HELLENIC EXCHANGES – ATHENS STOCK EXCHANGE S.A. 2019 ANNUAL FINANCIAL REPORT For the period 1 January 2019 – 31 December 2019 In accordance with the International Financial Reporting Standards ATHENS EXCHANGE GROUP 110 Athinon Ave. GEMI: 099755108 10442 Athens GREECE Tel:+30-210/3366800 Fax:+30-210/3366101 WorldReginfo - 1671b483-9caa-4103-b6ea-ff8480452844 2019 ANNUAL FINANCIAL REPORT Table of contents 1. DECLARATIONS BY MEMBERS OF THE BOARD OF DIRECTORS ............................................................................ 4 2. REPORT OF THE BOARD OF DIRECTORS ............................................................................................................... 6 CORPORATE GOVERNANCE STATEMENT .......................................................................................................... 36 TRANSACTIONS WITH ASSOCIATED COMPANIES .............................................................................................. 74 REPORT IN ACCORDANCE WITH ARTICLE 4 OF LAW 3556/2007 ....................................................................... 77 Alternative Performance Measures .................................................................................................................. 79 Composition of the BoDs of the companies of the Group ................................................................................ 82 Significant events after 31.12.2019 ................................................................................................................... 84 3. AUDIT REPORT BY THE INDEPENDENT CERTIFIED AUDITORS ACCOUNTANTS .................................................. 85 4. 2019 COMPANY & CONSOLIDATED FINANCIAL STATEMENTS ........................................................................... 92 4.1. Annual Statement of Comprehensive Income...................................................................................... 93 4.2. Annual Statement of Financial Position................................................................................................ 95 4.3. Annual Statement of Changes in Equity ............................................................................................... 96 4.4. Annual Cash Flow Statement ................................................................................................................ 98 5. NOTES TO THE 2019 ANNUAL FINANCIAL STATEMENTS ................................................................................... 99 5.1. General information about the Company and its subsidiaries ........................................................... 100 5.2. Basis of preparation of the Company and Consolidated annual financial statements for 2019 ........ 100 5.3. Basic Accounting Principles ................................................................................................................ 101 5.4. Risk Management ............................................................................................................................... 117 5.5. Capital Management .......................................................................................................................... 124 5.6. Segment Information.......................................................................................................................... 124 5.7. Overview of the capital market .......................................................................................................... 125 5.8. Trading ................................................................................................................................................ 125 5.9. Clearing ............................................................................................................................................... 126 5.10. Settlement .......................................................................................................................................... 126 5.11. Exchange services ............................................................................................................................... 127 5.12. Depository Services ............................................................................................................................ 127 5.13. Clearing House Services ...................................................................................................................... 128 5.14. Market data ........................................................................................................................................ 128 5.15. IT services ........................................................................................................................................... 129 5.16. Revenue from re-invoiced expenses .................................................................................................. 129 5.17. Ancillary Services (Colocation, Xnet, LEI) ............................................................................................ 130 5.18. Other services ..................................................................................................................................... 130 5.19. Hellenic Capital Market Commission fee ............................................................................................ 131 5.20. Personnel remuneration and expenses .............................................................................................. 131 5.21. Third party remuneration & expenses ............................................................................................... 132 5.22. Utilities................................................................................................................................................ 133 2 WorldReginfo - 1671b483-9caa-4103-b6ea-ff8480452844 2019 ANNUAL FINANCIAL REPORT 5.23. Maintenance / IT Support................................................................................................................... 133 5.24. Other taxes ......................................................................................................................................... 133 5.25. Building / equipment management ................................................................................................... 133 5.26. Other operating expenses .................................................................................................................. 133 5.27. Re-invoiced expenses ......................................................................................................................... 134 5.28. Expenses for ancillary activities .......................................................................................................... 134 5.29. Owner occupied tangible assets and intangible assets ...................................................................... 135 5.30. IFRS 16 Standard - Leases ................................................................................................................... 138 5.31. Real Estate Investments ..................................................................................................................... 140 5.32. Investments in subsidiaries and other long term claims .................................................................... 141 5.33. Trade and other receivables ............................................................................................................... 142 5.34. Financial assets at fair value through other income........................................................................... 144 5.35. Cash and cash equivalents .................................................................................................................. 145 5.36. Third party balances in bank accounts of the Group .......................................................................... 145 5.37. Deferred Tax ....................................................................................................................................... 146 5.38. Contractual obligations ...................................................................................................................... 147 5.39. Equity and reserves ............................................................................................................................ 148 5.40. Grants and other long term liabilities ................................................................................................. 151 5.41. Provisions ........................................................................................................................................... 151 5.42. Trade and other payables ................................................................................................................... 153 5.43. Taxes payable ..................................................................................................................................... 154 5.44. Social security organizations .............................................................................................................. 155 5.45. Current income tax and income taxes payable .................................................................................. 155 5.46. Related party disclosures.................................................................................................................... 157 5.47. Earnings per share and dividends payable ......................................................................................... 158 5.48. Revenue