Events having a significant effect on profit or loss for the first quarter of 2022

Report number 26/2022

Legal basis: Art. 17 par. 1 of MAR - confidential information

The Management Board of Develia S.A., the “Issuer”, in connection with the publication of the consolidated quarterly report for the first quarter of 2022 planned on 17 May 2022, informs that the estimated effect of significant events on the consolidated gross profit of the Capital Group Develia SA for the first quarter of 2022 is estimated at +PLN 10 030 000, which is equivalent to an increase in the consolidated gross profit. Detailed events affecting the consolidated result are presented below in I-II.

I.

The Capital Group Develia S.A., in its profit or loss for the first quarter of 2022, recognised amounts resulting from a significant change in the exchange rate of EUR and having a significant effect on the gross profit or loss in the period, i.e.:

  • increase in the fair value of real property for investment measured in EUR and translated into PLN, amounting to PLN 17,902 thousand. The above-indicated amount will be included in the consolidated statement of comprehensive income under “Profit/(Loss) from real property for investment”
  • increase in the value of payables due to EUR loans incurred in connection with the construction of investment property amounting to PLN 8 182 000. The above-indicated amount will be included in the consolidated statement of comprehensive income under “Financial expenses”.

The effect of the above-described change in the exchange rate of EUR (at 31 March 2022, EUR 1 was PLN 4.6525, i.e. the exchange rate increased by PLN 0.0531 compared with the exchange rate of EUR at 31 December 2021 being PLN 4.5994; for Sky Tower the exchange rate of EUR at 15 March 2022, that is, when the real property was sold, was 4.7465, which corresponded to an increase of 0.1471), on the consolidated gross profit or loss of the Group for the first quarter of 2022 amounted to PLN 9 720 000 and will increase the consolidated gross profit by the corresponding amount.

The above-presented calculation does not take into account exchange differences, if any, from translation of free cash from the sale of Sky Tower denominated in EUR into PLN.

II.

In addition, the profit/loss of the Capital Group Develia S.A. for the first quarter of 2022 includes amounts resulting from:

  • expenditure incurred on investment property totalling PLN 133 000,
  • settlements due to the linearisation of lease income amounting to + PLN 443 000.

The above-mentioned amounts will be recognised under “Profit/(Loss) from investment property”.

The effect of changes described above on the consolidated gross profit or loss of the Group for the first quarter of 2022 (excluding the effect of the change in the exchange rate of EUR described in I above) amounted to PLN 310 000 and increased the consolidated gross profit by the corresponding amount.

III.

In its profit or loss for the first quarter of 2022, Develia S.A. recognised significant amounts having a significant effect on the gross profit or loss in the period due to:

  • received dividends and share in profit recognised in the statement of comprehensive income for the first quarter of 2022 at the total amount of PLN 81 959 000.
  • along with a change in impairment losses on the Issuer’s interests and shares in subsidiaries amounting to PLN 8 152 000. This amount will increase the separate profit or loss of the Issuer for the first quarter of 2022.

The aforementioned items have no effect on the consolidated financial statements of the Capital Group Develia S.A.

The above-given information is a reflection of the Management Board’s knowledge as at the date of publication of the report and is estimated only.

 

This information, in the opinion of the Issuer’s Management Board, is confidential within the meaning of Art. 17 par. 1 of the Regulation No 596/2014 of the European Parliament and of the Council (EU) of 16 April 2014 on market abuse.