Develia Group’s Strategy for Years 2024-2028

The Management Board of Develia S.A. (“the Issuer” or “the Company”) inform that today, i.e. on 16 April 2024, the Supervisory Board have approved the Develia Group’s Strategy for the years 2024-2028, devised by the Company’s Management Board (“the Strategy”).

The said Strategy aims to present potential for Develia’s growth based on the analysis of the company, market and competitors. It has been envisaged under the Strategy that the Company’s value will be increased by expanding the scale of operations and, at the same time, providing foundations for the Group’s further growth in selected real property market segments. The Group plan to be committed to further growth in the residential segment and continue the process of selling assets in the office and retail segments.  Capital recovered, as planned by the Group, will be reinvested in the market areas which offer best prospects, including flats and PRS.

As part of the Strategy, the Develia Group plan to:

• Further substantially expand the scale of operations in the flats for sale segment to the sales level of 4,500 flats in 2028;
• Systematically replenish and secure land bank to ensure the sale of flats on average in the four-year perspective; Increase land bank secured conditionally;
• Continue the growth of business by entering into partnerships and M&A transactions;
• Ensure the diversification of operations by completing PRS and dormitory projects;
• Expand its own operations as the contractor of works as part of the group;
• Enhance brand recognition and awareness and actively build the attractive employer’s brand;
• Implement the ESG strategy, including to report and operationalise the emissions reduction plan and model solutions in this regard for residential projects.

The Strategy performance indicators developed for evaluation purposes cover such areas as:

• To increase the scale of operations from nearly 2,700 to 4,500 (in 2028) in the housing segment, increasing the share up to 7-8% in the markets on which the company operates
• An average annual budget for land acquisition and M&A is more than PLN 500m. Increase land bank secured conditionally; Build bank land for approx. 15,800 premises in 2028, taking into account land secured conditionally;
• To ensure the diversification of operations by carrying out projects in the PRS and dormitory segment – at least two projects annually on average;
• Dividend potential of above PLN 1,350m for payment in the period from 2024 to 2028;
• To maintain secure financing structure at a level corresponding to industry benchmarks (net debt/equity 0.20-0.40);
• To complete disinvestment for the assets in the commercial segment – Arkady Wrocławskie and Kolejowa
• Projekt Malin – to carry out the warehousing project on a JV basis.

The Strategy has been enclosed with this Current Report as an attachment.

Data and figures contained in the Strategy do not constitute any forecast or estimates of future performance, including of financial results of Develia S.A.. They only serve to provide information on the Issuer’s and the Develia Group’s envisaged areas of activity and Develia Group and the potential directions in which they could extend their operations in the years 2024-2028.

Due to the fact that the foregoing information has an important impact on the perspectives of the Issuer’s growth, it has been deemed to meet criteria laid down in Article 7(1) of the Regulation of the European Parliament and of the Council (EU) No. 596/2014 of 16 April 2014 on market abuse.