TAXATION Capital gains earned by Polish individuals are taxed at a flat rate of 19%. The same rate applies to capital gains earned by legal persons. Foreign investors are generally subject to the same regulations as domestic ones, with their tax obligations being additionally regulated by the respective double taxation avoidance treaties. Pursuant to such treaties, income realised by foreign investors on the WSE is taxed according to their country of residence (domicile). However, in order to take advantage of those provisions, foreign investors must have a certificate of residence, otherwise their income will be taxed in Poland (at 19%). There are no limitations on the transfer of capital income by foreign investors. Książęca 4 00-498 Warsaw, Poland THE WARSAW WSE INDICES tel. + 48 22 628 32 32 fax + 48 22 537 77 90 STOCK EXCHANGE The Warsaw Stock Exchange calculates and publishes a number of price and income indices. www.wse.com.pl Among them are: [email protected] - AN INTRODUCTION WIG20 – this index covers the 20 largest (in terms of free float value) and most liquid companies listed on the WSE (‘blue chips’), mWIG40 – index of 40 medium size companies (in terms of free float and trading value), sWIG80 – index of 80 smaller companies, WIG – the oldest index of the WSE, which covers all companies meeting the relevant minimum entry criteria (free float size and financial standing), WIG-PL – domestic companies index, WIGdiv – an index covering 30 constituents of WIG20, mWIG40 and sWIG80 which pay the highest dividends (at least three times during the past five years). USEFUL LINKS RESPECT Index – an index of socially responsible companies which represent the highest standards in corporate governance, information governance, investor relations, as well as environ- • WSE markets mental and social aspects. www.wse.com.pl www.newconnect.eu For more information about the WSE indices, please visit our website www.wse.com.pl (section: Market Data). www.wsecatalyst.pl www.poee.pl WSE ONLINE • National Depository for Securities www.kdpw.pl More information about the Warsaw Stock Exchange, its products and services is available on the WSE website www.wse.com.pl. The website provides information on the cash and derivatives markets. It features press releases, official announcements, trading and index data. It also provides legal regulations, a com- prehensive statistics database, a description of the trading system and traded instruments, contact details for listed companies and WSE member firms. NewConnect has its own website, www.newconnect.eu, featuring trading data and comprehensive infor- mation on the functioning of the NewConnect market, contact details for listed companies and Authorised Advisers. The publication of this document does not represent a solicitation nor should it be considered a suggestion by At www.wsecatalyst.pl you will find a website dedicated to the Catalyst debt market. The site provides the Warsaw Stock Exchange as to the suitability of the information on authorised and listed instruments, market data, quotations, educational materials for investment, if any, herein described. This document is meant for information purposes and personal use only. The investors, information for potential issuers etc. Warsaw Stock Exchange accepts no liability resulting from any inaccuracies and/or errors and/or omissions nor for There are two additional WSE information platforms which can be useful for investors: any decisions and/or actions taken by any party based on www.WSEInfoSpace.eu – provides information about companies listed on the WSE, their respective markets this document. and sectors as well as the legal and macroeconomic environment. www.WSEInternational.eu – focuses on WSE foreign listings, providing information about foreign companies listed in Warsaw, as well as details concerning the listing process itself. www.wse.com.pl NUMBER OF IPOs IN EUROPE IN 2010 Catalyst is a debt instruments market for municipal, corporate and mortgage – REGULATED AND ALTERNATIVE MARKETS (TOP 6 EXCHANGES) bonds. Opened on 30 September 2009, it consists of regulated markets and alternative trading systems offering a competitive trading environment for both 140 retail and wholesale clients. After more than a year of operation, a total of The Warsaw Stock Exchange (WSE) is the most advanced market in the CEE region and one of 97 series of debt instruments from 49 issuers were listed on Catalyst at the end the most dynamically growing markets in Europe. It is the leader in its region in terms of capitalisation, trading 120 of 2010. value, number and type of traded instruments, as well as IPOs. Its growth is facilitated by its well-developed 123 100 infrastructure, typical of a mature market, as well as sound regulatory environment in full compliance with 120* Poee, the WSE’s energy market, is the youngest market of the Warsaw bourse, EU standards. 80 launched in December 2010. It marked the expansion of WSE’s operational acti- vities into the commodities market. Poee is a transaction platform for all cate- Today, the WSE is more than a local market. Medium-sized and small enterprises as well as large companies representing all sectors of the economy are present on the Warsaw bourse. At the end of 2010, the shares of 60 gories of participants on the energy market: producers, traders and end users. 400 companies, including 27 foreign ones, were traded on the WSE Main List. 40 37 20 32 ORGANISATION OF TRADING 24 24 0 Trading on the WSE is conducted under two systems: continuous trading and single-price auctions. Starting MARKET INDICATORS – WSE Main List as at end of 2010 LSE Group Warsaw* Luxembourg NYSE Deutsche Nasdaq from 2011 the duration of WSE sessions has been brought in line with West European markets: sessions have Number of companies 400 Euronext Boerse OMX been extended by one hour and now close at 5:35 pm. On the basis of a contract with NYSE, signed in July 2010, work is underway to upgrade the current transaction system which will improve efficiency and offer incl. foreign companies 27 Source: IPO Watch Europe Report (Q1-Q4 2010), WSE. a broader range of functionalities, thus paving the way for further dynamic growth of the market. Market value of domestic companies EUR 137 billion *Incl. 8 companies which made the transition from NewConnect. Market value of foreign companies EUR 64 billion Cash market – trading value EUR 104.6 billion (doublecounted) WSE INVESTOR STRUCTURE Futures market – trading volume 14.7 million THE WARSAW STOCK EXCHANGE AS A WSE-LISTED COMPANY A balanced investor structure has been a significant factor fuelling the growth of the WSE for many years. Last P/E 17.48 As a crowning achievement of its robust growth, the Warsaw Stock Exchange year saw a steep increase in the number of investment accounts, primarily thanks to investors interested in P/BV 1.59 made a public offering and introduced its shares to its own Main List on major public offerings, including the IPO of the Warsaw Stock Exchange itself. At the end of December 2010 9 November 2010. As many as 323,000 individual subscribers and strong the number of investment accounts at various brokerage offices and houses reached 1,477,417, which was an interest among institutional investors resulted in an immense oversubscrip- increase of 30% when compared with the end of 2009. tion, which reflects the Company’s strong position and its excellent prospects for future growth. As a public company, the WSE will continue to raise its international profile by expanding its MARKET CAPITALISATION AND NUMBER OF COMPANIES product range for investors and issuers, seeking new intermediaries and continuing to improve the market in – WSE MAIN LIST 2000-2010 terms of organisation, technologies and regulations. INVESTOR STRUCTURE 2007 – 1H 2010 (%) 350 000 450 Investors Instruments 1H 2010 2009 2008 2007 CASH & DERIVATIVES MARKETS UNDER ONE ROOF Shares (Main List) 47 36 43 33 400 Foreign 300 000 The Warsaw Stock Exchange organises trading in financial instruments on four markets: Futures contracts 12 11 10 10 Market capitalisation (in EUR million) investors Number of companies (year-end) 350 Options 10 4 12 12 250 000 The Main List has been in operation since 1991. This is a regulated market 300 supervised by the Polish Financial Supervision Authority. The following Domestic Shares (Main List) 20 27 18 30 200 000 financial instruments are traded there: equities, bonds, pre-emptive rights, individual Futures contracts 52 52 53 56 250 rights to shares, investment certificates, structured products, ETFs and investors Options 58 65 58 53 200 derivatives. At the end of 2010 the Main List had 400 companies, with total 150 000 capitalisation reaching EUR 201 billion. Domestic Shares (Main List) 33 37 39 37 Market capitalisation capitalisation Market 150 Number of companies Number of institutional Futures contracts 36 37 37 34 100 000 The WSE derivatives market was launched in 1998. Investor interest in derivative products has been steadily investors Options 32 31 30 35 100 growing year by year. Today, the Warsaw Stock Exchange is the leading and most dynamic market for 50 000 derivative instruments in the CEE region. 50 0 0 The following derivative instruments are traded on the WSE: 1 4 5 6 7 9 00 0 0 0 0 0 0 10 0 0 0 0 008 0 20 2 2002 2003 20 2 2 2 2 2 20 • WIG20 and mWIG40 index futures, • USD/PLN, EUR/PLN and CHF/PLN futures, WSE MEMBER FIRMS • Equity futures for selected companies, Investors around the world have direct access to the WSE trading system via a number of Exchange Members. • Index options (WIG20), At the end of 2010 a total of 49 organisations held the status of WSE member, of which 28 were located in The Warsaw Stock Exchange has been among the European champions in terms of IPO activity in the past • MiniWIG20 (IPUs).