WARSAW AS THE CEE FINANCIAL HUB: HOW FAR HAVE WE COME? AND HOW FAR DO WE STILL HAVE TO GO?

MACIEJ WEWIÓR ADVISOR TO THE PRESIDENT OF THE MANAGEMENT BOARD AN CEO OF WARSAW STOCK EXCHANGE SWIFT BUSINESS FORUM JUNE 2013 R.

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Poland’s Key Position in the enlarged EU

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Poland’s Key Position in the enlarged EU

The largest and most populated new (i.e. accession post 2004) EU member State (population c.a. 38 million)

Poland’s GDP accounts for c.a. 38% of the new EU 12 members’ GDP

GDP growth in 2010: 3.9% GDP growth in 2011: 4.3% GDP growth in 2012: 1.9% GDP growth forecast in 2013: 1.1% GDP growth forecast in 2014: 2.2% Polish government GDP growth forecast in 2014: 2,5%

2008 - 2012 accumulated GDP: 18,1%

Ratings A2 Stable by Moody’s A- Stable by S&P A- Stable by Fitch Source: Ministry of Finance, Polish Central Statistical Office, Eurostat, EBOR.

Key statistics:

Economy: EU GDP (%) 2008 2009 2010 2011 2012 2013f 2014f

2008-2012 accumulated

GDP

Poland 5,1 1,6 3,9 4,5 1,9 1,1 2,2 18,1

Lithuania 2,9 -14,8 1,5 5,9 3,7 3,1 3,6 -2,3

Latvia -3,3 -17,7 -0,9 5,5 5,6 3,8 4,1 -12,1

Slovakia 5,8 -4,9 4,4 3,2 2,0 1,0 2,8 10,6

Estonia -4,2 -14,1 3,3 8,3 3,2 3,0 4,0 -5,0

Romania 7,3 -6,6 -1,1 2,2 0,7 1,6 2,2 2,0

Malta 3,9 -2,8 2,9 1,7 0,8 1,4 1,8 6,5

Denmark -0,8 -5,7 1,6 1,1 -0,5 0,7 1,7 -4,4

Luxemburg -0,7 -4,1 2,9 1,7 0,3 0,8 1,6 0,0

Austria 1,4 -3,8 2,1 2,7 0,8 0,6 1,8 3,1

Finland -8,5 0,3 3,3 2,8 -0,2 0,3 1,0 -2,7

Germany 1,1 -5,1 4,2 3,0 0,7 0,4 1,8 3,7

Bulgaria 6,2 -5,5 0,4 1,8 0,8 0,9 1,7 3,4

Ireland -2,1 -5,5 -0,8 1,4 0,9 1,1 2,2 -6,1

France -0,1 -3,1 1,7 2,0 0,0 -0,1 1,1 0,4

UK -1,0 -4,0 1,8 1,0 0,3 0,6 1,7 -2,0

Sweden -0,6 -5,0 6,6 3,7 0,7 1,5 2,5 5,1

EU (27 countries)

0,3 -4,3 2,1 1,6 -0,3 -0,1 1,4 -0,7

Belgium 1,0 -2,8 2,4 1,8 -0,3 0,0 1,2 2,0

Czech Republic 3,1 -4,5 2,5 1,9 -1,3 -0,4 1,6 1,5

Euro area (17 countries)

0,4 -4,4 2,0 1,5 -0,6 -0.4 1,2 -1,2

Hungary 0,9 -6,8 1,3 1,6 -1,7 0,2 1,4 -4,9

Cyprus 3,6 -1,9 1,3 0,5 -2,4 -8,7 -3,9 1,0

Netherlands 1,8 -3,7 1,6 1,0 -1,0 -0,8 0,9 -0,4

Italy -1,2 -5,5 1,7 0,4 -2,4 -1,3 0,7 -7,0

Slovenia 3,4 -7,8 1,2 0,6 -2,3 -2,0 -0,1 -5,2

Spain 0,9 -3,7 -0,3 0,4 -1,4 -1,5 0,9 -4,1

Portugal 0,0 -2,9 1,9 -1,6 -3,2 -2,3 0,6 -5,8

Romania 7,3 -6,6 -1,1 2,2 0,7 1,6 2,2 2,0

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The generation which does not know the recession

2,6

3,8

5,2

7,0

6,2

7,1

5,0 4,5

4,2

1,2 1,4

3,9

5,3

3,6

6,2 6,8

5,1

1,6

3,9 4,5

1,9

1,1

2,2

0,0

1,0

2,0

3,0

4,0

5,0

6,0

7,0

8,0

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013f 2014f

Poland's GDP 1992-2014f (%)

South Korea

26 years

1961-1987

Germany

25 years

1949-1974

Poland

22 years

1992-2013

Australia

22 years

1992-2013

UK

14

years 1993-2007

USA

10 years

1991-2001

Japan

7 years

2000-2007

Source: Eurostat

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Poland has not gone through a destabilizing boom bust cycle

Poland runs a relatively low and sustainable CA deficit

Polish exports grows faster than of other EU countries

Polish central bank keeps the interest rates higher than other EU countries which makes the growth slower in a period of prosperity but also causes slower recession during a crisis

Limited impact of the global crisis on Poland’s fiscal health

Polish population – one of the youngest in Europe

Poland the most attractive for foreign investments in CEE region

While this global crisis has hit most of the world hard, Poland seems to be practically unscathed

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Source: Eurostat * CEE: Poland, Romania, Czech Rep., Bulgaria, Austria, Hungary, Slovenia, Slovakia

Poland has not gone through a destabilizing

boom bust cycle

-6,00

-4,00

-2,00

0,00

2,00

4,00

6,00

8,00

2006 2007 2008 2009 2010 2011 2012 2013f 2014f

Poland EU (27 countries) CEE avarage*

Real GDP growth % yoy

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Poland’s current account deficit is lower and more stable than in most CEE countries

Current account balance as a % of GDP

Source: Eurostat

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Source: Eurostat

0,6

1,0

1,4

1,8

2,2

2,6

3,0

3,4

3,8

50

100

150

200

250

300

350

400

450

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Poland's share of EU exports (right axis) EU-27 exports Poland's exports

Poland’s and EU (27) exports growth and the Poland’s share of EU total exports (%)

Polish exports grew faster than of other EU countries

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Central bank interest rates - annual data (%)

0,00

2,00

4,00

6,00

8,00

10,00

12,00

14,00

2005 2006 2007 2008 2009 2010 2011 2012

Euro area (changing composition)

Czech Republic

Latvia

Lithuania

Hungary

Poland

Romania

Slovakia

Denmark

Sweden

United Kingdom

Higher interest rates in Poland make the recession slower in the crisis

Source: Eurostat

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Limited impact of the global crisis on Poland’s fiscal health

Source: IMF World Economic Outlook Public debt ratio in Poland:

moderated before the crisis

slight increase during the crisis

no longer rising

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Polish population – one of the youngest in Europe

36,00

37,00

38,00

39,00

40,00

41,00

42,00

Poland EU (27 countries) Developed Europe Emerging Europe CEE Region

Source: Eurostat

Median age in Europe

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Poland the most attractive for FDI in CEE region

Source: European Investment Monitor, Ernst & Young

The number of new foreign investment projects

# Country 2011 2012 Change Share (2012)

1 Poland 121 148 22,30% 3,90% 2 Finland 62 75 21,00% 2,00%

3 Serbia 67 78 16,40% 2,10%

4 Ireland 106 123 16,00% 3,20%

5 Belgium 153 169 10,50% 4,50%

6 Germany 597 624 4,50% 16,40%

7 UK 679 697 2,70% 18,40%

8 Spain 273 274 0,40% 7,20%

9 Russia 128 128 0,00% 3,40%

10 Turkey 97 95 -2,10% 2,50%

11 Czech Republic 66 64 -3,00% 1,70%

12 The Netherlands 170 161 -5,30% 4,20%

13 France 540 471 -12,80% 12,40%

14 Italy 80 60 -25,00% 1,60%

15 Switzerland 99 61 -38,40% 1,60%

CEE region

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Warsaw Stock Exchange largest exchange in the CEE region

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Largest exchange in CEE region with growth potential

In months Jan – Apr 2013, WSE remains the largest national stock exchange in CEE, with domestic market capitalization of EUR 127 bn and equity session turnover of EUR 17.6 bn.

In months Jan - Apr 2013, WSE remains on the 4th position among European exchanges, with over 2.7 mln stock index futures traded volume.

Domestic market capitalization (Apr 2013, EUR bn)

Value of session equity trading

(Jan - Apr 2013, EUR bn)

Source: FESE, Apr 2013.

Stock Index Futures traded volumes

on European exchanges

No. Exchange Volume of trading Jan-Apr 2013 (#)

1. EUREX 112 049 192

2. NYSE Euronext.Liffe 28 848 812

3. NASDAQ OMX 10 990 804

4. WSE 2 734 971

5. SPAIN 2 396 287

6. NORWAY 1 165 928

7. GREECE 507 869

8. HUNGARY 166 264

9. AUSTRIA 117 198

10. ROMANIA (BSE) 2 399

126,7

81,0

36,8 24,2

15,3 13,1 4,8

Warsaw Vienna Athens Prague Budapest Bucharest Ljubljana

17,6

6,4 4,9

2,4 2,3

0,3 0,1

Warsaw Vienna Athens Prague Budapest Bucharest Ljubljana

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45,7 38,8

52,3 61,6

45,1 53,9

Value of equity trading – WSE (EUR bn)

Largest exchange in the CEE region1

1 EOB; domestic and foreign equity trading; regulated and alternative markets 2 annualized

127,5

73,1 72,4 59,2

36,8 34,7

Value of equity trading – CEESEG (EUR bn)

CEESEG - Budapest

8,5%

CEESEG - Ljubljana

0,4%

CEESEG - Prague 8,2%

CEESEG - Vienna 22,0%

Warsaw Stock

Exchange 60,8%

Share of regional stock exchanges in equity trading, Q1 2013

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WSE v. EU stock markets

Turnover value in Jan-May 2013 v. Jan-May 2012 decreased by 3.5% on all EU markets while increased by 10.0% on WSE (turnover in EUR)

Turnover value in I-V 2013 v. VIII-XII 2012 increased by 20.6% on all EU markets and 18.4% on WSE (turnover in EUR)

19,7 18,3

21,6

2012 Jan-May 2012 Aug-Dec 2013 Jan-May

WSE +10,0%

+18,4%

3 897,3

3 117,3

3 759,2

2012 Jan-May 2012 Aug-Dec 2013 Jan-May

UE markets -3,5%

+20,6%

18,0 16,6

19,1

2012 Jan-May 2012 Aug-Dec 2013 Jan-May

Small and medium exchanges

+6,2%

1 976,9

1 642,9 1 885,2

2012 Jan-May

2012 Aug-Dec

2013 Jan-May

Big exchanges

-4,6% 1 131,9

871,4

1 097,6

2012 Jan-May

2012 Aug-Dec

2013 Jan-May

MTFs -3,0%

Source: Thomson Reuters EMSR 1 Small and medium exchanges (turnover<250 bn euro): Athens Exch.,, Bratislava SE, Bucharest SE, Bulgarian SE, CEESEG - Budapest, CEESEG - Ljubljana, CEESEG - Prague, CEESEG - Vienna, Cyprus SE, Irish SE, Luxembourg SE, Malta SE, 2 Big exchanges (turnover> 250 bn euro): BME (Spanish Exch.), Deutsche Boerse, London SE Group (LSE + Borsa Italiana), Nasdaq OMX Nordic, NYSE Euronext; 3 MTFs BATS Europe, Burgundy, Equiduct, NYSE Arca Europe, TOM, Turquoise

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Broad and diversified investor base ensures that growth potential can be fulfilled

Potential for growth through structural development of the market

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¹ Source: Eurostat for GDP values, FESE for market capitalization and trading velocity values (as of the end of 2012)

Potential for further growth through:

Continued “equitization” primarily through

increasing private sector capital raisings and

further privatization of state-owned companies

New financial instruments and investment

strategies as a result of implementation of UTP

system:

Continued development of the

derivatives market

Attraction of new market participants,

including algo-traders

Expected positive effects of changes on the

Polish capital market, such as:

Regulatory driven infrustructure changes

(CCP, omnibus accounts, short selling,

etc.)

0%

20%

40%

60%

80%

100%

120%

140%

160%

180%

200%

0% 20% 40% 60% 80% 100% 120% 140% 160% 180%

Mar

ket

Cap

ital

izat

ion

/GD

P

Velocity ratio

WSE

Vienna

Athens

Budapest

Oslo

Deutsche Boerse

BME

IMKB

SIX Swiss

NYSE Euronext Nasdaq OMX Nordic

LSE

Borsa Italiana

Luxembourg

Prague

Bratislava

Irish SE

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18,2

9,3 6,8

15,5

8,6

3.4

2007 2008 2009 2010 2011 2012

WSE Main List

24 61

26

86

172

89 81

33

13

34

38

19

2007 2008 2009 2010 2011 2012

New Connect WSE Main List

162 185 52 242

726

225

2007 2008 2009 2010 2011 2012

NewConnect (PLN m)

A leading listing venue in Europe

Value of IPOs

Source: PwC IPO Watch, PwC IPO Watch Europe Review 2013, regulated markets

Source: WSE , end of December 2012

(PLN bn)

Number of IPOs Leading position in EU by number of IPOs

Source: PwC IPO Watch, PwC IPO Watch Europe Review 2013, regulated markets

Source: WSE, end of December 2012

One of top exchanges in EU by value of IPOs (EUR m)

0

20

40

60

80

100

120

LSE Warsaw NYSE Euronext

Frankfurt NASDAQ OMX

Swiss Oslo Other

2007 2008 2009 2010 2011 2012

0

5 000

10 000

15 000

20 000

25 000

LSE Frankfurt NYSE Euronext

Swiss Warsaw Oslo Italy NASDAQ OMX

Spain Other

2007 2008 2009 2010 2011 2012

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Biggest IPOs/SPOs on the stock market

Date Company Exchange Value

[EUR bn]

09/01/2013 ArcelorMittal Luxembourg SE 1 339.05

23/01/2013 PKO BP WSE 1 257.01

21/03/2013 Bank Zachodni WBK SA WSE 1 167.71

07/01/2013 LEG Immobilien AG Deutsche

Boerse 1 165.19

13/02/2013 LyondellBasell Ind. NV Euronext

Amsterdam 1 142.87

18/03/2013 Ziggo NV Euronext

Amsterdam 1 002.00

25/03/2013 Telefonica SA BME (Spain) 972.73

15/03/2013 Volkswagen AG Deutsche

Boerse 913.64

29/01/2013 Bank Pekao SA WSE 892.16

27/02/2013 Esure Group PLC London SE 803.18

WSE ranked #2 in Europe by number of IPOs and #3 by value of IPOs in Q1 2013

Three offerings of Polish companies among biggest stock offerings in Europe in Q1 2013

Source: Bloomberg

European biggest stock offerings in Q1 2013

Main Market 395 domestic companies, 44 foreign issuers

428 domestic companies, 8 foreign issuers

163 issuers (incl. State Treasury) 361 listed non-Treasury issues

Issuers activity on WSE markets (as at the end of Q1 2013)

+5 companies YoY +5 companies YoY +64 companies YoY +2 companies YoY +45 issuers YoY +118 issues YoY

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Growing number of foreign exchange members …

In Q1 2012 Xelion Doradcy Finansowi - domestic broker joined wide range of WSE market participants;

In H1 2012 Wedbush Europe Ltd and ING NV joined as remote members;

As at end of January 2013, 24 foreign members on WSE

In 2011, 15 foreign companies made their debut on WSE (12 on WSE Main List and 3 on NewConnect); In 2012, 7 foreign companies joined WSE (5 on Main Market and 2 on NC)

On May 4, 2011, WSE launched WIG-Ukraine - first national index in Europe comprising companies originating from Ukraine.

On May, 2012, WSE started to calculate and publish the Central and Eastern European regional stock index WIG-CEE.

…and an increasing number of foreign issuers

Ongoing internationalization

Source: WSE, 2013 YTD.

26 24 25 26

31 29 30 32 34 7 10

17 18 17 19 29 24

26 31 35

43

49 46 49

61 58

2004 2005 2006 2007 2008 2009 2010 2011 2012

Local Foreign Total

Source: WSE, 2013 YTD.

1 3 7 12

23 25 25 27

39 44

1 2 3 6 8

26 27 30

46 52

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Main Market NewConnect Total

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571 623 718

828 970

1 124 1 236

1 480 1 633

1 786

0

500

1 000

1 500

2 000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

21

Value of financial assets held by foreign

investors is on an increasing and stable

trajectory

PLNbn

Value of WSE listed shares held by

foreign investors accounted for 40.3%³ of

market capitalization of domestic shares

listed on the WSE as of the end of 2012

PLN bn

¹ Source: National Bank of Poland ² Source: Polish Agency for Foreign Investment (PAiZ) ³ Source: National Bank of Poland, including both institutional and other types of investors

% value of WSE listed shares held by foreign investors

Value of WSE listed shares held by foreign investors

82 111 153 196 208 110 153 215 184 212

60% 57% 55%

49% 44% 46%

38% 40% 42% 40%

0

50

100

150

200

250

0%

10%

20%

30%

40%

50%

60%

70%

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Financial assets in Poland held by foreign investors1

Strong and growing foreign investor base

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Equities 20%

Investment funds

6%

Pension funds 19%

Cash 7%

Deposits 38%

Other 10%

Polish capital markets enjoy a vibrant and

broad retail investor base

Current investment allocation remains geared

towards deposits and cash products providing

potential for increased equity investment

participation

Large privatizations via WSE have attracted

extensive retail investor participation and have

broadened overall appeal of equities among

the general public

WSE IPO attracted ca. 323,000 retail investors

22 ¹ Source: National Bank of Poland, latest available data ² Source: KDPW ³ Defined as accounts with at least one transaction over the preceding six months

Total 3Q 2012 = PLN 1,349 bn

0,95 0,85 0,85 0,91

1,00 1,03 1,13

1,48 1,50 1,51

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Number of retail investment accounts in mn2

Savings/investment distribution of Polish individuals1

Retail investors with increased interest in capital markets

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Since 15 April 2013 – new trading system on WSE

Trading system developed by NYSE Technologies, member of NYSE Euronext Group

State-of-the-art technology, used on the stock exchanges in New York, Paris, Brussels, Amsterdam, Lisbon, on the exchange in Qatar, on the derivatives exchange NYSE Liffe and in a couple of banks

System allowing for real inclusion of the Polish market into the system of global exchanges thanks to new services

Possibility of applying investment techniques popular on well-developed exchanges

UTP – new trading system

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Goals and possibilities of the new system

UTP trading system for the market

Top global functional and technical standards

Potential for growth of liquidity and reduction of transaction costs

New financial instruments (including new classes of derivatives, more diverse structured products)

Access to new investment techniques (including algorithmic trading)

New trading functionalities (new types of orders, new rules of trading)

Transaction system

Internal latency in miliseconds

Performance orders / second

Capacity - mn orders per trading session

Scalability

0.15 60

20 000+ 850

15+ 8

Next Trading Unit

expands system by

10,000 orders

/second

very limited

UTP WARSET

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Warsaw Stock Exchange ul. Książęca 4, 00-498 Warsaw, Poland

tel. +48 22 628 32 32

press@gpw.pl www.gpw.pl

Contact

Disclaimer This presentation has been prepared by Giełda Papierów Wartościowych w Warszawie S.A. (the “Company” or “WSE”) solely for use by its shareholders, clients or analysts and should not be treated as a part of any invitation or offer to sell any securities, invest or deal in or a solicitation of an offer to purchase any securities or recommendation to conclude any transaction, in particular with respect to securities of WSE. The information contained in this document has been compiled in good faith by the Company, however all users of this presentation should take note that some of the data are based or provided to WSE by external sources and has not been independently verified. WSE does not make any representation as to accuracy, fairness, correctness or completeness of the information or the opinions contained herein. WSE shall not be liable for the consequences of any decision made based on information included in this presentation. WSE hereby informs persons viewing this presentation that the only source of reliable data describing WSE financial results and events are current or periodic reports issued by WSE in satisfaction of its disclosure obligations under Polish law.