Gielda Papierów Wartosciowych w Warszawie S.A. (GPW) Earnings Call Transcript & Summary

Distinguished ladies and gentlemen. I'm hugely delighted to welcome all of you to this special event, the presentation of the new strategy of the GPW Group for 2023 until 2027. I welcome the Ministry of Finance, [indiscernible] in particular. And I welcome representatives of the Polish Financial Supervision Authority and our international guests from the Cyprus Securities Exchange. I'm delighted to welcome members of the Management Boards and Supervisory Boards of all the GPW subsidiary companies and their staff. I would like to welcome members of the press and other operators in Polish capital markets. To the best of my understanding, there's a large group watching us and following this event online. Therefore, may I welcome our shareholders and investors and representatives of issuers. I would like to encourage you to send e-mails to strategama@gpw.com questions that we will take and answer at the end of the conference. Now members of the Management Board of the Warsaw Stock Exchange will present sections of the upcoming strategy. And without further ado, I would like to invite the host, the President of Warsaw Stock Exchange, Mr. Marek Dietl. Over to you, Marek.

It's wonderful to see you all here, thank you very much for coming in such high numbers. And thank you for coming to the hub of the Polish capital market, to the seat, corporate seat of the Warsaw Stock Exchange. And thank you to all of you, our dear stakeholders who are following this event online. It's a celebration. It's not so often that we announce our new strategy. And may I thank you very much, my colleague here for being with us and my guests [indiscernible] for being here with your team. Now what we're going to present is a flash of our plans reaching out to the year 2027. Now with that, I would like to emphasize that we would like to make this meeting as interactive as possible. So do engage, do raise your hands and ask questions. If you are here or just signal your intention to ask a question online. We'll tell you what we know about our plans going forward. Now before I leave the stage to my other colleagues who will present the various sections of the strategy, let me give you an overall review of where we're at amongst Central and Eastern European countries, the countries that joined the community of the capital market in recent decades. We are the first one to gain a developed market status. It's an honor but that's a challenge because we have to satisfy very high expectations. We also in the region of Three Seas, [indiscernible] including Austria, and we hold 80% of trading in equities. We have a higher share in derivatives as well. So that the entire region, not only institutionally, are we the most developed but also in terms of the size of trades, now the high revenues are due to the fact that we have a 90% share in the trades of Polish equities, the reform of capital markets [ method 2 ] has made shares of companies, listable in a number of exchanges and not only security exchanges but also in [indiscernible] banking facilities. And we have retained a high share of trade in Polish equities. We have 5 fully finished technology solutions as in the past recent years we have changed beyond direct transition as far as our R&D center in which we have commercial products that we use and our clients use as well. Our capital group, includes the most popular company and I'm proud to say this, is GPW Benchmark. Obviously, valuations are important but what about the reform of referential indices or indicators and with our colleagues in GPW Benchmark, we are involved in the largest reform in the past 25 years. So we will be introducing real realistic indices, new reference integrations that are based on actual transactions, actual money changing hands rather than [indiscernible]. And we will deliver this as public information and GPW Benchmark is doing a very good job, Euribor, the European Institute for Financial Regulation, successes of the European Central Bank has gained a lot of trust and has granted us a large creditor trust. Now commodity markets has evolved and grown rapidly. And we have the commodity energy exchange representatives here. And it's impressive how much mileage we have done over the past -- over the past several years, even though there's no mandatory requirements on the sale of gas and electricity, still the exchange mechanisms are vastly and abundantly used and the infrastructure appears to be extremely useful. Now where are we at in terms of our competitors? To move on, looking at the market potential and IPO is the second biggest topic. And over the past several years, we have had a large number of newcomers. We have about 15% to 20% of the European IPOs and 1/3 of Polish GDP is generated by companies that are controlled by international -- multinational corporations. This obviously puts a cap on the way, on our ambitions to acquire new issuers. Now once we acquire new issuers, we must be aware that there are other alternative platforms where you can invest and raise money through, which is a beautiful piece of evidence that the market is diverse. We are still very popular. So the entry barriers have been lowered and we are still motivated to improve our performance even further. We have a number of regulatory risks. 2014, the carve-up of open pension funds and these funds are now selling rather than buy shares in the capital market consolidated tape provider, CTP is another challenge on the regulatory front, which is going to increase transparency of the European capital market plus a buzzword in this community markets abuse -- regulation that applies to public companies. There are many issuers. Competition is fierce. The economic space is enormous and you can select your issuer for equities and bonds across the EU. Looking at the macro environment over the past recent years, higher interest rates have not been helpful. They never are. Plus, Poland as a country neighboring a war zone -- above war zone, Ukraine which has been assaulted by Russia, that is a source of additional headache for our investors. And questions are asked and our issuers from Ukraine are mostly affected by that. And they have formed a big parts of the market. And we have concentration of trades in largest markets, which is a popular phenomenon. And the economy of scale seems to be on the winning side. Now you can obviously see the statistics, the number of national domestic companies listed on the Polish market. Since 2005, the number has been reduced or has dwindled by the share [indiscernible] capitalization to GDP has grown. So we have more and more larger operators, larger entities, fewer of them but they are larger. Now on the one hand, we want to remain a hub for medium-size corporations and we take initiatives to achieve that goal. But we have to understand that markets inherently have to seek to include the largest checks, the largest tickets. So within the competitive environment, the largest exchange operators and also small exchanges have decided to enter new business areas, not really taken for granted so far. Traditional core exchange business, London Stock Exchange is 28%. It's not marginal but it's not sizable or significant. I've heard a panel with 2 members of LSC and they talked about capital markets and they said, rightly so that it's one of the business lines, not really the most significant one. In New York, that's 58%, 58% of the revenue comes from trade in financial instruments -- traditional financial instruments and that applies also to NASDAQ. And in the midsize exchange landscape, we see the growing parts of the non-exchange business in the mix. Only 16% of our revenue is outside of the classic exchange business, be it financial and commodity. However, our diversification is pushing us to the left side of this chart and the initial results early this year show that we are successful and our logistics operator seems to be growing very fast. So the decision that we made back in 2018 and '19, seems to be bearing fruit. So the catch-up with the largest exchange operators seems to accelerate. Now what is our response going forward over the next 4 years? So briefly, we see ourselves as a digital platform supporting economic growth. And you will learn soon the details of what we actually mean by this. We want to achieve this by being a leader in transparency. This should be our hallmark. We want to deliver technology solutions or financial solutions, digital vehicles, we should facilitate saving mechanisms in Poland by Polish citizens in a number of forms, not only in the pure capital vehicles, we should also promote investment but not only through IPOs, formats should be diverse. Now Izabela Olszewska, may I ask you either to tell our guests what we are preparing for our investors?

Good afternoon, ladies and gentlemen, from the perspective of our investors, it is our products that are the most important, i.e., what kind of financial instruments are we going to offer. So as regards the shares market, our strategic objective is to remain a leader in the turnover and the trade of Polish companies. it is worthwhile to broaden the context somewhat. Mr. President has just mentioned that we are under a competitive pressure on the part of the issuers that is and there are other markets competing. We also compete for volume and this is particularly important in a multi-party [ MDF ] platforms or so-called systematic internalizers. And our strategic objective is, for our share in the trade in the Polish companies to be over 80%. In other words, we want the Polish companies' shares to be traded in the Polish Stock Exchange. Now as regards bonds, we have plans to expand our offer for institutional investors. Under our new strategic horizon, we want to establish a new market, state treasury end market, part of the TBSP market and the Gold Spot, our daughter company to be running it. This should cover both spot and repo transactions. And in addition to the TBSP market, in addition to banks, there should be institutional investors, investment funds, insurance companies to be able to join it and use the new functionalities, such as, for example, the midpoint transactions, the spread transactions, all of the clearing system offered by the CCP. And we are going to pay a lot of attention to the growth of derivatives. We know that in the other markets, this is a dynamically growing instrument. We have plans to boost this market further in every area of our capital group. Now the derivatives market. These are going to be grown along the lines already there but we are going to adopt a missing category, which is share options with physical delivery. And after our WATS system is operational we are going to complement the existing range of derivatives with that. Now as regards the BondSpot company, we intend to expand the range of derivatives by instruments related to interest rates. This is going to be a complementary solution to the treasuries market and the commodities market, of course. There, the futures market is going to be a focal point over our new strategy horizon. We want to add-on future markets for electricity and gas so that we can offer a full range of derivatives in this new sector as well. And the agricultural sector too. Now as we grow our instruments range, we are going to further expand what we already have. For example, GlobalConnect. This is a relatively young market. It is only in the making, so to speak, we only have 7 companies there. But we can see turnover daily, trade daily and growing interest on the part of investors. And as we already signaled to you before, we would like this market to see new entrants, blue chips from Europe and then from the United States. We want to expand the exchange-traded products, ETFs, in particular and will grow too. And we very much hope that the changes which are already addressed to and the law will be helpful in this regard, new products, too. Exchange-traded notes, ETNs and exchange-traded commodities or ETCs. Now a major change that we shall see in our strategy is our approach to the data products and services. The data that the investors receive from the market as well as the capital markets' entities are boiled down to market data. So this is our data, market data, which is processed and made available. But we think that in this area, there remains a lot to be yet done. And this is something we want to do over this strategic horizon. We want to make available an iXBRL format, a company report -- structured company reports. At the moment annual reports from the regulated markets are indeed made available in the structured format of iXBRL, this is the European ESEF standard. Now our value-added will be that we are going to include in our reporting the alternative market entities. We want to build a repository of such reports under 1 roof so that all the public market entities' data can be tapped into that. I think it's going to be helpful to the investors and to the analysts and then certainly expedite the analytical work so that they have more time available on the analyses proper. We want to meet halfway an important trend, which is already visible in the capital market. And that is ESG in terms of investors and data. More and more in here, that well structured data is more and more needed in approaching ESG, and this is the sort of data that we're going to collect, structure it and make the data available to our investors. Now if such data can become available, this is, of course, going to be a point of [indiscernible] for our growth and the index offer under sustainable finance. We want to build a whole group of products dedicated to traders, flow insights category of products providing for a better transparency and the breakdown of order flow to use the English term for it, we all know what it does mean, so that the traders can get raw data from the market. And broken down into passive or aggressive? Is it non-customer data, was it market data? All these categories, all these breakdowns can be fed into the algorithms and facilitate market decisions. Now depending on the market need, market demand, we're going to be looking into that but we want to spend our offer to improve alternative data. We are getting all sorts of questions concerning the sentiment analysis, capital market sentiment analysis. Or AI solutions could be made to be able to do that, to look into the emotional qualities of the market that obviously is correlated with market changes and with the price forecast. Another type of data is [ no casting ] type of data. So real-time prognosis, real-time forecast and we can see that this is widely applied in the American market, for example, we want this category of alternative data to grow together with our external partners. Now this particular slide, wrapping it up, I would like to say that this is going to be one of the strongest pillars of our new strategic horizon. Now what else have we got for our investors? Obviously, we should also mention our technological solutions. And here the key initiative is the WATS transaction system, it has already been started. It's actually been started over the previous horizon. It is going to be taken further, which is a state-of-the-art fast system providing for many functionalities such as potential access to all the markets operated by GPW Group via 1, via single platform for time optimization, important for our investors and members, time to market or for development potential of technological segment. For the [ random ] opening, which is certainly a solution that limits the potential for abuse manipulation. Now when we attend various conferences, our TCA tools are [indiscernible]. That's the application for micro and macro analysis for investors and traders so that we can -- so they can measure both implicit and explicit costs to understand well what is the real genuine transaction cost. We also wants to activate cloud-based services. These are going to be offered to brokerage software including software developments. We are well underway in analyzing the legal and technical conditions for that. An example of such services, cloud-based services would be RegTech type of service, RegTech and regulatory requirements. It's a SaaS service. We are open to collaborating with the software providers and place the software there. But also our WATS program, we have the [ Watson ] application, which could also be made available in the cloud. Now we want to expand our stock solution to better detect abuse and manipulation. And again, we want investors to be able to detect market abuse in the marketplace for these to be short circuited. Now the new markets are important in our plans too. We are entering a era of financial assets. And here, as a stock market, we think this is an important area. We already started working under private market on that but I'd say tokenized nonfinancial assets market here. Now we are well underway in developing this solution and make it available to the investors. Also in what will follow in our strategy within the time horizon once the regulations are in place, we would like to implement a project, which we refer to as Warsaw Integrated Digital Exchange. Now this project will focus on the tokenization of financial instruments. There is such a possibility under the EU regulation already in effect concerning the pilot system. And for blockchain register, we want this to be implemented into the Polish legal order so that we are able to develop the market for tokenized assets. We want to develop a crowd funding platform too. However, what sets us apart from the other platforms is that we wanted to act under the European regulations and the financial markets. The supervisory authority wants to receive a license for that. We are certainly going to explore this area of activity. And finally, we are open to support for systemic changes and response to a more opportunistic development of products and markets. An example of that, for example is, to develop a liquid market for collateral notes. But all that is in the hands of the regulators and we are certainly going to respond once the possibility comes up.

Thank you very much, Izabela Olszewska for your presentation. In order for investors to be able to trade in something we need to have, issue is, there's no shortage with our suppliers, no shortage with just customers. Monica Gorgon, please tell us what we offer to our clients who are issuers.

Good afternoon. The new strategy, apologies for that. The new strategy offers a number of initiatives for our issuers, there are corporate solutions. And now I would like to walk you through the major highlights. First and foremost, we will provide our support in ESG reporting. As Izabela Olszewska mentioned, this is a global trend and it will continue and grow in importance. And may I stress that over the past 3 years, European regulations been evolving with respect to ESG reporting and they are becoming more and more demanding on publicly listed companies. We are currently implementing CSRD directive, which apart from taxonomy will require very clear reporting. For investors, it's absolutely positive because investors will be able to compare companies and they will understand which companies are committed to sustainable development. Issuers, however, will have to make effort to comply with the new reporting requirements. And in that, we would like to support publicly listed companies to ensure that their reporting is at top level -- at top quality level. And we have 150 companies currently subject to this requirements, the number will grow to 3,000. So we're going to start with public companies but we will expand beyond the listed companies. If we talk about ESG, we need to look at G, governance even further. And for issuers, we have developed a system GRC by WT -- WP, sorry, GPW Tech. This system automates governance, risk and compliance. It is made out of 3 modules, relative to the 3 letters and this module will be available to all investors to help them manage their organizations. As I mentioned, public companies are subject to regulatory requirements and the levels of risks. The level of risk in such companies tend to be elevated, especially in terms of communications and in communications, then we should look at Investor Relations. Now Investor Relations are crucial to publicly listed companies because a transparent publicly listed company will be more appealing to investors. Communication is also strictly regulated. There are rules and regulations that regulate processes and impose sanctions. And in order for communication policies to be compliant, we must put in place adequate reporting mechanisms and these reporting mechanisms must meet all the requirements in terms of timing and the scope of reporting. We must never allow any publicly listed companies to be harmed by noncompliance. And we would like to support companies by providing training and by providing platforms to exchange ideas with other investors -- with investors. And we're obviously implementing this for our own needs, for our own companies. We have launched an ESG strategy for the entire capital group and this strategy is now operationalized. It's being deployed and operational plans are being designed and we're training our people across the board in environmental labor markets and governance issues. We have successfully implemented our own [ GRC ] system. Having done that, we have structured our processes, linked them to compliance. We have created a database of internal and external rules and regulations. We have mapped out compliance and we have linked it to the checks and balances and risk management -- risk management areas. Now this system is commercially viable as a product developed or commercialized by GPW Tech and we would like to make it available to you. Furthermore, the Knowledge Exchange Forum is something that we have created, and we will expand this in order to invite market participants, market operators to come together, educate themselves and exchange ideas and best practices in order to further the capital markets quality. Thank you very much.

So I have 2 comments. First, Monica has done a great job of walking us through this part of the presentation. She's also modest. She didn't tell you that GLC was her own sort of baby. And by the way, let me comment that ESG and GRC are things that we do first and then we share it with others. And we have joined the WFE, the World Federation of Exchanges and this is a good trend. But Adam Mlodkowski, can we make money on that? Tell us.

Good afternoon. Hello, everyone. Let me assure everyone, yes, one can make money on it and good money for that as well. Now we have made business cases for all the initiatives that have been presented here and indeed this looks fairly impressive. I shouldn't be the one to judge that. Let's -- let the analysts be the judges of that. But I'm proud what is the best -- what the best measure of growth is revenue, revenue growth and the revenue growth in the strategy is significant. It's a rapid upward curve between 2023 and 2027, average annual revenue will be at PLN 0.5 billion. To compare it to the previous strategy -- the previous 5 years, it marks a very significant growth. We have PLN 377 million, which means that our company, our group has been growing and much of that growth comes from the new strategic initiatives. Now if we compare this year, the first year of the strategy with the last year of this, the revenue difference will be at PLN 157 million, PLN 100 million of which. As much as PLN 100 million will come from the new initiatives. So both the new ones and the legacy initiatives stemming from the previous strategy. Of course revenue growth matters enormously but we need to make profit and we have to keep liquidity. We've never had issues with that. Our liquidity is very high. It has actually grown recently. As far as our efficiency of our performance, as any other exchange, we were affected by commodities, energy utilities, the growth in cost, IT and other services. Therefore, our costs have grown recently and our performance has slowed down a little, however, the new strategy is planning to reverse that. And in the last year of the strategy, our EBITDA margin will be at 50%. That is very high territory. On average, this margin will continue to be rather high 37 at 37%, but 50% should impress people. And these strategic initiatives don't only generate revenues, but they actually translate into the bottom lines, highly profitable initiatives and we have done business cases for each and every of them. And we have calculated all the profitability ratio. And in 2027, these initiatives will account for 30% of the financial performance of our group. And the key leverages of our growth will be the core trading platforms and the new data-based products and services that we have alluded to earlier on. Here is the mix. Here is the breakdown of our revenue, the core business that will be grown. This is annualized revenue across the strategic period. The core business, 80% of revenue, legacy projects, 10% new strategy, projects, 10% which adds up to PLN 100 million, half, kind of 50-50, easy to remember. Now our financial ambitions and we must ensure that this happens, must never be too sensitive to market cycles. So we want a strong component of the sort of business that is repeatable and the new strategy talks about 40% of the repeat performance in 2027. And if the plans hold true, we are going to be market leaders. We will be in the top -- in the top group, we will never catch up with London. But their operating model is completely different. Anyway, this will increase our financial security and more predictability and will be welcomed by the market. Now we do realize that our investors, shareholders, existing shareholders and prospective shareholders would like to see really top performance but they also want to participate in the profits, they want a share of that. Therefore, the security -- also security exchange will be a dividend paying organization and we will continue our dividend policy. In fact, we will pay dividends from 60% to 80% of the consolidated performance, so we will tap into all the gains generated by all the subsidiaries within our group. Now there's 1 small caveat here, no surprise here, I suppose. We are still and continuously so, committed to growing our business organically. And by acquisition, our strategy, business strategy department has been quite proactive and is looking at opportunities. We have successfully taken over AMX, posting very strong performance and last week we presented Q1 financial results. And of course, we would welcome more and more such acquisition transactions. And if this is successful, it can affect dividends. Of course it will, a function of the sort of scale of that acquisition. If these are small transactions, there will be no adjustment. But if we do have higher acquisitions, it may be mirrored by higher dividends. If we don't do a lot of buying in the market, we may actually see higher dividends. Right. The last slide of my portion, of my section, quite but an important slide, I believe. Now you can ask yourselves a question how do we post such a high profitability performance? On average EBITDA is to be at PLN 255 million compared to PLN 205 million in the previous strategy, not a big difference but performance has dwindled in other parts of the industry. So this is quite impressive but the revenue is not the only source. We need to control our operations. We must build a strong and healthy organization. Therefore, we have designed a quite an ambitious program. A cost reduction program and operating efficiency boost programs consisting of 7 initiatives interlinked, maybe there will be more. So far, we announced 7. And mostly, they will include the replacement of IT systems. Apart from what's mentioned by Iza, we will also deploy state-of-the-art systems with much more automation and much less manual work. But we also plan to -- we're also planning to introduce new tools and to have more robotics in our companies and process management, we've started a pilot in our energy exchange, our subsidiary and this is showing good results already. We believe this project should be rolled out and should include the Warsaw Stock Exchange and other subsidiaries. Now once WATS is put in place, which will be a breakthrough, we will launch a new organizational chart, a new organizational structure, which will apply to IT operations and business. So the structure of our group will be amended, and we will operate to a new model. And obviously, this restructuring will not affect our performance. Now these new initiatives will generate savings of about PLN 34 million across the entire period. And if we look at the financial part of that and in terms of where we will build our value, the most efficient initiatives, data-driven services and service-as-a-business operating efficiencies, the third stronger source, not only do we grow revenue, diversify our business, but we also restructure internally, deploy new technologies and building a new resilient organization that will be sustainable. If we extrapolate the financial model that we have designed with our adviser, the numbers going forward will be actually more impressive but we are now constrained by the strategic period of 5 years. So with that, I would like to thank you very much for your attention.

Thank you very much for these brilliant figures. Now we need to get down and deliver them. And may I ask all the colleagues and collaborators within our group, please wave to us. Thank you. Thank you for being with us. I wanted to thank you very, very much and the thanks are due to you for the past 6 years us working on together so that you accepted me in your midst even though it came from the outside world, not from the world of stock markets. So thank you for being so welcoming when I did arrive. So thank you very much for the very good time together. Now we have 12 full financial years as a public entity. The first 6 years, if you look at the average revenues, they went up by almost 1/3, which is an excellent result. And thank you all for putting your trust and confidence in me. There were many naysayers initially that no, no, this forecast will never be implemented. Yet we did implement it and stay with us, this is a very good place to keep changing Poland, changing the capital market and for expansion into Europe and into the world at large. Thank you very much.

Now let's take a short technical break. And we will ask on stage members of the Board in a second. You can still send your questions to strategy@gpw.pl. We already have some questions addressed to us. Of course, you can always ask your question from the floor, those of you who are present here. All right. You may ask on stage members of the GPW Board. Now all the questions we've got so far are rather tricky, I should say. Now let's start from this one. One of the analysts put the following question. Core business or new business areas, which are going to place emphasis on in the new horizon?

Well, let me take that as this is a [ meta ] question. So over the previous horizon, we took a close look at what the other markets did and we didn't and took our key core competencies into account. That's why we expanded in new areas. The initiative was delayed because of the pandemic but these initiatives were extremely promising. And they certainly gained momentum over the last year. And you can see the results of it in the first quarter of this year. Therefore, we want to continue with the initiatives that we have historically started. But what we are proposing now is to focus very much on our core business. But we take a completely different attitude to it, technology-wise and product-wise. And what Iza and Monica told you is exactly about redefining our core business and expanding it to include new initiatives. So we keep it diversifying, getting new sources of revenue and we still want to deepen our product offer as well. Over the previous horizon, it was 50-50 core business and new initiatives, now it's going to be core business, 75% and new initiatives that stand at 25%.

Next question. In your new horizon, how will your revenue structure change over the next year's revenue structure change? Adam?

Well, this question really follows up on the previous one. In a sense, I showed you a slide showing you the average revenues over the 5 years, 80%, again averaged for on a yearly basis will come from the core business and about PLN 100 million, 50-50 between the carried over projects and the new strategy. So in total, PLN 500 million, roughly PLN 400 million on the average per annum is the carried on business, the continuation and then those that are carried over from the previous horizon that now start to perform. After the first 3 months, I think we had about PLN 10 million in our revenue from the new business lines and this trend will be continued. So that is more or less the breakdown. End of the strategic horizon, about 30%. About 30% of revenue will be generated from the new lines. We see growth potential in the new lines but we certainly want to defend and diversify our core business too.

Thank you for this response. Another question. Your new strategy, new mergers and acquisitions? If so, what scale of it?

All right, very briefly on that, we have been very actively engaged, as they say, it that takes 2 to tango, we cannot really preempt on the figure, how many we're going to buy or merge but we are very active in mergers and acquisitions. Some of the advisory services that you're seeing when we report the quarterly revenues related to IT operations, the strategy, some of them and this has been the case for the past years. Well, Armenia worked out very well. So this really is encouraging. Every M&A project is a learning experience to improve our operations there. Those of you who are engaged in this kind of operation would know how these businesses operate in other countries. This is also a way to expand our Nordic. But we keep looking at the technological companies related to the stock exchange, also security-wise but there are very few of these offers up for grabs. So it's very difficult to run a hard M&A strategy because it -- we just may not come true. It's not just the stock market, which is participating but also our capital group affiliates. TGE, for example, [indiscernible] group intends to move in that direction, keep our fingers crossed by our colleagues. We collaborate very closely with them on that.

There's a bigger question here broken down into sub points. Now what activities can we expect from GPW over the next few years as regards making the public market more attractive? A, on the supply side, as a way of monetizing investment or obtaining growth capital for investors. On the demand side for local and international investors, both active and passive. And from the liquidity point of view, what level of capital will be available from the pool of investment funds to encourage the issuers to embark on large-scale IPO tickets.

So first, the supply side. All right. Let's start from the operators, from the businesses. We're doing what we have influence over. We've already started doing that in fact. And from the point of view of the future issuers, we've done quite a lot to simplify the procedure so that entry into the public market should be more friendly and should last shorter times, so we want to simply shorten time to market route. Secondly, what we offer to our listed companies is not just opening up the market for them and getting capital. But as my colleague has mentioned, we want to make available to them all sorts of services to help them navigate better in this market in the new horizon. We are certainly going to do more and more to promote these operators vis-à-vis the investors. For example in IR conferences where we present operators to the investors on an international plane there are one-on-one meetings as well, where we like a targeted choice depending on the company, we're talking about, the sector it comes from and so we do that too. What is beyond our control is the actual pricing. And this is all a system of interconnected entities, the geopolitical situation, the war in Ukraine has certainly impacted the evaluations. And we are neighboring a war zone state. Of course many of them stayed with us. They did not give up. These are well-known brands but they are waiting for the IPO as is the case for many other European issuers. But again, this is not something we have control over. What we can do and we certainly will do, education and networking and the -- whatever we do under GPW growth where companies come to learn about -- learning about getting funded from the public market, what procedures need to be taken and so on, how beneficial IPOs were for other entrants already there and so on and so forth. And GPW growth, ESG, that's quite important too, to issue, say green bonds for green transformation, what is needed, which is in fact, mandated by certain regulations. And so we will do all that within the new horizon. And which is very significant and which certainly biased on the pricing, are the so-called flows, i.e., the interest investors take on the demand side for our market. And here, you can subdivide our clients in 2 categories. One is the long-term investors and traders, traders who are very important from the point of view of liquidity being provided to the first category. Now the new WATS system was certainly going to be helpful. It is faster, it offers new functionalities and all the programs that we're going to carry on with and expand the target liquidity providers. And that is certainly going to be a lot motive in our horizon, how do you prove on that, how to expand that so that the market should gain depth, liquid and the investors who enter our market should be able to tap into the conditions available. So I think, whatever we have said today, will adopt to this. And if data are available, and of course, investors will be more willing to join the market. We have great ambitions there and major plans already made. But in the beginning, we want 80% of trade in the Polish companies to be channeled through our stock exchange. And if you look at the other markets, this would be a very good indicator. At the moment, it's over 90% but the biggest securities exchanges are at about 50%. So again, we want to keep investing to keep our investors and traders with us.

This was an extend -- quite an extended question and extended answer. Now may I throw the floor open to you, ladies and gentlemen, present. Are there any questions from the floor? An individual investor, [indiscernible].