Events Having Significant Impact on Q1 2023 Profit or Loss

In connection with the Q1 2023 consolidated quarterly report, the publication of which has been scheduled for 17 May 2023, the Management Board of Develia S.A. (“the Issuer”) inform that the impact of significant events on the consolidated gross profit of the Develia S.A. Group for Q1 2023 is estimated to be PLN -4,102,000, meaning an decline in the consolidated gross profit. Details relating to the events having an impact on the consolidated profit or loss are presented in sections I to II below.

I.

The Develia S.A. Group have recognised in the Q1 2023 financial results 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.:

• A decrease in the fair value of investment property, the valuation of which is made in EUR and translated into PLN, in the amount of PLN 1,616,000. This amount will be disclosed in the consolidated statement of comprehensive income under “Profit/(Loss) on Investment Property”;
• A decrease in the measurement of loan liabilities resulting from loans taken out in EUR for the construction of investment property in the amount of PLN 615,000. This amount will be disclosed in the consolidated statement of comprehensive income under “Financial income”.

The impact of the aforementioned change in the EUR exchange rate (as at 31 March 2023, the EUR exchange rate stood at PLN 4.6755, which meant a decrease by PLN 0.0144 compared to the EUR exchange rate published on 31 December 2022, which amounted to PLN 4.6899), on the consolidated gross profit or loss of the Group for Q1 2023 totalled PLN 1,001,000 and will result in a reduction in the consolidated gross profit by the said amount.

II.

Furthermore, the Develia S.A. Group recognised in its financial results for Q1 2023 amounts resulting from:

• The conclusion of the final sale and purchase agreement for Wola Retro Office Building in Warsaw, as a result of which the fair value of the investment property Wola Retro changed, the fair value of which as at 31/03/2023 was EUR 69,286,000. The impact of the recognition of the real property valuation results in a reduction in the gross profit or loss by PLN 2,361,000;
• Revaluation of provisions for the sale and purchase agreement relating to the investment property Wola Retro in Warsaw in the amount of PLN 296,000;
• Expenditures incurred on investment properties in the total amount of PLN 417,000;
• Settlements in respect of linearisation of lease revenue in the amount of PLN minus 27,000.

The foregoing amounts will be disclosed under “Profit/(Loss) on Investment Property”.

The impact of the recognition of the changes referred to hereinabove on the consolidated gross profit or loss of the Group for Q1 2023 (excluding the impact of the change in the EUR exchange rate described in section I above) totalled PLN 3,101,000 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 2023 substantial amounts having a significant impact on the financial gross profit or loss in the period, in respect of:

• A change in the amount of write-downs on the Issuer’s shares held in subsidiaries in the amount of PLN 3,241,000. The said amount will increase the Issuer’s separate financial result for Q1 2023.

The foregoing items have no effect on the consolidated financial statements of the Develia S.A. 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 Regulation of the European Parliament and of the Council (EU) No. 596/2014 of 16 April 2014 on market abuse.