses (6.531) (3.564) -45.4%

Professional services (2.042) (1.497) -26.7%

Rent (1.291) (1.380) 6.9%

Utility expenses (831) (506) -39.1%

Fees and charges (736) (787) 6.9%

Post and telephone (483) (282) -41.6%

Other expenses* (3.776) (3.526) -6.6%

EBITDA (2.403) 1.493 162.1%

Depreciation (1.792) (1.134) -36.7%

EBIT (4.195) 359 -108.6%

Net financial result 607 54 -91.1%

EBT (3.588) 413 -111.5%

Share of loss of equity -

accounted investees (56) (124) 121.4%

Corporate Income Tax (111) (99) -10.8%

Profit/(Loss) for the Period (3.755) 190

*Other expenses include entertainment, business travel, write off of

software, impairment costs, other expenses

38%

23%

7%

5%

3% 3% 2%

13%

6%

Staff costs; 46%

Software and licenses; 15%

Professional services; 6%

Rent; 6%

Utility expenses; 2%

Fees and charges; 3%

Post and telephone ; 1%

Other expenses*; 15%

Depreciation; 5%

Operating costs; 2017 vs 2018

Financial results (LJSE stand alone)

HRK 000 2017 2018 % change

Operating revenue 10.738 10.756 0.2%


EBITDA 1.190 1.244 4.6%

Depreciation (531) (767) 44.3%

EBIT 658 478 -27.5%

Net Financial Results 36 6 -83.7%

Other - net (29) (55) 92.9%

EBT 666 428 -35.7%

CIT (74) (81) 8.9%

Profit for the period 592 348 -41.3%


Financial position

Share statistics &

Expectations

ZSE Indices

About ZSE Group

Trading activity

Key events 2018

19

ZSE Group`s total assets decreased by 0,9% in 2018 compared to 2017.

Non-current assets decreased by 13,7% mostly due to decrease in buildings net book value.

Current assets increased by 8,8% which was mainly due to cash and cash equivalents increase (HRK 2,0m). Receivables also increased mainly due to account receivables increase.

Shareholder`s equity remained stable. Non current liabilities relate to deferred tax liability and financial leasing.

Current liabilities include accounts payable (HRK 2,0m), contractual liabilities (received fees for which services have not yet been executed) and provisions (HRK 4,2m) and other current liabilities.

The group is significantly capitalized and has a significant amount of cash and fast-selling financial assets. It only invests in low-risk investments. Also, LJSE and ZSE meet their legal requirements regarding minimum capital adequacy under the Capital Market Act.


Financial position (Consolidated)

000 HRK 2017 2018 % change

Non-current assets 20.000 17.258 -13.7%

Current assets 26.443 28.764 8.8%

Inventory 10 7 -30.0%

Receivables 3.225 4.007 24.2%

Current financial assets 18.217 17.693 -2.9%

Cash and cash equivalents 4.482 6.527 45.6%

Prepaid expenses and

accrued income 509 530 4.1%

Total assets 46.443 46.022 -0.9%

Shareholders’ equity 39.878 39.505 -0.9%

Non current liabilities 326 254 -22.1%

Current liabilities 3.003 6.263 108.6%

Accrued expenses and

deferred income 3.236 - -100.0%

Total equity & liabilities 46.443 46.022 -0.9%

43% 37%

57% 63%

86% 86%

13% 14% 1% 1%

2017 2018

Assets, liabilities and capital breakdown 2018 vs 2017

Non-current assets Current assets

Shareholders’ equity Current liabilities

20


Financial position

Share statistics &

Expectations

ZSE Indices

About ZSE Group

Trading activity

Key events 2018

Share Statistics

Share information

Symbol ZB-R-A

ISIN HRZB00RA0003

Last price (31 Dec 2018) HRK 16.00

52 WK High HRK 16.90

52 WK Low HRK 10.00

Total volume (m) 2.46

Total turnover (HRK m) 40.19

Shares outstanding 4.635.700

0

5

10

15

20

25

0,000

1,000

2,000

3,000

4,000

5,000

6,000

7,000

Ave

rage

pri

ce

Turn

ove

r (H

RK

00

0)

ZB-R-A Turnover and share price

Turnover (HRK 000) Average price


Financial position

Share statistics &

Expectations

ZSE Indices

About ZSE Group

Trading activity

Key events 2018

21

Management Expectations

difficult year due to the lack of liquidity

potential changes to the Price list

creation of the first common index with Ljubljana Stock Exchange (ADRIA prime)

examine possibilities for receivables market

migration to the new trading system (T7)

changes of the Corporate Governance Code

Documents

Zagreb Stock Exchange - ZSE · 2 D.D./ICAM OUTFOX 2 1 1 2 Source: ZSE`s Employee Checklist on 31 Dec 2018 2 1 Source: *ZSE publishes monthly full list of shareholders on it's web