Events Having Significant Impact on Performance for Q1 2021

In conjunction with the consolidated quarterly report for Q1 2021, the publication of which has been scheduled for 14 May 2021, the Management Board of Develia S.A. (“the Issuer”) inform that:
I.
The Develia S.A. Group have recognised in financial results for Q1 2021 amounts resulting from a substantial change in the EUR exchange rate and having a significant impact on the gross profit or loss within the period, i.e.:
–    An increase in the fair value of investment property, the valuation of which is made in EUR and translated into PLN, in the amount of PLN 8,814,000. This amount will be disclosed in the consolidated statement of comprehensive income under “Profit/(Loss) on Investment Property”;
–    An increase in the measurement of loan liabilities resulting from loans taken out in EUR for the construction of investment property in the amount of PLN 3,774,000. This amount will be disclosed in the consolidated statement of comprehensive income under “Financial expenses”.
The impact of the aforementioned change in the EUR exchange rate (as at 31 March 2021, the EUR exchange rate stood at PLN 4.6603, which meant an increase by PLN 0.0455 compared to the EUR exchange rate published on 31 December 2020, which amounted to PLN 4.6148), on the consolidated gross profit or loss of the Group for Q1 2021 totalled PLN 5,040,000 and will result in an increase in the consolidated gross profit by the said amount.
The change in the EUR exchange rate is of a non-monetary nature and has no bearing on the current position and operating activities of Develia companies.
II.
Furthermore, the Develia S.A. Group recognised in its financial results for Q1 2021 amounts resulting from:
–    Expenditure incurred on investment property in the total amount of PLN 236,000;
–    Settlements in respect of linearisation of lease revenue in the amount of PLN 597,000.
The aforesaid amounts will be recognised under “Profit/(Loss) on Investment Property” and will result in a reduction in the consolidated gross profit.
The impact of the recognition of the changes referred to hereinabove on the consolidated gross profit or loss of the Group for Q1 2021 (excluding the impact of the change in the EUR exchange rate described in section I above) totalled PLN 833,000 and resulted in a reduction in the consolidated gross profit by the said amount.
III.
Develia S.A. recognised in the financial results for Q1 2021 substantial amounts having a significant impact on the financial gross profit or loss in the period, in respect of:
–    Dividends received and share in profit, the total amount of which, as disclosed in the statement of comprehensive income for Q1 2021 was PLN 25,979,000;
–    A change in the amount of write-downs on the Issuer’s shares held in subsidiaries in the amount of PLN 4,533,000. The said amount will increase the Issuer’s separate financial result for Q1 2021.
The foregoing items have no effect on the consolidated financial statements of the Develia Group.
The figures and data mentioned above reflect the Management Board’s knowledge as at the date of the publication of the report and constitute estimates.

This information, according to the Issuer’s Management Board, constitutes inside information within the meaning of Article 17(1) of the European Parliament and of the Council (EU) No. 596/2014 of 16 April 2014 on market abuse.