Coreo AG — Interim / Quarterly Report 2021

Sep 14, 2021

Half-year report 2021

Content

Interim financial statement (IFRS)	Page 3
_ Consolidated balance sheet	Page 4
_ Consolidated income statement	Page 6
_ Consolidated cash flow statement	Page 7
_ Consolidated statement of changes in equity	Page 8
_ Notes	Page 9

Interim financial statement (HGB)	Page 24
_ Balance sheet	Page 25
_ Income statement	Page 27
_ Notes	Page 28

Interim financial statement (IFRS) of Coreo AG as of 06/30/2021

Consolidated balance sheet as of 06/30/2021 (IFRS) Assets

in TEUR	06/30/2021	12/31/2020	Notes
Intangible assets	4	4	5.1.1
Tangible assets	36	48	5.1.2
Investments in properties	47,514	54,259	5.1.3
Financial assets	11,810	13,635	5.1.4
Deferred tax assets	248	233	6.2.3
Non-current assets	59,612	68,179
Inventories	9,932	8,918	5.2.1
Trade receivables	500	591	5.2.2
Financial assets	978	1,017	5.2.3
Other assets	1,476	1,494	5.2.2
Tax receivables	157	187	5.2.4
Cash and bank balances	10,875	3,276	5.2.5
Assets held for sale	9,472	902	5.2.6
Current assets	33,390	16,384
Total assets	93,002	84,563

Consolidated balance sheet as of 06/30/2021 (IFRS) Liabilities

in TEUR	06/30/2021	12/31/2020	Notes
Subscribed capital	17,540	17,540	6.1.1
Capital reserves	24,097	24,097	6.1.2
Revenue reserves	12,545	12,545	6.1.3
Retained income/loss	-25,595	-24,785	6.1.4
Other result	-2,067	-239	6.1.5
Equity attributable to shareholders of Coreo AG	26,520	29,158
Non-controlling interests	55	137	6.1.6
Equity	26,575	29,295
Other provisions	6	6	6.2.1
Financial liabilities	44,259	32,623	6.2.2
Other liabilities	657	89
Deferred tax liabilities	1,329	1,166	6.2.3
Non-current liabilities	46,251	33,884
Other provisions	426	390	6.3.1
Financial liabilities	17,908	18,996	6.3.2
Trade payables	833	1,017	6.3.2
Other liabilities	473	477	6.3.2
Tax liabilities	536	504	6.3.3
Current liabilities	20,176	21,385
Total equity and liabilities	93,002	84,563

Consolidated statement of comprehensive income (IFRS) 01/01/2021 bis 06/30/2021

in TEUR	01/01/–06/30/2021	01/01/–06/30/2020	Notes
Rent revenues	1,934	1,546	7.1
Revenues from the sales of properties	1,031	5,773
Book value from the sold properties	-721	-5,281
Result from the sale of investment properties	310	492	7.2
Result from the valuation of investment properties	781	0	7.3
Other revenues	72	2	7.1
Other operating revenues	50	19	7.4
Cost of materials	-1,390	-875	7.5
Personnel costs	-512	-492	7.6
Depreciation and impairments	-12	-11	7.7
Other operating costs	-737	-780	7.8
Earnings before interest and tax (EBIT)	496	-100
Financial income	43	105	7.9
Financial expenses	-1,136	-1,119	7.10
Other financial result	10	19
Earnings before tax (EBT)	-587	-1,095
Taxes on income and profit	-222	358	7.11
Period result	-809	-737
Other result
Positions that will not be reclassified to profit or loss in the future
Changes in value of financial assets measured at fair value through other comprehensive income in the form of equity instruments	-1,856	-1,305
Income taxes on items that have not been reclassified	28	19
Other earnings after taxes	-1,828	-1,286
Total result	-2,637	-2,023
The result for the period is attributable to
Shareholders of Coreo AG	-810	-751
Non-controlling shareholders	1	14
The total result is attributable to
Shareholders of Coreo AG	-2,638	-2,037
Non-controlling shareholders	1	14
Shares outstanding (undiluted and diluted)	17,540,460	17,540,460	6.1.1
Earnings per share (undiluted and diluted) in EUR	-0.05	-0.04

Consolidated cash flow statement (IFRS) 01/01/2021 bis 06/30/2021

in TEUR	01/01/–06/30/2021	01/01/–06/30/2020
Period result	-809	-737
Result from the valuation of investment properties and change in value of properties held for sale	-781	0
Result from the sale of properties	-310	-492
Depreciation and impairments	12	11
Other non-cash expenses and income	125	85
Increase/reduction of provisions	36	-84
Increase/reduction of receivables and other current assets	139	1,819
Increase/reduction of liabilities and other dept	-43	-261
Payments from the sale of properties	845	0
Cash outflows for investments in inventories	-1,194	0
Financial income and other financial income	-53	-105
Financial costs	1,136	1,119
Income taxes	222	-358
Interest received	111	69
Interest payed	-1,042	-873
Tax payments	-3	-447
Cash flow from operating activities	-1,610	-253
Payments received from real estate sales for investment properties and properties held for sale	641	5,177
Payments for investment properties and properties held for sale	-1,579	-18,741
Payments for investments in other assets	-88	-52
Cash flow from investment activities	-1,026	-13,616
Proceeds from capital increases	0	1,913
Disbursements to non-controlling shareholders	-83	0
Cash inflow from new loans	11,303	16,008
Payments from repayment of loans	-985	-5,914
Costs inflows from bonds	0	2,000
Cash flow from financing activities	10,235	14,007
Change in cash and cash equivalents	7,599	138
Cash at the beginning of the period	3,276	5,195
Cash at the end of the period	10,875	5,333

Consolidated statement of changes in equity (IFRS) 01/01/2021 to 06/30/2021

in TEUR	Subscribed capital	Capital reserve	Revenue reserve	Result carried forward	Other result	Shareholders' equity	Non-controlling interests	Total equity
Status as of 01/01/2020 according to IFRS	15,946	23,778	12,545	-22,362	-1,737	28,169	151	28,319
Period result	-	-	-	-751	-	-751	14	-737
Capital increase	1,594	-	-	-	-	1,594	-	1,594
Premium from issue new shares	-	319	-	-	-	319	-	319
Changes in value, without effect of financial assets measured at fair value through profit or loss in the form of equity instruments after tax	-	-	-	-	-1,286	-1,286	-	-1,286
Disposal of financial assets measured at fair value through other comprehensive income in the form of equity instruments after tax	-	-	-	-	-	-	-	-
Status as of 06/30/2020 according to IFRS	17,540	24,097	12,545	-23,113	-3,023	28,045	165	28,210
Status as of 01/01/2021 according to IFRS	17,540	24,097	12,545	-24,785	-239	29,158	137	29,295
Period result	-	-	-	-810	-	-810	1	-809
Capital increase	-	-	-	-	-	-	-	-
Premium from issue new shares	-	-	-	-	-	-	-	-
Changes in value, without effect of financial assets measured at fair value through profit or loss in the form of equity instruments after tax	-	-	-	-	-1,828	-1,828	-	-1,828
Disposal of financial assets measured at fair value through other comprehensive income in the form of equity instruments after tax	-	-	-	-	-	-	-	-
Ausschüttungen	-	-	-	-	-	-	-83	-83
Status as of 06/30/2021 according to IFRS	17,540	24,097	12,545	-25,595	-2,067	26,520	55	26,575
Notes	6.1.1	6.1.2	6.1.3	6.1.4	6.1.5		6.1.6

Notes to the interim financial statements (IFRS) 01/01/2021 to 06/30/2021

1. General information

Coreo AG has its headquarters in Frankfurt am Main, Grüneburgweg 18. The Company is registered in the commercial register of the district court Frankfurt am Main under HR B 74535.

In accordance with the articles of association, the object of the company is the operation of real estate transactions and related transactions of all kinds, in particular the acquisition of developed and undeveloped land, the construction of buildings on such properties, their surrender of use, the development, improvement and encumbrance of such buildings and land, their letting and administration as well as their use, the participation in partnerships and (listed and non-listed) commercial companies with the same or similar business purpose and their sales and supply of services for these companies in the real estate sector, in particular the letting and administration of real estate. Activities defining the Company as an investment fund in the sense of the German Capital Investment Code are not exercised. In particular, the Company does not pursue the main purpose to provide its shareholders with a return by selling its subsidiaries or affiliated companies.

The shares of Coreo AG are traded on the Open Market of the Frankfurt Stock Exchange. There is no stock exchange listing within the meaning of § 3, section 2 of the German Stock Corporations Act (AktG). This also means that it is not a capital market-oriented corporation in accordance with § 264d German Commercial Code (HGB).

2. Basis of preparation of the Consolidated Financial Statements

2.1 General

The unaudited condensed Consolidated Interim Financial Statements as of 30 June 2021 were prepared in accordance with the International Financial Reporting Standards (IFRS) as applicable in the EU for interim financial statements in accordance with IAS 34, as well as in compliance with the additional requirements of German commercial law pursuant to section 315e of the German Commercial Code (HGB). All mandatory pronouncements of the International Accounting Standards Board (IASB) adopted by the EU by the balance sheet date as part of the endorsement process, i.e., published in the Official Journal of the EU, were applied.

Pursuant to IAS 34, a condensed scope of reporting was selected for the presentation of the Consolidated Interim Financial Statements of Coreo AG as of 30 June 2021, compared with the Consolidated Financial Statements as of 31 December 2020.

Coreo AG is not legally obliged to prepare Consolidated Interim Financial Statements in accordance with IFRS. The preparation and publication of the Consolidated Interim Financial Statements in accordance with IFR should enable users to better assess the value of the Company or Group.

The preparation of the Consolidated Interim Financial Statements is generally carried out applying amortised cost. Real estate held as a financial investment, non-current assets held for sale, derivative financial instruments, and equity instruments, which are valued at fair value, are particularly excluded from this. They are valued at their fair value.

The balance sheet value is based on the maturity of the corresponding assets and liabilities. Assets and liabilities are classified as short-term if they are expected to be completed or settled within the normal course of the business cycle of the Group. The Consolidated Statement of Comprehensive Income is prepared using the total cost method.

The Consolidated Financial Statements are prepared in euro, the functional and presentation currency of the Group. Unless otherwise stated, all financial information presented in euros is in thousands of euros (TEUR). We would like to point out that differences may occur in the use of rounded amounts and percentages due to commercial rounding.

These Consolidated Financial Statements are prepared on the assumption that the Group will continue as a going concern.

The Consolidated Interim Financial Statements comprise the balance sheet, the statement of comprehensive income (comprising the profit and loss account and other comprehensive income), the statement of changes in equity, the cash flow statement, and the notes.

2.2 Changes in accounting policy - New IFRS standards and interpretations

The new standards and interpretations applicable from 1 January 2021 have no material impact on the Consolidated Financial Statements.

3. Consolidated entity

The Consolidated Interim Financial Statements of Coreo AG include the financial statements of the parent company and the controlled companies (its subsidiaries). The Company gains control if

• it can exercise power of control over the subsidiary,
• its return depends on the performance of the participation andd
• it can influence the level of returns on the basis of its power of control.

During the reporting period, the number of Group companies included in the Consolidated Financial Statements under the full consolidation method and the number of associated companies included under the equity method developed as follows:

			12/31/2020 Additions Divestitures 06/30/2021
Consolidated subsidiaries	12	0	0	12
Companies valued according to the at-equity method	0	0	0	0
Total	12	0	0	12

The balance sheet dates of the subsidiaries included in the Consolidated Financial Statements correspond to the balance sheet date of the parent company. The Financial Statements were prepared in accordance with uniform accounting and valuation principles.

All Group companies prepare their financial statements in euros, the functional currency of the Group.

4.Significant accounting policies

The accounting and valuation methods as well as the notes and disclosures are generally based on the same accounting and valuation principles as those underlying the Consolidated Financial Statements for the financial year 2020. In the period under review, there were no seasonal or economic influences affecting the Coreo Group's business activities.

In applying the accounting and valuation methods presented, the Management Board make judgements, estimates and assumptions with regard to the assets and liabilities contained in the Consolidated Interim Financial Statements, if they are not readily apparent from other sources. Estimates and the underlying assumptions to those estimates are derived, where available, from past experience and after taking all relevant factors into consideration. True values may deviate from the estimates and assumptions.

The assumptions underlying the estimates are regularly reviewed. Changes in estimates, if the change only affects one period, are only considered in that period. If the changes affect the current and subsequent reporting periods, they are considered accordingly in the current period and in the subsequent periods.

The assumptions and estimates considered were mainly made for the following circumstances:

• Valuation of real estate held as a financial investment
• Determination of the recoverable amount for assessing the necessity and amount of impairment losses, in particular on properties reported under "Real estate inventories" and on equity investments
• Recognition and valuation of financial assets
• Recognition and valuation of provisions
• Valuation of risky receivables
• Realisability of deferred tax assets

The assumptions made in the valuation of the real estate portfolios may subsequently prove to be partially or

fully incorrect or there may be unexpected problems or unidentified risks in connection with real estate portfolios. Such developments, which are also possible at short notice, could worsen the earnings situation, reduce the value of the acquired assets, and reduce the revenues generated in the form of current rents. The recoverability of real estate assets is determined primarily by the development of the real estate market and the general economic situation, in addition to property-specific factors. There is a risk that in the event of a negative development of the real estate market or the general economic situation, the valuation methods applied by the Group may have to be adjusted.

5. Notes to the Consolidated Statement of Financial Position - Assets

5.1 Non-current assets

5.1.1 Intangible assets

Intangible assets break down as follows:

in TEUR	06/30/2021	12/31/2020
Acquisition costs
As of 01/01	35	35
Additions	0	0
Divestitures	0	0
As of 06/30 / 12/31	35	35
Depreciation
As of 01/01	-31	-29
Additions	0	-2
Divestitures	0	0
As of 06/30 / 12/31	-31	-31
Book values 06/30 / 12/31	4	4

Intangible assets mainly relate to capitalised expenses for the creation of the homepage, expenses for the acquisition of the "Coreo" brand name and expenses for the acquisition of the "Domus" software.

The acquired "Domus" software will be used to manage the newly acquired properties.

As in the previous year, no impairment on intangible assets was recognised in the current financial year. There are currently no intangible assets with indefinite useful lives. The useful life of intangible assets is between 3 and 10 years.

Research and development expenses were not incurred and were therefore neither recognised nor capitalised as expenses.

Internally generated intangible assets were not capitalised.

5.1.2 Tangible assets

The tangible assets break down as follows:

in TEUR	06/30/2021	12/31/2020
Acquisition costs
As of 01/01	168	138
Additions	0	30
Divestitures	0	0
As of 06/30 / 12/31	168	168
Depreciation
As of 01/01	-120	-96
Additions	-12	-24
Divestitures	0	0
As of 06/30 / 12/31	-132	-120
Book values 06/30 / 12/31	36	48

The tangible assets are office and business equipment depreciated over a period of three to 25 years at the most. The tangible assets also comprise the rights of use resulting from the application of IFRS 16 in the amount of TEUR 31 (previous year: 42 TEUR).

This relates to two leasing contracts for two vehicles. The leasing contracts were concluded in 2019 and 2020 for a period of three years. The Group makes use of the exemption in IFRS 16 for short-term leases (remaining term 12 months) and for low-value leases (underlying asset of minor value). Neither a lease liability nor a right of use is recognised for these leases. Instead, the lease instalments

are recognised as expenses on a straight-line basis over the term of the lease.

Furthermore, this relates to a short-term rental agreement for office premises, for which the exception for shortterm leases was applied. The current sublease agreement for office space has a remaining term of 12 months. The resulting financial obligation amounts to TEUR 46.

No impairment losses on tangible assets were recognised in the current financial year.

5.1.3 Real estate held as a financial investment

Real estate held as a financial investment is recognised at fair value. The fair values developed as follows in the financial year:

in TEUR	06/30/2021	12/31/2020
As of 01/01	54,259	38,502
Additions	1,579	15,156
Divestitures	-508	-246
Reclassification to assets held for sale	-8,425	0
Adjustment of the fair value	609	847
As of 06/30 / 12/31	47,514	54,259

As of 30 June 2021, Coreo did not have any valuation reports prepared, as the Management Board assumes that there have been no material changes in fair value in the first half year 2021. Therefore, the properties are stated at the value determined as of 31 December 2020 plus additions and disposals. The changes in valuation result from the purchase contracts already concluded and the subsequent reclassification of these properties as assets held for sale.

The reclassification to assets held for sale is due to the decision to sell two properties from the Hydra-Hold portfolio and one property from the Mannheim portfolio.

There are no restrictions on the saleability of real estate held as a financial investment within the Group and no contractual obligations to purchase, construct or develop real estate held as a financial investment. In addition, there are no contractual obligations for repairs, maintenance, or improvements.

The real estate held as a financial investment is partially encumbered with collateral for the loans.

In the case of one property in the Hydra portfolio is a right of first refusal secured in the land register in favour of the state capital of Kiel. The City of Kiel is, however, not currently exercising this right of first refusal.

In the case of properties from the Göttingen portfolio which are for sale, the municipality could exercise its statutory right of first refusal under § 24 German Federal Building Code (BauGB) in the event of a sale. For this purpose, the municipality would have to enter into the negotiated sales contract.

5.1.4 Financial assets

The long-term financial assets relate to the following items:

in TEUR	06/30/2021	12/31/2020
Securities	11,810	13,635
Total	11,810	13,635

The long-term financial assets developed as follows:

in TEUR	06/30/2021	12/31/2020
As of 01/01	13,635	11,952
Additions	96	162
Divestitures	-65	0
Positive changes in market value	0	1,521
Negative changes in market value	-1,856	0
As of 06/30 / 12/31	11,810	13,635

Associated companies (At-Equity)

As of 30 June 2021, Coreo does not hold any investments in associated companies.

Securities

Other securities or financial assets in the form of equity

instruments are valued either at fair value with changes in value in other comprehensive income (FVTOCI) or at fair value with changes in value in profit or loss (FVTPL). Coreo holds the following shares and securities:

in TEUR	Seat	06/30/ 2021	12/31/ 2020	Category
MagForce AG	Berlin, Germany	5,367	7,223	FVTOCI
NanoDimension LP	L.P., Cayman Islands	400	400	FVTOCI
Nanosys, Inc.	Milpitas, USA	0	0	FVTOCI
Lumiphore, Inc.	Berkeley, USA	0	0	FVTOCI
Publity St. Martin Tower GmbH	Frankfurt a.M., Germany	5,666	5,731	FVTPL
Other securities		377	281	FVTPL
Total		11,810	13,635

The value of the shares in MagForce AG was reduced by TEUR -1,857 to the fair value on the balance sheet date by TEUR 5,367. The fair value thus corresponds to the stock market price on the balance sheet date. The change in value of the MagForce shares was recognised directly in other comprehensive income.

5.2 Current assets

5.2.1 Real estate inventories

Inventories of TEUR 9,932 (previous year: TEUR 8,918) include assets held for sale in the normal course of business.

On 25 November 2020, a sales contract for the sale of the last property in the Hydra portfolio, which is held for sale and therefore reported under real estate inventories, was concluded. The closing will only take place in the second half of 2021.

Coreo Wiesbaden PE UG & Co. KG acquired two plots of land by notarised purchase agreement dated 21 September and 16 December 2020, which are intended for future redevelopment. The closing took place in the current financial year 2021.

5.2.2 Trade receivables and other assets

Trade receivables and other assets are as follows:

in TEUR	06/30/2021	12/31/2020
Trade receivables	500	591
Tax refund claims	157	187
Other assets	1,476	1,494
Total	2,133	2,272

Trade receivables and other assets are valued at amortised cost. No value adjustment was necessary.

The trade receivables are mainly receivables from rentals. Receivables from rentals are non-interest bearing and are generally overdue. Adjustments are made based on the age structure and depending on whether there are active or former tenants. Adjustments were not required. Therefore, a presentation on the default risk and the expected credit losses for receivables is not necessary.

5.2.3 Financial assets

In the financial year, current tax refund claims amounting to TEUR 157 (previous year: TEUR 187) mainly include receivables from tax overpayments and tax refund claims.

5.2.4 Tax refund claims

The item "Cash and cash equivalents" comprises cash on hand and bank credit balances.

5.2.5 Cash and cash equivalents

The item "Cash and cash equivalents" comprises cash on hand and bank credit balances.

5.2.6 Assets held for sale

Properties held for sale amount to a total of TEUR 9,472 (previous year: TEUR 902).

The addition mainly results from notarised purchase contracts concluded by the balance sheet date for two properties from the Hydra portfolio and for one property from the Mannheim portfolio, which were initially intended to be held for the long term.

Specific sales activities were already initiated, or notarised purchase contracts concluded for these properties, which are expected to lead to a timely sale and/or closing in the second half of 2021. These are properties from the Göttingen portfolio, the Hydra portfolio, and the Mannheim portfolio. The valuation adjustment of the fair values amounts to TEUR 172 as of 30 June 2021. The result from the valuation of properties held for sale is reported in the Consolidated Statement of Comprehensive Income under the item result from the valuation of investment properties.

6.Notes to the Consolidated Statement of Financial Position – Liabilities

6.1 Equity capital

Please refer to the statement of changes in equity (Appendix 4) for the development of equity.

6.1.1 Subscribed capital

As of 30 June 2021, the share capital of Coreo AG is divided into 17,540,460 shares which are all made out to the bearer.

The authorised capital in accordance with the resolution of the General Meeting of 15/07/2019 (Authorised Capital 2019/l) amounts to EUR 6,378,360.00 following a partial utilisation.

6.1.2 Reserves

The capital reserve includes the amount of the proceeds from the issuance of shares which exceeds the nominal value (premium).

6.1.3 Surplus reserve

The reserves include transferred profits from previous financial years.

6.1.4 Result carried forward

The result carried forward includes the accumulated Consolidated Results as well as profits and losses that cannot be reclassified and thus may no longer be considered as income in subsequent reporting periods.

6.1.5 Other comprehensive income

Other comprehensive income includes changes in the value of financial assets in the form of equity instruments valued at Fair Value through Other Comprehensive Income in Other comprehensive income and all adjustments to deferred taxes made in connection with the valuation of these assets. Principally, the other result of EUR -1,828 thousand relates to the changes in value of the participations in MagForce AG.

6.1.6 Non-controlling interests

Non-controlling shares comprise the shareholdings of third parties in the Group companies. There were shares of non-controlling shareholders in the amount of TEUR 55 as of 30 June 2021 (previous year: TEUR 137).

6.2 Non-current liabilities

6.2.1 Other provisions

The long-term provision in the amount of TEUR 6 (previous year: TEUR 6) was formed for the archiving of files and was not discounted due to the minor effect.

6.2.2 Financial liabilities

Coreo took out loans from credit institutions and private investors above all in order to finance property and corporate transactions and the acquisition of properties for specific purposes.

The financial liabilities are composed as follows:

TEUR	Remaining term up to 1 year	Remaining term 1 year to 5 years	Remaining term longer than 5 years	Total
06/30/2021
Amounts due to banks	17,886	5,101	16,147	39,134
Corporate bond	0	0	0	0
Other loan liabilities	0	23,000	0	23,000
Leasing liabilities	22	10	0	32
	17,908	28,111	16,147	62,166
12/31/2020
Amounts due to banks	18,975	3,855	12,749	35,579
Corporate bond	0	0	0	0
Other loan liabilities	0	16,000	0	16,000
Leasing liabilities	21	20	0	41
	18,996	19,875	12,749	51,620

Liabilities to banks are almost completely secured. Real estate liens are mainly granted as collateral. These securities can only be realised by the banks after a material breach of the financing agreement (e.g., breach of the financial covenants).

A loan in the amount of EUR 23 million was taken out with the loan agreement of 7 December 2020 to finance further growth. By 31 December 2020, an amount of EUR 16 million was called. In the current financial year, an additional EUR 7 million was called.

The following shares were pledged to secure the loan:

• Coreo Göttingen AM UG (limited liability)
• Coreo Han AM UG (limited liability)
• Coreo Wubi Residential UG (limited liability) & Co. KG
• Coreo Han UG (limited liability) & Co. KG
• Dritte Coreo Immobilien VVG mbH
• Coreo Göttingen Residential UG (limited liability) & Co. KG

Furthermore, share assets with a book value of TEUR 5,367 as at 30/06/2021 were pledged.

The leasing liabilities refer only to two vehicle leasing contracts.

6.2.3 Deferred taxes

The deferred taxes break down as follows:

TEUR	06/30/2021	12/31/2020
Deferred tax assets
Real estate	217	229
Financial assets	31	4
Total	248	233
Deferred tax liabilities
Real estate	1,329	1,166
Total	1,329	1,166

The change in deferred tax assets breaks down as follows:

TEUR	06/30/2021	2020
As of 01/01	233	116
Recognised in profit or loss	-13	140
Without being recognised in profit or loss	28	-23
As of 06/30 / 12/31	248	233

The change in deferred tax liabilities breaks down as follows:

TEUR	06/30/2021	2020
As of 01/01	1,166	1,816
Recognised in profit or loss	163	-650
Without being recognised in profit or loss	0	0
As of 06/30 / 12/31	1,329	1,166

The deferred tax assets and liabilities result from the valuation of the properties as well as the financial assets. According to current legislation, sales of shares to stock corporations are tax-free in accordance with § 8b KStG (German Corporation Tax Act). Only 5 % are considered as non-deductible operating expenses and are subject to corporation and trade tax. Minor temporary differences arise from the valuation of financial assets due to the 95% tax exemption of any capital gains.

Anticipated impacts of the so-called extended property reduction on domestic trade tax are considered in the valuation of deferred taxes.

As of the balance sheet date 31 December 2020, the corporate income tax loss carryforwards amount to EUR 16.4 million (previous year: EUR 14.8 million) and the trade tax loss carryforwards amount to EUR 16.3 million (previous year: EUR 14.8 million). The tax loss carryforwards can be carried forward for an unlimited period of time. Due to the unforeseeable usability of the tax loss carryforwards, no deferred tax assets were recognised.

6.3 Short-term liabilities

6.3.1 Other provisions

The short-term other provisions are composed as follows:

TEUR	01/01/ 2021	Con sumption	Dis solution	Con tribution	06/30/ 2021
Provisions for staff	31	-8	0	65	88
Supervisory Board's remuneration	14	-14	0	22	22
Annual financial statement and audit	179	-145	0	141	175
General Meeting	28	0	0	14	42
Pending invoices	138	-57	-2	20	99
Total	390	-224	-2	262	426

6.3.2 Liabilities

The short-term liabilities are composed as follows:

TEUR	06/30/2021	12/31/2020
Amounts due to banks	17,886	18,976
Leasing liabilities	22	21
Trade payables	833	1,017
Other current liabilities	473	477
Tax liabilities	536	504
Total	19,750	20,995

Short-term debts have a remaining term of less than twelve months. There are no significant differences between the book value and the fair value of the liabilities due to their short term.

Liabilities to banks are almost completely secured. Real estate liens are mainly granted as collateral. These securities can only be realised by the banks after a material breach of the financing agreement (e.g., breach of the financial covenants). Please also refer to the comments under 6.2.2.

Other liabilities mainly include prepaid expenses and rent deposits.

6.3.3 Tax liabilities

Tax liabilities include obligations from income taxes, sales taxes, and other types of taxes. The tax liabilities in the amount of TEUR 536 (previous year: TEUR 504) mainly relate to gains from the sale of properties.

7. Notes to the Consolidated Statement of Comprehen sive Income

The Consolidated Statement of Comprehensive Income is prepared using the total cost method.

7.1 Revenues from letting and other revenues

Rental income and other income are made up as follows:

TEUR		06/30/2021 06/30/2020
Rental income	1,337	1,060
Operating costs	597	486
Revenues from letting	1,934	1,546
Other revenues	72	2
Total	2,006	1,548

Revenues from letting (rental income and operating costs) is classified as income for a specific period.

7.2 Result from the sale of real estate

The result from the sale of real estate considers the sales proceeds, sales costs and book value disposals of investment properties and land and buildings held for sale as well as real estate inventories.

The result from the sale of real estate is made up as follows:

in TEUR		06/30/2021 06/30/2020
Revenues from the sale of real estate	1,031	5,773
Book value of the real estate sold incl. sales costs	-721	-5,281
Total	310	492

The revenues were generated by the sale of one property from the LÜGE portfolio and by sales from the Mannheim and Göttingen portfolios.

The revenues from the sale of real estate are qualified as time-related revenues.

7.3 Result from the valuation of investment properties

The result from the valuation of real estate held as a financial investment breaks down as follows:

TEUR		06/30/2021 06/30/2020
Changes in value from fair value measurement of real estate	781	0
Total	781	0

The changes in value are structured as follows:

TEUR		06/30/2021 06/30/2020
Change in value Hydra-Portfolio	210	0
Change in value portfolio Bad Köstritz	0	0
Change in value portfolio Mannheim	399	0
Change in value portfolio Bruchsal	0	0
Change in value portfolio Göttingen	172	0
Change in value portfolio Wubi	0	0
Total	781	0

7.4 Other operating revenues

Other operating revenues mainly relates to the following items:

TEUR		06/30/2021 06/30/2020
Income from the release of provisions	2	1
Others	48	18
Total	50	19

7.5 Cost of materials

The cost of materials in the amount of TEUR -1,390 (previous year TEUR -875) includes expenses for operating costs, expenses for maintenance and modernisation as well as other expenses for purchased services.

7.6 Personnel costs

The personnel costs are structured as follows:

TEUR		06/30/2021 06/30/2020
Income from the release of provisions	-458	-430
Others	-54	-62
Total	-512	-492

Personnel expenses include remunerations for the Management Board and for employees. This increase is partly due to the hiring of new employees.

The employees of the company are insured under a company pension scheme as well as under a statutory pension scheme. Current contribution payments are recorded as expenses at the time of payment. There are no other pension commitment.

7.7 Depreciations and impairments

Depreciation and amortisation relate to intangible assets in the amount of TEUR -12 (previous year TEUR -11), property, plant and equipment including the amortisation of the recognised rights of use from leasing contracts.

7.8 Other operating expenses

The following overview shows the composition of the main other operating expenses.

TEUR	06/30/2021 06/30/2020
External services and external work	-55	-66
Room costs	-35	-47
Insurance	-36	-28
Vehicle costs	-13	-10
Travelling expenses	-12	-9
Office costs	-30	-29

Total	-737	-780
Others	-186	-225
Supervisory Board's remuneration	-21	-25
Prior-period expenses	-10	-6
Bank charge costs	-111	-34
Costs for year-end close and auditing	-144	-126
Legal and consulting costs	-79	-160
Repairs, maintenance, and repair work	-4	-9
Further education costs	-1	-6

7.9 Finance income

The finance income for the financial year refers to interest income in the amount of 43 TEUR (previous year: TEUR 105).

7.10 Financial expenses

Financial expenses for the financial year amounted to EUR -1,136 thousand (previous year: TEUR -1,119). This mainly relates to bank loan interest from the financing of the properties.

7.11 Income taxes

The taxes on income and earnings are composed as follows:

TEUR	06/30/2021 06/30/2020
Actual income tax for each	-46	-592
Deferred taxes	-176	950
Total	-222	358

In 2021, current tax expenses amounted to TEUR -46 (previous year: TEUR -592). The actual tax expense mainly results from the sale of real estate.

The deferred tax expense amounts to EUR -176 thousand (previous year: TEUR 950). The deferred tax expense results from the valuation of real estate.

For the financial year 2021, the income tax rate amounts to 31.93 % (previous year: 31.93 %). This is calculated as 15 % corporate income tax, 5.5 % solidarity surcharge and 15 % trade tax. The amount of trade tax depends on the municipal assessment rates. Companies in the legal form of partnerships are subject exclusively to trade tax. The result reduced by trade tax is allocated to the shareholder for corporate income tax purposes.

The effect of the trade tax exemption results in particular from the so-called "extended reduction" of trade income. Those companies that generate their income exclusively from the management of their own real estate have the option of reducing their trade income by this amount, so that in these cases only the corporation tax rate plus solidarity surcharge is effectively applied.

8. Notes to the Group Cash Flow Statement

The Cash Flow Statement was prepared using the indirect method. The Cash Flow Statement is shown in detail in the cash flow statement with regard to their amounts. A distinction was made between operating, investing, and financing activities.

The negative cash flow from operating activities, which was approximately EUR 1.4 million lower than in the previous year, was mainly due to higher interest expenses and payments for investments in property inventories.

The negative cash flow from investing activities, which was approximately EUR 12 million lower than in the previous year, resulted from lower investments in investment property.

The positive cash flow from financing activities results mainly from taking out new loans to finance planned property investments.

9. Other information

9.1.1 Further notes on financial instruments

Valuation of financial instruments

Cash and cash equivalents, trade receivables and other receivables regularly have short residual terms. Therefore, their book values approximate fair value as of the balance sheet date.

The fair value of investments and other securities (financial assets) valued at Fair Value through Other Comprehensive Income in the form of equity instruments is determined either on the basis of quoted market prices for identical assets or liabilities in active markets (level 1 of the valuation hierarchy level under IFRS 13) or on the basis of parameters for which either directly or indirectly derived quoted prices are available in an active market (level 2 of the measurement hierarchy level under IFRS 13).

Trade payables and other liabilities mainly have short remaining terms. Therefore, the carrying amounts approximate fair values. The fair values of interest-bearing loans are determined as the present value of the payments associated with the liabilities based on market interest rates. The carrying amounts approximate fair values.

The market value was thus determined on the basis of parameters for which either directly or indirectly derived listed prices are available on an active market (level 2 of the valuation hierarchy in accordance with IFRS 13). The levels of the fair value hierarchy in accordance with IFRS 7 in conjunction with IFRS 13 are described below:

• Level 1: quoted market prices for identical assets or liabilities in active markets,
• Level 2: information other than quoted market prices that is observable directly (e.g., prices) or indirectly (e.g., derived from prices), and
• Level 3: Information for assets and liabilities that are not based on observable market data.

The carrying amounts of financial instruments by valuation category and the fair value hierarchy levels are as follows:

06/30/2021

TEUR	Fair value hierarchy	Fair value (FVTPL)	Fair value (FVOCI without recycling)	Amortised cost (AC)	Valuation acc. to IFRS 16	Balance sheet disclosure
Long-term assets
Financial assets	1	-	5,767	-	-	5,767
Other securities	2	6,043	-	-	-	6,043
Current assets
Trade receivables	2	-	-	500	-	500
Other assets	2	-	-	1,476	-	1,476
Other securities	1	0	-	978	-	978
Tax refund claims	2	-	-	157	-	157
Means of payment	1	-	-	10,875	-	10,875
Total financial assets		6,043	5,767	13,986	-	25,796
Non-current liabilities
Amounts due to banks	2	-	-	21,248	-	21,248
Other loan liabilities	2	-	-	23,000	-	23,000
Other current liabilities	-	-	-	657	-	657
Leasing liabilities	2	-	-	-	10	10
Short-term liabilities
Amounts due to banks	2	-	-	17,886	-	17,886
Other loan liabilities	2	-	-	-	-	0
Leasing liabilities	2	-	-	-	22	22
Trade payables	2	-	-	833	-	833
Other current liabilities	2	-	-	473	-	473
Tax liabilities	2	-	-	536	-	536
Total financial liabilities		-	-	64,633	32	64,665

12/31/ 2020

TEUR	Fair value hierarchy	Fair value (FVTPL)	Fair value (FVOCI without recycling)	Amortised cost (AC)	Valuation acc. to IFRS 16	Balance sheet disclosure
Long-term assets
Financial assets	1	-	7,623	-	-	7,623
Other securities	2	6,012	-	-	-	6,012
Current assets
Trade receivables	2	-	-	591	-	591
Other assets	2	-	-	1,494	-	1,494
Other securities	1	-	-	1,017	-	1,017
Tax refund claims	2	-	-	187	-	187
Means of payment	1	-	-	3,276	-	3,276
Total financial assets		6,012	7,623	6,565	-	20,200
Non-current liabilities
Amounts due to banks	2	-	-	16,603	-	16,603
Other loan liabilities	2	-	-	16,000	-	16,000
Other current liabilities	2	-	-	-	20	20
Short-term liabilities
Amounts due to banks	2	-	-	18,975	-	18,975
Other loan liabilities	2	-	-	-	-	0
Leasing liabilities	2	-	-	-	21	21
Trade payables	2	-	-	1,017	0	1,017
Other current liabilities	2	-	-	477	0	477
Tax liabilities	2	-	-	504	0	504
Total financial liabilities		-	-	53,576	41	53,617

9.2 Segment reporting

IFRS 8 requires a "management approach" presenting information regarding individual segments on the same basis used for internal reporting to the Board of Managing Directors. Coreo is managed as a single-segment entity. As a result, a reportable segment has been identified pursuant to IFRS 8, which comprises the Group's operating activities. The reporting for this reportable segment corresponds to the internal reporting to the chief operating decision-maker. The chief operating decision-maker has the responsibility for decisions regarding the allocation of resources to the operating segments and for reviewing their performance. The chief operating decision-maker is the Board of Managing Directors.

9.3 Contingent liabilities and other financial commitments

Contingent liabilities exist for matters for which Coreo AG, and its subsidiaries provided guarantees and letters of comfort in favour of third parties. The terms are limited to an agreed time.

As of 30 June 2021, there are guarantees in the amount of TEUR 7,461 (previous year: 7,251 TEUR) and letters of comfort in the amount of 14,294 TEUR (previous year: TEUR 11,600).

There are no other significant financial obligations, as in the previous year.

As of the balance sheet date, there were no further contingent liabilities or financial obligations to third parties.

9.4 Significant events after the balance sheet date

With the purchase agreement dated 7 July 2021, Vierte Coreo Immobilien VVG mbH acquired two production sites as well as the administrative headquarters of a well-known German automotive supplier listed on the stock exchange. Two manufacturing sites and the administrative headquarters were leased from the seller as part of the sale and lease back transaction. The triple net leases have a term of 10 and 3 years. In addition, there are renewal options of three times five years and three times one year, respectively. The leases generate annual rental income of more than TEUR 700 for Coreo.

Coreo AG concluded a purchase contract on 14 July 2021 for the acquisition of a real estate portfolio consisting of 1,341 residential and 15 commercial and other units with a rental area of approx. 73,900 m² by way of a share deal. The company acquired 89.9% of the German limited liability company (GmbH) shares in the portfolio-holding company as part of the transaction.

The closing of the real estate portfolio will take place in 2022.

We are not aware of any other significant events after the balance sheet date.

9.5 Related party disclosures

Companies and persons that have the ability to control the Coreo Group or exercise significant influence over its financial and operating policies are considered as related companies and persons. The existing control relationships were considered when determining the significant influence that related persons or related companies of the Coreo Group have on the financial and business policy.

Related parties of the Group include the members of the Board of Managing Directors and Supervisory Board and the executive bodies of subsidiaries, in each case including their close family members, as well as those companies over which members of the Board of Managing Directors or Supervisory Board of the company or their close family members can exercise significant influence or in which they hold a significant proportion of voting rights. In addition, related companies include those companies with which the company forms an association or in which it holds an equity interest that enables it to exert a significant influence on the business policy of the associated company as well as on the main shareholders of the company including its affiliated companies.

The main shareholder, Apeiron Investment Group Ltd, Malta, held a 49% interest in the Company as of 30 June 2021. At the same time, the other major shareholders, BF Holding GmbH, Kulmbach, and its wholly owned subsidiary, GfBk Gesellschaft für Börsenkommunikation mbH, together held 20% of Coreo AG.

The Company was informed after 30 June 2021 in accordance with § 20 (1) and (3) of the German Stock Corporation Act (AktG) that Apeiron Investment Group Ltd. had reduced its shareholding to below 25% by way of sale to FLORA S.A., Luxembourg. FLORA S. A., Luxembourg thus holds more than 25% of the shares in Coreo AG.

The Company does not know of any other changes that have taken place.

Service and loan contracts exist within the Group. The performances between the companies are eliminated within the scope of the consolidation.

In the first half year 2021, there were no transactions with related parties.

9.6 Corporate bodies

Members of the parent company's Managing Board

The Managing Board comprises:

• Mr Marin N. Marinov, Diplom-Ingenieur (graduate engineer), Hofheim

Members of the Supervisory Board of the parent company

The members of the Supervisory Board are:

• Mr Stefan Schütze, lawyer (LL.M. in Mergers and Acquisitions), Frankfurt am Main, (chairman),
• Mr Axel-Günter Benkner, Diplom-Ökonom (graduate economist) and Diplom-Kaufmann (business graduate), Nidderau (vice Chairman),
• Mr Dr. Friedrich Schmitz, Kaufmann, Munich of Bavaria

Frankfurt am Main, 31 August 2021

The Board of Managing Directors

Marin N. Marinov

Interim financial statement (HGB) of Coreo AG as of 06/30/2021

Balance sheet as of 06/30/2021 (HGB)

assets

in EUR	06/30/2019	12/31/2020
A. Fixed assets
I. Intangible assets
1. Concessions, industrial and similar rights and assets, and licenses to such rights and assets	3,799.01	4,149.00
II. Tangible assets
1. Property, plant and equipment	4,929.83	6,092.00
III. Financial assets
1. Shares in affiliated companies	950,000.00	950,000.00
2. Loans to affiliated companies	1,290,875.01	1,270,750.00
3. Investments	12,165,539.36	13,402,188.59
	14,406,414.37	15,622,938.59
B. Current assets
I. Inventories
1. Finished goods and merchandise	5,278,355.64	5,457,926.79
2. Advance payments	23,800.00	0.00
	5,302,155.64	5,457,926.79
II. Receivables and other assets
1. Accounts receivables	47,480.73	110,923.13
2. Amounts due from affiliated companies	24,464,005.01	24,587,705.88
3. Other assets	1,322,304.85	1,309,899.97
	25,833,790.59	26,008,528.98
III. Cash and bank balances	8,737,493.67	2,259,685.08
C. Deferred income	803,114.77	901,654.32
	55,091,697.88	50,260,974.76

Balance sheet as of 06/30/2021 (HGB) liabilities

in EUR	06/30/2021	12/31/2020
A. Equity
I. Subscribed capital	17,540,460.00	17,540,460.00
II. Capital reserves	24,096,524.86	24,096,524.86
III. Retained earnings	12,544,585.38	12,544,585.38
IV. Loss carried forward	-25,264,099.13	-25,278,054.09
V. Net loss/income	-1,871,031.90	13,954.96
B. Accurals
1. Tax provisions	1,157.37	1,157.37
2. Other provisions	253,695.00	240,515.92
	254,852.37	241,673.29
C. Liabilities
1. Liabilities due to banks	4,369,107.57	4,619,077.57
- thereof with a remaining term of up to one year: EUR 4,369,107.57 (EUR 4,619,029.97)
3. Trade payables	123,725.82	92,662.27
- thereof with a remaining term of up to one year: EUR 123,725.82 (EUR 94,235.23)
4. Liabilities to affiliated companies	245,191.94	240,253.38
- thereof with a remaining term of up to one year: EUR 0.00 (EUR 9,105.23)
- thereof with a remaining term of more than one year: EUR 245,191.94 (EUR 231,148.15)
5. Other current liabilities	23,051,766.35	16,147,909.33
- thereof for taxes: EUR 19,873,41 (EUR 95,710,64)
- thereof for social security: EUR 994.30 (EUR 1,795.33)
- thereof with a remaining term of up to one year: EUR 51,766.35 (EUR 148,744.63)
- thereof with a remaining term of more than one year: EUR 23,000,000.00 (EUR 16,000,000.00)
	27,789,791.68	21,099,902.55
D. Deferred income	614.62	1,927.81
	55,091,697.88	50,260,974.76

Income statement (HGB) 01/01/2021 to 06/30/2021

in EUR	06/30/2021	12/31/2020
1. Sales revenues	371,132.85	1,369,254.98
2. Other operating income	406,768.13	123,099.77
3. Cost of materials	-408,561.56	-263,164.62
4. Personal costs
a) Wages and salaries 345.068,04	-457,973.27	-926,965.37
b) Social charges and costs for pension and other benefits of which for pensions - thereof for pensions: EUR -2,640.00 (EUR -2,640.00) 24.992,41	-54,064.09	-123,038.89
	-512,037.36	-1,050,004.26
5. Depreciation
a) of intangible assets and property, plant and equipment 345.068,04	-1,512.16	-7,183.85
b) on current assets in as far as such exceed the usual depreciations in the corporation	0.00	-672,727.40
	-1,512.16	-679,911.25
6. Other operating costs	-444,147.03	-1,080,520.72
7. Income from shareholdings	30,527.44	1,847,378.87
8. Other expenses and similar earnings - thereof from affiliated companies EUR 581,441.40 (EUR 1,541,041.62)	624,853.31	1,668,391.76
9. Amortization of financial assets and securities held as current assets - thereof unplanned depreciation: EUR -1,208,920.09 (EUR -285,067.56)	-1,208,920.09	-285,067.56
10. Interests and similar expenses	-729,100.61	-1,629,841.05
11. Taxes on income and profit	-4.82	-5,087.96
12. Result after taxes	-1,871,001.90	14,527.96
13. Other taxes	-30.00	-573.00
14. Net loss / profit	-1,871,031.90	13,954.96

Interim financial statement (HGB)

Appendix of the half-year financial statement as of 06/30/2021 (HGB)

General information

Coreo AG has its headquarters in Frankfurt am Main. The company is registered in the commercial register of the district court Frankfurt am Main under HR B 74535.

The present annual financial statement was created in accordance with par. 242 et seq. and 264 et seq. HGB (German Commercial Code) as well as the applicable provisions of the AktG (German Companies Act).

The company is a small-sized capital company in terms of § 267, clause 1 HGB (German Commercial Code). The financial reliefs for a small-sized capital company was partly claimed.

For the profit and loss statement, the total cost method was created according to § 275 para. 2 HGB. The indication of individual balance sheet items was adjusted to the requirements of the company according to par. 265 section 6 HGB.

Accounting and valuation methods

The intangible transfers assets acquired against payment are accounted at acquisition costs and are reduced by scheduled straight-line depreciation over their expected useful lives of 3 to 5 years.

Tangible assets are shown at acquisition cost and, if depreciable, reduced by scheduled straight-line depreciation over their useful lives of 3 to 5 years.

Low-value property items with a value of 800.00 euro are fully depreciated in the year of acquisition.

The financial assets are valued at cost or at fair value if lower. Extraordinary depreciations are only carried out for financial assets because a lasting reduction in value is to be expected. Write-ups are made if the reason for previous write-downs no longer applies.

Receivables and other assets are normally recognised at the lower of nominal value or fair value at the balance sheet date.

Cash and accounts with credit institutions are shown at their fair value.

The other provisions are rated in a settlement amount which is necessary in accordance with prudent business principles according to par. 253 section 1, sentence 2 HGB and take into account all recognisable risks and uncertain obligations. In so far as it is necessary, future cost increases are taken into account. In case of provisions with a remaining time to maturity of more than one year, a discounting according to par. 253 section 2 HGB is carried out.

Liabilities are shown on the liabilities side at their settlement value.

Receivables and liabilities denominated in foreign currencies are recognised with the corresponding average spot exchange rate at the time of the transaction. Foreign-currency denominated assets and liabilities with a remaining time to maturity of one year or less, are recognised according to par. 256a sentence 2 HGB without consideration of the acquisition cost and realization principle at the average spot exchange rate at the reporting date. In case of a remaining time to maturity of more than one year, the average spot exchange rate at the reporting date according to par. 256a sentence 1 HGB is only applied if that rate for assets is lower and for liabilities higher than the corresponding current rate at the date of the business transaction.

Interim financial statement (HGB)

Disclosures and explanations with regard to items of the balance sheet

Fixed assets

Development of the fixed assets is shown in the fixed assets movement schedule.

Disclosures of shareholdings:	Capital share	Equity	Result	Year
Erste Coreo Immobilien VVG mbH, Frankfurt a. M., Germany	100 %	-25 TEUR	7 TEUR	2020
Zweite Coreo Immobilien VVG mbH, Frankfurt a. M., Germany	100 %	566 TEUR	72 TEUR	2020
Dritte Coreo Immobilien VVG mbH, Frankfurt a. M., Germany	100 %	259 TEUR	97 TEUR	2020
Vierte Coreo Immobilien VVG mbH, Frankfurt a. M., Germany	100 %	17 TEUR	-2 TEUR	2020
Coreo Göttingen AM UG, Frankfurt a. M., Germany	100 %	0 TEUR	0 TEUR	2020
Coreo Solo AM UG, Frankfurt a. M., Germany	100 %	1 TEUR	0 TEUR	2020
Coreo Han, AM UG Frankfurt a. M., Germany	100 %	3 TEUR	1 TEUR	2020
Coreo Solo UG & Co. KG, Frankfurt a. M., Germany	100 %	1 TEUR	346 TEUR	2020
Coreo Han UG & Co. KG, Frankfurt a. M., Germany		100 % -4,747 TEUR	-1,991 TEUR	2020
Coreo Göttingen Residential UG & Co. KG Frankfurt a.M., Germany	94 %	9 TEUR	1,921 TEUR	2020
Coreo Wubi Residential UG & Co. KG* Frankfurt a.M., Germany	100 %	-221 TEUR	-210 TEUR	2020
Coreo Wiesbaden PE UG & Co. KG*, Frankfurt a. M., Germany	100 %	-36 TEUR	-37 TEUR	2020

* The company was founded in 2020

Assets analysis (HGB) Development of fixed assets

			Cost of acquisition/manufacture					Depreciation			Carrying value
in EUR	01/01/2021	Additions	Reclassification	Divestures	06/30/2021	01/01/2021	Additions	Reclassification	Divestures	06/30/2021	06/30/2021	12/31/2020
I. Intangible assets
1. Acquired conces sions, commercial property rights and similar rights and values as well as licences at such rights and values	34,569	0	0	0	34,569	30,420	350	0	0	30,770	3,799	4,149
II. Tangible assets
1. Factory and office equipment	102,482	0	0	0	102,482	96,390	1,162	0	0	97,552	4,930	6,092
2. Advanve payments made	0	0	0	0	0	0	0	0	0	0	0	0
	102,482	0	0	0	102,482	96,390	1,162	0	0	97,552	4,930	6,092
III. Financial assets
1. Shares in related companies	950,000	-	0	0	950,000	0	0	0	0	0	950,000	950,000
2. Loans to companies with which a shareholding relationship exists	1,270,750	20,125	0	0	1,290,875	0	0	0	0	0	1,290,875	1,270,750
3. Investments held
as fixed assets	15,243,270	37,500	0	65,229	15,215,541	1,841,082	1,208,920	0	0	3,050,002	12,165,539	13,402,189
	17,464,020	57,625	0	65,229	17,456,416	1,841,082	1,208,920	0	0	3,050,002	14,406,414	15,622,939
	17,601,071	57,625	0	65,229	17,593,467	1,967,892	1,210,432	0	0	3,178,324	14,415,143	15,633,180

Interim financial statement (HGB)

Receivables and other assets

All receivables and other assets have a residual term of up to one year.

Stockholder equity

As of 31 December 20120, the share capital of Coreo AG is divided into 17,540,460 shares which are all made out to the bearer.

The authorised capital in accordance with the resolution of the General Meeting of 15/07/2019 (Authorised Capital 2019/l) amounts to EUR 6,378,360.00 following a partial utilisation.

Provisions

The other provisions principally concern provisions for outstanding holidays and personnel costs, costs for annual financial statements and legal advice and costs for the Annual General Meeting.

Liabilities

in TEUR	Total	Remaining term up to 1 year	Remaining term 1 to 5 years	Remaining term over 5 years
06/30/2021
Liabilities due to banks	4,369	4,369	0	0
Trade payables and other liabilities	124	124	0	0
Liabilities to affiliated companies	245	245	0	0
Other liabilities	23,052	52	23,000	0
	27,790	4,790	23,000	0
12/31/2020
Liabilities due to banks	4,619	4,619	0	0
Trade payables and other liabilities	94	94	0	0
Liabilities to affiliated companies	240	240	0	0
Other liabilities	16,149	149	16,000	0
	21,102	5,102	16,000	0

Another loan in the amount of EUR 23 million was taken out with the loan agreement of 7 December 2020 to finance further growth. By 30 June 2021, an amount of EUR 23 million was called.

To secure the loan, the following shares were pledged:

• Coreo Göttingen AM UG (limited liability)
• Coreo Han AM UG (limited liability)
• Coreo Wubi Residential UG (limited liability) & Co. KG
• Coreo Han UG (limited liability) & Co. KG
• Dritte Coreo Immobilien VVG mbH
• Coreo Göttingen Residential UG (limited liability) & Co. KG

In addition, the bank account of Coreo AG, which is used for the purposes of this loan agreement, was pledged. Furthermore, share assets with a book value of TEUR 5,367 as at 30 June 2021 were pledged.

Disclosures and explanations with regard to items of the profit and loss statement

Other operating revenues

Other operating income mainly comprises other non-cash compensation and payments for indemnification.

Other operating charges

Other operating expenses primarily relate to external services, occupancy costs, legal and consulting fees, additional costs of monetary transactions, and costs for the annual financial statements.

Other information

Contingent liabilities

A default guarantee for Dritte Coreo Immobilien VVG mbH exists vis-à-vis Volksbank Neckartal eG to secure the loan liability in the amount of TEUR 1,830 from the financing of the acquisition of real estate. Coreo AG can only be called upon from this if it is certain that the call on Dritte Coreo Immobilien VVG mbH, and possibly also the realisation of all its securities, does not promise success.

Coreo AG issued a letter of comfort for Coreo Han UG (limited liability) & Co. KG to Volksbank Rhein-Lahn-Limburg eG to secure the loan liability of TEUR 14,294 from the financing of the property acquisition. In the letter of comfort, Coreo AG undertakes vis-à-vis Volksbank Rhein-Lahn-Limburg eG to enable its subsidiary, Coreo Han UG (limited liability) & Co. KG, to meet its obligations under the loan at all times.

Interim financial statement (HGB)

On 23 April 2020, Coreo AG issued a directly enforceable guarantee in the amount of TEUR 2,720 to Volksbank Greven eG in favour of Coreo Wubi Residential UG (limited liability) & Co. KG to secure two loan liabilitys of TEUR 2,631 from the financing of the residential properties Wuppertal and Bielefeld.

On 27 April 2020, Coreo AG issued an directly enforceable guarantee in the amount of TEUR 750 to Volksbank Greven eG in favour of Zweite Coreo Immobilien VVG mbH (to secure a loan liability of TEUR 2,106 from the financing of the property.

On 20 October and 29 December 2020, Coreo AG issued a directly enforceable guarantee in the amount of TEUR 2,250 to Volksbank Neckertal eG in favour of Coreo Wiesbaden PE UG (limited liability) & Co. KG to secure a loan liability of TEUR 2,165 from the financing of two plots of land.

As of the balance sheet closing date, the Company did not have any other liability obligations to third parties.

Average number of employees during the financial year

The average number of employees in the company during the financial year was 11.

Corporate bodies

Members of the Board of Directors were in the business year the following person:

• Mr Marin N. Marinov, Diplom-Ingenieur (Graduate Engineer), Hofheim.

In the business year 2021, the following persons were member of the Supervisory Board:

• Mr Stefan Schütze, lawyer (LL.M. in Mergers and Acquisitions), Frankfurt am Main, (Chairman),
• Mr Axel-Günter Benkner, Diplom-Ökonom (graduate economist) and Diplom-Kaufmann (business graduate), Nidderau (Vice Chairman),
• Dr Friedrich Schmitz, Kaufmann (merchant), Munich.

Frankfurt am Main, 31 August 2021

Marin N. Marinov The Chairman

Coreo AG Grüneburgweg 18 60322 Frankfurt am Main Germany

P +49 (0) 69 . 2193 96 0 F +49 (0) 69 . 2193 96 150 info@coreo.de