BBI Development S.A. — Management Reports 2020

Mar 26, 2020

UNOFFICIAL TRANSLATION:

Current report no. 20/2020

Date: March 26, 2020

Short name of issuer: i2 Development S.A.

Subject: Impact of SARS-CoV-2 virus and COVID-19disease on the activity and financial results of i2 Development S.A. andthe i2 Development S.A. Capital Group

Legal basis Article 17 para. 1 MAR - confidentialinformation

In connection with the Regulation of the Minister ofHealth of March 20, 2020 on the announcement of the state of theepidemic in the Republic of Poland, as well as with reference to therecommendations of the European Securities and Markets Authority (ESMA)of March 11, 2020 and the recommendations of the Financial SupervisoryCommission (KNF) of March 12, 2020, the Management Board of i2Development SA (hereinafter: "the Issuer") provides information on thepossible impact of the spread of the SARS-CoV-2 virus and COVID-19disease on the business, financial results or prospects of the Issuer orthe i2 Development S.A. Capital Group.

To the best knowledge of the Issuer's ManagementBoard, as at the date of publication of this current report, it is notpossible to determine the final impact of the SARS-CoV-2 virus, which islargely dependent on factors independent of the Issuer. However, theexpected outcomes of the epidemic may have potentially adverse effects.However, this does not change the fact that, as at the date of thisreport, to the best knowledge of the Issuer's Management Board, theabove does not significantly affect the current operations, financialresults or prospects of the Issuer or the i2 Development S.A. CapitalGroup.

Based on preliminary analyses, the Issuer assessedpossible future effects of the epidemic, in particular on:

- the dynamics of sales of residential or servicepremises - in the form of: delays in signing reservation, preliminary,development contracts and acts transferring ownership of premises, inparticular through the limited operation of notary offices and possibledelays in considering the credit applications of the Issuer's clientsand disbursement of loan tranches, as well as possible clients'illnesses or quarantines,

- extension of administrative proceedings in theOffices (regarding the issuing of decisions, among others, buildingpermits and occupancy permits), proceedings regarding obtainingfinancing in Banks (in the scope of financing current and planneddevelopment projects), as well as court proceedings (in particular inthe land and mortgage register)

- construction works schedule - in the form of:possible delays in construction works related to limited access tobuilding materials and possible shortages of staff at subcontractors andthus on the timeliness of investment implementation (current and theones being prepared in accordance with the adopted schedule for newinvestments).

In the opinion of the Issuer's Management Board,depending on the duration of the current situation and the significanceof restrictions introduced by state authorities, there is a potentialthreat of an economic slowdown, which may have a long-term impact on thereal estate market, including the demand for residential, service andoffice premises, and also on the availability and terms of investmentfinancing and schedules of development projects.

At the same time, the Issuer's Management Boardinforms that it has taken all actions to minimize the effects of theabovementioned factors. Situation of the i2 Development S.A. CapitalGroup as at the date of this report, in the opinion of the ManagementBoard, is stable.

The Issuer informs that it regularly and carefullymonitors the situation related to the spread of SARS-CoV-2 virus andCOVID-19 disease and indicates that, to the extent required by law, itwill inform in subsequent reports about new conditions that may have asignificant impact on operations, financial results or perspectives ofthe Company and the i2 Development S.A. Capital Group.

Signatures of persons representing the Company: