CpiFim

Earnings Release • May 31, 2021

Press Release Luxembourg, 31 May 2021

CPI FIM SA

Reports financial results for the first quarter of 2021

CPI FIM SA (hereinafter "CPI FIM", the "Company" or together with its subsidiaries the "Group"), a real estate group with a property portfolio primarily located in the Czech Republic and Poland, hereby publishes unaudited financial results for the first quarter of 2021.

Financial highlights

Performance		Q1-21	Q1-20	Change
Gross rental income Total revenues	€ thousands € thousands	9,173 17,311	8,897 16,608	3% 4%
Operating result	€ thousands	15,207	10,018	52%
Net profit for the period	€ thousands	33,739	(80,657)	142%

Assets		31-Mar-21	31-Dec-20	Change
Total assets	€ thousands	6,757,293	6,504,366	4%
EPRA NRV	€ thousands	1,011,947	978,749	3%
Property Portfolio	€ thousands	1,331,000	1,367,000	(3%)
Gross leasable area	sqm	199,000	221,000	10%
Occupancy in %	%	84.4%	82.7%	1.7 p.p.
Land bank area	sqm	18,042,000	18,042,000	0%
Total number of properties	No.	7	8	(13%)

Financing structure		31-Mar-21	31-Dec-20	Change
Total equity	€ thousands	1,133,556	1,103,572	3%
Equity ratio	%	17%	17%	(0.2 p.p.)

Statement of comprehensive income*

Income statement for the 3 month period ended on 31 March 2021 and 31 March 2020 is as follows:

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€ thousands	31-Mar-21	31-Mar-20
Gross rental income	9,173	8,897
Sale of services	8,138	7,711
Cost of service charges	(2,784)	(2,749)
Property operating expenses	(777)	(2,060)
Net service and rental income	13,750	11,799
Total revenues	17,311	16,608
Total direct business operating expenses	(3,561)	(4,809)
Net business income	13,750	11,799
Net valuation loss on investment property**	(1,188)	(24)
Net gain on the disposal of investment property and subsidiaries	6,183	(2)
Amortization, depreciation and impairments	(139)	1,039
Administrative expenses	(3,184)	(2,403)
Other operating income	339	2
Other operating expenses	(553)	(393)
Operating result	15,208	10,018
Interest income	50,618	38,631
Interest expense	(40,368)	(32,107)
Other net financial result**	10,323	(96,193)
Net finance income/(cost)	20,573	(89,669)
Share of loss of equity-accounted investees (net of tax)	(186)	(243)
Profit/(Loss) before income tax	34,595	(79,894)
Income tax expense	(1,856)	(763)
Net profit/(loss) for the period	33,739	(80,657)

*The presented financial statements do not represent a full set of interim financial statements as if prepared in accordance with IAS 34 **Including net foreign exchange gains and losses, share of profit of equity accounted investees and other financial gains and losses

Gross rental income

In Q1 2021, gross rental income increased from EUR 8,897 million to EUR 9,173 million due to the contribution from recent developments (specifically Bubenská 1 in Prague which was completed in Q4 2020), together with stable like-for-like rents and occupancy.

Sale of services and cost of service charges

In Q1 2021, service charge income increased from EUR 7,711 million to EUR 8,138 million, primarily due to advisory and accounting services provided by CPI FIM and the income contribution from Bubenská 1.

Net gain on the disposal of investment property and subsidiaries

Net gain on the disposal of investment property and subsidiaries of EUR 6,183 million in Q1 2021 represents gain earned on the sale of shares of CPI PG SA, the Group's ultimate parent.

Net finance income

Total net finance income improved by EUR 110.2 million in Q1 2021 compared to Q1 2020, mainly due to the significantly higher other net financial result in Q1 2021 driven by retranslation of balances denominated in foreign currencies.

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Balance sheet*

€ thousands	31-Mar-21	31-Dec-20
NON-CURRENT ASSETS
Intangible assets	7	15
Investment property	1,331,116	1,367,184
Property, plant and equipment	662	662
Equity accounted investees	6,858	7,044
Other investments	41,984	188,884
Loans provided	4,959,262	4,234,093
Trade and other receivables	10	-
Deferred tax assets	141,803	142,019
Total non-current assets	6,481,702	5,939,901
CURRENT ASSETS
Inventories	302	300
Income tax receivables	776	81
Derivative instruments	395	1,694
Trade receivables	5,475	6,511
Loans provided	108,693	115,168
Cash and cash equivalents	39,369	249,190
Other current assets	120,581	191,521
Total current assets	275,591	564,465
TOTAL ASSETS	6,757,293	6,504,366
EQUITY
Equity attributable to owners of the Company	929,874	899,041
Non-controlling interests	203,682	204,531
Total equity	1,133,556	1,103,572
NON-CURRENT LIABILITIES
Financial debts	5,122,062	4,855,740
Deferred tax liabilities	80,562	78,500
Other financial liabilities	9,004	8,904
Total non-current liabilities	5,211,628	4,943,144
CURRENT LIABILITIES
Financial debts	347,408	376,179
Trade payables	1,809	8,618
Income tax liabilities	9	20
Other current liabilities	62,883	72,833
Total current liabilities	412,109	457,650
TOTAL EQUITY AND LIABILITIES	6,757,293	6,504,366

* The presented financial statements do not represent a full set of interim financial statements as if prepared in accordance with IAS 34

Total assets and total liabilities

Total assets increased by EUR 252.9 million (3.9%) to EUR 6,757.3 million as at 31 March 2021 primarily due to an increase of long-term loans provided to CPI PG SA by EUR 590.6 million.

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Non-current and current liabilities increased by EUR 222.9 million (4.1%) compared to 31 December 2020 due to the additional drawdown of loans provided to the Company by CPI PG SA, the Group's ultimate parent.

Equity, EPRA NRV and EPRA NDV

In Q1 2021, consolidated equity increased by EUR 30.8 million compared to 31 December 2020. The main driver of this increase is the profit for the period of EUR 34.6 million and increase of revaluation reserve by EUR 2.3 million.

EPRA NRV per share and EPRA NDV per share amounted to EUR 0.77 and EUR 0.71 as at 31 March 2021, compared to EUR 0.74 and EUR 0.68 as at 31 December 2020, respectively.

	31 March 2021	31 December 2020
Consolidated equity	929,874	899,041
Deferred taxes on revaluations	82,073	79,708
EPRA NRV	1,011,947	978,749
Number of shares (in thousands)	1,314,508	1,314,508
NRV per share (in €)	0.77	0.74
EPRA NRV	1,011,947	978,749
Deferred taxes on revaluations	(82,073)	(79,708)
EPRA NDV	929,874	899,041
Diluted number of shares (in thousand)	1,314,508	1,314,508
NDV per share (in €)	0.71	0.68

For more information please refer to our website at www.cpifimsa.com.

Investors contact: David Greenbaum, Managing Director Tel: + 352 26 47 67 1 Fax: + 352 26 47 67 67 Email: generalmeetings@cpifimsa.com

Glossary

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:

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• 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.

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 NDV per share

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

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.

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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.

Other definitions

EPRA

European Public Real Estate Association

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

Occupancy rate

The ratio of leased premises to leasable premises

APM reconciliation

Equity ratio reconciliation (€ thousands)	31-Mar-21	31-Dec-20
Total equity	1,133,556	1,103,572
Total assets	6,757,293	6,504,366
Equity ratio	17%	17%