BRATISLAVA STOCK EXCHANGE

Transcription

1 Annual Report 2008 BRATISLAVA STOCK EXCHANGE

2 C O N T E N T S 1. INTRODUCTION BASIC INFORMATION SECURITIES ON STOCK EXCHANGE MARKETS TRADING CLEARING AND SETTLEMENT OF TRANSACTIONS MEMBERSHIP INSPECTION MARKETING ACTIVITIES ECONOMIC RESULTS OF THE YEAR ANNEXES Annex 1: BSSE Bodies, BSSE Organisational Structure Annex 2: Securities Listed as of 31 December 2008 Annex 3: Trading Volume Statistic of the Year 2008 Annex 4: Members and Entities Authorised to Trade on BSSE as of 31 December 2008 Annex 5: BSSE Financial Statements for the Year 2008, Compiled According to IFRS 2

3 1. INTRODUCTION The year 2008 was marked by the culmination of the long-running mortgage crisis in the USA which intensified problems on the world s financial markets, shook the financial stability of the whole world and evolved into a global financial crisis. Interventions of many governments and central banks notwithstanding, turbulences and commotions on the financial markets took their toll in the form of collapse of big and renowned financial institutions, and lead to an overall loss of confidence in the financial sector. The panic on the financial markets caused a slump of prices of share issues on stock exchanges across the globe. The European capital markets witnessed a significant decline of market capitalisation, which totalled 6.18 billion EUR at the end of December, representing a nearly 50-percent fall against the end of December Although the size of the Slovak stock market is almost insignificant in comparison with other countries, the market could not avoid the global trend as the market capitalisation of the shares traded on Bratislava Stock Exchange (BSSE) fell by percent. Given that investments into Slovak shares have been at very low levels, the BSSE did not register an increased number of transactions in share issues. In Slovakia, the reaction of investors to the outbreak of the crisis posed a problem primarily for companies managing mutual funds from which investors were withdrawing their shares. In order to ensure sufficient liquidity, they chose to sell government bonds which, on the other hand, still remained an acceptable investment tool to put free cash into banks. As the interest rates fell, their price gradually increased and yields went down. The decline, however, was somewhat slower than that of the yields of bonds in the euro area, which led to an increased number of transactions in government bonds on the BSSE. Out of the total volume of bond transactions concluded on the Stock Exchange in the course of the year 2008, 50 percent were made in the last three months of the year. This was reflected in the whole year s volume of transactions on the BSSE, which doubled in comparison with the year From a viewpoint of the year 2008 s economic results, we can say that the financial crisis has not so far negatively affected the Stock Exchange s economy. The BSSE ended the fiscal year of 2008 with a profit of 5.4 million SKK. It is by 1.15 million SKK more than the profit achieved in 2007, and by 1.22 million SKK more than the economic result projected in the Stock Exchange s budget for the year The first and determining priority of the Stock Exchange for the year 2008 was a problem-free transition from the Slovak koruna to the euro currency. The underlying aspects of the project, which was based on the Framework schedule of preparatory work and actual activities connected with the euro introduction at the BSSE and CDCP, included modifications in information systems based on previous analyses and the wording of the Act on the Euro Introduction in the Slovak Republic, as well as the testing of their internal/external functionality in order to ensure their problem-free introduction into routine operation. The Stock Exchange successfully met this fundamental goal and, on 5 January 2009, launched trading in all modules of the trading system in the new currency and without a need for additional software corrections. 3

4 A decision of the National Bank of Slovakia concerning a change of the licence to establish and operate the BSSE came into effect on 27 March Following said decision, the operation of a Multilateral Trading Facility (MTF) was added to the object of the BSSE s activity. After making necessary technical modifications in the Stock Exchange systems and selecting financial instruments for the MTF list, the BSSE started to organise trading on this unregulated market with effect from 1 May By means of the media, the Stock Exchange informed the general public about the possibility to use this system. The information was also provided to Stock Exchange members, selfgoverning districts in Slovakia as well as interest groups of minority shareholders who were thus given a tool to find a counter-party for the purchase or sale of financial instruments, primarily those securities that were publicly traded in the past and continue to be in demand to this day. In the course of the year 2008, the Stock Exchange created conditions for admission of retail government bonds and investment certificates to the market. Based on the comments of market participants, including the Stock Exchange, ARDAL has prepared a project of issuance of retail government bonds which is currently being reviewed by the Ministry of Finance of the Slovak Republic. The BSSE also communicated with commercial banks with respect to the issuance of investment certificates. Taking into account an increased cost of acquisition of this financial instrument, a higher investment risk associated with it, the need for a more intensive marketing support of the sale of investment certificates, the continuing financial crisis and the resulting heightened protection of their deposit products, the commercial banks decided to postpone the preparation of issue of investment certificates for the time being. Communication with the Central Securities Depository of the Slovak Republic (CDCP), concerning the manner of clearing and settlement of foreign securities, was in progress during the entire year This issue is key in the whole system of trading of foreign securities. In the course of the year, the Stock Exchange took all necessary measures including amendments to the Stock Exchange Rules needed for admission of foreign securities to the BSSE s markets so that, once the clearing and settlement system is made accessible by the CDCP, trading of these securities can start in the shortest possible time. On the occasion of the 15 th anniversary of the start of trading, the Stock Exchange hosted a meeting with top-level representatives of shareholders, issuers and Stock Exchange members in April. The invitation to the meeting was accepted by the Prime Minister of the Slovak Republic, JUDr. Róbert Fico, as well as other government officials and representatives of foreign Stock Exchanges. In the year 2008, the Stock Exchange continued to organise presentations for schools and trainings with focus on the capital market. Lecturers for these trainings come from among the Stock Exchange staff, as well as experts from practice or academic fields. The Stock Exchange employees actively participated in seminars and trainings hosted by professional organisations and the National Bank of Slovakia. The Stock Exchange actively presented itself abroad, specifically at three international conferences for institutional investors held in London and New York. 4

5 Our expectations for the future fully correspond with the overall predictions of further development on the world s financial markets, as well as with anticipated impacts of the crisis on the economic growth of individual countries, but primarily the euro area of which Slovakia has been a part since 1 January Notwithstanding the fact that conditions on our capital market will remain complicated, we believe that we can conclude the year 2009 successfully. Ing. Vladimír Kocourek Chairman of BSSE Executive Board Ing. Mária Hurajová Director General 2. BASIC INFORMATION Bratislava Stock Exchange was founded on 15 March 1991 in conformity with a Decree of the Ministry of Finance of the Slovak Republic, issued in the year The Stock Exchange is a legal entity registered in the Companies Register of the County Court Bratislava I. The Stock Exchange s commercial activity started on 6 April At present, the Stock Exchange performs its activity on the basis of a licence to function as an operator of the public market of securities, issued by the Ministry of Finance of the Slovak Republic on 11 December 1995 and later amended by a decision of the Financial Market Authority issued on 25 June 2001 and a decision of the National Bank of Slovakia dated 18 March On 28 March 2006, the BSSE s registered capital was increased from the original amount of SKK to SKK through a nonmonetary investment of a shareholder, the National Property Fund of the Slovak Republic. The non-monetary investment comprised the shares of the Central Securities Depository ( CDCP ), which has thus become a subsidiary company of the BSSE. As of 31 December 2008, the Stock Exchange had 16 shareholders. The company had 25 employees as of the end of the year BSSE SHAREHOLDER STRUCTURE AS OF 31 DECEMBER 2008 No. Name of shareholder Share in registered capital (SKK) 1 Number of shares Share in registered capital (%) National Property Fund of the Slovak Republic Patria Finance, a.s

6 3 Allianz - Slovenská poisťovňa, a.s Slovenská sporiteľňa, a.s Capital Partners Development, a.s Oost-Europa Participaties, B.V Poštová banka, a.s KORUNA Invest a.s ING Bank N.V., pobočka zahraničnej banky Tatra CREDITTAX s.r.o Všeobecná investičná spoločnosť, a.s Československá obchodná banka, a.s KOOPERATIVA poisťovňa, a.s UniCredit Bank Slovakia a.s Tatra banka, akciová spoločnosť UNIQA poisťovňa, a.s TOTAL The shareholders No 8, 10 and 11 are not entitled to vote at general shareholder meetings pursuant to 68 Section 10 of the Act No 429/2002 (Coll.). The shareholder No 5 is not entitled to vote at general shareholder meetings pursuant to 68c) Section 5 of the Act No 429/2002 (Coll.). BSSE Bodies and Organisational Structure A graphic presentation of the Stock Exchange bodies and organisational structure can be found in Annex 1. Executive Board Executive Board Chairman Ing. Vladimír Kocourek, National Property Fund of the Slovak Republic, Executive Committee Chairman Executive Board Vice Chairman Ing. Mária Hurajová, Bratislava Stock Exchange, Director General (until 24 June 2008) Members Ing. Róbert Kopál, Association of Securities Dealers, Director Ing. Ivan Gránsky, UniCredit CAIB Slovakia, Executive Board Chairman Ing. Dušan Tomašec, Slovenská záručná a rozvojová banka, Executive Board Chairman and General Director Ing. Emília Palková, Vodohospodárska výstavba Bratislava, Development and Supervision Director 6

7 Ing. Tomáš Pavlák, Slovenská sporiteľňa, Treasury Division Director Ing. Tibor Pongrácz, Bratislavská teplárenská, Trade Management Section Director Ing. Matej Říha, Patria Finance Slovakia, Managing Director (since 28 February 2008) Ing. Marta Lobotková, MEVAK (since 24 June 2008) Ing. Juraj Sipko, PhD, MBA, Docent (until 24 June 2008) Ing. Elena Kohútiková, Všeobecná úverová banka, Executive Board Member and Chief Director of Financial and Capital Markets Section (until 28 February 2008) Ing. Pavol Krištof, Natrional Property Fund of the Slovak Republic, Executive Committee Vice Chairman (until 24 June 2008) Supervisory Board Chairwoman Ing. Anna Bubeníková, National Property Fund of the Slovak Republic, Supervisory Board Chairwoman Members Ing. Rastislav Matejsko, OTP Banka Slovensko, Head of Business Policy and Controlling Department Ing. Todor Todorov, Allianz Slovenská poisťovňa, Executive Board Member and Vice President of Finance Section Ing. Jozef Mihalik, PhD., Financial Investment, Executive Board Chairman and General Director Ing. Ján Vaculčiak, National Property Fund of the Slovak Republic, Executive Board Member and Director of Capital Market and Bonds Membership Committee Members Ing. Jozef Šnegoň, Československá obchodná banka Ing. Jaroslav Hora, OTP Banka Slovensko Ing. Peter Šuba, Poštová banka Ing. Adrián Málek, Slovenská sporiteľňa Mgr. Stanislav Figlár, Všeobecná úverová banka JUDr. Svetlana Kucmenová, Bratislava Stock Exchange Ing. Júlia Ďurišová, Bratislava Stock Exchange (until 31 July 2008) Securities Listing Committee Chairman Ing. Ivan Gránsky, UniCredit CAIB Slovakia Members Ing. Peter Polák, Československá obchodná banka (until 29 May 2008) Ing. Rastislav Paulíny, Československá obchodná banka (since 30 May 2008) Ing. Stanislav Štít, ISTRO ASSET MANAGEMENT Ing. Andrej Sinicyn, Komerční banka (until 28 March 2008) Ing. Rastislav Matejsko, OTP Banka Slovensko (until 12 August 2008) 7

8 Ing. Miroslav Fančovič, OTP Banka Slovensko (since 13 August 2008) Mgr. Eva Sárazová, Poštová banka Ing. Rudolf Lachkovič Ing. Ivana Čičatková, Slovenská sporiteľňa Ing. Dana Rudkovská, Tatra banka Ing. Richard Belyus, UniCredit Bank Slovakia Ing. Soňa Kundrátová, Všeobecná úverová banka Ing. Barbora Lazárová, Bratislava Stock Exchange (until 28 March 2008) Janeta Gerincová, Bratislava Stock Exchange Trading Committee Chairman Ing. Róbert Kopál, Association of Securities Dealers Members Mgr. Miloš Labaj, Československá obchodná banka Ing. Roman Hedera, Dexia banka Slovensko Mgr. Martin Koska, ING Bank N.V., branch of foreign bank Ing. Michal Holík, J & T SECURITIES (SLOVAKIA) (until 31 January 2008) Ing. Bohuslav Ukropec, Poštová banka Ing. Peter Lachkovič, Slovenská sporiteľňa Ing. Milan Čavojec, Tatra banka Ing. Tomáš Perďoch, UniCredit Bank Slovakia Ing. Andrej Ungvarský, Všeobecná úverová banka Mgr. Ing. Oľga Dlugopolská, Bratislava Stock Exchange (until 29 February 2008) Ing. Peter Šály, Bratislava Stock Exchange Ing. Ľubomír Trubíni, Istrobanka 3. SECURITIES ON STOCK EXCHANGE MARKETS As of the end of the year 2008, the BSSE had a total of 327 issues of securities (shares, share certificates and bonds) placed on its markets. That includes 27 issues on the main listed market, 110 issues on the parallel listed market and 190 issues on the regulated free market. Issues Admitted in the Year 2008 A total of 39 new issues of securities of local issuers (including only 2 share issues), and 2 new issues of foreign issuers joined trading on the BSSE s markets in the course of the year While only one issue of government bonds and one issue of state treasury bills were admitted to the main listed market in 2008, the parallel listed market was joined by as many as 34 new issues of debt securities (including 27 issues of mortgage bonds, 3 issues of corporate bonds and 4 issues of bank bonds). Five new issues of securities (including 3 issues of corporate bonds and 2 share issues) were registered on the regulated free market. In addition to the newly admitted bond issues, the influx of new capital to the BSSE s markets continued through admission of new tranches of the already admitted 8

9 government bonds. The issued volume of 7 government-bond issues was increased in this manner in the year 2008, in a total nominal value of billion SKK. The total value of the capital newly admitted to the BSSE s markets, stated in Slovak koruna, thus amounted to billion SKK. Issues That Ended Trading in the Year 2008 In the twelve months of the year 2008, the BSSE ended trading (at an issuer s request) of 14 share issues in a total nominal value of 4.54 billion SKK on the regulated free market, and 1 share issue in a nominal value of 10 million SKK on the parallel listed market. The Stock Exchange also excluded 21 share issues of 20 issuers, in a total nominal volume of 4.05 billion SKK, from trading on the regulated fee market due to the issuers failure to meet the legal information duties for the year 2007 or, respectively, for the first half-year Due to maturity of bonds, the BSSE ended trading of 23 bond issues in a total nominal value of billion SKK and 1 bond issue in a nominal value of 20 million BGN on the market of listed securities. That included 3 issues of government bonds, 16 issues of mortgage bonds, 2 issues of bank bonds and 3 issues of corporate bonds. Due to redemption of bonds, trading of 1 municipal-bond issue in a volume of 100 million SKK ended on the regulated free market. An overview of securities listed on the BSSE can be found in Annex TRADING In the year 2008, the BSSE s electronic trading system was open to members in 246 business days. A total of transactions were concluded in this period, in which units of securities were traded and the financial volume amounted to billion SKK. In comparison with the trading results of the year 2007, it represents a percent increase in financial volume, a percent increase in the number of traded securities and a 43.9-percent decline in the number of transactions. Similar to previous years, the year 2008 saw the dominance of negotiated deals over electronic order book transactions, with the former representing as much as 98.49% of the total trading volume in the period under review. With a financial volume of billion SKK ( % on a year-on-year basis) and concluded transactions, electronic order book transactions thus, once again, could not compete with negotiated deals in a volume of billion SKK ( % on a year-on-year basis) and concluded transactions. In the year 2008, investors trading on the BSSE continued to prefer debt securities over equity securities. Bond transactions represented as much as 99.94% of the total financial volume. In 246 trading days of the year 2008, the volume of transactions in debt securities exceeded billion SKK ( % in a year-on-year comparison). This volume was generated, in an overwhelming majority, in negotiated deals. Equity securities continued to be neglected by investors, as the volume of traded equity securities 9

10 totalled only million SKK (-33.4% in a year-on-year comparison). Transactions in equity securities were also dominated by negotiated deals, although their dominance was not as significant as it was in transactions in debt securities. The financial volume of REPO transactions (including retransfers) in the year 2008 amounted to 3.18 million SKK, which is a percent decline against the year Only 2 transactions in total were concluded, and only equity securities were the object of REPO transactions. Transactions concluded by non-residents in the year 2008 represented 55.55% of the total volume of transactions, out of which the buy side accounted for 56.53% and the sell side for 54.56%. Natural persons achieved a 0.07-percent share in the total turnover; the remaining part belongs to legal entities. Transactions in Shares On the last trading day of the year 2008, transactions on the BSSE could be concluded in 148 share issues (of 125 issuers) and 43 issues of share certificates (of 1 issuer). Out of that, 5 share issues were placed on the main listed market, 4 share issues on the parallel listed market, 139 share issues and 43 share-certificate issues on the regulated free market. As of the year-end 2008, the market capitalisation of equity securities admitted to the BSSE s markets recorded a percent decline on a year-on-year basis to billion SKK. The real market capitalisation, i.e. the market capitalisation comprising issues that have historically at least one market price (excluding share certificates), totalled billion SKK (-28.08% on a year-on-year basis) and represented 94.15% of total market capitalisation of the share market. The market capitalisation of the share issues placed on the market of listed securities has decreased, since the end of the previous year, by 21.71% to 70 billion SKK. Investors paid little attention to equity securities in the year 2008, as the annual traded volume of share transactions (481.2 million SKK including obligatory public offers to take over) represented only 0.06% of the year s total volume. In the 12 months of the year 2008, the shares of local companies were traded in transactions in which share units changed hands. In comparison with the year 2007, it represents a 33.4-percent decline in the volume of transactions, a 63.7-percent decline in the number of concluded transactions and a percent drop in the number of traded securities. Investors once again preferred negotiated deals when trading equity securities, so that over 73.31% of the volume of share transactions were generated in 409 negotiated deals. The remaining part of traded volume ( million SKK) was realised in electronic order book transactions. On a year-on-year basis, it represents a 1.77-percent decline of the volume generated in negotiated deals and a nearly 65-percent decline of the financial volume from electronic order book transactions. From a perspective of achieved financial volume, the following are the year 2008 s most frequently traded share issues on the market of listed securities: Všeobecná úverová banka ( million SKK; 353 transactions), Slovenské energetické strojárne (24.24 million SKK; 270 transactions) and Slovnaft (31.93 million SKK; 185 transactions). The listed shares of Všeobecná úverová banka at the same time achieved the highest number 10

11 of concluded transactions. Excluding the public offers to take over, the BSSE s regulated free market was in 2008 dominated by a share issue of Tatra banka (123.2 million SKK; 67 transactions). In a chart of the most successful issues by achieved volume, Tatra banka is followed by Geodézia Bratislava (50.02 million SKK; 2 transactions) and 1. garantovaná 02 (8.59 million SKK; 317 transactions). The share issue 1. garantovaná 02 also significantly contributed to the total number of traded securities (39.7% of the total). In the year 2008, the BSSE announced 12 new public offers to take over including 11 obligatory ones. On the other hand, 13 public offers to take over expired in the same period, including 2 offers announced back in the year The financial volume of transactions generated in the public offers to take over exceeded million SKK in 277 transactions. The volume of transactions from the public offers to take over represented 5.38% of the total volume of transactions; more than 13.04% of transactions in equity securities were concluded within the framework of these public offers. Transactions concluded by non-residents in the year 2008 represent 31.26% of the total volume of share transactions, out of which the buy side accounts for 30.21% and the sell side for 32.32%. Transactions in Bonds On the last trading day of 2008, transactions on the BSSE could be concluded in 136 bond issues (including 85 issues of mortgage bonds, 20 issues of government bonds, 20 issues of corporate bonds, 9 issues of bank bonds, 1 state treasury bill and 1 Eurobond). Out of that 22 issues were placed on the main listed market, 106 issues on the parallel listed market (including 2 issues denominated in CZK and 1 issue denominated in BGN), and 8 issues on the regulated free market (including 1 issue denominated in EUR). As of the year-end 2008, the market capitalisation of debt securities admitted to the BSSE s markets climbed to billion SKK. It is a percent increase in comparison with the same period of the year The market capitalisation of bonds on the market of listed securities has risen, since the end of December 2007, by 12.75% to billion SKK. The capitalisation of the 10-year Eurobond registered on the regulated free market was billion SKK; the capitalisation of the bond issues denominated in CZK and BGN (traded on the parallel listed market) totalled 2.5 billion SKK. Similar to previous years, investors in 2008 continued to prefer investments in debt securities over equity securities. This was reflected mainly in the structure of trading volume, where bond transactions represented as much as 98.49% of the total financial volume. This number only confirms the fact that the Slovak capital market is primarily a market of debt securities. A total of transactions were concluded in the period under review, in which units of debt securities were traded in a financial volume of billion SKK. In comparison with the year 2007, 2008 is a more successful year - the number of bond transactions rose by 13.02%, the number of traded bonds increased by % and the financial volume increased by %. Negotiated deals dominated also in bond transactions. With a volume of billion SKK, they greatly outweighed electronic order book transactions in a volume of billion SKK. Similar to previous years, the most financial means were again invested in government bonds and state 11

12 treasury bills. Their combined volume totalled billion SKK in transactions, and represented 99.44% of the total volume of bond transactions. From a viewpoint of achieved financial volume, the most frequently traded issues of the public sector in 2008 were the government bonds of series 144 (180.4 billion SKK; 26 transactions), government bonds of series 204 ( billion SKK; 322 transactions) and government bonds of series 201 (84.82 billion SKK; 109 transactions). As for bond issues in the private sector, significant volumes were generated by issues Slovenská sporiteľňa 01 ( million SKK; 5 transactions), Slovenská sporiteľňa 03 ( million SKK; 6 transactions) and HZL OTP Banka VI ( million SKK; 2 transactions). The issue Slovenská sporiteľňa 01 at the same time achieved the highest financial volume in electronic order book transactions ( million SK). The government bonds of series 202 not only recorded the highest number of concluded transactions (334), but also became the most noticeable issue of the public sector in electronic order book transactions (with a volume of 2.77 billion SKK). Bond issues Žilina IV, Žabka 2010 and Arca Capital were the only issues traded on the regulated free market in the course of the year Transactions closed by non-residents in the year 2008 represent 55.56% of the total volume of bond transactions, out of which the buy side accounts for 56.55% and the sell side for 54.58%. On the last trading day of the year 2008, transactions could be closed in the module of market makers (MTT) in 9 government-bond issues of series 174, 188, 189, 199, 202, 203, 204 and 205. The volume of transactions in these issues (in the MTT) amounted to million SKK in 7 transactions. It represents 0.64% of all electronic order book transactions in bonds. Stock Exchange Indices The SAX index ended the year 2008 at points, losing 19.04% against its closing value from the year-end The group of Slovak bond indices, SDXGroup, closed with the following values: The SDXG for the public sector, represented by government bonds, ended the year 2008 at (price) and (performance), with a yield to maturity of 4.454% and duration of 4.84 years. The SDXG for the private sector, now represented only by mortgage bonds, ended the year 2008 at (price) and (performance), with a percent yield to maturity and duration of years. 5. CLEARING AND SETTLEMENT OF TRANSACTIONS The total number of securities transferred through the BSSE increased, in comparison with the year 2007, by 25.05% from units to units. No transaction was suspended in the year The resources of the Guarantee Fund were not drawn. 12

13 6. MEMBERSHIP As of 31 December 2008, the BSSE had 19 regular members. In the year 2008, membership of one regular BSSE member, J&T SECURITIES (SLOVAKIA), was terminated through transfer of membership to J&T BANKA, branch of foreign bank. This termination of membership did not in any way affect the total number of BSSE members, which did not change in the course of the year The National Bank of Slovakia is an entity authorised to stock exchange trading by law, as stipulated by the Stock Exchange Act. The list of members can be found in Annex INSPECTION In the course of the year 2008, the Stock Exchange Deals Inspection Department performed systematic and complex inspection of 7 BSSE members, and continuously monitored all stock exchange transactions. In connection with inspection of the members activity as securities dealers, the BSSE imposed a sanction on member Slovenská sporiteľňa in the form of a reprimand and an obligation to remedy found deficiencies. In conformity with the Act No 429/2002 (Coll.) on the Stock Exchange as amended by later legislation, the Stock Exchange Deals Inspection Department submitted its activity report to the National Bank of Slovakia after the end of every calendar quarter. 8. MARKETING ACTIVITIES On the occasion of the 15 th Anniversary of Start of Trading, in April the Stock Exchange arranged a meeting with top representatives of shareholders, issuers and Stock Exchange members. The invitation to the meeting was accepted by the Prime Minister of the Slovak Republic, JUDr. Róbert Fico, as well as other government officials and representatives of foreign Stock Exchanges. In the year 2008, the Stock Exchange continued to organise presentations for schools and capital market-orientated trainings. The lecturers for said trainings come from among Stock Exchange staff, as well as specialists from practice or academic fields. The Stock Exchange staff actively participated in seminars and trainings hosted by professional organisations and by the National Bank of Slovakia. The Stock Exchange actively presented itself abroad, specifically at three international conferences for institutional investors which were held in London and New York. For issuers that have securities placed on the Stock Exchange markets, we arranged a seminar focusing on the euro change-over and information duties of issuers. The seminar was divided into five parts taking place on different dates, and was attended by 103 representatives of invited companies. We also communicated with representatives of municipal self-governments to inform about possibilities of funding their development needs through issuance of municipal 13

14 bonds, as well as with representatives of companies which are not listed on the Stock Exchange but might consider the capital market as one of the sources of financing in the future. 9. ECONOMIC RESULTS OF THE YEAR 2008 Review of the Year 2008; Development Projected for the Year 2009 In comparison with the previous year, in 2008 there was an increase in revenues from the Stock Exchange s primary activity by SKK. The increase is mainly due to a higher number of bond transactions, concluded in the last three months of the year, which was reflected in higher revenues from trading fees. On the expenses side, there was an increase in expenses on services (primarily in the area of information systems) and a decrease of wages/salaries as well as depreciation costs. The increase in other expenses is related solely to a change in reporting of clearing and settlement fees of stock exchange transactions realised in the CDCP. These have no effect on the overall economic result, as they are reported in the same amount also on the side of other revenues. Proposal for Distribution of Profit for the Year 2008 (in SKK) Profit after tax Additions to reserve fund (10% of profit after tax) Undistributed profit of previous years Total profit distribution For the year 2009, the BSSE projects revenues of EUR and expenses of EUR. Profit before tax is projected in the amount of EUR. From a perspective of influence of external factors, we expect the Stock Exchange to continue operating under the same conditions as in the year

15 Annex 1 ORGANISATIONAL STRUCTURE OF THE BSSE AS OF 31 DECEMBER 2008 General Meeting Supervisory Board Ing. Anna Bubeníková Chairwoman Executive Board Ing. Vladimír Kocourek Chairman Director General Ing. Mária Hurajová Internal Audit Department Ing. Marián Sásik, PhD. Secretariat and External Communication Stock Exchange Deals Inspection Department Mgr. Denisa Ďurďovičová Head External Affairs Division JUDr. Svetlana Kucmenová Deputy Director General Division Director Economy Division Ing. František Novosad Division Director Project and System Support Division Ing. Mária Hurajová Designated Division Manager Stock Exchange Deals Division Ing. Peter Šály Divisin Director

16 Annex 2 SHARES Main Listed Market: SECURITIES LISTED AS OF 31 DECEMBER 2008 Name of issue ISIN Date of listing: 1. Slovnaft a.s. Bratislava CS Slovnaft a.s emisia SK Slovnaft a.s emisia SK Všeobecná úverová banka a.s. Bratislava SK SLOVENSKÉ ENERGETICKÉ STROJÁRNE SK (SES) a.s. Tlmače SHARES Parallel Listed Market: Name of issue ISIN Date of listing: 1. Biotika a.s. Slovenská Ľupča CS Biotika a.s emisia SK OTP Banka Slovensko, a.s. SK OTP Banka Slovensko, a.s. 2. emisia SK BONDS Main Listed Market: Name of issue ISIN Date of listing: 1. Štátny dlhopis 133 SK Štátny dlhopis 144 SK Štátny dlhopis 152 SK Štátny dlhopis 161 SK Štátny dlhopis 163 SK Štátny dlhopis 174 SK Štátny dlhopis 184 SK Štátny dlhopis 188 SK Štátny dlhopis 189 SK Štátny dlhopis 192 SK VÚB a.s. Bratislava - 7. emisia HZL SK Štátny dlhopis 199 SK

17 13. Štátny dlhopis 201 SK Štátny dlhopis 202 SK Štátny dlhopis 203 SK Štátny dlhopis 204 SK Štátny dlhopis 205 SK Štátny dlhopis 206 SK Štátny dlhopis 207 SK Štátny dlhopis 208 SK Štátny dlhopis 209 SK Štátna pokladničná poukážka 01 SK BONDS Parallel Listed Market: Name of issue ISIN Date of listing: 1. Tatra banka, a.s. HZL II. SK Slovenská sporiteľňa, a.s. 3. emisia HZL SK ISTROBANKA, a.s. HZL II. SK OTP Banka Slovensko, a.s. HZL I. SK VÚB a.s. Bratislava - 8. emisia HZL SK UniBanka, a.s emisia HZL SK HVB Bank Slovakia a.s. HZL 1 SK VÚB a.s. Bratislava emisia HZL SK Slovenská sporiteľňa, a.s. 5. emisia HZL SK Slovenská sporiteľňa, a.s. 6. emisia HZL SK ĽUDOVÁ BANKA, a.s. HZL I. SK Československá obchodní banka, a.s. HZL II. SK OTP Banka Slovensko, a.s. HZL V. SK VÚB a.s. Bratislava emisia HZL SK VÚB a.s. Bratislava emisia HZL SK VÚB a.s. Bratislava emisia HZL SK Slovenská sporiteľňa, a.s. 7. emisia HZL SK OTP Banka Slovensko, a.s. HZL III. SK UniBanka, a.s emisia HZL SK VÚB a.s. Bratislava emisia HZL SK I.D.C. Holding, a.s emisia SK

18 22. Slovenská sporiteľňa, a.s. 1. emisia dlhopisov SK OTP Banka Slovensko, a.s. HZL VI. SK VÚB a.s. Bratislava emisia dlhopisov SK OTP Banka Slovensko, a.s. 1. emisia dlhopisov SK ĽUDOVÁ BANKA, a.s. HZL II. SK UniBanka, a.s emisia HZL SK VÚB a.s. Bratislava emisia HZL SK B.O.F., a.s. 7. emisia SK Tatra banka, a.s. 5. emisia HZL SK Tatra banka, a.s. 8. emisia HZL SK Tatra banka, a.s. 9. emisia HZL SK OTP Banka Slovensko, a.s. HZL VII. SK VÚB a.s. Bratislava emisia HZL SK VÚB a.s. Bratislava emisia HZL SK VÚB a.s. Bratislava emisia HZL SK VÚB a.s. Bratislava emisia HZL SK Slovenská sporiteľňa, a.s. 10. emisia HZL SK ISTROKAPITÁL, a.s. 1. emisia dlhopisov SK I.D.C. Holding, a.s. 6. emisia SK Leasing Slovenskej sporiteľne, a.s emisia dlhopisov 42. Leasing Slovenskej sporiteľne, a.s emisia dlhopisov SK SK OTP Banka Slovensko, a.s. HZL IX. SK UniBanka, a.s emisia HZL SK VÚB a.s. Bratislava emisia HZL SK Slovenská sporiteľňa, a.s. 2. emisia dlhopisov SK Tatra banka, a.s. 13. emisia HZL SK Tatra banka, a.s. 14. emisia HZL SK B.O.F., a.s. 8. emisia SK B.O.F., a.s. 9. emisia SK ĽUDOVÁ BANKA, a.s. HZL III. SK VÚB a.s. Bratislava emisia HZL SK Tatra banka, a.s. 17. emisia HZL SK VÚB a.s. Bratislava emisia HZL SK OTP Banka Slovensko, a.s. HZL XI. SK

19 56. ĽUDOVÁ BANKA, a.s. HZL IV. SK Slovenská sporiteľňa, a.s. 3. emisia dlhopisov SK ISTROBANKA, a.s. HZL VII. SK ISTROBANKA, a.s. HZL IX. SK Tatra banka, a.s. 21. emisia HZL SK Leasing Slovenskej sporiteľne, a.s emisia dlhopisov SK VÚB a.s. Bratislava emisia HZL SK ĽUDOVÁ BANKA, a.s. HZL V. SK Slovenská sporiteľňa, a.s. 11. emisia HZL SK Slovenská sporiteľňa, a.s. 12. emisia HZL SK VÚB a.s. Bratislava emisia HZL SK Prvá stavebná sporiteľňa, a.s. 1. emisia dlhopisov SK VÚB a.s. Bratislava emisia HZL SK ISTROBANKA, a.s. HZL V. SK ISTROBANKA, a.s. HZL VI. SK Slovenská sporiteľňa, a.s. 4. emisia dlhopisov SK I.D.C. Holding, a.s. 7. emisia SK UniCredit Bank Slovakia a.s. HZL HVB 3 SK Tatra banka, a.s. 25. emisia HZL SK VÚB a.s. Bratislava emisia HZL SK VÚB a.s. Bratislava emisia HZL SK OTP Banka Slovensko, a.s. HZL XII. SK Tatra-Leasing, s.r.o. 2. emisia dlhopisov SK VÚB a.s. Bratislava emisia HZL SK VOLKSBANK Slovensko, a.s. HZL VI. SK Leasing Slovenskej sporiteľne, a.s emisia dlhopisov SK VÚB a.s. Bratislava emisia HZL SK Slovenská sporiteľňa, a.s. 13. emisia HZL SK Slovenská sporiteľňa, a.s. 14. emisia HZL SK OTP Banka Slovensko, a.s. HZL XIII. SK VÚB a.s. Bratislava emisia HZL SK Slovenská sporiteľňa, a.s. 7. emisia dlhopisov SK Československá obchodní banka, a.s. HZL VI. SK Československá obchodná banka, a.s. HZL VII. SK

20 90. OTP Banka Slovensko, a.s. HZL XIV. SK MATADOR Automotive Vráble, a.s. 1.emisia dlhopisov SK Tatra banka, a.s. 30. emisia HZL SK Československá obchodná banka, a.s. HZL VIII. SK Slovenská sporiteľňa, a.s. 15. emisia HZL SK Slovenská sporiteľňa, a.s. 16. emisia HZL SK Slovenská sporiteľňa, a.s. 17. emisia HZL SK Slovenská sporiteľňa, a.s. 18. emisia HZL SK Slovenská sporiteľňa, a.s. 19. emisia HZL SK Slovenská sporiteľňa, a.s. 8. emisia dlhopisov SK Slovenská sporiteľňa, a.s. 20. emisia HZL SK Slovenská sporiteľňa, a.s. 21. emisia HZL SK Slovenská sporiteľňa, a.s. 22. emisia HZL SK Tatra banka, a.s. 41. emisia HZL SK VÚB a.s. Bratislava emisia HZL SK VOLKSBANK Slovensko, a.s. HZL VII. SK Slovenská sporiteľňa, a.s. 23. emisia HZL SK

21 Annex 3 TRADING VOLUME STATISTIC OF THE YEAR Change (%) NUMBER OF TRADING DAYS % TOTAL VOLUME OF TRANSACTIONS (SKK) AVERAGE DAILY VOLUME OF TRANSACTIONS (SKK) % % SHARES AND SHARE CERTIFICATES TOTAL VOLUME OF TRANSACTIONS (SKK) AVERAGE DAILY VOLUME OF TRANSACTIONS (SKK) % % NUMBER OF ISSUES % MARKET OF LISTED SECURITIES % REGULATED FREE MARKET % BONDS TOTAL VOLUME OF TRANSACTIONS (SKK) AVERAGE DAILY VOLUME OF TRANSACTIONS (SKK) % % NUMBER OF ISSUES % MARKET OF LISTED SECURITIES % REGULATED FREE MARKET % 21

22 Annex 4 MEMBERS AND ENTITIES AUTHORISED TO TRADE ON THE BSSE AS OF 31 DECEMBER 2008 No. Name of member or entity authorised to trade on the BSSE 1 CAPITAL INVEST, o.c.p., a.s. 2 Československá obchodná banka, a.s. 3 Dexia banka Slovensko a.s. ING Bank N.V. (Holandsko) 4 prostredníctvom pobočky ING Bank N.V., pobočka zahraničnej banky 5 ISTROBANKA, a.s. J&T BANKA, a.s. 6 prostredníctvom pobočky J&T BANKA, a.s. pobočka zahraničnej banky 7 Národná banka Slovenska* 8 OTP Banka Slovensko, a.s. 9 PALČO BROKERS o.c.p., a.s. 10 Patria Finance, a.s. 11 Poštová banka, a.s. 12 RM-S Market, o.c.p., a.s. 13 SEVISBROKERS FINANCE o.c.p., a.s. 14 SLÁVIA CAPITAL, a.s., obchodník s cennými papiermi 15 Slovenská sporiteľňa, a.s. 16 Sympatia Financie, o.c.p., a.s. 17 Tatra banka, a.s. 18 UniCredit Bank Slovakia a.s. 19 VOLKSBANK Slovensko, a.s. 20 Všeobecná úverová banka, a.s. * Entity authorised to trade on the BSSE 22

23 Annex 5: The Year 2008 Financial Statements of the BSSE Compiled According to IFRS 23

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45 S t a t e m e n t Issued by the Supervisory Board of the Bratislava Stock Exchange (BSSE) to the BSSE s Ordinary Separate Financial Statements for the Year 2008 and to the Profit Distribution Proposal for the Year The Supervisory Board: 1. Has examined the ordinary separate financial statements for the year 2008 and states that they are compiled according to the International Financial Reporting Standards, and are in compliance with the Act No 431/2002 (Coll.) on Accountancy as amended by later legislation, as well as with the Methodical Directive of the Ministry of Finance of the Slovak Republic governing the disclosure of information in the Notes to Financial Statements. The accounting statements and other underlying documentation included in the ordinary financial statements are complete, and the data reported as of 31 December 2008 truthfully present the performance results. 2. States that the company has posted a pre-tax profit of SKK, which includes a profit for accounting period (i.e. after-tax profit) in the amount of SKK. 3. States that the ordinary separate financial statements have been audited by auditing company KLT Audit Ltd, licence No SKAU 212, which states in an auditor s report dated 30 April 2009 that the financial statements truthfully and objectively express the financial situation of company Bratislava Stock Exchange as of 31 December 2008, as well as the company s performance results and cash flows for the year then ended, in conformity with the Accountancy Act of the Slovak Republic. Based on the aforementioned, the Supervisory Board of the Bratislava Stock Exchange recommends to the General Meeting a) to approve the Annual Report for the Year 2008; b) to approve the ordinary separate financial statements for the Year 2008; c) to approve the Executive Board s Profit Distribution Proposal for the Year 2008 in the following structure: Contribution to the reserve fund (10% of profit after tax) SKK Dividend payment 0 SKK Retained earnings from previous years SKK Profit distribution, total SKK Bratislava, 13 May