Good morning, welcome on behalf of the Warsaw Stock Exchange. Welcome to this event to present the new strategic directions for 2025, 2027. It's a very special presentation. Let me start by thanking you for taking the time and being with us this morning. I know the ministers are very busy today. I'd like to welcome the Minister of State Assets, Jakub Jaworowski. Minister, thank you for being here. We also have Jurand Drop, Deputy Minister of Finance. Thank you for being with us. We also have the Deputy Minister for Economic Development and Technology. He confirmed this morning. Apparently, he couldn't be here. We definitely have Jacek Jastrzębski, Chairperson of the Polish Financial Supervision Authority. Welcome. We have Minister Standerski from the Ministry of Digital Affairs. Thank you.
Without further ado, welcome to the Supervisory Board of the Warsaw Stock Exchange, the CEO of the Central Securities Depository of Poland, all our guests, analysts, investors, everyone active on the Polish capital. Thank you for being with us. I'd like to welcome the Capital Group of the Warsaw Stock Exchange, and the employees who are with us today in the room and online. Welcome to all the guests who have joined us during this streaming. It's two minutes past 9:00. With this slight delay, let's open today's trading day. Minister, President, please ring the bell.
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If you have been with us over the past 33 years, you have seen the bell being rung to open or close the trading day, which is not that easy as it might seem, especially when you have two persons ringing the bell, going left, going right. Thank you.
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Thursday's trading day on the Warsaw Stock Exchange has been opened. It will be closed at 5:05. We won't stay as long. Minister, please join me on stage.
Good morning. Thank you for the invitation. It's a very important event for the Warsaw Stock Exchange and for, as it would be for any company, the publication of its strategy. In business, you say that a manager's priorities are measured by the time allocated to different tasks. It also goes for me. On my way here, I understood that over the past six months that I've been minister, I took part in four or five different events on the Capital Market. It's definitely a top three category of events for me. Indeed, the Capital Market is very close to my heart. I'm very happy to be here with you today.
The stock exchange is more than companies trading money. It's really about being an institution which sets standards, regulations, codes of conduct. When I think about the stock market, I'm thinking good practice for companies to follow, to report, to act with respect to their stakeholders and shareholders. Yesterday, we announced the code of best practice for supervision, which fits very well with the stock exchange. Good standards that the stock exchange requires listed companies to follow are very important. This makes companies and listings more transparent, which is also the objective of our best practice, to ensure that the companies with a stake held by the State Treasury, that they are also very fair and transparent. When I come to think of the stock exchange, we often talk about the big share of companies with a stake held by the State Treasury on the stock market in Warsaw.
Their capitalization is looking to PLN 90 billion, a 40-plus percent share of the total. Some people say it's not so good for the stock market or investors. Over the past few years, indeed, the corporate governance we are working on in state-owned companies, that corporate governance was not strictly enforced, and I think many investors no longer believe that the government can be a rational shareholder aiming to build value. Which is why we have such weak sentiment regarding companies with a stake held by the State Treasury. It is my ambition to turn it around. It's not going to happen overnight, but we will be working on it. Let me mention a positive impact of companies with a stake held by the State Treasury on the market.
If we go back several years in time, the privatization on the stock market, the privatization of some companies with a stake held by the State Treasury, created a critical mass for the stock market. It's with these privatizations that the stock market grew and developed. I have to say, we always say we are not planning any privatization projects at this. Let's not demonize privatization, especially in the context of the stock market. It was privatization that helped the stock exchange to develop, and the privatizations that helped listed companies were required to follow strict standards, which became more professional in their business. It seems to me that the approach to privatization was very positive for the exchange, for the economy, and for the companies themselves.
I believe that if you look at the bottom line of the participation of companies with a stake held by the State Treasury on the exchange, that bottom line is positive. Last but not least, today we're here to talk about the strategy. Drafting and implementing a strategy is a key part of our code of best practice. We recommend that companies have strategies, that they are implemented by the management board, and that supervisory boards support the management in overseeing that implementation process. This is all happening here by the book. Regarding the strategy, let me refer to the Draghi report. It seems that one aspect regarding the capital markets is key: deregulation. It seems that stock markets in Europe, the Warsaw Stock Exchange, would really benefit from deregulation to allow more companies to raise capital on the stock market.
After 30 years since independence, we have already floated many companies on the stock market, but we need more, and the stock market is a good place to raise capital. However, regulation poses a barrier. I think this is the right direction if you want the capital market to grow. Last but not least, let me thank you for the invitation. I do believe that the strategy we're presenting will further strengthen the position of the Warsaw Stock Exchange and the Polish capital market. Thank you.
This was Jakub Jaworowski, Minister of State Assets. Thank you for being with us. I know that you have another meeting at 10:00 A.M. We will continue, but thanks for being here. Jurand Drop, Deputy Minister for Finance.
Ladies and gentlemen, President, thank you very much for the invitation to this presentation of the strategy of the Warsaw Stock Exchange.
If I may follow up on what Minister Jaworowski said, the issue of regulation in Poland and in Europe, the capital market is part of the financial market is really strongly dependent on international regulation. In our case, European regulation. The challenges identified in the Draghi report to deregulate are European challenges impacting all the member states, including Poland. One of the objectives for us as government is Poland's presidency in the EU, and the new mandate of the European Commission and all the European Union institutions. The way the European Union will unfold, develop in the next five years. The Draghi report and other reports suggest some reflection, which we rely on. The minister has mentioned deregulation.
We need to look at European regulation and try to adopt it or adapt it, rather, liberalize it, relax it, and align it, clarify it, and bring it in line with today's reality, which is very different from 20 years ago, as you know, with digitization, data processing, a wave of change that requires us to adapt. I do believe in this context that the strategy of the Warsaw Stock Exchange, the new strategy, is absolutely imperative as it must address these changes, and we acknowledge and appreciate the strategy as it will be presented today. On behalf of the Ministry of Finance, I can assure you that we are thinking of changes to legislation and regulations to bring us in line with these new challenges. There's the European dimension, as I said. In my day-to-day work, implementation of European law is critical.
We have a backlog, and we need to prepare definitions under European regulations, MiCA and DORA, for instance, and this is our challenge these days. This is necessary for Polish companies, financial firms, companies that want to raise capital on the stock exchange and be listed, operate under the same legal conditions as companies across the EU. This is one of the key drivers of development. Of course, we need domestic regulation and measures, and we are very positive about the strategy for growth. Every institution must have a strategy to follow. The stock exchange is a central part of the Polish capital market, which we want to grow.
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I hope that in the next three years, the Polish capital market and the Warsaw Stock Exchange grow successfully. Thank you.
Thank you. This was Jurand Drop, Deputy Minister for Finance. Thank you. We also believe we are in the heart of our capital market, and we hope the next three years will be successful for the Warsaw Stock Exchange and for the market at large. The Deputy Minister for Economic Development and Technology is not with us, but we have Minister Standerski from the Ministry of Digital Affairs. Thank you very much.
Thank you for the introduction, even though not all ministers are here anymore. The previous speakers talked about an important aspect, regulation. Regulation that has been developed over the years by the EU institutions with a regulatory package relating to new technologies, in particular.
In the context of Poland's presidency in the EU, there are more and more member states pointing to an important area that must be addressed in this new mandate of the European Commission, specifically investments. The capital market needs more regulation kept at a minimum. It also needs capital. When it comes to new technology, AI, quantum computing, research and development of semiconductors, the Polish presidency and many EU member states expect the commission not to come with new regulation, but rather to supplement regulation with investment strategies. I'm very happy that the strategy of the Warsaw Stock Exchange Group is being published right now. We know from the commission that in the first half of 2025, the commission is planning to publish investment strategies on new technology. In this sense, this new strategy coincides and overlaps with the new area of activity for the commission.
As you know, it's very important for the market to deliver in time. I'd like to thank the Warsaw Stock Exchange Group to deliver in time to publish its strategy right now when it will best serve our future measures, the measures taken by European institutions, not in regulation, but in financing growth, especially of the capital market. Thank you.
Thank you, Minister Standerski, Minister for Digital Affairs. We've heard about regulation, so I need to invite the chairperson of the Polish Financial Supervision Authority, Jacek Jastrzębski.
President, Minister, thank you very much for the invitation to this event. I need to start with an explanation that I owe you and to the market. In general, I do not participate in presentations of strategies of public companies.
I decided to make an exception for the Warsaw Stock Exchange, and I think it's well justified because the Warsaw Stock Exchange has a double mandate, double nature, as a public company, which we supervise, as an operator of the regulated market, but it's also a key infrastructure. The infrastructure component, the importance of the stock exchange as the heart of the Polish capital market fully justifies my presence here today, and I'm happy to participate in this important event for the Warsaw Stock Exchange. It is with great satisfaction, in fact, I note that one of the first slides of the presentation on strategic directions of development is dedicated to this double nature of the stock exchange, double pillars, growing the capital market and what every public company should do, growing value.
I'm very happy that the Warsaw Stock Exchange, the management board, the advisory board understand these synergies and see that over the long term, these objectives do not have to be in conflict. I've taken part in the development of the capital market for years. The issue of the Warsaw Stock Exchange as a listed company is often discussed. It's a challenge for managers to combine these two objectives. I do believe that these objectives in the long term are not in conflict. They are complementary, they are synergic.
I'd like to congratulate the Warsaw Stock Exchange on the development of its strategic directions. I'd like to wish you that these synergies can fully materialize and that you fully take advantage of this double mandate of the Warsaw Stock Exchange being a listed company, which can also set standards for other listed companies, which brings important benefits. Another point I'd like to raise, which relates to what the minister's talked about, the European agenda, which focuses on the capital markets. In addition to these two functions of the stock exchange, structural and public company, there's another function that does not perhaps arise from regulation. The exchange should build its soft power as a center of competence in capital markets. I think in the past few months, this ambition of the Warsaw Stock Exchange has become real. I think this is a good direction.
The intellectual potential around the Warsaw Stock Exchange will be invaluable to speak on behalf of government in EU and global discussions. I think in this day and age, we need to build soft power. The stock exchange is a natural center for building soft power. I do believe this is part of the strategy, not one of the pillars. It's often raised when it comes to contributing to regulation on behalf of the Warsaw Stock Exchange as a center of competence. Part of your soft power. That's very important. As regards the details of the strategic directions of development, I'm not going to discuss them in detail. I do believe they will be discussed in detail on many occasions. I will not be speaking on financial ambitions. I'd like to point two or three points very briefly.
It is with great satisfaction that I note that the Warsaw Stock Exchange's strategy focuses on the development of debt instruments, including covered bonds. The development of this market will be key to meeting the long-term savings needs of customers. It is important from the perspective of our supervisory policy on the banking sector. I'd like to thank you for that. I appreciate it a lot as the head of integrated supervision. Another point I'd like to raise. I like the initiative to grow another value for issuers with value-added services, VAS. That's not what the strategy actually refers. That's what they are. Value-added services that the stock exchange may provide. For instance, when it comes to ESG reporting. In the regulatory tsunami, the ESG reporting requirements are very difficult to comply with for small and medium-sized issuers.
The cost is pretty high, so the exchange could provide a package of services to meet these obligations on behalf of smaller issuers. I think this will be a good incentive in addition to the natural incentives of being listed on the stock exchange. The third point about technology, it is quite obvious that Minister Standerski, Minister for Digital Affairs is present here today. The technology component is absolutely key. We know that the stock exchange is working on its new trading system, and we know that technology in companies is no longer not only provides supportive functions. It is part of the core business, which influences the assets of the company. Technology often influencing consolidations in your directions. When we think about consolidations, we know that in infrastructure, consolidation is often driven by technology.
Last but not least, I am very happy about your declaration to work with other institutions of the Polish capital market. We work closely with the stock exchange, and the stock exchange also has a supervisory function. It supervises NewConnect. In the context of the market, NewConnect would like to wish you every success in your role as a supervisor, doing the same function we perform. Reactivation of NewConnect under your new strategy will require additional supervisory powers or functions, which is not a nice job to do, but absolutely necessary for the market to operate smoothly. Thank you very much. Every success, and we will be here for you to work closely with the management and the Supervisory Board of the Warsaw Stock Exchange.
This was Jacek Jastrzębski, Chairperson of the Polish Financial Supervision Authority. Well, let me add that the strategic directions were not developed in cooperation with the Polish Financial Supervision Authority. After the Supervisory Board of the Warsaw Stock Exchange told us that the directions of development were approved, we published our report, and all the publications on the strategic directions are public. Thank you very much for reading our strategy and summarizing it right away. Now, without further ado, let us reveal the new strategic directions for 2025-2027.
We have Dr. Monika Gorgoń, Member of the Management Board of the Warsaw Stock Exchange. Sławomir Panasiuk, Vice President of the Management Board of the Warsaw Stock Exchange. Michał Kobza, Member of the Management Board of the Warsaw Stock Exchange, and Marcin Rulnicki, Member of the Management Board of the Warsaw Stock Exchange. We have Piotr Listwoń, President of Towarowa Giełda Energii, TGE, and Tomasz Bardziłowski, President of the Warsaw Stock Exchange.
Good morning, welcome. I'm happy to see so many of you. This shows that the development of the capital market is crucial for many of us. It's important for us because we need your support. I'd like to thank the ministers, the chairperson of the KNF. Thank you for speaking today for this presentation. The Minister for State Assets talked about corporate governance. The Deputy Minister of Finance talked about legislative support. It's all very important to our plans. Otherwise, we cannot expect the Polish capital market to succeed. We need legislative amendments. What is also key is digitization, the wave of artificial intelligence. Again, we need legislative change. Thank you, Mr. Jastrzębski, for speaking as an exception at this presentation of a listed company.
We are also an infrastructure, an important link in the chain. We are on the trading floor right now at the heart of the capital market, which makes us responsible for the development of the market. Moving on to the presentation, which was published yesterday after the trading day closed. I do believe that some of you have seen it. Let me move on to the presentation of the strategic directions of development of the Warsaw Stock Exchange Group 2025-2027. These are the new directions of our development. The mission of the stock exchange, as we've heard, combines two priorities, the development of the capital market and building stakeholder value and shareholder value. We feel responsible for the development of the capital market to grow its role in the economy, to attract issuers and investors, to hold open dialogue with market participants to grow the market.
Warsaw Stock Exchange is a listed company. As such, we have a mission to build value for our shareholders and stakeholders, build value by growing the scale of our business, by keeping costs under control, following the principles of sustainability supported by new technology. We also have to ensure safe trading. As Minister for State Assets said, we want to share profits through dividends. An attractive dividend policy is key for us. We will continue to pursue it. Now, briefly on the capital market. In a nutshell, the market is not what we would like today, measured by capitalization on the stock market to GDP. This figure has dropped from 35% in 2014 to 25% in 2023. That's much less than in the EU, where the capitalization of work of European exchanges over that period of time grew by 10 percentage points.
This opens up an opportunity for the stock exchange. Important in this day and age of digital and technological transition, this opportunity can be tapped only if we have more capital flowing into the stock exchange. We have a shortage of capital in public market. We are happy with the growing growth of participation in Employee Capital Plans, growing popularity of savings accounts, IKE and IKZE, the growth of private equity and venture capital. We need more involvement of all institutions in the capital market. Poland has one of the highest shares of cash and bank deposits in household holdings among all the EU. To attract some of the savings from bank deposits to the capital market opens an opportunity. If we moved down, if we brought down that figure, last year, we were number four in the EU.
This would open up PLN 600 billion of savings. If that money were to be invested, the share of the capital market in the capitalization, rather the proportion of capitalization to GDP would grow. If we shifted at least some of the savings from cash to the capital market, this would allow savers to generate higher returns in the long term. The returns over the past years have not been satisfactory, especially among the large caps, the WIG20 participants, among others, due to lowered standards of corporate governance. I am very happy, as we heard today, that there is a new focus on improving corporate governance in state-owned companies on the part of the Ministry of State Assets. Combined with transparent dividend policies, this will definitely improve the long-term return rates of the market.
That the capital market will grow if there is capital in the market, institutional capital, the capital of individual investors. When there are attractive listed companies and products, balanced regulation, new investment products, high standards of corporate governance and ESG. If all these factors are in place, we will definitely attract foreign capital, foreign investors, global investors.
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To take the market to the next level, to make the capital market a genuine driver of the economy, growing investments and innovations in Poland. In this pillar, which is part of our mission to grow the market, we will start with cooperation and dialogue with the main stakeholders. We will initiate and support these measures as part of our key mission. We want to focus on regulation. We will speak to the Polish Financial Supervision Authority regarding simplifications for listed companies. We will actively work with investment firms, brokerage firms to build scale for the market. One of the economic challenges that are often discussed is the energy transition. We believe that the capital market is a good venue to grow green instruments to finance this transition. We will support measures aimed at regulatory simplification. It is important to support long-term investments for the economy through legislation.
We will also be involved in the digital transition, as we will discuss later today. The number of listed companies has been dropping over the years. We will try to revert that trend with new listings. We want to attract new issuers to the Warsaw Stock Exchange. What is key is to get additional capital and to introduce institutional solutions. We will be actively working with issuers, investment firms, and investors through our initiatives, such as GPW IPO Bridge. We want to establish the GPW IPO Academy for new listed companies. We want to attract companies to the market by improving the NewConnect market. We are running a project to revitalize NewConnect. We believe it's very important, especially to provide capital to startups. For instance, supported by PFR Ventures. The debt market, the corporate bond market is also important.
We also want to grow the market for covered bonds, as Mr. Jastrzębski said. We want to open dialogue with Catalyst market participants through a new initiative called GPW Catalyst Forum. Being a listed company implies a number of obligations which generate costs. We will strive to improve the benefits of being listed by supporting liquidity for small and mid-cap stocks. More liquidity means lower transaction costs, lower cost of capital, and higher valuations. We will improve the availability of analysis and research by expanding the analytical coverage support program, including NewConnect listed companies. We want to support issuers in compliance with sustainability and ESG requirements. We will set up a special competence center. We will support issuers in modern communication with investors. We will support them in building loyalty programs for individual investors. People have been asking us about top priorities of our new strategy and new directions.
We focus on attracting individual investors to the exchange. We will share more details in the second part of our presentation. We want to introduce attractive long-term investment products. We want to offer price promotions. We want to adapt our offering to the needs of young investors. Young investors are the future. They are not investing in the capital market. They are interested in other types of assets. We want to introduce tools of modern communication to address them, including the development of our app. Education. Education has been and remains one of our top priorities. Financial education and building confidence in the capital market. Rebuilding capital in the capital market. We want to promote the capital market as a place to build financial security.
We will be active in the National Financial Education Program. We want to expand the educational offer of our very active foundation by increasing emphasis on the benefits of long-term investment and financing with the capital market. We want to promote best practice of corporate governance among listed companies in cooperation with the Ministry of State Assets. We will work with and support financial market institutions to increase the level of protection for investors, including minor investors. What is important is communication aimed at building awareness of the role of the financial market. We want to improve financial security. We will be building a culture of long-term investment on the stock market, what you might call equity culture. Warsaw is a regional financial hub. Our ambitions go beyond that.
We want to be recognized as a European hub of the future, so we must support and develop our regional potential. We have recently signed a memorandum of understandings, signed in Bratislava on the 13th of November by seven regional exchanges under the auspices of the EBRD, to exchange information, knowledge, cooperate, promote the markets, and take a range of measures, including multi-listing, common products such as ETFs, building liquidity and access for investors, individual and global, so we are more visible as a strong region. It will be very important to speak in a single voice at EU level. We want to speak not only to regional market participants, but also to the main regional infrastructures to create a supportive regulatory environment for the development of the regional capital markets to be more visible as a European financial hub of the future.
Now, as we heard, there is no conflict between growing the market and being a market player, building stakeholder and shareholder value. These objectives are complementary. We believe that the success of the market is a success of the Warsaw Stock Exchange as a company, a success of its shareholders and stakeholders. We are planning a number of initiatives to make our company more attractive for investors and the market. Let me turn to my colleagues from the board. Michał, what are we going to do to grow our portfolio of services, especially for individual investors?
Thank you. Individual investors are at the heart of the new strategy of the Warsaw Stock Exchange Group. Millions of Poles
Are present on the stock exchange more or less actively. 14 million OFE accounts, 4 million PPK accounts, only 2 million brokerage accounts. Not enough. We have ambitions that go beyond that. We want to build a culture of long-term investment, which requires a development of the product offering, the products that are traded, products that investors can use. We want to make them more available, especially ETFs. We currently have three futures and 14 ETFs. In the coming years, we want the market to grow as it did on more advanced markets. We want to attract investors and offer them funds which are based on Polish indices reflecting the strength of the Polish economy. We will also be growing real estate related products. The real estate market has been booming, we need some legislative change to make sure that the exchange democratizes access to the real estate market.
Debt instruments, as Mr. Jastrzębski said, we want to focus more on debt investors building and offering for retail investors corporate covered bonds. In the coming years, we want to focus on cooperation with the banking sector. We believe that our duo can play an important role in growing the Polish economy. When it comes to the equity and derivatives markets, we want to grow our offering of products and services for individual investors. Derivatives with a small multiplier will be improving liquidity in the small and mid-cap segment. For investors who invest globally and want to grow and diversify their investment portfolios, we will be focusing on the growth of GlobalConnect, which lists top global stocks. We want to add the biggest global ETFs with interesting underlying instruments for investors. We look at the young generation.
They are not necessarily investing in the capital market yet, but we hope that our offering of digital assets that we are going to build will attract them to the market. Thank you very much.
Digital assets, cutting-edge products, and modern platforms. Let's hear more about that.
IT at the stock exchange is more than a supportive partner for all our services. We have the ambition to create opportunities and to not only sustain but also maintain, improve, and grow cybersecurity. Let me present the key platforms we're going to grow. We want to complete, implement, and develop the trading platform, WATS, which is very important as it will make us independent of external vendors and offer new opportunities to introduce new products and enhancements.
After implementation of our core markets, we are planning to implement WATS on Catalyst, the debt market for bonds, covered bonds, and also repo transactions. We are planning to launch a new all-to-all market to grow our investor base and to improve access to the electronic market in bonds and debt. We are looking also at repos and derivatives based on debt. Regarding information and data are a key asset of the Warsaw Stock Exchange and other companies in our group. Data transformed into information, which requires us to improve and modernize platforms for data management and data governance. We are planning to modernize our platform for the storage and sharing of data, financial and ESG data. We want to improve the information services we offer. We want to support reporting. The WATS system offers a number of opportunities to commercialize and add value for our clients.
As regards transaction-related applications, we are looking at applications and solutions providing access to WATS, applications for risk management pre-trade. We are looking at solutions to monitor potential fraud. This is key. We hope that the solutions we are growing together with WATS will prove attractive to our clients. We are also thinking of a digital asset platform, but we believe here working with the community of financial marketplace, we hope to develop a shared blockchain platform for all participants to work on and build platforms for their products, especially in our case, non-financial assets that we want to tokenize. This platform will, however, support more services that will take advantage of the opportunities that blockchain offers. Again, we want to be a creator. That is our ambition. I ask, however, my colleagues, my coworkers, to be patient. We cannot do it overnight.
We have a lot of work to do to overcome what one might call a backlog. We will be working step by step to implement innovation and to improve the role of our IT services. Thank you.
Modern products and services on the financial market. Digital assets are all very important, but we also have an important segment of commodity market in our group. Let's hear about the conditions of growth of this market, the conditional growth of the TGE group.
The driver for the commodity market in Poland is green transition in the power sector. According to the National Energy and Climate Plan, by 2030, the share of RES is expected to grow or to double to 56% in 2030. Natural gas will also have an important contribution to the energy transition supplementary to power.
This all matters when you think about the growth of the commodity market and how we provide services and sell products to the participants of the market to meet the needs for trade strategies. Energy security has been discussed extensively over the past years, but gas supplies are one thing. We need to introduce decarbonized green gas, biogas, biomethane, or green hydrogen. There will be new areas we want to develop for the exchange. We will continue to see integration of European electricity markets of which TGE and our clearing house are an important part. As integration of European markets continues, competition emerges. We want to and need to provide top-quality service and products.
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The changes in the market will require new products and services expected by market players, which is why we are proposing several directions for the growth of our product offering as TGE Group. First of all, we want to offer financial futures on electricity and gas, which will allow marketplace to hedge electricity and gas prices on the one hand and support investment in renewable energy sources. Futures unrelated to physical delivery of electricity or gas will help to grow trading volumes on the market. The only limit is electricity consumption in Poland, we will attract new marketplace, including financial institutions, to improve our performance. We want to develop our important business line, the register of guarantees of origin with new renewable energy carriers, heat, cold, biogas, biomethane, green hydrogen, we will offer new mechanisms to match demand and supply.
New products developed in cooperation with grid operators will support the absorption of green energy in the distribution systems nationally. To improve energy security and tap the great potential of green energy, we want to offer to the distribution system operators a flexibility service market. We want to improve the safety of the market with balancing services. The development of RES includes RES indices, which are already now listed on our stock exchange. We want to adapt the indices to the current electricity generation from renewable sources. Last but not least, the agricultural market. We had bigger aspirations for the market, which has not delivered on the expectations thus far. Over the past few months, we've been trying to review the market to understand how to improve it, make it more attractive to market participants.
We've talked to ministries, to the council of this market, and advisory board, and to the markets. Based on this consultation, we decided to change the market to start trading in electronic-
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Warehouse receipts. Thank you very much.
We wish you every success for your initiatives, which are very important in the context of the energy transition of Poland. Energy transition is also about sustainable growth. What are our aspirations? Let's hear from Monika.
Ladies and gentlemen, sustainable development is key for us in two dimensions as a public company and trading platform, and we have set our objectives in this regard. When it comes to the environment, we want to comply with the regulatory requirements of the European Green Deal. We will be working on transition plans and plans to reduce emissions. Our long-term objective is to go net zero, climate neutral. As regards the social dimension, we want to focus on supporting the development of the competence of our employees, and we want to close the pay gap. Our important objective is diversity.
We want to support all initiatives focusing on diversity, including diversity among senior and middle management. Another important direction is education. We want to support financial and investment education in the general public. Education and diversity are important directions of the third pillar of corporate governance. In particular, I would like to point to the middle objective, diversity. We are in the process of transposing the Women on Boards Directive into the Polish legal system. These regulations will also apply to listed companies. As the Warsaw Stock Exchange, we want to support the successful implementation of these provisions. We have taken action. We are launching the GPW FutureBridge program. This program will match women leaders with listed companies to grow leadership. It's a multidimensional program, including three pillars. Number one, education.
This Monday, on the 25th of November, we signed a letter of intent with two universities, the Warsaw School of Economics and the Koźmiński University. We will be working together on the intra-university educational program to support and prepare candidates for positions on management and supervisory boards, especially taking into account the specificity of public companies. The second pillar is networking, broadly understood. We will focus on cooperation, regular meetings with listed companies in different industries and entities supporting professional development and career planning. The third pillar is the marketplace, which will provide all information about development programs, training, corporate university programs, an important repository of information for professional development and career planning. I'm very happy that we are starting the GPW FutureBridge program.
It's a good example of specific steps we take to support our issuers in the obligations, especially when it comes to effective implementation of sustainability and diversity. The stock exchange wants to be effective. We want and need to keep our costs under control by improving our process efficiency. Let's hear more about process efficiency and the IT strategy.
We have many ideas about how to change the capital market, but we want the change to be effective With keeping our costs under control. We're working hard on it, and we'll continue working on our plans and expand them. We'll continue to review our non-core projects, which are financial and commodity markets. We will look for optimal scenarios to grow them, and we will decide on that pretty soon. We will also continue the process of reviewing operating costs in Group, looking for opportunities for savings and improving efficiency.
We've done a lot over the past quarters, as reflected in the financial performance of the Group. We want to go beyond that and look at the efficiency of processes, focusing on whether our organization is efficient. We can see some potential for additional savings, but this will take time. Of course, this is not going to happen overnight. Another related point is building centers of competence in our Group. We will want to centralize certain functions in the Group to improve cost efficiency of our operations. We see some room to improve collaboration between trade and post-trade activities. We want to be more effective. These measures will be more effective if we rely on IT and state-of-the-art solutions in our operations. Let's hear from Sławomir.
Yes, IT has the ambition to grow the efficiency of processes, which is absolutely key.
Most of the services provided by the stock exchange and our subsidiaries are based on IT. We are working on IT solutions in support and sales processes. We are planning a number of measures to improve the efficiency of the processes, to cut costs, mitigate operational risk, improve cybersecurity. Let me stress once again the opportunities emerging in relation to operating systems. I have a lot of experience in developing and maintaining platforms in-house, and I can see a lot of benefits related to such platforms. We can rationally, reasonably develop that platform in collaboration with our in-house and third-party stakeholders, including our clients. The platform will help to develop new products and services. We can implement the platform in our subsidiaries and improve the efficiency of consolidations.
We have plans for long-term development of the platform. We are planning to modernize our core IT infrastructure of the Warsaw Stock Exchange and across the Group, mainly to upgrade the infrastructure to implement cloud computing on a reasonable basis step by step. We will try to avoid vendor locks. We will try to be forward-looking to develop infrastructure to support growth and efficiency of our processes. We are planning to involve IT proactively in digitization and robotization of our processes. Some say robotization means that processes are inefficient, but more often than not, systems need to communicate with one another based on manual operations. We are planning to robotize such interfaces and interaction between processes. We are planning to use generative AI rationally. We want to focus on efficiency and support processes that we can support with AI. We are planning to data infrastructure supporting information.
This is key. We want to support data governance and support all processes for data storage, sharing, archiving. This is key for organizations such as the Warsaw Stock Exchange. We work with data. That's our key asset. We also need to meet regulatory requirements regarding data security and retention. We are planning to adapt to cloud computing in a hybrid environment, using different cloud providers efficiently in order to rationally invest and keep our costs under control. We don't want a solution that is limited to a single vendor or service. Once again, IT at the Warsaw Stock Exchange will not only be a partner, but a creator of solutions and a core part of our business. Efficiency with new technology, including AI.
Before we move on to the next slide, let's go back to the previous point. GPW FutureBridge. This is going to be an open initiative.
We have members of management boards of listed companies in the room, including Artur Olech, President of the PZU Group. GPW FutureBridge is going to be an opening step. Would you accept our invitation for PZU to join the initiative? Thank you. Costs under control. Yes, we also have to grow. Cost control, cost efficiency, combined with growth. When it comes to organic growth, we are dependent on market conditions on the exchange. The market is difficult. We are hoping the times will get better, but we want to improve the proportion of our revenue that is not related to market conditions and growth with strategic partnerships and acquisitions. Let's hear more.
We are focusing on our core markets, but we're not limited to organic growth and exchange-traded products.
We want to diversify our business and improve its scale, which we will do through strategic partnerships and selective M&As. We will be looking for partners with well-established products and services that we could use based on the unique competitive advantage of our group. We'll be looking for strategic partners, not only industry organizations, but also companies, businesses. Partners whose products and services may help us leapfrog with the innovation of the capital market and monetize these solutions to improve the bottom line for the group. Selective M&As to grow our group in areas which are strictly related with and integrated into our core business segments. We will continue to offer attractive dividends irrespective of our M&A involvement. Let's hear about our dividend policy plans.
The strong financial position of the Warsaw Stock Exchange, our cash position stemming from our revenue support our plans with regard to our dividend payments. It is our ambition for the dividend to grow year after year, the dividend per share. That's our tradition. We want to keep it up. We are not going to change our policy of paying out between 60%-80% of the consolidated profit of the group in dividend. In those years where cash flows and investment plans allow, we may pay more than 80%. We will also take the initiatives to pay dividends more than once a year to our shareholders. We will keep up high dividends, we will offer dividends more than once per year, setting example for other companies, perhaps. Now a slide that may prove most important for many of our stakeholders, including financial analysts.
How are these initiatives going to impact our financial targets and ambitions? As we were preparing the strategic directions of our development, we did not limit ourselves to a qualitative analysis of our plans. We turned this into specific numbers, the financial results of the group. This slide presents several key measures that we will be monitoring to see whether the action we take leads to results. Our financial ambitions in 2025, 2027, the next three years. When it comes to revenue, we expect revenue to grow at 6%-8% CAGR, with a growing share of revenue that is recurrent and not linked to our trading volumes. With the cost optimization initiatives, the costs will grow at a lower rate, between 4%-6% CAGR. This should improve the profitability margins of our company.
EBITDA should be growing in the next three years by between 8%-12% CAGR. With the stable growth of revenue and costs under control, we expect our cost-income ratio, which we have been watching very carefully at 72% in Q1 to Q3, this will drop to around 65% by the end of the horizon. We want to improve our ROE after 12 months ended in September 2024. ROE was slightly above 15%. In 2027, our ambition is to hit 18%. We know that these ambitions depend on a number of conditions, some of which are beyond our control, such as conditions of the stock market. We do believe that if we follow on our plans, we will achieve these financial objectives, as ambitious as they might be. We want to be ambitious, and we want to change what we can control.
We can indirectly influence a lot through less within the sphere of our control.
Before we summarize, let me thank all the employees of the Warsaw Stock Exchange who took part in the preparation of this strategy, especially the strategy and investor relations sections headed by Michał Kuzawiński. Let me thank you for the presentation of this strategy by Robert Stankiewicz. I'd like to thank the Supervisory Board of the Warsaw Stock Exchange, which supported us extensively in our discussions on our plans. Thank you for your support, and we hope for more. The Warsaw Stock Exchange in 2027. We want the Warsaw Stock Exchange to be and remain at the heart of the capital market. We want the capital market to grow and to be a genuine driver of the Polish economy. We want to grow investments and innovations, which we need so much in Poland.
We want to attract investors and issuers alike. As I said, not everything is in our control. This presentation is also a call to everyone who wants the capital market to develop. Join us. Let's work together to grow and develop the capital markets. Our joint efforts are so important. Thank you very much. Thank you very much.
In our rehearsals, the presentation was not as long, but I think it was interesting. 30-plus slides. When you go back to your daily responsibilities, I'm sure you will go back to this presentation, and we will definitely start our new cooperation. We've heard about the new directions. We've heard about the Supervisory Board. Dr. Iwona Sroka, the chairperson of the Supervisory Board of the Warsaw Stock Exchange, has the floor now.
Good morning. I'll be very brief. We've heard everything.
I'd like to thank you for your efforts over the past two months. A lot of hard work. The management board of the Warsaw Stock Exchange was fully appointed in the first half of September, so the last few weeks have been very busy for you working on this strategy, and the results are amazing. On behalf of the Supervisory Board of the Warsaw Stock Exchange, we will be supporting you, but we'll also be making sure that you follow on this strategy and implement it in dialogue with the market, which I believe has been missing over the past years. I have a few points on behalf of the Warsaw Stock Exchange Supervisory Board. In our opinion, the strategy correctly identifies the challenges to strengthen the capital market and the exchange. In this order, they should always work hand in hand.
As the Supervisory Board, we wouldn't want to support directions of development that would distract the Warsaw Stock Exchange beyond building a strong capital market in Poland. What supports the capital market and its participants directly supports the Warsaw Stock Exchange. This has not always been in place. Ideas to diversify the business of the Warsaw Stock Exchange were not always aligned with growing the strengths of the capital market in Poland, scale, and competitiveness. Our message on behalf of the Supervisory Board is as follows. Warsaw Stock Exchange wants to be an exchange once again, focusing on initiatives that matter and that contribute greatly to the growth of the Polish economy and capital market. You saw in the presentation that we will be working on mechanisms to shift capital into the economy to finance innovation and growth.
We want the Warsaw Stock Exchange to become once again the icon of transition, green transition, digital transition, building capital that we don't have enough of, especially when it comes to pension savings and the demographics in Poland. This strategy addresses all the key stakeholder groups, investors and issuers, investment firms, shareholders of the Warsaw Stock Exchange, and regulatory leader you've heard also from Mr. Jastrzębski. I hope that this will help us to find our bearings in the fast-changing regulatory reality in Poland and in Europe. We will make sure that the exchange provides efficient, successful, and reliable transactional infrastructure. I'm glad that Sławomir is now on the board, although he's been working in the building for a long time. I wish every success in the implementation of this strategy. As the Supervisory Board, we will be the guardian of that process.
We can offer every support and full engagement of the Supervisory Board and Mr. Rozłucki, the first President of the Warsaw Stock Exchange in history. Thank you for being with us.
Thank you so much for these nice words. Dr. Iwona Sroka, Chairperson of the Supervisory Board of the Warsaw Stock Exchange. We have presented our directions of development. We have heard summaries. We've looked at questions from analysts from the media. No, there are no questions, so I would like to ask if there are any questions in the room. We have time for this Q&A. Well, thank you very much. Starting next week, we will be meeting with investors in Poland and globally. We'll continue the meetings next year, and we will talk to all listed companies, especially large companies, state-owned companies, to attract more investors to Poland. Thank you very much, and stay with us.
Thank you very much. Tomasz Bardziłowski, President of the Warsaw Stock Exchange. Dr. Monika Gorgoń, Sławomir Panasiuk, Michał Kobza , Marcin Rulnicki, and Piotr Listwoń, President of TGE. Thank you very much. If you have any questions, please email us. The media section of the investor relations will take any questions you might have. Thank you for being with us today.