FINANCIAL INFORMATION

2021

Including the

Consolidated financial statements

and

Report of the Réviseur d´Entreprises

for the financial year ended as at 31 December 2021

CPI FIM SA * Société Anonyme * 40 rue de la Vallée, L2661 Luxembourg

R. C. S. Luxembourg – B 44.996

SUMMARY

Management report
Declaration letter
Consolidated financial statements of the Group
Auditors´ Report
Statutory financial statements

CPI FIM SA | Société Anonyme | 40 Rue de la Vallée, L-2661 Luxembourg RCS Luxembourg B 44996

MANAGEMENT REPORT | 2

MESSAGE FROM THE MANAGEMENT 6
YEAR 2021 AND POST-CLOSING KEY EVENTS 7
Annual general meeting of shareholders 7
Acquisition of a resort hotel in Italy and of a land plot in the Czech Republic 7
Disposals of Bubenská 1, Prague and ZET.Office, Brno 7
Disposal of an industrial property in Stříbro 7
Fast food opens its door to the public 7
Disposal of CPIPG shares 7
Intergroup financing 7
COVID-19 impact 8
MARKET ENVIRONMENT 9
OPERATIONS OF THE GROUP IN 2021 12
Financing of CPIPG Group 12
Rendering of services to CPIPG Group 12
PROPERTY PORTFOLIO 13
Total Property Portfolio 13
Property Valuation 14
Office… 18
Land bank 21
Residential 23
Hotels 25
Retail… 26
Industry and Logistics 27
Development 28
FINANCING 29
Cash and cash equivalents 29
Financial liabilities 29
RESULTS AND NET ASSETS 30
Income statement 30
Balance sheet 31
CORPORATE GOVERNANCE 33
Principles 33
Board of Directors 33
Committees of the Board of Directors 36

Description of internal controls relative to financial information processing. 37
Remuneration and benefits 37
Corporate Governance rules and regulations 37
Additional information 39
SHAREHOLDING 42
Share capital and voting rights 42
Shareholder holding structure 42
Authorized capital not issued 42
POTENTIAL RISKS AND OTHER REPORTING REQUIREMENTS 43
Subsequent closing events 43
Other reporting requirements 43
Financial Risks exposure 43
Certain subsidiaries may be in breach of loan covenants 43
The Group's financing arrangements could give rise to additional risk 43
Market risk 44
Credit risk 44
Liquidity risk 44
Capital management 45
Risks associated with real estate and financial markets 45
CORPORATE RESPONSIBILITY 46
Environmental, social and ethical matters 46
Environmental matters 46
Social matters 46
Ethical matters 46
GLOSSARY & DEFINITIONS 47

CPI FIM SA, société anonyme (the "Company") and its subsidiaries (together the "Group" or "CPI FIM"), is an owner of income-generating real estate and land bank primarily in Poland and in the Czech Republic. The Company is a subsidiary of CPI Property Group (also "CPIPG" and together with its subsidiaries as the "CPIPG Group"), which holds 97.31% of the Company shares. The Company is also involved in providing of equity 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.

MESSAGE FROM THE MANAGEMENT

Despite the start of the year was marred by continued COVID-19 restrictions, the Group demonstrated resilient performance in 2021. This was largely due to the Group´s high exposure to office properties and land bank, the resilience of our tenants and careful cost management.

Total assets increased by €879.3 million (14%) to €7,383.6 million as at 31 December 2021. The EPRA Net Reinstatement Value (former EPRA NAV) per share as at 31 December 2021 was €1.04 compared to €0.74 as at 31 December 2020. At the end of 2021, the EPRA Net Disposal Value (former EPRA NNNAV) amounted to €0.94 per share compared to €0.68 at the end of 2020.

The Group achieved an operating profit of €316.5 million in 2021 compared to €177.3 million in 2020. Total net profit was €366.8 million in 2021 compared to €145.5 million in 2020.

Resulting from the Company's integration into CPI Property Group ("CPIPG") in 2016, one of its roles is to serve as an intergroup financing vehicle to the entities within CPIPG Group. As at 31 December 2021, the outstanding balance of the loans provided to CPIPG Group amounted to approximately €5,136.0 million. The Company also continues in providing strategic management and advisory services to entities within CPIPG Group.

During 2021, the Group purchased a resort hotel in Puglia, Italy and started to provide space for fast food operator in Vysočany, the Czech Republic. The Group also sold three properties in 2021; two office properties in the Czech Republic, Bubenská 1 in Prague and ZET.Office in Brno, were sold to CPIPG Group, and an industrial property in Stříbro, the Czech Republic was sold to an external buyer. As a result of these sales, the Group´s office gross leasable area decreased by 47,000 sqm and the Group's industrial gross leasable area decreased by 9,000 sqm.

The annual general meeting held in May 2021 (the "AGM") approved the statutory and consolidated accounts and the allocation of financial results for the financial year ending 31 December 2020. The AGM resolved to reappoint Anita Dubost, David Greenbaum, Edward Hughes, and Scot Wardlaw to the Board of Directors of the Company. David Greenbaum and Martin Němeček were also re-appointed as Managing Directors (administrateurs délégués) of the Company.

The Group will continue to focus on efficient operational performance and well-being of our tenants and employees.

David Greenbaum,

Managing Director

MANAGEMENT REPORT | 6

YEAR 2021 AND POST-CLOSING KEY EVENTS

Annual general meeting of shareholders

The AGM of shareholders of the Company was held on 28 May 2021 in Luxembourg, with approximately 97.3% of the voting rights present or represented.

The AGM approved the statutory annual accounts and consolidated annual accounts for the financial year ending 31 December 2020, as well as the allocation of financial results for the financial year ending 31 December 2020.

The AGM further granted a discharge to the members of the Company's Board of Directors as well as to the auditors for the performance of their duties during the financial year ending 31 December 2020.

The AGM also resolved to re-appoint the following persons as members of the Company's Board of Directors until the annual general meeting of 2022: Anita Dubost, David Greenbaum, Edward Hughes, and Scot Wardlaw. The AGM also re-approved Ernst & Young S.A., Luxembourg as an auditor of the Company until the annual general meeting of 2022.

The AGM re-elected David Greenbaum and Martin Němeček to serve as Managing Directors (administrateurs délégués) of the Company.

Acquisition of a resort hotel in Italy and of a land plot in the Czech Republic

During the first half of 2021, the Group acquired the Acaya resort in Puglia, Italy. The resort is surrounded by the natural oasis of Le Cesine, with its extraordinary biodiversity, and is located less than five kilometres from the Adriatic Sea. It offers 97 rooms and suites, 18 hole golf course, football field and two outdoor pools.

In June 2021, the Group also acquired a land plot in Brno, the Czech Republic with an area of 6,000 sqm.

Disposals of Bubenská 1, Prague and ZET.Office, Brno

During the first half of 2021, the Group sold two office properties in the Czech Republic, Bubenská 1 in Prague and ZET.Office in Brno to CPIPG Group. As a result of these sales, the Group´s office gross leasable area decreased by 47,000 sqm.

Disposal of an industrial property in Stříbro

Before the end of 2021, the Group sold an industrial complex in the Plzeňský region, the Czech Republic with a gross leasable area of approximately 9,000 sqm.

Fast food opens its door to the public

In October 2021, the Group leased out a newly developed building located in the Vysočany district, specifically in the Kbelská Street, which connects the D8 highway with the D10 highway. This single tenant property is fully let to the fast food operator and represented the only retail asset in the Group´s portfolio at the end of 2021.

Disposal of CPIPG shares

In February 2021, the Company disposed 252,302,248 shares of CPIPG at the price of EUR 0.616 per share. The disposal occurred as part of the share buy-back of CPIPG. The Company´s subsidiary Pietroni continues to hold 67,000,000 shares of CPIPG, representing 0.77% shareholding in CPIPG.

Intergroup financing

Resulting from the Company's integration into CPIPG Group in 2016, one of its roles is to function as an intergroup financing vehicle to the entities within CPIPG Group. In 2021, the Group continued to provide the equity loans to other entities within the CPIPG Group. As at 31 December 2021, the outstanding balance of the provided loans to CPI PG Group amounted to €5,136.0 million.

COVID-19 impact

Despite the start of the year was marred by continued COVID-19 restrictions, the Group demonstrated resilient performance in 2021. This was largely attributed to the Group´s high exposure to office properties and land bank, swift actions taken by governments in our region, the resilience of our tenants and careful cost management. The Group is consistently monitoring the situation, with a focus on business continuity and the well-being of our employees and tenants.

MARKET ENVIRONMENT

Global macro-economic conditions

Czech Republic¹

During 2021, GDP in the Czech Republic grew by 3.3%. The first months of 2021 were heavily affected by COVID-19 as the Czech government enforced a lockdown that lasted until April. The second quarter saw a sharp rebound in GDP growth of 8.7%, driven by increases in services and household consumption. During the second half, quarter-on-quarter GDP grew in Q3 by 3.5% and in Q4 by 3.6%. Manufacturing and production activities expanded again, while continuing to face headwinds by supply bottlenecks.

As the country emerged from almost five months of lockdown in April, employment levels and consumer activity increased significantly. The Czech unemployment rate declined to 3.5% by December, boasting one of the lowest unemployment rates in the Euro Area. It fell from its recent high in January when a rate of 4.3% was recorded. The tertiary sector mainly drove job creation. Consumer confidence climbed intra-year from its March 91.2 low to 104.9 in August before dropping in October again showing a pattern closely correlated to the COVID-19 infection waves.

The IHS Markit Manufacturing PMI climbed to a record level of 62.7 in June and ended the year on a clear expansion outlook with 59.1. Output growth and new orders were at 5-month highs providing good visibility on future business, while input cost inflation and supply chain issues put constraints on output.

Inflation reached record heights, with the inflation rate reaching 6.6% at year-end. The Czech central bank raised its benchmark rate several times during the year to 3.75% at year-end 2021, becoming a frontrunner in Europe fighting inflation. The Czech Koruna appreciated in value, reaching EUR/CZK 24.9 at the end of the year. The appreciation of the Czech Koruna was reversed in March 2022 following the outbreak of the Ukraine war.

Poland²

Poland achieved GDP growth rates above the EU27 average, in the top five fastest-growing economies in the EU28 bloc in 2019. Following a widespread and historic GDP fall in Poland in 2020 due to the coronavirus pandemic and economic activity rebounded sharply since the third quarter of 2020 and recorded healthy growth during 2020.

In the first months of 2021 intra-year growth rates remained slightly negative to zero due to the ongoing impacts of pandemic restrictions. Poland experienced high growth rates in the double digits during the second quarter. In the second half of the year, growth remained positive at healthy rates, albeit normalizing from the second quarter record levels. Overall GDP growth was in Poland 5.7%.

Poland experienced its peak unemployment in January 2021, followed by a strong 1.1% decline over the year ending at pre-pandemic levels with 5.4%.

Poland saw the most substantial increase in inflation to 8.6%, its highest level over the last 20 years, and above the National Bank of Poland (NBP) target (2.5% +/- 1%). Consequently, the central bank in the country increased their base rates several times during the year.

¹ Sources: Czech Statistical Office, Trading Economics, Ministry of Labour and Social Affairs

² Sources: Euler Hermes, Trading Economics, Erstegroup.com

Selected market focus

Prague office market³

At the end 2021, the total Prague modern office stock reached 3.73 million m², with only a total of 56,800 m2 of new office stock added to the market – the lowest annual new supply since 2016. Currently, there is approximately 195,200 m² of office space under construction with around 76,300 m² planned for completion in 2022, with c.30% pre-leased. However, this depends on the ability of developers to deliver on time with rising risks stemming from shortages of labour and materials supply.

In general, the office sector does not reflect any significant structural changes in the occupational market, although the pandemic has shifted occupancy strategies. Tenants are increasingly looking for more flexibility in workspace to accommodate hybrid working patterns and emphasise wellness and sustainability in their building selection. In 2021, the office leasing activity in Prague recorded a recovery compared to 2020 with net take-up increasing by 23% YoY. A total of 208,000 m² have been newly leased and almost 180,000 m² leased in renegotiations/renewals.

Majority of the total take-up was observed in Prague's 4, 8 and 5, which accounted for over 61% of the total in 2021. Of the known lease transactions, tenants from the IT sector were the most active (16%) followed by professional services companies (12%) and the pharmaceutical sector (12%).

In the last 18 months, cautious tenant demand and weaker leasing activity pushed vacancy upwards. However, this trend has since stabilized at 7.8% at the end of 2021 and is expected to flatten in 2022. Vacancy rates are expected to trend lower at a faster pace for high quality space in good locations.

Despite the high vacancy rate, at the end of 2021, prime rents in Prague increased to a new record as developers incur higher construction costs. City centre prime rents increased by 9% ranging between €23.50 and €24.00/m²/month. Inner-city prime rents ranged from €16.00 to €18.00/m²/month and €13.50 to €15.00/m²/month in the outer city. Further upward pressure on prime rents in the CBD is expected in 2022, albeit landlords will also be pressed to improve incentives.

Warsaw office market ⁴

At the end of 2021, Warsaw's total modern office stock amounted to 6.2 million m². The total new supply delivered to the Warsaw office market in 2021 was 325,000 m² as 16 buildings were completed. The largest new developments included: Warsaw Unit (59,300 m², Ghelamco Poland), Skyliner (44,700 m², Karimpol) and Generation Park Y tower (44,000 m², Skanska Property Poland).

Currently, there is only 310,000 m² of office space under construction, the lowest level since 2010. This slowdown in development activity is forecasting a supply gap in 2023, putting downward pressure on future vacancy rates.

Leasing activity in Warsaw showed an improvement versus 2020, with a total of 646,500 m² signed in 2021, representing a 7% YoY growth. Due to the pandemic, tenants are increasingly looking for attractive spaces and seeking flexible spaces to bring their employees back to the office. Companies are also taking a more conservative approach to leasing and renegotiating existing leases rather than moving to new locations. As a result, renegotiations accounted for 45% of total office take-up – the highest annual figure on record.

The combination of high supply brought to the Warsaw market and the lower demand for new office space translated into lower absorption and a rising average vacancy rate, which climbed to 12.7% at the end of 2021. While the number of sublease offers increased during the start of the pandemic, this trend saw a marked

³ Source: C&W, CBRE, Savills

⁴ Source: JLL, CBRE, PINK

CPI FIM

slowdown in 2021. Currently, there are approximately 110,000 m² of office space available for subleasing – 20,000 m² less than in 2020.

Prime office properties rent remained stable in 2021, ranging between €18 and €24/m²/month in the city centre and up to €16/ m²/month outside of the area. Rental rates are expected to rise in 2022 and continue in 2023 due to the new supply gap leading to severely limited rental opportunities.

The office sector remains one of the key segments of Poland's investment market. A total of €1.7 billion was transacted in 2021 and was dominated by Warsaw office transactions as investors are keen to secure prime locations in the capital city. Robust investor demand led to yield compression, with Warsaw office prime yields reaching 4.5% in Q4 2021.

OPERATIONS OF THE GROUP IN 2021

The Group is engaged in financing of and rendering of services to entitites within the CPIPG Group and also holds and operates a significant property portfolio.

Financing of CPIPG Group

The Group acts as an internal financing entity within the CPIPG Group and shall finance the real estate companies (SPVs) by intra-group loans. In order to fund the intra-group loans, CPIPG raises external financing and provides these funds to CPI FIM. Subsequently, CPI FIM provides the funds in a form of loans to the respective SPVs.

In 2021, the Group continued to provide the equity loans to other entities within the CPIPG Group.

The Group generated interest income of €212 million in 2021 which represents an increase by €42 million, compared to 2020.

As at 31 December 2021, the Group provided loans to related parties in the amount of €5,135 million, which represents an increase by €786 million compared to 31 December 2020. As at 31 December 2021, the loans provided in the amount of €187 million and €4,948 million were classified as current and non-current, respectively.

Rendering of services to CPIPG Group

CPI FIM, as the main service company within the CPIPG Group provides its affiliates with a wide range of management and key business services. Key strategic services provided by CPI FIM mainly include development of investment strategies and plans for SPVs, communication with banks and financial strategy planning, analyses of markets, negotiations and relationship with key tenants.

In 2021, the Group provided CPIPG and its subsidiaries with services for a total amount of €22.8 million.

PROPERTY PORTFOLIO

Total Property Portfolio

The Group concentrates on long-term investments and real-estate lease, primarily in the Central European region. The Group owns rental income-generating properties mainly in the office segment but is also focused on an extensive portfolio of land plots in the Czech Republic.

The property portfolio of the Group is reported on the balance sheet under the following positions:

Investment property
Property, plant and equipment
Inventories
Assets held for sale

"Investment property" consists of rental properties, investment property under development and land bank. Investment property under development represents projects currently in progress, which will be reclassified by the Group as rental properties after completion. Land bank represents properties held for development and/or capital appreciation.

"Property, plant and equipment" comprises hotel properties or advances paid for construction works on the projects.

MANAGEMENT REPORT | 13

"Inventories" comprise properties that are under development or have been finished and are intended for a future sale in the ordinary course of business.

"Assets held for sale" consist of properties presented in accordance with IFRS 5 "Non-current Assets Held for Sale and Discontinued Operations" which are to be sold due to the intention of the management.

The property portfolio report covers all properties held by the Group, independent of the balance sheet classification. These properties are reported as income generating properties (generating rental income or income from operations), development projects (investment property projects under development and inventories) or land bank.

The following chart reconciles the property assets of the Group as reported on the balance sheet as at 31 December 2021 with the presentation in our portfolio report:

Property Valuation

The consolidated financial statements of the Group as at 31 December 2021 were prepared in compliance with International Financial Reporting Standards (IFRS) as adopted by European Union, which include the application of the fair value method. Since the Investment properties owned by the Group must be stated at fair value, the regular valuation of these properties by independent experts is recommended.

The property portfolio valuation as at 31 December 2021 is based on reports issued by:

Jones Lang LaSalle (further "JLL"). JLL is a financial and professional services company specializing in real estate services and investment management. JLL has more than 91,000 employees across 337 corporate offices in more than 52 countries and serve the local, regional and global real estate needs of their clients.
Knight Frank. Knight Frank provides a worldwide service that's personalised, clear and considered advice on all areas of property in all key markets. Knight Frank has a headquarters in London and has more than 384 offices across 51 territories and employing more than 16,000 people.
CBRE is a commercial real estate services and investment firm. It is the largest company of its kind in the world. It is based in Dallas, Texas and operates in 500 offices worldwide and serves clients in more than 100 countries, employing more than 100,000 global professionals.
Colliers is a leading diversified professional services and investment management company. Colliers operates in 64 countries and draws on the expertise of over 27,000 professionals work collaboratively to provide expert real estate and investment advice to clients.
Savills. Savills provides in-depth knowledge and expert advice across all property sectors, so they can help with everything from asset management to valuation. Savills operates in 70 countries around the world (across the Americas, Europe, Asia Pacific, Africa and the Middle East) and draws on the expertise of over 39,000 professionals.
Cushman&Wakefield (further "C&W"). C&W is a one of the leading commercial real estate services company, providing a full range of services to real estate occupiers, developers and investors on a local and international basis. C&W has about 400 offices in 60 countries, employing more than 50,000 professionals.
RSM in CZ&SK (further "RSM"). RSM is part of the sixth largest network of professional firms RSM International. RSM International operates in 120 countries, has 820 offices and more than 48,000 professionals. RMS provides clients with services in the field of mergers & acquisitions, valuations, tax, trustee services, accounting and payroll.

*Cushman&Wakefield, RMS CZ&SK, Aquisition costs, internal, AHFS

The following table shows the carrying value of the Group's property portfolio as at 31 December 2021 and 31 December 2020:

PROPERTY PORTFOLIO as at 31 December 2021	No of properties	No. of units	No. of hotel rooms	GLA thousand sqm	Office € million	Residential € million	Industry and logistics € million	Hotel € million	Retail € million	Land bank € million	PP value € million	PP value %
Czech Republic	2	--	--	9	26	--	--	--	2	866	894	56%
Poland	4	--	--	157	614	--	--	--	--	0.4	614	39%
Italy	1	5	97	--	--	25	--	21	--	--	46	3%
France	--	3	--	--	--	36	--	--	--	--	36	2%
The GROUP	7	8	97	166	640	61	--	21	2	866	1,590	100%

PROPERTY PORTFOLIO as at 31 December 2020	No of properties	No. of units	No. of hotel rooms	GLA thousand sqm	Office € million	Residential € million	Industry and logistics € million	Hotel € million	Retail € million	Land bank € million	PP value € million	PP value %
Czech Republic	4	--	--	64	131	--	2	--	--	604	737	54%

Poland	4	--	--	157	584	--	--	--	--	0.4	584	43%
France	--	3	--	--	--	34	--	--	--	--	34	2%
Italy	--	5	--	--	--	12	--	--	--	--	12	1%
The GROUP	8	8	---	221	715	46	2	--	--	604	1,367	100%

The Group´s property value totals €1,590 million as at 31 December 2021 (31 Dec 2020: €1,367 million), of which 40% is represented by office and 55% is represented by land bank. The majority of the Group´s property portfolio is located in the Czech Republic with 56%, Poland with 39%, followed by Italy with 3% and France with 2%.

MANAGEMENT REPORT | 16

The total net change of €223 million in the portfolio value in 2021 was mainly attributable to the following:

Acquisitions of €21 million, primarily relating to the Acaya resort in Italy of €19 million, and the acquisition of land bank of €2 million in the Czech Republic;
Disposals of €113 million, comprising especially two office properties and an industrial complex in the Czech Republic;
Change in fair value of €296 million, represented mainly by a land bank portfolio in the Czech Republic, office properties in Warsaw and FX impact;
Additions of €19 million, mainly spent on investment Property within the whole Group.

Office

Key Figures – December 2021

Office portfolio represents an important segment of investment activities of the Group. As at 31 December 2021 the Group owns buildings in Poland and in the Czech Republic.

OFFICE 31 December 2021	No of properties	PP value	PP value	GLA	Occupancy	Rent per sqm	Outstanding financing
		€ million	%	thds. sqm	%	€	€ million
Poland	4	614	96%	157	95.2%	17.6	--
Czech Republic	1	26	4%	8	89.6%	7.5	--
The GROUP	5	640	100%	165	95.0%	17.1	--

OFFICE 31 December 2020	No of properties	PP value	PP value	GLA	Occupancy	Rent per sqm	Outstanding financing
		€ million	%	thds. sqm	%	€	€ million
Poland	4	584	82%	157	96.2%	17.1	--
Czech Republic	3	131	18%	55	57.5%	16.5	--
The GROUP	7	715	100%	212	86.1%	17.0	--

• Eurocentrum Office, Warsaw

Eurocentrum Office has a highest LEED level of certification, i.e. PLATINUM and offers over 85,000 sqm of lettable space. Eurocentrum Office is a modern office building with many ecofriendly solutions, for example: rainwater is used for flushing toilets and watering greenery in atrium - savings in drinking water consumption; savings in electricity consumption for general building systems; heat island effect reduction with the employment of high light reflecting roof membrane etc.

Furthermore Eurocentrum has 1,500 sqm atrium with natural vegetation, a wide range of shops and restaurants, excellent access to daylight as a result of large glazing areas, fresh air exchange process well above average, office space is not overheated in the summer and amenities dedicated to persons using alternative means transportation: parking spaces for bicycles (over 200 parking place), changing rooms and showers and 22 charging stations for electric cars. In 2016, a sky apiary was created on the roof of the Eurocentrum office building.

• Warsaw Financial Center, Warsaw

Warsaw Financial Center, one of Warsaw's most prestigious skyscraper (LEED Gold), was completed in 1998 and offers almost 50,000 sqm of grade A office space across 32 floors. It was designed by the American architects Kohn Pedersen Fox Associates in cooperation with A. Epstein & Sons International. Warsaw Financial Center has a very good location. WFC is located only 0.6 km from Warsaw's main train station, 8.3 km from international Warsaw Chopin Airport and 39.3 km from Warsaw Modlin Airport.

Warsaw Financial Center is a 32-story high skyscraper with sixteen elevators, open space offices with colorful walls, huge Marylin Monroe prints, and comfortable sofas for creative brainstorming, or classic timeless interiors in understated hues support uniqueness of the building. At any time during the day, the first six floors of the building offer 350 parking spaces for cars and bicycles.

Currently, WFC ranks among the most prestigious high-rise buildings in Poland. Top Polish and international corporations have beenattracted by its outstanding quality (Google, Bloomberg and Kompania Piwowarska).

• Equator IV Offices, Warsaw

Equator IV Offices was constructed in 2018 and is of a modern A-class specification (BREEAM Very Good). It has 16 aboveground and 4 underground levels comprising 226 parking spaces. The Property consists of stand-alone office building comprising more than 21,000 leasable sqm, situated on a site with a total area of 2,900 sqm.

Property is located in Warsaw within Ochota district, in a distance of ca. 3 km to the Palace of Culture and Science, considered as a central point of Warsaw.The office building is situated at the main east-west arterial

road in Warsaw – Al. Jerozolimskie within a third largest office district in Warsaw– "Jerozolimskie corridor". The area is a recognized office location providing direct access and reasonable distance to the city centre as well as convenient access to the Warsaw ring road.

• Diana Office, Warsaw

The property was constructed in 2004 and comprises about 1,500 sqm of rentable area. The Property is located in Warsaw city centre, along Chmielna Street, which forms one of the best recognizable retail streets of the city. The building is of a reinforced concrete structure with hip roof. The property is fully let to one tenant - Goethe Institut.

• Mayhouse, Prague

The Mayhouse office building is located in the sought-after area of Pankrác, Prague 4. Mayhouse has an excellent accessibility. Only a few minutes' walk is situated metro line C Pražského povstání and tram station Vozovna Pankrác is just around the corner. By car, you can promptly reach the historic city centre as well as to the Prague ring road and D1 motorway.

The office building has six above ground floors and offers almost 8,000

sqm of leasable modern space. The interior of the premises comprises modern, 'A' grade office areas, which include air-conditioned offices with suspended ceilings, double floors, openable windows, kitchenettes and the electronic access system. Fitness, showers, bike storage and lounge are situated on the ground floor. There are also 69 parking spaces in the underground parking garage.

Land bank is comprised of an extensive portfolio of land plots primarily in the Czech Republic. Plots are often in attractive locations, either separate or adjacent to existing commercial buildings or in the city centre and their value continues to increase with the growth of surrounding infrastructure. Out of the total plots area, approximately 11.2% are with zoning.

LAND BANK 31 December 2021	Total area thds. sqm	Area with zoning thds. Sqm	Area without zoning thds. Sqm	PP value € million	PP value %	Outstanding financing € million
Czech Republic	18,061	2,012	16,049	866	99.9%	--
Poland	14	14	--	0.4	0.1%	--
THE GROUP	18,075	2,026	16,049	866	100%	--

LAND BANK 31 December 2020	Total area thds. sqm	Area with zoning thds. sqm	Area without zoning thds. sqm	PP value € million	PP value %	Outstanding financing € million
Czech Republic	18,028	1,591	16,437	604	99.9%	--
Poland	14	14	--	0.4	0.1%	--
THE GROUP	18,042	1,605	16,437	604	100%	--

Among land bank plots, the land bank portfolio includes:

Former brownfield:
- (1) Praga in Prague amounting to circa 64,200 sqm, which are zoned, are prepared for residential development with expected start in April 2022;
- (2) Nová Zbrojovka in Brno with 231,600 sqm that will be used for mixed development (Commercial & Residential).
Bubny located close to the city centre. Bubny remains the last brownfield plot in the centre of Prague and the Group intends to develop mixed-use area consisting of residential and commercial units, offices and shops as well as educational, medical, and cultural facilities. In addition, a modern train terminal at Vltavská metro station and large green spaces will be incorporated. The main goal for the mid-term period is to continue the process of changing the Bubny masterplan. The plot of Bubny amounting to over 200,000 sqm of land in Prague 7 is at the core of the commercial development pipeline in Central Europe.

On 26 June 2018, the Group disposed of 80% stake of Bubny Development, s.r.o. In accordance with IFRS 10, through remaining 20% stake the Group retained control over this subsidiary which is why it´s being consolidated by the Company.

• Land plot Holešovice (at the metro line C, station Nádraží Holešovice) of 10,000 sqm is strategically located nearby Group's existing land bank in Bubny. The land plot was leased back to the seller and will continue to operate as a bus terminal.

CPI FIM

In 2021, the Group extended its land bank portfolio in the Czech Republic by 55,000 sqm (Karlovy Vary and Brno). On the other hand, the Group disposed 22,000 sqm of land bank representing selected projects in the Czech Republic.

Residential

Key Figures – December 2021

The Group currently owns 8 residential units. Three of them are located in the district of Saint-Anne and Mont Boron in France. A building with five residential units is located on Piazza della Pigna in Rome, Italy.

RESIDENTIAL 31 December 2021	PP value	PP value	Occupancy*		No. of rented	Outstanding financing
	€ million	%	%	No. of units	units	€ million
France	36	59%	33.3%	3	1	21
Italy	25	41%	0.0%	5	--	--
The GROUP	61	100%	12.5%	8	1	21

* Occupancy based on rented units

RESIDENTIAL 31 December 2020	PP value	PP value	Occupancy*		No. of rented	Outstanding financing
	€ million	%	%	No. of units	units	€ million
France	34	74%	0.0%	3	--	21
Italy	12	26%	0.0%	5	--	--
The GROUP	46	100%	0.0%	8	--	21

* Occupancy based on rented units

• Villa Lou Paradou

Neo provençal style villa dating from the 1970's is exposed to the South-West side and it is used as residential accommodation. It consists of walkup basement, a ground floor with one adjoining service house (studio) below the main house and a swimming pool. There is also a horse stable at the entrance of the property.

• Villa Mas Du Figuer

The property consists of a private villa used as residential accommodation, arranged over a basement, a ground floor and first upper floor. There is also a guest house (comprised 4 bedrooms and a guard house), a gym and a garage. The outside facilites include two swimming-pools and a tennis court.

• High-end residence

Former 5* hotel transformed into a high-end residence. Property has common areas and facilities, a large outdoor pool with sea views and spacious gardens. The property benefits from its location. It is situated on the waterfront within the city limits of Nice. There is an easy access to city centre or public beaches.

• Residential property Piazza della Pigna

The sixteenth-century building has five above-ground floors, a warehouse and car parking on the underground level, and a winter garden on the ground floor. The rooms are built around a staircase connecting the five floors, all decorated with highend finishes and superb marble and wood inlays.

Hotels

Key Figures – December 2021

During the first half of 2021, the Group acquired the Acaya resort in Puglia, Italy.

HOTELS 31 December 2021	No. of properties	No. of rooms	PP value € million	PP value %	Outstanding financing € million
Italy	1	97	21	100%	--
The GROUP	1	97	21	100%	--

HOTELS	No. of properties	No. of rooms	PP value	PP value	Outstanding financing
31 December 2020			€ million	%	€ million
Italy	--	--	--	--	--
The GROUP	--	--	--	--	--

• Hotel Acaya

The Acaya resort is surrounded by the natural oasis of Le Cesine, with its extraordinary biodiversity, and is located less than five kilometres from the Adriatic Sea. It offers 97 rooms and suites, 18 hole golf course, football field, an extraordinary 1,200 sqm spa, indoor and outdoor pools.

Retail

Key Figures – December 2021

The 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 drive-thru service. The lease agreement with McDonald's was signed until September 2041. The property is located in the Vysočany district, Prague.

RETAIL 31 December 2021	No of	PP value	PP value	GLA	Occupancy	Rent per sqm	Outstanding financing
	properties	€ million	%	thds. sqm	%	€	€ million
Czech Republic	1	2	100%	0.5	100%	15.0	--
The GROUP	1	2	100%	0.5	100%	15.0	--

RETAIL 31 December 2020	No of properties	PP value € million	PP value %	GLA thds. sqm	Occupancy %	Rent per sqm €	Outstanding financing € million
Czech Republic	--	--	--	--	--	--	--
The GROUP	--	--	--	--	--	--	--

Industry and Logistics

Before the end of 2021, the Group sold an industrial complex in Stříbro, the Czech Republic with a gross leasable area of approximately 9,000 sqm.

At the end of 2021, the Group has no industrial property in the portfolio.

INDUSTRY AND LOGISTICS	No of	PP value	PP value	GLA	Occupancy	Rent per sqm	Outstanding financing
31 December 2021	properties	€ million	%	thds. sqm	%	€	€ million
Czech Republic	--	--	--	--	--	--	--
The GROUP	--	--	--	--	--	--	--

INDUSTRY AND LOGISTICS 31 December 2020	No of properties	PP value € million	PP value %	GLA thds. sqm	Occupancy %	Rent per sqm €	Outstanding financing € million
Czech Republic	1	2	100%	9	0.0%	--	--
The GROUP	1	2	100%	9	0.0%	--	--

Development

At the end of 2021, the Group has no active development project in the portfolio.

DEVELOPMENT 31 December 2021	No of properties	Potential GLA thds. sqm	Potential GSA thds. sqm	Development for rental € million	Development for sale € million	Development for rental %	Development for sale %	Outstanding financing € million
--	--	--	--	--	--	--	--	--
THE GROUP	--	--	--	--	--	--	--	--

DEVELOPMENT	No of	Potential	Potential	Development	Development	Development	Development	Outstanding
31 December 2020	properties	GLA	GSA	for rental	for sale	for rental	for sale	financing
		thds. sqm	thds. sqm	€ million	€ million	%	%	€ million
--	--	--	--	--	--	--	--	--
THE GROUP	--	--	--	--	--	--	--	--

FINANCING

Cash and cash equivalents

As at 31 December 2021, cash and cash equivalents consist of cash at bank of €210.1 million (2020: €249.2 million) and cash on hand of €2 thousand (2020: €2 thousand).

Financial liabilities

Financial debts amount to €5,661.7 million including mainly loans from CPIPG (€5,173.7 million).

Financial debts increased by €429.8 million. This variation is mainly due to additional drawdowns of long-term loans provided by CPI PG of €542.9 million. On the other hand, short-term loan provided by CPIPG of EUR 62.0 million was fully repaid.

RESULTS AND NET ASSETS

Income statement

Income statement for the year ended 31 December 2021 is as follows:

	12 month period ended
	31 December 2021	31 December 2020
Gross rental income	34,880	34,142
Service charge and other income	32,499	32,469
Cost of service and other charges	(9,719)	(10,803)
Property operating expenses	(4,048)	(3,413)
Net service and rental income	53,612	52,395
Hotel revenue	246	-
Hotel operating expenses	(248)	-
Net service and rental income	(2)	-
Total revenues	67,625	66,611
Total direct business operating expenses	(14,015)	(14,216)
Net business income	53,610	52,395
Net valuation gain on investment property	263,702	146,433
Net gain on the disposal of investment property and subsidiaries	3,746	(602)
Net gain on the disposal of other investments	6,175	-
Amortization, depreciation and impairments	3,455	(7,400)
Administrative expenses	(14,022)	(13,252)
Other operating income	704	406
Other operating expenses	(827)	(673)
Operating result	316,543	177,307
Interest income	211,507	169,821
Interest expense	(161,231)	(141,693)
Other net financial result	56,554	(9,955)
Net finance income	106,830	18,173
Share of profit of equity-accounted investees (net of tax)	1,146	3,320
Profit before income tax	424,519	198,800
Income tax expense	(57,676)	(53,286)
Net profit from continuing operations	366,843	145,514

Rental income

Gross rental income increased to €34.9 million in 2021 (2020: €34.1 million). The increase is due to higher rental income of Polish offices by EUR 0.9 million.

Net valuation gain

The net valuation gain amounts to €263.7 million (€146.4 million in 2020) and comprised of valuation gain of €265.5 million and valuation loss of €1.8 million. The valuation gain was mainly attributable to the Czech property portfolio (€226.4 million). The gain was driven primarily by the general market conditions, zoning approvals as well as by improved assumptions assumed by the external valuation expert, for more details please refer to note 7.5 of the Consolidated Financial Statements as at 31 December 2021.

Administrative expenses

Administrative expenses increased to €14.0 million in 2021 compared to €13.3 million in 2020. In 2021, administrative expenses increase due to management services provided to CPI FIM by related parties.

Net finance income

Total net finance income has increased from €18.2 million in 2020 to €106.8 million in 2021. The interest income increased from €169.8 million in 2020 to €211.5 million in 2021. The increase in interest income reflects the increase in loans provided by the Company to entities within the CPIPG Group and other related parties. The interest expense increased from €141.7 million in 2020 to €161.2 million in 2021. The increase in interest expense reflects the increase in loans received by the Company from entities within the CPIPG Group and other related parties.

The other net financial result has increased from a loss of €10 million in 2020 to a gain of €56.6 million in 2021. The net foreign exchange gain was driven by retranslation of loans provided to related parties in foreign currencies.

Balance sheet

Balance sheet as at 31 December 2021 corresponds to consolidated financial statements.

	31 December 2021	31 December 2020
NON-CURRENT ASSETS
Intangible assets	610	15
Investment property	1,514,430	1,367,184
Property, plant and equipment	22,193	662
Equity accounted investees	8,190	7,044
Other investments	52,990	188,884
Loans provided	4,948,061	4,234,093
Trade and other receivables	74	-
Deferred tax asset	133,921	142,019
Total non-current assets	6,680,469	5,939,901
CURRENT ASSETS
Inventories	355	300
Current tax receivables	116	81
Derivative instruments	2,078	1,694
Trade receivables	6,929	6,511
Loans provided	186,859	115,168
Cash and cash equivalents	210,076	249,190
Other receivables	236,795	188,232
Other non-financial assets	5,379	3,289
Assets held for sale	54,586	-
Total current assets	703,173	564,465

TOTAL ASSETS	7,383,642	6,504,366
EQUITY
Equity attributable to owners of the Company	1,238,649	899,041
Non-controlling interests	277,321	204,531
Total equity	1,515,970	1,103,572
NON-CURRENT LIABILITIES
Financial debts	5,400,425	4,855,740
Deferred tax liability	130,866	78,500
Provisions	-	-
Other financial liabilities	4,793	8,904
Total non-current liabilities	5,536,084	4,943,144
CURRENT LIABILITIES
Financial debts	261,324	376,179
Trade payables	8,953	8,618
Income tax liabilities	687	20
Other financial liabilities	59,534	68,677
Other non-financial liabilities	1,090	4,156

Liabilities held for sale	-	-
Total current liabilities	331,588	457,650
TOTAL EQUITY AND LIABILITIES	7,383,642	6,504,366

Total assets and total liabilities

Total assets increased by €879.3 million (14%) to €7,383.6 million as at 31 December 2021. The main reason is the increase of long-term loans provided to entities within the CPIPG Group.

Non-current and current liabilities total €5,867.7 million as at 31 December 2021 which represents an increase by €466.9 million (8.6%) compared to 31 December 2020. The main driver was an increase of loans provided to the Company by CPIPG.

EPRA NRV (former EPRA NAV) and EPRA NDV (former EPRA NNNAV)

In October 2019, the European Public Real Estate Association (EPRA) published new Best Practice Recommendations (BPR). EPRA Net Asset Value (NAV) and EPRA Triple Net Asset Value (NNNAV) are replaced by three new Net Asset Valuation metrics: EPRA Net Reinstatement Value (NRV), EPRA Net Tangible Assets and EPRA Net Disposal Value (NDV). The Company provides below the calculation of EPRA NRV as an equivalent of former EPRA NAV and the calculation of EPRA NDV as an equivalent of former EPRA NNNAV.

As at 31 December 2021, the consolidated equity increased by €339.6 million. The main driver of this increase is the profit for the period amounting to €294.1 million and an increase of translation reserve by €31.0 million and of revaluation reserve by €14.6 million.

The EPRA Net Reinstatement Value per share as at 31 December 2021 is €1.04 compared to €0.74 as at 31 December 2020.

	31 December 2021	31 December 2020
Consolidated equity	1,238,649	899,041
Deferred taxes on revaluations	133,998	79,708
EPRA Net reinstatement value	1,372,647	978,749
Existing shares (in thousands)	1,314,508	1,314,508
Net reinstatement value in € per share	1.04	0.74
EPRA Net reinstatement value	1,372,647	978,749
Deferred taxes on revaluations	(133,998)	(79,708)
EPRA Net disposal value	1,238,649	899,041
Fully diluted shares	1,314,508	1,314,508
Net disposal value in € per share	0.94	0.68

The EPRA Net Disposal Value amounts to €0.94 per share as at 31 December 2021 compared to €0.68 at the end of 2020.

CORPORATE GOVERNANCE

Principles

Good corporate governance improves transparency and the quality of reporting, enables effective management control, safeguards shareholder interests and serves as an important tool to build corporate culture. The Company is dedicated to acting in the best interests of its shareholders and stakeholders. Towards these ends, it is recognized that sound corporate governance is critical. The Company is committed to continually and progressively implementing industry best practices with respect to corporate governance and has been adjusting and improving its internal practices in order to meet evolving standards. The Company aims to communicate regularly to its shareholders and stakeholders regarding corporate governance and to provide regular updates on its website.

Since the Company was founded in 1991, its accounts have been audited regularly each year. KPMG has served as auditor of the Company since 2013. In 2019, the Company tendered for a new auditor. The Company´s Audit Committee recommended an appointment of Ernst & Young S.A., Luxembourg as the Group´s new auditor for the financial year commencing on 1 January 2019, which was approved by shareholders' general meeting. The 2021 annual general meeting of shareholders resolved unanimously to appoint Ernst & Young S.A., Luxembourg, as the approved auditor (réviseur d'entreprises agréé) of the Company until the annual general meeting of shareholders of the Company to be held in 2022.

In addition, the Company's portfolio of assets is regularly evaluated by independent experts.

In 2007, the Company's Board of Directors adopted the Director's Corporate Governance Guide and continues to communicate throughout the Group based on the values articulated by this guide. As a company incorporated in Luxembourg, the Company's primary regulator is the Commission de Surveillance du Secteur Financier (the "CSSF"). The Company's procedures are designed to comply with applicable regulations, in particular those dealing with market abuse. The Company also has a risk assessment procedure designed to identify and limit risk. In addition, the Company aims to implement corporate governance best practices inspired by the recommendations applicable in Luxembourg and Poland.

On 23 May 2012, the Board of Directors elected the Ten Principles and their Recommendations of the Luxembourg Stock Exchange as a reference for its Corporate Governance Rules (https://www.bourse.lu/corporate-governance).

The Company's parent company CPIPG has implemented industry best practices with respect to corporate governance and external reporting. In 2019, the CPIPG Group approved the "Code of Business Ethics and Conduct of CPI Property Group" and also newly updated policies governing procurement, supplier and tenants' conduct, anti-bribery and corruption, anti-money laundering, sanctions and export controls, whistleblowing, human capital and employment and corporate social responsibility (CSR). These were adopted for the Group (for more details regarding the application of the CSR policies across the CPIPG Group kindly refer to annual report of CPIPG).

Board of Directors

The Company is administered and supervised by a Board of Directors made up of at least three members.

Appointment of Directors

The Directors are appointed by the general meeting of shareholders for a period of office not exceeding six years. They are eligible for re-election and may be removed at any time by decision of the general meeting of shareholders by simple majority vote. In the event of a vacancy in the office of a Director, the remaining Directors may provisionally fill such vacancy, in which case the general meeting of shareholders will hold a final election at the time of its next meeting.

Current Board of Directors

As at 31 December 2021 the Board of Directors consisted of: 2 members representing the management of CPIPG Group, Mr. David Greenbaum and Mrs. Anita Dubost, and 2 independent members, Mr. Edward Hughes and Mr. Scot Wardlaw.

Anita Dubost, 1979 , Tax Manager, executive member.

Anita Dubost was appointed to the Board of Directors in May 2019. Before joining the CPIPG, she worked at Tristan Capital Partners as Senior Tax Manager within Luxembourg Operations team. In her role she was in charge of overseeing the tax structuring of the Tristan-managed funds. She was also member of the Investment Committee. Anita began her career at Atoz (member of the international Tax and network) where she was Senior Associate advising multi-national clients. Anita holds a Master's Degree in Law and in Business Administration specialized in finance and tax.

David Greenbaum, 1977, Chief Financial Officer of CPI Property Group, executive member.

David Greenbaum was appointed to the Board of Directors in May 2019. Before joining the CPIPG, he worked for nearly 16 years at Deutsche Bank, where he was most recently co-head of debt capital markets for the CEEMEA region. David began his career at Alliance Capital Management in 1999. In 2000 he joined Credit Suisse First Boston before moving to Deutsche Bank in 2002. David graduated magna cum laude from Cornell University with a degree in English language and literature.

Edward Hughes, 1966, independent, non-executive member.

Edward Hughes has been a member of the Board of Directors since March 2014. He has been engaged in real estate investment, consultancy and brokerage activities in Central Europe for more than 20 years. Edward is an experienced real estate and finance professional having engaged in many significant asset acquisition, and development projects in the region. Edward is a Chartered Accountant, after starting his career with Arthur Andersen (London - 1988), in September 1991 he transferred to the Prague office. Since this time, he has been almost exclusively focused on Central Europe including during his employment as an Associate Director of GE Capital Europe. Edward is a graduate of Trinity College, Dublin where he majored in Business and Economics with Honours (1988).

Scot Wardlaw, 1967, independent, non-executive member.

Scot Wardlaw was appointed to the Board of Directors in May 2020. Scot has over two decades experience in project and process management in the fields of IT, software and product development in an international environment. He currently serves as Managing Director for various real estate investment platforms based in Luxembourg and is part of Central Business Development at SIMRES Real Estate where he manages the group's strategic development. Scot graduated magna cum laude from Savannah College of Art & Design with a degree in Computer Art and Art History.

The current members of the Board of Directors are appointed until the annual general meeting of 2022 concerning the approval of the annual accounts of the Company for the financial year ending 31 December 2021.

The independent directors are not involved in management, are not employees or advisors with a regular salary and do not give professional services such as external audit services or legal advice. Furthermore, they are not related persons or close relatives of any management member or majority shareholder of the Company.

The Board of Directors meetings are held as often as deemed necessary or appropriate. All members, and in particular the independent and non-executive members, are guided by the interests of the Company and its business, such interests including but not limited to the interests of the Company's shareholders and employees.

Powers of the Board of Directors

The Board of Directors represents the shareholders and acts in the best interests of the Company. Each member, whatever his/her designation, represents the Company's shareholders.

The Board of Directors is empowered to carry out all and any acts deemed necessary or useful in view of the realisation of the corporate purpose; all matters that are not reserved for the general meeting by law or by the present Articles of Association shall be within its competence. In its relationship with third parties, the Company shall even be bound by acts exceeding the Company's corporate purpose, unless it can prove that the third party knew such act exceeded the Company's corporate purpose or could not ignore this taking account of circumstances.

Deliberations

The Board of Directors may only deliberate if a majority of its members are present or represented by proxy, which may be given in writing, by telegram, telex or fax. In cases of emergency the Directors may vote in writing, by telegram, telex, fax, electronic signature or by any other secured means.

The decisions of the Board of Directors must be made by majority vote; in case of a tie, the Chairman of the meeting shall have the deciding vote.

Resolutions signed unanimously by the members of the Board of Directors are as valid and enforceable as those taken at the time of a duly convened and held meeting of the Board.

The Board will regularly evaluate its performance and its relationship with the management. During H1 2021, the Board held three meetings, with all members being present or represented.

Delegations of powers to Managing Directors

The Board of Directors may delegate all or part of its powers regarding the daily management as well as the representation of the Company with regard to such daily management to one or more persons (administrateur délégué), who need not be Directors (a "Managing Director"). The realization and the pursuit of all transactions and operations basically approved by the Board of Directors are likewise included in the daily management of the Company. Within this scope, acts of daily management may include particularly all management and provisional operations, including the realization and the pursuit of acquisitions of real estate and securities, the establishment of financings, the taking of participating interests and the placing at disposal of loans, warranties and guarantees to group companies, without such list being limitative.

David Greenbaum and Martin Němeček are elected as Managing Directors (administrateurs délégués) of the Company.

Signatory powers within the Board of Directors

The Company may be validly bound either by the joint signatures of any two Directors or by the single signature of a Managing Director.

Special commitments in relation to the election of the members of the Board of Directors

The Company is not aware of commitments that are in effect as of the date of this report by any parties relating to the election of members of the Board of Directors.

Management of the Company

The management is entrusted with the day-to-day running of the Company and among other things to:

• be responsible for preparing complete, timely, reliable and accurate financial reports in accordance with the accounting standards and policies of the Company;

submit an objective and comprehensible assessment of the company's financial situation to the Board of Directors;
regularly submit proposals to the Board of Directors concerning strategy definition;
participate in the preparation of decisions to be taken by the Board of Directors;
supply the Board of Directors with all information necessary for the discharge of its obligations in a timely fashion;
set up internal controls (systems for the identification, assessment, management and monitoring of financial and other risks ), without prejudice to the Board's monitoring role in this matter; and
regularly account to the Board for the discharge of its responsibilities.

The members of the management meet on a regular basis to review the operating performance of the business lines and the containment of operating expenses.

As at 31 December 2021, 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.

Committees of the Board of Directors

As at 31 December 2021 the Board of Directors has the following committees:

Audit Committee; and
Remuneration, Appointment and Related Party Transaction Committee.

The implementation of decisions taken by these committees enhances the Company's transparency and corporate governance.

Independent and non-executive directors are always in majority of the members of these committees.

Audit Committee

The Audit Committee is now comprised of Mr. Edward Hughes, Mr. Scot Wardlaw, and Mrs. Anita Dubost. Mr. Edward Hughes is the president of the Audit Committee.

The Audit Committee reviews the Company's accounting policies and the communication of financial information. In particular, the Audit Committee follows the auditing process, reviews and enhances the Company's reporting procedures by business lines, reviews risk factors and risk control procedures, analyzes the Company's group structure, assesses the work of external auditors, examines consolidated accounts, verifies the valuations of real estate assets, and audits reports. The Audit Committee has therefore invited persons whose collaboration is deemed to be advantageous to assist it in its work and to attend its meetings.

During 2021, the Audit Committee held 6 meetings (with 100% attendance).

Remuneration, Appointment and Related Party Transaction Committee

Following the changes in the Board of Directors composition in 2020 the Remuneration, Appointment and Related Party Transaction Committee (the "Remuneration Committee") is now comprised of of Mr. Edward Hughes, Mr. Scot Wardlaw, and Mr. David Greenbaum. Mr. Edward Hughes is the president of the Remuneration Committee.

The Remuneration Committee presents proposals to the Board of Directors about remuneration and incentive programs to be offered to the management and the Directors of the Company. The Remuneration Committee also deals with related party transactions.

The role of the Remuneration Committee is, among other things, to submit proposals to the Board regarding the remuneration of executive managers, to define objective performance criteria respecting the policy fixed by the Company regarding the variable part of the remuneration of top management (including bonus and share allocations, share options or any other right to acquire shares) and that the remuneration of non-executive Directors remains proportional to their responsibilities and the time devoted to their functions.

During 2021 the role of the Remuneration Committee has been assumed directly by the Board of Directors.

Description of internal controls relative to financial information processing.

The Company has organized the management of internal control by defining control environment, identifying the main risks to which it is exposed together with the level of control of these risks, and strengthening the reliability of the financial reporting and communication process.

Control Environment

For the annual closure, the Company's management fills an individual questionnaire so that any transactions they have carried out with the Company as "Related parties" can be identified.

The Audit Committee has a specific duty in terms of internal control; the role and activities of the Audit Committee are described in this Management Report.

Remuneration and benefits

Board of Directors

See note 1 of the Consolidated financial statements as at 31 December 2021.

Corporate Governance rules and regulations

In reference to the information required by paragraphs (a) to (k) of Article 11(1) of the Law of 19 May 2006 transposing Directive 2004/25/EC of the European Parliament and of the Council of 21 April 2004 on takeover bids, the Board of Directors states the following elements:

(a) The structure of the capital, including securities which are not admitted to trading on a regulated market in a Member State, where appropriate with an indication of the different classes of shares and, for each class of shares, the rights and obligations attaching to it and the percentage of total share capital that it represents:

The share capital of the Company is represented by only one class of shares carrying same rights.

The Company shares (ISIN LU0122624777) had been listed on the regulated market of Euronext Paris since 2000 and until their delisting as at 18 February 2016. Out of 1,314,507,629 Company shares outstanding, the 314,507,629 Company shares (representing app. 23.9% of the total share capital) have been admitted to trading on the regulated markets of the Luxembourg Stock Exchange and the Warsaw Stock Exchange.

(b) Any restrictions on the transfer of securities, such as limitations on the holding of securities or the need to obtain the approval of the company or other holders of securities, without prejudice to Article 46 of Directive 2001/34/EC:

There is no restriction on the transfer of securities of the Company as at 31 December 2021.

(c) Significant direct and indirect shareholdings (including indirect shareholdings through pyramid structures and cross-shareholdings) within the meaning of Article 85 of Directive 2001/34/EC:

To the best of the Company's knowledge, the following table sets out information regarding the ownership of the Company's shares as at 31 December 2021. The information collected is based on the notifications received by the Company from any shareholder crossing the thresholds of 5%, 10%, 15%, 20%, 33 1/3%, 50% and 66 2/3% of the aggregate voting rights in the Company.

Shareholder	Number of shares	% of capital / voting rights
CPI PROPERTY GROUP (directly)	1,279,198,976	97.31%
Others	35,308,653	2.69%
Total	1,314,507,629	100.0%

(d) The holders of any securities with special control rights and a description of those rights:

None of the Company's shareholders has voting rights different from any other holders of the Company's 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 concern 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.

(e) The system of control of any employee share scheme where the control rights are not exercised directly by the employees:

This is not applicable. The Company has no employee share scheme.

(f) Any restrictions on voting rights, such as limitation on the voting rights of holders of a given percentage or number of votes, deadlines for exercising voting rights, or systems whereby, with the Company's cooperation, the financial rights attaching to securities are separated from the holding of securities:

There is no restriction on voting rights.

(g) Any agreements between shareholders which are known to the company and may result in restrictions on the transfer of securities and/or voting rights within the meaning of Directive 2001/34/EC:

To the knowledge of the Company, no shareholder agreements have been entered by and between shareholders that are in effect as of the date of this report. 97.31% of shares in the Company are held directly by CPI PROPERTY GROUP.

(h) the rules governing the appointment and replacement of board members and the amendment of the articles of association:

See section Appointment of Directors of this report.

(i) the powers of board members, and in particular the power to issue or buy back shares:

The Company has no authorized but unissued and unsubscribed share capital in addition to the issued and subscribed corporate capital of €13,145,076.29.

(j) any significant agreements to which the company is a party and which take effect, alter or terminate upon a change of control of the company following a takeover bid, and the effects thereof, except where their nature is such that their disclosure would be seriously prejudicial to the company; this exception shall not apply where the company is specifically obliged to disclose such information on the basis of other legal requirements:

Under the Securities Note and Summary dated 22 March 2007, with respect to the issue of the 2014 Warrants, the occurrence of a Change of Control (as described in Condition 4.1.8.1.2.1 of the Securities Note and Summary dated 22 March 2007) could result in a potential liability for the Company due to "Change of Control Compensation Amount".

On 10 June 2016 the Company received a major shareholder notification stating, that NUKASSO (CYP) and CPI PROPERTY GROUP, which are ultimately held by Mr. Radovan Vitek, hold directly and indirectly 1,279,198,976 of the Company's shares corresponding to 97.31% of voting rights as at 8 June 2016. Accordingly, the Company issued a Change of Control Notice 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.

In accordance with the judgement of the Paris Commercial Court (the "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 knowledge of the Company, no other agreements have been entered by the Company.

(k) any agreements between the company and its board members or employees providing for compensation if they resign or are made redundant without valid reason or if their employment ceases because of a takeover bid:

As at 31 December 2021, there are no potential termination indemnity payments in place payable to the members of the Company's management in the event of termination of their contracts in excess of the compensation as required by the respective labour codes.

Additional information

Legal form and share capital

CPI FIM is a public limited company ("société anonyme") incorporated and existing under Luxembourg law. Its corporate capital, subscribed and fully paid-up capital of €13,145,076.29 is represented by 1,314,507,629 shares without nominal value. The accounting par value price is €0.01 per share.

Date of incorporation and termination

The Company was incorporated by deed drawn on 9 September 1993 by Maître Frank Baden, for an indeterminate period of time.

Jurisdiction and applicable laws

The Company exists under the Luxembourg Act of 10 August 1915 on commercial companies, as amended.

MANAGEMENT REPORT | 39

CPI FIM

Object of business

As described in article 4 of the updated Articles of Association of the Company, its corporate purpose is the direct acquisition of real property, the holding of ownership interests and the making of loans to companies that form part of its group. Its activity may consist in carrying out investments in real estate, such as the purchase, sale, construction, valorization, management and rental of buildings, as well as in the promotion of real estate, whether on its own or through its branches.

It has as a further corporate purpose the holding of ownership interests, in any form whatsoever, in any commercial, industrial, financial or other Luxembourg or foreign companies, whether they are part of the group or not, the acquisition of all and any securities and rights by way of ownership, contribution, subscription, underwriting or purchase options, or negotiation, and in any other way, and in particular the acquisition of patents and licenses, their management and development, the granting to undertakings in which it holds a direct or indirect stake of all kinds of assistance, loans, advances or guarantees and finally all and any activities directly or indirectly relating to its corporate purpose. It may thus play a financial role or carry out a management activity in enterprises or companies it holds or owns.

The Company may likewise carry out all and any commercial, property, real estate and financial operations likely to relate directly or indirectly to the activities defined above and susceptible to promoting their fulfillment.

Trade register

RCS Luxembourg B 44 996.

Financial year

The Company's financial year begins on the first day of January and ends on the thirty-first day of December.

Distribution of profits and payment of dividends

Each year, at least five per cent of the net corporate profits are set aside and allocated to a reserve. Such deduction ceases being mandatory when such reserve reaches ten per cent of the corporate capital, but will resume whenever such reserve falls below ten per cent. The general meeting of shareholders determines the allocation and distribution of the net corporate profits.

Payment of dividends:

The Board of Directors is entitled to pay advances on dividends when the legal conditions listed below are fulfilled:

an accounting statement must be established which indicates that the available funds for the distribution are sufficient;
the amount to be distributed may not exceed the amount of revenues since the end of the last accounting year for which the accounts have been approved, increased by the reported profits and by the deduction made on the available reserves for this purpose and decreased by the reported losses and by the sums allocated to reserves in accordance with any legal and statutory provision;
the Board of Directors' decision to distribute interim dividends can only be taken within two months after the date of the accounting statement described above;
the distribution may not be determined less than six months after the closing date of the previous accounting year and before the approval of the annual accounts related to this accounting year;
whenever a first interim dividend has been distributed, the decision to distribute a second one may only be taken at least three months after 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)
the conditions listed above are fulfilled.

Under general Luxembourg law, the conditions for making advances on dividends are less stringent than the conditions listed above, however, the more restrictive provisions of the Company's Articles of Association will

CPI FIM

prevail as the recent changes under Luxembourg law have not yet been reflected in the Articles of Association of the Company.

When an advance distribution exceeds the amount of dividend subsequently approved by the general meeting of shareholders, such advance payment is considered an advance on future dividends.

Exceeding a threshold

Any shareholder who crosses a threshold limit of 5%, 10%, 15%, 33 1/3%, 50% or 66 2/3% of the total of the voting rights must inform the Company, which is then obliged to inform the relevant controlling authorities. Any shareholder not complying with this obligation will lose his voting rights at the next general meeting of shareholders, and until proper major shareholding notification is made.

Documents on display

Copies of the following documents may be inspected at the registered office of the Company (tel: +352 26 47 67 1), 40 rue de la Vallée, L-2661 Luxembourg, on any weekday (excluding public holidays) during normal business hours:

Articles of Association of the Company;
Audited consolidated financial statements of the Company as of and for the years ended 31 December 2021, 2020, and 2019, prepared in accordance with IFRS adopted by the European Union;

The registration document(s) and most of the information mentioned are available on the Company's website:

www.cpifimsa.com

The registration document(s) is available on the website of Luxembourg Stock Exchange: www.bourse.lu.

External Auditors

Ernst & Young S.A., Luxembourg have been elected as Group´s new approved auditor (réviseur d'entreprises agréé) for the financial year commencing on 1 January 2019. The 2021 AGM resolved to approve Ernst & Young S.A., Luxembourg as auditors for the financial year ending 31 December 2021.

Reporting

Consolidated management report and the stand-alone management report are presented under the form of a sole report.

SHAREHOLDING

Share capital and voting rights

The subscribed and fully paid-up capital of the Company of €13,145,076.29 is represented by 1,314,507,629 shares without nominal value. The accounting par value is €0.01 per share.

The Company has no authorized but unissued and unsubscribed share capital in addition to the issued and subscribed corporate capital of €13,145,076.29.

All the shares issued by the Company are fully paid and have the same value. The shares will be either in the form of registered shares or in the form of bearer shares, as decided by the shareholder, except to the extent otherwise provided by law.

The shareholder can freely sell or transfer the shares. The shares are indivisible and the Company only recognizes one holder per share. If there are several owners per share, the Company is entitled to suspend the exercise of all rights attached to such shares until the appointment of a single person as owner of the shares. The same applies in the case of usufruct and bare ownership or security granted on the shares.

Joint owners of shares must be represented within the Company by one of them considered as sole owner or by a proxy, who in case of conflict may be legally designated by a court at the request of one of the owners.

Shareholder holding structure

Shareholder	Number of shares	% of capital / voting rights
CPI PROPERTY GROUP (directly)	1,279,198,976	97.31%
Others	35,308,653	2.69%
Total	1,314,507,629	100.0%

Authorized capital not issued

The Company has no authorized but unissued and unsubscribed share capital in addition to the issued and subscribed corporate capital of €13,145,076.29.

POTENTIAL RISKS AND OTHER REPORTING REQUIREMENTS

The Group's activities expose it to a variety of financial risks: market risk (including foreign exchange risk, price risk, cash flow interest rate risk and other risks), credit risk and liquidity risk. 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.

Subsequent closing events

Please refer to note 12 of the Consolidated financial statements as at 31 December 2021.

Other reporting requirements

The Company does not have any activities in research and development.
The Company does not have any branches.

Financial Risks exposure

For a thorough description of the principal risks and uncertainties, please refer to note 7 of the Consolidated financial statements as at 31 December 2021.

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.

Certain subsidiaries may be in breach of loan covenants

As of the date of this report, none of the Company's subsidiaries are in breach of financial ratios specified in their respective loan agreements and administrative covenants.

The Group's financing arrangements could give rise to additional risk

When the Group acquires a property using external financing, the Group usually gives a mortgage over the acquired property and pledges the shares of the specific subsidiary acquiring the property. There can be no assurance that the registration of mortgages and pledges has been concluded in accordance with applicable local law, and a successful challenge against such mortgages or pledges may entitle the lender to demand early repayment of its loan to the Group. The Group's financing agreements contain financial covenants that could, among other things, require the Group to maintain certain financial ratios. In addition, some of the financing agreements require the prior written consent of the lender to any merger, consolidation or corporate changes of the borrower and the other obligors. Should the Group breach any representations, warranties or covenants contained in any such loan or other financing agreement, or otherwise be unable to service interest payments or principal repayments, the Group may be required immediately to repay such borrowings in whole or in part, together with any related costs. If the Group does not have sufficient cash resources or other credit facilities available to make such repayments, it may be forced to sell some or all of the properties comprising the Group's investment portfolio, or refinance those borrowings with the risk that borrowings may not be able to be refinanced or that the terms of such refinancing may be less favorable than the existing terms of borrowing.

Market risk

Foreign currency risk

Currency risk is applicable generally to those business activities and development projects where different currencies are used for repayment of liabilities under the relevant financing to that of the revenues generated by the relevant property or project. 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. 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 7.3 Market risk of the Consolidated financial statements as at 31 December 2021). The functional currency of most Group companies is the Czech koruna and a significant portion of revenues and costs are realised primarily in the Czech koruna.

For more detail, please refer to note 7.3 - Foreign currency risk of the Consolidated financial statements as at 31 December 2021.

Price risk

To manage its price risk arising from investments in equity securities and such embedded derivatives, the Group diversifies its portfolio or only enters these operations if they are linked to operational investments.

For more detail, please refer to note 7.3 - Price risk of the Consolidated financial statements as at 31 December 2021.

Interest rate risk

The Group uses fixed rate debt financing to finance the purchase, development, construction and maintenance of its properties. When floating rate financing is used, the Group's costs increase if prevailing interest rate levels rise. While the Group generally seeks to control its exposure to interest rate risks by entering into interest rate swaps, not all financing arrangements are covered by such swaps and a significant increase in interest expenses would have an unfavorable effect on the Group's financial results and may have a material adverse effect on the Group's business, financial condition, results of operations and prospects. Rising interest rates could also affect the Group's ability to make new investments and could reduce the value of the properties. Conversely, hedged interests do not allow the Company to benefit from falling interest rates.

For more detail, please refer to note 7.3 - Interest rate risk of the Consolidated financial statements as at 31 December 2021.

Other risks

The Group is also exposed to property price and property rentals risk but it does not pursue any speculative policy. Even though the Group's activities are focused on one geographical area (Central Europe) such activities are spread over several business lines (residences, offices) and different countries.

Credit risk

The Group has no significant concentrations of commercial credit risk. Rental contracts are made with customers with 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 Consolidated financial statements as at 31 December 2021.

Liquidity risk

For more detail, please refer to note 7.2 Liquidity risk of the Consolidated financial statements as at 31 December 2021.

Capital management

For more detail, please refer to note 7.4 Capital management of the Consolidated financial statements as at 31 December 2021.

Risks associated with real estate and financial markets

Changes in the general economic and cyclical parameters may negatively influence the Group's business activity.

The Group's core business activity is mainly based on the letting and sale of real estate property. The revenues from rents and revenues from sales of real estate property investments are key figures for the Group's value and profitability. Rents and sales prices depend on economic and cyclical parameters, which the Group cannot control.

The Group's property valuations may not reflect the real value of its portfolio, and the valuation of its assets may fluctuate from one period to the next.

The Group's investment property portfolio is valued at least once a year by an independent appraiser. The Group's property assets were valued as at 31 December 2021. The change in the appraised value of investment properties, in each period, determined on the basis of expert valuations and adjusted to account for any acquisitions and sales of buildings and capital expenditures, is recorded in the Group's income statements. For each euro of change in the fair value of the investment properties, the net income of the Group changes by one euro. Changes in the fair value of the buildings could also affect gains from sales recorded on the income statement (which are determined by reference to the value of the buildings) and the rental yield from the buildings (which is equal to the ratio of rental revenues to the fair value of the buildings). Furthermore, adverse changes in the fair value of the buildings could affect the Group's cost of debt financing, its compliance with financial covenants and its borrowing capacity.

The values determined by independent appraisers are based on numerous assumptions that may not prove correct, and also depend on trends in the relevant property markets. An example is the assumption that the Company is a "going concern", i.e., that it is not a "distressed seller" whose valuation of the property assets may not reflect potential selling prices. In addition, the figures may vary substantially between valuations. A decline in valuation may have a significant adverse impact on the Group's financial condition and results, particularly because changes in property values are reflected in the Group's consolidated net profit. Conversely, valuations may be lagging soaring market conditions, inadequately reflecting the fair property values at a later time.

The Group is also exposed to valuation risk regarding the receivables from its asset sales. Management values these receivables by assessing the credit risk attached to the counterparties for the receivables. Any change in the credit worthiness of a counterparty or in the Group's ability to collect on the receivable could have a significant adverse impact on the Group's financial position and results.

Changing residential trends or tax policies may adversely affect sales of developments.

The Group is involved in residential, commercial and retail development projects. Changing residential trends are likely to emerge within the markets in Central and Eastern Europe as they mature and, in some regions, relaxed planning policies may give rise to over-development, thereby affecting the sales potential of the Group's residential developments. Changing real estate taxes or VAT taxes may also have a notable impact on sales (such as for example a hike in sales before implementation of a tax increase followed by structurally lower sales). These factors will be considered within the investment strategy implemented by the Group but may not always be anticipated and may have a material adverse effect on the Group's business, financial condition, results of operations and prospects.

CORPORATE RESPONSIBILITY

Corporate responsibility and sustainable development is at the core of the strategy of the Company. The Group´s top management actively foster best practices as an opportunity to improve the cost efficiency of internal processes and the value creation of our main activity - development of properties, providing of equity loans and management services to other entities within the CPIPG Group. 5

Environmental, social and ethical matters

The Group is committed to high standards in environmental, social and ethical matters. Our staff receive training on our policies in these areas, and are informed when changes are made to the policy. Our environmental policy is to comply with all applicable local regulations, while pursuing energy-efficient solutions and green / LEED certification wherever possible. Ethical practice is a core component of our corporate philosophy; we have achieved top-quality standards in reporting and communications, and have invested in the best professionals. From a social perspective, we care deeply about all our stakeholders. Our corporate culture is centered around respect and professionalism, and we believe in giving back to our community.

Environmental matters

The Group follows a pragmatic approach to environmental aspects of its business. Environmental criteria are one of the main aspects of the Group's development and construction projects.

Before each potential asset investment, the Group examines the environmental risks. Project timing, progress and budgets are carefully monitored, mostly with the support of external project monitoring advisors. Health, safety and environmental risks are monitored before and during construction.

Health and safety, as well as the technical and security installations are periodically inspected for checking of their status and the conformity with applicable legislation and local regulation.

As a priority item for apartment building renovations, the Group replaces older heating systems with natural gas systems, and seeks to improve the overall level of thermal insulation in its buildings.

Social matters

The Group follows Corporate Social Responsibility of its parent company CPIPG.

The Group aims to promote personal development of its employees. The Group provides a work environment that is motivating, competitive and reflects the needs of the employees. The Group promotes diversity and equal opportunity in the workplace.

Employees of the Group conduct annual reviews with their managers, covering also the relationships of the employees with their work and working place, as well as the Group in general.

Ethical matters

The Group has policies addressing conduct, including conflicts of interest, confidentiality, abuse of company property and business gifts.

⁵ For the CSR related statements, also applicable to the Company, please refer to the annual report of CPI PROPERTY GROUP.

GLOSSARY & DEFINITIONS

Alternative Performance Measures

The Company presents alternative performance measures (APMs). The APMs used in our report are commonly referred to and analysed amongst professionals participating in the Real Estate Sector to reflect the underlying business performance and to enhance comparability both between different companies in the sector and between different financial periods. APMs should not be considered as a substitute for measures of performance in accordance with the IFRS. The presentation of APMs in the Real Estate Sector is considered advantageous by various participants, including banks, analysts, bondholders and other users of financial information:

APMs provide additional helpful and useful information in a concise and practical manner.
APMs are commonly used by senior management and Board of Directors for their decisions and setting of mid and long-term strategy of the Group and assist in discussion with outside parties.
APMs in some cases might better reflect key trends in the Group's performance which are specific to that sector, i.e. APMs are a way for the management to highlight the key value drivers within the business that may not be obvious in the consolidated financial statements.

For new definitions of measures or reasons for their change, see below.

EPRA NRV (former EPRA NAV)

EPRA NRV assumes that entities never sell assets and aims to represent the value required to rebuild the entity. The objective of the EPRA Net Reinstatement Value measure is to highlight the value of net assets on a long-term basis. Assets and liabilities that are not expected to crystallise in normal circumstances such as the fair value movements on financial derivatives and deferred taxes on property valuation surpluses are therefore excluded. Since the aim of the metric is to also reflect what would be needed to recreate the company through the investment markets based on its current capital and financing structure, related costs such as real estate transfer taxes should be included.

The performance indicator has been prepared in accordance with best practices as defined by EPRA (European Public Real Estate Association) in its Best Practices Recommendations guide, available on EPRA's website (www.epra.com).

EPRA NRV per share

EPRA 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 disposal scenario, where deferred tax, financial instruments and certain other adjustments are calculated to the full extent of their liability, net of any resulting tax. The objective of the EPRA NDV measure is to report net asset value including fair value adjustments in respect of all material balance sheet items which are not reported at their fair value as part of the EPRA NRV.

EPRA NDV per share

EPRA NDV divided by the diluted number of shares at the period end.

Equity ratio

Equity ratio is a measure that provides a general assessment of financial risk undertaken and is calculated as total equity as reported divided by total assets as reported.

Project Loan-to-Value

With respect to a structure of financing, the Group no longer provides the calculation of this measure, since it might be confusing for the reader.

EPRA NAV and EPRA NAV per share

The Group no longer provides the calculation of these measures, since they were replaced by the calculation of EPRA NRV and EPRA NRV per share.

EPRA NNNAV and EPRA NNNAV per share

The Group no longer provides the calculation of these measures, since they were replaced by the calculation of EPRA NDV and EPRA NDV per share.

Other definitions

EPRA

European Public Real Estate Association.

Development for rental

Development for Rental represents carrying value of developed assets – ie. under development or finished assets – being held by the Group with the intention to rent the assets in the foreseeable future.

Development for sale

Development for Sale represents carrying value of developed assets – ie. under development or finished assets – being held by the Group with the intention to sell the assets in the foreseeable future.

Gross Asset Value (GAV) or Fair value of Property portfolio or Property portfolio value

The sum of fair value of all real estate assets held by the Group on the basis of the consolidation scope and real estate financial investments (being shares in real estate funds, loans to third parties active in real estate or shares in non-consolidated real estate companies).

Gross Leasable Area (GLA)

GLA is the amount of floor space available to be rented. GLA is the area for which tenants pay rent, and thus the area that produces income for the property owner.

Gross Saleable Area (GSA)

GSA is the amount of floor space held by the Group with the intention to be sold. GSA is the area of property to be sold with a capital gain.

Market value

The estimated amount determined by the Group's external valuer in accordance with the RICS Valuation Standards, for which a property should exchange on the date of valuation between a willing buyer and a willing seller in an arm's-length transaction after proper marketing.

Occupancy rate

The ratio of leased premises to leasable premises.

Potential gross leasable area

Potential Gross Leasable Area is the total amount of floor space and land area being developed which the Group is planning to rent after the development is complete.

Potential gross saleable area

Potential Gross Saleable Area is the total amount of floor space and land area being developed which the Group is planning to sell after the development is complete.

40 rue de la Vallée L-2661 Luxembourg R.C.S. Luxembourg B 44996 (the "Company")

DECLARATION LETTER FINANCIAL REPORTS AS AT 31 DECEMBER 2021

1.1. Person responsible for the Annual Financial Report

Mr. David Greenbaum, acting as Managing Director of the Company, with professional address at 40 rue de la Vallee, L-2661 Luxembourg, Grand-Duchy of Luxembourg, email: [email protected].

1.2. Declaration by the person responsible for the Annual Financial Report

The undersigned hereby declares that, to the best of his knowledge:

the consolidated financial statements of the Company as at 31 December 2021, prepared in accordance with the International Financial Reporting Standards ("IFRS") as adopted by the European Union, give a true and fair view of the assets, liabilities, financial position and results of the Company and its subsidiaries included in the consolidation taken as a whole; and
that the Management Report as at 31 December 2021 provides a fair view of the development and performance of the business and the position of the Company and its subsidiaries included in the consolidation taken as a whole, together with a description of the principal risks and uncertainties they face.

Approved by the Board of Directors and signed on its behalf by Mr. David Greenbaum.

Luxembourg, on 31 March 2022

Mr. David Greenbaum Managing Director

CPI FIM Société anonyme 40, rue de la Vallée, L-2661 Luxembourg RCS Luxembourg B 44.996 tél : 00 352 26 47 67 1 fax : 00 352 26 47 67 67 www.cpifimsa.com

ORCO PROPERTY GROUP

CONSOLIDATED FINANCIAL STATEMENTS AS AT 31 DECEMBER 2021 AND FOR THE YEAR THEN ENDED

2017 CONDENSED

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

The accompanying notes form an integral part of these consolidated financial statements.

		Year-ended
	Note	31 December 2021	31 December 2020
Gross rental income	5.1	34,880	34,142
Service charges and other income	5.2	32,499	32,469
Cost of service and other charges	5.2	(9,719)	(10,803)
Property operating expenses	5.3	(4,048)	(3,413)
Net service and rental income		53,612	52,395
Hotel revenue		246	-
Hotel operating expenses		(248)	-
Net hotel income		(2)	-
Total revenues		67,625	66,611
Total direct business operating expenses		(14,015)	(14,216)
Net business income		53,610	52,395
Net valuation gain	5.4	263,702	146,433
Net gain/(loss) on the disposal of investment property and subsidiaries	5.5	3,746	(602)
Net gain on the disposal of other investments	5.6	6,175	-
Amortization, depreciation and impairments	5.7	3,455	(7,400)
Administrative expenses	5.8	(14,022)	(13,252)
Other operating income		704	406
Other operating expenses		(827)	(673)
Operating result		316,543	177,307
Interest income	5.9	211,507	169,821
Interest expense	5.9	(161,231)	(141,693)
Other net financial result	5.10	56,554	(9,955)
Net finance income		106,830	18,173
Share of profit of equity-accounted investees (net of tax)	6.3	1,146	3,320
Profit before income tax		424,519	198,800
Income tax expense	5.11	(57,676)	(53,286)
Net profit from continuing operations		366,843	145,514
Items that may or are reclassified subsequently to profit or loss
Translation difference		30,983	(40,417)
Items that will not be reclassified subsequently to profit or loss
Fair value changes of financial assets		13,349	597
Revaluation of property, plant and equipment		1,609	-
Income tax on other comprehensive income items		(386)	-
Other comprehensive income for the period, net of tax		45,555	(39,820)
Total comprehensive income for the year		412,398	105,694
Profit attributable to:
Owners of the Company		294,053	112,505
Non-controlling interests		72,790	33,009
Profit for the year		366,843	145,514
Total comprehensive income attributable to:
Owners of the Company		339,608	72,685
Non-controlling interests		72,790	33,009
Total comprehensive income for the year		412,398	105,694

Earnings per share
Basic earnings in EUR per share	6.10	0.22	0.09
Diluted earnings in EUR per share	6.10	0.22	0.09

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

The accompanying notes form an integral part of these consolidated financial statements.

	Note	31 December 2021	31 December 2020
Non-current assets
Intangible assets		610	15
Investment property	6.1	1,514,430	1,367,184
Property, plant and equipment	6.2	22,193	662
Equity accounted investees	6.3	8,190	7,044
Other investments	6.4	52,990	188,884
Loans provided	6.5	4,948,061	4,234,093
Other receivables		74	-
Deferred tax asset	5.11	133,921	142,019
		6,680,469	5,939,901
Current assets
Inventories		355	300
Income tax receivables		116	81
Derivative instruments		2,078	1,694
Trade receivables	6.6	6,929	6,511
Loans provided	6.5	186,859	115,168
Cash and cash equivalents	6.7	210,076	249,190
Other receivables	6.8	236,795	188,232
Other non-financial assets		5,379	3,289
Assets held for sale	6.9	54,586	-
		703,173	564,465

Total assets		7,383,642	6,504,366
Equity
Equity attributable to owners of the Company	6.10	1,238,649	899,041
Share capital		13,145	13,145
Share premium		784,670	784,670
Other reserves		118,244	72,689

Retained earnings		322,590	28,537
Non-controlling interests	6.10	277,321	204,531
		1,515,970	1,103,572
Non-current liabilities
Financial debts	6.11	5,400,425	4,855,740
Deferred tax liability	5.11	130,866	78,500
Other financial liabilities	6.12	4,793	8,904
		5,536,084	4,943,144
Current liabilities
Financial debts	6.11	261,324	376,179
Trade payables	6.13	8,953	8,618
Income tax liabilities		687	20
Other financial liabilities	6.14	59,534	68,677
Other non-financial liabilities	6.15	1,090	4,156
		331,588	457,650

Total equity and liabilities 7,383,642 6,504,366

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

The accompanying notes form an integral part of these consolidated financial statements.

			Share	Translation	Other	Retained earnings	Equity attributable	Non-controlling	Total equity
	Note	Share capital	premium	reserve	reserves		to owners of the Company	interests
As at 1 January 2021		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

	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 2020	13,145	784,670	26,430	86,079	(83,968)	826,356	171,522	997,878
Profit for the year	-	-	-	-	112,505	112,505	33,009	145,514
Other comprehensive income	-	-	(40,417)	597	-	(39,820)	-	(39,820)
Total comprehensive income for the period	-	-	(40,417)	597	112,505	72,685	33,009	105,694
Balance as at 31 December 2020	13,145	784,670	(13,987)	86,676	28,537	899,041	204,531	1,103,572

CONSOLIDATED STATEMENT OF CASH FLOWS

The accompanying notes form an integral part of these consolidated financial statements.

	Year-ended
	Note	31 December 2021	31 December 2020

Profit before income tax		424,519	198,800
Adjusted by:
Net valuation gain	5.4, 6.1	(263,702)	(146,433)
Net (gain)/loss on the disposal of investment property	5.5	(2,783)	602
Depreciation and amortisation	5.7	624	1
Impairment/ (reversal of impairment)	5.7	(4,079)	7,399
(Gain)/Loss on the disposal of subsidiaries and investees	5.6	(7,138)	-
Net interest income		(50,276)	(28,128)
Other net finance (income)/costs	5.10	1,390	728
Share of profit of equity accounted investees	6.3	(1,146)	(3,320)
Unrealized exchange rate differences and other non-cash transactions		(53,054)	1,747
Profit before changes in working capital and provisions		44,355	31,396
Decrease/(increase) in inventories		(55)	41
Increase in trade and other receivables		(51,071)	(168,370)
Increase/(decrease) in trade and other payables		(15,986)	23,351
Changes in provisions		29	(1,532)
Income tax paid		(858)	(1,123)
Net cash from operating activities		(23,586)	(116,237)
Acquisition of subsidiaries, net of cash acquired	3.2	(2,995)	-
Purchase and expenditures on property, plant and equipment and intangible assets		(1,585)	-
Purchase and expenditures on investment property	6.1	(17,197)	(43,549)
Acquisition of property, plant and equipment	6.2	(18,717)	-
Proceeds from sale of investment property	5.5	44,455	2,294
Proceeds from disposals of subsidiaries, net of cash disposed	5.5	17,238	-
Proceeds from disposals of other investment, net of cash disposed	5.6	155,418	-
Loans provided		(993,526)	(948,780)
Loans repaid		454,815	154,646
Interest received		102,208	108,035
Net cash used in investing activities		(259,886)	(727,354)
Drawdowns of loans and borrowings	6.11	553,743	1,083,127
Repayments of loans and borrowings	6.11	(203,932)	(24,882)
Repayments of lease liabilities	6.11	-	(327)
Interest paid	6.11	(105,453)	(94,584)
Net cash from financing activities		244,358	963,334
Net increase/(decrease) in cash		(39,114)	119,743
Cash and cash equivalents at the beginning of the year	6.7	249,190	129,447
Cash and cash equivalents at the end of the year		210,076	249,190

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´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 2021, 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 2021, Radovan Vítek, the ultimate beneficial owner of the Group, indirectly owns 88.77% of CPI PG outstanding shares (89.44% voting rights).

For the list of shareholders as at 31 December 2021 refer to note 6.10.

Board of Directors

As at 31 December 2021, the Board of Directors consists of the following directors:

Mr. David Greenbaum
Mr. Edward Hughes
Mrs. Anita Dubost
Mr. Scot Wardlaw

2 Basis 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 30 March 2022. For analysis of the impact of COVID-19 pandemic on the Group, including its ability to continue as a going concern, refer to note 12.

(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 2021, 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.

(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

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.

The Group's assumptions and estimation is based on the evidence available as of the date of these consolidated financial statements. The assumtions and estimates are however sensitive to development of the current COVID-19 world-wide pandemic and its negative impacts on the Company's real estate portfolio. The uncertainty caused by the COVID-19 pandemic is considered primarily in the below assumtions and estimates:

the fair value measurement of investment property, hotels and biological assets (for more details, refer to note 7.5);
the credit risk and liquidity risk assessment (for more details, refer to note 7.1 and 7.2, respectively);
the assessment of the Group's ability to continue as a going concern (for more details, refer to note 12).

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.

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:

Functional currency
CZK
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.

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 2021 and 2020 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.

(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	2021	2020
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

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.

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.

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 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. The 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

(i) Service costs and property operating expenses

Service costs and property 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.

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.

Interest income is recognised as it accrues 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.

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.

(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

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 2021 and 2020 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 2021 and 31 December 2020, 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.

3 The Group structure

CPI FIM SA is the Group's ultimate parent company. As at 31 December 2021, the Group comprises its parent company and 41 subsidiaries (40 subsidiaries as at 31 December 2020) 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 2021

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 SPV 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

Development of the office 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 acquisiton 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)
Identifiable acquired liabilities	(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)
Identifiable acquired liabilities	(0.2)

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.

3.3 Changes in the Group structure in 2020

In 2020, the Group disposed or liquidated the following subsidiaries:

Entity	Change	Group's share	Date
CEREM S.A.	Liquidation	100.00%	3 January 2020
Brillant 1419. GmbH & Co. Verwaltungs KG	Liquidation	49.00%	30 June 2020
Endurance Real Estate Management Comapny	Liquidation	100.00%	28 December 2020

4 Entity-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;
managing of residential portfolio in France and Italy.

4.1 Financing

Interest income by countries

	2021		2020
	Amount	In %	Amount	In %
Poland	1	-	20	-
Luxembourg	210,715	100%	169,801	100%
Czech Republic	1	-	-	-
Italy	790	-	-	-
Total	211,507	100%	169,821	100%

Loans provided by country of the creditor

	31 December 2021		31 December 2020
	Amount	In %	Amount	In %
Luxembourg	4,948,061	96%	4,234,093	97%
Non-current loans provided	4,948,061	96%	4,234,093	97%
Luxembourg	186,859	4%	115,168	3%
Current loans provided	186,859	4%	115,168	3%
Total	5,134,920	100%	4,349,261	100%

4.2 Other business activities

Revenues by countries

	2021		2020
	Amount	In %	Amount	In %
Czech Republic	3,342	5%	3,466	5%
- Land bank	1,039	2%	714	1%
- Office	2,169	3%	2,449	4%
- Industry and logistics	102	-	303	-
- Retail	32	-	-	-
Luxembourg	22,853	34%	22,492	34%
- Rendering of services	22,789	34%	22,416	34%
- Other	64	-	76	-
Poland - Office	41,004	61%	40,628	61%
France - Residential	115	-	25	-
Italy – Hospitality	246	-	-	-
Monaco – Residential	65	-	-	-
Total	67,625	100%	66,611	100%

Investment property by countries

	31 December 2021			31 December 2020
	Amount	In %	Amount	In %
Czech Republic	839,426	55%	736,749	54%
- Land bank	811,287	53%	604,267	44%
- Office	26,522	2%	130,822	10%
- Retail	1,617	-	-	-
- Industry and logistics	-	-	1,660	-
Poland	614,304	41%	584,615	43%
- Office	613,943	41%	584,251	43%
- Land bank	361	-	364	-
Other – residential	60,700	4%	45,820	3%
Total	1,514,430	100%	1,367,184	100%

5 Consolidated statement of comprehensive income

5.1 Gross rental income

	2021	2020
Gross rental income	34,880	34,142

5.2 Net service charge and other income

	2021	2020
Service revenue	22,791	22,431
Service charge income	9,618	9,968
Revenues from sales of utilities	90	70
Service charges and other income	32,499	32,469
Cost of service charges	(9,710)	(10,798)
Cost of utilities	(9)	(5)
Cost of service and other charges	(9,719)	(10,803)
Total net service charge income	22,780	21,666

In 2021, the service revenue increased due to advisory and management services provided to entities controlled by the majority shareholder of the Group.

5.3 Property operating expenses

	2021	2020
Building maintenance	(2,204)	(1,709)
Real estate tax	(279)	(209)
Letting fee, other fees paid to real estate agents	(138)	(946)
Facility management and other property related services	(1,427)	(549)
Total	(4,048)	(3,413)

5.4 Net valuation gain

	2021	2020
Valuation gain	265,502	156,072
Valuation loss	(1,800)	(9,639)
Total	263,702	146,433

In 2021 and 2020, the valuation gain primarily relates to the Group's portfolio located in the Czech Republic (EUR 226.4 million and EUR 137.9 million, respectively).

For the assumptions, the independent valuers used in the property valuations as at 31 December 2021 and 2020, refer to note 7.5.

5.5 Net gain/(loss) on the disposal of investment property and subsidiaries

	2021	2020
Proceeds from the disposal of investment property	44,455	2,294
Carrying value of investment property disposed of and related cost	(41,672)	(2,894)
Net gain/(loss) on the disposal of investment property	2,783	(600)
Proceeds from the disposal of subsidiaries	17,238	3
Carrying value of subsidiaries disposed of	(16,275)	(5)
Net gain/(loss) on the disposal of subsidiaries	963	(2)
Total	3,746	(602)

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 subsidiary Bubenská 1 of EUR 17.2 million which was sold to CPI PG Group.

In 2020, the proceeds from disposal of investment property and subsidiaries and the related carrying value was primarily related to sale of two Czech land plots and SCP Cayo subsidiary.

The following table summarizes disposal effects of subsidiaries sold:

	2021
Investment property	71,727
Trade receivables	644
Other non-financial current assets	483
Cash and cash equivalents	3
Total disposed assets	72,857
Non-current financial debts	(47,269)
Deferred tax liabilities	(1,741)
Other non-current liabilities	(2,334)
Current financial debts	(2,895)
Trade payables	(53)
Current advance payments	(88)
Other financial current liabilities	(2,202)
Total disposed liabilities	(56,582)
Carrying value of subsidiaries disposed of	16,275

5.6 Net gain on the disposal of the other investments

	2021	2020
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 (for more details refer to note 6.4).

5.7 Amortization, depreciation and impairments

	2021	2020
Depreciation and amortization	(624)	(1)
(Impairment)/reversal of impairment of assets	4,079	(7,399)
Total	3,455	(7,400)

In 2021, the reversal of impairment relates primarily to loans provided to related parties.

5.8 Administrative expenses

	2021	2020
Advisory and tax services	(9,535)	(9,719)
Audit services	(299)	(346)
Personnel expenses	(1,257)	(1,021)
Legal services	(1,561)	(404)
Other administrative expenses	(1,370)	(1,762)
Total	(14,022)	(13,252)

In 2021 and 2020, the advisory expenses primarily include the management services received from related parties in amount of EUR 6.3 million and EUR 4.9 million, respectively.

In 2021, the audit, tax and advisory expenses also include the cost of services provided by the Group's auditor of EUR 0.3 million (0.6 million in 2020), of which EUR 0.3 million (EUR 0.3 million in 2020) related to audit services with remaining amount related primarily to benchmarking for transfer pricing.

Personnel administrative expenses

	2021	2020
Wages and salaries	(1,011)	(857)
Social and health security contributions	(239)	(157)
Other social expenses	(7)	(7)
Total	(1,257)	(1,021)

As at 31 December 2021 and 2020, the Group had 14 and 12 employees, respectively.

5.9 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).

5.10 Other net financial result

	2021	2020
Net foreign exchange gain/(loss) on investment property	(6,183)	44,986
Other net foreign exchange gain/(loss)	64,127	(54,213)
Other net financial result	(956)	(506)
Bank charges	(434)	(222)
Total	56,554	(9,955)

In 2021 and 2020, the other net foreign exchange gains and losses was driven by retranslation of loans provided to related parties in foreign currencies.

5.11 Income tax expense

Tax recognized in profit or loss

	2021	2020
Current income tax expense	(1,377)	(1,024)
Adjustment for prior year	1,009	439
Income tax expense	(368)	(585)
Temporary differences	(50,895)	(38,132)
Utilization of tax losses carried forward	(4,978)	(14,260)
Other effects	(1,435)	(309)
Deferred income tax expense	(57,308)	(52,701)
Total	(57,676)	(53,286)

In 2021 and 2020, based on the taxable profit realized in 2021 and 2020 and based on the assessment of its recoverability, the Group partially released deferred tax asset of EUR 5.0 million and 14.3 million, respectively.

Reconciliation of effective tax rate

	2021	2020
Profit for the period	366,843	145,514
Total income tax recognised in profit or loss	57,676	53,286
Profit before tax	424,519	198,800
Current income tax rate	24.94%	24.94%
Income tax expense using the domestic corporate income tax rate	(105,875)	(49,581)
Effect of tax rates in foreign jurisdictions	16,122	6,003
Non-deductible expense	(2,851)	(5,797)
Tax exempt income	5,434	3,693
Change in unrecognized deferred tax asset from tax losses carried forward	29,254	(7,233)
Other effects	240	(371)
Income tax expense	(57,676)	(53,286)

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.

Monaco: The corporate income tax rate is 26.5% for companies that generate above 25% of their turnover outside Monaco, otherwise 0%.

Recognized deferred tax asset and liability

	Asset		Liability		Net
	31 December	31 December	31 December	31 December	31 December	31 December
	2021	2020	2021	2020	2021	2020
Investment property	2,015	2,235	(135,642)	(81,943)	(133,627)	(79,708)
Property, plant and equipment	-	-	(305)	-	(305)	-
Tax losses carried-forward	132,157	138,230	-	-	132,157	138,230
Other	5,090	5,024	(260)	(27)	4,830	4,997
Gross deferred tax asset/(liability)	139,262	145,489	(136,207)	(81,970)	3,055	63,519
Deferred tax offset by subsidiaries	(5,341)	(3,470)	5,341	3,470	-	-
Net deferred tax asset/(liability)	133,921	142,019	(130,866)	(78,500)	3,055	63,519

As at 31 December 2021 and 2020, the Group recognized the deferred tax asset from tax losses carried forward in total amount of EUR 132.2 million and EUR 138.2 million, respectively. As these tax losses relate primarily to the Luxembourg entities (EUR 129.7 million and EUR 134.7 million as at 31 December 2021 and 2020, 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 2021	31 December 2020
Tax losses carried-forward*	13,413	39,124
* 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 2021	5,002	8,685	11,451	44,735	69,873
As at 31 December 2020	9,208	14,155	11,047	145,999	180,409

Movement in deferred tax

	2021	2020
As at 1 January	63,519	114,926
Recognized in profit or loss	(57,308)	(52,701)
Recognized in other comprehensive income	(386)	-
Disposal of subsidiaries	1,741	-
Translation reserve	(4,511)	1,294
As at 31 December	3,055	63,519

6 Consolidated statement of financial position

6.1 Investment property

						Industry and
	Office	Land bank	Retail	Development	Residential	logistics	Total
As at 1 January 2020	588,824	490,802	-	59,241	50,768	1,800	1,191,435
Development costs and other additions	2,126	3,320	-	37,022	985	96	43,549
Transfers within investment property	96,263	-	-	(96,263)	-	-	-
Transfer from inventory	-	-	-	-	1,107	-	1,107
Disposals	(43)	(1,651)	-	-	-	-	(1,694)
Valuation gain	31,514	122,194	-	-	(7,040)	(235)	146,433
Net foreign exchange loss	39,997	4,932	-	-	-	57	44,986
Translation differences	(43,606)	(14,968)	-	-	-	(58)	(58,632)
As at 31 December 2020	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

Acquisition of subsidiaries

In 2021, the Group acquired the following investment property (see note 3.1 and 3.2): land bank in Brno, the Czech Republic in total value of EUR 2.2 million.

Development costs and other additions

In 2021, 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.

In 2020, the development costs primarily related to development projects Prague's Bubenská of EUR 25.7 million and Nová Zbrojovka in Brno, Czech Republic of EUR 12.4 million.

Transfers to asset held for sale

In 2021, the Group transferred into assets held for sale one land bank in Prague of EUR 54.6 million (see note 6.9).

Disposals

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).

Valuation gain

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.

In 2020, the valuation gain related primarily to the Group's Czech office and land bank portfolio in total amount of EUR 137.0 million.

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

	2021		2020
	Owner occupied			Owner occupied
	buildings	Other	Total	buildings	Other	Total
Cost
As at 1 January	-	662	662	-	662	662
Acquisitions through the business combination	-	347	347	-	-	-
Hotel acquisition	18,717	-	18,717	-	-	-
Development costs and other additions	447	1,048	1,495	-	-	-
Translation differences	-	22	22	-	-	-
Valuation gain/(loss) through OCI	1,609	-	1,609	-	-	-
As at 31 December	20,773	2,079	22,852	-	662	662
Accumulated depreciation and impairment
losses
As at 1 January	-	-	-	-	-	-
Depreciation	(623)	-	(623)	-	-	-
Impairment loss/(reversal of impairment loss)	-	(36)	(36)	-	-	-
As at 31 December	(623)	(36)	(659)	-	-	-
Carrying amounts
As at 1 January	-	662	662	-	662	662
At 31 December	20,150	2,043	22,193	-	662	662

Hotel acquisition

In 2021, the Group acquired a hotel building in Italy with the intention for development for EUR 18.7 million.

6.3 Equity accounted investees

As at 31 December 2021, the equity accounted investment in the amount of EUR 8.2 million (EUR 7.0 million as at 31 December 2020) 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 34%.

	2021	2020
As at 1 January	7,044	3,672
Share of profit	1,146	3,320
Other	-	52
As at 31 December	8,190	7,044

Condensed statement of comprehensive income of Uniborc S.A.

	2021	2020
Net valuation gain on investment property	6,723	14,681
Administrative expenses	(89)	(78)
Operating result	6,634	14,603
Interest expenses	(2,112)	(2,041)
Profit before taxes	4,522	12,562
Income taxes	(1,248)	(2,922)
Profit for the period	3,274	9,640

Condensed statement of financial position of Uniborc S.A.

	31 December 2021	31 December 2020
Investment property	74,517	67,439
Cash and cash equivalents	93	89
Total assets	74,610	67,528
Non-current financial liabilities	(38,703)	(36,582)
Deferred tax liabilities	(12,200)	(10,530)
Curent financial liabilities	(280)	(263)
Other current liabilities	(28)	(28)
Total liabilities	(51,211)	(47,403)
Net assets	23,399	20,125

6.4 Other investments

As at 31 December 2021 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 53.0 million (EUR 188.9 million as at 31 December 2020).

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 2021 and 2020 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 2021 and 2020, EPRA NAV per CPI PG share as at 31 December 2021 and 2020 was used. CPI PG's EPRA NAV per share EUR 0.79 as at 31 December 2021 (EUR 0.59 as at 31 December 2020) differs from the price at the stockexchange EUR 0.72 as at 31 December 2021 (EUR 0.69 as at 31 December 2020).

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 2021 and 2020. As at 31 December 2021, the EPRA NAV per share of EUR 0.80 (EUR 0.61 as at 31 December 2020) 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 2021	31 December 2020
Loans provided - related parties and joint ventures	4,962,740	4,250,722
Impairment to non-current loans provided to related parties	(14,679)	(16,629)
Total non-current loans provided	4,948,061	4,234,093
Loans provided - related parties and joint ventures	186,859	95,165
Loans provided - third parties	-	20,003
Total current loans provided	186,859	115,168

Loans provided substantially increased in 2021 due to additional drawings of loans provided to related parties. These loans bear interest rate between 1.47% - 13.18% p.a. (determined based on the Group's risk assessment) and mature in 2021 - 2028. See note 11 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 13.6 million and EUR 12.7 million as at 31 December 2021 and 2020. The joint venture is primarily financed through a loan by both partners in the same proportion as their respective shareholdings. The loan is repayable in 2023.

6.6 Trade receivables

	31 December 2021	31 December 2020
Trade receivables due from related parties	935	1,644
Trade receivables due from third parties	6,418	5,141
Impairment - trade receivables due from other parties	(424)	(274)
Total	6,929	6,511

6.7 Cash and cash equivalents

	31 December 2021	31 December 2020
Bank balances	210,074	249,188
Cash on hand	2	2
Total	210,076	249,190

6.8 Other current receivables

	31 December 2021	31 December 2020
Cash pool receivables due from related parties	28,711	29,541
Deposits available upon request due from related parties	89,300	149,521
Other receivables due from related parties	97,626	5,945
Other receivables due from third parties	21,176	3,236
Impairment – other receivables due from other parties	(18)	(11)
Total	236,795	188,232

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.

The Company has agreed a cash-pool contracts with related subsidiaries of CPI PG Group (refer to note 2.2). As at 31 December 2021, other current receivables related to cash pool amounted to EUR 28.7 million (EUR 29.5 million as at 31 December 2020).

As at 31 December 2021, the other current receivables increased due to the other receivables of the Group's investment vehicle CPI Italy 130 purchased with purpose of future property acquisitions.

6.9 Assets/Liabilities linked to assets held for sale

As at 31 December 2021, the one land bank project in Czech Republic was classified as asset held for sale in the amount of EUR 54.6 million.

6.10 Equity

As of 31 December 2021, 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 2021:

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 2021	31 December 2020
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	294,053	112,505
Net profit attributable to owners of the parent after assumed conversions/exercises	294,053	112,505
Total Basic earnings in EUR per share	0.22	0.09
Diluted earnings in EUR per share	0.22	0.09

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. The shareholders agreements between the Company and GSG Europa, details the governance, control and cooperation between the shareholders. 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 2021 and 2020.

As at 31 December 2021

	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	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
Consensed 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)

As at 31 December 2020

	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	108,931	24,196	9,173	29,161	61	171,522
NCI – profit for the period	29,956	1,564	24	(405)	1,870	33,009
Condensed financial information
Non-current assets	227,333	33,317	12,076	37,579	4,552	314,857
Current assets	3,591	3,762	289	202	67	7,911
Total assets	230,924	37,079	12,365	37,781	4,619	322,768
Equity attributable to owners	173,610	32,200	11,496	34,510	3,848	255,664
Non-current liabilities and other	57,314	4,879	869	3,271	771	67,104
Total equity and liabilities	230,924	37,079	12,365	37,781	4,619	322,768
Profit for the year	37,445	1,955	30	(506)	2,337	41,261
Net increase/(decrease) in cash and cash equivalents	3,574	3,588	(16)	25	(12)	7,159

6.11 Financial debts

	31 December 2021	31 December 2020
Loans from related parties	5,375,377	4,830,951
Bank loans	20,525	20,525
Lease liabilities	4,523	4,264
Total non-current financial debts	5,400,425	4,855,740
Loans from related parties	261,065	375,925
Bank loans	21	30
Lease liabilities	238	224
Total current financial debts	261,324	376,179

As at 31 December 2021 and 2020, the balance of the loans received from the Group's parent company CPI PG was EUR 5,075.8 million and EUR 4,594.8 million, respectively. The loans from CPI PG bear interest rates between 0.65% - 5.47% p.a.

Maturity of financial debts

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

As at 31 December 2020	Less than one year	1 to 5 years	More than 5 years	Total
Loans from related parties	375,925	1,991,745	2,839,206	5,206,876
Bank loans	30	-	20,525	20,555
Lease liabilities	224	793	3,471	4,488
Total	376,179	1,992,538	2,863,202	5,231,919

For details on the loans received from related parties, refer to note 11.

Reconciliation of movements of liabilities to cash flows arising from financing activities

	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

	Loans and borrowings	Lease liabilities	Total
As at 1 January 2020	4,134,515	4,815	4,139,330
Interest paid	(94,584)	-	(94,584)
Drawings of loans and borrowings	1,083,127	-	1,083,127
Repayments of loans and borrowings	(24,882)	-	(24,882)
Lease liabilities	-	(327)	(327)
Total changes from financing cash flows	963,661	(327)	963,334
Changes arising from obtaining or losing control of subsidiaries	-	-	-
The effect of changes in foreign exchange rates	(15,658)	-	(15,658)
Interest expense	144,913	-	144,913
As at 31 December 2020	5,227,431	4,488	5,231,919

6.12 Other financial non-current liabilities

	31 December 2021	31 December 2020
Tenant deposits	3,729	3,725
Payables from retentions	931	3,121
Other payables due to third parties	133	2,058
Total	4,793	8,904

6.13 Trade payables

	31 December 2021	31 December 2020
Trade payables due to related parties	1,113	1,444
Trade payables due to third parties	7,840	7,174
Total	8,953	8,618

6.14 Other financial current liabilities

	31 December 2021	31 December 2020
Cash pool payables due to related parties	31,915	27,880
Other payables due to related parties	22,382	34,731
Other financial current liabilities due to third parties	5,237	6,066
Total	59,534	68,677

The Company has agreed a cash-pool contracts with selected subsidiaries of CPI PG Group. As at 31 December 2021, the other financial current liabilities related to cash pool amounted to EUR 31.9 million (EUR 27.9 million as at 31 December 2020).

6.15 Other non-financial current liabilities

	31 December 2021	31 December 2020
Value added tax payables	95	3,178
Provisions	968	939
Other	27	39
Total	1,090	4,156

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 2021	31 December 2020
Less than one year	35,559	40,172
Between one and five years	65,561	86,912
More than five years	6,873	48,724
Total	107,993	175,808

As at 31 December 2021, the future rental income from lease agreements decreased compared to 31 December 2020 primarily due to sale of one office property in Brno, the Czech Republic in 2021.

7 Financial 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 2021 and 2020

	Total neither past	Total past due but
31 December 2021	due nor impaired	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

	Total neither past	Total past due but
31 December 2020	due nor impaired	not impaired	Impaired	Total
Other investments	188,884	-	-	188,884
Loans provided	4,349,261	-	(37,145)	4,349,261
- to related parties	4,316,513	-	(16,629)	4,316,513
- to third parties	20,003	-	(20,516)	20,003
- to joint venture	12,745	-	-	12,745
- bills of Exchange	-	-	-	-
Trade and other receivables	189,223	5,520	(285)	194,743
Cash and cash equivalents	249,190	-	-	249,190
Total	4,976,558	5,520	(37,430)	4,982,078

As at 31 December, the Group recognized an impairment of EUR 14.7 million (EUR 16.6 million as at 31 December 2020) against loans provided to related parties.

Breakdown of overdue financial assets which are not impaired:

		Past due
	Past due 1-30	Past due 31-90	Past due 91-	181-360	Past due more
31 December 2021	days	days	180 days	days	than 360 days	Total
Trade and other receivables	794	115	138	35	189	1,271
Total	794	115	138	35	189	1,271

				Past due
	Past due 1-30	Past due 31-90	Past due 91-	181-360	Past due more
31 December 2020	days	days	180 days	days	than 360 days	Total
Trade and other receivables	1,167	689	3,582	53	29	5,520
Total	1,167	689	3,582	53	29	5,520

In respect of the ageing analysis and analysis of rent collections, the Group did not monitor significant increase of the credit risk in connection with COVID-19 pandemic. There has been no significant changes to the provision matrix which is based on the Group's historical credit loss experience and which is used for calculation of the expected credit losses. Development of the credit losses is, due to the negative impacts of COVID-19 pandemic, monitored by the Group on a regular basis.

The office portfolios were, throughout COVID-19 pandemic, effectively operating normally, with stable occupancy, rents and collection rates close to 100%. The Group was able to invoice and regularly collect rent across its portfolio, even at the peak of the COVID-19 outbreak.

Cash and cash equivalents

Cash and cash equivalents, neither past due nor impaired (Moodyˈs ratings of respective counterparties):

	31 December 2021	31 December 2020
A1	136,570	45,786
A2	1,777	3,279
Aa2	-	29
Aa3	186	69,723
Baa1	128	-
Baa3	-	7
Not rated	71,415	130,366
Total	210,076	249,190

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 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.

At 31 December 2020	Carrying value	< 3 month	3-12 months	1-2 years	2-5 years	> 5 year	Total
Financial debts	5,231,919	161,905	370,533	480,819	2,071,569	3,038,508	6,123,334
- loans from related parties	5,206,876	161,595	370,364	480,381	2,070,314	3,013,161	6,095,815
- bank loans	20,555	86	169	225	675	21,876	23,031
- lease liabilities	4,488	224	-	213	580	3,471	4,488
Other non-current liabilities	8,904	-	-	1,549	4,555	2,800	8,904
Other current liabilities*	77,295	42,930	34,365	-	-	-	77,295
Total	5,318,118	204,835	404,898	482,368	2,076,124	3,041,308	6,209,533

*Other current liabilities include current trade payables and other financial current liabilities.

As at 31 December 2021, only financial debts of EUR 1,075.4 million of total EUR 6,688.3 million mature within the next 2 years.

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)).

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:

	Original		Change in TEUR (functional	Change in TEUR (functional
31 December 2021	currency	In TEUR	currency depreciated by 10%)	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

Cash and cash equivalents TEUR TCZK 129,447 108,669 11,271 -1,127 -(1,127)

In TEUR Change in TEUR (functional

currency depreciated by 10%)

31 December 2018 Original

currency

Change in TEUR (functional currency appreciated by 10%)

	Original		Change in TEUR (functional	Change in TEUR (functional
31 December 2020	currency	In TEUR	currency depreciated by 10%)	currency appreciated by 10%)
Cash and cash equivalents		249,190
	TEUR	154,259	-	-
	TCZK	67,687	6,769	(6,769)
	TUSD	6	1	(1)
	THUF	12,509	1,251	(1,251)
	TPLN	14,728	1,473	(1,473)
	THRK	1	-	-
Loans provided		4,349,261
	TEUR	2,487,785	-	-
	TCZK	1,367,355	136,736	(136,736)
	THUF	344,175	34,418	(34,418)
	TRON	17,393	1,739	(1,739)
	TGBP	132,553	13,255	(13,255)
Financial debts		(5,231,919)
	TEUR	(4,897,030)	-	-
	TCZK	(46,055)	(4,606)	4,606
	TCHF	(59,470)	(5,947)	5,947
	TPLN	(4,488)	(449)	449
	TGBP	(224,876)	(22,488)	22,488
Net exposure to currency risk	TCZK	1,388,987	138,899	(138,899)
	TGBP	(92,323)	(9,233)	9,233
	TPLN	10,240	1,024	(1,024)
	TRON	17,393	1,739	(1,739)
	TUSD	6	1	(1)
	THUF	356,684	35,669	(35,669)
	THRK	1	-	-
	TCHF	(59,470)	(5,947)	5,947
		In TEUR	Change in TEUR (functional	Change in TEUR (functional

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.

Cash and cash equivalents TEUR TCZK 129,447 108,669 11,271 -1,127 -(1,127)

currency depreciated by 10%)

currency appreciated by 10%)

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 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 2021, there are no bank loans with flexible interest rates.

Trade receivables and payables are interest-free and have settlement dates within one year.

31 December 2018 Original

currency

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 2.6 million as at 31 December 2021 (EUR 9.4 million as at 31 December 2020) 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.

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 2021.

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 2021	31 December 2020
Debt	5,867,672	5,400,794
Equity	1,515,970	1,103,572
Gearing ratio in %	387.06%	489.39%

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 2021.

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 2021		31 December 2020
	Carrying		Carrying
Financial assets measured at fair value	amount	Fair value	amount	Fair value
CPI Property Group shares*	52,981	52,981	188,875	188,875
Other investments	9	9	9	9
Financial assets not measured at fair value
Loans provided**	5,121,277	5,592,044	4,336,516	4,765,402
Loans provided to joint venture	13,643	13,643	12,745	12,745
Financial liabilities not measured at fair value
Financial debt – other	5,641,203	5,687,797	5,211,364	5,359,778
Financial debt – bank loans (fixed rate)	20,546	19,632	20,555	19,399

* 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 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.

COVID-19, a highly infectious virus, was declared a world-wide pandemic by the WHO in March 2020. The measures to slow the spread of COVID-19 have had a significant impact on the global economy, including the real estate sector. However, there was a limited impact of COVID-19 pandemic on the Group's landbank and office, which largely exhibited normal performance and collection rates, despite office workers spending a significant portion of the year working remotely from home. As at the valuation date, the independent external valuers could attach less weight to the previous market evidence in forming their conclusions.

The independent external valuers included a material estimation uncertainty clause in respect of impact COVID-19 pandemic in their valuation reports across all property types as at 31 December 2021. Consequently, a higher degree of caution should be applied in analysing and interpretation of the valuation results then would normally be the case. The inclusion of the material estimation uncertainty clause does not mean that valuations would not be reliable. It should rather highlight the extraordinary circumstances caused by COVID-19 pandemic lockdowns and the fact that less certainty can be attached to the valuations results than it would normally be the case.

Given the material uncertainty, the future development and impacts of COVID-19 pandemic on the real estate market should be monitored regularly in the upcoming months. The Group performes regular revaluation of its complete investment property and hotel portfolio on annual basis. If there is indication of a significant change in the fair value, the valuation is performed semi-annually.

There were no changes in the valuation methodology used for investment property in respect of Covid-19.

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 2021 and 2020 respectively. The fair value hierarchy of the valuations is Level 3. Fair value amounts are stated in EUR millions.

Investment property

	Fair Value	Fair Value	Valuation	Significant unobservable	Range (weighted avg)	Range (weighted avg)
Retail	2021	2020	technique	inputs	2021	2020
Czech Republic	2	-	DCF	ERV per sqm	€175	-
				NRI per sqm	€173	-
				Discount Rate	5.5%	-
				Exit Yield	5.5%	-
				Vacancy rate	0%	-
Office	Fair Value	Fair Value	Valuation	Significant unobservable	Range (weighted avg)	Range (weighted avg)
	2021	2020	technique	inputs	2021	2020
Czech Republic***	-	131	DCF	ERV per sqm	-	€111-€168 (€160)
				NRI per sqm	-	€38-€76 (€61)
				Discount Rate	-	6.0%-7.3% (6.4%)
				Exit Yield	-	5.0%-6.8 (5.5%)
				Vacancy rate	-	33.2%-61.9% (41.0%)
Czech Republic**	27	-	Income	ERV per sqm	€164	-
			capitalisation	NRI per sqm	€131	-
				Equivalent Yield	4.9%	-
				Vacancy rate	10.4%	-
Complementary Assets	613	579	Income capitalisation	ERV per sqm NRI per sqm	€183-€304(€247) €113-€277(€208)	€182-€305(€245) €169-€278(€224)
				Equivalent Yield	4.7%-6.8% (5.2%)	5.0%-6.5% (5.5%)
				Vacancy rate	0.0%-10.9% (4.3%)	1.0%-4.7% (3.4%)
Complementary Assets	-	5	DCF	ERV per sqm	-	€232
			DCF	NRI per sqm	-	€252
Level 3			DCF	Discount Rate	-	7.3%
Level 3			DCF	Exit Yield	-	7.0%
	Fair Value	Fair Value	Valuation	Significant unobservable	Range (weighted avg)	Range (weighted avg)
Industry and Logistics	2021	2020	technique	inputs	2021	2020
Czech Republic	-	2	DCF	ERV per sqm	-	€27
				NRI per sqm	-	€6
				Equivalent yield	-	11.0%
				Exit yield	-	9.5%
				Vacancy rate	-	100.0%
Residential	Fair Value	Fair Value	Valuation	Significant unobservable	Range (weighted avg)	Range (weighted avg)
	2021	2020	technique	Inputs	2021	2020
Complementary Assets	36	34	Comparable	Fair value per sqm	€17,077-€32,324(€25,120)	€16,468-
						€27,919(€22,819)
Italy	25	12	Comparable	Fair value per sqm	€24,899	€11,840
Landbank	Fair Value	Fair Value	Valuation	Significant unobservable	Range (weighted avg)	Range (weighted avg)
	2021	2020	technique	Inputs	2021	2020
Czech Republic****	166	127	Comparable	Fair value per sqm	€2-€2,353(€10)	€2-€2,419(€8)
Prague	278	168	Comparable	Fair value per sqm	€11-€3,702(€300)	€8-€3,157(€150)
Czech Republic	28	5	Residual	Gross development value	€2,995-€4,862(€4,262)	€2,073
				Development margin	15.0%-25.0%(18.2%)	25.0%
Landbank -	Fair Value	Fair Value	Valuation	Significant unobservable	Range (weighted avg)	Range (weighted avg)
Bubny and Zbrojovka	2021	2020	technique	Inputs	2021	2020
Bubny	220	200	Comparable	Fair value per sqm	(€1,094)	(€990)
Zbrojovka	119	104	Comparable	Fair value per sqm	(€515)	(€449)
Total	1,514	1,367

Property, plant and equipment

Hotels and Resorts	Fair Value 2021	Fair Value 2020	Valuation technique	Significant unobservable inputs	Range (weighted avg) 2021	Range (weighted avg) 2020
Complementary Assets*	20	-	DCF	Rate per key	€103,866	-
				Exit Yield	6.8%	-
				Discount Rate	9.9%	-
Total	20	-

* 2021 acquisition.

** Valuation method changed from DCF as at 31 December 2020 to Income Capitalization as at 31 December 2021.

*** Decreased primarily due to sale of offices in Prague and Brno in 2021.

**** Increased also due to 2021 acquisition.

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 2021 in the table above is not fully comparable to the amounts as at 31 December 2020, primarily due to changes of valuation methods and changes in classification of assets due to their change of use. In 2021, the Group precised calculation of weighted average of fair values per sqm and key. The same approach was applied to comparatives as at 31 December 2020.

Appraisal for Bubny as at 31 December 2021

Bubny is a land bank with a size over 201 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 2021 and 2020, 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:

2021	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	128,000	10,000	80,000	9,000	20,000
Transacted price per sqm (EUR)	500	400	2,800	400	2,100	2,000

2020	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	12,000
Transacted price per sqm (EUR)	500	400	2,700	400	2,000	1,300

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 – 1.20	1.07	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 - 1.10	1.00	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 - 1.30	1.14	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 0.90 - 1.05	1.00	Demand for flats in the location
Individual characteristics of the land & Planning procedure	Multiple 0.85 – 1.10	0.96	Status of development (construction feasibility, construction ban, zoning / building permits etc.)

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
Multiple size	MEUR	0.95	1.00	1.05
	0.95	199	209	220
	1.00	209	220	231
	1.05	220	231	241

Triggering and expected events for further development of the Bubny land bank

Municipal elections were held in Prague in October 2018. The new Prague leaders were to select land plots for development of apartment buildings as the current supply is lacking. New 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 2021

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 2021 and 2020, a valuation of the land bank was prepared by JLL using the comparable method. This method was based on 5 recently executed land site transactions in Brno, included in below table:

2021	Comparative method
	1	2	3	4	5
Zoning plan	Mixed use	Mixed use -> Residential	Mixed use -> Residential	Industrial -> Residential	Residential
Size (sqm) – approx.	9,000	23,000	5,000	8,000	6,000
Transacted price per sqm (EUR)	300	400	700	700	500

2020	Comparative
	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	40,000
Transacted price per sqm (EUR)	250	400	650	650	250

	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	1.04	Vehicular and pedestrian access to the property
Public transportation	Multiple 0.95 - 1.15	1.04	Tram, trolleybus and bus stops in the vicinity
Size	Multiple 0.85 - 0.90	0.86	Size of land plots
Market improvement	Multiple 1.00 - 1.10	1.07	Improvement of the market since the transaction, adjustment used for optimizing dates of transactions to the date of valuation
Flooding area	Multiple 0.95 - 1.00	0.97	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 0.60 – 1.20	1.01	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
Multiple size	MEUR	0.95	1.00	1.05
	0.95	108	113	119
	1.00	113	119	125
	1.05	119	125	131

Triggering and expected events for further development of Zbrojovka land bank

Zbrojovka (formerly armory factory) is classified as development for over the last three 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 date, vast of the former structures were removed. The development of the area is divided into 8 phases in separate areas. The first phase should start 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 444 million and EUR 295 million as at 31 December 2021 and 2020 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 28 million as at 31 December 2021 (5 million as at 31 December 2020) and a size of 30 thousands sqm as at 31 December 2021 (15 thousands sqm as at 31 December 2020).

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.

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 2021

Czech Republic – Retail - DCF						Czech Republic – Office - Income Capitalisation
	MEUR		Yield			MEUR	Yield
		(0.25%)	-	0.25%			(0.25%)	-	0.25%
ERV	(5.00%)	1.61	1.54	1.47	ERV	(5.00%)	26.80	25.41	24.15
	-	1.70	1.62	1.55		-	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	ERV	(5.00%)	19.54	19.14	18.76
-	647.43	613.26	582.32		-	20.57	20.15	19.75
5.00%	677.14	641.27	608.79		5.00%	21.60	21.16	20.74

As at 31 December 2020

ERV

Czech Republic – Industrial - DCF					Czech Republic – Office - DCF
	MEUR		Yield			MEUR		Yield
		(0.25%)	-	0.25%			(0.25%)
ERV	(5.00%)	1.60	1.58	1.55	ERV
	-	1.69	1.66	1.63		-	135.94	130.85

	(0.25%)	-	0.25%			(0.25%)	-	0.25%
(5.00%)	1.60	1.58	1.55	ERV	(5.00%)	129.15	124.31	119.82
-	1.69	1.66	1.63		-	135.94	130.85	126.12
5.00%	1.77	1.74	1.71		5.00%	142.74	137.39	132.43

Czech Republic

Landbank as a development	MEUR
Developer's Profit (5.00%)	5.89
Developer's Profit (2.50%)	5.49
Developer's Profit -	5.09
Developer's Profit 2.50%	4.72
Developer's Profit 5.00%	4.35

Poland - Office – Income Capitalization Poland - Office – DCF

	MEUR	Yield			MEUR	Yield
		(0.25%)	-	0.25%			(0.25%)	-	0.25%
ERV	(5.00%)	582.51	553.67	527.43	ERV	(5.00%)	4.63	4.47	4.31
	-	609.80	579.44	551.82		-	4.87	4.70	4.54
	5.00%	637.00	605.15	576.16		5.00%	5.12	4.94	4.77

		Yield			MEUR	Yield
	(0.25%)	-	0.25%			(0.25%)	-	0.25%
(5.00%)	582.51	553.67	527.43	ERV	(5.00%)	4.63	4.47	4.31
-	609.80	579.44	551.82		-	4.87	4.70	4.54
5.00%	637.00	605.15	576.16		5.00%	5.12	4.94	4.77

8 Contingencies

In June 2007 the Company issued a guarantee up to a maximum amount of EUR 5 million to secure all payment claims of IBB Holding and BTGI against inter alia Gewerbesiedlungs-Gesellsschaft (Berlin), Orco Russian Retail, and MSREF V/MSREF Turtle B.V under an option agreement dated 22/23 May 2006 as amended on 24/25 April 2007 concerning the acquisition of all shares in Gewerbesiedlungs-Gesellsschaft.

According to the framework agreement dated 18 August 2011 between the Company and MSREF V Turtle, the Company assumed the obligation to release the Morgan Stanley companies (MSREF V and MSREF V Turtle) from all claims under the Morgan Stanley guarantee by issuing a respective back to back guarantee of EUR 10 million.

IBB Holding and BTGI agreed to accept a top up of OPG guarantee and the release of Morgan Stanley companies from their engagement as per the option agreement. In June 2015 the Company issued the EUR 5 million top up guarantee in favor IBB Holding and BTGI and obtained a release from Morgan Stanley back to back guarantee. The aggregate guarantee of the Company to the benefit of IBB Holding and BTGI amounts to EUR 10 million.

9 Litigations

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 2H 2022.

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.

10 Capital and other commitments

The Group has capital commitments of EUR 2.0 million and EUR 1.0 million in respect of capital expenditures contracted as at 31 December 2021 and 2020, respectively.

11 Related party transactions

Transactions with key management personnel

Total compensation given as short-term employee benefits to the top managers was EUR 0.6 million and EUR 0.6 million in 2021 and 2020, respectively.

The Board and Committees attendance compensation was EUR 36 thousand and EUR 36 thousand in 2021 and 2020.

The remuneration of the key management personnel and members of Board of Directors

	31 December 2021	31 December 2020
Remuneration paid to the key management personnel and members of Board of Directors	567	627

Breakdown of balances and transactions with related of the Group

Majority shareholder of the Group

	31 December 2021	31 December 2020
Trade receivables	644	456
Management
	31 December 2021	31 December 2020
Other current payables	12	-
Transactions
Other operating expenses	(27)	(25)

Entities over which the majority shareholder has control

	31 December 2021	31 December 2020
Loans provided current (refer below for the detail)	-	35,109
Trade receivables	14	8
Transactions
Rental income	20	28
Other operating income	30	-
Advisory services	-	42
Interest income (refer below for the detail)	261	2,655

Entities controlled by members of Board of Directors

	31 December 2021	31 December 2020
Trade receivables	1	-
Trade payables	58	-
Loans received current (refer below for the detail)	-	120
Transactions
Interest expense (refer below for the detail)	(1)	(2)

CPI PG Group

	31 December 2021	31 December 2020
Loans provided non-current (refer below for the detail)	4,949,247	4,238,117
Loans provided current (refer below for the detail)	186,709	59,917
Trade receivables	276	1,180
Other current receivables	215,637	185,007
Loans received non-current (refer below for the detail)	5,375,377	4,830,950
Loans received current (refer below for the detail)	261,065	375,805
Trade payables	1,055	1,444
Other current liabilities	54,297	62,611
Transactions
Service revenue	23,008	22,465
Advisory services	(9,095)	(9,785)
Interest income (refer below for the detail)	209,143	165,916
Interest expense (refer below for the detail)	(163,149)	(144,482)

Joint venture

	31 December 2021	31 December 2020
Loans provided non-current (refer below for the detail)	13,493	12,605
Loans provided current (refer below for the detail)	150	139
Transactions
Interest income (refer below for the detail)	857	821

Non-current loans provided to related parties

CPI PG Group	31 December 2021	31 December 2020
1 Bishops Avenue Limited	143,284	126,938
Airport City Kft.	14,750	15,656
Airport City Phase B Kft.	1,914	1,754
ALIZÉ PROPERTY a.s.	82	-
Andrássy Hotel Zrt.	3,884	4,683

Andrássy Real Kft.	11,986	10,778
Arena Corner Kft.	35,317	35,530
Balvinder, a.s.	3,817	4,434
BARON PUGLIA S.a.r.l.	-	16,085
Baudry Beta, a.s.	10,526	10,372
BAYTON Alfa, a.s.	12,087	11,655
BC 91 Real Estate Kft.	-	1,210
BC 99 Office Park Kft.	33,987	34,851
Beroun Property Development, a.s.	9,750	8,792
Best Properties South, a.s.	67,249	56,178
Brandýs Logistic, a.s.	25,509	23,797
Brno Development Services, s.r.o.	1,415	255
Březiněves, a.s.	1,984	5,277
Buy-Way Dunakeszi Kft.	4,673	5,791
Buy-Way Soroksár Kft.	3,366	3,783
CAMPONA Shopping Center Kft.	68,566	67,881
Carpenter Invest, a.s.	2,272	2,050

CB Property Development, a.s.	2,458	935
Conradian, a.s.	4,612	5,375
CPI – Bor, a.s.	12,942	10,869
CPI - Horoměřice, a.s.	44	-
CPI - Orlová, a.s.	1,167	1,189
CPI - Real Estate, a.s.	2,436	2,115
CPI Beet, a.s.	173	52
CPI BYTY, a.s.	92,207	93,658
CPI Delta, a.s.	1,743	1,651
CPI East, s.r.o.	81,281	81,471
CPI Facility Slovakia, a.s.	6,042	-
CPI Hotels, a.s.	24,744	35,169
CPI Hotels Europeum Kft.	-	527
CPI Hotels Properties, a.s.	16,187	12,592
CPI IMMO, S.a.r.l.	3,797	3,797
CPI Jihlava Shopping, a.s.	-	15,433
CPI Kappa, s.r.o.	778	650
CPI Office Business Center, s.r.o. (formerly CPI Meteor Centre, s.r.o.)	89,775	15,353
CPI Palmovka Office, s.r.o.	-	1,280
CPI PROPERTY GROUP S.A.	2,488,310	1,634,505

CPI Reality, a.s.	49,863	48,628
CPI Retail One Kft.	6,398	10,349
CPI Retail Portfolio Holding Kft.	26,915	20,931
CPI Retail Portfolio I, a.s.	6,437	2,009
CPI Retail Portfolio II, a.s.	3,748	-
CPI Retail Portfolio IV, s.r.o.	1,386	1,287
CPI Retail Portfolio V, s.r.o.	3,632	4,094
CPI Retail Portfolio VI, s.r.o.	1,478	1,326
CPI Retail Portfolio VIII s.r.o.	4,011	4,048
CPI Retails ONE, a.s.	8,574	8,916
CPI Retails ROSA s.r.o.	3,878	4,485
CPI Retails THREE, a.s.	27,222	31,637
CPI Retails TWO, a.s.	7,380	7,260
CPI Sekunda, s.r.o.	825	-
CPI Shopping MB, a.s.	35,011	34,887
CPI Shopping Teplice, a.s.	48,557	50,269
CPI Vestec, s.r.o.	5,060	5,360
CPIPG Management S.à r.l.	46,352	-
Czech Property Investments, a.s.	428,571	773,988
Čadca Property Development, s.r.o.	3,188	934
Čáslav Investments, a.s.	2,038	2,178
Duca Puglia S.r.l.	-	6,600
EMH South, s.r.o.	7,265	7,429

ENDURANCE HOSPITALITY FINANCE S.á.r.l.	8,043	8,043
Europeum Kft.	23,394	24,246
Farhan, a.s.	53,830	52,198
FL Property Development, a.s.	184	192

CPI PG Group	31 December 2021	31 December 2020
Futurum HK Shopping, s.r.o.	88,816	86,060
Gateway Office Park Kft.	9,271	12,450
HD Investment s.r.o.	75	66
Hightech Park Kft.	3,638	3,633
Hraničář, a.s.	13,301	12,276
IGY2 CB, a.s.	1,972	2,424
IS Nyír Ingatlanhasznosítóés Vagyonkezelo Kft.	2,627	1,350
IS Zala Ingatlanhasznosítóés Vagyonkezelo Kft.	7,987	8,431
Janáčkovo nábřeží 15, s.r.o.	7,782	6,892
Jeseník Investments, a.s.	2,361	1,895
Kerina, a.s.	6,517	5,755
KOENIG Shopping, s.r.o.	47,566	46,899
Komárno Property Development, a.s. Kosmonosy Property Development, s.r.o.	1,546 -	2,009 8,037
Kunratická farma, s.r.o.	2,695	-
LD Praha, a.s.	4,679	4,571
Levice Property Development, a.s.	3,376	3,898
Lockhart, a.s.	25,367	28,905
Lucemburská 46, a.s.	5,236	4,805
Marissa Gama, a.s.	-	38,933
Marissa Omikrón, a.s.	14,604	15,181
Marissa Tau, a.s.	16,309	5,028
Marissa Théta, a.s.	630	1,060
Marissa West, a.s.	81,279	37,495
Marissa Yellow, a.s.	-	7,250
Marissa Ypsilon, a.s.	36,445	37,008
MARRETIM s.r.o.	946	-
MB Property Development, a.s.	-	208
Michalovce Property Development, a.s.	3,307	3,729
MUXUM, a.s. Na Poříčí, a.s.	6,351 28,882	3,627 29,364
New Age Kft.	786	832
Nymburk Property Development, a.s.	1,899	-
OC Nová Zdaboř a.s.	9,354	8,811
OC Spektrum, s.r.o.	14,621	10,100
OFFICE CENTER HRADČANSKÁ, a.s.	-	11,692
Olomouc Building, a.s.	19,626	14,111
Orchard Hotel a.s.	5,498	9,802
Outlet Arena Moravia, s.r.o.	-	17
Ozrics Kft.	2,632	3,014
Pelhřimov Property Development, a.s.	2,496	2,493
Platnéřská 10 s.r.o.	61	528
Pólus Shopping Center Zrt.	63,618	66,589
Považská Bystrica Property Development, a.s.	818	1,130
Prievidza Property Development, a.s.	2,366	2,673
Projekt Nisa, s.r.o. Projekt Zlatý Anděl, s.r.o.	78,183 75,261	77,912 76,654
Prostějov Investments, a.s.	990	645
Příbor Property Development, s.r.o.	525	401
Real Estate Energy Kft.	98	85
Residence Belgická, s.r.o.	1,715	1,521
Residence Izabella, Zrt.	3,385	4,084
Rezidence Jančova, s.r.o.	1,150	1,212
Rezidence Malkovského, s.r.o.	-	400
Savile Row 1 Limited	68,000	5,615
Statek Kravaře, a.s.	-	4,573
Statenice Property Development, a.s.	2,250	2,265
Svitavy Property Alfa, a.s.	8,391	9,015
Tepelné hospodářství Litvínov, s.r.o.	511	680
Trebišov Property Development, s.r.o.	3,368	-
Třinec Investments, s.r.o.	2,157	2,346
Třinec Property Development, a.s.	2,824	3,224
Tyršova 6, a.s. U svatého Michala, a.s.	3,607 3,305	1,845 3,192
Uchaux Limited	905	-
V Team Prague, s.r.o.	4,683	5,603
Vigano, a.s.	10,723	9,490
ZET.office, a.s.	30,931	-
Ždírec Property Development, a.s.	591	659
Total loans provided non-current - related parties	4,949,247	4,238,117
Joint venture

2021 CONSOLIDATED FINANCIAL STATEMENTS | 41

CPI PG Group	31 December 2021	31 December 2020
Uniborc S.A.	13,493	12,605
Total	4,962,740	4,250,722

Current loans provided to related parties

CPI PG Group	31 December 2021	31 December 2020
Airport City Kft.	215	-
Airport City Phase B Kft.	26	-
ALIZÉ PROPERTY a.s.	1	-
Andrássy Hotel Zrt.	158	-
Andrássy Real Kft.	229	-

Arena Corner Kft.	622	-
Balvinder, a.s.	44	51
BARON PUGLIA S.a.r.l.	-	549
Baudry Beta, a.s.	1,183	-
BAYTON Alfa, a.s.	178	172
BC 99 Office Park Kft.	560	-
Beroun Property Development, a.s.	752	-
Best Properties South, a.s.	3,911	-
Brandýs Logistic, a.s.	2,043	-
Brno Development Services, s.r.o.	42	18
Březiněves, a.s.	241	-
Buy-Way Dunakeszi Kft.	85	-

Buy-Way Soroksár Kft.	68	-
CAMPONA Shopping Center Kft.	5,560	5,651
Carpenter Invest, a.s.	36	38
CB Property Development, a.s.	116	19
Conradian, a.s.	74	200
CPI – Bor, a.s.	1,058	-
CPI - Orlová, a.s.	171	-
CPI – Real Estate, a.s.	29	25
CPI Beet, a.s.	3	2
CPI BYTY, a.s.	922	941
CPI Delta, a.s.	135	-
CPI East, s.r.o.	2,273	-

CPI Facility Slovakia, a.s.	127	-
CPI Hotels, a.s.	2,474	529
CPI Hotels Properties, a.s.	471	133
CPI IMMO, S.a.r.l.	238	182
CPI Kappa, s.r.o.	12	13
CPI Office Business Center, s.r.o. (formerly CPI Meteor Centre, s.r.o.)	1,597	-
CPI PROPERTY GROUP S.A.	91,130	34,450
CPI Reality, a.s.	4,702	-
CPI Retail One Kft.	87	168
CPI Retail Portfolio I, a.s.	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.	428	-
CPI RETAIL PORTFOLIO HOLDING Kft.	665	512
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.	12	-
CPI Shopping MB, a.s.	2,612	125
CPI Shopping Teplice, a.s.	1,699	-
CPI Vestec, s.r.o.	467	-
Czech Property Investments, a.s.	13,128	11,247

Čadca Property Development, s.r.o.	251	-
Čáslav Investments, a.s.	194	-
Duca Puglia S.r.l.	-	307
EMH South, s.r.o.	520	-
Europeum Kft.	1,654	-
Farhan, a.s.	3,859	-
FL Property Development, a.s.	21	-
Futurum HK Shopping, s.r.o.	3,103	-
Gateway Office Park Kft.	149	-
Hightech Park Kft.	62	-
Hospitality Invest S.a r.l.	51	-

Hraničář, a.s.	185	170

CPI PG Group	31 December 2021	31 December 2020
IGY2 CB, a.s.	105	96
IS Nyír Kft.	42	-
IS Zala Kft.	178	-
Janáčkovo nábřeží 15, s.r.o.	104	91
Jeseník Investments, a.s.	213	-
Kerina, a.s.	72	64
KOENIG Shopping s.r.o.	2,364	-
Komárno Property Development, a.s.	117	-
Kunratická farma, s.r.o.	11	-
LD Praha, a.s.	44	43
Levice Property Development, a.s.	311	-
Lockhart, a.s.	354	398
Lucemburská 46, a.s.	37	34
Marissa Omikrón, a.s.	1,423	-
Marissa Tau, a.s.	268	-
Marissa Théta, a.s.	5	9
Marissa West, a.s.	2,911	-
Marissa Ypsilon, a.s.	3,186	-
MARRETIM s.r.o.	15	-
Michalovce Property Development, a.s.	335	-
MUXUM, a.s.	74	32
Na Poříčí, a.s.	2,109	-
New Age Kft.	39	-
Nymburk Property Development, a.s.	36	-
OC Nová Zdaboř a.s.	739	-
OC Spektrum, s.r.o.	805	-
Olomouc Building, a.s.	364	160
Orchard Hotel a.s.	98	170
Ozrics, Kft.	99	-
Pelhřimov Property Development, a.s.	280	-
Platnéřská 10 s.r.o.	1	7
Pólus Shopping Center Zrt.	2,400	-
Považská Bystrica Property Development, a.s.	77	-
Prievidza Property Development, a.s.	176	-
Projekt Nisa, s.r.o.	2,753	-
Projekt Zlatý Anděl, s.r.o.	5,601	-
Prostějov Investments, a.s.	17	21
Příbor Property Development, s.r.o.	41	-
Real Estate Energy Kft.	2	2
Residence Belgická, s.r.o.	20	18
Residence Izabella, Zrt.	74	-
Rezidence Jančova, s.r.o.	36	39
Rezidence Malkovského, s.r.o.	-	18
Statek Kravaře, a.s.	295	2,610
Statenice Property Development, a.s.	286	-
Svitavy Property Alfa, a.s.	781	-
Tepelné hospodářství Litvínov, s.r.o.	5	7
Trebišov Property Development, s. r. o.	43	-
Třinec Investments, s.r.o.	187	-
Třinec Property Development, a.s.	51	164
Tyršova 6, a.s.	26	13
U svatého Michala, a.s.	227	-
V Team Prague, s.r.o.	73	82
Vigano, a.s.	166	337
ZET.office, a.s.	538	-
Ždírec Property Development, a.s.	78	-
Total loans provided current - related parties	186,709	59,917
Entities over which the majority shareholder has control
GAMALA LIMITED	-	35,109
Joint venture
Uniborc S.A.	150	139
Total	186,859	95,165

Other current receivables (Deposits)

CPI PG Group	31 December 2021	31 December 2020
BAYTON Gama, a.s.	-	3,811
BPT Development, a.s.	-	3,810
Byty Lehovec, s.r.o.	-	3,600
CPI – Horoměřice, a.s.	-	3,600
CPI – Orlová, a.s.	-	3,600
CPI Flats, a.s.	-	3,600

2021 CONSOLIDATED FINANCIAL STATEMENTS | 43

CPI PG Group	31 December 2021	31 December 2020
CPI Green, a.s.	-	3,600
CPI Kvarta, s.r.o.	-	3,600
CPI Kvinta, s.r.o.	-	3,600
CPI Omikrón, a.s.	-	3,600
CPI Reality, a.s.	9,500	6,200
CPI Retail Portfolio I, a.s.	10,000	3,600
CPI Retails ONE, a.s.	9,800	9,100
CPI Retails TWO, a.s.	10,300	3,600
CPI Shopping MB, a.s.	9,800	7,400
CPI Shopping Teplice, a.s.	9,700	3,600
CPI Sekunda, s.r.o.	-	3,600
CPI Tercie, s.r.o.	-	3,600
CPI Théta, a.s.	-	3,600
Czech Property Ivestments, a.s.	10,000	9,200
HD Invenstment s.r.o.	-	3,600
Jetřichovice Property, a.s.	-	3,600
Kosmonosy Investments, s.r.o.	-	3,600
Marissa Gama, a.s.	-	9,400
Na Poříčí, a.s.	10,500	9,400
Outlet Arena Moravia, s.r.o.	-	3,600
PROJECT FIRST a.s.	-	3,600
Projekt Nisa, s.r.o.	9,700	3,600
Rezidence Jančova, s.r.o.	-	3,600
Rezidence Malkovského, s.r.o.	-	3,600
Statenice Property Development, a.s.	-	3,600
Tachov Investments, s.r.o.	-	3,600
Telč Property Development, a.s.	-	3,600
ZET.office, a.s.	-	1,200
Total	89,300	149,521

Other current receivables (Cash pool)

CPI PG Group	31 December 2021	31 December 2020
Balvinder, a.s.	555	237
Baudry Beta, a.s.	192	235
BAYTON Alfa, a.s.	739	507
Beroun Property Development, a.s.	78	204
Best Properties South, a.s.	2,471	1,261
Brandýs Logistic, a.s.	4,410	716
Brno Development Services, s.r.o.	599	34
BRNO INN, a.s.	83	91
Březiněves, a.s.	148	-
CPI - Bor, a.s.	726	13
CPI - Real Estate, a.s.	454	180
CPI - Zbraslav, a.s.	151	23
CPI Beet, a.s.	18	83
CPI BYTY, a.s.	20	41
CPI Delta, a.s.	11	26
CPI East, s.r.o.	298	1,091
CPI Energo, a.s.	3	-
CPI Finance CEE, a.s.	1	1
CPI Hotels Properties, a.s.	312	227
CPI Jihlava Shopping, a.s.	-	402
CPI Kappa, s.r.o.	-	13
CPI Management, s.r.o.	1,192	366
CPI Office Business Center, s.r.o. (formerly CPI Meteor Centre, s.r.o.)	621	179
CPI Národní, s.r.o.	-	1,129
CPI Office Prague, s.r.o.	1,670	1,610
CPI Palmovka Office, s.r.o.	-	12
CPI PROPERTY GROUP S.A.	614	3,179
CPI Reality, a.s.	-	1,060
CPI Retail MB s.r.o.	-	34
CPI Retail Portfolio I, a.s.	385	625
CPI Retail Portfolio II, a.s.	63	163
CPI Retail Portfolio VI, a.s.	10	57
CPI Retail Portfolio VIII, a.s.	22	195
CPI Retails ONE, a.s.	60	151
CPI Retails TWO, a.s.	54	98
CPI Services, a.s.	720	-
CPI Shopping MB, a.s.	131	856
CPI Shopping Teplice, a.s.	153	815
CPI Vestec, s.r.o.	102	101

2021 CONSOLIDATED FINANCIAL STATEMENTS | 44

CPI PG Group 31 December 2021 31 December 2020 CPIPG Management S.à r.l. 230 169 Czech Property Investments, a.s. 584 - Čadca Property Development, s.r.o. - 215 Čáslav Investments, a.s. 12 25 EMH South, s.r.o. 45 113 ENDURANCE HOSPITALITY ASSET S.à r.l. 3 - ENDURANCE HOSPITALITY FINANCE S.à r.l. 3 - Farhan, a.s. 606 1,434 FL Property Development, a.s. - 1 Futurum HK Shopping, s.r.o. 165 1,379 Hospitality invest S.à r.l. 3 6












HOTEL U PARKU, s.r.o. 108 46
Hraničář, a.s. 377 331
Janáčkovo nábřeží 15, s.r.o. 731 270
Jeseník Investments, a.s. 4 19
Kerina, a.s. 320 228
KOENIG Shopping, s.r.o. 133 481
Kosmonosy Property Development, s.r.o. - 189
LD Praha, a.s. 118 135
Lockhart, a.s. 749 639
Lucemburská 46, a.s. 630 227
Marissa Gama, a.s. - 213
Marissa Omikrón, a.s. 20 190
Marissa Théta, a.s. 107 77
Marissa West, a.s. 27 761
Marissa Ypsilon, a.s. 97 202
MB Property Development, a.s. - 178
MMR RUSSIA S.à r.l. 6 -
MUXUM, a.s. 571 219
Na Poříčí, a.s. - 54
Nymburk Property Development, a.s. 111 -
OC Nová Zdaboř a.s. 74 239
OC Spektrum, s.r.o. 1,069 1,194
OFFICE CENTER HRADČANSKÁ, a.s. - 17
Olomouc Building, a.s. 784 538
Orchard Hotel a.s. 248 215
Pelhřimov Property Development, a.s. 11 31
Platnéřská 10 s.r.o. 3 1
Považská Bystrica Property Development, a.s. - 12
Projekt Nisa, s.r.o. 426 1,678
Projekt Zlatý Anděl, s.r.o. 414 719
Příbor Property Development, s. r.o. 37 12
Residence Belgická, s.r.o. 170 60
Svitavy Property Alfa, a.s. 58 67
Tepelné hospodářství Litvínov s.r.o. 12 -
Třinec Investments, s.r.o. 15 45
Třinec Property Development, a.s. 248 -
Tyršova 6, a.s. 2 177
U svatého Michala, a.s. - 34
V Team Prague, s.r.o. 1,829 677
ZET.office, a.s. 482 -
Ždírec Property Development, a.s. 3 9
Total 28,711 29,541

Non-current financial debts received from related parties

CPI PG Group	31 December 2021	31 December 2020
CPI PROPERTY GROUP S.A.	5,075,824	4,532,880
GSG Asset GmbH & Co. Verwaltungs KG	4,013	4,000
GSG Gewerbehöfe Berlin 1. GmbH & Co. KG	13,141	13,100
GSG Gewerbehöfe Berlin 2. GmbH & Co. KG	19,963	19,900
GSG Gewerbehöfe Berlin 3. GmbH & Co. KG	30,095	30,000
GSG Gewerbehöfe Berlin 4. GmbH & Co. KG	19,662	19,600
GSG Gewerbehöfe Berlin 5. GmbH & Co. KG	34,709	34,600
ST Project Limited	177,970	176,870
Total financial debts non-current - related parties	5,375,377	4,830,950
Entities over which the majority shareholder has control
Turf Praha a.s.	-	-
Total	5,375,377	4,830,950

Current financial debts received from related parties

BAYTON Gama, a.s. 8 1,732 BPT Development, a.s. 87 1,617 BRNO INN, a.s. 3,168 3,098 Brno Property Development, a.s. 25,119 21,809 Byty Lehovec, s.r.o. 5,053 3,753 CPI – Horoměřice, a.s. - 80 CPI - Zbraslav, a.s. 524 2,590 CPI Energo, a.s. - 326 CPI Finance CEE, a.s. 73 71 CPI Flats, a.s. 686 4,073 CPI Green, a.s. 82 77 CPI Hungary Investments Kft. 3,044 998 CPI Hungary Kft. 963 809 CPI Kvarta, s.r.o. 1 2 CPI Kvinta, s.r.o. 2 2 CPI Národní, s.r.o. 33,508 33,934 CPI Office Prague, s.r.o. 256 620 CPI Omikrón, a.s. - 77 CPI PROPERTY GROUP S.A. 97,924 146,945 CPI Retail MB, s.r.o. - 39 CPI Retail Portfolio II, a.s. - 714 CPI Sekunda, s.r.o. 2 2 CPI Tercie, s.r.o. 1 2 CPI Théta, a.s. 82 76 Czech Property Investments, a.s. 82,214 135,863 GSG Asset GmbH & Co. Verwaltungs KG 60 13 GSG Gewerbehöfe Berlin 1. GmbH & Co. KG 197 41 GSG Gewerbehöfe Berlin 2. GmbH & Co. KG 299 63 GSG Gewerbehöfe Berlin 3. GmbH & Co. KG 451 95 GSG Gewerbehöfe Berlin 4. GmbH & Co. KG 295 62 GSG Gewerbehöfe Berlin 5. GmbH & Co. KG 521 109 HOTEL U PARKU, s.r.o. 637 651 Jetřichovice Property, a.s. 257 247 Nymburk Property Development, a.s. - 3,622 PROJECT FIRST, a.s. 4,941 4,720 Rezidence Malkovského, s.r.o. 518 - ST Project Limited - 6,679 Tachov Investments, s.r.o. 57 53 Telč Property Development, a.s. 35 48 Trebišov Property Development, s. r. o. - 17 ZET.office, a.s. (formerly CPI Orange, a.s.) - 76 Total financial debts current - related parties 261,065 375,805 Entities over which the majority shareholder has control Turf Praha a.s. - - Entities controlled by members of Board of Directors CPI Yellow, a.s. - 72	CPI PG Group	31 December 2021	31 December 2020














































	Turf Praha a.s.	-	48
Total 261,065 375,925

Other current liabilities (Cash pool)

CPI PG Group	31 December 2021	31 December 2020
Balvinder, a.s.	2	-
Baudry Beta, a.s.	389	376
Beroun Property Development, a.s.	114	337
Best Properties South, a.s.	24	-
Brandýs Logistic, a.s.	859	652
BRNO INN, a.s.	8	-
Březiněves, a.s.	-	1,411
CB Property Development, a.s.	-	1,275
Central Tower 81 sp. z o.o.	1	-
City Gardens Sp. z o.o.	66	-
CPI - Bor, a.s.	75	135
CPI - Real Estate, a.s.	17	-
CPI - Zbraslav, a.s.	-	33
CPI BYTY, a.s.	3,723	3,111
CPI Delta, a.s.	53	55
CPI East, s.r.o.	2,010	1,152
CPI Energo, a.s.	219	424
CPI Hotels Properties, a.s.	19	-

2021 CONSOLIDATED FINANCIAL STATEMENTS | 46

CPI PG Group	31 December 2021	31 December 2020
CPI Jihlava Shopping, a.s.	-	1,024
CPI Management, s.r.o.	318	590
CPI Národní, s.r.o.	3,500	1,356
CPI Office Business Center, s.r.o. (formerly CPI Meteor Centre, s.r.o.)	462	401
CPI Office Prague, s.r.o.	1,478	-
CPI Palmovka Office, s.r.o.	-	50
CPI Property a Facility, s.r.o.	-	276
CPI Reality, a.s.	562	1,086
CPI Retail Portfolio II, a.s. CPI Retail Portfolio IV, a.s.	42 82	199 25
CPI Retail Portfolio V, a.s.	443	328
CPI Retail Portfolio VI, a.s.	77	78
CPI Retail Portfolio VIII s.r.o.	105	-
CPI Retails ONE, a.s.	189	232
CPI Retails Rosa s.r.o.	76	56
CPI Retails THREE, a.s.	735	500
CPI Retails TWO, a.s.	214	312
CPI Services, a.s.	3,645	2,555
CPI Shopping MB, a.s.	708	493
CPI Shopping Teplice, a.s. CPI Vestec, s.r.o.	560 24	- 129
Czech Property Investments, a.s.	1	231
Čadca Property Development, s.r.o.	99	-
Čáslav Investments, a.s.	44	48
EMH South, s.r.o.	162	145
Farhan, a.s.	813	1,629
FL Property Development, a.s.	2	2
Futurum HK Shopping, s.r.o.	1,523	-
HOTEL U PARKU, s.r.o.	7	-
IGY2 CB, a.s.	-	730
Janáčkovo nábřeží 15, s.r.o.	15	-
Jeseník Investments, a.s.	64	64
KOENIG Shopping, s.r.o. Komárno Property Development, a.s.	1,233 73	- 36
Kosmonosy Property Development, s.r.o.	-	191
LD Praha, a.s.	3	-
Levice Property Development, a.s.	103	63
Lockhart, a.s.	25	-
Lucemburská 46, a.s.	23	-
Marissa Gama, a.s.	-	697
Marissa Omikrón, a.s.	148	351
Marissa Théta, a.s.	2	-
Marissa West, a.s.	570	1,069
Marissa Ypsilon, a.s. Michalovce Property Development, a.s.	261 62	78 81
MMR RUSSIA S.à r.l.	-	10
MUXUM, a.s.	21	-
Na Poříčí, a.s.	413	250
Nymburk Property Development, a.s.	440	-
OC Nová Zdaboř a.s.	320	516
OC Spektrum, s.r.o.	228	1
OFFICE CENTER HRADČANSKÁ, a.s.	-	215
Orchard Hotel a.s.	4	-
Pelhřimov Property Development, a.s.	36	53
Považská Bystrica Property Development, a.s.	74	-
Prievidza Property Development, a.s. Projekt Nisa, s.r.o.	31 1,326	32 -
Projekt Zlatý Anděl, s.r.o.	1,675	1,848
Příbor Property Development, s. r.o.	-	3
Residence Belgická, s.r.o.	9	-
Svitavy Property Alfa, a.s.	204	373
Tepelné hospodářství Litvínov s.r.o.	1	107
Trebišov Property Development, s. r. o.	146	-
Třinec Investments, s.r.o.	81	57
Třinec Property Development, a.s.	-	335
Tyršova 6, a.s.	98	-
U svatého Michala, a.s.	19	-
V Team Prague, s.r.o. ZET.office, a.s.	381 357	- -
Ždírec Property Development, a.s.	19	14
Total	31,915	27,880

2021 CONSOLIDATED FINANCIAL STATEMENTS | 47

Interest income from related parties

CPI PG Group	2021	2020
1 Bishops Avenue Limited	5,295	3,423
AIRPORT CITY Kft.	888	705
Airport City Phase B Kft.	93	76
ALIZÉ PROPERTY a.s.	2	-
Andrássy Hotel Zrt.	332	212
Andrássy Real Kft.	843	504
Arena Corner Kft.	2,475	1,582
Balvinder, a.s.	185	209

BARON PUGLIA S.a.r.l.	150	529
Baudry Beta, a.s.	737	482
BAYTON Alfa, a.s.	711	692
BC 30 Property Kft.	-	-
BC 91 Real Estate Kft.	64	68
BC 99 Office Park Kft.	2,212	1,561
Beroun Property Development, a.s.	595	467
Best Properties South, a.s.	3,836	2,413
BPT Development, a.s.	-	-
Brandýs Logistic, a.s.	1,468	952
Brno Development Services, s.r.o.	25	18
BRNO INN, a.s.	1	-
Brno Property Development, a.s.	-	-
Březiněves, a.s.	154	373

Bubenská 1, a.s. merged with CPI Office Business Center, s.r.o.	1,733	-
Buy-Way Dunakeszi Kft.	372	297
Buy-Way Soroksár Kft.	280	206
Byty Lehovec, s.r.o.	-	742
CAMPONA Shopping Center Kft.	7,262	5,290
Carpenter Invest, a.s.	134	143
CB Property Development, a.s.	170	71
Conradian, a.s.	322	369
CPI – Bor, a.s.	736	530
CPI - Orlová, a.s.	79	67
CPI - Real Estate, a.s.	112	95
CPI - Zbraslav, a.s.	1	-
CPI Beet, a.s.	18	14

CPI BYTY, a.s.	3,718	3,827
CPI Delta, a.s.	105	83
CPI East, s.r.o.	4,461	4,118
CPI Facility Slovakia, a.s.	127	-
CPI Flats, a.s.	-	4
CPI Hotels, a.s.	1,864	526
CPI Hotels Europeum Kft.	34	32
CPI Hotels Properties, a.s.	758	512
CPI IMMO, S.a.r.l.	57	57
CPI Jihlava Shopping, a.s.	948	1,006
CPI Kappa, s.r.o.	46	57
CPI Management, s.r.o.	9	1
CPI Národní, s.r.o.	9	1
CPI Office Business Center, s.r.o. (formerly CPI Meteor Centre, s.r.o.)	2,324	606

CPI Office Prague, s.r.o.	10	956
CPI Palmovka Office, s.r.o. merged with CPI Office Business Center, s.r.o.	65	148
CPI Property a Facility, s.r.o.	-	5
CPI PROPERTY GROUP S.A.	56,700	35,957
CPI Reality, a.s.	3,684	2,504
CPI Retail MB s.r.o. (merged with Nymburk Property Development, a.s.)	24	-
CPI Retail One Kft.	575	813
CPI Retail Portfolio Holding Kft.	841	850
CPI Retail Portfolio I, a.s.	365	99
CPI Retail Portfolio II, a.s.	66	-
CPI Retail Portfolio IV, s.r.o.	90	48
CPI Retail Portfolio V, s.r.o.	238	190
CPI Retail Portfolio VI, s.r.o.	82	64

CPI Retail Portfolio VIII s.r.o.	294	215
CPI Retails ONE, a.s.	616	478
CPI Retails ROSA s.r.o.	259	159
CPI Retails THREE, a.s.	1,801	1,160
CPI Retails TWO, a.s.	496	356
CPI Sekunda, s.r.o.	24	-
CPI Services, a.s.	29	85

CPI PG Group	2021	2020
CPI Shopping MB, a.s.	2,174	1,709
CPI Shopping Teplice, a.s.	3,479	2,967
CPI Tercie, s.r.o.	1	-
CPI Vestec, s.r.o.	359	288
CPIPG Management S.à r.l. Czech Property Investments, a.s.	2 28,234	- 36,835

Čadca Property Development, s.r.o. Čáslav Investments, a.s.	228 150	41 131
Duca Puglia S.r.l.	127	307
EMH South, s.r.o.	507	408
ENDURANCE HOSPITALITY FINANCE S. a r.l.	-	96
Europeum Kft.	1,867	1,241
Farhan, a.s.	3,778	2,809
FL Property Development, a.s.	11	10
Futurum HK Shopping, s.r.o.	6,044	4,332
Gateway Office Park Kft.	674	563
Gewerbesiedlungs-Gessellschaft mbH	-	52
HD Investment s.r.o.	4	4
Hightech Park Kft.	246	210
Hospitality Invest S. a r.l.	-	-
Hraničář, a.s.	717	675
IGY2 CB, a.s.	159	196
IS Nyír Ingatlanhasznosítóés Vagyonkezelo Kft.	133	79
IS Zala Ingatlanhasznosítóés Vagyonkezelo Kft.	724	599
Janáčkovo nábřeží 15, s.r.o.	402	351
Jeseník Investments, a.s.	160	109
Kerina, a.s.	276	262
KOENIG Shopping, s.r.o.	3,392	2,724
Komárno Property Development, a.s.	82	63
Kosmonosy Property Development, s.r.o.	251	384
Kravařská zemědělská, a.s.	-	159
Kunratická farma, s.r.o.	11	-
LD Praha, a.s.	174	175
Levice Property Development, a.s.	220	157
Liptovský Mikuláš Property Development, a.s.	-	286
Lockhart, a.s.	1,473	1,529
Lucemburská 46, a.s.	147	146
Marissa Gama, a.s.	2,507	1,887
Marissa Omikrón, a.s.	940	838
Marissa Tau, a.s.	893	396
Marissa Théta, a.s.	30	38
Marissa West, a.s.	2,843	2,615
Marissa Yellow, a.s.	536	524
Marissa Ypsilon, a.s.	2,485	1,949
MARRETIM s.r.o.	37	-
MB Property Development, a.s. (merged with Nymburk Property Development, a.s.)	3	70
Michalovce Property Development, a.s.	203	177
MUXUM, a.s.	280	141
Na Poříčí, a.s.	2,056	1,744
New Age Kft.	54	40
Nymburk Property Development, a.s.	107	-
OC Nová Zdaboř a.s.	583	432
OC Spektrum, s.r.o.	1,046	558
OFFICE CENTER HRADČANSKÁ, a.s. merged with CPI Office Business Center, s.r.o.	647	639
Office Center Poštová, s.r.o.	-	122
Olomouc Building, a.s.	1,371	651
Orchard Hotel a.s.	397	662
Outlet Arena Moravia, s.r.o.	1	15
Ozrics, Kft.	198	147
Pelhřimov Property Development, a.s.	180	140
Platnéřská 10 s.r.o.	8	7
Pólus Shopping Center Zrt.	5,633	4,399
Považská Bystrica Property Development, a.s.	48	37
Prievidza Property Development, a.s.	126	95
Projekt Nisa, s.r.o.	5,427	4,705
Projekt Zlatý Anděl, s.r.o.	4,339	3,229
Prostějov Investments, a.s.	53	42
Příbor Property Development, s.r.o.	34	19
Real Estate Energy Kft.	5	9
Residence Belgická, s.r.o.	78	72
Residence Izabella, Zrt.	334	222

CPI PG Group	2021	2020
Rezidence Jančova, s.r.o.	132	49
Rezidence Malkovského, s.r.o.	37	33
Savile Row 1 Limited	2,915	9
Spišská Nová Ves Property Development, a.s.	-	-
Statek Kravaře, a.s.	140	237
Statenice Property Development, a.s.	129	115
Svitavy Property Alfa, a.s.	602	469
Telč Property Development, a.s.	-	1
Tepelné hospodářství Litvínov, s.r.o.	19	35
Trebišov Property Development, s.r.o.	123	1
Třebíč Investments, s.r.o.	-	-
Třinec Investments, s.r.o.	146	111
Třinec Property Development, a.s.	214	214
Tyršova 6, a.s.	98	57
U svatého Michala, a.s.	180	133
Uchaux Limited	31	-
V Team Prague, s.r.o.	352	252
Vigano, a.s.	632	641
ZET.office, a.s.	1,658	-
Ždírec Property Development, a.s.	43	34
Total interest income - related parties	209,143	165,916
Entities over which the majority shareholder has control
GAMALA LIMITED	261	2,655
Joint venture
Uniborc S.A.	857	821
Total	210,261	169,392

Interest expense from related parties

CPI PG Group	2021	2020
Baudry Beta, a.s.	4	1
BAYTON Gama, a.s.	55	37
Beroun Property Development, a.s.	3	2
Best Properties South, a.s.	-	1
BPT Development, a.s.	10	65
Brandýs Logistic, a.s.	10	9
Brno Development Services, s.r.o.	4	-
BRNO INN, a.s.	93	78
Brno Property Development, a.s.	672	637
Březiněves, a.s.	12	11
Bubenská 1, a.s. merged with CPI Office Business Center, s.r.o.	1	-
Byty Lehovec, s.r.o.	130	4
CB Property Development, a.s.	10	3
CPI - Bor, a.s.	1	-
CPI – Horoměřice, a.s.	2	7
CPI - Zbraslav, a.s.	65	76
CPI BYTY, a.s.	127	24
CPI Delta, a.s.	1	-
CPI East,s.r.o.	27	5
CPI Energo, a.s.	10	11
CPI Finance CEE, a.s.	3	2
CPI Flats, a.s.	110	84
CPI Green, a.s.	2	2
CPI Hungary Kft.	26	24
CPI Hungary Investments Kft.	27	13
CPI Jihlava Shopping, a.s.	17	1
CPI Management, s.r.o.	5	1
CPI Národní, s.r.o.	1,042	892
CPI Office Business Center, s.r.o. (formerly CPI Meteor Centre, s.r.o.)	11	1
CPI Office Prague, s.r.o.	29	41
CPI Omikrón, a.s.	2	2
CPI Palmovka Office, s.r.o. merged with CPI Office Business Center, s.r.o.	1	-
CPI Property a Facility, s.r.o. (merged with CPI Services, a.s.)	2	1
CPI PROPERTY GROUP S.A.	157,429	139,864
CPI Reality, a.s.	16	4
CPI Retail MB s.r.o. (merged with Nymburk Property Development, a.s.)	-	38
CPI Retail Portfolio I, a.s.	1	-
CPI Retail Portfolio II, a.s.	5	102
CPI Retail Portfolio IV, a.s.	1	-
CPI Retail Portfolio V, a.s.	3	1
CPI Retail Portfolio VI, a.s.	1	-
CPI Retail Portfolio VIII, a.s.	2	-

2021 CONSOLIDATED FINANCIAL STATEMENTS | 50

CPI PG Group	2021	2020
CPI Retails ONE, a.s.	3	1
CPI Retails Rosa s.r.o.	2	-
CPI Retails TWO, a.s.	3	1
CPI Retails THREE, a.s.	13	1
CPI Services, a.s.	37	9
CPI Shopping MB, a.s.	9	2
CPI Shopping Teplice, a.s.	8	-
CPI Théta, a.s.	2	2
CPI Vestec, s.r.o.	2	-
Czech Property Investments, a.s.	808	1,665
Čadca Property Development, s.r.o.	2	-
Čáslav Investments, a.s.	1	-
EMH South, s.r.o.	6	1
Farhan, a.s.	10	3
Futurum HK Shopping, s.r.o.	23	-
GSG Asset GmbH & Co. Verwaltungs KG GSG Gewerbehöfe Berlin 1. GmbH & Co. KG	60 197	13 41
GSG Gewerbehöfe Berlin 2. GmbH & Co. KG	299	63
GSG Gewerbehöfe Berlin 3. GmbH & Co. KG	451	95
GSG Gewerbehöfe Berlin 4. GmbH & Co. KG	295	62
GSG Gewerbehöfe Berlin 5. GmbH & Co. KG	521	110
HOTEL U PARKU, s.r.o.	19	16
Hraničář, a.s.	1	-
IGY2 CB, a.s.	4	2
Jeseník Investments, a.s.	1	-
Jetřichovice Property, a.s.	7	7
KOENIG Shopping, s.r.o.	16	-
Komárno Property Development, a.s.	2	-
Kosmonosy Property Development, s.r.o.	3	1
Levice Property Development, a.s.	1	-
Marissa Gama, a.s.	13	2
Marissa Omikrón, a.s.	3	1
Marissa West, a.s.	22	4
Marissa Ypsilon, a.s.	10	-
MB Property Development, a.s. (merged with Nymburk Property Development, a.s.)	4	-
Michalovce Property Development, a.s.	1	1
Na Poříčí, a.s.	11	2
Nymburk Property Development, a.s.	101	177
OC Nová Zdaboř a.s. OC Spektrum, s.r.o.	3 2	1 1
OFFICE CENTER HRADČANSKÁ, a.s. merged with CPI Office Business Center, s.r.o.	3	1
Olomouc Building, a.s.	1	-
Pelhřimov Property Development, a.s.	1	1
Považská Bystrica Property Development, a.s.	1	-
Prievidza Property Development, a.s.	1	-
PROJECT FIRST a.s.	144	139
Projekt Nisa, s.r.o.	10	-
Projekt Zlatý Anděl, s.r.o.	14	4
Rezidence Malkovského, s.r.o.	3	-
Svitavy Property Alfa, a.s.	4	1
Tachov Investments, s.r.o.	1	2
Telč Property Development, a.s.	1	2
Tepelné hospodářství Litvínov s.r.o.	4	1
Trebišov Property Development, s. r. o.	1	-
Třinec Investments, s.r.o.	1	-
Třinec Property Development, a.s.	2	1
Tyršova 6, a.s.	1	-
V Team Prague, s.r.o.	1	-
ZET.office, a.s. (formerly CPI Orange, a.s.)	7	2
Total interest expense - related parties	163,149	144,482
Entities over which the majority shareholder has control
Turf Praha a.s.	-	-
Entities controlled by members of Board of Directors CPI Yellow, a.s.	1	2
Total	163,150	144,484

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.

Resale of Globalworth Real Estate Investments Limited shares

On 6 March 2020, the Group purchased 1,500 thousand shares of Globalworth Real Estate Investments Limited for EUR 14.8 milllion from CPI PG. On 10 and 17 March 2020, the shares were sold for the same amount to the related party Zakiono Enterprises Limited.

The related party transactions were priced on arm's length basis.

12 Events after the reporting period

Sanctions against certain Russian entities

In February 2022, EU and other countries imposed sanctions against certain entities and individuals in Russia as a reaction of military operations initiated by Russia against the Ukraine. Due to the growing geopolitical tensions, there has been a significant increase in volatility on the securities and currency markets. It is expected that these events may affect the activities of Russian enterprises in various sectors of the economy. The Group does not hold any properties directly in the region. The Group regards these events as non-adjusting events after the reporting period.

Impact of COVID -19 pandemic on the Group

COVID-19, an infectious disease caused by a new virus, was declared a world-wide pandemic in March 2020. The outbreak of the pandemic heavily impacted global financial markets, economies including the real estate sector. The Group was however able to invoice and regularly collect rent across its portfolio, even at the peak of the COVID-19 outbreak.

The Group's main shareholder CPI PG Group currently has EUR 1.2 billion of liquidity including EUR 700 million of undrawn revolving credit facility due in 2026. Overall, Covid-19 pandemic lockdowns had no significant impact on the CPI PG Group's business and therefore, the Group does not expect the COVID-19 pandemic to have impact on its ability to continue as a going concern.

Appendix I – List of group entities

Entities fully consolidated

Company	Country	31 December 2021	31 December 2020
Brno Property Invest XV., s.r.o.	Czech Republic	100.00%	-
Bubenská 1, a.s.	Czech Republic	-	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%	-
CPI Italy 130 SPV S.r.l.	Italy	100.00%	-
CPI Park Žďárek, a.s.	Czech Republic	99.98%	99.98%
CPI Pigna S.r.l.	Italy	100.00%	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%
HAGIBOR OFFICE BUILDING, a.s.	Czech Republic	-	100.00%
Industrial Park Stříbro, s.r.o.	Czech Republic	100.00%	100.00%
JIHOVÝCHODNÍ MĚSTO, a.s.	Czech Republic	100.00%	100.00%
Karviná Property Development, a.s.	Czech Republic	-	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%
PAC Italy 130 SPV S.r.l.	Italy	100.00%	-
Pietroni, s.r.o.	Czech Republic	100.00%	100.00%
Polygon BC, a.s.	Czech Republic	20.00%	20.00%
Rezidence Pragovka, s.r.o.	Czech Republic	100.00%	100.00%
SCP Reflets	Monaco	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%
Svitavy Property Development, 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 2021	31 December 2020
Beta Development, s.r.o.	Czech Republic	35.00%	35.00%
Uniborc S.A.	Luxembourg	35.00%	35.00%

Independent auditor's report

To the Shareholders of CPI FIM SA 40, rue de la Vallée L-2661 Luxembourg

Report on the audit of the consolidated financial statements

Opinion

We have audited the consolidated financial statements of CPI FIM SA (the "Company") and its subsidiaries (the "Group"), which comprise the consolidated statement of financial position as at 31 December 2021, and the consolidated statement of comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended, and the notes to the consolidated financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying consolidated financial statements give a true and fair view of the consolidated financial position of the Group as at 31 December 2021, and of its consolidated financial performance and consolidated cash flows for the year then ended in accordance with International Financial Reporting Standards ("IFRS") as adopted by the European Union.

Basis for opinion

We conducted our audit in accordance with EU Regulation N° 537/2014, the Law of 23 July 2016 on the audit profession (the "Law of 23 July 2016") and with International Standards on Auditing ("ISAs") as adopted for Luxembourg by the "Commission de Surveillance du Secteur Financier" ("CSSF"). Our responsibilities under the EU Regulation Nº 537/2014, the Law of 23 July 2016 and ISAs are further described in the "Responsibilities of the "réviseur d'entreprises agréé" for the audit of the consolidated financial statements" section of our report. We are also independent of the Group in accordance with the International Ethics Standards Board for Accountants' Code of Ethics for Professional Accountants ("IESBA Code") as adopted for Luxembourg by the CSSF together with the ethical requirements that are relevant to our audit of the consolidated financial statements, and have fulfilled our other ethical responsibilities under those ethical requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of the audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

a) Impairment of loans provided

Description

Loans provided represent 67% of the total Group's consolidated assets. The majority of the loans provided have been granted to related parties as detailed in Note 6.5 in the consolidated financial statements. The process for estimating impairment provision on loans provided is a significant and complex area. Management performs an impairment assessment of loans provided and recognizes an allowance for expected credit losses in accordance with IFRS 9.

Due to the complexity, significance of judgements applied and the Group's exposure to loans provided forming a major portion of the Group's assets, the audit of impairment of loans provided is a key area of focus.

Auditors response

Our audit procedures over the impairment on loans provided included, but were not limited to, the following:

Obtained an understanding of the key contractual terms of the loans provided.
Evaluated the application of requirements of IFRS 9 and appropriateness of the accounting policies applied by the management of the Group.
Understood management's model used to determine impairment.
Reviewed the data/information used in developing the model and involved EY specialist to review and challenge significant assumptions and parameters used.
Tested the accuracy and completeness of the financial data used in the model.
Tested the arithmetical accuracy of the model applied.
Reviewed and ensured the completeness of the consolidated financial statements disclosures in terms of IFRS 9.

b) Valuation of investment property

Description

The Group owns a portfolio of investment properties comprising office, land, properties under development, retail and residential type of properties located in Europe. Investment property represents 21% of the total Group's assets as at 31 December 2021. Investment properties are valued at fair value in accordance with the Group accounting policies.

Valuation of investment property is a significant judgemental area and is underpinned by a number of factual inputs and assumptions. The valuation is inherently subjective due to, among other factors, the individual nature of each property, the location and the expected cash flows generated by future rentals. The management engaged independent external valuers (hereafter the "Valuers") to externally value 99% of the Group's investment properties.

In determining a property's valuation, the Valuers take into account property specific characteristics and information such as the correct tenancy agreements and rental income. They apply assumptions for yields and estimated market rent, which are influenced by prevailing market yields and comparable market transactions, to come up with their assessment of the fair value.

Due to the above-mentioned matters, we consider valuation of investment property as a key audit matter.

Auditors' response

Our audit procedures over the valuation of investment property included, but were not limited to, the following:

We evaluated the competence, capabilities and objectivity of the valuers and read the terms of engagement of the Valuers to determine whether there were any matters that might have affected their objectivity or limited the scope of their work.
For a sample of the valuations across all asset classes, geographical locations and external valuers, we traced the inputs used in the valuation process to corresponding lease agreements and other relevant documentation.
In particular, we assessed whether the applied valuation methods are appropriate for the purpose of the valuation of the underlying investment property.
We also involved our own real estate specialist to assist us in evaluating the reasonableness of the assumptions used in valuation models including yields and estimated market rent, for the sample of investment properties.
We evaluated any caveats or limitations, if any, included in the Valuers' reports.
We assessed the adequacy of the disclosures in the consolidated financial statements.

Other information

The Board of Directors is responsible for the other information. The other information comprises the information included in the consolidated annual report including the Group management report and the corporate governance statement but does not include the consolidated financial statements and our report of "réviseur d'entreprises agréé" thereon.

Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report this fact. We have nothing to report in this regard.

Responsibilities of the Board of Directors and of those charged with governance for the consolidated financial statements

The Board of Directors is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with IFRS as adopted by the European Union, and for such internal control as the Board of Directors determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

The Board of Directors is also responsible for presenting and marking up the consolidated financial statements in compliance with the requirements set out in the Delegated Regulation 2019/815 on European Single Electronic Format, as amended ("ESEF Regulation").

In preparing the consolidated financial statements, the Board of Directors is responsible for assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Group's financial reporting process.

Responsibilities of the "réviseur d'entreprises agréé" for the audit of the consolidated financial statements

The objectives of our audit are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a report of the "réviseur d'entreprises agréé" that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with EU Regulation N° 537/2014, the Law of 23 July 2016 and with the ISAs as adopted for Luxembourg by the CSSF will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with EU Regulation N° 537/2014, the Law of 23 July 2016 and with ISAs as adopted for Luxembourg by the CSSF, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors.

Conclude on the appropriateness of Board of Directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our report of the "réviseur d'entreprises agréé" to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our report of the "réviseur d'entreprises agréé". However, future events or conditions may cause the Group to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Assess whether the consolidated financial statements have been prepared, in all material respects, in compliance with the requirements laid down in the ESEF Regulation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities and business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the Group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and communicate to them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our report unless law or regulation precludes public disclosure about the matter.

Report on other legal and regulatory requirements

We have been appointed as "réviseur d'entreprises agréé" by the General Meeting of the Shareholders on 3 October 2019 and the duration of our uninterrupted engagement, including previous renewals and reappointments, is 3 years.

The Group management report, which is the responsibility of the Board of Directors, is consistent with the consolidated financial statements and has been prepared in accordance with applicable legal requirements.

The corporate governance statement, included in the consolidated management report, is the responsibility of the Board of Directors. The information required by article 68ter paragraph (1) letters c) and d) of the law of 19 December 2002 on the commercial and companies register and on the accounting records and annual accounts of undertakings, as amended, is consistent with the consolidated financial statements and has been prepared in accordance with applicable legal requirements.

We have checked the compliance of the consolidated financial statements of the Group as at 31 December 2021 with relevant statutory requirements set out in the ESEF Regulation that are applicable to the financial statements. For the Group, it relates to:

Financial statements prepared in valid xHTML format;
The XBRL markup of the consolidated financial statements using the core taxonomy and the common rules on markups specified in the ESEF Regulation.

In our opinion, the consolidated financial statements of the Group as at 31 December 2021, identified as CPI_FIM_S.A._20220331.zip, have been prepared, in all material respects, in compliance with the requirements laid down in the ESEF Regulation.

We confirm that the audit opinion is consistent with the additional report to the audit committee or equivalent.

We confirm that the prohibited non-audit services referred to in EU Regulation No 537/2014 were not provided and that we remained independent of the Group in conducting the audit.

Ernst & Young Société anonyme Cabinet de révision agréé Jesus Orozco

Luxembourg, 31 March 2022

Société Anonyme

R.C.S. Luxembourg B 44.996

ANNUAL ACCOUNTS AND REPORT OF THE REVISEUR D'ENTREPRISES AGREE 31 DECEMBER 2021

40, rue de la Vallée L-2661 Luxembourg Share capital: EUR 13,145,076 R.C.S. Luxembourg B 44.996

REPORT OF THE REVISEUR D'ENTREPRISES AGREE

ANNUAL ACCOUNTS

Notes to the annual accounts

Independent auditor's report

To the Shareholders of CPI FIM SA 40, rue de la Vallée L-2661 Luxembourg

Report on the audit of the financial statements

Opinion

We have audited the financial statements of CPI FIM SA (the "Company"), which comprise the balance sheet as at 31 December 2021, and the profit and loss account for the year then ended, and the notes to the financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying financial statements give a true and fair view of the financial position of the Company as at 31 December 2021, and of the results of its operations for the year then ended in accordance with Luxembourg legal and regulatory requirements relating to the preparation and presentation of the financial statements.

Basis for opinion

We conducted our audit in accordance with EU Regulation N° 537/2014, the Law of 23 July 2016 on the audit profession (the "Law of 23 July 2016") and with International Standards on Auditing ("ISAs") as adopted for Luxembourg by the "Commission de Surveillance du Secteur Financier" ("CSSF"). Our responsibilities under the EU Regulation Nº 537/2014, the Law of 23 July 2016 and ISAs are further described in the "Responsibilities of the "réviseur d'entreprises agréé" for the audit of the financial statements" section of our report. We are also independent of the Company in accordance with the International Ethics Standards Board for Accountants' Code of Ethics for Professional Accountants ("IESBA Code") as adopted for Luxembourg by the CSSF together with the ethical requirements that are relevant to our audit of the financial statements, and have fulfilled our other ethical responsibilities under those ethical requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of the audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

a) Valuation of financial assets (shares in affiliated undertakings and loans to affiliated undertakings)

Description

Financial assets represent 91% of the total assets of the Company as at 31 December 2021.

The assessment of the valuation of financial assets requires significant judgement applied by the management in assessing the recovery value of the financial assets and the permanent nature of a potential impairment.

This matter was considered to be a key matter in our audit, since the aforementioned estimates are complex and require significant judgements by management of the Company.

Auditors' response

Our audit procedures over the valuation of financial assets included, but were not limited to, the following:

Ensured existence, initial cost of investment and ownership of the investments through inspection of acquisition agreements and commercial registers of the underlying investees.
Understood the process of financial assets valuation and management's impairment assessment and evaluated the appropriateness of the application of the Luxembourg legal and regulatory requirements relating to the preparation and presentation of the financial statements.
Tested the arithmetical accuracy of the management's impairment test based on comparison with the net equity of the underlying investees and assessed the conclusions reached by the management in respect of recognized impairment and/or reversal of historical impairment.
Tested the accuracy and completeness of the provided loan database, on a representative sample basis, by tracing the loan terms to the underlying loan agreements, the repayments of principal and interest to the bank statements and the outstanding loan and accrued interest balances to the counterparties.
Performed recalculation of the interest on loans to affiliated undertaking based on known data.
Reviewed and ensured the completeness of the financial statements' disclosures.

Other information

The Board of Directors is responsible for the other information. The other information comprises the information included in the annual report and the corporate governance statement but does not include the financial statements and our report of "réviseur d'entreprises agréé" thereon.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report this fact. We have nothing to report in this regard.

Responsibilities of the Board of Directors and of those charged with governance for the financial statements

The Board of Directors is responsible for the preparation and fair presentation of the financial statements in accordance with Luxembourg legal and regulatory requirements relating to the preparation and presentation of the financial statements, and for such internal control as the Board of Directors determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

The Board of Directors is also responsible for presenting the financial statements in compliance with the requirements set out in the Delegated Regulation 2019/815 on European Single Electronic Format, as amended ("ESEF Regulation").

In preparing the financial statements, the Board of Directors is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Company's financial reporting process.

Responsibilities of the "réviseur d'entreprises agréé" for the audit of the financial statements

The objectives of our audit are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a report of the "réviseur d'entreprises agréé" that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with EU Regulation N° 537/2014, the Law of 23 July 2016 and with the ISAs as adopted for Luxembourg by the CSSF will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors.
Conclude on the appropriateness of Board of Directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our report of the "réviseur d'entreprises agréé" to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our report of the "réviseur d'entreprises agréé". However, future events or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Assess whether the financial statements have been prepared, in all material respects, in compliance with the requirements laid down in the ESEF Regulation.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our report unless law or regulation precludes public disclosure about the matter.

Report on other legal and regulatory requirements

The management report, which is the responsibility of the Board of Directors, is consistent with the financial statements and has been prepared in accordance with applicable legal requirements.

The corporate governance statement, included in the management report, is the responsibility of the Board of Directors. The information required by article 68ter paragraph (1) letters c) and d) of the law of 19 December 2002 on the commercial and companies register and on the accounting records and annual accounts of undertakings, as amended, is consistent with the financial statements and has been prepared in accordance with applicable legal requirements.

We have checked the compliance of the financial statements of the Company as at 31 December 2021 with relevant statutory requirements set out in the ESEF Regulation that are applicable to the financial statements. For the Company, it relates to:

Financial statements prepared in valid xHTML format;

In our opinion, the financial statements of the Company as at 31 December 2021, identified as CPIFIM_31_12_2021_AFR, have been prepared, in all material respects, in compliance with the requirements laid down in the ESEF Regulation.

We confirm that the audit opinion is consistent with the additional report to the audit committee or equivalent.

We confirm that the prohibited non-audit services referred to in EU Regulation No 537/2014 were not provided and that we remained independent of the Company in conducting the audit.

Ernst & Young Société anonyme Cabinet de révision agréé Jesus Orozco

Luxembourg, 31 March 2022

Email : [email protected]
Tel. : (+352) 247 88 494		eCDF entry date :
Annual Accounts Helpdesk :	RCSL Nr. : B44996	Matricule : 1993 2209 554
		UQAVVEP20220320T12080901_002	Page 1/5

BALANCE SHEET

Financial year from ⁰¹ 01/01/2021 to ⁰² 31/12/2021 (in ⁰³ EUR )

CPI FIM SA

40, rue de la Vallée L-2661 Luxembourg

ASSETS

A. Subscribed capital unpaid 1101 101 102 I. Subscribed capital not called 1103 103 104 II. Subscribed capital called but unpaid 1105 105 106 B. Formation expenses 1107 107 108




C. Fixed assets 5.844.914.843,00 1109 109 110	5.196.830.921,00
I. Intangible assets 1111 111 112
1. Costs of development 1113 113 114
2. Concessions, patents, licences, trade marks and similar rights and assets, if they were 1115 115 116
a) acquired for valuable consideration and need not be shown under C.I.3 1117 117 118
b) created by the undertaking itself 1119 119 120
3. Goodwill, to the extent that it was acquired for valuable consideration 1121 121 122
4. Payments on account and intangible assets under development 1123 123 124
II. Tangible assets 1125 125 126
1. Land and buildings 1127 127 128
2. Plant and machinery 1129 129 130

						UQAVVEP20220320T12080901_002		Page 2/5
				RCSL Nr. : B44996		Matricule : 1993 2209 554
				Reference(s)		Current year		Previous year
	3.	Other fixtures and fittings, tools and equipment	1131		131		132
	4.	Payments on account and
		tangible assets in the course of construction	1133		133		134
III.		Financial assets	1135	Note 3	135	5.844.914.843,00	136	5.196.830.921,00
	1.	Shares in affiliated undertakings	1137	Note 3.1	137	625.078.717,00	138	593.722.879,00
	2.	Loans to affiliated undertakings	1139	Note 3.2	139	5.068.186.992,00	140	4.518.796.421,00
	3.	Participating interests	1141	Note 3.3	141		142	672.226,00
	4.	Loans to undertakings with which the undertaking is linked by virtue of participating interests	1143	Note 3.4	143	9.548.841,00	144	12.605.423,00
	5.	Investments held as fixed
		assets	1145	Note 3.5	145	141.954.548,00	146	70.888.007,00
	6.	Other loans	1147	Note 3.6	147	145.745,00	148	145.965,00
		D. Current assets	1151		151	559.020.341,00	152	601.112.267,00
I.		Stocks	1153		153		154
	1.	Raw materials and consumables	1155		155		156
	2.	Work in progress	1157		157		158
	3.	Finished goods and goods for resale
	4.	Payments on account	1159		159		160
II.		Debtors	1161		161	352.504.301,00	162	395.367.255,00
	1.	Trade debtors	1163		163	216.826,00	164	220.070,00
		a) becoming due and payable	1165		165		166
		within one year	1167		167	216.826,00	168	220.070,00
		b) becoming due and payable after more than one year	1169		169		170
	2.	Amounts owed by affiliated undertakings	1171	Note 4	171	344.104.897,00	172	369.290.596,00
		a) becoming due and payable
		within one year b) becoming due and payable	1173	Note 4.1	173	332.227.660,00	174	330.746.072,00
		after more than one year	1175	Note 4.2	175	11.877.237,00	176	38.544.524,00
	3.	Amounts owed by undertakings with which the undertaking is linked by virtue of participating interests				150.399,00		139.347,00
			1177		177		178
		a) becoming due and payable within one year	1179	Note 4.3	179	150.399,00	180	139.347,00
		b) becoming due and payable after more than one year	1181		181		182
	4.	Other debtors	1183		183	8.032.179,00	184	25.717.242,00
		a) becoming due and payable within one year		Note 4.4		8.032.179,00		25.717.242,00
		b) becoming due and payable	1185		185		186
		after more than one year	1187		187		188

The notes in the annex form an integral part of the annual accounts

						UQAVVEP20220320T12080901_002		Page 3/5
				RCSL Nr. : B44996		Matricule : 1993 2209 554
				Reference(s)		Current year		Previous year
	III.	Investments	1189		189		190
		1. Shares in affiliated undertakings	1191		191		192
		2. Own shares	1209		209		210
		3. Other investments	1195		195		196
	IV.	Cash at bank and in hand	1197		197	206.516.040,00	198	205.745.012,00
E.		Prepayments	1199		199	57.974,00	200	55.322,00
		TOTAL (ASSETS)			201	6.403.993.158,00	202	5.797.998.510,00

CAPITAL, RESERVES AND LIABILITIES

			Reference(s)		Current year		Previous year
	A. Capital and reserves	1301	Note 5	301	694.916.729,00	302	497.453.637,00
	I. Subscribed capital	1303		303	13.145.076,00	304	13.145.076,00
	II. Share premium account	1305		305	784.669.809,00	306	784.669.809,00
	III. Revaluation reserve	1307		307		308
	IV. Reserves	1309		309	448.131.945,00	310	448.131.945,00
	1. Legal reserve	1311		311	448.131.945,00	312	448.131.945,00
	2. Reserve for own shares	1313		313		314
	3. Reserves provided for by the articles of association	1315		315		316
	4. Other reserves, including the
	fair value reserve	1429		429		430
	a) other available reserves	1431		431		432
	b) other non available reserves	1433		433		434
	V. Profit or loss brought forward	1319		319	-748.493.193,00	320	-749.233.251,00
	VI. Profit or loss for the financial year	1321		321	197.463.092,00	322	740.058,00
	VII. Interim dividends	1323		323		324
	VIII. Capital investment subsidies	1325		325		326
B.	Provisions	1331		331		332
	1. Provisions for pensions and
	similar obligations	1333		333		334
	2. Provisions for taxation	1335		335		336
	3. Other provisions	1337		337		338
C.	Creditors	1435		435	5.709.076.429,00	436	5.300.544.873,00
	1. Debenture loans	1437		437		438
	a) Convertible loans	1439		439		440
	i) becoming due and payable within one year	1441		441		442
	ii) becoming due and payable after more than one year	1443		443		444
	b) Non convertible loans	1445		445		446
	i) becoming due and payable within one year	1447		447		448
	ii) becoming due and payable after more than one year	1449		449		450
	2. Amounts owed to credit institutions	1355	Note 6	355	13.978,00	356	20.217,00
	a) becoming due and payable
	within one year	1357		357	13.978,00	358	20.217,00
	b) becoming due and payable
	after more than one year	1359		359		360

The notes in the annex form an integral part of the annual accounts

						UQAVVEP20220320T12080901_002		Page 5/5
				RCSL Nr. : B44996		Matricule : 1993 2209 554
				Reference(s)		Current year		Previous year
3.		Payments received on account of orders in so far as they are not shown separately as deductions from stocks	1361		361		362
	a)	becoming due and payable within one year	1363		363		364
	b)	becoming due and payable after more than one year	1365		365		366
4.		Trade creditors	1367		367	1.270.488,00	368	1.415.538,00
	a)	becoming due and payable within one year	1369		369	1.270.488,00	370	1.415.538,00
	b)	becoming due and payable after more than one year	1371		371		372
5.		Bills of exchange payable	1373		373		374
	a)	becoming due and payable within one year	1375		375		376
	b)	becoming due and payable after more than one year	1377		377		378
6.		Amounts owed to affiliated undertakings	1379	Note 7	379	5.703.682.368,00	380	5.294.816.445,00
	a)	becoming due and payable within one year	1381	Note 7.1	381	328.303.856,00	382	449.477.130,00
	b)	becoming due and payable after more than one year	1383	Note 7.2	383	5.375.378.512,00	384	4.845.339.315,00
7.	interests	Amounts owed to undertakings with which the undertaking is linked by virtue of participating
	a)	becoming due and payable	1385		385		386
		within one year			387		388
	b)	becoming due and payable after more than one year	1389		389		390
8.		Other creditors	1451	Note 8	451	4.109.595,00	452	4.292.673,00
	a)	Tax authorities	1393		393	7.815,00	394	142.742,00
	b)	Social security authorities	1395		395	14.966,00	396	31.709,00
	c)	Other creditors	1397		397	4.086.814,00	398	4.118.222,00
		i) becoming due and payable within one year	1399	Note 8.1	399	4.086.814,00	400	4.118.222,00
		ii) becoming due and payable after more than one year	1401		401		402

	D. Deferred income		1403		403		404
		TOTAL (CAPITAL, RESERVES AND LIABILITIES)			405	6.403.993.158,00	406	5.797.998.510,00

		UQAVVEP20220320T12080901_003	Page 1/2
Annual Accounts Helpdesk :	RCSL Nr. : B44996	Matricule : 1993 2209 554
Tel. : (+352) 247 88 494		eCDF entry date :

PROFIT AND LOSS ACCOUNT

Financial year from ⁰¹ 01/01/2021 to ⁰² 31/12/2021 (in ⁰³ EUR )

CPI FIM SA

Email : [email protected]

40, rue de la Vallée L-2661 Luxembourg

			Reference(s)		Current year		Previous year
1.	Net turnover			701		702
2.	Variation in stocks of finished goods and in work in progress			703		704
3.	Work performed by the undertaking for its own purposes and capitalised			705		706
4.	Other operating income	1713	Note 9	713	25.226.997,00	714	24.443.133,00
5.	Raw materials and consumables and other external expenses	1671		671	-10.775.754,00	672	-9.656.082,00
	a) Raw materials and consumables	1601		601	-13.498,00	602	-14.070,00
	b) Other external expenses	1603	Note 10	603	-10.762.256,00	604	-9.642.012,00
6.	Staff costs	1605	Note 11	605	-1.256.976,00	606	-1.020.048,00
	a) Wages and salaries	1607		607	-1.011.016,00	608	-855.976,00
	b) Social security costs	1609		609	-238.787,00	610	-157.009,00
	i) relating to pensions	1653		653		654
	ii) other social security costs	1655		655	-238.787,00	656	-157.009,00
	c) Other staff costs	1613		613	-7.173,00	614	-7.063,00
7.	Value adjustments	1657	Note 12	657	1.257.301,00	658	960.315,00
	a) in respect of formation expenses and of tangible and intangible fixed assets
	b) in respect of current assets	1659 1661		659 661	1.257.301,00	660 662	960.315,00
8.	Other operating expenses	1621	Note 13	621	-3.050.447,00	622	-3.690.045,00

			UQAVVEP20220320T12080901_003		Page 2/2
	RCSL Nr. : B44996		Matricule : 1993 2209 554
	Reference(s)		Current year		Previous year
9. Income from participating interests	Note 14 1715	715	11.462.335,00	716	13.093.111,00
a) derived from affiliated undertakings	1717	717	11.462.335,00	718	13.093.111,00
b) other income from participating interests	1719	719		720
10. Income from other investments and loans forming part of the fixed assets	Note 15 1721	721	299.408.375,00	722	183.784.565,00
a) derived from affiliated undertakings	Note 15.1 1723	723	224.237.202,00	724	182.963.236,00
b) other income not included under a)	Note 15.2 1725	725	75.171.173,00	726	821.329,00
11. Other interest receivable and similar
income	Note 16 1727	727	36.888.485,00	728	21.824.381,00
a) derived from affiliated undertakings	Note 16.1 1729	729	26.361.718,00	730	12.339.902,00
b) other interest and similar income	Note 16.2 1731	731	10.526.767,00	732	9.484.479,00
12. Share of profit or loss of undertakings accounted for under the equity method	1663	663		664
13. Value adjustments in respect of financial assets and of investments held as current assets	Note 17 1665	665	7.680.773,00	666	27.739.575,00
14. Interest payable and similar expenses	Note 18 1627	627	-169.360.662,00	628	-256.749.631,00
a) concerning affiliated undertakings	Note 18.1 1629	629	-164.437.800,00	630	-244.203.741,00
b) other interest and similar expenses	Note 18.2 1631	631	-4.922.862,00	632	-12.545.890,00
15. Tax on profit or loss	1635	635		636
16. Profit or loss after taxation	1667	667	197.480.427,00	668	729.274,00
17. Other taxes not shown under items 1 to 16	Note 19 1637	637	-17.335,00	638	10.784,00
18. Profit or loss for the financial year	1669	669	197.463.092,00	670	740.058,00

NOTE 1 - GENERAL INFORMATION

CPI FIM SA, Société Anonyme ("the Company" and "CPI FIM"), RCS number B 44.996, was incorporated under the Luxembourg Company Law on 9 September 1993 as a limited liability company (Société Anonyme) for an unlimited period of time.

The Company has for object the taking of participating interests, in whatsoever form in either Luxembourg or foreign countries, especially in real estate companies in the Czech Republic, Poland and other countries of Eastern Europe and the management, control and development of such participating interests. The Company, through its subsidiaries (together "the Group"), is principally involved in providing financing and management services, and the development of properties for its own portfolio or intended to be sold in the ordinary course of business.

The registered office of the Company is established at 40, rue de la Vallée, L-2661 Luxembourg.

As at 31 December 2021 the Company's shares were listed on the regulated markets of the Warsaw Stock Exchange and of the Luxembourg Stock Exchange.

The financial year is from 1 January 2021 to 31 December 2021.

As at 31 December 2021, the Company is directly controlled by CPI Property Group S.A. by 97.31 % (2020: 97.31 %), a Luxembourg entity of which Mr. Radovan Vítek is the ultimate beneficial owner with 89.44 % of voting rights (2020: 94.18 %). Other shares of CPI FIM SA grant 2.69% voting rights.

Total 1,314,507,629 shares grant 100.00% voting rights.

Board of Directors

As at 31 December 2021, the Board of Directors consists of the following directors: Mr. David Greenbaum Mr. Edward Hughes Mrs. Anita Dubost Mr. Scot Wardlaw

The consolidated financial statements and separate annual accounts of the Company can be obtained at its registered office, 40, rue de la Vallée, L-2661 Luxembourg and at the following website: www.cpifimsa.com.

NOTE 2 - ACCOUNTING PRINCIPLES, RULES AND METHODS

Basis of preparation and going concern

The annual accounts have been prepared in accordance with Luxembourg legal and regulatory requirements. Accounting policies and valuation rules are, besides the ones laid down by the law of 10 August 1915, as subsequently amended ("the Commercial Company Law"), determined and applied by the Board of Directors.

Significant accounting policies

Financial assets

Financial assets include shares in affiliated undertakings, loans to affiliated undertakings, participating interests, loans to undertakings with which the undertaking is linked by virtue of participating interests and investments held as fixed assets. Financial assets are valued individually at the lower of their acquisition price less permanent impairment or recoverable value. Amounts owed by affiliated undertakings, amounts owed by undertakings with which the Company is linked by virtue of participating interest and other loansshown under "Financial assets" are recorded at their nominal value. A value adjustment is recorded when the recovery value is partially or fully compromised on permanent basis.

The value adjustments are not continued if the reasons for which the value adjustments were made have ceased to apply.

Provided and received cash pool transactions

The Company classifies the provided and received cash pool transactions on behalf agreed cash-pool contracts, including interests, as other current receivables and other current liabilities, respectively.

Debtors

Debtors are valued at their nominal value. They are subject to value adjustments where their recovery is fully or partially compromised on permanent basis. These value adjustments are not continued if the reasons for which the value adjustments were made have ceased to apply.

Provisions

Provisions are intended to cover losses or debts the nature of which is clearly defined and which at the balance sheet date are either likely or certain to be incurred but uncertain as to their amount or as to the date on which they will arise.

Provisions may also be created in order to cover charges which have their origin in the financial year under review or in a previous financial year, the nature of which is clearly defined and which at the date of the balance sheet are either likely to be incurred or certain to be incurred but uncertain as to their amount or as to the date on which they will arise

Creditors

Creditors include amounts owed to affiliated undertakings and trade and other creditors. Creditors are valued at their nominal value.

Conversion of foreign currencies

The Company maintains its accounting records in Euro (EUR). All financial information presented in EUR has been rounded to the nearest thousands, except when otherwise indicated.

During the financial year, the acquisitions and sales of financial assets as well as income and charges in currencies other than EUR are converted into EUR at the exchange rate prevailing at the transaction dates.

At the balance sheet date, the acquisition price of the financial assets – shares in affiliated, participating interests and other investments expressed in currency other than the EUR remains converted at the historical exchange rate. All other assets and liabilities expressed in a currency other than EUR are valued at the closing rate or historical rate under the prudence concept. The unrealised and realised losses, as well as the realised gains are recorded in the profit and loss account.

Cross-currency swaps – hedge

Cross-currency swap interest is recorded at its nominal value. The interest is reported in balance sheet as other debtors, resp. other creditors. The interest is reported separately in profit and loss account. The Company records the fixed amounts on offbalance accounts. The same approach is used for fair value of a cross-currency swap.

Derivative instrument - investments

The Company records the fixed amounts on off-balance accounts. The fair value of a derivative instrument is reported as other receivable, resp. payable, and in profit and loss account as similar income to interest, resp. expense.

Net turnover

Net turnover includes income from invoicing of operating costs.

Value adjustments

Value adjustments are deducted directly from the related asset.

Other operating income

Other operating income includes income from invoicing of operating costs and providing management services.

NOTE 3 - FINANCIAL ASSETS

2021	Shares in affiliated undertakings	Loans to affiliated undertakings
Gross book value
Balance at 1 January 2021	675,361	4,574,215
Additions for the year	42,349	2,241,971
Disposals for the year	(31,915)	(1,673,923)
Balance at 31 December 2021	685,794	5,142,263

Accumulated value adjustments
Balance at 1 January 2021	(81,638)	(55,419)
Allocations for the year	(210)	(30,443)
Reversals for the year	21,133	11,786
Balance at 31 December 2021	(60,715)	(74,076)

Net book value as at 1 January 2021	593,723	4,518,796

Net book value as at 31 December 2021	625,079	5,068,187

3.1 - Shares in affiliated undertakings

The Company compares acquisition cost with Net Equity of undertaking and applies value adjustment, when the Net equity is lower than acquisition cost. The Company uses the Net Equity method for the valuation of non-tradable shares. Results of value adjustments are reported in Note 17.

Undertakings in which the Company holds participation in their share capital are detailed in the following table.

Name of the undertaking	Country	Ccy	% held	Cost	Cost change	Cost	Accumulated Impairment	Reversal of impairment / (Impairment)	Accumulated Impairment	Carrying Value	Carrying Value	Net equity (**)	Result of 2021
			31.12.2021	31.12.2020	in 2021	31.12.2021	31.12.2020	in 2021	31.12.2021	31.12.2020	31.12.2021
Bubenská 1, a.s.*	Czech Republic	CZK	0.00%	24,264	(24,264)	--	(5,563)	5,563	--	18,701	--	--	--
Bubny Development, s.r.o.	Czech Republic	CZK	20.00%	15,847	--	15,847	--	--	--	15,847	15,847	186,214	6,092
BYTY PODKOVA, a.s.	Czech Republic	CZK	100.00%	80	--	80	--	--	--	80	80	4,556	1,698
Camuzzi, a.s.	Czech Republic	CZK	100.00%	2,232	--	2,232	(596)	(210)	(806)	1,636	1,426	1,426	(292)
CD Property s.r.o.	Czech Republic	CZK	100.00%	4,794	593	5,387	--	--	--	4,794	5,387	11,614	1,847
CPI - Krásné Březno, a.s.	Czech Republic	CZK	100.00%	3,049	--	3,049	(498)	90	(408)	2,551	2,641	2,641	(51)
CPI - Land Development, a.s.	Czech Republic	CZK	100.00%	52,161	--	52,161	(2,434)	2,434	--	49,727	52,161	56,895	4,263
CPI Pigna S.r.l.	Italy	EUR	100.00%	10	511	521	(10)	10	--	--	521	5,974	10,896
CPI REV Italy II S.r.l.	Italy	EUR	100.00%	10	427	437	(10)	10	--	--	437	1,621	(250)
CPI South, s.r.o.	Czech Republic	CZK	90.00%	1,603	--	1,603	(47)	47	--	1,556	1,603	1,835	9
Development Doupovská, s.r.o.	Czech Republic	CZK	75.00%	3,046	--	3,046	(3,046)	128	(2,918)	--	128	170	355
Diana Property Sp. z o.o.	Poland	PLN	100.00%	777	--	777	--	--	--	777	777	1,930	105
Equator IV Offices sp. z o.o.	Poland	PLN	100.00%	15,279	15,140	30,419	--	--	--	15,279	30,419	33,116	2,258
Estate Grand, s.r.o.	Czech Republic	CZK	100.00%	8	--	8	--	--	--	8	8	6,965	2,735
Eurocentrum Offices sp. z o.o.	Poland	PLN	100.00%	107,218	25,629	132,848	--	--	--	107,218	132,848	151,636	11,471
Famiaco Limited	Cyprus	EUR	100.00%	1	--	1	(1)	--	(1)	--	--	--	--
HAGIBOR OFFICE BUILDING, a.s.*	Czech Republic	CZK	0.00%	6,852	(6,852)	--	(6,852)	6,852	--	--	--	--	(0)
Industrial Park Stříbro, s.r.o.	Czech Republic	CZK	100.00%	8	--	8	--	--	--	8	8	2,484	1,893
JIHOVÝCHODNÍ MĚSTO, a.s.	Czech Republic	CZK	100.00%	41,287	--	41,287	(32,951)	1,988	(30,963)	8,336	10,324	10,324	1,477
Karviná Property Development, a.s.*	Czech Republic	CZK	100.00%	750	(750)	--	(750)	750	--	--	--	--	--

Name of the undertaking	Country	Ccy	% held	Cost	Cost change	Cost	Accumulated Impairment	Reversal of impairment / (Impairment)	Accumulated Impairment	Carrying Value	Carrying Value	Net equity (**)	Result of 2021
			31.12.2021	31.12.2020	in 2021	31.12.2021	31.12.2020	in 2021	31.12.2021	31.12.2020	31.12.2021
Land Properties, a.s.	Czech Republic	CZK	100.00%	38,052	--	38,052	--	--	--	38,052	38,052	90,565	8,455
Marki Real Estate Sp. z o.o.	Poland	PLN	100.00%	22,282	--	22,282	(19,276)	130	(19,146)	3,006	3,136	3,136	155
MQM Czech, a.s.	Czech Republic	CZK	20.00%	3,237	--	3,237	(855)	855	--	2,381	3,237	21,755	8,904
NOVÁ ZBROJOVKA, s.r.o.	Czech Republic	CZK	100.00%	22,465	--	22,465	--	--	--	22,465	22,465	91,367	3,378
Nupaky a.s.	Czech Republic	CZK	100.00%	7,338	--	7,338	(3,280)	569	(2,712)	4,057	4,626	4,626	332
ORCO Blumentálska a.s.	Slovakia	EUR	100.00%	2,980	--	2,980	(2,980)	--	(2,980)	--	--	--	--
Orco Bucharest	Cyprus	EUR	100.00%	3	--	3	(3)	--	(3)	--	--	--	--
Orco Project Sp. z o.o.	Poland	PLN	100.00%	701	--	701	(701)	--	(701)	--	--	--	--
Pietroni, s.r.o.**	Czech Republic	CZK	100.00%	--	--	--	--	--	--	--	--	(3,847)	(1)
Polygon BC, a.s.	Czech Republic	CZK	20.00%	8,733	--	8,733	(1,638)	1,638	--	7,095	8,733	81,659	42,854
Rezidence Pragovka, s.r.o.	Czech Republic	CZK	100.00%	17,079	--	17,079	--	--	--	17,079	17,079	76,622	47,349
Strakonice Property Develoment, a.s.	Czech Republic	CZK	100.00%	221	--	221	(87)	15	(72)	134	149	149	7
STRM Alfa, a.s.	Czech Republic	CZK	20.00%	5,110	--	5,110	--	--	--	5,110	5,110	62,429	27,912
STRM Beta, a.s.	Czech Republic	CZK	100.00%	5,224	--	5,224	--	--	--	5,224	5,224	7,547	863
STRM Gama, a.s.	Czech Republic	CZK	100.00%	8,016	--	8,016	(31)	31	--	7,985	8,016	15,537	6,890
Svitavy Property Development, a.s.	Czech Republic	CZK	100.00%	1,062	--	1,062	(28)	24	(4)	1,034	1,058	3,605	(33)
Vysočany Office, a.s.	Czech Republic	CZK	20.00%	19	--	19	--	--	--	19	19	9,448	5,192
WFC Investments sp. z o.o.	Poland	PLN	100.00%	253,565	--	253,565	--	--	--	253,565	253,565	277,605	23,762
Rounding	--	--	--	(2)	(1)	(4)	(1)	(1)	(1)	(1)	(5)
Total				675,361	10,433	685,794	(81,638)	20,923	(60,715)	593,723	625,079

(*) Company disposed or liquidated during financial year

(**) Net equity calculation is based on unaudited Financial Statements in accordance with IFRS as adopted by EU

Name of the undertaking	Country	Ccy	% held	Cost	Cost change	Cost	Accumulated Impairment	Reversal of impairment / (Impairment)	Accumulated Impairment	Carrying Value	Carrying Value	Net equity (**)	Result of 2021
			31.12.2021	31.12.2020	in 2021	31.12.2021	31.12.2020	in 2021	31.12.2021	31.12.2020	31.12.2021

(***) The Company did not impaired Pietroni s.r.o., because the Net equity doesn't reflect value of 67,000,000 shares of CPI Property Group S.A., that Pietroni s.r.o. owned as at 31 December 2021

3.2 - Loans to affiliated undertakings

	2021	2020
Amount due	5,142,263	4,574,215
Value adjustments	(74,076)	(55,419)
Net value	5,068,187	4,518,796

The Company provides loans to affiliated undertakings with the interest rate range of 1.0%-13.18% p.a. (2020: 1.0%-13.18% p.a.) and maturity dates until December 2030. The Company provided non-interest bearing loan to ENDURANCE HOSPITALITY FINANCE S.à r.l., for which the maturity date is not specified, in the amount of EUR 8,043 thousand (2020: EUR 8,043 thousand).

Results of value adjustments are reported in Note 17 and Note 22.

3.3 - Participating interests

Name of the	% held	Cost	Cost change	Cost	Accumulated Impairment	Reversal of impairment / (Impairment)	Accumulated Impairment	Carrying Value	Carrying Value
undertaking	31.12.2021	31.12.2020	in 2021	31.12.2021	31.12.2020	in 2021	31.12.2021	31.12.2020	31.12.2021
Uniborc S.A.	35.00%	672	--	672	--	(672)	(672)	672	--
Total		672	--	672	--	(672)	(672)	672	--

The Net Equity of the undertaking is negative (EUR -3,944 thousand), therefore the Company applied value adjustment. Results of value adjustments are reported in Note 17 and Note 22.

3.4 - Loans to undertakings with which the undertaking is linked by virtue of participating interests

	2021	2020
Amount due	13,493	12,605
Value adjustments	(3,944)	--
Net value	9,549	12,605

As at 31 December 2021, the Company provided loans to Uniborc S.A. with an interest rate of 3M EURIBOR + 7% p.a. and maturity date in May 2023. Results of value adjustments are reported in Note 17 and Note 22.

3.5 - Investments held as fixed assets

Name	State	Ccy	% held	Cost	Cost change	Cost	Accumulated Impairment	Reversal of impairment (Impairment)	Accum. Impairment	Carrying Value	Carrying Value
			as at 31.12.21	31.12.2120	in 2121	31.12.21	31.12.20	in 2121	31.12.21	31.12.20	31.12.21
CPI PROPERTY GROUP S.A.	LUX	EUR	--	81,104	(81,104)	--	(10,221)	10,221	--	70,883	--
SCP AILEY*	MCO	EUR	0.10%	--	--	--	--	--	--	--	--
SCP CISKEY*	MCO	EUR	0.10%	1	--	1	(1)	--	(1)	--	--
SCP KANDLER*	MCO	EUR	0.10%	--	--	--	--	--	--	--	--
SCP MADRID*	MCO	EUR	0.10%	--	--	--	--	--	--	--	--
SCP NEW BLUE BIRD*	MCO	EUR	0.10%	--	--	--	--	--	--	--	--
SCP PIERRE CHARRON*	MCO	EUR	0.10%	--	--	--	--	--	--	--	--
SCP Reflets*	MCO	EUR	0.10%	--	--	--	--	--	--	--	--
SCP VILLA DE TAHITI*	MCO	EUR	0.10%	7	--	7	(2)	--	(2)	5	5
Total undertakings				81,112	(81,104)	8	(10,222)	10,221	(3)	70,888	5
IT000545313 Partly Paid Asset-Backed Variable Return Notes										--	141,950
Total										70,888	141,955

*The Company uses the Net Equity method for the valuation of non-tradable shares.

The Company participated in share buy-back of CPI Property Group S.A. in February 2021. The Company tendered all of its 252,302,248 shares at the price of EUR 0.616 per share. The impact of sale is reported in Note 15.2, 17 and Note 22.

Asset-Backed Variable Return Notes of CPI Italy 130 SPV S.r.l.

The Company subscribed notes of Partly Paid Asset Backed Variable Return Notes issued by investments vehicle CPI Italy 130 SPV S.r.l. in total amount of EUR 141,950 thousand in September 2021. Of the amount, EUR 27,715 thousand was paid by the Company until 31 December 2021. The notes are repayable on 30 September 2031.

Issuer Nominal amount		Currency	Initial instalment	Initial maturity date*	Base interest
CPI Italy 130 SPV S.r.l.	300,000,000	EUR	120,234,401	30 September 2031	1.000% p.a.

* Initial maturity date could be extended until 30 September 2036

3.6 - Other loans

As at 31 December 2021, the Company recognises deposit in the amount of EUR 146 thousand (2020: EUR 146 thousand).

NOTE 4 - CURRENT ASSETS

4.1 - Amounts owed by affiliated undertakings becoming due and payable within one year

The amounts owed by affiliated undertakings becoming due and payable within one year contain principals, accrued interest, other receivables and trade receivables on amounts owed by affiliated undertakings.

As the cash-pool leader, the Company recognised the provided cash pool principal and interest balance within "Other" items. As at 31 December 2021, the cash-pool provided principal is EUR 30,826 thousand (2020: EUR 35,946 thousand) with the interest of EUR 80 thousand (2020: EUR 47 thousand).

The Company concluded several Agreements on cooperation with entities within CPIPG Group to eliminate negative impact of the monetary policy of the European Central Bank, negative interest rate. The CPIPG Group's entity temporarily allows the Company to deposit funds on its bank account. These funds will be wired back upon request. As at 31 December 2021, the amount of funds transferred to CPIPG Groups entities recognised as "Other" is EUR 89,300 thousand (2020: EUR 189,104 thousand).

The Company concluded FX forward/swap contracts with several entities within CPIPG Group. The fair value of contracts is reported within "Other" item in the total amount of EUR 15,771 thousand.

				2021				2020
	Principal	Interest	Other	Total	Principal	Interest	Other	Total
Amount due	51	195,508	138,532	334,091	34,907	62,841	234,049	331,797
Value adjustments	(51)	(1,806)	(6)	(1,863)	--	(1,051)	--	(1,051)
Net value	--	(193,702 )	138,526	332,228	34,907	61,790	234,049	330,746

Provided loans bear interest of 1.6 % p.a. (2020: 5.0 % - 5.49 % p.a.).

4.2 - Amounts owed by affiliated undertakings becoming due and payable after more than one year

The amounts owed by affiliated undertakings becoming due and payable after more than one year contain accrued interest that is payable together with principal.

				2021				2020
	Principal	Interest	Other	Total	Principal	Interest	Other	Total
Amount due	--	11,877	--	11,877	--	38,584	--	38,584
Value adjustments	--	--	--	--	--	(39)	--	(39)
Net value	--	11,877	--	11,877	--	38,545	--	38,545

4.3 - Amounts owed by undertakings with which the undertaking is linked becoming due and payable within one year

The amounts owed by undertakings with which the undertaking is linked becoming due and payable within one year have been considered as follows:

				2021				2020
	Principal	Interest	Other	Total	Principal	Interest	Other	Total
Amount due	--	150	--	150	--	139	--	139
Value adjustments	--	--	--	--	--	--	--	--
Net value	--	150	--	150	--	139	--	139

4.4 - Other debtors becoming due and payable within one year

Interest includes interest receivable of EUR 6,150 thousand (2020: EUR 5,705 thousand) from Nomura International PLC against the swap entered by the company as mentioned in Note 8.1. The amounts owed by other debtors becoming due and payable within one year have been considered as follows:

					2021					2020
	Principal	Interest	Other	Tax	Total	Principal	Interest	Other	Tax	Total
				authorities					authorities
Amount due	2,005	6,097	827	111	9,40	22,112	5,833	820	--	28,765
Value adjustments	(190)	--	(818)	--	(1008)	(2,112)	(125)	(811)	--	(3048)
Net value	1,815	6,097	9	111	8,032	20,000	5,708	9	--	25,717

NOTE 5 - CAPITAL AND RESERVES

Subscribed capital and share premium account

As at 31 December 2021 and 2020, the subscribed capital of the Company of EUR 13,145,076.29 is represented by 1,314,507,629 ordinary shares. The shares of the Company have a par value of EUR 0.01 per share and are fully paid. Each share is entitled to a prorate portion of the profits and share capital of the Company, as well as to a voting right and representation at the time of a general meeting, all in accordance with statutory and legal provisions.

Legal reserve

In accordance with the Commercial Company Law, the Company must appropriate to the legal reserve a minimum of 5% of the annual net profit until such reserve equals 10% of the subscribed capital. Distribution in form of dividends of the legal reserve is prohibited.

Movements in capital and reserves

	Subscribed capital	Share premium account	Legal reserve	Profit / loss brought forward	Profit / loss for the financial year	TOTAL
As at 31 December 2020	13,145	784,670	448,132	(749,233)	740	497,45 4
AGM on 28 May 2021 – allocation of 2020 result	-	-	-	740	(740)	--
Profit for the financial year	-	-	-	-	197,463	197,463
As at 31 December 2021	13,145	784,670	448,132	(748,493)	197,463	694,91 7

NOTE 6 - AMOUNTS OWED TO CREDIT INSTITUTIONS

The Company concluded three credit facility agreements in the total credit frame of EUR 7,000 thousand (2020: EUR 20,000 thousand) to grant funds for financing cash requirements of the CPIPG Group, with Société Générale Luxembourg, Komerční banka, a.s. and Komerční banka, a.s., pobočka zahraničnej banky. As at 31 December 2021, unpaid arrangement and commitment fees are in the total amount of EUR 14 thousand (2020: EUR 20 thousand).

NOTE 7 - AMOUNTS OWED TO AFFILIATED UNDERTAKINGS

7.1 - Amounts owed to affiliated undertakings, becoming due and payable within one year

The Company, as a cash-pool leader, recognised cash-pool open balance as at 31 December 2021 as the other amounts owed to affiliated undertakings. The following amounts owed to affiliated undertakings are considered:

	2021	2020
Principal	170,823	289,773
Interest	101,590	95,892
Other	55,891	63,812
Cash-pool principal	32,539	28,017
Cash-pool interest	58	32
Trade	1,268	1,444
Other	22,026	35,763
Total	328,304	449,477

7.2 - Amounts owed to affiliated undertakings, becoming due and payable after more than one year

	2021	2020
Principal	5,375,377	4,844,938
Other	2	401
Total	5,375,379	4,845,339

The Company received loans with interest rate range of 0.00 % - 5.47 % p.a. (2020: 1.3 % - 5.47 %p.a.) and maturity dates up to 27 January 2031.

NOTE 8 - OTHER CREDITORS

8.1 - Other creditors becoming due and payable within one year

The Company received a loan from CPI PG in the amount of GBP 196,600,000 and consequently concluded Cross-currency interest rate swap with Nomura International plc. As at 31 December 2021, the related interest amounts to EUR 4,073 thousand (2020: EUR 4,056 thousand).

	2021	2020
Interest	4,073	4,105
Other	14	13
Total	4,087	4,118

NOTE 9 - OTHER OPERATING INCOME

Other operating income includes mainly administrative service fees provided across the Group. The Company also received reimbursement of flights rendered to Mr. Radovan Vítek through the flight service agreement entered in 2018 (see Note 23).

	2021	2020
Administrative services	22,674	21,732
Flight services	2,389	2,526
Others	185	185
Total	25,227	24,443

NOTE 10 - OTHER EXTERNAL EXPENSES

	2021	2020
Rental, maintenance and repairs	251	287
Financial services	158	16
Bank fees	131	81
Professional fees - management fee	5,692	8,133
Professional fees:	4,093	653
legal fee	1,229	349
audit fee	129	117
advisory fee	156	11
other fee	2,579	176
Insurance fee	368	418
Advertising, publications, public relations	16	16
Travelling costs	28	15
Other various fees	25	23
Total	10,762	9,642

NOTE 11 - STAFF COSTS

The Company had 13 employees in 2021 (2020: 13).

Total	1,257	1,020
Social security costs	239	157
Wages and salaries	1,018	863
	2021	2020

NOTE 12 - VALUE ADJUSTMENTS IN RESPECT OF CURRENT ASSETS

	2021	2020
Affiliated undertakings	(791)	946
Other	2,048	14
Total	1,257	960

NOTE 13 - OTHER OPERATING EXPENSES

	2021	2020
Flight services	2,390	2,527
Directors fee	61	61
Other	599	1,102
Total	3,050	3,690

NOTE 14 - INCOME FROM PARTICIPATING INTERESTS DERIVED FROM AFFILIATED UNDERTAKINGS

Income from participating interests derived from affiliated undertakings is as follows:

	2021	2020
Dividend	11,458	12,945
Gain from disposal of undertakings/disposed undertakings	4	148
Total	11,462	13,093

NOTE 15 - INCOME FROM OTHER INVESTMENTS AND LOANS FORMING PART OF THE FIXED ASSETS

15.1 - Derived from affiliated undertakings

The loans forming part of the fixed assets generated interest income of EUR 224,237 thousand in the year 2021 (2020: EUR 182,963 thousand).

15.2 - Other income not from affiliated undertakings

The loans forming part of the fixed assets provided to interest participating and other parties generated interest income of EUR 857 thousand (2020: EUR 821 thousand).

The Company sold the shares of CPI Property Group back to CPI Property Group realizing a gain of EUR 74,314 thousand.

NOTE 16 - OTHER INTEREST RECEIVABLE AND SIMILAR INCOME

16.1 - Derived from affiliated undertakings

	2021	2020
Interest	498	2,848
Foreign currency exchange gains	8,430	9,492
Fair value of FX forward contract	17,434	--
Total	26,362	12,340

16.2 - Other interest and similar income

	2021	2020
Interest	8,233	5,882
Foreign currency exchange gains	2,275	3,545
Other	19	57
Total	10,527	9,484

NOTE 17 - VALUE ADJUSTMENTS IN RESPECT OF FINANCIAL ASSETS AND OF INVESTMENTS HELD AS CURRENT ASSETS

Value adjustments of financial assets are as follows:

	2021	2020
Shares	30,471	5,282
Bubenská 1, a.s.	5,563	6,977
Camuzzi, a.s.	(210)	(224)
CEREM	--	31
CPI - Krásné Březno, a.s.	90	466
CPI - Land Development, a.s.	2,434	(1,506)
CPI Pigna S.r.l.	10	(10)
CPI REV Italy II S.r.l.	10	(10)
CPI South, s.r.o.	47	(47)
CPI Property Group S.A.	10,221	--
Development Doupovská, s.r.o.	128	--
HAGIBOR OFFICE BUILDING, a.s., V LIKVIDACI (liquidated)	6,852	--
JIHOVÝCHODNÍ MĚSTO, a.s.	1,988	86
Karviná Property Development, a.s.	750	(680)
Marki Real Estate sp. z o.o. w likwidacji	130	233
MQM Czech, a.s.	855	(72)
Nupaky a.s.	569	(62)
Polygon BC, a.s.	1,638	(637)
Strakonice Property Development, a.s.	15	(8)
STRM Gama, a.s.	31	373
Svitavy Property Development, a.s.	24	14
SCP VILLA DE TAHITI	--	(3)
Szczecin Project sp. z o.o. w likwidacji	--	338
UNIBORC S.A.	(672)	--
Other	(2)	--
Other transferable securities	--	1,486
Loans	(22,790)	20,972
Affiliated undertakings	(18,846)	20,965
Other	(3,944)	7
Total	7,681	27,740

The positive value is decrease of value adjustments, the negative value is increase of value adjustments.

NOTE 18 - INTEREST PAYABLE AND SIMILAR EXPENSES

18.1 - Concerning affiliated undertakings

	2021	2020
Interest	163,576	143,175
Foreign currency exchange losses*	(20,274)	50,501
Loss on disposal of shares in affiliated	14,678	50,338
Loss on disposal amounts owed by affiliated due to liquidation	6,408	--
Other	50	190
Total	164,438	244,204

*Reversal of FX non-realised losses from previous year exceeded creation of new FX non-realised losses.

18.2 - Other interest and similar expenses

	2021	2020
Interest	4,352	4,056
Foreign currency exchange losses	401	3,587
Loss on disposal of other transferable securities	--	1,487
Loss on SPOT transactions	85	3,154
Other	85	262
Total	4,923	12,546

NOTE 19 - TAX ON PROFIT OR LOSS

The Company is subject to Luxembourg income tax and Net wealth tax.

	2021	2020
Corporate income tax	--	--
Net wealth tax	17	(11)
Total	17	(11)

NOTE 20 - OFF BALANCE SHEET COMMITMENTS

In relation to the strategy of developing its financing activity, the Company signed several credit facility agreements.

The Company has provided credit facility to following entities:

Type of entity	Drawdown Limit	2021	Drawdown Limit	2020
Affiliated undertakings	2,759,940,000	CZK	5,336,574,000	CZK
	200,500,000	EUR	240,500,000	EUR
Affiliated undertakings – entities in CPI Group	53,531,860,348	CZK	53,013,920,000	CZK
	3,407,500,000	EUR	2,982,600,000	EUR
	187,350,000	GBP	184,550,000	GBP
	137,186,421,600	HUF	139,346,061,600	HUF
	--	PLN	500,000,000	PLN
	150,000,000	RON	150,000,000	RON
Others (participating interests, related)	310,337,511	EUR	22,000,000	EUR

The Company has been provided credit facility agreements from following entities:

Type of entity	Drawdown Limit	2021	Drawdown Limit	2020
Affiliated undertakings	150,000,000	CZK	140,000,00	CZK
	20,000,000	EUR	20,000,000	EUR
	86,000,000	PLN	86,000,000	PLN
Affiliated undertakings – entities in CPI Group	4,426,800,000	CZK	2,244,340,000	CZK
	6,047,830,335	EUR	6,327,800,000	EUR
	196,600,000	GBP	196,600,000	GBP
	75,000,000	CHF	75,000,000	CHF
Affiliated undertakings – related party	--	CZK	5,000,000	CZK

NOTE 21 - REMUNERATION OF THE MEMBERS OF THE BOARD OF DIRECTORS

The Board attendance compensation for the year 2021 amounts to EUR 61,000 (2020: EUR 61,000). The Annual General Meeting held on 28 May 2014 resolved to approve, with the effect as of 1 January 2014, the payment of attendance fees to all independent, non-executive Directors of the Company in the amount of EUR 3,000 per calendar month as a base fee and empowered the Board of Directors to decide at its sole discretion about the payment of additional fees up to EUR 3,000 per calendar month to independent, non-executive Directors of the Company.

NOTE 22 - RELATED PARTY TRANSACTIONS

The Company considers entities reported as affiliated undertakings:

entity, that are owned by the Company (directly or indirectly),
related party owned directly or indirectly by CPI Property Group S.A.,
Mr. Radovan Vítek and related party owned by Mr. Radovan Vítek, the ultimate beneficial owner of the Company.

Entity owned by the Company (directly or indirectly) in 2021

Beta Development, s.r.o. Brno Property Invest XV., s.r.o. Bubenská 1, a.s. Bubny Development, s.r.o. BYTY PODKOVA, a.s. Camuzzi, a.s. Castor Investments sp. z o.o. Castor Invesmtenss sp. z o.o. CD Property s.r.o. CPI - Krásné Březno, a.s. CPI - Land Development, a.s. CPI ACAYA S.r.l. CPI Park Žďárek, a.s. CPI Pigna S.r.l. CPI REV Italy II S.r.l. CPI South, s.r.o. Data Trade s.r.o. Darilia, a.s.

Development Doupovská, s.r.o. Diana Property Sp. z o.o. Equator IV Offices sp. z o.o. Estate Grand, s.r.o. Eurocentrum Offices sp. z o.o. FAMIACO ENTERPRISES COMPANY LIMITED HAGIBOR OFFICE BUILDING, a.s. Industrial Park Stříbro, s.r.o. JIHOVÝCHODNÍ MĚSTO, a.s. Karviná Property Development, a.s. Land Properties, a.s. Les mas du Figuier Marki Real Estate sp. z o.o. w likwidacji MQM Czech, a.s. NOVÁ ZBROJOVKA, s.r.o.

Nupaky a.s. ORCO Blumentálska a.s. ORCO PROJECT sp. z o.o. Pietroni, s.r.o. Polygon BC, a.s. Rezidence Pragovka, s.r.o. SCP Reflets Strakonice Property Development, a.s. STRM Alfa, a.s. STRM Beta, a.s. STRM Gama, a.s. Svitavy Property Development, a.s. Uniborc S.A. Vysočany Office, a.s. WFC Investments sp. z o.o.

Related party owned directly or indirectly by CPI Property Group S.A., with them the Company recognised transactions in 2021 and 2020

1 Bishops Avenue Limited Agrome s.r.o. AIRPORT CITY INGATLANBEFEKTETÉSI Kft. Airport City Phase B Kft. ALIZÉ PROPERTY a.s. Andrassy Hotel Zrt. Andrássy Real Kft. Angusland s.r.o. Arena Corner Kft. Balvinder, a.s. Baron Puglia S.r.l. Baudry Beta, a.s. BAYTON Alfa, a.s. BAYTON Gama, a.s. BC 91 Real Estate Ingatlanbefektetési Kft. BC 99 Office Park Kft. Beroun Property Development, a.s. Best Properties South, a.s. Biochov s.r.o. Biopotraviny s.r.o. BPT Development, a.s. Brandýs Logistic, a.s. Brno Development Services, s.r.o. BRNO INN, a.s. Brno Property Development, a.s. Březiněves, a.s. Bubenská 1, a.s. merged with CPI Office Business Center, s.r.o. Buy-Way Dunakeszi Kft. Buy-Way Soroksár Kft. Byty Lehovec, s.r.o. CAMPONA Shopping Center Kft. Carpenter Invest, a.s.

CB Property Development, a.s. Central Tower 81 sp. z o.o. City Gardens Sp. z o.o. 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 BYTY, a.s. CPI Delta, a.s. CPI East,s.r.o. CPI Energo, a.s. CPI Facility Slovakia, a.s. CPI Finance CEE, a.s. CPI Flats, a.s. CPI Green, a.s. CPI Hotels Europeum Kft. CPI Hotels Poland sp. z o.o. CPI Hotels Properties, a.s. CPI Hotels, a.s. CPI Hungary Investments Kft. CPI Hungary Kft. CPI IMMO CPI Jihlava Shopping, a.s. CPI Kappa, s.r.o. CPI Kvarta, s.r.o. CPI Kvinta, s.r.o. CPI Management, s.r.o. CPI Národní, s.r.o. CPI Office Business Center, s.r.o. (formerly CPI Meteor Centre, s.r.o.) CPI Office Prague, s.r.o.

CPI Omikrón, a.s. CPI Palmovka Office, s.r.o. merged with CPI Office Business Center, s.r.o. CPI Poland Sp. z o.o. CPI Property a Facility, s.r.o. (merged with CPI Services, a.s.) CPI Property Group S.A. CPI Reality, a.s. CPI Retail MB s.r.o. (merged with Nymburk Property Development, a.s.) CPI Retail One Kft. CPI RETAIL PORTFOLIO HOLDING Kft. CPI Retail Portfolio I, a.s. CPI Retail Portfolio II, a.s. CPI Retail Portfolio IV, s.r.o. CPI Retail Portfolio V, s.r.o. CPI Retail Portfolio VI, s.r.o. CPI Retail Portfolio VIII s.r.o. CPI Retails ONE, a.s. CPI Retails Rosa s.r.o. CPI Retails THREE, a.s. CPI Retails TWO, a.s. CPI Sekunda, s.r.o. CPI Services, a.s. CPI Shopping MB, a.s. CPI Shopping Teplice, a.s. CPI Tercie, s.r.o. CPI Théta, a.s. CPI Vestec, s.r.o. CPIPG Management S.à r.l. Czech Property Investments, a.s.

Čadca Property Development, s.r.o. Čáslav Investments, a.s. Českolipská farma s.r.o. Českolipská zemědělská a.s. Děčínská zemědělská a.s. Diana Development sp. z o.o. Duca Puglia S.r.l. EMH South, s.r.o. ENDURANCE HOSPITALITY ASSET S.à r.l. ENDURANCE HOSPITALITY FINANCE S.à r.l. Europeum Kft. Farhan, a.s. Farma Ploučnice a.s. Farma Svitavka s.r.o. Farmy Frýdlant a.s. FELICIA SHOPPING CENTER SRL FL Property Development, a.s. Futurum HK Shopping, s.r.o. Gateway Office Park Kft. GCA Property Development sp. z o.o. Gewerbesiedlungs-Gessellschaft mbH GSG Asset GmbH & Co. Verwaltungs KG GSG Europa Beteiligungs GmbH GSG Gewerbehöfe Berlin 1. GmbH & Co. KG GSG Gewerbehöfe Berlin 2. GmbH & Co. KG GSG Gewerbehöfe Berlin 3. GmbH & Co. KG GSG Gewerbehöfe Berlin 4. GmbH & Co. KG GSG Gewerbehöfe Berlin 5. GmbH & Co. KG HD Investment s.r.o. Hightech Park Kft. Hospitality invest S.à r.l. HOTEL U PARKU, s.r.o. Hraničář, a.s. IGY2 CB, a.s. IS Nyír Kft. IS Zala Kft. JAGRA spol. s r.o. Janáčkovo nábřeží 15, s.r.o.

Jeseník Investments, a.s. Jetřichovice Property, a.s. Kerina, a.s. KOENIG Shopping, s.r.o. Komárno Property Development, a.s. Kosmonosy Investments, s.r.o. Kosmonosy Property Development, s.r.o. (merged with Nymburk Property Development, a.s.) Kravařská zemědělská, a.s. (merged with Statek Kravaře, a.s.) Kunratická farma, s.r.o. LD Praha, a.s. Levice Property Development, a.s. Lockhart, a.s. Lucemburská 46, a.s. Marissa Gama, a.s. Marissa Omikrón, a.s. Marissa Tau, a.s. Marissa Théta, a.s. Marissa West, a.s. Marissa Yellow, a.s. Marissa Ypsilon, a.s. MARRETIM s.r.o. MB Property Development, a.s. (merged with Nymburk Property Development, a.s.) Mercuda, a.s. Michalovce Property Development, a.s. MMR RUSSIA S.à r.l. MUXUM, a.s. Na Poříčí, a.s. New Age Kft. Nymburk Property Development, a.s. OC Nová Zdaboř a.s. OC Spektrum, s.r.o. OFFICE CENTER HRADČANSKÁ, a.s. merged with CPI Office Business Center, s.r.o. Olomouc Building, a.s. Orchard Hotel a.s. Outlet Arena Moravia, s.r.o. Ozrics Kft. Pelhřimov Property Development, a.s.

Platnéřská 10 s.r.o. POLMA 1 S.A. (merged with CPIPG Management S.à r.l) Pólus Shopping Center Zrt. Považská Bystrica Property Development, a.s. Prievidza Property Development, a.s. PROJECT FIRST a.s. Projekt Nisa, s.r.o. Projekt Zlatý Anděl, s.r.o. Prostějov Investments, a.s. Příbor Property Development, s. r.o. PV - Cvikov s.r.o. Real Estate Energy Kft. Residence Belgická, s.r.o. Residence Izabella Zrt. Rezidence Jančova, s.r.o. Rezidence Malkovského, s.r.o. Savile Row 1 Limited Spojené farmy a.s. ST Project Limited Statek Kravaře, a.s. Statenice Property Development, a.s. Svitavy Property Alfa, a.s. Tachov Investments, s.r.o. Telč Property Development, a.s. Tepelné hospodářství Litvínov s.r.o. Trebišov Property Development, s. r. o. Třinec Investments, s.r.o. Třinec Property Development, a.s. Tyršova 6, a.s. U svatého Michala, a.s. Uchaux Limited V Team Prague, s.r.o. Verneřický Angus a.s. Vigano, a.s. Zakiono Enterprises Limited Zelená farma s.r.o. Zelená louka s.r.o. ZEMSPOL s.r.o. ZET.office, a.s. Ždírec Property Development, a.s.

Related party owned by Mr. Radovan Vítek reported as affiliated undertakings

Aspermont S. à r.l. (formerly Endurance Residential Asset S.à.r.l.)
Boville S. à r.l. (formerly Endurance Residential Finance S.à.r.l.)
GAMALA LIMITED
Ravento S.à r.l.
Efimacor S.à r.l.

Disputes related to warrants issued by the Company

NOTE 25 - POST BALANCE SHEET EVENTS

Cash-pool credit facility agreement

The Company concluded new credit facility agreements to grant funds for financing cash requirements of the CPIPG Group with Societe Generale S.A. Oddział w Polsce in the total amount of EUR 1,000 thousand and PLN 36,000 thousand in January 2022.

Sanctions against certain Russian entities

In February 2022, EU and other countries imposed sanctions against certain entities and individuals in Russia as a reaction of military operations initiated by Russia against the Ukraine. Due to the growing geopolitical tensions, there has been a significant increase in volatility on the securities and currency markets. It is expected that these events may affect the activities of Russian enterprises in various sectors of the economy. The Company regards these events as non-adjusting events after the reporting period.

				2021				2020
Receivables Financial fixed asssets	Financial fixed assets	Current assets within one year	Current assets after more	Total	Financial fixed assets	Current assets within one year	Current assets after more	Total
			than				than
			one				one
			year				year
	3.2	4.1				4.1
Note	3.4	4.3	4.2	--	3.2 3.4	4.3	4.2	--
	3.5	4.4				4.4
Owned by the Company
(directly, indirectly) -	223,764	11,471	--	235,235	331,564	48,858	8,199	388,621
affiliated
Brno Property Invest XV.,	103	1	--	104	--	--	--	--
s.r.o.
Bubenská 1, a.s. merged with
CPI Office Business Center,	--	--	--	--	44,031	3,978	--	48,009
s.r.o.
Bubny Development, s.r.o.	29,178	3,526	--	32,704	27,990	81	1,766	29,837
BYTY PODKOVA, a.s.	--	--	--	--	--	3,600	--	3,600
Camuzzi, a.s.	1,201	20	--	1,221	1,098	3,614	--	4,712
CD Property s.r.o.	11,705	1,489	--	13,194	10,870	242	166	11,278
CPI - Krásné Březno, a.s.	593	53	--	646	552	3,600	33	4,185
CPI - Land Development, a.s.	7,059	1,135	--	8,194	6,119	31	174	6,324
CPI Park Žďárek, a.s.	3,021	357	--	3,378	2,919	3,600	177	6,696
CPI Pigna S.r.l.**	8,048	290	--	8,338	6,915	91	--	7,006
CPI REV Italy II S.r.l.**	2,839	172	--	3,011	4,670	89	--	4,759
CPI South, s.r.o.	278	26	--	304	184	35	12	231
Darilia, a.s.	--	--	--	--	--	3,600	--	3,600
Data Trade s.r.o.	--	--	--	--	400	25	--	425
Diana Property Sp. z o.o.	2,571	36	--	2,607	2,720	--	38	2,758
Equator IV Offices sp. z o.o.	26,346	578	--	26,924	41,571	--	1,162	42,733
Estate Grand, s.r.o.	585	9	--	594	528	3,614	--	4,142
Eurocentrum Offices sp. z o.o.	97,997	1,240	--	99,237	126,833	--	2,386	129,219
Industrial Park Stříbro, s.r.o.	--	301	--	301	--	1,043	--	1,043
JIHOVÝCHODNÍ MĚSTO, a.s.	394	32	--	426	236	4	4	244
Karviná Property
Development, a.s. v likvidaci***	--	--	--	--	--	3,600	--	3,600
Land Properties, a.s.	--	3	--	3	--	9	--	9
Les Mas du Figuier**	7,591	44	--	7,635	4,770	39	--	4,809
MQM Czech, a.s.	459	72	--	531	423	6	6	435
NOVÁ ZBROJOVKA, s.r.o.	9,353	1,648	--	11,001	36,875	3,143	2,192	42,210
Nupaky a.s.	290	25	--	315	284	3,600	8	3,892
Pietroni, s.r.o.	--	--	--	--	--	3,600	--	3,600
Polygon BC, a.s.	2,184	162	--	2,346	2,077	51	31	2,159
Rezidence Pragovka, s.r.o.	1,186	71	--	1,257	452	10	7	469
SCP Reflets**	8,529	55	--	8,584	8,159	54	--	8,213

				2021				2020
Receivables	Financial	Current	Current	Total	Financial	Current	Current	Total
Financial fixed asssets	fixed	assets	assets		fixed	assets	assets
	assets	within	after		assets	within	after
		one year	more			one year	more
			than				than
			one year				one year

Note	3.2 3.4	4.1 4.3	4.2	--	3.2	4.1 4.3	4.2	--
	3.5	4.4			3.4	4.4
Strakonice Property
Development, a.s.	52	6	--	58	50	3,600	3	3,653
STRM Alfa, a.s.	120	--	--	120	--	3,600	--	3,600
STRM Beta , a.s.	595	63	--	658	589	--	27	616
STRM Gama, a.s.	418	26	--	444	249	--	7	256
Svitavy Property	900	20	--	920	--	294	--	294
Development, a.s.
Vysočany Office, a.s.	169	11	--	180	--	5	--	5
Owned by the Company
(directly, indirectly) - interest	9,549	150	--	9,699	12,605	139	--	12,744
participated
Uniborc S.A.*	9,549	150	--	9,699	12,605	139	--	12,744
CPI Group's entity	4,844,421	320,076	11,878	5,17,375	4,187,235	245,939	30,349	4,463,523
1 Bishops Avenue Limited	129,798	--	8,923	138,721	122,933	--	3,609	126,542
Agrome s.r.o. AIRPORT CITY	--	124	--	124	--	--	--	--
INGATLANBEFEKTETÉSI Kft.	14,743	215	--	14,958	15,194	--	233	15,427
Airport City Phase B Kft.	1,914	25	--	1,939	1,704	--	25	1,729
ALIZÉ PROPERTY a.s.	82	1	--	83	--	--	--	--
Andrassy Hotel Zrt.	3,882	158	--	4,040	4,439	--	179	4,618
Andrássy Real Kft.	11,982	229	--	12,211	10,424	--	198	10,622
Angusland s.r.o.	--	49	--	49	--	--	--	--
Arena Corner Kft.	35,302	622	--	35,924	34,397	--	616	35,013
Balvinder, a.s.*	3,536	587	--	4,123	4,427	286	--	4,713
Baron Puglia S.r.l.***	--	--	--	--	14,680	549	--	15,229
Baudry Beta, a.s.	10,059	1,324	--	11,383	9,959	232	401	10,592
BAYTON Alfa, a.s.	11,623	900	--	12,523	11,648	673	--	12,321
BAYTON Gama, a.s.	--	--	--	--	--	3,802	--	3,802
BC 91 Real Estate
Ingatlanbefektetési Kft.	--	--	--	--	1,174	--	21	1,195
BC 99 Office Park Kft.	33,974	560	--	34,534	33,836	--	536	34,372
Beroun Property	9,487	808	--	10,295	8,340	204	442	8,986
Development, a.s.
Best Properties South, a.s.	64,675	6,242	--	70,917	55,209	1,260	864	57,333
Biochov s.r.o.	--	85	--	85	--	--	--	--
Biopotraviny s.r.o.	--	87	--	87	--	--	--	--
BPT Development, a.s.	--	--	--	--	--	3,802	--	3,802
Brandýs Logistic, a.s. Brno Development Services,	24,362	6,308	--	30,670	22,507	703	1,078	24,288
s.r.o.	1,385	614	--	1,999	254	51	--	305
BRNO INN, a.s.	--	81	--	81	--	90	--	90
Březiněves, a.s.	1,898	376	--	2,274	5,109	--	89	5,198
Buy-Way Dunakeszi Kft.	4,671	85	--	4,756	5,603	--	104	5,707
Buy-Way Soroksár Kft.	3,365	67	--	3,432	3,656	--	74	3,730
Byty Lehovec, s.r.o.	--	--	--	--	--	3,600	--	3,600
CAMPONA Shopping Center
Kft.**	62,842	5,560	--	68,402	60,667	5,645	--	66,312
Carpenter Invest, a.s.	2,220	208	--	2,428	2,050	37	--	2,087
CB Property Development,	2,366	2,299	--	4,665	921	19	--	940
a.s.
Conradian, a.s.	4,499	241	--	4,740	5,372	197	--	5,569
CPI - Bor, a.s.	12,207	1,725	--	13,932	10,352	13	303	10,668
CPI - Horoměřice, a.s.	43	--	--	43	--	3,600	--	3,600
CPI - Orlová, a.s.	1,127	163	--	1,290	1,104	3,600	83	4,787
CPI - Real Estate, a.s.	2,313	473	--	2,786	2,097	203	--	2,300

				2021				2020
Payables	Owed to affilitated payable within one year	Owed to affilitated payable after more	Other creditors payable within one year	Total	Owed to affilitated payable within one year	Owed to affilitated payable after more	Other creditors payable within one year	Total
		than one				than one
		year				year
Note	7.1	7.2	8.1	--	7.1	7.2	8.1	--
Owned by the Company (directly, indirectly) - affiliated	12,029	--	--	12,029	8,940	--	--	8,940
BYTY PODKOVA, a.s.	1,676	--	--	1,676	2,171	--	--	2,171
CD Property s.r.o.	508	--	--	508	110	--	--	110
CPI South, s.r.o.	27	--	--	27	--	--	--	--
Darilia, a.s.	13	--	--	13	19	--	--	19
Development Doupovská, s.r.o.	63	--	--	63	63	--	--	63
Industrial Park Stříbro, s.r.o.	2,906	--	--	2,906	148	--	--	148
JIHOVÝCHODNÍ MĚSTO, a.s.	--	--	--	--	1	--	--	1
Land Properties, a.s.	533	--	--	533	173	--	--	173
Marki Real Estate sp. z o.o. w likwidacji	3,913	--	--	3,913	3,724	--	--	3,724
NOVÁ ZBROJOVKA, s.r.o.	30	--	--	30	--	--	--	--
STRM Alfa, a.s.	--	--	--	--	149	--	--	149
Svitavy Property Development, a.s.	--	--	--	--	1,254	--	--	1,254
WFC Investments sp. z o.o.	2,360	--	--	2,360	1,128	--	--	1,128
CPI Group's entity	316,274	5,375,378	--	5,691,652	440,461	4,845,339	--	5,285,800
1 Bishops Avenue Limited	357	--	--	357	356	--	--	356
Balvinder, a.s.	2	--	--	2	--	--	--	--
Baudry Beta, a.s.	389	--	--	389	376	--	--	376
BAYTON Gama, a.s.	8	--	--	8	1,755	--	--	1,755
Beroun Property Development, a.s.	114	--	--	114	337	--	--	337
Best Properties South, a.s.	24	--	--	24	--	--	--	--
BPT Development, a.s.	87	--	--	87	1,661	--	--	1,661
Brandýs Logistic, a.s.	859	--	--	859	652	--	--	652
BRNO INN, a.s.	3,176	--	--	3,176	3,164	--	--	3,164
Brno Property	25,119	--	--	25,119	22,296	--	--	22,296
Development, a.s.
Březiněves, a.s.	--	--	--	--	1,413	--	--	1,413
Byty Lehovec, s.r.o.	5,054	--	--	5,054	3,754	--	--	3,754
CB Property Development, a.s.	--	--	--	--	1,276	--	--	1,276
Central Tower 81 sp. z o.o.	1	--	--	1	--	--	--	--
City Gardens Sp. z o.o.	66	--	--	66	--	--	--	--
CPI - Bor, a.s.	75	--	--	75	135	--	--	135
CPI - Horoměřice, a.s.	--	--	--	--	82	--	--	82
CPI - Real Estate, a.s.	17	--	--	17	--	--	--	--
CPI - Zbraslav, a.s.	524	--	--	524	2,640	--	--	2,640
CPI BYTY, a.s. CPI Delta, a.s.	3,723 53	-- --	-- --	3,723 53	3,111 55	-- --	-- --	3,111 55
CPI East,s.r.o.	2,010	--	--	2,010	1,152	--	--	1,152
CPI Energo, a.s.	219	--	--	219	758	--	--	758
CPI Finance CEE, a.s.	73	--	--	73	73	--	--	73
CPI Flats, a.s.	686	--	--	686	4,082	--	--	4,082
CPI Green, a.s.	82	--	--	82	80	--	--	80
CPI Hotels Properties, a.s.	19	--	--	19	--	--	--	--
CPI Hungary Investments Kft.	3,044	--	--	3,044	998	--	--	998
CPI Hungary Kft.	963	--	--	963	809	--	--	809
CPI Jihlava Shopping, a.s.	--	--	--	--	1,024	--	--	1,024
CPI Kvarta, s.r.o.	1	--	--	1	2	--	--	2
CPI Kvinta, s.r.o.	2	--	--	2	2	--	--	2
CPI Management, s.r.o.	1,168	--	--	1,168	616	--	--	616
CPI Národní, s.r.o.	37,008	--	--	37,008	35,290	--	--	35,290

				2021				2020
Payables	Owed to affilitated payable within one year	Owed to affilitated payable after more than one	Other creditors payable within one year	Total	Owed to affilitated payable within one year	Owed to affilitated payable after more than one	Other creditors payable within one year	Total
		year				year
Note	7.1	7.2	8.1	--	7.1	7.2	8.1	--
CPI Office Business Center,	462	--	--	462	401	--	--	401
s.r.o. (formerly CPI Meteor Centre, s.r.o.)
CPI Office Prague, s.r.o.	1,734	--	--	1,734	620	--	--	620
CPI Omikrón, a.s.	--	--	--	--	80	--	--	80
CPI Palmovka Office, s.r.o.	--	--	--	--	50	--	--	50
merged with CPI Office
Business Center, s.r.o.
CPI Property a Facility,	--	--	--	--	276	--	--	276
s.r.o. (merged with CPI Services, a.s.)
CPI Property Group S.A.	97,967	5,075,824	--	5,173,791	158,157	4,546,868	--	4,705,025
CPI Reality, a.s.	564	--	--	564	1,089	--	--	1,089
CPI Retail MB s.r.o.	--	--	--	--	39	--	--	39
(merged with Nymburk Property Development, a.s.)
CPI Retail Portfolio I, a.s.	2	--	--	2	2	--	--	2
CPI Retail Portfolio II, a.s.	41	--	--	41	913	--	--	913
CPI Retail Portfolio IV, s.r.o.	82	--	--	82	25	--	--	25
CPI Retail Portfolio V, s.r.o.	443	--	--	443	328	--	--	328
CPI Retail Portfolio VI, s.r.o.	77	--	--	77	78	--	--	78
CPI Retail Portfolio VIII s.r.o.	105	--	--	105	--	--	--	--
CPI Retails ONE, a.s.	192	--	--	192	235	--	--	235
CPI Retails Rosa s.r.o.	76	--	--	76	55	--	--	55
CPI Retails THREE, a.s.	735	--	--	735	500	--	--	500
CPI Retails TWO, a.s.	217	--	--	217	314	--	--	314
CPI Sekunda, s.r.o.	2	--	--	2	2	--	--	2
CPI Services, a.s.	3,491	--	--	3,491	3,893	--	--	3,893
CPI Shopping MB, a.s.	711	--	--	711	495	--	--	495
CPI Shopping Teplice, a.s.	562	--	--	562	2	--	--	2
CPI Tercie, s.r.o.	1	--	--	1	2	--	--	2
CPI Théta, a.s.	82	--	--	82	80	--	--	80
CPI Vestec, s.r.o.	24	--	--	24	129	--	--	129
Czech Property	104,180	--	--	104,180	158,058	--	--	158,058
Investments, a.s. Čadca Property	99	--	--	99	--	--	--	--
Development, s.r.o.
Čáslav Investments, a.s.	44	--	--	44	48	--	--	48
EMH South, s.r.o.	162	--	--	162	145	--	--	145
Farhan, a.s.	812	--	--	812	1,629	--	--	1,629
FL Property Development,	2	--	--	2	2	--	--	2
a.s. Futurum HK Shopping,	1,523	--	--	1,523	--	--	--	--
s.r.o. GSG Asset GmbH & Co.	60	4,013	--	4,073	13	4,000	--	4,013
Verwaltungs KG
GSG Europa Beteiligungs GmbH	400	1	--	401	799	401	--	1,200
GSG Gewerbehöfe Berlin 1. GmbH & Co. KG	197	13,141	--	13,338	41	13,100	--	13,141
GSG Gewerbehöfe Berlin 2. GmbH & Co. KG	299	19,963	--	20,262	63	19,900	--	19,963
GSG Gewerbehöfe Berlin 3. GmbH & Co. KG	451	30,095	--	30,546	95	30,000	--	30,095
GSG Gewerbehöfe Berlin 4. GmbH & Co. KG	295	19,662	--	19,957	62	19,600	--	19,662
GSG Gewerbehöfe Berlin 5. GmbH & Co. KG	521	34,709	--	35,230	109	34,600	--	34,709
HOTEL U PARKU, s.r.o.	644	--	--	644	661	--	--	661

				2021				2020
Payables	Owed to affilitated payable	Owed to affilitated payable	Other creditors payable	Total	Owed to affilitated payable	Owed to affilitated payable	Other creditors payable	Total
	within	after	within		within	after	within
	one year	more	one year		one year	more	one year
		than one				than one
		year				year
Note	7.1	7.2	8.1	--	7.1	7.2	8.1	--
IGY2 CB, a.s.	--	--	--	--	730	--	--	730
Janáčkovo nábřeží 15, s.r.o.	15	--	--	15	--	--	--	--
Jeseník Investments, a.s.	64	--	--	64	65	--	--	65
Jetřichovice Property, a.s.	257	--	--	257	253	--	--	253
KOENIG Shopping, s.r.o.	1,233	--	--	1,233	--	--	--	--
Komárno Property Development, a.s.	73	--	--	73	36	--	--	36
Kosmonosy Property Development, s.r.o. (merged with Nymburk Property Development,	--	--	--	--	191	--	--	191
a.s.)
LD Praha, a.s.	3	--	--	3	--	--	--	--
Levice Property Development, a.s.	103	--	--	103	63	--	--	63
Lockhart, a.s.	25	--	--	25	--	--	--	--
Lucemburská 46, a.s.	23	--	--	23	--	--	--	--
Marissa Gama, a.s.	--	--	--	--	699	--	--	699
Marissa Omikrón, a.s.	148	--	--	148	351	--	--	351
Marissa Théta, a.s.	2	--	--	2	--	--	--	--
Marissa West, a.s.	570	--	--	570	1,069	--	--	1,069
Marissa Ypsilon, a.s.	261	--	--	261	78	--	--	78
Michalovce Property	62	--	--	62	81	--	--	81
Development, a.s.
MMR RUSSIA S.à r.l.	--	--	--	--	10	--	--	10
MUXUM, a.s.	21	--	--	21	--	--	--	--
Na Poříčí, a.s.	415	--	--	415	252	--	--	252
Nymburk Property	440	--	--	440	3,810	--	--	3,810
Development, a.s.
OC Nová Zdaboř a.s.	320	--	--	320	517	--	--	517
OC Spektrum, s.r.o.	228	--	--	228	1	--	--	1
OFFICE CENTER HRADČANSKÁ, a.s. merged with CPI Office Business Center, s.r.o.	--	--	--	--	215	--	--	215
Orchard Hotel a.s.	4	--	--	4	--	--	--	--
Pelhřimov Property	36	--	--	36	53	--	--	53
Development, a.s.
Považská Bystrica Property Development, a.s.	74	--	--	74	--	--	--	--
Prievidza Property	31	--	--	31	32	--	--	32
Development, a.s.
PROJECT FIRST a.s.	4,941	--	--	4,941	4,834	--	--	4,834
Projekt Nisa, s.r.o.	1,328	--	--	1,328	2	--	--	2
Projekt Zlatý Anděl, s.r.o.	1,675	--	--	1,675	1,848	--	--	1,848
Příbor Property Development, s. r.o.	--	--	--	--	3	--	--	3
Residence Belgická, s.r.o.	9	--	--	9	--	--	--	--
Rezidence Malkovského,	518	--	--	518	--	--	--	--
s.r.o.
ST Project Limited	(184)	177,970	--	177,786	6,742	176,870	--	183,612
Svitavy Property Alfa, a.s.	204	--	--	204	373	--	--	373
Tachov Investments, s.r.o.	57	--	--	57	54	--	--	54
Telč Property	35	--	--	35	50	--	--	50
Development, a.s.
Tepelné hospodářství Litvínov s.r.o.	1	--	--	1	107	--	--	107
Trebišov Property Development, s. r. o.	145	--	--	145	17	--	--	17
Třinec Investments, s.r.o.	81	--	--	81	57	--	--	57

				2021				2020
Payables	Owed to	Owed to	Other	Total	Owed to	Owed to	Other	Total
	affilitated	affilitated	creditors		affilitated	affilitated	creditors
	payable	payable	payable		payable	payable	payable
	within	after	within		within	after	within
	one year	more	one year		one year	more	one year
		than one				than one
		year				year
Note	7.1	7.2	8.1	--	7.1	7.2	8.1	--
Třinec Property	--	--	--	--	336	--	--	336
Development, a.s.
Tyršova 6, a.s.	98	--	--	98	--	--	--	--
U svatého Michala, a.s.	19	--	--	19	--	--	--	--
V Team Prague, s.r.o.	381	--	--	381	--	--	--	--
ZET.office, a.s.	357	--	--	357	79	--	--	79
Ždírec Property	19	--	--	19	14	--	--	14
Development, a.s.
Mr. Radovan Vítek and his	--	--	--	--	75	--	--	75
entity reported as
affilitated
CPI Yellow, a.s.	--	--	--	--	75	--	--	75
Other related reported as	--	--	--	--	--	--	49	49
Other
Turf Praha a.s.	--	--	--	--	--	--	49	49
Total	328,303	5,375,378	--	5,703,681	449,476	4,845,339	49	5,294,864

					2021					2020
Income	Other	Financi	Income	Financi	Total	Other	Financi	Income	Financi	Total
	operati	al	from	al		operati	al	from	al
	ng	income	Financi	income		ng	income	Financi	income
	income	from	al fixed			income	from	al fixed
		affiliate	assets				affiliate	assets
		d					d
Note	9	14	15.1 15.2	16.1 16.2	--	9	14	15.1 15.2	16.1 16.2	--

Owned by the Company (directly, indirectly) -	--	11,463	16,609	386	28,458	--	13,218	17,172	648	31,038
affiliated
Brillant 1419. GmbH	--	5	--	--	5	--	--	--	--	--
Brno Property Invest XV.,
s.r.o.	--	--	4	--	4	--	--	--	--	--
Bubenská 1, a.s. merged
with CPI Office Business	--	--	3,236	92	3,328	--	--	4,047	162	4,209
Center, s.r.o.
Bubny Development, s.r.o.	--	--	1,704	2	1,706	--	--	1,692	4	1,696
BYTY PODKOVA, a.s.	--	614	--	1	615	--	9,779	--	191	9,970
Camuzzi, a.s.	--	--	70	1	71	--	--	55	1	56
CD Property s.r.o.	--	--	714	15	729	--	--	595	71	666
CPI - Krásné Březno, a.s.	--	--	35	1	36	--	--	30	--	30
CPI - Land Development,	--	--	401	8	409	--	--	350	3	353
a.s.
CPI Park Žďárek, a.s.	--	--	179	--	179	--	--	158	--	158
CPI Pigna S.r.l.	--	--	382	--	382	--	--	350	--	350
CPI REV Italy II S.r.l.	--	--	261	--	261	--	--	344	--	344
CPI South, s.r.o.	--	--	14	1	15	--	--	10	--	10
Darilia, a.s.	--	--	--	--	--	--	--	--	1	1
Data Trade s.r.o.	--	--	15	21	36	--	--	25	--	25
Development Doupovská,	--	--	--	--	--	--	--	--	1	1
s.r.o.
Diana Property Sp. z o.o. Endurance Real Estate	--	--	146	--	146	--	--	137	--	137
Management Company	--	--	--	--	--	--	273	--	--	273
S.A.
Equator IV Offices sp. z
o.o.	--	--	2,386	--	2,386	--	--	2,209	--	2,209
Estate Grand, s.r.o.	--	--	32	1	33	--	--	27	--	27
Eurocentrum Offices sp. z	--	--	5,060	--	5,060	--	--	4,520	--	4,520
o.o.
FAMIACO ENTERPRISES	--	--	236	--	236	--	--	223	--	223
COMPANY LIMITED
GCA Property Development sp. z o.o.	--	--	--	--	--	--	--	1	--	1
Industrial Park Stříbro,
s.r.o.	--	510	62	62	634	--	3,166	--	67	3,233
JIHOVÝCHODNÍ MĚSTO,
a.s.	--	--	19	5	24	--	--	12	--	12
Karviná Property
Development, a.s. v	--	--	--	1	1	--	--	29	--	29
likvidaci
Land Properties, a.s.	--	--	--	3	3	--	--	--	3	3
Les Mas du Figuier	--	--	167	--	167	--	--	151	--	151
Marki Real Estate sp. z o.o.	--	--	--	1	1	--	--	--	5	5
w likwidacji
MQM Czech, a.s.	--	--	27	1	28	--	--	23	--	23
NOVÁ ZBROJOVKA, s.r.o.	--	--	982	101	1,083	--	--	1,870	37	1,907
Nupaky a.s.	--	--	17	--	17	--	--	15	--	15
Polygon BC, a.s.	--	--	133	6	139	--	--	96	1	97
Rezidence Pragovka, s.r.o.	--	--	38	5	43	--	--	23	--	23
SCP Reflets	--	--	217	--	217	--	--	122	--	122
Strakonice Property	--	--	3	--	3	--	--	3	--	3
Development, a.s.
STRM Beta , a.s.	--	--	36	--	36	--	--	24	--	24
STRM Gama, a.s.	--	--	19	--	19	--	--	13	--	13

					2021					2020
Income	Other operati ng income	Financi al income from	Income from Financi al fixed	Financi al income	Total	Other operati ng income	Financi al income from	Income from Financi al fixed	Financi al income	Total
		affiliate d	assets				affiliate d	assets
Note	9	14	15.1 15.2	16.1 16.2	--	9	14	15.1 15.2	16.1 16.2	--
Svitavy Property Development, a.s.	--	--	11	27	38	--	--	18	2	20
Szczecin Project sp. z o.o. w likwidacji	--	--	--	--	--	--	--	--	4	4
Vysočany Office, a.s.	--	--	3	--	3	--	--	--	--	--
WFC Investments sp. z o.o. Owned by the Company	--	10,334	--	31	10,365	--	--	--	95	95
(directly, indirectly) - interest participated	--	--	857	--	857	--	--	821	--	821
Uniborc S.A.	--	--	857	--	857	--	--	821	--	821
CPI Group's entity	22,758	--	363,04 3	25,977	411,77 8	21,806	--	165,51 0	9,034	196,35 0
1 Bishops Avenue Limited	--	--	5,295	--	5,295	--	--	3,423	20	3,443
Agrome s.r.o. AIRPORT CITY	--	--	--	124	124	--	--	--	--	--
INGATLANBEFEKTETÉSI Kft.	134	--	888	41	1,063	--	--	705	24	729
Airport City Phase B Kft.	24	--	93	6	123	--	--	76	8	84
ALIZÉ PROPERTY a.s. Andrassy Hotel Zrt.	-- 1	-- --	2 332	-- 45	2 378	-- --	-- --	-- 212	-- 9	-- 221
Andrássy Real Kft.	36	--	843	20	899	--	--	504	21	525
Angusland s.r.o.	--	--	--	49	49	--	--	--	--	--
Arena Corner Kft.	136	--	2,475	25	2,636	--	--	1,582	125	1,707
Balvinder, a.s.	--	--	183	6	189	--	--	208	5	213
Baron Puglia S.r.l.	--	--	150	--	150	--	--	529	--	529
Baudry Beta, a.s.	--	--	734	20	754	--	--	481	11	492
BAYTON Alfa, a.s.	--	--	706	35	741	--	--	691	17	708
BAYTON Gama, a.s.	--	--	--	23	23	--	--	--	--	--
BC 91 Real Estate Ingatlanbefektetési Kft.	19	--	64	20	103	--	--	68	18	86
BC 99 Office Park Kft.	212	--	2,212	80	2,504	--	--	1,561	32	1,593
Beroun Property Development, a.s.	--	--	592	13	605	--	--	466	23	489
Best Properties South, a.s.	--	--	3,818	156	3,974	--	--	2,408	63	2,471
Biochov s.r.o.	--	--	--	85	85	--	--	--	--	--
Biopotraviny s.r.o.	--	--	--	87	87	--	--	--	--	--
BPT Development, a.s.	--	--	--	47	47	--	--	--	37	37
Brandýs Logistic, a.s.	--	--	1,437	165	1,602	--	--	946	35	981
Brno Development Services, s.r.o.	--	--	23	5	28	--	--	18	7	25
BRNO INN, a.s.	--	--	--	2	2	--	--	--	6	6
Brno Property Development, a.s.	--	--	--	--	--	--	--	--	56	56
Březiněves, a.s.	--	--	151	96	247	--	--	373	133	506
Buy-Way Dunakeszi Kft.	97	--	372	33	502	--	--	297	27	324
Buy-Way Soroksár Kft.	36	--	280	9	325	--	--	206	12	218
Byty Lehovec, s.r.o. CAMPONA Shopping	-- 157	-- --	-- 7,262	-- 96	-- 7,515	-- --	-- --	742 5,290	60 --	802 5,290
Center Kft. Carpenter Invest, a.s.	--	--	134	173	307	--	--	143	100	243
CB Property Development, a.s.	--	--	169	2,221	2,390	--	--	71	2	73
Central Tower 81 sp. z o.o.	--	--	--	1	1	--	--	--	--	--
Conradian, a.s.	--	--	322	167	489	--	--	369	78	447
CPI - Bor, a.s.	--	--	715	35	750	--	--	529	10	539
CPI - Horoměřice, a.s.	--	--	--	--	--	--	--	--	13	13
CPI - Orlová, a.s.	--	--	79	--	79	--	--	67	--	67

					2021					2020
Income	Other operati	Financi al	Income from	Financi al	Total	Other operati	Financi al	Income from	Financi al	Total
	ng	income	Financi	income		ng	income	Financi	income
	income	from	al fixed			income	from	al fixed
		affiliate	assets				affiliate	assets
		d					d
Note	9	14	15.1 15.2	16.1 16.2	--	9	14	15.1 15.2	16.1 16.2	--
Levice Property Development, a.s.	--	--	220	--	220	--	--	157	--	157
Lockhart, a.s.	--	--	1,467	103	1,570	--	--	1,528	40	1,568
Lucemburská 46, a.s.	--	--	145	9	154	--	--	146	2	148
Marissa Gama, a.s.	--	--	2,506	141	2,647	--	--	1,887	30	1,917
Marissa Omikrón, a.s.	--	--	940	1	941	--	--	838	1	839
Marissa Tau, a.s.	--	--	893	--	893	--	--	396	--	396
Marissa Théta, a.s.	--	--	29	3	32	--	--	38	1	39
Marissa West, a.s.	--	--	2,838	262	3,100	--	--	2,614	35	2,649
Marissa Yellow, a.s.	--	--	536	149	685	--	--	524	7	531
Marissa Ypsilon, a.s.	--	--	2,484	9	2,493	--	--	1,947	33	1,980
MARRETIM s.r.o.	--	--	37	--	37	--	--	--	--	--
MB Property
Development, a.s. (merged with Nymburk	--	--	3	3	6	--	--	70	2	72
Property Development,
a.s.)
Mercuda, a.s.	--	--	--	--	--	(523)	--	--	--	(523)
Michalovce Property	--	--	203	--	203	--	--	177	--	177
Development, a.s.
MMR RUSSIA S.à r.l.	10	--	--	--	10	10	--	--	--	10
MUXUM, a.s.	--	--	277	6	283	--	--	141	3	144
Na Poříčí, a.s.	--	--	2,056	--	2,056	--	--	1,744	35	1,779
New Age Kft. Nymburk Property	--	--	54	1	55	--	--	40	5	45
Development, a.s.	--	--	107	518	625	--	--	--	405	405
OC Nová Zdaboř a.s.	--	--	582	1	583	--	--	431	3	434
OC Spektrum, s.r.o.	--	--	1,035	236	1,271	--	--	550	38	588
OFFICE CENTER
HRADČANSKÁ, a.s. merged	--	--	647	--	647	--	--	639	11	650
with CPI Office Business
Center, s.r.o. Office Center Poštová,
s.r.o.	--	--	--	--	--	--	--	106	16	122
Olomouc Building, a.s.	--	--	1,368	17	1,385	--	--	649	22	671
Orchard Hotel a.s.	--	--	395	2	397	--	--	661	20	681
Outlet Arena Moravia,	--	--	1	1	2	--	--	15	48	63
s.r.o.
Ozrics Kft.	--	--	198	20	218	--	--	147	42	189
Pelhřimov Property Development, a.s.	--	--	179	2	181	--	--	140	4	144
Platnéřská 10 s.r.o.	--	--	7	24	31	--	--	7	--	7
POLMA 1 S.A. (merged
with CPIPG Management	10	--	227	--	237	--	--	--	--	--
S.à r.l)
Pólus Shopping Center Zrt.	284	--	5,633	21	5,938	--	--	4,399	21	4,420
Považská Bystrica Property Development, a.s.	--	--	48	--	48	--	--	37	--	37
Prievidza Property
Development, a.s.	--	--	126	--	126	--	--	95	--	95
PROJECT FIRST a.s.	--	--	--	--	--	--	--	--	22	22
Projekt Nisa, s.r.o.	--	--	5,415	127	5,542	--	--	4,703	122	4,825
Projekt Zlatý Anděl, s.r.o.	--	--	4,332	23	4,355	--	--	3,228	103	3,331
Prostějov Investments, a.s.	--	--	53	293	346	--	--	42	1	43
Příbor Property	--	--	34	1	35	--	--	19	1	20
Development, s. r.o.
PV - Cvikov s.r.o.	--	--	--	93	93	--	--	--	--	--
Real Estate Energy Kft. Residence Belgická, s.r.o.	-- --	-- --	5 78	-- 2	5 80	-- --	-- --	9 72	-- 1	9 73

				2021				2020
Expenses	Other	Financial	Financial	Total	Other	Financial	Financial	Total
	external	expenses	expenses		external	expenses	expenses
	expenses	affiliated*	other*		expenses	affiliated	other
Note	10	18.1	18.2	--	10	18.1	18.2	--
Owned by the Company	--	4,921	--	4,921	--	37,917	--	37,917
(directly, indirectly) -
affiliated
Bubenská 1, a.s. merged	--	(598)	--	(598)	--	659	--	659
with CPI Office Business
Center, s.r.o.
Bubny Development, s.r.o.	--	(825)	--	(825)	--	1,185	--	1,185
BYTY PODKOVA, a.s.	--	178	--	178	--	277	--	277
Camuzzi, a.s.	--	(20)	--	(20)	--	21	--	21
CD Property s.r.o.	--	(282)	--	(282)	--	344	--	344
CEREM S.A.	--	--	--	--	--	37,154	--	37,154
CPI - Krásné Březno, a.s.	--	(14)	--	(14)	--	14	--	14
CPI - Land Development, a.s.	--	(88)	--	(88)	--	137	--	137
CPI Park Žďárek, a.s.	--	(59)	--	(59)	--	60	--	60
CPI South, s.r.o.	--	(3)	--	(3)	--	4	--	4
Darilia, a.s.	--	1	--	1	--	1	--	1
Data Trade s.r.o.	--	(2)	--	(2)	--	2	--	2
Development Doupovská,	--	3	--	3	--	2	--	2
s.r.o.
Endurance Real Estate	--	--	--	--	--	6	--	6
Management Company S.A.
Estate Grand, s.r.o.	--	(10)	--	(10)	--	10	--	10
HAGIBOR OFFICE	--	6,408	--	6,408	--	--	--	--
BUILDING, a.s., V LIKVIDACI
(liquidated)
Industrial Park Stříbro, s.r.o.	--	69	--	69	--	69	--	69
JIHOVÝCHODNÍ MĚSTO, a.s.	--	(4)	--	(4)	--	6	--	6
Karviná Property	--	--	--	--	--	30	--	30
Development, a.s. v
likvidaci
Land Properties, a.s.	--	20	--	20	--	--	--	--
Marki Real Estate sp. z o.o.	--	212	--	212	--	103	--	103
w likwidacji
MQM Czech, a.s.	--	(12)	--	(12)	--	14	--	14
NOVÁ ZBROJOVKA, s.r.o.	--	(196)	--	(196)	--	781	--	781
Nupaky a.s.	--	(6)	--	(6)	--	6	--	6
Polygon BC, a.s.	--	(28)	--	(28)	--	38	--	38
Rezidence Pragovka, s.r.o.	--	(8)	--	(8)	--	12	--	12
Strakonice Property	--	(1)	--	(1)	--	1	--	1
Development, a.s. STRM Alfa, a.s.	--	6	--	6	--	8	--	8
STRM Beta , a.s.	--	(6)	--	(6)	--	7	--	7
STRM Gama, a.s.	--	(5)	--	(5)	--	5	--	5
Svitavy Property	--	40	--	40	--	48	--	48
Development, a.s.
Szczecin Project sp. z o.o. w	--	--	--	--	--	12,834	--	12,834
likwidacji
Vysočany Office, a.s.	--	2	--	2	--	--	--	--
WFC Investments sp. z o.o.	--	149	--	149	--	(15,921)	--	(15,921)

			2021			2020
Value adjustments	Value adjustment s of current assets	Value adjustment s of fixed assets	Total	Value adjustment s of current assets	Value adjustment s of fixed assets	Total
Note	12	17	--	12	17	--
Owned by the Company (directly, indirectly) - affiliated	119	6,862	6,981	(28)	30,710	30,682
CEREM S.A.	--	--	--	--	37,154	37,154
CPI Pigna S.r.l.	--	--	--	--	(5,433)	(5,433)
CPI REV Italy II S.r.l.	--	--	--	--	(417)	(417)
Data Trade s.r.o.	--	--	--	24	377	401
FAMIACO ENTERPRISES COMPANY LIMITED	(14)	(227)	(241)	(13)	(216)	(229)
HAGIBOR OFFICE BUILDING, a.s., V LIKVIDACI (liquidated)	94	6,321	6,415	--	--	--
Karviná Property Development, a.s. v likvidaci	39	8	47	(39)	(8)	(47)
Les Mas du Figuier	--	741	741	--	(6,472)	(6,472)
SCP Reflets	--	19	19	--	(7,109)	(7,109)
Szczecin Project sp. z o.o. w likwidacji	--	--	--	--	12,834	12,834
Owned by the Company (directly, indirectly) - interest participated	--	(3,944)	(3,944)	--	--	--

			2021			2020
Value adjustments	Value	Value	Total	Value	Value	Total
	adjustment	adjustment		adjustment	adjustment
	s of current	s of fixed		s of current	s of fixed
	assets	assets		assets	assets
Note	12	17	--	12	17	--
Uniborc S.A.	--	(3,944)	(3,944)	--	--	--
CPI Group's entity	(910)	(25,708)	(26,618)	974	(9,745)	(8,771)
Balvinder, a.s.	--	(145)	(145)	--	--	--
Baron Puglia S.r.l.	--	1,405	1,405	--	(1,405)	(1,405)
Brno Development Services, s.r.o.	(15)	--	(15)	--	--	--
CAMPONA Shopping Center Kft.	--	529	529	--	(6,222)	(6,222)
CPI Facility Slovakia, a.s.	(127)	(6,042)	(6,169)	--	--	--
CPI Hotels, a.s.	(529)	(15,881)	(16,410)	--	--	--
CPI IMMO	(182)	(77)	(259)	--	4	4
CPI Retail One Kft.	--	2,029	2,029	--	(3,763)	(3,763)
CPI Retail Portfolio V, s.r.o.	--	--	--	--	295	295
Duca Puglia S.r.l.	--	285	285	--	(285)	(285)
ENDURANCE HOSPITALITY FINANCE S.à r.l.	--	(8,043)	(8,043)	--	--	--
HD Investment s.r.o.	--	(16)	(16)	--	54	54
Hospitality invest S.à r.l.	(51)	--	(51)	974	--	974
Kunratická farma, s.r.o.	--	(12)	(12)	--	--	--
Liptovský Mikuláš Property Development,	--	--	--	--	1,815	1,815
a.s.
Marissa Théta, a.s.	--	234	234	--	(234)	(234)
MMR RUSSIA S.à r.l.	(6)	--	(6)	--	--	--
Outlet Arena Moravia, s.r.o.	--	16	16	--	(16)	(16)
Real Estate Energy Kft.	--	10	10	--	12	12
Other related reported as Other linked	(190)	--	(190)	--	--	--
by management of the Company
PAC Italy 130 SPV S.R.L.	(190)	--	(190)	--	--	--
Total	(1,100)	(29,652)	(30,752)	974	(9,745)	(8,771)

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CpiFim

2269_rns_2022-04-01_70a1e1ad-7a05-4685-a9a4-b339fe4f1411.pdf

FINANCIAL INFORMATION

2021

Consolidated financial statements

Report of the Réviseur d´Entreprises

for the financial year ended as at 31 December 2021

SUMMARY

MESSAGE FROM THE MANAGEMENT

YEAR 2021 AND POST-CLOSING KEY EVENTS

Annual general meeting of shareholders

Acquisition of a resort hotel in Italy and of a land plot in the Czech Republic

Disposals of Bubenská 1, Prague and ZET.Office, Brno

Disposal of an industrial property in Stříbro

Fast food opens its door to the public

Disposal of CPIPG shares

Intergroup financing

COVID-19 impact

MARKET ENVIRONMENT

Global macro-economic conditions

Czech Republic1

Poland2

Selected market focus

Prague office market3

Warsaw office market 4

CPI FIM

OPERATIONS OF THE GROUP IN 2021

Financing of CPIPG Group

Rendering of services to CPIPG Group

PROPERTY PORTFOLIO

Total Property Portfolio

Property Valuation

Office

• Eurocentrum Office, Warsaw

• Warsaw Financial Center, Warsaw

• Equator IV Offices, Warsaw

• Diana Office, Warsaw

• Mayhouse, Prague

CPI FIM

Residential

• Villa Lou Paradou

• Villa Mas Du Figuer

• Residential property Piazza della Pigna

• Hotel Acaya

Retail

Industry and Logistics

Development

FINANCING

Cash and cash equivalents

Financial liabilities

RESULTS AND NET ASSETS

Income statement

Rental income

Net valuation gain

Administrative expenses

Net finance income

Balance sheet

Total assets and total liabilities

EPRA NRV (former EPRA NAV) and EPRA NDV (former EPRA NNNAV)

CORPORATE GOVERNANCE

Principles

Board of Directors

Appointment of Directors

Current Board of Directors

Powers of the Board of Directors

Deliberations

Delegations of powers to Managing Directors

Signatory powers within the Board of Directors

Special commitments in relation to the election of the members of the Board of Directors

Management of the Company

Committees of the Board of Directors

Audit Committee

Remuneration, Appointment and Related Party Transaction Committee

Description of internal controls relative to financial information processing.

Control Environment

Remuneration and benefits

Board of Directors

Corporate Governance rules and regulations

Additional information

Czech Republic¹

Poland²

Prague office market³

Warsaw office market ⁴