CpiFim

2017 CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FINANCIAL INFORMATION2022Including theConsolidated ﬁnancial statementsandReport of the Réviseur d’Entreprisesfor the ﬁnancial year ended as at 31 December 2022CPI FIM SA * Société Anonyme * 40 rue de la Vallée, L2661 LuxembourgR. C. S. Luxembourg – B 44.996 MANAGEMENTREPORT|2SUMMARYPart I.Management reportPart II.Declaraon leerPart III.Consolidated ﬁnancial statements of the GroupPart IV.Auditors’ ReportPartV.Statutory ﬁnancial statementsCPI FIM SA | Société Anonyme | 40 Rue de la Vallée,L-2661 Luxembourg RCS Luxembourg B 44996 MANAGEMENTREPORT|3Management Report asat 31December 2022MESSAGE FROMTHE MANAGEMENT.............................................................................................................6YEAR 2022 AND POST-CLOSING KEY EVENTS..................................................................................................7Annual general meeng of shareholders....................................................................................................7Share Buy-back programme of the Company.............................................................................................7Development of the Kolbenova park in Prague..........................................................................................7Disposals of land plots in the Czech Republic.............................................................................................7Disposal of the residenal property in France............................................................................................7Intergroup ﬁnancing..................................................................................................................................7COVID-19 impact and the Russian invasion to Ukraine...............................................................................8MARKET ENVIRONMENT................................................................................................................................9OPERATIONS OF THE GROUP IN 2022 ...........................................................................................................12Financing of CPIPG Group.........................................................................................................................12Rendering ofservices toCPIPG Group ......................................................................................................12PROPERTY PORTFOLIO..................................................................................................................................13Total Property Porolio.............................................................................................................................13Property Valuaon...................................................................................................................................14Oﬃce…...............................................................................................................................18Land bank.................................................................................................................................................21Residenal ...............................................................................................................................................23Hotels…....................................................................................................................................................25Retail…......................................................................................................26Development............................................................................................................................................27FINANCING...................................................................................................................................................28Cash and cash equivalents........................................................................................................................28Financial liabilies....................................................................................................................................28RESULTS AND NET ASSETS ............................................................................................................................29Income statement....................................................................................................................................29Balance sheet...........................................................................................................................................30CORPORATE GOVERNANCE...........................................................................................................................32Principles..................................................................................................................................................32Board of Directors....................................................................................................................................32Commiees ofthe Board ofDirectors ......................................................................................................35Descriponof internalcontrolsrelave toﬁnancial informaonprocessing. ...........................................36Remuneraon and beneﬁts......................................................................................................................36 MANAGEMENTREPORT|4Corporate Governance rules and regulaons............................................................................................36Addional informaon.............................................................................................................................38SHAREHOLDING............................................................................................................................................41Share capitaland vongrights .................................................................................................................41Shareholder holding structure..................................................................................................................41Authorized capital not issued ...................................................................................................................41POTENTIAL RISKS AND OTHER REPORTING REQUIREMENTS..........................................................................42Subsequent closing events ........................................................................................................................42Other reporng requirements..................................................................................................................42Financial Risks exposure...........................................................................................................................42Certain subsidiaries may be in breach of loan covenants...........................................................................42The Group’s ﬁnancing arrangements could give rise to addional risk......................................................42Market risk...............................................................................................................................................43Credit risk.................................................................................................................................................43Liquidity risk.............................................................................................................................................44Capital management ................................................................................................................................44Risks associated with real estate and ﬁnancial markets............................................................................44CORPORATE RESPONSIBILITY........................................................................................................................46Environmental, social and ethical maers.................................................................................................46Environmental maers..............................................................................................................................46Social maers............................................................................................................................................46Ethical maers..........................................................................................................................................46EUTAXONOMY.............................................................................................................................................47GLOSSARY & DEFINITIONS............................................................................................................................49 MANAGEMENTREPORT|5CPI FIM SA, société anonyme (the “Company”) and its subsidiaries(together the “Group” or “CPI FIM”), is anowner of income-generang real estate andland bank primarily in Poland andin the Czech Republic. TheCompany is a subsidiary of CPI Property Group (also “CPIPG”and together with its subsidiaries as the “CPIPGGroup”), whichholds 97.31%of theCompany shares.The Companyis also involvedin providing equityloans andmanagement services to other enes within the CPIPG Group.The Company is a joint stock company incorporated foran unlimited term and registered in Luxembourg. Theaddress of itsregistered oﬃce is 40, rue de la Vallée, L-2661Luxembourg, Grand Duchy of Luxembourg. The trade registry numberof theCompany is B 44 996.The Company’s shares registered underISIN code LU0122624777 are listedon the regulated markets ofthe LuxembourgStock Exchange and theWarsaw Stock Exchange. MANAGEMENTREPORT|6MESSAGE FROM THE MANAGEMENTAlthough the COVID-19 restricons were easedin diﬀerent countries during theyear 2022, the economicenvironmentin thewholeofEuroperemainedunderpressure andthepost-pandemicgrowthwasslowing mainlydue to the Russian invasionof Ukraine and higher inﬂaon.However, the Group demonstrated resilientperformance during 2022. This was largely due to the Group’s high exposure tooﬃce properes and landbank,the resilience of our tenants and careful cost management.Total assets decreased by €516.0 million(7%) to €6,867.6 million as at31 December 2022. The EPRA NetReinstatement Value (former EPRA NAV) per share as at 31 December 2022 was €1.19 compared to €1.04 asat31 December 2021. At the end of 2022, the EPRA Net Disposal Value(former EPRA NNNAV) amounted to €1.07per share compared to €0.94 at the end of 2021.The Group achieved an operang proﬁt of €93.1 million in 2022 compared to€316.5 million in 2021. Total netproﬁt was €180.6 million in 2022 compared to €366.8 million in 2021.ResulngfromtheCompany’sintegraonintoCPIPGin2016,oneofitsrolesistoserveasanintergroupﬁnancingvehicle to the enes within the CPIPG Group. As at31 December 2022, the outstanding balance of the loansprovided to the CPIPG Group amounted to approximately €4,713.0 million.During 2022, the Group sold land plots in the CzechRepublic, resulng in a decrease of the totalGroup´s landbank area by 226,000 sqm, and also a residenal propertyin France to the CPIPG Group. In the second half of2022, the Group started a development project of Kolbenova park in Vysočany, Prague 9.The annual general meeng held in May 2022 (the “AGM”) approvedthe statutory and consolidated accountsand the allocaon of ﬁnancial results for the ﬁnancial yearending 31 December 2021. The AGM resolved to re-appoint Anita Dubost, David Greenbaum, Edward Hughes, and ScotWardlaw to the Board of Directors of theCompany. David Greenbaumand Marn Němečekwere also re-appointedas Managing Directors(administrateurs délégués) of the Company.The Group will connue to focus on eﬃcient operaonalperformance and the well-being of our tenants andemployees.David Greenbaum,Managing Director MANAGEMENTREPORT|7YEAR 2022 AND POST-CLOSING KEY EVENTSAnnual general meeng of shareholdersThe AGM of shareholders of theCompany was held on 30May 2022 in Luxembourg, withapproximately 97.36%of the vong rights present or represented.The AGMapproved thestatutory annualaccounts andconsolidated annualaccounts forthe ﬁnancialyear ending31 December 2021, as well as the allocaon of ﬁnancial results for the ﬁnancial year ending 31 December 2021.The AGM further granted a discharge to themembers of the Company's Board of Directors as well asto theauditors for the performance of their dues during the ﬁnancial year ending 31 December 2021.The AGM also resolved to re-appoint the followingpersons as members of the Company's Board ofDirectorsunl the annual general meeng of 2023: Anita Dubost, David Greenbaum, Edward Hughes, and Scot Wardlaw.The AGM also re-approved Ernst & Young S.A., Luxembourgas the auditor of the Company unl theannualgeneral meeng of 2023.The AGM re-elected David Greenbaum and Marn Němeček to serve asManaging Directors (administrateursdélégués) of the Company.Share Buy-back programme of the CompanyOn 30 May 2022, theAGM of shareholders of the Companyalso approved the terms and condionsof the sharebuy-back programme of the Company. The Company itself, or througha company in which the Company holdsdirectly the majorityof the vongrights, or througha person acngin their ownname but forthe account oftheCompany may repurchase, in one or severalsteps, a maximum of 35,308,653 shares ofthe Company, for apurchase price in the range between €0.01 per share to €5 per share.The shares may be repurchased on the Luxembourg Stock Exchange orthe Warsaw Stock Exchange or directlyfrom exisng and/or future shareholders by consensualor private sale. The duraon of theshare buy-backprogramme is 5 years from the AGM of shareholders of the Company which was held on 30 May 2022.Development of the Kolbenova park in PragueIn 2022, the Group started theKolbenova park project. It is a newresidenal neighbourhood with its own publicpark. Overall, the project will provide about 1,000 apartments in six mulple-dwelling apartment houses withaquiet, semi-private inner courtyard opening into a park.This residenal neighbourhood is situated near theVysočanská staon on the Prague metro B line (15 minutes from the Prague city centre).Disposals of land plots in the Czech RepublicDuring 2022, the Group sold a land plot with a total area ofmore than 67,000 sqm located in the city district ofPrague 9 (Klíčov), and land plots with a total area of about 159,000 sqm primarilylocated in the Ústecký region(Chrabařovice, Dělouš and Velké Chvojno).Disposal of residenal property in FranceDuring the ﬁrst half of 2022, the Group also sold a residenal property close to the city of Nice to CPIPG Group.Intergroup ﬁnancingResulng from the Company’s integraon into the CPIPGGroup in 2016, one of its rolesis to funcon as anintergroup ﬁnancing vehicle to the enes withinthe CPIPG Group. In 2022, the Group connued to provideequity loansto otherenes withinthe CPIPGGroup. Atthe endof 2022,loans providedsubstanally decreaseddue to oﬀset of loans between the Company and CPI PGSA. As at 31 December 2022, the outstanding balanceof the provided loans to CPIPG Group amounted to €4,713.0 million (31 Dec 2021: €5,136.0 million). MANAGEMENTREPORT|8COVID-19 impact and the Russian invasion of UkraineAlthough the COVID-19 restricons were easedin diﬀerent countries during theyear 2022, the economicenvironment across Europe remained under pressure and the post-pandemic growthwas slowing mainly due tothe Russian invasion of Ukraine coupledwith higher inﬂaon. However, the Groupdemonstrated resilientperformance during the year 2022. This was largely due to theGroup´s high exposure to oﬃce properes andlandbank, the resilience of our tenants and careful cost management.The Group is constantly monitoring the situaon, with a focus on business connuityand the well-being of ouremployees and tenants. MANAGEMENTREPORT|9MARKET ENVIRONMENTGlobal macro-economic condionsCzech Republic1During 2022, the GDP in the Czech Republic grew by 2.5%.In line with other European economies, GDP growthwas dynamic in the ﬁrst two quarters of2022 with 4.6% and 3.5%, followed by a signiﬁcantslowdown in thesecond half of 2022 due tothe impact of the Russian invasionof Ukraine and the subsequent eﬀectoncommodity prices coupled with rising inﬂaon. In Q4 2022, quarterly GDP expanded by 0.2%, slightlyavoiding acontracon.The expansionwas supportedby ﬁxedinvestment andby externaldemand. Onthe otherhand, theconsumponexpenditure of households had a negaveinﬂuence. On the producon side,key drivers of growth weremanufacturing anda groupof economicacvies of trade,transportaon, and accommodaonand foodserviceacvies. The S&P Global Czech Republic Manufacturing PMI declined fromits expansion outlook in December2021 of 59.1 to a low of 41.6 points in November,rising to 44.3 points as of February 2023 but remaining onthecontracon outlook. On the price front, input cost and output charge inﬂaon rateseased further amid reportsof lower prices for some raw materials. Suppliers’delivery mes also connued to worsen despite a markedcontracon in input buying across the manufacturing sector.Unemployment increased only slightly from a very lowlevel of 3.5% at the end of 2021to 3.7% in December2022. This resilience of labour markets is even more remarkable asthe Czech Republic integrated a signiﬁcantnumber ofUkrainian refugeesinto itslabour market.Unemployment ratesbelow 4%are typicallyconsidered fullemployment.Inﬂaon accelerated sharply during 2022, with the Czech Republicexperiencing levels that haven’t been seensince the 1990s, peaking at around 18% in September2022. As of February 2023, the year-on-year inﬂaon ratestood at 16.7%. The Czech central bank raised its benchmark interestrate several mes during the year from3.75% to 7.0% at the end ofJune 2022 and remained at that level.The Czech Koruna appreciated in value,reaching EUR/CZK 24.88 at the end of the year.Poland2Over the last decade, the Polish economy hasbeen one of the most dynamic in Europe, withabove averagegrowth rates for the region. Even during thepandemic year of 2020, GDP contracted only by amodest 2.5%,followed by a robust 6.8% expansionin 2021. During 2022, thePolish economy further demonstrated itsrobustness with 4.9% growth.Growth was led by industrial producon as theeconomy connued to rebound from the impact of theCovidpandemic. Sll, consumer spending is expected tohave slowed sharply due to soaring inﬂaon triggeredbyRussia’s invasion of Ukraine andconsequent rate hikes by theNaonal Bank of Poland. TheS&P GlobalManufacturing PMI turnedfrom expansionto contradicon inMay 2022 asit fell below50 points. Aerreachingan intra-year low in August, the PMI connued to climb, reaching 45.6points in December 2022. The consumerconﬁdence index showed a similar intra-year paern.The labour market remained surprisingly robust despite all the uncertainty, with thelatest unemployment rateas of January 2023 at 5.5% versus 5.9% a yearearlier. Aer increasing already during 2021, inﬂaonfurtheraccelerated in 2022 from 9.4% at the beginning of the year to 16.6% at the end of December, reaching 18.4% as1Sources:CzechStatisticalOffice,TradingEconomics,MinistryofLabour and SocialAffairs;MarkitEconomics2Sources:Central StatisticalOfficeofPoland,TradingEconomics MANAGEMENTREPORT|10of February 2023. Consequently, the Naonal Bankof Poland raised its policy rate from 2.25% atthe start of theyear to 6.75% in September, which remained unl today. The Polish Zloty remained broadly stable to the Euro.Selected market focusPrague oﬃce market3At the end of 2022, the total Prague modern oﬃcestock reached 3.8 million m² with 75,400 m² of new oﬃcestock added to themarket, which is c.45% below thelong-term average of approximately130,000 m². For 2023,currently 130,000 m² of compleons are expected and only 55,000 m² for2024. In the second half of 2022, nonew construcon was started, which results in the signiﬁcant decrease in compleons expected in 2024.The oﬃce sector generally does notreﬂect any signiﬁcant structural changesin the occupaonal market,although the pandemic has shied occupancy strategies. Tenants are increasingly looking for more ﬂexibilityinthe workspace to accommodate hybrid working paerns andemphasise wellness and sustainability in theirbuilding selecon. Flexible oﬃce space currently represents 2.7% of the totaloﬃce space, with several ﬂexibleoﬃce centres opened this year.Total gross take-up reached 550,100 m² in 2022, a YoY increase of over45%. Take-up was focused on Prague 4,8 and 1. Tenants from the IT sector (36%), the pharmaceucal sector (10%) and the ﬁnancesector (10%) werethe main drivers of demand. Total net absorpon was posive, with a totalof 73,200 m². Take-up connues tobe supported by growth in oﬃce-based employment.The vacancy rate remained stable at 7.7%, nearly unchanged from 7.8% at year-end2021. The variaon acrosssubmarkets remains substanal, with the lowest vacancy ratein Prague 8 (4.8%) compared to the highest inPrague 3 (23.8%).Prime rents increased to€26.5/m²/month, and average rents atgood locaons ranged from€16.0 to€18.0/m²/month. The annual transacon volume fell to €1.6 billion from €1.9 billion in the previous year. Oﬃceproperes were the most popular asset class, with a share of roughly36%, followed by industrial and logiscsproperes at around 22% and retail properes at20%. Prime yields increased from 4.25% to 4.8% for oﬃceproperes and from 5.75% to 6.25% for retail properes.Warsaw oﬀice market4At the end of December 2022, Warsaw’s total modern oﬃce stock amounted to6.3 million m². The total newsupply delivered to the Warsaw oﬃcemarket in 2022 was approximately 237,000 m²as twelve new oﬃceschemes were completed. The most prominent new compleons included: Varso Tower (63,800 m², HB Reavis)ForestTower (51,500 m², HB Reavis) and SkySAWA II (22,800 m², Phn).Currently, there is only 185,000 m² of oﬃce space under construcon between 2023and 2025, the lowest levelsince 2010. This slowdown in developmentacvity is expected to resultin a supply gap in 2023,pungdownward pressure on future vacancy rates.Leasing acvitywas strong,with 860,000m²in take-upin 2022,including over253,000 m²in Q42022. Companiesare also takinga more conservaveapproach to leasing,renegoang exisng leasesrather than movingto newlocaons. As a result, renegoaons accounted for 40%of total oﬃce take-up – the highest annualﬁgure onrecord. New deals, including pre-let transacons, represent 45% of the leases.3Source: Prague ResearchForum,Cushman&Wakefield,JLL4Source: PINK, JLL,CBRE,AvisonYoung,BNP ParipasReal Estate MANAGEMENTREPORT|11Since the start of the year, Warsaw’s vacancy ratehas declined by 1.1 p.p. to 11.6%,with lower rates insidecentral zones. Locaon remains a crucial factor in tenants’ decisions, withthe city centre and CBD zones beingthe most popular submarkets.Prime oﬃce property rent increased in 2022, ranging between €26 and €28/m²/month in the city centre and upto €19/m²/monthoutside ofthe area.Rental ratesare expectedto connueto risein 2023due tothe newsupplygap leading to limited rental opportunies and rising construcon costs for new schemes.Poland’s commercial real estate investment market grew by almost 2% to €5.9billion in 2022 versus €5.7 billionin the previousyear. Oﬃce properes generatedthe highest transacon volume,with a marketshare of roughly36% or €2.1 billion. Industrial and logiscsproperes ranked second with €2.0 billion and amarket share ofapproximately 34%. The transacon volume for retail properesrose to roughly €1.5 billion or26%. Yieldsincreased by 75 basis points to 5.25% for oﬃce properes and by 50 basis points to 6.25% for retail properes. MANAGEMENTREPORT|12OPERATIONS OF THE GROUP IN 2022The Group is engaged in ﬁnancing of andrendering of services to enes within the CPIPG Groupand also holdsand operates a signiﬁcant property porolio.Financing of CPIPG GroupThe Groupacts asan internalﬁnancing entywithin theCPIPG Groupand shallﬁnance thereal estatecompanies(SPVs) by intra-group loans.In order to fundthe intra-group loans, CPIPGraises external ﬁnancingandprovides thesefundstoCPIFIM.Subsequently,CPIFIMprovides thefundsin aformof loanstotherespecveSPVs.In 2022, the Group connued to provide the equity loans to other enes within the CPIPG Group.The Group generated interest income of €216 million in2022, which represents an increase by €4.5 million,comparedto 2021.As at 31 December 2022, the Group provided loans to related pares inthe amount of €4,713.0 million, whichrepresents a decrease by €421.9 million compared to 31December 2021. As at 31 December 2022, the loansprovided in the amount of €144.6 millionand €4,568.4 million were classiﬁed ascurrent and non-current,respecvely.Rendering of services to CPIPG GroupCPI FIM, as the service company within the CPIPGGroup is used to provide its aﬃliates witha wide range ofmanagement andkey businessservices. Keystrategic services providedby CPIFIM mainlyincluded developmentof investment strategies andplans for SPVs, communicaonwith banks andﬁnancial strategy planning, analysesof markets, negoaons and maintaining relaonships with key tenants.Since the beginning of 2022, CPI FIM stopped providing the vastmajority of such services to the CPIPG Group,especially due to COVID-19 travel restricons. MANAGEMENTREPORT|13PROPERTY PORTFOLIOTotal Property PorolioThe Group concentrates on long-term investments and real-estateleases, primarily in the Central Europeanregion. The Group owns rentalincome-generang properes mainly in the oﬃcesegment but is also focusedonan extensive porolio of land plotsin the Czech Republic. Addionally, theGroup has some developmentprojects.The property porolio of the Group is reported on the balance sheet under the following posions:•Investment property•Property, plant and equipment•Inventories•Assets held for sale“Investment property” consists of rental properes, investmentproperty under development and land bank.Investment property under development represents projects currently in progress,which will be reclassiﬁedby the Group as rental properes aercompleon. Land bank represents properes held fordevelopmentand/or capital appreciaon.Czech RepublicPropertyportfoliovalue:€970millionLand bank area:17,977,000 sqmGross leasablearea:9,000sqmPotentialGSA/GLA:12,000 sqmPolandPropertyportfoliovalue:€592millionLand bank area:14,000sqmGross leasablearea:157,000sqmItalyPropertyportfoliovalue:€51millionNo.of residential units:5No.of hotelrooms:97FrancePropertyportfoliovalue:€27millionNo.of residentialunits2 MANAGEMENTREPORT|14“Property, plant and equipment” comprises hotel properes or advancespaid for construcon works on theprojects.“Inventories” comprise properes that are underdevelopment or have been ﬁnished and areintended fora future sale in the ordinary course of business.“Assets held for sale” consist of properes presented inaccordance with IFRS 5 “Non-current Assets Held forSale and Disconnued Operaons” which are to be sold due to the intenon of the management.The property porolio report coversall properes held by theGroup, independent of the balance sheetclassiﬁcaon. These properes are reportedas income-generang properes (generang rental income orincome from operaons), developmentprojects (investment property projectsunder development andinventories) or landbank.The following chart reconcilesthe property assets ofthe Group as reportedon the balance sheetas at 31 December 2022 with the presentaon in our porolio report:Balance sheet classiﬁcaon of the Group property porolioClassiﬁcaonin the GroupportfolioreportNon-current assetsInvestment Property €1,640millionStanding property; €697 millionIncomegenerangrentalproperes;€697 millionUnder development; €13 millionLand Bank; €930 millionIncomegenerangoperaonalproperes; €--millionProperty Plant andequipment; €3 millionPPE; €-- millionDevelopment;€13 millionOther PPE; €3millionCurrent assetsAsset held for sale; €--millionAsset held for sale; €-- millionLand Bank;€930 millionInventories; €0.4millionUnder development; €-- millionOutside thePropertyportfolio; €3millionOther inventories; €0.4millionProperty ValuaonThe consolidated ﬁnancial statements of the Group as at 31December 2022 were prepared in compliance withInternaonal Financial Reporng Standards (IFRS)as adopted by the European Union,which include theapplicaon of the fair valuemethod. Since the Investmentproperes owned by theGroup must be statedat fairvalue, the annual valuaon of these properes by independent experts is recommended.The property porolio valuaon as at 31 December 2022 is based on reports issued by: MANAGEMENTREPORT|15-Jones Lang LaSalle (further “JLL”). JLL is a ﬁnancialand professional services company specializing in realestate services and investment management. JLL has morethan 98,000 employees across 328 corporateoﬃces in more than 80 countries and serves the local, regional and global real estate needs of their clients.-CBRE is a commercial real estate services and investment ﬁrm. It isthe largest company of its kind in theworld. It is based in Dallas, Texas and operatesin 500 oﬃcesworldwide and serves clients in morethan 100countries, employing more than 105,000 global professionals.-Colliers is a leadingdiversiﬁed professional services andinvestment management company. Colliersoperates in 63 countries and draws on the experse of over 18,000professionals working collaboravely toprovide expert real estate and investment advice to clients.-Cushman&Wakeﬁeld (also “C&W”). C&W is one of the leading commercial real estateservices companies,providing a full range of services to real estate tenats, developers and investors on a local and internaonalbasis. C&W has about 400 oﬃces in 60 countries, employing more than 50,000 professionals.-RSM inCZ&SK (also“RSM”). RSMis part ofthe sixth largestnetwork ofprofessional ﬁrms RSMInternaonal.RSM Internaonal operates in 120 countries,has 860 oﬃces and more than 51,000professionals. RMSprovides clients with services in theﬁeld of mergers & acquisions, valuaons,tax, trustee services,accounng and payroll.-B.S.O. spol s.r.o. (also “BSO”).BSO provides knowledge and expert advice acrossbusiness valuaon,registered trademark valuaon, valuaon of receivables, movable asset valuaon, real estate valuaon andreal burden valuaon. BSO is a small local valuator.Cushman&Wakeﬁeld, RMS CZ&SK, BSO, Acquision costs, internal MANAGEMENTREPORT|16The following table shows the carryingvalue of the Group’s propertyporolio as at 31 December2022and 31 December 2021:PROPERTYPORTFOLIO asatNo ofproperesNo.ofunitsGLA Oﬃce ResidenalDevelop. Hotel RetailLandbankPPvaluePPvalue31 December2022No. ofhotelroomsthousandsqm€million€ million€ million€million€million€million€million%CzechRepublic3----925--13--2930970 59%Poland4----157592--------0.4592 36%Italy1597----25--26----513%France--2------27--------272%The GROUP879716661752132629301,640100%PROPERTYPORTFOLIO asatNo ofproperesNo.ofunitsGLA Oﬃce Residenal Develop. HotelRetailLandbankPPvaluePPvalue31 December2021No. ofhotelroomsthousandsqm€million€ million € million€million € million€million€million%CzechRepublic2----926------2866894 56%Poland4----157614--------0.4614 39%Italy1597----25--21----463%France--3------36--------362%The GROUP789716664061--212866 1,590 100%The Group’sproperty value totals€1,640 million asat 31 December2022 (31Dec 2021:€1,590 million), ofwhich38% isrepresented byoﬃce and57% isrepresented byland bank.The majorityof theGroup’s propertyporoliois located in the Czech Republic with 59%, Poland with 36%, followed by Italy with 3% and France with 2%. MANAGEMENTREPORT|17The total net change of €50 million in the porolio value in 2022 was mainly aributable to the following:•Disposals of €68million, comprising thesale of severalland plotsin theCzech Republic anda residenalproperty in France;•Change in fair value of €82 million, represented primarily by revaluaon of a landbankporolio in theCzechRepublic, andFX impact;•Addions of €36 million,mainly spent on Investment Property within the whole Group. MANAGEMENTREPORT|18OﬃceKey Figures – December 202292.3%5OccupancyNumber of properties617 million€165,000sqmProperty valueGrossleasable areaOﬃce poroliorepresents animportant segmentof investmentacvies ofthe Group.As at31 December2022,the Group owns buildings in Poland and in the Czech Republic.OFFICE31 December 2022NoofproperesPPvalue PPvalueGLAOccupancyRent per sqm Outstanding ﬁnancing€ million% thds. sqm%€€ millionPoland459296%15793.1%18.0--CzechRepublic1254%876.4%14.2--The GROUP5617100%16592.3%17.8--OFFICE31 December 2021NoofproperesPPvalue PPvalueGLAOccupancyRent per sqm Outstanding ﬁnancing€ million% thds. sqm%€€ millionPoland461496%15795.2%17.6--CzechRepublic1264%889.6%7.5--The GROUP5640100%16595.0%17.1--•Eurocentrum Oﬃce, WarsawEurocentrum Oﬃce has a highest LEED level of cerﬁcaon,i.e.PLATINUM and oﬀersover 85,000 sqmof leable space.Eurocentrum Oﬃce is a modern oﬃcebuilding with many eco-friendly soluons, for example: rainwateris used for ﬂushingtoilets and watering greenery in atrium - savings in drinking waterconsumpon; savings in electricityconsumpon for generalbuilding systems; heatisland eﬀect reduconwith theemployment of high light reﬂecng roof membrane etc.Furthermore, Eurocentrumhas 1,500sqm atriumwith naturalvegetaon, awide rangeof shopsand restaurants,excellent access to daylight as a resultof large glazing areas, fresh air exchange process wellabove average,oﬃce space is not overheated in the summer andamenies dedicated to persons using alternave means oftransportaon: parking spaces for bicycles (over200 parking places), changing rooms andshowers and 22charging staons for electric cars. In2016, a sky apiary was created on theroof of the Eurocentrum oﬃcebuilding. MANAGEMENTREPORT|19•Warsaw Financial Center,WarsawWarsaw Financial Center,one ofWarsaw’smost presgiousskyscrapers (LEED Gold), was completed in1998 and oﬀers almost50,000 sqm ofgrade A oﬃce spaceacross 32 ﬂoors. Itwas designed bythe American architects Kohn Pedersen Fox Associates in cooperaonwith A. Epstein & Sons Internaonal.Warsaw Financial Center has avery good locaon. WFC is located only0.6 km from Warsaw’s maintrain staon, 8.3 km from internaonal WarsawChopin Airport and39.3 km from Warsaw Modlin Airport.Warsaw Financial Center is a 32-story high skyscraper with sixteenelevators, open space oﬃces with colorfulwalls, huge Marylin Monroe prints, andcomfortable sofas for creave brainstorming, andclassic melessinteriors in understated hues that support the uniqueness of the building.At any me during the day, the ﬁrstsix ﬂoors of the building oﬀer 350 parking spaces for cars and bicycles.Currently, WFC ranks among the most presgious high-risebuildings in Poland. Top Polish and internaonalcorporaons have been aracted by its outstanding quality (Google, Bloomberg and Kompania Piwowarska).•Equator IV Oﬃces, WarsawEquator IV Oﬃces was constructed in 2018 and isof a modern A-classspeciﬁcaon (BREEAM Very Good).It has 16 abovegroundand 4underground levels comprising226 parking spaces. ThePropertyconsists of a stand-alone oﬃce buildingcomprising more than 21,000leasable sqm, situated on a site with a total area of 2,900 sqm.Property is located in Warsawwithin the Ochota district, ina distance ofca. 3 km to the Palace of Culture andScience, considered as a centralpoint of Warsaw. The oﬃce building is situatedat the main east-westarterial road in Warsaw – Al. Jerozolimskiewithin a third largest oﬃce districtin Warsaw– “Jerozolimskiecorridor”. The area is a recognized oﬃce locaon providingdirect access and reasonable distance to the citycentre as well as convenient access to the Warsaw ring road.•Diana Oﬃce, WarsawThe property was constructed in 2004 andcomprises about 1,500 sqmof rentable area. The Property islocated in Warsaw city centre, alongChmielna Street, which forms one of the best recognizable retailstreetsof the city. The buildingis of a reinforced concretestructure with hip roof.The property is fully let to one tenant - Goethe Instut. MANAGEMENTREPORT|20•Mayhouse, PragueThe Mayhouse oﬃce building islocated in the sought-aer area ofPankrác, Prague 4. Mayhouse has an excellent accessibility. Only a fewminutes' walk away is themetro lineC Pražského povstání and tramstaon Vozovna Pankrác is just aroundthe corner. By car, youcanpromptly reachthe historiccity centreas wellas toPrague ringroad andD1 motorway.The oﬃcebuilding hassix aboveground ﬂoorsand oﬀersabout 8,000sqm ofleasable modernspace. Theinteriorof the premises comprises modern, 'A' grade oﬃce areas, which include air-condioned oﬃces withsuspendedceilings, double ﬂoors, openable windows, kitchenees and an electronic access system. Fitness, showers, bikestorage andlounge aresituated onthe groundﬂoor. Thereare also64parking spacesin theunderground parkinggarage. MANAGEMENTREPORT|21Land bankKey Figures – December 2022930 million€17,991,000sqmProperty valueTotal areaLand bank is comprised of an extensive porolio of land plots primarily inthe Czech Republic. Plots are oen inaracve locaons, either separate or adjacent to exisng commercial buildings orin the city centre and theirvalue connues to increase withthe growth of surrounding infrastructure.Out of the total plotsarea,approximately 11.3% are with zoning.LANDBANK31 December 2022Total areaArea withzoningArea withoutzoningPPvaluePPvalueOutstandingﬁnancingthds. sqm thds. Sqmthds. Sqm€ million%€ millionCzechRepublic17,9772,01915,95893099.9%--Poland1414--0.40.1%--THE GROUP17,9912,03315,958930100%--LANDBANK31 December 2021Total areaArea withzoningArea withoutzoningPPvaluePPvalueOutstandingﬁnancingthds. sqm thds. Sqmthds. Sqm€ million%€ millionCzechRepublic18,0612,01216,04986699.9%--Poland1414--0.40.1%--THE GROUP18,0752,02616,049866100%--The landbank portfolio includes:•Former brownﬁeld:(1)Pragain Prague amounng to circa 64,200 sqm, which are zoned, are prepared for residenaldevelopment with expected start during 2023;(2)Nová Zbrojovkain Brnowith 231,600 sqm thatwill be used formixed development(Commercial & Residenal).•Bubnylocated close to the city centre. Bubny remains the lastbrownﬁeld plot in the centre of Pragueand theGroup intendsto developmixed-use areaconsisng of residenaland commercialunits, oﬃcesand shops as well as educaonal, medical, and cultural facilies. In addion, amodern train terminal atVltavská metro staon and large green spaces willbe incorporated. The main goal for the mid-termperiod is to connue the process of changing theBubny masterplan. The plot of Bubny amounng toover 200,000 sqm of land in Prague 7 is at the core ofthe commercial development pipeline in CentralEurope.On 26 June 2018, the Group disposedof an 80% stake of Bubny Development,s.r.o. In accordancewith IFRS 10, through its remaining 20% stake the Group retained controlover this subsidiary which iswhy it is consolidated by the Company.•Land plot Holešovice(at the metro line C, staon NádražíHolešovice) of 10,000 sqm is strategicallylocated nearby the Group’s exisng landbank in Bubny. The land plot was leasedback to the seller andwill connue to operate as a bus terminal. MANAGEMENTREPORT|22During 2022, the Group extended its land plots area in theCzech Republic by 148,000 sqm. On the other hand,the Group sold several land plots in the Czech Republic,resulng intoa decrease of the total Group’s landbankarea by 226,000 sqm. The Group’s land plot inPrague 9 - Vysočany (more than 6,000 sqm) has beenused fordevelopment construcon. MANAGEMENTREPORT|23ResidenalKey Figures – December 202252 million€7Property valueNumber of unitsThe Group currently owns 7 residenal units. Two of themare located in the district of Saint-Anne and MontBoron in France. A building with ﬁve residenal units is located on Piazza della Pigna in Rome, Italy.During the ﬁrst half of 2022, the Group sold a residenal property close to the city of Nice to CPIPG Group.RESIDENTIAL31 December 2022PPvaluePPvalueOccupancyNo. of unitsNo. of rentedunitsOutstandingﬁnancing€ million%%€ millionFrance2753%0.0%2--21Italy2547%0.0%5----The GROUP52100%0.0%7--21 Occupancy based on rented unitsRESIDENTIAL31 December 2021PPvaluePPvalueOccupancyNo. of unitsNo. of rentedunitsOutstandingﬁnancing€ million%%€ millionFrance3659%33.3%3121Italy2541%0.0%5----The GROUP61100%12.5%8121 Occupancy based on rented units•Villa Lou ParadouNeo provençal style villa dang from the 1970’s is exposed to the South-West side and it is used as residenal accommodaon. It consists of walk-up basement, a ground ﬂoor with one adjoining service house (studio)below the main house and a swimming pool. There is also a horse stable atthe entrance of the property.•Villa Mas Du FiguerThe property consists of a private villa used as residenal accommodaon,arranged over a basement, a ground ﬂoor and ﬁrst upper ﬂoor. There isalso a guest house (comprised of 4 bedrooms and a guard house), a gymand a garage. The outside facilites include two swimming-pools and atennis court. MANAGEMENTREPORT|24•Residenal property Piazza della PignaThe sixteenth-century building has ﬁve above-ground ﬂoors, a warehouseand car parking on the underground level, and a winter garden on theground ﬂoor. The rooms are built around a staircase connecng the ﬁveﬂoors, all decorated with high-end ﬁnishes and superb marble and woodinlays. MANAGEMENTREPORT|25HotelsKey Figures – December 202226 million€1Property valueNumber of properties97Number of roomsIn 2021, the Group acquired the Acaya resort in Puglia, Italy.HOTELS31 December 2022No. of properesNo. ofroomsPPvaluePPvalueOutstanding ﬁnancing€ million%€ millionItaly19726100%--The GROUP19726100%--HOTELS31 December 2021No. of properesNo. ofroomsPPvaluePPvalueOutstanding ﬁnancing€ million%€ millionItaly19721100%--The GROUP19721100%--•Hotel AcayaThe Acaya resort is surrounded by the natural oasis of Le Cesine,with its extraordinary biodiversity, and is located less thanﬁvekilometres from the Adriac Sea. It oﬀers 97rooms and suites,18 hole golf course, football ﬁeld, an extraordinary1,200 sqmspa, indoor and outdoor pools. MANAGEMENTREPORT|26RetailKey Figures – December 20222 million€1Property valueNumber of properties500sqmGrossleasable areaThe Group currently owns about 500 sqm of a rentable space suitable for a fast food operator. In October 2021,the space was provided to McDonald's,which also oﬀers a drive-thruservice. The lease agreement withMcDonald's was signed unl September 2041. The property is located in the Vysočany district, Prague.RETAIL 31December 2022NoofproperesPPvaluePPvalueGLAOccupancyRent persqmOutstanding ﬁnancing€ million%thds. sqm%€€ millionCzechRepublic12100%0.5100%17.6--The GROUP12100%0.5100%17.6--RETAIL 31December 2021NoofproperesPPvaluePPvalueGLAOccupancyRent persqmOutstanding ﬁnancing€ million%thds. sqm%€€ millionCzechRepublic12100%0.5100%15.0--The GROUP12100%0.5100%15.0-- MANAGEMENTREPORT|27DevelopmentKey Figures – December 202212,000sqm13 million€Potenal gross saleable/ leasableareaDevelopmentDuring the second half of 2022, theGroup started thedevelopment project Kolbenova park in Prague with anexpected compleon in 2024. In total,the project will create sixapartment blocks, which will provideapproximately 1,000 modern ﬂats. Most of the ﬂats will include a balcony,terrace or green terrace, a reservedparking space and basement storage.DEVELOPMENT31 December 2022Noof properesPotenalGSA/GLADevelopmentDevelopmentOutstandingﬁnancingthds. sqm€ million%€ millionCzechRepublic11213100%--THE GROUP11213100%--DEVELOPMENT31 December 2021Noof properesPotenalGSA/GLADevelopmentDevelopmentOutstandingﬁnancingthds. sqm€ million%€ million------------THE GROUP---------- MANAGEMENTREPORT|28FINANCINGCash and cash equivalentsAs at 31December 2022, cash andcash equivalents consistof cash atbank of €104.1million(2021: €210.1 million) and cash on hand of €2 thousand (2021: €2 thousand).Financial liabiliesFinancial debts amount to €4,899.9 million, including mainly loans from CPIPG (€4,298.1 million).Financial debts decreased by €761.9 million. This variaon of€1,007.8 million is mainly due to oﬀset oflong-term loans from and to CPI PG SA. On the other hand, long-term loans provided by GSG oﬃces increased due toaddional drawdown of EUR 228.5 million. MANAGEMENTREPORT|29RESULTS AND NET ASSETSIncome statementIncome statement for the year ended 31 December 2022 is as follows:12 month period ended31 December 202231 December 2021Gross rental income34,68534,880Service charge and other income11,15032,499Cost of service and other charges(10,449)(9,719)Property operang expenses(3,485)(4,048)Net service and rental income31,90153,612Hotel revenue597246Hotel operang expenses(480)(248)Net service and rental income117(2)Total revenues46,43267,625Total direct business operang expenses(14,414)(14,015)Net business income32,01853,610Net valuaon gain on investment property62,674263,702Net gain on the disposal of investment property and subsidiaries7,8393,746Net gain on the disposal of other investments-6,175Amorzaon, depreciaon and impairments(2,726)3,455Administrave expenses(6,679)(14,022)Other operang income513704Other operang expenses(554)(827)Operang result93,085316,543Interest income215,972211,507Interest expense(125,827)(161,231)Other net ﬁnancial result35,82656,554Net ﬁnance income125,971106,830Share of proﬁt of equity-accounted investees (net of tax)1,4811,146Proﬁt before income tax220,537424,519Income tax expense(39,892)(57,676)Net proﬁt from connuing operaons180,645366,843Service charge and other incomeService charge and other income decreased to €11.2 million in 2022 (2021: €32.5 million).The decrease is dueto the decrease in advisory and accounng services charged by CPI FIM of EUR 21.9 million.Net valuaon gainThe net valuaon gain amounts to€62.7 million (€263.7 million in 2021)and comprised of valuaon gainof €107.3 million and valuaon loss of €44.6 million.The valuaon gain was mainly aributable to the Czechproperty porolio(€106.6 million).The gainwas drivenprimarily bythe zoningapprovals, formore detailspleaserefer to note 7.5 of the Consolidated Financial Statements as at 31 December 2022.Administrave expensesAdministrave expenses decreased to €6.7 millionin 2022 compared to €14.0 millionin 2021. In 2022,administrave expenses decrease due to management services provided to CPI FIM by related pares.Net ﬁnance incomeTotal netﬁnance incomehas increasedfrom€106.8 millionin 2021to €126.0million in2022. Theinterest incomeincreased from €211.5 million in 2021 to €216.0 millionin 2022. The increase in interest income reﬂects theincrease of interest ratesin loans providedby the Companyto enes withinthe CPIPG Groupand other relatedpares. The interest expense decreased from €161.2 million in 2021 to €125.8 million in2022. The decrease ininterest expense reﬂects the decrease in loans receivedby the Company from enes within the CPIPG Groupand other related pares.The other net ﬁnancial result has decreased froma gain of €56.6 million in 2021 toa gain of €35.8 millionin 2022. Thenet foreign exchangegain was drivenby retranslaon of loansprovided to relatedpares in foreigncurrencies. MANAGEMENTREPORT|30Balance sheetBalance sheet as at 31 December 2022 corresponds to consolidated ﬁnancial statements.31 December 202231 December 2021NON-CURRENT ASSETSIntangible assets842610Investment property1,640,1101,514,430Property, plant and equipment2,75222,193Equity accounted investees9,7248,190Other investments61,65552,990Loans provided4,568,3944,948,061Trade and other receivables7674Deferred tax asset120,370133,921Total non-current assets6,403,9236,680,469CURRENT ASSETSInventories402355Current tax receivables522116Derivave instruments13,7302,078Trade receivables6,0746,929Loans provided144,579186,859Cash and cash equivalents104,082210,076Other receivables188,058236,795Other non-ﬁnancial assets6,2545,379Assets held for sale-54,586Total current assets463,701703,173TOTAL ASSETS6,867,6247,383,642EQUITYEquity aributable to owners of the Company1,408,2191,238,649Non-controlling interests310,726277,321Total equity1,718,9451,515,970NON-CURRENT LIABILITIESFinancial debts4,653,8625,400,425Deferred tax liability149,139130,866Other ﬁnancial liabilies5,3834,793Total non-current liabilies4,808,3845,536,084CURRENT LIABILITIESFinancial debts246,013261,324Trade payables12,6238,953Income tax liabilies10,063687Other ﬁnancial liabilies70,30759,534Other non-ﬁnancial liabilies1,2891,090Liabilies heldfor sale--Total current liabilies340,295331,588TOTAL EQUITY AND LIABILITIES6,867,6247,383,642Total assets and total liabiliesTotal assets decreased by €516.0 million (7%) to €6,867.6 millionas at 31 December 2022. The main reason isthe decrease of long-term loans provided to enes within the CPIPG Group.Non-current and currentliabilies total €5,148.7 millionas at 31December 2022which represents adecrease of€719.0 million (12.3%) compared to 31 December 2021. The main driverwas an oﬀset with loans provided toCPIPG SA. MANAGEMENTREPORT|31EPRA NRV (former EPRA NAV) and EPRA NDV (former EPRA NNNAV)In October 2019,the European Public RealEstate Associaon (EPRA)published new BestPracceRecommendaons (BPR). EPRANet Asset Value(NAV) and EPRATriple Net Asset Value(NNNAV) are replacedbythree new Net Asset Valuaon metrics: EPRANet Reinstatement Value (NRV), EPRA Net TangibleAssets andEPRA Net Disposal Value (NDV). The Company provides below the calculaonof EPRA NRV as an equivalent offormer EPRA NAV and the calculaon of EPRA NDV as an equivalent of former EPRA NNNAV.As at 31 December 2022, the consolidated equity increasedby €169.6 million. The main driver of this increase isthe proﬁt for the period amounng to €147.2 millionand an increase of translaon reserve by €14.9 million andof revaluaon reserve by €7.5 million.The EPRA Net Reinstatement Value per share asat 31 December 2022 is €1.19 compared to €1.04as at 31December 2021.31 December202231 December2021Consolidated equity1,408,2191,238,649Deferred taxes on revaluaons150,758133,998EPRA Net reinstatement value1,558,9771,372,647Exisng shares (in thousands)1,314,5081,314,508Net reinstatement value in € per share1.191.04EPRA Net reinstatement value1,558,9771,372,647Deferred taxes on revaluaons(150,758)(133,998)EPRA Net disposalvalue1,408,2191,238,649Fully diluted shares1,314,5081,314,508Net disposal value in € per share1.070.94The EPRA Net Disposal Value amountsto€1.07 per share as at31 December 2022 compared to€0.94 at the endof 2021. MANAGEMENTREPORT|32CORPORATE GOVERNANCEPrinciplesGood corporate governance improves transparency and the quality of reporng, enables eﬀecve managementcontrol, safeguards shareholder interests and servesas an important tool to buildcorporate culture. TheCompany is dedicated to acng in the best interests of its shareholders and stakeholders. Toward these ends,itis recognized that sound corporategovernance is crical. TheCompany is committed to connually andprogressively implemenngindustry bestpracces withrespect tocorporate governanceand hasbeen adjusngand improving its internal pracces in orderto meet evolving standards. The Company aims to communicateregularly to its shareholders and stakeholders regarding corporate governance andto provide regular updateson its website.Since the Company was founded in 1991, its accounts havebeen audited regularly each year. KPMG served asauditor of the Company since 2013. In2019, the Company tendered for a new auditor.The Company´s AuditCommiee recommended an appointment of Ernst & Young S.A., Luxembourg as theGroup’s new auditor forthe ﬁnancial year commencing on 1 January 2019, which wasapproved by the shareholders’ general meeng.The 2021 annual general meengof shareholders resolved unanimously toappoint Ernst & Young S.A.,Luxembourg, as the approved auditor (réviseur d’entreprises agréé) ofthe Company unl the annual generalmeeng of shareholders of the Company to be held in 2023.In addion, the Company’s porolio of assets is regularly evaluated by independent experts.In 2007, the Company’s Board of Directors adopted the Director’sCorporate Governance Guide and connuesto communicatethroughout theGroup basedon thevalues arculatedby thisguide. Asa companyincorporatedin Luxembourg, the Company’s primary regulator is theCommission de Surveillance du Secteur Financier (the“CSSF”). The Company’s procedures are designed to complywith applicable regulaons, in parcularthosedealing with market abuse. The Company also hasa risk assessment procedure designed to idenfy and limitrisk. In addion, theCompany aims to implement corporategovernance best pracces inspiredby therecommendaons applicable in Luxembourg and Poland.On 23 May 2012, theBoard of Directors electedthe Ten Principles andtheir Recommendaons of theLuxembourg StockExchange asa referencefor itsCorporate GovernanceRules(hps://www.bourse.lu/corporate-governance).The Company’s parent company CPIPG has implemented industrybest pracces with respect to corporategovernance andexternal reporng.In 2019,the CPIPGGroup approvedthe “Codeof BusinessEthics andConductof CPI Property Group” and also newly updated policies governing procurement, supplier and tenants'conduct,an-bribery and corrupon, an-money laundering, sanconsand export controls, whistleblowing, humancapital and employment and corporate social responsibility (CSR). These were adopted forthe Group (for moredetails regarding the applicaon of theCSR policies across the CPIPG Group kindlyrefer to annual report ofCPIPG).Board of DirectorsThe Company is administered and supervised by a Board of Directors made up of at least three members.Appointment of DirectorsThe Directorsare appointedby thegeneral meengof shareholdersfor aperiod ofoﬃce notexceeding sixyears.They are eligible for re-eleconand may be removed at anyme by decision of thegeneral meeng ofshareholders bysimple majorityvote. Inthe eventof avacancy inthe oﬃceof aDirector, theremaining Directorsmay provisionally ﬁll suchvacancy, in whichcase the generalmeeng of shareholderswill hold a ﬁnalelecon atthe me of its next meeng. MANAGEMENTREPORT|33Current Board of DirectorsAs at 31December 2022 theBoard of Directorsconsisted of: 2members represenng themanagement of CPIPGGroup, Mr. David Greenbaumand Mrs. Anita Dubost,and 2 independent members,Mr. Edward Hughes andMr.Scot Wardlaw.Anita Dubost, 1979, TaxManager, execuve member.Anita Dubost was appointed to the Board of Directors in May 2019. Before joiningCPIPG, she worked at TristanCapital Partners as Senior Tax Manager within the Luxembourg Operaons team. Inher role she was in chargeof overseeing the tax structuring of theTristan-managed funds. She was also a member ofthe InvestmentCommiee. Anitabegan hercareer atAtoz (memberof theinternaonal Taxand network)where shewas SeniorAssociate advising mul-naonal clients. Anita holds a Master’s Degreein Law and in Business Administraonspecialized in ﬁnance and tax.David Greenbaum, 1977, Chief Financial Oﬃcer of CPI Property Group, execuve member.David Greenbaum was appointed to the Board of Directors inMay 2019. Before joining CPIPG, he worked fornearly 16 years at Deutsche Bank, where he was most recently co-head of debt capitalmarkets for the CEEMEAregion. David began his career at Alliance CapitalManagement in 1999. In 2000 he joined Credit Suisse FirstBoston beforemoving toDeutsche Bankin 2002.David graduatedmagna cumlaude fromCornell Universitywitha degree in English language and literature.Edward Hughes, 1966, independent, non-execuve member.Edward Hughes has been a member of the Board of Directorssince March 2014. He has been engaged in realestate investment, consultancy and brokerage acvies in Central Europe for more than 20years. Edward is anexperienced real estate and ﬁnance professional havingengaged in many signiﬁcant asset acquision, anddevelopment projects in the region. Edward is a Chartered Accountant, aer starng hiscareer with ArthurAndersen (London – 1988), in September 1991 he transferred to the Prague oﬃce. Sincethis me, he has beenalmost exclusively focused on Central Europe including during hisemployment as an Associate Director of GECapital Europe.Edward isa graduateof TrinityCollege, Dublinwhere hemajored inBusiness andEconomics withHonours (1988).Scot Wardlaw, 1967, independent, non-execuve member.Scot Wardlaw was appointed to the Board of Directors inMay 2020. Scot has over two decades experience inproject and process management in the ﬁeldsof IT, soware and product development inan internaonalenvironment. He currently serves as Managing Director for various realestate investment plaorms based inLuxembourg and is part of Central Business Development at SIMRES Real Estatewhere he manages the group’sstrategic development. Scot graduated magna cum laude from Savannah College ofArt & Design with a degreein Computer Art and Art History.The current members of the Boardof Directors are appointed unlthe annual general meeng of 2023concerning theapproval ofthe annualaccounts ofthe Companyfor theﬁnancial yearending 31December 2022.The independent directors are not involved in management, are not employeesor advisors with a regular salaryand do not provide professional services such as external audit services orlegal advice. Furthermore, they arenot related persons or close relaves of any management member or majority shareholder of the Company.The Board of Directors meengs are held as oen asdeemed necessary or appropriate. All members, and inparcular the independent and non-execuve members, are guidedby the interests of the Company and itsbusiness, suchinterests including butnot limited tothe interests ofthe Company’sshareholders andemployees. MANAGEMENTREPORT|34Powers of the Board of DirectorsThe Boardof Directors representsthe shareholdersand actsin thebest interests ofthe Company.Each member,whatever his/her designaon, represents the Company’s shareholders.The Board of Directors is empowered to carry out alland any acts deemed necessary or useful in view oftherealizaon of the corporate purpose; all maers that are not reserved forthe general meeng by law or by thepresent Arcles of Associaon shall bewithin its competence. In its relaonshipwith third pares, the Companyshall even bebound by actsexceeding the Company’scorporate purpose, unlessit can provethat the thirdpartyknew such act exceededthe Company’s corporate purpose orcould not ignore thistaking account ofcircumstances.DeliberaonsThe Board of Directors may only deliberate if a majorityof its members are present or represented by proxy,which maybe givenin wring,by telegram,telex orfax. Incases ofemergency, theDirectors mayvote inwring,by telegram, telex, fax, electronic signature or by any other secured means.The decisions of the Board of Directors must bemade by majority vote; in case of a e,the Chairman of themeeng shall have the deciding vote.Resoluons signed unanimously by the members of the Board ofDirectors are as valid and enforceable as thosetaken at the me of a duly convened and held meeng of the Board.The Board will regularly evaluate its performance and its relaonshipwith the management. During 2022, theBoard held 5 meengs, with all members being present or represented.Delegaons of powers to Managing DirectorsThe Board of Directors may delegate all or partof its powers regarding the daily management as wellas therepresentaon of the Company with regard to such daily management to one ormore persons (administrateurdélégué), who need not be Directors (a "Managing Director"). The realizaon and the pursuit of alltransaconsand operaons basically approved by the Board of Directorsare likewise included in the daily management ofthe Company. Within this scope, actsof daily management may include parcularlyall management andprovisional operaons, including the realizaon and the pursuit of acquisions of real estate and securies,theestablishment of ﬁnancings, the taking of parcipang interests and the placing at disposal of loans, warranesand guarantees to group companies, without such list being limited.David Greenbaum and Marn Němeček are elected as Managing Directors(administrateurs délégués) of theCompany.Signatory powers within the Board of DirectorsThe Company may be legally bound either by the joint signatures of any two Directors or by the single signatureof a Managing Director.Special commitments in relaon to the elecon of the members of the Board of DirectorsThe Company is not aware of commitments that are in eﬀect as of the date of this report by any pares relangto the elecon of members of the Board of Directors.Management of the CompanyThe management is entrusted with the day-to-day running of the Company and among other things to:•be responsiblefor preparingcomplete, mely,reliable andaccurate ﬁnancialreports inaccordance withthe accounng standards and policies of the Company; MANAGEMENTREPORT|35•submit an objecve and comprehensible assessment of the company’s ﬁnancial situaon tothe Boardof Directors;•regularly submit proposals to the Board of Directors concerning strategy deﬁnion;•parcipate in the preparaon of decisions to be taken by the Board of Directors;•supply the Board of Directors with all informaon necessaryfor the discharge of its obligaons in amelyfashion;•set up internal controls (systems for the idenﬁcaon,assessment, management and monitoring ofﬁnancial and other risks ), without prejudice to the Board’s monitoring role in this maer; and•regularly account to the Board for the discharge of its responsibilies.The members of the management meet on a regular basis to review theoperang performance of the businesslines and the containment of operang expenses.As at 31 December 2022, the Company’s management consisted of the following members:David Greenbaum, Managing Director,Martin Němeček, Managing Director,Erik Morgenstern, Chief Financial Oﬃcer,Anita Dubost, Tax Manager.Commiees of the Board of DirectorsAs at 31 December 2022 the Board of Directors has the following commiees:•Audit Commiee; and•Remuneraon, Appointment and Related Party Transacon Commiee.The implementaon of decisionstaken by these commiees enhancesthe Company’s transparency andcorporate governance.Independent and non-execuve directors are always in the majority of the members of these commiees.Audit CommieeThe Audit Commiee is now comprised of Mr. Edward Hughes, Mr. Scot Wardlaw,and Mrs. Anita Dubost. Mr.Edward Hughes is the president of the Audit Commiee.The Audit Commiee reviewsthe Company’s accounng policiesand the communicaon ofﬁnancialinformaon. In parcular, theAudit Commiee follows the audingprocess, reviews and enhances theCompany’s reporng procedures bybusiness lines, reviews risk factorsand risk control procedures, analyzestheCompany’s groupstructure, assesses thework of externalauditors, examines consolidatedaccounts, veriﬁes thevaluaons of real estate assets, and audits reports. The AuditCommiee has therefore invited persons whosecollaboraon is deemed to be advantageous to assist it in its work and to aend its meengs.During 2022, the Audit Commiee held 4 meengs (with 100% aendance).Remuneraon, Appointment and Related Party Transacon CommieeFollowing the changes in the Boardof Directors composion in 2020 theRemuneraon, Appointment andRelated Party Transacon Commiee (the “Remuneraon Commiee”)is now comprised of of Mr. Edward MANAGEMENTREPORT|36Hughes, Mr.Scot Wardlaw,and Mr.David Greenbaum.Mr. EdwardHughes isthe presidentof theRemuneraonCommiee.The Remuneraon Commiee presents proposals to the Board of Directors about remuneraonand incenveprograms to be oﬀered to the management and the Directorsof the Company. The Remuneraon Commieealso deals with related party transacons.The role ofthe Remuneraon Commieeis, among otherthings, to submit proposalsto the Boardregarding theremuneraon of execuve managers, to deﬁne objecve performance criteria respecng the policy ﬁxed by theCompany regarding the variable part ofthe remuneraon of top management (includingbonus andshareallocaons, share opons or any other rightto acquire shares) and that the remuneraon ofnon-execuveDirectors remains proporonal to their responsibilies and the me devoted to their funcons.During 2022, the role of theRemuneraon Commiee has been assumed directly by the Board of Directors.Descripon of internal controls relave to ﬁnancial informaon processing.The Company has organized the management of internal control by deﬁningcontrol environment, idenfyingthe main risks to which it is exposed togetherwith the level of control of these risks,and strengthening thereliability of the ﬁnancial reporng and communicaon process.Control EnvironmentFor the annual closure, theCompany’s management completes an individualquesonnaire so that anytransacons they have carried out with the Company as “Related pares” can be idenﬁed.The Audit Commiee has a speciﬁc dutyin terms of internal control; therole and acvies of the AuditCommiee are described in this Management Report.Remuneraon and beneﬁtsBoard of DirectorsSee note 1 of the Consolidated ﬁnancial statements as at 31 December 2022.Corporate Governance rules and regulaonsIn reference to the informaon required by paragraphs (a)to (k) of Arcle 11(1) of theLaw of 19May 2006transposing Direcve 2004/25/EC of the European Parliament and of theCouncil of 21 April 2004 on takeoverbids, the Board of Directors states the following elements:(a) The structure of the capital, includingsecuries which are not admied totrading on a regulated market inaMember State, where appropriate with an indicaon ofthe diﬀerent classes of shares and, for each classofshares, the rights and obligaons aaching to it and the percentageof total share capital that it represents:The share capital of the Company is represented by only one class of shares carrying the same rights.The Company shares (ISIN LU0122624777)had been listed on the regulatedmarket of Euronext Paris since 2000and unl their delisng asat 18 February 2016. Out of1,314,507,629 Company shares outstanding, the314,507,629 Company shares (represenng app.23.9% of the total sharecapital) have been admied totradingon the regulated markets of the Luxembourg Stock Exchange and the Warsaw Stock Exchange.(b) Any restricons on the transfer of securies, such aslimitaons on the holding of securies or the need toobtain the approval of the company or other holders of securies, withoutprejudice to Arcle 46 of Direcve2001/34/EC:There is no restricon on the transfer of securies of the Company as at 31 December 2022. MANAGEMENTREPORT|37(c) Signiﬁcant directand indirect shareholdings(including indirect shareholdingsthrough pyramidstructures andcross-shareholdings) within the meaning of Arcle 85 of Direcve 2001/34/EC:To the best of the Company’s knowledge, the following tablesets out informaon regarding the ownership ofthe Company’s shares as at 31 December 2021. The informaon collected is based on the noﬁcaonsreceivedby the Companyfrom any shareholdercrossing the thresholdsof 5%, 10%,15%, 20%, 331/3%, 50% and66 2/3%of the aggregate vong rights in the Company.ShareholderNumber of shares% of capital / vong rightsCPI PROPERTY GROUP (directly)1,279,198,97697.31%Others35,308,6532.69%Total1,314,507,629100.0%(d) The holders of any securies with special control rights and a descripon of those rights:None ofthe Company’sshareholders hasvong rightsdiﬀerent fromany otherholders ofthe Company’sshares.On 8 June 2016 CPI Property Group’s fullyowned subsidiary Nukasso Holdings Limited directly and indirectlyacquired approximately97.31% ofshares inthe Company.As aconsequence, NukassoHoldings Limitedfrom theCPI Property Group became obliged to launch a mandatory takeover bid to purchaseany and all of the ordinaryshares ofthe Company(the “MandatoryTakeover Oﬀer”).On22 August2016, theCzech Oﬃcefor theProteconof Compeongranted themerger clearancefor theacquision ofthe Companyby CPIProperty Group,whereasits decision became ﬁnal and binding on 23 August 2016.On 8 December 2017 the CSSF published press releases in which it stated,inter alia, that it has decided not toapprove the oﬀer document inthe Mandatory Takeover Oﬀer asa consequence of the existenceof anundisclosed concern acon with respect to the Company. On 15 March 2018 the CSSFpublished a press releaseinforming thatthe decisionsdetailed inthe above-menonedCSSF pressreleases of8 December2017 havebeenchallenged before the Luxembourg administrave courts.As of the date of this report, the Company has not received any formal decisionin relaon to the MandatoryTakeover Oﬀer.(e) The system of control of any employee share scheme where the control rightsare not exercised directly bythe employees:This is not applicable. The Company has no employee share scheme.(f) Any restricons on vong rights, such as limitaonon the vong rights of holders of a given percentage ornumber of votes, deadlines for exercising vong rights, or systemswhereby, with the Company's cooperaon,the ﬁnancial rights aaching to securies are separated from the holding of securies:There is no restricon on vong rights.(g) Any agreements between shareholders which are known to thecompany and may result in restricons onthe transfer of securies and/or vong rights within the meaning ofDirecve 2001/34/EC:To theknowledge ofthe Company,no shareholderagreements havebeen enteredby andbetween shareholdersthat arein eﬀectas ofthe dateof thisreport. 97.31%of sharesin theCompany areheld directlyby CPIPROPERTYGROUP.(h) the rules governing theappointment and replacement ofboard members and theamendment of the arclesof associaon:See secon Appointment of Directors of this report. MANAGEMENTREPORT|38(i) the powers of board members, and in parcular the power to issue or buy back shares:The Company has no authorized but unissued andunsubscribed share capital in addion tothe issued andsubscribed corporate capital of €13,145,076.29.(j) any signiﬁcant agreements to which the company is a party and which takeeﬀect, alter or terminate upon achange of control of the company followinga takeover bid, and the eﬀects thereof, exceptwhere their nature issuch thattheir disclosurewould beseriously prejudicialto thecompany; thisexcepon shallnot applywhere thecompany is speciﬁcally obliged to disclose such informaon on the basis of other legal requirements:Under the Securies Note and Summary dated 22 March 2007, with respect tothe issue of the 2014 Warrants,the occurrence of aChange of Control (asdescribed in Condion 4.1.8.1.2.1of the Securies Noteand Summarydated 22 March 2007) could resultin a potenal liabilityfor the Company due to “Changeof ControlCompensaon Amount”.On 10 June 2016 the Company received a majorshareholder noﬁcaon stang that NUKASSO (CYP) and CPIPROPERTY GROUP, whichare ulmately held byMr. Radovan Vitek,hold directly and indirectly1,279,198,976 ofthe Company’s shares corresponding to 97.31% of vong rightsas at 8 June 2016. Accordingly, the Companyissued a Change of Control Noce nofying the holdersof the 2014Warrants that the Change of Control,asdeﬁned in the Securies Note and the Summary for the 2014 Warrants, occurred on 8 June 2016.In accordance with the judgement of the Paris Commercial Court(the “Court”) pronounced on 26 October 2015concerning theterminaon ofthe Company’sSafeguard Plan,liabilies thatwere admiedto theSafeguard, butare condionalor uncalled(such asuncalled bankguarantees, condionalclaims ofthe holdersof 2014Warrantsregistered under ISINcode XS0290764728,provided thatthey wereadmied tothe Safeguardplan), will bepaidaccording to their contractualterms. Pre-Safeguard liabilies thatwere not admied to theCompany’sSafeguard will be unenforceable. As such, only claims of holdersof the 2014 Warrants, whose potenal claimswere admied to the Company’s Safeguard Plan,could be considered in respect ofthe present Change ofControl. Claims of holders of the 2014 Warrants thatwere not admied to the Company’s Safeguard willbeunenforceable against the Company.To the knowledge of the Company, no other agreements have been entered into by the Company.(k) any agreements between the company and its board members oremployees providing for compensaon ifthey resign or are made redundant without valid reason or iftheir employment ceases because of a takeoverbid:As at 31 December 2022, there areno potenal terminaon indemnity payments inplace payable to themembers of the Company'smanagement in theevent of terminaon of theircontracts in excess of thecompensaon as required by the respecve labour codes.Addional informaonLegalform and sharecapitalCPI FIM is a public limited company (“société anonyme”) incorporatedand exisng under Luxembourg law. Itscorporate capital, subscribed andfully paid-up capital of€13,145,076.29 is represented by1,314,507,629 shareswithout nominal value. The accounng par value price is €0.01 per share.Date of incorporaon and terminaonThe Company was incorporatedby deed drawn on9 September 1993 byMaître Frank Baden, foranindeterminate period of me. MANAGEMENTREPORT|39Jurisdicon and applicable lawsThe Company exists under the Luxembourg Act of 10 August 1915 on commercial companies, as amended.Object of businessAs describedin arcle4 ofthe updatedArcles ofAssociaon ofthe Company,its corporatepurpose isthe directacquision of real estate, the holding of ownership interestsand the making of loans to companies that formpart of its group. Its acvity may consist in carryingout investments in real estate, such as the purchase, sale,construcon, valorizaon, management and rental of buildings,as well as in the promoon ofreal estate,whether on its own or through its branches.It has as a further corporatepurpose the holding of ownership interests,in any form whatsoever, in anycommercial, industrial, ﬁnancial or other Luxembourg or foreign companies, whether they are part of the groupor not, the acquision of alland any securies and rights by way ofownership, contribuon, subscripon,underwring or purchase opons, or negoaon, and inany other way, and in parcular the acquisionofpatents andlicenses, theirmanagement anddevelopment, thegranng toundertakings inwhich itholds adirector indirect stake of all kinds of assistance, loans, advancesor guarantees and ﬁnally all and any acvies directlyor indirectlyrelang toits corporatepurpose. Itmay thusplay aﬁnancial roleor carryout amanagement acvityin enterprises or companies it holds or owns.The Company maylikewise carry out alland any commercial,property, real estate andﬁnancial operaons likelyto relate directly or indirectly to the acvies deﬁned above and suscepble to promong their fulﬁllment.Trade registerRCS Luxembourg B 44 996.Financial yearThe Company’s ﬁnancial year begins on the ﬁrst day of January and ends on the thirty-ﬁrst day of December.Distribuon of proﬁts and payment of dividendsEach year, at least ﬁve per centof the net corporate proﬁts are setaside and allocated to a reserve. Suchdeducon ceases being mandatory when such reserve reaches ten percent of the corporate capital, but willresume whenever such reserve falls below ten per cent. Thegeneral meeng of shareholders determines theallocaon and distribuon of the net corporate proﬁts.Payment of dividends:The Board of Directors is entled topay advances on dividends when the legal condionslisted below arefulﬁlled:•an accounng statement must beestablished which indicates thatthe available funds forthedistribuon are suﬃcient;•the amount to be distributedmay not exceed the amount ofrevenues since the end ofthe lastaccounng year for which the accounts have been approved, increased by the reportedproﬁts and bythe deducon made on the available reserves for thispurpose and decreased by the reported lossesand by the sums allocated to reserves in accordance with any legal and statutory provision;•the Board of Directors’ decision to distribute interimdividends can only be taken within two monthsaer the date of the accounng statement described above;•the distribuon may not be determined less thansix months aer the closing date ofthe previousaccounng year and before the approval of the annual accounts related to this accounng year;•whenever aﬁrst interimdividend hasbeen distributed,the decisionto distributea secondone mayonlybe taken at least three months aer the decision to distribute the ﬁrst one; and•the statutory and independent auditor(s) in its (their) report to the Board of Directors conﬁrm(s) MANAGEMENTREPORT|40•the condions listed above are fulﬁlled.Under general Luxembourg law, the condions for making advanceson dividends are less stringent than thecondions listed above, however, the more restricve provisions of theCompany’s Arcles of Associaon willprevail as the recentchanges under Luxembourglaw have notyet been reﬂectedin the Arcles ofAssociaon ofthe Company.When an advance distribuon exceeds the amount of dividend subsequently approvedby the general meengof shareholders, such advance payment is considered an advance on future dividends.Exceeding a thresholdAny shareholder who crosses a threshold limit of5%, 10%, 15%, 33 1/3%, 50% or 66 2/3% of the totalof thevong rights must inform theCompany, which is then obligedto inform the relevant controlling authories.Anyshareholder not complying with this obligaonwill lose his vong rightsat the next general meeng ofshareholders, and unl proper majority shareholding noﬁcaon is made.Documents on displayCopies of the following documents maybe inspected at the registered oﬃce of theCompany (tel: +352 26 47 671), 40 rue de la Vallée, L-2661 Luxembourg, on any weekday (excludingpublic holidays) during normal businesshours:1. Arcles of Associaon of the Company;2. Audited consolidated ﬁnancial statements of the Company as of and for theyears ended 31 December 2022,2021, and 2020, prepared in accordance with IFRS adopted by the European Union;The registraon document(s) and most of the informaon menoned are available on the Company’s website:www.cpiﬁmsa.comThe registraon document(s) is available on the website of Luxembourg Stock Exchange: www.bourse.lu.External AuditorsErnst&YoungS.A.,LuxembourgwereelectedastheGroup’snewapprovedauditor(réviseurd’entreprisesagréé)for the ﬁnancial year commencing on 1 January2019. The 2021 AGM resolved to approve Ernst &Young S.A.,Luxembourg as auditors for the ﬁnancial year ending 31 December 2022.ReporngThe consolidated managementreport and thestand-alone management reportare presented underthe form ofa sole report. MANAGEMENTREPORT|41SHAREHOLDINGShare capital and vong rightsThe subscribed and fully paid-up capital ofthe Company of €13,145,076.29 is represented by 1,314,507,629shares without nominal value. The accounng par value is €0.01 per share.The Company has no authorized butunissued and unsubscribed share capital in addionto the issued andsubscribed corporate capital of €13,145,076.29.All the shares issued by the Company are fully paid up and have the same value. The shareswill be either in theform of registered shares or in the form of bearershares, as decided by the shareholder, except to the extentotherwise provided by law.The shareholdercan freelysell ortransfer theshares. Theshares areindivisible andthe Companyonly recognizesone holder per share. If there are several owners per share, the Company isentled to suspend the exercise ofall rights aached to such shares unlthe appointment of a single person as owner of theshares. The sameapplies in the case of usufruct and bare ownership or security granted on the shares.Joint owners of shares must be represented withinthe Company by one of them consideredas sole owner or bya proxy, who in case of conﬂict may be legally designated by a court at the request of one of the owners.Shareholder holding structureTo the best of the Company’s knowledge, the following tablesets out informaon regarding the ownership ofthe Company’s shares as at 31 December 2021. The informaon collected is based on the noﬁcaonsreceivedby the Companyfrom any shareholdercrossing the thresholdsof 5%, 10%,15%, 20%, 331/3%, 50% and66 2/3%of the aggregate vong rights in the Company.ShareholderNumber of shares% of capital / vong rightsCPI PROPERTY GROUP (directly)1,279,198,97697.31%Others35,308,6532.69%Total1,314,507,629100.0%Authorized capital not issuedThe Company has no authorized but unissued andunsubscribed share capital in addion tothe issued andsubscribed corporate capital of €13,145,076.29. MANAGEMENTREPORT|42POTENTIAL RISKS AND OTHER REPORTING REQUIREMENTSThe Group’s acvies expose it to a variety of ﬁnancial risks:market risk (including foreign exchange risk, pricerisk, cashﬂow interestrate riskandotherrisks), creditrisk andliquidity risk.This notepresentsinformaonaboutthe Group’s exposure to each of the above risks, the Group’sobjecves, policies and processes for measuringand managing risk, and the Group’s management of capital.The primary objecves of the ﬁnancial risk management funcon areto establish risk limits, and then ensurethat exposure to risks stays within these limits.Supervision of the Group’srisk is accomplished throughdiscussions held by execuvemanagement inappropriate frameworks together with reporng and discussions with the Board of Directors.Subsequent closing eventsPlease refer to note 12 of the Consolidated ﬁnancial statements as at 31 December 2022.Other reporng requirements•The Company does not have any acvies in research and development.•The Company does not have any branches.Financial risks exposureFor a thorough descripon of the principal risks and uncertaines,please refer to note 7 of the Consolidatedﬁnancial statements as at 31 December 2022.The primary objecves of the ﬁnancial riskmanagement funcon are to establish risk limits, and then ensurethat exposure to risks stays within these limits.Supervision of the Group’srisk is accomplished throughdiscussions held by execuvemanagement inappropriate frameworks together with reporng and discussions with the Board of Directors.Certain subsidiaries may be in breach of loan covenantsAs ofthe dateof thisreport, noneof theCompany’s subsidiariesare inbreach ofﬁnancial raosspeciﬁed intheirrespecve loan agreements and administrave covenants.The Group’s ﬁnancing arrangements could give rise to addional riskWhen the Group acquires a propertyusing external ﬁnancing, the Group usually provides amortgage overthe acquired property and pledges the shares of the speciﬁc subsidiary acquiringthe property. There can be noassurance thatthe registraonof mortgagesand pledgeshas beenconcluded inaccordance withapplicable locallaw, and a successful challenge againstsuch mortgages or pledges may entle thelender to demand earlyrepayment of its loan to the Group. The Group’s ﬁnancing agreements containﬁnancial covenants that could,among other things, require the Group to maintain certain ﬁnancialraos. In addion, some of the ﬁnancingagreements require the prior wrien consent of the lender to any merger,consolidaon or corporate changesof the borrower and the other obligors. Should the Group breach any representaons, warranesor covenantscontained in any such loan or other ﬁnancing agreement, orotherwise be unable to service interest paymentsor principal repayments, the Group may be required immediately to repay suchborrowings in whole or in part,together with any related costs. If the Group does not havesuﬃcient cash resources or other credit faciliesavailable to make such repayments,it may be forced to sellsome or all of the properescomprising the Group’sinvestment porolio, or reﬁnance thoseborrowings with the risk that borrowingsmay not be able to bereﬁnanced or that the terms of such reﬁnancing may be less favorable than the exisng terms of borrowing. MANAGEMENTREPORT|43Market riskForeign currency riskCurrency risk is applicable generally tothose business acvies and development projects wherediﬀerentcurrencies are used for repayment of liabilies under the relevant ﬁnancing tothat of the revenues generatedby the relevant property or project. Foreign currency riskis the risk that the fair valueor future cash ﬂowsof a ﬁnancial instrument will ﬂuctuatebecause of changes in foreign exchange rates. The Groupis exposedto currency risk mainly on sales,purchases and borrowings that are denominated in acurrency other thanthe respecve funconal currencies of Group enes, primarily the CZK,but also others (see note 7.3 Marketrisk of the Consolidated ﬁnancial statements as at 31 December 2022). Thefunconal currency of most Groupcompanies is the Czechkoruna and asigniﬁcant poron of revenuesand costs arerealised primarily in theCzechkoruna.For more detail, please refer to note 7.3 Foreign currency risk of the Consolidated ﬁnancial statements asat 31December 2022.Price riskTo manage its price risk arising from investmentsin equity securies and such embedded derivaves,the Groupdiversiﬁes its porolio or only enters these operaons if they are linked to operaonal investments.For more detail, please refer to note 7.3 Price riskof the Consolidated ﬁnancial statements as at 31 December2022.Interest rate riskThe Group uses ﬁxed rate debt ﬁnancing to ﬁnance the purchase,development, construcon and maintenanceof its properes. When ﬂoang rate ﬁnancing isused, the Group’s costs increase if prevailing interestrate levelsrise. While the Group generally seeks to control its exposure to interest raterisks by entering into interest rateswaps, not all ﬁnancing arrangements are covered by such swaps and a signiﬁcant increase ininterest expenseswould have an unfavorable eﬀect on theGroup’s ﬁnancial results and may havea material adverse eﬀecton the Group’s business, ﬁnancial condion, results of operaons and prospects. Rising interest rates could alsoaﬀect the Group’s ability to make new investmentsand could reduce the value of the properes.Conversely,hedged interests do not allow the Company to beneﬁt from falling interest rates.For more detail, please refer to note 7.3Interest rate risk of the Consolidated ﬁnancial statementsas at 31December 2022.Other risksThe Group is also exposed to property price and propertyrentals risk but it does not pursue anyspeculavepolicy. Even though the Group’s acvies are focused on one geographical area (Central Europe) suchacviesare spread over several business lines (residences, oﬃces) and diﬀerent countries.Credit riskThe Grouphas nosigniﬁcant concentraonsof commercialcredit risk.Rental contractsare madewith customerswith an appropriate credit history. Credit risk is managed by local management and by Group management.For more detail, please refer to note 7.1 Credit risk of the Consolidatedﬁnancial statements as at 31 December2022. MANAGEMENTREPORT|44Liquidity riskFor moredetail, pleaserefer tonote 7.2Liquidity riskof theConsolidated ﬁnancialstatementsas at31 December2022.Capital managementFor more detail, please refer to note 7.4 Capital management of the Consolidated ﬁnancialstatements as at 31December 2022.Risks associated with real estate and ﬁnancial marketsChanges in thegeneral economic andcyclical parameters maynegavely inﬂuence theGroup’s business acvity.The Group’s core business acvity is mainly based on the leng and sale ofreal estate property. The revenuesfrom rents and revenues from sales of real estate propertyinvestments are key ﬁgures for the Group’s valueand proﬁtability. Rents and sales prices depend on economic and cyclicalparameters, which the Group cannotcontrol.The Group’sproperty valuaons maynot reﬂect thereal value ofits porolio, andthe valuaon ofits assets mayﬂuctuate from one period to the next.The Group’s investment property porolio is valuedat least once a year by anindependent appraiser. TheGroup’s property assets were valued as at 31 December 2022. The change in theappraised value of investmentproperes, in each period, determined onthe basis of expert valuaonsand adjusted to account for anyacquisions and sales of buildings and capital expenditures, is recorded inthe Group’s income statements. Foreach Euro of change in the fair value of the investment properes, the net income of the Group changes byoneEuro. Changes in the fair valueof the buildings could also aﬀectgains from sales recorded on theincomestatement (which are determined by reference tothe value of the buildings) and therental yield from thebuildings (which is equal to the rao of rental revenues to the fair value ofthe buildings). Furthermore, adversechanges in the fair value of the buildings could aﬀecttheGroup’s cost of debt ﬁnancing, its compliance withﬁnancial covenants and its borrowing capacity.The values determined by independent appraisers are basedon numerous assumpons that may not provecorrect, and also depend on trends in the relevantproperty markets. An example is the assumpon thattheCompany is a “going concern”,i.e., that it is not a“distressed seller” whose valuaon ofthe property assets maynot reﬂect potenal selling prices. In addion, the ﬁgures may vary substanallybetween valuaons. A declinein valuaon may have a signiﬁcant adverse impact onthe Group’s ﬁnancial condion and results, parcularlybecause changes in property values are reﬂected in the Group’s consolidated netproﬁt. Conversely, valuaonsmay be lagging soaring market condions, inadequately reﬂecng the fair property values at a later me.The Group is also exposed to valuaon risk regarding thereceivables from its asset sales. Management valuesthese receivables by assessing the credit risk aached to the counterparesfor the receivables. Any change inthe credit worthiness of a counterpartyor in the Group’s ability tocollect on the receivable could have asigniﬁcant adverse impact on the Group’s ﬁnancial posion and results.Changing residenal trends or tax policies may adversely aﬀect sales of developments.The Group is involved in residenal, commercial and retail development projects.Changing residenal trendsare likely to emerge within the markets inCentral and Eastern Europe as they mature and,in some regions,relaxed planning policiesmay give riseto over-development, therebyaﬀecng the sales potenalof the Group’sresidenal developments. Changingreal estate taxesor VAT taxesmay also havea notable impacton sales (suchas forexample ahike insales beforeimplementaon ofa taxincrease followedby structurallylower sales).Thesefactors will be considered withinthe investment strategy implemented by theGroup but may not always MANAGEMENTREPORT|45be ancipated and may have a material adverseeﬀect on the Group’s business, ﬁnancial condion,resultsof operaons and prospects. MANAGEMENTREPORT|46CORPORATE RESPONSIBILITYCorporate responsibility andsustainable developmentis atthe coreof thestrategy of theCompany. TheGroup’stop management acvely foster best pracces asan opportunity to improve the cost eﬃciencyof internalprocesses and the value creaon of our main acvity - development of properes, provision of equity loans andmanagement services to other enes within the CPIPG Group.5Environmental, social and ethical maersThe Groupis commiedto high standardsin environmental,social and ethicalmaers. Our staﬀreceive trainingon our policies in theseareas, and are informed whenchanges are made tothe policy. Our environmental policyis to comply with all applicable localregulaons, while pursuing energy-eﬃcient soluons and green /LEEDcerﬁcaon wherever possible. Ethical pracceis a core component of our corporate philosophy;we haveachieved top-quality standards in reporng and communicaons, and have investedin the best professionals.From a social perspecve, we care deeply about all our stakeholders. Our corporate cultureis centered aroundrespect and professionalism, and we believe in giving back to our community.Environmental maersThe Groupfollows apragmac approachto environmentalaspects ofits business.Environmental criteriaare oneof the main aspects of the Group’s development and construcon projects.Before each potenal asset investment, the Group examines the environmental risks. Projectming, progressand budgets are carefully monitored, mostly with the support of externalproject monitoring advisors. Health,safety and environmental risks are monitored before and during construcon.Health and safety, as well as the technical and security installaonsare periodically inspected for checking oftheir status and the conformity with applicable legislaon and local regulaon.As a priority itemfor apartment building renovaons,the Group replaces olderheang systems with naturalgassystems, and seeks to improve the overall level of thermal insulaon in its buildings.Social maersThe Group follows the Environmental, Social and Governance (ESG) framework of its parent company CPIPG.The Group aims to promote personal development of its employees.The Group provides a work environmentthat ismovang, compeveand reﬂectsthe needsof theemployees. TheGroup promotesdiversity andequalopportunity in theworkplace.Employees of the Group conduct annual reviews with theirmanagers, covering also the relaonships of theemployees with their work and working place, as well as the Group in general.Ethical maersThe Group has policies addressing conduct, including conﬂictsof interest, conﬁdenality, abuse of companyproperty and business gis.5For theESGrelatedstatements,also applicabletotheCompany, pleaserefertothemanagement reportofCPIPROPERTYGROUP. MANAGEMENTREPORT|47EU TAXONOMYThe EU Taxonomy is a green classiﬁcaon system that translates the EU’sclimate and environmental objecvesinto criteria for speciﬁc economic acvies for investment purposes.It recognises green, or “environmentallysustainable”, economic acvies that make a substanal contribuon toat least one of the EU’s climate andenvironmental objecves while at the same me not signiﬁcantly harming any ofthese objecves and meengminimum social safeguards.In accordance with the EU TaxonomyRegulaon and based on Annex Iand Annex II of the supplementarydelegated act on the climate targets of theEU Taxonomy,by using the EU Taxonomy Compass,the Group hasidenﬁed all acvies and determined thosedeemed eligible for taxonomy based on thedescripons inthetaxonomy :7.7 – Acquision and ownership of buildingsEligible acvies 7.1 – 7.6 areincluded in 7.7 Acquision andownership of buildings to avoiddouble counng asthese relate to ownership.7.1 – Construcon of new buildings7.2 – Renovaon of exisng buildings7.3 – Installaon, maintenance and repair of energy eﬃciency equipment7.4 – Installaon, maintenance and repair of charging staons for electric vehicles in buildings (and parkingspaces aached to buildings)7.5 – Installaon, maintenance and repair of instruments and devices for measuring, regulang and controllingenergy performance of buildings7.6 – Installaon, maintenance and repair of renewable energy technologiesFor the year 2021,we reported only these activities asbeing environmentally sustainable and therefore eligiblefor taxonomy. For2022,weincluded also reportingof alignment basedon technical screeningcriteria,togetherwith fulﬁlling the minimum social safeguards related to human rights and social standards.We have assessed the Group’s taxonomy eligibility ofrevenue, capital expenditures (addions) and propertyoperang expenses for 2022 relang tothe environmental objecves of “climatechange migaon” and“adaptaon to climate change.”The calculaons were performed in accordance with IFRS in line with the consolidated ﬁnancial statements. MANAGEMENTREPORT|482022 EU Taxonomy acviesRevenuesCAPEX (Addions)OPEXin €millionEligible44.897%13.037%3.587%of that Aligned acvies0.65.70.5Non-eligible1.53%22.563%0.513%Total46.4100%35.5100%4.0100%2021 EU Taxonomy acviesRevenuesCAPEX (Addions)OPEXin €millionEligible66.098%11.860%3.069%Non-eligible1.62%7.840%1.331%Total67.6100%19.6100%4.3100% MANAGEMENTREPORT|49GLOSSARY & DEFINITIONSAlternave Performance MeasuresThe Company presents alternave performance measures (APMs). The APMs used in ourreport are commonlyreferred to and analysed amongst professionals parcipang in the Real Estate Sectorto reﬂect the underlyingbusiness performance and to enhance comparabilityboth between diﬀerent companies in thesector andbetween diﬀerentﬁnancial periods.APMs shouldnot beconsidered asa substutefor measuresof performancein accordance with the IFRS. The presentaon of APMsin theReal Estate Sector isconsidered advantageous byvarious parcipants, including banks, analysts, bondholders and other users of ﬁnancial informaon:•APMs provide addional helpful and useful informaon in a concise and praccal manner.•APMs are commonly used by senior managementand Board of Directors for their decisions and sengof mid and long-term strategy of the Group and assist in discussion with outside pares.•APMs in some cases might beer reﬂect key trends inthe Group’s performance which are speciﬁc tothat sector, i.e. APMs are a wayfor the management to highlight the key valuedrivers within thebusiness that may not be obvious in the consolidated ﬁnancial statements.For new deﬁnions of measures or reasons for their change, see below.EPRA NRV (former EPRA NAV)EPRA NRV assumes that enes never sell assets and aims to represent the value required to rebuild the enty.The objecveof theEPRA NetReinstatement Valuemeasure isto highlightthe valueof netassets ona long-termbasis. Assets and liabilies that are not expected tocrystallise in normal circumstances such as the fair valuemovements on ﬁnancial derivaves and deferred taxes on property valuaon surpluses are therefore excluded.Since the aim of the metricis to also reﬂect what wouldbe needed to recreate the company throughtheinvestment marketsbased onits currentcapital andﬁnancing structure,related costssuch asreal estatetransfertaxes should be included.The performance indicator has been prepared in accordance with best praccesas deﬁned by EPRA (EuropeanPublic Real Estate Associaon) inits Best Pracces Recommendaons guide, availableon EPRA’s website(www.epra.com).EPRA NRV per shareEPRA NRV divided by the diluted number of shares at the period end.EPRA NDV (former EPRA NNNAV)EPRA NDV represents the shareholders’value under a disposalscenario, where deferred tax,ﬁnancialinstruments and certain other adjustments are calculated to the full extent of their liability, netof any resulngtax. The objecve of the EPRA NDV measure isto report net asset value including fairvalue adjustments inrespect of all material balance sheet items which are not reported attheir fair value as part of the EPRA NRV.The performance indicator has been prepared in accordance with best praccesas deﬁned by EPRA (EuropeanPublic Real Estate Associaon) inits Best Pracces Recommendaons guide, availableon EPRA’s website(www.epra.com). MANAGEMENTREPORT|50EPRA NDV per shareEPRA NDV divided by the diluted number of shares at the period end.Equity raoEquity raois ameasure thatprovides ageneral assessmentof ﬁnancialrisk undertakenand iscalculated astotalequity as reported divided by total assets as reported.Project Loan-to-ValueWith respect to a structure of ﬁnancing, the Group no longer providesthe calculaon of this measure, since itmight be confusing for the reader.EPRA NAV and EPRA NAV per shareThe Group no longer provides the calculaon of these measures, since they werereplaced by the calculaon ofEPRA NRV and EPRA NRV per share.EPRA NNNAV and EPRA NNNAV per shareThe Group no longer provides the calculaon of these measures, since they were replacedby the calculaon ofEPRA NDV and EPRA NDV per share.Other deﬁnionsEPRAEuropean Public Real Estate Associaon.Development for rentalDevelopment forRental representscarrying valueof developedassets –ie. underdevelopment orﬁnished assets– being held by the Groupwith the intenon to rent the assets in the foreseeable future.Development for saleDevelopment for Sale represents carrying value of developed assets – ie. under development or ﬁnished assets– being held by the Groupwith the intenon to sell the assets in the foreseeable future.Gross Asset Value (GAV) or Fair value of Property porolio or Property porolio valueThe sum of fair value of all real estate assets held by theGroup on the basis of the consolidaon scope and realestate ﬁnancialinvestments (beingshares inreal estatefunds, loansto thirdpares acvein realestate orsharesin non-consolidated real estate companies).Gross Leasable Area (GLA)GLA is the amount of ﬂoor space available to berented. GLA is the area for which tenants payrent, and thus thearea that produces income for the property owner.Gross Saleable Area (GSA)GSA is the amount of ﬂoor space held by the Group with the intenonto be sold. GSA is the area of property tobe sold with a capital gain. MANAGEMENTREPORT|51MarketvalueThe esmated amount determined by theGroup’s external valuer in accordancewith the RICS ValuaonStandards, for which a property should exchange on the date of valuaon between awilling buyer and a willingseller in an arm’s-length transacon aer proper markeng.Occupancy rateThe rao of leased premises to leasable premises.Potenal gross leasable areaPotenal Gross Leasable Area is thetotal amount of ﬂoor spaceand land area being developedwhich the Groupis planning to rent aer the development is complete.Potenal gross saleable areaPotenal Gross Saleable Area is the total amount of ﬂoor space and land areabeing developed which the Groupis planning to sell aer the development is complete. CPIFIMSociétéanonyme40,ruedela Vallée,L-2661LuxembourgRCSLuxembourgB44.996tél :003522647671fax:0035226476767www.cpifimsa.comCPIFIMS.A.40 ruedelaValléeL-2661LuxembourgR.C.S.Luxembourg B44996(the“Company”)DECLARATIONLETTERFINANCIALREPORTSASAT31DECEMBER20221.1. PersonresponsiblefortheAnnualFinancialReport-Mr.DavidGreenbaum, actingasManagingDirectoroftheCompany,withprofessionaladdressat40ruedelaVallee,L-2661Luxembourg, Grand-Duchy ofLuxembourg,email: [email protected] bythepersonresponsiblefortheAnnualFinancialReportTheundersigned herebydeclaresthat,tothebestofhisknowledge:-theconsolidatedﬁnancialstatementsoftheCompanyasat31December2022,preparedinaccordancewiththeInternational FinancialReportingStandards(“IFRS”)asadoptedbytheEuropeanUnion,giveatrueandfairviewoftheassets,liabilities,ﬁnancialpositionandresultsoftheCompanyanditssubsidiariesincludedinthe consolidationtakenasawhole;and-thattheManagementReportasat31December2022providesafairviewofthedevelopmentandperformanceofthebusinessandtheposition oftheCompanyandits subsidiariesincludedintheconsolidationtakenasawhole,togetherwithadescription oftheprincipalrisksanduncertaintiestheyface.ApprovedbytheBoard of DirectorsandsignedonitsbehalfbyMr.DavidGreenbaum.Luxembourg,on31March2023Mr.DavidGreenbaumManagingDirector ORCO PROPERTY GROUP 2017 CONDENSED CPI FIM SA CONSOLIDATED FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022 AND FOR THE YEAR THEN ENDED CPI FIM SA 2022 CONSOLIDATED FINANCIAL STATEMENTS | 2 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME The accompanying notes form an integral part of these consolidated financial statements. Year-ended Note 31 December 2022 31 December 2021 Gross rental income 5.1 34,685 34,880 Service charges and other income 5.2 11,150 32,499 Cost of service and other charges 5.2 ( 10,449 ) ( 9,719 ) Property operating expenses 5.3 ( 3,485 ) ( 4,048 ) Net service and rental income 31,901 53,612 Hotel revenue 597 246 Hotel operating expenses ( 480 ) ( 248 ) Net hotel income 117 ( 2 ) Total revenues 46,432 67,625 Total direct business operating expenses ( 14,414 ) ( 14,015 ) Net business income 32,018 53,610 Net valuation gain 5.4 62,674 263,702 Net gain on the disposal of investment property and subsidiaries 5.5 7,839 3,746 Net gain on the disposal of other investments 5.6 - 6,175 Amortization, depreciation and impairments 5.7 ( 2,726 ) 3,455 Administrative expenses 5.8 ( 6,679 ) ( 14,022 ) Other operating income 513 704 Other operating expenses ( 554 ) ( 827 ) Operating result 93,085 316,543 Interest income 5.10 215 ,972 211,507 Interest expense 5.10 ( 125,827 ) ( 161,231 ) Other net financial result 5.9 35,826 56,554 Net finance income 125,971 106,830 Share of profit of equity-accounted investees (net of tax) 6. 3 1,481 1,146 Profit before income tax 220,537 424,519 Income tax expense 5.11 ( 39,892 ) ( 57,676 ) Net profit from continuing operations 180,645 366,843 Items that may or are reclassified subsequently to profit or loss Translation difference 14,888 30,983 Items that will not be reclassified subsequently to profit or loss Fair value changes of financial assets 8,665 13,349 Revaluation of property, plant and equipment ( 1,609 ) 1,609 Income tax on other comprehensive income items 386 ( 386 ) Other comprehensive income for the period, net of tax 22,330 45,555 Total comprehensive income for the year 202,975 412,398 Profit attributable to: Owners of the Company 147,240 294,053 Non-controlling interests 33,405 72,790 Profit for the year 180,645 366,843 Total comprehensive income attributable to: Owners of the Company 169,570 339,608 Non-controlling interests 33,405 72,790 Total comprehensive income for the year 202,975 412,398 Earnings per share Basic earnings in EUR per share 6.10 0.11 0.22 Diluted earnings in EUR per share 6.10 0.11 0.22 CPI FIM SA 2022 CONSOLIDATED FINANCIAL STATEMENTS | 3 CONSOLIDATED STATEMENT OF FINANCIAL POSITION The accompanying notes form an integral part of these consolidated financial statements. Note 31 December 2022 31 December 2021 Non -current assets Intangible assets 842 610 Investment property 6.1 1,640,110 1,514,430 Property, plant and equipment 6.2 2,752 22,193 Equity accounted investees 6.3 9,724 8,190 Other investments 6.4 61,655 52,990 Loans provided 6.5 4,568,394 4,948,061 Other receivables 76 74 Deferred tax asset 5.11 120,370 133,921 6,403,923 6,680,469 Current assets Inventories 402 355 Income tax receivables 522 116 Derivative instruments 13,730 2,078 Trade receivables 6.6 6,074 6,929 Loans provided 6.5 144,579 186,859 Cash and cash equivalents 6.7 104,082 210,076 Other receivables 6.8 188,058 236,795 Other non-financial assets 6,254 5,379 Assets held for sale 6.9 - 54,586 463,701 703,173 Total assets 6,867,624 7,383,642 Equity Equity attributable to owners of the Company 6.10 1,408,219 1,238,649 Share capital 13,145 13,145 Share premium 784,670 784,670 Other reserves 140,574 118,244 Retained earnings 469,830 322,590 Non-controlling interests 6.10 310,726 277,321 1,718,945 1,515,970 Non-current liabilities Financial debts 6.11 4,653,862 5,400,425 Deferred tax liability 5.11 149,139 130,866 Other financial liabilities 6.12 5,383 4,793 4,808,384 5,536,084 Current liabilities Financial debts 6.11 24 6,013 261,324 Trade payables 6.13 12,623 8,953 Income tax liabilities 10,063 687 Other financial liabilities 6.14 70,307 59,534 Other non-financial liabilities 6.15 1,289 1,090 340,295 331,588 Total equity and liabilities 6,867,624 7,383,642 CPI FIM SA 2022 CONSOLIDATED FINANCIAL STATEMENTS | 4 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY The accompanying notes form an integral part of these consolidated financial statements. Note Share capital Share premium Translation reserve Other reserves Retained earnings Equity attributable to owners of the Company Non-controlling interests Total equity As at 1 January 2022 6.10 13,145 784,670 16,996 101,248 322,590 1,238,649 277,321 1,515,970 Profit for the year - - - - 147,240 147,240 33,405 180,645 Total comprehensive income - - 14,888 7,442 - 22,330 - 22,330 Total comprehensive income for the period - - 14,888 7,442 147,240 169,570 33,405 202,975 Balance as at 31 December 2022 13,145 784,670 31,884 108,690 469,830 1,408,219 310,726 1,718,945 Note Share capital Share premium Translation reserve Other reserves Retained earnings Equity attributable to owners of the Company Non-controlling interests Total equity As at 1 January 2021 6.10 13,145 784,670 ( 13,987 ) 86,676 28,537 899,041 204,531 1,103,572 Profit for the year - - - - 294,053 294,053 72,790 366,843 Other comprehensive income - - 30,983 14,572 - 45,555 - 45,555 Total comprehensive income for the period - - 30,983 14,572 294,053 339,608 72,790 412,398 Balance as at 31 December 2021 13,145 784,670 16,996 101,248 322,590 1,238,649 277,321 1,515,970 CPI FIM SA 2022 CONSOLIDATED FINANCIAL STATEMENTS | 5 CONSOLIDATED STATEMENT OF CASH FLOWS The accompanying notes form an integral part of these consolidated financial statements. Year-ended Note 31 December 2022 31 December 2021 Profit before income tax 220,537 424,519 Adjusted by: Net valuation gain 5.4, 6.1 ( 62,674 ) ( 263,702 ) Net gain on the disposal of investment property 5.5 ( 7,613 ) ( 2,783 ) Depreciation and amortisation 5.7 245 624 Impairment/ (reversal of impairment) 5.7 2,481 ( 4,079 ) Gain on the disposal of subsidiaries and investees 5.5, 5.6 ( 226 ) ( 7,138 ) Net interest income ( 90,145 ) ( 50,276 ) Other net finance (income)/costs 534 1,390 Share of profit of equity accounted investees 6.3 ( 1,481 ) ( 1,146 ) Unrealized exchange rate differences and other non-cash transactions ( 35,548 ) ( 53,054 ) Profit before changes in working capital and provisions 26,110 44,355 Increase in inventories ( 47 ) ( 55 ) Decrease/(increase) in trade and other receivables 48,718 ( 51,071 ) Increase/(decrease) in trade and other payables 24,609 ( 15,986 ) Changes in provisions - 29 Income tax paid ( 1,242 ) ( 858 ) Net cash from operating activities 98,148 ( 23,586 ) Acquisition of subsidiaries, net of cash acquired 3.2 - ( 2,995 ) Acquisition of joint-ventures, net of cash acquired ( 55 ) - Purchase and expenditures on property, plant and equipment and intangible assets ( 2,246 ) ( 1,585 ) Purchase and expenditures on investment property 6.1 ( 34,796 ) ( 17,197 ) Acquisition of property, plant and equipment 6.2 - ( 18,717 ) Proceeds from sale of investment property 5.5 66,050 44,455 Proceeds from disposals of subsidiaries, net of cash disposed 5.5 2,245 17,238 Proceeds from disposals of other investment, net of cash disposed 5.6 - 155,418 Loans provided 6.5 ( 1,413,850 ) ( 993,526 ) Loans repaid 6.5 205,192 454,815 Interest received 240,659 102,208 Net cash used in investing activities ( 936,801 ) ( 259,886 ) Drawdowns of loans and borrowings 6.11 1,013,055 553,743 Repayments of loans and borrowings 6.11 ( 112,917 ) ( 203,932 ) Interest paid 6.11 ( 167,479 ) ( 105,453 ) Net cash from financing activities 732,659 244,358 Net decrease in cash ( 105,994 ) ( 39,114 ) Cash and cash equivalents at the beginning of the year 6.7 210,076 249,190 Cash and cash equivalents at the end of the year 104,082 210,076 CPI FIM SA 2022 CONSOLIDATED FINANCIAL STATEMENTS | 6 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 1 General information CPI FIM SA , société anonyme (the “Company”) and its subsidiaries (together the “Group” or “CPI FIM”), is an owner of income-generating real estate primarily in Poland and in the Czech Republic as well as of land bank and development projects intended for future rent . The Company is a subsidiary of CPI Property Group (also “CPI PG” and together with its subsidiaries as the “CPI PG Group”), which holds 97.31% of the Company shares. The Company is also involved in providing of loans and management services to other entities within the CPI PG Group. The Company is a joint stock company incorporated for an unlimited term and registered in Luxembourg . The address of its registered office is 40, rue de la Vallée, L-2661 Luxembourg, Grand Duchy of Luxembourg . The trade registry number of the Company is B 44 996. The Company´s shares registered under ISIN code LU0122624777 are listed on the regulated markets of the Luxembourg Stock Exchange and the Warsaw Stock Exchange. Description of the ownership structure As at 31 December 2022, CPI PG directly owns 97.31% of the Company shares. CPI PG is a Luxembourg joint stock company ( société anonyme), whose shares registered under ISIN code LU0251710041 are listed on the regulated market of the Frankfurt Stock Exchange in the General Standard segment. As at 31 December 2022, Radovan Vítek, the ultimate beneficial owner of the Group, indirectly owns 86.69% of CPI PG outstanding shares (89.35% voting rights). For the list of shareholders as at 31 December 2022 refer to note 6.10. Board of Directors As at 31 December 2022, the Board of Directors consists of the following directors: Mr. David Greenbaum Mr. Edward Hughes Mrs. Anita Dubost Mr. Scot Wardlaw CPI FIM SA 2022 CONSOLIDATED FINANCIAL STATEMENTS | 7 2Basis of preparation and significant accounting policies 2.1 Basis of preparation of consolidated financial statements (a) Basis of preparation The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union. All the figures are presented in thousands of Euros, except if explicitly indicated otherwise. The consolidated financial statements have been prepared on a going concern basis . The consolidated financial statements were authorized for issue by the Board of Directors on 31 March 2023. (b) New and amended standards and interpretations For the preparation of these consolidated financial statements, several amendments and interpretations apply for the first time in 2022, but do not have an impact on the consolidated financial statements of the Group. The Group has not early adopted any standards, interpretations or amendments that have been issued but are not yet effective. Onerous Contracts – Costs of Fulfilling a Contract – Amendments to IAS 37 An onerous contract is a contract under which the unavoidable of meeting the obligations under the contract costs (i.e., the costs that the Group cannot avoid because it has the contract) exceed the economic benefits expected to be received under it. The amendments specify that when assessing whether a contract is onerous or loss-making, an entity needs to include costs that relate directly to a contract to provide goods or services including both incremental costs (e.g., the costs of direct labour and materials) and an allocation of costs directly related to contract activities (e.g., depreciation of equipment used to fulfil the contract and costs of contract management and supervision). General and administrative costs do not relate directly to a contract and are excluded unless they are explicitly chargeable to the counterparty under the contract. Reference to the Conceptual Framework – Amendments to IFRS 3 The amendments replace a reference to a previous version of the IASB’s Conceptual Framework with a reference to the current version issued in March 2018 without significantly changing its requirements. The amendments add an exception to the recognition principle of IFRS 3 Business Combinations to avoid the issue of potential ‘day 2’ gains or losses arising for liabilities and contingent liabilities that would be within the scope of IAS 37 Provisions, Contingent Liabilities and Contingent Assets or IFRIC 21 Levies, if incurred separately. The exception requires entities to apply the criteria in IAS 37 or IFRIC 21, respectively, instead of the Conceptual Framework, to determine whether a present obligation exists at the acquisition date. The amendments also add a new paragraph to IFRS 3 to clarify that contingent assets do not qualify for recognition at the acquisition date. In accordance with the transitional provisions, the Group applies the amendments prospectively, i.e., to business combinations occurring after the beginning of the annual reporting period in which it first applies the amendments (the date of initial application). These amendments had no impact on the consolidated financial statements of the Group as there were no contingent assets, liabilities or contingent liabilities within the scope of these amendments that arose during the period. Property, Plant and Equipment: Proceeds before Intended Use – Amendments to IAS 16 Leases The amendment prohibits entities from deducting from the cost of an item of property, plant and equipment, any proceeds of the sale of items produced while bringing that asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Instead, an entity recognises the proceeds from selling such items, and the costs of producing those items, in profit or loss. In accordance with the transitional provisions, the Group applies the amendments retrospectively only to items of PP&E made available for use on or after the beginning of the earliest period presented when the entity first applies the amendment (the date of initial application). These amendments had no impact on the consolidated financial statements of the Group as there were no sales of such items produced by property, plant and equipment made available for use on or after the beginning of the earliest period presented. Amendments to standards issued and not yet effective : Amendments to IAS 1 : Classification of Liabilities and Current or Non-current, Definition of Accounting Estimates, Disclosure of Accounting Policies, Deferred Tax related to Assets and Liabilities arising from a Single Transaction. These standards are not expected to have an impact on the Group. (c) Basis of measurement The consolidated financial statements have been prepared on a historical cost basis except for the following material items in the consolidated statement of financial position, which are measured as indicated below at each reporting date: • Inventories at lower of cost or net realisable value; • Investment property is measured at fair value; • Derivative instruments are measured at fair value; • Non-derivative financial instruments at fair value through profit or loss are measured at fair value; (d) Functional and presentation currency These consolidated financial statements are presented in Euro (EUR), which is the Company’s functional currency. All financial information presented in EUR has been rounded to the nearest thousand, except when otherwise indicated. The functional currencies of other entities within the Group are listed in note 2.2(b). (e) Use of estimates and judgements CPI FIM SA 2022 CONSOLIDATED FINANCIAL STATEMENTS | 8 The preparation of the consolidated financial statements in conformity with IFRS as adopted by the European Union requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. The estimates and assumptions are based on historical experience, internal calculations and various other factors that the management believes to be reasonable under the circumstances. The actual result might differ from the estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected. Information about critical judgements in applying accounting policies that have the most significant effect on the amounts recognised in the financial statements is included in the following notes: - Note 2.2(c) – Classification of investment property - Note 2.2(l) – Service charges: Gross versus net revenue recognition. Information about assumptions and estimation uncertainties that have a significant risk of a material adjustment within the next financial year are included in the following notes: - Note 2.2(i) - Impairment test; - Note 2.3 – Determination of fair value; - Note 5.11 – Income tax expenses; - Note 7 – Financial risk management. 2.2 Significant accounting policies Except for the changes described above in note 2.1(b). New standards, the accounting policies used in preparing the consolidated financial statements are set out below. These accounting policies have been consistently applied in all material respects to all periods presented. (a) Basis of consolidation (i) Business combinations The Group uses the direct method of consolidation, under which the financial statements are translated directly into the presentation currency of the Group, EUR. Subsidiaries are fully consolidated from the date of the acquisition, being the date on which the Group obtains control, and continue to be consolidated until the date when such control ceases. All intra-group balances, transactions, unrealised gains and losses resulting from intra-group transactions and dividends are eliminated in full on consolidation. Goodwill is initially measured at cost, being the excess of the aggregate of the consideration transferred and the amount recognised for non-controlling interests, and any previous interest held, over the net identifiable assets acquired and liabilities assumed. When the excess is negative, a bargain purchase gain is recognised immediately in profit or loss. The consideration transferred does not include amounts related to the settlement of pre-existing relationships. Such amounts generally are recognised in profit or loss. Transaction costs, other than those associated with the issue of debt or equity securities, that the Group incurs in connection with a business combination are expensed as incurred. Any contingent consideration payable is measured at fair value at the acquisition date. If the contingent consideration is classified as equity, then it is not re-measured and settlement is accounted for within the equity. Otherwise, subsequent changes in the fair value of the contingent consideration are recognised in profit or loss. The interest of non-controlling shareholders at the date of the business combination is generally recorded at the non-controlling interest’s proportionate share of the acquiree’s identifiable net assets, which are generally at fair value, unless Group management has any other indicators about the non-controlling interest fair value. Changes in the Group’s interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions. (ii) Business combinations involving entities under common control Business combinations arising from transfers of interests in entities that are under the control of the shareholder that controls the Group are not in scope of IFRS 3. The assets and liabilities acquired are recognised at the carrying amounts recognised previously in the financial statements of the acquire or at deemed costs if the local standards are different from IFRS adopted by EU. Components of equity of the acquired entities are added to the corresponding equity components of the Group and any gain or loss arising is recognised in equity. (iii) Loss of control On the loss of control, the Group derecognises the assets and liabilities of the subsidiary, any non-controlling interests and the other components of equity related to the subsidiary. Any surplus or deficit arising on the loss of control is recognised in profit or loss. If the Group retains any interest in the previous subsidiary, then such interest is measured at fair value at the date that control is lost. Subsequently it is accounted for as equity accounted investee or as a debt investment at fair value through OCI depending on the level of influence retained. (iv) Equity accounted investees Associates are those entities in which the Group has significant influence, but not control or joint control, over the financial and operating policies. Significant influence is presumed to exist when the Group holds between 20 and 50 percent of the voting power of another entity. CPI FIM SA 2022 CONSOLIDATED FINANCIAL STATEMENTS | 9 Interests in associates and joint ventures are accounted for using the equity method (equity accounted investees) and are recognised initially at cost. The cost of the investment includes transaction costs. The consolidated financial statements include the Group’s share of the profit or loss and other comprehensive income of equity accounted investees, after adjustments to align the accounting policies with those of the Group, from the date that significant influence is obtained until the date that significant influence ceases. When the Group’s share of losses exceeds its interest in an equity accounted investee, the carrying amount of the investment, including any long-term interests that form part thereof, is reduced to zero, and the recognition of further losses is discontinued except to the extent that the Group has an obligation or has made payments on behalf of the investee. Unrealised gains arising from transactions with equity accounted investees are eliminated against the investment to the extent of the Group’s interest in the investee. Unrealised losses are eliminated in the same way as unrealised gains, but only to the extent that there is no evidence of impairment. (v) Property asset acquisition Transaction that does not represent a business combination, because the acquired entity does not constitute a business in accordance with the IFRS 3, are accounted for as an asset acquisition. (b) Foreign currency (i) Functional currencies Functional currencies of the companies in the Group are the currencies of the primary economic environment in which the entities operate, and the majority of its transactions are carried out in this currency. The Group’s consolidated financial statements are presented in EUR. The table below presents functional currencies of all Group’s subsidiaries having non EUR functional currency. Each Group’s subsidiary determines its own functional currency, and items included in the financial statements of each entity are measured using that functional currency. For the purposes of inclusion in the consolidated financial statements, the statement of financial position of entities with non-EUR functional currencies are translated to EUR at the exchange rates prevailing at the balance sheet date and the income statements are translated at the average exchange rate for each month of the relevant year. The resulting net translation difference is recorded in OCI. When a foreign operation is disposed of, the cumulative amount in the translation reserve related to that foreign operation is reclassified to profit or loss as a part of gain or loss on the disposal. Group’s entities in different countries that have non-EUR functional currency: Country Functional currency Czech Republic CZK Poland PLN (ii) Foreign currency transactions Transactions in foreign currencies are translated to the respective functional currencies of the Group’s entities at exchange rates valid at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are retranslated to the functional currency at the exchange rate at that date. The foreign currency gain or loss on monetary items is the difference between amortised cost in the functional currency at the beginning of the period, adjusted for effective interest and payments during the period, and the amortised cost in foreign currency translated at the exchange rate at the end of the period. Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated to the functional currency at the exchange rate at the date that the fair value was determined. Non-monetary items in a foreign currency that are measured based on historical cost are translated using the exchange rate at the date of the transaction. Foreign currency differences arising on retranslation are recognised in profit or loss, except for the differences arising on the retranslation of qualifying cash flow hedges to the extent the hedge is effective, which are recognised in OCI. The Group translates the foreign currency operations and transactions using the foreign exchange rates declared by relevant central banks. (c) Investment property and investment property under development Investment property is property held either to earn rental income or for capital appreciation or for both. Investment property is measured at cost on initial recognition and subsequently at fair value with any change therein recognised in profit or loss. Cost of investment property includes expenditure that is directly attributable to the acquisition of the investment property. The cost of self-constructed investment property includes the cost of material and direct labour, any other costs directly attributable to bringing the investment property to a working condition for their intended use and capitalised borrowing costs. External independent valuation companies, having appropriate recognised professional qualifications and recent experience in the location and category of property being valued, valued the portfolio of investment property at the year end of 2022 and 2021 respectively. Any gain or loss on disposal of an investment property (calculated as the difference between the net proceeds from disposal and the carrying amount of the item) is recognised in profit or loss. Property that is being constructed or developed for future use is measured at fair value until construction or development is completed. Any gain or loss arising on the measurement is recognised in profit or loss. The Group capitalises external borrowing costs on qualifying investment properties under development. CPI FIM SA 2022 CONSOLIDATED FINANCIAL STATEMENTS | 10 (d) Leased assets Leases in terms of which the Group assumes substantially all the risks and rewards of ownership are classified as finance leases. On initial recognition, the leased asset is measured at an amount equal to the lower of its fair value and the present value of the minimum lease payments. Subsequent to initial recognition, the asset is accounted for in accordance with the accounting policy applicable to that asset. Lease payments are accounted for as described in accounting policy 2.2 (m). The Group recognises right-of-use assets at the commencement date of the lease. Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Unless the Group is reasonably certain to obtain ownership of the leased asset at the end of the lease term, the recognised right-of-use assets are depreciated on a straight-line basis over the shorter of its estimated useful life and the lease term. Right-of-use assets are subject to impairment. Short-term leases and leases of low-value assets: The Group applies the short-term lease recognition exemption to its short-term leases. Short term leases have a lease term of 12 months or less from the commencement date and do not contain a purchase option. It also applies the lease of low-value assets recognition exemption to leases of office equipment that are considered of low value. Lease payments on short-term leases and leases of low-value assets are recognised as expense on a straight-line basis over the lease term. The Group determines the lease term as the non-cancellable term of the lease, together with any periods covered by an option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate the lease, if it is reasonably certain not to be exercised. (e) Property, plant and equipment (i) Recognition and measurement Items of property, plant and equipment are measured at cost less accumulated depreciation (see below) and impairment losses (see accounting policy 2.2 (i). Other items of property, plant and equipment are measured at the lower of cost less accumulated depreciation and impairment losses. Cost includes expenditure that is directly attributable to the acquisition of the asset. The cost of self-constructed assets includes the cost of materials, direct labour and any other costs directly attributable to bringing the assets to a working condition for their intended use, capitalised borrowing costs and an appropriate proportion of production overheads. Where components of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment. Any gain or loss on disposal of an item of property, plant and equipment (calculated as the difference between the net proceeds from disposal and the carrying amount of the item) is recognised in profit or loss. (ii) Reclassification to investment property When the use of a property changes from owner-occupied to investment property, the property is reclassified to investment property and remeasured to fair value. Any gain arising on remeasurement is recognised in profit or loss to the extent that it reverses the previous impairment loss on the specific property, with any remaining gain recognised in OCI and presented in the revaluation reserve in equity. Any loss is recognised immediately in profit or loss. (iii) Subsequent costs Subsequent expenditure is capitalised only when it is probable that the future economic benefits associated with the expenditure will flow to the Group. Ongoing repairs and maintenance is expensed as incurred. (iv) Depreciation Items of property, plant and equipment are depreciated on a straight-line basis in profit or loss over the estimated useful lives of each component. Leased assets are depreciated over the shorter of the lease term and their useful lives unless it is reasonably certain that the Group will obtain ownership by the end of the lease term. Land is not depreciated. Items of property, plant and equipment are depreciated from the date that they are ready for use. The estimated useful lives for the current and comparative period are as follows: Assets 2022 2021 Property 50 - 80 years 50 - 80 years Equipment 5 - 10 years 5 - 10 years Fittings 3 - 20 years 3 - 20 years Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate. (f) Intangible assets (i) Other intangible assets CPI FIM SA 2022 CONSOLIDATED FINANCIAL STATEMENTS | 11 Other intangible assets that are acquired by the Group and have finite useful lives, are measured at cost less accumulated amortization (see (iii) below) and accumulated impairment losses (see accounting policy 2.2 (i)). (ii) Subsequent expenditure Subsequent expenditure on intangible assets is capitalised only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure is recognised in profit or loss as incurred. (iii) Amortization Except for goodwill and intangible assets with indefinite useful life, intangible assets are amortised on a straight-line basis in profit or loss over their estimated useful lives, from the date that they are available for use. Amortization methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate. (g) Inventories Inventories represent trading property and are measured at the lower of cost and net realisable value. Cost includes expenditure that is directly attributable to the acquisition of the trading property. The cost of self-constructed trading property includes the cost of material and direct labour, any other costs directly attributable to bringing the trading property to a condition for their intended use and capitalised borrowing costs. Deemed costs of trading property reclassified from existing investment property is the fair value of such property. Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and selling expenses. (h) Financial instruments Initial recognition and measurement Financial assets are classified, at initial recognition: as subsequently measured at amortised cost, fair value through other comprehensive income (OCI), and fair value through profit or loss. The Group measures financial assets at amortised cost if both of the following conditions are met: - The financial asset is held within a business model with the objective to hold financial assets in order to collect contractual cash flows; and - The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. A debt investment is classified and measured at fair value through OCI if it meets both of the following conditions: - The financial asset is held within a business model with the objective of both holding to collect contractual cash flows and selling; and - The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. All financial assets not classified as measured at amortised cost or fair value through OCI as described above are measured at fair value through profit or loss. On initial recognition, the Group may irrevocably designate a financial asset, that otherwise meets the requirements to be classified and measured at amortised cost or at fair value through OCI, to be classified and measured at fair value through profit or loss if it eliminates or reduces an accounting mismatch that would otherwise arise. Subsequent measurement For purposes of subsequent measurement, financial assets are classified in four categories: - Financial assets at amortised cost (debt instruments) This category is the most relevant to the Group. The Group’s financial assets at amortised cost include trade receivables, and loans provided. Financial assets at amortised cost are subsequently measured using the effective interest (EIR) method and are subject to impairment. Gains and losses are recognised in profit or loss when the asset is derecognised, modified or impaired. - Financial assets at fair value through OCI (debt instruments) For debt instruments at fair value through OCI, interest income, foreign exchange revaluation and impairment losses or reversals are recognised in the statement of profit or loss and computed in the same manner as for financial assets measured at amortised cost. The remaining fair value changes are recognised in OCI. Upon derecognition, the cumulative fair value change recognised in OCI is recycled to profit or loss. - Financial assets designated at fair value through OCI (equity instruments) Gains and losses on these financial assets are never recycled to profit or loss. Dividends are recognised as other income in the statement of profit or loss when the right of payment has been established, except when the Group benefits from such proceeds as a recovery of part of the cost of the financial asset, in which case, such gains are recorded in OCI. Equity instruments designated at fair value through OCI are not subject to impairment assessment. The Group elected to classify irrevocably its non-listed equity investments under this category. CPI FIM SA 2022 CONSOLIDATED FINANCIAL STATEMENTS | 12 Investment in an equity instrument that does not have a quoted market price in an active market and for which other methods of reasonably estimating fair value are inappropriate are carried at cost. - Financial assets at fair value through profit or loss Financial assets are classified as held for trading if they are acquired for the purpose of selling or repurchasing in the near term. Derivatives, including separated embedded derivatives, are also classified as held for trading unless they are designated as effective hedging instruments. Financial assets with cash flows that are not solely payments of principal and interest are classified and measured at fair value through profit or loss, irrespective of the business model. Financial assets at fair value through profit or loss are carried in the statement of financial position at fair value with net changes in fair value recognised in the statement of profit or loss. Derecognition A financial asset is primarily derecognised when the rights to receive cash flows from the asset have expired. A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit or loss. (i) Non-derivative financial assets The Group initially recognises loans and receivables on the date that they are originated. All other financial assets are recognised initially on the trade date, which is the date that the Group becomes a party to the contractual provisions of the instrument. The Group derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred. Any interest in such transferred financial assets that is created or retained by the Group is recognised as a separate asset or liability. Financial assets and liabilities are offset, and the net amount presented in the consolidated statement of financial position when, and only when, the Group has a legal right to offset the amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously. Loans provided Loans are financial assets with fixed or determinable payments that are not quoted in an active market. Such assets are recognised initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, provided loans are measured at amortised cost using the effective interest method, less any impairment losses (see accounting policy 2.2(i)). Finance charges, including premiums receivable on settlement or redemption and direct issue costs, are recognised in profit or loss on an accrual basis using the effective interest method and are added to the carrying amount of the instrument to the extent that they are not settled in the period in which they arise. The Group classifies any part of long-term loans, that is due within one year from the reporting date, as current. Trade and other receivables Trade and other receivables are financial assets with fixed or determinable payments that are not quoted in an active market. Such assets are recognised initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, receivables are measured at amortised cost using the effective interest method, less any impairment losses (see accounting policy 2.2(i)). Cash and cash equivalents Cash and cash equivalents comprise cash balances and call deposits with maturities of three months or less from the acquisition date that are subject to an insignificant risk of changes in their fair value and are used by the Group in the management of its short-term cash commitments. Bank accounts and call deposits that are repayable on demand and form an integral part of the Group’s cash management are included as a component of cash and cash equivalents for the purpose of the cash-flow statement. The Company treats cash deposited as a security in accordance with bank loan covenants as cash and cash equivalents for cash flow purposes. The cash flow statement of the Group is prepared based on the indirect method from the consolidated statement of financial position and consolidated statement of profit and loss. In 2020, the Company agreed a cash-pool contracts with related subsidiaries of CPI PG Group. The Company clasifies the provided and received cash pool balances including interests as other current receivables and other financial current liabilities, respectively. (ii) Non-derivative financial liabilities Non-derivative financial liabilities comprise loans and borrowings, bonds issued, bank overdrafts, and trade and other payables. The Group initially recognises debt securities issued and subordinated liabilities on the date that they are originated. All other financial liabilities (including financial liabilities designated as at fair value through profit or loss) are recognised initially on the trade date, which is the date that the Group becomes a party to the contractual provisions of the instrument. The Group derecognises a financial liability when its contractual obligations are discharged, cancelled or expire. CPI FIM SA 2022 CONSOLIDATED FINANCIAL STATEMENTS | 13 The Group classifies non-derivative financial liabilities as the other financial liabilities category. Such financial liabilities are recognised initially at fair value less any directly attributable transaction costs. Subsequent to initial recognition, these financial liabilities are measured at amortised cost using the effective interest method. The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the contractual cash flows of the financial liability. Financial debts and bonds are recognised initially at fair value less any directly attributable transaction costs. Subsequent to initial recognition, financial debts and bonds are measured at amortised cost using the effective interest method. Finance charges, including premiums payable on settlement or redemption and direct issue costs, are recognised in profit or loss on an accrual basis using the effective interest method and are added to the carrying amount of the instrument to the extent that they are not settled in the period in which it arises. The Group classifies any part of long-term loans or bonds, that is due within one year from the date of the consolidated statement of financial position, as current liabilities. Bond transaction costs Bonds payable are initially recognized at the amount of the proceeds from issued bonds less any attributable transaction costs. Bond transaction costs include fees and commissions paid to agents, advisers, brokers and dealers, levies by regulatory agencies and securities exchanges. Lease liabilities At the commencement date of the lease, the Group recognises lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Group and payments of penalties for terminating a lease, if the lease term reflects the Group exercising the option to terminate. In calculating the present value of lease payments, the Group uses the incremental borrowing rate at the lease commencement date if the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the in-substance fixed lease payments or a change in the assessment to purchase the underlying asset. (iii) Share capital Ordinary shares Incremental costs directly attributable to the issue of new shares and shares options, other than upon a business combination, are recognised as a deduction from equity, net of any tax effects. (i) Impairment (i) Impairment of non-derivative financial assets The Group recognises an allowance for expected credit losses (ECLs) for all debt instruments not held at fair value through profit or loss. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the discounted cash flows that the Group expects to receive, discounted at an approximation of the original effective interest rate. ECLs are recognised in two stages. For credit exposures for which there has not been a significant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has been a significant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL). For trade receivables, the Group applies a simplified approach in calculating ECLs. Therefore, the Group does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date. The Group has established a provision matrix that is based on its historical credit loss experience. The Group considers a non-derivative financial asset in default when contractual payments are 90 days past due. However, in certain cases, the Group may also consider a financial asset to be in default when internal or external information indicates that the Group is unlikely to receive the outstanding amounts in full. A non-derivative financial asset is written off when there is no reasonable expectation of recovering the contractual cash flows. Determination of ECLs for loans provided to related parties is based on Group’s risk assessment and estimated rating of the borrower. (ii) Impairment of non-financial assets The carrying amounts of the Group’s non-financial assets, other than investment property (see accounting policy 2.2(c)), property plant and equipment (only partially, see accounting policy 2.2(e)), inventories (see accounting policy 2.2(g)), and deferred tax assets (see accounting policy 2.2(p)), are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. An asset’s recoverable amount is the higher of an asset’s or CGU’s fair value less costs of disposal and its value in use. For the purpose of impairment testing, assets are grouped together into cash generating units (CGU’s) - the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or CGUs. When CPI FIM SA 2022 CONSOLIDATED FINANCIAL STATEMENTS | 14 the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. The Group bases its impairment calculation on detailed budgets and forecast calculations, which are prepared separately for each of the Group’s CGUs to which the individual assets are allocated. Impairment losses are recognised in profit or loss. Impairment losses recognised in respect of CGUs are allocated first to reduce the carrying amount of any goodwill allocated to CGU (group of CGUs), and then to reduce the carrying amounts of the other assets in the CGU (group of CGUs) on a pro-rata basis. (j) Provisions Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. If the effect is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability. The unwinding of the discount is recognised as finance cost. (k) Assets held for sale and disposal groups Non-current assets held for sale and disposal groups comprising assets and liabilities, are classified as held-for-sale when it is highly probable that they will be recovered primarily through sale rather than through continuing use. The following criteria must be met for an asset or disposal group to be classified as held for sale: the Group is committed to selling the asset or disposal group, the asset is available for immediate sale, an active plan of sale has commenced, the sale is expected to be completed within 12 months and the asset is being actively marketed for sale at a sales price reasonable in relation to its fair value. Such assets, or disposal groups, are measured at the lower of carrying amount and fair value less costs to sell. (l) Revenue (i) Rental revenue Rental income arising from operating leases on investment property is accounted for on a straight-line basis over the lease terms. Initial direct costs incurred in negotiating and arranging an operating lease are recognised as an expense over the lease term on the same basis as the lease income. Tenant lease incentives are recognised as a reduction of rental revenue on a straight-line basis over the term of the lease. The term of the lease is the non-cancellable period of the lease. Any further term for which the tenant has the option to continue the lease is not considered by the Group. (ii) Services rendered Revenue from services rendered is recognised in profit or loss in proportion to the stage of completion of the transaction at the reporting date. The stage of completion is assessed by reference to surveys of work performed. (iii) Service charges and other income Income arising from expenses recharged to tenants is recognized in the period in which the compensation becomes receivable. Service and management charges and other such receipts are included in net rental income gross of the related costs. T he Group determined that it does control the services before they are transferred to tenants and therefore that the Group acts rather as a principal in these arrangements. (iv) Sale of investment property and trading property, investment in subsidiaries and equity-accounted investees Revenue from the sale of investment and trading property, investments in subsidiaries and equity-accounted investees is recognised in profit or loss by the Group at point of time when the control over the property is transferred to a customer, usually on the date on which the application is submitted to the Land Registry for transfer of legal ownership title. The property must be completed, and the apartments are ready for sale, including the necessary regulatory permissions. The timing of the transfer of risks and rewards varies depending on the individual terms of the sale arrangement. (m) Expenses Operating expenses are expensed as incurred. Expenditures that relate to multiple accounting periods are deferred and recognised over those accounting periods irrespective of the timing of the consideration given or liability incurred. (n) Interest income, interest expense and other net financial result Interest income comprises interest income on funds invested, such as bank interest, interest on provided loans, interest on bonds purchased and interest on non-current receivables. Interest expense comprises interest expense on loans and borrowings, on leases, on bonds issued and interest charges related to leases. Interest income and expense is recognised as it accrues in profit or loss, using the effective interest method. CPI FIM SA 2022 CONSOLIDATED FINANCIAL STATEMENTS | 15 Other net financial result comprises dividend income, gains on disposal of debt investments at fair value through OCI, gains on derivative instruments that are recognised in profit or loss and reclassifications of amounts (losses) previously recognised in OCI, bank charges, losses on disposal of debt investments at fair value through OCI, losses on derivative instruments that are recognised in profit or loss and reclassifications of amounts (gains) previously recognised in OCI and foreign currency gains and losses that are reported on a net basis as either finance income or finance costs depending on whether foreign currency movements result in a net gain or net loss position. Borrowing costs that are not directly attributable to the acquisition or construction of a qualifying asset are recognised in profit or loss using the effective interest method. Dividend income is recognised in profit or loss on the date that the Group’s right to receive payment is established. (o) Current income tax Current income tax assets and liabilities recognised are the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted at the reporting date in the country where the Group operates and generates taxable income. The estimated current income tax expense is calculated using the accounting profit for the period and an estimate of non-deductible expenses of each entity of the Group and the corresponding income tax rate applicable to the given country and accounting period. Current and deferred income tax is recognised in profit or loss except to the extent that it relates to a business combination, or items recognised directly in equity or in OCI. (p) Deferred tax Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognised for: - temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss (asset acquisition); - temporary differences related to investments in subsidiaries and jointly controlled entities to the extent that the Group is able to control the timing of the reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future; and - taxable temporary differences arising on the initial recognition of goodwill. Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, using tax rates enacted or substantially enacted at the reporting date. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realised simultaneously. A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the asset can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised. (q) Earnings per share The Group presents basic and diluted earnings per share (EPS) data for its ordinary shares. Basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding during the period. Diluted EPS is determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted average number of ordinary shares outstanding for the effects of all dilutive potential ordinary shares. (r) Entity wide disclosures The Group has applied the criteria of IFRS 8, ‘Operating Segments’ to determine the number and type of operating segments. From second half of 2018, the Group reports as a single operating segment entity. Previously, the Group reported the three operating segments: Income generating rental properties, Land bank and Development. The entity wide disclosures are determined based on the nature of the business and how the business is managed by the Board of Directors, the Group’s chief operating decision maker and reflect the internal reporting structure. Reasons supporting the change of operating segments in 2018 are: - The chief operating decision maker no longer focuses on the differentiation based on the asset types but reviews and manages the business as a whole. - Income generating rental properties, land bank and development, previously reported as individual operating segments, became less significant business considering the Group’s financing function. As required by IFRS 8, the Group provides information on the business activities in which, the Group engages including split of revenue and investment property per asset portfolio. (s) Key management personnel CPI FIM SA 2022 CONSOLIDATED FINANCIAL STATEMENTS | 16 The Group discloses the total remuneration of key management personnel as required by IAS 24 – Related party disclosures. The Group includes within key management personnel all individuals (and their family members, if applicable) who have authority and responsibility for planning, directing and controlling the activities of the Group. Key management personnel include all members of the Management Board and the senior executives of the Group. 2.3 Determination of fair value Investment properties are stated at fair value as at 31 December 2022 and 2021 based on external valuations performed by professionally qualified valuers. The Group’s property portfolio in the Czech Republic is valued by Jones Lang LaSalle, CBRE and RSM, in Poland by Knight Frank. The residential portfolio in France is valued by Savills and two Italian properties are valued by Colliers. One asset in Poland was valued internally. Independent valuations are reviewed by the Group’s management and represent a basis for the management’s estimate of the investment properties’ fair value. Those estimates considered the results of current and prior external valuations, information from comparable selling and purchase transactions, the deferred tax impact and current market conditions. Valuations reflect, where appropriate, the type of tenants in occupation or responsible for meeting the lease commitments and the market’s general perception of their creditworthiness ; the allocation of maintenance and insurance responsibilities between lessor and lessee; and the remaining economic life of the property. The following valuation methods of investment property were used: The real estate market in Central and Eastern Europe is considered small and transactions with real estate portfolios of the size similar to that of the Group’s portfolio are rare. Global volatility of the financial system is reflected also in local residential and commercial real estate markets. Therefore, in arriving at the estimates of market values of investment property as at 31 December 2022 and 31 December 2021, the reliance placed on comparable historical transactions was limited. Due to the need to use the market knowledge and professional judgements of the valuers to a greater extent, there was higher degree of uncertainty than which would exist in a more developed and active market. (i) Office, Industry and Logistics Office, logistics and industry properties have been valued using predominantly income capitalization and discounted cash flow valuation techniques. Income capitalization method is based on the capitalization of the net annual income the property generates or is potentially able to generate. On lease expiry, future income flows have been capitalized into perpetuity at the estimated rental value, taking into account expiry voids and rent free periods. The net income is the total rental income reduced by the costs the landlord cannot cover from the tenants. The capitalisation yield (equivalent yield) is determined by the market transactions achieved at the sale of the property or similar properties in the market between the willing buyer and the willing seller in the arm´s length transaction. A yield reflects the risks inherent in the net cash flows applicable to the net annual rentals to arrive at the property valuation. The sales comparison valuation technique has been used for smaller special retail assets in Czech Republic. (ii) Land and vacant buildings Land and vacant buildings have been valued using the direct comparison method to arrive at the value of the property in its existing state. Comparison was performed with other similarly located and zoned plots of land/buildings that are currently on the market. This valuation method is most useful when several similar properties have recently been sold or are currently for sale in the subject property market. Using this approach a value indication by comparing the subject property to prices of similar properties is produced. The sale prices of the properties that are judged to be most comparable tend to indicate a range in which the value indication for the subject property will fall. The valuer estimated the degree of similarity or difference between the subject property and the comparable sales by considering various elements of comparison. Percentage adjustments were then applied to the sale prices of the comparables because the prices of these properties are known, while the value of the subject property is not. (iii) Investment property under development / developments The valuer used the Residual Value Approach for the valuation of the investment property under development. In order to assess the market value of the sites, the valuer undertook a development appraisal to assess the potential value (Gross Development Value) of the fully completed and leased development as currently proposed, and deducted hard costs, soft costs, financing costs and a developer’s expected required profit (which reflects the required level of return to a developer and the risk of undertaking the project). In assessing the Gross Development Value, the valuator adopted a market approach by estimating the market rental values for the accommodation being developed, and the appropriate capitalisation rate which a potential investor would require, to arrive at the Market Value of the completed and leased building. For sensitivity analysis on changes in assumptions of Investment property valuation refer to note 7.5. CPI FIM SA 2022 CONSOLIDATED FINANCIAL STATEMENTS | 17 3 The Group structure CPI FIM SA is the Group’s ultimate parent company. As at 31 December 2022, the Group comprises its parent company and 42 subsidiaries (41 subsidiaries as at 31 December 2021) controlled by the parent company and two joint ventures. For list of subsidiaries refer to Appendix I. 3.1 Changes in the Group structure In 202 2 , the Group acquired or founded the following subsidiaries: Entity Change Group’s share Date Rezidence Kunratice, s.r.o. Demerger 100.00% 1 July 2022 CPI Park Plzeň, s.r.o. Demerger 100.00% 1 October 2022 CPI Park Chabařovice, s.r.o. Demerger 100.00% 1 December 2022 CPI Podhorský Park, s.r.o. Demerger 100.00% 1 December 2022 In 2022, the Group disposed or liquidated the following subsidiaries: Entity Change Group’s share Date SCP Reflets Disposal 99.90% 10 March 2022 PAC Italy 130 SPV S.r.l. Disposal 100.00% 30 June 2022 In 2022, the Group sold its subsidiary SCP Reflets for EUR 1 to its parent company CPI Property Group and PAC Italy 130 SPV for EUR 2.2 million to third party. In 2021, the Group acquired or founded the following subsidiaries: Entity Change Group’s share Date CPI Italy 130 SPV S.r.l. Founded 100.00% 12 May 2021 CPI ACAYA S.r.l. Acquisition 100.00% 21 May 2021 Brno Property Invest XV., s.r.o. Acquisition 100.00% 1 June 2021 PAC Italy 130 SP V S.r.l. Founded 100.00% 30 June 2021 * Controlled investment vehicle of the Group. In 2021, the Group disposed or liquidated the following subsidiaries: Entity Change Group’s share Date Bubenská 1, a.s. Disposal 100.00% 1 April 2021 HAGIBOR Office Building, a.s. Liquidation 100.00% 29 April 2021 Karviná Property Development, a.s. Liquidation 100.00% 28 December 2021 Bubenská 1 office was completed and sold for the value of its net assets of EUR 17.2 million to the related party CPI, a.s. on 1 April 2021. 3.2 Property asset acquisitions in 2021 CPI ACAYA S.r.l. To support operations of newly acquired hotel building in Italy, the Group acquired an Italian based company CPI ACAYA S.r.l. Total consideration of the acquisition was EUR 0.8 million. The acquisition was recognized as a property asset acquisition as the company does not represent a business as defined by IFRS 3. The fair value of the identifiable assets and liabilities at the date of acquisition was as follows: EUR million Intangible assets 0.5 Property, plant and equipment 0.3 Trade receivables 0.1 Identifiable acquired assets 0.9 Trade payables (0.1) Net identifiable assets of subsidiary acquired at the date of acquisition amounted to EUR 0.8 million. The net cash outflow connected with the acquisition amounted to EUR 0.8 million. Brno Property Invest XV., s.r.o. On 1 June 2021, the Group acquired A.M.A. Brno spol. s.r.o., an owner of one land plot in Brno, the Czech Republic. The company was subsequently renamed to Brno Property Invest XV., s.r.o. The total consideration paid was EUR 2.2 million. The acquisition was recognized as a property asset acquisition as the company does not represent a business as defined by IFRS 3. The fair value of the identifiable assets and liabilities at the date of acquisition was as follows: EUR million Investment property 2.2 Current assets 0.2 Identifiable acquired assets 2.4 Financial debts and other liabilities (0.2) CPI FIM SA 2022 CONSOLIDATED FINANCIAL STATEMENTS | 18 Net identifiable assets of subsidiary acquired at the date of acquisition amounted to EUR 2.2 million. The net cash outflow connected with the acquisition amounted to EUR 2.2 million. CPI FIM SA 2022 CONSOLIDATED FINANCIAL STATEMENTS | 19 4Entity-wide disclosures The management of the Group reviews financial information that is principally the same as that based on the accounting policies described in note 2.2. For all asset types, discrete financial information is provided to the Board of Directors, which is the chief operating decision maker, on an individual entity basis. The group is engaged primarily in financing of CPI PG group; the Group’s other business activities consist of: - rendering of advisory and other services to CPI PG group; - investing in land bank and development portfolio in the Czech Republic; - managing of office portfolio in Poland; - operating of hotel resort in Italy; and - managing of residential portfolio in France. 4.1 Financing Interest income by countries 2022 2021 Amount In % Amount In % Poland 1 - 1 - Luxembourg 212,469 98% 210,715 100% Czech Republic 2 - 1 - Italy 3,500 2% 790 - Total 215,972 100% 211,507 100% Loans provided by country of the creditor 31 December 2022 31 December 2021 Amount In % Amount In % Luxembourg 4,568,394 97% 4,948,061 96% Non-current loans provided 4,568,394 97% 4,948,061 96% Luxembourg 144,579 3% 186,859 4% Current loans provided 144,579 3% 186,859 4% Total 4,712,973 100% 5,134,9 2 0 100% 4.2 Other business activities Revenues by countries 2022 2021 Amount In % Amount In % Czech Republic 2,983 6% 3,342 5% - Land bank 1,356 3% 1,039 2% - Office 1,433 3% 2,169 3% - Industry and logistics - - 102 - - Retail 194 - 32 - Luxembourg 946 2% 22,853 34% - Rendering of services 946 2% 22,789 34% - Other - - 64 - Poland - Office 41,846 91% 41,004 61% France - Residential 20 - 115 - Italy – Hospitality 598 1% 246 - Monaco – Residential 39 - 65 - Total 46,432 100% 67,625 100% Investment property by countries 31 December 2022 31 December 2021 Amount In % Amount In % Czech Republic 970,070 59% 839,426 55% - Land bank 930,083 57% 811,287 53% - Office 25,145 1% 26,522 2% - Development 12,565 1% - - - Retail 2,277 - 1,617 - Poland 591,990 36% 614,304 41% - Office 591,635 36% 613,943 41% - Land bank 355 - 361 - Other – residential 52,100 3% 60,700 4% Other – hospitality 25,950 2% - - Total 1,640,110 100% 1,514,430 100% CPI FIM SA 2022 CONSOLIDATED FINANCIAL STATEMENTS | 20 5 Consolidated statement of comprehensive income 5.1 Gross rental income 2022 2021 Gross rental income 34,685 34,880 5.2 Net service charge and other income 2022 2021 Service revenue 1,006 22,791 Service charge income 10,135 9,618 Revenues from sales of utilities 9 90 Service charges and other income 11,150 32,499 Cost of service charges (10,449) (9,710) Cost of utilities - (9) Cost of service and other charges (10,449) (9,719) Total net service charge income 701 22,780 In 2022, the service revenue decreased due to decrease of services provided to entities controlled by the majority shareholder of the Group. 5.3 Property operating expenses 2022 2021 Building maintenance (1,926) (2,204) Real estate tax (457) (279) Letting fee, other fees paid to real estate agents (245) (138) Facility management and other property related services (857) (1,427) Total (3,48 5 ) (4,048) 5.4 Net valuation gain 2022 2021 Valuation gain 107,267 265,502 Valuation loss (44,593) (1,800) Total 62,674 263,702 In 2022 and 2021, the valuation gain primarily relates to the Group’s portfolio located in the Czech Republic (EUR 106.6 million and EUR 226.4 million, respectively). Valuation loss incurred in 2022 primarily relates to polish office portfolio and one czech land bank. For the assumptions, the independent valuers used in the property valuations as at 31 December 2022 and 2021, refer to note 7.5. 5.5 Net gain on the disposal of investment property and subsidiaries 2022 2021 Proceeds from the disposal of investment property 66,567 44,455 Carrying value of investment property disposed of and related cost (58,954) (41,672) Net gain on the disposal of investment property 7,613 2,783 Proceeds from the disposal of subsidiaries 2,245 17,238 Carrying value of subsidiaries disposed of (2,019) (16,275) Net gain on the disposal of subsidiaries 226 963 Total 7,839 3,746 In 2022, the proceeds from disposal of investment property and subsidiaries and the related carrying value was primarily related to one land bank in Prague of EUR 63.0 million and sale of subsidiary PAC Italy 130 SPV of EUR 2.2 million. In 2021, the proceeds from disposal of investment property and subsidiaries and the related carrying value was primarily related to one office building in Brno of EUR 39.6 million and sale of subsidiary Bubenská 1 of EUR 17.2 million. The following table summarizes disposal effects of subsidiaries sold: 2022 Investment property 8,600 Intangible fixed assets 2 Trade receivables 1,963 Other non-financial current assets 12 Cash and cash equivalents 238 Total disposed assets 10,815 Financial debts non-current (8,493) Financial debts current (54) Trade payables (61) Other financial current liabilities (188) Total disposed liabilities (8,796) Carrying value of subsidiaries disposed of 2,019 CPI FIM SA 2022 CONSOLIDATED FINANCIAL STATEMENTS | 21 5.6Net gain on the disposal of the other investments 2022 2021 Proceeds from disposal of CPI PG shares - 155,418 Carrying value of CPI PG shares - (149,243) Total - 6,175 In 2021, the proceeds and carrying value of the disposal of other investments related to the sale of CPI PG shares (refer to note 6.4). 5.7 Amortization, depreciation and impairments 2022 2021 Depreciation and amortization (2,481) (624) (Impairment)/reversal of impairment of assets (245) 4,079 Total (2,726) 3,455 In 2022, impairment to trade receivables was increased by the Group due to change in their default. 5.8 Administrative expenses 2022 2021 Advisory and tax services (4,053) (9,535) Audit services (211) (299) Personnel expenses (805) (1,25 7 ) Legal services (419) (1,561) Other administrative expenses (1,191) (1,370) Total (6,679) (14,022) In 2022 and 2021, the advisory expenses also include the management services received from related parties in amount of EUR 0.8 million and EUR 6.3 million, respectively. In 2022 and 2021, the audit, tax and advisory expenses also include the cost of services provided by the Group’s auditor of EUR 0.2 million and 0.3 million in 2021, respectively. Personnel administrative expenses As at 31 December 2022 and 2021, the Group had 7 and 14 employees, respectively. Number of employees decreased in line with decrease of services provided by the Group (refer to note 5.2). 5.9 Other net financial result 2022 2021 Net foreign exchange gain/(loss) on investment property 4,269 (6,183) Other net foreign exchange gain 4,500 64,127 Other net financial result 27,877 (956) Bank charges (820) (434) Total 35,826 56,554 In 2022 and 2021, other net financial result mainly represents gain on revaluation of financial derivatives contracted with related parties amounting to EUR 27.6 million. Other net foreign exchange gains and losses in 2022 and 2021 were driven by retranslation of loans provided to related parties in foreign currencies. 5.10 Interest income and expense Interest income on loans and receivables relates primarily to loans provided to related parties (see note 6.5 and 11). Interest expense relates primarily to loans received from related parties, (see note 6.11 and 11). 2022 2021 Wages and salaries (666) (1,011) Social and health security contributions (132) (239) Other social expenses (7) (7) Total (805) (1,257) CPI FIM SA 2022 CONSOLIDATED FINANCIAL STATEMENTS | 22 5.11Income tax expense Tax recognized in profit or loss 2022 2021 Current income tax expense (10,574) (1,377) Adjustment for prior year 36 1,009 Income tax expense (10,538) (368) Temporary differences (14,642) (50,895) Utilization of tax losses carried forward (14,712) (4,978) Other effects - (1,435) Deferred income tax expense (29,354) (57,308) Total (39,892) (57,676) In 20 22 and 2021, based on the assessment of its recoverability, the Group partially released deferred tax asset of EUR 14.7 million and EUR 5.0 million, respectively. Reconciliation of effective tax rate 2022 2021 Profit for the period 180,645 366,843 Total income tax recognised in profit or loss 39,892 57,676 Profit before tax 220,537 424,519 Current income tax rate 24.94% 24.94% Income tax expense using the domestic corporate income tax rate (55,002) (105,875) Effect of tax rates in foreign jurisdictions 5,063 16,122 Non-deductible expense (18,108) (2,851) Tax exempt income 9,570 5,434 Change in unrecognized deferred tax asset from tax losses carried forward 18,905 29,254 Other effects (320) 240 Income tax expense (39,892) (57,676) The main tax rules imposed on the Group companies Luxembourg: The effective tax rate is 24.94% considering the combined corporate income tax rate (corporate income tax rate for companies with taxable income exceeding EUR 30 thousand is 18%), solidarity surtax of 7% on the corporate income tax rate and municipal business tax rate of 6.75%. Tax losses incurred until 2017 may be carried forward indefinitely, while losses incurred as from 2017 should be limited to 17 years. Czech Republic: The corporate income tax rate is 19%. Tax losses can be carried forward for 5 years. Losses may not be carried forward on a substantial (approximately 25%) change in the ownership of a company unless certain conditions are met. Poland: The corporate income tax rate is 19%. Lowered 9% is used for small size taxpayers (sales revenues including VAT below EUR 2 million in previous year). Tax losses 2016-2018 may be carried forward for 5 years but the loss utilization in each year is capped at the 50% of the tax loss. The losses incurred during 2019-2021 can be utilized: a) in the next five consecutive tax years, provided that the amount of the utilization in any of these years may not exceed 50% of the amount of this loss, or b) in one of the next five subsequent tax years by an amount not exceeding PLN 5,000,000, the undetermined amount is subject to settlement in the remaining years of this five-year period, provided that the amount of reduction in any of these years may not exceed 50% of the amount of this loss. Italy: The corporate income tax (“IRES”) rate is 24% plus the regional tax on productive activities (“IRAP”) of 4.82% is applicable in Rome where the business of the Group is situated. (The standard IRAP rate is 3.9% but Italian regions may increase or decrease the standard rate by up to 0.92%.) For IRES purposes, tax losses may be carried forward indefinitely. However, tax losses may be offset only up to 80% of taxable income in each year (the “minimum tax” rule). Tax losses incurred during the first 3 years of new activity may be used to fully offset corporate taxable income. Utilization of the tax losses carried forward is limited upon business reorganizations and a change of control. For IRAP purposes, tax losses may not be carried forward. France: Corporate income tax rate is 26.5% on taxable income up to EUR 250 million and 27.5% on taxable income exceeding EUR 250 million. Small corporations realising a turnover up to EUR 7.63 million (EUR 10 million from 2021) are subject to the reduced CIT rate of 15% that applies on their first EUR 38,120 of taxable profits. Tax losses may be carried forward indefinitely but may be fully utilized against profit up to EUR 1 million and 50% on the excess. CPI FIM SA 2022 CONSOLIDATED FINANCIAL STATEMENTS | 23 Recognized deferred tax asset and liability Asset Liability Net 31 December 2022 31 December 2021 31 December 2022 31 December 2021 31 December 2022 31 December 2021 Investment property 84 2,015 (150,856) (135,642) (150,772) (133,627) Property, plant and equipment - - (4) (305) (4) (305) Tax losses carried-forward 116,838 132,157 - - 116,838 132,157 Other 5,314 5,090 (145) (260) 5,169 4,830 Gross deferred tax asset/(liability) 122,236 139,262 (151,005) (136,207) (28,769) 3,055 Deferred tax offset by subsidiaries (1,866) (5,341) 1,866 5,341 - - Net deferred tax asset/(liability) 120,370 133,921 (149,139) (130,866) (28,769) 3,055 As at 31 December 2022 and 2021, the Group recognized the deferred tax asset from tax losses carried forward in total amount of EUR 116.8 million and EUR 132.2 million, respectively. As these tax losses relate primarily to the Luxembourg entities (EUR 115.0 million and EUR 129.7 million as at 31 December 2022 and 2021, respectively) and were generated before 2017, they can be carried forward indefinitely. Recognition of the deferred tax asset is based on the future taxable profits that are expected to be generated in next 10 years. The expected profits reflect a strategy of CPI PG in which, the Group renders the financial services to CPI PG’s subsidiaries. Unrecognised deferred tax asset 31 December 2022 31 December 2021 Tax losses carried-forward 4,370 13,413 * Unrecognized deferred tax asset from tax losses carried-forward due to uncertainty of its realization. Expiry of unrecognized tax losses Less than 1 year 1 to 3 years 3 to 5 years More than 5 years Total As at 31 December 2022 2,025 9,525 10,650 8,091 30,292 As at 31 December 2021 5,002 8,685 11,451 44,735 69,873 Movement in deferred tax 2022 2021 As at 1 January 3,055 63,519 Recognized in profit or loss (29,354) (57,308) Recognized in other comprehensive income 386 (386) Disposal of subsidiaries - 1,741 Translation reserve (2,856) (4,511) As at 31 December (28,769) 3,055 CPI FIM SA 2022 CONSOLIDATED FINANCIAL STATEMENTS | 24 6Consolidated statement of financial position 6.1 Investment property Office Land bank Development Retail Hospitality Residential Industry and logistics Total As at 1 January 2021 715,075 604,629 - - - 45,820 1,660 1,367,184 Acquisition of subsididaries - 2,223 - - - - - 2,223 Development costs and other additions 9,353 6,735 - 1,090 - - 19 17,197 Transfers within investment property - (451) - 451 - - - - Transfer to asset held for sale - (54,586) - - - - - (54,586) Disposals (111,692) (29) - - - - (1,678) (113,399) Valuation gain 25,729 223,093 - - - 14,880 - 263,702 Net foreign exchange loss 4,672 (10,806) - - - - (48) (6,182) Translation differences (2,672) 40,840 - 76 - - 47 38,291 As at 31 December 2021 640,465 811,648 - 1,617 - 60,700 - 1,514,430 Development costs and other additions 3,463 21,805 30 - 5,733 3,765 - 34,796 Transfer within investment property - (11,462) 11,462 - - - - - Transfers from property, plant and equipment - - - - 19,518 - - 19,518 Transfer from asset held for sale - - - - - - - - Disposals - (3,713) - - - (8,600) - (12,313) Valuation gain/loss (27,858) 92,284 705 609 699 (3,765) - 62,674 Net foreign exchange loss 10,974 (6,705) - - - - - 4,269 Translation differences (10,264) 26,581 368 51 - - - 16,736 As at 31 December 2022 616,780 930,438 12,565 2,277 25,950 52,100 - 1,640,110 Acquisition of subsidiaries In 2021, the Group acquired the and bank in Brno, the Czech Republic in total value of EUR 2.2 million (see note 3.1 and 3.2) . Development costs and other additions In 20 22 , the development costs primarily related Czech investment property portfolio of EUR 22.4 million and Italian portfolio in total amount of EUR 9.5 million. In 20 21 , the development costs primarily related to Nová Zbrojovka in Brno, the Czech Republic of EUR 4.8 million and Poland offices Eurocentrum and WFC Investments in total amount of EUR 5.2 million. Transfers from property, plant and equipment In 2022, the Group transferred one hotel resort in Italy of EUR 19.5 million (see note 6.2) from property, plant and equipment to investment property. Disposals In 2022, the Group disposed mainly residential portfolio in Nice of EUR 8.6 million (see note 3.1 and 5.5). The Group disposed in 2021 primarily two Czech offices Bubenská of EUR 71.7 million (see note 3.1 and 5.5) in Prague and Nová Zbrojovka of EUR 39.6 million in Brno (see note 5.5). Reconciliation between the values obtained from the external valuers and the reported values 31 December 2022 21 December 2021 Market value as estimated by the external valuer (refer to note 7.5) 1,637,333 1,514,114 Add: leased assets and other 2,777 316 As at 31 December 1,640,110 1,514,430 Valuation gain In 2022, the valuation gain related primarily to the Group’s Czech land bank portfolio in total amount of EUR 105.8 million, primarily related to future development projects Bubny Development of EUR 26.8 million, Nová Zbrojovka of EUR 14.7 million, MQM Czech of EUR 13.4 million and CPI – Land Development EUR 10.7 million. On the other hand, the Group recognized valuation loss mainly from Polish portfolio of EUR 25.1 million and one Czech land bank of EUR 12.8 million. In 2021, the valuation gain related primarily to the Group’s Czech office and land bank portfolio in total amount of EUR 226.1 million, primarily related to future development projects Rezidence Pragovka of EUR 58.4 million, Polygon of EUR 53.0 million, STRM Alfa of EUR 34.4 million, Bubny Development of EUR 20.6 million and MQM Czech of EUR 11.0 million. Further, the Group recognized valuation gain from Polish and Italian portfolio of EUR 24.3 million and EUR 12.9 million, respectively. CPI FIM SA 2022 CONSOLIDATED FINANCIAL STATEMENTS | 25 Translation differences Translation differences related to investment property arise in connection with translation of amounts of subsidiaries with different functional currency than EUR. 6.2 Property, plant and equipment 2022 2021 Owner occupied buildings Other Total Owner occupied buildings Other Total Cost As at 1 January 20,773 2,079 22,852 - 662 662 Acquisitions through the business combination - - - - 347 347 Hotel acquisition - - - 18,717 - 18,717 Transfer to investment property (19,164) (977) (20,141) - - - Development costs and other additions - 1,926 1,926 447 1,048 1,495 Translation differences - 5 5 - 22 22 Valuation gain/(loss) through OCI (1,609) - (1,609) 1,609 - 1,609 As at 31 December - 3,033 3,033 20,773 2,079 22,852 Accumulated depreciation and impairment losses As at 1 January (623) (36) (659) - - - Depreciation - (245) (245) (623) - (623) Transfer to investment property 623 - 623 Impairment loss/(reversal of impairment loss) - - - - (36) (36) As at 31 December - (281) (281) (623) (36) (659) Carrying amounts As at 1 January - - - - 662 662 At 31 December - 2,752 2,752 20,150 2,043 22,193 Hotel acquisition In 2021, the Group acquired a hotel building in Italy with the intention for development for EUR 18.7 million. The hotel building was reclassified to investment property in 2022. 6.3 Equity accounted investees As at 31 December 2022, the equity accounted investment in the amount of EUR 9.7 million (EUR 8.2 million as at 31 December 2021) represents investment in Uniborc S.A. Uniborc S.A. is a joint venture constituted in 2013 with Rodamco with aim to develop a shopping center in the Bubny area in Prague, the Czech Republic. The Group’s shareholding is 35%. 2022 2021 As at 1 January 8,190 7,044 Share of profit 1,481 1,146 Other 53 - As at 31 December 9 ,724 8,190 Condensed statement of comprehensive income of Uniborc S.A. 2022 2021 Net valuation gain on investment property 8,436 6,723 Administrative expenses (105) (89) Operating result 8,331 6,634 Interest expenses (2,477) (2,112) Profit before taxes 5,854 4,522 Income taxes (1,620) (1,248) Profit for the period 4,234 3,274 Condensed statement of financial position of Uniborc S.A. 31 December 2022 31 December 2021 Investment property 83,347 74,517 Cash and cash equivalents 136 93 Total assets 83,483 74,610 Non-current financial liabilities (41,454) (38,703) Deferred tax liabilities (13,817) (12,200) Curent financial liabilities (393) (280) Other current liabilities (36) (28) Total liabilities (55,700) (51,211) Net assets 27,783 23,399 6.4 Other investments As at 31 December 2022 the Group holds 67,000,000 shares in CPI PG, which represents 0.75% of the CPI PG’s shareholding and is valued at EUR 61.7 million (EUR 53.0 million as at 31 December 2021). CPI FIM SA 2022 CONSOLIDATED FINANCIAL STATEMENTS | 26 Through CPI PG share buy back on 26 February 2021, the Company sold 252,302,248 CPI PG shares for total of EUR 155.4 million with profit of EUR 6.2 million (carrying value of respective CPI PG shares was EUR 149.2 million). Sale price per share was EUR 0.616 per share and the Group’s carrying value of each share was EUR 0.59 per share. The valuation of CPI PG shares held by the Group as at 31 December 2022 and 2021 is based on an alternative valuation model because of not an active market. The management determined the use of EPRA NAV per share (net asset value per share determined based on the methodology of European Public Real Estate Association) of CPI PG as the most representative valuation model primarily due to: - EPRA NAV is a globally recognized measure of fair value; - EPRA NAV takes into consideration the fair value of the net assets of a company, applying known aspects of the company’s business model. For the valuation of the CPI PG shares held as at 31 December 2022 and 2021, EPRA NAV per CPI PG share as at 31 December 2022 and 2021 was used. CPI PG’s EPRA NAV per share EUR 0.92 as at 31 December 2022 (EUR 0.79 as at 31 December 2021) differs from the price at the stock- exchange EUR 0.91 as at 31 December 2022 (EUR 0.72 as at 31 December 2021). The change in the value of CPI PG shares is recognized in other comprehensive income by the Group. The detailed calculation of CPI PG’s EPRA NAV per share is presented in the CPI PG’s annual report. The Group adjusted the number of shares used in the calculation for the amount of shares owned by the Group as at 31 December 2022 and 2021. As at 31 December 2022, the EPRA NAV per share of EUR 0.93 (EUR 0.80 as at 31 December 2021) disclosed by CPI PG therefore differs from value used by the Group to value the CPI PG‘s shares owned. 6.5 Loans provided 31 December 2022 31 December 2021 Loans provided - related parties and joint ventures 4,583,073 4,962,740 Impairment to non-current loans provided to related parties (14,679) (14,679) Total non-current loans provided 4,568,394 4,948,061 Loans provided - related parties and joint ventures 144,579 186,859 Total current loans provided 144,579 186,859 Loans provided substantially decreased in 2022 due to offset of loans between Company and CPIPG SA. These loans bear interest rate between 0.48% - 13.01% p.a. (determined based on the Group ’ s risk assessment) and mature in 2022 - 2030. See note 10 for more information. Loans provided to joint venture include loan principal and the interest granted to Uniborc S.A. (see note 6.3) in the amount of EUR 14.6 million and EUR 13.6 million as at 31 December 2022 and 2021. The joint venture is primarily financed through a loan by both partners in the same proportion as their respective shareholdings. In 2022, the Group received repayment of loans provided of EUR 205.2 million (EUR 454.8 million in 2021) and provided loans of EUR 1,413.9 million (EUR 993.5 million 2021). 6.6 Trade receivables 31 December 2022 31 December 2021 Trade receivables due from related parties 1,053 935 Trade receivables due from third parties 5,847 6,418 Impairment - trade receivables due from other parties (826) (424) Total 6,074 6,929 6.7 Cash and cash equivalents 31 December 2022 31 December 2021 Bank balances 10 4 ,080 210,074 Cash on hand 2 2 Total 104,082 210,076 6.8 Other current receivables 31 December 2022 31 December 2021 Cash pool receivables due from related parties 56,982 28,711 Deposits available upon request due from related parties - 89,300 Other receivables due from related parties 98,026 97,626 Other receivables due from third parties 34,952 21,176 Impairment – other receivables due from other parties (1,902) (18) Total 188,058 236,795 The Company has agreed a cash-pool contracts with related subsidiaries of CPI PG Group (refer to note 2.2). As at 31 December 2022, other current receivables related to cash pool amounted to EUR 57.0 million (EUR 28.7 million as at 31 December 2021). As at 31 December 2021, the Group had arrangements with selected subsididaries of CPI PG Group allowing the Company to deposit its bank balances on their bank accounts. The deposits of EUR 89.3 million are available to the Group upon request. CPI FIM SA 2022 CONSOLIDATED FINANCIAL STATEMENTS | 27 6.9Assets/Liabilities linked to assets held for sale As at 31 December 2022, the one land bank project in Czech Republic (classified as asset held for sale as at 31 December 2021) was sold for EUR 63.0 million . 6.10 Equity As of 31 December 2022, the share capital of the Company amounts to EUR 13,145 thousand and is represented by 1,314,507,629 ordinary fully paid shares with a nominal value of EUR 0.01 each. The following table sets out information regarding the ownership of the Company ’ s shares as at 31 December 2022 and 2021, respectivelly: Shareholder Number of shares Share held Voting rights CPI PROPERTY GROUP S.A. 1,279,198,976 97.31% 97.31% Other 35,308,653 2.69% 2.69% Total 1,314,507,629 100.00% 100.00% Mandatory takeover bid over Company shares On 8 June 2016, CPI Property Group’s fully owned subsidiary Nukasso Holdings Limited directly and indirectly acquired approximately 97.31% of shares in the Company. As a consequence, Nukasso Holdings Limited from the CPI Property Group became obliged to launch a mandatory takeover bid to purchase any and all of the ordinary shares of the Company (the “Mandatory Takeover Offer”). On 22 August 2016, the Czech Office for the Protection of Competition granted the merger clearance for the acquisition of the Company by CPI Property Group, whereas its decision became final and binding on 23 August 2016. On 8 December 2017, the CSSF published press releases in which it stated, inter alia, that it has decided not to approve the offer document in the Mandatory Takeover Offer as a consequence of the existence of an undisclosed concert action with respect to the Company. On 15 March 2018, the CSSF published a press release informing that the decisions detailed in the above-mentioned CSSF press releases of 8 December 2017 have been challenged before the Luxembourg administrative courts. As of the date of this report, the Company has not received any formal decision in relation to the Mandatory Takeover Offer. Earnings per share 31 December 2022 31 December 2021 Weighted average outstanding shares for the purpose of calculating the basic EPS 1,314,507,629 1,314,507,629 Weighted average outstanding shares for the purpose of calculating the diluted EPS 1,314,507,629 1,314,507,629 Net profit attributable to owners of the parent 147,240 294,053 Net profit attributable to owners of the parent after assumed conversions/exercises 147,240 294,053 Total Basic earnings in EUR per share 0.11 0.22 Diluted earnings in EUR per share 0.11 0.22 Basic earnings per share (EPS) are calculated by dividing the profit attributable to the Group by the weighted average number of ordinary shares in issue during the period, excluding ordinary shares purchased by the Group and held as treasury shares. Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares. The warrants issued by the Company were not taken into account in the diluted EPS calculation. Non-controlling interests (NCI) After the sale of 80% stake in Czech subsidiaries Bubny Development, STRM Alfa, MQM Czech, Polygon BC (all with registered office at Vladislavova 1390/17, Prague 1, 110 00) and Vysočany Office (registered office at Pohořelec 112/24, Prague 1, 118 00) to related company GSG Europa (in 2019, 2018 and 2017, respectively), the Group continues to manage these entities. Considerring IFRS 10, the management concluded that the Group has control over the entities which are therefore consolidated in the Group’s consolidated financial statements as at 31 December 2022 and 2021. As at 31 December 2022 Bubny Development STRM Alfa MQM Czech Polygon BC Vysočany Office Total Land bank Land bank Land bank Land bank Land bank Group’s interest 20% 20% 20% 20% 20% - NCI – at the beginning of the year 143,789 48,088 16,321 63,038 6,085 277,321 NCI – profit for the period 11,435 7,339 8,631 5,559 441 33,405 Consensed financial information Non-current assets 276,902 23,131 38,480 111,842 12,565 462,920 Current assets 26 63,399 407 96 6 63,934 Total assets 276,928 86,530 38,887 111,938 12,571 526,854 Equity attributable to owners 194,028 69,285 31,189 85,748 8,157 388,407 Non-current liabilities and other 82,900 17,245 7,69 8 26,190 4,414 138,447 Total equity and liabilities 276,928 86,530 38,887 111,938 12,571 526,854 Profit for the year 14,294 9,174 10,788 6,949 551 41,756 Net increase/(decrease) in cash and cash equivalents - (13) - - - (13) As at 31 December 2021 CPI FIM SA 2022 CONSOLIDATED FINANCIAL STATEMENTS | 28 Bubny Development STRM Alfa MQM Czech Polygon BC Vysočany Office Total Land bank Land bank Land bank Land bank Land bank Proportion of ownership interests 20% 20% 20% 20% 20% - NCI – at the beginning of the year 138,887 25,760 9,197 28,756 1,931 204,531 NCI – profit for the period 4,900 22,329 7,124 34,283 4,154 72,790 Condensed financial information Non-current assets 250,309 16,390 24,114 94,488 11,462 396,763 Current assets 41 54,623 310 61 0 55,035 Total assets 250,350 71,013 24,424 94,549 11,462 451,798 Equity attributable to owners 179,734 60,111 20,401 78,799 7,606 346,651 Non-current liabilities and other 70,616 10,902 4,023 15,750 3,856 105,147 Total equity and liabilities 250,350 71,013 24,424 94,549 11,462 451,798 Profit for the year 6,125 27,911 8,905 42,854 5,193 90,988 Net increase/(decrease) in cash and cash equivalents (3,600) (3,581) (1) (33) (65) (7,280) 6.11 Financial debts 31 December 2022 31 December 2021 Loans from related parties 4,628,903 5,375,377 Bank loans 20,525 20,525 Lease liabilities 4,434 4,523 Total non-current financial debts 4,653,862 5,400,425 Loans from related parties 245,749 261,065 Bank loans 30 21 Lease liabilities 234 238 Total current financial debts 246,013 261,324 As at 31 December 2022 and 20 21 , the balance of the loans received from the Group ’s parent company CPI PG was EUR 4,220.2 million and EUR 5,075.8 million, respectively. The loans from CPI PG bear interest rates between 0.65% - 5.90% p.a. Maturity of financial debts As at 31 December 2022 Less than one year 1 to 5 years More than 5 years Total Loans from related parties 245,749 2,004,383 2,624,520 4,874,652 Bank loans 30 - 20,525 20,555 Lease liabilities 234 827 3,607 4,668 Total 246,013 2,005,210 2,648,652 4,899,875 As at 31 December 2021 Less than one year 1 to 5 years More than 5 years Total Loans from related parties 261,065 2,491,208 2,884,169 5,636,442 Bank loans 21 - 20,525 20,546 Lease liabilities 238 841 3,682 4,761 Total 261,324 2,492,049 2,908,376 5,661,749 For details on the loans received from related parties, refer to note 10. Reconciliation of movements of liabilities to cash flows arising from financing activities Loans and borrowings Lease liabilities Total As at 1 January 2022 5,656,988 4,761 5,661,749 Interest paid (167,479) - (167,479) Drawings of loans and borrowings 1,013,055 - 1,013,055 Repayments of loans and borrowings (112,917) - (112,917) Lease liabilities - - - Total changes from financing cash flows 732,659 - 732,659 Changes arising from offset with loans provided (1,612,727) - (1,612,727) The effect of changes in foreign exchange rates (10,286) (93) (10,379) Interest expense 128,573 - 128,573 As at 31 December 2022 4,895,207 4,668 4,899,875 Loans and borrowings Lease liabilities Total As at 1 January 2021 5,227,431 4,488 5,231,919 Interest paid (105,453) - (105,453) Drawings of loans and borrowings 553,743 - 553,743 Repayments of loans and borrowings (203,932) - (203,932) Lease liabilities - - - Total changes from financing cash flows 244,358 - 244,358 Changes arising from obtaining or losing control of subsidiaries - - - The effect of changes in foreign exchange rates 21,680 273 21,953 Interest expense 163,519 - 163,519 As at 31 December 2021 5,656,988 4,761 5,661,749 CPI FIM SA 2022 CONSOLIDATED FINANCIAL STATEMENTS | 29 6.12Other financial non-current liabilities 31 December 2022 31 December 2021 Tenant deposits 3,896 3,729 Payables from retentions 1,069 931 Other payables due to third parties 418 133 Total 5,383 4,793 6.13 Trade payables 31 December 2022 31 December 2021 Trade payables due to related parties 5,050 1,113 Trade payables due to third parties 7,573 7,840 Total 12,623 8,953 6.14 Other financial current liabilities 31 December 2022 31 December 2021 Cash pool payables due to related parties 46,150 31,915 Other payables due to related parties 14,558 22,382 Other financial current liabilities due to third parties 9,599 5,237 Total 70,307 59,534 The Company has agreed a cash-pool contracts with selected subsidiaries of CPI PG Group. As at 31 December 2022, the other financial current liabilities related to cash pool amounted to EUR 46.2 million (EUR 31.9 million as at 31 December 2021 ) . 6.15 Other non-financial current liabilities 31 December 2022 31 December 2021 Value added tax payables 287 95 Provisions 968 968 Other 34 27 Total 1,289 1,090 6.16 Leases where the Group acts as a lessor The commercial property leases typically have lease terms of between 5 and 10 years and include clauses to enable periodic upward revision of the rental charge according to market conditions. Some contracts contain options to terminate before the end of the lease term. The following table shows the future rental income from lease agreements where the terms are non-cancellable. 31 December 2022 31 December 2021 Less than one year 37,291 35,559 Between one and five years 64,560 65,561 More than five years 6,783 6,873 Total 108,634 107,993 CPI FIM SA 2022 CONSOLIDATED FINANCIAL STATEMENTS | 30 7Financial risk management Exposure to various risks arises in the normal course of the Group’s business. Financial risk comprises: • credit risk (refer to note 7.1); • liquidity risk (refer to note 7.2); • market risk including currency risk, interest rate risk and price risk (refer to note 7.3). This note presents information about the Group’s exposure to each of the above risks, the Group’s objectives, policies and processes for measuring and managing risk, and the Group’s management of capital. The primary objectives of the financial risk management function are to establish risk limits, and then ensure that exposure to risks stays within these limits. Supervision of the Group’s risk is accomplished through discussions held by executive management in appropriate frameworks together with reporting and discussions with the Board of Directors. 7.1 Credit risk Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Group is exposed to credit risk mainly from its rental activities (primarily for trade receivables) and from its financing activities, including provided loans, purchased bonds, deposits with banks and financial institutions and other financial instruments. The Group evaluates the concentration of risk with respect to loans provided as low, as the debtors are primarily entities controlled by the ultimate shareholder of the Company. Aging structure of financial assets as at 31 December 2022 and 2021 31 December 2022 Total neither past due nor impaired Total past due but not impaired Impaired Total Other investments 60,529 - - 60,529 Loans provided 4,712,973 - (14,679) 4,712,973 - to related parties 4,698,329 - (14,679) 4,698,329 - to third parties - - - - - to joint venture 14,644 - - 14,644 - bills of Exchange - - - - Trade and other receivables 168,777 25,431 (2,728) 194,208 Cash and cash equivalents 104,082 - - 104,082 Total 5,046,361 25,431 (17,407) 5,071,792 31 December 2021 Total neither past due nor impaired Total past due but not impaired Impaired Total Other investments 52,990 - - 52,990 Loans provided 5,134,920 - (32,763) 5,134,920 - to related parties 5,121,277 - (14,679) 5,121,277 - to third parties - - (18,084) - - to joint venture 13,643 - - 13,643 - bills of Exchange - - - - Trade and other receivables 242,527 1,271 (481) 243,798 Cash and cash equivalents 210,076 - - 210,076 Total 5,640,513 1,271 (33,244) 5,641,784 As at 31 December, the Group recognized an impairment of EUR 14.7 million (EUR 14.7 million as at 31 December 2021) against loans provided to related parties. Breakdown of overdue financial assets which are not impaired: 31 December 2022 Past due 1-30 days Past due 31-90 days Past due 91- 180 days Past due 181-360 days Past due more than 360 days Total Trade and other receivables 5,448 5,720 4,139 10,053 71 25,431 Total 5,448 5,720 4,139 10,053 71 25,431 31 December 2021 Past due 1-30 days Past due 31-90 days Past due 91- 180 days Past due 181-360 days Past due more than 360 days Total Trade and other receivables 794 115 138 35 189 1,271 Total 794 115 138 35 189 1,271 As at 31 December 2022, receivables overdue for more than 360 and 180 days primarily related to intented acquisition of certain land banks in Italy and therefore were not assessed as doubtful. CPI FIM SA 2022 CONSOLIDATED FINANCIAL STATEMENTS | 31 Cash and cash equivalents Cash and cash equivalents, neither past due nor impaired (Moody ˈ s ratings of respective counterparties): 31 December 2022 31 December 2021 A1 89,908 136,570 A2 1 1,777 A3 52 - Aa3 246 186 Baa1 10,967 128 Baa2 2,776 - Not rated 132 71,415 Total 104,082 210,076 7.2 Liquidity risk The main objective of liquidity risk management is to reduce the risk that the Group does not have available resources to meet its financial obligations, working capital and committed capital expenditure requirements. The Group maintains liquidity management to ensure that funds are available to meet all cash flow needs. Concentration of risk is limited thanks to diversified maturity of the Group’s liabilities and diversified portfolio of the Group’s financing. The Group manages liquidity risk by constantly monitoring forecasts and actual cash flows and by various long-term financing. The Group’s liquidity position is monitored on a weekly basis by division managers and is reviewed quarterly by the Board of Directors. A summary table with maturity of liabilities is used by key management personnel to manage liquidity risks. Liquidity risk analysis The following table summarizes the maturity profile of the Group’s financial liabilities based on contractual undiscounted payments including accrued interest. The table reflects the earliest settlement of Group’s liabilities based on contractual maturity and includes non-derivative as well as derivative financial liabilities. At 31 December 2022 Carrying value < 3 month 3-12 months 1-2 years 2-5 years > 5 year Total Financial debts 4,899,875 121,577 251,291 184,526 2,304,352 2,835,829 5,697,575 - loans from related parties 4,874,652 121,246 251,091 184,037 2,302,948 2,810,096 5,669,418 - bank loans 20,555 97 200 267 800 22,126 23,490 - lease liabilities 4,668 234 - 222 604 3,607 4,668 Other non-current liabilities 5,383 - - 1,849 2,730 804 5,383 Other current liabilities 82,930 63,221 19,709 - - - 82,930 Total 4,988,188 184,798 271,000 186,375 2,307,082 2,836,633 5,785,888 Other current liabilities include current trade payables and other financial current liabilities. At 31 December 2021 Carrying value < 3 month 3-12 months 1-2 years 2-5 years > 5 year Total Financial debts 5,661,749 256,812 172,018 646,613 2,458,968 3,153,885 6,688,296 - loans from related parties 5,636,442 256,486 171,818 646,120 2,457,553 3,128,077 6,660,054 - bank loans 20,546 88 200 267 800 22,126 23,481 - lease liabilities 4,761 238 - 226 615 3,682 4,761 Other non-current liabilities 4,793 - - 747 2,571 1,475 4,793 Other current liabilities 68,487 44,688 23,799 - - - 68,487 Total 5,735,029 301,500 195,817 647,360 2,461,539 3,155,360 6,761,576 Other current liabilities include current trade payables and other financial current liabilities. The Group maintains strong cash reserves and maintains flexibility with regard to potential uses of liquidity such as capital expenditures and development spending, shareholder distributions etc. As of the date of these financial statements, the Group does not face a significant liquidity risk. 7.3 Market risk Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and prices will affect the Group’s income or the value of its holdings of financial instruments or could cause future cash flows related to financial instruments to fluctuate. The objective of market risk management is to manage and control market risk exposures within acceptable parameters while optimizing the return. The Group’s market risk mainly arises from open positions in a) foreign currencies and b) loans provided and financial debts, to the extent that these are exposed to general and specific market movements. Market risk exposures are measured using sensitivity analysis. Sensitivities to market risks included below are based on a change in one factor while holding all other factors constant. Foreign currency risk Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates (see note 2.2(b)). CPI FIM SA 2022 CONSOLIDATED FINANCIAL STATEMENTS | 32 The Group is exposed to currency risk mainly on sales, purchases and borrowings that are denominated in a currency other than the respective functional currencies of Group entities, primarily the CZK, but also others (see note 2.2(b)). Sensitivity analysis – exposure to currency risk The table below shows the material balances held in foreign currencies that are deemed subject to currency risk and presents sensitivities of profit or loss to reasonably possible changes in foreign currency rates with all other variables held constant. A 10% change in the foreign currency rate of foreign currencies would have the below effect to profit/(loss) or equity of the Group providing all other variables remaining constant: 31 December 2022 Original currency In TEUR Change in TEUR (functional currency depreciated by 10%) Change in TEUR (functional currency appreciated by 10%) Cash and cash equivalents 104,082 TEUR 75,032 - - TCZK 12,950 1,295 (1,295) TUSD 10 1 (1) THUF 4,143 414 (414) TCHF 353 35 (35) TPLN 4,062 406 (406) TGBP 7,531 753 (753) THRK 1 - - Loans provided 4,712,973 TEUR 2,872,099 - - TCZK 1,401,460 140,146 (140,146) THUF 197,213 19,721 (19,721) TRON 15,289 1,529 (1,529) TGBP 226,912 22,691 (22,691) Financial debts (4,899,875) TEUR (4,555,362) - - TCZK (46,415) (4,641) 4,641 TCHF (65,083) (6,508) 6,508 TPLN (4,668) (467) 467 TGBP (228,347) (22,835) 22,835 Net exposure to currency risk TCZK 1,367,995 136,799 (136,799) TGBP 6,096 610 (610) TPLN (606) (61) 61 TRON 15,289 1,529 (1,529) TUSD 10 1 (1) THUF 201,356 20,136 (20,136) THRK 1 - - TCHF (64,730) (6,473) 6,473 31 December 2018 Original currency In TEUR Change in TEUR (functional currency depreciated by 10%) Change in TEUR (functional currency appreciated by 10%) Cash and cash equivalents 129,447 TEUR 108,669 - - TCZK 11,271 1,127 (1,127) CPI FIM SA 2022 CONSOLIDATED FINANCIAL STATEMENTS | 33 31 December 2021 Original currency In TEUR Change in TEUR (functional currency depreciated by 10%) Change in TEUR (functional currency appreciated by 10%) Cash and cash equivalents 210,076 TEUR 164,899 - - TCZK 25,037 2,504 (2,504) TUSD 7 1 (1) THUF 3,344 334 (334) TCHF 195 19 (19) TPLN 16,545 1,655 (1,655) TGBP 48 5 (5) THRK 1 - - Loans provided 5,134,920 TEUR 3,116,805 - - TCZK 1,448,292 144,829 (144,829) THUF 342,066 34,207 (34,207) TRON 15,567 1,557 (1,557) TGBP 212,190 21,219 (21,219) Financial debts (5,661,749) TEUR (5,228,346) - - TCZK (123,546) (12,355) 12,355 TCHF (62,034) (6,203) 6,203 TPLN (4,761) (476) 476 TGBP (243,062) (24,306) 24,306 Net exposure to currency risk TCZK 1,349,783 134,978 (134,978) TGBP (30,824) (3,082) 3,082 TPLN 11,784 1,179 (1,179) TRON 15,567 1,557 (1,557) TUSD 7 1 (1) THUF 345,410 34,541 (34,541) THRK 1 - - TCHF (61,839) (6,184) 6,184 31 December 2018 Original currency In TEUR Change in TEUR (functional currency depreciated by 10%) Change in TEUR (functional currency appreciated by 10%) Cash and cash equivalents 129,447 TEUR 108,669 - - TCZK 11,271 1,127 (1,127) Interest rate risk At the reporting date the interest rate profile of the Group’s interest-bearing financial instruments are described under notes 6.5 for financial assets and under notes 6.11 financial liabilities respectively. Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Group’s interest rate risk is monitored by the Group’s management on a monthly basis. The interest rate risk policy is approved quarterly by the Board of Directors. Management analyses the Group’s interest rate exposure on a dynamic basis. Various scenarios are simulated, taking into consideration refinancing, renewal of existing positions and alternative financing sources. Loans provided by the Group require instalments to be paid by the borrower according to a payment schedule, based on a fixed interest rate. The interest rates charged by the Group are usually based on Group‘s borrowing interest rates. As the loans provided (including those to related parties) are based on fixed rates, and no financial debt is measured at fair value through profit and loss the Group’s exposure to the risk of changes in market interest rates relates primarily to the Group’s long-term debt obligations with floating interest rates. These obligations primarily include bank loans. As at 31 December 2022, there are no bank loans with flexible interest rates. Trade receivables and payables are interest-free and have settlement dates within one year. Price risk The Group is exposed to price risks related to investments in shares of CPI PG, which are classified as other investments. Other components of equity would increase or decrease by EUR 3.1 million as at 31 December 2022 (EUR 2.6 million as at 31 December 2021) as a result of 5% increase or decrease of EPRA NAV per share of CPI PG. Other risks The Group is exposed to price risk other than in respect of financial instruments, such as property price risk including property rental risk. For sensitivity analysis on changes in assumptions of investment property valuation refer to note 7.5. 7.4 Capital management The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders; and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt. CPI FIM SA 2022 CONSOLIDATED FINANCIAL STATEMENTS | 34 There is no real seasonality impact on its financial position but rather a volatility of financial markets might positively or negatively influence Group’s consolidated financial position. No changes were made in the objectives, policies or processes during the year ended 31 December 2022. The Group monitors capital on the basis of the gearing ratio. Gearing ratio This ratio is calculated as total debt divided by total equity. Debt is defined as all non-current and current liabilities. Equity includes all capital and reserves as shown in the consolidated statement of financial position. 31 December 2022 31 December 2021 Debt 5,148,679 5,867,672 Equity 1,717,819 1,515,970 Gearing ratio in % 299.72% 387.06% 7.5 Fair value measurement Fair value of financial instruments Fair value measurements of financial instruments reported at fair value are classified by level of the following measurement hierarchy: - Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities. - Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices); - Level 3: Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs). There were no changes in the Group’s valuation processes, valuation techniques, and types of inputs used in the fair value measurements during the period. There were no transfers between Level 1 and Level 2 fair value measurements during the period, and no transfers into or out of Level 3 fair value measurements during the period 2022. The following tables show the carrying amounts at fair value of financial assets and liabilities, including their level in the fair value hierarchy. It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value. Accounting classification and fair values The following tables show the carrying amounts and fair value of financial assets and liabilities, including their level in the fair value hierarchy. It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value. 31 December 2022 31 December 2021 Financial assets measured at fair value Carrying amount Fair value Carrying amount Fair value CPI Property Group shares 61,646 61,646 52,981 52,981 Other investments 9 9 9 9 Financial assets not measured at fair value Loans provided 4,698,329 5,065,198 5,121,277 5,592,044 Loans provided to joint venture 14,644 14 ,644 13,643 1 3,643 Financial liabilities not measured at fair value Financial debt – other 4,879,320 4,702,563 5,641,203 5,687,797 Financial debt – bank loans (floating rate) 22 22 - - Financial debt – bank loans (fixed rate) 20,533 18,551 20,546 19,632 * For the valuation as at 31 December 2021, the shares are valued using EPRA NAV per share of CPI PG as at 31 December 2021 (refer to note 6.4). ** The fair values of the financial assets and financial liabilities included in the level 3 category have been determined in accordance with generally accepted pricing models based on the discounted cash flow analysis, with the most significant inputs being the discount rate that reflects the credit risk of counterparties, with exception of loans provided to/ received from entities controlled by the majority shareholder of the Company, which bear limited credit risk from the Group’s perspective. The Group classifies all its financial assets and liabilities as Level 3 in the fair value hierarchy. Fair value measurement of investment property The Group’s investment properties were valued at 31 December 2022 and 2021 in accordance with the Group’s accounting policies. The Group utilizes independent professionally qualified valuers, who hold a recognised relevant professional qualification and have recent experience in the locations and segments of the investment properties valued. For all these properties, their current use equates to the highest and best use. The Group’s finance department includes a team that reviews the valuations performed by the independent valuers for financial reporting purposes. Main observable and unobservable inputs The table below presents the valuation method, the key observable and unobservable inputs for each class of property owned by the Group, used by the valuers as at the end of 31 December 2022 and 2021 respectively. The fair value hierarchy of the valuations is Level 3 . Fair value amounts are stated in EUR millions. CPI FIM SA 2022 CONSOLIDATED FINANCIAL STATEMENTS | 35 Investment property Retail Fair Value 2022 Fair Value 2021 Valuation technique Significant unobservable inputs Range (weighted avg) 2022 Range (weighted avg) 2021 Czech Republic 2 2 DCF ERV per sqm €190 €175 NRI per sqm €194 €173 Discount Rate 5.5% 5.5% Exit Yield 5.5% 5.5% Vacancy rate 0% 0% Office Fair Value 2022 Fair Value 2021 Valuation technique Significant unobservable inputs Range (weighted avg) 2022 Range (weighted avg) 2021 Czech Republic 25 27 Income ERV per sqm €174 €164 capitalisation NRI per sqm €127 €131 Equivalent Yield 5.41% 4.9% Vacancy rate 23.59% 10.4% Complementary Assets * - 613 Income ERV per sqm - €183-€304(€247) capitalisation NRI per sqm - €113-€277(€208) Equivalent Yield - 4.7%-6.8% (5.2%) Vacancy rate - 0.0%-10.9% (4.3%) Complementary Assets * 591 - DCF ERV per sqm €198-€313(€258) - DCF NRI per sqm €118-€276(€217) - Level 3 DCF Discount Rate 5.3%-7.7% (5.9%) - Level 3 DCF Exit Yield 0.0%-28.8% (6.4%) - Hotels rented Fair Value 2022 Fair Value 2021 Valuation technique Significant unobservable inputs Range (weighted avg) 2022 Range (weighted avg) 2021 Complementary 26 - DCF Rate per key €267,526 - Exit Yield 6.8% - Discount Rate 10.5% - Residential Fair Value 2022 Fair Value 2021 Valuation technique Significant unobservable Inputs Range (weighted avg) 2022 Range (weighted avg) 2021 Complementary Assets 28 36 Comparable Fair value per sqm €19,524- €29,962(€27,750) €17,077- €32,324(€25,120) Italy 25 25 Comparable Fair value per sqm €13,938 €24,899 Landbank Fair Value 2022 Fair Value 2021 Valuation technique Significant unobservable Inputs Range (weighted avg) 2022 Range (weighted avg) 2021 Czech Republic ** 192 166 Comparable Fair value per sqm €2-€2,452(€12) €2-€2,353(€10) Prague 336 278 Comparable Fair value per sqm €11-€4,175(€326) €11-€3,702(€300) Czech Republic 9 28 Residual Gross development value €3,111 €2,995-€4,862(€4,262) Development margin 25.0% 15.0%-25.0%(18.2%) Landbank and Development Fair Value 2022 Fair Value 2021 Valuation technique Significant unobservable Inputs Range (weighted avg) 2022 Range (weighted avg) 2021 Land bank Bubny 246 220 Comparable Fair value per sqm (€1,223) (€1,094) Land bank Zbrojovka 144 119 Comparable Fair value per sqm (€622) (€515) Development Vysočany *** 13 - Comparable Fair value per sqm (€2,084) - Total 1,637 1,514 roperty, plant and equipment Hotels and Resorts Fair Value 2022 Fair Value 2021 Valuation technique Significant unobservable inputs Range (weighted avg) 2022 Range (weighted avg) 2021 Complementary - 20 DCF Rate per key - €103,866 Exit Yield - 6.8% Discount Rate - 9.9% Total - 20 * Valuation method changed from Income Capitalization as at 31 December 2021 to DCF as at 31 December 2022. ** Decreased also due to 2022 disposals of EUR 55.8 million. *** Classified as landbank as at 31 December 2021. *** Reclassified from property, plant and equipment as at 31 December 2022 to investment property as at 31 December 2022. The tables above are net of properties classified as assets held for sale, recent acquisitions and selected leased properties. The amounts of classes of property as at 31 December 2022 in the table above is not fully comparable to the amounts as at 31 December 2021, primarily due to changes of valuation methods and changes in classification of assets due to their change of use. Appraisal for Bubny as at 31 December 2022 Bubny is a land bank with a size over 202 thousand square meters and is located near the Prague’s city center. The majority of the site is currently not used. As at 31 December 2022 and 2021, a valuation of the land bank was conducted by external valuation expert Jones Lang La Salle (“JLL”) using the comparable method. This method was based on 6 recently executed land site transactions in Prague, included in below table: 2022 Comparative method 1 2 3 4 5 6 Zoning plan Mixed use Mixed use Mixed use Mixed use Industrial -> Residential Mixed use Size (sqm) – approx. 44,000 67,000 10,000 9,000 80,000 20,000 Transacted price per sqm (EUR) 500 900 3,000 2,200 400 2,100 CPI FIM SA 2022 CONSOLIDATED FINANCIAL STATEMENTS | 36 2021 Comparative method 1 2 3 4 5 6 Zoning plan Mixed use Mixed use Mixed use Mixed use Industrial -> Residential Residential Size (sqm) – approx. 44,000 128,000 10,000 80,000 9,000 20,000 Transacted price per sqm (EUR) 500 400 2,800 400 2,100 2,000 The fair value was determined by estimating the fair value per 1 square meter based on comparative land site transaction prices, adjusted for differences between comparative land sites and Bubny site. The adjustments provided for the following characteristics: Adjustment Range used by JLL Average multiple used Description Microlocation Multiple 0.90 – 1.30 1.10 Vicinity to the city center, attractiveness of the area, public amenities. Access Multiple 0.95 - 1.05 1.02 Vehicular and pedestrian access to the property Public transportation Multiple 0.90 - 1.20 1.03 Metro, trams and bus stops in the vicinity Size Multiple 0.8 – 0.95 0.87 Size of land plots Existence of Structures Multiple 1 - 1.05 1.01 Old structures being present on the site, with potential historical protection. Market improvement Multiple 1 - 1.35 1.21 Improvement of the market since the transaction, adjustment used for optimizing dates of transactions to the date of valuation Flooding area Multiple 1 - 1.10 1.02 Risk of floods based on flood map issued by the Association of Insurance Companies Liquidity of apartments Multiple 0.95 - 1.10 1.01 Demand for flats in the location Individual characteristics of the land & Planning procedure Multiple 0.75 – 1.00 0.85 Status of development (construction feasibility, construction ban, zoning / building permits etc.) Adjustment Factor due to too high price Multiple 0.75 – 1.00 0.96 Adjustment in case the realized price was above market level Sensitivity analysis of Bubny site As the Bubny site was valued by comparable method, the sensitivity analysis was prepared for two key adjustments: micro location and size. For Micro location JLL used the largest range of multiples, indicating high level of judgement included in the adjustment estimate. Size adjustment is selected for sensitivity analysis because of the significance of differences in size between Bubny and comparative land sites. Multiple microlocation MEUR 0.95 1.00 1.05 0.95 222 235 247 1.00 235 247 259 Multiple size 1.05 247 259 272 Triggering and expected events for further development of the Bubny land bank Municipal elections were held in Prague in October 2018. The elected Prague leaders were to select land plots for development of apartment buildings as the current supply is lacking. The Prague coalition included Bubny in the statement as it aims to significantly speed up residential development through removing construction bans for these territories. In December 2020, there was a new land study Holesovice-Bubny-Zatory approved. The study represents a basis for a change in the zoning plan which is expected to focus on the future growth of real estate in Prague through development inside the city rather than by growth outside the city’s existing borders. The study divides the Bubny area in several sectors with different use and potential for future development. The land bank owned by the Group was split to several blocks planned for residential and for commercial development, the northern part which is close to the railway line is planned for a public park. Total potential gross floor area attributable to the Group’s land bank in the study is approx. 530,000 sqm. Once the change in the zoning plan becomes legally binding, the construction ban is expected to be removed. These plans contribute to increasing public pressure on the authorities to allow development in Prague, particularly in the brownfield development areas. Appraisal for Zbrojovka as at 31 December 2022 Zbrojovka is a Brown field/land bank with a size over 231 thousand square meters and is located in Brno, the Czech Republic. The majority of the site is currently not used (except for a newly developed office building ZET office). As at 31 December 2022 and 2021, a valuation of the land bank was prepared by JLL using the comparable method. This method was based on 7 recently executed land site transactions in Brno, included in below table: 2022 Comparative method 1 2 3 4 5 6 7 Zoning plan Mixed use Mixed use Mixed use Industrial -> Residential Residential Commercial Mixed Use Size (sqm) – approx. 9,000 23,000 5,000 8,000 6,000 46,000 4,000 Transacted price per sqm (EUR) 300 500 700 700 500 400 400 2021 Comparative method 1 2 3 4 5 Zoning plan Mixed use Mixed use Mixed use Industrial -> Residential Mixed use Size (sqm) – approx. 9,000 23,000 5,000 8,000 6,000 Transacted price per sqm (EUR) 300 400 700 700 500 CPI FIM SA 2022 CONSOLIDATED FINANCIAL STATEMENTS | 37 The fair value was determined by estimating the fair value per 1 square meter based on comparative land site transaction prices, adjusted for differences between comparative land sites and Zbrojovka site. The adjustments provided for the following characteristics: Adjustment Range used by JLL Average multiple used Description Microlocation Multiple 0.85 - 1.30 1.09 Vicinity to the city center, attractiveness of the area, public amenities. Access Multiple 0.95 - 1.10 1.02 Vehicular and pedestrian access to the property Public transportation Multiple 0.95 - 1.15 1.03 Tram, trolleybus and bus stops in the vicinity Size Multiple 0.80 - 0.95 0.86 Size of land plots Existence of structures Multiple 1.00 - 1.15 1.03 Old structures being present on the site, with potential historical protection. Market improvement Multiple 1.05 - 1.25 1.14 Improvement of the market since the transaction, adjustment used for optimizing dates of transactions to the date of valuation Flooding area Multiple 0.95 - 1.05 0.98 Risk of floods based on flood map issued by the Association of Insurance Companies Liquidity of apartments Multiple 0.95 - 1.05 1.01 Demand for flats in the location Individual characteristics of the land & Planning procedure Multiple 0.65 – 1.45 1.20 Status of development (construction feasibility, construction ban, zoning / building permits etc.) Sensitivity analysis of Zbrojovka As the Zbrojovka site was valued by comparable method, the sensitivity analysis was prepared for two key adjustments: planning procedure and size. For planning procedure JLL used the largest range of multiples, indicating high level of judgement included in the adjustment estimate. Size adjustment is selected for sensitivity analysis because of the significance of differences in size between Zbrojovka and comparative land sites. Multiple microlocation MEUR 0.95 1.00 1.05 0.95 127 135 142 1.00 135 142 149 Multiple size 1.05 142 149 156 Triggering and expected events for further development of Zbrojovka land bank Zbrojovka (formerly armory factory) is classified as development for over the last 3 years. In December 2020, there were final changes to master plan approved. The master plan defines all the main urbanistic, technical and infrastructure links of the area. Development expects residential, office and public amenities with expected gross floor area of approx 510 000 sqm. The budgeted timeline for the development of the whole area is between 10 and 15 years. As of the valuation date, vast of the former structures were removed. The development of the area is divided into 8 phases in separate areas. The first phase started in 2022 in southern part of the landbank. Other land banks The other land banks which were valued by the comparable method have a total fair value of EUR 528 million and EUR 444 million as at 31 December 2022 and 2021 and a size of 18 million sqm. As these land banks differ significantly in various parameters (such as current zoning, location & micro-location, existence of structures, access etc.) no further disaggregation was performed. Smaller part of landbanks was valued by residual method with total fair value of EUR 9 million as at 31 December 2022 (28 million as at 31 December 2021) and a size of 15 thousands sqm as at 31 December 2022 (30 thousands sqm as at 31 December 2021). The sensitivity analysis for assets where the fair value was determined by comparative method was not prepared, as the potential change in inputs (such as change of multiples etc.) would result in equal or direct change in outputs. Sensitivity analysis on changes in assumptions of property valuations The Group has performed a sensitivity analysis on changes in assumptions of property valuation. The significant unobservable inputs used in fair value measurement categorized within level 3 of the fair value hierarchy of the Group portfolio are: - equivalent yield or discount rate; - estimated rental value (ERV) for rental asset; - development margin/profit for development. CPI FIM SA 2022 CONSOLIDATED FINANCIAL STATEMENTS | 38 Change of the valuation rates would result in the following fair values – analysis of the portfolio of assets valued by discounted cash flow, income capitalization method and development appraisal: As at 31 December 2022 Czech Republic – Retail - DCF Czech Republic – Office - Income Capitalisation MEUR Yield MEUR Yield (0.25%) - 0.25% (0.25%) - 0.25% (5.00%) 1.91 1.82 1.73 (5.00%) 25.21 23.98 22.89 ERV - 2.01 1.91 1.82 ERV - 26.42 25.14 23.98 5.00% 2.11 2.01 1.91 5.00% 27.64 26.29 25.07 Czech Republic Landbank as a development MEUR Developer‘s Profit (5.00%) 10.30 Developer‘s Profit (2.50%) 9.67 Developer‘s Profit - 9.06 Developer‘s Profit 2.50% 8.48 Developer‘s Profit 5.00% 7.92 Poland - Office – DCF Complementay – Hotels - DCF MEUR Yield MEUR Yield (0.25%) - 0.25% (0.25%) - 0.25% (5.00%) 585.9 559.7 535.5 (5.00%) 26.65 25.95 25.25 ERV - 618.6 590.8 565.4 ERV - 26.65 25.95 25.25 5.00% 651.2 622.0 595.3 5.00% 26.65 25.95 25.25 As at 31 December 2021 Czech Republic – Retail - DCF Czech Republic – Office - Income Capitalisation MEUR Yield MEUR Yield (0.25%) - 0.25% (0.25%) - 0.25% (5.00%) 1.61 1.54 1.47 (5.00%) 26.80 25.41 24.15 ERV - 1.70 1.62 1.55 ERV - 27.99 26.52 25.20 5.00% 1.78 1.70 1.62 5.00% 29.18 27.64 26.25 Czech Republic Landbank as a development MEUR Developer‘s Profit (5.00%) 31.58 Developer‘s Profit (2.50%) 29.62 Developer‘s Profit - 27.74 Developer‘s Profit 2.50% 25.94 Developer‘s Profit 5.00% 24.21 Poland - Office – Income Capitalization Complementay – Hotels - DCF MEUR Yield MEUR Yield (0.25%) - 0.25% (0.25%) - 0.25% (5.00%) 617.71 585.24 555.84 (5.00%) 19.54 19.14 18.76 ERV - 647.43 613.26 582.32 ERV - 20.57 20.15 19.75 5.00% 677.14 641.27 608.79 5.00% 21.60 21.16 20.74 CPI FIM SA 2022 CONSOLIDATED FINANCIAL STATEMENTS | 39 8Litigations Kingstown dispute in Luxembourg In January 2015 the Company was served with summons by Kingstown Partners Master Ltd. of the Cayman Islands, Kingstown Partners II LP of Delaware, Ktown LP of Delaware (collectively referred to as “Kingstown”), claiming to be former shareholders of the Company. The action was filed with the “Tribunal d´Arrondissement de et a Luxembourg“ (the “Court”) and seeks condemnation of the Company, CPI PG and certain members of the Company´s board of directors as jointly and severally liable to pay damages in the amount of EUR 14.5 million and compensation for moral damage in the amount of EUR 5 million. According to Kingstown’s allegation the damage claimed arose inter alia from the alleged violation of the Company’s minority shareholders rights. The management of the Company has been taking all available legal actions to oppose these allegations in order to protect the corporate interest as well as the interest of its shareholders. Accordingly, the parties sued by Kingstown raised the exceptio judicatum solvi plea, which consists in requiring the entity who initiated the proceedings and who does not reside in the EU or in a State which is not a Member State of the Council of Europe to pay a legal deposit to cover the legal costs and compensation procedure. The Court rendered a judgement on 19 February 2016, whereby each claimant has to pay a legal deposit in the total amount of EUR 90 thousand to the “Caisse de Consignation” in Luxembourg. Kingstown paid the deposit in January 2017 and the litigation, currently being in a procedural stage, is pending. In October 2018, Kingstown's legal advisors filed additional submission to increase the amount of alleged damages claimed to EUR 157.0 million. The Company continues to believe the claim is without merit and intends to vigorously contest it. In June 2019, the Court issued a first instance judgement, dismissing the claim against CPI PG because the claim was not clearly pleaded (“libellé obscur”) in relation to CPI PG. In December 2020, the Luxembourg Court declared that the inadmissibility of the claim against CPI PG and certain other defendants has not resulted in the inadmissibility of the litigation against the Company and the remaining defendants. Some defendants have decided to appeal against this judgment which declared the claim admissible against the Company. A judgment on the appeal is not expected to occur before thesecond quarter of 2022. On 28 March 2023 the court of appeal has rejected the appeal and therefore the case will be heard on the merits before the first instance Luxembourg Court during 2023. Disputes related to warrants issued by the Company The Company was sued by holders of the warrants holders of the 2014 Warrants registered under ISIN code XS0290764728. The first group of the holders of the 2014 Warrants sued the Company for approximately EUR 1.2 million in relation to the Change of Control Notice published by the Company, notifying the holders of the 2014 Warrants that the Change of Control, as defined in the Securities Note and the Summary for the 2014 Warrants, occurred on 8 June 2016. The second holder of the 2014 Warrants sued the Company for approximately EUR 1 million in relation to the alleged change of control which allegedly occurred in 2013. These litigations are pending. The Company will defend itself against these lawsuits and reminds that in accordance with the judgement of the Paris Commercial Court pronounced on 26 October 2015 concerning the termination of the Company’s Safeguard Plan, liabilities that were admitted to the Safeguard, but are conditional or uncalled (such as uncalled bank guarantees, conditional claims of the holders of 2014 Warrants registered under ISIN code XS0290764728, provided that they were admitted to the Safeguard plan), will be paid according to their contractual terms. Pre-Safeguard liabilities that were not admitted to the Company’s Safeguard will be unenforceable. As such, only claims of holders of the 2014 Warrants, whose potential claims were admitted to the Company’s Safeguard Plan, could be considered in respect of the present Change of Control. Claims of holders of the 2014 Warrants that were not admitted to the Company’s Safeguard will be unenforceable against the Company. To the best of Company’s knowledge, none of the holders of the 2014 Warrants who sued the Company filed their claims 2014 Warrants-related claims in the Company’s Safeguard Plan. 9 Capital and other commitments The Group has capital commitments of EUR 35.8 million and EUR 2.0 million in respect of capital expenditures contracted as at 31 December 2022 and 2021, respectively. CPI FIM SA 2022 CONSOLIDATED FINANCIAL STATEMENTS | 40 10 Related party transactions Transactions with key management personnel Total compensation given as short-term employee benefits to the top managers was EUR 0.3 million and EUR 0. 6 million in 2022 and 2021, respectively. The Board and Committees attendance compensation was EUR 36 thousand and EUR 36 thousand in 2022 and 2021. The remuneration of the key management personnel and members of Board of Directors 31 December 2022 31 December 2021 Remuneration paid to the key management personnel and members of Board of Directors 316 567 Breakdown of balances and transactions with related of the Group Majority shareholder of the Group 31 December 2022 31 December 2021 Trade receivables 116 644 Management 31 December 2022 31 December 2021 Other current payables 12 12 Advances received 435 - Transactions Other operating expenses (36 ) (27) Entities over which the majority shareholder has control 31 December 2022 31 December 2021 Trade receivables 19 14 Transactions Rental income 20 20 Other operating income 30 30 Interest income (refer below for the detail) - 261 Entities controlled by members of Board of Directors 31 December 2022 31 December 2021 Trade receivables - 1 Trade payables 67 58 Transactions Interest expense (refer below for the detail) - (1) CPI PG Group 31 December 2022 31 December 2021 Loans provided non-current (refer below for the detail) 4, 568 ,638 4,949,247 Loans provided current (refer below for the detail) 144,370 186,709 Trade receivables 1,018 276 Other current receivables 155,008 215,637 Loans received non-current (refer below for the detail) 4,628,903 5,375,377 Loans received current (refer below for the detail) 245,749 261,065 Trade payables 4,983 1,055 Other current liabilities 60 ,708 54,297 Transactions Service revenue 1,031 23,008 Advisory services (3,868) (9,095) Interest income (refer below for the detail) 209,677 209,143 Interest expense (refer below for the detail) (128,231) (163,149) Joint venture 31 December 202 2 31 December 2021 Loans provided non-current (refer below for the detail) 14,435 13,493 Loans provided current (refer below for the detail) 209 150 Transactions Interest income (refer below for the detail) 1,001 857 CPI FIM SA 2022 CONSOLIDATED FINANCIAL STATEMENTS | 41 Non -current loans provided to related parties CPI PG Group 31 December 2022 31 December 2021 1 Bishops Avenue Limited 153,371 143,284 Airport City Kft. - 14,750 Airport City Phase B Kft. - 1,914 ALIZÉ PROPERTY a.s. - 82 Andrássy Hotel Zrt. 3,620 3,884 Andrássy Real Kft. 11,857 11,986 Arena Corner Kft. - 35,317 Balvinder, a.s. 3,141 3,817 Baudry Beta, a.s. 10,475 10,526 BAYTON Alfa, a.s. 12,966 12,087 BC 99 Office Park Kft. - 33,987 Beroun Property Development, a.s. - 9,750 Best Properties South, a.s. 68,144 67,249 Brandýs Logistic, a.s. - 25,509 Brno Development Services, s.r.o. 7,662 1,415 Březiněves, a.s. 2,274 1,984 Buy-Way Dunakeszi Kft. - 4,673 Buy-Way Soroksár Kft. - 3,366 CAMPONA Shopping Center Kft. 48,053 68,566 Carpenter Invest, a.s. 2,558 2,272 CB Property Development, a.s. - 2,458 Conradian, a.s. 5,001 4,612 CPI – Bor, a.s. 24,508 12,942 CPI - Horoměřice, a.s. 52 44 CPI - Orlová, a.s. 1,354 1,167 CPI - Real Estate, a.s. 3,057 2,436 CPI Beet, a.s. 263 173 CPI Blatiny, s.r.o. (formerly CPI Tercie, s.r.o.) 3,026 - CPI BYTY, a.s. 88,037 92,207 CPI Delta, a.s. - 1,743 CPI East, s.r.o. 80,457 81,281 CPI Energo, a.s. 225 - CPI Facility Slovakia, a.s. 5,682 6,042 CPI Hotels, a.s. 22,211 24,744 CPI Hotels Properties, a.s. 18,067 16,187 CPI IMMO, S.a.r.l. 3,797 3,797 CPI Kappa, s.r.o. 858 778 CPI Národní, s.r.o. 93,983 - CPI Office Business Center, s.r.o. (formerly CPI Meteor Centre, s.r.o.) 95,470 89,775 CPI Office Prague, s.r.o. 3,414 - CPI PROPERTY GROUP S.A. 2,159,961 2,488,310 CPI Reality, a.s. 53,246 49,863 CPI Retail One Kft. 3,770 6,398 CPI Retail Portfolio Holding Kft. 24,788 26,915 CPI Retail Portfolio I, a.s. 12,869 6,437 CPI Retail Portfolio II, a.s. - 3,748 CPI Retail Portfolio IV, s.r.o. - 1,386 CPI Retail Portfolio V, s.r.o. - 3,632 CPI Retail Portfolio VI, s.r.o. - 1,478 CPI Retail Portfolio VIII s.r.o. 7,629 4,011 CPI Retails ONE, a.s. - 8,574 CPI Retails ROSA s.r.o. - 3,878 CPI Retails THREE, a.s. - 27,222 CPI Retails TWO, a.s. - 7,380 CPI Sekunda, s.r.o. 1,529 825 CPI Shopping MB, a.s. 36,717 35,011 CPI Shopping Teplice, a.s. 48,982 48,557 CPI Théta, a.s. 4,470 - CPI Vestec, s.r.o. - 5,060 CPI Žabotova, a.s. 4,108 - CPIPG Management S.à r.l. 173,084 46,352 Czech Property Investments, a.s. 421,981 428,571 Čadca Property Development, s.r.o. - 3,188 Čáslav Investments, a.s. - 2,038 EMH South, s.r.o. 6,515 7,265 ENDURANCE HOSPITALITY FINANCE S.á.r.l. 8,043 8,043 Europeum Kft. 21,759 23,394 Farhan, a.s. 50,580 53,830 FL Property Development, a.s. 200 184 CPI FIM SA 2022 CONSOLIDATED FINANCIAL STATEMENTS | 42 CPI PG Group 31 December 2022 31 December 2021 Futurum HK Shopping, s.r.o. 88,803 88,816 Gateway Office Park Kft. - 9,271 HD Investment s.r.o. 1 75 Hightech Park Kft. 3,236 3,638 Hraničář, a.s. 14,033 13,301 IGY2 CB, a.s. - 1,972 IS Nyír Ingatlanhasznosítóés Vagyonkezelo Kft. 2,650 2,627 IS Zala Ingatlanhasznosítóés Vagyonkezelo Kft. 7,250 7,987 Janáčkovo nábřeží 15, s.r.o. 6,686 7,782 Jeseník Investments, a.s. - 2,361 Kerina, a.s. 7,093 6,517 KOENIG Shopping, s.r.o. 47,402 47,566 Komárno Property Development, a.s. - 1,546 Kunratická farma, s.r.o. - 2,695 LD Praha, a.s. 4,813 4,679 Levice Property Development, a.s. - 3,376 Lockhart, a.s. 23,054 25,367 Lucemburská 46, a.s. 5,837 5,236 Marissa Omikrón, a.s. 15,886 14,604 Marissa Tau, a.s. 16,562 16,309 Marissa Théta, a.s. 388 630 Marissa West, a.s. 73,263 81,279 Marissa Ypsilon, a.s. - 36,445 MARRETIM s.r.o. 484 946 Michalovce Property Development, a.s. - 3,307 MUXUM, a.s. 7,234 6,351 Na Poříčí, a.s. 27,124 28,882 New Age Kft. 911 786 Nymburk Property Development, a.s. 1,701 1,899 OC Nová Zdaboř a.s. - 9,354 OC Spektrum, s.r.o. - 14,621 Olomouc Building, a.s. 20,928 19,626 Orchard Hotel a.s. 6,023 5,498 OZ Trmice, a.s. 423 - Ozrics Kft. 2,567 2,632 Pelhřimov Property Development, a.s. - 2,496 Platnéřská 10 s.r.o. 75 61 Pólus Shopping Center Zrt. 58,639 63,618 Považská Bystrica Property Development, a.s. - 818 Prievidza Property Development, a.s. - 2,366 Projekt Nisa, s.r.o. 81,102 78,183 Projekt Zlatý Anděl, s.r.o. 80,897 75,261 Prostějov Investments, a.s. 1,906 990 Příbor Property Development, s.r.o. - 525 Real Estate Energy Kft. 26 98 Residence Belgická, s.r.o. 1,590 1,715 Residence Izabella, Zrt. 3,528 3,385 Rezidence Jančova, s.r.o. 1,207 1,150 Rezidence Malkovského, s.r.o. 1,849 - Savile Row 1 Limited 70,365 68,000 SCP Reflets 8,653 - Spojené elektrárny, s.r.o. 207 - Statenice Property Development, a.s. 2,825 2,250 Svitavy Property Alfa, a.s. - 8,391 Tepelné hospodářství Litvínov, s.r.o. - 511 Trebišov Property Development, s.r.o. - 3,368 Třinec Investments, s.r.o. - 2,157 Třinec Property Development, a.s. 3,617 2,824 Tyršova 6, a.s. 3,419 3,607 U svatého Michala, a.s. 3,465 3,305 Uchaux Limited 3,176 905 V Team Prague, s.r.o. 158 4,683 Vigano, a.s. 12,247 10,723 ZET.office, a.s. 31,521 30,931 Ždírec Property Development, a.s. - 591 Total loans provided non-current - related parties 4,568,638 4,949,247 Joint venture Uniborc S.A. 14,435 13,493 Total 4,583,073 4,962,740 CPI FIM SA 2022 CONSOLIDATED FINANCIAL STATEMENTS | 43 Current loans provided to related parties CPI PG Group 31 December 2022 31 December 2021 Airport City Kft. - 215 Airport City Phase B Kft. - 26 ALIZÉ PROPERTY a.s. - 1 Andrássy Hotel Zrt. 69 158 Andrássy Real Kft. 229 229 Arena Corner Kft. - 622 Balvinder, a.s. 36 44 Baudry Beta, a.s. 600 1,183 BAYTON Alfa, a.s. 189 178 BC 99 Office Park Kft. - 560 Beroun Property Development, a.s. - 752 Best Properties South, a.s. 1,210 3,911 Brandýs Logistic, a.s. - 2,043 Brno Development Services, s.r.o. 181 42 Březiněves, a.s. 42 241 Buy-Way Dunakeszi Kft. - 85 Buy-Way Soroksár Kft. - 68 CAMPONA Shopping Center Kft. 1,093 5,560 Carpenter Invest, a.s. 39 36 CB Property Development, a.s. - 116 Conradian, a.s. 79 74 CPI – Bor, a.s. 524 1,058 CPI - Horoměřice, a.s. 1 - CPI - Orlová, a.s. 34 171 CPI – Real Estate, a.s. 37 29 CPI Beet, a.s. 4 3 CPI Blatiny, s.r.o. (formerly CPI Tercie, s.r.o.) 131 - CPI BYTY, a.s. 873 922 CPI Delta, a.s. - 135 CPI East, s.r.o. 1,068 2,2 73 CPI Energo, a.s. 1 - CPI Facility Slovakia, a.s. 61 127 CPI Hotels, a.s. 300 2,474 CPI Hotels Properties, a.s. 327 471 CPI IMMO, S.a.r.l. 29 238 CPI Kappa, s.r.o. 13 12 CPI Národní, s.r.o. 2,085 - CPI Office Business Center, s.r.o. (formerly CPI Meteor Centre, s.r.o.) 1,685 1,597 CPI Office Prague, s.r.o. 59 - CPI PROPERTY GROUP S.A. 107,345 91,130 CPI Reality, a.s. 896 4,702 CPI Retail One Kft. 54 87 CPI Retail Portfolio I, a.s. 202 435 CPI Retail Portfolio II, a.s. - 46 CPI Retail Portfolio IV, s.r.o. - 110 CPI Retail Portfolio V, s.r.o. - 311 CPI Retail Portfolio VI, s.r.o. - 105 CPI Retail Portfolio VIII s.r.o. 131 428 CPI RETAIL PORTFOLIO HOLDING Kft. 1,033 665 CPI Retails ONE, a.s. - 897 CPI Retails Rosa s.r.o. - 358 CPI Retails THREE, a.s. - 2,486 CPI Retails TWO, a.s. - 636 CPI Sekunda, s.r.o. 27 12 CPI Shopping MB, a.s. 504 2,612 CPI Shopping Teplice, a.s. 806 1,699 CPI Théta, a.s. 141 - CPI Vestec, s.r.o. - 467 CPI Žabotova, a.s. 104 - CPIPG Management S.à r.l. 4,287 - Czech Property Investments, a.s. 5,215 13,128 Čadca Property Development, s.r.o. - 251 Čáslav Investments, a.s. - 194 EMH South, s.r.o. 116 520 Europeum Kft. 430 1,654 Farhan, a.s. 915 3,859 FL Property Development, a.s. 3 21 Futurum HK Shopping, s.r.o. 1,435 3,103 Gateway Office Park Kft. - 149 CPI FIM SA 2022 CONSOLIDATED FINANCIAL STATEMENTS | 44 CPI PG Group 31 December 2022 31 December 2021 Hightech Park Kft. 54 62 Hospitality Invest S.a r.l. 84 51 Hraničář, a.s. 193 185 IGY2 CB, a.s. - 105 IS Nyír Kft. 56 42 IS Zala Kft. 160 178 Janáčkovo nábřeží 15, s.r.o. 79 104 Jeseník Investments, a.s. - 213 Kerina, a.s. 79 72 KOENIG Shopping s.r.o. 793 2,364 Komárno Property Development, a.s. - 117 Kunratická farma, s.r.o. - 11 LD Praha, a.s. 45 44 Levice Property Development, a.s. - 311 Lockhart, a.s. 318 354 Lucemburská 46, a.s. 43 37 Marissa Omikrón, a.s. 247 1,423 Marissa Tau, a.s. 266 268 Marissa Théta, a.s. 3 5 Marissa West, a.s. 1,325 2,911 Marissa Ypsilon, a.s. - 3,186 MARRETIM s.r.o. 8 15 Michalovce Property Development, a.s. - 335 MUXUM, a.s. 83 74 Na Poříčí, a.s. 488 2,109 New Age Kft. 14 39 Nymburk Property Development, a.s. 23 36 OC Nová Zdaboř a.s. - 739 OC Spektrum, s.r.o. - 805 Olomouc Building, a.s. 384 364 Orchard Hotel a.s. 107 98 OZ Trmice, a.s. 9 - Ozrics, Kft. 44 99 Pelhřimov Property Development, a.s. - 280 Platnéřská 10 s.r.o. 1 1 Pólus Shopping Center Zrt. 1,273 2,400 Považská Bystrica Property Development, a.s. - 77 Prievidza Property Development, a.s. - 176 Projekt Nisa, s.r.o. 1,292 2,753 Projekt Zlatý Anděl, s.r.o. 1,059 5,601 Prostějov Investments, a.s. 24 17 Příbor Property Development, s.r.o. - 41 Real Estate Energy Kft. - 2 Residence Belgická, s.r.o. 19 20 Residence Izabella, Zrt. 75 74 Rezidence Jančova, s.r.o. 34 36 Rezidence Malkovského, s.r.o. 39 - SCP Reflets 56 - Statek Kravaře, a.s. - 295 Statenice Property Development, a.s. 40 286 Svitavy Property Alfa, a.s. - 781 Tepelné hospodářství Litvínov, s.r.o. - 5 Trebišov Property Development, s. r. o. - 43 Třinec Investments, s.r.o. - 187 Třinec Property Development, a.s. 92 51 Tyršova 6, a.s. 25 26 U svatého Michala, a.s. 44 227 V Team Prague, s.r.o. 3 73 Vigano, a.s. 184 166 ZET.office, a.s. 562 538 Ždírec Property Development, a.s. - 78 Total loans provided current - related parties 144,370 186,709 Joint venture Uniborc S.A. 209 150 Total 144,579 186,859 Other current receivables (Deposits) CPI PG Group 31 December 2022 31 December 2021 CPI Reality, a.s. - 9,500 CPI Retail Portfolio I, a.s. - 10,000 CPI Retails ONE, a.s. - 9,800 CPI FIM SA 2022 CONSOLIDATED FINANCIAL STATEMENTS | 45 CPI PG Group 31 December 2022 31 December 2021 CPI Retails TWO, a.s. - 10,300 CPI Shopping MB, a.s. - 9,800 CPI Shopping Teplice, a.s. - 9,700 Czech Property Ivestments, a.s. - 10,000 Na Poříčí, a.s. - 10,500 Projekt Nisa, s.r.o. - 9,700 Total - 89,300 Other current receivables (Cash pool) CPI PG Group 31 December 2022 31 December 2021 Andrassy Hotel Zrt. 70 - Balvinder, a.s. - 555 Baudry Beta, a.s. 193 192 BAYTON Alfa, a.s. 446 739 Beroun Property Development, a.s. - 78 Best Properties South, a.s. 5,635 2,471 Brandýs Logistic, a.s. - 4,410 Brno Development Services, s.r.o. 1,707 599 BRNO INN, a.s. 7 83 Březiněves, a.s. 6 148 CAMPONA Shopping Center Kft. 129 - CPI - Bor, a.s. 1,466 726 CPI - Real Estate, a.s. - 454 CPI - Zbraslav, a.s. - 151 CPI Beet, a.s. 32 18 CPI BYTY, a.s. 18 20 CPI Delta, a.s. - 11 CPI East, s.r.o. 192 298 CPI Energo, a.s. - 3 CPI Facility Management Kft. 6 - CPI Finance CEE, a.s. - 1 CPI Hotels Properties, a.s. 38 312 CPI Hungary Kft. 202 - CPI Kappa, s.r.o. 67 - CPI Management, s.r.o. 2,839 1,192 CPI Office Business Center, s.r.o. (formerly CPI Meteor Centre, s.r.o.) 211 621 CPI Office Prague, s.r.o. 633 1,670 CPI Poland Property Management sp. z o.o. 439 - CPI Poland Sp. z o.o. 1,963 - CPI PROPERTY GROUP S.A. 991 614 CPI Retail Portfolio I, a.s. 17 385 CPI Retail Portfolio II, a.s. - 63 CPI Retail Portfolio VI, a.s. - 10 CPI Retail Portfolio VIII, a.s. - 22 CPI Retails ONE, a.s. 68 60 CPI Retails TWO, a.s. - 54 CPI Services, a.s. 12,644 720 CPI Shopping MB, a.s. - 131 CPI Shopping Teplice, a.s. - 153 CPI Vestec, s.r.o. - 102 CPI Žabotova, a.s. 162 - CPIPG Management S.à r.l. 246 230 Czech Property Investments, a.s. 878 584 Čáslav Investments, a.s. - 12 Diana Development sp. z o.o. 13 - EMH South, s.r.o. 636 45 ENDURANCE HOSPITALITY ASSET S.à r.l. 6 3 ENDURANCE HOSPITALITY FINANCE S.à r.l. 6 3 Equator Real sp. z o.o. 321 - Europeum Kft. 242 - Farhan, a.s. 6,932 606 FL Property Development, a.s. 6 - Futurum HK Shopping, s.r.o. 5 165 Gadwall, Sp. z o.o. 2 - GCA Property Development sp. z o.o. 4 - Hospitality invest S.à r.l. 13 3 HOTEL U PARKU, s.r.o. 6 108 Hraničář, a.s. 5 377 IS Nyír Kft. 1 - IS Zala Kft. 135 - Janáčkovo nábřeží 15, s.r.o. 402 731 CPI FIM SA 2022 CONSOLIDATED FINANCIAL STATEMENTS | 46 CPI PG Group 31 December 2022 31 December 2021 Jeseník Investments, a.s. - 4 Kerina, a.s. - 320 KOENIG Shopping, s.r.o. 3 133 LD Praha, a.s. - 118 Le Regina Warsaw Sp. z o.o. 2 - Lockhart, a.s. - 749 Lucemburská 46, a.s. - 630 Marissa Omikrón, a.s. - 20 Marissa Théta, a.s. - 107 Marissa West, a.s. 5,625 27 Marissa Ypsilon, a.s. - 97 MMR RUSSIA S.à r.l. 15 6 Moniuszki Office sp. z o.o. 23 - MUXUM, a.s. 30 571 Na Poříčí, a.s. 3,265 - New Age Kft. 69 - Nymburk Property Development, a.s. - 111 OC Nová Zdaboř a.s. - 74 OC Spektrum, s.r.o. - 1,069 Olomouc Building, a.s. 8 784 Orchard Hotel a.s. - 248 Oxford Tower sp. z o.o. 4,347 - Ozrics Kft. 80 - Pelhřimov Property Development, a.s. - 11 Platnéřská 10 s.r.o. 3 3 Projekt Nisa, s.r.o. 160 426 Projekt Zlatý Anděl, s.r.o. 233 414 Prosta 69 Sp. z o.o. 467 - Příbor Property Development, s. r.o. - 37 Residence Belgická, s.r.o. - 170 Residence Izabella Zrt. 83 - Svitavy Property Alfa, a.s. - 58 Tepelné hospodářství Litvínov s.r.o. 273 12 Třinec Investments, s.r.o. - 15 Třinec Property Development, a.s. 3 248 Tyršova 6, a.s. 3 2 U svatého Michala, a.s. 27 - V Team Prague, s.r.o. 1,594 1,829 ZET.office, a.s. 629 482 Ždírec Property Development, a.s. - 3 Total 56,982 28,711 Non-current financial debts received from related parties CPI PG Group 31 December 2022 31 December 2021 BPT Development, a.s. 80 - Brno Property Development, a.s. 23,989 - Byty Lehovec, s.r.o. 1,319 - CPI - Zbraslav, a.s. 546 - CPI Finance CEE, a.s. 73 - CPI Green, a.s. 83 - CPI PROPERTY GROUP S.A. 4,068,068 5,075,824 Czech Property Investments, a.s. 9,577 - Gebauer Höfe Liegenschaften GmbH 23,898 - Gewerbesiedlungs-Gessellschaft mbH 75,433 - GSG Asset GmbH & Co. Verwaltungs KG 4,073 4,013 GSG Berlin Invest GmbH 34,416 - GSG Gewerbehöfe Berlin 1. GmbH & Co. KG 22,169 13,141 GSG Gewerbehöfe Berlin 2. GmbH & Co. KG 22,981 19,963 GSG Gewerbehöfe Berlin 3. GmbH & Co. KG 75,815 30,095 GSG Gewerbehöfe Berlin 4. GmbH & Co. KG 31,416 19,662 GSG Gewerbehöfe Berlin 5. GmbH & Co. KG 59,862 34,709 HOTEL U PARKU, s.r.o. 507 - Jetřichovice Property, a.s. 239 - PROJECT FIRST a.s. 5,080 - ST Project Limited 169,110 177,970 Tachov Investments, s.r.o. 169 - Total 4,628,903 5,375,377 CPI FIM SA 2022 CONSOLIDATED FINANCIAL STATEMENTS | 47 Current financial debts received from related parties CPI PG Group 31 December 2022 31 December 2021 BAYTON Gama, a.s. 3 8 BPT Development, a.s. 1 87 BRNO INN, a.s. 2,913 3,168 Brno Property Development, a.s. 181 25,119 Byty Lehovec, s.r.o. 14 5,053 CPI - Zbraslav, a.s. 14 524 CPI Facility Management Kft. 461 - CPI Finance CEE, a.s. 1 73 CPI Flats, a.s. 10 686 CPI Green, a.s. 3 82 CPI Hungary Investments Kft. 5,749 3,044 CPI Hungary Kft. 717 963 CPI Kvarta, s.r.o. - 1 CPI Kvinta, s.r.o. - 2 CPI Národní, s.r.o. - 33,508 CPI Office Prague, s.r.o. - 256 CPI PROPERTY GROUP S.A. 230,035 97,924 CPI Sekunda, s.r.o. - 2 CPI Tercie, s.r.o. - 1 CPI Th éta, a.s. - 82 Czech Property Investments, a.s. 1,079 82,214 Gebauer Höfe Liegenschaften GmbH 220 - Gewerbesiedlungs-Gessellschaft mbH 695 - GSG Asset GmbH & Co. Verwaltungs KG 61 60 GSG Berlin Invest GmbH 317 - GSG Gewerbehöfe Berlin 1. GmbH & Co. KG 299 197 GSG Gewerbehöfe Berlin 2. GmbH & Co. KG 329 299 GSG Gewerbehöfe Berlin 3. GmbH & Co. KG 910 451 GSG Gewerbehöfe Berlin 4. GmbH & Co. KG 415 295 GSG Gewerbehöfe Berlin 5. GmbH & Co. KG 786 521 HOTEL U PARKU, s.r.o. 4 637 Jetřichovice Property, a.s. 2 257 PROJECT FIRST, a.s. 38 4,941 Rezidence Malkovského, s.r.o. - 518 Tachov Investments, s.r.o. 5 57 Telč Property Development, a.s. 47 35 Tepelné hospodářství Litvínov s.r.o. 440 - Total 245,749 261,065 Other current liabilities (Cash pool) CPI PG Group 31 December 2022 31 December 2021 Andrassy Hotel Zrt. 242 - Atrium Complex sp. z o.o. 251 - Balvinder, a.s. 34 2 Baudry Beta, a.s. 150 389 Beroun Property Development, a.s. - 114 Best Properties South, a.s. - 24 Brandýs Logistic, a.s. - 859 BRNO INN, a.s. 204 8 Březiněves, a.s. 566 - CAMPONA Shopping Center Kft. 81 - Central Tower 81 sp. z o.o. 160 1 City Gardens Sp. z o.o. 492 66 CPI - Bor, a.s. 419 75 CPI - Real Estate, a.s. 108 17 CPI - Zbraslav, a.s. 58 - CPI BYTY, a.s. 3,159 3,723 CPI Delta, a.s. - 53 CPI East, s.r.o. 2,769 2,010 CPI Energo, a.s. 434 219 CPI Facility Management Kft. 38 - CPI Facility Slovakia, a.s. 165 - CPI Hotels Properties, a.s. 1 19 CPI Hungary Investments Kft. 820 - CPI Hungary Kft. 215 - CPI Management, s.r.o. 888 318 CPI Národní, s.r.o. 2,165 3,500 CPI Office Business Center, s.r.o. (formerly CPI Meteor Centre, s.r.o.) 704 462 CPI Office Prague, s.r.o. 257 1,478 CPI FIM SA 2022 CONSOLIDATED FINANCIAL STATEMENTS | 48 CPI PG Group 31 December 2022 31 December 2021 CPI Poland Property Management sp. z o.o. 775 - CPI Poland Sp. z o.o. 2,860 - CPI Property Group S.A. 853 - CPI Reality, a.s. 1,460 562 CPI Retail Portfolio I, a.s. 329 - CPI Retail Portfolio II, a.s. - 42 CPI Retail Portfolio IV, a.s. - 82 CPI Retail Portfolio V, a.s. - 443 CPI Retail Portfolio VI, a.s. - 77 CPI Retail Portfolio VIII s.r.o. 212 105 CPI Retails ONE, a.s. - 189 CPI Retails Rosa s.r.o. - 76 CPI Retails THREE, a.s. - 735 CPI Retails TWO, a.s. - 214 CPI Services, a.s. - 3,645 CPI Shopping MB, a.s. 803 708 CPI Shopping Teplice, a.s. 1,058 560 CPI Vestec, s.r.o. - 24 CT Development sp. z o.o. 94 - Czech Property Investments, a.s. 2,162 1 Čadca Property Development, s.r.o. - 99 Čáslav Investments, a.s. - 44 EMH South, s.r.o. - 162 Equator Real sp. z o.o. 56 - Europeum Kft. 1,210 - Farhan, a.s. 2,192 813 FL Property Development, a.s. - 2 Futurum HK Shopping, s.r.o. 1,795 1,523 Gadwall, Sp. z o.o. 74 - GCA Property Development sp. z o.o. 353 - Hightech Park Kft. 32 - HOTEL U PARKU, s.r.o. - 7 Hraničář, a.s. 60 - IS Nyír Kft. 217 - IS Zala Kft. 323 - Janáčkovo nábřeží 15, s.r.o. - 15 Jeseník Investments, a.s. - 64 Kerina, a.s. 164 - KOENIG Shopping, s.r.o. 1,022 1,233 Komárno Property Development, a.s. - 73 LD Praha, a.s. 118 3 Le Regina Warsaw Sp. z o.o. 167 - Levice Property Development, a.s. - 103 Lockhart, a.s. 21 25 Lucemburská 46, a.s. 303 23 Marissa Omikrón, a.s. 313 148 Marissa Tau, a.s. 423 - Marissa Théta, a.s. 30 2 Marissa West, a.s. 174 570 Marissa Ypsilon, a.s. - 261 MARRETIM s.r.o. 16 - Michalovce Property Development, a.s. - 62 Moniuszki Office sp. z o.o. 72 - MUXUM, a.s. - 21 Na Poříčí, a.s. 238 413 Nymburk Property Development, a.s. 426 440 OC Nová Zdaboř a.s. - 320 OC Spektrum, s.r.o. - 228 Olomouc Building, a.s. 38 - Orchard Hotel a.s. 15 4 OZ Trmice, a.s. 9 - Ozrics Kft. 4 - Pelhřimov Property Development, a.s. - 36 Považská Bystrica Property Development, a.s. - 74 Pólus Shopping Center Zrt. 951 - Prievidza Property Development, a.s. - 31 Projekt Nisa, s.r.o. 1,446 1,326 Projekt Zlatý Anděl, s.r.o. 1,610 1,675 Prosta 69 Sp. z o.o. 100 - Real Estate Energy Kft. 6,057 - Residence Belgická, s.r.o. 16 9 CPI FIM SA 2022 CONSOLIDATED FINANCIAL STATEMENTS | 49 CPI PG Group 31 December 2022 31 December 2021 Residence Izabella Zrt. 228 - Svitavy Property Alfa, a.s. - 204 Tepelné hospodářství Litvínov s.r.o. - 1 Trebišov Property Development, s. r. o. - 146 Třinec Investments, s.r.o. - 81 Třinec Property Development, a.s. 134 - Tyršova 6, a.s. 159 98 U svatého Michala, a.s. - 19 V Team Prague, s.r.o. 19 381 ZET.office, a.s. 579 357 Ždírec Property Development, a.s. - 19 Total 46,150 31,915 Interest income from related parties CPI PG Group 2022 2021 1 Bishops Avenue Limited 5,867 5,295 AIRPORT CITY Kft. 64 888 Airport City Phase B Kft. 10 93 ALIZÉ PROPERTY a.s. 3 2 Andrássy Hotel Zrt. 288 332 Andrássy Real Kft. 931 843 Arena Corner Kft. 2,019 2,475 Balvinder, a.s. 159 185 BARON PUGLIA S.a.r.l. - 150 Baudry Beta, a.s. 810 737 BAYTON Alfa, a.s. 745 711 BC 91 Real Estate Kft. - 64 BC 99 Office Park Kft. 1,720 2,212 Beroun Property Development, a.s. 533 595 Best Properties South, a.s. 4,823 3,836 Brandýs Logistic, a.s. 326 1,468 Brno Development Services, s.r.o. 275 25 BRNO INN, a.s. 1 1 Březiněves, a.s. 161 154 Bubenská 1, a.s. merged with CPI Office Business Center, s.r.o. - 1,733 CAMPONA Shopping Center Kft. 4,826 7,262 Carpenter Invest, a.s. 147 134 CB Property Development, a.s. 48 170 City Gardens Sp. z o.o. 1 - City Market Dunakeszi Kft. (formerly Buy-Way Dunakeszi Kft.) 220 372 City Market Soroksár Kft. (formerly Buy-Way Soroksár Kft.) 178 280 Conradian, a.s. 304 322 CPI – Bor, a.s. 1,545 736 CPI - Horoměřice, a.s. 3 - CPI - Orlová, a.s. 109 79 CPI - Real Estate, a.s. 145 112 CPI - Zbraslav, a.s. - 1 CPI Beet, a.s. 15 18 CPI Blatiny, s.r.o. (formerly CPI Tercie, s.r.o.) 229 1 CPI BYTY, a.s. 4,076 3,718 CPI Delta, a.s. 56 105 CPI East, s.r.o. 4,304 4,461 CPI Energo, a.s. 1 - CPI Facility Management Kft. 7 - CPI Facility Slovakia, a.s. 159 127 CPI Hotels, a.s. 1,241 1,864 CPI Hotels Europeum Kft. - 34 CPI Hotels Properties, a.s. 1,274 758 CPI Hungary Investments Kft. 4 - CPI Hungary Kft. 25 - CPI IMMO, S.a.r.l. 57 57 CPI Jihlava Shopping, a.s. - 948 CPI Kappa, s.r.o. 53 46 CPI Management, s.r.o. 170 9 CPI Národní, s.r.o. 2,870 9 CPI Office Business Center, s.r.o. (formerly CPI Meteor Centre, s.r.o.) 6,606 2,324 CPI Office Prague, s.r.o. 246 10 CPI Palmovka Office, s.r.o. merged with CPI Office Business Center, s.r.o. - 65 CPI Poland Property Management sp. z o.o. 3 - CPI Poland Sp. z o.o. 11 - CPI PROPERTY GROUP S.A. 62,739 56,700 CPI FIM SA 2022 CONSOLIDATED FINANCIAL STATEMENTS | 50 CPI PG Group 2022 2021 CPI Reality, a.s. 3,513 3,684 CPI Retail MB s.r.o. (merged with Nymburk Property Development, a.s.) - 24 CPI Retail One Kft. 276 575 CPI Retail Portfolio Holding Kft. 704 841 CPI Retail Portfolio I, a.s. 524 365 CPI Retail Portfolio II, a.s. 170 66 CPI Retail Portfolio IV, s.r.o. 63 90 CPI Retail Portfolio V, s.r.o. (merged with CPI Retail Portfolio I, a.s.) 171 238 CPI Retail Portfolio VI, s.r.o. (merged with CPI Retail Portfolio I, a.s.) 97 82 CPI Retail Portfolio VIII s.r.o. 416 294 CPI Retails ONE, a.s. 455 616 CPI Retails ROSA s.r.o. 185 259 CPI Retails THREE, a.s. 1,197 1,801 CPI Retails TWO, a.s. 378 496 CPI Sekunda, s.r.o. 64 24 CPI Services, a.s. 202 29 CPI Shopping MB, a.s. 2,044 2,174 CPI Shopping Teplice, a.s. 3,265 3,479 CPI Théta, a.s. 239 - CPI Žabotova, a.s. 336 - CPIPG Management S.à r.l. 4,400 2 Czech Property Investments, a.s. 20,965 28,234 Čadca Property Development, s.r.o. 83 228 Čáslav Investments, a.s. (merged with CPI Retails TWO) 107 150 Diana Development sp. z o.o. 1 - Duca Puglia S.r.l. - 127 EMH South, s.r.o. 478 507 Equator Real sp. z o.o. 26 - Europeum Kft. 1,765 1,867 Farhan, a.s. 3,759 3,778 FL Property Development, a.s. 12 11 Futurum HK Shopping, s.r.o. 5,851 6,044 FVE CHZ s.r.o. 6 - Gateway Office Park Kft. 383 674 HD Investment s.r.o. 3 4 HECF Vestec 2 s.r.o. (formerly CPI Vestec, s.r.o.) 66 359 Hightech Park Kft. 223 246 Hospitality Invest S. a r.l. 1 - HOTEL U PARKU, s.r.o. 1 - Hraničář, a.s. 761 717 IGY2 CB, a.s. 29 159 IS Nyír Ingatlanhasznosítóés Vagyonkezelo Kft. 212 133 IS Zala Ingatlanhasznosítóés Vagyonkezelo Kft. 661 724 Janáčkovo nábřeží 15, s.r.o. 469 402 Jeseník Investments, a.s. (merged with CPI Retails TWO) 122 160 Kerina, a.s. 309 276 KOENIG Shopping, s.r.o. 3,222 3,392 Komárno Property Development, a.s. 51 82 Kosmonosy Property Development, s.r.o. - 251 Kunratická farma, s.r.o. 39 11 LD Praha, a.s. 180 174 Le Regina Warsaw Sp. z o.o. 1 - Levice Property Development, a.s. 149 220 Lockhart, a.s. 1,313 1,473 Lucemburská 46, a.s. 172 147 Marissa Gama, a.s. - 2,507 Marissa Omikrón, a.s. 980 940 Marissa Tau, a.s. 1,059 893 Marissa Théta, a.s. 17 30 Marissa West, a.s. 5,437 2,843 Marissa Yellow, a.s. - 536 Marissa Ypsilon, a.s. 1,423 2,485 MARRETIM s.r.o. 49 37 MB Property Development, a.s. (merged with Nymburk Property Development, a.s.) - 3 Michalovce Property Development, a.s. 84 203 MUXUM, a.s. 327 280 Na Poříčí, a.s. 1,987 2,056 New Age Kft. 57 54 Nymburk Property Development, a.s. 106 107 OC Nová Zdaboř a.s. (merged with CPI Retails ONE) 422 583 OC Spektrum, s.r.o. 778 1,046 CPI FIM SA 2022 CONSOLIDATED FINANCIAL STATEMENTS | 51 CPI PG Group 2022 2021 OFFICE CENTER HRADČANSKÁ, a.s. merged with CPI Office Business Center, s.r.o. - 647 Olomouc Building, a.s. 1,510 1,371 Orchard Hotel a.s. 417 397 Outlet Arena Moravia, s.r.o. - 1 Oxford Tower sp. z o.o. 107 - OZ Trmice, a.s. 17 - Ozrics, Kft. 177 198 Pelhřimov Property Development, a.s. 134 180 Platnéřská 10 s.r.o. 5 8 Pólus Shopping Center Zrt. 5,131 5,633 Považská Bystrica Property Development, a.s. 20 48 Prievidza Property Development, a.s. 78 126 Projekt Nisa, s.r.o. 5,301 5,427 Projekt Zlatý Anděl, s.r.o. 4,271 4,339 Prosta 69 Sp. z o.o. 20 - Prostějov Investments, a.s. 86 53 Příbor Property Development, s.r.o. (merged with CPI Retail Portfolio VIII s.r.o.) 18 34 Real Estate Energy Kft. 4 5 Residence Belgická, s.r.o. 78 78 Residence Izabella, Zrt. 300 334 Rezidence Jančova, s.r.o. 128 132 Rezidence Malkovského, s.r.o. 58 37 Savile Row 1 Limited 3,746 2,915 SCP Reflets 165 - Spojené elektrárny, s.r.o. 1 - Statek Kravaře, a.s. - 140 Statenice Property Development, a.s. 144 129 Svitavy Property Alfa, a.s. (merged with CPI Retails TWO) 434 602 Tepelné hospodářství Litvínov, s.r.o. 8 19 Trebišov Property Development, s.r.o. 85 123 Třinec Investments, s.r.o. (merged with CPI Retails TWO) 99 146 Třinec Property Development, a.s. 292 214 Tyršova 6, a.s. 100 98 U svatého Michala, a.s. 178 180 Uchaux Limited 75 31 V Team Prague, s.r.o. 242 352 Vigano, a.s. 694 632 ZET.office, a.s. 2,281 1,658 Ždírec Property Development, a.s. 21 43 Total interest income - related parties 209,677 209,143 Entities over which the majority shareholder has control GAMALA LIMITED - 261 Joint venture Uniborc S.A. 1,001 857 Total 210,678 210,261 Interest expense from related parties CPI PG Group 2022 2021 Andrassy Hotel Zrt. 1 - Andrássy Real Kft. 2 - Arena Corner Kft. 4 - Atrium Complex sp. z o.o. 40 - Balvinder, a.s. 1 - Baudry Beta, a.s. 6 4 BAYTON Alfa, a.s. 5 - BAYTON Gama, a.s. - 55 BC 99 Office Park Kft. 5 - Beroun Property Development, a.s. 8 3 Best Properties South, a.s. 24 - BPT Development, a.s. 3 10 Brandýs Logistic, a.s. 1 10 Brno Development Services, s.r.o. 23 4 BRNO INN, a.s. 102 93 Brno Property Development, a.s. 708 672 Březiněves, a.s. 8 12 Bubenská 1, a.s. merged with CPI Office Business Center, s.r.o. - 1 Byty Lehovec, s.r.o. 81 130 CAMPONA Shopping Center Kft. 3 - CB Property Development, a.s. - 10 Central Tower 81 sp. z o.o. 17 - City Gardens Sp. z o.o. 60 - CPI FIM SA 2022 CONSOLIDATED FINANCIAL STATEMENTS | 52 CPI PG Group 2022 2021 City Market Dunakeszi Kft. (formerly Buy-Way Dunakeszi Kft.) 2 - City Market Soroksár Kft. (formerly Buy-Way Soroksár Kft.) 1 - CPI - Bor, a.s. 8 1 CPI – Horoměřice, a.s. - 2 CPI - Real Estate, a.s. 3 - CPI - Zbraslav, a.s. 16 65 CPI BYTY, a.s. 617 127 CPI Delta, a.s. (merged with CPI Retail Portfolio VIII s.r.o.) 2 1 CPI East, s.r.o. 58 27 CPI Energo, a.s. 25 10 CPI Facility Management Kft. 7 - CPI Facility Slovakia, a.s. 1 - CPI Finance CEE, a.s. 3 3 CPI Flats, a.s. 18 110 CPI Green, a.s. 2 2 CPI Hotels Properties, a.s. 2 - CPI Hungary Kft. 40 26 CPI Hungary Investments Kft. 55 27 CPI Jihlava Shopping, a.s. - 17 CPI Management, s.r.o. 15 5 CPI Národní, s.r.o. 713 1,042 CPI Office Business Center, s.r.o. 29 11 CPI Office Prague, s.r.o. 19 29 CPI Omikrón, a.s. - 2 CPI Palmovka Office, s.r.o. merged with CPI Office Business Center, s.r.o. - 1 CPI Poland Property Management sp. z o.o. 23 - CPI Poland Sp. z o.o. 90 - CPI Property a Facility, s.r.o. (merged with CPI Services, a.s.) - 2 CPI PROPERTY GROUP S.A. 117,608 157,429 CPI Reality, a.s. 56 16 CPI Retail Portfolio I, a.s. 16 1 CPI Retail Portfolio II, a.s. 5 5 CPI Retail Portfolio IV, a.s. 3 1 CPI Retail Portfolio V, a.s. 1 3 CPI Retail Portfolio VI, a.s. 5 1 CPI Retail Portfolio VIII, a.s. 9 2 CPI Retails ONE, a.s. 6 3 CPI Retails Rosa s.r.o. 1 2 CPI Retails TWO, a.s. 8 3 CPI Retails THREE, a.s. 7 13 CPI Services, a.s. 19 37 CPI Shopping MB, a.s. 19 9 CPI Shopping Teplice, a.s. 22 8 CPI Théta, a.s. 1 2 CPI Vestec, s.r.o. - 2 CPI Žabotova, a.s. 1 - CPIPG Management S.à r.l. 6 - CT Development sp. z o.o. 5 - Czech Property Investments, a.s. 2,630 808 Čadca Property Development, s.r.o. 2 2 Čáslav Investments, a.s. 2 1 Diana Development sp. z o.o. 4 - EMH South, s.r.o. 26 6 Equator II Development sp. z o.o. 20 - Equator Real sp. z o.o. 2 - Europeum Kft. 7 - Farhan, a.s. 15 10 Futurum HK Shopping, s.r.o. 113 23 Gadwall, Sp. z o.o. 13 - Gateway Office Park Kft. 6 - GCA Property Development sp. z o.o. 30 - Gebauer Höfe Liegenschaften GmbH 220 - Gewerbesiedlungs-Gessellschaft mbH 695 - GSG Asset GmbH & Co. Verwaltungs KG 61 60 GSG Berlin Invest GmbH 317 - GSG Gewerbehöfe Berlin 1. GmbH & Co. KG 299 197 GSG Gewerbehöfe Berlin 2. GmbH & Co. KG 329 299 GSG Gewerbehöfe Berlin 3. GmbH & Co. KG 910 451 GSG Gewerbehöfe Berlin 4. GmbH & Co. KG 415 295 GSG Gewerbehöfe Berlin 5. GmbH & Co. KG 786 521 Hightech Park Kft. 1 - CPI FIM SA 2022 CONSOLIDATED FINANCIAL STATEMENTS | 53 CPI PG Group 2022 2021 HOTEL U PARKU, s.r.o. 16 19 Hraničář, a.s. 6 1 IGY2 CB, a.s. - 4 IS Nyír Kft. 3 - IS Zala Kft. 2 - Janáčkovo nábřeží 15, s.r.o. 2 - Jeseník Investments, a.s. 2 1 Jetřichovice Property, a.s. 8 7 Kerina, a.s. 5 - KOENIG Shopping, s.r.o. 68 16 Komárno Property Development, a.s. 1 2 Kosmonosy Property Development, s.r.o. - 3 LD Praha, a.s. 5 - Le Regina Warsaw Sp. z o.o. 3 - Levice Property Development, a.s. 1 1 Lockhart, a.s. 8 - Lucemburská 46, a.s. 12 - Marissa Gama, a.s. - 13 Marissa Omikrón, a.s. 13 3 Marissa Tau, a.s. 10 - Marissa West, a.s. 63 22 Marissa Ypsilon, a.s. 11 10 MARRETIM s.r.o. 1 - MB Property Development, a.s. (merged with Nymburk Property Development, a.s.) - 4 Michalovce Property Development, a.s. 1 1 Moniuszki Office sp. z o.o. 14 - MUXUM, a.s. 1 - Na Poříčí, a.s. 35 11 Nymburk Property Development, a.s. 27 101 OC Nová Zdaboř a.s. (merged with CPI Retails ONE) 11 3 OC Spektrum, s.r.o. 6 2 OFFICE CENTER HRADČANSKÁ, a.s. merged with CPI Office Business Center, s.r.o. - 3 Olomouc Building, a.s. 13 1 Orchard Hotel a.s. 2 - Oxford Tower sp. z o.o. 15 - Pelhřimov Property Development, a.s. 2 1 Považská Bystrica Property Development, a.s. - 1 Pólus Shopping Center Zrt. 6 - Prievidza Property Development, a.s. - 1 PROJECT FIRST a.s. 150 144 Projekt Nisa, s.r.o. 18 10 Projekt Zlatý Anděl, s.r.o. 20 14 Prosta 69 Sp. z o.o. 4 - Příbor Property Development, s. r.o. (merged with CPI Retail Portfolio VIII s.r.o.) 1 - Radom Property Development sp. z o.o. 1 - Real Estate Energy Kft. 15 - Rembertów Property Development sp. z o.o. 2 - Residence Belgická, s.r.o. 1 - Residence Izabella Zrt. 1 - Rezidence Malkovského, s.r.o. 5 3 Svitavy Property Alfa, a.s. 8 4 Tachov Investments, s.r.o. 5 1 Telč Property Development, a.s. 1 1 Tepelné hospodářství Litvínov s.r.o. 32 4 Trebišov Property Development, s. r. o. 2 1 Třinec Investments, s.r.o. (merged with CPI Retails TWO) 3 1 Třinec Property Development, a.s. 2 2 Tyršova 6, a.s. 8 1 U svatého Michala, a.s. 1 - V Team Prague, s.r.o. 5 1 Zamość Property Development sp. z o.o. 3 - Zamość Sadowa Property Development sp. z o.o. 4 - ZET.office, a.s. (formerly CPI Orange, a.s.) 13 7 Zgorzelec Property Development sp. z o.o. 1 - Total interest expense - related parties 128,231 163,149 Entities controlled by members of Board of Directors CPI Yellow, a.s. - 1 Total 128,231 163,150 Sale of Reflets In 2022, the Group sold its subsidiary SCP Reflets for EUR 1 to its parent company CPI Property Group . CPI FIM SA 2022 CONSOLIDATED FINANCIAL STATEMENTS | 54 Sale of investment property In 2021, the Group sold office building in Brno, Czech Republic to its related party ZET.office, a.s. for EUR 39.3 million . Sale of subsidiaries On 1 April 2021, the Group sold subsidiary Bubenská 1, a.s. to its related party CPI, a.s. for EUR 17.2 million. 11 Events after the reporting period On 1 March 2023, the Company acquired two new subsidiaries VITEK FAMILY TRUST MVI 2 and VITEK FAMILY TRUST KVI 2 from the majority shareholder of the Group for EUR 164 thousand. CPI FIM SA 2022 CONSOLIDATED FINANCIAL STATEMENTS | 55 Appendix I – List of group entities Entities fully consolidated Company Country 31 December 2022 31 December 2021 Brno Property Invest XV., a.s. ( Svitavy Property Development, a.s) Czech Republic 100.00% 100.00% Bubny Development, s.r.o. Czech Republic 20.00% 20.00% BYTY PODKOVA, a.s. Czech Republic 100.00% 100.00% Camuzzi, a.s. Czech Republic 100.00% 100.00% Castor Investments sp. z o.o. Poland 100.00% 100.00% Castor Investments sp. z o.o. S.K.A. Poland 100.00% 100.00% CD Property s.r.o. Czech Republic 100.00% 100.00% CPI - Krásné Březno, a.s. Czech Republic 100.00% 100.00% CPI - Land Development, a.s. Czech Republic 100.00% 100.00% CPI ACAYA S.r.l. Italy 100.00% 100.00% CPI Italy 130 SPV S.r.l. Italy 100.00% 100.00% CPI Park Chabařovice, s.r.o. Czech Republic 100.00% - CPI Park Plzeň, s.r.o. Czech Republic 100.00% - CPI Park Žďárek, a.s. Czech Republic 100.00% 99.98% CPI Pigna S.r.l. Italy 100.00% 100.00% CPI Podhorský Park, s.r.o. Czech Republic 100.00% - CPI REV Italy II S.r.l. Italy 100.00% 100.00% CPI South, s.r.o. Czech Republic 90.00% 90.00% Darilia, a.s. Czech Republic 20.00% 20.00% Development Doupovská, s.r.o. Czech Republic 75.00% 75.00% Diana Property Sp. z o.o. Poland 100.00% 100.00% Equator IV Offices sp. z o.o. Poland 100.00% 100.00% Estate Grand, s.r.o. Czech Republic 100.00% 100.00% Eurocentrum Offices sp. z o.o. Poland 100.00% 100.00% Industrial Park Stříbro, s.r.o. Czech Republic 100.00% 100.00% JIHOVÝCHODNÍ MĚSTO, a.s. Czech Republic 100.00% 100.00% Land Properties, a.s. Czech Republic 100.00% 100.00% LES MAS DU FIGUER France 100.00% 100.00% Marki Real Estate Sp. z o.o. Poland 100.00% 100.00% MQM Czech, a.s. Czech Republic 20.00% 20.00% NOVÁ ZBROJOVKA, s.r.o. Czech Republic 100.00% 100.00% Nupaky a.s. Czech Republic 100.00% 100.00% Pietroni, s.r.o. Czech Republic 100.00% 100.00% Polygon BC, a.s. Czech Republic 20.00% 20.00% Rezidence Kunratice, s.r.o. Czech Republic 100.00% - Rezidence Pragovka, s.r.o. Czech Republic 100.00% 100.00% Strakonice Property Development, a.s. Czech Republic 100.00% 100.00% STRM Alfa, a.s. Czech Republic 20.00% 20.00% STRM Beta, a.s. Czech Republic 100.00% 100.00% STRM Gama, a.s. Czech Republic 100.00% 100.00% Vysočany Office, a.s. Czech Republic 20.00% 20.00% WFC Investments sp. z o.o. Poland 100.00% 100.00% Equity method investments Company Country 31 December 2022 31 December 2021 Beta Development, s.r.o. Czech Republic 35.00% 35.00% Uniborc S.A. Luxembourg 35.00% 35.00% 222100KIDRQ6NNVYUH612021-12-31222100KIDRQ6NNVYUH612022-12-31222100KIDRQ6NNVYUH612021-01-012021-12-31222100KIDRQ6NNVYUH612022-01-012022-12-31222100KIDRQ6NNVYUH612020-12-31222100KIDRQ6NNVYUH612022-12-31ifrs-full:NoncontrollingInterestsMember222100KIDRQ6NNVYUH612022-12-31ifrs-full:EquityAttributableToOwnersOfParentMember222100KIDRQ6NNVYUH612022-12-31ifrs-full:RetainedEarningsMember222100KIDRQ6NNVYUH612022-12-31ifrs-full:OtherReservesMember222100KIDRQ6NNVYUH612022-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember222100KIDRQ6NNVYUH612022-12-31ifrs-full:SharePremiumMember222100KIDRQ6NNVYUH612022-12-31ifrs-full:IssuedCapitalMember222100KIDRQ6NNVYUH612022-01-012022-12-31ifrs-full:NoncontrollingInterestsMember222100KIDRQ6NNVYUH612022-01-012022-12-31ifrs-full:EquityAttributableToOwnersOfParentMember222100KIDRQ6NNVYUH612022-01-012022-12-31ifrs-full:RetainedEarningsMember222100KIDRQ6NNVYUH612022-01-012022-12-31ifrs-full:OtherReservesMember222100KIDRQ6NNVYUH612022-01-012022-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember222100KIDRQ6NNVYUH612021-12-31ifrs-full:NoncontrollingInterestsMember222100KIDRQ6NNVYUH612021-12-31ifrs-full:EquityAttributableToOwnersOfParentMember222100KIDRQ6NNVYUH612021-12-31ifrs-full:RetainedEarningsMember222100KIDRQ6NNVYUH612021-12-31ifrs-full:OtherReservesMember222100KIDRQ6NNVYUH612021-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember222100KIDRQ6NNVYUH612021-12-31ifrs-full:SharePremiumMember222100KIDRQ6NNVYUH612021-12-31ifrs-full:IssuedCapitalMember222100KIDRQ6NNVYUH612021-01-012021-12-31ifrs-full:NoncontrollingInterestsMember222100KIDRQ6NNVYUH612021-01-012021-12-31ifrs-full:EquityAttributableToOwnersOfParentMember222100KIDRQ6NNVYUH612021-01-012021-12-31ifrs-full:RetainedEarningsMember222100KIDRQ6NNVYUH612021-01-012021-12-31ifrs-full:OtherReservesMember222100KIDRQ6NNVYUH612021-01-012021-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember222100KIDRQ6NNVYUH612020-12-31ifrs-full:NoncontrollingInterestsMember222100KIDRQ6NNVYUH612020-12-31ifrs-full:EquityAttributableToOwnersOfParentMember222100KIDRQ6NNVYUH612020-12-31ifrs-full:RetainedEarningsMember222100KIDRQ6NNVYUH612020-12-31ifrs-full:OtherReservesMember222100KIDRQ6NNVYUH612020-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember222100KIDRQ6NNVYUH612020-12-31ifrs-full:SharePremiumMember222100KIDRQ6NNVYUH612020-12-31ifrs-full:IssuedCapitalMemberiso4217:EURiso4217:EURxbrli:shares EYErnst&YoungSociete anonyme35E, Avenue john F.KennedyL-1855 LuxembourgTel: +352421241B.P.780L-20 17 LuxembourgR.C.S. Luxembourg B47771TVA LU 16063074Building a betterworking worldwww.ey.com/luxembourgIndependent auditor's reportTo the Shareholders ofCPIFIM SA40,rue delaValleeL-2661 LuxembourgReporton theaudit oftheconsolidated ﬁnancial statementsOpinionWehave audited theconsolidated ﬁnancial statements of CPIFIM SA(the "Company") andits subsidiaries(the "Group"),which comprise theconsolidated statement of ﬁnancial position as at 31 December 2022,andthe consolidated statement of comprehensive income, theconsolidated statement of changes in equityandthe consolidated statement of cashﬂowsfor the yearthenended, and thenotesto the consolidated ﬁnancialstatements, including asummary ofsigniﬁcant accountingpolicies.Inour opinion,the accompanying consolidated ﬁnancial statements give a true and fair viewoftheconsolidated ﬁnancial position of theGroup as at 31 December 2022,andof its consolidated ﬁnancialperformanceandconsolidated cash ﬂows fortheyear then endedinaccordance with International FinancialReporting Standards ("IFRS")asadopted by theEuropean Union.Basis for opinionWeconducted ouraudit in accordance with EURegulation W537/2014,theLawof 23July2016 on theauditprofession ("Lawof23 July 2016")and withInternational Standards on Auditing ("ISAs")as adoptedforLuxembourg bythe "Commission de Surveillance du Secteur Financier" ("CSSF"). Our responsibilities undertheEU Regulation N°537/2014,theLawof 23 July2016andISAsas adopted forLuxembourg by theCSSFare furtherdescribed in the "Responsibilities of the "reviseur d'entreprises agree"for theauditof theconsolidated ﬁnancial statements" sectionofour report.Weare also independent ofthe Groupinaccordancewith the International CodeofEthics for Professional Accountants, includingInternationalIndependenceStandards, issuedbythe International Ethics Standards Board for Accountants ("IESBACode")asadopted forLuxembourg bythe CSSFtogether withthe ethicalrequirements that arerelevanttoour audit ofthe consolidated ﬁnancial statements, andhave fulﬁlledour otherethicalresponsibilities underthose ethicalrequirements.Webelievethat the audit evidence we haveobtained issufﬁcient andappropriate to provide a basis for our opinion.A member ﬁrmofErnst& YoungGlobal Limited EYBuildinga betterworking worldKey audit mattersKeyauditmatters arethose matters that, in ourprofessional judgment, were ofmost signiﬁcance in ourauditofthe consolidated ﬁnancial statements ofthe currentperiod.These matterswereaddressed inthe contextof theauditof theconsolidated ﬁnancial statements asa whole, andin forming ouropinion thereon, andwedonot provide a separate opinion onthese matters.a) Impairment of loans providedDescriptionLoansprovided represent69%ofthetotalGroup's consolidated assets. Themajority oftheloansprovidedhavebeengranted torelated parties asdetailed in Note6.5 in theconsolidated ﬁnancial statements. Theprocessforestimatingimpairmentprovisiononloansprovided isasigniﬁcant andcomplexarea.Management performsanimpairmentassessment ofloansprovidedandrecognizes anallowance forexpected credit losses in accordance with IFRS 9.Duetothecomplexity, signiﬁcance ofjudgements appliedandtheGroup'sexposuretoloansprovidedformingamajorportion oftheGroup's assets,the auditof impairment of loansprovided isa key area offocus.Auditors responseOur audit procedures over theimpairment on loansprovided included, butwerenot limitedto, the following:Obtained anunderstanding of thekey contractual terms of theloansprovided.Evaluatedtheapplication ofrequirements ofIFRS9andappropriatenessoftheaccounting policiesapplied by the management of theGroup.Understood management's model usedto determine impairment.Reviewedthe data/information used indevelopingthe model and involvedEYspecialisttoreviewandchallengesigniﬁcantassumptions andparameters used.Testedthe accuracy and completeness ofthe ﬁnancial dataused inthe model.Testedthe arithmetical accuracy ofthe model applied.Reviewed andensured thecompletenessoftheconsolidatedﬁnancial statementsdisclosuresinterms of IFRS 9.b)Valuation of investment propertyDescriptionTheGroupownsa portfolio ofinvestment properties comprising oﬃce, land,properties underdevelopment,retail and residential typeof properties locatedinEurope. Investment property represents 24%ofthe totalGroup'sassetsas at 31December 2022. Investment properties are valued at fair valueinaccordance withthe Group accounting policies.A member ﬁrm of Ernst&Young Global Limited EYBuilding a betterworking worldValuation ofinvestment property is a signiﬁcant judgemental areaandis underpinned by anumber of factualinputs and assumptions. The valuation isinherently subjective due to, amongotherfactors,theindividualnature ofeachproperty,the locationand theexpectedcash ﬂowsgenerated byfuturerentals.Themanagement engagedindependentexternalvaluers(hereafterthe"Valuers") toexternally value99%oftheGroup's investment properties.Indetermining aproperty's valuation, theValuerstakeinto account propertyspeciﬁccharacteristics andinformation suchasthecorrect tenancyagreementsandrental income. Theyapplyassumptionsforyieldsand estimated market rent, whichareinﬂuenced by prevailing marketyieldsandcomparable markettransactions,tocomeupwith their assessment ofthefairvalue.Duetotheabove mentionedmatters, weconsider valuationofinvestmentproperty asakeyauditmatter.Auditors responseOur audit procedures over the valuation of investment property included, butwerenot limitedto, thefollowing:We evaluated the competence, capabilities andobjectivity oftheValuers andread the termsofengagement of the Valuers to determine whether therewereanymattersthatmighthaveaﬀectedtheirobjectivity or limited thescope of theirwork.For a sample of thevaluations across all assetclasses, geographical locations andexternalValuers,wetraced the inputsused inthevaluationprocesstocorresponding leaseagreements andotherrelevant documentation.In particular, weassessed whether theapplied valuation methods areappropriate forthe purpose ofthevaluation oftheunderlyinginvestment property.Wealsoinvolved ourownrealestatespecialist to assist us in evaluating thereasonableness of theassumptions used invaluation modelsincludingyieldsand estimated marketrent, forthe sampleofinvestment properties.We evaluated any caveats or limitations, ifany,included inthe Valuers' reports.We assessed the adequacy ofthe disclosures inthe consolidated ﬁnancial statements.Other informationTheBoard of Directors isresponsible for the otherinformation. Theotherinformation comprises theinformation included inthe consolidated management reportand the corporate governance statement butdoes notincludethe consolidated ﬁnancialstatementsand our report of"reviseurd'entreprises agree"thereon.Our opiniononthe consolidated ﬁnancial statements doesnot coverthe otherinformation and we do notexpressanyformofassurance conclusion thereon.Inconnectionwithour auditofthe consolidated ﬁnancialstatements, our responsibility istoread the otherinformation and, in doing so,consider whether theother information is materially inconsistent with theconsolidated ﬁnancial statements or ourknowledge obtained inthe auditor otherwise appears to bematerially misstated. If, based ontheworkwehaveperformed, weconclude thatthere is a materialmisstatement of this otherinformation, we arerequiredto reportthis fact.We havenothingto reportinthisregard.A member ﬁrm of Ernst&YoungGlobal Limited EYBuilding a betterworking worldResponsibilities ofthe BoardofDirectorsandofthosechargedwith governance fortheconsolidated ﬁnancial statementsThe Board ofDirectors isresponsible forthe preparation and fair presentation ofthe consolidated ﬁnancialstatementsinaccordance withIFRS asadoptedbythe European Union, and forsuch internalcontrolastheBoardof Directors determines is necessary to enable thepreparation of consolidated ﬁnancial statementsthatare freefrom material misstatement, whether dueto fraud or error.TheBoard ofDirectors isalsoresponsible for presenting andmarkingupthe consolidated ﬁnancialstatements in compliance withtherequirements setoutin the Delegated Regulation 2019/815 onEuropeanSingle Electronic Format, as amended ("ESEF Regulation").Inpreparingthe consolidated ﬁnancial statements, theBoardof Directors isresponsible for assessing theGroup's abilitytocontinueasagoing concern,disclosing,asapplicable,mattersrelated togoing concernand using the goingconcern basisofaccounting unlessthe Boardof Directorseitherintendsto liquidatetheGrouporto ceaseoperations, or hasno realisticalternative but to do so.Those chargedwith governance are responsibleforoverseeing theCompany's /Bank's[Group's]ﬁnancialreporting process.Responsibilities ofthe "reviseur d'entreprises agree"for the auditofthe consolidated ﬁnancialstatementsThe objectives ofour auditare to obtainreasonable assurance aboutwhether the consolidated ﬁnancialstatements asawholeare free frommaterialmisstatement, whether due tofraudorerror,and to issue areport ofthe"reviseur d'entreprises agree"that includesour opinion. Reasonable assurance isahigh levelof assurance, butis nota guarantee thatan auditconducted in accordance with EURegulation N"537/2014,the Law of 23 July 2016and withthe ISAs as adopted for Luxembourg bythe CSSFwill alwaysdetect amaterialmisstatement whenitexists.Misstatements can arise from fraud orerror and areconsidered material if, individually or inthe aggregate, theycouldreasonably be expected to inﬂuence theeconomic decisionsofuserstaken onthebasisofthese consolidated ﬁnancialstatements.Aspart of an auditin accordance with EURegulation N"537/2014,theLaw of 23July2016andwithISAsas adopted forLuxembourg by theCSSF, weexercise professional judgment andmaintain professionalskepticism throughout the audit.We also:Identifyandassesstherisksofmaterialmisstatement oftheconsolidated ﬁnancialstatements, whetherduetofraud orerror, designand performaudit procedures responsivetothose risks, andobtain auditevidencethatissuﬃcient andappropriate to providea basisfor our opinion. Therisk of not detecting amaterial misstatement resultingfrom fraud ishigher than foroneresultingfrom error, asfraudmayinvolvecollusion, forgery, intentional omissions, misrepresentations, or theoverride ofinternal control.Obtainanunderstanding ofinternalcontrolrelevant totheaudit inorder todesign audit proceduresthatare appropriate in the circumstances, butnot for thepurpose of expressing an opinion on theeﬀectiveness of theGroup's internal control.A member ﬁrm of Ernst& YoungGlobal Limited EYBuilding a betterworking worldEvaluatetheappropriateness of accounting policies usedandthereasonableness of accountingestimates andrelated disclosures made by theBoardofDirectors,Conclude on theappropriateness of Boardof Directors' useof thegoingconcern basisof accountingand,based onthe audit evidenceobtained,whetheramaterialuncertainty existsrelated toeventsorconditionsthat maycastsigniﬁcantdoubt ontheGroup'sability tocontinueasagoing concern.Ifweconclude thata material uncertainty exists,we arerequired to drawattention in our reportof the "reviseurd'entreprises agree" tothe related disclosures in theconsolidated ﬁnancial statements or,if suchdisclosures are inadequate, to modifyour opinion.Our conclusions are basedonthe auditevidenceobtained up to thedateof ourreportof the "reviseur d'entreprises agree" However, futureeventsorconditionsmaycause theGroup tocease tocontinueasagoing concern.Evaluatethe overall presentation, structure and contentofthe consolidated ﬁnancial statements,includingthedisclosures,andwhether theconsolidatedﬁnancial statementsrepresent theunderlyingtransactionsandevents inamanner thatachieves fairpresentation.Assesswhether theconsolidatedﬁnancial statementshavebeenprepared, inallmaterial respects, incompliancewith the requirements laiddown inthe ESEFRegulation.Obtainsuﬃcient appropriateauditevidence regarding theﬁnancial informationoftheentitiesandbusiness activitieswithin theGroup toexpress anopinionontheconsolidated ﬁnancialstatements.Weare responsible for thedirection, supervision and performance ofthe Group audit.We remainsolelyresponsible for our audit opinion.Wecommunicate with those chargedwith governance regarding,amongother matters,theplannedscopeandtiming ofthe auditandsigniﬁcant audit ﬁndings,includinganysigniﬁcant deﬁciencies ininternalcontrolthat we identify during our audit.We alsoprovidethosechargedwithgovernance with astatement that we have compliedwithrelevantethical requirements regardingindependence, andcommunicate tothem allrelationships andother mattersthat may reasonably be thoughtto bearon our independence, and whereapplicable, relatedsafeguards.From the matterscommunicated withthosechargedwithgovernance, we determine thosemattersthat wereof most signiﬁcance in the auditof theconsolidated ﬁnancial statements of the current periodandarethereforethekey auditmatters.Wedescribe thesematters inourreportunlesslaw or regulation precludespublic disclosure about the matter.Report on other legalandregulatory requirementsWe havebeen appointed as"reviseur d'entreprises agree"bythe GeneralMeetingofthe Shareholders on 3October 2019 and the durationofour uninterrupted engagement, includingpreviousrenewalsandreappointments, is 4years.Theconsolidated management reportisconsistentwith the consolidated ﬁnancialstatements and hasbeenprepared in accordance with applicable legal requirements.A member ﬁrm of Ernst&Young Global Limited EYBuildinga betterworking worldThecorporate governance statement, included in the consolidated management report, is the responsibilityof theBoardofDirectors. The information required by article 68ter paragraph (1)letters c) andd) of thelawof19December 2002onthecommercialandcompaniesregister andontheaccountingrecords andannualaccounts ofundertakings, asamended, is consistent withtheconsolidated ﬁnancial statements andhasbeen preparedinaccordance withapplicable legal requirements.Wehave checked thecompliance of theconsolidated ﬁnancial statements of theGroupas at31December2022 withrelevant statutory requirements set out intheESEFRegulation thatare applicable to the ﬁnancialstatements. Forthe Group, it relates to:• Financial statements prepared in validxHTML format;• TheXBRLmarkupofthe consolidated ﬁnancialstatements using the core taxonomy and the commonrulesonmarkups speciﬁed in the ESEF Regulation.Inour opinion, theconsolidated ﬁnancial statements of theGroup as at 31December 2022, identiﬁed asCPI_FIM_S.A._20230331.zip, have been prepared,inallmaterialrespects,incompliancewith therequirements laiddown in the ESEF Regulation.Weconﬁrm that theaudit opinionisconsistentwiththe additional report totheaudit committee orequivalent.We conﬁrmthat theprohibited non-audit services referredto in EU Regulation No537/2014werenotprovided andthatwe remained independent of theGroup in conducting theaudit.Ernst&YoungLuxembourg, 31 March 2023A member ﬁrm of Ernst& YoungGlobal Limited CPIFIMSASociété AnonymeR.C.S.Luxembourg B44.996ANNUAL ACCOUNTSANDREPORTOF THE REVISEUR D’ENTREPRISESAGREE31DECEMBER202240,ruede la ValléeL-2661 LuxembourgShare capital: EUR13,145,076R.C.S. LuxembourgB44.996 TABLE OFCONTENTSREPORT OF THE REVISEURD’ENTREPRISESAGREEANNUAL ACCOUNTSNotes to the annual accounts EYErnst&YoungSociete anonymeBuildingabetterworking world35E, Avenue john F.KennedyL-1855 LuxembourgTel: +3524212418.P.780L-2017 LuxembourgR.C.S. Luxembourg B 47 771TVA LU 16063074www.ey.com/luxembourgIndependent auditor's reportTo the Shareholders ofCPIFIM SA40,rue delaValleeL-2661 LuxembourgReport on theaudit oftheﬁnancial statementsOpinionWe haveauditedthe ﬁnancial statements ofCPI FIM SA(the "Company"), whichcomprise the balancesheet asat31 December 2022,and theproﬁt and loss accountfor theyear thenended,and the notes to theﬁnancialstatements,including asummaryofsigniﬁcant accountingpoliciesInouropinion,theaccompanyingﬁnancial statements giveatrueandfairviewoftheﬁnancial positionoftheCompany as at 31December 2022,andof theresultsof its operations for the yearthenended inaccordance with Luxembourg legalandregulatory requirements relating to thepreparation andpresentationof theﬁnancial statements.Basisfor opinionWeconductedouraudit inaccordance with EURegulationW537/2014,theLawof23July2016 ontheauditprofession ("Lawof23 July 2016")and withInternational Standards on Auditing ("ISAs")as adoptedforLuxembourg bythe "Commission de Surveillance duSecteur Financier" ("CSSF").Our responsibilities underthe EU Regulation N°537/2014,theLawof23 July2016andISAsas adopted forLuxembourg by the CSSFare furtherdescribed inthe "Responsibilities ofthe "reviseur d'entreprises agree"for the auditof the ﬁnancialstatements"sectionof our report.Weare also independent ofthe Company inaccordance with theInternational Code of Ethics for Professional Accountants, including International Independence Standards,issuedbytheInternational EthicsStandards Board for Accountants ("IESBA Code")as adopted forLuxembourg bythe CSSFtogetherwith the ethicalrequirements that are relevanttoour audit of theﬁnancialstatements,and havefulﬁlledour otherethicalresponsibilities under thoseethicalrequirements.We believethat theaudit evidence we haveobtained issuﬃcient and appropriate to provideabasis for our opinion.Key audit mattersKeyaudit mattersare thosemattersthat,inour professional judgment, wereof most signiﬁcance inour auditofthe ﬁnancialstatements ofthe current period.Thesematterswereaddressed inthe context ofthe auditofthe ﬁnancialstatements as awhole, andinforming our opinion thereon, and wedo notprovidea separateopinionon these matters.A member ﬁrm of Ernst&YoungGlobal Limited EYBuilding a betterworking worlda)Valuation of ﬁnancial assets (shares in aﬃliated undertakings and loans toaﬃliatedundertakings)DescriptionFinancialassets represent 94%of thetotalassetsof theCompany as at31 December 2022.Theassessment of thevaluation ofﬁnancial assets requires signiﬁcant judgement applied by themanagement in assessing therecovery value of theﬁnancial assets andthepermanent nature of a potentialimpairment.Thismatter wasconsidered to beakey matterinour audit,sincethe aforementioned estimates are complexandrequiresigniﬁcant judgements by management of theCompany.Auditors responseOuraudit procedures over the valuation ofﬁnancialassetsincluded, butwerenot limited to, the following:Ensuredexistence,initialcostofinvestment andownershipoftheinvestmentsthrough inspection ofacquisition agreements and commercial registers of the underlying investees.Understood theprocessofﬁnancialassetsvaluation andmanagement'simpairment assessmentand evaluated the appropriateness ofthe application of the Luxembourg legal andregulatoryrequirements relating to thepreparation andpresentation of theﬁnancial statements.Tested thearithmetical accuracy of themanagement's impairment testbasedon comparison withthenetequity of theunderlying investees andassessed theconclusions reached by themanagement in respect ofrecognized impairment and/or reversal of historical impairment.Testedthe accuracy and completeness ofthe provided loan database, on arepresentative samplebasis,by tracing theloanterms to theunderlying loanagreements, therepayments ofprincipal andinterest to thebankstatements andtheoutstanding loanandaccrued interest balances to thecounterparties.Performed recalculation of the interest on loans to aﬃliated undertaking based on known data.Reviewed andensured thecompletenessoftheﬁnancialstatements'disclosures.Other informationThe Board ofDirectors isresponsible forthe other information. The otherinformation comprises theinformation included inthe annualreportand thecorporate governance statement but doesnot includetheﬁnancial statements andourreportof "reviseur d'entreprises agree" thereon.Our opinionon the ﬁnancial statements doesnotcoverthe otherinformation and we do not expressanyformof assurance conclusion thereon.A member ﬁrm of Ernst& YoungGlobal Limited EYBuilding a betterworking worldInconnectionwithour auditofthe ﬁnancial statements, our responsibility isto read the otherinformationand, indoing so, considerwhether the other information ismaterially inconsistent with the ﬁnancialstatements or ourknowledge obtained intheauditor otherwise appears to be materially misstated. If, basedon the workwehave performed, weconclude thatthere is a material misstatement of thisother information,we are requiredto reportthis fact.Wehavenothingto reportinthis regard.Responsibilities of the Boardof Directors and ofthosecharged withgovernance for the ﬁnancialstatementsTheBoard of Directors isresponsible for the preparation andfairpresentation ofthe ﬁnancial statements inaccordance with Luxembourg legalandregulatory requirements relating to thepreparation andpresentationoftheﬁnancialstatements, and for suchinternalcontrolastheBoard of Directorsdetermines isnecessary toenablethe preparation ofﬁnancial statements that are freefrommaterial misstatement, whether due tofraudor error.The BoardofDirectors is also responsible forpresenting theﬁnancial statements in compliance withtherequirementsset out inthe Delegated Regulation2019/815 on EuropeanSingleElectronicFormat,asamended ("ESEF Regulation").Inpreparingthe ﬁnancial statements, theBoardof Directors is responsible for assessing the Company'sabilitytocontinueasagoing concern,disclosing,asapplicable, mattersrelated togoing concernandusingthe going concern basisof accounting unlesstheBoardof Directors eitherintendsto liquidate theCompanyorto ceaseoperations, or hasno realistic alternative but to doso.Those charged with governance are responsible for overseeing the Company's ﬁnancial reporting process.Responsibilities ofthe "reviseur d'entreprises agree"for the auditofthe ﬁnancial statementsThe objectives of ourauditareto obtain reasonable assurance aboutwhether theﬁnancial statements as awholeare freefrom material misstatement, whether dueto fraud or error, andto issuea reportof the"reviseurd'entreprises agree"thatincludes our opinion. Reasonable assurance isa highlevelof assurance,but is not a guarantee thatanaudit conducted inaccordance with EURegulation N" 537/2014, theLawof23 July 2016andwiththeISAsas adopted forLuxembourg by theCSSFwillalways detect a materialmisstatementwhenitexists.Misstatements canarisefrom fraud orerror andareconsidered materialif,individually or inthe aggregate, theycouldreasonably beexpected to inﬂuence the economic decisions ofuserstakenon thebasisof theseﬁnancial statements.As part ofan auditinaccordance withEU Regulation N" 537/2014, the Law of 23 July 2016and withISAsas adopted forLuxembourg by theCSSF, weexercise professional judgment andmaintain professionalskepticism throughout the audit.We also:Identify and assessthe risksof material misstatement ofthe ﬁnancialstatements, whether due tofraudorerror,designand performauditprocedures responsivetothoserisks, and obtain audit evidencethat issuﬃcient andappropriate toprovide a basisfor ouropinion. Theriskof not detecting a materialmisstatement resulting fromfraudishigherthan for oneresultingfrom error,asfraudmay involvecollusion, forgery, intentional omissions, misrepresentations, or theoverride of internal control.A member ﬁrm of Ernst & YoungGlobal Limited EYBuildinga betterworking worldObtainan understanding of internal control relevantto theauditin orderto designauditprocedures thatare appropriate in thecircumstances, butnot forthepurpose of expressing anopinion on theeﬀectiveness of theCompany's internal control.Evaluatethe appropriateness ofaccounting policiesusedand the reasonableness ofaccountingestimates and related disclosures made by theBoard ofDirectors.Concludeonthe appropriateness of Board ofDirectors' use ofthe going concernbasis ofaccounting and,based onthe auditevidence obtained, whetheramaterial uncertainty existsrelatedtoeventsorconditions thatmaycastsigniﬁcant doubt on theCompany's abilityto continue as a goingconcern. Ifweconcludethat amaterialuncertainty exists,we are requiredtodraw attention inour reportofthe "reviseurd'entreprises agree"tothe relateddisclosures intheﬁnancialstatements or,ifsuch disclosures areinadequate,to modifyour opinion. Our conclusions arebasedonthe audit evidenceobtained uptothedate of ourreportof the "reviseur d'entreprises agree". However, futureevents or conditions may causethe Company to ceaseto continue as a goingconcern.Evaluatetheoverall presentation,structure andcontent oftheﬁnancial statements,including thedisclosures, andwhether theﬁnancial statements represent theunderlying transactions andevents in amanner that achievesfair presentation.• Assess whether theﬁnancial statements havebeen prepared, in allmaterial respects, in compliance withthe requirements laid downintheESEFRegulation.Wecommunicatewiththose charged withgovernanceregarding,among other matters, theplanned scopeand timingof theaudit andsigniﬁcant auditﬁndings, including anysigniﬁcant deﬁciencies in internal controlthat we identify during our audit.We also providethosechargedwithgovernance withastatement that we havecomplied withrelevantethicalrequirements regarding independence, and communicate to themall relationships and othermattersthatmay reasonably be thought to bearon ourindependence, and whereapplicable, relatedsafeguards.From the matterscommunicated withthosechargedwithgovernance, we determine thosemattersthat wereofmost signiﬁcance inthe auditofthe ﬁnancialstatements ofthe currentperiodand are therefore the keyaudit matters.Wedescribethesemattersinourreport unlesslaworregulationprecludespublic disclosureabout the matter.A member ﬁrm of Ernst&Young Global Limited EYBuilding a betterworking worldReport onotherlegaland regulatory requirementsWehave beenappointed as "reviseur d'entreprises agree" by the General Meeting oftheShareholders on 3October 2019 and thedurationofour uninterrupted engagement, includingpreviousrenewalsandreappointments, is 3 years.Themanagement report is consistent withtheﬁnancial statements andhasbeenprepared in accordancewith applicable legal requirements.Thecorporate governance statement, included in themanagement report, is the responsibility oftheBoardofDirectors. Theinformation required by article68ter paragraph (1)lettersc) andd) of thelawof19December2002onthe commercial and companies registerand onthe accounting recordsand annualaccountsof undertakings, asamended, isconsistentwith the ﬁnancialstatements and has beenpreparedinaccordance with applicable legal requirements.Wehave checked thecompliance of theﬁnancial statements of theCompany as at 31 December 2022withrelevantstatutory requirements set outintheESEFRegulation that are applicable tothe ﬁnancialstatements. Forthe Company, it relates to:• Financial statements prepared in valid xHTML format;Inour opinion,the ﬁnancial statements ofthe Company as at31 December 2022,identiﬁed asCPIFIM_31_12_2022_AFR, havebeenprepared, inallmaterial respects, incompliancewiththerequirements laiddown in the ESEF Regulation.We conﬁrm that the auditopinionisconsistent with the additional report tothe audit committee orequivalent.Weconﬁrmthattheprohibitednon-auditservices referred toinEURegulationNo537/2014were notprovidedand that weremained independent ofthe Company inconducting the audit.Ernst& YoungSociete anonymeCabinet de revisi agreeLuxembourg, 31 March 2023A member ﬁrm of Ernst& YoungGlobal Limited Page 1/5Thenotesin the annexform anintegral part of the annualaccountsUQAVVEP20230322T12273201_002AnnualAccountsHelpdesk :Tel. :(+352) 24788494Email :[email protected].:Matricule :B449961993 2209 554eCDFentrydate :BALANCESHEETFinancialyear fromto(in)01/0101/202231/12/202202EUR03CPI FIMSA40,rue de laValléeL-2661LuxembourgASSETSReference(s)Current yearPreviousyearA.Subscribedcapital unpaid1101101102I. Subscribedcapital notcalled1103103104II. Subscribedcapital called butunpaid1105105106B. Formationexpenses1107107108C. Fixed assets11095.456.462.246,001095.844.914.843,00110I. Intangibleassets11111111121. Costsof development11131131142. Concessions,patents,licences,trade marksandsimilarrightsand assets,if they were1115115116a) acquired for valuableconsiderationandneednot beshown underC.I.31117117118b) createdby the undertakingitself11191191203. Goodwill,to the extentthat itwasacquired for valuableconsideration11211211224. Paymentson account andintangibleassetsunderdevelopment1123123124II. Tangibleassets11251251261. Landandbuildings11271271282. Plantand machinery1129129130 Page 2/5Thenotesin the annexform anintegral part of the annualaccountsUQAVVEP20230322T12273201_002RCSLNr.:Matricule :B449961993 2209 554Reference(s)Current yearPreviousyear3. Otherﬁxturesandﬁttings, toolsandequipment11311311324. Paymentson account andtangibleassetsin the courseof construction1133133134III. FinancialassetsNote 311355.456.462.246,001355.844.914.843,001361. SharesinaﬃliatedundertakingsNote 3.11137621.967.142,00137625.078.717,001382. Loansto aﬃliatedundertakingsNote 3.211394.670.985.968,001395.068.186.992,001403. Participating interestsNote 3.311411411424. Loansto undertakings withwhich theundertaking islinkedbyvirtueof participatinginterestsNote 3.411439.694.945,001439.548.841,001445. Investments heldasﬁxedassetsNote 3.51145153.668.446,00145141.954.548,001466. Other loansNote 3.61147145.745,00147145.745,00148D. Current assetsNote 41151354.741.920,00151559.020.341,00152I. Stocks11531531541. Rawmaterialsand consumables11551551562. Workin progress11571571583. Finishedgoods andgoodsfor resale11591591604. Paymentson account1161161162II. Debtors1163252.903.287,00163352.504.301,001641. Tradedebtors1165378.441,00165216.826,00166a) becoming due and payablewithinoneyear1167378.441,00167216.826,00168b) becoming due andpayableafter more than oneyear11691691702. Amountsowed byaﬃliatedundertakings1171246.329.610,00171344.104.897,00172a) becoming due and payablewithinoneyearNote 4.11173225.513.599,00173332.227.660,00174b) becoming due andpayableafter more than oneyearNote 4.2117520.816.011,0017511.877.237,001763. Amountsowed byundertakingswith whichtheundertakingislinkedbyvirtueof participatinginterests1177208.948,00177150.399,00178a) becoming due and payablewithinoneyearNote 4.31179208.948,00179150.399,00180b) becoming due andpayableafter more than oneyear11811811824. Otherdebtors11835.986.288,001838.032.179,00184a) becoming due and payablewithinoneyearNote 4.411855.986.288,001858.032.179,00186b) becoming due andpayableafter more than oneyear1187187188 Page 3/5Thenotesin the annexform anintegral part of the annualaccountsUQAVVEP20230322T12273201_002RCSLNr.:Matricule :B449961993 2209 554Reference(s)Current yearPreviousyearIII. Investments11891891901. Sharesin aﬃliatedundertakings11911911922. Own shares12092092103. Other investments1195195196IV. Cashat bank and in hand1197101.838.633,00197206.516.040,00198E. Prepayments119961.987,0019957.974,00200TOTAL(ASSETS)5.811.266.153,002016.403.993.158,00202 Page 4/5Thenotesin the annexform anintegral part of the annualaccountsUQAVVEP20230322T12273201_002RCSLNr.:Matricule :B449961993 2209 554CAPITAL,RESERVESANDLIABILITIESReference(s)Current yearPreviousyearA.Capital and reservesNote 51301780.806.338,00301694.916.729,00302I. Subscribedcapital130313.145.076,0030313.145.076,00304II. Sharepremiumaccount1305784.669.809,00305784.669.809,00306III. Revaluation reserve1307307308IV. Reserves1309448.131.945,00309448.131.945,003101. Legal reserve1311448.131.945,00311448.131.945,003122. Reserveforownshares13133133143. Reservesprovided for by thearticles of association13153153164. Other reserves,includingthefair value reserve1429429430a) otheravailable reserves1431431432b) other nonavailablereserves1433433434V. Proﬁt orlossbroughtforward1319-551.030.101,00319-748.493.193,00320VI. Proﬁt or lossfor the ﬁnancialyear132185.889.609,00321197.463.092,00322VII. Interim dividends1323323324VIII.Capitalinvestmentsubsidies1325325326B. Provisions13313313321. Provisionsforpensions andsimilarobligations13333333342. Provisionsfor taxation13353353363. Other provisions1337337338C. Creditors14355.030.459.815,004355.709.076.429,004361. Debenture loans1437437438a) Convertible loans1439439440i) becoming due andpayablewithinoneyear1441441442ii) becoming dueandpayableafter more than oneyear1443443444b) Nonconvertible loans1445445446i) becoming due andpayablewithinoneyear1447447448ii) becoming dueandpayableafter more than oneyear14494494502. Amountsowed to creditinstitutionsNote 6135522.334,0035513.978,00356a) becoming due and payablewithinoneyear135722.334,0035713.978,00358b) becoming due andpayableafter more than oneyear1359359360 Page 5/5Thenotesin the annexform anintegral part of the annualaccountsUQAVVEP20230322T12273201_002RCSLNr.:Matricule :B449961993 2209 554Reference(s)Current yearPreviousyear3. Paymentsreceived on accountof orders in sofar asthey arenotshown separatelyasdeductions from stocks1361361362a) becoming due and payablewithinoneyear1363363364b) becoming due andpayableafter more than oneyear13653653664. Tradecreditors1367806.859,003671.270.488,00368a) becoming due and payablewithinoneyear1369806.859,003691.270.488,00370b) becoming due andpayableafter more than oneyear13713713725. Billsof exchange payable1373373374a) becoming due and payablewithinoneyear1375375376b) becoming due andpayableafter more than oneyear13773773786. Amountsowed to aﬃliatedundertakingsNote 713795.025.515.243,003795.703.682.368,00380a) becoming due and payablewithinoneyearNote 7.11381314.750.963,00381328.303.856,00382b) becoming due andpayableafter more than oneyearNote 7.213834.710.764.280,003835.375.378.512,003847. Amountsowed to undertakingswith whichtheundertakingislinkedbyvirtueof participatinginterests1385385386a) becoming due and payablewithinoneyear1387387388b) becoming due andpayableafter more than oneyear13893893908. Othercreditors14514.115.379,004514.109.595,00452a) Taxauthorities13932.481,003937.815,00394b) Socialsecurityauthorities139526.450,0039514.966,00396c) OthercreditorsNote 813974.086.448,003974.086.814,00398i) becoming due andpayablewithinoneyearNote 8.113994.086.448,003994.086.814,00400ii) becoming dueandpayableafter morethanone year1401401402D. Deferred income1403403404TOTAL(CAPITAL,RESERVESANDLIABILITIES)5.811.266.153,004056.403.993.158,00406 Page 1/2Thenotesin the annexform anintegral part of the annualaccountsUQAVVEP20230322T12273201_003AnnualAccountsHelpdesk :Tel. :(+352) 24788494Email :[email protected].:Matricule :B449961993 2209 554eCDFentrydate :PROFITANDLOSSACCOUNTFinancialyear fromto(in)01/0101/202231/12/202202EUR03CPI FIMSA40,rue de laValléeL-2661LuxembourgReference(s)Current yearPreviousyear1. Net turnover17017017022. Variationin stocksofﬁnishedgoodsand in work inprogress17037037043. Workperformedbythe undertakingfor its ownpurposesand capitalised17057057064. Other operating incomeNote 917134.200.535,0071325.226.997,007145. Rawmaterialsand consumablesandother external expenses1671-1.428.429,00671-10.775.754,00672a) Rawmaterials andconsumables1601-14.061,00601-13.498,00602b) Other external expensesNote 101603-1.414.368,00603-10.762.256,006046. Staﬀ costsNote111605-801.298,00605-1.256.976,00606a) Wagesand salaries1607-665.620,00607-1.011.016,00608b) Socialsecurity costs1609-128.505,00609-238.787,00610i) relating to pensions1653653654ii) other socialsecuritycosts1655-128.505,00655-238.787,00656c) Other staﬀ costs1613-7.173,00613-7.173,006147. Value adjustmentsNote 121657547.051,006571.257.301,00658a) in respectof formationexpensesandof tangibleandintangibleﬁxedassets1659659660b) in respectof current assets1661547.051,006611.257.301,006628. Other operating expensesNote 131621-2.970.701,00621-3.050.447,00622 Page 2/2Thenotesin the annexform anintegral part of the annualaccountsUQAVVEP20230322T12273201_003RCSLNr.:Matricule :B449961993 2209 554Reference(s)Current yearPreviousyear9. Incomefrom participating interestsNote 14171511.982.066,0071511.462.335,00716a) derived from aﬃliated undertakings171711.982.066,0071711.462.335,00718b) other incomefrom participatinginterests171971972010.Income from other investmentsandloansformingpart of the ﬁxed assetsNote 151721218.394.993,00721299.408.375,00722a) derivedfrom aﬃliated undertakingsNote 15.11723217.265.844,00723224.237.202,00724b) other incomenot included undera)Note 15.217251.129.149,0072575.171.173,0072611.OtherinterestreceivableandsimilarincomeNote 16172743.996.631,0072736.888.485,00728a) derivedfrom aﬃliated undertakingsNote 16.1172934.812.865,0072926.361.718,00730b) other interest andsimilarincomeNote 16.217319.183.766,0073110.526.767,0073212.Share of proﬁt or lossofundertakingsaccountedfor underthe equitymethod166366366413.Valueadjustmentsinrespectofﬁnancial assetsand of investmentsheld ascurrent assetsNote 171665-2.855.487,006657.680.773,0066614.InterestpayableandsimilarexpensesNote 181627-185.166.890,00627-169.360.662,00628a) concerningaﬃliated undertakingsNote 18.11629-175.879.531,00629-164.437.800,00630b) other interest and similarexpensesNote 18.21631-9.287.359,00631-4.922.862,0063215.Taxonproﬁt orloss1635-194,0063563616.Proﬁtorlossafter taxation166785.898.277,00667197.480.427,0066817.Othertaxesnotshownunderitems1to16Note 191637-8.668,00637-17.335,0063818.Proﬁtorlossfor theﬁnancialyear166985.889.609,00669197.463.092,00670 CPIFIMSASociétéAnonymeR.C.S. Luxembourg B44.996NOTE1- GENERALINFORMATIONCPI FIMSA, SociétéAnonyme(“the Company” and“CPI FIM”),RCSnumberB44.996, was incorporatedunder theLuxembourgCompanyLawon9September1993asa limited liability company(Société Anonyme) foran unlimited periodof time.The Company has for object the taking of participating interests, inwhatsoever formineitherLuxembourgor foreigncountries,especiallyin realestate companies in theCzech Republic,Polandand other countriesofEasternEuropeand themanagement, controland developmentofsuchparticipatinginterests.TheCompany,throughitssubsidiaries (together“theGroup”), is principallyinvolvedin providingfinancingandmanagement services,and the development of propertiesfor itsown portfolio orintended tobesoldin theordinary course of business.The registeredoﬃceofthe Company isestablished at40,rue de laVallée, L-2661Luxembourg.As at31December2022the Company’s shareswere listed ontheregulatedmarkets of theWarsaw Stock Exchangeand oftheLuxembourgStockExchange.The ﬁnancial yearis from1January2022to31December2022.As at31December2022,theCompany is directly controlledby CPI Property GroupS.A.by 97.31% (2021:97.31%), aLuxembourgentityofwhich Mr.Radovan Vítekistheultimate beneﬁcialownerwith89.35%ofvotingrights (2021:89.44%).Othershares of CPI FIM SA grant2.69% votingrights.Total1,314,507,629shares grant100.00% voting rights.BoardofDirectorsAs at31December2022,theBoard of Directorsconsistsofthefollowing directors:Mr.David GreenbaumMr. Edward HughesMrs. AnitaDubostMr.Scot WardlawThe consolidatedfinancialstatementsand separateannual accountsof theCompany canbeobtainedatitsregisteredoﬃce,40,rue de laVallée,L-2661Luxembourg and at the followingwebsite:www.cpifimsa.com. CPIFIMSASociétéAnonymeR.C.S. Luxembourg B44.996NOTE2- ACCOUNTINGPRINCIPLES, RULESAND METHODSBasisof preparation and going concernTheannual accountshavebeen preparedinaccordance withLuxembourg legal and regulatoryrequirements.Accountingpoliciesand valuationrulesare, besidestheones laid down by the lawof10August1915,as subsequently amended (“theCommercial CompanyLaw”),determinedandapplied by theBoardof Directors.The Companymaintains itsaccounting recordsin Euro (EUR).The ﬁnancialstatements are presented in EUR.All ﬁgures intables are presentedrounded tothe nearest thousands, exceptwhen otherwise indicated.The ﬁnancialstatementswereauthorized forissue bytheBoard of Directorson31March2023.Signiﬁcantaccounting policiesFinancial assetsFinancial assetsincludesharesinafﬁliatedundertakings,loanstoafﬁliatedundertakings, participating interests,loans toundertakingswithwhich theundertaking islinked byvirtue of participatinginterestsand investments held as ﬁxedassets.Financial assetsare valued individually atthe lower of theiracquisition price less permanent impairment or recoverablevalue. Amountsowed byafﬁliatedundertakings,amountsowedby undertakingswithwhichtheCompany is linkedby virtueof participatinginterestand other loansshown under “Financial assets” are recordedat theirnominalvalue.A valueadjustment is recordedwhentherecovery valueis partiallyorfully compromisedon permanent basis.The valueadjustmentsarenot continuedif thereasonsforwhichthe valueadjustments weremadehave ceasedtoapply.Provided andreceived cashpool transactionsThe Company classifiestheprovidedand received cashpool transactions on behalf agreed cash-pool contracts,includinginterests, as other current receivables andothercurrent liabilities, respectively.DebtorsTrade debtors,amounts owed byafﬁliatedundertakings,amounts owed by undertakingswithwhich the undertakingislinked by virtue of participatinginterestandotherdebtors are valued at their nominalvalue. Theyaresubjectto Valueadjustments where their recovery value is partiallyof fully compromised. These Value adjustmentsare not continuedif thereasonsforwhichthe Value adjustments weremade have ceased toapply.ProvisionsProvisionsare intended to cover lossesor debts the nature ofwhich is clearly deﬁned and which at the balance sheet dateare eitherlikely orcertain tobeincurredbut uncertain as totheiramountoras tothe date onwhich theywillarise.Provisionsmay also be createdin order tocover chargeswhichhave their origin intheﬁnancial year under revieworin aprevious financial year, the nature of whichisclearly definedandwhichatthedateofthe balancesheetare either likelytobe incurredorcertain tobe incurred but uncertainas totheiramount orasto thedate on which theywillariseCreditorsCreditorsincludeamounts owed toafﬁliated undertakingsandtrade and other creditors.Creditorsare valued at theirnominalvalue.Conversion of foreigncurrenciesDuringthe ﬁnancial year,theacquisitions and sales offinancial assetsaswellasincomeandcharges incurrenciesotherthan EUR areconverted into EURat the exchange rate prevailing at the transactiondates.At the balancesheet date,the acquisition priceof the financialassets – sharesin aﬃliated, participatinginterestsandotherinvestmentsexpressed in currency otherthan the EUR remainsconvertedat the historicalexchange rate. Allotherassetsand liabilitiesexpressed inacurrencyother thanEURarevaluedat the closing rate or historicalrate underthe prudenceconcept.The unrealisedand realised losses,aswell as the realised gainsarerecorded intheproﬁt and loss account.Cross-currencyswaps– hedgeCross-currency swapinterest is recordedatitsnominalvalue.The interestis reported inbalance sheetas other debtors,resp. other creditors.Theinterest isreportedseparatelyin proﬁtand lossaccount. TheCompanyrecordsthefixedamountson off-balance accounts.The sameapproach isused for fair value ofa cross-currency swap.Derivativeinstrument - investmentsThe Company recordsthe fixed amounts on off-balance accounts.Thefair valueof a derivativeinstrumentis reported asotherreceivable, resp. payable,and in proﬁtand lossaccountassimilar income tointerest, resp.expense.Net turnoverNet turnover includesincome frominvoicing ofoperatingcosts. CPIFIMSASociétéAnonymeR.C.S. Luxembourg B44.996Value adjustmentsValue adjustmentsare deducteddirectlyfromtherelated asset.OtheroperatingincomeOtheroperatingincome includesincome frominvoicingof operating costsand providingmanagement services.NOTE3- FINANCIALASSETS2022Sharesin aﬀiliated undertakingsLoans toaﬀiliatedundertakingsGrossbookvalueBalanceat1January2022685,7945,142,263Additionsforthe year5,8402,641,151Disposals forthe year--(3,045,291)Balanceat31December2022691,6344,738,123Accumulated valueadjustmentsBalanceat1January2022(60,715)(74,076)Allocations forthe year(9,944)(47,205)Reversals forthe year99254,144Balanceat31December2022(69,667)(67,137)Net bookvalueasat1January2022625,0795,068,187Net bookvalueasat31December2022621,9674,670,9863.1-Shares inafﬁliatedundertakingsIn the context of the impairmentanalysis,theCompany comparesacquisition costwithNetEquity of undertaking andapplies valueadjustment,whentheNetequityislowerthanacquisitioncost.TheCompany usestheNetEquity methodforthe valuationof non-tradableshares. Results of valueadjustmentsare reportedinNote17.Undertakings inwhichthe Company holds participationintheirshare capitalare detailed inthe following table on thenextpage. CPIFIMSASociétéAnonymeR.C.S. Luxembourg B44.996Nameof theundertakingCountryCcy%heldCostCostchangeCostAccumulatedimpairmentReversalofimpairment /(impairment)AccumulatedimpairmentCarryingvalueCarryingvalueNetequity()Resultof202231.12.202231.12.2021in202231.12.202231.12.2021in202231.12.202231.12.202131.12.2022BrnoProperty InvestXV.,a.s. (formerlySvitavyPropertyDevelopment,a.s.)CzechRepublicCZK100.00%1,062--1,062(4)4--1,0581,0621,4439BubnyDevelopment, s.r.o.CzechRepublicCZK20.00%15,847--15,847------15,84715,847206,48314,237BYTYPODKOVA,a.s.CzechRepublicCZK100.00%80(13)67------80671,581(2,391)Camuzzi,a.s.CzechRepublicCZK100.00%2,2321,4143,646(806)46(760)1,4262,8862,886(35)CD Propertys.r.o.CzechRepublicCZK100.00%5,3872,0207,407------5,3877,40711,614(2,387)CPI-KrásnéBřezno,a.s.CzechRepublicCZK100.00%3,049--3,049(408)38(370)2,6412,6792,679(43)CPI-LandDevelopment,a.s.CzechRepublicCZK100.00%52,161(14,762)37,399------52,16137,39937,765(9,295)CPI ParkChabařovice,s.r.o.CzechRepublicCZK100.00%--3,4853,485--------3,4855,2552,472CPIParkPlzeň,s.r.o.*CzechRepublicCZK100.00%--6,0196,019--------6,01919,68914,002CPI PignaS.r.l.ItalyEUR100.00%5211,5002,021------5212,0213,781(3,693)CPI Podhorskýpark,s.r.o.CzechRepublicCZK100.00%--11,27711,277--------11,27724,87915,819CPIREVItalyIIS.r.l.ItalyEUR100.00%4371,0001,437--(1,437)(1,437)437--(501)(417)CPISouth, s.r.o.CzechRepublicCZK90.00%1,603--1,603------1,6031,6032,477575DevelopmentDoupovská, s.r.o.CzechRepublicCZK75.00%3,046--3,046(2,918)72(2,846)12820026690Diana Property Sp. zo.o.PolandPLN100.00%777--777------7777772,026130EquatorIVOﬀicessp. z o.o.PolandPLN100.00%30,419--30,419------30,41930,41932,712189EstateGrand, s.r.o.CzechRepublicCZK100.00%8--8------887,026(151)EurocentrumOﬀicessp. z o.o.PolandPLN100.00%132,848(94)132,752------132,848132,752147,735(1,185)FamiacoLimitedCyprusEUR100.00%1--1(1)--(1)--------Industrial ParkStříbro, s.r.o.CzechRepublicCZK100.00%8--8------882,63270 CPIFIMSASociétéAnonymeR.C.S. Luxembourg B44.996Nameof theundertakingCountryCcy%heldCostCostchangeCostAccumulatedimpairmentReversalofimpairment /(impairment)AccumulatedimpairmentCarryingvalueCarryingvalueNetequity()Resultof202231.12.202231.12.2021in202231.12.202231.12.2021in202231.12.202231.12.202131.12.2022JIHOVÝCHODNÍMĚSTO,a.s.CzechRepublicCZK100.00%41,287--41,287(30,963)562(30,401)10,32410,88610,886239Land Properties,a.s.CzechRepublicCZK100.00%38,052(6,019)32,033--(8,507)(8,507)38,05223,52665,421(7,273)Marki Real EstateSp. zo.o.PolandPLN100.00%22,282--22,282(19,146)128(19,018)3,1363,2643,264184MQMCzech,a.s.CzechRepublicCZK20.00%3,237--3,237------3,2373,23733,41610,788NOVÁZBROJOVKA,s.r.o.CzechRepublicCZK100.00%22,465--22,465------22,46522,465105,45811,061Nupaky a.s.CzechRepublicCZK100.00%7,338--7,338(2,712)140(2,572)4,6264,7664,766(3)ORCOBlumentálskaa.s.SlovakiaEUR100.00%2,980--2,980(2,980)--(2,980)--------OrcoBucharestCyprusEUR100.00%3--3(3)--(3)--------OrcoProject Sp. zo.o.PolandPLN100.00%701--701(701)--(701)--------Pietroni, s.r.o.CzechRepublicCZK100.00%----------------(7,291)(3)PolygonBC,a.s.CzechRepublicCZK20.00%8,733--8,733------8,7338,73391,2606,949RezidenceKunratice, s.r.o.CzechRepublicCZK100.00%--1313--------133,6713,225Rezidence Pragovka,s.r.o.CzechRepublicCZK100.00%17,079--17,079------17,07917,07986,3777,253Strakonice PropertyDeveloment,a.s.CzechRepublicCZK100.00%221--221(72)3(69)149152152(2)STRM Alfa,a.s.CzechRepublicCZK20.00%5,110--5,110------5,1105,11073,7039,174STRMBeta,a.s.CzechRepublicCZK100.00%5,224--5,224------5,2245,2248,660864STRMGama,a.s.CzechRepublicCZK100.00%8,016--8,016------8.0168,01619,2013,126Vysočany Office,a.s.CzechRepublicCZK20.00%19--19------191910,301551WFCInvestmentssp. z o.o.PolandPLN100.00%253,565--253,565------253,565253,565267,4584,867Difference due torounding tothousandEURandlinkingTotal toother tables(4)--(2)(1)(1)(2)(5)(4)Total685,7945,840691,634(60,715)(8,952)(69,667)625,079621,967() BYTYPODKOVA,a.s. spun oﬀ tonew entity RezidenceKunratice, s. r. o.(*) Netequitycalculation isbasedonunaudited Financial Statements inaccordancewith IFRSas adoptedbyEU() CPI–Land Development,a.s. spunoff to new entities-CPI Podhorskýpark,s.r.o.andCPI ParkChabařovice,s.r.o.()LandProperties,a.s. spun oﬀ to new entityCPIParkPlzeň, s.r.o. CPIFIMSASociétéAnonymeR.C.S. Luxembourg B44.9963.2-Loans toafﬁliatedundertakings20222021Amountdue4,738,1235,142,263Valueadjustments(67,137)(74,076)Net value4,670,9865,068,187The Company provides loanstoafﬁliatedundertakings with theinterest rate range of0.48%-13.01% p.a.(2021:1.0%-13.18%p.a.) andmaturity dates until April2030.The Company providednon-interest bearing loan to ENDURANCE HOSPITALITYFINANCES.àr.l.,forwhichthematurity date is notspecified,in theamountofEUR8,043thousand (2021: EUR8,043thousand).Results of valueadjustmentsare reportedinNote17 and Note22.3.3- Participating interestsNameoftheundertaking%heldCostCostchangeCostAccumulatedimpairmentReversalofimpairment /(impairment)AccumulatedimpairmentCarryingvalueCarryingvalue31.12.202231.12.2021in202231.12.202231.12.2021in202231.12.202231.12.202131.12.2022UniborcS.A.35.00%67253725(672)(53)(725)----Total67253725(672)(53)(725)----TheNet Equityofthe undertakingis negative intheamountof EUR4,741(2021: EUR -3,944thousand),therefore theCompanyapplied valueadjustment. Results of valueadjustmentsare reportedin Note17 and Note22.3.4-Loans toundertakingswithwhich the undertaking is linked by virtueof participating interests20222021Amountdue14,43513,493Valueadjustments(4,740)(3,944)Net value9,6959,549As at31December2022,the Companyprovided loansto UniborcS.A. with an interest rateof3M EURIBOR +7% p.a.andmaturity date in May2023. Resultsof value adjustmentsare reported in Note17 and Note22.3.5- Investmentsheld as ﬁxed assetsNameStateCcy%heldCostCostchangeCostAccumulatedimpairmentReversalofimpairment(impairment)Accum.ImpairmentCarryingvalueCarryingvalueasat31.12.2231.12.2021in202231.12.2231.12.21in202231.12.2231.12.2131.12.22OtherundertakingsMCOEUR0.10%9--9(4)--(4)55IT000545313PartlyPaid Asset-BackedVaribaleReturnNotes141,95011,713153,663------141,950153,663Total141,955153,668TheCompanyusestheNetEquitymethod for thevaluation ofnon-tradableshares.Asset-Backed Variable ReturnNotes of CPI Italy130SPVS.r.l.The Company subscribed notes of PartlyPaid Asset Backed Variable ReturnNotesissued by investmentsvehicle CPI Italy130SPVS.r.l.in total nominalvalue EUR300millioninSeptember2021withinitialinvestment of EUR120,234thousand. In2022the Company paidadditionalinvestment of EUR12,125thousand (2021:EUR21,716thousand)and received partlyrepayment in theamount of EUR412thousand (2021:nil).Thenotesare repayable on30September2031.Initialmaturitydate could be extended until30September2036.3.6- Other loansAs at31December2022,theCompany recognises deposit intheamount of EUR146thousand (2021: EUR146thousand). CPIFIMSASociétéAnonymeR.C.S. Luxembourg B44.996NOTE4- CURRENTASSETS4.1- Amounts owed by afﬁliatedundertakings becomingdueand payable withinone yearTheamountsowed byafﬁliatedundertakingsbecoming dueand payablewithin oneyear containprincipals,accruedinterest,otherreceivablesand tradereceivables onamounts owed by affiliated undertakings.As thecash-poolleader,the Companyrecognised theprovided cashpoolprincipal andinterest balancewithin“Other”items.As at31December2022,the cash-pool providedprincipalis EUR63,431thousand (2021: EUR30,826thousand)with theinterest ofEUR286thousand (2021: EUR80thousand).The Company concluded FX forward/swapcontractswith severalentitieswithinCPIPG Group.Thefair value ofcontractsisreported within “Other” iteminthe total amount ofEUR11,975thousand (2021: EUR15,771thousand).20222021PrincipalInterestOtherTotalPrincipal InterestOtherTotalAmountdue83147,52179,416227,02034,90762,841 234,049331,797Valueadjustments(83)(1,358)(65)(1,506)--(1,051)--(1,051)Net value--146,16379,351225,51434,90761,790234,049330,746Providedloans bearinterest of1.6%p.a. (2021:1.69% p.a.).4.2- Amounts owed byafﬁliatedundertakingsbecomingdueand payable aftermorethan one yearTheamounts owed by afﬁliated undertakings becoming dueand payable aftermore than oneyear containaccruedinterestthat is payable togetherwith principal.20222021PrincipalInterestOtherTotalPrincipalInterestOtherTotalAmountdue--20,816--20,816--11,877--11,877Valueadjustments----------------Net value--20,816--20,816--11,877--11,8774.3- Amountsowed by undertakingswith which the undertakingis linked becoming due and payable withinoneyearTheamounts owed byundertakingswithwhichtheundertakingis linked becoming dueand payable within one year havebeen consideredas follows:20222021PrincipalInterestOtherTotalPrincipalInterestOtherTotalAmountdue--209--209--150--150Valueadjustments----------------Net value--209--209--150--1504.4- Other debtors becoming due andpayable within one yearInterestincludes interest receivable of EUR5,827 thousand (2021: EUR6,150thousand) fromNomura InternationalPLCagainst the swap enteredby the companyasmentioned inNote8.1. Theamountsowed by otherdebtorsbecoming dueandpayable within oneyearhavebeen considered as follows:20222021Principal Interest OtherTaxauthoritiesTotalPrincipal Interest OtherTaxauthoritiesTotalAmountdue--5,8278281506,8052,0056,0978271119,040Valueadjustments----(819)--(819)(190)--(818)-- (1,008)Net value--5,82791505,9861,8156,09791118,032 CPIFIMSASociétéAnonymeR.C.S. Luxembourg B44.996NOTE5- CAPITALAND RESERVESSubscribed capital and share premiumaccountAs at31December2022and2021,the subscribedcapital oftheCompany ofEUR13,145,076.29 isrepresentedby1,314,507,629 ordinary shares. Thesharesofthe Companyhaveaparvalue ofEUR0.01per share andare fullypaid. Eachshareisentitled to aprorateportionoftheproﬁts and share capital of the Company, aswellas toavoting rightandrepresentationat the time ofageneral meeting,all inaccordancewith statutory and legal provisions.Legal reserveIn accordance with the Commercial CompanyLaw,the Companymustappropriate to thelegal reserve aminimumof5% ofthe annual net proﬁtuntil such reserve equals10% of the subscribed capital. Distribution in form ofdividendsof the legalreserveis prohibited.Movements in capital and reservesSubscribedcapitalSharepremiumaccountLegalreserveProfit / lossbroughtforwardProfit / loss for thefinancial yearTOTALAsat31December202113,145784,670448,132(748,493)197,463694,917AGMon30May2022 –allocationof2021result------197,463(197,463)--Profit forthe ﬁnancialyear--------85,89085,890Asat31December202213,145784,670448,132(551,030)85,890780,807NOTE6- AMOUNTS OWED TO CREDIT INSTITUTIONSThe Company concludedthree creditfacility agreements inthetotal credit frameof EUR17,191thousand(2021: EUR7,000thousand) to grant funds forﬁnancing cash requirementsoftheCPIPG Group,with bankswithinSociétéGénérale Group. As at31December2022,unpaidarrangementand commitmentfeesare inthetotal amountof EUR22thousand (2021:EUR14thousand).NOTE7 - AMOUNTS OWED TO AFFILIATED UNDERTAKINGS7.1- Amounts owed to affiliated undertakings,becoming dueandpayable within one yearThe Company,asa cash-pool leader,recognised cash-poolopenbalanceasat31December2022asthe otheramountsowedto aﬃliated undertakings.Thefollowing amounts owed toafﬁliated undertakingsareconsidered:20222021Principal163,389170,823Interest84,385101,590Other66,97755,891Cash-poolprincipal52,27532,539Cash-pool interest17358Trade271,268Other14,50222,026Total314,751328,3047.2- Amounts owed to aﬃliated undertakings,becoming dueand payableafter more thanone year20222021Principal4,710,7645,375,377Other--2Total4,710,7645,375,379The Company received loanswith interest rate range of0.00% -6%p.a.(2021:0.00% -5.47%p.a.) and maturity datesupto27 January2031. CPIFIMSASociétéAnonymeR.C.S. Luxembourg B44.996NOTE8- OTHER CREDITORS8.1- Other creditors becoming dueandpayable withinone yearThe Company received aloan fromCPI PGin the amountof GBP196,600,000and consequentlyconcluded Cross-currencyinterest rateswapwithNomura Internationalplc. Asat31December2022,the relatedinterest amountsto EUR4,073thousand (2021: EUR4,073thousand).20222021Interest4,0734,073Other1414Total4,0874,087NOTE9- OTHER OPERATINGINCOMEOther operatingincome includesmainlyadministrativeservice feesprovided acrossthe Group. TheCompanyalsoreceivedreimbursement ofﬂights renderedto Mr.Radovan Vítek throughthe ﬂightserviceagreemententeredin2018(seeNote23).20222021Administrative services1,21922,674Flight services2,9052,389Others77184Total4,20125,227NOTE10-OTHER EXTERNAL EXPENSES20222021Rental,maintenanceand repairs272251Financialservices481158Bank fees237131Professional fees - management fee265,692Professional fees:3434,093legalfee691,229audit fee129129advisory fee44156otherfee1012,579Insurance fee3368Advertising,publications,publicrelations1716Travellingcosts1528Other various fees2025Total1,41410,762NOTE11-STAFF COSTSThe Company had8employeesin2022(2021:13).20222021Wagesandsalaries6721,018Socialsecurity costs129239Total8011,257 CPIFIMSASociétéAnonymeR.C.S. Luxembourg B44.996NOTE12- VALUEADJUSTMENTS INRESPECT OF CURRENT ASSETS20222021Aﬃliatedundertakings357(791)Other1902,048Total5471,257NOTE13-OTHER OPERATINGEXPENSES20222021Flight services2,9052,390Directors fee6161Other4599Total2,9703,050NOTE14-INCOME FROM PARTICIPATINGINTERESTSDERIVED FROMAFFILIATED UNDERTAKINGSIncome fromparticipating interests derivedfrom aﬃliatedundertakings isasfollows:20222021Dividend11,98211,458Gainfromdisposalof undertakings/disposed undertakings--4Total11,98211,462NOTE15-INCOME FROM OTHER INVESTMENTS ANDLOANSFORMING PART OFTHE FIXED ASSETS15.1- Derived fromafﬁliatedundertakingsThe loansforming partof theﬁxed assetsgeneratedinterest income of EUR217,266thousand inthe year2022(2021: EUR224,237 thousand).15.2- Other income not fromafﬁliatedundertakingsThe loans forming partof the ﬁxedassets provided to interest participatingand other parties generatedinterest incomeofEUR1,001thousand (2021: EUR857thousand).The Company receivedvariableincome fromnotesof Partly PaidAsset Backed VariableReturn NotesissuedbyinvestmentsvehicleCPI Italy130SPVS.r.l. (see Note3.5).NOTE16- OTHER INTERESTRECEIVABLEAND SIMILAR INCOME16.1- Derived fromafﬁliatedundertakings20222021Interest2,837498Foreigncurrencyexchange gains21,8208,430Fairvalue of FX forwardcontract10,15617,434Total34,81326,36216.2- Other interestand similar income20222021Interest7,9248,233Foreigncurrencyexchange gains1,1372,275Other12319Total9,18410,527 CPIFIMSASociétéAnonymeR.C.S. Luxembourg B44.996NOTE17- VALUEADJUSTMENTSINRESPECT OF FINANCIALASSETSAND OF INVESTMENTS HELDASCURRENTASSETSValue adjustments of ﬁnancial assetsareas follows:20222021Shares(9,005)30,471Brno PropertyInvestXV., a.s. (formerly Svitavy Property Development,a.s.)424Bubenská1,a.s.--5,563Camuzzi,a.s.46(210)CPI - Krásné Březno,a.s.3890CPI -LandDevelopment, a.s.--2,434CPI PignaS.r.l.--10CPI REV ItalyIIS.r.l.(1,437)10CPI South,s.r.o.--47CPI Property Group S.A.--10,221Development Doupovská,s.r.o.72128HAGIBOROFFICEBUILDING, a.s.,VLIKVIDACI(liquidated)--6,852JIHOVÝCHODNÍ MĚSTO,a.s.5621,988KarvináProperty Development,a.s.--750LandProperties,a.s.(8,507)--MarkiReal Estate sp.z o.o. wlikwidacji128130MQM Czech,a.s.--855Nupakya.s.139569PolygonBC, a.s.--1,638Strakonice Property Development, a.s.315STRMGama,a.s.--31UNIBORCS.A.(53)(672)Other--(2)Loans6,150(22,790)Aﬃliatedundertakings6,946(18,846)Other(796)(3,944)Total(2,855)7,681The positive value is decreaseof value adjustments,the negativevalue is increase ofvalueadjustments.NOTE18-INTERESTPAYABLEAND SIMILAR EXPENSES18.1- Concerning aﬃliated undertakings20222021Interest129,699163,576Foreigncurrencyexchange losses41,836(20,274)Loss ondisposalof shares in aﬀiliated--14,678Loss ondisposalamounts owed by affiliated due to liquidation4,3246,408Other2150Total175,880164,438ReversalofFXnon-realised losses fromprevious year exceededcreationofnewFXnon-realised losses.18.2- Other interest andsimilar expenses20222021Interest4,3354,352Foreigncurrencyexchange losses4,496401Loss onSPOTtransactions16885Loss ondisposalof financial ﬁxedassets215--Other7385Total9,2874,923 CPIFIMSASociétéAnonymeR.C.S. Luxembourg B44.996NOTE19- TAX ON PROFITORLOSSThe Company is subjecttoLuxembourg income taxandNetwealth tax. Income taxwasnil in2022and2021.20222021Netwealthtax917Total917NOTE20- OFF BALANCESHEET COMMITMENTSIn relationtothe strategy ofdeveloping its ﬁnancingactivity,theCompany signed several creditfacilityagreements.The Company hasprovided credit facility to following entities:Type of entityDrawdownLimit2022DrawdownLimit2021Aﬃliatedundertakings2,872,440,000CZK2,759,940,000CZK219,005,462EUR200,500,000EURAﬃliatedundertakings – entitiesinCPI Group52,485,860,348CZK53,531,860,348CZK7,492,398,540EUR3,407,500EUR225,782,159GBP187,350,000GBP92,202,469,600HUF137,186,421,600HUF150,000,000RON150,000,000RONOthers (participating interests, related)314,644,443EUR310,337,511EURThe Company has been providedcredit facilityagreements from followingentities:Type of entityDrawdownLimit2022DrawdownLimit2021Aﬃliatedundertakings150,000,000CZK150,000,000CZK95,000,000EUR20,000,000EUR86,000,000PLN86,000,000PLNAﬃliatedundertakings – entitiesinCPI Group4,066,800,000CZK4,426,800,000CZK4,931,383,485EUR6,047,830,335EUR196,600,000GBP196,600,000GBP75,000,000CHF75,000,000CHFNOTE21- REMUNERATION OF THE MEMBERSOFTHE BOARD OF DIRECTORSThe Board attendance compensationfortheyear2022amounts toEUR 61,000(2021:EUR61,000). TheAnnual GeneralMeeting heldon28May2014resolvedtoapprove,withthe eﬀect as of1January2014,thepayment ofattendance feestoallindependent, non-executive Directors of theCompany intheamountofEUR3,000per calendarmonth asa basefeeandempowered theBoardof Directorsto decide atits sole discretionabout thepayment ofadditionalfeesup toEUR3,000percalendarmonth to independent, non-executive Directors oftheCompany. CPIFIMSASociétéAnonymeR.C.S. Luxembourg B44.996NOTE22- RELATEDPARTY TRANSACTIONSThe Company considers entities reported asaﬀiliated undertakings:-entity, that are owned by theCompany (directlyor indirectly),-related party owned directlyorindirectly by CPI Property GroupS.A.The Company considersrelated party reported as other:-Mr. Radovan Vítekand relatedparty owned by Mr. Radovan Vítek, theultimate beneﬁcial owner of theCompany(in2021asafﬁliated undertakings).Entity owned by the Company (directlyor indirectly)in2022Brno Property InvestXV.,a.s.(formerlySvitavy PropertyDevelopment,a.s.)Brno Property InvestXV.,s.r.o.(mergedwithSvitavy PropertyDevelopment,a..s.)Bubenská1,a.s.mergedwith CPIOﬃceBusiness Center,s.r.o.Bubny Development,s.r.o.BYTY PODKOVA,a.s.Camuzzi,a.s.CDProperty s.r.o.CPI - Krásné Březno,a.s.CPI -Land Development, a.s.CPI Park Chabařovice,s.r.o.CPI ParkPlzeň,s.r.o.CPI Park Žďárek,a.s.CPIPigna S.r.l.CPIPodhorskýPark,s.r.o.CPI REV Italy IIS.r.l.CPISouth,s.r.o.Darilia,a.s.Data Trade s.r.o. vlikvidaci(liquidated)Development Doupovská,s.r.o.DianaPropertySp. z o.o.Equator IV Oﬃcessp. zo.o.Estate Grand,s.r.o.EurocentrumOﬃces sp.z o.o.FAMIACO ENTERPRISESCOMPANY LIMITEDHAGIBOR OFFICEBUILDING,a.s.,VLIKVIDACI (liquidated)Industrial Park Stříbro,s.r.o.JIHOVÝCHODNÍ MĚSTO,a.s.KarvináProperty Development,a.s.vlikvidaciLandProperties,a.s.Les Mas du FiguierMarki Real Estate sp. z o.o. wlikwidacjiMQM Czech,a.s.NOVÁ ZBROJOVKA, s.r.o.Nupaky a.s.Pietroni, s.r.o.PolygonBC,a.s.Rezidence Kunratice, s.r.o.Rezidence Pragovka,s.r.o.SCP ReﬂetsStrakonice PropertyDevelopment,a.s.STRM Alfa,a.s.STRM Beta,a.s.STRM Gama,a.s.UniborcS.A.Vysočany Oﬃce,a.s.WFC Investmentssp. zo.o.Relatedparty owned directly or indirectlyby CPI Property GroupS.A.,with themthe Company recognised transactions in2022and20211Bishops AvenueLimitedAgrome s.r.o.AIRPORT CITYINGATLANBEFEKTETÉSI Kft.Airport City PhaseBKft.ALIZÉPROPERTY a.s.AndrassyHotel Zrt.Andrássy Real Kft.Anguslands.r.o.Arena Corner Kft.AtriumComplexsp. zo.o.Balvinder,a.s.Baron Puglia S.r.l.Baudry Beta,a.s.BAYTON Alfa,a.s.BAYTON Gama,a.s.BC99Oﬃce ParkKft.Beroun Property Development,a.s.Best PropertiesSouth, a.s.Biochovs.r.o.Biopotravinys.r.o.BPT Development,a.s.BrandýsLogistic,a.s.Brno DevelopmentServices, s.r.o.BRNO INN,a.s.Brno Property Development,a.s.Březiněves,a.s.Byty Lehovec, s.r.o.CAMPONA Shopping Center Kft.Carpenter Invest,a.s.CB Property Development, a.s.CentralTower81sp. z o.o.City Gardens Sp. z o.o.City Market Dunakeszi Kft.(formerly Buy-Way DunakesziKft.)City MarketSoroksárKft.(formerly Buy-Way Soroksár Kft.)Conradian,a.s.CPI - Bor,a.s.CPI - Horoměřice,a.s.CPI - Orlová,a.s.CPI - Real Estate,a.s.CPI - Zbraslav,a.s.CPI Beet, a.s.CPI Blatiny, s.r.o.(formerly CPITercie, s.r.o.)CPI BYTY,a.s.CPI Delta,a.s.(mergedwithCPIRetail Portfolio VIII s.r.o.)CPI East,s.r.o.CPI Energo,a.s.CPI Facility Management Kft.CPI Facility Slovakia,a.s.CPI Facility Slovakia,a.s.CPI Finance CEE,a.s.CPI Flats,a.s.CPI Green,a.s.CPI Hotels EuropeumKft.CPI HotelsPoland sp.z o.o.CPI Hotels Properties,a.s.CPI Hotels,a.s.CPI Hungary Investments Kft.CPI Hungary Kft.CPI IMMOCPI Jihlava Shopping, a.s.CPI Kappa,s.r.o.CPI Kvinta, s.r.o.CPI Management,s.r.o.CPI Národní,s.r.o.CPI OﬃceBusiness Center,s.r.o.CPI Oﬃce Prague,s.r.o.CPI PalmovkaOﬃce,s.r.o.mergedwith CPI OfficeBusiness Center,s.r.o.CPI Poland Property Managementsp. z o.o.CPI PolandSp.zo.o.CPI Property a Facility,s.r.o.(merged with CPIServices,a.s.)CPI Property GroupS.A.CPI Reality, a.s.CPI Retail MB s.r.o.(mergedwithNymburk PropertyDevelopment,a.s.)CPI Retail OneKft.CPI RETAILPORTFOLIOHOLDINGKft.CPI Retail PortfolioI, a.s.CPI Retail PortfolioII, a.s.CPI Retail PortfolioIV,s.r.o. CPIFIMSASociétéAnonymeR.C.S. Luxembourg B44.996CPI Retail PortfolioV,s.r.o.(mergedwithCPI RetailPortfolioI,a.s.)CPI RetailPortfolio VI, s.r.o.(mergedwithCPI RetailPortfolioI,a.s.)CPI Retail PortfolioVIIIs.r.o.CPI Retails ONE,a.s.CPI RetailsRosa s.r.o.CPI Retails THREE,a.s.CPI Retails TWO, a.s.CPISekunda, s.r.o.CPIServices,a.s.CPIShopping MB,a.s.CPIShoppingTeplice,a.s.CPI Théta,a.s.CPI Žabotova,a.s.CPIPG ManagementS.àr.l.CTDevelopment sp. z o.o.Czech Property Investments,a.s.Čadca Property Development,s.r.o.Čáslav Investments,a.s.Českolipskáfarmas.r.o.Českolipskázemědělská a.s.Děčínskázemědělská a.s.Diana Development sp. z o.o.DucaPuglia S.r.l.EMH South, s.r.o.ENDURANCE HOSPITALITYASSET S.àr.l.ENDURANCE HOSPITALITYFINANCES.àr.l.Equator II Developmentsp. zo.o.Equator Real sp.zo.o.EuropeumKft.Farhan,a.s.FarmaPloučnicea.s.Farma Svitavkas.r.o.Farmy Frýdlanta.s.FELICIASHOPPING CENTER SRLFLPropertyDevelopment,a.s.Futurum HKShopping,s.r.o.FVE CHZs.r.o.Gadwall,Sp. z o.o.Gateway Oﬃce ParkKft.GCA Property Developmentsp. zo.o.Gebauer Höfe LiegenschaftenGmbHGewerbesiedlungs-GessellschaftmbHGSG Asset GmbH &Co.Verwaltungs KGGSG Berlin Invest GmbHGSG Europa Beteiligungs GmbHGSG GewerbehöfeBerlin1. GmbH& Co. KGGSG GewerbehöfeBerlin2.GmbH& Co. KGGSG Gewerbehöfe Berlin3. GmbH& Co. KGGSG GewerbehöfeBerlin4.GmbH& Co. KGGSG GewerbehöfeBerlin5. GmbH& Co. KGHD Investments.r.o.HECF Vestec2s.r.o.(formerlyCPIVestec, s.r.o.)Hightech ParkKft.Hospitality investS.àr.l.HOTELU PARKU, s.r.o.Hraničář,a.s.IGY2CB,a.s.IMBEA IMMOEASTBeteiligungsverwaltung GmbHISNyír Kft.ISZalaKft.JAGRAspol. sr.o.Janáčkovo nábřeží15, s.r.o.Jeseník Investments,a.s.JetřichoviceProperty,a.s.Kerina,a.s.KOENIG Shopping,s.r.o.Komárno Property Development,a.s.Kosmonosy Investments,s.r.o.Kosmonosy PropertyDevelopment,s.r.o.(mergedwithNymburk PropertyDevelopment,a.s.)Kunratickáfarma, s.r.o.LDPraha,a.s.Le ReginaWarsaw Sp.zo.o.Levice Property Development,a.s.Lockhart,a.s.Lucemburská46, a.s.Marissa Omikrón,a.s.Marissa Tau,a.s.Marissa Théta,a.s.MarissaWest,a.s.MarissaYellow,a.s.MarissaYpsilon,a.s.MARRETIMs.r.o.MB PropertyDevelopment,a.s.(mergedwithNymburk PropertyDevelopment,a.s.)Michalovce PropertyDevelopment,a.s.MMR RUSSIAS.àr.l.MoniuszkiOﬃce sp. z o.o.MUXUM,a.s.NaPoříčí,a.s.New Age Kft.Nymburk PropertyDevelopment,a.s.OC Nová Zdaboř a.s.OCSpektrum, s.r.o.OFFICE CENTERHRADČANSKÁ,a.s.mergedwith CPI OﬀiceBusinessCenter,s.r.o.Olomouc Building,a.s.Orchard Hotel a.s.Outlet Arena Moravia,s.r.o.OxfordTower sp.z o.o.OZ Trmice,a.s.OzricsKft.PankrácEasta.s.(formerly MarissaGama,a.s.)PankrácWesta.s.(formerlyCPIOmikrón,a.s.)Pelhřimov PropertyDevelopment,a.s.Platnéřská10s.r.o.POLMA1S.A.Pólus ShoppingCenter Zrt.PovažskáBystricaPropertyDevelopment,a.s.PrievidzaPropertyDevelopment,a.s.PROJECTFIRST a.s.ProjektNisa,s.r.o.Projekt Zlatý Anděl, s.r.o.Prosta69Sp. z o.o.Prostějov Investments,a.s.Příbor Property Development, s.r.o.(mergedwithCPIRetailPortfolio VIIIs.r.o.)PV - Cvikov s.r.o.RadomProperty Developmentsp.zo.o.RealEstate Energy Kft.RembertówPropertyDevelopment sp. z o.o.Residence Belgická,s.r.o.Residence IzabellaZrt.Rezidence Jančova, s.r.o.Rezidence Malkovského,s.r.o.RSBCKvartas.r.o.(formerlyCPIKvarta, s.r.o.)Savile Row1LimitedSpojené elektrárny,s.r.o.Spojené farmy a.s.STProjectLimitedStatekKravaře,a.s.Statenice PropertyDevelopment,a.s.Svitavy Property Alfa,a.s.Tachov Investments,s.r.o.TARNÓW PROPERTYDEVELOPMENTsp.z o.o.Telč Property Development, a.s.Tepelné hospodářství Litvínovs.r.o.Trebišov PropertyDevelopment,s.r. o.Třinec Investments,s.r.o.Třinec Property Development,a.s.Tyršova6,a.s.U svatého Michala,a.s.Uchaux LimitedVTeamPrague, s.r.o.Verneřický Angusa.s.Vigano,a.s.Zamość Property Developmentsp.zo.o.ZamośćSadowaPropertyDevelopment sp. z o.o.Zelená farmas.r.o.Zelená louka s.r.o.ZEMSPOLs.r.o. CPIFIMSASociétéAnonymeR.C.S. Luxembourg B44.996ZET.office,a.s.Zgorzelec Property Developmentsp. z o.o.Ždírec Property Development,a.s.(mergedwith CPI Retail PortfolioVIIIs.r.o.)Relatedpartyowned by Mr. Radovan Vítek reportedasother(2021: reported asafﬁliatedundertakings in)Aspermont S.àr.l.Boville S.àr.l.CPI Yellow,a.s.CPIPG HoldingS.àr.l.EﬁmacorS.à r.l.GAMALA LIMITEDLarnoyaInvestS.àr.l.Logan EstatesS.àr.l.–Ed HughesPOLMA1S.A. (merged with CPIPG ManagementS.àr.l – until30.06.2021)RaventoS.àr.l.SenalesInvestS.àr.l.Turf Praha a.s.Vítek RadovanWHIPLASHEQUITIESS.àr.l.Other related party reported as Other linked bymanagement of the Company – investments vehicleCPI Italy130SPVS.r.l.PAC Italy130SPVS.r.l.Relatedpartybalances20222021ReceivablesFinancialfixedassetsCurrentassetswithinone yearCurrentassetsaftermorethanone yearTotalFinancialfixedassetsCurrentassetswithinone yearCurrentassetsaftermorethanone yearTotalNote3.23.43.54.14.34.2--3.23.44.14.34.44.2--Owned by the Company(directly,indirectly) -aﬀiliated242,45911,984--254,443223,76411,471--235,235Brno PropertyInvestXV., a.s.(formerly Svitavy PropertyDevelopment, a.s.)1,10336--1,13990020--920Brno PropertyInvestXV.,s.r.o. (merged withSvitavyProperty Development, a..s.)--------1031--104Bubny Development,s.r.o.32,7062,404--35,11029,1783,526--32,704Camuzzi,a.s.--------1,20120--1,221CD Property s.r.o.9,7622,044--11,80611,7051,489--13,194CPI - Krásné Březno,a.s.72610--73659353--646CPI -LandDevelopment, a.s.8,9731,215--10,1887,0591,135--8,194CPI Park Plzeň,s.r.o.1----1--------CPI ParkŽďárek,a.s.--------3,021357--3,378CPI PignaS.r.l.14,09737--14,1348,048290--8,338CPI REV ItalyIIS.r.l.12,981101--13,0822,839172--3,011CPI South,s.r.o.1,19611--1,20727826--304DianaProperty Sp.z o.o.2,42676--2,5022,57136--2,607Equator IV Oﬃces sp.z o.o.24,640207--24,84726,346578--26,924Estate Grand,s.r.o.63810--6485859--594Eurocentrum Offices sp.z o.o.95,198806--96,00497,9971,240--99,237IndustrialPark Stříbro,s.r.o.--2,519--2,519--301--301JIHOVÝCHODNÍ MĚSTO,a.s.4997--50639432--426LandProperties,a.s.----------3--3Les Mas duFiguier8,16452--8,2167,59144--7,635MQM Czech,a.s.5628--57045972--531 CPIFIMSASociétéAnonymeR.C.S. Luxembourg B44.99620222021ReceivablesFinancialfixedassetsCurrentassetswithinone yearCurrentassetsaftermorethanone yearTotalFinancialfixedassetsCurrentassetswithinone yearCurrentassetsaftermorethanone yearTotalNote3.23.43.54.14.34.2--3.23.44.14.34.44.2--NOVÁ ZBROJOVKA,s.r.o.14,736510--15,2469,3531,648--11,001Nupakya.s.3135--31829025--315Pietroni,s.r.o.2----2--------PolygonBC, a.s.5741,793--2,3672,184162--2,346Rezidence Kunratice,s.r.o.2682--270--------Rezidence Pragovka,s.r.o.2,66246--2,7081,18671--1,257SCPReﬂets8,49656--8,5528,52955--8,584Strakonice PropertyDevelopment, a.s.631--64526--58STRM Alfa,a.s.--------120----120STRMBeta ,a.s.76912--78159563--658STRMGama,a.s.68411--69541826--444VysočanyOﬃce, a.s.2205--22516911--180Owned by the Company(directly,indirectly) -interestparticipated9,695209--9,9049,549150--9,699Uniborc S.A.9,695209--9,9049,549150--9,699CPI Group's entity4,428,523213,53620,8164,662,8754,844,421320,07611,8785,176,3751Bishops Avenue Limited138,208--14,233152,441129,798--8,923138,721Agromes.r.o.--260--260--124--124AIRPORT CITYINGATLANBEFEKTETÉSI Kft.--------14,743215--14,958Airport City Phase B Kft.--------1,91425--1,939ALIZÉPROPERTYa.s.--------821--83AndrassyHotel Zrt.3,618137--3,7553,882158--4,040Andrássy Real Kft.11,856229--12,08511,982229--12,211Anguslands.r.o.--120--120--49--49ArenaCorner Kft.--------35,302622--35,924Balvinder,a.s.2,97036--3,0063,536587--4,123Baudry Beta,a.s.9,820782--10,60210,0591,324--11,383BAYTONAlfa,a.s.12,259632--12,89111,623900--12,523BC99OﬃceParkKft.--------33,974560--34,534BerounPropertyDevelopment, a.s.--------9,487808--10,295Best PropertiesSouth, a.s.64,0146,821--70,83564,6756,242--70,917Biochov s.r.o.--178--178--85--85Biopotraviny s.r.o.--230--230--87--87BrandýsLogistic, a.s.--------24,3626,308--30,670Brno Development Services,s.r.o.7,5741,872--9,4461,385614--1,999BRNOINN, a.s.--7--7--81--81Březiněves, a.s.2,23048--2,2781,898376--2,274CAMPONAShopping CenterKft.48,0221,222--49,24462,8425,560--68,402Carpenter Invest,a.s.2,438445--2,8832,220208--2,428CB PropertyDevelopment,a.s.--------2,3662,299--4,665CityMarketDunakeszi Kft.(formerly Buy-Way DunakesziKft.)--------4,67185--4,756CityMarketSoroksár Kft.(formerly Buy-Way SoroksárKft.)--------3,36567--3,432Conradian, a.s.4,751472--5,2234,499241--4,740CPI - Bor,a.s.23,2001,985--25,18512,2071,725--13,932 CPIFIMSASociétéAnonymeR.C.S. Luxembourg B44.99620222021ReceivablesFinancialfixedassetsCurrentassetswithinone yearCurrentassetsaftermorethanone yearTotalFinancialfixedassetsCurrentassetswithinone yearCurrentassetsaftermorethanone yearTotalNote3.23.43.54.14.34.2--3.23.44.14.34.44.2--CPI -Horoměřice,a.s.491--5043----43CPI - Orlová, a.s.1,28234--1,3161,127163--1,290CPI - Real Estate,a.s.2,85837--2,8952,313473--2,786CPI -Zbraslav,a.s.----------147--147CPI Beet,a.s.25236--28816921--190CPI Blatiny,s.r.o. (formerlyCPI Tercie,s.r.o.)2,963131--3,094--------CPI BYTY,a.s.84,345891--85,23689,537982--90,519CPI Delta,a.s.(merged withCPI RetailPortfolio VIII s.r.o.)--------1,687141--1,828CPIEast,s.r.o.75,5541,260--76,81478,4162,538--80,954CPIEnergo, a.s.2241--225--3--3CPIFacility ManagementKft.--6--6--------CPIFinance CEE,a.s.----------1--1CPIHotelsProperties,a.s.17,120365--17,48515,755772--16,527CPIHotels,a.s.2,800300--3,1007,3631,861--9,224CPIHungaryKft.--202--202--------CPI IMMO3,06429--3,0933,06357--3,120CPI Kappa,s.r.o.81279--89175512--767CPI Management,s.r.o.--2,791--2,791--1,166--1,166CPINárodní,s.r.o.92,3592,085--94,444--7,277--7,277CPI Oﬀice Business Center,s.r.o.91,2101,896--93,10688,1342,206--90,340CPI Oﬀice Prague,s.r.o.3,3717,173--10,544--5,751--5,751CPI PolandPropertyManagement sp.zo.o.--438--438--------CPIPolandSp.zo.o.--1,961--1,961--65--65CPI Property Group S.A.2,159,961108,338--2,268,2992,488,31091,752--2,580,062CPI Reality, a.s.50,002896--50,89847,87914,060--61,939CPI RetailOne Kft.3,210120--3,3304,66387--4,750CPI RETAILPORTFOLIOHOLDINGKft.24,7881,024--25,81226,907665--27,572CPI RetailPortfolio I,a.s.12,099219--12,3186,14410,802--16,946CPI RetailPortfolio II,a.s.--------3,623108--3,731CPI RetailPortfolio IV,s.r.o.--------1,304107--1,411CPI RetailPortfolio V,s.r.o.(merged with CPIRetailPortfolio I, a.s.)--------3,498302--3,800CPI RetailPortfolio VI,s.r.o.(merged with CPIRetailPortfolio I, a.s.)--------1,423112--1,535CPI RetailPortfolio VIII s.r.o.7,191131--7,3223,853434--4,287CPI RetailsONE, a.s.--------8,27310,724--18,997CPI Retails Rosas.r.o.--------3,878358--4,236CPI Retails THREE, a.s.--------27,2222,486--29,708CPI Retails TWO,a.s.--------7,11310,970--18,083CPI Sekunda,s.r.o.1,49027--1,51780412--816CPI Services,a.s.--13,076--13,076--635--635CPI Shopping MB,a.s.34,360504--34,86433,50312,465--45,968CPI ShoppingTeplice,a.s.46,137806--46,94346,87711,530--58,407CPI Théta,a.s.4,380141--4,521--------CPIŽabotova, a.s.4,109266--4,375--------CPIPG Management S.à r.l.173,0844,010--177,09446,352900--47,252Czech Property Investments,a.s.421,7546,093--427,847428,44423,705--452,149 CPIFIMSASociétéAnonymeR.C.S. Luxembourg B44.99620222021ReceivablesFinancialfixedassetsCurrentassetswithinone yearCurrentassetsaftermorethanone yearTotalFinancialfixedassetsCurrentassetswithinone yearCurrentassetsaftermorethanone yearTotalNote3.23.43.54.14.34.2--3.23.44.14.34.44.2--ČadcaProperty Development,s.r.o.--------3,188251--3,439ČáslavInvestments, a.s.--------1,978200--2,178Českolipskáfarmas.r.o.--148--148--73--73Českolipská zemědělskáa.s.--260--260--124--124Děčínská zemědělská a.s.--227--227--121--121DianaDevelopment sp.z o.o.--13--13--------EMHSouth,s.r.o.6,088749--6,8376,993552--7,545ENDURANCE HOSPITALITYASSET S.à r.l.--9--9--3--3ENDURANCE HOSPITALITYFINANCES.àr.l.8,0439--8,052--3--3Equator IIDevelopment sp. zo.o.--141--141--------EquatorReal sp.z o.o.--321--321--------Europeum Kft.21,750667--22,41723,3831,654--25,037Farhan, a.s.47,3817,814--55,19551,8874,358--56,245FarmaPloučnicea.s.--208--208--122--122FarmaSvitavkas.r.o.--106--106--55--55FarmyFrýdlanta.s.--325--325--155--155FLProperty Development, a.s.1889--19717820--198Futurum HKShopping,s.r.o.83,3111,440--84,75185,4763,229--88,705Gadwall,Sp.z o.o.--2--2--------GatewayOﬃce ParkKft.--------9,267149--9,416GCAProperty Developmentsp.zo.o.--4--4--------Gewerbesiedlungs-Gessellschaft mbH--658--658--172--172HDInvestment s.r.o.1----146----46HECFVestec2s.r.o. (formerlyCPI Vestec,s.r.o.)--------4,841552--5,393Hightech ParkKft.3,23554--3,2893,63662--3,698Hospitalityinvest S.àr.l.--17--17--3--3HOTELU PARKU,s.r.o.--5--5--105--105Hraničář,a.s.13,146198--13,34412,810555--13,365IGY2CB, a.s.--------1,896898--2,794ISNyírKft.2,65057--2,7072,62742--2,669ISZalaKft.7,245291--7,5367,983177--8,160JAGRAspol. s r.o.--98--98--47--47Janáčkovo nábřeží15,s.r.o.6,428478--6,9067,406819--8,225JeseníkInvestments, a.s.--------2,278211--2,489Kerina, a.s.6,61979--6,6986,249385--6,634KOENIGShopping,s.r.o.44,598796--45,39445,8852,459--48,344Komárno PropertyDevelopment, a.s.--------1,547117--1,664Kunratickáfarma,s.r.o.--------2,62411--2,635LDPraha, a.s.4,50145--4,5464,504159--4,663Le Regina WarsawSp.z o.o.--2--2--------Levice PropertyDevelopment, a.s.--------3,376311--3,687Lockhart, a.s.21,666319--21,98524,4651,086--25,551Lucemburská46, a.s.5,44643--5,4894,990654--5,644MarissaOmikrón, a.s.15,047247--15,29414,1721,387--15,559MarissaTau,a.s.15,323266--15,58915,502268--15,770MarissaThéta,a.s.3693--372608110--718 CPIFIMSASociétéAnonymeR.C.S. Luxembourg B44.99620222021ReceivablesFinancialfixedassetsCurrentassetswithinone yearCurrentassetsaftermorethanone yearTotalFinancialfixedassetsCurrentassetswithinone yearCurrentassetsaftermorethanone yearTotalNote3.23.43.54.14.34.2--3.23.44.14.34.44.2--Marissa West, a.s.69,6116,926--76,53779,4522,865--82,317MarissaYpsilon,a.s.--------35,2483,186--38,434MARRETIM s.r.o.4578--46592015--935Michalovce PropertyDevelopment, a.s.--------3,307335--3,642MMR RUSSIAS.à r.l.--17--17--------Moniuszki Oﬀice sp.z o.o.--23--23--------MUXUM,a.s.6,785113--6,8986,102633--6,735NaPoříčí, a.s.25,6853,739--29,42428,18912,556--40,745New Age Kft.90781--98878639--825Nymburk PropertyDevelopment, a.s.1,67423--1,6971,852571--2,423OC Nová Zdabořa.s.--------9,043792--9,835OCSpektrum, s.r.o.--------14,0511,834--15,885Olomouc Building, a.s.19,598392--19,99018,8791,134--20,013Orchard Hotela.s.5,661107--5,7685,307341--5,648Oxford Towersp.z o.o.--4,261--4,261--------OZTrmice, a.s.41710--427--------OzricsKft.2,566122--2,6882,63199--2,730PelhřimovPropertyDevelopment, a.s.--------2,420279--2,699Platnéřská10s.r.o.694--73574--61Pólus Shopping Center Zrt.58,6221,273--59,89563,5892,400--65,989PovažskáBystricaPropertyDevelopment, a.s.--------81877--895PrievidzaPropertyDevelopment, a.s.--------2,366176--2,542ProjektNisa,s.r.o.76,2751,451--77,72675,21012,837--88,047ProjektZlatýAnděl,s.r.o.76,3361,290--77,62672,6345,835--78,469Prosta69Sp.z o.o.--467--467--------Prostějov Investments,a.s.1,84324--1,867962307--1,269PříborProperty Development,s. r.o. (merged with CPI RetailPortfolio VIII s.r.o.)--------49877--575PV - Cvikov s.r.o.--195--195--93--93Real EstateEnergyKft.261--27982--100Residence Belgická,s.r.o.1,48619--1,5051,636187--1,823Residence Izabella Zrt.3,521155--3,6763,38474--3,458Rezidence Jančova,s.r.o.1,10534--1,1391,06336--1,099Rezidence Malkovského,s.r.o.1,82139--1,860--------Savile Row1Limited52,335--6,48058,81563,552--2,92466,476Spojené elektrárny,s.r.o.2061--207--------Spojené farmy a.s.--467--467--133--133Statek Kravaře,a.s.--431--431--401--401Statenice PropertyDevelopment, a.s.2,67440--2,7142,173273--2,446SvitavyPropertyAlfa,a.s.--------8,083815--8,898Tepelné hospodářstvíLitvínovs.r.o.--270--27050116--517Trebišov PropertyDevelopment,s.r. o.--------3,36843--3,411TřinecInvestments,s.r.o.--------2,076196--2,272Třinec PropertyDevelopment, a.s.3,42996--3,5252,728297--3,025Tyršova6,a.s.3,16128--3,1893,43528--3,463 CPIFIMSASociétéAnonymeR.C.S. Luxembourg B44.99620222021ReceivablesFinancialfixedassetsCurrentassetswithinone yearCurrentassetsaftermorethanone yearTotalFinancialfixedassetsCurrentassetswithinone yearCurrentassetsaftermorethanone yearTotalNote3.23.43.54.14.34.2--3.23.44.14.34.44.2--U svatéhoMichala,a.s.3,26770--3,3373,189221--3,410Uchaux Limited3,073--1033,176846--31877VTeam Prague,s.r.o.1551,597--1,7524,4181,902--6,320VerneřickýAngus a.s.--190--190--84--84Vigano,a.s.11,6641,011--12,67510,472517--10,989Zelenáfarmas.r.o.--171--171--69--69Zelenáloukas.r.o.--98--98--47--47ZEMSPOLs.r.o.--153--153--73--73ZET.oﬀice,a.s.29,2711,188--30,45929,4061,010--30,416Ždírec PropertyDevelopment, a.s. (mergedwith CPI RetailPortfolio VIIIs.r.o.)--------57378--651Mr. RadovanVítekandhisentityreportedasaﬀilitated----------678--678EfimacorS.àr.l.----------3--3Ravento S.à r.l.----------3--3Vítek Radovan----------672--672Other related reportedasOther--149--149--15--15Aspermont S. à r.l.--3--3--3--3Boville S. à r.l.--3--3--3--3CPIPGHolding S.àr.l.--3--3--3--3EfimacorS.àr.l.--3--3--------LarnoyaInvest S.àr.l.--8--8--3--3Logan EstatesSarl--3--3--3--3Ravento S.à r.l.--3--3--------Senales Invest S.à r.l.--3--3--------Vítek Radovan--117--117--------WHIPLASH EQUITIES S.àr.l.--3--3--------Other related reportedasOther linked by managementofthe Company153,663----153,663141,9491,850--143,799CPI Italy130SPV S.r.l.153,663----153,663141,949----141,949PAC Italy130SPV S.R.L.----------1,850--1,850Total4,834,340225,87820,8165,081,0345,219,683 334,24011,8785,565,123 CPIFIMSASociétéAnonymeR.C.S. Luxembourg B44.99620222021PayablesOwed toaﬀilitatedpayablewithinone yearOwed toaﬀilitatedpayableaftermorethanone yearOthercreditorspayablewithinone yearTotalOwed toaﬀilitatedpayablewithinone yearOwed toaﬀilitatedpayableaftermorethanoneyearOthercreditorspayablewithinone yearTotalNote7.17.28.1--7.17.28.1--Owned by the Company(directly,indirectly) -aﬀiliated8,17770,855--79,03212,029----12,029BYTY PODKOVA, a.s.68923--9911,676----1,676Camuzzi,a.s.58----58--------CD Property s.r.o.481----481508----508CPI South,s.r.o.12----1227----27Darilia,a.s.13----1313----13Development Doupovská,s.r.o.261--6363----63DianaProperty Sp.z o.o.117----117--------Equator IV Oﬃces sp.z o.o.393----393--------Eurocentrum Offices sp. zo.o.2,247----2,247--------IndustrialPark Stříbro,s.r.o.982,543--2,6412,906----2,906LandProperties,a.s.32507--539533----533MarkiReal Estate sp.z o.o.wlikwidacji--4,133--4,1333,913----3,913MQM Czech,a.s.6----6--------NOVÁ ZBROJOVKA,s.r.o.1----130----30Rezidence Pragovka,s.r.o.121----121--------STRM Alfa,a.s.68862,688--63,376--------WFCInvestments sp.z o.o.3,840----3,8402,360----2,360CPI Group's entity306,5694,639,908--4,946,477316,2745,375,378--5,691,6521Bishops Avenue Limited26----26357----357AndrassyHotel Zrt.242----242--------Atrium Complex sp.z o.o.251----251--------Balvinder,a.s.34----342----2Baudry Beta,a.s.150----150389----389BAYTONGama, a.s.3----38----8BerounPropertyDevelopment, a.s.--------114----114Best PropertiesSouth, a.s.--------24----24BPT Development,a.s.180--8187----87BrandýsLogistic, a.s.--------859----859BRNOINN, a.s.3,117----3,1173,176----3,176Brno PropertyDevelopment, a.s.18123,989--24,17025,119----25,119Březiněves, a.s.566----566--------BytyLehovec,s.r.o.141,319--1,3335,054----5,054CAMPONAShoppingCenter Kft.81----81--------CentralTower81sp.zo.o.160----1601----1City Gardens Sp.z o.o.492----49266----66CPI - Bor,a.s.419----41975----75CPI - Real Estate,a.s.108----10817----17CPI -Zbraslav,a.s.72546--618524----524CPI Blatiny,s.r.o. (formerlyCPI Tercie,s.r.o.)--------1----1CPI BYTY,a.s.3,159----3,1593,723----3,723CPI Delta,a.s. (merged withCPI RetailPortfolio VIIIs.r.o.)--------53----53CPIEast,s.r.o.2,769----2,7692,010----2,010CPIEnergo, a.s.434----434219----219 CPIFIMSASociétéAnonymeR.C.S. Luxembourg B44.99620222021PayablesOwed toaﬀilitatedpayablewithinone yearOwed toaﬀilitatedpayableaftermorethanone yearOthercreditorspayablewithinone yearTotalOwed toaﬀilitatedpayablewithinone yearOwed toaﬀilitatedpayableaftermorethanoneyearOthercreditorspayablewithinone yearTotalNote7.17.28.1--7.17.28.1--CPIFacility ManagementKft.499----499--------CPIFacilitySlovakia,a.s.165----165--------CPIFinance CEE,a.s.173--7473----73CPIFlats,a.s.10----10686----686CPI Green, a.s.382--8582----82CPIHotelsProperties,a.s.1----119----19CPIHungaryInvestmentsKft.6,569----6,5693,044----3,044CPIHungaryKft.932----932963----963CPI Kvinta,s.r.o.--------2----2CPI Management,s.r.o.888----8881,168----1,168CPINárodní,s.r.o.2,164----2,16437,008----37,008CPI Oﬀice Business Center,s.r.o.704----704462----462CPI Oﬀice Prague,s.r.o.257----2571,734----1,734CPI PolandPropertyManagement sp.zo.o.775----775--------CPIPolandSp.zo.o.2,860----2,860--------CPI Property Group S.A.231,0314,079,073--4,310,10497,9675,075,824--5,173,791CPI Reality, a.s.1,460----1,460564----564CPI RetailPortfolio I,a.s.329----3292----2CPI RetailPortfolio II,a.s.--------41----41CPI RetailPortfolio IV,s.r.o.--------82----82CPI RetailPortfolio V,s.r.o.(merged with CPIRetailPortfolio I, a.s.)--------443----443CPI RetailPortfolio VI,s.r.o.(merged with CPIRetailPortfolio I, a.s.)--------77----77CPI RetailPortfolio VIII s.r.o.212----212105----105CPI RetailsONE, a.s.--------192----192CPI Retails Rosas.r.o.--------76----76CPI Retails THREE, a.s.--------735----735CPI Retails TWO,a.s.--------217----217CPI Sekunda,s.r.o.--------2----2CPI Services,a.s.--------3,491----3,491CPI Shopping MB,a.s.803----803711----711CPI ShoppingTeplice,a.s.1,058----1,058562----562CPI Théta,a.s.--------82----82CT Development sp.zo.o.94----94--------Czech PropertyInvestments, a.s.17,3449,577--26,921104,180----104,180ČadcaPropertyDevelopment,s.r.o.--------99----99ČáslavInvestments, a.s.--------44----44EMHSouth,s.r.o.--------162----162EquatorReal sp.z o.o.56----56--------Europeum Kft.1,210----1,210--------Farhan, a.s.2,192----2,192812----812FLProperty Development,a.s.--------2----2Futurum HKShopping,s.r.o.1,795----1,7951,523----1,523Gadwall,Sp.z o.o.74----74--------GCAProperty Developmentsp.zo.o.354----354-------- CPIFIMSASociétéAnonymeR.C.S. Luxembourg B44.99620222021PayablesOwed toaﬀilitatedpayablewithinone yearOwed toaﬀilitatedpayableaftermorethanone yearOthercreditorspayablewithinone yearTotalOwed toaﬀilitatedpayablewithinone yearOwed toaﬀilitatedpayableaftermorethanoneyearOthercreditorspayablewithinone yearTotalNote7.17.28.1--7.17.28.1--Gebauer HöfeLiegenschaftenGmbH22023,898--24,118--------Gewerbesiedlungs-Gessellschaft mbH69575,433--76,128--------GSGAssetGmbH& Co.Verwaltungs KG614,073--4,134604,013--4,073GSG BerlinInvest GmbH31734,416--34,733--------GSGEuropaBeteiligungsGmbH4001--4014001--401GSG Gewerbehöfe Berlin1.GmbH&Co.KG29922,169--22,46819713,141--13,338GSG Gewerbehöfe Berlin2.GmbH&Co.KG32922,981--23,31029919,963--20,262GSG Gewerbehöfe Berlin3.GmbH&Co.KG91075,815--76,72545130,095--30,546GSG Gewerbehöfe Berlin4.GmbH&Co.KG41531,416--31,83129519,662--19,957GSG Gewerbehöfe Berlin5.GmbH&Co.KG78659,862--60,64852134,709--35,230HECFVestec2s.r.o.(formerly CPI Vestec,s.r.o.)--------24----24Hightech ParkKft.32----32--------HOTELU PARKU,s.r.o.4507--511644----644Hraničář,a.s.60----60--------ISNyírKft.217----217--------ISZalaKft.323----323--------Janáčkovo nábřeží15,s.r.o.--------15----15JeseníkInvestments, a.s.--------64----64Jetřichovice Property, a.s.2239--241257----257Kerina, a.s.164----164--------KOENIGShopping,s.r.o.1,022----1,0221,233----1,233Komárno PropertyDevelopment, a.s.--------73----73LDPraha, a.s.118----1183----3Le Regina WarsawSp.z o.o.167----167--------Levice PropertyDevelopment, a.s.--------103----103Lockhart, a.s.20----2025----25Lucemburská46, a.s.303----30323----23MarissaOmikrón, a.s.313----313148----148MarissaTau,a.s.423----423--------MarissaThéta,a.s.30----302----2Marissa West, a.s.174----174570----570MarissaYpsilon,a.s.--------261----261MARRETIM s.r.o.16----16--------MichalovcePropertyDevelopment, a.s.--------62----62Moniuszki Oﬀice sp.z o.o.72----72--------MUXUM,a.s.--------21----21NaPoříčí, a.s.238----238415----415Nymburk PropertyDevelopment, a.s.426----426440----440OC Nová Zdabořa.s.--------320----320OCSpektrum, s.r.o.--------228----228Olomouc Building, a.s.38----38--------Orchard Hotela.s.15----154----4OZTrmice, a.s.9----9-------- CPIFIMSASociétéAnonymeR.C.S. Luxembourg B44.99620222021PayablesOwed toaﬀilitatedpayablewithinone yearOwed toaﬀilitatedpayableaftermorethanone yearOthercreditorspayablewithinone yearTotalOwed toaﬀilitatedpayablewithinone yearOwed toaﬀilitatedpayableaftermorethanoneyearOthercreditorspayablewithinone yearTotalNote7.17.28.1--7.17.28.1--OzricsKft.4----4--------PelhřimovPropertyDevelopment, a.s.--------36----36Pólus Shopping Center Zrt.951----951--------PovažskáBystricaPropertyDevelopment, a.s.--------74----74PrievidzaPropertyDevelopment, a.s.--------31----31PROJECT FIRST a.s.385,080--5,1184,941----4,941ProjektNisa,s.r.o.1,446----1,4461,328----1,328ProjektZlatýAnděl,s.r.o.1,610----1,6101,675----1,675Prosta69Sp.z o.o.100----100--------Real EstateEnergyKft.6,057----6,057--------Residence Belgická,s.r.o.15----159----9Residence Izabella Zrt.228----228--------Rezidence Malkovského,s.r.o.--------518----518RSBC Kvartas.r.o.(formerlyCPI Kvarta,s.r.o.)--------1----1ST ProjectLimited--169,110--169,110(184)177,970--177,786Svitavy PropertyAlfa,a.s.--------204----204Tachov Investments,s.r.o.5169--17457----57Telč Property Development,a.s.47----4735----35Tepelné hospodářstvíLitvínov s.r.o.440----4401----1Trebišov PropertyDevelopment,s.r. o.--------145----145TřinecInvestments,s.r.o.--------81----81Třinec PropertyDevelopment, a.s.134----134--------Tyršova6,a.s.159----15998----98U svatéhoMichala,a.s.--------19----19VTeam Prague,s.r.o.19----19381----381ZET.oﬀice,a.s.579----579357----357Ždírec PropertyDevelopment, a.s. (mergedwith CPI RetailPortfolio VIIIs.r.o.)--------19----19Total314,7464,710,763--5,025,509328,3035,375,378--5,703,681 CPIFIMSASociétéAnonymeR.C.S. Luxembourg B44.996Relatedparty transactions20222021IncomeOtheroperatingincomeFinancialincomefromaﬀiliatedIncomefromFinancial ﬁxedassetsFinancialincomeTotalOtheroperatingincomeFinancialincomefromaﬀiliatedIncomefromFinancial ﬁxedassetsFinancialincomeTotalNote9141516--9141516--Owned by theCompany(directly,indirectly) - aﬀiliated--11,98311,0251,41024,418--11,46316,60938628,458Brillant1419.GmbH------------5----5Brno PropertyInvestXV.,a.s. (formerlySvitavyPropertyDevelopment, a.s.)----62769----112738Brno PropertyInvestXV.,s.r.o. (merged withSvitavy PropertyDevelopment, a..s.)----2--2----4--4Bubenská1,a.s.merged with CPIOffice BusinessCenter,s.r.o.--------------3,236923,328Bubny Development,s.r.o.----1,9242932,217----1,70421,706BYTY PODKOVA, a.s.--287--2289--614--1615Camuzzi,a.s.----244973----70171CD Property s.r.o.----679203882----71415729CPI - Krásné Březno,a.s.----40444----35136CPI -LandDevelopment, a.s.----641235876----4018409CPI ParkŽďárek,a.s.----20524229----179--179CPI PignaS.r.l.----433--433----382--382CPI REV ItalyIIS.r.l.----835--835----261--261CPI South,s.r.o.----222143----14115DataTrades.r.o. vlikvidaci (liquidated)--------------152136DianaProperty Sp. zo.o.----1343137----146--146Equator IV Oﬃces sp.zo.o.----85129880----2,386--2,386Estate Grand,s.r.o.----37--37----32133Eurocentrum Officessp.zo.o.----3,252843,336----5,060--5,060FAMIACOENTERPRISESCOMPANY LIMITED----218--218----236--236IndustrialPark Stříbro,s.r.o.--2,513--182,531--5106262634JIHOVÝCHODNÍMĚSTO,a.s.----27734----19524KarvináPropertyDevelopment, a.s. vlikvidaci----------------11LandProperties,a.s.------22------33Les Mas duFiguier----197--197----167--167MarkiReal Estate sp. zo.o. w likwidacji----------------11MQM Czech,a.s.----31435----27128NOVÁ ZBROJOVKA,s.r.o.----810183993----9821011,083Nupakya.s.----18321----17--17PolygonBC, a.s.----130170300----1336139Rezidence Kunratice,s.r.o.----2--2---------- CPIFIMSASociétéAnonymeR.C.S. Luxembourg B44.99620222021IncomeOtheroperatingincomeFinancialincomefromaﬀiliatedIncomefromFinancial ﬁxedassetsFinancialincomeTotalOtheroperatingincomeFinancialincomefromaﬀiliatedIncomefromFinancial ﬁxedassetsFinancialincomeTotalNote9141516--9141516--Rezidence Pragovka,s.r.o.----13615151----38543SCPReﬂets----219--219----217--217StrakonicePropertyDevelopment, a.s.----4--4----3--3STRM Alfa,a.s.----235----------STRMBeta ,a.s.----46450----36--36STRMGama,a.s.----32840----19--19VysočanyOﬃce, a.s.----12113----3--3WFCInvestments sp. zo.o.--9,183--389,221--10,334--3110,365Owned by theCompany(directly,indirectly) -interestparticipated----1,001--1,001----857--857Uniborc S.A.----1,001--1,001----857--857CPI Group's entity1,202--206,24133,360240,80322,758--36304325,977411,7781Bishops AvenueLimited----5,86765876----5,295--5,295Agromes.r.o.------136136------124124AIRPORT CITYINGATLANBEFEKTETÉSI Kft.----64461525134--888411,063Airport City Phase BKft.----10455524--936123ALIZÉPROPERTYa.s.----3--3----2--2AndrassyHotel Zrt.----275132881--33245378Andrássy Real Kft.----8824993136--84320899Anguslands.r.o.------7171------4949ArenaCorner Kft.----1,971482,019136--2,475252,636Atrium Complex sp. zo.o.------3737----------Balvinder,a.s.----15696252----1836189BaronPugliaS.r.l.--------------150--150Baudry Beta,a.s.----7932251,018----73420754BAYTONAlfa,a.s.----725194919----70635741BAYTONGama, a.s.----------------2323BC91Real EstateIngatlanbefektetésiKft.----------19--6420103BC99OﬃceParkKft.----1,694261,720212--2,212802,504BerounPropertyDevelopment, a.s.----524459983----59213605Best PropertiesSouth,a.s.----4,7888405,628----3,8181563,974Biochov s.r.o.------9393------8585Biopotraviny s.r.o.------143143------8787BPT Development,a.s.----------------4747BrandýsLogistic, a.s.----310271581----1,4371651,602Brno DevelopmentServices, s.r.o.----210215425----23528BRNOINN, a.s.------22------22Březiněves, a.s.----158132290----15196247CAMPONAShoppingCenter Kft.----4,7411,0435,784157--7,262967,515Carpenter Invest,a.s.----147239386----134173307CB PropertyDevelopment, a.s.----48344392----1692,2212,390 CPIFIMSASociétéAnonymeR.C.S. Luxembourg B44.99620222021IncomeOtheroperatingincomeFinancialincomefromaﬀiliatedIncomefromFinancial ﬁxedassetsFinancialincomeTotalOtheroperatingincomeFinancialincomefromaﬀiliatedIncomefromFinancial ﬁxedassetsFinancialincomeTotalNote9141516--9141516--CentralTower81sp. zo.o.------1313------11City Gardens Sp.z o.o.------5252----------CityMarketDunakesziKft. (formerly Buy-WayDunakeszi Kft.)----220922997--37233502CityMarketSoroksárKft. (formerly Buy-WaySoroksár Kft.)----178618436--2809325Conradian, a.s.----304234538----322167489CPI - Bor,a.s.----1,4451941,639----71535750CPI -Horoměřice,a.s.----3--3----------CPI - Orlová, a.s.----10916125----79--79CPI - Real Estate,a.s.----14029169----1105115CPI -Zbraslav,a.s.------66------22CPI Beet,a.s.----13417----17724CPI Blatiny,s.r.o.(formerly CPI Tercie,s.r.o.)----22933262------11CPI BYTY,a.s.----3,5072,2935,80040--3,631863,757CPI Delta,a.s. (mergedwith CPI RetailPortfolio VIII s.r.o.)----561167----1042106CPIEast,s.r.o.----4,2805184,798----4,459344,493CPIEnergo, a.s.----145----------CPIFacilityManagementKft.------88----------CPIFacilitySlovakia,a.s.----159--159888--127--1,015CPIHotelsEuropeumKft.--------------34438CPIHotelsProperties,a.s.----1,260421,302----74534779CPIHotels,a.s.----1,2413751,616----1,8641,0842,948CPIHungaryInvestmentsKft.------393999------99CPIHungaryKft.------2525596------596CPI IMMO----57--57----57--57CPI JihlavaShopping,a.s.--------------9485291,477CPI Kappa,s.r.o.----51455----46147CPI Management,s.r.o.------218218------3838CPINárodní,s.r.o.----2,8703,4436,313------7,2867,286CPI Oﬀice BusinessCenter,s.r.o.----6,5464116,957----2,3162,3184,634CPI Oﬀice Prague,s.r.o.----1482,5862,734------4,1314,131CPI PalmovkaOﬃce,s.r.o.mergedwith CPIOffice BusinessCenter,s.r.o.--------------65--65CPI PolandPropertyManagement sp.zo.o.------1414----------CPIPolandSp.zo.o.------45454,117----24,119CPI Property GroupS.A.24--62,6648762,77524--212,09894212,216CPI Reality, a.s.----3,4965824,078----3,681893,770CPI Retail MB s.r.o.(merged with--------------23124 CPIFIMSASociétéAnonymeR.C.S. Luxembourg B44.99620222021IncomeOtheroperatingincomeFinancialincomefromaﬀiliatedIncomefromFinancial ﬁxedassetsFinancialincomeTotalOtheroperatingincomeFinancialincomefromaﬀiliatedIncomefromFinancial ﬁxedassetsFinancialincomeTotalNote9141516--9141516--Nymburk PropertyDevelopment, a.s.)CPI RetailOne Kft.----2697276----575140715CPI RETAILPORTFOLIOHOLDINGKft.----704--704----84110851CPI RetailPortfolio I,a.s.----52370593----36316379CPI RetailPortfolio II,a.s.----170172342----65469CPI RetailPortfolio IV,s.r.o.----63104167----90--90CPI RetailPortfolio V,s.r.o.(merged with CPIRetailPortfolio I,a.s.)----16741208----2386244CPI RetailPortfolio VI,s.r.o. (merged with CPIRetailPortfolio I,a.s.)----9160151----81182CPI RetailPortfolioVIIIs.r.o.----41176487----2933296CPI RetailsONE, a.s.----452460912----61615631CPI Retails Rosas.r.o.----185--185----259--259CPI Retails THREE, a.s.----1,19521,197----1,801--1,801CPI Retails TWO,a.s.----376391767----4959504CPI Sekunda,s.r.o.----641882----24--24CPI Services,a.s.470----30577514,269----12314,392CPI Shopping MB,a.s.----2,0433612,404----2,133252,158CPI ShoppingTeplice,a.s.----3,2623643,626----3,4772343,711CPI Théta,a.s.----2396245----------CPIŽabotova, a.s.----3351336----------CPIPG ManagementS.à r.l.10--3,73033,74310--4402452CT Development sp. zo.o.------66----------Czech PropertyInvestments, a.s.----20,83442821,262----28,22876928,997ČadcaPropertyDevelopment,s.r.o.----83--83----228--228ČáslavInvestments,a.s.----10695201----150--150Českolipská farmas.r.o.------7575------7373Českolipskázemědělská a.s.------136136------124124Děčínská zemědělskáa.s.------106106------121121DianaDevelopmentsp.zo.o.------11----------DucaPugliaS.r.l.--------------127--127EMHSouth,s.r.o.----47686562----5071508ENDURANCEHOSPITALITYASSETS.à r.l.10------1010------10ENDURANCEHOSPITALITYFINANCES.àr.l.10------1010------10Equator IIDevelopment sp.zo.o.------2828----------EquatorReal sp.z o.o.------2626----------Europeum Kft.----1,714521,76665--1,86771,939 CPIFIMSASociétéAnonymeR.C.S. Luxembourg B44.99620222021IncomeOtheroperatingincomeFinancialincomefromaﬀiliatedIncomefromFinancial ﬁxedassetsFinancialincomeTotalOtheroperatingincomeFinancialincomefromaﬀiliatedIncomefromFinancial ﬁxedassetsFinancialincomeTotalNote9141516--9141516--Farhan, a.s.----3,7236144,337----3,764283,792FarmaPloučnicea.s.------8686------122122FarmaSvitavkas.r.o.------5151------5555FarmyFrýdlanta.s.------170170------155155FELICIASHOPPINGCENTERSRL----------107------107FLPropertyDevelopment, a.s.----12214----11--11Futurum HKShopping,s.r.o.----5,8516286,479----6,041616,102FVE CHZs.r.o.----61117----------Gadwall,Sp.z o.o.------1212----------GatewayOﬃce ParkKft.----3749383214--67476964GCAPropertyDevelopment sp.zo.o.------1919----------Gewerbesiedlungs-Gessellschaft mbH658------6581,050------1,050HDInvestment s.r.o.----336----4--4HECFVestec2s.r.o.(formerly CPI Vestec,s.r.o.)----6535100----3589367Hightech ParkKft.----22032237--2462255Hospitalityinvest S.àr.l.10--1--1110------10HOTELU PARKU,s.r.o.------55------11Hraničář,a.s.----75733790----71510725IGY2CB, a.s.----29183212----159795954ISNyírKft.----211922025--1337165ISZalaKft.----6461666257--7245786JAGRAspol. s r.o.------5151------4747Janáčkovo nábřeží15,s.r.o.----453385838----39813411JeseníkInvestments,a.s.----122124246----1603163Kerina, a.s.----30715322----2746280KOENIGShopping,s.r.o.----3,2223903,612----3,390483,438Komárno PropertyDevelopment, a.s.----51--51----82--82Kosmonosy PropertyDevelopment,s.r.o.(merged withNymburkPropertyDevelopment, a.s.)--------------2501251Kunratickáfarma,s.r.o.----3971110----11--11LDPraha, a.s.----17913192----1738181Le Regina WarsawSp.zo.o.------22----------Levice PropertyDevelopment, a.s.----149--149----220--220Lockhart, a.s.----1,3052951,600----1,4671031,570Lucemburská46, a.s.----16848216----1459154MarissaOmikrón, a.s.----9741411,115----9401941MarissaTau,a.s.----1,058771,135----893--893MarissaThéta,a.s.----162440----29332Marissa West, a.s.----5,4237606,183----2,8382623,100MarissaYellow, a.s.--------------536149685MarissaYpsilon,a.s.----1,4231,5052,928----2,48492,493 CPIFIMSASociétéAnonymeR.C.S. Luxembourg B44.99620222021IncomeOtheroperatingincomeFinancialincomefromaﬀiliatedIncomefromFinancial ﬁxedassetsFinancialincomeTotalOtheroperatingincomeFinancialincomefromaﬀiliatedIncomefromFinancial ﬁxedassetsFinancialincomeTotalNote9141516--9141516--MARRETIM s.r.o.----492170----37--37MB PropertyDevelopment, a.s.(merged withNymburk PropertyDevelopment, a.s.)--------------336Michalovce PropertyDevelopment, a.s.----84--84----203--203MMR RUSSIAS.à r.l.10------1010------10Moniuszki Oﬀice sp. zo.o.------2121----------MUXUM,a.s.----32432356----2776283NaPoříčí, a.s.----1,9792382,217----2,056--2,056New Age Kft.----481563----54155Nymburk PropertyDevelopment, a.s.----105643748----107518625OC Nová Zdabořa.s.----421463884----5821583OCSpektrum, s.r.o.----7748241,598----1,0352361,271OFFICECENTERHRADČANSKÁ,a.s.merged with CPIOffice BusinessCenter,s.r.o.--------------647--647Olomouc Building, a.s.----1,506611,567----1,368171,385Orchard Hotela.s.----41417431----3952397Outlet ArenaMoravia,s.r.o.--------------112Oxford Towersp.z o.o.------107107----------OZTrmice, a.s.----13619----------OzricsKft.----1716177----19820218PankrácEasta.s.(formerly MarissaGama,a.s.)--------------2,5061412,647PelhřimovPropertyDevelopment, a.s.----133124257----1792181Platnéřská10s.r.o.----4--4----72431POLMA1S.A.----------10--227--237PólusShopping CenterZrt.----5,073585,131284--5,633215,938PovažskáBystricaPropertyDevelopment, a.s.----20--20----48--48PrievidzaPropertyDevelopment, a.s.----78--78----126--126ProjektNisa,s.r.o.----5,2167315,947----5,4151275,542ProjektZlatýAnděl,s.r.o.----4,2377394,976----4,332234,355Prosta69Sp.z o.o.------2020----------Prostějov Investments,a.s.----86394480----53293346PříborPropertyDevelopment,s.r.o.(merged with CPIRetailPortfolio VIIIs.r.o.)----18523----34135PV - Cvikov s.r.o.------102102------9393Radom PropertyDevelopment sp.zo.o.------22----------Real EstateEnergyKft.----46367----5--5RembertówPropertyDevelopment sp.zo.o.------55---------- CPIFIMSASociétéAnonymeR.C.S. Luxembourg B44.99620222021IncomeOtheroperatingincomeFinancialincomefromaﬀiliatedIncomefromFinancial ﬁxedassetsFinancialincomeTotalOtheroperatingincomeFinancialincomefromaﬀiliatedIncomefromFinancial ﬁxedassetsFinancialincomeTotalNote9141516--9141516--Residence Belgická,s.r.o.----7734111----78280Residence Izabella Zrt.----276243004--33443381Rezidence Jančova,s.r.o.----12821149----13218150RezidenceMalkovského,s.r.o.----58664----37239Savile Row1Limited----3,746--3,746----2,915--2,915Spojené elektrárny,s.r.o.----1--1----------Spojené farmy a.s.------334334------133133Statek Kravaře,a.s.------332332----140127267Statenice PropertyDevelopment, a.s.----14421165----129--129Svitavy PropertyAlfa,a.s.----431448879----6027609TARNÓWPROPERTYDEVELOPMENT sp. zo.o.------11----------Telč PropertyDevelopment, a.s.----------------11Tepelné hospodářstvíLitvínov s.r.o.----61723----18119Trebišov PropertyDevelopment,s.r. o.----85--85----122--122TřinecInvestments,s.r.o.----98117215----1451146Třinec PropertyDevelopment, a.s.----28817305----2132215Tyršova6,a.s.----10022122----973100U svatéhoMichala,a.s.----17831209----180--180Uchaux Limited----75--75----31--31VTeam Prague,s.r.o.----211332543----33843381VerneřickýAngus a.s.------107107------8484Vigano,a.s.----6944921,186----632361993Zamość PropertyDevelopment sp.zo.o.------55----------Zamość SadowaProperty Developmentsp.zo.o.------66----------Zelenáfarmas.r.o.------102102------6969Zelenáloukas.r.o.------5151------4747ZEMSPOLs.r.o.------8080------7373ZET.oﬀice,a.s.----2,2452942,539----1,6561251,781ZgorzelecPropertyDevelopment sp.zo.o.------33----------Ždírec PropertyDevelopment, a.s.(merged with CPIRetailPortfolio VIIIs.r.o.)----21728----43144Mr. RadovanVítekandhis entityreportedasaﬀilitated----------2,409----2612,670EfimacorS.àr.l.----------10------10GAMALA LIMITED----------------261261Ravento S.à r.l.----------10------10Vítek Radovan----------2,389------2,389 CPIFIMSASociétéAnonymeR.C.S. Luxembourg B44.99620222021IncomeOtheroperatingincomeFinancialincomefromaﬀiliatedIncomefromFinancial ﬁxedassetsFinancialincomeTotalOtheroperatingincomeFinancialincomefromaﬀiliatedIncomefromFinancial ﬁxedassetsFinancialincomeTotalNote9141516--9141516--Other related reportedas Other2,990----383,02860----161Aspermont S. à r.l.10------1010------10Boville S. à r.l.10------1010------10CPI Yellow,a.s.----------------11CPIPGHolding S.àr.l.10------1010------10EfimacorS.àr.l.10------10----------GAMALA LIMITED--------------------LarnoyaInvest S.àr.l.10------1010------10Logan EstatesSarl10------1010------10Ravento S.à r.l.10------10----------Senales Invest S.à r.l.5------5----------Vítek Radovan2,905----382,943----------WHIPLASH EQUITIESS.à r.l.10------1010------10Other related reportedas Other linked bymanagement of theCompany----12814142------1,3371,337CPI Italy130SPV S.r.l.----128--128------1,3021,302PAC Italy130SPVS.R.L.------1414------3535Total4,19211,983218,39534,822 269,39225,21711,463380,50926,298443,487 CPIFIMSASociétéAnonymeR.C.S. Luxembourg B44.99620222021ExpensesOtherexternalexpensesFinancialexpensesaﬀiliatedFinancialexpensesotherTotalOtherexternalexpensesFinancialexpensesaﬀiliatedFinancialexpensesotherTotalNote1318.118.2--1318.118.2--Owned by the Company(directly,indirectly) -aﬀiliated--5,973--5,973--4,921--4,921Brno PropertyInvestXV., a.s.(formerly Svitavy PropertyDevelopment, a.s.)----------40--40Bubenská1,a.s.merged withCPI Oﬀice Business Center,s.r.o.----------(598)--(598)Bubny Development,s.r.o.----------(825)--(825)BYTY PODKOVA, a.s.--99--99--178--178Camuzzi,a.s.--1--1--(20)--(20)CD Property s.r.o.--5--5--(282)--(282)CPI - Krásné Březno,a.s.----------(14)--(14)CPI -LandDevelopment, a.s.--42--42--(88)--(88)CPI ParkŽďárek,a.s.----------(59)--(59)CPI South,s.r.o.----------(3)--(3)Darilia,a.s.--1--1--1--1DataTrades.r.o. vlikvidaci(liquidated)----------(2)--(2)Development Doupovská,s.r.o.--4--4--3--3DianaProperty Sp.z o.o.--2--2--------Equator IV Oﬃces sp.z o.o.--33--33--------Estate Grand,s.r.o.----------(10)--(10)Eurocentrum Offices sp. zo.o.--100--100--------FAMIACOENTERPRISESCOMPANY LIMITED--4,324--4,324--------HAGIBOROFFICEBUILDING, a.s.,VLIKVIDACI(liquidated)----------6,408--6,408IndustrialPark Stříbro,s.r.o.--182--182--69--69JIHOVÝCHODNÍ MĚSTO,a.s.----------(4)--(4)LandProperties,a.s.--31--31--20--20MarkiReal Estate sp.z o.o. wlikwidacji--221--221--212--212MQM Czech,a.s.----------(12)--(12)NOVÁ ZBROJOVKA,s.r.o.----------(196)--(196)Nupakya.s.----------(6)--(6)PolygonBC, a.s.--65--65--(28)--(28)Rezidence Pragovka,s.r.o.--3--3--(8)--(8)Strakonice PropertyDevelopment, a.s.----------(1)--(1)STRM Alfa,a.s.--688--688--6--6STRMBeta ,a.s.----------(6)--(6)STRMGama,a.s.----------(5)--(5)VysočanyOﬃce, a.s.----------2--2WFCInvestments sp.z o.o.--172--172--149--149CPI Group's entity26169,907--169,9335,720127,603--133,3231Bishops Avenue Limited264,535--4,561357(4,808)--(4,451)AIRPORT CITYINGATLANBEFEKTETÉSI Kft.--(2)--(2)--2--2Airport City Phase B Kft.--(6)--(6)--6--6AndrassyHotel Zrt.--343--343--4--4Andrássy Real Kft.--996--996--44--44ArenaCorner Kft.--3,626--3,626--57--57Atrium Complex sp.z o.o.--41--41--------Balvinder,a.s.--2--2--(92)--(92)Baudry Beta,a.s.--7--7--(80)--(80) CPIFIMSASociétéAnonymeR.C.S. Luxembourg B44.99620222021ExpensesOtherexternalexpensesFinancialexpensesaﬀiliatedFinancialexpensesotherTotalOtherexternalexpensesFinancialexpensesaﬀiliatedFinancialexpensesotherTotalNote1318.118.2--1318.118.2--BAYTONAlfa,a.s.--5--5--(185)--(185)BAYTONGama, a.s.----------101--101BC91Real EstateIngatlanbefektetési Kft.----------(3)--(3)BC99OﬃceParkKft.--3,323--3,323--92--92BerounPropertyDevelopment, a.s.--6--6--(238)--(238)Best PropertiesSouth, a.s.--24--24--(754)--(754)BPT Development,a.s.--5--5--14--14BrandýsLogistic, a.s.--1--1--(243)--(243)Brno Development Services,s.r.o.--23--23--14--14BRNOINN, a.s.--195--195--195--195Brno Property Development,a.s.--1,463--1,463--1,424--1,424Březiněves, a.s.--12--12--13--13BytyLehovec,s.r.o.--192--192--475--475CAMPONAShopping CenterKft.--3,838--3,838--182--182Carpenter Invest,a.s.----------(67)--(67)CB PropertyDevelopment,a.s.----------19--19CentralTower81sp.zo.o.--17--17--------City Gardens Sp.z o.o.--60--60--1--1CityMarketDunakeszi Kft.(formerly Buy-WayDunakeszi Kft.)--585--585--------CityMarketSoroksár Kft.(formerly Buy-Way SoroksárKft.)--426--426--1--1Conradian, a.s.----------(170)--(170)CPI - Bor,a.s.--8--8--(123)--(123)CPI -Horoměřice,a.s.----------3--3CPI - Orlová, a.s.----------(22)--(22)CPI - Real Estate,a.s.--5--5--(21)--(21)CPI -Zbraslav,a.s.--33--33--120--120CPI Beet,a.s.----------(1)--(1)CPI Blatiny,s.r.o. (formerlyCPI Tercie,s.r.o.)----------4--4CPI BYTY,a.s.--691--691--(2,117)--(2,117)CPI Delta,a.s. (merged withCPI RetailPortfolio VIII s.r.o.)--4--4--(31)--(31)CPIEast,s.r.o.--58--58--(1,505)--(1,505)CPIEnergo, a.s.--35--35--23--23CPIFacility ManagementKft.--7--7--------CPIFacilitySlovakia,a.s.--1--1--------CPIFinance CEE,a.s.--5--5--4--4CPIFlats,a.s.--27--27--240--240CPI Green, a.s.--5--5--3--3CPIHotels Europeum Kft.----------(1)--(1)CPIHotelsProperties,a.s.--2--2--(377)--(377)CPIHotels,a.s.----------(8)--(8)CPIHungaryInvestmentsKft.--58--58--27--27CPIHungaryKft.--127--127--26--26CPI JihlavaShopping, a.s.----------(140)--(140)CPI Kappa,s.r.o.----------(16)--(16)CPI Management,s.r.o.--15--151,9405--1,945CPINárodní,s.r.o.--768--768--1,096--1,096 CPIFIMSASociétéAnonymeR.C.S. Luxembourg B44.99620222021ExpensesOtherexternalexpensesFinancialexpensesaﬀiliatedFinancialexpensesotherTotalOtherexternalexpensesFinancialexpensesaﬀiliatedFinancialexpensesotherTotalNote1318.118.2--1318.118.2--CPI Oﬀice Business Center,s.r.o.--29--29--(68)--(68)CPI Oﬀice Prague,s.r.o.--20--20--29--29CPI PalmovkaOﬃce,s.r.o.merged with CPI OfficeBusiness Center,s.r.o.----------(17)--(17)CPI PolandPropertyManagement sp.zo.o.--34--34--------CPIPolandSp.zo.o.--133--133--------CPI Propertya Facility,s.r.o.(merged with CPIServices,a.s.)----------11--11CPI Property Group S.A.--119,379--119,379401161,688--162,089CPI Reality, a.s.--110--110--(582)--(582)CPI Retail MB s.r.o. (mergedwithNymburk PropertyDevelopment, a.s.)----------3--3CPI RetailOne Kft.--522--522--3--3CPI RETAILPORTFOLIOHOLDINGKft.--2,186--2,186--249--249CPI RetailPortfolio I,a.s.--19--19--(22)--(22)CPI RetailPortfolio II,a.s.--8--8--13--13CPI RetailPortfolio IV,s.r.o.--3--3--(11)--(11)CPI RetailPortfolio V,s.r.o.(merged with CPIRetailPortfolio I, a.s.)--6--6--(47)--(47)CPI RetailPortfolio VI,s.r.o.(merged with CPIRetailPortfolio I, a.s.)--4--4--(17)--(17)CPI RetailPortfolio VIII s.r.o.--10--10--(54)--(54)CPI RetailsONE, a.s.--16--16--(143)--(143)CPI Retails Rosas.r.o.--1--1--2--2CPI Retails THREE, a.s.--7--7--13--13CPI Retails TWO,a.s.--20--20--(115)--(115)CPI Services,a.s.--19--191,41436--1,450CPI Shopping MB,a.s.--21--21--(412)--(412)CPI ShoppingTeplice,a.s.--28--28--(829)--(829)CPI Théta,a.s.--2--2--3--3CPIŽabotova, a.s.--1--1--------CPIPG Management S.à r.l.--6--6--------CT Development sp.zo.o.--5--5--------Czech Property Investments,a.s.--8,288--8,288--(14,755)-- (14,755)ČadcaPropertyDevelopment,s.r.o.--2--2--2--2ČáslavInvestments, a.s.--3--3--(51)--(51)DianaDevelopment sp.z o.o.--4--4--------EMHSouth,s.r.o.--29--29--(103)--(103)Equator IIDevelopment sp. zo.o.--20--20--------EquatorReal sp.z o.o.--17--17--------Europeum Kft.--2,031--2,031--39--39Farhan, a.s.--15--15--(950)--(950)FLProperty Development,a.s.----------(3)--(3)Futurum HKShopping,s.r.o.--157--157--(1,345)--(1,345)Gadwall,Sp.z o.o.--13--13--------GatewayOﬃce ParkKft.--801--801--1--1GCAProperty Developmentsp.zo.o.--30--30-------- CPIFIMSASociétéAnonymeR.C.S. Luxembourg B44.99620222021ExpensesOtherexternalexpensesFinancialexpensesaﬀiliatedFinancialexpensesotherTotalOtherexternalexpensesFinancialexpensesaﬀiliatedFinancialexpensesotherTotalNote1318.118.2--1318.118.2--Gebauer HöfeLiegenschaftenGmbH--220--220--------Gewerbesiedlungs-Gessellschaft mbH--695--695--------GSGAssetGmbH& Co.Verwaltungs KG--61--61--60--60GSG BerlinInvest GmbH--317--317--------GSG Gewerbehöfe Berlin1.GmbH&Co.KG--299--299--197--197GSG Gewerbehöfe Berlin2.GmbH&Co.KG--329--329--299--299GSG Gewerbehöfe Berlin3.GmbH&Co.KG--910--910--451--451GSG Gewerbehöfe Berlin4.GmbH&Co.KG--415--415--295--295GSG Gewerbehöfe Berlin5.GmbH&Co.KG--786--786--521--521HDInvestment s.r.o.----------(1)--(1)HECFVestec2s.r.o.(formerly CPI Vestec,s.r.o.)----------(54)--(54)Hightech ParkKft.--285--285--10--10HOTELU PARKU,s.r.o.--33--33--43--43Hraničář,a.s.--6--6--(212)--(212)IGY2CB, a.s.----------(37)--(37)ISNyírKft.--214--214--44--44ISZalaKft.--650--650--------Janáčkovo nábřeží15,s.r.o.--2--2--(58)--(58)JeseníkInvestments, a.s.--4--4--(38)--(38)Jetřichovice Property, a.s.--15--15--15--15Kerina, a.s.--7--7--(75)--(75)KOENIGShopping,s.r.o.--99--99--(815)--(815)Komárno PropertyDevelopment, a.s.--1--1--1--1Kosmonosy PropertyDevelopment,s.r.o. (mergedwithNymburk PropertyDevelopment, a.s.)----------(206)--(206)LDPraha, a.s.--7--7--(76)--(76)Le Regina WarsawSp.z o.o.--4--4--------Levice PropertyDevelopment, a.s.--1--1--1--1Lockhart, a.s.--8--8--(485)--(485)Lucemburská46, a.s.--16--16--(45)--(45)MarissaOmikrón, a.s.--25--25--(379)--(379)MarissaTau,a.s.--13--13--(65)--(65)MarissaThéta,a.s.--1--1--(27)--(27)Marissa West, a.s.--98--98--(599)--(599)MarissaYellow, a.s.----------(120)--(120)MarissaYpsilon,a.s.--23--23--(753)--(753)MARRETIM s.r.o.--1--1--------MB Property Development,a.s.(merged withNymburkProperty Development, a.s.)----------(1)--(1)Michalovce PropertyDevelopment, a.s.--1--1--1--1Moniuszki Oﬀice sp.z o.o.--14--14--------MUXUM,a.s.--1--1--(75)--(75)NaPoříčí, a.s.--42--42--(842)--(842)New Age Kft.--60--60--6--6Nymburk PropertyDevelopment, a.s.--42--42--118--118 CPIFIMSASociétéAnonymeR.C.S. Luxembourg B44.99620222021ExpensesOtherexternalexpensesFinancialexpensesaﬀiliatedFinancialexpensesotherTotalOtherexternalexpensesFinancialexpensesaﬀiliatedFinancialexpensesotherTotalNote1318.118.2--1318.118.2--OC Nová Zdabořa.s.--19--19--(197)--(197)OCSpektrum, s.r.o.--6--6--(93)--(93)OFFICECENTERHRADČANSKÁ,a.s.mergedwith CPI Office BusinessCenter,s.r.o.----------(170)--(170)Olomouc Building, a.s.--13--13--(259)--(259)Orchard Hotela.s.--3--3--(130)--(130)Oxford Towersp.z o.o.--21--21--------OzricsKft.--219--219--2--2PankrácEasta.s. (formerlyMarissaGama, a.s.)----------(1,074)--(1,074)PankrácWest a.s. (formerlyCPI Omikrón, a.s.)----------3--3PelhřimovPropertyDevelopment, a.s.--4--4--(56)--(56)Pólus Shopping Center Zrt.--5,074--5,074--25--25PovažskáBystricaPropertyDevelopment, a.s.----------1--1PrievidzaPropertyDevelopment, a.s.----------1--1PROJECT FIRST a.s.--302--302--290--290ProjektNisa,s.r.o.--23--23--(1,225)--(1,225)ProjektZlatýAnděl,s.r.o.--20--20--(1,416)--(1,416)Prosta69Sp.z o.o.--31--31--------Prostějov Investments,a.s.--1--1--(16)--(16)PříborPropertyDevelopment,s.r.o. (mergedwith CPI RetailPortfolio VIIIs.r.o.)--1--1--(6)--(6)Radom PropertyDevelopment sp.zo.o.--1--1--------Real EstateEnergyKft.--18--18--------RembertówPropertyDevelopment sp.zo.o.--2--2--------Residence Belgická,s.r.o.--1--1--(12)--(12)Residence Izabella Zrt.--284--284--12--12Rezidence Malkovského,s.r.o.--(5)--(5)--7--7Savile Row1Limited--2,385--2,385--------ST ProjectLimited--------1,608----1,608Statek Kravaře,a.s.----------(185)--(185)Statenice PropertyDevelopment, a.s.----------(42)--(42)Svitavy PropertyAlfa,a.s.--11--11--(140)--(140)Tachov Investments,s.r.o.--7--7--3--3Telč Property Development,a.s.--3--3--2--2Tepelné hospodářstvíLitvínov s.r.o.--76--76--4--4Trebišov PropertyDevelopment,s.r. o.--2--2--1--1TřinecInvestments,s.r.o.--5--5--(45)--(45)Třinec PropertyDevelopment, a.s.--3--3--(84)--(84)Tyršova6,a.s.--14--14--(14)--(14)U svatéhoMichala,a.s.--2--2--(60)--(60)Uchaux Limited--66--66--------VTeam Prague,s.r.o.--3--3--(69)--(69)Vigano,a.s.----------(313)--(313)Zamość PropertyDevelopment sp.zo.o.--3--3-------- CPIFIMSASociétéAnonymeR.C.S. Luxembourg B44.99620222021ExpensesOtherexternalexpensesFinancialexpensesaﬀiliatedFinancialexpensesotherTotalOtherexternalexpensesFinancialexpensesaﬀiliatedFinancialexpensesotherTotalNote1318.118.2--1318.118.2--Zamość SadowaPropertyDevelopment sp.zo.o.--4--4--------ZET.oﬀice,a.s.--13--13--11--11ZgorzelecPropertyDevelopment sp.zo.o.--1--1--------Ždírec PropertyDevelopment, a.s. (mergedwith CPI RetailPortfolio VIIIs.r.o.)--1--1--(13)--(13)Mr. RadovanVítekandhisentityreportedasaﬀilitated----------3--3Vítek Radovan----------3--3Total26175,880--175,9065,720132,527--138,247() Reversalofnon-realised losses fromprevious year ishigherthancreationofnon-realised lossescurrentyearValueadjustments20222021ValueadjustmentsValueadjustmentsof currentassetsValueadjustmentsof ﬁxedassetsTotalValueadjustmentsof currentassetsValueadjustmentsof ﬁxedassetsTotalNote1621--1621--Owned by the Company(directly,indirectly) - aﬀiliated1824,4874,6691196,8626,981CPI ParkŽďárek,a.s.(54)(3,542)(3,596)------CPI PignaS.r.l.--5,4335,433------CPI REV ItalyIIS.r.l.--(183)(183)------FAMIACOENTERPRISESCOMPANY LIMITED2363,9394,175(14)(227)(241)HAGIBOROFFICEBUILDING,a.s.,VLIKVIDACI(liquidated)------946,3216,415KarvináProperty Development,a.s. vlikvidaci------39847Les Mas duFiguier--(968)(968)--741741SCPReﬂets--(192)(192)--1919Owned by the Company(directly,indirectly) -interestparticipated--(796)(796)--(3,944)(3,944)Uniborc S.A.--(796)(796)--(3,944)(3,944)CPI Group's entity1752,4582,633(910)(25,708)(26,618)Balvinder,a.s.--145145--(145)(145)BaronPugliaS.r.l.--------1,4051,405Brno Development Services,s.r.o.15--15(15)--(15)CAMPONAShopping Center Kft.--5,6935,693--529529CPIFacilitySlovakia,a.s.66361427(127)(6,042)(6,169)CPIHotels,a.s.529(1,602)(1,073)(529)(15,881)(16,410)CPI IMMO1821183(182)(77)(259)CPIPolandSp.zo.o.(65)--(65)------CPI RetailOne Kft.--1,1751,175--2,0292,029CPIPG Management S.à r.l.(526)--(526)------DucaPugliaS.r.l.--------285285ENDURANCE HOSPITALITYFINANCES.àr.l.--8,0438,043--(8,043)(8,043)HDInvestment s.r.o.--2727--(16)(16)Hospitalityinvest S.àr.l.(32)--(32)(51)--(51)Kunratickáfarma,s.r.o.--1212--(12)(12)MarissaThéta,a.s.--------234234 CPIFIMSASociétéAnonymeR.C.S. Luxembourg B44.99620222021ValueadjustmentsValueadjustmentsof currentassetsValueadjustmentsof ﬁxedassetsTotalValueadjustmentsof currentassetsValueadjustmentsof ﬁxedassetsTotalNote1621--1621--MMR RUSSIAS.à r.l.6--6(6)--(6)Outlet ArenaMoravia,s.r.o.--------1616Real EstateEnergyKft.--------1010Savile Row1Limited--(11,397)(11,397)------Other related reportedas Otherlinked by management oftheCompany190--190(190)--(190)PAC Italy130SPV S.R.L.190--190(190)--(190)Total5476,1496,696(1,100)(29,652)(30,752)The positive valueisdecreaseofvalue adjustments,thenegativevalue is increaseof valueadjustments.NOTE23- GUARANTEESANDOTHER CONTINGENCIESEclair Aviation commitmentOn March2,2018,theCompany enteredacontract withEclairAviation undertheterms ofwhichthe Companycommit toa minimumusage of flight services representingan amount ofTUSD4,200per year.As at the date of the publication of the financialstatements,theCompany has no litigationthat would lead toanymaterialcontingent liabilityexceptas disclosed inNote24.NOTE24-LITIGATIONSKingstown dispute in LuxembourgIn January2015the Companywas served withsummons by Kingstown Partners MasterLtd.of the Cayman Islands,Kingstown Partners II LP ofDelaware, KtownLP ofDelaware (collectively referred toas“Kingstown”), claiming to beformershareholders of the Company.Theactionwasfiledwith the“Tribunal d´Arrondissement de eta Luxembourg“ (the “Court”)and seekscondemnationoftheCompany, CPI PGand certain membersof the Company´sboardofdirectorsas jointly andseverally liable topay damages intheamountof EUR14.5millionand compensationformoral damagein theamountof EUR5million. Accordingto Kingstown’sallegationthe damage claimedarose inter alia fromthe alleged violationoftheCompany’sminorityshareholders rights.The management ofthe Company has beentakingall available legal actionstoopposetheseallegationsinorder to protectthecorporateinterestaswellas theinterest of its shareholders.Accordingly,the parties sued by Kingstown raised theexceptiojudicatumsolviplea,which consists inrequiringthe entity who initiatedthe proceedingsandwhodoesnot residein theEU or ina State which is nota MemberState of the Council ofEuropetopay a legal depositto coverthelegal costsandcompensationprocedure.TheCourtrendereda judgement on19February2016,whereby each claimant has to pay a legal deposit inthe total amount of EUR90thousand to the“CaissedeConsignation”in Luxembourg.Kingstown paidthedepositin January2017 andthe litigation,currently beinginaproceduralstage, is pending.In October2018, Kingstown's legal advisors ﬁled additionalsubmission toincreasetheamount ofallegeddamages claimed to EUR157.0million.The Company continues tobelieve theclaimiswithoutmeritand intendsto vigorously contestit.In June2019,the Courtissueda firstinstance judgement, dismissing the claim against CPI PG because the claim was notclearly pleaded (“libelléobscur”) in relation to CPIPG.In December2020,the LuxembourgCourtdeclared thatthe inadmissibility ofthe claimagainst CPI PGand certain other defendants has not resultedin the inadmissibility ofthe litigationagainst the Companyand the remaining defendants. Some defendantshavedecidedtoappeal againstthisjudgment whichdeclaredthe claimadmissibleagainsttheCompany.Ajudgmentontheappealisnotexpectedto occurbeforethesecond quarterof2022.On28March2023the courtof appealhasrejected theappeal and thereforethe casewillbeheardonthemerits beforethe ﬁrstinstanceLuxembourgCourt during2023. CPIFIMSASociétéAnonymeR.C.S. Luxembourg B44.996Disputesrelated towarrants issued by the CompanyThe Companywas suedbyholders ofthewarrantsholders of the2014WarrantsregisteredunderISINcode XS0290764728.The ﬁrst group of theholders of the2014Warrants sued the Company forapproximately EUR1.2million in relationto theChange ofControlNoticepublished bythe Company,notifyingtheholders ofthe2014Warrantsthat theChangeof Control,asdefinedinthe SecuritiesNoteand theSummary for the2014Warrants, occurred on8June2016. Thesecond holder ofthe2014Warrantssued the Company forapproximately EUR1million in relationto the allegedchange of control whichallegedly occurred in2013.Theselitigationsarepending.The Companywill defend itselfagainst these lawsuits and reminds thatinaccordancewiththejudgementof theParisCommercial Court pronouncedon26October2015concerning the terminationoftheCompany’sSafeguardPlan, liabilitiesthatwereadmitted to theSafeguard, butare conditionalor uncalled (such as uncalled bank guarantees,conditional claimsof theholders of2014Warrants registered under ISINcodeXS0290764728, provided that theywereadmitted to theSafeguardplan),will be paidaccording totheircontractual terms. Pre-Safeguard liabilitiesthat were notadmitted to theCompany’sSafeguard will be unenforceable.Assuch, only claims of holders of the2014Warrants,whose potential claimswereadmitted totheCompany’sSafeguardPlan,could beconsidered inrespectofthepresentChange ofControl.Claimsof holders of the2014Warrantsthatwere notadmitted to the Company’sSafeguard willbe unenforceable against theCompany.To thebestof Company’sknowledge,noneof theholdersofthe2014WarrantswhosuedtheCompany ﬁledtheirclaims2014Warrants-related claims in the Company’sSafeguardPlan.NOTE25- POST BALANCESHEETEVENTSOn1March2023,the Companyacquired newsubsidiaries from entity, owned by Mr. Radovan Vítek, for EUR169 thousand.

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