Develia S.A.

Equities

DVL

PLLCCRP00017

Real Estate Development & Operations

Market Closed - Warsaw S.E. Other stock markets 11:55:48 2024-05-24 EDT			5-day change	1st Jan Change
6.69 ^PLN	+0.75%		-2.34%	+47.36%

05-23	Develia S.A. Reports Earnings Results for the First Quarter Ended March 31, 2024	CI
05-17	Develia Announces Dividend for the Year 2023, Payable on July 5, 2024 and September 6, 2024	CI

Develia s a : consolidated quarterly report q3 2020.

November 30, 2020 at 10:51 am

DEVELIA S.A. GROUP

CONSOLIDATED QUARTERLY REPORT

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE PERIOD OF 9 MONTHS, ENDED 30 September 2020

drawn up in accordance with the International Financial Reporting Standards

CONTAINING THE QUARTERLY FINANCIAL INFORMATION OF DEVELIA S.A.

(unaudited financial data)

Wrocław, 16 November 2020

Develia S.A. Group

QR for 3Q 2020

CONSOLIDATED QUARTERLY REPORT

1.	SELECTED FINANCIAL DATA .................................................................................................................................................	4
2.	INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF THE DEVELIA S.A. GROUP.............................	5
CONSOLIDATED STATEMENT OF FINANCIAL POSITION ..............................................................................................................	5
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME ....................................................................................................	7
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY ..............................................................................................................	9
CONSOLIDATED STATEMENT OF CASH FLOWS .........................................................................................................................	11
OTHER INFORMATION AND NOTES ..............................................................................................................................................	12
2.1	General information about the Develia S.A. Group..........................................................................................................................................	12
2.2	Composition of Group ......................................................................................................................................................................................	12
2.3	Changes in Structure of Group ........................................................................................................................................................................	13
2.4	Composition of Management Board of Parent Undertaking ............................................................................................................................	14
2.5	Approval of Interim Condensed Consolidated Financial Statements...............................................................................................................	15
2.6	Rules Adopted for Preparing Quarterly Report ................................................................................................................................................	15
2.7	Information on Material Estimates and Professional Judgement .....................................................................................................................	16
2.8	Significant Accounting Principles (Policies) .....................................................................................................................................................	19
2.9	New Standards and Interpretations Published But Not Effective Yet ..............................................................................................................	20
2.10	Seasonal or Cyclical Character of Develia S.A. Group's Operations...............................................................................................................	21
2.11	Investment Real Property and Non-Current Assets Classified as Held for Sale .............................................................................................	21
2.12	Information about Write-Downs of Inventory to Net Realisable Value and Reversal of Write-Downs in This Respect ...................................	25
2.13	Information about Impairment Losses in Respect of Financial Assets, Property, Plant and Equipment, Intangible Assets or Other Assets
	and Reversal of Such Losses ..........................................................................................................................................................................	26
2.14	Information about Creating, Increasing, Utilising and Reversing Provisions ...................................................................................................	27
2.15	Information about Deferred Tax Liabilities and Deferred Tax Assets ..............................................................................................................	27
2.16	Information about Significant Purchase and Sale Transactions Regarding Property, Plant and Equipment ..................................................	28
2.17	Information about Significant Liabilities on Account of the Purchase of Property, Plant and Equipment ........................................................	28
2.18	Information about Significant Settlements on Account of Litigation .................................................................................................................	28
2.19	Disclosure of Correction of Errors of Previous Periods....................................................................................................................................	29
2.20	Information about Changes in Economic Situation and Conditions for Running Business Activity Which Have Considerable Impact on Fair
	Value of Group's Financial Assets and Financial Liabilities, Regardless of Whether Such Assets and Liabilities Are Recognised at Fair
	Value or at Adjusted Purchase Price (Depreciated Cost) ................................................................................................................................	29
2.21	Information about Failure to Repay Loan or Borrowing or Infringement of Material Provisions of Loan or Borrowing Agreement With Regard
	to Which No Corrective Actions Were Taken by the End of the Reporting Period ..........................................................................................	29
2.22	Information on Single or Many Transactions Concluded by Issuer or Its Subsidiary Undertaking with Related Entities (If Made on Terms
	Other Than at Arm's Length)............................................................................................................................................................................	29
2.23	Transactions with Related Undertakings..........................................................................................................................................................	30
2.24	Information about Change in the Way (Method) of Determining Fair Value for Financial Instruments Measured at Fair Value .....................	31
2.25	Information about Change in Classification of Financial Assets Resulting From Change in Purpose or Utilisation of Such Assets...............	31
2.26	Financial Liabilities ...........................................................................................................................................................................................	31
2.27	Information Concerning Paid Out (or Declared) Dividend, in Total and Per Share, in Breakdown by Ordinary and Preference Shares........	39
2.28	Effects of Announcement of COVID-19 Epidemic on Group's Current Operations .........................................................................................	39
2.29	Events Occurred After 30 September 2020, Not Disclosed in These Statements, Which Could Have Had Material Bearing on Future
	Financial Results of Develia Group ..................................................................................................................................................................	39
2.30	Information on Changes in Contingent Liabilities or Contingent Assets After the End of Last Accounting Year.............................................	42
2.31	Other Information Deemed by Group as Relevant for Assessment of Its Personnel, Assets, Financial and Profit/Loss Standing and
	Changes Thereof and Information Relevant for Feasibility of Fulfilling Its Obligations....................................................................................	43
2.32	Revenue and Profit-Loss Attributable to Respective Operating Segments .....................................................................................................	43
3.	INTERIM CONDENSED FINANCIAL STATEMENTS OF DEVELIA S.A. ...............................................................................	46
STATEMENT OF FINANCIAL POSITION .........................................................................................................................................	46
STATEMENT OF COMPREHENSIVE INCOME ...............................................................................................................................	47
STATEMENT OF CHANGES IN EQUITY..........................................................................................................................................	49
STATEMENT OF CASH FLOWS.......................................................................................................................................................	51
OTHER INFORMATION AND NOTES ..............................................................................................................................................	52
3.1	General Information about Issuer.....................................................................................................................................................................	52
3.2	Rules Adopted for Preparing Quarterly Report ................................................................................................................................................	52
3.3	Approval of Interim Condensed Financial Statements .....................................................................................................................................	53
3.4	Information on Material Estimates and Professional Judgement .....................................................................................................................	53
3.5	Significant Accounting Principles (Policies) .....................................................................................................................................................	55
3.6	New Standards and Interpretations Published But Not Effective Yet ..............................................................................................................	56

Develia S.A. Group

QR for 3Q 2020

CONSOLIDATED QUARTERLY REPORT

3.7	Seasonal or Cyclical Character of Issuer's Operations....................................................................................................................................	57
3.8	Information about Write-Downs of Inventory to Net Realisable Value and Reversal of Write-Downs in This Respect ...................................	57

3.9 Information about Write-Downs Resulting from Impairment Loss of Financial Assets, Property, Plant and Equipment, Intangible Assets or

	Other Assets and Reversal of Such Write-Downs ...........................................................................................................................................	57
3.10	Information about Creating, Increasing, Utilising and Reversing Provisions ...................................................................................................	58
3.11	Information about Deferred Tax Liabilities and Deferred Tax Assets ..............................................................................................................	58
3.12	Information about Significant Purchase and Sale Transactions Regarding Property, Plant and Equipment ..................................................	59
3.13	Information about Significant Liabilities on Account of the Purchase of Property, Plant and Equipment ........................................................	59
3.14	Information about Significant Settlements on Account of Litigation .................................................................................................................	59
3.15	Disclosure of Correction of Errors of Previous Periods....................................................................................................................................	59
3.16	Information about Changes in Economic Situation and Conditions for Running Business Activity Which Have Considerable Impact on Fair
	Value of Issuer's Financial Assets and Financial Liabilities, Regardless of Whether Such Assets and Liabilities Are Recogised at Fair Value
	or at Adjusted Purchase Price (Depreciated Cost) ..........................................................................................................................................	59
3.17	Information about Failure to Repay Loan or Borrowing or Infringement of Material Provisions of Loan or Borrowing Agreement With Regard
	to Which No Corrective Actions Were Taken by the End of the Reporting Period ..........................................................................................	59
3.18	Information on Single or Many Transactions Concluded by Issuer or Its Subsidiary Undertaking with Related Entities (If Made on Terms
	Other Than at Arm's Length)............................................................................................................................................................................	60
3.19	Transactions of Develia S.A. with Related Entities ..........................................................................................................................................	60
3.20	Information about Change in the Way (Method) of Determining Fair Value for Financial Instruments Measured at Fair Value .....................	64
3.21	Information about Change in Classification of Financial Assets Resulting From Change in Purpose or Utilisation of Such Assets...............	64
3.22	Financial Liabilities ...........................................................................................................................................................................................	64
3.23	Information Concerning Paid Out (or Declared) Dividend, in Total and Per Share, in Breakdown by Ordinary and Preference Shares........	68
3.24	Events Subsequent to 30 September 2020, Not Disclosed in These Statements, Which Could Have Material Bearing on Future Financial
	Results of Issuer...............................................................................................................................................................................................	68
3.25	Information on Changes in Contingent Liabilities or Contingent Assets After the End of Last Accounting Year.............................................	68
3.26	Other Information Deemed by Issuer as Relevant for Assessment of Its Personnel, Assets, Financial and Profit/Loss Standing and
	Changes Thereof and Information Relevant for Feasibility of Fulfilling Its Obligations....................................................................................	69
3.27	Revenue and Profit-Loss Attributable to Respective Operating Segments .....................................................................................................	69
4.	MANAGEMENT BOARD'S COMMENTS ON ACTIVITY OF ISSUER AND ITS GROUP ......................................................	71
4.1	Main Achievements and Failures of Develia S.A. Group .................................................................................................................................	71
4.2	Description of Factors and Events, Particularly Non-typical Ones, Which Have Significant Impact on Achieved Financial Results ..............	78

4.3 Management Board's Opinion Regarding Feasibility of Meeting Earlier Published Financial Forecasts for Given Year, in View of Results

Presented in This Quarterly Report as Compared to Forecast Results...........................................................................................................	78
4.4 Ownership Structure of Issuer's Qualifying Holding.........................................................................................................................................	78

4.5 Issuer's Shares or Rights (Options) Thereto Held by Persons Responsible for Management and Supervision of Issuer as at Date of

Release of Q3 2020 Report, Including Changes in Number of Shares or Rights Thereto Owned by Such Persons in Period Following
Sumission of Previous Quarterly Report ..........................................................................................................................................................	79
4.6 Information about Proceedings Before Courts, Relevant Arbitration Authority or Public Administration Authority..........................................	80

4.7 Information on Single or Many Transactions Concluded by Issuer or Its Subsidiary Undertaking with Related Entities (If Made on Terms

Other Than at Arm's Length)............................................................................................................................................................................	80
4.8 Information about Loan or Borrowing Surety or Guarantee Granted by ISSUER or Its Subsidiary Undertaking ............................................	80

4.9 Other Information Deemed by Group as Relevant for Assessment of Its Personnel, Assets, Financial and Profit/Loss Standing and

Changes Thereof and Information Relevant for Feasibility of Fulfilling Its Obligations....................................................................................	80
4.10 Factors Which in Issuer's Opinion May Affect Its Performance at Least in Perspective of Following Quarter ...............................................	80

Develia S.A. Group

QR for 3Q 2020

CONSOLIDATED QUARTERLY REPORT

1. SELECTED FINANCIAL DATA

Data concerning interim condensed consolidated financial statements of Develia S.A. Group

PLN'000	EUR'000
30 September 2020 31 December 2019	30 September 2020 31 December 2019

Non-currentassets

Current assets

Non-currentassets classified as held for sale
IV. Total assets

Equity

VI.	Equity attributable to shareholders of the parent
VII.	Minority interest
VIII.	Non-current liabilities
IX.	Current liabilities

Liabilities arising from non-current assets classified as held for sale

XI.	Book value of equity attributable to shareholders of the parent,
per share (PLN/EUR)

1,268,067	1,234,709	280,124	289,940
1,735,688	1,562,934	383,425	367,015
-	446,282	-	104,798
3,003,755	3,243,925	663,549	761,753
1,479,567	1,492,111	326,846	350,384
1,479,567	1,492,111	326,846	350,384
-	-	-	-
659,513	1,028,223	145,691	241,452
864,675	706,818	191,012	165,978
-	16,773	-	3,939
3.31	3.33	0.73	0.78

		Period of 9	Period of 9	Period of 9	Period of 9
		months ended	months ended	months ended	months ended
		30 September	30 September	30 September	30 September
		2020	2019	2020	2019
XII.	Sales revenue	318,461	714,182	71,693	165,757
XIII.	Gross profit on sales	116,194	274,869	26,158	63,795
XIV.	Net profit	23,037	158,566	5,186	36,802
XV.	Net profit attributable to shareholders of the parent	23,037	158,566	5,186	36,802
XVI.	Net profit attributable to minority interest	-	-	-	-
XVII.	Basic profit per share (in PLN/EUR) attributable to equity	0.05	0.35	0.01	0.08
holders of the parent

Data concerning interim condensed financial statements of Develia S.A.

		PLN'000	EUR'000
		30 September 2020	31 December 2019	30 September	31 December 2019
		2020

XVIII.	Total assets	2,009,682	1,728,538	443,952	405,903
XIX.	Equity	1,131,070	948,279	249,861	222,679


		Period of 9	Period of 9	Period of 9	Period of 9
		months ended	months ended	months ended	months ended
		30 September	30 September	30 September	30 September
		2020	2019	2020	2019
XX.	Net profit(loss)	227,547	145,025	51,226	33,659

Selected financial data was converted to EUR acc. to the following principles:

financial data concerning selected items of assets and liabilities was calculated using the average EUR/PLN exchange rate quoted by the National Bank of Poland and effective as at the balance-sheet date. As at 30 September 2020, it stood at EUR/PLN 4.5268, and at the balance-sheet date of 31 December 2019 at EUR/PLN 4.2585.
financial data concerning selected items of the statement of comprehensive income for the three quarters of 2020 and the three quarters of 2019 was calculated using the EUR/PLN rate which is an arithmetic mean of average exchange rates quoted by the National Bank of Poland and effective on the last day of each month in the accounting period, i.e. EUR/PLN 4.4420 and EUR/PLN 4.3086 respectively.

Develia S.A. Group

QR for 3Q 2020

CONSOLIDATED QUARTERLY REPORT

2. INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF THE DEVELIA S.A. GROUP CONSOLIDATED STATEMENT OF FINANCIAL POSITION

		Note	30 September 2020	31 December 2019

Assets
A.	Non-current assets		1,268,067	1,234,709

1.	Intangible assets		376	334
2.	Property, plant and equipment	2.16	5,614	5,897
3.	Non-current receivables		8,969	8,699
4.	Land classified as fixed assets	2.12	86,866	86,603
5.	Investment property	2.11	1,126,774	1,096,679
6.	Non-current prepayments and accrued income		601	1,089
7.	Deferred tax assets	2.15	38,867	35,408
B.	Current assets		1,735,688	1,562,934

1.	Inventory	2.12	1,256,178	1,062,028
2.	Trade and other receivables	2.13	29,335	123,356
3.	Income tax receivables		5,271	8,296
4.	Current financial assets		60,203	25,815
5.	Cash and Cash Equivalents		380,484	340,890
6.	Current prepayments and accrued income		4,217	2,549

C.	Non-current assets classified as held for sale	2.11	-	446,282

Total assets		3,003,755	3,243,925


Equity and liabilities
A.	Equity		1,479,567	1,492,111

I.	Equity attributable to shareholders of the parent		1,479,567	1,492,111
1.	Share capital		447,558	447,558
2.	Other capital		1,008,972	927,171
3.	Net profit/(loss)		23,037	117,382
II.	Minority interest		-	-

B.	Non-current liabilities		659,513	1,028,223
1.	Non-current liabilities on account of loans and bonds	2.26	577,368	898,717
2.	Non-current lease liabilities		18,979	18,769
3.	Provisions	2.14	3,116	5,319
4.	Deferred tax liability	2.15	60,050	105,418
C.	Current liabilities		864,675	706,818

1.	Current liabilities on account of loans and bonds	2.26	148,531	128,727
2.	Current lease liabilities		42,813	41,512
3.	Current trade and other payables		156,534	127,117
4.	Income tax payables		48,894	39,319
5.	Provisions	2.14	9,466	8,831
6.	Accruals and deferred income		458,437	361,312

D.	Liabilities arising from non-current assets classified as held for sale		-	16,773

Total equity and liabilities		3,003,755	3,243,925

Develia S.A. Group

QR for 3Q 2020

CONSOLIDATED QUARTERLY REPORT

	30 September 2020	31 December 2019

Book value of equity (PLN'000)	1,479,567	1,492,111
Book value of equity attributable to shareholders of the parent, per share (in PLN'000)	1,479,567	1,492,111
Number of registered shares (pcs)	447,558,311	447,558,311
Book value of equity attributable to shareholders of the parent, per share (PLN)	3.31	3.33

Develia S.A. Group

QR for 3Q 2020

CONSOLIDATED QUARTERLY REPORT

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

	Q3 2020	3 Quarters of	Q3 2019	3 Quarters of
	2020	2019
	period	period
	cumulatively	cumulatively
	from 01/07/2020	from 01/07/2019
	from 01/01/2020	from 01/01/2019
	to 30/09/2020	to 30/09/2019
	to 30/09/2020	to 30/09/2019


Operating activity

Sales revenue	98,382	318,461	82,449	714,182

Revenue from sales of services	21,643	65,876	31,816	108,733
Revenue from sales of goods and products	76,739	252,585	50,633	605,449

Cost of sales	(73,753)	(202,267)	(45,955)	(439,313)

Pre-tax profit/(loss) on sales	24,629	116,194	36,494	274,869

Gain/(loss) on disposal of non-financial fixed assets	(6)	25	190	205
Profit /(loss) on investment property	10,194	(4,932)	35,439	(9,179)
Write-downs of Inventories	-	-	-	(363)
Selling and distribution cost	(3,172)	(10,040)	(3,013)	(11,859)
General administrative expenses	(4,826)	(18,991)	(7,348)	(23,916)
Other operating income	1,421	3,744	371	2,099
Other operating expenses	(1,850)	(2,820)	(1,723)	(3,694)

Operating profit/(loss)	26,390	83,180	60,410	228,162

Financial income	143	2,139	1,609	4,016
Financial expenses	(9,381)	(52,808)	(21,099)	(33,115)

Pre-tax profit/(loss)	17,152	32,511	40,920	199,063

Income tax (tax expense)	(2,932)	(9,474)	(7,781)	(40,497)

Net profit/(loss)	14,220	23,037	33,139	158,566

Other comprehensive income subject to reclassification to profit(loss) in subsequent reporting periods

Cash flow hedges

Income tax relating to other components of comprehensive income

(25)	11,327	(942)	(8,436)
5	(2,152)	507	1,759

Other comprehensive income (net)	(20)	9,175	(435)	(6,677)


Total comprehensive income	14,200	32,212	32,704	151,889

Develia S.A. Group

QR for 3Q 2020

CONSOLIDATED QUARTERLY REPORT

	Q3 2020	3 Quarters of	Q3 2019	3 Quarters of
	2020	2019
	period	period
	cumulatively	cumulatively
	from 01/07/2020	from 01/07/2019
	from 01/01/2020	from 01/01/2019
	to 30/09/2020	to 30/09/2019
	to 30/09/2020	to 30/09/2019


Net profit/(loss) attributable to:
Equity holders of the parent	14,220	23,037	33,139	158,566
Minority interest	-	-	-	-

	14,220	23,037	33,139	158,566


Comprehensive income attributable to:
Equity holders of the parent	14,200	32,212	32,704	151,889
Minority interest	-	-	-	-

	14,200	32,212	32,704	151,889

Net profit/(loss) per share attributable to equity holders of the parent (in PLN) - basic

Net profit/(loss) per share attributable to equity holders of the parent (in PLN) - diluted

0.03	0.05	0.07	0.35
0.03	0.05	0.07	0.35

DEVELIA S.A. GROUP

QR for 3Q 2020

CONSOLIDATED QUARTERLY REPORT

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

		Other capital		Total capital

		Supplementary
	Share capital		Net profit/(loss)	attributable to	Minority interest	Total equity
	capital, reserve
	Other funds	shareholders of
		funds and
				the parent
		retained earnings


As at 01 January 2020	447,558	932,703	(5,532)	117,382	1,492,111	-	1,492,111

Net profit/(loss) for the period of 9 months ended 30 September 2020

Other comprehensive income for the period of 9 months ended 30 September 2020

-	-	-	23,037	23,037	-	23,037
-	-	9,175	-	9,175	-	9,175

Other comprehensive income for the period of 9 months	-	-	9,175	23,037	32,212	-	32,212
ended 30 September 2020


Transfer of profit for the previous period to undistributed profit	-	117,382	-	(117,382)	-	-	-
Allocated to the payment of dividend	-	(44,756)	-	-	(44,756)	-	(44,756)

As at 30 September 2020	447,558	1,005,329	3,643	23,037	1,479,567	-	1,479,567

DEVELIA S.A. GROUP

QR for 3Q 2020

CONSOLIDATED QUARTERLY REPORT

		Other capital		Total capital

		Supplementary
	Share capital		Net profit/(loss)	attributable to	Minority interest	Total equity
	capital, reserve
	Other funds	shareholders of
		funds and
				the parent
		retained earnings


As at 01 January 2019	447,558	893,164	(3,303)	160,380	1,497,799	-	1,497,799

Net profit/(loss) for 2019	-	-	-	117,382	117,382	-	117,382
Other comprehensive income for 2019	-	-	(2,229)	-	(2,229)	-	(2,229)

Total comprehensive income for 2019	-	-	(2,229)	117,382	115,153	-	115,153

Transfer of profit for the previous period to undistributed profit	-	160,380	-	(160,380)	-	-	-
Payment of dividend	-	(120,841)	-	-	(120,841)	-	(120,841)

As at 31 December 2019	447,558	932,703	(5,532)	117,382	1,492,111	-	1,492,111


		Other capital		Total capital

		Supplementary
	Share capital		Net profit/(loss)	attributable to	Minority interest	Total equity
	capital, reserve
	Other funds	shareholders of
		funds and
				the parent
		retained earnings


As at 01 January 2019	447,558	893,164	(3,303)	160,380	1,497,799	-	1,497,799

Net profit/(loss) for the period of 9 months ended 30 September 2019

Other comprehensive income for the period of 9 months ended 30 September 2019

-	-	-	158,566	158,566	-	158,566
-	-	(6,677)	-	(6,677)	-	(6,677)

Other comprehensive income for the period of 9 months	-	-	(6,677)	158,566	151,889	-	151,889
ended 30 September 2019


Transfer of profit for the previous period to undistributed profit	-	160,380	-	(160,380)	-	-	-

Allocated to the payment of dividend	-	(120,841)	-	-	(120,841)	-	(120,841)

As at 30 September 2019	447,558	932,703	(9,980)	158,566	1,528,847	-	1,528,847

Develia S.A. Group

QR for 3Q 2020

CONSOLIDATED QUARTERLY REPORT

CONSOLIDATED STATEMENT OF CASH FLOWS

			Period of 9 months	Period of 9 months
		Note	ended	ended
			30 September 2020	30 September 2019

A.	Cash flows from operating activities
I.	Pre-tax profit/(loss)		32,511	199,063

II.	Total adjustments		(22,941)	(151,394)
1.	Depreciation and amortisation		1,495	1,073
2.	Foreign exchange gains/(losses)		20,331	3,481
3.	Interest and profit sharing (dividends)		26,178	33,284
4.	Profit (loss) on investing activities		-	(19,342)
5.	Profit(loss) on investment property		(1,437)	6,063
6.	Change in provisions		(6,001)	7,359
7.	Change in inventories		(193,442)	85,805
8.	Change in receivables		93,751	(4,959)
9.	Change in current liabilities except for loans and bonds	31.1	(13,753)	(19,523)
10.	Change in accruals and deferrals		95,945	(256,321)
11.	Income tax paid		(47,853)	(40,741)
12.	Other adjustments	31.2	1,845	52,427

III.	Net cash flow from operating activities (l+ll)		9,570	47,669
B.	Cash flows from investing activities
I.	Cash inflows		436,071	482,892
1.	Sale of intangible assets and property, plant and equipment		-	370
2.	Disposal of investment in property		436,071	482,522
II.	Outflows		(67,433)	(78,416)
1.	Acquisition of intangible assets and property, plant and equipment		(477)	(1,069)
2.	Investment in property		(31,968)	(77,347)
3.	Cash used on financial assets		(34,988)	-

III.	Net cash flow from investing activities (l+ll)		368,638	404,476
C.	Cash flows from financing activities
I.	Cash inflows		5,189	140,327
1.	Loans and borrowings	26.4	5,189	80,327
2.	Issue of debt securities	26.3	-	60,000
II.	Outflows		(343,803)	(437,849)
1.	Repayment of loans and borrowings	26.4	(199,246)	(234,846)
2.	Redemption of debt securities	26.3	(118,000)	(50,000)
3.	Payment of liabilities arising from finance lease agreements		(658)	(238)
4.	Interest		(25,899)	(31,924)
5.	Dividends paid to equity holders of the parent		-	(120,841)

III.	Net cash flows from financing activities (l+ll)		(338,614)	(297,522)

D.	Total net cash flows, (A.III+B.III+C.III)		39,594	154,623

E.	Change in cash flows in the Statement of Financial Position		39,594	154,623

F.	Cash and cash equivalents at the beginning of the period		340,890	467,698

G.	Cash and cash equivalents at the end of the period, including:	(F+D)	380,484	622,321

	- restricted cash		20	20

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OTHER INFORMATION AND NOTES

2.1 General information about the Develia S.A. Group

The Develia S.A. Group ("the Group", "the Develia Group") comprises Develia S.A. (formerly known as LC Corp S.A.) and its subsidiaries. The composition of the Group is presented in item 2.2.

Develia S.A. (the "Parent Undertaking", the "Company", "Issuer" formerly known as LC Corp S.A.) was established by the Notarial Deed dated 3 March 2006. The Company's registered office is situated in Wrocław, Poland, at ul. Powstańców Śląskich 2-4. The Parent Undertaking has been entered into the register of entrepreneurs of the National Court Register maintained by the District Court for Wrocław-Fabryczna in Wrocław, the 4th Commercial Division of the National Court Register, under KRS No. 0000253077.

The Company has been assigned statistical identification number REGON 020246398.

The Parent Undertaking and the Group's subsidiaries were established for an indefinite period. The Parent Undertaking's primary activity is:

PKD 6420Z Activities of financial holding companies
PKD 6820Z Rental and management of own or leased real estate
PKD 4110Z Completion of construction projects related to putting up buildings
PKD 6810Z Buying and selling of own real estate
PKD 4120Z Construction works related to the completion of residential and non-residential buildings

There is no parent undertaking of Develia S.A. as at the date hereof nor was there any such entity throughout the period covered by these financial statements.

Interim Condensed Consolidated Financial Statements of the Develia Group cover the period of 9 months ended 30 September 2020. The detailed description of the component parts of the consolidated financial statements is included in item 2.6.

2.2 Composition of Group

As at 30 September 2020 and 31 December 2019, the Develia S.A. Group comprised the following subsidiaries of Develia S.A.:

		Effective share of Develia S.A.
Company name	Registered	30 September 2020	31 December 2019
office	Share in Capital	Share in Capital


Arkady Wrocławskie S.A.	Wrocław	100%	100%
Sky Tower S.A.	Wrocław	100%	100%
Warszawa Przyokopowa Sp. z o.o.	Wrocław	100%	100%
Kraków Zielony Złocień Sp. z o.o.	Wrocław	100% (directly and indirectly)	100% (directly and indirectly)
LC Corp Invest I Sp. z o.o.	Wrocław	100% (directly and indirectly)	100% (directly and indirectly)
LC Corp Invest II Sp. z o.o.	Wrocław	100%	100%
LC Corp Invest III Sp. z o.o.	Wrocław	100%	100%
LC Corp Invest VII Sp. z o.o.	Wrocław	100%	100%

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LC Corp Invest VIII Sp. z o.o.	Wrocław	100%	100%
LC Corp Invest IX Sp. z o.o.	Wrocław	100%	100%
LC Corp Invest X Sp. z o.o.	Wrocław	100%	100%
LC Corp Invest XI Sp. z o.o.	Wrocław	100%	100%
LC Corp Invest XII Sp. z o.o.	Wrocław	100%	100%
LC Corp Invest XV Sp. z o.o.	Wrocław	100%	100%
LC Corp Invest XVI Sp. z o.o.	Wrocław	100%	100%
LC Corp Invest XVII Sp. z o.o.	Wrocław	100%	100%
LC Corp Invest XIX Sp. z o.o. in liquidation	Wrocław	-	100%
LC Corp Invest XXI Sp. z o.o.	Wrocław	100%	100%
LC Corp Invest XXII Sp. z o.o. in liquidation	Wrocław	100%	100%
LC Corp Invest XXIII Sp. z o.o. in liquidation	Wrocław	-	100%
LC Corp Invest XXIV Sp. z o.o.	Wrocław	100%	100%
LC Corp Invest XV Sp. z o.o. Projekt 2 Sp. k.	Wrocław	100% (indirectly)	100% (indirectly)
LC Corp Invest XV Sp. z o.o. Projekt 4 Sp. k.	Wrocław	100% (indirectly)	100% (indirectly)
LC Corp Invest XV Sp. z o.o. Projekt 6 Sp. k.	Wrocław	100% (indirectly)	100% (indirectly)
LC Corp Invest XV Sp. z o.o. Projekt 7 Sp. k.	Wrocław	100% (indirectly)	100% (indirectly)
LC Corp Invest XV Sp. z o.o. Projekt 8 Sp. k.	Wrocław	100% (indirectly)	100% (indirectly)
LC Corp Invest XV Sp. z o.o. Projekt 9 Sp. k.	Wrocław	100% (indirectly)	100% (indirectly)
LC Corp Invest XV Sp. z o.o. Projekt 10 Sp. k.	Wrocław	100% (indirectly)	100% (indirectly)
LC Corp Invest XV Sp. z o.o. Projekt 11 Sp. k.	Wrocław	100% (indirectly)	100% (indirectly)
LC Corp Invest XVII Sp. z o.o. Projekt 20 Sp. k.	Wrocław	100% (directly and indirectly)	100% (directly and indirectly)
LC Corp Invest XVII Sp. z o.o. Projekt 21 Sp. k.	Wrocław	100% (indirectly)	100% (indirectly)
LC Corp Invest XVII Sp. z o.o. Projekt 22 Sp. k.	Wrocław	100% (directly and indirectly)	100% (directly and indirectly)
LC Corp Invest XV Sp. z o.o. Investments S.K.A.	Wrocław	100% (directly and indirectly)	100% (directly and indirectly)
Develia Invest Sp. z o.o.	Wrocław	100%	100%
LC Corp Service S.A.	Wrocław	100% (directly and indirectly)	100% (directly and indirectly)

As at 30 September 2020 and as at 31 December 2019, the share in the total vote held by the Parent Undertaking in its subsidiaries was equal to the share of the Parent Undertaking in the capitals of these entities.

2.3 Changes in Structure of Group

Acquisition and Sale of Subsidiaries

Apart from intra-Group transactions, no other transaction consisting in the acquisition or sale of business units was completed by the companies belonging to the Group in the period of 9 months ended 30 September 2020.

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Newly Established Entities and Changes within Group:

The following changes occurred in the Group in the period of 9 months ended 30 September 2020:

On 13 June 2019, a resolution on initiating the liquidation of LC Corp Invest XXIII Sp. z o.o. was carried, and on 29 March 2020, resolution on the completion of liquidation was adopted. Consequently, the company was removed from the National Court Register (KRS) on 13 May 2020.
On 13 June 2019, a resolution on initiating the liquidation of LC Corp Invest XIX Sp. z o.o. was carried, and on 29 March 2020, resolution on the completion of liquidation was adopted. Consequently, the company was removed from the National Court Register (KRS) on 14 July 2020.
On 11 May 2020, a resolution on initiating the liquidation of LC Corp Invest XXII Sp. z o.o. was carried.
On 30 June 2020, LC Corp Service S.A. acquired from Kraków Zielony Złocień Sp. z o.o. all the rights and obligations of the limited partner in LC Corp Invest XV Sp. z o.o. Projekt 9 Sp.k.
On 31 August 2020, the Ordinary General Meeting of Develia S.A. adopted a resolution on the merger pursuant to Article 492(1)(1) of the Commercial Partnerships and Companies Code between Develia S.A. and LC Corp Invest
XXI Sp. z o.o., based in Wrocław ("the Acquired Company 1") and LC Corp Invest XXIV Sp. z o.o., based in Wrocław, ("the Acquired Company 2") through the transfer to the Acquiring Company - as the sole shareholder in the Acquired Company 1 and 2 - of the entire assets of both Acquired Companies (merger through take-over). Relevant resolutions were carried on the same day by the Acquired Company 1 and the Acquired Company 2. The merger was registered on 1 October 2020 by the District Court for Wrocław-Fabryczna in Wrocław, the 6th
Commercial Division of the National Court Register .
On 28 October 2020, the General Meeting of LC Corp Service S.A. and shareholders of LC Corp Invest XV Sp. z o.o. Projekt 9 Sp.k. passed resolutions on the merger pursuant to Article 492(1) of the Commercial Partnerships and Companies Code between LC Corp Service S.A., the acquiring company, and LC Corp Invest XV Sp. z o.o. Projekt 9 Sp.k., the acquired company, through the transfer of the entire assets of the acquired company to the acquiring company. As a result of the merger, the share capital of the acquiring company was increased from PLN 630,000.00 to PLN 631,053.00 solely in order to provide shares to the limited partner of the acquired company (LC Corp Invest XV Sp. z o.o.).

Apart from the aforementioned events, no other significant changes in the composition of the Group took place in the period from 01 January 2020 to 30 September 2020.

2.4 Composition of Management Board of Parent Undertaking

As at 01 January 2020, the Management Board of Develia S.A. was composed of the following persons:

Acting President of Management Board - Michał Hulbój
Member of Management Board - Mirosław Kujawski
Member of Management Board - Tomasz Wróbel
Member of Management Board, CFO - Paweł Ruszczak

On 26 February 2020, the Company's Supervisory Board, acting pursuant to Article 383(1) of the Commercial Partnerships and Companies Code, adopted a resolution under which the term of Mr Michał Hulbój's delegation to act as the President of the Management Board was extended for a period from 29 February 2020 to 29 May 2020.

On 14 May 2020, the Supervisory Board of the Company adopted a resolution under which Management Board President's duties would be entrusted for a temporary period to Mr Paweł Ruszczak, previously serving as Member of Management Board and CFO. He took the new role as of 30 May 2020, acting in his new capacity until the appointment of the President of Management Board.

As at 30 September 2020, the Management Board of Develia S.A. was composed of the following persons:

Acting President of Management Board - Paweł Ruszczak
Member of Management Board - Mirosław Kujawski
Member of Management Board - Tomasz Wróbel

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2.5 Approval of Interim Condensed Consolidated Financial Statements

These Interim Condensed Consolidated Financial Statements of the Group concerning the period of 9 months ended 30 September 2020 was approved by the Management Board on 16 November 2020.

2.6 Rules Adopted for Preparing Quarterly Report

These Interim Condensed Consolidated Financial Statements of the Develia Group are comprised of:

Consolidated Statement of Financial Position as at 30 September 2020 and comparable financial data as at 31 December 2019;
Consolidated Statement of Comprehensive Income for the three quarters of 2020, i.e. for the period of 9 months, cumulatively from 01 January 2020 to 30 September 2020, as well as comparable data for a corresponding period of the previous year, i.e. from 01 January 2019 to 30 September 2019;
Consolidated Statement of Cash Flows for the three quarters of 2020, i.e. for the period of 9 months, cumulatively from 01 January 2020 to 30 September 2020, as well as comparable data for a corresponding period of the previous year, i.e. from 01 January 2019 to 30 September 2019;
Consolidated Statement of Changes in Equity as at 30 September 2020 and comparable data as at 30 September 2019 and as at 31 December 2019;
Notes to the Consolidated Financial Statements.

Notes to financial statements and other information defined in Section 66 of the Regulation of the Minister of Finance dated 29 March 2018 on Current and Periodic Information Published by Issuers of Securities and on Conditions for Regarding Information Required by Law of Non-Member State as Equivalent, representing an element of this Consolidated Quarterly Report Q3 2020, are included in section 4.

These Interim Condensed Consolidated Financial Statements of the Develia Group and the separate condensed financial statements of Develia S.A. were prepared in accordance with the International Financial Reporting Standards ("IFRS") adopted by the EU, in particular with the International Accounting Standard No. 34.

As at the date of the approval of these financial statements for publication, on account of the ongoing process of introducing IFRS in the EU and the business activity conducted by the Group, the International Financial Reporting Standards, in terms of accounting principles adopted by the Group, vary from IFRS already approved by the EU.

IFRS comprise standards and interpretations accepted by the International Accounting Standard Board ("IASB") and the International Financial Reporting Interpretations Committee ("IFRIC").

These Interim Condensed Consolidated Financial Statements were prepared using the historical cost method, except for investment property which is measured at fair value.

The Interim Condensed Consolidated Financial Statements are presented in thousand Polish Zlotys ("PLN"), and all values included in the tables and descriptions, if not indicated otherwise, are given in PLN'000.

The Interim Condensed Consolidated Financial Statements were prepared on the assumption that the Group companies would continue as a going concern in the foreseeable future. As at the day of the approval of these Financial Statements, no circumstances were identified implying any threats to the continuation of the Group companies' business activity.

The Interim Condensed Consolidated Financial Statements do not contain all information and disclosures required for annual consolidated financial statements and they must be read together with the Group's consolidated financial statements for the year ended 31 December 2019, which was published on 12 March 2020.

Information on the accounting principles adopted by the Group was presented in the annual consolidated financial statements of the Develia Group for the year ended 31 December 2019, published on 12 March 2020.

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2.7 Information on Material Estimates and Professional Judgement

The Management Board of the Parent Undertaking used their best knowledge of the applied standards and interpretations, and also the methods and principles of the valuation of particular items of the enclosed condensed consolidated financial statements. Preparing the financial statements in accordance with IFRS required the Company's Management Board to make some estimates and assumptions, which are reflected herein. The actual results may vary from these estimates. The financial data for the period of 9 months ended 30 September 2020 presented herein was not subject to auditor's examination.

Professional Judgement

In the process of applying the accounting principles (policies) to the issues specified hereinbelow, the professional judgement of the management was, apart from the accounting estimates, of the greatest importance.

Determination of Moment When, Upon Sale of Residential and Retail Premises, Risk Is Transferred to Client

The moment of transferring the control to the client determines when revenues from the sales of residential and retail premises can be recognised.

Upon the sale of residential and retail premises, the control is transferred to the client when each and every of the following conditions are fulfilled:

obtaining the occupancy permit for the buildings;
payment of 100% of the value of the premises, based on the developer agreement or preliminary agreement;
acceptance of the premises by the client, evidenced by the delivery and acceptance protocol;
signing of the developer agreement or notarial deed transferring the title.

In the case of the financing of part of the price by the state in accordance with the Act of 27 September 2013 on State Aid in the Purchase of the First Flat by Young People (MDM), the conditions set out in item (ii) are also met when a bank financing the client confirms the reservation of funds (the last instalment of the payment) for this purpose and when the developer agreement contains the relevant provision.

Land Classified As Fixed Assets

As at 30 September 2020, Land Classified as Fixed Assets concerned the land located in Malin, Wisznia Mała municipality in the Lower Silesian Voivodeship.

In view of the entry into force on 30 April 2016 of the provisions amending the Act of 11 April 2003 on the Shaping of the Agricultural System (Journal of Laws of 2012, item 803, of 2016, item 585, 1159) and the introduced restrictions on acquisition of agricultural property, an analysis was made to check the impact of the provisions of this act on the restrictions on the possibility of implementation of investment opportunities on the above-mentioned land.

This regulation introduced restrictions on the acquisition of agricultural real property with an area of more than 0.3 ha and not covered by the current spatial development plan in such a manner that the buyer of agricultural real property of at least 1 ha may be in principle only an individual farmer - a natural person, while other entities may acquire agricultural property only with the agreement of the President of the Agricultural Property Agency and in the cases provided by regulations. The restrictions imposed by the act apply also to shares and stocks in companies which own agricultural property, where the Agricultural Property Agency which is the owner of the agricultural property has the right of pre-emption of shares and stocks in these companies.

The introduced restrictions have an impact on the shaping of demand and supply on the agricultural land market by changing the profile of market participants and new legal terms of the sale of agricultural property, which results in a smaller number of agricultural real property sold after 30 April 2016.

The Group is the owner of land with the total area of 169 ha, located in Malin, Wisznia Mała municipality in the Lower Silesian Voivodeship, and currently there is no spatial development plan for this property, therefore in accordance with

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Article 2(1) of the above-mentioned Act, it is "agricultural property" and is subject to the above restrictions on the possibility of trade in this property.

Due to the acquisition of land by the Group with a view to implement a development project and the designation in the Study of land use conditions and directions of Wisznia Mała municipality of this property for residential areas, the Group, as at 30 September 2020, disclosed the property in the item Land qualified as non-current assets for development projects during a period of over 2 years, in the valuation by an independent valuer drawn up before the date of entry into force of the above-mentioned Act, used also as at 31 December 2019, since despite the restrictions introduced by the Act, the Group believes that there is still a possibility to use this land in a manner consistent with its intention and the Group does not intend to dispose of this property.

Classification of Lease Agreements

The Group classifies lease according to IFRS 16.

Uncertainty of Estimates

The basic assumptions concerning the future have been discussed below as well as other key reasons for doubts occurring as at the balance sheet date and entailing a significant risk of the considerable adjustment of the book value of assets and liabilities in the following financial year.

Deferred Tax Asset

The Group recognises a deferred tax asset based on the assumption that a tax profit enabling its utilisation should be obtained in the future. Worse tax results obtained in the future could have the effect that this assumption might become groundless. Deferred income tax is presented in Note 2.15.

Fair Value of Investment Property

At the end of each quarter of an accounting year, the Group independently measures the fair value of its investment properties in EUR based on the model of investment capitalisation or maintains the valuation in EUR carried out by an independent valuer at the end of the preceding year (provided there were no significant indications to revaluation). At the end of each accounting year, the fair value of investment property is established or verified by an independent valuer. As at 30 September 2020, investment property is measured on the basis of valuations of valuers. Investment property and Non-current assets classified as held for sale are presented in Note 2.11.

Fair Value of Financial Instruments in the Form of Forward Contracts

The fair value of financial instruments in the form of forward contracts, measured at fair value through profit or loss, is determined on the last day of each quarter in a given accounting year and at the end of each accounting year on the basis of the valuation made by an institution which professionally measures such financial transactions (among others by the Bank) or on the basis of a financial model.

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Fair value of IRS and CAP financial instruments

The fair value of IRS and CAP financial instruments, covered by the cash flow hedge accounting, is determined on the last day of each quarter in a given accounting year and at the end of each accounting year on the basis of the valuation made by an institution which professionally measures such financial transactions (such as the bank).

Write-downs of Inventories

At the end of each reporting period, the Management Board verifies if there is any evidence pointing to the loss of value of its property development projects under implementation on the basis of sales reports, market research and other available evidence. Should the risk of the loss of value occur, the value of such projects is estimated employing the DCF method, which is used to establish the write-down of inventories. The DCF method is based on discounted cash flows generated within the approved investment schedules and proceeds from the sale of premises, allowing for the sale price of 1 square metre of usable floor area of flats in accordance with the current market situation. The discount rate takes account of the weighted average cost of external and own capital (WACC).

The write-downs of inventories are estimated as at 30 September 2020 and may be subject to change depending on the fluctuation of market prices of land, selling prices of flats, construction costs, project completion schedules and discount rate calculations in the future. The actual results may vary from these estimates, which were calculated on the grounds of the data available as at the reporting date. It is also related to the uncertainty regarding the proper estimation of the market conditions in the following years. Consequently, valuation allowances may change in the following financial periods. Inventories and write-down of inventories are presented in Note 2.12.

Uncertainty Associated with Tax Settlements

The regulations concerning the tax on goods and services, corporate tax and burdens associated with social insurance are subject to frequent changes. These frequent changes make no appropriate reference points, inconsistent interpretations and few established precedents that might be applicable. The binding regulations also contain uncertainties, resulting in different opinions regarding the legal interpretation of tax regulations, both among public authorities and between public authorities and companies.

Tax settlements and other areas of activity (for example customs and foreign currency issues) may be subject to inspection by bodies authorised to impose high penalties and fines, and any additional tax liabilities arising from the inspection must be paid together with high interest. Having considered these conditions, the tax risk in Poland is greater than in countries with a more mature tax system.

Consequently, amounts presented and disclosed in financial statements may change in the future as a result of a final decision of a tax audit authority.

On 15 July 2016, changes were made to the Tax Ordinance Act in order to take account of the provisions of the General Anti-Avoidance Rule (GAAR). GAAR is to prevent the creation and use of artificial legal structures created in order to avoid the payment of tax in Poland. GAAR defines the avoidance of taxation as an action made above all in order to achieve a tax advantage, contrary - under given circumstances - to the object and purpose of the provisions of the tax act. In accordance with GAAR, such an action does not result in the tax advantage, if the operation was artificial. Any occurrence of (i) unjustified separation of operations, (ii) involvement of intermediary entities despite the lack of economic justification, (iii) elements that null or compensate each other and (iv) other actions having a similar effect to the previously mentioned, may be treated as a premise of artificial operations subject to GAAR. New regulations will require a much greater degree of professional judgement in assessing the tax consequences of individual transactions.

The GAAR clause should be applied to transactions made after its entry into force and transactions that had been carried out before the entry into force of the GAAR clause, but for which benefits were or are still being gained after the date of entry of this clause into force. The implementation of these provisions will enable Polish tax audit authorities to question the legal arrangements and agreements carried out by taxable persons, such as the restructuring and reorganisation of a group, provided, however, that such arrangements and agreements are related to the above clause.

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The Group recognises and measures the assets or liabilities in respect of current and deferred income tax in compliance with the requirements of IAS 12, Income Tax on the basis of the tax profit (loss), tax base, unrelieved tax losses, unused tax exemptions and tax rates, taking into account the uncertainty associated with tax settlements.

The table below presents balance sheet figures of the above items as at 30 September 2020 and as at 31 December 2019:

	30 September 2020	31 December 2019

Deferred tax asset	38,867	35,408
Investment property measured at fair value	1,089,520	1,062,693
Non-current assets classified as held for sale and measured at fair value	-	446,282
Fair Value of Financial Instruments in the Form of Forward Contracts	(418)	239
Fair value of IRS and CAP financial instruments	(1,101)	(12,411)
Deferred tax liability	(60,050)	(105,418)
Write-down of land classified as fixed assets	(3,263)	(3,263)
Write-down of inventories	(121,271)	(124,934)

2.8 Significant Accounting Principles (Policies)

The accounting principles (policies) applied to the preparation of these consolidated financial statements are consistent with those adopted to draw up the Group's consolidated financial statements for the year ended 31 December 2019, save for the following principles. The below changes to IFRS have been applied to these consolidated financial statements as of the date of their entry into force:

Amendments to IAS 1 "Presentation of Financial Statements" and IAS 8 "Accounting Policies, Changes in Accounting Estimates and Errors" - Definition of Materiality - approved in the EU on 29 November 2019 (applicable to annual periods beginning on or after 1 January 2020);
Amendments to IFRS 3, "Business Combinations" - Definition of a Business - approved in the EU on 21 April 2020 (applicable to combinations for which the acquisition date is at the beginning of the first annual reporting period beginning on or after 1 January 2020 and to asset acquisitions that occur on or after the beginning of the aforesaid period);
Amendments to IFRS 9 "Financial Instruments", IAS 39 "Financial Instruments: Recognition and
Measurement" and IFRS 7 "Financial Instruments: Disclosures" - Interest Rate Benchmark Reform - approved in the EU on 15 January 2020 (applicable to annual periods beginning on or after 1 January 2020);
Amendments to References to the Conceptual Framework in IFRS - approved in the EU on 29 November 2019 (applicable to annual periods beginning on or after 1 January 2020).

The adoption of the standards and amendments to existing standards, as mentioned above, did not exert any considerable impact on the financial statements of the Group.

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2.9 New Standards and Interpretations Published But Not Effective Yet

New standards and amendments to the existing standards which have been already issued by the IFRIC and approved by the EU, but are not in force yet:

As at the date of the approval of these Financial Statements, the European Union did not adopt any amendment to the existing standards / new standards or interpretations issued by the International Financial Reporting Interpretations Committee ("IFRIC"), which enter into force on a later date.

New standards and amendments to the existing standards which have been already issued by the IFRIC, but which have not been approved for application within the EU yet

Currently, IFRS in the form approved by the EU do not differ significantly from regulations issued by the International Financial Reporting Interpretations Committee ("IFRIC"), except for the following new standards and amendments to standards which as at the date of the publication of these statements were not approved for application within the EU (the below entry into force dates relate to the full version of standards):

IFRS 14 "Regulatory Deferral Accounts" (applicable to annual periods beginning on or after 1 January 2016) - the European Commission decided not to initiate the process of approving this temporary standard for application within the EU before the release of the final version of IFRS 14;
IFRS 17 "Insurance Contracts", with further amendments to IFRS 17, (applicable to annual periods beginning on or after 01 January 2023);
Amendments to IAS 1 "Presentation of Financial Statements" - Classification of Liabilities as Current or Non- current (applicable to annual periods beginning on or after 1 January 2022);
Amendments to IAS 16 "Property, Plant and Equipment" - Proceeds Before Intended Use (applicable to annual periods beginning on or after 1 January 2022);
Amendments to IAS 37 "Provisions, Contingent Liabilities and Contingent Assets" - Onerous Contracts - Cost of Fulfilling a Contract (applicable to annual periods beginning on or after 1 January 2022);
Amendments to IFRS 3 "Business Combinations" - Amendments to References to the Conceptual Framework including amendments to IFRS 3 (applicable to annual periods beginning on or after 1 January 2022);
Amendments to IFRS 4 "Insurance Contracts" - the Extension of the Temporary Exemption from Applying IFRS 9 (the expiry date for the temporary exemption from IFRS 9 was extended to annual periods beginning on or after 1 January 2023);
Amendments to IFRS 10 "Consolidated Financial Statements" and IAS 28 "Investments in Associates and Joint Ventures" - Sale or Contribution of Assets between an Investor and its Associate or Joint Venture and subsequent amendments (the date of entry into force of the amendments was postponed until research works on the equity method have been completed);
Amendments to IFRS 16 "Lease"- Covid-19-Related Rent Concessions (applicable to annual periods beginning on or after 1 June 2020. Early application is permitted also for financial statements which have not been approved yet for publication on 28 May 2020. This amendment applies also to interim reports).
Amendments to miscellaneous standards "Improvements to IFRS (the 2018-2020 cycle)" - amendments made as part of the IFRS Annual Improvement Process (IFRS 1, IFRS 9, IFRS 16 and IAS 41) are designed mainly to deal with non-conformitiesand ensure the consistency of terminology (amendments to IFRS 1, IFRS 9 and IAS 41 are applicable to annual periods beginning on or after 1 January 2022. Amendments to IFRS 16 concern only an illustrative example, hence no entry into force date has been set).

The Group is in the process of verification of the impact of the above-mentioned standards on its financial situation, performance and the scope of information presented in financial statements.

According to the Group's estimates, the above-mentioned new standards and amendments to existing standards would not have had major impact on the financial statements if they had been applied by the Group at the balance-sheet date.

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Apart from regulations approved by the EU, there is also hedge accounting for a portfolio of assets and liabilities, the principles of which have not been approved for application within the EU yet.

According to the Group's estimates, the application of hedge accounting for a portfolio of assets or financial liabilities under IAS 39, "Financial Instruments: Recognition and Measurement" would not have any significant impact on the financial statements, if the standard in question had been approved for application as at the balance-sheet ate.

2.10 Seasonal or Cyclical Character of Develia S.A. Group's Operations

The operations of the Develia S.A. Group are not seasonal by nature. They are related to the investment cycles of the implemented property development projects, which is particularly noticeable in the recognition of the proceeds from the sale of residential and retail premises. In accordance with IFRS 15, such proceeds can only be recognised when practically all risks and benefits related to given premises have been transferred to the client and the revenue can be measured in a reliable manner. Consequently, the sales results in a given period depend on the value of the premises transferred to the clients in accordance with the above definition.

2.11 Investment Real Property and Non-Current Assets Classified as Held for Sale

Investment property

As at 30 September 2020, the Group's investment property includes:

retail and office centres: Arkady Wrocławskie and Sky Tower in Wrocław,
office buildings: Wola Retro in Warsaw
office buildings under preparation: Wrocław, ul. Kolejowa

			Value adjustment
			for right of
30 September 2020	Value EUR	Value PLN	perpetual usufruct	TOTAL
			to land acc. to
			IFRS 16
Investment property already constructed
Arkady Wrocławskie	48,060	217,558	12,038	229,596
Sky Tower	115,670	523,615	-	523,615
Wola Retro	73,550	332,946	3,363	336,309
Investment property in preparation				-
Wrocław, Kolejowa	n/a	32,366	4,888	37,254

				1,126,774

Develia S.A. Group

QR for 3Q 2020

CONSOLIDATED QUARTERLY REPORT

			Value adjustment
			for right of
31 December 2019	Value EUR	Value PLN	perpetual usufruct	TOTAL
			to land acc. to
			IFRS 16
Investment property already constructed
Arkady Wrocławskie	54,000	229,959	11,835	241,794
Sky Tower	120,970	515,151	-	515,151
Wola Retro	71,020	302,439	3,309	305,748
Investment property under construction
Wrocław, Kolejowa	n/a	29,098	4,888	33,986

				1,096,679

As at 30 September 2020, the fair values of investment properties: Arkady Wrocławskie and Sky Tower were established on the basis of valuation made by professional real estate valuers.

As at 30 September 2020, the fair value measurement of Wola Retro in Warsaw was made on the basis of an appraisal made by a professional real estate valuer and included expenditures incurred, increasing thus the property value as at the valuation date, compared to the value as at the balance-sheet date.

Market values of the property in question have been estimated in the income approach, using the investment method and the judgement at the Level Three, as defined in IFRS 13. Input data considered for the valuation included, among other things, investment plans, information relating to planned development including plans, descriptions and budgets, as well as environmental surveys. The income approach and the investment method are based on the assumption that the value of a property depends on the rental income that can be obtained from the property and the capitalisation rate. Income from the property is due to rental agreements and in the case of free surface with the use of market rental rates. The rate of return, known as capitalisation rate, is determined on the basis of the analysis of similar transactions on the market in a given financial year.

Valuation is expressed in the currency of the invoiced rents, i.e. in EUR and converted into PLN at the average NBP exchange rate at the date of the end of the accounting period.

The reconciliation of changes to the balance-sheet values of investment property in the period ended 30 September

2020 and the year 31 December 2019 is presented in the table below:

	Period of 9
	months ended	Year ended 31
	30 September	December 2019
	2020

At the beginning of the reporting period	1,096,679	1,929,475

Recognition and Settlement of Right of perpetual usufruct according to IFRS 16	255	36,882
Acquisition of land for the construction of investment property	-	26,028
Capital expenditure incurred	30,533	97,862
Reclassification of non-current assets classified as held for sale 1)	-	(949,318)
Revaluation of property fair value (EUR/PLN conversion)	65,316	(2,005)
Revaluation of property fair value (inter alia: due to changes in the EUR valuation of property,	(66,009)	(42,245)
finishing works and selling costs)


At the end of the reporting period	1,126,774	1,096,679

The reclassification results from the conclusion of a sales and purchase agreement for two real properties: Silesia Star in Katowice and Retro Office House in Wrocław, as well as the conclusion of the Preliminary Sales and Purchase Agreement for Wola Center in Warsaw.

Develia S.A. Group

QR for 3Q 2020

CONSOLIDATED QUARTERLY REPORT

Non-current assets classified as held for sale

As at 30 September 2020, there are no non-current assets classified as held for sale.

As at 31 December 2019, the Group's Non-current assets classified as held for sale included:

Wola Center office building in Warsaw

				Value
				adjustment for
31 December 2019	Value EUR	Value PLN	right of	Costs of real	TOTAL
perpetual	estate sale

				usufruct to land
				acc. to IFRS 16
Non-current assets classified as held for sale
Wola Center	101,900	433,941	16,773	(4,432)	446,282

						446,282

The reconciliation of changes to the balance-sheet values of Non-current Assets Classified As Held For Sale in the period ended 30 September 2020 and the year 31 December 2019 is presented in the table below:

	Period of 9
	months ended	Year ended 31
	30 September	December 2019
	2020
At the beginning of the reporting period	446,282	-

Recognition and Settlement of Right of perpetual usufruct according to IFRS 16	-	1,100
Capital expenditure incurred	-	(3,006)
Reclassification from investment real property 1)	-	949,318
Reclassification to inventory	(973)	-
Disposal of real property 2)	(447,439)	(482,522)
Revaluation of property fair value (EUR/PLN conversion)	2,130	(16,051)
Revaluation of property fair value (inter alia: due to changes in the EUR valuation of property,	-	(2,557)
finishing works and selling costs)


At the end of the reporting period	-	446,282

The reclassification results from the conclusion of a sales and purchase agreement for two real properties: Silesia Star in Katowice and Retro Office House in Wrocław, as well as the conclusion of the Preliminary Sales and Purchase Agreement for Wola Center in Warsaw.
In 2020, the sale of the "Wola Center" real property in Warsaw, in 2019, the sale of "Silesia Star" in Katowice and "Retro Office House" in Wrocław

Disposal of "Wola Center" Real Property in Warsaw

On 24 September 2019, a subsidiary wholly owned by the Company: Warszawa Przyokopowa Spółka z ograniczoną odpowiedzialnością ("WP"), acting as the seller, and a company controlled by Hines European Value Fund SCSp, based in Luxembourg, i.e. Gisla Spółka z ograniczoną odpowiedzialnością, acting as the purchaser (currently: Wola Center sp. z o.o.), entered into a Preliminary Sales and Purchase Agreement (PSPA) under a transaction concluded between companies and concerning the sale of the perpetual usufruct right to parcels of land located at 33 Przyokopowa Street in Warsaw, including the right of ownership to an office building erected on the said land, known as the "Wola Center" building, along with tangible and intangible assets related to the said real property, which are owned by WP and covered by the PSPA.

Develia S.A. Group

QR for 3Q 2020

CONSOLIDATED QUARTERLY REPORT

Entering into a final sales and purchase agreement was conditional upon the satisfaction of, among other things, the following conditions precedent:

Concurrent tax interpretations supporting a position adopted by the Parties being issued, and
All necessary approvals for the Transaction being obtained by the Parties, and
A letter - issued by the lending bank - relating to the repayment of loans taken out by WP for the construction of the building in question, and
The purchaser being given a loan decision for the partial financing of the transaction, and
The seller's title to the real property designated for disposal could not be changed adversely, and
Surety being granted by the Company to the purchaser.

The total price of the transaction was agreed by the Parties at EUR 101,900,000 (plus an applicable amount of VAT and transaction costs).

Furthermore, in accordance with the arrangements between the Parties, the Company represented to the purchaser that it stood surety for the seller and debtor, giving a guarantee that:

The seller would perform the obligations and discharge the liabilities of Warszawa Przyokopowa, acting as the seller, arising from agreements covering the subject-matter of the transaction, and
The Company would incur debts of WP arising from obligations and liabilities of WP under the final sales and purchase agreement, if the seller has ceased its operations, has gone into liquidation or has been dissolved, which circumstances were described in the surety arrangements,
The contractual penalty would be paid, should the purchaser withdraw from the agreement due to reasons attributable to the seller

On 29 January 2020, in pursuance of the preliminary agreement of 24 September 2019, an Issuer's subsidiary - Warszawa Przyokopowa sp. z o.o. entered into a final sales and purchase agreement with an entity which was not related to the Issuer, concerning the sale of the perpetual usufruct right to parcels of land located at 33 Przyokopowa Street in Warsaw, including the right of ownership to an office building erected on the said land, known as the "Wola Center" building, along with tangible and intangible assets related to the said real property for a price of EUR 101,900,000 (plus an applicable rate of VAT and transaction costs). The transaction price received was designated for the full repayment of a bank loan of EUR 45,246,208.46, taken out under an agreement concluded by Company with BNP Paribas Bank Polska S.A., with its registered office in Warsaw, for the purpose of the construction of the "Wola Center" building. The entire security provided in connection with the loan agreement and agreements hedging against foreign exchange risk and interest rate risk (hedging agreements) expired upon the said repayment.

The aforesaid property constituted assets classified under the "Rental services" segment in the consolidated financial statements of the Develia S.A. Group.

Profit /(loss) on investment property

The following table shows Profit /(Loss) on investment property disclosed in the Consolidated Statement of Comprehensive Income:

	Period of 9 months	Period of 9 months
	ended	ended
	30 September 2020	30 September 2019
Revenue from sales of real estate	436,071	-
Value of real estate sold	(436,071)	-
Changes in real estate value in EUR within the period	(50,198)	-
Change in real estate valuation in respect of altered EUR to PLN exchange rate within the period	67,446	19,263
Change in real estate valuation in respect of expenditures incurred within the period	(15,811)	(25,326)
Costs of sales transaction (net of costs relating to the repayment of financial liabilities)	-	-
Costs of sales transaction (costs relating to the repayment of financial liabilities)	-	-
Adjustment for linearisation of revenues from rental	(6,369)	(3,116)
Other	-	-

Develia S.A. Group

QR for 3Q 2020

CONSOLIDATED QUARTERLY REPORT

Total	(4,932)	(9,179)

The below table presents details relating to Profit /(Loss) on Investment Property in the period of 9 months ended 30 September 2020:

Period of 9 months ended	Arkady	Wola	Sky Tower	Wola Retro	TOTAL
30 September 2020	Wrocławskie	Center

Revenue from sales of real estate	-	436,071	-	-	436,071
Value of real estate sold	-	(436,071)	-	-	(436,071)
Changes in real estate value in EUR within the period	(26,528)	-	(23,670)	-	(50,198)
Change in real estate valuation in respect of altered EUR to PLN	14,127	2,130	32,134	19,055	67,446
exchange rate within the period

Change in real estate valuation in respect of expenditures incurred	(881)	-	(14,930)	-	(15,811)
within the period

Costs of sales transaction (net of costs relating to the repayment of	-	-	-	-	-
financial liabilities)

Costs of sales transaction (costs relating to the repayment of	-	-	-	-	-
financial liabilities)

Adjustment for linearisation of revenues from rental	(1,236)	-	(770)	(4,363)	(6,369)

Total	(14,518)	2,130	(7,236)	14,692	(4,932)

2.12 Information about Write-Downs of Inventory to Net Realisable Value and Reversal of Write-Downs in This Respect

Land Classified As Fixed Assets

As at 30 September 2020, this item includes land of PLN 86,866,000 (as at 31 December 2019 of PLN 86,603,000), which is intended for development during a period of over 2 years. The write-down as at 30 September 2020 and 31 December 2019 did not change and was PLN 3,263,000.

In view of the entry into force on 30 April 2016 of the provisions amending the Act of 11 April 2003 on the Shaping of the Agricultural System (Journal of Laws of 2012, item 803, of 2016, item 585, 1159) and introduced restrictions on acquisition of agricultural property, an analysis was made to check the impact of the provisions of this act on the restrictions on the possibility of implementation of investment opportunities on the land owned (see Note 2.7).

Due to the acquisition of land by the Group with a view to implementing a development investment and allocation in the Study of land use conditions and directions of Wisznia Mała municipality of this property to residential areas, as at 30 September 2020 the Group discloses the property in the item Land qualified as non-current assets for development during a period of over 2 years, in the valuation by an independent valuer drawn up before the date of entry into force of the above-mentioned act, since despite the restrictions introduced by the Act (which in practice prevent the disposal of this property), there were no other considerations that might affect the current measurement and there is still a possibility to use this land in a manner consistent with the intention of the Group and the Group does not intend to dispose of this property.

Develia S.A. Group

QR for 3Q 2020

CONSOLIDATED QUARTERLY REPORT

Inventory

	30 September 2020	31 December 2019
Work in progress	1,249,771	1,050,545
Finished products	96,143	105,395
Value adjustment for right of perpetual usufruct to land according to IFRS 16	31,535	31,022
Write-downs of Inventories	(121,271)	(124,934)

Total inventories	1,256,178	1,062,028

As at 30 September 2020, Borrowing costs of PLN 51,916,000 (as at 31 December 2019 they amounted to PLN 47,767,000) were capitalised in the value of Inventory.

Changes in the write-downs of inventories were as follows:

At the beginning of the reporting period

Increase

Used

Decrease

At the end of the reporting period

Period of 9 months	Year ended 31
ended
December 2019
30 September 2020


124,934	129,838

-	394
(3,663)	(5,298)
-	-

121,271	124,934

As at 30 September 2020 and 31 December 2019, no item of inventory was pledged or mortgaged, except for the mortgage mentioned in Section 2.26.5.

2.13 Information about Impairment Losses in Respect of Financial Assets, Property, Plant and Equipment, Intangible Assets or Other Assets and Reversal of Such Losses

During the period of 9 months ended 30 September 2020, there were no significant changes in the impairment write- downs on financial assets, property, plant and equipment, intangible assets, land classified as fixed assets and other assets, except for write-downs on trade receivables, presented in the table below:

	Period of 9 months	Year ended 31
	ended
	December 2019
	30 September 2020


At the beginning of the period	10,459	9,419

Increase	2,490	4,735
Used	(623)	(3,150)
Decrease	(888)	(545)

At the end of the period	11,438	10,459

Develia S.A. Group

QR for 3Q 2020

CONSOLIDATED QUARTERLY REPORT

2.14 Information about Creating, Increasing, Utilising and Reversing Provisions

The amounts of provisions and the reconciliation presenting the changes in their position during the reporting period are shown in the table below:

	Retirement and		Provision for
	disability
	Disputes and	disposal of
	benefits and	Other		Total
	litigation	investment
	bereavement
		property
	payment


As at 01 January 2020	22	3,274	10,805		49	14,150

Created	-	183	-		70	253
Reclassification	-	-	4,432		-	4,432
Used	-	-	(6,252)		(1)	(6,253)
Reversed	-	-	-		-	-

As at 30 September 2020, including:	22	3,457	8,985		118	12,582


- non-current	22	-	3,094		-	3,116
- current	-	3,457	5,891		118	9,466

2.15 Information about Deferred Tax Liabilities and Deferred Tax Assets

Deferred income tax arises from the following items:

Statement of financial position	Deferred income tax expense for the
period ended

30 September	31 December	01 January 2019	30 September	31 December 2019
2020	2019	2020

Deferred tax liability

Accrued interest and discounts on borrowings, bonds, notes and deposits

Valuation of investment property

Difference in the value of tangible assets (tax and balance-sheet depreciation)

Difference in the value of other assets (tax value and book value)

Other

Gross deferred tax liability

Deferred tax assets

Valuation of investment property

Provisions and prepayments and accrued income

Accrued interest and discounts on borrowings, bonds and notes

Foreign exchange differences

Difference in the value of other assets (tax value and book value)

(9,808)	(6,852)	(7,684)	(2,956)	832
-	(29,502)	(68,033)	29,502	38,531
(47,186)	(57,587)	(58,173)	10,401	586
-	-	-	-	-
(4)	(464)	(1,038)	460	574

(56,998)	(94,405)	(134,928)

4,447	-	-	4,447	-
3,061	5,338	2,928	(2,277)	2,410
6,171	4,757	6,081	1,414	(1,324)
6,374	2,567	4,859	3,807	(2,292)
4,483	5,936	9,780	(1,453)	(3,844)

Develia S.A. Group

QR for 3Q 2020

CONSOLIDATED QUARTERLY REPORT

Losses potentially deductible from future taxable income

Other

Gross deferred tax assets

9,586	3,358	5,851	6,228	(2,493)
1,693	2,439	1,723	(746)	716

35,815	24,395	31,222

Deferred tax expense			48,827	33,696

Net deferred tax asset	38,867	35,408	11,175



Net deferred tax liability	(60,050)	(105,418)	(114,881)

Considering the specificity of the conducted activity, which involves the achievement of taxable revenue at a deferred time, the Group activates incurred tax losses until taxable income is achieved, taking into account the tax regulations concerning the possibility of settling such losses. The amount of an asset resulting from tax losses disclosed in deferred tax is presented in the table above.

As at 30 September 2020, the Group carried out an analysis of the recoverability of a created and potential deferred tax asset and did not create a deferred tax asset on account, among other things, of tax losses in companies in the amount of PLN 794,000 (and accordingly PLN 948,000 as at 31 December 2019), which can be used within the maximum period of up to five years from the end of the reporting period in which they arose. In addition, the Group did not create a deferred tax asset in the amount of PLN 19,764,000 with regard to temporary differences between the balance-sheet and tax values of respective assets and liabilities items (and accordingly PLN 16,382,000 as at 31 December 2019).

2.16 Information about Significant Purchase and Sale Transactions Regarding Property, Plant and Equipment

During the period of 9 months ended 30 September 2020, the Group purchased property, plant and equipment totalling PLN 311,000 (in the year ended 31 December 2019, it was: PLN 1,487,000).

In the period of 9 months ended 30 September 2020, the Group entered into a lease agreement for 13 passenger cars. The value of right-of-use assets was PLN 452,000.

In the period of 9 months ended 30 September 2020, the Group did not enter into any significant sale transactions regarding property, plant and equipment items.

As at 30 September 2020, there are no significant contractual liabilities arising from the purchase of property, plant or equipment.

2.17 Information about Significant Liabilities on Account of the Purchase of Property, Plant and Equipment

As at 30 September 2020, there were no significant liabilities on account of the purchase of property, plant or equipment.

2.18 Information about Significant Settlements on Account of Litigation

As at 30 September 2020, there are no significant proceedings before the court or arbitration or public administration authorities with regard to liabilities or receivables of Develia S.A. or its subsidiaries, the value of which would have an important bearing on the financial standing of the Group companies. The subsidiary undertakings of Develia S.A. are parties to court and public administration proceedings whose value is insignificant for their operations or financial standing. The vast majority of other cases relate to claims lodged by subsidiaries of Develia S.A. against their debtors. Provisions for legal actions are shown in Note 2.14.

Develia S.A. Group

QR for 3Q 2020

CONSOLIDATED QUARTERLY REPORT

2.19 Disclosure of Correction of Errors of Previous Periods

During the period of 9 months ended 30 September 2020 there were no corrections of the errors of previous periods.

2.20 Information about Changes in Economic Situation and Conditions for Running Business Activity Which Have Considerable Impact on Fair Value of Group's Financial Assets and Financial Liabilities,

Regardless of Whether Such Assets and Liabilities Are Recognised at Fair Value or at Adjusted Purchase Price (Depreciated Cost)

Considerable fluctuations in the EUR exchange rate translate into significant changes in the EUR valuation of assets/equity and liabilities (i.e. commercial property and the loans financing it), which are converted into PLN at an average exchange rate of NBP effective at the end of each accounting period. The situation on financial markets has also an impact on the valuation of IRS and CAP financial instruments disclosed in the Statement of Comprehensive Income.

The table below shows the sensitivity of a net financial result to possible fluctuations of the Euro exchange rates of fair value measurement of assets and loans valuations in EUR, on the assumption of the invariability of other factors. Due to the high volatility of Euro exchange rate in recent years, +/- PLN 0.20 variations have been taken into consideration for the presentation of the sensitivity of the financial result.

	Increase/decrease in the	Impact on the net	Impact on equity in PLN
	financial result in PLN
	exchange rate in PLN	'000
	'000


30 September 2020	+ 0.20	24,849	24,849
	- 0.20	(24,849)	(24,849)
31 December 2019	+ 0.20	35,262	35,262
	- 0.20	(35,262)	(35,262)
30 September 2019	+ 0.20	36,135	36,135
	- 0.20	(36,135)	(36,135)

2.21 Information about Failure to Repay Loan or Borrowing or Infringement of Material Provisions of Loan or Borrowing Agreement With Regard to Which No Corrective Actions Were Taken by the End of the Reporting Period

No such events occurred in any of the Group's companies.

2.22 Information on Single or Many Transactions Concluded by Issuer or Its Subsidiary Undertaking with

Related Entities (If Made on Terms Other Than at Arm's Length)

In the discussed reporting period neither the Issuer nor its subsidiary undertakings concluded with a related entity any transactions, which were effected on the terms other than at arm's length.

Transactions with related entities for the Group are presented in item 2.23.

Develia S.A. Group

QR for 3Q 2020

CONSOLIDATED QUARTERLY REPORT

2.23 Transactions with Related Undertakings

30 September 2020

			Receivables	Liabilities to		Financial
		Purchases from	from related	related	Financial
Related undertaking	Sales to related	expenses
related	undertakings	undertakings	income
undertakings	(interest,
	undertakings	(trade and	(trade and	(interest)
		discounts)
			financial)	financial)


Shareholders	-	-	-	-	-	-

Undertakings related through	-	-	-	-	-	-
shareholders


Management and Supervisory Board

Management Board of parent undertaking	-	7,193 (*)	-	-	-	-
and subsidiaries

Supervisory Board	-	707 (*)	-	-	-	-


(*) Remuneration paid
31 December 2019

			Receivables	Liabilities to		Financial
		Purchases from	from related	related	Financial
Related undertaking	Sales to related	expenses
related	undertakings	undertakings	income
undertakings	(interest,
	undertakings	(trade and	(trade and	(interest)
		discounts)
			financial)	financial)


Shareholders	-	-	-	-	-	-

Undertakings related through	-	-	-	-	-	-
shareholders


Management and Supervisory Board

Management Board of parent undertaking	44	14,213 (*)	-	-	-	-
and subsidiaries

Supervisory Board	-	627 (*)	-	-	-	-


(*) Remuneration paid
30 September 2019

			Receivables	Liabilities to		Financial
		Purchases from	from related	related	Financial
Related undertaking	Sales to related	expenses
related	undertakings	undertakings	income
undertakings	(interest,
	undertakings	(trade and	(trade and	(interest)
		discounts)
			financial)	financial)


Shareholders	-	-	-	-	-	-

Undertakings related through	-	-	-	-	-	-
shareholders


Management and Supervisory Board

Management Board of parent undertaking	-	10,352 (*)	-	-	-	-
and subsidiaries

Supervisory Board	-	459 (*)	-	-	-	-


(*) Remuneration paid

Develia S.A. Group

QR for 3Q 2020

CONSOLIDATED QUARTERLY REPORT

2.24 Information about Change in the Way (Method) of Determining Fair Value for Financial Instruments Measured at Fair Value

None occurred.

2.25 Information about Change in Classification of Financial Assets Resulting From Change in Purpose or Utilisation of Such Assets

None occurred.

2.26 Financial Liabilities

2.26.1 Interest-bearing Bank Loans and Bonds

Non-current	Entity	Interest rate	Repayment	30 September	31 December
date	2020	2019

Bank loan in EUR (a)	Arkady Wrocławskie S.A.	Euribor 3M+margin	31 Dec 2022	61,263	59,421
Bank loan in EUR (b)	Warszawa Przyokopowa Sp. z	Euribor 1M+margin	29 Jan 2020	-	184,071
o.o.

Bank loan in EUR (c)	Sky Tower S.A.	Euribor 3M+margin	20 Dec 2022	188,170	179,867
	LC Corp Invest XVII Sp. z o.o.
Bank loan in EUR (d)	Projekt 22 Sp. k.	Euribor 3M+margin	28 Nov 2027	112,618	103,881
	(Wola Retro)
	LC Corp Invest XVII Sp. z o.o.
Bank loan in PLN (e)	Projekt 22 Sp. k.	Wibor 3M+margin	28 Nov 2020	-	-
	(Wola Retro)
Bond scheme (f)	Develia S.A.	Wibor 6M+margin	20 Mar 2020	-	-
Bond scheme (g)	Develia S.A.	Wibor 6M+margin	10 May 2021	-	84,899
Bond scheme (h)	Develia S.A.	Wibor 6M+margin	10 May 2021	-	14,990
Bond scheme (i)	Develia S.A.	Wibor 6M+margin	6 Oct 2021	24,987	24,978
Bond scheme (j)	Develia S.A.	Wibor 6M+margin	6 Oct 2021	14,978	14,962
Bond scheme (k)	Develia S.A.	Wibor 6M+margin	5 Jun 2022	49,841	49,770
Bond scheme (l)	Develia S.A.	Wibor 6M+margin	28 Feb 2022	44,879	44,815
Bond scheme (n)	Develia S.A.	Wibor 3M+margin	19 Oct 2022	19,903	65,561
Bond scheme (o)	Develia S.A.	Wibor 3M+margin	22 May 2023	59,628	59,519

				576,267	886,734

Current	Entity	Interest rate	Repayment	30 September	31 December
date	2020	2019

Bank loan in EUR (a)	Arkady Wrocławskie S.A.	Euribor 3M+margin	30 Sep 2021	2,846	7,327
Bank loan in EUR (b)	Warszawa Przyokopowa Sp. z	Euribor 1M+margin	29 Jan 2020	-	7,317
o.o.

Bank loan in EUR (c)	Sky Tower S.A.	Euribor 3M+margin	30 Sep 2021	11,105	10,124

Develia S.A. Group

QR for 3Q 2020

CONSOLIDATED QUARTERLY REPORT

	LC Corp Invest XVII Sp. z o.o.
Bank loan in EUR (d)	Projekt 22 Sp. k.	Euribor 3M+margin	30 Sep 2021	3,502	310
	(Wola Retro)
	LC Corp Invest XVII Sp. z o.o.
Bank loan in PLN (e)	Projekt 22 Sp. k.	Wibor 3M+margin	28 Nov 2020	-	-
	(Wola Retro)
Bond scheme (f)	Develia S.A.	Wibor 6M+margin	20 Mar 2020	-	65,886
Bond scheme (g)	Develia S.A.	Wibor 6M+margin	10 Nov 2020 /	86,213	618
10 May 2021

Bond scheme (h)	Develia S.A.	Wibor 6M+margin	10 Nov 2020 /	15,218	109
10 May 2021

Bond scheme (i)	Develia S.A.	Wibor 6M+margin	06 Oct 2020	480	309
Bond scheme (j)	Develia S.A.	Wibor 6M+margin	06 Oct 2020	287	184
Bond scheme (k)	Develia S.A.	Wibor 6M+margin	05 Dec 2020	543	166
Bond scheme (l)	Develia S.A.	Wibor 6M+margin	28 Feb 2021	132	757
Bond scheme (m)	Develia S.A.	Wibor 6M+margin	19 Oct 2020	27,416	34,157
Bond scheme (n)	Develia S.A.	Wibor 3M+margin	19 Oct 2020	144	693
Bond scheme (o)	Develia S.A.	Wibor 3M+margin	23 Nov 2020	227	342

				148,113	128,299

Loan at Arkady Wrocławskie taken out in EUR on 28 February 2008 with a syndicate of banks: ING Bank Śląski
S.A. and Santander Bank Polska S.A. On 29 December 2017, the Company and Santander Bank Polska S.A. executed an amendment to the syndicate loan agreement of 28 February 2008 to extend the period of financing granted under the loan agreement. The amount of loan granted under the said amendment is EUR 25,000,000, and the loan repayment date was fixed for 31 December 2022. Prior to entering into the above amendment, i.e. on 27 December 2017, an amendment to the loan agreement was executed between Arkady Wrocławskie S.A. and ING Bank Śląski S.A. and Santander Bank Polska S.A., forming the previous syndicate of lending banks, under which ING Bank Śląski S.A. assigned to Santander Bank Polska S.A. its receivables against the Company arising from the loan granted within the framework of a syndicate of banks, and Santander Bank Polska S.A. accepted the said assignment becoming thus the sole lender. At this moment, all the entitlements, rights and claims (including the entire collateral), and all the risks and obligations relating to the loan were assigned to
Santander Bank Polska S.A.. On 21 March 2019, Arkady Wrocławskie S.A. paid off a portion of a bank loan in an amount of EUR 5,000,000 to Santander Bank Polska S.A., which was granted under the syndicate loan agreement of 28/02/2008, with further amendments. On 28 March 2019, Arkady Wrocławskie S.A. and Santander
Bank Polska S.A. executed an amendment to the syndicate loan agreement of 28/02/2008 to revise the committed amount and alter the repayment schedule. On 27 April 2020, Arkady Wrocławskie S.A. and Santander Bank Polska S.A. executed an amendment to the loan agreement of 28 February 2008, including further modifications thereto, under which the payment of principal instalments originally due for payment on 31 March 2020 and 30 June 2020 was rescheduled on the date of final loan repayment, i.e. on 31 December 2022. Further, under the aforesaid amendment, the Bank decided to refrain from the verification of debt service ratios for Q1 and Q2 2020. On 29 July 2020, Arkady Wrocławskie S.A. and Santander Bank Polska S.A. executed an amendment to the loan agreement of 28 February 2008, including further modifications thereto, under which the payment of principal instalments originally due for payment on 30 September 2020 and 31 December 2020 was rescheduled on 31 July 2020. Further, under the aforesaid amendment, the Bank decided to refrain from the verification of debt service ratios for Q3 and Q4 2020. On 31 July 2020, the principal in the amount of PLN 875,000 was paid off. On 27 August 2020, Arkady Wrocławskie S.A. and Santander Bank Polska S.A. executed an amendment to the loan agreement of 28 February 2008, including further modifications thereto, under which the payment of certain principal instalments originally due for payment on 31 March 2021 and 30 June 2021 was rescheduled on or before 31 August 2020. The principal amount of EUR 437,500 was repaid in full on 31 August 2020. On 28

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September 2020, Arkady Wrocławskie S.A. and Santander Bank Polska S.A. executed an amendment to the loan agreement of 28 February 2008, including further modifications thereto, under which the payment of a portion of a principal instalment originally due for payment on 30 September 2021 was rescheduled on or before 30 September 2020. The principal amount of EUR 218,750 was repaid on 30 September 2020. On 27 October 2020, Arkady Wrocławskie S.A. and Santander Bank Polska S.A. executed an amendment to the loan agreement of 28 February 2008, including further modifications thereto, under which the payment of a portion of a principal instalment originally due for payment on 31 December 2021 was rescheduled on or before 30 October 2020. The principal amount of EUR 218,750 was repaid on 30 October 2020.

The loan at Warszawa Przyokopowa Sp. z o.o. was taken out pursuant to the agreement of 15 July 2011 with BNP Paribas Polska S.A. in the amount of up to EUR 49,000,000 for the partial financing of the construction of Wola Center office building development in Warsaw. On 26 June 2014 the company concluded an amendment to the Loan Agreement pursuant to which the maximum amount was increased to EUR 55,000,000. On 20 September 2018, the company concluded an amendment to the Loan Agreement, pursuant to which the amount of investment loan was increased and the loan term extended. The amount of investment loan determined in the aforesaid Amendment may not be higher than EUR 54,335,241.03, of which two new loan tranches made available under and provided for in the Amendment cannot be higher than EUR 7,000,000 and EUR 6,000,000 respectively. On 29 January 2020, Warszawa Przyokopowa Sp. z o.o. repaid in full the bank loan obtained under an agreement concluded on 15 July 2011 with BNP Paribas Polska S.A., including further amendments thereto, in a total amount of EUR 45,246,208.46 and settled transactions hedging against a risk associated with an increase in interest rates, concluded as at the date of repayment, in the total amount of EUR 3,468,899.70.
The loan at Sky Tower S.A. taken out in EUR pursuant to the agreement of 29 December 2012 concluded with a syndicate of banks Getin Noble Bank S.A. and Alior Bank S.A., including further amendments thereto. On 29 June 2020, Sky Tower S.A. concluded an amendment to the loan agreement of 29 December 2012, including further modifications thereto, with a syndicate of banks comprised of Getin Noble Bank S.A. and Alior Bank S.A., under which the payment of principal instalments originally due for payment on 30 June 2020 and 30 September 2020 was rescheduled on the date of final loan repayment, i.e. on 20 December 2022. Further, under the aforesaid amendment, the Banks decided to refrain from the verification of debt service ratios for Q2 and Q3 2020. On 29 October 2020, Sky Tower S.A. concluded an amendment to the loan agreement of 29 December 2012, with a syndicate of banks comprised of Getin Noble Bank S.A. and Alior Bank S.A., including further modifications thereto, under which the payment of a principal instalment originally due for payment on 31 December 2020 was rescheduled on or before 30 October 2020. The principal amount of EUR 599,700 was repaid on 30 October 2020.
The loan at LC Corp Invest XVII Sp. z o.o. Projekt 22 Sp. k. taken out pursuant to the agreement of 20 December 2017 with a syndicate of banks: mBank Hipoteczny S.A. and mBank S.A. up to the amount of EUR 34,187,000 for the partial financing of Wola Retro in Warsaw. On 28 October 2020, LC Corp Invest XVII Sp. z o.o. Projekt 22 Sp. k. entered into a loan agreement with mBank S.A. covering the amount of up to EUR 34,187,000, designated, among other things, for the repayment of existing debt owed to mBank S.A. and mBank Hipoteczny S.A. and arising from a loan agreement of 20/12/2017, as amended, and for the financing and refinancing of costs relating to the construction of an office building called "Wola Retro". The aforesaid Agreement was concluded as a result of a construction loan being converted to an investment loan and previous lenders being replaced by others (mBank Hipoteczny S.A. and mBank S.A. have been replaced with one lender - mBank S.A.).
The revolving loan at LC Corp Invest XVII Sp. z o.o. Projekt 22 Sp. k. taken out under the agreement of 20 December 2017 with a syndicate of banks: mBank Hipoteczny S.A. and mBank S.A. up to the amount of PLN 7,000,000 for financing and refinancing the payment of VAT in respect of costs related to Wola Retro Project in Warsaw.
Coupon bonds - the issue of 20 March 2015, including 65,000 five-year unsecured coupon bonds of PLN 1,000 each and a total nominal value of PLN 65,000,000 under a Bond Issue Agreement concluded with the banks

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Pekao S.A., having its registered office in Warsaw, and mBank S.A., having its registered office in Warsaw. On 20 March 2020, the Company redeemed the bonds.

Coupon bonds - the issue of 10 May 2016, including 85,000 five-year unsecured coupon bonds of PLN 1,000 each and a total nominal value of PLN 85,000,000 under a Bond Issue Agreement with the redemption date set at 10 May 2021 concluded with the banks Pekao S.A., having its registered office in Warsaw, and mBank S.A., having its registered office in Warsaw. On 23 December 2016, the assimilation of bonds of these series with bonds issued on 19 August 2016 took place on the "Catalyst" bond market.
Coupon bonds - the issue of 19 August 2016, including 15,000 five-year unsecured coupon bonds of PLN 1,000 each and a total nominal value of PLN 15,000,000 under a Bond Issue Agreement with the redemption date set at 10 May 2021 concluded with the banks Pekao S.A., having its registered office in Warsaw, and mBank S.A., having its registered office in Warsaw. On 23 December 2016, the assimilation of bonds of these series with bonds issued on 10 May 2016 took place on the "Catalyst" bond market.
Coupon bonds - the issue of 6 October 2016, including 25,000 five-year unsecured coupon bonds of PLN 1,000 each and a total nominal value of PLN 25,000,000 under a Bond Issue Agreement with the redemption date set at 6 October 2021 concluded with the banks Pekao S.A., having its registered office in Warsaw, and mBank S.A., having its registered office in Warsaw. On 25 April 2017, the assimilation of bonds of these series with bonds issued on 27 October 2016 took place on the "Catalyst" bond market.
Coupon bonds - the issue of 27 October 2016, including 15,000 five-year unsecured coupon bonds of PLN 1,000 each and a total nominal value of PLN 15,000,000 under a Bond Issue Agreement with the redemption date set at 6 October 2021 concluded with the banks Pekao S.A., having its registered office in Warsaw, and mBank S.A., having its registered office in Warsaw. On 25 April 2017, the assimilation of bonds of these series with bonds issued on 6 October 2016 took place on the "Catalyst" bond market.
Coupon bonds - the issue of 5 December 2017, including 50,000 five-year unsecured coupon bonds of PLN 1,000 each and a total nominal value of PLN 50,000,000 under a Bond Issue Agreement with the redemption date set at 5 June 2022 concluded with the banks Pekao S.A., having its registered office in Warsaw, and mBank S.A., having its registered office in Warsaw.
Coupon bonds - the issue of 28 February 2018, including 45,000 four-year unsecured coupon bonds of PLN 1,000 each and a total nominal value of PLN 45,000,000 under a Bond Issue Agreement with the redemption date set at 28 February 2022 concluded with the banks Pekao S.A., having its registered office in Warsaw, and mBank S.A., having its registered office in Warsaw.
Coupon bonds - the issue of 19 October 2018, including 34,000 two-year unsecured coupon bonds of PLN 1,000 each and a total nominal value of PLN 34,000,000 under a Bond Issue Agreement with the redemption date set at set at 19 October 2020 concluded with mBank S.A., having its registered office in Warsaw. On 29 September 2020, the Company acquired 7,000 its own bonds of PLN 1,000 each for the purpose of redemption. On 19 October 2020, the Company redeemed the bonds of PLN 27,000,000.
Coupon bonds - the issue of 19 October 2018, including 66,000 four-year unsecured coupon bonds of PLN 1,000 each and a total nominal value of PLN 66,000,000 under a Bond Issue Agreement with the redemption date set at 19 October 2022 concluded with mBank S.A., having its registered office in Warsaw. The Company received calls for early redemption in the total amount of PLN 46,000,000, and on 20 July 2020, it purchased, before the bond's maturity date, obligations amounting to PLN 46,000,000. The value of obligations still outstanding and to be redeemed on 19 October 2022 equals PLN 20,000,000.

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Coupon bonds - the issue of 22 May 2019, including 60,000 four-year unsecured coupon bonds of PLN 1,000 each and a total nominal value of PLN 60,000,000 under a Bond Issue Agreement with the redemption date set at 22 May 2023 concluded with mBank S.A., having its registered office in Warsaw.

The allocation of respective loans, bonds to operating segments is presented in item 2.31.

2.26.2 Liabilities Arising from Financial Instruments

As at 30 September 2020 and 31 December 2019, the fair value measurement of IRS, CAP and forward transactions hedging the risk of an interest rate increase was recognised under Liabilities on account of loans and bonds and totalled:

	30 September 2020	31 December 2019
Non-current	1,101	11,983
Current	418	428

Total	1,519	12,411

FX Forward Transaction Conducted by LC Corp Invest XVII Sp. z o.o. Projekt 22 Sp. k.

On 26 March 2020, LC Corp Invest XVII Sp. z o.o. Projekt 22 Sp. k. entered into, pursuant to a framework agreement of 8 February 2018, a foreign exchange forward transaction which included forward and derivative operations relating to the performance of a loan agreement and extended the settlement period of the unsettled transaction to its maturity, i.e. 31 March 2020. A new settlement date was set for the unsettled amount of PLN 11,478,000 - 30 September 2020. The nominal value of the aforesaid transaction at a base rate amounted to EUR 2,626,000.

On 29 September 2020, LC Corp Invest XVII Sp. z o.o. Projekt 22 Sp. k. entered into, pursuant to a framework agreement of 8 February 2018, a foreign exchange forward transaction which included forward and derivative operations relating to the performance of a loan agreement and extended the settlement period of the unsettled transaction to its maturity, i.e. 30 September 2020. A new settlement date was set for the unsettled amount of PLN 11,518,000 - 31 March 2021. The nominal value of the aforesaid transaction at a base rate amounted to EUR 2,626,000.

2.26.3 Issue, Redemption of Equity Securities

On 20 March 2020, 65,000 five-year unsecured coupon bonds of PLN 1,000 each and a total nominal value of PLN 65,000,000 were redeemed.

On 20 July 2020, 46,000 four-year unsecured coupon bonds of PLN 1,000 each and a total nominal value of PLN 46,000,000 were redeemed.

On 29 September 2020, the Company acquired 7,000 its own bonds of PLN 1,000 each for the purpose of redemption.

After the balance-sheet, on 7 October 2020, 70,000 three-year unsecured coupon bonds having a par value of PLN 1,000 each and a total nominal value of PLN 70,000,000 were issued under a Bond Issue Agreement with the redemption date set at 6 October 2023, concluded with mBank S.A., having its registered office in Warsaw.

After the balance-sheet date, on 19 October 2020, 27,000 two-year unsecured coupon bonds of PLN 1,000 each and a total nominal value of PLN 27,000,000 were redeemed.

Changes to Documentation of Bond Issue Programme

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relating to the Issue Programme to amended provisions of law that apply to the issue of bonds. Bonds issued under the amended Issue Programme ("the Bonds") will be tendered for purchase pursuant to Article 33(1) or (2) of the Bonds Act of 15 January 2015.

Taking out and Repaying of Bank Loans and Borrowings

In the period of 9 months ended 30 September 2020, Arkady Wrocławskie S.A. repaid the instalments of the loan in
EUR taken out with Santander Bank Polska S.A. in the amount of PLN 5,497,000. As at 30 September 2020, the total outstanding amount after conversion into Polish Zlotys was PLN 64,109,000.
In the period of 9 months ended 30 September 2020, Warszawa Przyokopowa Sp. z o.o. completely repaid the loan taken out in EUR to BNP Paribas Polska S.A. in the amount PLN 191,303,000.
In the period of 9 months ended 30 September 2020, Sky Tower repaid, in accordance with the repayment schedule, the instalments of the loan taken out in EUR to a syndicate of banks: Getin Noble Bank S.A. and Alior Bank S.A. in the amount of PLN 2,446,000. As at 30 September 2020, the total outstanding amount after conversion into Polish Zlotys was PLN 199,275,000.
In the period of 9 months ended 30 September 2020, LC Corp Invest XVII Spółka z ograniczoną odpowiedzialnością Projekt 22 Sp. k., according to a loan agreement with mBank Hipoteczny S.A., concerning a loan taken out in EUR and designated for the partial financing of Wola Retro Project in Warsaw, drew down funds in the total amount of PLN 5,189,000. As at 30 September 2020, the total outstanding amount after conversion into Polish Zlotys was PLN 116,120,000.
Collateral

As at 30 September 2020, the following main collateral, categorised into below groups, was used as security for the repayment of loans.

Security for Loans Granted to Finance Commercial Properties

1. Security for the bank loan agreement concluded by Arkady Wrocławskie S.A.:

capped mortgage (loan in EUR) - up to the amount of EUR 37,500,000;
Pledge on the shares of Arkady Wrocławskie S.A. held by Develia S.A. - up to the amount of EUR 37,500,000;
Registered pledge on bank accounts (loan in EUR) - up to the amount of EUR 37,500,000;
Assignment of rights arising from rental agreements, insurance and guarantees under agreements with contractors;
Declaration on submission to enforcement pursuant to Article 777 of the Code of Civil Procedure with regard to 113,700,000 ordinary registered shares held by Develia S.A. of a nominal value of PLN 1.00, each being a part of the share capital of Arkady Wrocławskie S.A., encumbered with registered pledge, under financial and registered pledge agreement, on shares as security for the repayment of secured debt;
Deposit of EUR 500,000.

2. Security for transactions hedging against interest rate risk (COLLAR) (hedging agreement), established by Arkady

Wrocławskie S.A.:

Contractual mortgage of up to PLN 8,250,000;
Declarations on submission to enforcement pursuant to Article 777 of the Code of Civil Procedure up to the total amount of PLN 8,250,000;

3. Security for the agreement on a bank loan taken out by Sky Tower S.A.:

Contractual mortgage of the highest priority of up to EUR 90,000,000;
Financial and registered pledges on accounts receivable from bank accounts with a power of attorney to manage the accounts;
Declaration on submission to enforcement pursuant to Article 97 of the Banking Law and Article 777 of the Code of Civil Procedure;

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Registered pledges on all shares of Sky Tower S.A., together with a financial pledge of up to EUR 90,000,000;
Assignment to secure the borrower's rights arising from all agreements concluded by the Borrower;
Subordination agreement on claims from other borrower's creditors being the borrower's partners, making them junior to the claims of the bank resulting from the Agreement.

4. Security for the transactions hedging against foreign exchange risk and interest rate risk (hedging agreements), established by Sky Tower S.A. pursuant to the framework agreement of 27 December 2012:

Contractual mortgage of the highest priority of up to EUR 44,000,000;
Declaration on submission to enforcement pursuant to Article 97 of the Banking Law.

5. Security for the bank loan agreement signed by LC Corp Invest XVII Sp. z o.o. Projekt 22 Sp.k.:

Contractual mortgage of up to EUR 36,280,500.00 established on parcels of land owned by LC Corp Invest XVII Sp. z o.o. Projekt 22 Sp. k. in favour of mBank Hipoteczny S.A.;
Contractual mortgage of up to EUR 15,000,000.00 established on parcels of land owned by LC Corp Invest XVII Sp. z o.o. Projekt 22 Sp. k. in favour of mBank S.A.;
Contractual mortgage of up to PLN 10,500,000.00 established on the land property owned by LC Corp Invest XVII Sp. z o.o. Projekt 22 Sp. k. in favour of mBank S.A.;
Declaration of the borrower on voluntary submission to enforcement towards mBank Hipoteczny S.A. of up to EUR 36,280,500.00 pursuant to Article 777(1)(5) of the Code of Civil Procedure, in respect of any pecuniary liabilities of the Company towards the Bank resulting from the Loan agreement;
Declaration of the borrower on voluntary submission to enforcement towards mBank Hipoteczny S.A. of up to EUR 15,000,000.00 pursuant to Article 777(1)(5) of the Code of Civil Procedure, in respect of any pecuniary liabilities of the Company towards the Bank resulting from the Loan agreement;
Declaration of the borrower on voluntary submission to enforcement towards mBank S.A. of up to PLN 10,500,000.00 pursuant to Article 777(1)(5) of the Code of Civil Procedure, in respect of any pecuniary liabilities of the Company towards the Bank resulting from the Loan agreement;
Agreement on the assignment of claims from all agreements concluded by the borrower connected with the project implemented on the property;
Registered pledges on the rights to cash in all bank accounts of the Borrower up to the highest sum of security in the amount of EUR 36,280,500.00 in favour of mBank Hipoteczny S.A.;
Registered pledges on the rights to cash in all bank accounts of the Borrower up to the highest sum of security in the amount of EUR 15,000,000.00 and PLN 10,500,000 in favour of mBank S.A.;
Subordination agreement on accounts receivable concluded by the borrower, Develia S.A. and other subsidiaries of the Issuer - LC Corp Invest XVII Sp. z o.o. and LC Corp Invest I Sp. z o.o., making them subordinated creditors, and mBank S.A. and mBank Hipoteczny S.A. as senior creditors, including the assignment to secure all subordinated accounts receivable for the bank in accordance with the above agreement;
Support agreement concluded by the borrower, mBank Hipoteczny S.A., mBank S.A. and Develia S.A. as the guarantor, pursuant to which the guarantor will be obliged, among other things, to provide financial support to the borrower under the circumstances specified in the agreement;
Declaration of Develia S.A. on its submission to enforcement pursuant to Article 777 of the Code of Civil Procedure in conjunction with the above-mentioned support agreement up to EUR 3,576,261.90;
Surety agreement concluded by the borrower, mBank Hipoteczny S.A., mBank S.A. and Develia S.A., under which Develia S.A. will stand surety for the borrower up to a partial amount of the borrower's liabilities as a result of achieving a certain level of DSCR ;
Commitment to enter into a support agreement with the borrower, mBank Hipoteczny S.A., mBank S.A. and Develia S.A. as the guarantor, pursuant to which the guarantor will be obliged, among other things, to provide financial support to the borrower under the circumstances specified in the agreement;
Declaration of Develia S.A. on its submission to enforcement pursuant to Article 777 of the Code of Civil Procedure in conjunction with the above-mentioned support agreement up to EUR 558,660.50;
Registered pledge in favour of mBank Hipoteczny S.A. established by LC Corp Invest XVII Sp. z o.o. - a subsidiary of the Issuer, with regard to the rights and obligations due to LC Corp Invest XVII Sp. z o.o. as the general partner

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of the borrower to secure the repayment of secured accounts receivable up to the highest sum of security in the amount of EUR 36,280,500.00 together with a declaration on submission to enforcement pursuant to Article 777 of the Code of Civil Procedure;

Registered pledge in favour of mBank S.A. established by LC Corp Invest XVII Sp. z o.o. - a subsidiary of the Issuer, with regard to the rights and obligations due to LC Corp Invest XVII Sp. z o.o. as the general partner of the borrower to secure the repayment of secured accounts receivable up to the highest sum of security in the amount of EUR 15,000,000.00 together with a declaration on submission to enforcement pursuant to Article 777 of the Code of Civil Procedure;
Registered pledge in favour of mBank S.A. established by LC Corp Invest XVII Sp. z o.o. - a subsidiary of the Issuer, with regard to the rights and obligations due to LC Corp Invest XVII Sp. z o.o. as the general partner of the borrower to secure the repayment of secured accounts receivable up to the highest sum of security in the amount of PLN 10,500,000.00 together with a declaration on submission to enforcement pursuant to Article 777 of the Code of Civil Procedure;
Registered pledge in favour of mBank Hipoteczny S.A. established by Develia S.A. with regard to the rights and obligations due to the limited partner of the borrower to secure the repayment of secured accounts receivable up to the highest sum of security in the amount of EUR 36,280,500.00 together with a declaration on submission to enforcement pursuant to Article 777 of the Code of Civil Procedure;
Registered pledge in favour of mBank Hipoteczny S.A. established by Develia S.A. with regard to the rights and obligations due to the limited partner of the borrower to secure the repayment of secured accounts receivable up to the highest sum of security in the amount of EUR 15,000,000.00 together with a declaration on submission to enforcement pursuant to Article 777 of the Code of Civil Procedure;
Registered pledge in favour of mBank Hipoteczny S.A. established by Develia S.A. with regard to the rights and obligations due to the limited partner of the borrower to secure the repayment of secured accounts receivable up to the highest sum of security in the amount of PLN 10,500,000.00 together with a declaration on submission to enforcement pursuant to Article 777 of the Code of Civil Procedure;
Registered pledge on the enterprise (a set of movables and transferable rights) in favour of mBank Hipoteczny S.A. established by the borrower with regard to the rights and obligations due to the limited partner of the borrower to secure the repayment of secured accounts receivable up to the highest sum of security in the amount of EUR 36,280,500.00 together with a declaration on submission to enforcement pursuant to Article 777 of the Code of Civil Procedure;
Registered pledge on the enterprise (a set of movables and transferable rights) in favour of mBank S.A. established by the borrower with regard to the rights and obligations due to the limited partner of the borrower to secure the repayment of secured accounts receivable up to the highest sum of security in the amount of EUR 15,000,000.00 together with a declaration on submission to enforcement pursuant to Article 777 of the Code of Civil Procedure;
Registered pledge on the enterprise (a set of movables and transferable rights) in favour of mBank S.A. established by the borrower with regard to the rights and obligations due to the limited partner of the borrower to secure the repayment of secured accounts receivable up to the highest sum of security in the amount of PLN 10,500,000.00 together with a declaration on submission to enforcement pursuant to Article 777 of the Code of Civil Procedure;

6. Security for transactions hedging against foreign exchange risk and interest rate risk (hedging agreements), established by LC Corp Invest XVII Sp. z o.o. Projekt 22 Sp.k. pursuant to the framework agreement as security for the loan agreement in favour of mBank S.A.:

Next ranking contractual mortgage of up to PLN 32,235,000, subordinated to the mortgage established as security for the investment loan and revolving loan for VAT on land owned by LC Corp Invest XVII Sp. z o.o. Projekt 22 Sp.k.;
Registered pledges on the rights to cash in all bank accounts of the Borrower up to the highest sum of security in the amount of PLN 32,235,000 in favour of mBank S.A.;
Declaration on submission to enforcement pursuant to Article Article 777 of the Code of Civil Procedure of up to PLN 32,235,000.

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2.27 Information Concerning Paid Out (or Declared) Dividend, in Total and Per Share, in Breakdown by Ordinary and Preference Shares

On 31 August 2020, the Ordinary General Meeting of Develia S.A. adopted a resolution on the payment of dividend on the following principles:

Amount of dividend: PLN 44,755,831.10
Amount of dividend per share: PLN 0.10
Number of shares subject to dividend: 447,558,311 shares
Record date: 18 September 2020
Dividend payment date: 02 October 2020

Pursuant to the said resolution, Develia S.A. paid the dividend on 02 October 2020.

2.28 Effects of Announcement of COVID-19 Epidemic on Group's Current Operations

An important factor that affected the Group's current operations in the period of 9 months ended 30 September 2020 was the state of COVID-19 epidemic announced in that period.

January and February 2020 saw very good sales, however, after that period the Group recorded a significant drop in the number of new sales contracts concluded in April 2020, and although May and June saw increasing sales volume, the result for the entire quarter and half year was worse than in corresponding periods of 2019.

Q3 2020 saw an increase in the number of flats sold by the Group (sales higher than in the corresponding period of the previous year), which gives an optimistic outlook on the situation of the housing market and its prospects.

Due to a state of epidemic being declared, the Group decided to change its investment plan, delaying the implementation of some housing projects, starting to phase individual projects over a longer period and changing the order of construction works for multi-stage projects - with next stages being chosen for implementation in consideration of a changing market situation.

Furthermore, the Group also noted a delay in the process of issuing administrative decisions, e.g. decisions on building permit, which stemmed from the fact that time limits for administrative authorities to give such decisions were suspended on account of the epidemic.

The Management Board monitor, on a daily basis, works progress on sites, and no major effects of the epidemic on project schedules were observed. As regards projects already completed and scheduled to be completed in this year, no delays in delivering premises to clients are envisaged by the Group.

The COVID-19 pandemic had also a considerable impact on the Group's operations in the commercial segment, it was reflected in revenues and cash flows generated by commercial buildings with a significant share in commercial floor space - these changes resulted in a lower value of investment real property - Arkady Wrocławskie and Sky Tower by a total of EUR 11,240,000. On account of restrictions on trading at shopping centres, which were introduced in November, the Management Board expect a drop in revenue from commercial buildings to be earned in Q4 2020. At present, it is difficult to assess a scale of decrease, which is contingent on how long will the said restrictions be in force. Apart from the aforesaid impact, the fact of announcing the COVID-19 pandemic has not affected the liquidity of the Group companies dramatically and it has had no significant bearing on the valuation of major financial items (such as inventory, receivables and provisions). Furthermore, the Group companies have met financing conditions set out in loan agreements.

2.29 Events Occurred After 30 September 2020, Not Disclosed in These Statements, Which Could Have Had Material Bearing on Future Financial Results of Develia Group

After the balance-sheet date, i.e. after 30 September 2020, no significant events which have not been revealed herein and might have a major impact on financial results presented herein were observed. Nevertheless, there were other events:

On 1 October 2020, the District Court for Wrocław-Fabryczna in Wrocław, the 6th Commercial Division of the National Court Register, registered a merger between Develia S.A., with the registered office in Wrocław ("the

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Acquiring Company"), and LC Corp Invest XXI Sp. z o.o., with the registered office in Wrocław ("the Acquired Company 1") and LC Corp Invest XXIV Sp. z o.o. ("the Acquired Company 2").

The merger was completed pursuant to Article 492(1)(1) of the Code of Commercial Partnerships and Companies through the transfer to the Acquiring Company - as the sole shareholder in the Acquired Company 1 and the Acquired Company 2 - of the entire assets of both acquired companies (merger through take-over) under conditions set out in the Merger Plan of 13 July 2020. In view of the fact that the Acquiring Company held all the shares of LC Corp Invest XXI Sp. z o.o. and of LC Corp Invest XXIV Sp. z o.o., the merger took place in accordance with Article 515(1) of the Code of Commercial Partnerships and Companies, without any increase in the Acquiring Company's share capital and without amending its articles of association.

The merger of the companies will be accounted for in the Acquiring Company's books and records by the pooling of interests method; to this end, the respective items of relevant assets and liabilities and revenues and expenses of the merged companies are summed up, as at the date of merger, however, in the first instance, they must be adjusted using uniform valuation methods and reciprocal receivables and payables, as well as the revenues and costs of business transactions carried out in the same financial year, shares held in the acquired company and the acquired company's share capital must be eliminated. Differences between the sum of assets and liabilities acquired will be reflected in the equity of the Acquiring Company.

The following table presents the impact of the merger on the main items of the statement of financial position of the Acquiring Company:

	30 September 2020	Effect of merger	Figures after
	merger


Assets
Non-current loans and receivables	119,373	(14,755)	104,618
Non-current investments	954,654	(11,851)	942,803
Inventory	720,104	14,904	735,008
Trade and other receivables	405	68	473
Current financial assets	56,631	-	56,631
Cash and other cash equivalents	139,061	535	139,596
Other assets	19,454	2	19,456
Total assets	2,009,682	(11,097)	1,998,585


Equity and liabilities
Equity	1,131,070	(14)	1,131,056
Financial Liabilities	545,008	(11,162)	533,846
Trade and Other Payables	86,727	3	86,730
Accruals and deferred income	214,119	-	214,119
Other liabilities	32,758	76	32,834

Total equity and liabilities	2,009,682	(11,097)	1,998,585

The foregoing change has no effect on the consolidated financial statements of the Develia S.A. Group.

On 2 October 2020, Develia S.A. paid out dividend in an amount of PLN 44,755,831.10 (PLN 0.10 per share) pursuant to the resolution adopted by the Ordinary General Meeting on 31 August 2020.
On 6 October 2020, due to Marek Szydło's resignation from the Supervisory Board, the Extraordinary General
Meeting appointed Marcin Eckert as a new member thereof.
On 7 October 2020, 70,000 three-year unsecured coupon bonds having a par value of PLN 1,000 each and a total nominal value of PLN 70,000,000 were issued under a Bond Issue Agreement with the redemption date set at 6 October 2023, concluded with mBank S.A., having its registered office in Warsaw.

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On 19 October 2020, 27,000 two-year unsecured coupon bonds of PLN 1,000 each and a total nominal value of PLN 27,000,000 were redeemed.
On 20 October 2020, the Company's Supervisory Board elected the Chair and Deputy Chair of the Supervisory
Board from among its members. The duties of the Supervisory Board Chairman were assigned to Mr Jacek Osowski, previously acting as Deputy Chair of the Board, whereas the duties of Board Deputy Chair were assigned to Mr Artur Osuchowski.
On 27 October 2020, Arkady Wrocławskie S.A. and Santander Bank Polska S.A. executed an amendment to the loan agreement of 28 February 2008, including further modifications thereto, under which the payment of a portion of a principal instalment originally due for payment on 31 December 2021 was rescheduled on or before 30 October 2020. The principal amount of EUR 218,750 was repaid on 30 October 2020.
On 28 October 2020, the General Meeting of LC Corp Service S.A. and shareholders of LC Corp Invest XV Sp. z
1. Projekt 9 Sp.k. passed resolutions on the merger pursuant to Article 492(1) of the Commercial Partnerships and Companies Code between LC Corp Service S.A., the acquiring company, and LC Corp Invest XV Sp. z o.o. Projekt 9 Sp.k., the acquired company, through the transfer of the entire assets of the acquired company to the acquiring company. As a result of the merger, the share capital of the acquiring company was increased from PLN 630,000.00 to PLN 631,053.00 solely in order to provide shares to the limited partner of the acquired company (LC Corp Invest XV Sp. z o.o.).
On 28 October 2020, an Issuer's subsidiary, namely, LC Corp Invest XVII Sp. z o.o. Projekt 22 Sp. k., entered into
1. loan agreement with mBank S.A. covering the amount of up to EUR 34,187,000.00, designated, among other things, for the repayment of existing debt owed to mBank S.A. and mBank Hipoteczny S.A. and arising from a loan agreement of 20/12/2017 and for the financing and refinancing of costs relating to the construction of an office building called "Wola Retro", which was erected by the Borrower on a plot of land located in Warsaw at 16- 20 Skierniewicka street and 11/13 Siedmiogrodzka street. The aforesaid Agreement was concluded as a result of
1. construction loan being converted to an investment loan and previous lenders being replaced by others (mBank Hipoteczny SA and mBank SA have been replaced with one lender - mBank SA). The principal terms and conditions of the loan agreement, specifically, the amount of lending, have not changed. The Agreement was concluded under arm's length conditions. A floating rate of interest will be charged on the loan per annum and calculated as the aggregate of EURIBOR 3M reference rate plus margins fixed on arm's length conditions.
  Commissions on the loan granted to the Borrower have been set under arm's length conditions. Pursuant to the Agreement concluded, the Loan debt will be paid off not later than seven years after the first drawdown of the Loan, which has been scheduled until 28/11/2020. Principal security for the Agreement includes:
- Mortgage on real property of up to EUR 51,280,500.00;
- A subordination agreement concluded by the borrower, the Issuer and Issuer's other subsidiaries (LC Corp
  Invest I Sp. z o.o. and LC Corp Invest XVII Sp. z o.o.) as subordinate creditors along with the borrower - as the senior creditor, providing for an assignment as security for all subordinated debts;
- Agreements to assign rights and debts arising from lease and other contracts associated with the project.
- First-rankingregistered pledges on the rights and debts owed to the limited partner and the general partner of the borrower's company (with pledges created in relation to the refinanced debt being senior to all other pledges), each up to EUR 51,280,500 along with a declaration on submission to enforcement pursuant to Article 777(1)(6) of the Code of Civil Procedure;
- First-rankingregistered and financial pledge on all bank accounts of the borrower (with pledges created in relation to the refinanced debt being senior to all other pledges), each up to EUR 51,280,500 along with powers of attorney for the lender;
- Borrower's declarations on submission to enforcement towards the lender pursuant to Article 777(1) of the
  Code of Civil Procedure up to EUR 51,280,500.00;
- Debt service reserve in the amount of three principal and interest instalments,
- A support agreement concluded with the Issuer, under which the Issuer undertook, among other things, to provide financial support to the borrower, including to provide Debt Service Reserve and replenish it if it has been drawn on, along with the Issuer's declaration on free submission to enforcement towards the lender in

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relation to the Support Agreement up to EUR 560,000.00 pursuant to Article 777(1)(5) of the Code of Civil Procedure;

- FX risk and interest rate risk hedging agreement, secured by a mortgage up to PLN 32,235,000 (which is junior directly to mortgage used as security for the agreement) on the real property and a declaration on submission to enforcement pursuant to Article 777 of the Code of Civil Procedure.
On 29 October 2020, Sky Tower S.A. concluded an amendment to the loan agreement of 29 December 2012, with a syndicate of banks comprised of Getin Noble Bank S.A. and Alior Bank S.A., including further modifications thereto, under which the payment of a principal instalment originally due for payment on 31 December 2020 was rescheduled on or before 30 October 2020. The principal amount of EUR 599,700 was repaid on 30 October 2020.

2.30 Information on Changes in Contingent Liabilities or Contingent Assets After the End of Last Accounting Year

As from the end of the last financial year, there have been no significant changes in contingent liabilities or contingent assets of the Group companies, except for contingent liabilities arising from real estate development, relating to contingent fees for the removal of trees, whose total amount was PLN 5,193,000 (as at 31 December 2019, such contingent liabilities amounted to PLN 5,411,000).

In pursuance of the Sales and Purchase Agreements covering two real properties: Silesia Star in Katowice and Retro Office House in Wrocław, the Company furnished the Purchasers, Ingadi spółka z ograniczoną odpowiedzialnością ("Ingadi") and Artigo spółka z ograniczoną odpowiedzialnością ("Artigo"), with rent guarantees issued for a five-year period (covering, inter alia, vacant floor space), secured by suretyship provided by the Company (as the surety of LC Corp Invest XVII Sp. z o.o. Projekt 20 Sp. k. ("P20") and LC Corp Invest XVII Sp. z o.o. Projekt 21 Sp. k. ("P21"), acting as the Sellers and debtors). In relation to the aforesaid suretyship, the Company will guarantee that:

obligations and liabilities arising from the Final Agreements will be discharged by P20 and P21, and
obligations and liabilities of P20 and P21 relating to finish works to be done by tenants designated in the Final Agreements will be discharged by P20 and P21, and
obligations and liabilities of P20 and P21 arising from the rent guarantee agreements contemplated in the Preliminary Sales and Purchase Agreements will be discharged by P20 and P21, and
the Company will incur debts of P20 and P21 arising from obligations and liabilities of P20 and P21 under the Final Agreements and rent guarantee agreements if the Sellers have ceased their operations, have gone into liquidation or have been dissolved, which circumstances will be described in the surety arrangement.

In pursuance of the Preliminary Sales and Purchase Agreement covering the real property called "Wola Center" in Warsaw, the Company has undertaken to the Purchaser, Gisla Spółka z ograniczoną odpowiedzialnością (currently Wola Center Sp. z o.o.), to stand surety for the Seller, Warszawa Przyokopowa Spółka z ograniczoną odpowiedzialnością, and the debtor. Under the said commitment the Company guaranteed, among other things, that:

The Seller would perform the obligations and discharge the liabilities of Warszawa Przyokopowa, acting as the Seller, arising from agreements covering the subject-matter of the Transaction, and
The Company would incur debts of WP arising from obligations and liabilities of WP under the FSPA, if the Seller has ceased its operations, has gone into liquidation or has been dissolved, which circumstances were described in the surety arrangements,

Apart from the contingent liabilities representing security for bank loans described in detail in Note 2.26.5 and the above-described contingent fees relating to the removal of trees and arising from the real property sales and purchase agreements entered into, as at 30 September 2020, Group Companies did not have any other significant contingent liabilities.

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2.31 Other Information Deemed by Group as Relevant for Assessment of Its Personnel, Assets, Financial and Profit/Loss Standing and Changes Thereof and Information Relevant for Feasibility of Fulfilling Its Obligations

Apart from the events referred to herein, in the reporting period ended 30 September 2020 there were no other events concerning the Group, which would have any impact on the assessment of personnel, assets and financial standing and on the evaluation of the Issuer's feasibility of discharging its obligations.

2.32 Revenue and Profit-Loss Attributable to Respective Operating Segments

For management purposes, the Group distinguishes three reporting operating segments:

rental services segment
property development activity segment
holding (other) activity segment

The tables presented below show data concerning revenues and profits of the Group's individual segments for the period of 9 months ended 30 September 2020 and 30 September 2019 and concerning assets and liabilities as at 30 September 2020 and 31 December 2019.

Period of 9 months ended		Property	Holding (other)
Rental services	development	TOTAL
30 September 2020	activity
	activity


Operating activity

Sales revenue	65,820	252,583	58	318,461

Revenue from sales of services	65,818	-	58	65,876
Revenue from sales of goods and products	2	252,583	-	252,585

Cost of sales	(27,249)	(175,018)	-	(202,267)

Pre-tax profit/(loss) on sales	38,571	77,565	58	116,194

Gain/(loss) on disposal of non-financial fixed assets	-	(23)	48	25
Profit /(loss) on investment property	(4,932)	-	-	(4,932)
Write-downs of Inventories	-	-	-	-
Selling and distribution cost	(328)	(9,712)	-	(10,040)
General administrative expenses	(6,456)	(12,528)	(7)	(18,991)
Other operating income	985	2,726	33	3,744
Other operating expenses	(1,834)	(970)	(16)	(2,820)

Operating profit/(loss)	26,006	57,058	116	83,180

Financial income	836	818	485	2,139
Financial expenses	(51,012)	(109)	(1,687)	(52,808)

Pre-tax profit/(loss)	(24,170)	57,767	(1,086)	32,511

Income tax (tax expense)	356	(10,040)	210	(9,474)

Net profit/(loss)	(23,814)	47,727	(876)	23,037

Other comprehensive income subject to reclassification to financial result in subsequent reporting periods

Cash flow hedges

Income tax relating to other components of comprehensive income

11,327	-	-	11,327
(2,152)	-	-	(2,152)

Other comprehensive income (net)	9,175	-	-	9,175


Total comprehensive income	(14,639)	47,727	(876)	32,212

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Period of 9 months ended		Property	Holding (other)
Rental services	development	TOTAL
30 September 2019	activity
	activity


Operating activity

Sales revenue	108,596	605,373	213	714,182

Revenue from sales of services	108,520	-	213	108,733
Revenue from sales of goods and products	76	605,373	-	605,449

Cost of sales	(35,576)	(403,737)	-	(439,313)

Pre-tax profit/(loss) on sales	73,020	201,636	213	274,869

Gain/(loss) on disposal of non-financial fixed assets	-	189	16	205
Profit /(loss) on investment property	(9,179)	-	-	(9,179)
Write-downs of Inventories	-	(363)	-	(363)
Selling and distribution cost	(635)	(11,224)	-	(11,859)
General administrative expenses	(6,605)	(16,312)	(999)	(23,916)
Other operating income	91	1,713	295	2,099
Other operating expenses	(2,765)	(304)	(625)	(3,694)

Operating profit/(loss)	53,927	175,335	(1,100)	228,162

Financial income	777	2,128	1,111	4,016
Financial expenses	(23,898)	(2,144)	(7,073)	(33,115)

Pre-tax profit/(loss)	30,806	175,319	(7,062)	199,063

Income tax (tax expense)	(7,396)	(33,493)	392	(40,497)

Net profit/(loss)	23,410	141,826	(6,670)	158,566

Other comprehensive income subject to reclassification to financial result in subsequent reporting periods

Cash flow hedges

Income tax relating to other components of comprehensive income

(8,436)	-	-	(8,436)
1,759	-	-	1,759

Other comprehensive income (net)	(6,677)	-	-	(6,677)


Total comprehensive income	16,733	141,826	(6,670)	151,889

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		Property	Holding (other)
As at 30 September 2020	Rental services	development	TOTAL
activity
		activity

Assets and liabilities

Total assets, including:	1,237,358	1,504,178	262,219	3,003,755

Non-Current Receivables	8,969	-	-	8,969
Investment property	1,126,774	-	-	1,126,774
Inventory	977	1,255,201	-	1,256,178
Current financial assets	-	25,192	35,011	60,203
Cash and Cash Equivalents	79,431	114,498	186,555	380,484
Non-current assets classified as held for sale	-	-	-	-
Total liabilities, including:	590,638	910,142	23,408	1,524,188

Liabilities on account of loans and bonds	422,003	303,896	-	725,899
Accruals and deferred income	6,606	440,480	11,351	458,437

		Property	Holding (other)
As at 31 December 2019	Rental services	development	TOTAL
activity
		activity

Assets and liabilities

Total assets, including:	1,649,887	1,518,135	75,903	3,243,925

Non-Current Receivables	8,699	-	-	8,699
Investment property	1,096,679	-	-	1,096,679
Inventory	6	1,062,022	-	1,062,028
Current financial assets	239	25,576	-	25,815
Cash and Cash Equivalents	66,266	242,737	31,887	340,890
Non-current assets classified as held for sale	446,282	-	-	446,282
Total liabilities, including:	726,709	974,408	33,924	1,735,041

Liabilities on account of loans and bonds	564,729	462,715	-	1,027,444
Accruals and deferred income	6,662	344,126	10,524	361,312

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3. INTERIM CONDENSED FINANCIAL STATEMENTS OF DEVELIA S.A. STATEMENT OF FINANCIAL POSITION

		Note	30 September 2020	31 December 2019

Assets

A.	Non-current assets		1,081,653	1,029,519

1.	Intangible assets		330	282
2.	Property, plant and equipment	3.12	7,296	6,145
3.	Non-current loans and receivables		119,373	75,177
4.	Non-current investments	3.9	954,654	947,499
5.	Non-current prepayments and accrued income		-	416
6.	Deferred tax assets	3.11	-	-

B.	Current assets		928,029	699,019
1.	Inventory		720,104	542,904
2.	Trade and other receivables		9,870	98,504
3.	Income tax receivables		405	3,719
4.	Current financial assets		56,631	24,157
5.	Cash and other cash assets		139,061	28,821
6.	Current prepayments and accrued income		1,958	914

C.	Non-current assets classified as held for sale		-	-

Total assets		2,009,682	1,728,538


Equity and liabilities

A.	Equity		1,131,070	948,279
1.	Share capital		447,558	447,558
2.	Called-up share capital not paid		-	-
3.	Supplementary capital		353,523	322,216
4.	Other reserve funds		100,205	-
5.	Other capital		2,237	2,237
6.	Retained profit/(Loss carried forward)		227,547	176,268

B.	Non-current liabilities		435,654	534,361
1.	Non-current financial liabilities	3.22	414,348	514,150
2.	Non-current lease liabilities		4,085	2,744
3.	Provisions	3.10	19	19
4.	Deferred tax liability	3.11	17,202	17,448
C.	Current liabilities		442,958	245,898

1.	Current financial liabilities	3.22	130,660	103,221
2.	Current lease liabilities		11,452	11,061
3.	Current trade and other payables		86,727	34,996
4.	Income tax payables		-	-
5.	Provisions	3.10	-	-
6.	Accruals and deferred income		214,119	96,620

Total equity and liabilities		2,009,682	1,728,538

Develia S.A. Group

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CONSOLIDATED QUARTERLY REPORT

STATEMENT OF COMPREHENSIVE INCOME

	Q3 2020	3 Quarters of	Q3 2019	3 Quarters of
	2020	2019
	period	period
	cumulatively	cumulatively
	from 01/07/2020	from 01/07/2019
	from 01/01/2020	from 01/01/2019
	to 30/09/2020	to 30/09/2019
	to 30/09/2020	to 30/09/2019


Operating income

Revenue from sale of services, products and goods	26,744	35,489	4,841	18,428
Revenue from interest and discounts	1,286	3,688	2,898	8,531
Revenue from dividend	-	235,559	61,000	180,078
Other financial income	836	7,235	-	4
Other operating income	118	475	82	93

Total operating income	28,984	282,446	68,821	207,134

Operating expenses

Operating expenses, cost of sold products and goods	(25,334)	(46,858)	(10,052)	(34,048)
Costs of interest and discounts	(2,068)	(7,370)	(4,841)	(14,896)
Other financial expenses	(436)	(862)	(3,080)	(5,224)
Other operating expenses	15	(55)	-	(802)

Total operating expenses	(27,823)	(55,145)	(17,973)	(54,970)


Pre-tax profit/(loss)	1,161	227,301	50,848	152,164

Income tax (tax expense)	(650)	246	(7,386)	(7,139)

Net profit/(loss) on continued operations	511	227,547	43,462	145,025


Discontinued operations
Profit (loss) on discontinued operations in the financial	-	-	-	-
year


Net profit/(loss)	511	227,547	43,462	145,025


Other comprehensive income
Other components of comprehensive income	-	-	-	-
Income tax relating to other components of comprehensive	-	-	-	-
income


Other comprehensive income (net)	-	-	-	-


Total comprehensive income	511	227,547	43,462	145,025

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CONSOLIDATED QUARTERLY REPORT

	Q3 2020	3 Quarters of	Q3 2019	3 Quarters of
	2020	2019
	period	period
	cumulatively	cumulatively
	from 01/07/2020	from 01/07/2019
	from 01/01/2020	from 01/01/2019
	to 30/09/2020	to 30/09/2019
	to 30/09/2020	to 30/09/2019

Net profit/(loss) (PLN'000)	511	227,547	43,462	145,025
Average weighted number of ordinary shares (pcs)	447,558,311	447,558,311	447,558,311	447,558,311
Net profit/(loss) per share (in PLN) - basic	-	0.51	0.09	0.32
Net profit/(loss) per share (in PLN) - diluted	-	0.51	0.09	0.32

Develia S.A. Group

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CONSOLIDATED QUARTERLY REPORT

STATEMENT OF CHANGES IN EQUITY

		Called-up share		Supplementary	Other reserve		Retained
	Share capital		Other capital	profit/(Loss	Total
	capital not paid		capital	funds
				carried forward)


As at 01 January 2020	447,558		-	322,216	-	2,237	176,268	948,279

Net profit/(loss) for the period of 9 months ended 30 September 2020

Other comprehensive income for the period of 9 months ended 30 September 2020

-	-	-	-	-	227,547	227,547
-	-	-	-	-	-	-

Other comprehensive income for the period of 9 months	-	-	-	-	-	227,547	227,547
ended 30 September 2020


Transfer to reserve funds / supplementary capital	-	-	31,307	100,205	-	(131,512)	-
Allocated to the payment of dividend	-	-	-	-	-	(44,756)	(44,756)

As at 30 September 2020	447,558	-	353,523	100,205	2,237	227,547	1,131,070

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		Called-up share		Supplementary	Other reserve		Retained
	Share capital		Other capital	profit/(Loss	Total
	capital not paid		capital	funds
				carried forward)


As at 01 January 2019	447,558		-	324,396	-	2,273	118,661	892,888

Net profit/(loss) for 2019	-		-	-	-	-	176,268	176,268
Other comprehensive income for 2019	-		-	-	-	-	-	-
Total comprehensive income for 2019	-		-	-	-	-	176,268	176,268

Settlement of company merger (1)	-		-	-	-	(36)		(36)
Payment of dividend	-		-	(2,180)	-	-	(118,661)	(120,841)

As at 31 December 2019	447,558		-	322,216	-	2,237	176,268	948,279

Relates to the merger between Develia S.A. and LC Corp Invest XX Sp. z o.o.

		Called-up share		Supplementary	Other reserve		Retained
	Share capital		Other capital	profit/(Loss	Total
	capital not paid		capital	funds
				carried forward)


As at 01 January 2019	447,558		-	324,396	-	2,273	118,661	892,888

Net profit/(loss) for the period of 9 months ended 31 September 2020

Other comprehensive income for the period of 9 months ended 31 September 2020

-	-	-	-	-	145,025	145,025
-	-	-	-	-	-	-

Other comprehensive income for the period of 9 months	-	-	-	-	-	145,025	145,025
ended 30 September 2019


Settlement of company merger (1)	-	-	-	-	(36)	-	(36)
Payment of dividend	-	-	(2,180)	-	-	(118,661)	(120,841)

As at 30 September 2019	447,558	-	322,216	-	2,237	145,025	917,036

Relates to the merger between Develia S.A. and LC Corp Invest XX Sp. z o.o.

DEVELIA S.A. GROUP

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CONSOLIDATED QUARTERLY REPORT

STATEMENT OF CASH FLOWS

		Period of 9 months	Period of 9 months
	Note	ended	ended
		30 September 2020	30 September 2019

A.	Cash flows from operating activities

I.	Pre-tax profit/(loss)	227,301	152,164
II.	Total adjustments	(20,807)	(102,711)

1.	Change in tangible assets and intangible assets	(1,199)	(6,062)
2.	Change in provisions	-	-
3.	Change in inventories	(177,200)	(153,516)
4.	Change in receivables	88,634	(68,160)
5.	Change in liabilities, except for loans and borrowings	51,730	(1,171)
6.	Change in accruals and deferrals	116,871	34,138
7.	Change in financial liabilities	(22,822)	21,856
8.	Change in financial assets	(79,616)	64,894
9.	Change in financial assets resulting from shares	(7,155)	2,613
10.	Income Tax	3,314	(8,544)
11.	Other adjustments	6,636	11,241

III.	Net cash flow from operating activities (l+ll)	206,494	49,453

B.	Cash flows from financing activities
I.	Cash inflows	123,656	81,432
1.	Issue of debt securities	-	60,000
2.	Loans and borrowings	123,656	21,432
II.	Outflows	(219,910)	(190,290)
1.	Redemption of debt securities	(118,000)	(50,000)
2.	Repayment of loans and borrowings	(85,200)	(700)
3.	Payment of liabilities arising from finance lease	(1,721)	(1,764)
4.	Interest	(14,989)	(16,985)
5.	Dividends and payments to shareholders	-	(120,841)

III.	Net cash flows from financing activities (l+ll)	(96,254)	(108,858)
C.	Total net cash flow (A.III+ B.III)	110,240	(59,405)

D.	Balance-sheet change in cash, including:	110,240	(59,405)
E.	Cash at the beginning of period	28,821	120,119

F.	Cash at the end of period (F+D)	139,061	60,714
	- restricted cash	20	-

DEVELIA S.A. GROUP

QR for 3Q 2020

CONSOLIDATED QUARTERLY REPORT

OTHER INFORMATION AND NOTES

3.1 General Information about Issuer

Develia S.A. ("the Issuer", "the "Company") was established by the Notarial Deed dated 3 March 2006. The Company's registered office is situated in Wrocław, Poland, at ul. Powstańców Śląskich 2-4. The Company has been entered into the register of entrepreneurs of the National Court Register maintained by the District Court for Wrocław-Fabryczna in Wrocław, 4th Commercial Division of the National Court Register, under KRS No. 0000253077.

As at 30 June 2020, the shares of Develia S.A. are in public trading.

The Company has been assigned statistical identification number (REGON): 020246398, tax identification number

(NIP): 8992562750.

The Company has been established for an indefinite time. The Company's primary activity includes:

PKD 7415Z Activities of financial holding companies
PKD 4110Z Completion of construction projects related to putting up buildings
PKD 6810Z Buying and selling of own real estate
PKD 4120Z Construction works related to the completion of residential and non-residential buildings

As at the date hereof, there is no parent undertaking of Develia S.A.

Interim Condensed Financial Statements of Develia S.A. cover the period of 9 months ended 30 September 2020. The detailed description of the component parts of the financial statements is included in Section 3.2.

3.2 Rules Adopted for Preparing Quarterly Report

These interim condensed financial statements of Develia S.A. comprise:

Statement of Financial Position as at 30 September 2020 and comparable financial data as at 31 December 2019;
Statement of Comprehensive Income for the three quarters of 2020, i.e. for the period of 9 months, cumulatively from 01 January 2020 to 30 September 2020, as well as comparable data for a corresponding period of the previous year, i.e. from 01 January 2019 to 30 September 2019;
Statement of Cash Flows for the three quarters of 2020, i.e. for the period of 9 months, cumulatively from 01 January 2020 to 30 September 2020, as well as comparable data for a corresponding period of the previous year, i.e. from 01 January 2019 to 30 September 2019;
Statement of Changes in Equity as at 30 September 2020 and comparable data as at 30 September 2019 and as at 31 December 2019;
Notes to the financial statements.

The enclosed condensed financial statements of the Develia S.A. were prepared in accordance with the International Financial Reporting Standards ("IFRS"), in particular with IAS 34 (concerning the preparation of interim financial statements) and IFRS adopted by the EU.

IFRS comprise standards and interpretations accepted by the International Accounting Standard Board ("IASB") and the International Financial Reporting Interpretations Committee ("IFRIC").

DEVELIA S.A. GROUP

QR for 3Q 2020

CONSOLIDATED QUARTERLY REPORT

The interim condensed financial statements of Develia S.A. do not contain all information and disclosures required in the annual separate financial statements and they must be read together with the annual financial statements of Develia S.A. for the year ended 31 December 2019.

The Interim Condensed Financial Statements are presented in thousand zlotys ("PLN"), and all values included in the tables and descriptions, if not indicated otherwise, are given in PLN'000.

The interim condensed financial statements of Develia S.A. were prepared on the going concern assumption, i.e. the continuation of the Company's business activity in the foreseeable future. As at the day of the approval of these statements, there were no circumstances identified implying any threats to the continuation of the Company's activity.

The information on the accounting principles adopted by the Issuer was presented in the annual financial statements of Develia S.A. for the year ended 31 December 2019, published on 12 March 2020.

The information about new standards and interpretations is included in item 3.5 and 3.6.

3.3 Approval of Interim Condensed Financial Statements

These interim condensed financial statements of Develia S.A. were approved by the Management Board for publication on 16 November 2020.

3.4 Information on Material Estimates and Professional Judgement

The Company's Management Board applied their best knowledge regarding not only the standards and interpretations used, but also the methods and principles of valuation of individual items of the enclosed financial statements. Preparing the financial statements in accordance with IFRS required the Company's Management Board to make some assessments and assumptions, which are reflected in these statements. Actual results may vary from these estimates. The financial data for the three quarters of 2020 presented herein was not subject to auditor's examination.

Professional Judgement

Classification of Lease Agreements

The Company classifies lease according to IFRS 16.

Uncertainty of Estimates

The basic assumptions concerning the future have been discussed below as well as other key reasons for doubts occurring at the end of the reporting period and entailing a significant risk of considerable adjustment of the net book value of assets and liabilities in the following reporting period.

Deferred Tax Asset

The Company recognises a deferred tax asset based on the assumption that a tax profit enabling its utilisation should be obtained in the future. Worse tax results obtained in the future could have the effect that this assumption might become groundless. Deferred income tax is presented in Note 3.12.

DEVELIA S.A. GROUP

QR for 3Q 2020

CONSOLIDATED QUARTERLY REPORT

Write-downs of shares held in subsidiary undertakings

At the end of each reporting period, the Management Board verifies if there is any evidence pointing to the impairment of the shares in subsidiary undertakings.

If the verification reveals the existence of such impairment, the Management Board writes down these assets to their recoverable value. The recoverable value of an asset can be defined as being the higher one of the two values: fair value less costs to sell or value in use.

The value in use is estimated with the DCF method or with the hybrid model: net assets and discounted revenues (discounted dividends). The DCF method is based on discounted cash flows generated by the subsidiary undertakings within the approved investment schedules and proceeds from the sale of flats, taking into consideration the sale price of 1 square metre of usable floor space in accordance with the current market situation and prices. The discount rate takes account of the weighted average cost of external and own capital (WACC).

The recoverable value of shares and the amount of their write-downs were estimated as at 30 September 2020 and may be subject to a change depending on the fluctuations of the market prices of land, sale prices of flats, constructions costs, project completion schedules and discount rate calculations in the future.

The actual results may vary from these estimates, which were calculated on the grounds of the data available as at the reporting date. It is also related to the uncertainty regarding the proper estimation of the market conditions in the following years. Consequently, the amount of write-downs may change in the following accounting periods. Write- downs of shares are presented in Note 3.10.

Write-Downs of Borrowings Granted to Subsidiary Undertakings

The Management Board conducts an analysis at the end of every reporting period aimed at checking whether borrowings granted fit the asset maintenance model with a view to achieving contractual cash flows. Depending on the result of SPPI test, borrowings are classified either as financial assets measured at amortised cost or financial assets measured at fair value through profit or loss.

The table below presents estimates as at 30 September 2020 and as at 31 December 2019.

	30 September 2020	31 December 2019

Deferred tax asset	-	-
Deferred tax liability	17,202	17,448
Write-downs of shares and stocks	(29,106)	(36,741)

Uncertainty Associated with Tax Settlements

Consequently, amounts presented and disclosed in financial statements may change in the future as a result of a final decision of a tax audit authority.

DEVELIA S.A. GROUP

QR for 3Q 2020

CONSOLIDATED QUARTERLY REPORT

order to achieve a tax advantage, contrary - under given circumstances - to the object and purpose of the provisions of the tax act. In accordance with GAAR, such an action does not result in the tax advantage, if the operation was artificial. Any occurrence of (i) unjustified separation of operations, (ii) involvement of intermediary entities despite the lack of economic justification, (iii) elements that null or compensate each other and (iv) other actions having a similar effect to the previously mentioned, may be treated as a premise of artificial operations subject to GAAR. New regulations will require a much greater degree of professional judgement in assessing the tax consequences of individual transactions.

The Company recognises and measures the assets or liabilities in respect of current and deferred income tax in compliance with the requirements of IAS 12, Income Tax on the basis of the profit (tax loss), tax base, unrelieved tax losses, unused tax exemptions and tax rates, taking into account the uncertainty associated with tax settlements.

3.5 Significant Accounting Principles (Policies)

The accounting principles (policies) applied to the preparation of these financial statements are consistent with those adopted to draw up the financial statements for the year ended 31 December 2019, save for the following principles. The below changes to IFRS have been applied to these financial statements as of the date of their entry into force:

Amendments to IAS 1 "Presentation of Financial Statements" and IAS 8 "Accounting Policies, Changes in
Accounting Estimates and Errors" - Definition of Materiality - approved by the EU on 29 November 2019 (applicable to annual periods beginning on or after 1 January 2020);
Amendments to IFRS 3, "Business Combinations" - Definition of a Business - approved in the EU on 21 April 2020 (applicable to combinations for which the acquisition date is at the beginning of the first annual reporting period beginning on or after 1 January 2020 and to asset acquisitions that occur on or after the beginning of the aforesaid period);
Amendments to IFRS 9 "Financial Instruments", IAS 39 "Financial Instruments: Recognition and
Measurement" and IFRS 7 "Financial Instruments: Disclosures" - Interest Rate Benchmark Reform - approved in the EU on 15 January 2020 (applicable to annual periods beginning on or after 1 January 2020);
Amendments to References to the Conceptual Framework in IFRS - approved by the EU on 29 November 2019 (applicable to annual periods beginning on or after 1 January 2020).

The adoption of the standards and amendments to existing standards, as mentioned above, did not exert any considerable impact on the financial statements.

DEVELIA S.A. GROUP

QR for 3Q 2020

CONSOLIDATED QUARTERLY REPORT

3.6 New Standards and Interpretations Published But Not Effective Yet

New standards and amendments to the existing standards which have been already issued by the IFRIC and approved by the EU, but are not in force yet:

New standards and amendments to the existing standards which have been already issued by the IFRIC, but which have not been approved for application within the EU yet

Currently, IFRS in the form approved by the EU do not differ significantly from regulations issued by the International Financial Reporting Interpretations Committee ("IFRIC"), except for the following new standards and amendments to standards which as at [the date of the publication of these statements] were not approved for application within the EU (the below entry into force dates relate to the full version of standards):

IFRS 14, "Regulatory Deferral Accounts" (applicable to annual periods beginning on or after 1 January 2016) - the European Commission decided not to initiate the process of approving this temporary standard for application within the EU before the release of the final version of IFRS 14;
IFRS 17 "Insurance Contracts", with further amendments to IFRS 17, (applicable to annual periods beginning on or after 01 January 2023);
Amendments to IAS 1 "Presentation of Financial Statements" - Classification of Liabilities as Current or Non- current (applicable to annual periods beginning on or after 01 January 2023);
Amendments to IAS 16 "Property, Plant and Equipment" - Proceeds Before Intended Use (applicable to annual periods beginning on or after 1 January 2022);
Amendments to IAS 37 "Provisions, Contingent Liabilities and Contingent Assets" - Onerous Contracts - Cost of Fulfilling a Contract (applicable to annual periods beginning on or after 1 January 2022);
Amendments to IFRS 3 "Business Combinations" - Amendments to References to the Conceptual Framework including amendments to IFRS 3 (applicable to annual periods beginning on or after 1 January 2022);
Amendments to IFRS 4 "Insurance Contracts" - the Extension of the Temporary Exemption from Applying IFRS 9 (the expiry date for the temporary exemption from IFRS 9 was extended to annual periods beginning on or after 1 January 2023);
Amendments to IFRS 10 "Consolidated Financial Statements" and IAS 28 "Investments in Associates and Joint Ventures" - Sale or Contribution of Assets between an Investor and its Associate or Joint Venture and subsequent amendments (the date of entry into force of the amendments was postponed until research works on the equity method have been completed);
Amendments to IFRS 16 "Lease"- Covid-19-Related Rent Concessions (applicable to annual periods beginning on or after 1 June 2020. Early application is permitted also for financial statements which have not been approved yet for publication on 28 May 2020. This amendment applies also to interim reports).
Amendments to miscellaneous standards "Improvements to IFRS (the 2018-2020 cycle)" - amendments made as part of the IFRS Annual Improvement Process (IFRS 1, IFRS 9, IFRS 16 and IAS 41) are designed mainly to deal with non-conformitiesand ensure the consistency of terminology (amendments to IFRS 1, IFRS 9 and IAS 41 are applicable to annual periods beginning on or after 1 January 2022. Amendments to IFRS 16 concern only an illustrative example, hence no entry into force date has been set).

The Company is in the process of verification of the impact of the other above-mentioned standards on its financial situation, performance and the scope of information presented in financial statements.

According to the Company's estimates, the above-mentioned new standards and amendments to existing standards would not have had major impact on the financial statements if they had been applied by the Company at the balance- sheet date.

DEVELIA S.A. GROUP

QR for 3Q 2020

CONSOLIDATED QUARTERLY REPORT

3.7 Seasonal or Cyclical Character of Issuer's Operations

The Company's operations are not seasonal by nature. They are related to the investment cycles of the implemented property development projects, which is particularly noticeable in the recognition of the proceeds from the sale of residential and retail premises. In accordance with IFRS 15, such proceeds can only be recognised when practically all risks and benefits related to given premises have been transferred to the client and the revenue can be measured in a reliable manner. Consequently, the sales results in a given period depend on the value of the premises transferred to the clients in accordance with the above definition.

3.8 Information about Write-Downs of Inventory to Net Realisable Value and Reversal of Write-Downs in This Respect

	30 September 2020	31 December 2019
Work in progress	709,469	534,055
Finished products	1,215	-
Value adjustment for right of perpetual usufruct to land according to IFRS 16	9,420	8,849
Write-downs of Inventories	-	-

Total inventories	720,104	542,904

During the period of 9 months ended 30 September 2020 there were no write-downs of inventory to the net realisable value.

3.9 Information about Write-Downs Resulting from Impairment Loss of Financial Assets, Property, Plant and Equipment, Intangible Assets or Other Assets and Reversal of Such Write-Downs

As regards write-downs on financial assets, property, plant and equipment, intangible assets, amounts receivable and other assets in the period of 9 months ended 30 September 2020, there were no significant changes compared with the previous year, except for revaluation write-downs of shares which changed as presented in the below table:

At the beginning of the reporting period

Increase

Used

Decrease

At the end of the reporting period

Period of 9 months	Year ended 31
ended
December 2019
30 September 2020

(36,741)	(41,368)

(34)	(3,155)
402	131
7,267	7,651

(29,106)	(36,741)

DEVELIA S.A. GROUP

QR for 3Q 2020

CONSOLIDATED QUARTERLY REPORT

3.10 Information about Creating, Increasing, Utilising and Reversing Provisions

The amounts of provisions and the reconciliation presenting the changes in their position during the year/period are shown in the table below:

	Retirement and		Remedy of
	disability benefits	Disputes and
	construction	Total
	and bereavement	litigation
	faults and defects
	payment


As at 01 January 2020	19	-	-	19

Created	-	-	-	-
Used	-	-	-	-
Reversed	-	-	-	-

As at 30 September 2020, including:	19	-	-	19


- non-current	19	-	-	19
- current	-	-	-	-

3.11 Information about Deferred Tax Liabilities and Deferred Tax Assets

Deferred income tax arises from the following items:

Statement of financial position	Deferred income tax expense
for the period ended

30 September	31 December	01 January	30 September	31 December
2020	2019	2019	2020	2019

Deferred tax liability

Accrued interest, discount on borrowings and deposits

Difference in the value of tangible assets (tax and balance- sheet depreciation)

Shares in limited partnerships

Temporary differences relating to sales of finished products Other

(1,868)	(992)	(1,538)	(876)	546
(80)	(83)	(62)	3	(21)
(27,670)	(22,575)	(1,149)	(5,095)	(21,426)
(977)	-	-	(977)	-
(562)	(390)	(290)	(172)	(100)

Gross deferred tax liability	(31,157)	(24,040)	(3,039)
Deferred tax assets


Shares in limited partnerships	-	-	-	-	-
Provisions and prepayments and accrued income	1,299	2,081	1,891	(782)	190
Accrued interest, discount on borrowings and bond discount	3,716	3,327	3,572	389	(245)
Write-downs of shares held in subsidiary undertakings	-	-	-	-	-
Losses potentially deductible from future taxable income	7,564	1,184	2,368	6,380	(1,184)
Other	1,376	-	-	1,376	-

Gross deferred tax assets	13,955	6,592	7,831



Deferred tax expense				246	(22,240)

Net deferred tax asset	-	-	4,792



Net deferred tax liability	(17,202)	(17,448)	-

DEVELIA S.A. GROUP

QR for 3Q 2020

CONSOLIDATED QUARTERLY REPORT

3.12 Information about Significant Purchase and Sale Transactions Regarding Property, Plant and Equipment

In the period of 9 months ended 30 September 2020, the Company acquired property, plant and equipment in the amount of PLN 141,000 (in the period of 9 months ended 30 September 2019: PLN 837,000).

In the period of 9 months ended 30 September 2020, the Company entered into a lease agreement for 13 passenger cars and a tenancy agreement for offices in Warsaw. The value of recognised right-of-use assets was PLN 452,000 and PLN 2,622,000 respectively.

In the period of 9 months ended 30 September 2020, the Company sold items of property, plant and equipment earning the revenue in the total amount of PLN 54,000 (in the period of 9 months ended 30 September 2019 the revenue generated in that respect was PLN 17,000).

As at 30 September 2020, there were no significant liabilities on account of the purchase of property, plant or equipment.

As at 30 September 2020 and 31 December 2019, no item of tangible assets was used as collateral, was subject to encumbrance or was mortgaged.

3.13 Information about Significant Liabilities on Account of the Purchase of Property, Plant and Equipment

As at 30 September 2020, there were no significant liabilities on account of the purchase of property, plant or equipment.

3.14 Information about Significant Settlements on Account of Litigation

As at 30 September 2020, there were no significant proceedings before the court or arbitration or public administration authorities with regard to liabilities or receivables of Develia S.A., the value of which would have an important bearing on the financial standing of the Company. The Company is a party to court and public administration proceedings whose value is insignificant for its operations or financial standing. Each case is examined individually in terms of its relevance for the company.

3.15 Disclosure of Correction of Errors of Previous Periods

During the period of 9 months ended 30 September 2020 there were no corrections of errors of the previous periods.

3.16 Information about Changes in Economic Situation and Conditions for Running Business Activity Which

Have Considerable Impact on Fair Value of Issuer's Financial Assets and Financial Liabilities,

Regardless of Whether Such Assets and Liabilities Are Recognised at Fair Value or at Adjusted Purchase Price (Depreciated Cost)

The description can be found in item 2.20.

3.17 Information about Failure to Repay Loan or Borrowing or Infringement of Material Provisions of Loan or Borrowing Agreement With Regard to Which No Corrective Actions Were Taken by the End of the Reporting Period

None occurred.

DEVELIA S.A. GROUP

QR for 3Q 2020

CONSOLIDATED QUARTERLY REPORT

3.18 Information on Single or Many Transactions Concluded by Issuer or Its Subsidiary Undertaking with

Related Entities (If Made on Terms Other Than at Arm's Length)

During the period of 9 months ended 30 September 2020 the Issuer did not conclude any transactions with related entities, which were effected on the terms other than at arm's length.

Transactions with related entities for Develia S.A. are presented in item 3.19.

3.19 Transactions of Develia S.A. with Related Entities

Related undertaking

01/01/2020 - 30/09/2020

30/09/2020

Sale

Purchases

Financial income (interest, dividends)

Financial expenses (interest, discounts)

Trade and other receivables

Trade and other payables

Borrowings and non- current receivables and current financial assets

Financial Liabilities

Shareholders	-	-	-	-	-	-	-	-
Subsidiary undertakings
Arkady Wrocławskie S.A.	1,286	1,938	411	241	160	13	24,062	6,424

Sky Tower S.A.	2,106	1	295	-	244	-	15,000	-

Warszawa Przyokopowa Sp. z o.o.	2,418	86	131,300	2,775	12	-	-	98,469

Kraków Zielony Złocień Sp. z o.o.	967	-	58,149	-	118	1,572	3,559	-

LC Corp Invest I Sp. z o.o.	51	-	416	-	6	-	11,903	-

LC Corp Invest II Sp.z o.o.	71	-	14	-	11	-	619	-

LC Corp Invest III Sp. z o.o.	144	-	6,175	-	9	14,222	5,435	-

LC Corp Invest VII Sp. z o.o.	313	-	5,769	-	79	-	16,388	-

LC Corp Invest VIII Sp.z o.o.	1,105	31	10,300	-	182	11	-	-

LC Corp Invest IX Sp.z o.o.	252	-	268	-	19	-	10,856	-

LC Corp Invest X Sp.z o.o	927	22	8,052	-	82	6	7,052	-

LC Corp Invest XI Sp.z o.o.	18	-	-	-	1	-	-	-

LC Corp Invest XII Sp. z o.o.	464	20	14,853	-	59	6	-	-

LC Corp Invest XV Sp. z o.o.	42	-	1,232	-	5	-	-	-

LC Corp Invest XV Sp. z o.o.Projekt 1 Sp.k	-	-	-	-	-	-	-	-

LC Corp Invest XV Sp. z o.o.Projekt 2 Sp.k	1,454	40	-	-	114	12	-	-

LC Corp Invest XV Sp. z o.o.Projekt 3 Sp.k	-	-	-	-	-	-	-	-

LC Corp Invest XV Sp. z o.o.Projekt 4 Sp.k	516	-	-	-	66	-	-	-

LC Corp Invest XV Sp. z o.o.Projekt 5 Sp.k	-	-	-	-	-	-	-	-

LC Corp Invest XV Sp. z o.o.Projekt 6 Sp.k	227	-	-	-	19	-	-	-

LC Corp Invest XV Sp. z o.o.Projekt 7 Sp.k	202	51	-	-	23	7	-	-

LC Corp Invest XV Sp. z o.o.Projekt 8 Sp.k	697	-	-	-	74	-	-	-

LC Corp Invest XV Sp. z o.o.Projekt 9 Sp.k	193	-	-	-	30	-	-	-

LC Corp Invest XV Sp. z o.o.Projekt 10 Sp.k	211	-	-	-	14	-	-	-

LC Corp Invest XV Sp. z o.o.Projekt 11 Sp.k	307	-	-	-	17	-	-	-

LC Corp Invest XV Sp. z o.o.Projekt 12 Sp.k.	-	-	-	-	-	-	-	-

LC Corp Invest XV Sp. z o.o.Projekt 14 Sp.k.	-	-	-	-	-	-	-	-

LC Corp Invest XV Sp. z o.o.Finance S.K.A.	-	-	-	-	-	-	-	-

LC Corp Invest XV Sp. z o.o.Investments	15	-	-	-	1	-	-	-
S.K.A.

LC Corp Invest XVI Sp. z o.o.	15	-	-	-	1	-	-	-

DEVELIA S.A. GROUP

QR for 3Q 2020

CONSOLIDATED QUARTERLY REPORT

LC Corp Invest XVII Sp. z o.o.	15	-	500	-	1	-	-	-

LC Corp Invest XVII Sp. z o.o.Projekt 20 Sp.k	111	-	-	3,088	15	-	-	85,256

LC Corp Invest XVII Sp. z o.o.Projekt 21 Sp.k	107	-	-	-	13	-	-	-

LC Corp Invest XVII Sp. z o.o.Projekt 22 Sp.k	1,045	7	-	-	134	5	-	-

LC Corp Invest XVIII Sp. z o.o.	-	-	-	-	-	-	-	-

LC Corp Invest XVIII Sp. z o.o. Real Estate	-	-	-	-	-	-	-	-
S.K.A.

LC Corp Invest XIX Sp. z o.o. in liquidation	2	-	42	-	-	-	-	-

LC Corp Invest XX Sp. z o.o.	-	-	-	-	-	-	-	-

LC Corp Invest XXI Sp. z o.o.	71	28	384	-	8	-	11,789	-


LC Corp Invest XXII Sp. z o.o.	15	-	-	-	3	-	-	-


LC Corp Invest XXIII Sp. z o.o. in liquidation	2	-	30	-	-	-	-	-


LC Corp Invest XXIV Sp. z o.o.	20	-	-	362	4	-	-	11,104


LC Corp Invest Service S.A.	242	-	-	-	21	-	-	-


Develia Invest Sp. z o.o.	57	-	854	-	7	-	24,327	-

Undertakings related through	-	-	-	-	-	-	-	-
shareholders


Management and Supervisory Board					-	-	-	-

Management Board	-	7,193 (*)	-	-	-	-	-	-
Supervisory Board	-	707 (*)	-	-	-	-	-	-

Remuneration paid

	01/01/2019 - 31/12/2019	31/12/2019

Related undertaking

Sale	Purchases	Financial income (interest, dividends)	Financial expenses (interest, discounts)	Trade and other receivables	Trade and other payables	Borrowings and non- current receivables and current financial assets	Financial Liabilities

Shareholders	-	-	-	-	-	-	-	-
Subsidiary undertakings
Arkady Wrocławskie S.A.	2,247	2,565	420	210	776	290	21,597	6,023

Sky Tower S.A.	3,608	2	-	-	1,896	18	-	-

Warszawa Przyokopowa Sp. z o.o.	1,661	853	-	1,394	550	69	-	66,004

Kraków Zielony Złocień Sp. z o.o.	1,709	267	89,507	-	344	10	-	-

LC Corp Invest I Sp. z o.o.	86	-	4,010	-	29	-	11,640	-

LC Corp Invest II Sp.z o.o.	51	-	3	-	11	6	253	-

LC Corp Invest III Sp. z o.o.	314	-	601	-	46	-	5,331	-

LC Corp Invest VII Sp. z o.o.	271	-	10,412	-	53	-	15,381	-

LC Corp Invest VIII Sp.z o.o.	1,241	29	406	-	267	13	-	-

	362	-	-		199	-	-	-
LC Corp Invest IX Sp.z o.o.				-
LC Corp Invest X Sp.z o.o	4,064	6,811	55,437	-	107	8	-	-

LC Corp Invest XI Sp.z o.o.	37	-	-	-	17	-	-	-

LC Corp Invest XII Sp. z o.o.	805	-	26,437	-	107	43	-	-

LC Corp Invest XV Sp. z o.o.	43	-	453	-	5	13	-	-

LC Corp Invest XV Sp. z o.o.Projekt 1	52	-	-	-	-	-	-	-
Sp.k
LC Corp Invest XV Sp. z o.o.Projekt 2	2,085	332	-	-	395	171	-	-
Sp.k
LC Corp Invest XV Sp. z o.o.Projekt 3	37	-	-	-	-	-	-	-
Sp.k
LC Corp Invest XV Sp. z o.o.Projekt 4	1,184	-	-	-	183	-	-	-

DEVELIA S.A. GROUP

QR for 3Q 2020

CONSOLIDATED QUARTERLY REPORT

Sp.k

LC Corp Invest XV Sp. z o.o.Projekt 5	43	-	-	-	-	-	-	-
Sp.k
LC Corp Invest XV Sp. z o.o.Projekt 6	684	15	-	-	54	12	-	-
Sp.k
LC Corp Invest XV Sp. z o.o.Projekt 7	205	51	-	-	62	7	-	-
Sp.k
LC Corp Invest XV Sp. z o.o.Projekt 8	595	-	-	-	201	-	-	-
Sp.k
LC Corp Invest XV Sp. z o.o.Projekt 9	754	-	-	-	61	75	-	-
Sp.k
LC Corp Invest XV Sp. z o.o.Projekt 10	696	1	-	-	56	56	-	-
Sp.k
LC Corp Invest XV Sp. z o.o.Projekt 11	986	-	-	-	71	-	-	-
Sp.k
LC Corp Invest XV Sp. z o.o.Projekt 12	6	-	-	-	-	-	-	-
Sp.k.
LC Corp Invest XV Sp. z o.o.Projekt 14	27	-	-	-	-	-	-	-
Sp.k.
LC Corp Invest XV Sp. z o.o.Finance	6	-	-	-	-	-	-	-
S.K.A.
LC Corp Invest XV Sp. z o.o.Investments	30	39	-	-	5	33	-	-
S.K.A.
LC Corp Invest XVI Sp. z o.o.	28	-	-	-	10	-	-	-

LC Corp Invest XVII Sp. z o.o.	26	-	3	-	8	-	-	-

LC Corp Invest XVII Sp. z o.o.Projekt 20	2,596	-	55,000	174	979	-	-	82,629
Sp.k
LC Corp Invest XVII Sp. z o.o.Projekt 21	1,833	-	-	-	329	-	-	-
Sp.k
LC Corp Invest XVII Sp. z o.o.Projekt 22	1,077	-	-	-	548	-	-	-
Sp.k
LC Corp Invest XVIII Sp. z o.o.	2	-	-	-	-	-	-	-

LC Corp Invest XVIII Sp. z o.o. Real	-	3	-	-	-	-	-	-
Estate S.K.A.
LC Corp Invest XIX Sp. z o.o.	22	-	16	-	3	-	-	-

LC Corp Invest XXI Sp. z o.o.	94	4	549	-	10	19	11,512	-

LC Corp Invest XXII Sp. z o.o.	28	25	8	-	2	-	-	-

LC Corp Invest XXIII Sp. z o.o.	20	-	-	-	17	-	-	-

LC Corp Invest XXIV Sp. z o.o.	44	20,480	78	-	-	-	-	-

LC Corp Invest Service S.A.	351	-	-	-	64	-	-	-

Develia Invest Sp. z o.o.	27,592	792	180	-	899	-	20,672	-

Undertakings related through	-	-	-	-	-	-	-	-
shareholders

Management and Supervisory Board
Management Board	-	14,213(*)	-	-	-	-	-	-

Supervisory Board	-	627 (*)	-	-	-	-	-	-

Remuneration paid

Related undertaking

01/01/2019 - 30/09/2019

30/09/2019

Sale

Purchases

Financial income (interest, dividends)

Financial expenses (interest, discounts)

Trade and other receivables

Trade and other payables

Borrowings and non- current receivables and current financial assets

Financial Liabilities

Shareholders	-	-	-	-	-	-	-	-
Subsidiary undertakings
Arkady Wrocławskie S.A.	1,307	2,056	735	239	540	245	22,171	6,056

DEVELIA S.A. GROUP

QR for 3Q 2020

CONSOLIDATED QUARTERLY REPORT

Sky Tower S.A.	2,049	-	-	-	517	-	-	-

Warszawa Przyokopowa Sp. z o.o.	973	642	-	2,215	200	-	-	66,967

Kraków Zielony Złocień Sp. z o.o.	1,255	136	52,039	-	237	-	37,818	-

LC Corp Invest I Sp. z o.o.	51	-	3,992	-	6	-	40,962	-

LC Corp Invest II Sp.z o.o.	43	-	2	-	10	-	102	-

LC Corp Invest III Sp. z o.o.	231	-	450	-	55	-	12,518	-

LC Corp Invest VII Sp. z o.o.	173	-	4,880	-	38	-	20,165	-

LC Corp Invest VIII Sp.z o.o.	878	13	302	-	224	14	8,244	-

LC Corp Invest IX Sp.z o.o.	153	-	-	-	43	-	-	-

LC Corp Invest X Sp.z o.o	3,840	6,789	43,237	-	118	15	-	-

LC Corp Invest XI Sp.z o.o.	15	-	-	-	1	-	-	-

LC Corp Invest XII Sp. z o.o.	689	-	26,437	-	78	-	-	-

LC Corp Invest XV Sp. z o.o.	42	-	453	-	6	-	-	-

LC Corp Invest XV Sp. z o.o.Projekt 1 Sp.k	52	-	-	-	-	-	-	-

LC Corp Invest XV Sp. z o.o.Projekt 2 Sp.k	1,512	138	-	-	302	44	-	-

LC Corp Invest XV Sp. z o.o.Projekt 3 Sp.k	37	-	-	-	-	-	-	-

LC Corp Invest XV Sp. z o.o.Projekt 4 Sp.k	905	-	-	-	163	-	-	-

LC Corp Invest XV Sp. z o.o.Projekt 5 Sp.k	43	-	-	-	-	-	-	-

LC Corp Invest XV Sp. z o.o.Projekt 6 Sp.k	582	15	-	-	102	-	-	-

LC Corp Invest XV Sp. z o.o.Projekt 7 Sp.k	135	34	-	-	44	7	-	-

LC Corp Invest XV Sp. z o.o.Projekt 8 Sp.k	330	-	-	-	86	-	-	-

LC Corp Invest XV Sp. z o.o.Projekt 9 Sp.k	650	-	-	-	112	-	-	-

LC Corp Invest XV Sp. z o.o.Projekt 10 Sp.k	616	1	-	-	124	-	-	-

LC Corp Invest XV Sp. z o.o.Projekt 11 Sp.k	837	-	-	-	90	-	-	-

LC Corp Invest XV Sp. z o.o.Projekt 12 Sp.k.	6	-	-	-	-	-	-	-

LC Corp Invest XV Sp. z o.o.Projekt 14 Sp.k.	27	-	-	-	-	-	-	-

LC Corp Invest XV Sp. z o.o.Finance S.K.A.	6	-	-	-	-	-	-	-

LC Corp Invest XV Sp. z o.o.Investments	42	30	-	-	5	10	-	-
S.K.A.

LC Corp Invest XVI Sp. z o.o.	15	-	-	-	1	-	-	-

LC Corp Invest XVII Sp. z o.o.	15	-	2	-	1	-	462	-

LC Corp Invest XVII Sp. z o.o.Projekt 20 Sp.k	1,545	-	55,000	-	55,055	-	-	-

LC Corp Invest XVII Sp. z o.o.Projekt 21 Sp.k	1,460	-	-	-	31	-	-	-

LC Corp Invest XVII Sp. z o.o.Projekt 22 Sp.k	468	-	-	-	144	-	-	-

LC Corp Invest XVIII Sp. z o.o.	2	-	-	-	-	-	-	-

LC Corp Invest XVIII Sp. z o.o. Real Estate	-	3	-	-	-	-	-	-
S.K.A.

LC Corp Invest XIX Sp. z o.o. in liquidation	15	-	18	-	1	-	-	-

LC Corp Invest XX Sp. z o.o.	-	-	-	-	-	-	-	-

LC Corp Invest XXI Sp. z o.o.	87	-	398	-	16	-	10,957	-


LC Corp Invest XXII Sp. z o.o.	15	25	8	-	1	-	-	-


LC Corp Invest XXIII Sp. z o.o. in liquidation	15	-	-	-	1	-	-	-


LC Corp Invest XXIV Sp. z o.o.	21	20,480	82	-	7	-	-	-


LC Corp Invest Service S.A.	235	-	-	-	48	-	-	-


Develia Invest Sp. z o.o.	9	-	-	-	2	-	10	-

Undertakings related through	-	-	-	-	-	-	-	-
shareholders


Management and Supervisory Board					-	-	-	-

Management Board	-	10,352	-	-	-	-	-	-
(*)

Supervisory Board	-	459 (*)	-	-	-	-	-	-

Remuneration paid

DEVELIA S.A. GROUP

QR for 3Q 2020

CONSOLIDATED QUARTERLY REPORT

3.20 Information about Change in the Way (Method) of Determining Fair Value for Financial Instruments Measured at Fair Value

None occurred.

3.21 Information about Change in Classification of Financial Assets Resulting From Change in Purpose or Utilisation of Such Assets

None occurred.

3.22 Financial Liabilities

3.22.1 Interest-bearing Loans, Borrowings, Bonds and Investment Notes

Non-current	Interest rate	Repayment date	30 September	31 December
2020	2019

Bond scheme (a)	Wibor 6M+margin	20 Mar 2020	-	-
Bond scheme (b)	Wibor 6M+margin	10 May 2021	-	84,899
Bond scheme (c)	Wibor 6M+margin	10 May 2021	-	14,990
Bond scheme (d)	Wibor 6M+margin	6 Oct 2021	24,987	24,978
Bond scheme (e)	Wibor 6M+margin	6 Oct 2021	14,978	14,962
Bond scheme (f)	Wibor 6M+margin	5 Jun 2022	49,841	49,770
Bond scheme (g)	Wibor 6M+margin	28 Feb 2022	44,879	44,815
Bond scheme (h)	Wibor 6M+margin	19 Oct 2020	-	-
Bond scheme (i)	Wibor 3M+margin	19 Oct 2022	19,903	65,561
Bond scheme (j)	Wibor 3M+margin	22 May 2023	59,628	59,519
Investment notes (k)	IRS 2Y of 08/03/2012+margin	30 Nov 2021	6,265	6,023
Investment notes (l)	Wibor 1M of 07/12/2010+margin	09 Dec 2022	45,757	44,305
Borrowing (m)	EURIBOR 1M+margin	indefinite	23,441	21,699
Borrowing (n)	Wibor 6M+margin	indefinite	85,256	82,629
Borrowing (o)	Wibor 6M+margin	indefinite	11,104	-
Borrowing (p)	EURIBOR 1M+margin	indefinite	25,621	-
Borrowing (q)	Wibor 6M+margin	indefinite	2,688	-

			414,348	514,150

Current	Interest rate	Repayment date	30 September	31 December
2020	2019

Bond scheme (a)	Wibor 6M+margin	20 Mar 2020	-	65,886
Bond scheme (b)	Wibor 6M+margin	10 Nov 2020 /	86,213	618
10 May 2021

Bond scheme (c)	Wibor 6M+margin	10 Nov 2020 /	15,218	109
10 May 2021

Bond scheme (d)	Wibor 6M+margin	06 Oct 2020	480	309
Bond scheme (e)	Wibor 6M+margin	06 Oct 2020	287	184
Bond scheme (f)	Wibor 6M+margin	05 Dec 2020	543	166
Bond scheme (g)	Wibor 6M+margin	28 Feb 2021	132	757
Bond scheme (h)	Wibor 6M+margin	19 Oct 2020	27,416	34,157
Bond scheme (i)	Wibor 3M+margin	19 Oct 2020	144	693
Bond scheme (j)	Wibor 3M+margin	23 Nov 2020	227	342
Investment notes (k)	IRS 2Y of 08/03/2012+margin	30 Nov 2021	-	-

DEVELIA S.A. GROUP

QR for 3Q 2020

CONSOLIDATED QUARTERLY REPORT

Investment notes (l)	Wibor 1M of 07/12/2010+margin	09 Dec 2022	-	-
Borrowing (m)	EURIBOR 1M+margin	indefinite	-	-
Borrowing (n)	Wibor 6M+margin	indefinite	-	-
Borrowing (o)	Wibor 6M+margin	indefinite	-	-
Borrowing (p)	EURIBOR 1M+margin	indefinite	-	-
Borrowing (q)	Wibor 6M+margin	indefinite	-	-

			130,660	103,221

Coupon bonds - the issue of 20 March 2015, including 65,000 five-year unsecured coupon bonds of PLN 1,000 each and a total nominal value of PLN 65,000,000 under a Bond Issue Agreement concluded with the banks Pekao S.A., having its registered office in Warsaw, and mBank S.A., having its registered office in Warsaw. On 20 March 2020, the Company redeemed the bonds.
Coupon bonds - the issue of 10 May 2016, including 85,000 five-year unsecured coupon bonds of PLN 1,000 each and a total nominal value of PLN 85,000,000 under a Bond Issue Agreement with the redemption date set at 10 May 2021 concluded with the banks Pekao S.A., having its registered office in Warsaw, and mBank S.A., having its registered office in Warsaw.
On 23 December 2016, the assimilation of the bonds of the series in question with the bonds issued on 19 August
2016 took place on the "Catalyst" bond market.
Coupon bonds - the issue of 19 August 2016, including 15,000 five-year unsecured coupon bonds of PLN 1,000 each and a total nominal value of PLN 15,000,000 under a Bond Issue Agreement with the redemption date set at 10 May 2021 concluded with the banks Pekao S.A., having its registered office in Warsaw, and mBank S.A., having its registered office in Warsaw.
On 23 December 2016, the assimilation of the bonds of the series in question with the bonds issued on 10 May
2016, took place on the "Catalyst" bond market.
Coupon bonds - the issue of 6 October 2016, including 25,000 five-year unsecured coupon bonds of PLN 1,000 each and a total nominal value of PLN 25,000,000 under a Bond Issue Agreement with the redemption date set at 6 October 2021 concluded with the banks Pekao S.A., having its registered office in Warsaw, and mBank S.A., having its registered office in Warsaw. On 25 April 2017, the assimilation of the bonds of the series in question with the bonds issued on 27 October 2016 took place on the "Catalyst" bond market.
Coupon bonds - the issue of 27 October 2016, including 15,000 five-year unsecured coupon bonds of PLN 1,000 each and a total nominal value of PLN 15,000,000 under a Bond Issue Agreement with the redemption date set at 6 October 2021 concluded with the banks Pekao S.A., having its registered office in Warsaw, and mBank S.A., having its registered office in Warsaw. On 25 April 2017, the assimilation of the bonds of the series in question with the bonds issued on 6 October 2016, took place on the "Catalyst" bond market.
Coupon bonds - the issue of 5 December 2017, including 50,000 five-year unsecured coupon bonds of PLN 1,000 each and a total nominal value of PLN 50,000,000 under a Bond Issue Agreement with the redemption date set at 5 June 2022 concluded with the banks Pekao S.A., having its registered office in Warsaw, and mBank S.A., having its registered office in Warsaw.
Coupon bonds - the issue of 28 February 2018, including 45,000 four-year unsecured coupon bonds of PLN 1,000 each and a total nominal value of PLN 45,000,000 under a Bond Issue Agreement with the redemption date set at 28 February 2022 concluded with the banks Pekao S.A., having its registered office in Warsaw, and mBank S.A., having its registered office in Warsaw.
Coupon bonds - the issue of 19 October 2018, including 34,000 two-year unsecured coupon bonds of PLN 1,000 each and a total nominal value of PLN 34,000,000 under a Bond Issue Agreement with the redemption date set at 19 October 2020 concluded with mBank S.A., having its registered office in Warsaw. On 29 September 2020, the

DEVELIA S.A. GROUP

QR for 3Q 2020

CONSOLIDATED QUARTERLY REPORT

Company acquired 7,000 its own bonds of PLN 1,000 each for the purpose of redemption. On 19 October 2020, the Company redeemed the bonds of PLN 27,000,000.

Coupon bonds - the issue of 19 October 2018, including 66,000 four-year unsecured coupon bonds of PLN 1,000 each and a total nominal value of PLN 66,000,000 under a Bond Issue Agreement with the redemption date set at 19 October 2022 concluded with mBank S.A., having its registered office in Warsaw. The Company received calls for early redemption in the total amount of PLN 46,000,000, the early redemption date falls on 20 July 2020 it purchased, before the bond's maturity date, obligations amounting to PLN 46,000,000. The value of obligations still outstanding and to be redeemed on 19 October 2022 equals PLN 20,000,000.
Coupon bonds - the issue of 22 May 2019, including 60,000 four-year unsecured coupon bonds of PLN 1,000 each and a total nominal value of PLN 60,000,000 under a Bond Issue Agreement with the redemption date set at 22 May 2023 concluded with mBank S.A., having its registered office in Warsaw.
Investment notes - the issue of 9 March 2012 of seven investment notes having a par value of PLN 2,000,000 each, taken up by a subsidiary - Arkady Wrocławskie S.A. On 31 January 2014, an amendment was signed to reschedule the redemption date of the notes from 31 January 2014 to 31 January 2017. On 30 January 2017, an amendment was signed to reschedule the redemption date of the notes from 31 January 2017 to 30 November 2017. On 30 November 2017, an amendment was signed to reschedule the redemption date of the notes from 30 November 2017 to 30 November 2019. On 27 November 2019, an amendment was signed to reschedule the redemption date of the notes for 30 November 2021.
As at 30 June 2020, there are still two notes to be redeemed. Investment notes - the issue of 9 December 2010 of thirty investment notes having a par value of PLN 1,000,000 each, taken up by a subsidiary - Warszawa Przyokopowa Sp. z o.o. On 9 December 2013, an amendment was signed to reschedule the redemption date of the notes from 9 December 2013 to 9 December 2016. On 28 November 2016, an amendment was signed to reschedule the redemption date of the notes for 9 December 2019. On 27 November 2019, an amendment was signed to reschedule the redemption date of the notes to 9 December 2022.
Borrowing - on 27 February 2019, Develia S.A. entered into a borrowing agreement with Warszawa Przyokopowa Sp. z o.o. under which a sum of EUR 5,000,000 was borrowed for an indefinite period of time.
Borrowing - on 18 December 2019, Develia S.A. entered into a borrowing agreement with LC Corp Invest XVII Sp. z o.o. Projekt 20 Sp. k. under which a sum of PLN 82,500,000 was borrowed for an indefinite period of time.
Borrowing - on 24 January 2020, Develia S.A. entered into a borrowing agreement with LC Corp Invest XXIV Sp. z o.o. under which a sum of PLN 11,000,000 was borrowed for an indefinite period of time. As at the balance- sheet date, the loan balance was PLN 10,800,000. After the balance-sheet date, i.e. on 1 October 2020, a subsidiary - LC Corp Invest XXIV Sp. z o.o. merged with Develia S.A. by taking over the subsidiary's assets by
Develia S.A.. Develia S.A. acquired and assumed, by way of universal succession, all rights and obligations of the acquired company.
Borrowing - on 24 February 2020, Develia S.A. entered into a borrowing agreement with Warszawa Przyokopowa Sp. z o.o. under which a sum of PLN 25,000,000 was borrowed for an indefinite period of time.
Borrowing - on 27 March 2020, Develia S.A. entered into a borrowing agreement with Warszawa Przyokopowa Sp. z o.o. under which a sum of EUR 587,000 was borrowed for an indefinite period of time.

3.22.2 Information about Issue, Redemption and Repayment of Debt and Equity Securities

In the period of 9 months ended 30 September 2020, the following bonds were issued and redeemed:

On 20 March 2020, 65,000 five-year unsecured coupon bonds of PLN 1,000 each and a total nominal value of PLN 65,000,000 were redeemed.

DEVELIA S.A. GROUP

QR for 3Q 2020

CONSOLIDATED QUARTERLY REPORT

- On 20 July 2020, 46,000 four-year unsecured coupon bonds of PLN 1,000 each and a total nominal value of PLN 46,000,000 were redeemed before maturity date.
On 29 September 2020, the Company acquired 7,000 its own bonds of PLN 1,000 each for the purpose of redemption.
After the balance-sheet, on 7 October 2020, 70,000 three-year unsecured coupon bonds having a par value of PLN 1,000 each and a total nominal value of PLN 70,000,000 were issued under a Bond Issue Agreement with the redemption date set at 6 October 2023, concluded with mBank S.A., having its registered office in Warsaw.
After the balance-sheet date, on 19 October 2020, 27,000 two-year unsecured coupon bonds of PLN 1,000 each and a total nominal value of PLN 27,000,000 were redeemed.

Changes to Documentation of Bond Issue Programme

On 5 March 2020, the Issuer and mBank S.A. concluded an amendment to the programme agreement of 2 October 2018 ("the Programme Agreement") under which the Issuer set up a bond issue programme for its bonds up to the total amount (nominal value) of issued and outstanding bonds of PLN 400,000,000 ("the Issue Programme"). The amendment to the Programme Agreement is designed to adapt both the Programme Agreement and documentation relating to the Issue Programme to amended provisions of law that apply to the issue of bonds. Bonds issued under the amended Issue Programme ("the Bonds") will be tendered for purchase pursuant to Article 33(1) or (2) of the Bonds Act of 15 January 2015.

In the period of 9 months ended 30 September 2020, no notes were bought out.

3.22.3 Taking out and Repayment of Bank Loans and Borrowings

In the period of 9 months ended 30 September 2020, no bank loan was taken by the Company.

In the period of 9 months ended 30 September 2020, the Company took on the following commitments in the form of borrowings:

On 24 January 2020, Develia S.A. entered into a borrowing agreement with LC Corp Invest XXIV Sp. z o.o., under which a sum of EUR 11,000,000 was borrowed on arm's length conditions for an indefinite period of time. On 8 and 29 April, the Company repaid a portion of the borrowings in the total amount of PLN 200,000.
On 24 February 2020, Develia S.A. entered into a borrowing agreement with Warszawa Przyokopowa Sp. z o.o., under which a sum of PLN 25,000,000 was borrowed on arm's length conditions for an indefinite period of time.
On 19 March 2020, Develia S.A. entered into a borrowing agreement with Warszawa Przyokopowa Sp. z o.o., under which a sum of PLN 100,000,000 was borrowed on arm's length conditions for an indefinite period of time (an amount of PLN 85,000,000 was drawn down). The borrowing was paid off in full on 31 March 2020.
On 27 March 2020, Develia S.A. entered into a borrowing agreement with Warszawa Przyokopowa Sp. z o.o., under which a sum of EUR 587,000 was borrowed for an indefinite period of time.

3.22.4 Collateral

As at 30 September 2020, the repayment of loans taken out by Develia S.A. 's subsidiaries was secured mainly by:

Pledge on the shares of Arkady Wrocławskie S.A. held by Develia S.A. - up to the amount of EUR 37,500,000;
Registered pledges on all shares of Sky Tower S.A., together with a financial pledge of up to EUR 90,000,000;
On 8 February 2018, Develia S.A. provided security to mBank Hipoteczny S.A. and mBank S.A. for the loan agreement concluded on 20 December 2017 between LC Corp Invest XVII sp. z o.o. Projekt 22 Sp. k., as the borrower, and mBank Hipoteczny S.A. and mBank S.A. The said security includes: subordination agreement on

DEVELIA S.A. GROUP

QR for 3Q 2020

CONSOLIDATED QUARTERLY REPORT

accounts receivable concluded by the borrower, Develia S.A. and other subsidiaries of the Issuer - LC Corp Invest XVII Sp. z o.o. and LC Corp Invest I Sp. z o.o., making them subordinated creditors, and mBank S.A. and mBank Hipoteczny S.A. as senior creditors; support agreement concluded between the borrower, mBank Hipoteczny S.A., mBank S.A. and Develia S.A. - as the guarantor, under which the guarantor will be obliged to provide financial support to the borrower under the circumstances specified in the said agreements, along with a declaration on submission to enforcement pursuant to Article 777 of the Code of Civil Procedure up to the amount of EUR 3,576,261.90; contract of surety concluded by the borrower, mBank Hipoteczny S.A., mBank S.A. and Develia S.A., under which Develia S.A. will stand surety for the borrower up to a partial amount of the borrower's liabilities as a result of achieving a certain level of DSCR; commitment to enter into a support agreement with the borrower, mBank Hipoteczny S.A., mBank S.A. and Develia S.A. as the guarantor, pursuant to which the guarantor will be obliged, under the circumstances specified in the said agreement, to provide financial support to the borrower, along with Develia S.A.'s declaration on submission to enforcement pursuant to Article 777 of the Code of Civil Procedure up to the amount of EUR 558,660.50; registered pledges in favour of mBank Hipoteczny S.A. and mBank S.A. established by Develia S.A., as the limited partner, along with a declaration on submission to enforcement pursuant to Article 777 of the Code of Civil Procedure.

3.23 Information Concerning Paid Out (or Declared) Dividend, in Total and Per Share, in Breakdown by Ordinary and Preference Shares

On 31 August 2020, the Ordinary General Meeting of Develia S.A. adopted a resolution on the payment of dividend. The dividend was paid out on 02 October 2020 - see Section 2.27 for details.

3.24 Events Subsequent to 30 September 2020, Not Disclosed in These Statements, Which Could Have Material Bearing on Future Financial Results of Issuer

Relevant events that occurred after 30 September 2020 are presented in item 2.28 and 2.29.

3.25 Information on Changes in Contingent Liabilities or Contingent Assets After the End of Last Accounting Year

As from the end of the last financial year, there were no significant changes with regard to the Company's contingent liabilities or contingent assets.

In addition to the contingent liabilities serving as security for the bank loans described in detail in Note 3.22.4, the Company has contingent liabilities arising from a contingent fee of PLN 63,000 for the removal of trees, necessary to implement a project at Rokokowa street in Warsaw.

In addition to the foregoing, as a result of the disposal of real property by entities controlled by the Company, the Company guaranteed that the said entities would discharge their obligations arising from the Agreement concluded.

obligations and liabilities arising from the Final Agreements will be discharged by P20 and P21, and
obligations and liabilities of P20 and P21 relating to finish works to be done by tenants designated in the Final Agreements will be discharged by P20 and P21, and
obligations and liabilities of P20 and P21 arising from the rent guarantee agreements contemplated in the Preliminary Sales and Purchase Agreements will be discharged by P20 and P21, and
the Company will incur debts of P20 and P21 arising from obligations and liabilities of P20 and P21 under the Final Agreements and rent guarantee agreements if the Sellers have ceased their operations, have gone into liquidation or have been dissolved, which circumstances will be described in the surety arrangement.

DEVELIA S.A. GROUP

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CONSOLIDATED QUARTERLY REPORT

In pursuance of the Sales and Purchase Agreement covering the real property called "Wola Center" in Warsaw, the Company has undertaken to the Purchaser to stand surety for the Seller - Warszawa Przyokopowa Spółka z ograniczoną odpowiedzialnością and the debtor. Under the said commitment the Company guaranteed, among other things, that:

The Seller would perform the obligations and discharge the liabilities of Warszawa Przyokopowa, acting as the Seller, arising from agreements covering the subject-matter of the Transaction, and
The Company would incur debts of WP arising from obligations and liabilities of WP under the FSPA, if the Seller has ceased its operations, has gone into liquidation or has been dissolved, which circumstances were described in the surety arrangements,
1. The contractual penalty would be paid, should the Purchaser withdraw from the agreement due to reasons attributable to the Seller.

Apart from the aforesaid contingent liabilities arising from security for bank loans contingent fees relating to the removal of trees and arising from the real property sales and purchase agreements entered into, as at 30 September 2020, the Company did not have any other significant contingent liabilities.

3.26 Other Information Deemed by Issuer as Relevant for Assessment of Its Personnel, Assets, Financial and Profit/Loss Standing and Changes Thereof and Information Relevant for Feasibility of Fulfilling Its Obligations

Apart from the events referred to herein, in the reporting period ended 30 September 2020 there were no other events concerning Develia S.A., which would have any impact on the assessment of personnel, assets and financial standing and on the evaluation of the Issuer's feasibility of discharging its obligations.

3.27 Revenue and Profit-Loss Attributable to Respective Operating Segments

For management purposes, Develia S.A. distinguishes two reporting operating segments:

property development activity segment
holding (other) activity segment

The tables presented below show data concerning revenues and expenses of the Company's individual segments for the period of 9 months ended 30 September 2020 and 30 September 2019.

	Property	Holding (other)
Period of 9 months ended 30 September 2020	development	TOTAL
activity
	activity

Operating income
Revenue from sale of services, products and goods	22,408	13,081	35,489
Revenue from interest and discounts	-	3,688	3,688
Revenue from dividend	-	235,559	235,559
Other financial income	-	7,235	7,235
Other operating income	-	475	475

Total operating income	22,408	260,038	282,446
Operating expenses
Operating expenses, cost of sold products and goods	(21,314)	(25,544)	(46,858)
Costs of interest and discounts	-	(7,370)	(7,370)
Other financial expenses	-	(862)	(862)
Other operating expenses	-	(55)	(55)
Total operating expenses	(21,314)	(33,831)	(55,145)


Pre-tax profit/(loss)	1,094	226,207	227,301

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Income tax (tax expense)	(208)	454	246

Net profit/(loss) on continued operations	886	226,661	227,547

Discontinued operations
Profit (loss) on discontinued operations in the financial year	-	-	-

Net profit/(loss)	886	226,661	227,547

Other comprehensive income
Other components of comprehensive income	-	-	-
Income tax relating to other components of comprehensive income	-	-	-

Other comprehensive income (net)	-	-	-

Total comprehensive income	886	226,661	227,547

	Property	Holding (other)
Period of 9 months ended 30 September 2019	development	TOTAL
activity
	activity

Operating income
Revenue from sale of services, products and goods	-	18,428	18,428
Revenue from interest and discounts	-	8,531	8,531
Revenue from dividend	-	180,078	180,078
Other financial income	-	4	4
Other operating income	-	93	93
Total operating income	-	207,134	207,134

Operating expenses

Operating expenses, cost of sold products and goods	(1,285)	(32,763)	(34,048)
Costs of interest and discounts	-	(14,896)	(14,896)
Other financial expenses	-	(5,224)	(5,224)
Other operating expenses	-	(802)	(802)
Total operating expenses	(1,258)	(53,712)	(54,970)

Pre-tax profit/(loss)	(1,258)	153,422	152,164
Income tax (tax expense)	244	(7,383)	(7,139)

Net profit/(loss) on continued operations	(1,014)	146,039	145,025

Discontinued operations
Profit (loss) on discontinued operations in the financial year	-	-	-

Net profit/(loss)	(1,014)	146,039	145,025

Other comprehensive income
Other components of comprehensive income	-	-	-
Income tax relating to other components of comprehensive income	-	-	-
Other comprehensive income (net)	-	-	-


Total comprehensive income	(1,014)	146,039	145,025

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4. MANAGEMENT BOARD'S COMMENTS ON ACTIVITY OF ISSUER AND ITS GROUP

4.1 Main Achievements and Failures of Develia S.A. Group

The Group's operations are centred around Poland, and specifically the key locations of Poland's biggest cities: Warsaw, Wrocław, Cracow, Gdańsk and Katowice.

Revenues earned within the period of 9 months ended 30 September 2020 came from the development activities performed by the Group companies on the domestic market - in Warsaw, Wrocław, Cracow and Gdańsk.

In total, 781 residential and business units were sold in the period of 9 months ended 30 September 2020 (preliminary sales agreements/development agreements; withdrawals from agreements taken into account), which was 16% fewer than in the corresponding period of the previous year, whereas 746 residential and business units were delivered (the sale reported in the income statement), which was 58% less than in the period of 9 months ended 30 September 2019.

The below table presents in detail sales in individual cities for Q3 2020 and for the period of 9 months ended 30 September 2020, including comparatives for 2019 (figures shown in the tables refer to the number of residential and business premises).

pre-sales

City	3Q 2019	3Q 2020	Jan-Sep 2019	Jan-Sep 2020

Warsaw	91	96	359	222
Wrocław	62	73	182	199
Cracow	73	55	175	124
Gdańsk	67	128	191	210
Łódź	0	0	4	0
Katowice	17	6	17	26

TOTAL	310	358	928	781

		+15%		-16%
delivery
City	3Q 2019	3Q 2020	Jan-Sep 2019	Jan-Sep 2020

Warsaw	96	2	962	226
Wrocław	2	60	164	60
Cracow	2	102	357	356
Gdańsk	5	100	291	104
Łódź	0	0	4	0
Katowice	0	0	0	0

TOTAL	105	264	1778	746

		+151%		-58%
offer
City	sold	on offer *	to be included in offer	total for sale

Warsaw	5,536	253	1,791	2,044
Wrocław	3,361	283	963	1,246
Cracow	3,037	391	2,109	2,500
Gdańsk	1,699	523	1,456	1,979
Łódź	60	0	275	275
Katowice	73	191	956	1,147

TOTAL	13,766	1,641	7,550	9,191

including Ceglana Park Stage 2 (178 premises), Centralna Park Stage 6 (270 premises), Osiedle Latarników Stage 2 (218 premises) - introduced to sales, construction not started yet

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The below item describes the Group's projects - implemented, under construction and at the preparatory stage as at 30 September 2020.

4.1.1 Development Projects - Implemented Commercial Projects

				Construction
Name of Project	City	District	Segment	Completion	Area (sq m)
				Date

Wola Retro	Warsaw	Wola	Office and	Q3 2019	25,954
services


Arkady Wrocławskie	Wrocław	Krzyki	Office, retail and	Q2 2007	38,638
services


Sky Tower	Wrocław	Krzyki	Office, retail and	Q1 2013	53,859
services


Wola Center *	Warsaw	Wola	Office and	Q3 2013	33,283
services


Retro Office House *	Wrocław	Stare Miasto	Office and	Q1 2018	21,914
services


Silesia Star *	Katowice	Bogucice	Office and	Q4 2014	14,969
(Building A)	Zawodzie	services


Silesia Star *	Katowice	Bogucice	Office and	Q3 2016	14,210
(Building B)	Zawodzie	services

parcels of land, on which the "Retro Office House" building (in Wrocław) and the "Silesia Star" Buildings A & B (in Katowice) had been erected, were disposed of by Group companies in 2019, whereas the "Wola Center" building in Warsaw in 2020.

The following table presents NOI for commercial real property of the Company in Q3 2019 and Q3 2020 and WALT as at 30 September 2020:

NOI for commercial real property (EUR million)	Q3 2019	Q3 2020	WALT Q3 2020

Arkady Wrocławskie	3.18	2.69	Office area - 2.7
Retail area - 2.9

Sky Tower	4.31	4.28	Office area - 3.9
Retail area - 4.7

Wola Retro	n/a	1.71	Office area - 7.6
Retail area - 10.8

The following table shows the valuations of commercial buildings made by valuers or the Management Board of the Company as at 30 September 2020:

Real property			30/09/2020

Yield	Valuation in EUR


Arkady Wrocławskie *	services	8.05%	48,060,000
offices	8.05%


	services	7.25%
Sky Tower	B1 & B3 offices	6.75%	115,670,000
	B2 offices	6.75%

Wola Retro	offices	5.70%	73,550,000

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Housing Projects

				Construction	Number of
				Apartments and
Name of Project	City	District	Segment	Completion	Area (sq m)
Commercial
				Date
				Premises

Przy Promenadzie	Warsaw	Praga-Południe	Apartments,	Q4 2010	730	48,160
(stage 1-3)	services


Przy Promenadzie	Warsaw	Praga-Południe	Apartments,	Q3 2016	202	9,773
(stage 4)	services


Rezydencja Kaliska	Warsaw	Śródmieście-	Apartments,	Q1 2011	101	7,430
Ochota	services


				Q4 2012	114	6,918
				Q3 2014	229	13,141
Powstańców 33	Ząbki near		Apartments,	Q3 2016	230	13,635
(stage 1-5)	Warsaw		services

				Q3 2018	165	10,045
				Q2 2019	123	6,958

				Q4 2014	192	10,008
				Q4 2015	112	5,628
				Q1 2018	157	7,982
Na Woli	Warsaw	Wola	Apartments,	Q4 2018	150	7,586
(stage 1-8)	services	Q1 2019	147	7,565


				Q2 2019	147	7,554
				Q4 2019	301	15,610
				Q3 2020	177	9,547

Poborzańska	Warsaw	Targówek	Apartments,	Q2 2016	91	4,189
services


				Q2 2016	140	7,409
Mała Praga	Warsaw	Praga Południe	Apartments,	Q3 2017	217	11,359

(stage 1-4)	services	Q1 2018	158	8,124


				Q1 2019	235	12,058

				Q4 2017	170	8,988
Korona Pragi	Warsaw	Praga Południe	Apartments,	Q3 2018	171	8,992
(stage 1-3)	services

				Q4 2018	173	9,086

				Q2 2017	159	8,604
Krzemowe	Warsaw	Mokotów	Apartments	Q4 2017	244	11,917
(stage 1-3)

				Q4 2018	130	6,622

				Q3 2012	176	9,352
Maestro	Wrocław	Krzyki-Jagodno	Apartments	Q3 2013	160	8,829
(stage 1-3)

				Q3 2017	125	7,126

				Q2 2013	72	2,819
Potokowa	Wrocław	Maślice	Apartments and	Q3 2013	42	4,486
(stage 1-3)	houses

				Q2 2014	73	3,621

Graniczna	Wrocław	Fabryczna	Apartments	Q3 2013	173	9,200

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(stage 1-6)				Q3 2014	179	8,716
				Q4 2015	187	9,688
				Q2 2016	125	6,449
				Q4 2016	168	9,103
				Q3 2017	168	9,119

Nowalia	Wrocław	Klecina	Terraced houses	Q1 2014	44	4,634

Brzeska 5	Wrocław	Krzyki	Apartments,	Q4 2014	167	7,889
services


Stabłowicka 77	Wrocław	Fabryczna	Apartments	Q3 2014	73	4,259

(stage 1-2)	Q1 2015	60	3,159



Dolina Piastów	Wrocław	Fabryczna	Apartments	Q2 2016	176	9,278

Nowa Tęczowa	Wrocław	Stare Miasto	Apartments,	Q1 2018	212	10,025
services


Sołtysowicka	Wrocław	Sołtysowice	Apartments	Q1 2018	165	9,486

Między Parkami	Wrocław	Klecina	Apartments	Q1 2019	164	8,607
(stage 1)


Małe Wojszyce	Wrocław	Wojszyce	Apartments	Q2 2020	63	3,636

				Q4 2011	120	6,624
				Q4 2012	164	8,960
				Q3 2014	42	2,162
Słoneczne Miasteczko	Cracow	Bieżanów-	Apartments	Q4 2015	120	6,498

(stage 1-8)	Prokocim	Q2 2017	108	5,894


				Q4 2018	108	5,903
				Q1 2019	108	5,878
				Q3 2020	108	5,806

Okulickiego 59	Cracow	Mistrzejowice	Apartments,	Q4 2012	146	6,701
services


				Q2 2015	164	8,011
Grzegórzecka	Cracow	Śródmieście	Apartments,	Q4 2015	149	7,042

(stage 1-4)	services	Q1 2016	85	4,562


				Q1 2017	242	11,928

				Q2 2017	150	7,055
				Q1 2018	130	6,190
Centralna Park	Cracow	Czyżyny	Apartments	Q4 2018	264	12,941
(stage 1-5)

				Q4 2019	151	7,459
				Q1 2020	103	5,183

5 Dzielnica	Cracow	Krowodrza	Apartments,	Q1 2017	190	10,018

(stage 1-2)	services	Q3 2017	113	5,678



Przy Srebrnej	Gdańsk	Łostowice	Apartments,	Q4 2012	72	3,795

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(stage 1-4)			services	Q3 2014	28	1,734
				Q4 2014	46	2,104
				Q3 2016	32	1,687

				Q1 2018	65	2,940
				Q4 2018	65	2,949
Świętokrzyska Park	Gdańsk	Łostowice	Apartments	Q2 2019	65	2,936
(stage 1-5)

				Q4 2019	65	2,939
				Q3 2020	108	5,306

Przy Alejach	Gdańsk	Zaspa	Apartments	Q2 2016	110	5,521
(stage 1-2)	Q2 2017	97	5,087


Bastion Wałowa	Gdańsk	Śródmieście	Apartments	Q4 2017	230	12,336
(stage 1-2)	Q4 2018	230	12,339


Dębowa Ostoja	Łódź	Bałuty	Terraced houses	Q3 2011	22	4,548
(1 stage)


Pustynna 43	Łódź	Górna	Apartments	Q4 2012	38	2,884
(1 stage)


Total					11,975	643,969

As at 30 September 2020, the Group failed to deliver 223 premises located in the aforesaid competed projects.

4.1.2 Development projects under Construction Housing Projects

				Planned	Number of
Name of Project	City	District	Segment	Construction	Apartments and	Area (sq m)
Completion	Commercial

				Date	Premises

Na Woli	Warsaw	Wola	Apartments,	Q4 2021	305	15,873
(stage 9)	services


Mały Grochów	Warsaw	Grochów	Apartments,	Q1 2021	105	5,338

(stage 1-2)	services	Q1 2021	137	7,014



Rokokowa Residence	Warsaw	Bielany	Apartments,	Q1 2021	29	3,548
houses


Mała Praga	Warsaw	Praga Południe	Apartments,	Q4 2021	48	2,940.36
(stage 5)	services


Kamienna	Wrocław	Huby	Apartments,	Q1 2021	253	13,082

(stage 1-2)	services	Q1 2021	186	9,761



Nowa Racławicka	Wrocław	Krzyki	Apartments	Q1 2021	231	13,297

Między Parkami	Wrocław	Klecina	Apartments	Q4 2021	202	12,972
(stage 2)


Słoneczne Miasteczko	Cracow	Bieżanów-	Apartments	Q1 2021	102	5,865

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(stage 9 - 11)		Prokocim		Q3 2021	124	8,641
				Q1 2022	102	5,687

Przy Mogilskiej	Cracow	Prądnik	Apartments	Q2 2021	65	3,031
(stage 1)	Czerwony


Świętokrzyska Park	Gdańsk	Łostowice	Apartments	Q4 2020	54	2,654

(stage 6-7)	Q2 2021	108	5,146



Wałowa	Gdańsk	Śródmieście	Apartments	Q4 2020	140	7,192

(stage 3-4)	Q4 2020	115	4,068



Osiedle Latarników	Gdańsk	Letnica	Apartments,	Q4 2021	135	7,677
(stage 1)	services


Baltea	Gdańsk	Przymorze	Apartments,	Q4 2022	239	15,221
services


Ceglana Park	Katowice	Brynów	Apartments,	Q4 2020	86	5,305
(stage 1)	services


Total					2,766	154,310

As at 30 September 2020, the Group had sold 1.816 premises which were under construction at that time.

4.1.3 Development Projects in Preparation (Currently Land Banked)

Commercial Projects

Name of Project	City	GLA	Planned Construction
(sq m)	Commencement Date



Kolejowa	Wrocław	33,000		Q2 201

Housing Projects

		Number of
Name of Project	City	Apartments and	Area (sq m)
Commercial

		Premises
Trzcinowa	Warsaw	167	8,833

Toruńska	Warsaw	196	10,219

Jagiellońska	Warsaw	162	8,362

Podskarbińska	Warsaw	1,266	67,030

Reszelska	Wrocław	84	5,337

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Reja	Wrocław	61	2,954

Mglista	Wrocław	48	2,970

Orawska	Wrocław	644	34,526

Cynamonowa	Wrocław	126	6,516

Vratislavia Reidence	Wrocław	-	-	(*)
(Malin)


Słoneczne Miasteczko	Cracow	412	23,418

Przy Mogilskiej	Cracow	273	12,312

Grzegórzecka	Cracow	471	25,699

Centralna Park	Cracow	864	46,629

Braci Czeczów	Cracow	89	5,000

Świętokrzyska Park	Gdańsk	259	13,626

Przy Alejach	Gdańsk	48	2,891
(stage 3)


Ptasia	Gdańsk	158	7,991

Osiedle Latarników	Gdańsk	170	9,110

Marinus	Gdańsk	87	5,049

Bajkowy Park	Gdańsk	754	43,628

Ceglana Park	Katowice	956	51,937

Pustynna 43	Łódź	114	8,286

Dębowa Ostoja	Łódź	161	24,479
				(**)

Total		7,550	426,801

The Malin Project was not taken into consideration for the calculation of land bank as at 30/09/2020

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the list does not include Ceglana Park Stage 2 (178 premises), Centralna Park
Stage 6 (270 premises), Osiedle Latarników Stage 2 (218 premises) - included in offer before 30/09/2020

4.2 Description of Factors and Events, Particularly Non-typical Ones, Which Have Significant Impact on Achieved Financial Results

No special or uncommon events occurred, which could affect the produced financial results.

4.3 Management Board's Opinion Regarding Feasibility of Meeting Earlier Published Financial Forecasts for Given Year, in View of Results Presented in This Quarterly Report as Compared to Forecast Results

The Issuer did not publish any financial forecasts for the year 2020.

4.4 Ownership Structure of Issuer's Qualifying Holding

As at 30 September 2020 the share capital of Develia S.A. amounted to PLN 447,558,311 and was divided into 447,558,311 ordinary bearer shares carrying one vote at the General Meeting, with a par value of PLN 1.00 each.

Ownership structure of qualifying holding as at the date of submitting semi-annual consolidated financial statements for

Q3 2020, according to information obtained by Issuer:

	Number of	Number of		Share (%) in total
Shareholder	Share in Share Capital (%)	vote at general
shares	votes
		meeting


Nationale-Nederlanden Otwarty Fundusz	83,470,921	83,470,921	18.65 %	18.65 %
Emerytalny


Otwarty Fundusz Emerytalny PZU "Złota	77,195,648	77,195,648	17.25 %	17.25 %
Jesień"


AVIVA Otwarty Fundusz Emerytalny AVIVA	59,612,000	59,612,000	13.32%	13.32%
Santander


MetLife Otwarty Fundusz Emerytalny	34,528,295	34,528,295	7.71%	7.71%

Ownership Structure of Qualifying Holding as at Date of Submitting Financial Statements for H1 2020, According to Information Obtained by Issuer:

	Number of	Number of		Share (%) in total
Shareholder	Share in Share Capital (%)	vote at general
shares	votes
		meeting


Nationale-Nederlanden Otwarty Fundusz	83,470,921	83,470,921	18.65 %	18.65 %
Emerytalny


Otwarty Fundusz Emerytalny PZU "Złota	77,195,648	77,195,648	17.25 %	17.25 %
Jesień"

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AVIVA Otwarty Fundusz Emerytalny AVIVA	59,612,000	59,612,000	13.32%	13.32%
Santander


MetLife Otwarty Fundusz Emerytalny	34,528,295	34,528,295	7.71%	7.71%

On 18 June 2020, Aegon Otwarty Fundusz Emerytalny gave the Issuer a notice that as a consequence of a transaction consisting in the disposal of shares, made on 16 June 2020 and settled on 18 June 2020, the fund decreased its shareholding in Develia S.A. ("the Company") below five per cent of votes of the General Meeting. Prior to the disposal of shares, Aegon Otwarty Fundusz Emerytalny held 23,031,601 Company's shares, accounting for 5.15 per cent of share in the share capital, and 23,031,601 votes attaching to the shares, representing 5.15 per cent of total vote. Following the said transaction the fund held 16,831,601 Company's shares, accounting for 3.76 per cent of share in the share capital, and 16,831,601 votes attaching to the shares, representing 3.76 per cent of total vote.

Except for the foregoing changes, within the period from the submission of the H1 2020 report to the date of the preparation hereof, nothing else changed significantly in the ownership structure of the Issuer's qualifying holding.

4.5 Issuer's Shares or Rights (Options) Thereto Held by Persons Responsible for Management and Supervision of Issuer as at Date of Release of Q3 2020 Report, Including Changes in Number of Shares or Rights Thereto Owned by Such Persons in Period Following Submission of Previous Quarterly Report

		Holding of the			Holding of the
		Issuer's shares as			Issuer's shares
Full name	Function in the body	at 08/09/2020	Decrease	Increase	as at 16/11/2020

Supervisory staff

Jacek Osowski	Chairman of Supervisory	-	-	-	-
Board

Artur Osuchowski	Vice Chairman of	-	-	-	-
Supervisory Board

Paweł Małyska	Member of Supervisory	-	-	-	-
Board

Piotr Kaczmarek	Member of Supervisory	-	-	-	-
Board

Robert Pietryszyn	Member of Supervisory	-	-	-	-
Board

Piotr Pinior	Member of Supervisory	-	-	-	-
Board

Marcin Eckert 1)	Member of Supervisory	n/a	n/a	n/a	-
Board

A Supervisory Board Member as of 6 October 2020.

Management staff

Paweł Ruszczak	acting President of	35,200	-	-	35,200
Management Board

Tomasz Wróbel	Member of	-	-	-	-
Management Board

Mirosław Kujawski	Member of	-	-	-	-
Management Board

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4.6 Information about Proceedings Before Courts, Relevant Arbitration Authority or Public Administration Authority

In the period of 9 months ended 30 September 2020, there were no significant proceedings before the court or arbitration or public administration authorities with regard to liabilities or receivables of Develia S.A. or its subsidiaries, the value of which would have an important bearing on the financial standing of the Group companies. The subsidiary undertakings of Develia S.A. are parties to court and public administration proceedings whose value is insignificant for their operations or financial standing. The vast majority of other cases relate to claims lodged by subsidiaries of Develia S.A. against their debtors. Provisions for legal actions are shown in Note 2.14 and 3.10 to the Financial Statements.

4.7 Information on Single or Many Transactions Concluded by Issuer or Its Subsidiary Undertaking with Related Entities (If Made on Terms Other Than at Arm's Length)

In the discussed reporting period neither the Issuer not its subsidiary undertakings concluded with a related entity any transactions, which were effected on the terms other than at arm's length.

4.8 Information about Loan or Borrowing Surety or Guarantee Granted by ISSUER or Its Subsidiary Undertaking

In pursuance of the Preliminary Sales and Purchase Agreement, the Company undertook to the Purchaser to stand surety for the Seller, Warszawa Przyokopowa Sp. z o.o., under which it guaranteed that:

The seller would perform the obligations and discharge the liabilities of Warszawa Przyokopowa Sp. z o.o., as the seller, arising from agreements covering the subject-matter of the transaction, and
The Company would incur debts of Warszawa Przyokopowa Sp. z o.o. arising from obligations and liabilities of that company under the Sales and Purchase Agreement, if the seller ceased its operations, went into liquidation or was dissolved, which circumstances were described in the surety arrangements,
The contractual penalty would be paid, should the purchaser withdraw from the preliminary agreement due to reasons attributable to the seller.

In the reporting period ended 30 September 2020, neither the Issuer nor any of its subsidiaries gave any significant surety or guarantee to the benefit of other entities, except for those mentioned above.

4.9 Other Information Deemed by Group as Relevant for Assessment of Its Personnel, Assets, Financial and Profit/Loss Standing and Changes Thereof and Information Relevant for Feasibility of Fulfilling Its Obligations

4.10 Factors Which in Issuer's Opinion May Affect Its Performance at Least in Perspective of Following Quarter

The results achieved by the Develia S.A. Group will be highly affected by a macroeconomic situation, in particular when considering the availability of mortgage loans for potential clients and the development of economic situation amidst the epidemic. These factors are strong determinants of the demand for new apartments and the structure and price thereof. In addition, a factor that might have a bearing on demand for flats is uncertainty about a slowdown in the global economy due to coronavirus, which may also translate into customers deciding to refrain from purchasing flats.

According to the definition provided in IFRS 15, the Develia S.A. Group recognise revenue from sales of residential and retail units on the transfer of control to the customer. As a consequence, in the next quarter the results of sale will depend on the value of premises transferred to the client in line with the above description.

The operating performance of the Group will be also influenced by the level of revenue generated from the rental of commercial space in the following developments: Arkady Wrocławskie, Sky Tower and Wola Retro, which is linked to

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the EUR exchange rate. The EUR exchange rate will also affect the valuation of foreign currency loans and investment property Arkady Wrocławskie, Sky Tower and Wola Retro.

In the long term, in the opinion of the Management Board, the following will also influence the Group's performance:

implementation of the strategy of acquiring land for residential buildings and carrying out investments on the land to ensure the appropriate offering scale of the Group, adequate to the demand on the market,
A shift in an attitude towards commercial property in the Develia's Group portfolio, manifested through an opportunity for the sale of selected assets;
Increasing construction costs of new development projects, which may have a direct bearing on margins achieved in the future;
Increasing costs of funding raised through the issue of bonds and limited access to this market, associated with the current situation on the capital market and a possibility that more stringent regulations may be brought in;
Further uncertainty over the epidemic situation in Poland and all around the world.

The document has been signed by a qualified electronic signature

Paweł Ruszczak	Mirosław Kujawski	Tomasz Wróbel
acting President of Management Board	Member of Management Board	Member of Management Board

Wrocław, 16 November 2020

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Develia SA published this content on 30 November 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 November 2020 15:50:04 UTC

Latest news about Develia S.A.

Develia S.A. Reports Earnings Results for the First Quarter Ended March 31, 2024	05-23	CI
Develia Announces Dividend for the Year 2023, Payable on July 5, 2024 and September 6, 2024	05-17	CI
Develia Real Estate Introduces to Offer 285 Apartments in Poznan	05-09	CI
Develia Extends Cooperation with Grupo Lar for Another Investment in Warsaw	04-29	CI
Develia S.A. Recommends Dividend for the Year 2023, Payable on September 5, 2024 and September 6, 2024	04-17	CI
Develia Real Estate Introduces 371 Flats for Sale in Krakow	03-19	CI
Develia Real Estate Introduces 213 Apartments for Sale in Warsaw	03-14	CI
Develia S.A. Reports Earnings Results for the Full Year Ended December 31, 2023	01-14	CI
Develia S.A. Reports Sales Results for 2023	01-08	CI
Develia Signs Preliminary Contract for Sale of Arkady Wroclawskie	12-19	CI
Vastint Poland Sp. z.o.o. signed a preliminary agreement to acquire Arkady Wroclawskie S.A. from Develia S.A..	12-18	CI
Develia and I Asset Management UAB Plans to Create A Joint Venture	12-11	CI
Develia S.A. Reports Earnings Results for the Nine Months Ended September 30, 2023	11-16	CI
Develia S.A. Reports Earnings Results for the Half Year Ended June 30, 2023	23-09-29	CI
Develia Extends Talks on Potential Sale of Real Estate in Wroclaw	23-09-28	CI
Develia S.A. Reports Sales Results for the First Half of 2023	23-07-06	CI
Nexity to Divest Polish Development Operations for EUR100 Million	23-06-02	MT
Nexity: sells its development activities in Poland	23-06-01	CF
Develia S.A. , entered into a preliminary agreement to acquire 100% stake in 19 polish subsidiaries from Nexity SA for â‚¬100 million.	23-05-31	CI
Develia S.A. Proposes Total Dividend Payout for the Year 2022, Payable on July 21, 2023 and October 13, 2023	23-05-25	CI
Develia S.A. Reports Earnings Results for the First Quarter Ended March 31, 2023	23-05-17	CI
Develia S.A. Reports Sales Results for the First Quarter of 2023	23-04-06	CI
Develia Issues PLN 180 Million in 3 Years Unsecured Bonds	23-03-27	CI
An unknown fund, managed by Adventum International, signed a preliminary agreement to acquire Wola Retro Office Building in Warsaw from Develia S.A. for €70 million.	23-01-25	CI
Develia S.A. Reports Earnings Results for the Full Year Ended December 31, 2022	23-01-14	CI

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Company Profile

Develia SA, formerly known as LC Corp SA, is a Poland-based holding company engaged in the real estate development operations. It is involved in the acquisition, management, rental and sale of commercial and residential properties located in such Polish cities as Warsaw, Wroclaw, Krakow, Lodz, Gdansk and their surroundings. Its main development projects in the commercial properties area include Arkady Wroclawskie shopping and retail complex in Wroclaw, as well as an office complex, Wola Center in Warsaw. In the area of residential investment it develops apartments houses Przy Promenadzie, Rezydencja Kaliska and Powstancow 33 in Warsaw; Maestro and Vratislavia Residence in Wroclaw; Debowa Ostoja in Lodz; as well as Niepolomicka and Srebrena in Gdansk. The Company owns 99.95% stake in LC Corp Invest XV Sp z o o Investments SKA. and 100% stake in Sky Tower SA, in the the Netherlands.

Sector

Real Estate Development & Operations

Calendar

2024-06-13 - Ex-dividend day for final dividend

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Ratings for Develia S.A.

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Analysts' Consensus

Sell

Buy

Mean consensus

BUY

Number of Analysts

Last Close Price

6.69 PLN

Average target price

7.042 PLN

Spread / Average Target

+5.26%

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Company calendar

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