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Annual Report 2017 Ljubljana Stock Exchange

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Annual Report 2017 Ljubljana Stock Exchange Annual Report 2017 Ljubljana Stock Exchange TABLE OF CONTENTS INTRODUCTION ......................................................................................................................... 2 LJUBLJANA STOCK EXCHANGE 2017 HIGHLIGHTS .................................................................... 3 LJUBLJANA STOCK EXCHANGE COMPANY PROFILE .................................................................. 4 Company ID ................................................................................................................................... 4 Business ......................................................................................................................................... 4 REPORT FROM THE MANAGEMENT BOARD ................................................................................ 5 REPORT FROM THE SUPERVISORY BOARD ................................................................................ 7 BUSINESS REPORT ................................................................................................................... 11 Corporate Governance Statement ................................................................................................... 12 General Meeting ............................................................................................................................ 12 Supervisory Board ......................................................................................................................... 12 Management Board ....................................................................................................................... 13 Board of Members and Board of Issuers ......................................................................................... 15 Statement on Compliance with the Corporate Governance Code ....................................................... 15 Internal controls and risk management ........................................................................................... 19 Internal audit ................................................................................................................................ 21 External audit ............................................................................................................................... 21 Other information (as at 31 December 2017) .................................................................................. 21 MISSION, VISION AND STRATEGIC OBJECTIVES .................................................................... 22 Mission ......................................................................................................................................... 22 Vision ........................................................................................................................................... 22 Strategy and strategic objectives .................................................................................................... 22 BASIC MACROECONOMIC INDICATORS FOR SLOVENIA ......................................................... 23 LJUBLJANA STOCK EXCHANGE OPERATIONS IN 2017 ............................................................ 23 Turnover on the Ljubljana Stock Exchange ..................................................................................... 24 LJSE Member Firms Tunover in 2017 .............................................................................................. 24 The LJSE blue chip index SBI TOP .................................................................................................. 25 IMPORTANT LJSE ACTIVITIES IN 2017 ................................................................................... 27 Ljubljana Stock Exchange development and promotion activities in 2017 .......................................... 27 Market surveillance and best market practices ................................................................................ 29 Monitoring member firms and trades .............................................................................................. 29 HUMAN RESOURCES MANAGEMENT ........................................................................................ 29 Demographics, and employees' academic profiles ........................................................................... 30 BUSINESS OPERATIONS ANALYSIS ......................................................................................... 32 Ljubljana Stock Exchange operations in 2017 .................................................................................. 32 Profit or loss for the period ............................................................................................................ 35 OBJECTIVES AND PLANS FOR 2018 ......................................................................................... 37 FINANCIAL STATEMENTS AND DISCLOUSURES ...................................................................... 38 MANAGEMENT RESPONSIBILITY FOR THE FINANCIAL STATEMENTS (STATEMENT ON MANAGEMENT RESPONSIBILITY) ..................................................................................... 39 FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR 2017 .................................................... 40 INDEPENDENT AUDITOR’S REPORT ........................................................................................ 67 CONTACT INFO ......................................................................................................................... 71 1 | Ljubljana Stock Exchange 2017 Annual Report INTRODUCTION 2 | Ljubljana Stock Exchange 2017 Annual Report Ljubljana Stock Exchange 2017 Highlights Turnover and EBITDA 2.500 EUR 1,439,364 SALES REVENUE 2.000 1.500 1.000 EUR 166,103 EUR thousand in EARNINGS BEFORE 500 INTEREST, TAXES, DEPRICIATION, AND 0 AMORTIZATION 2013 2014 2015 2016 2017 (EBITDA) 2017 Turnover EBITDA (in EUR) Key financial figures for the company Ljubljana Stock Exchange 2017 2016 2015 2014 2013 Called-up capital 1,400,893 1,400,893 1,400,893 1,400,893 1,400,893 Equity 2,591,903 2,376,378 2,286,827 2,662,479 2,382,999 Assets 2,938,150 2,654,468 2,642,682 2,896,847 2,595,175 Revenues (total) 1,445,485 1,421,246 1,493,896 1,793,547 1,716,686 - revenues from trading fees 464,127 502,011 516,571 731,374 458,472 - other revenues 981,358 919,235 977,325 1,062,173 1,258,215 Costs (total) 1,352,242 1,355,835 1,579,384 1,498,910 1,751,676 - labour costs 615,491 546,430 758,576 572,227 675,001 - other costs 736,751 809,405 820,808 926,683 1,076,675 EBITDA 119,792 137,390 68,830 470,768 166,017 Operating profit / loss (EBIT) 166,103 63,427 -90,445 285,292 -48,297 Profit / loss before tax 88,421 65,411 -85,488 294,637 -34,990 Taxes 93,243 24,140 -10,684 -15,157 3,952 Net profit / loss for the period -13,924 89,551 -96,172 279,480 -31,039 Nr. of shares 33,571 33,571 33,571 33,571 33,571 Book value on 31 Dec. 77.21 70.79 68.12 79.31 70.98 (capital / no. of shares) Dividend payment per share in EUR - - - 279,480 - Number of employees by man-hours 11.37 9.73 10.05 10.08 12.27 Number of employees on 31th Dec 11 (+3*) 12 10 10 (+1*) 12 3 | Ljubljana Stock Exchange 2017 Annual Report Ljubljana Stock Exchange Company Profile Company ID Name Ljubljanska borza, d. d., Ljubljana (English: Ljubljana Stock Exchange Inc., short: LJSE) Registered Office Slovenska cesta 56, 1000 Ljubljana, Slovenia Telephone 01 471 02 11 Fax 01 471 02 13 E-mail Address [email protected] Website www.ljse.si Incorporated on 26 December 1989 Share Capital EUR 1,400,893.01 Shareholders Zagrebačka burza d.d. – 100% owner Core Business Regulared Securities Market Operator Business Activity Code 67.110 Registration Number 5316081 VAT Identificaiton Number 59780061 Size Small Company (in accordance with Article 55 of the Companies Act (ZGD-1) - a large company for the purpose of preparing the books and annual report) Companies Register Entry 1/04218/00, District Court of Ljubljana Business The Ljubljana Stock Exchange (hereinafter: LJSE or company) is a joint stock company founded to foster the matching of supply and demand in securities trading and in trading in other financial instruments. It ensures that transactions in securities and other financial instruments are carried out in a regulated, transparent, liquid and efficient manner, in line with the law and other regulations. The company's objective is to maximise company value for shareholders in the long-term, parallel to ensuring the development, stability and safety of the Slovenian regulated market and complying with the regulations governing the market in financial instruments. Transactions in securities and other financial instruments are organised pursuant to the law, the LJSE Articles of Association, the LJSE Rules, the LJSE Instructions and other LJSE acts adopted by the LJSE Management Board. The company’s Articles of Association stipulate the following as its business activities: • Operating the stock exchange market in financial instruments for which it had obtained the Securities Market Agency’s authorisation; • Publishing securities prices; • Providing information on the supply, demand and market value of securities, and other information on securities; • Analytic research work in the financial market; • Providing IT services to support trading; • Operating the Slovenian multilateral trading facility (MTF); • Operating the Slovenian officially appointed mechanism (OAM); • Selling and maintaining the software developed for the purposes of providing its services. 4 | Ljubljana Stock Exchange 2017 Annual Report Report
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