Annual Report (ESEF) • Jun 7, 2022
Preview not available for this file type.
Download Source File3157000YTVO4TN65UM142021-01-012021-12-31iso4217:EUR3157000YTVO4TN65UM142019-01-012020-12-313157000YTVO4TN65UM142020-01-012020-12-31iso4217:EURxbrli:shares3157000YTVO4TN65UM142021-12-313157000YTVO4TN65UM142020-12-313157000YTVO4TN65UM142021-01-01ifrs-full:IssuedCapitalMember3157000YTVO4TN65UM142021-01-01ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember3157000YTVO4TN65UM142021-01-01ifrs-full:SharePremiumMember3157000YTVO4TN65UM142021-01-01ifrs-full:RevaluationSurplusMember3157000YTVO4TN65UM142021-01-01ifrs-full:RetainedEarningsMember3157000YTVO4TN65UM142021-01-01ifrs-full:EquityAttributableToOwnersOfParentMember3157000YTVO4TN65UM142021-01-01ifrs-full:NoncontrollingInterestsMember3157000YTVO4TN65UM142021-01-013157000YTVO4TN65UM142021-01-012021-12-31ifrs-full:RetainedEarningsMember3157000YTVO4TN65UM142021-01-012021-12-31ifrs-full:EquityAttributableToOwnersOfParentMember3157000YTVO4TN65UM142021-01-012021-12-31ifrs-full:RevaluationSurplusMember3157000YTVO4TN65UM142021-01-012021-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember3157000YTVO4TN65UM142020-01-012021-12-31ifrs-full:IssuedCapitalMember3157000YTVO4TN65UM142021-01-012021-12-31ifrs-full:SharePremiumMember3157000YTVO4TN65UM142021-01-012021-12-31ifrs-full:NoncontrollingInterestsMember3157000YTVO4TN65UM142021-12-31ifrs-full:IssuedCapitalMember3157000YTVO4TN65UM142021-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember3157000YTVO4TN65UM142021-12-31ifrs-full:SharePremiumMember3157000YTVO4TN65UM142021-12-31ifrs-full:RevaluationSurplusMember3157000YTVO4TN65UM142021-12-31ifrs-full:RetainedEarningsMember3157000YTVO4TN65UM142021-12-31ifrs-full:EquityAttributableToOwnersOfParentMember3157000YTVO4TN65UM142018-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember3157000YTVO4TN65UM142018-12-31ifrs-full:SharePremiumMember3157000YTVO4TN65UM142018-12-31ifrs-full:RevaluationSurplusMember3157000YTVO4TN65UM142018-12-31ifrs-full:RetainedEarningsMember3157000YTVO4TN65UM142018-12-31ifrs-full:EquityAttributableToOwnersOfParentMember3157000YTVO4TN65UM142018-12-31ifrs-full:NoncontrollingInterestsMember3157000YTVO4TN65UM142018-12-313157000YTVO4TN65UM142019-01-012020-12-31ifrs-full:RetainedEarningsMember3157000YTVO4TN65UM142019-01-012020-12-31ifrs-full:EquityAttributableToOwnersOfParentMember3157000YTVO4TN65UM142019-01-012020-12-31ifrs-full:NoncontrollingInterestsMember3157000YTVO4TN65UM142019-01-012020-12-31ifrs-full:RevaluationSurplusMember3157000YTVO4TN65UM142019-01-012020-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember3157000YTVO4TN65UM142019-01-012020-12-31ifrs-full:SharePremiumMember3157000YTVO4TN65UM142019-01-012019-12-31ifrs-full:IssuedCapitalMember3157000YTVO4TN65UM142019-12-31ifrs-full:IssuedCapitalMember3157000YTVO4TN65UM142020-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember3157000YTVO4TN65UM142020-12-31ifrs-full:SharePremiumMember3157000YTVO4TN65UM142020-12-31ifrs-full:RevaluationSurplusMember3157000YTVO4TN65UM142020-12-31ifrs-full:RetainedEarningsMember3157000YTVO4TN65UM142020-12-31ifrs-full:EquityAttributableToOwnersOfParentMember3157000YTVO4TN65UM142020-12-31ifrs-full:NoncontrollingInterestsMember3157000YTVO4TN65UM142019-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember3157000YTVO4TN65UM142019-12-31ifrs-full:SharePremiumMember3157000YTVO4TN65UM142019-12-31ifrs-full:RevaluationSurplusMember3157000YTVO4TN65UM142019-12-31ifrs-full:RetainedEarningsMember3157000YTVO4TN65UM142019-12-31ifrs-full:EquityAttributableToOwnersOfParentMember3157000YTVO4TN65UM142019-12-31ifrs-full:NoncontrollingInterestsMember3157000YTVO4TN65UM142019-12-313157000YTVO4TN65UM142020-01-012020-12-31ifrs-full:RetainedEarningsMember3157000YTVO4TN65UM142020-01-012020-12-31ifrs-full:EquityAttributableToOwnersOfParentMember3157000YTVO4TN65UM142020-01-012020-12-31ifrs-full:NoncontrollingInterestsMember3157000YTVO4TN65UM142020-01-012020-12-31ifrs-full:RevaluationSurplusMember3157000YTVO4TN65UM142020-01-012020-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember3157000YTVO4TN65UM142020-01-012020-12-31ifrs-full:SharePremiumMember3157000YTVO4TN65UM142019-01-012020-12-31ifrs-full:IssuedCapitalMember3157000YTVO4TN65UM142020-12-31ifrs-full:IssuedCapitalMember3157000YTVO4TN65UM142019-01-013157000YTVO4TN65UM142020-01-01 CTP 2021 Annual Report We Are PARK MAKERS IT’s what we do ... Parkmaking is our passion. We are on the ground, with the local know-how to get things done. We build vibrant business communities for people: our clients, their employees, and the communities where we work and live. And we do it green, with solar power, forest conservation, and a vision for the future. Because at CTP, we do care. 4 200 Corporate Governance 200 Group Level Structure 214 Risk Management 220 Meet the Board 222 Governance Policies 227 Audit Committee Report 228 Remuneration Report 244 CTLife 82 2021 in Review 82 Strategic Operational Delivery 96 Delivering Sustainability 106 Strong Financial Performance 112 The CTP Portfolio 118 Czech Republic 138 Romania 152 Hungary 164 Slovakia 174 Serbia 180 Poland 186 Bulgaria 192 Netherlands 198 Austria 257 Financial Statements 260 Consolidated Financial Statements 325 Company Financial Statements 341 Independent Auditor’s Report 356 Appendices 358 Appendix A: Property List 367 Appendix B: Five Bulding Types 370 Appendix C: EPRA Financial Performance Metrics 374 Appendix D: EPRA Sustainability Performance Measures 376 Appendix E: Principal Risk 378 Appendix F: CTP Company Structure 380 Appendix G: Glossary of Terms 382 Appendix H: Disclaimer CONTENTS 2 Introduction 12 Executive Summary 12 Big Numbers 2021 14 2021 Highlights in Review 16 CEO and CFO Review 21 Investor Q&A 22 Letter from the Chair of the Board 24 Value Proposition 26 CTP Development Story 68 Where We Operate 70 Our Market 76 Our Business Model 78 Business Strategy annual report 2021 This ile is a smaller-sized copy of the 2021 Annual Report of CTP N.V. in the European single electronic reporting format (ESEF) as speciied in the RTS on ESEF (Regulation (EU) 2019/815). The original ESEF version published on March 8, 2022 of the 2021 Annual Report is available at https://www.ctp.eu/investors/inancial-reports/. Your Growth. OUR Future. MissionIntroduction 2 CTP is continental Europe’s largest developer, owner and manager of logistics and industrial real estate by gross lettable area (GLA). Our network of strategically located CTParks and prime land bank is ideal for the development of industrial and logistics assets and spans ten countries from the North Sea to the Black Sea. 3 LEADING market position 1 We are long-term market leaders in our Core Markets, with the vision to grow based on our track record of success. • We’ve built our leading reputation and estab- lished market position over the last 23 years. • Thanks to our irst-mover advantage and expertise, we’ve built a dominant market share and enviable track record by securing key strategic industrial and logistics locations across central and eastern Europe (CEE). • Our 7.6 million sqm investment portfolio boasts a roster of more than 750 international clients. Over 80% of our business is repeat business, which un derpins our proitable tenant-led growth strategy. • To meet our customer's expansion, we have as sembled a 17.8 million sqm land bank, 60% of which is situated within or adjacent to our established CTParks. This land bank provides the potential to double the size of CTP’s investment portfolio. MissionIntroduction 4 MissionIntroduction 6 Vertically integrated platform 2 Our integrated full-service operating platform and long-term strategy is a key diferentiator and driver of our success. • Over 500 dedicated in-house specialists situ- ated in our local markets deliver CTP clients a unique, full-service concept—from location search to im proving sustainability credentials. • Our entrepreneurial culture enables agile and e fective decision making, which allows us to respond swiftly to our clients’ needs as well as identify and execute opportunities before others. • We develop and acquire high-quality, sustain- able assets to hold and operate over the long term. This aligns our interests with our clients and the com munities surrounding our assets, driving value for all stakeholders. MissionIntroduction Our dynamic sector and geographical market play a critical role in global supply chains. • Long-term structural drivers from the rise in e-commerce to supply chain optimisation and re-shoring underpin occupational demand for our well-located, high-quality industrial and logistics assets. • Strong occupational demand is coupled with constrained supply in key markets, which support attractive market fundamentals and rental growth. • Global occupiers are drawn to the CEE region for its specialist and afordable labour force, its stra tegic geographical location in global supply chains, as well as its proximity to densely populated and aluent neighbour- ing western economies. • Our core region of the CEE provides a growth opportunity due to its attractive GDP outlook, as domestic e-commerce penetration catches up with more mature western economies. Stand-out sector 3 8 9 10 MissionIntroduction Our capital structure, supports attractive, sustainable returns. • We operate from a position of inancial strength, with insightful and disciplined allocation of capital and proitable develop- ment, whereby we deliver projects at a highly attractive Yield on Cost of over 10%. • While maintaining sound leverage with a net LTV of 42.8%, our active inancing strategy has resulted in a sector-leading Average Cost of Debt of 1.2% and has extended the maturity of our debt proile. • Beneiting from an Investment Grade Credit Rating and strong balance sheet, we have access to a diverse range of capital to support our growth ambitions. Efficient and effective capital 4 11 7.5 Market Capitalisation per year-end 2021 EUR billion 11.0% Yield on Cost 3.4 IG Bonds outstanding under EUR 8 EMTN Program EUR billion 5.6% EPRA Topped-up Net Initial Yield 1.2% AVG Cost of Debt 1,025.9 Net Profit EUR million +306% 7.6 Income-Producing Portfolio EUR billion +41% Annualised Rental Income 437 EUR million +27% 12 Big Numbers 2021 Executive Summary FY Financial Highlights €18.70 per share compared to IPO price on 25 March 2021: €14.00 31 Dec. 2020: €344 mln 31 Dec. 2020: 11.6% 31 Dec. 2020: €1.0 31 Dec. 2020: €5.4 bln 31 Dec. 2020: 6.2% 2020: €252.5 mln 31 Dec. 2020: 2.0% #1 Industrial Developer in CEE >125 CTParks 27.5% Market Share in Core Markets 95% Occupancy 8.0 Gross Lettable Area (AuM) million SQM 17.8 Controlled Land bank million SQM >750 TENANTS 6.7 WAULT YEARS >520 Full-time Employees (FTE) SCOPE I & II CARBON negative in 2021 46% / 54% diversity: female to male FTE 100% Certified BREEAM buildings (effectively) 835,000 Acquisitions of Income Producing Assets SQM 31 Dec. 2020: 6.3 mln sq m 31 Dec. 2020: 23.9% 31 Dec. 2020: 183 k sq m 31 Dec. 2020: 94% 31 Dec. 2020: 394 31 Dec. 2020: 12.6 mn sqm 31 Dec. 2020: 6.0 years 13 Operational Highlights 14 Lease extension at Bucharest West (Romania) with the Group’s existing client, Network One Distribution. 12,000 sqm facility at CTPark Bucharest North (Romania), let to the Group’s client Rohlik Group, one of Europe’s leading online grocery delivery services. 70,000 sqm warehouse let to Loxxess at CTPark Bor (Czech Republic) for the central storage of drugstore goods for German multinational chain dm-drogerie markt. 60,000 sqm largely automat- ed warehouse for fast-growing German e-commerce company Zooplus at CTPark Bor (Czech Republic). A new lease with long-term cli- ent DHL at CTPark Cheb (Czech Republic) for 48,000 sqm. 9,000 sqm warehouse at CTPark Košice (Slovakia) let to a manu- facturing company Ehlebracht to relocate its German production facilities. 11,000 sqm production facility for Teqball at CTPark Budapest West (Hungary). 50,000 sqm facility at CTPark Vecses (Hungary) let to JV Europe, a large Korean third-party logistics provider. A 19,000 sqm new development delivered for a high-tech manu- facturer at CTPark Novi Sad (Serbia). 28,000 sqm, fully automated facility at CTPark Bor (Czech Republic) for international re- tailer Primark. Lease extension of 13,000 sqm for the Group’s irst client in Poland at CTPark Opole. 2021 Highlights Executive Summary 2021 Highlights in Review In March 2021 CTP’s shares were listed on the Euronext Amsterdam Stock Exchange through an Initial Public Offering (IPO). Issued at a share price of €14 per share, the listing comprised 61 million shares. With a free float of 17%, the share register included a long list of international institutional investors. Acquisition of 27.5 hectares of land close to Belgrade city centre to develop CTPark Belgrade Centre, which at completion will be Serbia’s largest logistics and technology facility with over 130,000 sqm of GLA. Acquisition of Žilina industri- al park near Žilina airport, in Slovakia, with full development potential of 145,000 sqm GLA. New leases and tenant-led development totalling 900,000 sqm delivering market- leading capital value Protecting, adding and realising both income and capital value 5.1 million sqm of disciplined replenishment and growth of land bank 15 Sustainalytics, Inc. ranked CTP among the top 1.5% companies scored by them in 2021, with CTP conirmed as “Low Risk”. 11,500 sqm production facili- ty located just outside Soia in Plovdiv, Bulgaria, let to leading German automotive supplier Willie Elbe. New state-of-the-art 31,200 sqm warehouse, together with a 4,000 sqm oice building in Soia, Bulgaria, let on a long- term lease to Orbico, a major 3PL operator. 112,000 sqm of industrial space in Romania aquired from Zacaria Industrial. CTP acquired Seven buildings totalling 153,000 sqm, situated in Brasov, Timisoara and Bucha- rest, Romania. Intention to acquire full own- ership of Deutsche Industrie REIT-AG (DIR). Forward purchase of the next- generation 120,000 sqm multi- level urban logistics facility, CTPark ALC (Netherlands). Sale-and-lease transaction for long-term partner DSV at CTPark Soia Airport (Bulgaria), including contracting a further expansion on adjacent land total- ling 30,000 sqm. Restoring and protecting for- ests’ native biodiversity with the acquisition of 460 hectares of forest in the Czech Repub- lic, raising the total forest CTP owns to 560 hectares. CTP’s entire industrial and logistics portfolio achieved “Very Good” or better by the Building Research Establishment Envi- ronmental Assessment method (“BREEAM”). SCS calculated the 2021 gross carbon footprint of the Group (for Scope I and II) in COe (CO-equivalent) and conirmed that CTP’s carbon capture capacity (through its owned forests) was four times greater than its COe emission. Launch of a dedicated ESG function responsible for deining CTP’s ESG strategy, including four strategic pillars of neutral- ising greenhouse gases, embed- ding parks, stimulating social impact & well-being, and con- ducting business with integrity. In August the Group announced its irst (interim) dividend of €0.17 per share, payable in either stock or cash at the option of shareholders. A total of 92% shareholders opted to take stock dividends. The Group realised an average gross yield on its strategic acqui- sitions of 7.1 %, which compares to the 6.4% for the Group’s port- folio per at 31 December 2021. CTP ended 2021 with a Yield on Cost of 11.0% on its development pipeline, thereby well exceeding its target of 10%. In Q4 the Group provided guid- ance on the expected yield com- pression of more than 50bps for its income - producing properties by year end 2021 compared to year end 2020. The third Green Bond issuance under CTP’s EMTN Programme successfully concluded in Q1 with a €500 million, six-year transac- tion at a coupon of 0.75%. In Q3, CTP concluded a dual-tranche Green Bond issu- ance, which further reduced the Group’s Average Cost of Debt by 3bps and increased the weighted average tenor of CTP's debt to 6.4 years. CTP launched its largest Green Bond issuance to date, concluded in Q2, which reduced the Group’s Average Cost of Debt to 1.24% and was used to prepay its €1.8 billion secured bank facility. Selectively acquiring income producing assets accretive to the standing portfolio Taking a long-term, sustainable, and innovative approach Delivering resilient capital value and growing income Strengthening our effective and efficient capital structure Executive Summary CEO & CFO Statement We identiied a clear and compelling opportunity to establish a listed company with a distinct focus on developing, owning, and managing a highly sus- tainable portfolio of logistics and industrial parks, anchored in the strategically important region of central and eastern Europe (CEE). Equipped with our 23-year track record, established operat- ing platform and 7.6 million sqm of gross lettable area (GLA) across a network of CTParks that span Europe from the North Sea to the Black Sea, we believe we are uniquely placed to capitalise on the opportunity that our growing markets ofer. A Thriving Real Estate Sector The global industrial and logistics real estate sec- tor beneits from solid structural drivers, many of which have been signiicantly accelerated by the Covid-19 pandemic. Demand from occupiers for industrial and logistics real estate is driven by the robust expansion of e-commerce and supply chain optimisation. These trends are leading to a signiicant oppor- tunity to capitalise on the higher growth potential that exists within our largest markets, the Czech Republic, Hungary, Slovakia and Romania, when compared to the more mature western European markets. These Core Markets represent more than 95% of our income-producing GLA at end-2021. The rental growth now evident across our mar- kets is underpinned by this strengthening demand, coupled with a constrained supply of suitable as- sets. These fundamentals are attracting an in- creasing number of global investors looking to place capital in a sector likely to enjoy strong growth prospects and long-term resilience. Our Fully Integrated Operating Platform and Dynamic Culture The CEE market is large and disparate, and the logistics and industrial real estate sector is becom- ing increasingly competitive. Our fully integrated operating platform is driving the successful execu- tion of our strategy in this environment. We provide occupiers with a unique and comprehensive ofering, from site search to in-house development and prop- erty management teams, as well as a superior level of service and state-of-the-art facilities. These at- tributes form the core of our competitive advantage, which, in combination with our local teams’ exper- tise, market intelligence, key stakeholder relation- ships and leading sustainability credentials, underpin our ability to deliver on our strategic objectives. The quality of our product and services is evidenced by the fact that 80% of new leases are signed with our existing clients. CTP's performance and strong delivery on strat- egy are fuelled by our entrepreneurial spirit, en- ergy and passion. We invested time and money to strengthen our operating platform in 2021, leaving us well-positioned to create value for all stakehold- ers over the longer term. We reined Group pro- cesses, for example, and leveraged our economies of scale while signiicantly bolstering the breadth and depth of our teams across the organisation by attracting dedicated and experienced professionals at both the Group and country level. We recruited personnel across all our key functions, including, but not limited to, sustainability, construction, and cus- tomer engagement. We now have over 520 full-time employees (31 December 2020: 394) as a result. CEO and CFO Review CTP had a landmark year in 2021. In March, we completed our Initial Public Offering on Amsterdam’s Euronext Exchange and achieved record operational and financial results during the year, which exceeded the targets for 2021 set at the time of our IPO. 16 17 Executive Summary CEO & CFO Statement Delivering Operational Performance in 2021 We completed 900,000 sqm (GLA) of industrial and logistics space—a record for the annual growth of our industrial portfolio. We had a further 958,000 sqm of developments under construction as at 31 December 2021. This new space is on track for com- pletion in 2022 and 44% is pre-let, having secured construction capacity ahead of clients’ contractual commitments. We made a further 835,000 sqm of strategic of-market acquisitions that are accretive to CTP's existing portfolio, with an average yield of 7.1%. These acquisitions provide further scale, most no- tably to our portfolios in Romania and Hungary. The forward-purchase agreement for Amsterdam Logistic Cityhub (CTPark ALC) marked our entry into the Netherlands. GLA under CTP ownership expanded to 7.6 million sqm at 31 December 2021, up from 5.9 million sqm on 31 December 2020— almost 500,000 sqm more than anticipated at IPO. Our ambition to reach 10 million sqm of GLA by the end of 2023 will likely be achieved 12 months ahead of schedule—by the end of 2022—because of this momentum. We signed 1.7 million sqm of lease agreements (2020: 1.2 million sqm) based on the strength of our long-term customer relationships, represent- ing the equivalent of approximately €85 million in annual rent. In addition, we recorded 1.6% of like- for-like rental growth for the year (2020: 1.5%). We increased annualised rental income year-on-year to €437 million, up 27% year-on-year, including €39 million of rental income secured from acquisitions during the period. We continued to replenish our development land bank during the year, in line with our strategy to maintain our tenant-led development capacity. We added a gross 1.5 million sqm of land to our control in our three Expansion Markets of Poland, Serbia and Bulgaria, together with 2.6 million sqm of de- velopment land in our Core Markets. ESG Remains Front and Centre We established a dedicated Environmental, Social and Governance (ESG) function and articulated our ESG strategy to retain our leadership credentials in this area, as this aspect grows increasingly im- portant for our business. This dedicated function, which reports directly to the CEO, is responsible for further developing the Group’s sustainability strat- egy and performance, as well as driving integration and implementation of our leading sustainability practice across the Company. CTP is the only major pan-European indus- trial and logistics real estate company with a 100% BREEAM-certiied portfolio of “Very Good” or bet- ter, and all of our developments received this ac- creditation in 2021. Most notably, CTP obtained its irst ESG Risk score from Sustainalytics, Inc., achieving a “low risk” score of 11.0. The Group was also certiied as net carbon negative for its own op- erations (Scope 1 and 2), as validated by external agency SCS. We announced the composition of our new one- tier Board of Directors before our stock market de- but. The Board is chaired by Ms. Barbara Knolach, and Mr. Gerard van Kesteren, Ms. Susanne Eicker- mann-Riepe and Mr. Pavel Trenka are non-executive directors. The Board brings a diverse range of skills and extensive European real estate experience and has committed to implementing best practices to ensure active and transparent corporate govern- ance in line with the Dutch Corporate Governance Code. We very much appreciated their contribution during the year and their commitment and passion for CTP. The Impact of Covid-19 We made the health and well-being of our teams and wider stakeholders an absolute priority during the pandemic. Our business remained fully operational and highly efective during this unprecedented time thanks to our employees' continued dedication. Our development and construction teams ensured that all projects underway in our development pipeline were delivered close to budget and on time, despite increased logistical issues and price inlation. We maintained strong occupancy levels of 95% across the portfolio in 2021, despite the economic uncertainty caused by the pandemic, with no mate- rial impact on cash lows and with rent collections stable at over 98%, illustrating the good inancial standing of our customers. We worked closely with our tenants during the year to support them with any short-term challenges arising from disturbanc- es to their operations or cash low and found solu- tions for the rare instances where customers need- ed to reschedule rental payments. 18 19 Executive Summary CEO & CFO Statement Record Financial Performance and Strengthened Capital Structure We have delivered strong inancial returns relect- ing our record growth and operational performance. In 2021, CTP achieved a net proit of €1,026 million, a 306% year-on-year increase, our highest ever. We grew gross rental income by 14.7% to €335 million (2020: €292 million), driven by strong levels of leas- ing activity and our active asset management ap- proach. The Group’s selling, general, and adminis- trative expenses were €58.3 million, up from €56.1 million in 2020, which can be partly attributed to the Group’s investment into growing and develop- ing its teams. We saw yield compression, develop- ment gains and rental-value growth contributing to a €1,101 million gain on the valuation of the portfolio (with a conservative valuation yield of 6.4%). We raised gross proceeds of €854 million from the CTP’s IPO of 61 million shares on the Amsterdam Euronext Stock Exchange on 25 March 2021. The IPO was signiicantly oversubscribed and received signiicant interest from a large number of blue- chip international institutional investors. We would like to thank our shareholders for their backing, which has supported our growth in 2021. During the year we realised €2.5 billion through the issue of Green Bonds, which strengthened our liquidity position and extended the maturity of our debt proile. Our Average Cost of Debt has been signiicantly reduced, ending at 1.19% by year-end, down from 1.6% at the time of our IPO, relecting our active inancing strategy. The Group main- tained sound leverage, with a net Loan to Value of 42.8% by 31 December 2021 (31 December 2020: 50.7%), in line with our target at IPO of 40–50%. We returned Company Adjusted EPRA Earnings Per Share of €0.49, up from €0.44 for 2020, and an EPRA Adjusted NTA per share of €12.06, 45.0% higher than the previous year (31 December 2020: €8.32). In September 2021, CTP paid an interim dividend of €0.17 per share, equal to a pay-out ra- tio of 75%. A signiicant 92% of our shareholders chose to be paid their dividend in script. We will pro- pose a full-year dividend of €0.35 per share at our Annual General Meeting of shareholders, to be held on 26 April 2022 in Amsterdam. A Compelling Outlook Our business continues to beneit from supportive market conditions and global structural chang- es, which are driving occupier demand for well- located and high-speciied industrial and logistics properties. We believe that our established network of CTParks, together with our unparalleled land bank—which ofers the development potential to double the size of our current investment portfo- lio—leave us strongly positioned to capitalise on the attractive fundamentals that our markets ofer. The Group’s ability to deliver robust and predictable income streams to our shareholders is secured by a loyal and inancially sound tenant base; a high-qual- ity, sustainable and diversiied investment portfo- lio; and a weighted average unexpired lease term of 6.7 years. This should see the business withstand any economic headwinds in the medium term. We have started the next phase of CTP’s evolution, after our strategic entry into Germany following the successful acquisition of Deutsche Industrie REIT-AG (DIR) and its 1.6 million sqm portfolio. We can now ofer existing and new customers access via CTP’s platform to the trans-European supply chain network across all markets from the North Sea to the Black Sea. We welcome the DIR team to CTP Germany and look forward to expanding our presence in our third-largest country by GLA, with the same passion and dedication that has been in- tegral to CTP’s success so far. Our team of Parkmakers located across our ten markets are focused on the delivery of the Group’s clearly deined strategy. We have agreed on a com- prehensive set of ambitious targets and KPIs for 2022 with our Top-30 leadership team and remain conident that we will deliver proitable growth and attractive capital value accretion. We would like to thank all our CTP colleagues across Europe for their commitment to the business and our custom- ers. We feel privileged to be working with so many talented professionals, whose dedication and spe- cialist expertise will continue to be a key driver of CTP’s future success. We look forward to realising our ambitions to- gether—since your growth is our future! Remon Vos, CEO and Richard Wilkinson CFO Amsterdam, 8 March 2022 KPI IPO Guidance Actual Performance Direction 2021 GLA growth 1.2 million sqm 1.7 million sqm EXCEEDED Development Margin / Y-o-C levels >10% 11.0% EXCEEDED 10 million sqm Owned GLA By end of 2023 Expected to be reached by YE 2022 EXCEEDED Stable occupancy ~95% 95% MET Impact from COVID-19 No material impact Rent collection = 98% No material impact MET Sound Leverage / net LTV 40-50% 42.8% MET Decreasing Cost of Debt 1.6% at time of IPO 1.19% EXCEEDED Dividend Policy 70-80% Pay-out 75% Pay-out MET Expansion into Western Europe 2023 Netherlands and Germany EXCEEDED Carbon Neutrality 2023 2021 EXCEEDED 20 21 Executive Summary Investor Q&A Investor Relations 2021 was a landmark year for our business. It not only marked the year of our IPO, but we are also delighted to report record operational and financial results, which exceeded all of the 2021 targets that we committed to at the time of our IPO. How is your Yield on Cost afected as a result of price increases for building materials? The price of land and cost of building materials were subject to signiicant inlationary pressures during 2021. To date, such price increases have had a limited efect on our development Yield on Cost because increased prices have often been passed on as increased rents on completed assets. Secondly, these inlationary pressures have been minimised by the Group’s eicient procurement process, as well as its longstanding partnerships with our sub- contractors and suppliers, with whom we seek to ind suitable solutions to mitigate the impacts of inlation. How long does it take to build an industrial / logistics property? In general, once zoning and building permits are in place, the construction time to complete our properties last approximately nine months on average. In cases where it is shorter, certain pre-work was done in advance, such as for groundwork or foundation. In instances where it takes longer, other forces are at play, for instance when the construction process would require additional it- out for the tenant, or certain infrastructure works need simultaneous completion. How does CTP’s move into Germany and Netherlands afect your Group Yield-on-Cost target? Our Yield on Cost target of over 10% is a group-wide target published every quarter. As a result, there are projects for which we will record a Yield on Cost of more than 10%, and others—based on strategic importance—for which we will accept a Yield on Cost below 10%. The move into western Europe is a strategic one and in line with our IPO targets, and although we know that double-digit Yield on Cost will be more diicult to achieve in these markets, our Yield on Cost target stays top priority as a key value driver for CTP. How do you select attractive acquisition targets? With the beneit of their local/national insights and relationships, acquisitions are typically initiated by our country management teams. Potential target assets are then assessed based on strategic relevance, expected inancial returns and their contribution to our ESG goals. The strategic relevance is key, as we do not acquire income-producing assets just for the sake of growth. The high quantum of income-producing asset acquisitions in 2021 was an exception. It came in response to the attractive market opportunities that allowed us to add additional space to our existing CTParks, or was driven by a request from an existing client, and/or ofered the opportunity to establish a new CTPark rapidly. How do you decide on starting a new development? The majority of our current land bank, 87%, is situated on or in the immediate vicinity of our existing or planned CTParks, which al- lows us to respond swiftly to our clients’ ex- pansion requirements. Equally, this approach de-risks the majority of our developments, as such sites beneit from our understanding of the micro-location and often fall within ex- isting zoning. Ultimately, each development is decided upon a sound business case and the long-term viability of the site, evidencing adequate Yield on Cost as part of our Group targets. How does the rental escalator in your lease contracts work? Our lease contract includes a double in- dexation clause where, on an annual ba- sis, rents are increased by the higher of either (i) a ixed escalator or (ii) the local Consumer Price Index (“CPI”). The ixed escalator is typically set between 1.5 to 2.0%. In addition, such CPI indexation is typically not capped. What is the average price of one square meter of land? As noted, land prices in key logistics locations have increased over the last 18–24 months. On average, the land that we acquired in 2021 cost €47 per sqm. This compares to an aver- age price of €23 per sqm in 2020. As a Group, we beneit from our estab- lished prime land bank of 17.8 million sqm accumulated over many years. This land bank ofers CTP the oppor- tunity to double its existing invest- ment portfolio in the coming years. Do you have a high dependency of certain tenants? As at year-end, our Top-20 clients account for 24% of the Group’s gross rental income, illustrating the granular nature of our income stream. Typically, these tenants are inancially sound, internationally operating corporations. As most of our expansion has been tenant-led, with 80% of new leases coming from existing clients, many of our clients occupy space in more than one location throughout the pan- European CTPark network.. Letter from the Chair of the Board 22 Executive Summary Letter from the Chair of the Board Dear Stakeholders, Last year was both challenging and extraordinary for CTP. Despite the pressures of the pandemic, the Group saw robust growth, driven by global trends in e-commerce and supply-chain reorganisation, which have accelerated in response to the pan- demic and environmental concerns. The impact of the pandemic on society—and the growing aware- ness that businesses must take greater respon- sibility to safeguard the environment for future generations—underscore the importance of creat- ing long-term value and a strategy for sustainable growth. CTP has a well-established track record of being at the forefront of sustainable, environmentally friendly development across the CEE region and has earned, over many years, its reputation as a good neighbour and good corporate citizen. Its long-term vision and strategy as developer-owner-operator are unique in CEE. I irst met CTP as it was on the verge of becom- ing carbon neutral and debuting on the Euronext in Amsterdam, in the middle of the second lockdown. Shortly thereafter, in March 2021, the Company completed its Initial Public Ofering. I was appointed Chair. Together with three Non-Executive Direc- tors and two Executive Directors, we now repre- sent CTP's one-tier Board. I took on this role with excitement, as it is clear to me that CTP has the right mix: the right time, the right place, the right team, and the right values, which together create long-term value for all stakeholders. The Executive Directors created extraordinary momentum in 2021 and, together with the Board, we successfully embraced the changes of becoming a listed company after 23 successful years as a pri- vately owned business. As a Board, we spent the irst nine months after the IPO focusing on the key areas of gov- ernance as well as important strategic matters, taking into account the fast-changing market en- vironment. We took a deep dive into the Group’s Code of Conduct, which sets out the shared values of integrity and compliance with local and inter- national laws, together with the company’s une- quivocal stand against bribery and corruption. The setup of the Group’s compliance and internal au- dit function, as well as its risk management func- tion, were reviewed and adjusted where necessary. This new framework will contribute to further strengthening the resilience and integrity of the business. During the year, we also gained thorough in- sight into the Group's activities. We participated in dedicated courses provided by major law irms and other institutions, took part in several coun- try trips and visits to CTParks, and attended the CTP-wide annual gathering in the Czech Republic in September 2021. These activities have signii- cantly enhanced our understanding of the Group’s business principles and allowed us to become ac- quainted with many of CTP’s staf, including its Top-30 leadership. The Board also made a special efort in 2021 to enhance the visibility of the vast number of sus- tainability measures undertaken by the Group and to formalise them into a new ESG strategy with corresponding targets and KPIs. These measures include, among others: 100% of the buildings in the portfolio BREEAM-certiied in 2021, solar-roof readiness, close collaboration with communities, onsite CTPark amenities (including the Clubhaus concept with restaurants) and itness facilities for the people working in the parks, as well as for the local community and high-quality landscaping at the parks to promote well-being at the workplace. In addition, carbon neutrality was achieved at the end of 2021 in Scope 1 and 2 and is underway for Scope 3. CTP has demonstrated great adaptability to the structural changes in its logistics business as well as to the challenges posed by rising construction costs and, by year-end, exceeded most of the tar- gets set out for 2021 in its IPO prospectus. The Board was particularly involved in the two largest acquisitions in 2021. The irst was the ac- quisition of CTPark ALC in Amsterdam, marking CTP’s bold move into the Netherlands, where its corporate headquarters are located. The second was CTP’s strategic entry into the German market through a friendly, public takeover and delisting of- fer for Deutsche Industrie REIT-AG, which is com- pleted in 2022. These acquisitions have increased CTP’s strategic footprint east to west across Europe, from the Black Sea to the North Sea—one of the main logistics corridors across the conti- nent—to enable CTP to cater fully to the future needs of its tenants. We believe that the Group can achieve higher returns on both acquisitions by applying one of CTP’s core strengths: active asset management. Central to CTP’s success over the last 23 years is its unique business model, which involves develop- ing and acquiring high-quality industrial assets to operate and hold over the long term. This approach, along with its fully integrated operating platform, not only aligns CTP with the interests of its stake- holders, including occupiers and communities, but it also enables the Group to beneit from unique in- sight into its markets, eicient decision making, as well as an agile and lexible approach in competitive market conditions. This foundation enabled CTP to embrace its irst nine months as a listed company with strong momentum, signiicantly growing its in- vestment portfolio by delivering a record volume of new developments—900,000 sqm—and acquiring 835,000 sqm of buildings that it strategically as part of the Group’s growth plan, as well as increas- ing its available land bank by 5 million sqm. With a proit of €1,025.9 million, or €2.68 per share, CTP Group realised a powerful operational performance and record inancial results. Accord- ingly, the Board will suggest a full-year dividend of €0.35 per share to the General Meeting, in line with CTP’s dividend policy. Looking ahead, I am conident that CTP’s busi- ness model is robust and provides excellent long- term potential. The success of the Green Bond pro- gramme has set the ESG standard for the Group going forward, and we will seek to continue to lead the market through our approach to sustainability. On behalf of all Non-Executive Directors, I would like to thank you, our shareholders, customers and partners, for your trust and support. My thanks also go to all employees and the management across the countries for their commitment and great eforts. CTP’s irst AGM will be held on 26 April 2022. We look forward to meeting our shareholders at that time. On behalf of the Board, Barbara Knolach, Chair of the Board of CTP N.V. Amsterdam, 8 March 2022 Letter from the Chair of the Board 1 Achieved with forest compensation. 23 We don’t just do buildings; we are sustainable and innova- tive “Parkmakers” with an unmatched vertically integrated platform. CTP is continental Europe’s largest developer, owner and manager of logistics and industrial real estate by gross lettable area (GLA). Our network of strategically located CTParks and prime land bank is ideal for the development of industrial and logistics assets and spans ten countries from the North Sea to the Black Sea. Value Proposition 24 Executive Summary Value Proposition We’ve built our leading reputation and estab- lished market position over the last 23 years Thanks to our irst-mover advantage and expertise, we’ve built a dominant market share and enviable track record by securing key strategic industrial and logistics locations across central and eastern Europe (CEE). Our 7.6 million sqm investment portfolio boasts a roster of 700 international clients. Over 80% of our business is repeat business, which underpins our proitable tenant-led growth strategy. To meet our customer's expansion, we have assembled a 17.8 million sqm land bank, 60% of which is situated within or ad- jacent to our established CTParks. This land bank provides the potential to double the size of CTP’s investment portfolio. Over 500 dedicated in-house specialists situated in our local markets deliver CTP clients a unique, full-service concept— from location search to improving sustainability credentials. Our entrepreneurial culture enables agile and efective deci- sion making, which allows us to respond swiftly to our clients’ needs as well as identify and execute opportunities before others. We develop and acquire high-quality, sustainable assets to hold and operate over the long term. This aligns our interests with our clients and the communities that surround our as- sets, driving value for all stakeholders. CTP’s vertically integrated platform and long-term strategy is a key differentiator and driver of our success Long-term structural drivers, from the rise in e-commerce to supply chain optimisation and re-shoring, underpin occu- pational demand for our well-located, high-quality industrial and logistics assets. Strong occupational demand is coupled with constrained sup- ply in key markets, which support attractive market funda- mentals and rental growth. Global occupiers are drawn to the CEE region for its specialist and afordable labour force, its strategic geographical loca- tion in global supply chains, as well as its proximity to densely populated and aluent neighbouring western economies. Our core region of the CEE provides a growth opportunity due to its attractive GDP outlook and as domestic e-commerce penetration catches up with more mature western econo- mies. Our dynamic sector and geographical market play a critical role in global supply chains We operate from a position of inancial strength, with in- sightful and disciplined allocation of capital and proitable development, whereby we deliver projects at a highly attrac- tive Yield on Cost of over 10%. While maintaining a sound leverage with a net LTV of 42.8%, our active inancing strategy has resulted in a sector-leading Average Cost of Debt of 1.2% as well as extending the matu- rity of our debt proile. Beneiting from an Investment Grade Credit Rating and strong balance sheet, we have access to a diverse range of capital to support our growth ambitions. Efficient and effective capital structure supports attractive, sustainable returns 25 We Make Parks The CTP Vision CTP re-imagines industrial property development as full-service business parks, strategically located near major highway corridors, with on-site amenities, community centres, and workers’ housing—all within a well-landscaped green environment. Our vision puts people at the centre: the people who work there as well as the surrounding communities, while serving our clients with flexible builidng types that cater to the wide range of industries they represent. People are the heart of our CTParks, and that’s why we call ourselves Parkmakers. Part: 01 Executive Summary Development Story 26 27 We FIND LAND GROUND WORKS Starting a new industrial and logistics park starts by identifying an optimum loca- tion. We employ highly experienced in-house teams, with a thorough understanding of the sector and local market, to identify and secure sites which can accommodate CTParks that will satisfy the needs of global occu- piers. Before groundworks begin, our teams work closely with the local municipalities to ensure infrastructure and permits are in place. Part: 02 28 29 We do it in-house GENERAL CONTRACTOR Construction is at the heart of the CTP business model. Acting as general contractor allows for flexibility and visibility through our in-house project management, in addition to quality and cost control from start to finish, and allows us to swiftly adapt to client or market requirements. Part: 03 30 We BUILD to last THE façade Because CTP is both developer and long-term owner and operator of our properties, we build our buildings to the highest techni- cal specifications to ensure they serve the needs of clients today, but also for the future. Our standard building specifica- tions always match or exceed insulation and fire safety norms, which reduces our cli- ents’ energy costs, thereby lowering their overall costs of occupation and environmen- tal impact. Part: 04 32 OVER YOUR HEADS All CTP buildings are built with solar- ready rooftops, allowing CTP to install solar panels either during construction or later, depending on client requirements. Rooftops are also designed with suffi- cient skylights, high-quality insulation, and drainage systems to both reduce energy needs and allow for rainwater collection and use. Part: 05 We BUILD smart 34 35 We shine floors SLippery when wet Standard interior floors are laid to accom- modate the long and heavy usage our clients require. With a standard load capacity of 5 tn/sqm, the steel-fibre reinforced floors are then sealed and machine finished to ensure precision, dustless operation, and a healthy work environment. Part: 06 36 We move fast High spec warehouses CTP builds high-quality industrial and logistics warehouses built to BREEAM Excellent or better. Each of our newly developed warehouses incorporate highly efficient LED lights, BMS and HVAC systems to ensure low operating costs. Designed for world-leading occupiers, our prime, flexible warehouses accommodate different sector needs, from high levels of automa- tion to refrigerated storage centres. Part: 07 38 FOR E-COMMERCE E-commerce operations require generally three times as much logistics floor space to handle a broad range of products, as well as various functions such as utilising manual, semi- and fully automated systems for picking and packing, sorting, and returns. Part: 08 We build the future 40 41 for HIgh-TECH production CTP buildings are designed to be plug-and-play, allowing clients to move in and get sophisticated machinery installed and high-tech processes up and running quickly. Part: 09 We Fit out 42 Part: 10 FOR Retail Food The Covid pandemic increased the speed of on-line ordering, pushing all businesses to rethink their delivery strategies. CTP’s inner city parks provide strategic loca- tions for clients such as food retailers to better serve their end customers with last- mile delivery options. We stock shelves 44 FOR SMALL BUSINESS CTP’s innovative CTBox concept provides a small-footprint option which is ideal for local companies on the rise, as well as international companies entering a new market. Part: 11 We start success 46 We HAND OVER long-term care Because CTP is an owner/operator, our client’s comfort is key. We view our clients as our business partners and make sure their new premises work for them so they can focus on their core business. Existing clients generate approximately 80% of new business, proving that our long- term care is a true benefit: their growth is our growth. Part: 12 48 We Green parks LANDSCAPING CTP’s Parkmaker philosophy underpins our commitment to making enjoyable workplaces. We masterplan our parks, incorporating a wide variety of local grasses, trees and shrubs, and design them to be sustaina- ble—ensuring water is retained in the soil while at the same time providing a relaxing natural backdrop to the workplace. Part: 13 50 We nuRture parks nature inclusive Keeping the landscape healthy is best left to nature. Increasing biodiversity creates healthy biological ecosystems within and around our parks, eliminating the use of chemicals and fertilisers, and reducing the impact on local water systems. Part: 14 52 53 We power parks SolAR Farms As all our newly built buildings are equipped solar-ready, CTP already generates 6.1 MwP of energy through our existing solar farms. Over the coming years, we plan to expand our solar-energy generation capacity across our markets, which helps lower energy costs for our clients, but also lowers their carbon footprint by using clean energy sources. Part: 15 54 We create communitY clubhaus In 2021 we opened our second Clubhaus community centre at our largest park, CTPark Bucharest West. The Clubhaus serves as the heart of a CTPark, where clients and their employees can meet, enjoy a good meal or visit the local doctor, or as a place for a short meeting over coffee or lunch. Its an ideal place for Park managers to meet clients, or for clients to meet local residents with job fairs, sport days or training through events, talks and lectures. Part: 16 56 We make spaces Truly amenable The Clubhaus concept is more than just an amenity. Each Clubhaus is designed in a modern, eclectic style which brings people in for the good food, atmosphere, or just to socialise—providing local companies a new business opportunity. Part: 17 58 Part: 18 AWARD WINNINg Outside of our core business, CTP has a successful track record of creating innner city office parks in Brno, Czech Republic, built to BREEAM Excelent or better and home to many international BPO, R&D and software companies. The success of our award winning office parks is based on the same philosophy we implement in our industrial parks: to create the healthiest, most enjoyable working spaces. We have piloted residential, low-cost housing, co-working and clubhaus concepts in our office parks, as well as our zero-waste initiative and builidng to WELL standards for employee health. We know how 60 We are Carbon NEGATIVE Part: 19 Negative is Positive CTP took a visionary step in 2019 with the purchase of a 100 Ha forest in the Czech Republic, with a plan to own and manage forests to match the size of our built port- folio. CTP now owns and manages forests of approx. 650 Ha. Over 2021, our forest preser- vation replanting efforts were calculated to have absorbed over 15 times the CO2 emissions of our company operations. In 2021, CTP became net carbon negative, which is a big plus! 62 We DO CARE Part: 20 CTP is a people business Our people sit at the heart of what we do. They are on the ground, part of the commu- nities where we operate, and therefore have insight into—and care about— the long-term quality of local life. They work intimately with our clients and local municipalities to ensure that CTP delivers the superior product, service, and local knowledge that sets us apart. 64 We Went public! Doing the IPO CTP has a 23-plus year track record of profitable growth, based on a unique owner/ operator business model. In 2021, in order to achive our 10 million sqm by 2023 business plan, we launched the company on the public markets. Less than one year on, we are further down the path to achieving the targets we set for ourselves, ahead of plan. We are happy to welcome new stake- holders to share in our on-going success story. Part: 21 66 G E R M A N Y N E T H E R L A N D S D E N M A R K F R A N C E S P A I N SWITZERLAND I T B E L G I U M BERN BASEL ZÜRICH BRUSSELS LUXEMBOURG MADRID BARCELONA PARIS LYON MARSEILLE LILLE CALAIS LE HAVRE ANTWERP LIÈGE METZ STRASBOURG KÖLN MILAN TURIN GENOA ROTTERDA AM DAM TE ZEEBRUGGE E UTRECHT ARNHEM GRONINGEN INNSBRUCK MUNICH STUTTGART NÜRNBERG FRANKFURT DÜSSELDORF DORTMUND BREMEN HAMBURG HANNOVER EINDHOVEN AACHEN AMSTERDAM 68 The Strategy of CEE Business Environment Where We Operate Starting in 1998, CTP began operations in the Czech Republic and has expanded throughout CEE, developing the CTPark Network at strategic population centres and on key transport and logistics lines connecting the entire continent. Our CEE strategy has paid off, due to the region's GDP growth and continual integration into Europe’s—and the world’s—high-tech supply chains. P O L A N D C Z E C H I A S L O V A K I A H U N G A R Y S E R B I A B U L G A R I A R O M A N I A A U S T R I A K T U R K E Y L I T H U A N I A G ALBANIA NORTH MACEDONIA MONTENEGRO C R O A T I A SLOVENIA BOSNIA AND HERZEGOVINA A L Y SARAJEVO PODGORICA TIRANA SKOPJE COPENHAGEN THESSALONIKI ISTANBUL KAUNAS KLAIPÉDA ZAGREBLJUBLJANA ROME NAPLES TRIESTE VENICE S[#£ NtN[ KOŠICE KATOWICE tZS qZ¢UV OSTRAVA BRNO PLZEW TIMIzOARA ARAD DEBRECEN ORADEA TRNAVA ¤AOAU GYlR GRAZ LINZ SALZBURG CLUJ tzZ NOVI SAD NIŠ PLOVDIV EDIRNE MALMÖ VARNA BURGAS CONSTAN¬A :#VwN CRAIOVA DRESDEN LEIPZIG SZCZECIN ROSTOCK BERLIN SOFIA BRATISLAVA VIENNA BUDAPEST BELGRADE BUCHAREST WAR SAW PRAGUE From the North Sea to the Black Sea Major Communications Capital Cities Major Towns Ten-T Core and Major Corridors Business Regions Core Markets Expanding Markets New Markets 69 70 Structural Tailwind: The Revolution of Retail and the Growth of e-Commerce As consumers continue to demand faster and more convenient ways to acquire and receive goods, re- tailers have been forced to review their global sup- ply chains and introduce increasingly sophisticated logistics networks to remain competitive. This rise in online shopping and omnichannel re- tail throughout all European economies was accel- erated by Covid-19, with European online sales as a proportion of total retail sales rising to 12.8% from 12.3% in 2020, and up from 9.4% in 2019. Although the growth in online sales has begun to stabilise as lockdown restrictions have eased, re- search from RetailX shows that across Europe as a whole, nearly 80% of consumers expect to maintain or increase their level of online shopping over the longer term. Equally, the percentage of individuals shopping online varies signiicantly across European markets, with many countries, such as Romania and Bulgaria, still in their relative infancy, but which are now growing rapidly from a low base. Therefore, as levels of prosperity, urbanisation, digitalisation and debit and credit card use increases, so to will the de- mand for e-commerce/omnichannel retail shopping. To successfully execute an online or omnichan- nel retail model, 3PL’s require much larger, more lexible, well-located logistics properties that can accommodate their entire product range and en- able them to deliver orders and manage returns quickly and cost efectively. Structural Tailwind: Supply Chain Optimisation and Resilience To improve margins and compete efectively, op- erational eiciency has been high on the agenda of corporates for many years. However, the pan- demic, along with rising geopolitical trade threats, has highlighted the need for supply chains to not only be highly eicient, but also resilient to reduce the impact of supply chain disruption. To drive supply chain resilience, production and manufacturing are increasingly being decentralised and additional sourcing partners contracted. With this trend of de-globalisation and regionalisation expected to continue beyond the pandemic, occupi- ers are actively seeking to move production, assem- bly, and sourcing activities closer to key consumer markets and hold higher levels of inventory to pro- vide a security bufer. To reduce risks to their supply chains, occupiers increasingly require modern, high-quality, strate- gically located logistics and distribution assets in CEE. To accommodate automation and increased levels of stock, they also require large assets with a signiicant power supply and afordable work force within close proximity. Therefore, future supply chains are expect- ed to be increasingly routed through CEE, or even originate from it, as the region beneits from ad- vantageous characteristics that are relevant for optimising supply chains. For example, the region is ideally situated from a geographical perspective, delivering access to the whole of Europe from a cost-efective location facilitated through modern logistics infrastructure and excellent connectivity, as well as beneiting from major transportation axes close to Europe’s largest markets with high purchasing power. Equally, in terms of industrial activity, the region boasts high-end manufacturing qualities, in lo- cations close to university cities with access to a highly skilled workforce. Favourable labour costs further contribute to cost-efective manufactur- ing and assembly. This is why CEE is an attractive region for companies seeking to take advantage of near-shoring, near-sourcing and re-shoring parts of their production and distribution chains. Our industry is underpinned by long-term structural drivers, many of which have been signifi cantly accelerated as a result of the Covid-19 pandemic. From the rise in e-commerce to supply chain optimisation, the impact of these trends on occupier demand for logistics and light industrial commercial real estate has been profound. Our Market Executive Summary Our Market SHARE OF E-COMMERCE AS A PERCENTAGE OF RETAIL SPEND ACROSS EUROPE – WESTERN EUROPE VS. CEE This graph shows that ecommerce growth is common among all markets (bottom) in WE and CEE with some catchup to do in CEE. UK and CZ are outliers where CZ especially is higher than WE average. Selected Western European Countries CEE Avg. Czech Republic 9 Hungary Poland Slovakia Romania Bulgaria Germany France United Kingdom Netherlands Denmark Republic of Ireland Spain Italy 0 10 20 0 5 10 15 20 25 30 % Growth 2016-2021 % 2021 28 16 15 15 14 13 8 8 15 10 9 8 5 4 13 30 Western Europe Avg. Source: GlobalData, Cushman & Wakefi eld CEE: including BG, CZ, HU, PL, RO, SK 71 TOTAL HOURLY COMPENSATION IN MANUFACTURING (in €) * CEE includes Czech Republic, Slovakia, Hungary, Romania, Poland, Serbia, Bulgaria ** Western Europe includes UK, Germany, Portugal, Spain, France, Italy, Belgium, Netherlands, Austria, Denmark MACROECONOMIC INDICATORS FOR KEY EUROPEAN AND CEE COUNTRIES Structural Tailwind: Economic Outlook for CEE is Very Favourable While the regions’ macro-economic performance was initially dominated by the impact of Covid-19 in 2021, vaccine rollouts ultimately led to countries easing lockdowns and starting the economic recov- ery phase following the pandemic. Notwithstanding the impact of the pandemic, CEE has demonstrated strong GDP performance relative to western Euro- pean economies and is forecasted to continue that trajectory. Given that the base from which CEE hourly compen- sation rates is quite low, the outlook for the medi- um term compares very favourably to the western European rates in absolute terms. Equally, regional development is also forecast to result in the contin- uation of high e-commerce growth factors, as CEE consumers are expected to increasingly shop online. In conclusion, along with an appropriately skilled workforce, these various demographic and economic drivers in CEE will continue to fuel demand for logis- tics and industrial assets. Variable CEE * Western Europe ** Source Total Hourly Compensation in Manufacturing € 5.90 € 20.00 IMD, BCI Global, WIIW, 2021 GDP per Capita Forecast 2022-2026 CAGR 8.02% 5.06% IMF, 2021 E-Commerce Revenue 2021-2025 CAGR 14.90% 12.80% Statista, 2022 Population 96,719,000 379,124,000 World Bank, 2022 * CEE includes Czech Republic, Slovakia, Hungary, Romania, Poland, Serbia, Bulgaria ** Western Europe includes UK, Germany, Portugal, Spain, France, Italy, Belgium, Netherlands, Austria, Denmark 0 5 10 15 20 25 30 Germany UK Czech Republic Slovakia Hungary Romania Poland Serbia Bulgaria 7.5 20 25 19 5.9 CEE * Western Europe ** Source: IMD, BCI Global, WIIW, 2021 72 GDP PER CAPITA FORECAST 2022-2026 CAGR (in %) ANNUAL GDP GROWTH WESTERN EUROPE AND CEE (2016–2026) (in %) 0 -5 5 10 15 0 -5 5 10 15 2022 2023 2024 2025 20262016 2017 2018 2019 2020 2021 3 2 13 9 8 7 -3 6 -2 4 14 12 * Weighted average taken from the follow- ing countries: Czech Republic, Slovakia, Hungary, Romania, Poland, Serbia, Bulgaria ** Weighted average taken from the fol- lowing countries: UK, Germany, Portugal, Spain, France, Italy, Belgium, Nether- lands, Austria, Denmark CEE * 0 2 4 6 8 10 Germany UK Western Europe ** 8.02 5.06 Czech Republic Slovakia Hungary Romania Poland Serbia Bulgaria CEE Western EuropeSource: IMF, 2021 Source: IMF, 2021 73 2018 2019 2020 2021 The Profound and Positive Eefect on Distribution and Logistics Commercial Real Estate The underlying trends, including growth of e-com- merce and the need for supply chain optimisation and resilience, combined with the attractiveness of the region, are clearly visible in the performance of the logistics and light industrial real estate market in the CEE region in 2021. Rising Occupational Demand Occupational demand grew exponentially, with new completions unable to keep pace, resulting in a signiicant drop in vacancy levels. These, in turn, have been driving rental values upward, the extent of which has been softened only by continued yield compression across the CEE region. The appeal of the western part of both the Czech Republic and Poland for XXL distribution ware- houses resulted in record high take-up in both coun- tries. Furthermore, the appeal of the largest capi- tal cities with the highest purchasing power as the main location of regional distribution centres was also clearly visible in the strong growth in take-up in 2021, especially around Budapest. Equally, Bucha- rest continued to develop itself into a logistics hub for southeast Europe, while also beneiting from cost efective and skilled labour. Constrained Supply is On-going Vacant space, especially in Romania, Poland and in the Czech Republic, decreased signiicantly during 2021. The only country recording a small increase was Hungary. Its vacancy rate of 3.2% is, however, still below the average of 3.9% for the CEE region. As a consequence, prime rents showed an up- ward trend, especially in the Czech Republic where an increase of more than 20% was recorded. Again, this can also be explained by the drop of the vacancy rate to just 1.6%. NET TAKE-UP IN CEE BY COUNTRY 2018-2021 (in sqm) 0 1,000,000 5,000,000 9,000,000 8,000,000 7,000,000 6,000,000 CZ PL RO SK HU * VACANCY RATES IN CEE BY COUNTRY 2018-2021 (in %) 2018 2019 2020 2021 0 1.0 5.0 2.0 9.0 10.0 8.0 7.0 4.0 6.0 3.0 HU CZ PL RO SK * Hungary only includes the Greater Budapest Region Source: CBRE Source: CBRE 74 PRIME RENTS IN CEE BY COUNTRY 2018-2021 (in € per month) Strong Investment Demand Very strong investor interest in logistics/light in- dustrial real estate and record levels of invest- ment helped fuel further yield compression across the CEE region. All in all, the yield compression in the CEE region was approximately 40 bps stronger in comparison with western European yield com- pression. PRIME LOGISTICS YIELDS IN CEE BY COUNTRY 2018-2021 (in %) 2018 2019 2020 2021 CZ PL SK HU RO 4.00 4.50 6.50 5.00 8.50 8.0 7.50 6.00 7.00 5.50 2018 2019 2020 2021 3.00 3.50 5.50 4.00 6.50 7.00 5.00 6.00 4.50 CZ SK PL RO HU Source: CBRE Source: CBRE 75 Our business model is designed to deliver positive long-term outcomes for all our stakeholders. Executive Summary Our Business Model Our Business Model Our key inputs/assets and resources Locally based, Expert Professionals Specialised, with extensive experience and broad perspectives Motivated teams achieve their potential Entrepreneurial and cohesive culture Long-term Relationships Clients Suppliers and sub- contractors Community partners Local authorities Our Portfolio One of Europe’s largest high quality industrial and logistics real estate portfolios Formidable landbank largely located adjacent to existing CTParks Financial Strength & Capital Management Diversiied sources of capital Investment Grade Credit Rating Capital allocation based on disciplined investment selection What we do/ key activities Development Our focus on client-led development delivers sustainable and adaptable buildings at an attractive Yield on Cost Investment Activity Adding strategically important assets to the portfolio: Replenish land bank Income-producing properties Asset Management Understanding our clients helps us deliver industrial and logistics properties and leases to meet their requirements, thereby growing our predictable income streams and accreting value 76 Our key differentiators/ Value drivers Fully integrated Operational Platform Full control over all parts of our value chain, from land scouting to asset management and client coverage Central Group functions provide in-house support to CTP’s country teams Parkmaking Creating business ecosystems as positive environments where clients and their employees thrive Standardised spectrum of 5 building types supports lexibility to meet evolving tenant requirements Connecting to local communities to deliver social and economic value Sustainability as part of our DNA Dedicated to minimising impact on environment Our Clients High-quality, sustainable, and lexible industrial and logistics space developed and managed to support our clients ambitions Our people A dynamic and inclusive workplace, where our teams are motivated, empowered and well-positioned to achieve their full potential Our Communities Pro-active engagement and collaboration which generates social and economic value and supports wellbeing Our Shareholders Growing long-term sustainable income Value accretion Positive outcomes for all stakeholders 77 78 We seek to create long-term, sustainable value for our shareholders and in the wider communities where we operate by: 1. Focusing on Disciplined and Proitable Growth CTP focuses on delivering market-leading, self-gen- erated growth through its established, fully inte- grated operating platform. While taking an informed and disciplined approach to capital allocation, we combine our efective and eicient capital structure, in-depth knowledge of local markets and meaningful insights into customers’ needs. This enables us to actively manage and expand our high-quality investment portfolio, with the ob- jective of securing long-term and growing income streams, while generating attractive capital value. Since 1998, we have assembled one of continental Europe’s largest industrial and logistics real es- tate portfolios. We actively evaluate and manage our CTParks and collaborate with our occupiers to identify and then execute asset management initi- atives, which preserve and enhance the investment portfolio’s long-term performance. We control a substantial land bank strategi- cally located in all our core markets, the majority of which is situated in or around our established CTParks. Here we can develop sustainable, best- in-class logistics and industrial space. We develop ive distinct property types to accommodate a va- riety of businesses, each of which incorporate the capacity and lexibility to accommodate the future growth our clients. Our customer-driven approach to growing our portfolio supports a lower-risk ap- proach to development, with most of our develop- ments pre-let to contracted occupiers. Our proven operating model allows us to grow the investment portfolio at a highly attractive Yield on Cost of more than 10%. We constantly replenish the land bank to extend the timeframe across which we can develop new prop- erties and CTParks, to safeguard our ability to ex- pand and deliver future returns. CTP also invests in income-producing assets where it sees a strategic imperative to do so. This will either be in response to a customer’s require- ment, as a strategic in-ill related to existing CTP properties, or to provide the company with a foot- hold into a new country. The strength of our rep- utation and network enables us to conclude most of these acquisitions of-market and have these be accretive to income. 2. Taking a Sustainable Long-term and Innovative Approach Integral to our ability to generate sustainable i- nancial value is our capacity to develop and manage assets that beneit from a long-term economic life, whilst having a positive environmental and social impact in the locations in which we operate. There- fore, ESG sits at the heart of our ‘Parkmakers’ con- cept, which has resulted with our current 7.6 million sqm portfolio becoming the most environmentally sustainable network of connected industrial and logistics parks in Europe. To continue to progress in meeting our ESG ob- jectives, the Group is establishing a dedicated ESG function. CTP’s overall ESG strategy is based on four guiding principles: (i) neutralising greenhouse gases, (ii) embedding parks, (iii) stimulating social impact & well-being and (iv) conducting our busi- ness with integrity. These principles support ten of the 17 United Nations Sustainability Development Goals (UN SDG). To minimise CO emissions during the development phase we take an innovative approach to the con- struction process. Upon completion, all new devel- opments target a BREEAM rating of “Excellent” or better, incorporating industry-leading technologi- cal and environmental speciications to ensure that they minimise their impact on the environment. To date this approach has allowed CTP to attract capital at favourable terms and become one of the largest European real estate Green Bond issuers, thereby optimising our capital structure by signif- icantly lowering the Group’s cost of debt. Looking forward, in addition to investing in so- lar capacity to generate green electricity, a stra- tegic priority for the Group is establishing an en- ergy management platform based on self-generat- ed electricity. This platform will be overseen by a dedicated En- ergy Management function responsible for operat- ing our in-house renewable energy activities, which we can ofer to our new and existing customers. The Group increasingly considers acquiring brownield sites and covered land plays for rede- velopment, which drives local economic prosperity through job creation, while repurposing existing sites in an environmentally efective manner. How- ever, CTP goes beyond this by seamlessly inte- grating its parks into surrounding landscapes and communities, making CTParks an attractive place to work for the employees of our tenants. Our CTParks aim to ofer facilities where they can so- cialise and meet for business purposes (such as in our Clubhauses), but also exercise (in our leisure fa- cilities). They can even visit a medical aid centre at our parks or charge their electric vehicles. Executive Summary Business Strategy Our Business Model describes what we do as a business and our Strategy describes how we do it. Our strategy operates within the context of our purpose, our culture, our business model, and the highly-sustainable approach we take to doing business. Our motto is: “Your growth is our future”. Sustainable, Long-term Value Creation 3. Leveraging Excellent Teams and Entrepreneurial Culture The Group's fully integrated operating platform in- corporates our Group function “CTP International”, our top-30 leadership team and over 520 commit- ted employees. Our team’s proven expertise and comprehensive market intelligence form the core of our competitive advantage and our ability to provide shareholders with superior and sustainable returns. Equally, our Group’s dynamic and agile culture— its committed "hands-on" and "can do" approach— combined with our team’s energy and passion, are integral to CTP and our ability to grow and suc- cessfully execute all elements of our strategy. We therefore prioritise investing time and inancial re- sources into attracting, retaining, developing, and motivating talented employees based in local mar- kets, using our dynamic, purpose-led culture to in- spire and motivate. This approach ensures that our customers re- ceive superior product and best-in-class service, that our pragmatic, commercially minded teams located in the heart of each of our markets are em- powered to enable fast, eicient decision making and deliver operational results, which in turn gener- ates value for all stakeholders. 4. Prioritising Our Relationships and Reputation Our relationships and reputation among those with whom we engage provide a signiicant competitive advantage, which further enhances performance and our ability to secure opportunities for future growth. We take a long-term and mutually benei- cial approach, not only with our colleagues as de- scribed above, but also our customers, local com- munities, investors, and broader stakeholders. We originate most of our new business from our existing customers, which is a testament to the long-term, collaborative relationships that we have developed with them over the course of the past two decades. Over the last two decades, within our core mar- kets, we have cultivated strong relationships within our own supply chain—from the suppliers of build- ing materials to subcontractors. These enduring partnerships promote the seamless, cost-efective and eicient completion of our development pro- grammes. We know that what we do will impact the envi- ronment where we co-exist with our surrounding communities. Our partnership approach and pro- active engagement with communities, local author- ities and municipalities ensure that the value we deliver goes well beyond the inancial returns for shareholders; it extends to delivering economic and social value to our wider ecosystem in the long run. As a newly listed entity, the interests of our new shareholders are a key priority. Our transparent approach and open dialogue explaining who we are, how we deliver proitable growth and value accre- tion is integral to their longer-term support. Where We Operate As at 31 December, CTP operated in ten CEE mar- kets. These include the Group’s Core Markets of the Czech Republic, Slovakia, Hungary and Romania, where it is market leader in terms of owned GLA, with a growing market share of 27.5%. In recent years CTP has followed clients into what it refers to as its Expansion Markets, which includes Poland, Serbia and Bulgaria. More recently the Group has expanded into Austria, the Nether- lands and in early 2022, it made the strategic move into Germany. These New Markets enable CTP to service its clients from the North Sea to the Black Sea along all main European transit routes. Focusing on Disciplined and Proitable Growth Taking a Sustainable Long-term and Innovative Approach Leveraging Excellent Teams and Entrepreneurial Culture Prioritising Our Relationships and Reputation 1 2 3 4 Proitable & Exponential Growth Sustainable & Innovative Entrepreneurial & Driven Responsible & Connected 79 CTP International is supported by a talented pool of bright, young property professionals. With its HQ in Prague, the international team provides strategic and administrative services to all markets. 80 82 Strategic Operational Delivery 2021 in Review 2021 in Review CTP generated positive momentum in 2021, as the Group rigorously delivered across every element of its strategy and further strength- ened the foundations of its business to ensure that it is well positioned for future performance. Over the course of the last 23 years, CTP has grown into one of continental Europe’s leading industrial and logistics real estate companies, developing, owning and managing a high-quality portfolio of as- sets in over 120 locations spanning nine countries and serving over 750 clients. The scale and quality of its highly diversiied investment and development portfolio underpins CTP’s ability to deliver resilient, growing cash lows and attractive capital value over the longer term. The Group seeks to leverage its long estab- lished, scalable operating platform and deliver con- trolled organic growth, primarily through tenant-led development on its sizeable land bank, the majori- ty of which is in the vicinity of the Group’s existing large multi-use logistics and industrial CTParks. This growth is supplemented with considered, tac- tical income-producing acquisitions in its existing markets. In an increasingly competitive market, the Group’s “Parkmaking” expertise and vertically inte- grated operating platform is integral to its ability to execute its strategy and deliver growth and per- formance across its market-leading portfolio situ- ated throughout CEE. Focusing on Disciplined and Proitable Growth of Our Network of CTParks The Group increased the size of its investment portfolio to 7.6 million sqm GLA from 5.9 million sqm during the year, approximately 500,000 million sqm more than anticipated at IPO. CTP completed 900,000 sqm of development and acquired 835,000 sqm of strategic assets, which drove the growth in GLA and made a strong contribution to the 41% up- lift in the value of investment property, to €7,575 million (31 December 2020: €5,386 million). The value of CTP’s strategically located and high-speciication industrial and logistics parks continued to increase during 2021 despite uncer- tainty caused by the on-going pandemic. The port- folio’s end-of-year valuation, at an average yield of the portfolio of 6.4% compared to 6.9% in 2020, relected signiicant investor demand for industrial and warehouse assets across Europe. CTP beneits from irst-mover advantage and established scale in its four Core Markets, which together represent 94% of the Group’s total GLA. It remains the largest owner of industrial and logis- tics real estate assets in the Czech Republic, Ro- mania, Hungary, and Slovakia with a market share at year-end of 27.5% (31 December 2020: 23.9%), as measured by in-place GLA. The strength of its market share illustrates that the Group has be- come partner of choice for industrial and logistics occupiers in key CEE markets. CTP continued to make strong progress within its Expansion Markets of Poland, Serbia and Bulgaria, where it aims to se- cure a competitive market position within the next three to ive years. Source: CBRE OWNERSHIP SHARE (in %) CTP increased overall GLA market share in each of last four quarters CEE MARKET PLAYERS (in %) In-Place GLA Share Leasing Take-Up Share (%) 24.9 25.4 27.4 25.1 33.9 30.8 23.6 42.8 23.9 24.0 Q4 2020 Q1 Q2 Q3 Q4 2021 CTP Others Combined Next Three Competitors Combined 33.8% 28.2% 38.0% THE DISCIPLINED EXPANSION OF OUR NETWORK OF CTPARKS IN 2021 HISTORICAL GLA GROWTH (in million sqm) 9.0 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0 8.01.7 0.8 0.5 0.5 4.5 2017 2018 2019 2020 2021 GLA GROWTH BY COUNTRY Y-O-Y (in million sqm) Core Markets Expansion Markets New Markets 8.0 0.8 0.9 6.3 9.0 8.0 7.0 6.0 5.0 GLA 2020 Portfolio Developments Portfolio Acquisitions GLA 2021 in million sqm 2021 Total 83 Tenant-led Development Continues to Deliver Market-leading Capital Growth CTP has been the leading developer in the CEE region and has a longstanding track record deliver- ing sustainable growth through disciplined and prof- itable development. Some 60% of the Group's land bank is in the vicinity of its existing, well-established parks, which typically provides development land with the beneit of zoning. This allows the Group to mitigate development risk and respond swiftly to expansion requirements of existing clients. In 2021 demand from clients, either expanding operations within their current location or sign- ing a new lease on space elsewhere in the CTPark Network, represented 80% of new development leases (by sqm), compared to 65% of new leases arising from existing clients in 2020. CTP completed 900,000 sqm of high-quality developments during the period (31 December 2020: 585,000 sqm), of which 98% are let, in line with ex- pectations. The Group’s Yield on Cost for the whole portfolio remained strong at 11.0% compared to 11.6% as at 31 December 2020, well exceeding its target of over 10% in spite of continued cost/price inlation and shortages of construction materials. PASSING RENT DEVELOPMENT DURING 2021 (in € million) YIELD ON COST (in %) 500 450 400 350 300 250 200 150 100 50 0 437 7 39 34 13 344 2020 Upside Own Acquisitons Projects not 2021 from 2020 development standing 2018 2019 2020 YE 2021 10.80 0.16 0.14 0.12 0.10 0.08 0.06 0.04 0.02 0 13.50 11.60 11.00 84 THE DISCIPLINED EXPANSION OF OUR NETWORK OF CTPARKS IN 2021 OWN DEVELOPMENTS DELIVERY PER QUARTER, BY MARKET (in thousands sqm) 8,000 7,000 6,000 5,000 YE 2020 Q1 Q2 Q3 Q4 YE 2021 181 151 534 Core Markets Expansion Markets 34 7,200 6,300 OWN DEVELOPMENTS UNDER CONSTRUCTION PRE-LET, Y-O-C, PER QUARTER (in thousands sqm) 960 100% 80 60 40 20 0 1,200 1,000 800 600 400 200 0 740 1,190 79% 44% 11.00% 11.00% YE 2020 Q1 Q2 Q3 YE 2021 GLA Under Construction YOC PRE-LET 1,080 1,070 in thousands sqm in thousands sqm 73% 70% 63% 11.50% 11.60% 11.80% 85 WAULT TO EXPIRY (years) TENANT RETENTION (in %) LIKE FOR LIKE / RENTAL GROWTH (in %) OCCUPANCY (in %) 95.0 100 90 80 70 60 50 40 30 20 10 0 95.0 94.0 95.1 2018 2019 2020 YE 2021 1.5 1.4 1.5 1.6 2018 2019 2020 YE 2021 1.70 1.65 1.60 1.55 1.50 1.45 1.40 1.35 1.30 86.0 94 92 90 88 86 84 82 80 78 83.0 92.0 92.0 2018 2019 2020 YE 2021 5.4 8 7 6 5 4 3 2 1 0 5.4 6.0 6.7 2018 2019 2020 YE 2021 86 Delivering Resilient and Growing Income Streams CTP delivered a 27% increase in the Group’s an- nualised rental income, which was €437 million at year-end (31 December 2020: €344 million), as a re- sult of the growth in size of its investment portfolio and strong leasing activity. Income growth secured in 2020, including a like-for-like increase in rent of 1.6%, as well as new rent commitments from com- pleted developments, contributed approximately €50 million of new efective annualised rent during the year. Completed acquisitions added a further €39 million of annualised rent. The income streams generated by CTP’s high-quality 7.6 million sqm owned portfolio are underpinned by a wide and diversiied international tenant base of blue-chip companies from a broad range of industries. These include manufactur- ing, high-tech/IT, automotive, e-commerce, retail, wholesale, and distribution third-party logistics. This tenant base represents a solid balance be- tween diversiication and concentration for the Group, with no single tenant accounting for more than 3% of its annual rent roll. CTP’s top-twenty occupiers account for 24% of its annual rent roll, with 61% of the portfolio’s Gross Rental Income generated in the Czech Republic, the Group’s most established market. The long-term security of the Group’s income is ev- ident in the weighted average unexpired lease term (WAULT) of its investment portfolio, which was 6.7 years at the period end, up from 6.0 years at 31 December 2020. Most of this robust and diver- siied income stream also beneits from contracted annual growth. All of CTP’s new lease agreements, since early 2020, include a double indexation clause, which calculates annual rental increases as the greater of (i) a ixed increase of 1.5%–2.5% per an- num or (ii) the local Consumer Price Index. RECIEVABLES COLLECTION RATE (in %) 100 80 60 40 20 0 98.0 YE 2021 YE 2020 98.0 87 Supporting Existing and Potential New Clients Future Expansion CTP controls a prime land bank totalling 17.8 million sqm (at 31 December 2021) across all its markets, which ofers development potential to more than double the current GLA of approx. 8 million sqm. This scale leaves the Group well positioned to contin- ue to meet the on-going demand of its existing and potential new customer base (31 December 2020: 12.6 million sqm). This continued demand is under- pinned by structural tailwinds, such as the growth of e-commerce, digitalisation and near- and on-shoring as described in the Market section of this report. The Group replenishes and grows its land bank and targets an annual spend of approximately €150 million. It sources and acquires sites in key areas around logistics hubs with strategic development potential or in locations suitable for industrial man- ufacturing. CTP focuses on acquiring development sites that are in sought-after locations within prox- imity to strong logistics hubs and transport corri- dors and large, densely populated cities. The Group responded to the acceleration of the structural drivers in its markets and invested €193 million to expand its land bank in 2021, focusing particularly on acquiring sites within its Expansion and New Markets. This compares to €13 million in land bank acquisitions over the course of 2020. The Group made ive land acquisitions of note, pur- chasing 360,000 sqm of land adjacent to Schiphol Airport in the Netherlands; 99,000 sqm of land in Austria; two sites in Warsaw totalling 380,000 sqm; and one plot of 180,000 sqm close to Poland’s western border with Germany. CTP’s substantial land bank for logistics and industrial property development is either held di- rectly in ownership or controlled by way of exclusive long-term option agreements. It has exclusive op- tion agreements in place for land until an appropri- ate zoning arrangement suitable for industrial and logistics property development is granted. CTP can typically exercise such option agreements once the appropriate zoning is received, which is an efective risk management approach, as it delays the Group’s capital deployment until development potential be- comes more certain. In general, these options re- quire a small down payment, thereby signiicantly lowering the amount of capital needed to secure the control over the site. These option agreements rep- resent 32% of the Group’s land bank. The land bank revaluation in 2021 was €43 mil- lion (2020: €10 million). The total land bank as part of the Investment Property is valued at €527 million (2020: €326 million). LAND BANK DEVELOPMENT 2020-2021 (in million sqm) Under Ownership Under Option in million sqm 20 15 10 5 0 YE 2020 Acquired Land bank Land bank Options Disposals YE 2021 (including transferred transferred transferred exercised to/from IP from/to IPuD to ownership options) 17.8 9.6 0.2 -1.9 -1.9 -0.8 12.6 88 LAND BANK 2021 BY MARKET GROUP (in million sqm) Core Markets New Markets Expansion Markets LAND BANK 2021 BY COUNTRY (in million sqm) Others 0.1 RO 2.9 SK 1.7 NL 1.3 CZ 5.9 HU 3.3 PL 1.3 RS 0.6 AT 0.4 BG 0.4 13.8 2.3 1.7 89 GLA UNDER CONSTRUCTION YE 2021 (in sqm) CZ 292,000 31% SK 89,000 AT 85,000 HU 134,000 RO 172,000 RS 89,000 18% 10% 14% PL 96,000 9% 9% 9% GLA UNDER CONSTRUCTION YE 2021 (in sqm) New Markets 85,000 9% 19% Core Markets 687,000 72% Expansion Markets 186,000 90 The Strategic Acquisition of Income-producing Assets CTP also acquires strategically important accre- tive income-producing assets where it sees an im- perative to do so. These acquisitions will either be in response to a customer requirement, adjacent to existing CTP properties, or to provide the Company with a foothold in a new country. The Group accelerated its acquisition pro- gramme in 2021 in response to positive market dynamics and purchased a total of 835,000 sqm of assets for €554 million. These acquisitions add- ed scale to the business, mainly in Czech Republic, Romania, Hungary, Slovakia and the Netherlands. The strength of the Company’s reputation and established network of relationships enabled it to make most of these acquisitions of-market. The purchases are accretive to the Company’s existing investment property portfolio with an average yield of 7.1%, compared to CTP’s portfolio yield of 6.4% (at 31 December 2021). Protecting and Enhancing both Income and Capital Value CTP leverages the synergies between its develop- ment expertise and its asset management exper- tise by remaining the long-term owner and provider of property management services following practi- cal completion of an asset, thereby closely aligning the Group’s interests with those of its clients and surrounding communities. The Group continuously evaluates and proactive- ly manages its properties and parks to preserve and enhance the long-term performance of the its portfolio. It has dedicated teams that use their in- sights, customer relationships and entrepreneur- ial culture to collaborate with occupiers to iden- tify and execute asset management initiatives. These initiatives include actively leasing any vacant spaces, agreeing rent reviews, securing lease renewals, improving sustainability credentials, and delivering building extensions. The Group has maintained low vacancy rates of 5% (31 December 2020: 6%), achieved high cus- tomer retention rates of 92% during the period (31 December 2020: 92%), and grew its rent roll to €437 million, capturing the reversionary potential inherent in the portfolio as a result of its active ap- proach to managing the portfolio. The portfolio’s WAULT is 6.7 years (31 December 2020: 6.0 years), and rent collection saw 98% of payments being re- ceived before falling due (31 December 2020: 98%). The Company’s strong and long-standing occu- pier relationships underpin retention and repeat leasing activity. It has achieved rents up to 25% higher than recorded at the end of 2020 in its Core Markets, such as the Czech Republic, demonstrating the underlying market fundamentals of strengthen- ing demand combined with constrained supply. DEVELOPMENT PIPELINE, YE 2021, YEAR OF DELIVERY (in sqm) 1,000,000 900,000 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 0 2022 2023 2024 912,000 32,000 14,000 91 BUILDINGS BY TOTAL SIZE SHARE OF BUILDINGS GLA (in %) 15% 57% 28% Over 40,000 10,000 – 40,000 Less than 10,000 PORTFOLIO BY TENANT INDUSTRY (in % GLA) REVENUE BY BUILDING USE (in % GRI) 100 90 80 70 60 50 40 30 20 10 0 2018 2019 2020 2021 84% 85% 86% 86% Production & WareHousing Warehousing & Logistics Manufacturing Automotive Other Offi ce Third-Party Logistics & Distribution Total Exposure to WarehousingOther 50% 7% 21% 22% 92 Top 20 Clients THE TOP 20 CLIENTS TOP 20 share of rented 23% GLA as of YE 2021 TOP 20 share of GRI, 2021 24% Rank Tenant Buildings Parks GLA (in thousands sqm) 1 Yanfeng 8 3 149 2 DHL 13 9 144 3 Quehenberger 11 5 136 4 Loxxess 2 1 113 5 DSV 8 4 111 6 DeliHome 20 1 104 7 Primark 1193 8 Raben 12 12 93 9 Faurecia 7691 10 Schenker 10 7 78 11 Maersk 1176 12 Honeywell 6276 13 Brembo 3166 14 WistronInfoComm 1165 15 Bridgestone 1162 16 JV Europe 4459 17 International Automotive Components 4257 18 Thermo Fisher Scientific 2157 19 ProfiRom Food 2156 20 Tech Data Distribution 1154 1,740 93 Top 10 Parks Total top 10 Portfolio % of portfolio Land bank 2,172 17,830,657 12.18% GLA 3,628 8,009,128 45.30% Tenants 334 750 44.53% Under Construction 169,229 957,780 17.67% Wault (yrs) 6.35 6.7 – Occupancy 93.90% 95.10% – Buildings 182 534 34.08% Growth Opportunity 977,576 8,023,795.65 14.20% TOP 10 PARKS KEY DATA 1 In thousands sqm. 3. CTPark Bucharest 544 1. CTPark Bucharest West 747 2. CTPark Bor 554 GLA 2020 GLA 2021 Fully Built-out Landbank 94 Rank Park GLA 2020 GLA 2021 Share of GLA (%) Under construction GLA 2021 Adjacent landbank 2021 Wault (yrs) Occu- pancy (%) Total proper- ties 1 CTPark Bucharest West 661 747 9% 15 1,301 5.19 89% 16 2 CTPark Bor 415 554 7% 60 155 7.41 98% 12 3 CTPark Bucharest 496 544 7% 11 206 4.23 92% 40 4 CTPark Brno 494 503 6% - 299 6.90 98% 26 5 CTPark Ostrava 374 388 5% - 20 9.20 96% 28 6 CTPark Budapest West 196 228 3% 54 46 5.16 89% 13 7 CTPark Modřice 201 208 3% - 27 4.71 94% 19 8 CTPark Budapest East 103 182 2% 21 8 6.22 99% 6 9 CTPark Hranice 153 152 2% - 89 8.30 92% 6 10 CTPark Bratislava 117 124 2% 8 21 4.05 97% 16 Total 3,210 3,630 45% 169 2,172.4 182 THE TOP 10 PARKS make up 45% (GLA of our portfolio) are home to 45% of our over 750+ clients and can still grow with over 1.1 million sqm GLA developement opportunity The top 10 parks represent the core of the CTPark Network. They are thriving business communities with a dynamic mix of clients from a broad range of industries. 1 In thousands sqm. 4. CTPark Brno 503 5. CTPark Ostrava 388 in thousands sqm 7. CTPark Modřice 207, 10. CTPark Bratislava 124 6. CTPark Budapest West 228 8. CTPark Budapest East 182 9. CTPark Hranice 152 95 96 Placing Sustainability and Innovation at the Core of What We Do CTP has sought to be responsible for the impact of its developments and operational assets on the environment and surrounding communities since its inception and places the delivery of meaningful value for all stakeholders at the heart of its “Parkmaking” philosophy. It develops properties with a view to holding and operating them over the long term. It incorpo- rates high standards of sustainability in both con- struction and operations as an integral part of the Group’s strategy, which is a key diferentiator when attracting high-quality customers. CTP is the only major pan-European industrial and logistics real es- tate company with a 100% BREEAM-certiied port- folio of “Very Good” and better as a result. CTP applies its “Parkmaking” expertise to add strategic value to its customers, together with economic and social value to its surrounding com- munities. It does not just develop and own ener- gy-eicient buildings but also plays an integral role in supporting the well-being of local populations, providing space and services within CTParks, such as our Clubhaus concept, leisure, educational and medical facilities for all local stakeholders to use and enjoy. The Group established a dedicated ESG function in 2021 to continue towards meeting its sustaina- bility objectives. The ESG team has deined CTP’s overall ESG strategy, encompassing the four pillars of neutralising greenhouse gases, embedding parks, stimulating social impact & well-being, and conduct- ing business with integrity. These sit at the core of the company’s ESG approach and support ten of the 17 United Nations Sustainability Development Goals (UN SDGs). Doing the Right Thing in 2021 Our compelling investment story is matched with the highest sustainability standards in the business. CTP is the only industrial and logistics developer and operator in Europe with a fully BREEAM-certifi ed portfolio and we are now operationally carbon neutral. During 2021 we were rated ESG Low Risk by Sustainalytics and following an audit of our emissions, our operations were rated as far exceeding our CO₂ neutrality target— es sentially achieving net negative CO₂ in emissions. Last year, CTP was also the largest issuer of green bonds across all property sectors. We believe that these actions leave us well placed to continue to deliver attractive total fi nancial and sustainable returns over the coming years. Delivering Sustainability 2021 in Review 2021 CARBON NEGATIVE OPERATIONS 1. Neutralise Greenhouse Gases: CTP recognises the science conveyed in the Sixth Assessment Report of the IPCC 1, which states that man- made climate change is a reality. It is, there- fore, deining its net emission targets to be in line with the reductions in Green House Gas (GHG) emissions required to keep global warm- ing to a maximum of +1.5ºC. CTP focuses on two priorities aimed at ofsetting its carbon footprint and targeting carbon neutrality: • It acquires and manages land for reforest- ation in the Czech Republic, diligently maintaining them and replanting native tree species as well as taking measure to strengthen biodiversity. It now owns 560 hectares of forests in the Czech Republic, which had in the past sufered from deg- radation as a result of the prior introduc- tion of wood from non-indigenous species and the emergence of the destructive bark beetle. CTP’s objective is to own one square metre of land for every square metre in the Group’s property portfolio. • It is rolling out electricity generated by pho- tovoltaic solar panels housed on the vast rooftops of its assets. CTP upgraded its design standards in 2010, and since then all its developed assets have been construct- ed to accommodate the installation of solar panels. 2. Embedding Parks: This pillar focuses on en- suring that CTParks become part of the en- vironment and community in which they are built. This goal demands high-quality buildings, multi-purposing terrain use and improving biodiversity. CTParks are to be used by the people working there as well as appreciated by surrounding communities. 3. Stimulate Social Impact & Well-being: CTP's values include being a responsible member of society. Its corporate culture caters to active community engagement and support for the environment in which we live and operate. The 3rd ESG pillar on social impact and well-being is derived from this. CTP actively interacts with the communities in which it operates through charities related to well-being and education. 4. Conducting Business with Integrity: Integrity is a core CTP value. The Group values ethical, fair, and honest behaviour towards employees, customers, suppliers, competitors, public au- thorities and regulators, shareholders as well as any other party involved in its day-to-day activities. The Group operates a company-wide Code-of-Conduct that is updated annually. It has a solid compliance function that monitors adherence to important governance policies, including those on Anti-bribery and Corrup- tion, Anti-discrimination and Harassment, An- ti-money Laundering, Diversity, Insider Trad- ing, as well as on Related-party Transactions. CTP’s in-house risk management function has formalised processes to manage diferent risks. More detail on CTP’s approach to risk management is found in the Risk Management section of this Annual Report. SDGs Our Goals and Actions are set up with the United Nations Sustainable Develop- ment Goals (SDG), the Paris Climate Accords, and the European Green Deal in mind. We apply initiatives like the Science Based Target initiative (SBTi) and Carbon Risk Real Estate Monitor (CRREM) to decarbonise our portfolio to stay within the 1.5ºC temperature increase as per the Paris Climate Accords. These frameworks are the foundation upon which CTP builds its ambitions. Specifi cal- ly, they are in alignment with 10 of the 17 UN SDGs. Conducting Business with Integrity 4 Stimulate Social Impact & Well-being 3 Embedding Parks 2 Neutralise Greenhouse Gases 1 ESG Strategy 97 BREEAM-CERTIFIED BUILDINGS, CZECH MARKET (in %) BREEAM IN-USE COMPLETION RATE (in %) CZ SK HU RO Others 100 90 80 70 60 50 40 30 20 10 0 83 100 100 100 86 Panattoni 25 P3 Parks 64 CTP 198 15% 6% 46% 26% Other 112 5% 2% Prologis 22 DIFT/The Park 10 98 BREEAM CERTIFICATION BREEAM CERTIFICATION BY COUNTRY Good Very Good Excellent Pending Good Very Good Excellent Outstanding Pending CZ Others CZ CZ SK RO RO SK HU HU HU BREEAM New Construction BREEAM In Use 0 50 100 150 200 250 300 Czech Republic Slovakia Romania Hungary Others 99 A review process was conducted by the external agency SCS to assess CTP’s progress on realising carbon neutrality for Group operations. SCS calcu- lated the 2021 gross carbon footprint of the Group (for Scope I and II) in COe (CO-equivalent) and con- irmed that CTP’s carbon-capture capacity (through its owned forests) was greater than its COe emis- sion. CTP acquired a further 460 hectares in Zlin, in southern Moravia, Czech Republic in 2021 and planted over 100,000 trees within its forests, which was comparable to the number of trees planted in 2020. The Group’s 560 hectares of forest captured some 42,800 metric tonnes of COe over 2021. This compares to CTP’s COe footprint of 2,345 metric tonnes in 2021, largely because of the move to re- newable energy after 2012. Its installed solar base stood at 6,115 kWp by year-end 2021, which was comparable to the base by year-end 2020. As a re- sult, over the course of 2021, the total of 5,615 MWh of electricity that was generated was similar to the 5,893 MWh generated in 2020. Another key aspect of the Group’s sustainability proile concerns the certiication of CTP’s 7.6 million sqm logistics and industrial portfolio, as “Very Good” or better by the Building Research Establishment Environmental Assessment method (“BREEAM”), the world’s irst standardised method for assessing the sustainability of buildings. CTP ranked among the top 1.5% of companies scored by Sustainalytics in 2021. The Group realised a “Low Risk” score in respect of ESG matters, and Sustainalytics awarded CTP two top badges in 2021 for its ESG score, benchmarked within both (i) its In- dustry as well as in (ii) its European Region. Prioritising Our People CTP underpins its growth through investing in its people and is committed to the strengthening and development of its team. The Group’s total num- ber of full-time employees grew from 394 to 520 in 2021. It provides its employees with the oppor- tunity for continuous education and professional development, ofering a range of learning opportu- nities such as language courses and sponsorship of further education programmes such as MBAs. CTP seeks to embed a culture of diversity and inclusion throughout the business in line with its goal to ben- eit from a truly diverse workforce representing the diversity of the countries where it operates. As at 31 December 2021, CTP recorded 15 nationalities among its employees, with a relatively even gender split of 46% females and 54% males (31 December 2020: 50% females and 50% males), with an aver- age staf age of 39 years. CTP normally organises Company-wide gather- ings twice a year, but as a result of the pandemic, there was only one Group-wide meeting in 2021, which took place in September. These events are integral to embedding a united culture, as well as fostering a stronger bond among colleagues, which in turn strengthens collaboration throughout the Group across diferent teams and countries. OWNED FOREST UNDER ACTIVE MANAGEMENT (in Ha) 5,615 YE 2021 YE 2020 600 500 400 300 200 100 0 100 560 5,893 SOLAR POWER GENERATED (in MWh) YE 2021 YE 2020 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 METRIC TONNES Emissions Captured 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 2,345 42,800 CTP NV ESG Risk Rating Global RANK LOW RISK 11.0 198 / 13,733 N e gl . 0 -1 0 Medium 20-30 High 30-40 Severe 40+ Low 10-20 100 101 1. Neutralise Greenhouse Gases Reforestation In October we organised a tree-planting event involving our CTP employees, local scouts clubs and people from the surrounding communities. 102 2. Embedding Parks Tree Planting Brno With the local mayor, CTP donated and planted an area in a residential area near our park CTPark Brno Líšeň. Local Species of plant, grasses, fl owers and fern are planted by the Clubhaus in CTPark Bucharest West Tree planting took place in our oarks all over Romania. Here we see the team getting stuck in at Bucharest North The forests we purchased and replanted signifi cantly reduced our overall carbon footprint. Nature inclusive wildlife in CTPark Ostrava. 103 3. Stimulate Social Impact & Well-being “Young Talent” tour a factory in the Czech Repbublic. Working with the Tereza Maxová foundation, CTP continued to assist children from broken homes to access the workplace. With UNHCR, CTP sponsored access to higher education in Europe for 70 refugee students. Around the region, CTP introduced aspiring architects and young students to the work that goes on in our developments. In Slovakia, CTP helped build temporary housing. CTP supported biking in Brno and Ostrava (CZ) sponsoring 160 bikes, whose riders removed over 6,000 Kg of CO₂ pedalling over 54,000km. 104 4. Conducting Business with Integrity Jakub Kodr takes MBA students on a tour of premises as part of their MBA Real Estate programme. Opening of the street gym in CTPark Bratislava. 105 106 Profit and loss 2021 2020 2019 2018 Rental income 334.7 291.9 258.0 242.0 Czech Republic 204.3 186.8 173.1 176.4 Romania 60.5 49.5 41.1 34.4 Hungary 31.1 25.8 21.3 10.3 Slovakia 25.8 22.9 18.4 16.9 Other 12.9 6.9 4.1 4.0 Service charge income 31.1 25.9 22.4 20.0 Property operating expenses -38.9 -37.1 -40.6 -29.8 Net rental income 326.9 280.7 239.8 232.2 Net income from development activities 9.4 22.4 0.6 -- Net valuation results on investment property 1,100.6 152.2 406.8 239.4 Profit/Loss before finance costs 1,376.8 391.9 617.9 482.4 Profit for the period 1,025.9 252.5 392.2 361.5 Company-specific adjusted EPRA EPS (in €) 0.49 0.44 Strong Financial Performance CTP delivered its strongest fi nancial performance to date in 2021, delivering profi table growth by developing its portfolio’s GLA to over 7.6 million sqm. It preserved healthy fi nancial metrics, congruent with an Investment Grade credit rating and in line with its diligent approach to expansion. OPERATING RESULTS (in € millions) Strong Financial Performance 2021 in Review ASSETS & LIABILITIES (in € millions) Balance Sheet 2021 2020 2019 2018 Total assets 9,686.6 6,446.3 5,526.0 4,637.4 Investment propertY 7,575.1 5,386.2 4,721.4 4,024.0 Under development 774.2 387.3 440.7 315.4 Cash 892.8 419.1 63.8 46.3 Total liabilities 5,579.8 4,182.1 3,483.1 3,676.6 Loans 1,131.3 2,352.3 2,677.8 2,129.6 Bonds 3,381.7 1,042.0 -- Total equity 4,106.8 2,264.2 2,042.8 960.7 Net Rental Income Net rental income increased during the period by 16.5% to €326.9 million from €280.7 million in 2020, driven by the positive impact of development com- pletions across all CTP markets, disciplined in- vestment activity and like-for-like rental growth of 1.6%, derived from the portfolio’s contracted annual rental growth. In the Group’s Core Markets, Net Rental income grew by 14.7% to €324.1 million, whereas Expan- sion and New Markets showed an increase of 87.9% to €12.2 million. The Covid-19 pandemic did not impact the Group’s cash low, with both rent collection rate and occupancy rate achieving record levels throughout 2021. Net operating income from hotel operations was negatively impacted by the Covid-19 pan- demic. Global restrictions on travel resulted in a loss of €2.6 million compared to a loss of €0.1 million in 2020. The Group’s net operating income from development activities within its indust- rial and logistics portfolio fell from €22.4 million in 2020, to €9.4 million in 2021. This reduction in operating income in 2021 is accounted for by the unusual sale of an asset in 2020, which generated a one-of return. Administrative and Operating Costs The Group’s administrative and operating costs in- creased to €58.3 million (31 December 2020: €56.1 million). The increase in operating costs relected the growth of CTP in 2021 and is driven primarily by the increased number of full-time employees from 394 to 520. The Group’s inancing costs during the period were comparable to those in the previous year at €100.1 million (31 December: €101.5 million). These were largely one-of costs associated with the imple- mentation of the Group’s active reinancing strategy during the year, including one-of prepayment costs and fees related to the unwinding of hedges. Foreign Currency CTP is exposed to limited currency risk, as its lease income is denominated in euros and it has limited operating and inancial costs denominated in local currencies. In terms of currency translation risks noted on the Group’s balance sheet, net currency risks are equally limited, as the valuations of the Group’s properties along with all interest-bearing debt are denominated in euros. In terms of transac- tional currency risk, a small amount of construction costs is denominated in local currencies. However, this brings limited exposure, as typically rents re- lated to developments are set at levels that take such risks into account at the time of signing the rental agreement. Taxation Tax expense increased signiicantly during 2021, from €37.9 million in 2020 to €250.7 million. Most of this increase is a deferred tax expense connected to the net valuation result on investment property of €1,100.6 million. Proit The proit after tax for the period increased by 306% to €1,025.9 million compared to €252.5 mil- lion in 2020. This signiicant increase is driven by the strong valuation result and the growth in rental income. EPRA Financial Performance Metrics The twelve-month period ending 31 December 2021 is the irst inancial year in which CTP is report- ing EPRA inancial performance metrics. Compa- ny-speciic Adjusted EPRA earnings increased to €0.49 compared to €0.44 in 2020 (calculated on outstanding shares as at 2020). The EPRA NTA per share increased by 45% to €12.06. The EPRA “topped-up” net initial yield decreased from 6.2% to 5.6%. A detailed overview of EPRA inancial perfor- mance metrics is included in Appendix C. Dividends In line with its dividend policy of paying out 70% to 80% of its Company Adjusted EPRA Earnings, CTP paid out its irst interim dividend on 22 September 2021, covering the irst half-year. In line with its dividend policy, CTP ofered dividend either in stock or cash that amounted to €0.17 as a cash dividend or 1 share for each 108 shares when in stock, re- spectively. A total of 92% of shareholders opted for payment of the interim dividend in stock. Following the pay-out, CTP’s total number of shares stood at 400 million shares at year-end. 107 Investment Portfolio Investment property increased by 40.6% from €5,386.2 million in 2020 to €7.575.1 million as at 31 December 2021. This growth in 2021 is driven by an increase in the Group’s owned GLA to 7.6 mil- lion sqm, comprising 900,000 sqm of development completions and 835,000 sqm of strategic acqui- sitions. Another important factor was the acceler- ated yield compression that took place during 2021, which was relected in the year-end valuation, with the portfolio’s average yield of the portfolios stand- ing at 6.4% as at 31 December 2021, compared to 6.9% in 2020. The investment property overview illustrates the relative increased importance of the Expansion and New Markets when comparing the 2021 year- end composition to that of 2020. Especially the de- crease in relative importance of the Group’s port- folio in the Czech Republic is noted, with Expansion Markets Poland and Bulgaria gaining. As at 31 December 2021, there are 958,000 sqm of assets under development, which compares to 740,000 sqm at 31 December 2020. This invest- ment property under development is recorded at a highly attractive Yield on Cost of 11.0% (year-end 2020: 11.6%). The total land bank value, as part of the investment property, increased from €325.9 million to €526.9 million following an active year from a transaction perspective. At 31 December 2021, the Group’s land bank comprised 17.8 million sqm, compared to 12.6 million sqm at year-end 2020. The Group invested €193 million in replenishing its land bank, in line with its accelerated approach to secure future pipeline potential and capitalise on strengthening market fundamentals in 2021. Efective Funding and Improved Liquidity The Group continues to take a prudent approach to inancial policy and credit metrics and beneits from a solid liquidity proile and conservative re- payment proile. At 31 December 2021, the Group’s Net Loan to Value (LtV) was 42.8 % (31 Dec 2020: 50.7%), with an Interest Coverage Ratio (ICR) of 5.0 times (31 Dec 2020: 3.8 times). The Average Cost of Debt decreased from 1.6% at the time of IPO, to 1.2% as at 31 December 2021, relecting the implementation of the Group’s active reinancing strategy during the period, migrating from secured loans to unsecured funding with the objective of taking advantage of favourable inanc- ing conditions to further strengthen CTP’s capital structure. This reinancing strategy comprised of bond issuances totalling €2.5 billion during 2021 under its Euro Medium Term Notes (“EMTN”) Programme. CTP's EMTN Programme was updated and increased to €8 billion on 6 August 2021 as part of a regular annual process. In September 2021, €150 million of the October 2025 Series were successfully tendered. As a re- sult, a total of €3.4 billion of bonds are outstanding under CTP’s EMTN Programme as at year-end. The EMTN Programme enables the Group to is- sue Green Bonds on the Dublin Euronext Exchange, the irst of which was listed on 1 October 2020. To date, CTP's Green Bond issuances can be found in the summary table on the facing page. VALUE (in € millions) OF LAND BANK PER COUNTRY 2021 VS 2020 VALUES (in € millions) OF INVESTMENT PROPERTIES PER COUNTRY 2021 VS 2020 600 500 400 300 200 100 0 2021 2020 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 2021 2020 325.9 CZ RO HU SK RS PL BG SL BG RS SL AT PL 7,575 CZ RO HU SK 5,386 CZ RO SK PL AT RS HU BG CZ RO HU SK SL RS PL BG NL 526.8 108 2021 GREEN BOND ISSUANCES Commitment Series Issue Date Coupon Maturity Due Date €650 million Series Oct2025 01/10/2020 2.125% 5 years 01/10/2025 €400 million Series Nov2023 27/11/2020 0.625% 3 years 27/11/2023 €500 million Series Feb2027 18/02/2021 0.75% 6 years 18/02/2027 €500 million Series Jun2025 21/06/2021 0.50% 4 years 21/06/2025 €500 million Series Jun2029 21/06/2021 1.25% 8 years 21/06/2029 €500 million Series Sept2026 27/09/2021 0.625% 6 years 27/09/2026 €500 million Series Sept2031 27/09/2021 1.50% 10 years 27/09/2031 COST OF DEBT VS PORTFOLIO YIELD (in %) 1 €150 mln of this issuance was repaid in September 2021 7.2 7.0 6.8 6.6 6.4 6.2 6.0 5.8 5.6 5.4 3.0 2.5 2.0 1.5 1.0 0.5 0 Cost of Debt % Portfolio Yield % 2018 2019 2020 Q1 2021 Q2 2021 Q3 2021 YE 2021 Portfolio Yield Cost of Debt 7.0 2.50 7.0 6.9 2.10 2.00 1.571 1.194 1.193 1.19 6.4 109 Issue Dates for Cost of Debt In September 2021, CTP published its irst Green Bond report. This report includes an overview of the use of bond proceeds for funding eligible proj- ects (i.e., green buildings). The publication features a second-party opinion by Sustainalytics, Inc. CTP holds strong relationships with some 15 in- ternationally operating lending institutions beyond the 10 Dealerships in its EMTN Programme. Of these, 10 participate in CTP’s €400 million three- year unsecured Revolving Credit Facility (RCF), which was committed in July 2021 and serves the Group’s short-term liquidity needs. In addition, three diferent senior, secured credit facilities have been granted by syndicates of lending institutions, each of which fund a portfolio of properties. CTP complied with all conditions that are applicable to these credit facilities during 2021. The Company received a long-term issuer rating of BBB- (stable outlook) from S&P and a long-term issuer rating of Baa3 (stable outlook) from Moody’s in September 2021. These ratings are applicable to the unsecured debt that CTP N.V. has issued. Both rating agencies have assigned a stable outlook to each of their respective ratings for the Group. CTP’s shares were listed on the Amsterdam Euronext stock exchange on 25 March 2021, through an Initial Public Ofering. The listing comprised the issue of 61.0 million new shares at a price of €14 per share, which were placed as a primary ofering. CTP Holding BV, as holder of 336.0 million shares at the time of the IPO, subsequently exercised part of its greenshoe clause and placed another 5.3 mil- lion shares, thereby increasing the free loat of CTP shares to 84%. The IPO resulted in net proceeds of €819 million. Equity increased from €2,264.2 million at 31 December 2020 to €4.106.8 million at 31 December 2021. CTP NV had 400 million shares outstanding as of 31 December 2021 (31 December 2020: 336 million shares. Cash Flow Overview Cash low arising from operating activities dropped to €139.1 million in 2021 from €185.4 million in 2020 despite the increase in EBITDA in 2021, as a result of a decrease in CTP’s working capital of €65.1 million. Cash low generated from investing activities was signiicantly reduced in 2021, as a result of record levels of constructions and associated cap- ital expenditure as well as acquisitions made dur- ing the period. Investments in development in 2021 increased from €359.2 million to €599.6 million. Similarly, acquisitions of standing investments to- talling 835,000 sqm played an important role in the growth of the portfolio during the period with a cash outlow of €554 million. This sum excludes any cash low connected to CTP’s tender ofer for Deutsche Industrie REIT AG. CTP had a very active year in terms of inancing, as mentioned above, with the spring IPO, where it raised net €819 million and several bond emissions, totalling net proceeds of €2,480 million. Financing cash low was strongly positive, enabling the Group to fund both its development activities until the year-end, as well as to pre-fund the pipeline of de- velopments for 2022. Green Bond Report Front Cover INTEREST COVER RATIO (in %) YE 2021 YE 2020 6.0 5.0 4.0 3.0 2.0 1.0 0 3.8 5.0 110 Post-period Events CTP NV closed a €700 million four-year Green Bond under its €8,000 million EMTN programme on 20 January 2022. Total demand for CTP’s issue peaked at circa €1.3 billion, relecting the solid rep- utation CTP has built with investors in corporate Green Bonds in the 15 months since the company entered the capital markets for funding. The pric- ing of the annual coupon in January’s four-year tranche was ixed at 0.875% The Group’s Average Cost of Debt fell to 1.12% from 1.19% since Septem- ber 2021. The tenor of CTP’s debt now stands at 5.9 years versus 6.2 years. CTP NV announced the completion of the take- over and delisting ofer for Deutsche Industrie REIT-AG on 3 February 2022, which will be inte- grated into CTP Germany. Following integration of this successful acquisition, CTP Germany holds immediate scale in Europe’s largest economy, as it represents about 15% of CTP’s portfolio and be- comes its third-largest market by gross asset value after the Czech Republic (42%) and Romania (21%). Update in Relation to the On-going Events in Ukraine The tragic events unfolding in Ukraine have cast a shadow over global markets and our positive outlook for 2022. As at the date of publication of these inancial results, CTP has not experienced any material operational or inancial impact on its business. We will continue to monitor the situation and revise our approach to minimise any negative efects as events unfold. Despite these current global uncertainties, the Group is well positioned, thanks to its integrated business model, strong 2021 results, stable inancial position, diversiied client base and agile company culture. In line with our ESG principles, we have made a commitment to help support Ukrainian refugees by providing signiicant inancial support to UN High Commission for Refugees (UNHCR) and the Red Cross, as well as local relief agencies. Other initia- tives include providing vacant warehouse space for emergency supplies and residential and hotel accom- modation within our portfolio, and we will do more as the situation develops. Outlook and Priorities for 2022 Although mindful of the on-going impact of the pan- demic and current macroeconomic and geopolitical risks, CTP remains conident in its growth ambitions for the coming year. In 2022, with its successful busi- ness model and a set of clear objectives in mind, the Group will continue to diligently execute its strategy and underpin performance through its client-centric approach, which delivers its occupiers with a pre- mium, full-service ofering. With a strong balance sheet and inancing capacity, CTP is well positioned to continue to capitalise on the strengthening occu- pational demand from both its existing and potential new clients. Against this backdrop of strong occupa- tional demand for high-quality industrial and logis- tics space throughout the CEE, together with histor- ically low vacancy rates, rental growth is expected to continue across most markets. Key strategic priorities for CTP in the coming year include maintaining the portfolio’s strong opera- tional metrics, including a WAULT in excess of 6.5 years, like-for-like rental growth of more than 1.7% and a Yield on Cost of more than 10%. The Group also expects to deliver shareholders an EPRA EPS of c. €0.60 for 2022. Another strategic target is to deliver double- digit GLA increases in each of our markets, focusing much of this growth within our established top-ten parks. We anticipate that this organic expansion will be supplemented with approximately 500,000 sqm GLA of strategic acquisitions. To provide the Group with future development capacity, CTP intends to invest approximately €150 million in land bank ac- quisitions. This GLA growth should ensure that CTP is well positioned to grow its market share beyond its current 27.5% in each of its core markets. The on-going integration and build-out of the former DIR portfolio and launch of CTP in Germany, which is now the Group’s third-largest market after the Czech Republic and Romania, is well underway. CTP intends to double the size of its German port- folio by 2026, with €1 billion allocated for capital expenditure for greenield, brownield and upgrade investments. Finally, a key strategic priority for the Group in 2022 is to pursue its meaningful ESG aspirations, including the build-out of its solar capacity, bolster- ing its carbon neutral position, and obtaining rat- ings for its ESG proile, thereby optimising CTP’s capacity to continue to deliver meaningful value for all stakeholders. CASH FLOW OVERVIEW (in € millions) 2021 2020 Cash at start of the period 419.1 63.8 Cashflow from Operational Activities 139.1 185.4 Cashflow from Investing Activities -1,435.2 -469.1 Cashflow from Financing Activities 1,768.7 641.1 Cash at the end of the Period 892.8 419.1 202 1 419 . 1 1 3 9.1 - 1 , 435. 2 1,76 8 . 7 892 .8 52.0 50.0 48.0 46.0 44.0 42.0 40.0 38.0 CONSOLIDATED NET LTV (in %) YE 2021 YE 2020 50.7 42.8 111 G E R M N E T H E R L A N D S F R A N C E S W I T Z E R L A N D I T A B E L G I U M BERN BASEL ZÜRICH BRUSSELS LUXEMBOURG LYON MARSEILLE LILLE GHENT ANTWERP LIÈGE METZ STRASBOURG KÖLN MANNHEIM MILAN TURIN GENOA ROTTERDA DAM DAM UTRECHT ARNHEM GRONINGEN STUTTGART FRANKFURT DÜSSELDORF DORTMUND BREMEN HAMBURG HANNOVER EINDHOVEN AACHEN AMSTERDAM 112 The CTP Portfolio2021 in Review CTP’s Unmatched Industrial and Logistics Portfolio: The Cornerstone of a Resilient European Supply Chain Our Core Markets CTP is the leading logistics player as measured by owned industrial GLA in each of its established Core Markets of the Czech Republic, Romania, Hungary, and Slovakia. In these four markets com- bined, CTP has a growing market share of over 27%. As of 31 December 2021, the Group owned the four larg- est industrial parks in the CEE region, including CTPark Bucharest West and CTPark Bu- charest in Romania and CTPark Brno and CTPark Bor in the Czech Republic. Our Expansion Markets In recent years we have di- versifi ed our portfolio and successfully executed ten- ant-led expansion into the three new key markets of Ser- bia, Bulgaria and Poland. We refer to these as our Expan- sion Markets, where we aim to become a prominent player in the medium term. Our New Markets Our access to the interna- tional capital markets has facilitated the start-up of new operations in Austria and the Netherlands, as well as our strategic entry into Germany. These New Markets now enable us to service our clients from the North Sea to the Black Sea along the main European transit routes in their home markets and where they are expanding. P O L A N D C Z E C H I A S L O V A K I A H U N G A R Y S E R B I A B U L G A R I A R O M A N I A A N Y A U S T R I A T U R K E Y G R E E C E ALBANIA NORTH MACEDONIA MONTENEGRO C R O A T I A S L O V E N I A BOSNIA AND HERZEGOVINA L Y SARAJEVO PODGORICA TIRANA SKOPJE THESSALONIKI ISTANBUL ZAGREB LJUBLJANA TRIESTE VENICE S[#£ NtN[ KOŠICE KATOWICE WROCSAW POZUV OSTRAVA BRNO PLZEW TIMIzOARA ARAD DEBRECEN ORADEA TRNAVA ¤AOAU GYlR GRAZ LINZ SALZBURG INNSBRUCK CLUJ tzZ NOVI SAD NIŠ PLOVDIV VARNA BURGAS CONSTAN¬A :#VwN CRAIOVA MUNICH NÜRNBERG DRESDEN LEIPZIG SZCZECIN ROSTOCK BERLIN SOFIA BRATISLAVA VIENNA BUDAPEST BELGRADE BUCHAREST WAR SAW PRAGUE 113 At YE 2021, CTP held 27.5% market share of in-place GLA across our four Core markets DAVID CHLáDEK Country Head, Czech Republic David started with CTP in 2011 and since then has grown to play a vital role in orchestrating and leading all of CTP’s construction across our largest portfolio in the Czech Republic, our largest market. He has an MBA in Strategic Management from Nottingham Trent Uni- versity and over 20 years of experience in construction and real estate. 114 115 Jakub Kodr Head of Business Development, Czech Republic Since Jakub joined CTP, he has used his nearly 10 years of real estate experience to become the leading light in the industry and recent- ly became Head of Business Development for the Czech Republic—our largest market. He earned his MBA in Real Estate and recently became a full member of RICS. 116 117 PlzeŴ Nürnberg Munich Linz Salzburg Vienna Bratislava Budapest Belgrade Ė&)&+ Katowice Warsaw Kraków /, Ű4 Warsaw Dresden Berlin PL DE DE AT SK B R N O N O R T H M O R A V I A S I L E S I A P L Z E ň P R A G U E /+, 01/3 ),,2 E65 E50 E55 E55 Cheb Teplice Tábor Zlín Písek Jihlava Ústí +T &"/" /!2& " /!" /ğ),3Ł /),36 /6 D6 D6 D7 D8 D10 D11 D35 D5 D5 E48 E55 E67 E67 E50 "0(Ł 2!Ń',3& " E442 E461 E442 E442 E442 D3 D1 D4 E49 Opava E49 E49 E59 D52 D2 D1 D1 E50 E65 D48 E462 E75 E65 Vltava Labe Morava To Hamburg /$2" 118 CTP Czech Republic The CTP Portfolio2021 in Review Czech Republic 57.0% of the Group’s Gross Asset Value Core Markets Expansion Markets New Markets 119 The Czech Republic is situated in the heart of Europe and represents a crucial gateway between east and west. Thanks to its developed motorway network, it forms a highly attractive location for manufacturing and logistics companies servicing their customers both in western European and oth- er CEE countries. The country’s industrial heritage also makes it a preferred location for many man- ufacturing companies. Strong demand from both manufacturing and logistics companies (includ- ing the growing e-commerce sector) supports the country’s strong fundamentals, with demand con- tinuing to outpace the tight supply of high-quality, sustainable space. “The Czech Republic is a primary benefi ciary of the extensive and increasingly interconnected trade activity across Europe and with Europe’s largest economy, Germany.” JLL SOURCES: 1 IMF, 2021 2 World Bank, 2022 3 IMD, BCI Global, WIIW, 2021 4 S&P 5 Statista, 2021 6 CBRE Research, 2022 7 Cushman & Wakefi eld Annual Growth Rate (Y-O-Y GROWTH OF STOCK)⁶ CTP Market Share Ownership⁶ Net Take-Up LTM⁶ CTP Market Share Net Take-Up LTM⁶ Prime Rent (sqm/MONTH)⁷ Prime Rent Outlook⁷ Prime Yield⁶ Prime Yield Outlook⁷ Total Stock (DEVELOPER-LED)⁶ 6.25% 1.6 1.60% 9.7 29.10% 5.60 3.80% 29.70% 4.20% mil. sqm mil. sqm Vacancy Rate⁶ CTP Vacancy Rate € UP DOWN MARKET VARIABLE (AS AT END Q4 2021) 7.50 20.00 GDP per Capita Growth Forecast 2022–2026 CAGR¹ Western Europe GDP per Capita Growth Forecast 2022–2026 CAGR¹ 6.83% 5.06% POPULATION² COUNTRY CREDIT RATING⁴ AA- CTP Czech Republic Total Hourly Compensation in Manufacturing³ Western Europe Total Hourly Compensation in Manufacturing³ 11.30% 12.8% Western Europe E-commerce Forecast CAGR (2021-2025)⁵ 10,713,000 € MACROECONOMIC INDICATORS E-COMMERCE FORECASTS € E-commerce Forecast CAGR (2021-2025)⁵ CTPark Bor Gateway to Western Markets GLA 554,000 sqm TOP 10 ParkClubhaus ABOUT THE PARK 120 Border Success One of CEE’s most successful business parks, ctPark Bor is strategically located in Western Bohemia, 50 km from Plzeň’s city centre, with excellent highway connectivity and only 15 km from the German border. Directly on the main route from Prague to Germany and the west, it has attracted manufacturers in the auto supply chain and for logistics providers in e-commerce serving the Czech and/or German markets. CTPark Bor offers clients a wide range of on-site amenities, such as our pilot Clubhaus community centre, with medical facilities, restaurants and shared offi ce space, large outdoor exercise fi elds and two large accommodation facilities for workers providing approx. 800 beds. CTPark Bor Loxxess GLA 554,000 sqm TOP 10 ParkClubhaus ABOUT THE PARK 122 Loxxess continues to grow with CTP In 2021, Loxxess opened a new 70,000 sqm facility to serve the German dm-drogerie markt brand, which is planned for BREEAM Excellent certifi cation. Other clients who either expanded or took new space during the year include Primark, Bosch, and GXO Logistics, who will move in Q3 2022, effectively completeing the now 616,000sqm park. CTPark Bor Clubhaus GLA 554,000 sqm TOP 10 ParkClubhaus ABOUT THE PARK 124 Pilot Success In 2019, CTP launched its pilot Clubhaus project to serve as a meeting point for clients, employees and the surrounding community. With restau- rants, cafes, a doctor's offi ce as well as shared meeting rooms, Clubhaus brings people together. The Clubhaus sits adjacent to an outdoor exercise area that can be used for various sports and is equipped with an outdoor grill. Use of the facilities are available free of charge to local resi- dents. In 2021, the CTP community team organised various outdoor events such as a sports day, where companies at the park competed in a variety of games. Prague Entry Point CTPark Prague East GLA 88,000 sqm City logistics park Offi ce ABOUT THE PARK 126 Edge of town city logisitcs Just 10 minutes from Prague city cenre, CTPark Prague East sits just inside the Prague ring road and the major North-South artery connecting to Brno/ Bratislava/Vienna, and is an ideal location for city logistics. During 2021 CTPark Prague East became completely leased following the completion of the last 13,000 sqm building. The park is home to long term client Raben and a host of smaller companies operating in the pharamceutical, retail food and retail auto sales industries. CTP developed a new façade facing the main highway incorporating local artists work, creating a memorable entrance point to the Czech capital. Unique Brownfi eld Redevelopment CTPark Brno Líšeň GLA 104,000 sqm Inner city urban logistics ABOUT THE PARK 128 Old to New Business CTPark Brno Líšeň is CTP's 8th park in the Brno region, the Czech Republic's second-largest city. CTP is repurposing the previous large tractor manufacturing facility into a modern, urban logis- tics park. During 2021, we added over 85,000 sqm through both own development and acquisitions. Czech e-commerce unicorn, Rohlik, moved into a built-to-suit high-tech delivery hub that serves the city and suburbs. Rohlik has subsequenty grown with CTP into Romania and Hungary,as well as to other cities in the Czech Republic. CTPark Ostrava Innovation Hub ABOUT THE PARK GLA 388,000 sqm TOP 10 ParkR&D innovation 130 Creating Space for Innovation CTPark Ostrava, one of CTP's most successful parks, became fully leased during the year following the expansion of Brembo and the welcoming of new client Hyundai Steel into a newly built 50,000 sqm facility. CTPark Ostrava is unique as it features all fi ve of CTP's standard building types, offering premises to a wide range of both local and inter- national businesses in manufacturing, back offi ce, R&D and retail operations, representing the fi nancial, automotive, FMCG, e-commerce, and logistics sectors, among others. ANA DUMITRACHE Country Head, Romania Under Ana’s dynamic leadership, Romania has grown to be our second-largest market with a portfolio of leasable property of over 1.85 million sqm. She has over 20 years of real estate experience in both banking and development areas and extensive experience helping international companies grow their businesses in Romania. 132 133 Valentin Rosu Construction Director, Romania Vali has been part of CTP’s operations and successful expan- sions in Romania for nearly four years. He manages the entire Bucharest portfolio, entailing a growing 1.2 million sqm of warehouses. With over 20 years of business development experi- ence in the region, he has been and continues to be a key player in propelling our success and growth in Romania with his care, speed, and attention to detail. 134 Eleonora Amariutei CFO, Romania Eleonora brings fi nance experi- ence from both corporate and government perspectives, includ- ing as the CFO for Billa Romania for over ten years. In 2020, she joined CTP to deepen our growth in the Romanian market. Home 136 137 T R A N S L Y V A N I A B U C H A R E S T BG UA RS HU MD &&Ɲ,/ /! Deva Sibiu /!" )2' /Ɲ,3 Consƥanta Belgrade Budapest Vienna Debrecen Uzhhorod Lviv Kyiv Odesa Black Sea ,Ɇ Bulgaria Varna Danube 2 %/"01 Ruse Craiova E70 E70 E79 E79 E68 E60 E81 E58 E81 E81 E85 E85 E68 A1 A1 E79 E60 E87 E81 A1 E68 CTP Romania 16.4% of the Group’s Gross Asset Value 138 The CTP Portfolio2021 in Review Romania Core Markets Expansion Markets New Markets “Due to affordable labour and embedded growth potential, Romania continued to be an attractive destination for logistics and manufacturing, and the market delivered another strong performance in 2021. Access to capital, speed of execution and permitted land bank are key factors to unlock growth opportunities.” Avison Young 139 Romania, one of the fastest-growing economies in the European Union, is the second-largest country in CEE and beneits from a strong geo-strategic location at the crossroads of three important mar- kets—the European Union, the CIS states and the Middle East—and is crossed by three important pan-European transportation corridors. Its stra- tegic location, along with the relatively low level of supply of high-quality, sustainable industrial and logistics space per capita, suggests the potential for strong growth in the years to come. Bucharest, Europe’s ifth-largest city, continues to see occu- pier demand surpassing delivered space, with the western side of the city becoming an established regional hub attracting new e-commerce occupiers in particular. Annual Growth Rate (Y-O-Y GROWTH OF STOCK)⁶ CTP Market Share Ownership⁶ Net Take-Up LTM⁶ CTP Market Share Net Take-Up LTM⁶ Prime Rent (sqm/MONTH)⁷ Prime Rent Outlook⁷ Prime Yield⁷ Prime Yield Outlook⁷ Total Stock (DEVELOPER-LED)⁶ 11.32% 617,000 3.90% 5.6 36.20% 4.10 7.25% 51.10% 8.00% mil. sqm sqm Vacancy Rate⁶ CTP Vacancy Rate € STABLE DOWN MARKET VARIABLE (AS AT END Q4 2021) 5.30 20.00 GDP per Capita Growth Forecast 2022–2026 CAGR¹ Western Europe GDP per Capita Growth Forecast 2022–2026 CAGR¹ 8.42% 5.06% POPULATION² COUNTRY CREDIT RATING⁴ BBB- CTP Romania Total Hourly Compensation in Manufacturing³ Western Europe Total Hourly Compensation in Manufacturing³ 16.70% 12.80% Western Europe E-commerce Forecast CAGR (2021-2025)⁵ 19,185,000 € MACROECONOMIC INDICATORS E-COMMERCE FORECASTS € E-commerce Forecast CAGR (2021-2025)⁵ SOURCES: 1 IMF, 2021 2 World Bank, 2022 3 IMD, BCI Global, WIIW, 2021 4 S&P 5 Statista, 2021 6 CBRE Research, 2022 7 Cushman & Wakefi eld Gateway to Bucharest CTPark Bucharest West ABOUT THE PARK GLA 747,000 sqm TOP 10 ParkClubhaus 140 On a Grand Scale CTP started CTPark Bucharest West in 2015 with the aquisition of a select group of assets and has since consolidated the surrounding parcels to create what may be Europe's largest master-planned logistics park, at completion expected to offer over 1 million sqm of premium warehouse space. In 2021 CTP completed over 85,000 sqm of new space and welcomed international clients Maersk, who opearate a regional distribution hub for one of Europe's largest retail furniture chains. CTP opened its second Clubhaus community centre in the park to serve the large workforce, while at the same time serving the local area with its restaurants and meeting spaces. New Infrastructure ABOUT THE PARK GLA 747,000 sqm TOP 10 ParkClubhaus Community Works 142 Completing the Puzzle The A1 highway is the western gateway to the city, with 80% of all goods entering from this major artery connecting the city to all points west and through to the Black Sea ports in the east. To handle the growing fl ow of lorries entering CTPark Bucharest West, CTP worked with city authorities to expand the main overpass access, improving effi cien- cy and safety—helping both clients in the park, but also local traffi c going to and from home and work. Original Community Center Clubhaus Concept ABOUT THE PARK GLA 747,000 sqm TOP 10 ParkClubhaus 144 Bringing People Together As part of our Parkmaker approach, at CTPark Bucharest West, CTP developed its second unique Clubhaus to act as a central meeting point for all client, employees and the surrounding community. With car-charging stations, fl exible co-working facilities, space for presentations and gatherings, in addi- tion to cafes and restaruants, the Clubhaus has been a massive success. Surrounded by well-lit and enjoyable landscaping, Clubhaus is a brings people together in a pleasant green envi- ronment. 146 On the edge Just off the Bucharest ring road, CTPark Bucharest is ideal for inner city access and caters to smaller business operations both local and international. During the year, CTP developed three new buildings, which together offer 50,000 sqm of newly built space. Real Urban Logisitcs CTPark Bucharest ABOUT THE PARK GLA 544,000 sqm TOP 10 ParkCity logistics 147 DAVID HUSZLICSKA Country Head, Hungary With 14+ years of real estate experience, including investment consultant and senior asset manager, David’s experience, and making CTP Hungary the market leader un- der his guidance, has earned him the reputation as one the top-50 most infl uential real estate people in Hungary—two years in a row. 148 149 Ferenc Gondi COO, Deputy Country Head, Hungary After working for more than 11 years mainly in real estate law, fi ve of which with CTP, Ferenc has successfully completed his MBA and was appointed this year as COO for Hungary to ensure smooth operations and strong support at the senior level. 151 #1 AT HR RS SK RO UA 6Ɓ/ B U D A P E S T River Danube Szeged Pécs "/" "+ E75 E71 E60 M15 M1 E79 M3 M3 M30 E71 E71 M4 M5 E68 M43 Vienna Maribor Graz Zagreb Osijek Belgrade Bucharest Oradea Cluj Bratislava Brno Prague Košice Prešov Lviv Balaton Szombathely Komárom Székesfehérvár Kecskemét E73 E77 M6 M7 Budapest E73 E661 E653 E65 E66 E60 E60 Core Markets Expansion Markets New Markets 152 The CTP Portfolio2021 in Review Hungary CTP Hungary 10.0% of the Group’s Gross Asset Value 153 Bordering six countries in the heart of CEE and with one of the highest densities of TEN-T net- works, Hungary continues to attract large foreign corporations to operate regional centres from Bu- dapest or other Hungarian cities in various sectors, including logistics. This is largely driven by a well- developed motorway network connecting the coun- try with wider European markets. In addition, the Budapest region has the third-highest motorway density in Europe (according to Eurostat 2018) and the country is located at the crossroads of four main European transportation corridors. Budapest plays the main role in the Hungarian economy as the capital city, beneiting from its in- frastructure and its central location in the country. As a result, the majority of industrial and logistics development activities and transactions are also concentrated in the vicinity of Budapest. Besides the capital there are countryside logistics locations as well, mainly county seats, where the economic and geographical conditions allow for the creation of logistics and industrial parks. “The Budapest logistics market is characterised by in- creased activity since early 2020, large requirements and deals drive the market, with true vitality and volumes never experienced before. Logistics became a preferred product both to develop and to invest in, which al- lows developers with long-term strategic thinking to “GO LARGE” and to secure space for and build large buildings, parks and portfolios.” Colliers Annual Growth Rate (Y-O-Y GROWTH OF STOCK)⁶ CTP Market Share Ownership⁶ Net Take-Up LTM⁶ CTP Market Share Net Take-Up LTM⁶ Prime Rent (sqm/MONTH)⁷ Prime Rent Outlook⁷ Prime Yield⁷ Prime Yield Outlook⁷ Total Stock (DEVELOPER-LED)⁶ 16.67% 491,000 3.20% 4.0 18.50% 4.65 5.75% 39.80% 4.50% mil. sqm sqm Vacancy Rate⁶ CTP Vacancy Rate € DOWN DOWN MARKET VARIABLE (AS AT END Q4 2021) 6.90 20.00 GDP per Capita Growth Forecast 2022–2026 CAGR¹ Western Europe GDP per Capita Growth Forecast 2022–2026 CAGR¹ 7.80% 5.06% POPULATION² COUNTRY CREDIT RATING⁴ BBB CTP Hungary Total Hourly Compensation in Manufacturing³ Western Europe Total Hourly Compensation in Manufacturing³ 16.50% 14.80% Western Europe E-commerce Forecast CAGR (2021-2025)⁵ 9,721,000 € MACROECONOMIC INDICATORS E-COMMERCE FORECASTS € E-commerce Forecast CAGR (2021-2025)⁵ SOURCES: 1 IMF, 2021 2 World Bank, 2022 3 IMD, BCI Global, WIIW, 2021 4 S&P 5 Statista, 2021 6 CBRE Research, 2022 7 Cushman & Wakefi eld CTPark Budapest West ABOUT THE PARK GLA 228,000 sqm TOP 10 Park Western City Gate City logistics 154 Budapest’s Top Park CTP Hungary's premier park, CTPark Budapest West, provides over 228,000 sqm of GLA. In 2021, CTP completed over 30,000 sqm facility for a variety of clients. In November, local artists painted CTP Hungary's fi rst Artwall—the largest in the country, and has plans to open its fi rst Clubhaus in May 2022. City logistics Hungarian ArtWall Embedding Parks into the Community ABOUT THE PARK GLA 228,000 sqm TOP 10 Park 156 Artwall Before the Covid Pandemic, CTP Hungary held an Artwall competition which received 199 submissions from numerous countries. The winner was chosen by a panel of judges including representatives from the local municipality, graphic design and street art experts, as well as CTP. CTP is committed to design, creativity and dialogue. The goals of the project were to give artists the opportunity to express themselves spectacularly and to beautify and visually diversify CTPark Budapest West, integrating it into the daily life of local communities. CTParks Budapest Encircling the Capital ABOUT THE PARKS GLA 36,000 sqm standing CTPark Budapest Vecsés 158 Quick as a Flash At the beginning of 2021, CTPark Vecsés was a simple landplot, and by the end of the year, all 81,000 sqm under construction was prelet, with the fi rst 36,000 sqm building fi nished and others close to handover. To satisfy the strong demand around Budapest, CTP moved quickly to se- cure strategic landplots including CTPark Budapest Vecsés (above) near the airport, and CTPark Budapest North. With CTPark Budapest East, and CTPark Budapest South, these four parks together provide a built up de- velopment potential of nearly 330,000 sqm around the capital—in addi- tion to our fl agship CTPark Budapest West (see prev. page). Country Head & CFO, Slovakia Stanislav has grown the Slovak team from two to 30 in his fi ve years at the helm as Country Head of Slovakia. He set a major goal for 2021—to drive CTP to the number-one position on the Slovak market. His 18+ years of experience in Slovak real estate provides him insight into all aspects of develop- ment, from land acquisition to handover. STANO PAGÁC ˇ 160 161 Construction Director, Slovakia Ivan has risen rapidly through the CTP ranks, after joining CTP as a Junior Project Manager just over fi ve years ago. Today, he plays a brick-and-mortar role in building our portfolio’s success in Slovakia, from overseeing construction to scouting new locations. He holds a Master’s degree in engineering from the Slovak University of Technology in Bratislava. Ivan Šimo 162 /+3 Nitra Komárno CZ PL AT HU UA Vienna Graz Brno Prague Budapest Belgrade Bucharest Budapest Ostrava Zlín Katowice Kraków Debrecen /1&0)3 B R A T I S L A V A T A T R Y F A T R Y E60 +0(ğ 601/& Ė&)&+ /"+Ĺ&+ D1 R1 R1 E75 D1 E50 E50 D1 Danube Vah Poprad D2 E65 R7 D2 D4 E75 16 E77 E77 E77 E371 /"Ɯ,3 ,Ɯ& " 164 The CTP Portfolio2021 in Review Slovakia CTP Slovakia 7.6% of the Group’s Gross Asset Value Core Markets Expansion Markets New Markets 165 “There is record-high interest from investors leading to yield compression which motivates developers to secure sites and develop new locations. Supported by strong oc- cupier demand throughout 2021 and despite the increase of construction prices, I see the upcoming year as positive in terms of leasing activity that might outperform the best years in the history of Slovakia.” CBRE Annual Growth Rate (Y-O-Y GROWTH OF STOCK)⁶ CTP Market Share Ownership⁶ Net Take-Up LTM⁶ CTP Market Share Net Take-Up LTM⁶ Prime Rent (sqm/MONTH)⁷ Prime Rent Outlook⁷ Prime Yield⁷ Prime Yield Outlook⁷ Total Stock (DEVELOPER-LED)⁶ 8.69% 338,000 6.50% 3.2 19.30% 4.00 5.25% 13.40% 2.00% mil. sqm sqm Vacancy Rate⁶ CTP Vacancy Rate € DOWN DOWN MARKET VARIABLE (AS AT END Q4 2021) 6.50 20.00 GDP per Capita Growth Forecast 2022–2026 CAGR¹ Western Europe GDP per Capita Growth Forecast 2022–2026 CAGR¹ 6.58% 5.06% POPULATION² COUNTRY CREDIT RATING⁴ A+ CTP Slovakia Total Hourly Compensation in Manufacturing³ Western Europe Total Hourly Compensation in Manufacturing³ 14.80% 12.8% Western Europe E-commerce Forecast CAGR (2021-2025)⁵ 5,459,000 € MACROECONOMIC INDICATORS E-COMMERCE FORECASTS € E-commerce Forecast CAGR (2021-2025)⁵ Slovakia, along with its capital city Bratislava, which sits on the borders of Hungary and Austria, just 65 kilometres from Vienna, are centrally lo- cated within the wider European market and bene- it from a well-developed highway and rail system. Further improvement of motorway infrastructure connecting the country to the east is also continu- ing. The present infrastructure is in the process of intensive development and modernisation. In order to promote further economic expansion and attract foreign investments, the Slovak government is fol- lowing up on the priority of connecting the western and eastern part of Slovakia with a highway running between the cities of Bratislava and Košice. The majority of Slovak industrial stock is located within the Bratislava region. Companies beneit mainly from the advantages that the region can of- fer—relatively high education levels, well-developed technical and road infrastructure, foreign invest- ment activity and strong demand for goods and ser- vices. It is the irst region in Slovakia where trade and services have overtaken industrial production. SOURCES: 1 IMF, 2021 2 World Bank, 2022 3 IMD, BCI Global, WIIW, 2021 4 S&P 5 Statista, 2021 6 CBRE Research, 2022 7 Cushman & Wakefi eld City logistics CTPark Bratislava ABOUT THE PARK GLA 124,000 sqm TOP 10 Park Cross-Border Logistics Hub 166 Strategic Location CTPark Bratislava is a cornerstone in CTP's Skovak portolio, providing over 124,000 s qm of GLA, mostly for logistics operators and supplilers to the next-door Volkswagen plant. Strategically located in a well-developed industrial centre, CTPark Bratislava is ideally situated for companies needing to connect with Vienna, Budapest, Ostrava, Brno/Prague and Slovakia's interior industrial regions. CTPark Trnava ABOUT THE PARK GLA 118,000 sqm Auto Logistics Automotive Logistics Hub 168 Just in Time Starting as strictly an automotive supply park, CTPark Tranava's location just off the E58 high- way connecting Trnava with Austria, Hungary, and the Czech Republic has attracted large clothing retailers serving the regional capital cities. Due to the park's success, CTP has increased its land bank nearby to develop a second park adjacent to the factory to accommodate future tenant growth. CTPark Žilina Airport & Žilina GLA Žilina parks: 69,000 sqm ABOUT THE PARKS Slovak Manufacturing Region 170 Mountainside Industrial Powerhouse The city of Žilina is in the north-west of the country with close proximity to both the Czech Republic and Poland. CTPark Žili- na enjoys prime motorway connections, while also being located in Slovakia’s main high-tech and automotive cluster. Kia Motors, Hyundai, and several Slovak and Polish OEMs are all within close proximity. CTP has two parks surrounding this major industrial city, one directly adjacent to the airport with more than 90,000 sqm development opportunity, and the other CTPark Žilina, which sits adjacent to the large KIA Slovakia assembly plant. Head of Finance and Accounting, Serbia Dragana's over 20 years of experience has prepared her for her role at CTP, in which she oversees all the account- ing and fi nance operations for our Serbian portfolio. She has helped CTP reach the number- one position on this fast developing and strategic market. Apart from that, Dragana leads the acquisition process and provides support to construction. Dragana Djordjevic 173 BG RO MK HR BA HU /&01&+ &Ɯ Ĺ( ,3&! Zagreb Sarajevo Budapest Bratislava Vienna Tirana Skopje Thessaloniki Athens ,Ɇ Istanbul Bucharest E75 E75 E75 E70 A1 A2 A1 A1 A3 Kragujevac E80 E80 E65 E851 Danube B E L G R A D E ")$/!" 174 The CTP Portfolio2021 in Review Serbia CTP Serbia 1.8% of the Group’s Gross Asset Value Core Markets Expansion Markets New Markets 175 Serbia is a high-potential growth market especially due to its attractiveness for labour-intensive oper- ations beneiting from a qualiied, skilled and mo- tivated workforce available at relatively low cost in close proximity to western European markets. Due to a low level of international, standardised, ener- gy-eicient and scalable industrial parks currently on ofer, CTP’s position is highly attractive. “CTP as an investor has been supporting Yanfeng’s business growth in Europe since 2015 with the development of the fi rst new plant in Planá nad Lužnicí in the Czech Republic. Since then, our footprint with CTP has grown signifi cantly from 29,000 sqm to almost 176,000 sqm today including two new plants in Kragujevac [Serbia] already built and a third one being planned, as well as the acquisition in 2021 of Yanfeng´s campus in Namestovo in Slovakia. CTP is therefore our largest footprint supplier in Europe. Having said that, there is a relationship where we at Yanfeng always feel like we are CTP’s most valued customer at each request, and that they put a huge amount of effort in build- ing the solutions to meet Yanfeng’s needs and requests.” Yanfeng 3.50 20.00 GDP per Capita Growth Forecast 2022–2026 CAGR¹ Western Europe GDP per Capita Growth Forecast 2022–2026 CAGR¹ 8.51% 5.06% POPULATION² COUNTRY CREDIT RATING⁴ BB+ CTP Serbia Total Hourly Compensation in Manufacturing³ Western Europe Total Hourly Compensation in Manufacturing³ 5.80% 12.8% Western Europe E-commerce Forecast CAGR (2021-2025)⁵ 6,872,000 € MACROECONOMIC INDICATORS E-COMMERCE FORECASTS € E-commerce Forecast CAGR (2021-2025)⁵ Annual Growth Rate (Y-O-Y GROWTH OF STOCK)⁶ CTP Market Share Ownership⁶ Net Take-Up LTM⁶ CTP Market Share Net Take-Up LTM⁶ Prime Rent (sqm/MONTH)⁷ Prime Rent Outlook⁷ Prime Yield⁶ Prime Yield Outlook⁷ Total Stock (DEVELOPER-LED)⁶ 2.42% 194,000 1.2 – 4.25 8.00% 13.40% 4.00% mil. sqm sqm Vacancy Rate⁶ CTP Vacancy Rate € STABLE DOWN MARKET VARIABLE (AS AT END Q4 2021) 2.5% SOURCES: 1 IMF, 2021 2 World Bank, 2022 3 IMD, BCI Global, WIIW, 2021 4 S&P 5 Statista, 2021 6 CBRE Research, 2022 GLA All RS parks: 176,000 sqm CTParks Serbia ABOUT THE PARKS Growing High-Tech Hub 176 Balkan Industrial Corridor CTP Serbia maintained its market-leading position during the year, with projects around all the major hubs of Belgrade, Novi Sad, and Kragujevac, and handing over 75,000 sqm of new premises. CTPark Belgrade North (above) is slated to become our largest park, currently with plans to reach 100,000 sqm. In 2021, CTP agreed deals with Nidec, Continental and Elesys at CTPark Novi Sad and agreed to expand with YanFeng at CTPark Kragujevac. Bogi Gabrovic CFO, Poland A seasoned and inspirational team leader, Bogi brings 25+ years’ experience from PricewaterhouseCoopers and executive fi nance roles with multiple international organ- isations to her role as CFO for Poland, where she plans to help develop a strong local team and build CTP’s presence in CEE’s largest economy. She also brings an entrepreneurial spirit to CTP Poland, having incubated her own businesses in the US, which provided her an owner’s view on business opportunities and risk. 178 179 180 The CTP Portfolio2021 in Review Poland CTP Poland 1.3% of the Group’s Gross Asset Value CZ DE SK UA BY LT Ostrava Olomouc Brno Prešov Lviv Vilnius Minsk Berlin Hamburg Dresden Leipzig Kaliningrad Klaipéda Kaunas Baltic Sea /04 »żdǍ 7 7" &+ !ų0( 1,4& " ,7+ų S I L E S I A W A R S A W E67 E77 E75 E30 E28 E30 E65 E28 E40 E40 A4 A1 A2 A2 A1 A4 E36 E67 Lublin Olsztyn E65 /(ż4 E77 E77 Prague /, Ű4 Oder Core Markets Expansion Markets New Markets 181 Poland is the largest economy in the CEE region with a population of almost 38 million and strong historic and forecasted GDP growth. The purchas- ing power of Poland´s large middle class is growing quickly and a strong domestic consumer market is developing. Furthermore, the country still beneits from relatively low labour costs, especially in the east. Despite catching up in recent years, there is still a large gap with western European salaries. Especially the western part of Poland is beneit- ing hugely from its geographical position close to the large consumer markets of Germany and other western European countries, combined with an ex- cellent road network that has beneited from large (EU-funded) investments. “The warehouse market in Poland is re- cording record-breaking fi gures. This trend is set to continue if not acceler- ate in 2022 and beyond. Gross take-up of space in 2021 reached an all-time high of 7.35 million sqm with an 84% year-on-year increase in net absorption. Under con- struction space is 55% pre-leased before completion and vacancy rates have fallen to under 4%. Poland offers competitive labour rates, FDI incentives, an effi cient planning and building permitting system; and all this is backed by growing domes- tic consumer spending. The dynamics of the occupier is changing with require- ments increasingly focused on quality, sustainable and ESG-focused properties, professionally managed by long-term land- lords. These favourable market conditions fi t the CTP business model of delivering modern A-class industrial space and gives bright prospects for the future. We are delighted to support CTP in its growth on the Polish market and wish the company many more successes.” Savills 6.40 20.00 GDP per Capita Growth Forecast 2022–2026 CAGR¹ Western Europe GDP per Capita Growth Forecast 2022–2026 CAGR¹ 7.97% 5.06% POPULATION² COUNTRY CREDIT RATING⁴ A- CTP Poland Total Hourly Compensation in Manufacturing³ Western Europe Total Hourly Compensation in Manufacturing³ 16.00% 12.8% Western Europe E-commerce Forecast CAGR (2021-2025)⁵ 37,894,000 € MACROECONOMIC INDICATORS E-COMMERCE FORECASTS € E-commerce Forecast CAGR (2021-2025)⁵ Annual Growth Rate (Y-O-Y GROWTH OF STOCK)⁶ CTP Market Share Ownership⁶ Net Take-Up LTM⁶ CTP Market Share Net Take-Up LTM⁶ Prime Rent (sqm/MONTH)⁷ Prime Rent Outlook⁷ Prime Yield⁶ Prime Yield Outlook⁷ Total Stock (DEVELOPER-LED)⁶ 13.15% 4.30% 29.10% 4.20 4.35% - - sqm Vacancy Rate⁶ CTP Vacancy Rate € UP DOWN MARKET VARIABLE (AS AT END Q4 2021) 5,340,068 sqm 23,220,701 SOURCES: 1 IMF, 2021 2 World Bank, 2022 3 IMD, BCI Global, WIIW, 2021 4 S&P 5 Statista, 2021 6 CBRE Research, 2022 7 Cushman & Wakefi eld GLA All PL parks: 42,000 sqm CTPark Opole ABOUT THE PARK Growth Opportunity 182 Plans for Growth CTP has long had a small footprint in Poland and in 2021 began a new drive to expand into this largest CEE market. Acquiring new land around the capital, Warsaw, and beginning construction on parks in Opole (above), Ilowa, and Zabrze, CTP is expanding its team and ambitions in the country with nearly 100,000 sqm under construction at year end. Steliana Vac h eva CFO & Deputy Country Manager, Bulgaria Steliana is responsible for administration, fi nance and legal and is actively involved in business operations, proj- ects, budgeting and recruitment as she builds a full team for CTP Bulgaria. She has a fi nance background with more than 20 years of experience on senior and executive roles in diverse industries,including develop- ment, planning, construction, leasing and management of retail, offi ce and industrial properties. 184 185 186 The CTP Portfolio2021 in Review Bulgaria CTP Bulgaria 0.7% of the Group’s Gross Asset Value ),3!&3 !&/+" 2/$0 /+ ,Ɇ Pleven Vidin Ruse Black Sea A6 E80 E80 E80 E85 A1 A1 A2 E70 E772 E70 E83 A4 A2 A3 E79 Niš Belgrade Budapest Craiova Bucharest Thessaloniki Athens Skopje Istanbul Ankara Constanƥa RS GR MK TU RO S O F I A E87 E871 E79 Danube Core Markets Expansion Markets New Markets 187 Bulgaria is strategically located in south-east- ern Europe between Europe and Asia. Five of the Trans-European-Transport corridors run through Bulgaria, and a modern motorway network connect- ing all the major cities is currently under construc- tion. The country joined the EU in 2007 together with Romania and continues to attract especially international investors with labour intensive opera- tions beneiting from relatively low costs combined with a skilled and available workforce. CTP is in a very appealing position as one of very few inves- tors in the country developing industrial & logistics parks to international institutional standards. “The Bulgarian market and our business in Sofi a is growing, and it is very comforting for us to be able to put the development, ownership and man- agement of our logistics assets into the hands of a trusted long-term international real estate partner like CTP in a market that we very much believe in.” DSV Annual Growth Rate (Y-O-Y GROWTH OF STOCK)⁶ CTP Market Share Ownership⁶ Net Take-Up LTM⁶ CTP Market Share Net Take-Up LTM⁶ Prime Rent (sqm/MONTH)⁶ Prime Rent Outlook⁶ Prime Yield⁶ Prime Yield Outlook⁶ Total Stock (DEVELOPER-LED)⁶ 9.00% 8.00% - 5.50 8.50% - - sqm Vacancy Rate⁶ CTP Vacancy Rate € STABLE STABLE MARKET VARIABLE (AS AT END Q4 2021) 79,820 sqm 1,325,000 3.20 20.00 GDP per Capita Growth Forecast 2022–2026 CAGR¹ Western Europe GDP per Capita Growth Forecast 2022–2026 CAGR¹ 8.03% 5.06% POPULATION² COUNTRY CREDIT RATING⁴ BBB CTP Bulgaria Total Hourly Compensation in Manufacturing³ Western Europe Total Hourly Compensation in Manufacturing³ 16.80% 12.8% Western Europe E-commerce Forecast CAGR (2021-2025)⁵ 6,875,000 € MACROECONOMIC INDICATORS E-COMMERCE FORECASTS € E-commerce Forecast CAGR (2021-2025)⁵ SOURCES: 1 IMF, 2021 2 World Bank, 2022 3 IMD, BCI Global, WIIW, 2021 4 S&P 5 Statista, 2021 6 Colliers Research, 2022 188 Country Head, Netherlands Ralph de Munnik started at CTP in 2021 and brings over 15 years of experience in in- dustrial and logistics real estate to the company. Ralph is currently putting together a strong Dutch team and has begun rolling out the unique CTPark approach across the Netherlands, a major distribution entry point to Europe, thus strengthening CTP’s European footprint. Ralph De Munnik 189 Paul Dijkstra CFO, Netherlands Paul Dijkstra joined CTP as CFO for CTP NL with plans to use his deep experience in real estate and fi nance to help CTP get its NL operations up and running—with a long-term investment focus. Paul brings 15 years of experience in real estate from his time as a management consultant with Deloitte Real Estate Advisory, as well as his service as CFO for the City of Amsterdam Real Estate department. 190 ,11"/! DE BE 01"/! %"$2" Middelburg 1/" %1 /+%" 4,))" /,+&+$"+ &+!%,3"+ 01/& %1 +0 %"!" North Sea Antwerp Brussels Liège Aachen Köln Duisburg Düsseldorf Osnabrück Bremen Hamburg A4 A4 A16 E19 E34 A59 A58 E31 A15 A27 A2 A2 A2 A12 A50 A28 A1 A6 E22 A7 A7 A32 E30 E35 A37 Maas Rhine 192 The CTP Portfolio2021 in Review Netherlands CTP Netherlands 4.1% of the Group’s Gross Asset Value Core Markets Expansion Markets New Markets 193 The Netherlands is Europe’s leading logistics coun- try, beneiting from being one of the world´s most eicient transportation hubs for road, rail, sea and air connections. Furthermore, due to its central lo- cation in one of the most densely populated areas in the developed world surrounded by the strong economies of Germany, the United Kingdom and France and 170 million aluent consumers living within a 500 km radius, the Netherlands is the ideal gateway location for many international companies for distribution and inal assembly activities. In addition to logistics, the Netherlands also ofer opportunities for investments into redevelopment of out-dated industrial and logistic parks due to scarcity of space, as well as science and technology parks that are open for private investors. “In their long-term planning, Dutch munic- ipalities create little space for new sites for distribution centres. However, the Netherlands needs new, automated distribu- tion centres to transition to zero emission transport and the growth of online. CTP’s Amsterdam Logistic Cityhub offers companies in the metropolitan area opportunities for consolidating sustainable city logistics while reducing their logistics footprint.” Prof. Walther Ploos van Amstel, Amsterdam University of Applied Sciences 27.10 20.00 GDP per Capita Growth Forecast 2022–2026 CAGR¹ Western Europe GDP per Capita Growth Forecast 2022–2026 CAGR¹ 4.78% 5.06% POPULATION² COUNTRY CREDIT RATING⁴ AAA CTP Netherlands Total Hourly Compensation in Manufacturing³ Western Europe Total Hourly Compensation in Manufacturing³ 12.90% 12.8% Western Europe E-commerce Forecast CAGR (2021-2025)⁵ 17,476,000 € MACROECONOMIC INDICATORS E-COMMERCE FORECASTS € E-commerce Forecast CAGR (2021-2025)⁵ Annual Growth Rate (Y-O-Y GROWTH OF STOCK)⁶ CTP Market Share Ownership⁶ Net Take-Up LTM⁶ CTP Market Share Net Take-Up LTM⁶ Prime Rent (sqm/MONTH)⁶ Prime Rent Outlook⁶ Prime Yield⁶ Prime Yield Outlook⁶ Total Stock⁶ 2.06% - 45% 37,565,000 7.50 3.10% - - Vacancy Rate⁶ CTP Vacancy Rate € STABLE DOWN MARKET VARIABLE (AS AT END Q4 2021) 4,800,000 sqm sqm SOURCES: 1 IMF, 2021 2 World Bank, 2022 3 IMD, BCI Global, WIIW, 2021 4 S&P 5 Statista, 2021 6 Cushman & Wakefi eld Research, 2022 7 JLL Research, 2022 Cracking the Last-Mile CTParks the Netherlands ABOUT THE PARKS GLA 104,000 sqm 194 Gaining a Foothold in Western Europe CTP entered the Netherlands through acquisitions and began building a team of local professionals to further our plans. During 2021, CTP acquired a 104,000 sqm site in Gornichem, and other land- plots around the country. CTP also completed for- ward purchases in Rotterdam and of a multi-story inner city logistics hub, ALC (above). ALC will be a low-carbon, unique inner-city logistics solution combining road and water access. Karl Brückner Country Head, Austria Karl joined in 2020 to aid our strategic growth in the region. He has three decades of experience of leading international corporations’ growth in Austria behind him. For 12 years he was the head of Erste Group Immorent’s division for Real Estate As- set Management & Investment Products for CEE. 196 198 The CTP Portfolio2021 in Review Austria DE CH IT SI CZ HU SK &+7 ++0/2 ( )72/$ /7 )$"+#2/1 &"++ Budapest Belgrade Bucharest Prague Brno Ostrava Prague Munich Frankfurt Bratislava Maribor Ljubljana Zagreb Udine Venice Nuremberg Verona Milan Zürich Frankfurt V I E N N A E57 E55 E57 A2 A5 A9 A1 A7 A2 A10 A12 A12 E60 E45 E60 E55 E61 E55 E59 E59 E59 E60 E60 Danube Inn E56 A8 CTP Austria 0.7% of the Group’s Gross Asset Value Core Markets Expansion Markets New Markets 199 Austria is a hotspot for innovation and R&D, with strong automotive and chemical industries. Our ex- pansion into Austria strengthens the CTPark net- work. With its capital close to the Slovak, Czech, and Hungarian borders, Vienna has a great advan- tage when it comes to connectivity and access to CEE markets. 19.00 20.00 GDP per Capita Growth Forecast 2022–2026 CAGR¹ Western Europe GDP per Capita Growth Forecast 2022–2026 CAGR¹ 5.65% 5.06% POPULATION² COUNTRY CREDIT RATING⁴ AA+ CTP Austria Total Hourly Compensation in Manufacturing³ Western Europe Total Hourly Compensation in Manufacturing³ 5.60% 12.8% Western Europe E-commerce Forecast CAGR (2021-2025)⁵ 6,872,000 € MACROECONOMIC INDICATORS E-COMMERCE FORECASTS € E-commerce Forecast CAGR (2021-2025)⁵ Annual Growth Rate (Y-O-Y GROWTH OF STOCK)⁶ CTP Market Share Ownership⁶ Net Take-Up LTM⁶ CTP Market Share Net Take-Up LTM⁶ Prime Rent (sqm/MONTH)⁶ Prime Rent Outlook⁶ Prime Yield⁶ Prime Yield Outlook⁶ Total Stock (DEVELOPER-LED)⁶ 0.90% - 2.2% 122,000 5.80 3.80% - - Vacancy Rate⁶ CTP Vacancy Rate € UP DOWN MARKET VARIABLE (AS AT END Q4 2021) 5,600,000 sqm sqm “The Austrian logistics market shows very dynamic development. The vacancy rate in Vienna and including araes surrounding the capital reached a new record low in 2021 and the demand for modern logistics space remains high. The high developer demand meets a limited supply of suitable plots. Compared to other developers CTP acquired several strategically well located land plots since entering the Austrian market 1½ years ago amounting to more than 500,000 sq m. Due to the massive pipeline CTP will become the market leader in Vienna and Vienna surrounding in the next couple of years.” CBRE SOURCES: 1 IMF, 2021 2 World Bank, 2022 3 IMD, BCI Global, WIIW, 2021 4 S&P 5 Statista, 2021 6 CBRE Research, 2022 GROUP LEVEL CTP’s internationl operations are supported by a dedicated team of professionals. Based in Amsterdam and Prague, this team provides strategic, legal, compliance and administrative services to all markets. 200 Corporate Governance Structure CTP International One-Tier Board Compliance Internal Audit Risk Management Company Secretariat Independent Non-Executive Directors Senior Independent Non-Executive Director (Chair) Executive Directors CTP Country Teams Shareholders Shareholders Shareholders 201 Jan-Evert Post Head of Funding & Investor Relations Jan-Evert manages all rela- tionships with CTP’s stake- holders in the fi nancial sec- tor and oversees the complete external funding of CTP’s ac- tivities. He was instrumental in obtaining Investment Grade ratings for CTP in September 2020 and was project lead for CTP’s IPO on Euronext Amster- dam in March 2021. He has known CTP since 2012, whilst at ING Bank, where he was managing director in charge of the bank’s International Real Estate Finance activi- ties. 203 OLIVER OROS Head of Legal CZ/SK Oliver is an expert on real estate legal issues, es- pecially related to asset management, construction law and leasing in both the Czech Republic and Slovakia. He has extensive experience handling legal issues relating to real estate transactions and leasing arrangements for a diverse range of interna- tional businesses. 204 Thomas Bergman Group Director of IT As a technical leader, Thomas brings more than ten years of experience in digital transformation and innovation through building reliable processes and empowering IT departments. Coming from the fast world of IT start-ups and scale-ups, he applies his expertise at CTP to use tech- nology and data to deliver lasting business impact. 206 208 Group Head of Controlling and Process Management Chris is a professional fi nance leader with wide experience in different leadership roles at international organisations. He learned from the best-in- class industry leaders, with his last function being Head of Control at Unibail-Rodam- co-Westfi eld. In his role at CTP, Chris will grow and develop the Group Controlling Team, bringing strategic insights to the organisation together with continuous improvement initiatives. Chris Dekkers 209 Head of M&A Michal loves going up and down on his bike but in his seven years at CTP, he has only gone up. Specialised in M&A, fi nance and restructuring, Michal stands behind more than 1 mil. sqm GLA of properties acquired to CTP’s portfolio during his tenure. michal felcman 211 KVeTA VOJTOVÁ Head of M&A and Transaction Legal, Attorney at law Two decades of experience in corporate law and an ability to move things fast without missing a beat. This is exactly why Květa leads our M&A legal team, which supports all acquisitions, divestments, and group restructuring. 213 214 Risk Management Corporate Governance Risk Management CTP Group Approach to Risk Management Exposure to risk arises in the normal course of the Company’s business. The CTP Group approach to Risk Management focuses on the principles of iden- tiication, understanding, quantiication and con- trol of the relevant sources of risk and on support- ing management in the steering of the business and the investment portfolio. The Enterprise Risk Man- agement (ERM) framework was designed to relect these principles. For CTP’s exposure to credit risk, market risk, capital risk and liquidity risk, along with the possi- ble impact on the result and/or inancial position in case of changes in the assumptions, we refer to the sensitivity analysis in note 35 in the inancial statements. Risk Management Policy CTP Group’s ERM framework is documented in the Group’s Risk Management Policy. It is a living doc- ument that evolves continuously and is annually re- viewed by CTP’s Audit Committee, in line with the Dutch Corporate Governance Code. If necessary, it is updated by the Group CFO in conjunction with the Group Head of Risk Management. The policy is mandatory and applies to all CTP Group entities. The approach and principles described must be fol- lowed with respect to all approvals and controls by the Executive Directors and their delegated Risk Owners. PILLAR 1 Three Lines of Defence PILLAR 2 Lifecycle of Risk Functions PILLAR 3 Taxonomy of Risks ERM Framework CTP Group’s ERM framework is an integrated, risk-based system of functions, processes and methodolo- gies and is constructed based on three pillars: THREE LINES OF DEFENCE To achieve clarity of responsibilities and accountabilities, the Group has adopt- ed the “Three Lines of Defence” mod- el (3LoD), considered regulatory best practice. The three lines are the Busi- ness, Risk Management, and Internal Audit (with the supervisory functions of the Audit Committee and the Board of Directors). They work independently and sequentially to provide assurance that activities take place in line with business objectives and procedures. Business and Operating Units are ac- countable for all risk-taking decisions within the Group. They manage and mitigate risks in compliance with CTP’s risk policy requirements while operat- ing within the risk appetite boundaries set and approved by CTP’s Board of Directors. Risk Management provides oversight of the risk management process and supports the Board of Directors to implement and operate the Risk Man- agement process. Their role is not to manage risk, but to act as enablers to the irst line so that they can efec- tively manage risk. Internal Audit supports the Board of Directors in providing independent, ob- jective assurance and advice about the quality, completeness and efective- ness of the Group's Risk Management framework. 1st LoD 3rd LoD2nd LoD Business and Operating Units Enterprise Risk Management Internal Audit PILLAR 1 Board Executive Directors Board Audit Committee 215 1. RISK Identification 2. RISK Analysis 3. RISK Appetite 4. RISK Mitigation 5. RISK Control 6. RISK REPORTING AND Monitoring 7. Assessment of effectivness LIFECYCLE OF RISK FUNCTIONS The Group has formulated a 7-step process that deines what actions need to be performed and when in order to ensure efectiveness and completeness in managing risks. PILLAR 2 1. Risk Identiication – a systematic process to identify and document the Group’s principal risks. 2. Risk Analysis – identiied risks are then analysed, and an assessment is formed regarding their nature, impact and frequency of occurrence. 3. Risk Appetite – the amount of risk the Group is willing to accept in pursuit of its strategic objectives. 4. Risk Mitigation – the Group may choose to avoid, limit, transfer, hedge or insure the risk. 5. Risk Control – design, implementa- tion and maintenance of a Risk Control framework. 6. Risk Reporting and Monitoring – the Board of Directors monitors the Group’s exposures as part of the reporting process. 7. Assessment of Efectiveness – the lifecycle that is formed will be repeated as new risks emerge and the efec- tiveness of the existing controls may require improvement. 216 TAXONOMY OF RISKS The Risk Universe was scanned to identify the Unique Risks that could materially impact the Group’s business strategy and objec- tives. The various Risks that the Group has identiied and analysed have been organised in three layers: Risk Areas, Risk Groups and Unique Risks. The 49 Unique Risks (Level 3) have been organised into 19 Risk Groups (Level 2) based on their similarity and owner- ship by diferent functions and ultimately into 4 Risks Areas (Level 1). PILLAR 3 • Strategic Risks are often risks that the Group may have to take to expand and thrive in the long term. • Investment Risks are the Group's main business risks and they are related to the management of the portfolio of the Group's assets. • Financial Risks capture the risk of having inadequate access to Capital, Funding and Liquidity along with Market, Credit and Tax Risks. • Operational risks are the risks that actual losses, incurred for inadequate or failed internal processes, people and systems, or from external events, difer from the expected losses. Each Risk Area has been allocated to a diferent Executive Director (or both Executive Directors) who is the Owner of that Risk and is responsible for managing it. The responsibility for the management of each Risk Group has been allocated downstream to a difer- ent Head of Department. The reason for overlaying the Risk taxonomy over the Company management structure is to ensure that integration and control happens naturally. Investment Risks Operational risks Strategic Risks Financial risks Risks Groups / Level 2 Risks Areas / Level 1 Business Model Organisation Macroeconomic Geopolitical ESG HR IT Legal Compliance Insurance Climate Change Model Property Sector Portfolio Single Properties Capital, Funding, Liquidity Market Credit Tax 217 Implementation of the Risk Management Process The implementation of the Risk Management pro- cess started with an update of the Risk Inventory. The Group has identiied the 49 Unique Risks (Lev- el 3) and organised them in Risk Areas (Level 1) and Risk Groups (Level 2). In the next step, the process involves sourcing of data from the same internal controlling and ac- counting system used for inancial reporting and aggregating and modelling independently by the Risk Management department. In this way, con- sistency is ensured between risk monitoring and steering on the one side and inancial reporting and business performance on the other. The inal step involves the organisation (Executive Direc- tors, country heads and all identiied Risk Owners in Business and Operating Units) to manage, miti- gate, measure and report identiied risks along with early warning indicators. This step will be inalised in 2022. Climate Change Related Risks Respect for the environment is at the heart of CTP’s strategy. Our ESG credentials include BREAAM certiications, designs to the highest specs, incorporating technology to reduce our and our clients’ energy usage and installation of solar energy capacity. The way we view Climate Change Related Risks from a Risk Management perspective is three-fold: • Environmental Risk category under Strategic Risk/ESG: this captures the ethical element of doing the right thing to help mitigate an envi- ronmental catastrophe as a corporate respon- sibility. • Climate Change Risk category under Opera- tional Risk: designed to capture the potential physical damage to property that could result from extreme weather phenomena linked to Cli- mate Change. • Climate change related risks in other Risk cat- egories: examples include Customer Behaviour Change Risk, Pandemic/Acts-of-God Risks, Reputational Risk, Business Continuity Risk, Regulatory Non-Compliance Risk and Regulato- ry Change Risk. The Risks are quantiied and ranked by expected loss. CTP estimates that a composite measure of the aggregate impact of all Climate Change related risks places it in the list of top-5 biggest Risks. We have performed a high-level analysis of the impact of climate-related risks on the company’s business and operations on the longer term and on the accounting in the current inancial statements. Further it is noted that the majority of the assets in the balance sheet of CTP consist of investment property (under development) valued at fair value. On that basis, we have concluded that the efect of climate-related risks do not have a material impact on accounts and disclosures, including judgements and estimates in the inancial statements. Risks Arising from Fraud, Irregularities or Misconduct At CTP we are proud of our high ethical standards and through our compliance programme, we ensure that risks arising from fraud, irregularities or mis- conduct are absolutely minimised. The CTP compliance programme is a basic com- ponent of systematic compliance at CTP. It is tailor made, based on compliance risk analysis focused on anti-bribery, corruption, gifts and hospitality, procurement and fraud, fair competition (including dawn raids) anti-money laundering (AML), insider dealing and trade secrets. Internal Controls A controlled environment has been created with: • central approvals by the Executive Directors of investments, budgets and payments, which then low into systems with controlled access rights; • consolidated inancial statements that go through three levels of review; • major digitisation and automation projects (completed and on-going), which are improving the control and help to streamline processes. Mitigation Strategies The mitigation strategies employed to reduce and control fraud risk include: • CTP Group’s commitment to strict adherence to applicable laws and regulations; • critical compliance functions have been estab- lished (with separate heads of compliance, in- ternal audit, risk management and controlling); • legal and compliance head in each country of CTP Group’s presence; • awareness training provided to employees; • monitoring of existing and future legislation, regulations and requirements in coordination with external experts and gathering of advice from industry organisations; • management formalised the internal control framework addressing inancial reporting risks. After the assessment of risks arising from fraud, irregularities and misconduct the Expected Losses were estimated to be very low (less than 1% of total Expected Losses). Responsibilities • Executive Directors, as a general principle, de- termine the Risk Appetite. They approve and verify the design of the controls, approve and review the implementation of the controls as well as the maintenance thereof, and manage and mitigate the risks. • Risk Management identify the risks, assess the risk analysis and quantiication, advise on the risk appetite, implement the controls, and moni- tor and report on the risks. • Country Heads, Business and Operating Unit Lead- ers and all other Risk Owners, manage, mitigate and inform about the risks. • Internal Audit reviews every step of the process to provide independent assurance. They report to the chair of the Audit Committee and the CFO. • Audit Committee reviews the risk identiication, provides input about the design of the control mechanisms and supervision of their mainte- nance and judges and advises the Board of Di- rectors thereon. • Board of Directors reviews the risk identiica- tion, approves the risk appetite, supervises the implementation and maintenance of the con- trols and approves the management and miti- gation of the risks as well as the risk reporting. Risk Appetite Risk Appetite is the amount of risk the Group is will- ing to accept in pursuit of its strategic objectives. The three levels of Risk Appetite currently used are: • Manage – these are risks that the Group is taking to meet its investment objectives. They are mainly Strategic and Investment/Prop- erty Risks as appropriate for a real estate in- vestment company. In this category Valuation Risk, Capital Risk and Funding Risk are also in- cluded as being integral to the investment pro- cess and the property market itself. The Group has the expertise to manage these risks in order to maximise its proit potential. • Avoid – these are risks that the Group tries to avoid. • Minimise – The Group’s tolerance for these risks is zero but some minimal risk is unavoidable. All Operational Risks are included in this category. 218 Risk Control Framework The Group’s Risk Control is based on a central- ised framework of approvals, systems and data. It starts with central approvals of investments and budgets by Executive Directors, which then low into systems and then again with the central ap- proval of payments by Executive Directors, creating a closed “sandbox” environment outside of which no investment or payment can be approved. The con- trol worklow has two components: • Ex-ante controls are incorporated in periodic reporting and approval documentation for the Risk Owners to inform Risk Management and the Audit Committee/Board of Directors about the risks that are perceived to be most signii- cant and the mitigation strategies that are used against them. • Ex-post control Risk Management indepen- dently aggregates all the data to calculate Risk Measures from internal systems. These data are sourced from the same internal Controlling and Accounting systems that are used for Financial Reporting. The Risk Management department is responsible for periodic Risk Reporting to the Audit Committee and the Board of Directors, thereby incorporating information from the Risk Owners. A Dashboard will be delivered quarterly for all the risks, with ad- hoc updates in the event of larger perceived macro- economics risks. CTP’s Principal Risks To identify the Risks with the biggest potential to harm the Group’s strategic objectives, the 49 Lev- el-3 Unique Risks have been sorted by their per- centage contribution to Expected Losses. A con- siderable concentration can be observed, as the six largest contribute 50% of the overall Expected Losses and are discussed in greater detail in Ap- pendix E. The four biggest Level-2 Risk Groups con- tribute just over 50% of the overall Expected Loss- es, while the contribution of the four Level-1 Risk Areas is more balanced. EXPECTED LOSS CONTRIBUTION BY RISK AREA EXPECTED LOSS CONTRIBUTION BY RISK GROUP Business Model 7% Market Risks 21% Macroeconomic 6% HR 6% Insurance 11% Portfolio 13% 57% Property Sector 12% ESG 5% Single Properties 5% IT 4% Other 7% 2% Compliance 1% Organisational 1% Climate Change 1% Legal 1% Credit 1% Model 0% Geopolitical 0% Tax Capital, Funding & Liquidity 3% Strategic 19% Financial 26% Operational 30% Investment 25% 219 Non-Executive Board Corporate Governance MEEt the board 220 221 222 Governance Policies Corporate Governance 1. Introduction CTP N.V. is a public limited liability company under Dutch law, listed on Euronext Amsterdam N.V. since 25 March 2021 and included in the AScX Index since 21 June 2021. CTP N.V. together with its subsidiar- ies within the meaning of Article 2:24b of the Dutch Civil Code is hereinafter referred to as CTP, CTP Group or the Company. CTP has designed its corporate governance structure to best support its business, to meet the needs of the (Non-) Executive Directors, its stake- holders and comply with applicable laws, the Dutch corporate governance code (the Code) and other applicable regulations. 2. CTP’s Governance Structure CTP has a one-tier board structure consisting of one or more Executive Directors and independent Non-Executive Directors (the Board). The Board currently consists of six directors, of which two are Executive Directors and four are Non-Executive Directors. The Board, as a one-tier board, is both the executive and supervisory body of the Company. Under CTP’s articles of association (the Articles) and Dutch corporate law, the Board is collectively responsible for the management, general and inan- cial afairs and policy and strategy of CTP Group as well as its operations, taking into consideration the interests of CTP Group’s stakeholders. The Board also observes the corporate social responsibility is- sues that are relevant to CTP Group. Within the Board, the Non-Executive Directors su- pervise and provide advice on the policy and per- formance of the duties of the Executive Directors, the Company and its business. Furthermore, the Non-Executive Directors are responsible for the supervision of the implementation of the Compa- ny’s strategy by the Executive Directors. The Non- Executive Directors are also responsible for deter- mining the targets and remuneration of the Execu- tive Directors in accordance with the remuneration policy and any arrangements for remuneration in the form of shares or rights to subscribe for shares (as approved by the general meeting of sharehold- ers (the General Meeting)). The Board has adopted written rules of proce- dure of the Board (the Rules of Procedure) that gov- ern its performance, decision making, composition, the tasks and working procedures of the commit- tees and other matters relating to the Board, the CEO, the Non-Executive Directors and the commit- tees established by the Board. In accordance with our Rules of Procedure, resolutions of CTP’s Board are adopted by a simple majority of the votes cast at a meeting at which at least the majority of its members is present or represented. Each director has the right to cast one vote. In a tie vote, the pro- posal will be rejected except in speciic cases where the current CEO has a casting vote. The Rules of Procedure are available on CTP’s website. In addition to the Rules of Procedure, the Board has adopted charters of its committees, to which the Board, while retaining overall responsibility, has assigned certain tasks: the Audit Committee and the Remuneration and Nomination Committee. Each committee reports to the Board. In this chapter, CTP addresses its overall corpo- rate governance structure and states to what ex- tent the Company applies the provisions of the Code. Deviations from the provisions of the Code will be explained. Substantial changes in CTP’s cor- porate governance structure and in the Company’s compliance with the Code will be submitted to the General Meeting for discussion under a separate agenda item. Furthermore, information is included that the Company is required to disclose pursuant to the Dutch governmental decree on corporate governance. CTP’s corporate governance state- ment is available in digital format and can be found at https://www.ctp.eu/iles/2021/03/CTP-Board- Rules-290321.pdf. 3. General Meetings The annual General Meeting of shareholders (AGM) is held at least once a year, no later than 30 June. The agenda for the AGM includes, among other things, the adoption of the annual accounts, the ap- pointment of the external auditor, the allocation of the proits insofar as this is at the disposal of the General Meeting, and any other matters proposed by the Board or by the shareholders in accordance with the Articles and Dutch law. The Articles outline the procedures for conven- ing and holding general meetings of shareholders and the decision-making process. The draft min- utes of the AGM must be published on CTP’s web- site no later than three months following the AGM. Shareholders are given three months to respond to the draft minutes. The minutes of the AGM are subsequently adopted and signed by the chair of the AGM and the company secretary. Governance Annual General Meeting 2021 The 2021 AGM was held on 4 March 2021. The meeting topics included, amongst others, the 2020 Annual Report, the allocation of results and the publication of our intention to launch an Initial Pub- lic Ofering and to apply for admission to listing and trading of CTP’s shares on Euronext Amsterdam N.V. (IPO). Shareholders Resolution 2021 On 16 March 2021, a shareholder’s resolution was executed resolving, amongst others, the following: • to issue new shares in connection with the IPO; • to convert the Company from a private limited liability company to a public limited liability com- pany and in connection therewith to amend the Articles; • to appoint the Executive Directors and Non- Executive Directors; • to appoint KPMG Accountants N.V. as auditor of the Company for the inancial years 2021 and 2022; • to authorise the Board, until 29 September 2022, (i) to issue shares or to grant rights to acquire those shares up to a maximum of 10% of the Company’s share capital immediately af- ter settlement of the IPO, (ii) to issue shares up to the amount of shares relected on by share- holders pursuant to an interim scrip dividend regarding the 2021 inancial year, (iii) to exclude pre-emptive rights accruing to shareholders in connection with the aforementioned issuances and (iv) to cause the Company to acquire shares in its share capital at a price up to 110% of its market price on Euronext Amsterdam N.V. and up to 10% of the issued capital immediately af- ter IPO settlement. The next AGM will be held on Tuesday 26 April 2022. Dividend The inal dividend for the 2021 inancial year will be paid following the AGM’s adoption of the 2021 an- nual accounts and approval of the payment of the dividend. An interim 2021 dividend was made avail- able in shares or in cash and paid out on 22 Septem- ber 2021, bringing the total dividend over the 2021 inancial year to EUR 0.35 per share. Contacts with shareholders are conducted in line with the bilateral contacts policy, published on CTP’s website. 4. Appointment and Composition of the Board The Board is authorised to determine the number of Executive and Non-Executive Directors, who are appointed by the General Meeting on a binding nomination of the Non-Executive Directors on be- half of the Board. The AGM may overrule a binding nomination for the appointment of a director by a resolution adopted by an absolute majority of the votes cast, representing more than one-third of the issued capital. The majority of the directors must be Non-Executive Directors. The Board may grant titles to directors as the Board deems appropriate, including the title of Chief Executive Oicer (CEO) and Senior Independent Director (SID). The CFO acts as the Board's spokesperson and is primarily responsible for the Group’s strategic, risk and control issues. He is also responsible for convening general meetings of shareholders and calling Board meetings. The responsibilities of the SID include ensuring that the Board and its com- mittees are composed in a balanced way and func- tion properly. The SID chairs meetings of the AGM and the Board, ensures Board decisions are made in accordance with the Articles and the Rules of Procedure, and supervises the implementation of adopted resolutions by the Board. The SID also acts on behalf of the Board as the main contact for the shareholders and the AGM. A director is appointed for a term lapsing ul- timately at the end of the AGM held in the fourth year after the year of his/her appointment or re- appointment, unless speciied otherwise in the nomination for his appointment or re-appoint- ment. As an exception, the majority shareholder, Mr Remon Vos, may be unlimitedly appointed and re- appointed as a director. He was appointed after the IPO as director for an indeinite term. The reason for this is that Mr Vos has been instrumental to the building of the Group since its foundation in 1998 and has been its CEO since 1999. He is personally involved in many aspects of the Group’s business in- cluding formulation and implementation of its busi- ness strategy and relationships with key tenants. The AGM may at any time suspend or dismiss a director. The Executive Directors are Mr Vos (CEO) and Mr Richard Wilkinson (CFO). As mentioned above, Mr Vos is appointed for an indeinite term. Mr Wilkinson is appointed for a term ending at the end of the AGM to be held in 2025. The Non-Executive Directors are Ms Barbara Knolach (SID), Mr Gerard van Kesteren (vice- chair), Ms Susanne Eickermann-Riepe and Mr Pavel Trenka. The Non-Executive Directors were ap- pointed on 16 March 2021 for a term ending at the end of the AGM to be held in 2023. All members are independent in conformity with the provisions of the Code. The retirement schedule of the Non- Executive Directors provides for them to retire simultaneously. There is no written succession plan currently in place, however with the availability of a dedicated senior management team placed below the Executive Directors short- and medium-term succession can be guaranteed. The Board has two committees, an Audit Com- mittee and a Nomination and Remuneration Com- mittee, and is supported by the company secretary. Independence of Non-Executive Directors Conlict of interest situations are provided for in the Rules of Procedure. The provisions are such that the Non-Executive Directors decide whether a director has a conlict of interest without this director being present. Upon this being the case a decision can only be made if the proposed transaction is customary in the market and in compliance with the laws of the relevant jurisdiction and requires the consent of at least the majority of the Non-Executive Directors if the conlict of interest is of material signiicance to CTP or the relevant director. No loans or guarantees are given to a director unless in the normal course of business and on terms applicable to CTP’s person- nel as a whole. In the opinion of the Non-Executive Directors, the independence requirements referred to in the Code have been fulilled. Out of the four Non-Exec- utive Directors, three own CTP shares. 223 CEO Dutch, 1970 1 July 2020 Indeinite CEO of CTP • None No POSITION INDEPENDENCE FIRST APPOINTED ON NATIONALITY, YEAR OF BIRTH END OF CURRENT TERM OF APPOINTMENT PREVIOUS SIGNIFICANT POSITIONS ADDITIONAL POSITIONS CFO British, 1964 28 December 2020 2025 Erste Group (Senior management positions, inter alia Head of Commercial Real Estate Business) • None Yes Chair, Non-Executive Director Austrian, 1965 29 March 2021 2024 BNP Paribas Real Estate (Deputy CEO and Global Head of Investment Management) SEB Asset Management (CEO) • Swiss Prime Site (Board Member) • Landmarken AG (Supervisory Board Member) Yes PERSONAL INFORMATION Biographies of directors of CTP’s Board Remon Vos Richard Wilkinson Barbara Knofl ach 224 POSITION INDEPENDENCE FIRST APPOINTED ON NATIONALITY, YEAR OF BIRTH END OF CURRENT TERM OF APPOINTMENT PREVIOUS SIGNIFICANT POSITIONS ADDITIONAL POSITIONS Gerard van Kesteren Susanne Eickermann-Riepe Pavel Trenka Non-Executive Director Dutch, 1949 29 March 2021 2024 Kuehne + Nagel International AG (CFO) • Raben Group (Member of the Supervisory Board) • Planzer Holding AG (Member of the Supervisory Board) • Janel Corporation (Chair of the Audit Committee and Member of the Supervisory Board) • PrimaFrio (Non-Executive Director) Yes Non-Executive Director German, 1960 29 March 2021 2024 PwC (Partner, Head of German Real Estate Business) • Engel & Völkers Venture Management AG (Deputy Chairperson of the Supervisory Board) • RICS (Chair of the European World Regional Board, Chair of the Advisory Board of RICS Germany) • ICG Institute (Chair of the Board) • BIG (Member of the Sustainability Board) • DGNB German Sustainable Building Council (Head of the Advisory Board) Yes Non-Executive Director Slovak, 1973 29 March 2021 2024 HB Reavis Group (CEO) • Leaf (Board Member) • Duke of Edinburgh International Award (Board Member) Yes 225 director's competency table Years in board Year of birth Gender General business management strategy Finance (balance & reporting) Financial markets/ disclosure, communication Audit, risk, com- pliance, legal & governance Real estate M&A IT/Digital & Innovation Social employment ESG Remon Vos 2 1970 M XXXXXXXX Richard Wilkinson 2 1964 M XXXXXXXXX Barbara Knoflach 1 1965 F XXXXXXXXX Susanne Eickermann-Riepe 1 1960 F XXXXXXXXX Gerard Van Kesteren 1 1949 M XXXXX Pavel Trenka 1 1973 M XXXXXX Introduction Programme for Non-Executive Directors The Non-Executive Directors completed an intro- duction programme in June 2021 consisting of a training session on the Code and country visits to three countries in which the Group operates (the Czech Republic, Hungary and Romania). Mr Trenka participated in a separate programme consisting of location visits in the Czech Republic where he met with local CTP management. In addition, all Non-Executive Directors at- tended the senior management ofsite event in September 2021, during which the Group’s strategy and key challenges were discussed. Permanent Education and Evaluation In view of the recent appointment of its members in March 2021, the Board did not evaluate its own functioning, that of its committees, nor of its indi- vidual members. The Board is of the opinion that a suiciently long period of functioning should lapse to be able to assess the performance of the various bodies. Evaluation will consequently take place in the irst half of 2022. A training programme for the Board was es- tablished at the 16 December 2021 meeting. The programme varies from ESG sessions (including reporting based on new legislation) to updates on compliance developments and involves prop- erty visits to Amsterdam Logistic Cityhub in the Netherlands and various sites in Germany. In the irst half of 2022, the Nomination and Remuneration Committee will supervise the selection criteria and appointment procedures for senior management (composition of this group will be determined in 2022). The committee will focus on drawing up a plan for succession of Executive Directors and Non-Executive Directors, evaluate the functioning of the Executive Directors and Non-Executive Directors and report on the results to the Non-Executive Directors, and assess the size and composition of the Board and review the com- position proile of the Non-Executive Directors. 5. Executive Committee After having been operational as a listed com- pany since March 2021 CTP acknowledges that the establishment of an Executive Committee—which was done immediately prior to the IPO in March 2021 —is not appropriate for the Company at its current stage. Day-to-day management is done by and between the CEO and CFO and the coun- try heads and there is frequent (monthly) contact between the CFO and the Non-Executive Direc- tors. Having an additional layer of decision-making turned out to be unnecessary from the governance and business perspectives. The Board will have a discussion on the positioning of the Executive Committee within CTP also consider- ing leadership styles and skills in the irst quarter of 2022. The existence of a stable group of senior man- agement will be considered in this discussion. Once discussed and resolved, the Company will amend the Rules of Procedure to synchronise the factual situation with the organisational documents. 6. Board Committees The Board has established an audit committee (Au- dit Committee) and a nomination and remuneration committee (Nomination and Remuneration Com- mittee), comprising only Non-Executive Directors, without in any way derogating from the primary responsibilities of the Board as a whole. The re- spective chairpersons of these committees report on their activities periodically to the entire Board. Both committees are subject to speciic regula- tions, which form part of the Rules of Procedure, available on our website. 226226 Audit Committee Report Audit Committee The duties of the Audit Committee include super- vising and monitoring as well as advising the Board and each director regarding the integrity and qual- ity of the Company's inancial report and the efec- tiveness of the Company’s internal risk manage- ment and control systems. The Audit Committee advises the Board on the exercise of certain of its duties. It also supervises the submission of inan- cial information by the Company, the compliance with recommendations of internal and external ac- countants, the Company’s policy on tax planning, the Company’s inancing arrangements, and also assists the Board with the Company’s information and communications technology. It further main- tains regular contact with and supervises the ex- ternal accountant and it prepares the nomination of an external accountant for appointment by the AGM. The Audit Committee also issues preliminary advice to the Board regarding the approval of the annual accounts and the annual budget and ma- jor capital expenditures. The charter of the Audit Committee is published on CTP’s website. The Audit Committee members are Mr Van Kesteren (Chair) and Ms Eickermann-Riepe. Meetings The Audit Committee met four times in 2021; both members attended all meetings. The Audit Com- mittee reviewed the Rules of Procedure. The Audit Committee extensively discussed the periodic and annual inancial statements (including forecasts and outlook) as well as the draft management let- ter in the presence of the Company’s CFO and in- ternal auditor. The external auditor attended (part of) the meetings, to present its 2021 audit plan and indings. The Audit Committee discussed the funding of the Company and the internal 2021 audit plan, KPIs and the selection of an external value for 2021-2022. The status of control issues based on deiciencies identiied by KPMG in the 2020 audit was discussed. Updates on the organisation of the planning and control cycle and compliance updates were given regularly, including the efectiveness of and compliance with the Company’s Code of Con- duct. Risk factors and risk management were also discussed. At its 16 November 2021 meeting, the Compa- ny’s policy on tax planning was discussed and the internal risk manager presented priorities for a risk management framework. The application of infor- mation technology by the Company, including risks relating to cybersecurity, was discussed at its 16 December 2021 meeting. At its 16 December 2021 meeting, the Audit ommittee and the Board discussed the fulilment of the responsibilities of the internal auditor. The functioning of and developments in the relationship with KPMG was also discussed. As KPMG was ap- pointed external auditor on 16 March 2021 for the years 2021 and 2022, there was no discussion on appointment/re-appointment or dismissal. The Audit Committee met with the internal audit function and the CFO separately four times since the appointment of the internal auditor on 1 May 2021. At these meetings the following topics were discussed: progress of the internal audit plan and the internal control framework. The Audit Commit- tee met outside the presence of the Executive Di- rectors on 16 November 2021; KPMG was present at the meeting. The efectiveness of the Company’s internal risk management and control systems was not dis- cussed as these systems are in the process of being formalised. The assessment of the efectiveness of the internal and external audit processes were not discussed; material considerations regarding inan- cial reporting were also not discussed. The way in which material risks and uncertainties referred to in the management section of the governance chap- ter have been analysed and discussed and has been tabled. A description of the most important ind- ings was discussed by the Board at its 16 December 2021 meeting. The Company’s risk proile was discussed at its 16 December 2021 meeting by the internal risk manager and was established as the working risk control matrix going forward. Findings, observa- tions, and recommendations have been made on the implementation of the matrix but not yet on its design, existence and operating efectiveness. The Audit Committee evaluated the functioning of the internal auditor and of KPMG as external auditor and advised the Board of their functioning. Audit Committee Report Corporate Governance 227 Nomination and Remuneration Committee Report Nomination and Remuneration Committee The Nomination and Remuneration Committee ad- vises the Board on the exercise of its duties regard- ing the selection and appointment of directors and senior management and on the remuneration policy relating to the directors and preparing proposals for the Board on these subjects. The duties of the Nomination and Remuneration Committee include preparing the selection criteria and appointment procedures for directors and proposing the com- position proile for the Non-Executive Directors. It also periodically assesses the scope and compo- sition of the Board, and the functioning of the in- dividual directors. The Nomination and Remuner- ation Committee also proposes appointments and reappointments. It supervises the Board’s policy on selection criteria and appointment procedures for directors and senior management. Furthermore, the duties of the Nomination and Remuneration Committee include the preparation of proposals of the Board on the remuneration policy for the directors to be adopted by the AGM and on the remuneration of the individual Execu- tive Directors to be determined by the Non-Exec- utive Directors. The Nomination and Remuneration Committee also prepares a remuneration report on the execution of the remuneration policy for the Board during the respective year to be adopted by the AGM. The AGM has an annual advisory vote on the remuneration report. The charter for the Nom- ination and Remuneration Committee is published on CTP’s website. The Nomination and Remuneration Committee members are Mr Trenka (Chair) and Ms Knolach. Meetings The Nomination and Remuneration Committee met three times during 2021; both members attended all meetings. In its inaugural meeting after the IPO the committee discussed and prepared the pro- posal for the remuneration policy of the directors and adopted selection criteria, proile and appoint- ment procedures for the Non-Executive Directors. The committee discussed the ixed and variable remuneration of executive director Mr Wilkinson in 2021 (including his KPIs), as well as the perfor- mance of both Executive Directors. Consideration to introduce soft KPIs for 2022 were discussed based on benchmarking and marketing trends. When deemed necessary, the committee consulted outside experts for advice. The draft remuneration report, containing information on the remuneration policy and implementation thereof, was discussed at the November and December meetings. At the 16 December 2021 meeting the commit- tee submitted a proposal to the Non-Executive Di- rectors for the 2022 KPI targets of the CFO and the individual remuneration of the CEO and the CFO. All Non-Executive Directors were carefully se- lected in relation to the IPO. The size and compo- sition of the Board and the proile of the individual directors were considered resulting in a Board that is well-placed with respect to diversity, relevant ex- perience and international background. CTP listed at the end of March 2021 and therefore discussions (if any) on selection criteria and appointment pro- cedures for directors, senior management, succes- sion planning and a periodic assessment of the size, composition and assessment of the functioning of the directors will take place in the irst half of 2022. Board’s Role in Risk Oversight The Board believes that its current structure pro- vides robust and highly efective oversight based on, among other factors: • all four Non-Executive Directors and one of the Executive Directors are independent (the sole board member who is not independent is the CEO); • robust corporate governance principles are in place and are reviewed annually; • the CEO and SID both have deep experience and knowledge of CTP’s business and industry and a demonstrated unique and successful strate- gic vision. Both the SID and CEO continue to be actively focused on their role of providing the overall strategic leadership for CTP, consistent with Dutch law and the Company’s organisa- tional documents and its one-tier board struc- ture – a role that the Board believes remains critically important as our industry continues to experience signiicant changes at a rapid rate; • the Audit Committee and the Remuneration and Nomination Committee are both entirely composed of independent directors (within the meaning of the Code); • approval of any appointment of members to the Audit Committee and the Remuneration and Nomination Committee must include at least a majority of the independent directors; • all Board committees operate pursuant to writ- ten charters and conduct annual self-evalua- tion; • the independent directors of the Board and its committees engage in detailed discussion and analysis regarding matters put before them and consistently and actively engage in the devel- opment and approval of signiicant corporate strategies. Remuneration Committee Report Corporate Governance 228 CTP N.V. 2021 Remuneration Report In compliance with Article 2:135b of the Dutch Civil Code, the European shareholder rights directive (SRD II) and the Code, this report is split into two separate sections, including: 1. a remuneration policy section describing the overall approach to remuneration, and in particu- lar, setting out the ixed and variable pay com- ponents of the Executive Directors and the ixed pay components of the Non-Executive Directors, including the background relecting on the inter- nal and external context surrounding remunera- tion outcomes for the reporting year; and 2. a section on the implementation of the remuner- ation policy during the reporting year. A copy of the report shall be available on our website for 10 years. Overview of our Remuneration Policy The remuneration policy for the Executive Direc- tors and the Non-Executive Directors of CTP N.V. was adopted by the AGM on 25 March 2021, and be- came efective as of 16 March 2021, following the efective IPO date. The remuneration report serves as the irst report for CTP as a listed company. Consequently, this report does not include any com- parable igures. The design and implementation of our remuner- ation policy have been drafted to follow all applica- ble laws and corporate governance requirements. Decisions related to remuneration are made in the context of CTP’s values and strategy. Philosophy and Principles CTP’s remuneration philosophy aligns with the way the Company operates, and that is helping CTP to grow the business and to grow the businesses of its clients. CTP is outcome focused, performance driven and rewards fairly and competitively with a focus on long-term value creation while supporting the ownership mentality and spirit of entrepreneur- ship in its teams in all its operating locations. CTP places an emphasis on variable remuneration to relect its highly performance-orientated and entrepreneurial culture, its growth ambitions, and to ensure alignment with the expectations of shareholders. The six principles that guide CTP’s approach to remuneration are: 1. remuneration should focus on long-term value creation for and be clearly linked to the delivery of superior and sustainable corporate results in line with our strategy; 2. remuneration outcomes should mirror the shareholder and wider stakeholder experience over the long-term and be aligned with our long- term strategy and established risk appetite; 3. remuneration should be fair and competitive against companies of a similar size, scope and complexity with a strong emphasis on varia- ble pay to relect our high-performance culture but at the same time not paying more than necessary; 4. remuneration should be simple and transparent in terms of design and communication to inter- nal and external stakeholders; 5. remuneration should adhere to principles of good corporate governance practice in line with the Dutch Corporate Governance Code and Dutch law; 6. remuneration frameworks should be suiciently lexible to take into account changing business priorities over time. In line with CTP’s remuneration philosophy and prin- ciples, its remuneration policy is to target base sala- ry levels around the lower quartile of the peer group and total direct compensation levels (the sum of base salary, annual bonus and long-term incentive) around the upper quartile of Dutch listed companies. Again, this positioning policy relects CTP’s perfor- mance-based culture with highly competitive levels of reward only being earned if outstanding perfor- mance is delivered. 229 Benchmarking and Peer Group CTP’s remuneration should be fair and competi- tive against companies of a similar size, scope, and complexity. The reference points used to deine market peers in terms of remuneration are Dutch listed companies that are of a similar size and complexity to CTP and where appropriate, sector comparisons, i.e., European real estate and logis- tics businesses. To ensure a balanced approach to benchmarking, remuneration levels of Dutch list- ed companies within a reasonable range of CTP’s market capitalisation will be considered. This may comprise both Euronext AEX and AMX compa- nies. CTP continuously reviews the market refer- ence points used for benchmarking purposes as the Company grows. Looking Back While Covid-19 has provided challenges, CTP has continued to perform well, as set out in the “2021 Year in Review” section of this report. Remote working was implemented immediately and main- tained for those employees that preferred to (par- tially) work from home after the return to oice was permitted. Further, morale boosters in the form of communication and small gifts had a posi- tive impact on the workforce. Looking Ahead Creating sustainable long-term value for CTP’s shareholders and other key stakeholders are at the core of CTP’s business. Hence, the core per- formance measure which was assessed under the long-term incentive plan is Total Shareholder Re- turn (“TSR”). TSR relects the return received by a shareholder and captures both the change in share price and the value of dividend income, assuming dividends are reinvested. TSR is an appropriate measure, as it objectively measures CTP’s inancial performance and assesses long-term value crea- tion for shareholders. Next to TSR the Company also measures achieve- ments against sustainability KPI’s. CTP feels this is appropriate as it takes a hands-on approach to protecting the environment. With smart buildings, circular parks and solar-ready building plans, the aim is not only carbon-neutrality but to positively impact the communities in which CTP operates. CTP takes the environmental impact of its activi- ties seriously. Equality, consistency, and transparency are em- bedded in CTP’s remuneration practices, as CTP believes that this is an imperative foundation to- wards building a thriving and inclusive workplace. Engaging with Our Stakeholders CTP engages openly and often with its shareholders and institutional investors on their input regarding CTP’s remuneration policy and the implementation thereof. Taking this input into account and along- side the input from CTP’s other stakeholders allows the Company to make informed decisions going for- ward and to remain impactful on all fronts. Remuneration of the Executive Directors Total Direct Remuneration The total direct remuneration of the Executive Di- rectors consists of four components: 1. ixed annual base salary; 2. pension and fringe beneits; 3. an annual cash incentive; and 4. a long-term share-based incentives. The total direct remuneration mix at target and maximum performance for the CEO and CFO is as follows: CFO – MAXIMUM PERFORMANCE Fixed remuneration Variable remuneration 18% 82% 100% Fixed remuneration CEO – TARGET AND MAXIMUM PERFORMANCE CFO – TARGET PERFORMANCE Fixed remuneration Variable remuneration 29% 71% 230 Note that our CEO, Mr Vos, has a substantial share- holding in the company, meaning there is already a clear and direct link between his reward and the company’s performance. Therefore, there are ele- ments of the remuneration policy in which Mr Vos currently does not participate, namely variable re- muneration. Scenario analyses under diferent per- formance outcomes are carried out annually. Fixed Annual Base Salary The ixed annual base salary is based on seniority and experience, relecting the nature of the role and responsibilities, while considering relevant bench- marks. The base salary of the Executive Directors is currently set around the lower quartile of the Dutch listed peer group. Salaries are reviewed and approved by the Non-Executive Directors on an annual basis, or when there is a change in role and responsibility. Pension and Fringe Beneits Executive Directors do not participate in a pen- sion plan but do receive market standard beneits that could include: health insurance, life insurance, housing/car allowance, use of a company car, travel allowance, and workers’ compensation for illness. Additional beneits may be considered based as re- quired, subject to business needs. Annual Cash Incentive The purpose of the annual cash incentive is to drive the achievement of annual performance targets supporting CTP’s shorter-term strategic goals. The Executive Directors are eligible for an “at tar- get” annual bonus of 150% of the base salary and the maximum bonus for outstanding performance is capped at two times the target amount equal to 300% of base salary. Performance measures are based on key perfor- mance indicators that relate to CTP’s strategy and business priorities for the year ahead: • Financial measures could include cashlow, EBITDA, proit, gross lettable area, gross rental income, occupancy rate, rental collec- tion, weighted average unexpired lease term (WAULT) and other similar inancial measures; • Non-inancial measures could relate to environ- mental, social and governance targets, sustain- ability targets, corporate social responsibility targets and speciic strategic milestones as considered appropriate by the Non-Executive Directors. For the annual cash incentive, 70% of the perfor- mance measures are inancial in nature and 30% are non-inancial. The chosen performance meas- ures have challenging yet realistic targets to en- courage achievement in a sustainable manner. At the Non-Executive Directors’ discretion, a portion of the annual cash incentive could be deferred into shares using the deferred incentive plan. Further informa- tion is contained beneath the heading “Deferred Incentive Plan”. Long-term Incentives Plan The purpose of the long-term incentive plan (“LTIP”) is to incentivise the achievement of long- term sustainable shareholder returns and the de- livery of CTP’s long-term strategy. Under the LTIP, the Executive Directors may re- ceive an annual award for shares, which shall nor- mally vest after a three-year performance period, subject to the achievement of certain pre-deter- mined corporate performance conditions including inancial and shareholder return based measures set by the Non-Executive Directors and remain- ing in service. LTIP awards may be granted as nil cost awards and may take the form of options to acquire shares, conditional rights to acquire shares or an immediate award of shares subject to restric- tions. No payment is required for the grant of an LTIP award (unless the Non-Executive Directors determine otherwise). LTIP awards in the form of options that have vested will normally remain exer- cisable for a period determined at grant, which shall not exceed 10 years from grant. The LTIP award opportunity is set at 100% of the base salary for delivering “at target” performance. The maximum number of shares that can be deliv- ered under the LTIP award for delivering outstand- ing performance is 1.5 times the number of shares granted (i.e., 150% of the LTIP award shares grant- ed). Therefore, the maximum LTIP award opportu- nity is equal to 150% of base salary at grant and no vesting will occur for below threshold performance. The LTIP award level relects CTP’s high-perfor- mance culture and is in line with the principle that a greater portion of total remuneration should be based on variable remuneration. In line with the Code and unless the Non-Executive Directors de- termine otherwise, LTIP awards granted to Execu- tive Directors will be subject to a holding period of at least two years following vesting. During this period, sale of the shares is restricted, although shares may be sold to cover taxes due because of vesting. Each inancial year the Non-Executive Directors will determine the most appropriate performance conditions for the LTIP award. Performance meas- ures will be selected considering CTP’s long-term business strategy and will relate to pre-determined corporate performance conditions including inan- cial and shareholder return based measures. The performance measures and targets for the irst LTIP award were approved by the Non-Exec- utive Directors following the IPO. The core perfor- mance measure that was assessed under the LTIP is Total Shareholder Return (“TSR”). TSR relects the return received by a shareholder and captures both the change in share price and the value of div- idend income, assuming dividends are reinvested. TSR is an appropriate measure, as it objectively measures CTP’s inancial performance and as- sesses long-term value creation for shareholders. LTIP awards will be subject to relative TSR and absolute TSR measures (both equally weighted at 50% each): • A relative measure allows an assessment of outperformance delivered by CTP compared to other companies. For this purpose, relative per- formance would be measured against an appro- priate European real estate index. • Absolute TSR will ensure that Executive Direc- tors remain focused on CTP’s own performance by requiring growth in TSR over the measure- ment period, irrespective of market perfor- mance. During the period of the remuneration policy and in the context of CTP’s long-term business strategy, the Non-Executive Directors will review performance conditions for each grant under the LTIP, in terms of the measures themselves, the ranges of targets and weight- ings applied to each element of the LTIP. 231 Deferred Incentive Plan The deferred incentive plan (“DIP”) is a discretion- ary plan that may operate with one or more incen- tive plans operated by CTP and provides a mech- anism for the deferral of part of a participant’s incentive into a deferred award of cash and/or a deferred award of shares (“DIP award”). The Non- Executive Directors, in circumstances they consider appropriate, may determine that Executive Direc- tors are eligible for selection to participate in the DIP. The Non-Executive Directors reserve the right to defer a part of the annual cash bonus into shares in circumstances they consider appropriate. Defer- ral of shares would be under the terms of the DIP and therefore Executive Directors may receive DIP awards which are granted over shares. DIP awards that are granted over shares may be granted as nil cost awards and may take the form of options to acquire shares, conditional rights to acquire shares or an immediate award of shares subject to restric- tions. In line with the Code and unless the Non- Executive Directors determine otherwise, DIP awards over shares will be subject to a ive year holding period following the award date. During this period, sale of the shares is restricted, although shares may be sold to cover taxes due because of vesting. DIP awards are forfeited by Executive Direc- tors who leave CTP unless and to the extent the Non-Executive Directors otherwise determine. DIP awards may vest early on certain corporate events and may be varied on variations of the Company’s share capital and certain corporate events. DIP awards may also entitle participants to dividend equivalents paid in cash or shares. The total number of shares that may be newly issued or transferred from treasury in satisfac- tion of awards under the LTIP and the DIP may in aggregate not exceed 5% of the Company’s issued and outstanding share capital from time to time. To mitigate dilution, the Company may repurchase shares to cover DIP Awards granted in the form of shares. Minimum Shareholding Requirements Executive Directors are encouraged to build or maintain (as appropriate) a minimum shareholding equivalent to 250% of their base salary over ive years. Shares included in this calculation are any shares beneicially owned and any vested shares under the LTIP. Given Mr Vos’ substantial share- holding in the Company, he already meets this re- quirement. The Non-Executive Directors may use their discretionary judgement to allow for a tem- porary deviation of this guideline in circumstances they consider to be appropriate, for example, in the case of new joiners. For the avoidance of doubt, in case of any shortfall under the share ownership re- quirement, Executive Directors will not be required to purchase shares from their own funds to satisfy the requirement. Risk Mitigation Based on predeined trigger events, malus and clawback provisions may be applied to our annual cash incentive as well as our long-term share-based incentive. Malus The Non-Executive Directors, acting fairly and responsibly, may determine that the value of variable remuneration as granted would pro- duce an unfair result due to extraordinary cir- cumstances during the period in which the pre- determined performance criteria have been or should have been applied. In such circumstances and prior to vesting, variable remuneration can be cancelled or reduced. Clawback Upon discovery that variable remuneration has been awarded based on incorrect inancial or other data (“trigger event”), the Non-Executive Directors, acting fairly and responsibly, may re- cover such variable remuneration in part or in full. The clawback period is three years follow- ing the discovery of such a trigger event and ap- plies during the holding period. Executive Service Agreements Executive service agreements are either for a permanent and indeinite period or a ixed-term period. Either way, a three-month notice period ap- plies to executive service agreements. Severance Provisions In the event of termination of employment, we pro- vide compensation for the loss of income of up to six months gross base salary in addition to a three- months’ notice period. Loans At the end of 2021, no loans, advances, or guaran- tees were outstanding to the Executive Directors. Remuneration of the Non-Executive Directors Fee structure of the Non-Executive Directors Non-Executive Directors receive an annual ixed base fee independent from the share price and per- formance of the Company and delivered in cash. The base fee is based on the ongoing nature of the responsibilities of the Non-Executive Directors as an independent body for efective control of the Company. In addition to a base fee, the Non-Executive Directors also receive committee fees and reim- bursement of reasonable expenses contingent upon their activities and responsibilities (see Table 1). All remuneration is denominated and delivered in eu- ros. Currency conversion risks are not covered by the Company. Non-Executive Directors do not qualify or re- ceive any equity in terms of the Company’s variable pay incentive schemes, and they do not qualify to participate in any beneit programme, e.g. pension plans, loan programmes, etc. 232 Reimbursements Non-Executive Directors are eligible to receive re- imbursement of reasonable expenses incurred un- dertaking their duties. Non-Executive Directors are not entitled to any other compensation in relation to their duties. In particular, Non-Executive Direc- tors do not accrue any pension beneits. The Com- pany does not have a stock option scheme. Tenure All Non-Executive Directors are subject to retire- ment and re-election by shareholders every three years, and the re-appointment of Non-Executive Directors is not automatic. During the tenure, an- nual self-evaluations are done by the Non-Execu- tive Directors and its sub-committees. Loans At the end of 2021, no loans, advances, or guarantees were outstanding to the Non-Executive Directors. 2021 Remuneration Outcomes Remuneration at a Glance The remuneration of the Executive Directors is de- termined by the Board, following a recommendation from the Nomination and Remuneration Committee with due observance of the remuneration policy. It comprises the following elements: 1. ixed annual base salary (see Table 2); 2. fringe beneits; 3. an annual cash incentive; and 4. long-term share-based incentives. The implementation of the remuneration policy provides a structure that aligns the compensa- tion of the Executive Directors with the successful delivery of CTP’s long-term strategy and share- holder value growth. When designing the remuner- ation policy, the Board considered amongst others the pay ratio between the Executive Directors pay and average employee pay. When implementing the remuneration policy, and in particular in assessing the outcomes of variable remuneration compo- nents, scenario analyses have been taken into con- sideration by the Non-Executive Directors. Given the Company’s performance, and the returns for shareholders, the Non-Executive Directors con- sidered it was appropriate that the variable com- ponents of pay for Mr Wilkinson pay out in accord- ance with their respective performance conditions having been met. When approving these payments, the Non-Executive Directors considered whether they represented a fair relection of the underlying performance of the business and was satisied that they did, and that no overriding adjustment would have been appropriate. The Non-Executive Directors took into con- sideration that Mr Wilkinson agreed in advance of the calculation of the performance conditions that 50% of his annual cash incentive for 2021 is contin- gent on and conditionally deferred until CTP Group achieves 10 million sqm growth in completed new GLA (owned properties). TABLE 1 ANNUAL FIXED BASE FEES Designation Fee (in euros) Chair of the Audit Committee 20,000 Member of the Audit Committee 15,000 Chair of the REMCO 15,000 Member of the REMCO 10,000 Designation Fee (in euros) Senior Independent Director 150,000 Member of the Non-Executive Directors 75,000 COMMITTEE FEES 233 Name Board Role Annual fixed fees received (in euros) Remon Vos Chief Executive Officer 500,000 Richard Wilkinson Chief Financial Officer 380,000 Fringe Beneits Executive Directors receive market standard ben- eits that can include: health insurance, life insur- ance, a housing/car allowance, use of a company car, travel allowance, laptop, iPad and mobile phone devices, and workers’ compensation for illness. Ad- ditional beneits may be considered as required, subject to business needs. Mr Wilkinson receives a housing allowance of (the local currency equivalent of) €1,500 per month. The details of the Executive Directors’ emoluments accrued or paid for in the 2021 reporting year are set out below. For the avoidance of doubt, no sign-on bonuses or allowances for pension were paid to the Execu- tive Directors. Mr Vos holds a substantial shareholding in the Company, meaning there is already a clear and di- rect link between his reward and the Company’s performance. Therefore, Mr Vos currently does not participate in the variable remuneration compo- nents described below. Annual Cash Incentive In 2021, the annual cash incentive pay out for the Executive Directors was dependent on the perfor- mance against the following pre-determined per- formance measures: • Growth in completed new GLA • EPRA earnings • Loan-to-value • ESG environmental index The Non-Executive Directors have reviewed the actual performance of the Executive Directors against the set of performance targets to deter- mine the extent to which the targets have been achieved. The annual cash incentive pay out is 150% of the base salary based on an “at target” achieve- ment of the performance conditions and the maxi- mum bonus for outstanding performance is capped at two times the target amount equal to 300% of the base salary. Actual performance has been disclosed based on the total multiplier, as the underlying individual multipliers could not be disclosed because of com- mercially sensitive information. The total annual cash incentive determined based on the actual performance on the EPRA earnings and the growth in completed new GLA may be ad- justed downwards based on the actual performance on the loan-to-value and the ESG environmental index performance measures. The Non-Executive Directors have reviewed the actual performance on these targets and determined that a downward ad- justment will not be imposed on the calculated an- nual incentive for 2021 (see Table 3). Long-term Incentive Plan The conditional share award made under the LTIP to Mr Wilkinson on 30 April 2021 may vest on 30 April 2024 and is subject to continuous services and meeting the predetermined performance targets. Outstanding conditional share awards will auto- matically lapse upon termination of services before the end of the vesting period. The shares must be held for a minimum of two years after vesting. The performance target for the LTIP award is divided into two elements: • 50% of the award may vest depending on the Company’s absolute Total Shareholder Return (TSR) performance; and • 50% of the award may vest depending on the Company’s relative TSR performance versus the FTSE EPRA/NAREIT Developed Europe In- dex (see Table 4). Executive Directors Remuneration Base Salary In 2021, the annual aggregate base salaries of Mr Vos and Mr Wilkinson were as follows: TABLE 2 234 Performance measure Weight Vesting levels (% of base salary) Actual performance Vested (% of base salary) Payout amounts Remon Vos, CEO Richard Wilkinson, CFO EPRA earnings 35% 21% – 105% Above target 105% - 399,000 Growth in completed new GLA 65% 39% – 195% Between target and maximum 130% - 495,300 Total 100% 60% – 300% 235% - 894,300 Deferred - 447,150 Bonus payable - 447,150 Shares awards Name of Director, position The main conditions of share award plans 2021 based on at target award levels (100%) Opening balance During the year Closing balance 123456789 Performance period Award date Vesting Date End of holding period Shares outstand- ing 1 January 2021 Shares awarded Number of shares awarded Shares subject to a performance condition Shares awarded and unvested at year end Remon Vos, CEO n/a – – – – – – – – Richard Wilkinson, CFO 2021-2023 30 Apr 2021 30 Apr 2024 30 Apr 2026 – 27,142 – 27,142 27,142 27,142 – 27,142 27,142 TABLE 4 1 50% of the annual cash incentive for Mr Wilkinson is deferred and subject to CTP Group achieving a 10 million square metres growth in completed new GLA (owned properties). TABLE 3 235 Adjustments to Remuneration In 2021, no application of the use to reclaim varia- ble remuneration by means of either a clawback or malus within the meaning of article 2:135 (8) of the Dutch Civil Code was applied on any kind of variable payments for any Executive Director. Minimum Shareholding Requirements The minimum shareholding requirements amounts to 250% of the base salary, built up over ive years. Given Mr Vos’ substantial shareholding in the Com- pany, he already exceeds the minimum shareholding requirement. Mr Wilkinson not yet meets the mini- mum shareholding requirement in 2021. Pay Ratio Pay diferentials and the Executive Directors’ posi- tion within the Company have also been considered. In this respect, the internal pay ratio was also con- sidered and discussed. Since the CEO only receives a ixed annual base salary, the pay ratio includes the CEO and the CFO (including expenses recognised by the Company in 2021 related to the annual bonus plan and the LTI plan). The average total annual remuneration for the reference group does not in- clude the total annual remuneration of either the CEO or the CFO. Based on the above, in 2021 the internal pay ratio was 7.6 for the CEO and 16.1 for the CFO as articulated in Table 5. Non-Executive Directors’ Remuneration In 2021, the Non-Executive Director’s remunera- tion for participating in the Board and committees is presented in Table 6. Name Annual fixed fees received (in euro) Committee Role Annual fixed fees received (in euro) Total fees received (in euro) Barbara Knoflach, Senior Independent Director 114,247 Member of the nomination and remuneration committee 7,616 121,863 Gerard Van Kesteren 57,123 Chairperson of the audit committee 15,233 72,356 Pavel Trenka 57,123 Chairperson of the nomination and remuneration committee 11,425 68,548 Susanne Eickermann-Riepe 57,123 Member of the audit committee 11,425 68,548 Total 285,616 45,699 331,315 1 Recognised by the Company for remuneration to Non-Executive Directors as from 29 March 2021. TABLE 6 Name of Executive Director, position 2021 Remon Vos, CEO 500,000 Richard Wilkinson, CFO 1,061,200 Annual remuneration of all full-time employees (excluding CFO and CEO) 30,418,320 Average FTE's of employees (excluding CFO and CEO) 461 Average total annual renumeration 65,983 Pay ratio CEO 7.6 Pay ratio CFO 16.1 TABLE 5 1 Company performance fi nancial metrics will be included in 2022 remuneration report. 236 Compliance For neither the Executive nor Non-Executive Direc- tors, CTP deviated from the remuneration policy. As the 2021 remuneration report is the irst remu- neration report that is subject to an advisory vote since the public listing of the Company, there is no previous advisory vote of the General Meeting to take into account this year. The Company has not granted any loans, advance payments or guarantees to Executive Directors or Non-Executive Directors. Total Remuneration The actual cash remuneration paid and the value of the vested equity remuneration of the Executive Directors by the Company for the year ended 31 December 2021, was as per Table 7. Table 8 highlights the Remuneration of the Executive Directors recognised as expenses by the Company for the year ended 31 December 2021. 1 Recognised by the Company for remuneration to Executive Directors as from 29 March 2021. 2 This includes the expenses recognised in 2021 for the deferred portion. Remuneration Executive Directors Name 1 2 3 4 5 Fixed remuneration Variable remuneration Extra- ordinary items Total Remune- ration Proportion of fixed and variable remuneration Base salary Other benefits STI LTIP Fixed Variable Remon Vos, CEO 380,822 10,971 – – – 391,793 100% 0% Richard Wilkinson, CFO 289,425 19,822 447,150 – – 756,397 41% 59% TABLE 8 TABLE 7 Remuneration Executive Directors 1 Name of executive director, position Base salary Social security contribu- tions STI LTIP Other benefits Total Remon Vos, CEO 380,822 51,556 – — 10,971 443,349 Richard Wilkinson, CFO 289,425 30,884 596,200 85,000 19,822 1,021,331 Total 670,247 82,440 596,200 85,000 30,793 1,464,680 237 7. Board Meetings The Board meets at least once every quarter, prin- cipally at CTP’s headquarters in Amsterdam. Since the IPO, the Board met ive times. All Board mem- bers attended all Board meetings. Topics of dis- cussion were, amongst others, acquisition projects and the development pipeline, leasing activities and inancial performance. When deemed necessary, the Board consulted outside experts for advice and training purposes. The Board adopted the Rules of Procedure in- cluding the Audit Committee charter, Nomination and Remuneration Charter at a meeting held on 29 March 2021 (the Rules of Procedure). The Rules of Procedure are posted on CTP’s website. The acquisitions year-to-date (completed and pipeline) as well as the developments year-to-date (completed and pipeline) are discussed in every meeting, as well as an overview of the development of the logistics market. Management reporting and inancial reporting versus budget are discussed, cash low forecasts and Investor Relations updates are given. At its 11 May 2021 meeting the Board discussed amongst others a KPI update and approved the irst quarter inancial igures. At its 10 August 2021 meeting the Board evaluated the introduc- tion programme that took place in June/July 2021. Financial statements of the irst half year were dis- cussed and approved. The internal audit plan was presented by the internal auditor to the Audit Com- mittee and subsequently to the Board and was ap- proved by the Board. The 2021 interim dividend was determined and pay out was approved. At its 10 August 2021 meeting it was reported that the Code of Conduct was updated in the irst half of 2021 relating to the listing of the Company at Euronext Amsterdam N.V.. The efectiveness of, and compliance with the Code of Conduct was dis- cussed at the Board meeting of 16 December 2021. At its 16 November 2021 meeting a strategy update was given and the Board approved the ESG strategy for the coming ive years. Third quarter i- nancial igures were approved, and several govern- ance issues were discussed. The tax policy of the Company was discussed and approved at its 16 November 2021 meeting. Funding and compliance with recommendations and follow- ing up on comments by the internal and external au- ditor were discussed each quarter. At its 16 December 2021 meeting, the Board dis- cussed the risks associated with the strategy and activities of CTP. The risk appetite and measures to counter these risks being taken were discussed. The risk management framework was approved. Values for CTP have been established and were re-airmed in the ESG policy. The 2022 targets for the Executive Directors and their individual re- muneration were discussed also with the individu- al Executive Directors. The Board discussed their functioning with the internal auditor and KPMG as external auditor. The Non-Executive Directors discussed the draft audit report and the auditor’s opinion with the external auditor. The Board/CFO holds monthly update calls, the purpose of which are to inform the Non-Executive Directors of the business (including acquisitions) and inancial position of CTP Group. In several meetings the proposed public takeover and del- isting ofer on the shares of Deutsche Industrie REIT-AG was discussed, as well as the acquisition of Amsterdam Logistic Centre in the Netherlands. Also, the Investor Relations department updated the Non-Executive Directors on the relations with investors. These update calls were conducted by Mr Wilkinson on behalf of the Executive Directors. The Executive Directors discussed the long- term 2022-2026 value-creation strategy with the Non-Executive Directors at various meetings (16 November and 16 December 2021). The strategy is aimed at permitting CTP to become a major European player and a frontrunner in the approach to ESG in its business. The ESG goals and actions were discussed and approved by the Non-Executive Directors at the 16 November 2021 meeting as well as the appointment of a dedicated ESG oicer re- porting directly to the CEO. Strategy as a main topic was on the agenda of the Board in March and in November 2021. Imple- mentation and risks are discussed amongst the di- rectors on a regular basis, in monthly Board update calls and during regular meetings. Post-2021 Events The Executive Directors submitted the 2021 inan- cial statements, the Letter of the CEO/CFO and the responsibility statement to the Non-Executive Di- rectors with the recommendation to adopt the 2021 inancial statements on 26 April 2022. The inancial statements were audited by KPMG, who issued an unqualiied auditor’s opinion. The Board approved the accounts and signed the 2021 inancial state- ments on 8 March 2022. 238 8. Diversity CTP is committed to an inclusive culture and has a diversity policy in place. In 2021, the Board con- sisted of four male and two female members; the current composition of the Board therefore meets the gender target of having at least 30% female and 30% male board members. CTP continues to strive for an adequate and balanced composition of the Board in its future appointments by considering all relevant selection criteria such as executive and industry experience, skills, and knowledge. In the policy the objectives are formulated as follows: at least 30% of the Board and the Executive Committee jointly consists of men and at least 30% of the Board and the Ex- ecutive Committee jointly consists of women. CTP also aims an increase of diversity in nationality and age as well as creating and maintaining a variation in education and experience. Regarding the number of female and male em- ployees during the year, CTP started out with 46% female and 54% male and ended the year with 45% female and 55% male employees. At the senior management level, the percentages are 29% fe- male and 71% male employees. CTP’s employees come from the Czech Republic, Greece, Germany, Hungary, UK, Romania, Slovakia, Poland, Serbia, Bulgaria, Austria, and the Netherlands. The age diferences vary from 20 to 64. Average age across CTP Group: 39. Average age of senior management (top30): 45. AGE BRACKETS (%) 20 – 39 13 30 – 39 40 40 – 49 32 50 – 59 13 60 and older 2 As of 1 January 2022, companies listed at Euronext Amsterdam N.V. must comply with quotas for su- pervisory boards and formulate targets to achieve gender balanced boards and senior management. A company’s gender balance targets must be report- ed to the Dutch Social and Economic Council (SER) annually and will be included in the management re- port for transparency purposes. As CTP has a one- tier board, this means that at least one-third of the directors must be women and at least one-third must be men. CTP already meets this target and will continue to report on this in its annual reports over the inancial years to come. 9. Compliance with the Dutch Corporate Governance Code At the beginning of this section, CTP addresses its overall corporate governance structure. Below, the Company states to what extent it complies with the provisions of the Code. The Board, which is responsible for the corporate governance structure of CTP, is of the opinion that the principles and best practice provisions of the Code are applied. Because CTP has been operational as a listed company since March 2021, some of the best practice provisions are not yet complied with. Compliance with some of the provisions only makes sense after the lapse of a certain period of time (the assessment of the functioning of the Board and its members), whereas other provisions are in the process of being implemented (training and educa- tion, implementation of a monitoring system for the management of risks). The Board remains commit- ted to and continues to working on compliance with more provisions than it complies with today, taking into account its speciic shareholding structure. Deviations from the best practice provisions are explained hereinafter. The headings refer to the Code; the explanation is related to the CTP speciic situation. % 239 Best-practice Provision 1.2.2 and 1.2.3 - Implementation of Risk Assessment and Monitoring of Efectiveness In the fourth quarter of 2021 an identiication and analysis of the risks associated with CTP Group strategy took place, as well as an assessment of the the risk appetite. Measures are being put in place to counter the risks being taken. Steps are being taken to design and implement an adequate internal risk management and control system and to integrate these systems into the work processes. Explaining this system to those whose work they are relevant to will take place in 2022. Monitoring of the operations of the systems and systemic assessment of their design and efec- tiveness will take place in 2022, whereby attention will be given to observed weaknesses, instances of misconduct and irregularities, indications from whistle-blowers, lessons learned and indings from the internal and external audit functions. Best-practice Provision 1.4.1 - Accountability to the Supervisory Board Efectiveness of the operation of the internal risk management and control systems referred to in best practice provisions 1.2.1 to 1.2.3 inclusive shall be discussed by the Executive Directors with the Audit Committee and accounted for by the Execu- tive Directors with the Non Executive Directors in the irst half of 2022. Best-practice Provision 1.4.2 - Accountability in the Management Report An account of the execution of the risk assessment and the operation of the internal risk management and control systems during 2021 will be reported on during 2022, together with observations of major failings in the internal risk management and control systems and CTP’s sensitivity to material changes in external factors. Best-practice Provision 1.5.3 - Audit Committee Report The Audit Committee was not able to report to the Board on (i) the methods used to assess the ef- fectiveness of the internal risk management and in control systems, (ii) material considerations re- garding inancial reporting. These will be reported on as of 2022. Best-practice Provision 2.1.3 and 3.1.3 - Executive Committee and its Remuneration After having been operational as a listed company for some nine months CTP acknowledges that the establishment of an Executive Committee—which was done immediately prior to the IPO in March 2021—is not appropriate for CTP at its current stage. The Board will have a discussion on the posi- tioning of the Executive Committee within CTP also considering leadership styles and qualities in the irst half of 2022. Best-practice Provision 2.2.1 - Appointment and Re-appointment Periods - Management Board Members This provision prescribes that a managing director is appointed for a maximum period of four years. The CEO has been appointed as Executive Director for an indeinite period and may be unlimitedly re-appoint- ed considering his desire to continue an active role in the Board as long as possible in order to safeguard CTP’s long-term value creation strategy. Best-practice Provision 2.2.2 - Appointment and Re-appointment Periods - Supervisory Board Members Non-Executive Directors have been appointed for three years, which is formally not in conform- ity with the four years stipulated by the Code. The Board feels it is important to relate the period for re-appointment to international standards and to be able to get new views and ideas on a more regular basis. Best-practice Provision 2.2.4 - Succession The Non-Executive Directors will in the irst half of 2022 focus on a plan for succession of Executive Directors and Non-Executive Directors. CTP deviates from this provision to the extent that the Non-Executive Board members have drawn up a re- tirement schedule in which all four members retire simultaneously. Best-practice Provision 2.2.5 - Duties of the Selection and Appointment Committee The Nomination and Remuneration Committee will in the irst half of 2022 supervise the selection criteria and appointment procedures for senior management; will focus on drawing up a plan for the succession of Executive Directors and Non- Executive Directors; assess the functioning of the Executive Directors and Non-Executive Directors and report on the results to the Non-Executive Directors, and assess the size and composition of the Board and review the composition proile of the Non- Executive Directors. Best-practice Provision 2.2.6, 2.2.7 and 2.2.8 - Evaluation by the Ssupervisory Board, Evaluation of the Management Board, Evaluation Accounta- bility In view of the recent appointment of its directors in March 2021, the Board did not evaluate its own functioning, that of its committees, nor of its indi- vidual members in 2021. The Board is of the opinion that a suiciently long period of time should lapse to be able to assess the performance of the various bodies. Evaluation will take place in the irst half of 2022. Best-practice Provision 2.5.1 - Management Board’s Responsibility for Culture Values for CTP have been established and were re-airmed in the ESG policy and the Code of Con- duct. CTP's strategy and business model, the envi- ronment in which CTP Group operates and adjust- ments to its strategy have been discussed several times in 2021 and 2022 and will be inalised in the irst quarter of 2022. 240 Best-practice Provision 3.1.3 - Remuneration - Executive Committee After having been operational as a listed company for some nine months CTP acknowledges that the establishment of an Executive Committee—which was done prior to the IPO in March 2021—is not appropriate for CTP at its current stage. Relating to this provision, CTP deviates in the sense that no remuneration discussions have been held. Best-practice Provision 4.2.3 - Meetings and Presentations CTP deviates from this provision to the extent that analyst meetings, analyst presentations, presenta- tions to institutional and other investors and press conferences are not announced in advance on our website and by means of press releases. All press releases and inancial reports, once published, are uploaded to our website and important corporate events are published in advance. Best-practice Provision 4.3.3 - Cancelling the Binding Nature of a Nomination or Dismissal The general meeting of a company not having the large company regime (structuurregime) may pass a resolution to nominate or dismiss a member of its managing board or of its supervisory board by an absolute majority of the votes cast. It may be pro- vided that this majority should represent a given proportion of the issued capital, the proportion of which may not exceed one-third. CTP deviates from this provision to the extent that in the Articles and Rules of Procedure it is stated that if a dismissal was not proposed by the Non-Ex- ecutive Directors, the General Meeting can only dismiss a director with a two-third majority of the votes cast, representing more than half of the is- sued share capital. 10. Further Information Pursuant to the Decree on Article 10 of the European Takeover Directive Further to the Decree on Article 10 of the EU Takeover Directive, CTP is required to report on, among other things: the Company’s capital struc- ture; restrictions on voting rights and the transfer of securities; signiicant shareholding in CTP N.V.; the rules governing the appointment and dismissal of directors and amendments to the Articles; the powers of the Executive Directors (in particular the power to issue shares or to repurchase shares); signiicant agreements to which CTP is a party and which are put into efect, changed or dissolved upon a change of control of CTP following a takeover bid; and any agreements between CTP and the Execu- tive Directors or associates providing for compen- sation if their employment agreement ceases be- cause of a takeover bid. The information required by the Decree on Article 10 of the EU takeover directive is included in this corporate governance chapter as well as in the subsequent events as part of the disclosure notes of the consolidated inancial statements. Shares CTP N.V.’s issued share capital consists of 400,392,810 shares with a nominal value of EUR 0.16 each. The shares are listed on Euronext Amsterdam N.V. Each share carries one vote. All shares carry equal rights and are freely transfer- able. Restrictions Related to Shares There are no restrictions related to CTP N.V. shares. Substantial Shareholdings Pursuant to the Financial Supervision Act and the Decree on Disclosure of Major Holdings and Capi- tal Interests in Issuing Institutions (Besluit meld- ing zeggenschap en kapitaalbelang in uitgevende instellingen Wft), the Netherlands Authority for the Financial Markets (AFM) must be notiied on substantial shareholdings (i.e. of 3% or more). On 31 December 2021 CTP Holding B.V. held 83.14% of the shares in CTP N.V. As per 8 March 2022 this percentage was 76.91% following the issuance of shares to support the transaction with Deutsche Industrie REIT-AG. Share Plans CTP N.V. has a long-term incentive plan and a de- ferred incentive plan, for Executive Directors and key employees of the Group. Voting Limitations There are no voting limitations on CTP N.V.’s shares. Agreements with Shareholders that can Limit the Transfer of Shares or Voting Rights There are no agreements with shareholders that can limit the transfer of shares or voting rights. Appointment and Dismissal of Directors, Amendments to the Articles The provisions regarding the appointment and dis- missal of directors are available on CTP’s website. The AGM may resolve to amend the Articles with an absolute majority of the votes cast, further to a proposal of the Board approved by a majority of the Non-Executive Directors. A proposal to amend the Articles must be stated in the notice of the AGM. A copy of the proposal, containing the verbatim text of the proposed amendment, must be made availa- ble to all shareholders. Acquisition of Own Shares The AGM may authorise the Board (i) to purchase shares in its own capital, and (ii) to issue and grant rights to subscribe for shares and to limit or ex- clude pre-emptive rights of shareholders in the event of issuing and granting rights to subscribe for shares. Further information can be found in the Articles. 241 Issue of Shares In a shareholders resolution dated 16 March 2021, the AGM authorised the Board, until 29 September 2022, (i) to issue shares or to grant rights to acquire those shares up to a maximum of 10% of the Com- pany’s share capital immediately after settlement of the IPO, (ii) to issue shares up to the amount of shares relected on by shareholders pursuant to an interim scrip dividend regarding the 2021 inancial year, (iii) to exclude pre-emptive rights accruing to shareholders in connection with the aforemen- tioned issuances and (iv) to cause the Company to acquire shares in its share capital at a price up to 110% of its market price on Euronext and up to 10% of the issued capital immediately after settlement of the IPO. Change of Control Arrangements The Company is not a party to material agreements that are in any way subject to or afected by a change of control over the Company following a public ofer as referred to in Section 5:70 of the Financial Su- pervision Act. There are no agreements under which CTP is liable to make any payment to directors on resignation following a public ofer as referred to in section 5:70 of the Financial Supervision Act. Special Rights of Control CTP does not have any potential or existing take- over measures. Agreements with Executive Directors or Employees The severance payments for the Executive Direc- tors have been set at a maximum of 100% of their annual pay. Conlict of Interest and Related Party Transactions Under the Rules of Procedure and the related party transactions policy that was adopted on 29 March 2021 , a conlict of interest must be reported to the SID. The Non-Executive Directors shall determine the consequences of such conlict, if any. In case of a conlict of interest, the director concerned is not allowed to participate in discussions or vote on such matter. If one or more directors have a conlict of interest, the resolution concerned will be voted on if (i) the transaction is entered into on terms that are customary in the market and in compliance with the law of the relevant jurisdiction, and (ii) resolution is taken with the consent of at least the majority of the Non-Executive Directors if the conlict of in- terest is of material signiicance to the Company or the relevant director. Mr Vos serves as CEO and Executive Director, while he is also an (indirect) majority shareholder. Accordingly, Mr Vos may through his (indirect) vote at the AGM support strategies and directions that are in his best interests, which may conlict with the interests of the Company and the other sharehold- ers. Mr Vos uses a company plane for private pur- poses, for which he pays a user fee based on com- mercial benchmarking. The CTP Group is carefully monitoring and as- sessing intercompany relationships that are in de- tail disclosed in section [33] of the notes to the i- nancial statements. Personal Loans Personal loans, guarantees, or the like are not per- mitted to be granted to the Executive Directors nor to the Non-Executive Directors, unless (i) in the normal course of business (i.e. when we would be a inancial institution), (ii) on terms applicable for the personnel as a whole, and (iii) after approval of the Non-Executive Directors. No personal loans were granted by the Company. On 22 September 2021, CTP paid its interim dividend over the irst half of the year of €0.17 per share, available either in scrip or cash. A total of 93% of CTP shareholders opted to receive the divi- dend in shares. In respect of the equity investors, the number of equity analysts that cover the CTP share grew from seven at the time of the Initial Public Ofering on 29 March, to nine by year-end 2021. An active dialogue is held with a further four equity analysts. In early October, a property tour was organised with seven analysts, of which ive are actively covering CTP. The analysts toured various assets of CTP and met with various members of CTP country management in the Czech Republic, Hungary, and Romania. The engagement with equity investors took place throughout the year, both through one-on-one as well as through group calls at investor days, which are regularly organised by CTP’s investment banks. By the end of 2021, nine out of nine analysts held a “BUY” recommendation on CTP’s share, with an average target price of €22.00 per share. Compliance The implementation of the CTP compliance pro- gramme continued in 2021. The CTP Group inal- ised an anti-money laundering (AML) law analysis according to the local regulations in all its jurisdic- tions. The AML programmes for obliged entities (or services) were implemented in each country accord- ingly. The compliance policies, AML programmes and respective trainings of CTP staf are kept in com- pliance with the amendments to law and new leg- islation. CTP currently provides its staf with three core compliance trainings: ethics and compliance; fair competition and dawn raid; and anti-money laundering. CTP Group has implemented a Code of Conduct and monitors its efectiveness and compliance with it, both on the part of the Board and on the part of its employees through the Group AML & compliance oicer. The Executive Directors or the Group AML & compliance oicer shall inform the Non-Execu- tive Directors of any indings and observations re- lated to the efectiveness of, and compliance with, the Code of Conduct. CTP Group has established a conidential anonymous whistleblowing system for employees and third parties to report possible non-compliance with the Code of Conduct. There were no concerns raised in 2021. The Code of Con- duct is published on the Company’s website. As part of preparation for listing on Euronext Amsterdam N.V. CTP Group has updated its Code of Conduct in March 2021. The changes made are relevant only to the Board and Executive Commit- tee members. Minor changes were made in the doc- ument during the year to relect changes in its in- ternal whistleblowing system leading to the Group AML & compliance oicer. Related to CTP’s listing on Euronext Amster- dam N.V., CTP Group has also updated its insider trading policy in March 2021. This policy was irst only relevant to CTP bonds, but now also applies to CTP shares. Being listed also means that CTP Group will be followed more closely by the outside world, in relation to its inancial results as well as the professionalism with which CTP conducts its 242 business. Compliance with (new and existing) rules is a part of that. If the employees suspect miscon- duct or irregularities within CTP Group, the new whistleblower policy explains how to report these. This policy was updated accordingly in July 2021, relecting the changes in internal whistleblowing system. New AML and good-practice processes were es- tablished within the whole CTP Group: including an annual update and assessment of compliance risks; all new associates certify the Code of Conduct as part of the onboarding process; compliance train- ing initiatives are facilitated by compliance; an AML procedure on know-your-customer is set for all real estate counterparties and CTP clients (tenants); prior written approval of the Group AML & compli- ance oicer is required for a third party to become CTP’s supplier or client. The Group AML & compliance oicer ensures compliance with the market abuse regulation. The CTP compliance programme has the full support of top management, which gives the CTP Group a strong tone from the top with a focus on ethically and sustainably conducting its business. CTP’s compliance department and company secretary supervise compliance with applicable laws and regulations in relation to the disclosure of price-sensitive information. Responsibility Statement made by the Executive Directors CTP has identiied the main risks it faces, including inancial reporting risks. These risks can be found in the Risk Management Chapter. In line with the Code and the Financial Supervision Act, CTP has not provided an exhaustive list of all possible risks. Furthermore, developments that are currently un- known to the Executive Directors or considered to be unlikely may change the future risk proile of CTP. The design of CTP’s internal risk manage- ment and control systems has been described in the chapter Risk Management. The objective of these systems is to manage, rather than eliminate, the risk of failure to achieve business objectives and the risk of material errors to the inancial report- ing. Accordingly, these systems can only provide reasonable, but not absolute, assurance against material losses or material errors. CTP’s Executive Directors reviewed and analysed the main strategic, operational, inancial & report- ing, and compliance risks to which CTP is exposed and assessed the design and operating efective- ness of CTP’s risk management and internal con- trol systems in 2021. The Executive Directors ac- knowledge that on-going improvements are needed, and these will be implemented going forward. The outcome of this assessment was shared with the Audit Committee and the Non-Executive Directors and was discussed with our internal and external auditors. As required by best practice provision 1.4.3 of the Code and section 5:25c(2)(c) of the Financial Supervision Act and based on the foregoing and ex- planations contained in the section Main Risks/Risk Management, the Executive Directors conirm that to their knowledge: • The report provides suicient insights into any failings in the efectiveness of the internal risk management and control systems; • These systems provide reasonable assurance that the inancial reporting does not contain any material inaccuracies; • Based on the current situation, it is justiied that the inancial reporting is prepared on a go- ing concern basis; • The report states those material risks and un- certainties that are relevant to the expectation of CTP’s continuity for the period of twelve months after the preparation of the report; • The inancial statements for 2021 provide, in ac- cordance with IFRS as adopted by the EU, a true and fair view of the consolidated assets, liabili- ties, the inancial position and the proit or loss of the Company and its consolidated assets/ companies as at 31 December, 2021, and of the 2021 consolidated income statement and cash lows of CTP N.V.; • The Annual Report presents a true and fair view of the situation as of 31 December 2021, the state of afairs during the 2021 inancial year and the related entities included in its inancial statements, together with a description of the main risks faced by the Group. Remon L. Vos (CEO) Richard J. Wilkinson (CFO) Amsterdam, 8 March 2022. 243 We are Parkmakers 244 245 We are Parkmakers 246 247 We are Parkmakers 248 249 ctFest Čejkovice 2021 250 251 CTP Doksy Race 2021 252 253 CTP Slovakia Teambuilding Autumn 2021 254 255 Sports Day CTPark Bor Autumn 2021 CTP Austria Future project Spring 2021 CTP Hungary #1 on HU Market Breakfast 2021 256 257 Financial Statements CTP N.V. Apollolaan 151 1077 AR Amsterdam The Netherlands FINANCIAL STATEMENTS for the year ended 31 December 2021 258 259 CONTENTS FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS Consolidated statement of profi t and loss and comprehensive income Consolidated statement of fi nancial position Consolidated statement of changes in equity Consolidated statement of cash fl ows Notes to the consolidated fi nancial statements 1. General information 2. Going concern 3. Basis of preparation of consolidated inancial statements 4. Signiicant accounting policies 5. Segment reporting 6. Changes in the Group Structure 7. Gross rental income 8. Revenues from contracts with customers 9. Property operating expenses 10. Other income 11. Employee beneits 12. Other expenses (including administrative expenses) 13. Interest expense 14. Other inancial expenses 15. Other inancial gains/(losses) 16. Income tax expense 17. Investment property 18. Investment property under development 19. Net valuation result on investment property 20. Property, plant and equipment 21. Trade and other receivables 22. Cash and cash equivalents 23. Equity 24. Earnings per share 25. Non-controlling interest 26. Interest-bearing loans and borrowings from inancial institutions 27. Bonds issued 28. Trade and other payables 29. Share based payments 30. Leases 31. Derivative inancial instruments 32. Income taxes 33. Subsidiaries 34. Related parties 35. Financial instruments risk management objectives and policies 36. Contingent liabilities 37. Pledges 38. Subsequent events COMPANY FINANCIAL STATEMENTS Company balance sheet Company income statement Notes to the Company fi nancial statements 1. General information 2. Principles for measurement of assets and liabilities and determination of result 3. Financial reporting period and comparative igures 4. Investments in group companies 5. Shareholders’ equity 6. Bonds issued 7. Financial instruments 8. Of-balance sheet assets and liabilities 9. Trade and other payables 10. Cash and cash equivalents 11. Other income 12. Operational expenses 13. Net inance income/expense 14. Income taxes 15. Related parties 16. Personnel 17. Emoluments of directors 18. Subsequent events 19. Subsidiaries OTHER INFORMATION INDEPENDENT AUDITOR'S REPORT 260 IN EUR THOUSAND NOTE 1.1.2021 - 31.12.2021 1.1.2019 - 31.12.2020 * 1.1.2020 - 31.12.2020 * REVENUES ATTRIBUTABLE EXTERNAL EXPENSES REVENUES ATTRIBUTABLE EXTERNAL EXPENSES REVENUES ATTRIBUTABLE EXTERNAL EXPENSES Rental income 7 334,651 549,921 291,935 Service charge income 7 31,112 48,261 25,882 Property operating expenses 9 -38,910 -77,723 -37,148 Net rental income 326,853 520,459 280,669 Hotel operating revenue 8 8,779 23,064 5,752 Hotel operating expenses 8 -11,334 -17,442 -5,897 Net operating income from hotel operations -2,555 5,622 -145 Income from development activities 8 32,824 53,894 49,411 Expenses from development activities 8 -23,459 -30,911 -26,984 Net income from development activities 9,365 22,983 22,427 Total revenues 407,366 675,140 372,980 Total attributable external expenses -73,703 -126,076 -70,029 333,663 549,064 302,951 Net valuation result on investment property 19 1,100,571 558,937 152,162 Other income 10 10,445 13,104 4,010 Amortization and depreciation 20 -8,447 -20,215 -10,462 Employee benefits 11 -31,883 -40,141 -22,969 Impairment of financial assets -1,078 -694 -685 Other expenses 12 -26,463 -50,270 -33,121 Net other income/expenses -57,426 -98,216 -63,227 Profit/loss before finance costs 1,376,808 1,009,785 391,886 Interest income 1,993 1,535 953 Interest expense 13 -70,883 -125,553 -68,534 Other financial expenses 14 -38,120 -27,445 -11,501 Other financial gains/losses 15 6,892 -67,188 -22,379 Net finance costs -100,118 -218,651 -101,461 Profit/loss before income tax 1,276,690 791,134 290,425 Income tax expense 16 -250,754 -146,449 -37,901 Profit for the period 1,025,936 644,685 252,524 Other comprehensive income Items that will never be reclassified to profit and loss Revaluation of PPE net of tax 7,554 -3,322 -7,347 Items that are or may be reclassified to profit and loss Foreign currency translation differences net of tax -3,742 10,165 8,473 Total other comprehensive income 3,812 6,843 1,126 Total comprehensive income for the year 1,029,748 651,528 253,650 Profit attributable to: Non-controlling interests -- 392 406 Equity holders of the Company 1,025,936 644,293 252,118 Total comprehensive income attributable to: Non-controlling interests -- 392 406 Equity holders of the Company 1,029,748 651,136 253,244 Earnings per share Basic earnings per share 2.68 1.92 0.75 Diluted earnings per share 2.68 1.92 0.75 The consolidated statement of profi t and loss and comprehensive income over the period 1.1.2019-31.12.2020 represent the statutory reporting period of CTP N.V. The consolidated statement of profi t and loss and comprehensive income over the calendar year 2020 are added for information purposes, refer to the basis of preparation in note 3. The notes contained herein are an integral part of these consolidated inancial statements. CONSOLIDATED FINANCIAL STATEMENTS Consolidated statement of profit and loss and comprehensive income Over the period 261 IN EUR THOUSAND NOTE 31 DECEMBER 2021 31 DECEMBER 2020 Assets Investment property 17 7,575,107 5,386,230 Investment property under development 18 774,203 387,347 Property, plant and equipment 20 110,967 98,884 Intangible assets 2,111 2,418 Trade and other receivables 21 100,739 11,796 Derivative financial instruments 30 126 -- Financial investments 445 521 Long-term receivables from related parties 33 47,124 42,046 Deferred tax assets 31 24,052 14,422 Total non-current assets 8,634,874 5,943,664 Trade and other receivables 21 144,082 67,941 Short-term receivables from related parties 33 528 45 Derivative financial instruments 30 46 -- Contract assets 7,039 12,878 Current income tax receivable 31 7,260 2,692 Cash and cash equivalents 22 892,816 419,141 Total current assets 1,051,771 502,697 Total assets 9,686,645 6,446,361 equity Issued capital 23 64,063 53,760 Translation reserve 10,716 14,458 Share premium 23 2,661,979 1,858,460 Retained earnings 1,350,856 324,862 Revaluation reserve 19,216 11,662 Total equity attributable to owners of the Company 4,106,830 2,263,202 Non-controlling interest 25 -- 1,031 Total equity 4,106,830 2,264,233 Liabilities Interest-bearing loans and borrowings from financial institutions 26 1,110,471 2,191,999 Bonds issued 27 3,368,202 1,041,971 Trade and other payables 28 64,591 23,385 Long-term payables to related parties 33 18 34,544 Derivative financial instruments 30 -- 27,196 Deferred tax liabilities 31 746,773 504,779 Total non-current liabilities 5,290,055 3,823,874 Interest-bearing loans and borrowings from financial institutions 26 20,833 160,288 Bonds issued 27 13,490 -- Trade and other payables 28 237,148 169,006 Short-term payables to related parties 33 -- 2,627 Derivative financial instruments 30 -- 6,870 Current income tax payables 31 18,289 19,463 Total current liabilities 289,760 358,254 Total liabilities 5,579,815 4,182,128 Total equity and liabilities 9,686,645 6,446,361 The notes contained herein are an integral part of these consolidated inancial statements. Consolidated statement of financial position 262 1.1.2021 - 31.12.2021 NOTE ISSUED CAPITAL TRANSLATION RESERVE SHARE PREMIUM REVALUATION RESERVE RETAINED EARNINGS TOTAL EQUITY ATTRIBUTABLE TO PARENT NON- CONTROLLING INTEREST TOTAL EQUITY Balance at 1 January 2021 53,760 14,458 1,858,460 11,662 324,862 2,263,202 1,031 2,264,233 Comprehensive income for the period Profit for period -- -- -- -- 1,025,936 1,025,936 -- 1,025,936 Other comprehensive income Revaluation of Property, Plant and equipment 20,31 -- -- -- 7,554 -- 7,554 -- 7,554 Foreign currency translation differences -- -3,742 -- -- -- -3,742 -- -3,742 Comprehensive income for the period -- -3,742 -- 7,554 1,025,936 1,029,748 -- 1,029,748 Other movements Share issuance 23 9,763 -- 809,572 -- -- 819,335 -- 819,335 Dividends 23 540 -- -6,053 -- -- -5,513 -- -5,513 Share based payment 29 -- -- -- -- 85 85 -- 85 Increase of shares without change of control -- -- -- -- -27 -27 -1,031 -1,058 Total other movements 10,303 -- 803,519 -- 58 813,880 -1,031 812,849 Balance at 31 December 2021 64,063 10,716 2,661,979 19,216 1,350,856 4,106,830 -- 4,106,830 1.1.2019 - 31.12.2020 NOTE ISSUED CAPITAL TRANSLATION RESERVE SHARE PREMIUM REVALUATION RESERVE RETAINED EARNINGS TOTAL EQUITY ATTRIBUTABLE TO PARENT NON- CONTROLLING INTEREST TOTAL EQUITY Balance at 1 January 2019 -- 4,293 138,921 14,984 801,874 960,072 639 960,711 Comprehensive income for the period Profit for period -- -- -- -- 644,293 644,293 392 644,685 Other comprehensive income Revaluation of Property, Plant and equipment 20,31 -- -- -- -3,322 -- -3,322 -- -3,322 Foreign currency translation differences -- 10,165 -- -- -- 10,165 -- 10,165 Comprehensive income for the period -- 10,165 -- -3,322 644,293 651,136 392 651,528 Other movements Contribution of share premium 23 -- -- 828,682 -- -- 828,682 -- 828,682 Distribution of share premium 23 -- -- -170,838 -- -- -170,838 -- -170,838 Share issuance and formation of CTP N.V. 3c 53,760 -- 1,061,695 -- -1,121,305 -5,850 -- -5,850 Total other movements 53,760 -- 1,719,539 -- -1,121,305 651,994 -- 651,994 Balance at 31 December 2020 53,760 14,458 1,858,460 11,662 324,862 2,263,202 1,031 2,264,233 The consolidated statement of changes in equity over the period 1.1.2019-31.12.2020 represent the statutory reporting period of CTP N.V. The consolidated statement of changes in equity over the calendar year 2020 are added for information purposes, refer to the basis of preparation in note 3. 1.1.2020 - 31.12.2020 * NOTE ISSUED CAPITAL TRANSLATION RESERVE SHARE PREMIUM REVALUATION RESERVE RETAINED EARNINGS TOTAL EQUITY ATTRIBUTABLE TO PARENT NON- CONTROLLING INTEREST TOTAL EQUITY Balance at 1 January 2020 -- 5,985 828,682 19,009 1,188,547 2,042,223 625 2,042,848 Comprehensive income for the period Profit for period -- -- -- -- 252,118 252,118 406 252,524 Other comprehensive income Revaluation of Property, Plant and equipment 20,31 -- -- -- -7,347 -- -7,347 -- -7,347 Foreign currency translation differences -- 8,473 -- -- -- 8,473 -- 8,473 Comprehensive income for the period -- 8,473 -- -7,347 252,118 253,244 406 253,650 Other movements Distribution of share premium 23 -- -- -31,917 -- -- -31,917 -- -31,917 Share issuance and formation of CTP N.V. 3c 53,760 -- 1,061,695 -- -1,115,803 -348 -- -348 Total other movements 53,760 -- 1,029,778 -- -1,115,803 -32,265 -- -32,265 Balance at 31 December 2020 53,760 14,458 1,858,460 11,662 324,862 2,263,202 1,031 2,264,233 The consolidated statement of changes in equity over the period 1.1.2019-31.12.2020 represent the statutory reporting period of CTP N.V. The consolidated statement of changes in equity over the calendar year 2020 are added for information purposes, refer to the basis of preparation in note 3. The notes contained herein are an integral part of these consolidated inancial statements. Consolidated statement of changes in equity Over the period 263 IN EUR THOUSAND NOTE 1.1.2021 - 31.12.2021 1.1.2019 - 31.12.2020 * 1.1.2020-31.12.2020 * Operating activities Net result for the year 1,025,936 644,293 252,118 Adjustments for: Net valuation result on investment property 19 -1,100,571 -558,937 -152,162 Amortisation and depreciation 10,121 20,215 10,462 Net interest expense 68,890 121,412 67,581 Change in fair value of derivatives and associated closeout costs 15 -12,127 72,621 40,272 Other changes 1,262 -18,709 -14,680 Change in foreign currency rates 20,055 5,816 -3,775 Income from non-controlling interest -- 392 406 Income tax expense 16 250,754 146,449 37,901 264,320 433,552 238,123 Decrease/(increase) in trade and other receivables -50,603 -22,535 31,332 Increase/(decrease) in trade and other payables 3,349 35,035 -13,439 -47,254 12,500 17,893 Interest paid 26 -45,165 -116,855 -62,272 Interest received 223 953 371 Income taxes paid -33,066 -20,762 -8,685 Cash flows from operating activities 139,058 309,388 185,430 Investment activities Acquisition of investment property -174,392 -112,804 -64,105 Acquisition of PPE and intangible assets 20 -13,969 -5,460 -2,232 Advances paid for IP and PPE -96,526 -- -- Proceeds from disposal of investment property and PPE 4,312 21,060 8,950 Acquisition of subsidiaries, net of cash acquired 6 -552,568 -47,494 -27,116 Loans and borrowings provided to related parties -15,000 -27,080 -27,080 Proceeds from loans and borrowings provided to related parties 3,512 629 629 Proceeds from disposal of subsidiaries, net of cash disposed 6 8,950 1,060 1,060 Development of investment property -599,566 -681,282 -359,227 Cash flows used in investing activities -1,435,247 -851,371 -469,121 Financing activities Bonds issued 26 2,479,615 1,041,395 1,041,395 Repayment of interest-bearing loans and borrowings and bonds 26 -2,119,968 -2,597,614 -1,088,814 Proceeds from interest-bearing loans and borrowings 26 677,468 2,785,739 743,657 Loans and borrowings received from related companies 26 -- -245,625 -20,625 Repayment of loans received from related companies 26 -35,968 -- -- Transaction costs related to issuance of new shares 26 -45,344 -53,354 -21,649 Proceeds from the issue of share capital 26 854,238 200 200 Repayment of share premium 26 -34,904 -12,500 -12,500 Paid dividends 26 -5,513 -- -- Payment of lease liabilities 26 -974 -1,041 -541 Cash flows from/used in financing activities 1,768,650 917,200 641,123 Cash and cash equivalents at 1 January 419,141 46,284 63,821 Net increase in cash and cash equivalents 472,461 375,217 357,432 Cash and cash equivalents reclassified to asset held for sale -- -- -- Change in foreign currency rates 1,214 -2,360 -2,112 Cash and cash equivalents at 31 December 22 892,816 419,141 419,141 * The consolidated statement of cash fl ows over the period 1.1.2019-31.12.2020 represent the statutory reporting period of CTP N.V. The consolidated state- ment of cash fl ows over the calendar year 2020 is added for information purposes, refer to the basis of preparation in note 3 The notes contained herein are an integral part of these consolidated inancial statements. Consolidated statement of cash flows Over the period 264 Notes to the consolidated financial statements 1. General information Company: CTP N.V. (the “Company”) is a Dutch based real estate developer developing and leasing a portfolio of properties in Central and Eastern Europe (CEE). Reporting entity: These consolidated inancial statements comprise the Company and its subsidiaries (collectively referred to as the “Group” or “CTP Group” or “CTP” and individually “Group companies”). Refer to Note 32 and Note 6 of these consolidated inancial statements for a list of signiicant Group entities and changes to the Group in 2021 and in period 2019/2020. Principal activities: CTP is a full-service commercial real estate developer managing and delivering custom-built, high-tech business parks mainly throughout Central and Eastern Europe, the Netherlands, Austria and Germany. Registered oice: The visiting address of CTP N.V. is located at Apollolaan 151, 1077 AR Amsterdam, the Netherlands. Corporate seat of the Company is located in Utrecht, the Netherlands. RSIN number: 860528091 Registration number: 76158233 CTP N.V. was incorporated on 21 October 2019, for an unlimited period of time. In March 2021, as the Company has emitted its shares on Amsterdam stock exchange, the Company has changed its legal form from B.V. to N.V. Owner of the Company as at 31 December 2021: SHAREHOLDERS NUMBER OF SHARES SHARE IN VOTING RIGHTS SHARE IN VOTING RIGHTS CTP HOLDING B.V. 332,813,402 83.12% 83.12% INDIVIDUAL SHAREHOLDERS 67,579,408 16.88% 16.88% 400,392,810 100.00% 100.00% Ultimate parent of the Group is the company Multivest B.V. (the Netherlands). Board of Directors as at 31 December 2021: EXECUTIVE DIRECTORS: Remon L. Vos Richard J. Wilkinson NON-EXECUTIVE DIRECTORS: Susanne Eickermann-Riepe Barbara Knoflach Gerard van Kesteren Pavel Trenka 265 2. Going concern CTP’s properties are let to a wide range of tenants and there is no signiicant focus on any one particular group or company. CTP closely monitors the inancial stability of its tenants and believes that its rental projections for the coming 12 months are realistic in the light of the current economic climate. CTP expects to settle its current liabilities as at 31 December 2021 during the year 2022 as follows: IN EUR THOUSAND 2021 Current liabilities as at 31 December 2021 289,760 Current assets excluding cash and cash equivalents as at 31 December 2021 158,955 Funds required in 2021 to cover the short-term liquidity need 130,805 Available cash as at 31 December 2021 892,816 Expected net rental income available for repayment current Interest-bearing loans and borrowings to be received in 2022 437,042 Expected drawdowns of loans and borrowings from financial institutions under existing loan facilities 407,988 Revolving facility ) -- Expected funds to be received in 2022 to cover the short-term liquidity need 1,737,846 ) The Company has a EUR 400 million revolving credit facility (2020: EUR 100 million) for a three-year period. The Company does not expect a drawdown either partial or for the full amount under this facility in 2022. Based on the cash-low projections prepared for the year 2022, other actual development up to the date of approval of these consolidated inancial statements and results of management assessment as described above, the directors and management of the Group has not identiied signiicant going concern risks and therefore believe that it is appropriate to prepare the consolidated inancial statements on a going concern basis as at 31December 2021 and no material uncertainty exists with respect to going concern of the Group as at 31December 2021. 266 3. Basis of preparation of consolidated financial statements a) Statement of compliance These consolidated inancial statements have been prepared in accordance with International Financial Reporting Standards as adopted by the European Union (EU-IFRSs) and with Section 2:362(9) of the Dutch Civil Code. The consolidated inancial statements were authorised for issue by the Board of Directors on 8March 2022. b) Financial reporting and comparative period Current inancial year CTP N.V. has a 12 months inancial year which ended at the balance sheet date of 31 December 2021. Prior inancial year CTP N.V. was founded on 21 October 2019 and had, according to the articles of association, a inancial year which ended at the balance sheet date of 31 December 2020. As CTP N.V. acquired CTP Property B.V. and CTP Invest, spol. s r.o. under common control the Company decided to represent its comparatives and adjust its current reporting period before the date of the transaction as if the combination had occurred before the start of the earliest period presented. Therefore, the prior inancial year (2019- 2020) of CTP N.V. covers the period 1 January 2019 up to and included 31 December 2020. As the comparative igures over 2019-2020 cover 24 months, these are not comparable with current inancial year 2021 which covers 12 months. For information purposes a breakdown of the extended inancial year (2019-2020) into the 12 month period for the year 2020 was prepared. c) Common control transactions CTP N.V. entered into several transactions under common control, which is a business combination in which all of the combining entities or businesses are ultimately controlled by the same party or parties both before and after the business combination, and that control is not transitory. The assets and liabilities acquired under common control are recognized at the carrying amounts recognized previously in the inancial statements of the entities acquired. Any diference between consideration paid and the net book value of assets and liabilities acquired is recognized directly in the equity. Common control transactions in current inancial year (2021) There were no signiicant common control transactions in current inancial year. Common control transactions in prior inancial year (2019-2020) CTP started 2020 by completing its consolidation plan to include all activities undertaken by CTP Invest, spol. s r.o. and CTP Property B.V., which process had commenced in 2019. The plan was needed to streamline the organizational structure (following the ownership consolidation per June 2019) enabling CTP to present itself to the international capital markets as one consolidated Group with both the real estate investment and real estate development activities. To enable this the following signiicant transactions took place: - Acquisition of CTP Property B.V. and its subsidiaries on 31 October 2019, for EUR 951,803 thousand. Acquisition price was settled by equity via share premium. - Acquisition of CTP Invest, spol. s r.o. and its subsidiaries on 27 January 2020, for EUR 920,485 thousand. Acquisition price was settled by equity via share premium. Both entities represent a legal Group, had already inancial statements on the basis of EU-IFRS and are aligned with the accounting policies of CTP N.V. and were under the common control of their ultimate shareholder Multivest B.V. which is also the ultimate shareholder of CTP N.V. for all period presented. As mentioned in the previous paragraph CTP N.V. decided to represent its comparatives as if the transaction had occurred before the start of the earliest period presented. The impact on equity as per 1January 2018 is that all reserves such as the translation reserve, revaluation reserve and retained earnings (including existing share capital and share premium) have been included from both entities at that moment. Intercompany transactions between both entities have been eliminated. In the movement schedule of equity the line “share issuance and formation of CTP N.V.” relects the movements to arrive at the share capital and share premium of CTP N.V. In the movement schedule of equity the line “share issuance and formation of CTP N.V.” relects the issuance of the new shares of CTP N.V. and movement between retained earnings and share premium to relect the acquisition of CTP Property and CTP Invest through share premium as indicated above. Further CTP N.V. acquired Multiin B.V. on 17December 2019 (impact on equity of EUR 2,963 thousand) and NCI shares under common control on 31 December 2019 (impact on equity EUR 3,087 thousand). All transactions have been settled through equity, no cash has been paid. d) CTP has considered the following new and amended standards in 2021 For the preparation of the consolidated inancial statements of the Group, the following new or amended standards and interpretations were considered for the irst time for the inancial year beginning 1 January 2021. The nature and the efect of these changes are disclosed below. • Interest rate Benchmark Reform – Phase 2 (Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16)- the amendments address issues that might afect inancial reporting as a result of the reform of an interest rate benchmark, including the efects of changes to contractual cash lows or hedging relationships arising from the replacement of an interest rate benchmark with an alternative benchmark rate. The amendments provide practical relief from certain requirements in IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16. Since the Group had no transactions for which the benchmark rate had been replaced with an alternative benchmark rate as at 31 December 2021, there is no impact on the Group’s inancial statements opening equity balances as a result of retrospective application. e) Standards issued but not yet efective A number of new standards are efective for annual periods beginning after 1 January 2021 and earlier application is permitted; however, the Group has not early adopted the new or amended standards in preparing the consolidated inancial statements of the Group. The following amended standards and interpretations are not expected to have signiicant impact on the Group’s consolidated inancial statements: • Annual Improvements to IFRS Standards 2018–2020 – Amendments to IFRS 1, IFRS 9, IFRS 16 and IAS 41 • Amendments to References to Conceptual Framework in IFRS Standards - the amendment relect the changes in Framework’s principles, which have implications for how and when assets and liabilities are recognised and derecognised in the Group’s consolidated inancial statements. • Classiication of Liabilities as Current and Non-current (Amendment to IAS 1) – to clarify the requirements on determining if a liability is current or non-current, the International Accounting Standards Board (the Board) has amended IAS 1. • Property, Plant and Equipment: Proceeds before Intended use (Amendment to IAS 16) – under the amendments, proceeds from selling items before the related item of PPE is available for use should be recognised in proit or loss, together with the costs of producing those items. IAS 2 Inventories should be applied in identifying and measuring these production costs. 267 • Onerous contracts – Cost of Fulilling a Contract (Amendments to IAS 37) - the amendments specify which costs an entity includes in determining the cost of fulilling a contract for the purpose of assessing whether the contract is onerous. The amendments apply for annual reporting periods beginning on or after 1 January 2022 to contracts existing at the date when the amendments are irst applied. • Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2) – the Board has issued amendments on the application of materiality to disclosure of accounting policies. • Deinition of Accounting Estimates (Amendments to IAS 8) – the amendment clarify how companies should distinguish changes in accounting policies from changes in accounting estimates, with a primary focus on the deinition of and clariications on accounting estimates. • Deferred Tax related to Assets and Liabilities arising from single transaction (Amendment to IAS 12) – the amendment clarify how companies should account for deferred tax on certain transactions – e.g. leases and decommissioning provisions. • COVID-19- Related rent concessions beyond 30 June 2021 (Amendment to IFRS 16) – the amendment to IFRS 16 Leases was issued to allow lessees not to account for rent concessions as lease modiications if they are a direct consequence of COVID-19 and meet certain conditions • Reference to the Conceptual Framework (Amendments to IFRS3) • IFRS 17 Insurance Contracts and amendments to IFRS 17 Insurance Contracts - IFRS 17 introduces a new measurement model for insurance contracts. f) Functional and presentation currency The presentation currency of the Group is Euro (“EUR”), because the owners base their economic decisions on information expressed in this currency. All inancial information presented in EUR has been rounded to the nearest thousand. The Group performed analysis on entity level based on primary, secondary and other indicators and concluded on following: - Group’s entities with primary objective to ensure investing and development activities in speciic countries, so called development companies, have the functional currency its local currencies as it is local currency: o whose competitive forces and regulations mainly determine the sales prices of its goods and services rendered to other companies operated in the same country, o that primarily inluences labour, material and other costs of providing goods and services, o in which receipts from operating activities are usually retained. - other Group’s entities with objective of stable and sustainable operation of industrial parks or dormant entities with potential of future development of industrial parks have the functional currency EUR as o sales prices of services rendered to the tenants are in EUR, o funds from inancing activities are generated in EUR and o activities of these companies are conducted as an extension of the reporting entity rather than with a signiicant degree of autonomy. In the CTP Group there are the following development companies: - CTP Invest, spol. s r.o. with functional currency Czech koruna (CZK), - CTP Invest Poland Sp. z o.o. with functional currency Polish zloty (PLN), - CTP Invest d.o.o. Beograd-Novi Beograd with functional currency Serbian dinar (RSD), - CTP Management Hungary Kft. with functional currency Hungarian forint (HUF), - CTP Invest Bucharest SRL with functional currency Romanian leu (RON), - CTP Invest SK, spol. s r.o. with functional currency EURO (EUR) - CTP Invest EOOD with functional currency Bulgarian lev (BGN), - CTP Invest Immobilien GmbH with functional currency EURO (EUR). All other companies in the Group have EUR as functional currency. g) Basis of measurement The consolidated inancial statements of the Group are prepared on a historical cost basis, except for the following items, which are measured on an alternative basis on each reporting date: — derivative inancial instruments are measured at fair value; — investment property is measured at fair value; — solar plants within property, plant and equipment are measured at fair value; and — hotels within property, plant and equipment are measured at fair value. h) Use of estimates and judgments The preparation of the consolidated inancial statements requires the management to make judgments, estimates and assumptions that afect the application of policies and the reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that the management believes to be reasonable under the circumstances, the results of which form the basis of judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. The actual results may difer from these estimates. The estimates and assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised, if the revision afects only that period, or in the period of the revision and future periods, if the revision afects both current and future periods. In particular, information about signiicant areas of estimates uncertainty and critical judgments in applying accounting policies that have the most signiicant efect on the amount recognized in the inancial statements are described in Note: - 4b) Investment property - 4c) Investment property under development - 4d) Property, plant and equipment - 4i) Impairment i) Measurement of fair values A number of the Groups’ accounting policies and disclosures require the measurement of fair values, for both inancial and non-inancial assets and liabilities. When measuring the fair value of an asset or a liability, the Group uses market observable data as far as possible. Fair values are categorized into diferent levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows: • Level 1: quoted prices (unadjusted) in active markets for identical assets and liabilities. • Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). • Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs). If the inputs used to measure the fair value of an asset or a liability might be categorized in diferent levels of the fair value hierarchy, then the fair value measurement is categorized in its entirety in the same level of the fair value hierarchy as the lowest level input that is signiicant to the entire measurement. The Group recognizes transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred. 268 4. Significant accounting policies The Group has consistently applied the following accounting policies to all periods presented in these consolidated inancial statements. a) Basis of consolidation a) Subsidiaries Subsidiaries are entities controlled by the Group. Control exists when the Group has the power, directly or indirectly, to govern the inancial and operating policies of an entity so as to obtain beneits from its activities. In assessing control, the potential voting rights that are exercisable or convertible, are taken into account. The inancial statements of subsidiaries are included in these consolidated inancial statements from the date that control commences until the date that control ceases. The accounting policies of subsidiaries have been changed when necessary to align them with the policies adopted by the Group. The Group acquires subsidiaries that own real estate. At the time of acquisition, the Group considers whether each acquisition represents the acquisition of a business or the acquisition of an asset. The Group accounts for an acquisition as a business combination under IFRS 3, when an integrated set of activities is acquired in addition to the property. More speciically, consideration is made to the extent to which signiicant processes are acquired and, in particular, the extent of services provided by the subsidiary. When the acquisition of subsidiaries does not represent a business, it is accounted for as an acquisition of a group of assets and liabilities. The cost of the acquisition is allocated to the assets and liabilities acquired based upon their relative fair values, and no goodwill and deferred tax is recognised. b) Acquisition of business from companies under common control A business combination involving entities or businesses under common control is a business combination in which all of the combining entities or businesses are ultimately controlled by the same party or parties both before and after the business combination, and that control is not transitory. The assets and liabilities acquired under common control are recognized at the carrying amounts recognized previously in the inancial statements of the entities acquired. Any diference between consideration paid and the net book value of assets and liabilities acquired is recognized directly in the equity. In the absence of more speciic guidance, the Group consistently applied the book value method to account for all common control transactions. In this respect, the assets and liabilities of the entities, as well as their income and expenses, for the period in which the common control transaction has occurred and for the comparative period disclosed are included in the inancial statements of the Group as if the common control transaction took place at the beginning of the comparative period. c) Business combinations Business combinations, excluding those commenced between parties under common control, are accounted for by applying the acquisition method as at the acquisition date, which is the date on which control is transferred to the Group. The Group measures goodwill at the acquisition date as: • the fair value of the consideration transferred; plus • the recognised amount of any non- controlling interests in the acquiree; plus • if the business combination is achieved in stages, the fair value of the pre-existing equity interest in the acquiree; less • the net amount of the identiiable assets acquired and liabilities stated at fair value. Goodwill is tested for impairment if events or changes in circumstances indicate that it might be impaired, but at least annually, and is carried at cost less accumulated impairment losses. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold. When the excess is negative (bargain purchase), it is recognized immediately in the consolidated statement of comprehensive income. The Group applies recognition exemption of Deferred tax, that arises from the initial recognition of an asset or liability in a transaction that is not a business combination. Deferred tax from subsequent asset revaluation is recognised in the consolidated inancial statements. d) Non-controlling interest Non-controlling interests are measured initially at their proportionate share of the acquiree’s identiiable net assets at the date of acquisition. Changes in the Group’s interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions. e) Loss of control When the Group loses control over a subsidiary, it derecognises the assets and liabilities of the subsidiary, any non-controlling interests and the other components of equity related to the subsidiary. Any resulting gain or loss is recognised in proit or loss. If the Group retains any interest in the former subsidiary, then such interest is measured at fair value at the date that control is lost. f) Changes in the ownership interests in existing subsidiaries Changes in the Company's ownership interests in subsidiaries that do not result in the Company losing control over the subsidiaries are accounted for as equity transactions. The carrying amounts of the Company's interests and the non-controlling interests are adjusted to relect the changes in their relative interests in the subsidiaries g) Asset acquisition Asset acquisitions is an acquisition of an asset or a group of assets (and liabilities) that does not constitute a business. The Group identify and recognise the individual identiiable assets acquired and liabilities assumed and allocate the cost of the group to the individual identiiable assets and liabilities based on their relative fair values at the date of the acquisition. h) Transactions eliminated on consolidation level Intra-group balances and any gains and losses or income and expenses arising from intra-group transactions are eliminated in preparing the consolidated inancial statements of the Group. b) Investment property Investment properties are those which are held to earn rental income, for capital appreciation, or for both. Investment property is initially measured at cost and subsequently at fair value with any change therein recognised in proit or loss. Any gain or loss on disposal of an investment property (calculated as the diference between the net proceeds from disposal and the carrying amount of the item) is recognized in proit or loss. An external, independent valuer having appropriately recognized professional qualiications and recent experience in the location and category of property being valued, values the portfolio of investment property at least annually. The independent valuation report was obtained as at 31 December 2021 and was incorporated into the IFRS consolidated inancial statements of the Group. The fair value is deined as the price that would be received to sell an asset in an orderly transaction between market participants at the measurement date. The fair value measurement for all of the investment properties has been categorized as a Level 3 fair value. c) Investment property under development Property that is being constructed or developed for future use as investment property, is classiied as investment property under development. Investment property under development is initially measured at cost and subsequently at fair value with any change therein recognised in proit or loss. When construction or development is completed, property is reclassiied and subsequently accounted for as investment property. The independent valuation report was obtained as at 31 December 2021. Value of investment property under development was determined by external, independent property valuers, having appropriate recognized professional qualiications and recent experience in the location and category of the 269 property being valued. The fair value is deined as the price that would be received to sell an asset in an orderly transaction between market participants at the measurement date. Borrowing cost are not capitalized to the value of Investment property under development, as almost all development projects are inished within 12 months. The fair value measurement for all of the investment properties under development has been categorized as a Level 3 fair value. d) Property, plant and equipment (i) Revaluation model Solar plants which are completed and generating income and hotels which represents minor part of property portfolio of the Group, are classiied under Property, plant and equipment at revaluated amounts, being the fair value at the reporting date. Any gain or loss arising on re-measurement of the solar plants and hotels is treated as a revaluation with any gain recorded as part of other comprehensive income, except to the extent that it reverses a previous impairment on the same property, in which case it is recorded in proit or loss. A loss is an expense in proit or loss to the extent at which it is higher than previously recognized revaluation surplus. An external, independent valuer having appropriately recognized professional qualiications and recent experience in the location and category of the solar plant and hotel being valued, values the portfolio of solar plants and hotels at least annually. Depreciation of the solar plants is recognized into proit or loss on a straight-line basis over the estimated useful life of 20 years. Depreciation of the hotels is recognized into proit or loss on a straight-line basis over the estimated useful life of 40 years. (ii) Cost model All other buildings, property, plant and equipment are measured at cost less accumulated depreciation and impairment losses (Note 4i). 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, any other costs directly attributable to bringing the assets to a working condition for their intended use, the initial estimate, where relevant, of the costs of dismantling and removing building items and restoring the building site at which they are located and an appropriate proportion of production overheads. Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic beneits associated with the item will low to the Company and the cost of the item can be measured reliably. All other repairs and maintenance expenses are charged to the income statement during the inancial period in which they are incurred. Where parts of an item of property, plant and equipment have diferent useful lives, they are accounted for as separate items of property, plant and equipment. The Group recognize in the carrying amount of an item of property, plant and equipment, the cost of replacing part of such an item when that cost is incurred and it is probable that the future economic beneits embodied with the item will low to the Group and the cost of the item can be measured reliably. The carrying amount of the replace item is derecognised. All other costs are recognized in the statement of comprehensive income as incurred. Depreciation is recognized into proit or loss on a straight-line basis over the estimated useful life of the equipment. The estimated useful life for equipment varies between 3-8 years and for property and plant between 10-20 years. (iii) Reclassiication to Investment property When the use of a property changes from owner- occupied to investment property, the property is remeasured to fair value and reclassiied accordingly. Any gain arising on this remeasurement is recognized in proit or loss to the extent that it reverses a previous impairment loss on the speciic property, with any remaining gain recognized in OCI and presented in the revaluation reserve. A loss is an expense in proit or loss to the extend at which it is higher than previously recognized revaluation surplus. e) Assets held for sale Non-current assets, or disposal groups comprising assets and liabilities, are classiied as held-for sale if it is highly probable that they will be recovered primarily through sale rather than through continuing use. Such assets, or disposal groups, are generally measured at the lower of their carrying amount and fair value less costs to sell. Any impairment loss on a disposal group is allocated irst to goodwill, and then to the remaining assets and liabilities on a pro rata basis, except that no loss is allocated to inventories, inancial assets, deferred tax assets, employee beneit assets, investment property, which continue to be measured in accordance with the Group’s other accounting policies. Impairment losses on initial classiication as held-for-sale or held-for distribution and subsequent gains and losses on remeasurement are recognised in proit or loss. Once classiied as held-for-sale, intangible assets and property, plant and equipment are no longer amortised or depreciated, and any equity-accounted investee is no longer equity accounted. f) Leases At inception of a contract, the Group assess whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identiied asset for a period of time in exchange for consideration. • As a lessee At commencement or on modiication of a contract that contains a lease component, the Group allocate the consideration in the contract to each lease component on the basis of its relative stand- alone prices. However, for the leases of property the Group has elected not to separate non-lease components and account for the lease and non- lease components as a single lease component. The Group recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received. The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the end of lease term, unless the lease transfers ownership of the underlying asset to the Group by the end of the lease term or the cost of the right-of-use asset relects that the Group will exercise a purchase option. In that case the right-of-use asset will be depreciated over the useful life of the underlying asset, which is determined on the same basis as those of property and equipment. In addition, the right-of-use asset is periodically reduced by the impairment losses, if any. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group’s incremental borrowing rate. The Group determines its incremental borrowing rate by obtaining interest rates from various external inancing sources and makes certain adjustments to relect the terms of the lease and type of an asset leased. Lease payments included in the measurement of the lease liability comprise of following: - ixed payments, including in-substance ixed payments; - variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date; - the exercise price under a purchase option that the Group is reasonably certain to exercise; - lease payments in an optional renewal period if the Group is reasonably certain to exercise an extension option, and - penalties for early termination of a lease unless the Group is reasonably certain not to terminate early. 270 Subsequently, the lease liability is measured at amortized cost using efective interest method. It is remeasured when there is change in any of above-mentioned lease liability components. In such case the corresponding adjustment is made to the carrying amount of the right-of-use asset or is posted in proit or loss if the carrying amount of the right-of-use asset has been reduced to zero. The Group presents right-of-use assets that do not meet the deinition of investment property in the property, plant and equipment and lease liabilities in trade and other payables in the statement of inancial position. The Groups has elected not to recognize right- of-use assets and lease liabilities for leases of low-value assets and short-term leases. The Group recognizes the lease payments associated with these leases as an expense on a straight-line basis over the lease term. • As a lessor At inception or on modiication of a contract that contains a lease component, the Group allocates the consideration in the contract to each lease component on the basis of their relative stand-alone prices. When the Group acts as a lessor, they determine at lease inception whether each lease is a inance lease or an operating lease. To classify each lease, the Group makes an overall assessment of whether the lease transfers substantially all of the risks and rewards incidental to ownership of the underlying asset. If this is the case, then the lease is a inance lease; if not, then it is an operating lease. As part of this assessment, the Group considers certain indicators such as whether the lease is for the major part of the economic life of the asset. The Group recognizes lease payments received under operating leases as income on a straight-line basis over the lease term as part of rental income. Property held under inance leases and leased out under operating leases was classiied as investment property and stated at fair value as described in Note 4b). g) Financial instruments (i) Financial assets Initial recognition and measurement The inancial assets are classiied at initial recognition at amortized cost, fair value through other comprehensive income or fair value through proit or loss. The Group measures inancial assets at amortised cost if both of the conditions are met and the inancial asset is not designated at fair value through proit and loss: - the inancial asset is held within a business model with the objective to hold it in order to collect contractual cash lows; and - the contractual terms of the inancial asset give rise on speciied dates to cash lows that are solely payments of principal and interest on the principal amount outstanding. All inancial assets not classiied as measured at amortised cost as described above are measured at fair value through proit or loss. On initial recognition, the Group may irrevocably designate a inancial asset, that otherwise meets the requirements to be classiied and measured at amortised cost or at fair value through other comprehensive income, to be classiied and measured at fair value through proit or loss if doing so eliminates or signiicantly reduces an accounting mismatch that would otherwise arise. Subsequent measurement For purpose of subsequent measurement, the Group’s inancial assets are classiied in two categories: - Financial assets at amortised cost (debt instruments) This category is most relevant to the Group and it includes trade receivables and loans provided that are subsequently measured at amortised cost using the efective interest method, less any credit losses. - Financial assets at fair value through proit and loss This category includes derivatives. Financial assets are classiied as held for trading if they are acquired for the purposes of selling or repurchasing in the near future. Financial assets at fair value through proit or loss are carried out in the statement of inancial position at fair value with net changes in fair value being recognised in the statement of proit or loss. (ii) Non-derivative inancial assets The Group initially recognises loans and receivables on the date that they are originated. All other inancial assets are recognised initially on the trade date at which the Group becomes a party to the contractual provisions of the instrument. The Group derecognises a inancial asset when the contractual rights to the cash lows from the asset expire, or it transfers the rights to receive the contractual cash lows on the inancial asset in a transaction in which substantially all the risks and rewards of ownership of the inancial asset are transferred. Any interest in transferred inancial assets that is created or retained by the Group is recognised as a separate asset. Financial assets and liabilities are ofset and the net amount presented in the statement of inancial position when, and only when, the Group have a legal right to ofset 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 inancial assets with ixed or determinable payments that are not quoted in an active mark et. Such assets are recognised initially at fair value plus any directly attributable transaction costs. Loans provided are subsequently measured at amortised cost using the efective interest method, less any impairment losses. The Group classify as a current portion any part of long-term loans that is due within one year from the reporting date. Trade and other receivables Trade and other receivables and Receivables due from related parties are inancial assets with ixed 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. Receivables are subsequently measured at amortised cost using the efective interest method, less any impairment losses. Cash and cash equivalents Cash and cash equivalents comprise cash balances and call deposits. Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insigniicant risk of changes in value. 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-low statement. The Group treats cash deposited as a security in accordance with the bank loan covenants as cash and cash equivalents for cash low purposes. The cash low statement of the Group is prepared based on indirect method from the statement of inancial position and statement of comprehensive income. (iii) Financial liabilities Financial liabilities are classiied as measured at amortised cost or fair value through proit and loss. A inancial liability is classiied as at fair value through proit and loss if it is classiied as held-for trading, it is a derivative or it is designed as such on initial recognition. Financial liabilities at fair value through proit and loss are measured at fair value and net gains and losses, including any interest expense, are recognised in proit or loss. Other inancial liabilities are subsequently measured at amortised cost using the efective interest method. Interest expense and foreign exchange gains and losses are recognised in proit or loss. Any gain or loss on derecognition is also recognised in proit or loss. (iv) Non-derivative inancial liabilities The Group initially recognizes debt securities issued and subordinated liabilities on the date that they are originated. All other inancial liabilities (including liabilities designated at fair value through proit or loss) are recognized initially on the trade date at which the Group becomes party to the contractual provisions of the instrument. The 271 Group derecognizes a inancial liability when its contractual obligations are discharged, cancelled or expire. Non-derivative inancial liabilities comprise loans and borrowings, bank overdrafts, and trade and other payables. Such inancial liabilities are recognized initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition these inancial liabilities are measured at amortized cost using the efective interest method. Financial assets and liabilities are ofset and the net amount presented in the statement of inancial position when, and only when, the Group has a legal right to ofset the amounts and intends either to settle on a net basis or to realize the asset and settle the liability simultaneously. The Group classify as a current portion any part of long-term loans that is due within one year from the reporting date. (v) Derivative inancial instruments A derivative is a inancial instrument or other contract which fulils the following conditions: a) its value changes in response to change in a speciied interest rate, inancial instrument price, commodity price, foreign exchange rate, index of prices or rates, credit rating or credit index, or other variable, provided in the case of a non-inancial variable that the variable is not speciic to a party to the contract; b) it requires no initial net investment or an initial net investment that is smaller than would be required for other types of contracts that would be expected to have a similar response to changes in market factors; and c) it is settled at a future date. Derivative inancial instruments are initially recognized at fair value; attributable transaction costs are recognized in proit or loss as incurred. Subsequent to initial recognition, derivatives are measured at fair value, and changes therein are generally recognised in proit and loss. Fair values are obtained from quoted market prices or discounted cash low models, as appropriate. The derivatives are carried as current (those that are expected to be settled in less than 12 months) or non- current assets when their fair value is positive, and as current (those that are expected to be settled in less than 12 months) or non-current liabilities when their fair value is negative. The principal types of derivative instruments used by the Group are interest rate swaps. Swaps are agreements between the Group and other parties to exchange future cashlows based upon agreed notional amounts. Under interest rate swaps, the Group agrees with other parties to exchange, at speciic interval, the diference between ixed-rate and loating-rate interest amounts calculated by reference to an agreed notional amount. h) Contract assets Contract assets represents work in progress, which relates to the cost of development extras and speciic it outs for the tenants. Contract assets are stated at the lower of cost and net realisable value (being the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale). Where the net realisable value is below cost, contract assets are written down to the lower value, and the impairment loss is recorded in the income statement. Costs of contract assets include the purchase price and related costs of acquisition (transport, customs duties and insurance). i) Impairment (i) Non-inancial assets The carrying amounts of the Group’s assets, other than investment property, investment property under development and deferred tax assets are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, the asset’s recoverable amount is estimated. In respect of goodwill, the recoverable amount is estimated at each reporting date. An impairment loss is recognized whenever the carrying amount of an asset or its cash- generating unit exceeds its recoverable amount. The recoverable amount of an asset or cash- generating unit is the greater of its value in use and its fair value less costs to sell. Impairment losses are recognized in proit or loss. An impairment loss in respect of a Property, plant and equipment measured at fair value is reversed through proit and loss to the extent that it reverses an impairment loss on the same asset that was previously recognized in proit and loss. Impairment losses recognized in respect of cash- generating units are allocated irst to reduce the carrying amount of any goodwill allocated to cash-generating units (groups of units) and then to reduce the carrying amount of the other assets in the unit (group of units) on a pro-rata basis. (ii) Financial assets A inancial asset not carried at fair value through proit or loss, including an interest in an equity- accounted investee, is assessed at each reporting date to determine whether there is objective evidence that it is credit-impaired. Objective evidence that inancial assets are impaired can include default or delinquency by a debtor, restructuring of an amount due to the Group on terms that the Group would not consider otherwise, indications that a debtor will enter bankruptcy, the disappearance of an active market for a security and observable data indicating that there is a measurable decrease in the expected cash lows from a group of inancial assets. The Group considers evidence of impairment for inancial assets at both speciic asset and collective level. All individually signiicant inancial assets are assessed for speciic impairment. Those found not to be impaired are then collectively assessed for any impairment that has been incurred but not yet identiied. Assets that are not individually signiicant are collectively assessed for impairment by grouping together receivables with similar risk characteristics. The Group uses for the recognition and measurement of impairment losses the “expected credit loss” model (ECLs). The Group measures loss allowance at an amount equal to lifetime ECLs, except for the following, which are measured at 12-month ECLs: • provided loans and bank balances for which credit risk (i.e. the risk of default occurring over the expected life of the inancial instrument) has not increased signiicantly since initial recognition; • debt securities that are determined to have low credit risk at the reporting date; and • other debt securities and bank balances for which credit risk (i.e. the risk of default occurring over the expected life of the inancial instrument) has not increased signiicantly since initial recognition. Loss allowances for trade receivables are always measured at an amount equal to the lifetime ECLs. At each reporting date, the Group assess whether inancial assets carried at amortised cost are credit-impaired. Financial assets are credit- impaired when one or more events that have a detrimental impact on the estimated future cash lows of the inancial asset have occurred. Evidence that a inancial asset is credit impaired includes the following observable data: • signiicant inancial diiculty of the borrower or issuer; • a breach of contract such as a default or being more than 90 days past due; • the restructuring of a loan or advance by the Group on terms that the Group would not consider otherwise; • it is probable that the borrower will enter bankruptcy or other inancial reorganisation; or • the disappearance of an active market for a security because of inancial diiculties. The Group irst assess whether objective evidence of impairment exists individually for inancial assets that are individually signiicant, and individually or collectively for inancial assets that are not individually signiicant. If the Group determines that no objective evidence of credit impairment exists for an individually assessed inancial assets, whether 272 signiicant or not, it includes the assets in a group of inancial assets with similar risk characteristics and collectively assesses them for credit impairment. Financial assets that are individually assessed for impairment and for which an impairment loss is or continues to be recognised are not included in a collective assessment of impairment. A signiicant increase in credit risk (SICR) represents a signiicant increase in the risk of default in respect of a inancial assets as at the reporting date compared with the risk as at the date of initial recognition. When determining whether the credit risk of a inancial asset has increased signiicantly since initial recognition and when estimating ECLs, the Group considers reasonable and supportable information that is relevant and available without undue cost or efort. This includes both quantitative and qualitative information and analysis, based on the Group’s historical experience and informed credit assessment and including forward-looking information. The Group considers a inancial asset to be in default when: - the borrower is unlikely to pay its credit obligations to the Group in full, without recourse by the Group to actions such as realising security (if any is held); or - the trade or other receivable is more than 365 days past due. Lifetime ECLs are the ECLs that result from all possible default events over the expected life of a inancial instrument. 12-month ECLs are the portion of ECLs that result from default events that are possible within the 12 months after the reporting date (or shorter period if the expected life of the instrument is less than 12 months). The maximum period considered when estimating ECLs is the maximum contractual period over which the Group is exposed to credit risk. ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of cash shortfalls (i.e. the diference between the cash lows due to the entity in accordance with the contract and the cash lows that the Group expects to receive). ECLs are discounted at the efective interest rate of the inancial asset. In some cases the observable data required to estimate the amount of an impairment loss on a inancial asset may be limited or no longer fully relevant to current circumstances. This may be the case when a borrower is in inancial diiculties and there is little available historical data relating to similar borrowers. In such cases, the Group uses their experience and judgement to estimate the amount of any credit impairment loss. All impairment losses in respect of inancial assets are recognised in proit or loss and are only reversed if a subsequent increase in recoverable amount can be related objectively to an event occurring after the impairment loss was recognised. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount of the asset that would have been determined, net of amortisation, if no impairment loss had been recognised. The write-of policy of the Group requires that the outstanding amount of a loan shall be written of if there is any instalment overdue for 730 or more days. However, the loan shall remain in the Company’s statement of inancial position even after 730 days of non- payment if it is probable that the loan will be sold in a near future, or signiicant recoveries are expected. In such case, the loan outstanding amount shall be derecognised at the moment of the sale or later as soon as no signiicant recoveries are expected. The Group allocates to each inancial assets exposure to a credit risk stage based on data that is determined to be predictive of the risk of loss (including but not limited to external ratings, audited inancial statements, management accounts and cash low projections and available press information about customers) and applying experienced credit judgement. j) Reversals of impairment An impairment loss of non-inancial assets is reversed if there has been an indication that the loss has decreased or no longer exists and a change in the estimates used to determine the recoverable amount. An impairment loss is only reversed to the extent that the carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, had no impairment losses been recognized. Reversal of an impairment loss for goodwill is prohibited. k) Equity Issued capital Issued capital represents the amount of capital registered in the Shareholders Register and is classiied as equity. External costs directly attributable to the issuance of share capital, other than upon a business combination, are shown as a deduction from the proceeds, net of tax, in equity. Share premium The share premium concerns the income from the issuing of shares in so far as it exceeds the nominal value of the shares (above par income). Share premium is presented net of IPO costs incurred in process of shares emission. Translation reserve The translation reserve comprises all foreign exchange diferences arising from the translation of the inancial statements from the functional to the presentation currency (refer to Note 3f). Revaluation reserve Revaluation reserve comprise revaluation of solar plants and hotels, which are classiied under property, plant and equipment at revaluated amounts, being the fair value at the reporting date (refer to Note 4d). Retained earnings Consolidated retained earnings arises from accumulation of proits and losses of the consolidated activities and are subject of dividend distribution after approval of the Board of directors. l) Earnings per share Earnings per share is an important inancial indicator, which measures the proitability of the Group. Basic earnings per share is calculated by dividing the net proit for the period attributable to equity holders of the Group by the weighted average number of shares of ordinary shares outstanding during the year. Diluted earnings per share is calculated by dividing the net proit for the period attributable to equity holders of the Group by the weighted average number of ordinary shares outstanding during the period plus the weighted average number of shares that would be issued if all dilutive potential ordinary shares were converted into ordinary shares. The denominator in the calculation of basic EPS for each period presented is the number of shares as at 31 December 2021. The resulting EPS data is pro forma rather than historical but is comparable over the years/period presented. m) Share based payment Under the CTP N.V. Long Term Incentive Plan (“the LTIP”), CTP N.V. provides share-based beneits to directors of the Company in the form conditional share awards over the Company’s ordinary shares. The fair value of the awards granted under the LTIP is recognised as an employee beneits expense, with a corresponding increase in equity (Retained earnings). The total amount to be expensed is determined by reference to the fair value of the awards granted, including the impact of any market performance conditions and non-vesting conditions. Service conditions and any non-market performance vesting conditions are taken into account when estimating the number of awards expected to vest. The total expense is recognised over the vesting period, which is the period over which all of the speciied vesting conditions are to be satisied. At the end of each period, the Company revises its estimates of the number of awards that are expected to vest based on the service conditions and the non-market vesting conditions. It recognises the impact of the revision to original estimates, if any, in proit or loss, with a corresponding adjustment to equity. 273 n) Provisions A provision is recognized in the statement of inancial position when the Group has a present legal or constructive obligation as a result of a past event, and it is probable that an outlow of economic beneits will be required to settle the obligation. If the efect is material, provisions are determined by discounting the expected future cash lows at a pre-tax rate that relects current market assessments of the time value of money and, where appropriate, the risks speciic to the liability. o) Rental income and service charge income Rental income from leases is recognized as income in the statement of comprehensive income on a straight- line basis over the term of the lease. Lease incentives granted are recognized as an integral part of the total rental income. Park management income (service charge) is integral, but separately identiiable, part of rental contracts. The Group has identiied that the park management services is distinct from rentals and are therefore accounted separately. The service charge is priced and contracted based on market prices relevant for the region of operation. The service charge income is recognized evenly over time of the service rendered as the customer simultaneously receives and consumes the beneits from the provided service. Service and management charges 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. p) Income from development activities Revenues from customer speciic it-outs of rented facilities (development extras) are presented separately in statement of comprehensive income. Income from development activities includes the initial amount agreed in the contract plus any variations in contract work, claims and incentive payments to the extent that it is probable that they will result in revenue and can be measured reliably. Income from development activities are recognised at point in time. q) Revenues from sale of properties Revenue from sale of properties is recognised when the control has passed to the buyer at the amount to which the Group expects to be entitled, recovery of the consideration is probable, the associated costs and possible return of goods can be estimated reliably and there is no continuing management involvement with the goods and the amount of revenue can be measured reliably, i.e. on the date on which the application is submitted to the Land Registry for transfer of legal ownership title. Revenue is measured net of returns, trade discounts and volume rebates. When appropriate, revenue from such sales are deferred until the property is completed and the properties are ready for sale, including the necessary regulatory permissions. r) Hotel revenues Revenues from hotel operations represents room rental and sale of food and beverages. Hotel revenues are recognised in proit and loss at the moment, when customer obtains control over the services provided. s) Expenses (i) Attributable external expenses Attributable external expenses consist of property operating expenses (including service expenses), hotel operating expenses and expenses from development activities. (ii) Property operating expenses Property operating expenses (including service expenses) are expensed as incurred. (iii) Finance income / inance expenses The Group’s inance income and inance costs include: • interest income; • interest expense; • dividend income; • the net gain or loss on inancial assets at fair value through proit or loss (other than investment property and investment property under development); • the foreign currency gain or loss on inancial assets and inancial liabilities; • the fair value loss on contingent consideration classiied as inancial liability; • impairment losses recognised on inancial assets (other than trade receivables); • the net gain or loss on hedging instruments that are recognised in proit or loss; and • the reclassiication of net gains previously recognised in Other Comprehensive Income. Interest income or expense is recognised using the efective interest method. t) Income tax Income tax comprises current and deferred tax. Income tax is recognized in proit or loss except to the extent that it relates to items recognized directly in equity, in which case it is recognized in equity or other comprehensive income. Current tax Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantially enacted by the end of the reporting period, and any adjustment to tax payable in respect of previous years. Deferred tax Deferred tax is provided using the liability method, on temporary diferences arising between the carrying amounts of assets and liabilities for inancial reporting purposes and the amounts used for taxation purposes. The amount of deferred tax provided is based on the expected manner of realization or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantially enacted at the reporting date. A deferred tax asset is recognized only to the extent that it is probable that future taxable proits will be available against which the asset can be utilized. Deferred tax assets are reduced to the extent that it is no longer probable that the related tax beneit will be realized. Deferred tax was calculated using the tax rates valid for the periods in which the tax asset or liability is expected to be utilized. The corporate income tax rates for 2021 and 2019/2020 were as follows: COUNTRY 2021 2019/2020 Austria 25.00% 25.00% Czech Republic 19.00% 19.00% Germany 29.48% 29.48% Hungary 9.00% 9.00% Netherlands 25.00% 25.00% Poland 19.00% 19.00% Romania 16.00% 16.00% Serbia 15.00% 15.00% Slovakia 21.00% 21.00% Ukraine -- 18.00% Bulgaria 10.00% 10.00% Slovenia 19.00% 19.00% Deferred tax is not recognized from temporary diferences on the initial recognition of assets and/ or liabilities in transaction which is not a business combination under IFRS 3 (asset deal). Deferred tax assets and liabilities are ofset only if certain criteria are met. Deferred income tax assets and liabilities are ofset when there is a legally enforceable right to ofset current tax assets against current tax liabilities and when the deferred income taxes of one entity relate to the same iscal authority 274 u) Foreign currency transaction Foreign currency transactions Transactions in foreign currencies are translated to the respective functional currencies of Group entities at exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the exchange rate of local national banks at the reporting date. Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are translated into the functional currency at the exchange rate when the fair value was determined. Foreign currency diferences are generally recognised in proit or loss. Non-monetary items that are measured based on historical cost in a foreign currency are not translated. Foreign operations The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition, are translated into euro at exchange rates at the reporting date. The income and expenses of foreign operations are translated into euros at the exchange rates at the dates of the transactions. Foreign currency diferences are recognised in Other Comprehensive Income and accumulated in the translation reserve, except to the extent that the translation diference is allocated to Non-controlling interest (NCI). When a foreign operation is disposed of in its entirety or partially such that control, signiicant inluence or joint control is lost, the cumulative amount in the translation reserve related to that foreign operation is reclassiied to proit or loss as part of the gain or loss on disposal. If the Group disposes of part of its interest in a subsidiary but retains control, then the relevant proportion of the cumulative amount is reattributed to NCI. When the Group disposes of only part of an associate or joint venture while retaining signiicant inluence or joint control, the relevant proportion of the cumulative amount is reclassiied to proit or loss. v) Segment reporting The Group has applied the criteria of IFRS 8, ‘Operating Segments’ to determine the number and type of operating segments. According to this standard an operating segment is component carrying out business operations whose operating income is evaluated regularly by the Group’s highest executive decision maker and about which separate inancial information is available. The results of the Group are reviewed by CEO regularly on weekly basis by analysis of KPI on geographical segments, where the Group operates. The Group’s Operating segments were determined in connection with the nature of the business and how the operations are managed by the Group’s operating decisionmaker. The Group reports operating segments based on geographical segmentation: Czech Republic, Romania, Hungary, Slovakia, The Netherlands and Other. Hotel segment operated in the Czech Republic is presented separately. Segment results that are reported to the Board of Directors include items directly attributable to a segment. The operating segments are determined based on the Group’s management and internal reporting structure. 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. 5. Segment reporting The principal operation of the Group is the lease of investment property in Central and Eastern Europe (CEE) and development in these countries. The Group manages its activities based on geographical segmentation as the substance of the business activities is the same in all regions, where the Group operates. The Group’s principal activities are performed in the following main operating segments: Czech Republic, Romania, Hungary, Slovakia, The Netherlands, Other geographical segments and Hotel Segment. The Group operates 3 hotels under the Courtyard by Marriott brand in the Czech Republic (Prague Airport, Pilsen and Brno) under management agreements with third party, which are presented under separate Hotel Segment. REPORTABLE SEGMENT OPERATIONS Czech Republic Industrial property, offices, retail , other Romania Industrial property Hungary Industrial property Slovakia Industrial property The Netherlands Industrial property, Development Other segments Other sements which do not meet criteria for sement reportin reconition Hotel segment Operation of 3 hotels in the Czech Republic 275 Results of the segments for 12-month period ended 31 December 2021 are as follows: IN EUR THOUSAND CZECH REPUBLIC HUNGARY ROMANIA SLOVAKIA NETHER- LANDS OTHER HOTEL SEGMENT TOTAL SEGMENTS INTER- SEGMENT ELIMINA- TIONS TOTAL Rental income 204,345 31,110 60,491 25,821 -- 12,884 -- 334,651 -- 334,651 Service charge income 15,691 3,888 7,957 2,802 -- 774 -- 31,112 -- 31,112 Property operating expenses -20,563 -5,955 -6,679 -4,240 -115 -1,159 -199 -38,910 -- -38,910 Net rental income 199,473 29,043 61,769 24,383 -115 12,499 -199 326,853 -- 326,853 Hotel operating revenue -- -- -- -- -- -- 8,779 8,779 -- 8,779 Hotel operating expenses -- -- -- -- -- -- -11,334 -11,334 -- -11,334 Net operating income from hotel operations -- -- -- -- -- -- -2,555 -2,555 -- -2,555 Income from development activities 22,250 1,104 -- 720 -- 8,750 -- 32,824 -- 32,824 Expenses from development activities -15,733 -738 -- -386 -- -6,602 -- -23,459 -- -23,459 Net income from development activities 6,517 366 -- 334 -- 2,148 -- 9,365 -- 9,365 Total revenues 242,286 36,102 68,448 29,343 -- 22,408 8,779 407,366 -- 407,366 Total attributable external expenses -36,296 -6,693 -6,679 -4,626 -115 -7,761 -11,533 -73,703 -- -73,703 Net valuation result on investment property 733,943 123,310 110,458 100,271 -8,360 40,949 -- 1,100,571 -- 1,100,571 Other income 16,836 120 440 264 1,560 360 21 19,601 -9,156 10,445 Amortization and depreciation -7,622 -160 -329 -62 -18 -256 -- -8,447 -- -8,447 Employee benefits -13,415 -3,335 -4,529 -1,955 -6,083 -2,566 -- -31,883 -- -31,883 Impairment of financial assets -466 -- -691 79 -- -- -- -1,078 -- -1,078 Other expenses -13,732 -3,858 -5,681 -1,761 -3,272 -7,298 -17 -35,619 9,156 -26,463 Net other income/expenses -18,399 -7,233 -10,790 -3,435 -7,813 -9,760 4 -57,426 -- -57,426 Net profit/loss before finance costs 921,534 145,486 161,437 121,553 -16,288 45,836 -2,750 1,376,808 -- 1,376,808 Interest income 36 3 -- -- 63,513 -- 78 63,630 -61,637 1,993 Interest expense -46,528 -8,400 -25,623 -5,897 -39,260 -6,114 -698 -132,520 61,637 -70,883 Other financial expenses -14,082 -2,451 -3,924 -229 -17,220 -140 -74 -38,120 -- -38,120 Other financial gains/losses -2,142 12,410 1,065 -8 -3,592 -936 95 6,892 -- 6,892 Net finance costs -62,716 1,562 -28,482 -6,134 3,441 -7,190 -599 -100,118 -- -100,118 Profit/loss before income tax 858,818 147,048 132,955 115,419 -12,847 38,646 -3,349 1,276,690 -- 1,276,690 Income tax expense -183,169 -13,743 -21,868 -24,636 5,692 -13,556 526 -250,754 -- -250,754 Profit for the period 675,649 133,305 111,087 90,783 -7,155 25,090 -2,823 1,025,936 -- 1,025,936 Profit attributable to: Non-controlling interests -- -- -- -- -- -- -- -- -- -- Equity holders of the Company 675,649 133,305 111,087 90,783 -7,155 25,090 -2,823 1,025,936 -- 1,025,936 276 Assets and liabilities by segments as at 31 December 2021 are as follows: IN EUR THOUSAND CZECH REPUBLIC HUNGARY ROMANIA SLOVAKIA NETHER- LANDS OTHER HOTEL SEGMENT TOTAL SEGMENTS INTER SEGMENT ELIMINA- TIONS TOTAL Assets Investment property 4,517,045 758,453 1,326,691 595,995 62,091 314,832 -- 7,575,107 -- 7,575,107 Investment property under development 201,175 89,334 62,950 48,621 285,095 87,028 -- 774,203 -- 774,203 Property, plant and equipment 46,280 662 659 223 219 3,670 59,254 110,967 -- 110,967 intangible assets 2,038 -- 1 -- 41 26 5 2,111 -- 2,111 Financial investments 324 -- -- -- 135 -14 -- 445 445 Trade and other receivables 51,494 10,745 1,123 2,763 242 34,372 -- 100,739 -- 100,739 Financial derivatives -- 126 -- -- -- -- -- 126 -- 126 Receivables from related parties 4,458 -- -- -- 3,523,976 -- -- 3,528,434 -3,481,310 47,124 Deferred tax assets 10,709 71 2,008 1,368 7,595 1,858 443 24,052 -- 24,052 Total non-current assets 4,833,523 859,391 1,393,432 648,970 3,879,394 441,772 59,702 12,116,184 -3,481,310 8,634,874 Trade and other receivables 44,137 19,631 24,680 12,282 17,701 24,538 1,113 144,082 -- 144,082 Short-term receivables due from related parties 7,337 -- -- 1,881 24,535 -- -- 33,753 -33,225 528 Financial derivatives -- 46 -- -- -- -- -- 46 -- 46 Contract assets 7,011 -- -- -- -- -- 28 7,039 -- 7,039 Current income tax receivable 5,732 73 1,046 159 10 240 -- 7,260 -- 7,260 Assets held for sale -- -- -- -- -- -- -- -- -- -- Cash and cash equivalents 30,721 59,545 6,302 5,386 772,807 13,726 4,329 892,816 -- 892,816 Total current assets 94,938 79,295 32,028 19,708 815,053 38,504 5,470 1,084,996 -33,225 1,051,771 Total assets 4,928,461 938,686 1,425,460 668,678 4,694,447 480,276 65,172 13,201,180 -3,514,535 9,686,645 Total equity 2,005,701 350,842 473,608 275,803 896,078 70,092 34,706 4,106,830 -- 4,106,830 Liabilities Interest-bearing loans and borrowings from financial institutions 587,663 58,380 -- 89,385 373,077 1,966 -- 1,110,471 -- 1,110,471 Bond issued -- -- -- - 3,368,202 -- -- 3,368,202 -- 3,368,202 Trade and other payables 24,047 10,462 11,829 1,169 10,762 2,941 3,381 64,591 -- 64,591 Long-term payables to related parties 1,566,880 467,679 841,305 232,174 15 354,463 18,812 3,481,328 -3,481,310 18 Financial derivatives -- -- -- -- -- -- -- -- -- -- Deferred tax liabilities 579,754 29,526 65,597 50,329 2,581 16,719 2,267 746,773 -- 746,773 Total non-current liabilities 2,758,344 566,047 918,731 373,057 3,754,637 376,089 24,460 8,771,365 -3,481,310 5,290,055 Interest-bearing loans and borrowings from financial institutions 3,587 2,780 -- 3,926 10,088 452 -- 20,833 -- 20,833 Bonds issued -- -- -- -- 13,490 -- -- 13,490 -- 13,490 Trade and other payables 152,248 13,853 25,078 14,237 16,707 13,285 1,740 237,148 -- 237,148 Short-term payables to related parties -- 4,152 7,450 787 -- 16,644 4,192 33,225 -33,225 -- Financial derivatives -- -- -- -- -- -- -- -- -- -- Current income tax payables 8,581 1,012 593 868 3,447 3,714 74 18,289 -- 18,289 Provisions -- -- -- -- -- -- -- -- -- -- Total current liabilities 164,416 21,797 33,121 19,818 43,732 34,095 6,006 322,985 -33,225 289,760 Total liabilities 2,922,760 587,844 951,852 392,875 3,798,369 410,184 30,466 9,094,350 -3,514,535 5,579,815 Total equity and liabilities 4,928,461 938,686 1,425,460 668,678 4,694,447 480,276 65,172 13,201,180 -3,514,535 9,686,645 277 Results of the segments for 24-month period ended 31 December 2020 are as follows: IN EUR THOUSAND CZECH REPUBLIC HUNGARY ROMANIA SLOVAKIA NETHER- LANDS OTHER HOTEL SEGMENT TOTAL SEGMENTS INTER- SEGMENT ELIMINA- TIONS TOTAL Rental income 359,868 47,107 90,624 41,283 -- 11,039 -- 549,921 -- 549,921 Service charge income 27,255 6,049 10,329 4,314 -- 314 -- 48,261 -- 48,261 Property operating expenses -38,475 -12,933 -17,415 -7,185 -- -925 -789 -77,723 -- -77,723 Net rental income 348,648 40,223 83,538 38,412 -- 10,427 -789 520,459 -- 520,459 Hotel operating revenue -- -- -- -- -- -- 23,064 23,064 -- 23,064 Hotel operating expenses -- -- -- -- -- -- -17,442 -17,442 -- -17,442 Net operating income from hotel operations -- -- -- -- -- -- 5,622 5,622 -- 5,622 Income from development activities 51,356 -- -- 226 -- 2,312 -- 53,894 -- 53,894 Expenses from development activities -28,512 -- -- -- -- -2 399 -- -30,911 -- -30,911 Net income from development activities 22,844 -- -- 226 -- -87 -- 22,983 -- 22,983 Total revenues 438,479 53,156 100,953 45,823 -- 13,665 23,064 675,140 -- 675,140 Total attributable external expenses -66,987 -12,933 -17,415 -7,185 -- -3,325 -18,231 -126,076 -- -126,076 Net valuation result on investment property 320,560 101,617 89,745 32,143 -- 14,872 -- 558,937 -- 558,937 Other income 19,558 426 514 -396 -- 135 12 20,249 -7,145 13,104 Amortization and depreciation -15,074 -376 -586 -118 -- -258 -3,803 -20,215 -- -20,215 Employee benefits -26,720 -3,831 -6,194 -1,791 -103 -1,502 -- -40,141 -- -40,141 Impairment of financial assets -662 65 81 -73 -- -100 -5 -694 -- -694 Other expenses -20,778 -8,096 -7,161 -2,121 -8,161 -6,078 -5,020 -57,415 7,145 -50,270 Net other income/expenses -43,676 -11,812 -13,346 -4,499 -8,264 -7,803 -8,816 -98,216 -- -98,216 Net profit/loss before finance costs 648,376 130,028 159,937 66,282 -8,264 17,409 -3,983 1,009,785 -- 1,009,785 Interest income 5,111 20 1 -- 10,443 7,187 518 23,280 -21,745 1,535 Interest expense -81,435 -11,392 -34,237 -9,804 -6,214 -2,479 -1,737 -147,298 21,745 -125,553 Other financial expenses -17,222 -1,366 -4,552 -1,626 -1,244 -1,028 -407 -27,445 -- -27,445 Other financial gains/losses -64,970 -4,262 1,910 954 -105 -479 -236 -67,188 -- -67,188 Net finance costs -158,516 -17,000 -36,878 -10,476 2,880 3,201 -1,862 -218,651 -- -218,651 Profit/loss before income tax 489,860 113,028 123,059 55,806 -5,384 20,610 -5,845 791,134 -- 791,134 Income tax expense -102,975 -10,978 -14,438 -14,177 -1,866 -2,894 879 -146,449 -- -146,449 Profit for the period 386,885 102,050 108,621 41,629 -7,250 17,716 -4,966 644,685 -- 644,685 Profit attributable to: Non-controlling interests -1,720 -- -- -- -- 1,328 -- -392 -- -392 Equity holders of the Company 385,165 102,050 108,621 41,629 7,250 19,044 -4,966 644,293 -- 644,293 278 Assets and liabilities by segments as at 31 December 2020 are as follows: IN EUR THOUSAND CZECH REPUBLIC HUNGARY ROMANIA SLOVAKIA NETHER- LANDS OTHER HOTEL SEGMENT TOTAL SEGMENTS INTER SEGMENT ELIMINA- TIONS TOTAL Assets Investment property 3,543,874 37,820 943,630 362,940 -- 163,966 -- 5,386,230 -- 5,386,230 Investment property under development 246,246 68,579 32,199 24,180 -- 16,143 -- 387,347 -- 387,347 Property, plant and equipment 37,658 300 683 188 -- 563 59,492 98,884 -- 98,884 intangible assets 2,371 -- -- -- -- 47 -- 2,418 -- 2,418 Trade and other receivables 2,140 5,141 3,765 10 -2 742 -- 11,796 -- 11,796 Financial derivatives -- -- -- -- -- -- -- -- -- -- Financial investments 326 -- -- -- 195 -- -- 521 -- 521 Receivables from related parties 8,078 -- -- -- 1,142,029 -- -- 1,150,107 -1,108,061 42,046 Deferred tax assets 11,732 13 1,901 -- -- 25 751 14,422 -- 14,422 Total non-current assets 3,852,425 445,853 982,178 387,318 1,142,222 181,486 60,243 7,051,725 -1,108,061 5,943,664 Trade and other receivables 29,484 8,261 19,613 2,690 599 6,594 700 67,941 -- 67,941 Short-term receivables due from related parties 46,686 -- -- 1,914 6,279 -- 49 54,928 -54,883 45 Financial derivatives -- -- -- -- -- -- -- -- -- -- Contract assets 11,543 -- -- -- -- 1,313 22 12,878 -- 12,878 Current income tax receivable 412 105 1,470 181 -- 401 123 2,692 -- 2,692 Assets held for sale -- -- -- -- -- -- -- -- -- -- Cash and cash equivalents 26,379 15,864 12,234 5,010 313,967 42,584 3,103 419,141 -- 419,141 Total current assets 114,504 24,230 33,317 9,795 320,845 50,892 3,997 557,580 -54,883 502,697 Total assets 3,966,929 470,083 1,015,495 397,113 1,463,067 232,378 64,240 7,609,305 -1,162,944 6,446,361 Total equity 1,517,530 216,215 309,403 114,193 19,866 52,113 34,913 2,264,233 -- 2,264,233 Liabilities Interest-bearing loans and borrowings from financial institutions 1,435,317 129,246 242,430 -- 385,006 -- -- 2,191,999 -- 2,191,999 Bond issued -- -- -- -- 1,041,971 -- -- 1,041,971 -- 1,041,971 Trade and other payables 12,467 2,527 1,754 1,476 -- 1,922 3,239 23,385 -- 23,385 Long-term payables to related parties 369,808 84,112 345,267 186,083 -- 137,550 19,785 1,142,605 -1,108,061 34,544 Financial derivatives 25,408 902 886 -- -- -- -- 27,196 -- 27,196 Provisions -- -- -- -- -- -- -- -- -- -- Deferred tax liabilities 406,129 18,730 45,434 27,255 4,801 2,430 504,779 -- 504,779 Total non-current liabilities 2,249,129 235,517 635,771 214,814 1,426,977 144,273 25,454 4,931,935 -1,108,061 3,823,874 Interest-bearing loans and borrowings from financial institutions 45,383 6,321 37,446 58,678 12,460 -- -- 160,288 -- 160,288 Bonds issued -- -- -- -- -- -- -- -- -- -- Trade and other payables 107,884 9,975 26,008 8,166 1,251 13,937 1,785 169,006 -- 169,006 Short-term payables to related parties 26,900 1,591 5,384 1,066 647 19,926 1,997 57,511 -54,883 2,627 Financial derivatives 5,945 227 698 -- -- -- -- 6,870 -- 6,870 Current income tax payables 14,158 237 785 196 1,866 2,129 91 19,463 -- 19,463 Liabilities associated with assets held for sale -- -- -- -- -- -- -- -- -- -- Provisions -- -- -- -- -- -- -- -- -- -- Total current liabilities 200,270 18,351 70,321 68,106 16,224 35,992 3,873 413,137 -54,883 358,254 Total liabilities 2,449,399 253,868 706,092 282,920 1,443,201 180,265 29,327 5,345,072 -1,162,944 4,182,128 Total equity and liabilities 3,966,929 470,083 1,015,495 397,113 1,463,067 232,378 64,240 7,609,305 -1,162,944 6,446,361 279 Results of the segments for 12-month period ended 31 December 2020 are as follows: IN EUR THOUSAND CZECH REPUBLIC HUNGARY ROMANIA SLOVAKIA NETHER- LANDS OTHER HOTEL SEGMENT TOTAL SEGMENTS INTER- SEGMENT ELIMINA- TIONS TOTAL Rental income 186,808 25,785 49,540 22,862 -- 6,940 -- 291,935 -- 291,935 Service charge income 14,393 3,063 5,741 2,499 -- 186 -- 25,882 -- 25,882 Property operating expenses -17,845 -6,556 -7,943 -3,985 -- -482 -337 -37,148 -- -37,148 Net rental income 183,356 22,292 47,338 21,376 -- 6,644 -337 280,669 -- 280,669 Hotel operating revenue -- -- -- -- -- -- 5,752 5,752 -- 5,752 Hotel operating expenses -- -- -- -- -- -- -5,897 -5,897 -- -5,897 Net operating income from hotel operations -- -- -- -- -- -- -145 -145 -- -145 Income from development activities 46,873 -- -- 226 -- 2,312 -- 49,411 -- 49,411 Expenses from development activities -24,585 -- -- -- -- -2,399 -- -26,984 -- -26,984 Net income from development activities 22,288 -- -- 226 -- -87 -- 22,427 -- 22,427 Total revenues 248,074 28,848 55,281 25,587 -- 9,438 5,752 372,980 -- 372,980 Total attributable external expenses -42,430 -6,556 -7,943 -3,985 -- -2,881 -6,234 -70,029 -- -70,029 Net valuation result on investment property 62,577 53,092 22,681 5,037 -- 8,775 -- 152,162 -- 152,162 Other income 7,352 446 467 263 -- 1,369 4 9,901 -5,891 4,010 Amortization and depreciation -7,909 -151 -231 -67 -- -161 -1,943 -10,462 -- -10,462 Employee benefits -15,574 -2,071 -3,203 -1,086 -103 -932 -- -22,969 -- -22,969 Impairment of financial assets -435 -- -146 -99 -- -- -5 -685 -- -685 Other expenses -13,290 -3,758 -5,682 -1,308 -7,580 -2,612 -4,782 -39,012 5,891 -33,121 Net other income/expenses -29,856 -5,534 -8,795 -2,297 -7,683 -2,336 -6,726 -63,227 -- -63,227 Net profit/loss before finance costs 238,365 69,850 61,224 24,342 -7,683 12,996 -7,208 391,886 -- 391,886 Interest income 2,470 13 -- -- 10,443 1 197 13,124 -12,171 953 Interest expense -42,091 -5,860 -18,198 -5,329 -6,214 -2,342 -671 -80,705 12,171 -68,534 Other financial expenses -4,304 -744 -2,863 -1,133 -1,244 -978 -235 -11,501 -- -11,501 Other financial gains/losses -23,033 -2,496 2,744 657 65 -170 -146 -22,379 -- -22,379 Net finance costs -66,958 -9,087 -18,317 -5,805 3,050 -3,489 -855 -101,461 -- -101,461 Profit/loss before income tax 171,407 60,763 42,907 18,537 -4,633 9,507 -8,063 290,425 -- 290,425 Income tax expense -24,986 -6,765 -662 -4,081 -1,866 -935 1,394 -37,901 -- -37,901 Profit for the period 146,421 53,998 42,245 14,456 -6,499 8,572 -6,669 252,524 -- 252,524 Profit attributable to: Non-controlling interests -406 -- -- -- -- -- -- -406 -- -406 Equity holders of the Company 146,015 53,998 42,245 14,456 -6,499 8,572 -6,669 252,118 -- 252,118 280 6. Changes in the Group Structure Current inancial year In 2021, the Group has acquired the below mentioned subsidiaries: SUBSIDIARY COUNTRY ACQUISITION DATE Amsterdam Logistic Cityhub B.V. The Netherlands 12 Auust 2021 CTP Mu B.V. The Netherlands 29 December 2021 CTPark Námestovo, spol. s r.o. Slovakia 22 December 2021 Office Campus Real Estate Kft. Hunary 23 June 2021 CTPark Twenty Three Kft. Hunary 25 November 2021 CTPark Twenty Five Kft. Hunary 23 December 2021 CTPark Twenty Six Kft. Hunary 23 December 2021 CTPark Twenty Seven Kft. Hunary 23 December 2021 CTPark Twenty Four Kft. Hunary 31 December 2021 CTPark Oradea North SRL Romania 9 September 2021 CTPark Arad North SRL Romania 9 September 2021 CTPark Sibiu East SRL Romania 9 September 2021 CTPark Craiova East SRL Romania 9 September 2021 CTPark Bucharest South II SRL Romania 30 September 2021 CTPark Brasov West SRL Romania 30 September 2021 CTPark Timisoara East SRL Romania 30 September 2021 CTPark Brasov SRL Romania 30 September 2021 Project Vrajdebna EOOD Bularia 2 Auust 2021 CTPark Kappa EOOD Bularia 9 Auust 2021 CTPark Lambda EOOD Bularia 30 September 2021 PŘÍDÁNKY SPV, s.r.o. Czech Republic 29 June 2021 RENWON a.s. Czech Republic 16 Auust 2021 CTP Property Alpha d.o.o. Beograd-Novi Beograd Serbia 3 March 2021 with the efect on the inancial statement of the Group as follows: IN EUR THOUSAND THE NETH- ERLANDS SLOVAKIA ROMANIA HUNGARY BULGARIA CZECH REPUBLIC SERBIA TOTAL Investment property 37,285 80,795 147,120 111,949 38,046 25,257 20,031 460,483 Investment property under development 213,131 1,130 10,522 19,255 -- -- -- 244,038 Property, plant & equipment -- -- 1 -- -- -- -- 1 Intangible assets 12 -- -- -- -- -- -- 12 Cash and cash equivalents 1,422 906 57,422 5,935 880 467 11 67,043 Deferred tax asset 12 1,368 -- -- 24 -- -- 1,404 Trade and other receivables 65 4,358 5,978 2,649 226 326 2 13,603 Total assets 251,926 88,557 221,043 139,788 39,176 26,050 20,044 786,584 Interest-bearing loans and borrowings from financial institutions -- -26,292 -39,575 -- -- -- -65,867 Deferred tax liability -2,121 -- -- -- -- -- -- -2,121 Trade and other liabilities -9,684 -1,531 -20,282 -2,471 -67 -170 -22 -34,227 Total liabilities -11,805 -27,823 -59,857 -2,471 -67 -170 -22 -102,215 Net assets acquired 240,121 60,734 161,186 137,317 39,109 25,880 20,022 684,369 Consideration paid -199,107 -60,734 -138,582 -137,317 -39,109 -24,740 -20,022 -619,611 Consideration not settled till period end -41,014 -- -22,604 -- -- -1,140 -- -64,758 Net cash outflow -197,685 -59,828 -81,160 -131,382 -38,229 -24,273 -20,011 -552,568 281 The following most signiicant transactions took place in 2021: IN EUR THOUSAND AMSTERDAM LOGISTIC CITYHUB B.V. (NL) CTP MU B.V. (NL) CTPARK NÁMESTOVO, SPOL. S R.O. (SK) Investment property -- 37,285 80,795 Investment property under development 213,131 -- 1,130 Property, plant & equipment -- -- -- Intangible assets 12 -- -- Cash and cash equivalents 1,422 -- 906 Deferred tax asset 12 -- 1,368 Trade and other receivables 65 -- 4,358 Total assets 214,641 37,285 88,556 Interest-bearing loans and borrowings from financial institutions -- -- -26,292 Deferred tax liability -- -2,121 -- Trade and other liabilities -9,521 -163 -1,530 Total liabilities -9,521 -2,284 -27,822 Net assets acquired 205,120 35,001 60,734 Consideration paid -164,106 -35,001 -60,734 Consideration not settled till period end -41,014 -- -- Net cash outflow -162,685 -35,001 -59,827 The acquisitions were recognized as a property asset acquisition as acquired companies does not represent a business as deined by IFRS 3. During the year 2021, the subsidiaries CTPark České Budějovice, spol. s r.o. and CTPark České Budějovice II, spol. s r.o. were disposed outside of the Group for the consideration paid of EUR 8,950 thousand. Prior inancial year In addition to the common control transaction as mentioned in Note 3c, CTP initiated in 2019 a legal restructuring mainly of the companies which are part of the Czech Industrial Portfolio with the aim to simplify the company structure and decrease the administrative burden. The legal restructuring consists of several mergers, demergers and spin-ofs of over 40 SPVs, all efective from 1 January 2020. As a consequence of the legal restructuring, part of companies ceased to exist as per 1 January 2020 and all assets and liabilities of the dissolved companies were transferred to the respective successor company. For the list of companies included in process of restructuring, please refer to Note 33 Subsidiaries. In 2020, the Group has acquired the below mentioned subsidiaries: SUBSIDIARY ACQUISITION DATE CTPARK BUCHAREST UPSILON SRL 16 March 2020 Valkenburg s.r.o. 2 September 2020 LogMaxx Beta doo Beograd 23 December 2020 with the efect on the inancial statement of the Group as follows: IN EUR THOUSAND ACQUISITIONS 2020 Investment property 47,141 Investment property under development -- Cash and cash equivalents 761 Trade and other receivables 2,613 Total assets 50,515 Trade and other liabilities -3,771 Interest bearing loans -18,867 Total liabilities -22,638 Net assets acquired 27,877 Consideration paid 27,877 Net cash outflow 27,116 282 The acquisitions were recognized as a property asset acquisition as acquired companies does not represent a business as deined by IFRS 3. During the year 2020, the subsidiaries CTPark Lviv LLC, CTPark Ukraine LLC and IQ Lviv LLC were disposed outside of the Group. In 2019, the Group has acquired the below mentioned subsidiaries: SUBSIDIARY ACQUISITION DATE Development OVA West a.s. 30 April 2019 CTP Invest XXX, spol. s r.o. 18 June 2019 CTP Bucharest A1 SRL 30 June 2019 CTP Borská Pole, spol. s r.o. 3 September 2019 CTP Lambda doo Beograd 31 December 2019 with the efect on the inancial statement of the Group as follows: IN EUR THOUSAND ACQUISITIONS 2019 Investment property 54,548 Investment property under development 427 Cash and cash equivalents 301 Trade and other receivables 1,008 Total assets 56,284 Trade and other liabilities -4,414 Interest bearing loans -31,191 Total liabilities -35,605 Net assets acquired 20,679 Consideration paid 20,679 Net cash outflow 20,378 The acquisitions were recognized as a property asset acquisition as acquired companies does not represent a business as deined by IFRS 3. 7. Gross rental income IN EUR THOUSAND 2021 1.1.2019 – 31.12.2020 2020 Industrial 287,328 457,309 240,905 Office 32,531 57,263 31,061 Retail 568 1,842 825 Other 14,224 33,507 19,144 Total rental income 334,651 549,921 291,935 Service charge income 31,112 48,261 25,882 Total gross rental income 365,763 598,182 317,817 CTP leases out its investment property under operating leases. The operating leases are generally for terms of 5 – 15 years. Other gross rental income represents termination fees, rental income from rent of parking slots, garages, yards, porches and cloakrooms. Service charge income represents ixed contractual income receivable from tenants for maintenance, cleaning, security, garbage management and usage of infrastructure. 283 The revenues were generated in the following countries where CTP operates: IN EUR THOUSAND 2021 1.1.2019 – 31.12.2020 2020 Czech Republic 220,036 387,092 201,201 Romania 68,448 100,984 55,281 Hungary 34,998 53,156 28,849 Slovakia 28,623 45,598 25,361 Serbia 8,560 4,332 3,539 Poland 2,510 3,704 1,918 Bulgaria 1,729 27 27 Germany 708 2,982 1,506 Austria 151 307 135 Total gross rental income 365,763 598,182 317,817 8. Revenues from contracts with customers According to requirements of IFRS 15, the revenues related to contract with customers are as follows: IN EUR THOUSAND 2021 1.1.2019 – 31.12.2020 2020 REVENUES ATTRIB- UTABLE EXTERNAL EXPENSES REVENUES ATTRIB- UTABLE EXTERNAL EXPENSES REVENUES ATTRIB- UTABLE EXTERNAL EXPENSES Hotel operating revenue 8,779 23,064 5,752 Hotel operating expenses -11,334 -17,442 -5,897 Net operating income from hotel operations -2,555 5,622 -145 Income from development activities 32,824 53,894 49,411 Expenses from development activities -23,459 -30,911 -26,984 Net income from development activities 9,365 22,983 22,427 Total revenues from contract with customers 41,603 76,958 55,163 Total external expenses related to contract with customers -34,793 -48,353 -32,881 Net income from contract with customers 6,810 28,605 22,282 Net operating income from hotel operations Net operating income from hotel operations is represented by revenues and expenses from operating three hotels in the Czech Republic. All hotels are operated under the Courtyard by Marriott brand. Revenues from hotel operations are represented by very short-term contracts with customers. The hospitality services are invoiced nearly the same time as the respective service is provided. Net income from development activities Net income from development activities represents income from construction project provided by CTP to third party companies, main part of construction represents extras and it outs for tenants. In period from 1 January 2019 to 31 December 2020, the Group has constructed turn key project for third party in Stříbro in the Czech Republic. Total income from development activities includes revenues related to this project of EUR 41,824 thousand and related expenses of EUR 19,484 thousand. 284 9. Property operating expenses IN EUR THOUSAND 2021 1.1.2019 – 31.12.2020 2020 Maintenance and repairs -21,383 -45,189 -22,030 Park Management expenses -8,424 -17,370 -7,664 Real estate tax -6,143 -10,785 -5,337 Insurance -2,342 -3,374 -1,693 Other -618 -1,005 -424 Total property operating expenses -38,910 -77,723 -37,148 The park management expenses represent expenses for utilities, park maintenance, cleaning, security and garbage management provided by external suppliers. These expenses are covered by the service charges that are charged to the tenants. 10. Other income IN EUR THOUSAND 2021 1.1.2019 – 31.12.2020 2020 Gains from sale of assets 2,963 5,842 -- Income from sale of electricity 3,236 6,577 3,326 Other income 4,246 685 684 Total other income 10,445 13,104 4,010 Other income consists mainly from reverse bonus from property insurance and income from assigned receivables. 11. Employee benefits IN EUR THOUSAND 2021 1.1.2019 – 31.12.2020 2020 Wages and salaries -24,140 -30,586 -17,386 Social security contributions -4,604 -6,603 -3,791 Other personnel expenses -3,139 -2,952 -1,792 Total employee benefits -31,883 -40,141 -22,969 The average full time equivalent of employees in 2021 was 463 (2020 – 379) and all except 7 are working outside the Netherlands. WEIGHTED AVERAGE NUMBER OF EMPLOYEES PER SEGMENTS 2021 2020 Czech Republic 258 233 Romania 75 61 Hungary 55 40 Slovakia 36 26 Other 39 19 Total employee number 463 379 The number of equivalent employees working full-time as at 31 December 2021 was 520 (2020 – 394). 285 12. Other expenses (including administrative expenses) IN EUR THOUSAND 2021 1.1.2019 – 31.12.2020 2020 Legal, tax and audit -7,788 -10,862 -7,573 Travel expenses -3,938 -5,000 -2,959 Advertising and promotion expenses -2,454 -4,587 -2,410 Telecommunication expenses -2,008 -3,230 -1,847 Fee for real estate consultants and brokers -1,872 -4,863 -2,575 Energy and material consumption -1,642 -3,091 -1,645 Receivables written off -1,133 -4,088 -2,805 Loss from sale of assets -730 -933 -933 Impairment losses on non-financial assets -584 -4,993 -4,993 Taxes and charges -582 -3,135 -1,881 Penalties -516 -2,011 -1,058 Rent -379 -2,366 -866 Other -2,837 -1,111 -1,576 Total other expenses -26,463 -50,270 -33,121 Other expenses include costs for insurance, gifts and donations. 13. Interest expense IN EUR THOUSAND 2021 1.1.2019 – 31.12.2020 2020 Bank interest expense -25,386 -94,122 -48,689 Interest expense from liabilities due from related parties -385 -5,518 -2,108 Interest expense from financial derivative instruments -5,469 -14,140 -8,255 Arrangement fees -13,523 -8,091 -5,800 Interest expense from bonds issued -26,120 -3,682 -3,682 Interest expense -70,883 -125,553 -68,534 In 2021, the arrangement fees include one of release of arrangement fee related to repaid bank loans of EUR 12,385 thousand (2020 – EUR 0 thousand). 14. Other financial expenses IN EUR THOUSAND 2021 1.1.2019 – 31.12.2020 2020 Bank fees -4,563 -8,468 -5,065 Financing fees -33,061 -18,730 -6,358 Other financial expenses -496 -247 -78 Other financial expenses -38,120 -27,445 -11,501 In 2021, the inancing fees include prepayment fee of EUR 16,629 thousand for premature loan repayments and fee for early repayment of bonds of EUR 12,080 thousand (refer to Note 27). In 2020, the inancing fees include prepayment fee of EUR 3,095 thousand for premature loan repayments from bonds issued in October and November 2020 (refer to Note 27). 286 15. Other financial gains/(losses) IN EUR THOUSAND 2021 1.1.2019 – 31.12.2020 2020 Change in FMV of derivatives and associated close out costs 12,127 -73,266 -40,272 Foreign exchange gains/(losses) -5,306 5,983 17,866 Other financial gains/ (losses) 71 95 27 Other financial gains/(losses) 6,892 -67,188 -22,379 Premature termination fees of derivatives connected with the reinancing of interest-bearing loans and borrowings from inancial institutions with money raised from the issuing of bonds in 2021 amounted to EUR 22,599 thousand (2020 – EUR 18,817 thousand). Due to the premature termination of the derivatives related to the reinancing of the Czech industrial Portfolio an amount of EUR 31,705 thousand has been paid in June 2019. 16. Income tax expense IN EUR THOUSAND 2021 1.1.2019 – 31.12.2020 2020 Current tax income/(expense) related to Current year -25,735 -41,063 -23,736 Prior period -2,669 -2,045 -1,562 Total -28,404 -43,108 -25,298 Deferred tax expense Deferred tax expense -222,350 -103,341 -12,603 Total -222,350 -103,341 -12,603 Total income tax expense in statement of profit and loss and other comprehensive income -250,754 -146,449 -37,901 The Company believes that its accruals for tax liabilities are adequate for all open tax years based on its assessment of many factors, including interpretations of tax law and prior experience. Reconciliation of efective tax rate 2021 1.1.2019 – 31.12.2020 2020 IN EUR THOUSAND TAX BASE TAX TAX BASE TAX TAX BASE TAX Profit / Loss before income tax 1,276,690 319,172 791,134 197,783 290,425 72,606 Company's domestic tax rate 25.0% 25.0% 25.0% Tax non-deductible expenses 26,701 6,675 96,588 24,147 31,847 7,962 Tax exempt income -9,439 -2,360 -12,770 -3,193 -11,795 -2,949 Income tax adjustment for prior years 10,676 2,669 9,720 2,430 9,720 2,430 Effect of unrecognised deferred tax asset related to tax losses (including current year losses) 123 31 -- -- -- -- Effect of tax rates in foreign jurisdictions -- -98,410 -- -55,443 -- -21,075 Other items 91,905 22,976 -77,101 -19,275 -84,294 -21,073 Tax base 1,396,656 250,754 807,570 146,449 235,903 37,901 Effective income tax rate 19.6% 18% 16% Tax non-deductible expenses represents receivables written of, representation expenses, tax non-deductible accruals (legal, advisory), inancial expenses, penalties and gifts provided. 287 Other items result mainly from the translation of transactions in foreign currencies to the functional currency of the Group entities 17. Investment property IN EUR THOUSAND 2021 2020 Buildings and land 7,048,269 5,060,285 industrial 6,445,781 4,462,367 office 549,300 550,937 retail and other 53,188 46,981 Landbank 526,838 325,945 Total 7,575,107 5,386,230 IN EUR THOUSAND OWNED BUILDINGS AND LAND LANDBANK RIGHT-OF-USE ASSETS TOTAL INVESTMENT PROPERTY Balance at 1 January 2020 4,424,143 295,198 2,017 4,721,358 Transfer from/to investment property under development 239,920 14,173 -- 254,093 Transfer from/to owned buildings and land 6,971 -6,971 -- -- Acquisitions 97,424 5,823 -- 103,247 Additions / Disposals 242,036 7,673 -- 249,709 Net valuation result 47,774 10,049 -- 57,823 Balance at 31 December 2020 5,058,268 325,945 2,017 5,386,230 Balance at 1 January 2021 5,058,268 325,945 2,017 5,386,230 Transfer from/to investment property under development 362,701 -13,144 -- 349,557 Transfer from/to owned buildings and land 22,548 -22,548 -- -- Acquisitions 495,376 87,625 -- 583,001 Additions / Disposals 341,693 105,536 -- 447,229 Net valuation result 765,666 43,424 -- 809,090 Balance at 31 December 2021 7,046,252 526,838 2,017 7,575,107 IN EUR THOUSAND OWNED BUILDINGS AND LAND LANDBANK RIGHT-OF-USE ASSETS TOTAL INVESTMENT PROPERTY Balance at 1 January 2019 3,744,869 277,082 2,017 4,023,968 Transfer from/to investment property under development 339,958 36,557 -- 376,515 Transfer from/to owned buildings and land 12,898 -12,898 -- -- Acquisitions 197,362 8,979 -- 206,341 Additions / Disposals 449,781 8,340 -- 458,121 Net valuation result 313,400 7,885 -- 321,285 Balance at 31 December 2020 5,058,268 325,945 2,017 5,386,230 Owned buildings and land represent assets in CTP’s legal ownership. The landbank comprises the plots of land in CTP’s ownership, which are available for development of new projects. Investment property comprises a number of commercial properties that are leased to third parties. Part of owned buildings and land are subject to bank collateral (refer to Note 36). Acquisitions represents asset deal under acquisition of subsidiaries (refer to Note 6) and acquisitions of properties under asset deal agreements. The most signiicant investment property additions in 2021 relate to completed construction of industrial properties in Plzeň, Žatec, Ostrov u Tachova and Nošovice in Czech Republic, Trnava, Nitra and Kosice in Slovakia, and in Turda and Sibiu in Romania, oice premises in Brno and in Bucharest in Romania, industrial premises in Budapest and Vecses in Hungary and in Kragujevac in Serbia. 288 Disposal of investment property in 2021 relate to sale of properties in Czech Republic to external partners. The most signiicant investment property additions in 2020 relate to completed construction of industrial properties in Ostrava, Prague, Plzeň and Blatnice in the Czech Republic, in Trnava and Nitra in Slovakia, in Budapest in Hungary, in Bucharest in Romania and in Belgrade and Novi Sad in Serbia. The most signiicant investment property additions in 2019 relate to completed construction of oice facility in Brno, industrial properties in Žatec, Cerhovice, Nupaky and Plzeň in the Czech Republic and in Kragujevac in Serbia. Disposal of investment property in 2020 relate to sale of properties in Germany and Ukraine to external partners. Disposal of investment property in 2019 relate to sale of industrial property and land to external partners. Fair value hierarchy The fair value measurement for investment property has been categorized as Level 3 recurring fair value based on the inputs to the valuation technique used in accordance with IFRS 13. There were no transfers between Levels during the year. Management’s adjustments made in respect of valuations appraisals The management of CTP did not make any adjustments to valuation prepared by independent external valuer as at 31 December 2021. The table below presents the portion of the investment property portfolio as at 31 December 2021 valued by external valuer: IN EUR THOUSAND 2021 Investment property portfolio valued by external valuer 7,364,990 Investment property portfolio at acquisition value 210,117 Total 7,575,107 Valuation During 2021 the Group changed the valuation technique related to the valuation of buildings from Discounted cash low method to Income capitalization method. Both methods are standard valuation methods and provide comparable results. The change in the method is related to the assignment of new external valuer. For details refer to below. Building valuation 2021 In order to value investment property, external valuer has adopted a traditional valuation method, speciically the hardcore method. Within the hardcore method the income considered to be sustainable (e.g. all income at or below market levels) is capitalised at a certain level, and the “top slice” or “froth” e.g. any over-rented elements is capitalised at a separate rate until lease expiry. This enables a separate risk proile to be attached to the “riskier” over-rented element, as appropriate. The capitalisation rates applied are implicit in terms of rental growth and most other risks, although external valuer has been explicit in their calculations in terms of voids and costs. Valuations relect, where appropriate, the type of tenants actually in occupation or responsible for meeting the lease commitments or likely to be in occupation after letting vacant accommodation 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. It has been assumed that whenever rent reviews or lease renewals are pending with anticipated reversionary increases, all notices, and where appropriate counter notices, have been served validly and within the appropriate time. 289 The assumptions used by the independent valuer for the year ended 31 December were as follows: CORE YIELD COUNTRY AVERAGE LOWER UPPER Czech Republic 5.09% 3.75% 10.70% Hungary 6.32% 5.50% 7.75% Romania 7.45% 7.00% 8.50% Slovakia 5.85% 3.50% 9.00% Other 7.81% 5.20% 9.40% All 5.76% 3.50% 10.70% CORE YIELD SECTOR AVERAGE LOWER UPPER Offices 6.19% 5.75% 9.70% Industrial/other 5.73% 3.50% 10.70% COUNTRY AVERAGE ERV PER M AND MONTH (EUR) Czech Republic 5.6 Hungary 4.6 Romania 3.9 Slovakia 4.1 Other 5.0 All 4.9 SECTOR AVERAGE ERV PER M AND MONTH (EUR) Offices 13.3 Industrial/other 4.6 Structural vacancy has been applied in a very few cases only and mainly to oice and ancillary areas. Building valuation 2020/2019 The valuations are prepared by considering the aggregate of the net annual rents receivable from the properties, and where relevant, associated costs. A yield which relects the risks inherent in the net cash lows is then applied to the net annual rentals to arrive at the property valuation. In view of the nature of the properties and the bases of valuation, the valuer adopted the Income Approach based on the discounted cash low technique for a 10-year period. The cash low assumes a 10-year holding period with the exit value calculated on the 11th year income. The cash low is based on the rent receivable under existing lease agreements until their expiry date and the expected rental value for the period remaining in the 10-year period, as applicable. The valuer has based his opinion of the Estimated Rental Value (ERV) on this. Valuations relect, where appropriate, the type of tenants actually in occupation or responsible for meeting the lease commitments or likely to be in occupation after letting vacant accommodation 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. It has been assumed that whenever rent reviews or lease renewals are pending with anticipated reversionary increases, all notices, and where appropriate counter notices, have been served validly and within the appropriate time. 290 The assumptions used by the independent valuer for the year ended 31 December were as follows: 2020 EXIT YIELD 2019 EXIT YIELD COUNTRY AVERAGE LOWER UPPER AVERAGE LOWER UPPER Czech Republic 5.87% 5.25% 9.50% 5.93% 5.50% 9.50% Hungary 7.23% 6.90% 8.00% 7.33% 7.00% 8.00% Romania 7.82% 7.40% 11.00% 7.82% 7.50% 11.00% Slovakia 7.00% 6.35% 7.50% 6.98% 6.35% 7.55% Other 7.82% 5.50% 8.75% 7.77% 6.50% 9.00% All 6.42% 5.25% 11.00% 6.39% 5.50% 11.00% 2020 EXIT YIELD 2019 EXIT YIELD SECTOR AVERAGE LOWER UPPER AVERAGE LOWER UPPER Offices 6.35% 5.50% 11.00% 6.38% 6.00% 11.00% Industrial/other 6.43% 5.25% 11.00% 6.39% 5.50% 9.50% Ongoing Vacancy 0.00% - 5.00% 0.00% - 5.00% AVERAGE ERV PER M AND MONTH (EUR) COUNTRY 2020 2019 Czech Republic 5.2 5.3 Hungary 4.1 3.9 Romania 4.0 4.2 Slovakia 4.2 4.4 Other 3.8 4.5 All 4.7 4.8 AVERAGE ERV PER M AND MONTH (EUR) SECTOR 2020 2019 Offices 11.7 11.9 Industrial/other 4.3 4.4 Any gain or loss arising from a change in fair value is recognized in the statement of proit and loss. The land on which the buildings are being constructed and qualifying as investment property upon construction completion is classiied as investment property and hence recorded at fair value. 291 Landbank The landbank comprises the plots of land in CTP’s ownership, on which development projects are to be carried out. The land bank has been valued by a registered independent valuer with an appropriately recognized professional qualiication and with an up–to–date knowledge and understanding of the location and category of the property. For land assets, valuer in 2021 applied the residual or the market comparison method or both, as appropriate. The residual method assumes the property’s value equates to the end value of the property once developed, less the costs of realization, which may include site assembly and purchase, demolition, build costs, professional fees, planning, inance and marketing costs and developer’s proit. The market comparison utilises sales information in terms of sites of a similar type, size and in a similar location, where a similar development is possible. 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 diference between the subject property and the comparable sales by considering various elements of comparison. The assumptions of the independent valuer for the year ended 31 December were based on analysis of comparable evidence and adopted the following average market values per square meter: 2021 2020 2019 Czech Republic 48 EUR 45 EUR 42 EUR Slovak Republic 42 EUR 38 EUR 36 EUR Hungary 76 EUR 37 EUR 27 EUR Serbia 57 EUR 30 EUR 28 EUR Romania 32 EUR 28 EUR 27 EUR Poland 39 EUR 20 EUR 26 EUR Bulgaria 42 EUR 41 EUR N/A Slovenia 78 EUR 75 EUR N/A Netherlands 26 EUR N/A N/A The investment property is located in the following countries where CTP operates: IN EUR THOUSAND 2021 2020 Czech Republic 4,517,045 3,543,874 Romania 1,326,691 943,630 Hungary 758,453 371,820 Slovakia 595,995 362,940 Serbia 155,916 87,071 Poland 83,103 45,390 Netherlands 62,091 -- Bulgaria 57,620 16,482 Germany 8,813 6,353 Slovenia 6,200 5,970 Austria 3,180 2,700 Total 7,575,107 5,386,230 292 Sensitivity analysis on changes in assumptions of investment property valuation CTP performed a sensitivity analysis on changes in investment property valuation except for land bank investment property as it is valued by comparable method. The table below presents the sensitivity of proit and loss before tax as at 31 December 2021 and 31 December 2020 due to changes in assumptions: COMPLETED INVESTMENT PROPERTIES AS AT 31 DECEMBER 2021 IN EUR THOUSAND CURRENT AVERAGE YIELD CURRENT MARKET VALUE * INCREASED YIELD BY 25BP FMV BASED UPON IN- CREASED YIELD EFFECT OF INCREASE IN YIELD BY 25BP Increase of 25bp in reversionary yield 6.36% 6,866,252 6.61% 6,606,673 -259,578 CURRENT AVERAGE YIELD CURRENT MARKET VALUE * DECREASED YIELD BY 25BP FMV BASED UPON DECREASED YIELD EFFECT OF DECREASE IN YIELD BY 25BP Decrease of 25bp in reversionary yield 6.36% 6,866,252 6.11% 7,147,062 280,811 CURRENT RENTAL INCOME INCLUDING ERV FROM VA- CANT SPACE DECREASE RENTAL INCOME BY 500BP FMV BASED UPON DE- CREASED RENTAL INCOME EFFECT OF DECREASE IN RENTAL INCOME BY 500BP EFFECT OF INCREASE IN RENTAL INCOME BY 500BP Change of 500bp in estimated rental income 436,892 415,047 6,522,939 -343,313 343,313 COMPLETED INVESTMENT PROPERTIES AS AT 31 DECEMBER 2020 IN EUR THOUSAND CURRENT AVERAGE YIELD CURRENT MARKET VALUE * INCREASED YIELD BY 25BP FMV BASED UPON IN- CREASED YIELD EFFECT OF INCREASE IN YIELD BY 25BP Increase of 25bp in reversionary yield 6.89% 5,037,618 7.14% 4,861,344 -176,274 CURRENT AVERAGE YIELD CURRENT MARKET VALUE * DECREASED YIELD BY 25BP FMV BASED UPON DECREASED YIELD EFFECT OF DECREASE IN YIELD BY 25BP Decrease of 25bp in reversionary yield 6.89% 5,037,618 6.64% 5,213,892 176,274 CURRENT RENTAL INCOME INCLUDING ERV FROM VA- CANT SPACE DECREASE RENTAL INCOME BY 500BP FMV BASED UPON DE- CREASED RENTAL INCOME EFFECT OF DECREASE IN RENTAL INCOME BY 500BP EFFECT OF INCREASE IN RENTAL INCOME BY 500BP Change of 500bp in estimated rental income 347,323 329,957 4,785,737 -251,881 251,881 * Sensitivity analysis is calculated on standing portfolio of the Group excluding fair market values of commercial element of hotels operated in the Czech Repub- lic of EUR 20,140 thousand in 2021 (2020 – EUR 20,650 thousand). 18. Investment property under development IN EUR THOUSAND 2021 1.1.2019 – 31.12.2020 2020 Balance at 1 January 387,347 315,357 440,727 Additions/disposals 140,895 202,274 98,375 Acquisitions 285,796 8,579 7,999 Right-of-use assets 18,241 -- -- Transfer from/to Investment property -349,557 -376,515 -254,093 Net valuation result 291,481 237,652 94,339 Balance at 31 December 774,203 387,347 387,347 The investment property under development comprises pipeline projects in several stages of completion and of land with planning permits in place which is still to be constructed but where pre-agreements with future tenants are available. The management estimates that all of the pipeline projects will be completed in the coming 12 months. 293 Right-of-use assets in investment property under development comprise leased land in the Netherlands under the acquired project CTP ALC B.V. of EUR 16,990 thousand and land in Romania of EUR 1,251 thousand in CTPARK IOTA SRL. The investment property under development is located in the following countries where CTP operates: IN EUR THOUSAND 2021 2020 Netherlands 285,095 -- Czech Republic 201,175 246,245 Hungary 89,334 68,579 Austria 3 1,714 -- Romania 62,950 32,199 Slovakia 48,621 24,180 Poland 37,735 895 Serbia 10,727 14,055 Bulgaria 6,852 1,194 Total 774,203 387,347 Fair value hierarchy The fair value measurement for investment property under development has been categorized as Level 3 recurring fair value based on the inputs to the valuation technique used in accordance with IFRS 13. There were no transfers between Levels during the year. Valuation 2021 The development assets have been valued through a combination of the traditional and residual methods. The traditional method is applied to determine a Gross Development Value, which is a component of the residual method which we ultimately apply to determine fair value. This approach assumes the property’s value equates to the end value of the property once developed, less the costs of realization, which may include site assembly and purchase, demolition, build costs, professional fees, planning, inance and marketing costs and developer’s proit. In assessing the Gross Development Value, the valuer adopted a market approach by estimating the market rental values for the accommodation to be developed, and the appropriate capitalisation rate which a potential investor would require, to arrive at the Fair Value of the completed and leased building. The assumptions used by the independent valuer for the year ended 31 December were as follows: 2021 2020 2019 Capitalization rates 4.25% – 9.00% 5.25% – 9.25% 5.25% – 9.00% ERV per sqm - Industrial premises 3.50 – 8.33 EUR 3.55 – 4.75 EUR 3.50 – 6.00 EUR - Office properties 6.50 – 14.00 EUR 13.75 – 14.25 EUR 13.75 EUR Soft costs 3.00% – 15.00% 7.00% – 10.00% 8.00% – 10.00% Finance costs 3.50% – 5.00% 2.75% 4.00% – 8.00% Profit allowance 5.00% – 30.00% 7.50% – 25.00% 20.00% – 25.00% Structural vacancy has been applied in a very few cases only and mainly to oice and ancillary areas. Estimated rental value of industrial premises slightly decreased in 2020 due to change in structure of constructed portfolio of asset required by CTP tenants. 294 Sensitivity analysis on changes in assumptions of investment property under development valuation CTP performed a sensitivity analysis on changes in investment property under development valuation. The table below presents the sensitivity of proit and loss before tax as at 31 December 2021 and 31 December 2020: INVESTMENT PROPERTIES UNDER DEVELOPMENT AS AT 31 DECEMBER 2021 IN EUR THOUSAND CURRENT AVERAGE YIELD CURRENT MARKET VALUE AT COMPLETION INCREASED YIELD BY 25BP FMV BASED UPON INCREASED YIELD EFFECT OF INCREASE IN YIELD BY 25BP Increase of 25bp in reversionary yield 6.14% 1,102,406 6.39% 1,059,289 -43,117 CURRENT AVERAGE YIELD CURRENT MARKET VALUE AT COMPLE- TION DECREASED YIELD BY 25BP FMV BASED UPON DECREASED YIELD EFFECT OF DECREASE IN YIELD BY 25BP Decrease of 25bp in reversionary yield 6.14% 1,102,406 5.89% 1,145,523 43,117 CURRENT RENTAL INCOME INCLUDING ERV FROM VACANT SPACE DECREASE RENTAL INCOME BY 500BP FMV BASED UPON DECREASED RENTAL INCOME EFFECT OF DECREASE IN RENTAL INCOME BY 500BP EFFECT OF INCREASE IN RENTAL INCOME BY 500BP Change of 500bp in estimated rental income 67,710 64,324 1,047,286 -55,120 55,120 INVESTMENT PROPERTIES UNDER DEVELOPMENT AS AT 31 DECEMBER 2020 IN EUR THOUSAND CURRENT AVERAGE YIELD CURRENT MARKET VALUE AT COMPLETION INCREASED YIELD BY 25BP FMV BASED UPON INCREASED YIELD EFFECT OF INCREASE IN YIELD BY 25BP Increase of 25bp in reversionary yield 6.63% 571,700 6.88% 550,926 -20,774 CURRENT AVERAGE YIELD CURRENT MARKET VALUE AT COMPLE- TION DECREASED YIELD BY 25BP FMV BASED UPON DECREASED YIELD EFFECT OF DECREASE IN YIELD BY 25BP Decrease of 25bp in reversionary yield 6.63% 571,700 6.38% 592,474 20,774 CURRENT RENTAL INCOME INCLUDING ERV FROM VACANT SPACE DECREASE RENTAL INCOME BY 500BP FMV BASED UPON DECREASED RENTAL INCOME EFFECT OF DECREASE IN RENTAL INCOME BY 500BP EFFECT OF INCREASE IN RENTAL INCOME BY 500BP Change of 500bp in estimated rental income 37,885 35,991 543,115 -28,585 28,585 An increase of developers’ proit mark-up by 2% in valuers’ assumptions will increase the developers proit and as a consequence will decrease the valuation as at 31 December 2021 by EUR 7,591 thousand (31 December 2020 – EUR 13,098 thousand) provided all other variables remain constant. 19. Net valuation result on investment property Reconciliation of valuation gains/losses recognized in statement of comprehensive income: IN EUR THOUSAND 2021 1.1.2019 – 31.12.2020 2020 Valuation gains 1,189,211 676,582 231,603 out of which: Investment Property 885,510 407,730 109,544 Investment Property under development 303,701 268,852 122,059 Valuation losses -88,640 -117,645 -79,441 out of which: Investment Property -76,420 -86,445 -51,721 Investment Property under development -12,220 -31,200 -27,720 Net valuation gains (- losses) on investment property 1,100,571 558,937 152,162 295 20. Property, plant and equipment IN EUR THOUSAND HOTELS LEASED PROPERTY PLANT EQUIPMENT 2021 2020 Balance at 1 January 55,400 3,814 17,761 21,909 98,884 117,090 Transfer from Assets held for sale -- -- -- -- -- -- Transfer from investment property -- -- -- -- -- -- Acquisitions -- -- -- 6 6 34 Additions / Disposals 3,248 1,296 -- 9,383 13,927 3,280 Valuation gain/loss on solar plants and hotels 378 -- 8,462 -- 8,840 -8,536 Depreciation -1,539 -674 -1,169 -5,075 -8,457 -8,303 Impairment loss -2,233 -- -- -- -2,233 -4,681 Balance at 31 December 55,254 4,436 25,054 26,223 110,967 98,884 Under Plant are presented the solar plants installed on the roofs of several buildings. The value of EUR 25,054 thousand (2020 – EUR 17,761 thousand) represents the fair value of the solar panels based upon the independent valuation report. The value of EUR 55,254 thousand (2020 – EUR 55,400 thousand) represents the fair value of the hotels based upon the independent valuation report. The valuation is prepared on the basis of “Fair Value” in accordance with IFRS 13 and has been primarily derived using the discounted cashlow methodology as well as the income capitalization approach and comparable recent market transactions on arm’s length terms. Given the uncertainties relating to the Covid-19 virus and the current restrictions on business activities, possibly there could be a decline in demand for hotels accommodation and a resulting decrease in hotel operating revenues. Valuation In view of the nature of the solar plants and the bases of valuation, the valuer adopted the Income Approach based on the discounted cash low technique for a 20-year period. The cash low is based on the income receivable under the license provided by the government. For the calculation of the market value of solar energy power panels the discount rate of 9% was used. In view of the nature of the hotels and the bases of valuation, the valuer adopted the discounted cash low method. Under this method the projected adjusted net operating income for the hotel over 10 years are discounted back to present day using an appropriate discount rate. The value of the hotel derived from the capitalized earnings in the 10th year is also brought back to present values. Capital expenditure is built into the cash low if appropriate. Capitalization rates used in hotel valuation is in range from 6.75% to 7.25%. Sensitivity analysis on changes in assumptions of hotel valuation CTP performed a sensitivity analysis on changes in EBITDA to changes in Revenues per available room. The table below presents the sensitivity of EBITDA as at 31 December 2021, due to changes in assumptions: IN EUR THOUSAND CURRENT EBITDA EFFECT OF DECREASE IN REVPAR BY 5 % EFFECT OF INCREASE IN REVPAR BY 5 % 5% Change in RevPAR 363 -223 223 CTP performed a sensitivity analysis on changes in EBITDA to changes in Revenues per available room. The table below presents the sensitivity of EBITDA as at 31 December 2020, due to changes in assumptions: IN EUR THOUSAND CURRENT EBITDA EFFECT OF DECREASE IN REVPAR BY 5 % EFFECT OF INCREASE IN REVPAR BY 5 % 5% Change in RevPAR 5,745 -1,253 1,253 Under Equipment in the amount of EUR 26,223 thousand (2020 – EUR 21,909 thousand) the real estate infrastructure (roads, greenery, energy transformers etc.) including related equipment, and means of transport are presented. 296 Property, plant and equipment includes also right-of-use assets of EUR 4,436 thousand (2020 – EUR 3,814 thousand) related to leased properties that do not meet deinition of investment property (refer to Note 29). 21. Trade and other receivables Non-current IN EUR THOUSAND 2021 2020 Long term advances paid 97,014 2,182 Restricted cash 1,086 9,588 Other assets 2,639 26 Total trade and other receivables 100,739 11,796 Non-current trade and other receivables consist primarily of long-term advances paid for land and tangible assets. CTP paid in 2021 an advance payment of EUR 1.9 million for assistance and advisory services related to potential future land acquisitions in Hungary from a third party. CTP conducted standard compliance check including an AML check, due diligence and evaluated risks of this potential transaction (including all risks for the case of involvement of former / current government oicial in relation to the third party), in order to conclude whether the commission fee is according to CTP’s standards and agreed transaction price for the land is at arm’s length and to have suiciently evaluated risks in accordance with CTP internal policies. Current IN EUR THOUSAND 2021 2020 Trade receivables 36,417 24,491 Other assets 61,771 32,325 Other tax receivables 45,894 11,125 Total trade and other receivables 144,082 67,941 The trade receivables consist primarily of receivables from rent and rent related income. Current other assets consist primarily of deferrals of EUR 5,110 thousand (2020 – EUR 4,412 thousand), advance payments and accrued income of EUR 35,182 thousand (2020 – EUR 7,101 thousand) and prepayments of EUR 21,479 thousand (2020 – EUR 20,812 thousand). Short-term receivables overdue more than 6 months total EUR 3,143 thousand (2020 – EUR 2,909 thousand). Total expected credit losses are of EUR 4,137 thousand (2020 – EUR 3,257 thousand). Trade and other receivables can be analysed as follows whereas the weighted average loss rate is determined as actual credit losses over the past two years: Other tax receivables consist primarily of value added tax receivables of EUR 45,692 thousand (2020 – EUR 10,667 thousand). 297 AS AT 31 DECEMBER 2021 IN EUR THOUSAND WEIGHTED AVERAGE LOSS RATE GROSS CARRYING AMOUNT LOSS ALLOWANCE NET CARRYING AMOUNT CREDIT-IMPAIRED Current (not past due) 0.93% 27,034 -252 26,782 No 1 -30 days past due 3.22% 8,140 -262 7,878 No 31 - 60 days past due 17.92% 904 -162 742 No 61 - 90 days past due 38.85% 592 -230 362 No 91 - 182 days past due 46.83% 741 -347 394 No 184 - 365 days past due 73.71% 985 -726 259 Yes Paid in more than 365 days past due 100.00% 2,158 -2,158 -- Yes Balance at 31 December 40,554 -4,137 36,417 AS AT 31 DECEMBER 2020 IN EUR THOUSAND WEIGHTED AVERAGE LOSS RATE GROSS CARRYING AMOUNT LOSS ALLOWANCE NET CARRYING AMOUNT CREDIT-IMPAIRED Current (not past due) 1.78% 17,496 -310 17,186 No 1 -30 days past due 3.18% 5,689 -181 5,508 No 31 - 60 days past due 14.95% 209 -31 178 No 61 - 90 days past due 36.97% 730 -270 460 No 91 - 182 days past due 46.48% 715 -332 383 No 184 - 365 days past due 62.04% 1,006 -624 382 Yes Paid in more than 365 days past due 79.24% 1,903 -1,509 394 Yes Balance at 31 December 27,748 -3,257 24,491 22. Cash and cash equivalents Cash and cash equivalents of EUR 892,816 thousand (2020 – EUR 419,141 thousand) consist primarily of short- term deposits of EUR 700,000 thousand (2020 – EUR 295,000 thousand) and cash at bank accounts of EUR 192,682 thousand (2020 – EUR 124,057 thousand). Restricted cash amounts to EUR 1,086 thousand (2020 – EUR 9,588 thousand) and is presented under non- current trade and other receivables. Restricted cash represents balances on debt service reserve accounts. 23. Equity Issued capital As at 31 December 2021, the issued capital comprised of the following: TYPE OF SHARES NO. OF SHARES NOMINAL VALUE OF SHARE ISSUED CAPITAL IN EUR Ordinary shares 400,392,810 EUR 0.16 64,062,850 As at 31 December 2018 and 2019 respectively, the issued capital consisted of 100 ordinary shares with nominal value of share of EUR 0.01. In April 2020, the Company issued share capital amounted to EUR 200 thousand divided into 20,000,000 shares with nominal value of EUR 0.01. Increase of share capital by EUR 200 thousand was paid in cash as capital contribution. Nominal value of share was increased to EUR 0.16 per share and share capital increased to EUR 3,200 thousand. In December 2020, an additional 316,000,000 shares were issued, with the nominal value of EUR 0.16 per share. 298 As at 31 December 2020, the issued capital comprised of the following: TYPE OF SHARES NO. OF SHARES NOMINAL VALUE OF SHARE ISSUED CAPITAL IN EUR Ordinary shares 336,000,000 EUR 0.16 53,760,000 As at 29 March 2021, an additional 61,017,000 shares were issued, with nominal value of EUR 0.16 per share. As at date of issuance of new shares, on 29 March 2021, the Company has emitted its shares on Amsterdam’s stock exchange. On 17 August 2021, CTP N.V. announced a H1 2021 interim dividend of EUR 0.17 per share. Shareholders were given the choice to receive the interim dividend either in cash or shares. The number of dividend rights that entitles to 1 new ordinary CTP share has been set at 108. The conversion ratio is based on the volume-weighted average price of the CTP share during the period from 26 August up to and including 30 August 2021. Shareholders representing 92% of the total number of outstanding ordinary shares have chosento receive the dividend in stock, while shareholders representing 8% of the total number of outstanding ordinary shares opted for payment in cash. Based on the conversion ratio and after delivery of the ordinary shares due to the conversion of dividend rights, the total number of outstanding ordinary shares increased by 3,375,810 to a total of 400,392,810 shares. The payment date for the dividend payment in cash and delivery of the ordinary shares has been set on 22 September 2021. Share premium In 2019, addition Share premium of EUR 828,682 thousand represents contribution of parent company for the Group restructuring purposes. Decrease of share premium of EUR 138,921 thousand represents distribution of funds due to restructuring of the Group. These transactions were on non-cash basis. In 2020, share capital increased of EUR 53,760 thousand from the reserves. Based on a shareholders resolution dated 10 January 2020 a repayment of share premium of EUR 12,500 thousand in cash has been made to Multivest B.V. As at 31 December 2020, share premium consisted of contribution of parent Company for the acquisition of CTP Invest, spol. s r.o. and CTP Property B.V. including its subsidiaries of EUR 1,858,460 thousand. In 2021, after emission of shares on Amsterdam’s stock exchange, there is an increase of EUR 809,572 thousand, which comprise of EUR 844,476 thousand of cash acquired and capitalised IPO costs of EUR 34,904 thousand. In September 2021, decrease in Share premium of EUR 6,053 thousand is connected with announced interim dividends. Translation reserve The translation reserve comprises all foreign exchange diferences arising from the translation of the inancial statements from the functional to the presentation currency (refer to Note 3f). Proit distribution In 2021, the group has paid dividends of EUR 67,492 thousand, out of which EUR 5,513 thousand were paid in cash and the rest of dividends were paid in form of new shares. There was no proit distribution in 2019 and 2020. 299 24. Earnings per share Basic earnings per share The calculation of basic earnings per share has been based on the following proit attributable to ordinary shareholders and weighted-average number of ordinary shares outstanding. IN EUR THOUSAND 1.1.2021 - 31.12.2021 1.1.2019 – 31.12.2020 1.1.2020 - 31.12.2020 Profit/(loss) attributable to Equity holders of the Company 1,025,936 644,293 252,118 Dividends on non-redeemable preference shares -- -- -- Profit/(loss) attributable to ordinary shareholders 1,025,936 644,293 252,118 1.1.2021 - 31.12.2021 1.1.2019 – 31.12.2020 1.1.2020 - 31.12.2020 Issued ordinary shares at 1 January 336,000,000 100 100 Effect of shares issued related to a business combination -- -- -- Effects of shares issued in 2020/2021 47,407,350 8,257,600 16,515,000 Weighted-average number of ordinary shares at 31 December 383,407,350 8,257,700 16,515,100 Earnings per share 2.68 1.92 0.75 The denominator in the calculation of basic EPS for year 2021 is the weighted average number of ordinary shares as at 31 December 2021. The denominator in the calculation of basic EPS for periods ending 2020 is the number of ordinary shares as at 31 December 2020. The resulting EPS data is pro forma rather than historical but is comparable over the years/period presented. Diluted earnings per share The calculation of diluted earnings per share has been based on the following proit attributable to ordinary shareholders and weighted-average number of ordinary shares outstanding after adjustment for the efects of all dilutive potential ordinary shares. IN EUR THOUSAND 1.1.2021 - 31.12.2021 1.1.2019 – 31.12.2020 1.1.2020 - 31.12.2020 Profit (loss) attributable to Equity holders of the Company (basic) 1,025,936 644,293 252,118 Interest expense on convertible notes, net of tax -- -- -- Profit/(loss) attributable to ordinary shareholders 1,025,936 644,293 252,118 2021 1.1.2019 – 31.12.2020 2020 Weighted-average number of ordinary shares (basic) 383,407,350 8,257,700 16,515,100 Effect of conversion of convertible notes -- -- -- Effect of share options on issue -- -- -- Weighted-average number of ordinary shares (diluted) at 31 December 383,407,350 8,257,700 16,515,100 300 25. Non-controlling interest As at 31 December 2021 non-controlling interest (NCI) in the consolidated companies of the Group was EUR 0 thousand (2020 – EUR 1,031 thousand). In 2021, the Group has acquired additional 10% ownership interest in its subsidiary from CTP Holding B.V. In 2021, the Group has acquired 90.1% ownership interest in CTP Delta B.V. Net asset value as at 31 December 2021 is of EUR 2 thousand and non-controlling interest is EUR 0 thousand. IN EUR THOUSAND 2020 NCI year end percentage 10.00% Non-current assets 12,745 Current assets 10,733 Non-current liabilities -8,228 Current liabilities -4,938 Net assets 10,312 Net assets attributable to NCI 1,031 Revenue 1,040 Profit 4,060 Other comprehensive income -- Total comprehensive income 4,060 Other Adjustment in profit loss allocated to NCI -- Profit/(loss) allocated to NCI 406 OCI allocated to NCI -- 26. Interest-bearing loans and borrowings from financial institutions IN EUR THOUSAND 2021 2020 Non-current liabilities Interest-bearing loans and borrowings from financial institutions 1,115,412 2,203,279 Accrued arrangement fees -4,941 -11,280 Balance at 31 December 1,110,471 2,191,999 IN EUR THOUSAND 2021 2020 Current liabilities Interest-bearing loans and borrowings from financial institutions 23,186 162,616 Accrued arrangement fees -2,353 -2,328 Balance at 31 December 20,833 160,288 301 Residual maturity of loans and borrowings from inancial institutions as at 31 December 2021 and 31 December 2020 is as follows: BALANCE AS AT 31 DECEMBER 2021 DUE WITHIN DUE IN TOTAL IN EUR THOUSAND 1 YEAR 2 YEARS 3-5 YEARS FOLLOW. YEARS Interest-bearing loans and borrowings from financial institutions 23,186 26,710 111,998 976,704 1,138,598 BALANCE AS AT 31 DECEMBER 2020 DUE WITHIN DUE IN TOTAL IN EUR THOUSAND 1 YEAR 2 YEARS 3-5 YEARS FOLLOW. YEARS Interest-bearing loans and borrowings from financial institutions 162,616 140,996 455,963 1,606,320 2,365,895 Interest rates for loans and borrowings in 2021 are based on EURIBOR, plus margins that vary from 0.53% to 1.60% (2020 – from 1.01% to 3.78%), except for the bank loans provided by Aareal Bank A.G. of EUR 383,164 thousand with ixed interest rate of 1.90%, syndicated loan provided by Komerční banka, a.s. of EUR 598,500 thousand with ixed interest rate of 1.55% and loans provided by Tatra banka, a.s. of EUR 65,972 thousand with ixed interest rates from 1.1% to 1.45%. All of the Group’s interest-bearing loans and borrowings from inancial institutions have, among others, loan- to-value and debt service coverage ratio covenants. As at 31 December 2021 there was no breach of covenant conditions. Bank loans are secured by pledges of shares, real estate, receivables and cash at bank accounts. The share pledges related to interest-bearing loans are described in Note 36. Bank loans of EUR 1,971,259 thousand (2020 – EUR 555,463 thousand) were repaid in 2021 from bonds issued in the year 2020 and 2021. In September 2021, the Group received syndicated bank loan of EUR 600,000 thousand, with ixed interest rate of 1.55% due in 2031. In 2021, the Company has replaced revolving credit facility from the year 2020 by new revolving credit facility of EUR 400,000 thousand for a three-year period. The Company does not expect a drawdown either partial or for the full amount under this facility in 2022. In 2020, part of industrial portfolio of the Group was reinanced by bank loan with nominal value as at 31December 2020 of EUR 395,525 thousand provided by Aareal Bank AG. In December 2020, the Company entered into a EUR 100,000 thousand revolving credit facility for a three-year period. The Company does not expect a drawdown either partial or for the full amount under this facility in 2021. No signiicant changes to estimation techniques or assumptions were made during the reporting period. 302 Reconciliation of movements of assets, liabilities and equity to cash lows arising from inancing activities IN EUR THOUSAND BANK LOANS RELATED PARTY LOANS BONDS LEASE LIABILITIES IRS - ASSETS IRS - LIABILITIES ISSUED CAPITAL SHARE PREMIUM RETAINED EARNINGS TOTAL Balance as at 1 January 2021 2,352,287 37,172 1,041,971 5,235 -- 34,066 53,760 1,858,460 324,862 5,707,813 Changes from financing cash flows Proceeds from bonds -- -- 2,479,615 -- -- -- -- -- -- 2,479,615 Proceeds from loans and borrowings 677,468 -- -- -- -- -- -- -- -- 677,468 Transaction costs related to loans and borrow- ings, bonds and issue of shar capital -4,669 -- -18,076 -- -- -22,599 -- -34,904 -- -80,248 Repayment of the loans and borrowings and bonds -1,971,259 -35,968 -148,709 -- -- -- -- -- -- -2,155,936 Proceeds from the issue of share capital -- -- -- -- -- -- 9,763 844,475 -- 854,238 Dividend in cash -- -- -- -- -- -- -- -5,513 -- -5,513 Payment of lease liabilities -- -- -- -974 -- -- -- -- -- -974 Total changes in financing cash flows -1,298,460 -35,968 2,312,830 -974 -- -22,599 9,763 804,058 -- 1,768,650 Change in fair value -- -- -- -- -172 -11,955 -- -- -- -12,127 Other adjustment -5,322 -164 17,084 2,425 -- 488 -- 1 58 14,570 Acquisition of subsidiaries 65,867 -- -- 7,147 -- -- -- -- -- 73,014 Dividend in stock -- -- -- -- -- -- 540 -540 -- -- Profit for the period -- -- -- -- -- -- -- -- 1,025,936 1,025,936 Interest expense 38,911 383 26,120 -- -- 5,469 -- -- -- 70,883 Interest paid -21,979 -1,405 -16,313 -- -- -5,469 -- -- -- -45,165 Other liability related changes 77,477 -1,186 26,891 9,572 -- 488 540 -539 1,025,994 1,139,237 Balance at 31 December 2021 1,131,304 18 3,381,692 13,833 -172 -- 64,063 2,661,979 1,350,856 8,603,573 IN EUR THOUSAND BANK LOANS RELATED PARTY LOANS BONDS LEASE LIABILITIES IRS - ASSETS IRS - LIABILITIES ISSUED CAPITAL SHARE PREMIUM RETAINED EARNINGS TOTAL Balance as at 1 January 2020 2,677,813 101,086 -- 5,776 -740 16,125 -- 828,682 1,188,597 4,817,339 Changes from financing cash flows Proceeds from Bonds -- -- 1,041,395 -- -- -- -- -- -- 1,041,395 Proceeds from loans and borrowings 743,657 -- -- -- -- -- -- -- -- 743,657 Transaction costs related to loans and bor- rowings -- -- -2,832 -- -- -18,817 -- -- -- -21,649 Repayment of the loans and borrowings -1,088,814 -20,625 -- -- -- -- -- -- -- -1,109,439 Proceeds from the issue of share capital -- -- -- -- -- -- 200 -- -- 200 Repayment of share premium -- -- -- -- -- -- -- -12,500 -- -12,500 Payment of lease liabilities -- -- -- -541 -- -- -- -- -- -541 Total changes in financing cash flow -345,157 -20,625 1,038,563 -541 -- -18,817 200 -12,500 -- 641,123 Acquisition through business combination 18,867 -- -- -- -- -- -- -- -- 18,867 Changes arising from acquisitions and disposal of subsidiaries business combination 18,867 -- -- -- -- -- -- -- -- 18,867 Change in fair value -- -- -- -- -- 40,272 -- -- -- 40,272 Other adjustment -8,070 -- -274 -- 740 -3,514 -- -19,417 -598 -31,133 Share issuance and formation of CTP N.V. -- -- -- -- -- -- 53,560 1,061,695 -1,115,255 -- Profit for the period -- -- -- -- -- -- -- -- 252,118 252,118 Non cash set off of Related party loans -- -37,035 -- -- -- -- -- -- -37,035 Interest expense 54,321 2,276 3,682 -- -- 8,255 -- -- -- 68,534 Interest paid -45,487 -8,530 -- -- -- -8,255 -- -- -- -62,272 Other liability related changes 764 -43,289 3,408 -- 740 -3,514 53,560 1,042,278 -863,735 190,212 Balance at 31 December 2020 2,352,287 37,172 1,041,971 5,235 -- 34,066 53,760 1,858,460 324,862 5,707,813 303 27. Bonds issued Current period BOND ISSUANCE DATE ISIN NOMINAL VALUE OF TOTAL BONDS ISSUED IN EUR NOMINAL VALUE OF EACH BOND CURRENCY TYPE FIX INTEREST RATE PER ANNUM ("P.A") MATURITY DATE FAIR VALUE OF BONDS IN EUR 27 Sept 2021 XS2390530330 500,000,000 100,000 EUR senior unsecured 0.625% 27 Sept 2026 494,545 27 Sept 2021 XS2390546849 500,000,000 100,000 EUR senior unsecured 1.500% 27 Sept 2031 485,270 21 June 2021 XS2356029541 500,000,000 100,000 EUR senior unsecured 0.500% 21 June 2025 498,545 21 June 2021 XS2356030556 500,000,000 100,000 EUR senior unsecured 1.250% 21 June 2029 490,725 18 Feb 2021 XS2303052695 500,000,000 100,000 EUR senior unsecured 0.750% 18 Feb 2027 486,940 27 Nov 2020 XS2264194205 400,000,000 100,000 EUR senior unsecured 0.625% 27 Nov 2023 404,296 1 Oct 2020 XS2238342484 500,002,000 100,000 EUR senior unsecured 2.125% 1 Oct 2025 524,842 Total 3,400,002,000 3,385,163 Prior period BOND ISSUANCE DATE ISIN NOMINAL VALUE OF TOTAL BONDS ISSUED IN EUR NOMINAL VALUE OF EACH BOND CURRENCY TYPE FIX INTEREST RATE PER ANNUM ("P.A") MATURITY DATE FAIR VALUE OF BONDS IN EUR 27 Nov 2020 XS2264194205 400,000,000 100,000 EUR senior unsecured 0.625% 27 Nov 2023 403,228 1 Oct 2020 XS2238342484 650,000,000 100,000 EUR senior unsecured 2.125% 1 Oct 2025 689,130 Total 1,050,000,000 1,092,358 On 29 September 2021, the Group has repaid bonds from the irst emission occurred in October 2020 in the nominal value of EUR 149,998 thousand. IN EUR THOUSAND 2021 2020 Non-current liabilities Bonds issued - nominal value 3,550,000 1,050,000 Repayment of bonds – nominal value -149,998 -- Nominal value after repayment 3,400,002 1,050,000 Interest expense 13,490 3,682 Discount applied -27,878 -8,605 Amortisation of applied discount 3,796 345 Bond issuance costs -9,200 -3,602 Amortisation of bond issuance costs 1,482 151 Balance at 31 December 3,381,692 1,041,971 Transaction cost paid in cash as at 31 December 2021 is EUR 18,076 thousand (2020 – EUR 2,832 thousand). There are no inancial covenants related to the bonds. 304 28. Trade and other payables Non-current IN EUR THOUSAND 2021 2020 Non-current trade payables and other liabilities 51,525 18,181 Liabilities from operating leases 13,066 5,204 Balance at 31 December 64,591 23,385 Current IN EUR THOUSAND 2021 2020 Trade payables and other liabilities 236,331 168,691 Liabilities from operating leases 817 315 Balance at 31 December 237,148 169,006 Trade payables and other liabilities consist primarily of liabilities for constructions works and liabilities related to acquisition of subsidiaries (refer to Note 6). 29. Share based payments On 30 April 2021, the Company granted a conditional share award under the LTIP to the one of the directors. This award has a vesting period of three years, and vesting is subject to continued services up to vesting and depends on the Company’s total shareholder return (“TSR”). Vesting of 50% of the number of awards granted is subject to an Absolute TSR condition and 50% is subject a Relative TSR condition. The number of awards that will vest is between 0% and 150% of the target number of awards granted. The vesting percentage is allocated linearly between the threshold level and the maximum level. The fair value of the awards is expensed on a straight-line basis over the three-year vesting period. In 2021, the total share-based payment expense recognized for the equity-settled awards amounted to EUR 85 thousand (2020 – EUR 0 thousand). 30. Leases Leases as lessee The Group leases various types of assets: oices, parking places, plots of land, other small assets. For short- term leases and leases of low-value items the Group has elected not to recognise right-of-use assets and related lease liabilities. The leasing period of the oices varies signiicantly from one to seventeen years. Some leases provide for additional rent payments that are based on changes in local price indices and option to terminate the contract within less than twelve months. Parking places are leased for period of several months up to indeinite period however with the option to terminate the leasing within several days up to 3 months. The plots of land are leased for period of nineteen years up to indeinite period to operate the Group premises. Information about leases for which the Group is a lessee is presented below. 305 Right-of-use assets related to leased assets that do not meet the deinition of investment property are presented as property, plant and equipment (refer to Note 20). IN EUR THOUSAND PROPERTY, PLANT AND EQUIPMENT INVESTMENT PROPERTY INVESTMENT PROPERTY UNDER DEVELOPMENT TOTAL Balance at 1 January 2021 3,814 2,017 -- 5,831 Additions 1,296 -- 18,241 19,537 Disposals -- -- -- -- Depreciation -674 -- -- -674 Balance at 31 December 2021 4,436 2,017 18,241 24,694 IN EUR THOUSAND PROPERTY, PLANT AND EQUIPMENT INVESTMENT PROPERTY TOTAL Balance at 1 January 2019 4,179 2,017 6,196 Additions 335 -- 335 Disposals -- -- -- Depreciation -700 -- -700 Balance at 31 December 2020 3,814 2,017 5,831 IN EUR THOUSAND PROPERTY, PLANT AND EQUIPMENT INVESTMENT PROPERTY TOTAL Balance at 1 January 2020 3,856 2,017 5,873 Additions 335 -- 335 Disposals -- -- -- Depreciation -377 -- -377 Balance at 31 December 2020 3,814 2,017 5,831 Amounts recognised in proit or loss IN EUR THOUSAND 2021 1.1.2019 – 31.12.2020 2020 Interest on lease liabilities 103 158 78 Expenses relating to short-term leases 160 177 86 Expenses relating to leases of low-value assets 10 14 4 Balance at 31 December 273 349 168 Amounts recognised in statement of cash lows IN EUR THOUSAND 2021 1.1.2019 – 31.12.2020 2020 Total cash outflows for leases 974 1,041 541 The remaining performance obligations as at 31 December 2021 are as follows: IN EUR THOUSAND < 1 YEAR 1-2 YEARS 2-3 YEARS 3-4 YEARS 4-5 YEARS > 5 YEARS TOTAL Lease payments 942 1,652 227 222 195 10,646 13,883 The remaining performance obligations as at 31 December 2020 are as follows: IN EUR THOUSAND < 1 YEAR 1-2 YEARS 2-3 YEARS 3-4 YEARS 4-5 YEARS > 5 YEARS TOTAL Lease payments 390 316 234 227 222 4,259 5,648 306 Leases as lessor The Group leases out its own investment property. All leases are classiied as operating leases from a lessor perspective because they do not transfer substantially all of the risks and rewards incidental to the ownership of the assets. Rental income recognised by the Group during in 2021 was EUR 334,651 thousand (2020 – EUR 549,921 thousand for 24 months, and EUR 291,935 thousand for 12 months period). The following table set out a maturity analysis of lease payments, showing the undiscounted lease payments to be received after the reporting period. IN EUR THOUSAND < 1 YEAR 2-5 YEARS > 5 YEARS TOTAL Lease payments 437,042 1,612,684 1,707,135 3,756,861 31. Derivative financial instruments IN EUR THOUSAND 2021 2020 Fair value of derivatives - asset 172 -- Fair value of derivatives - liability -- -33,952 Total 172 -33,952 Accrued interest on derivatives -- -114 Total derivatives 172 -34,066 All inancial derivatives were stated at fair value as at 31 December 2021 and 31 December 2020 respectively and classiied to Level 2 in the fair value hierarchy. For fair value determination, a market comparison technique was used. As at 31 December 2021 CTP held the following derivative inancial instruments: DERIVATIVE FINANCIAL INSTRUMENTS DUE WITHIN MATURITY DATE RECEIVING LEG PAYING LEG CURRENCY NOMINAL AMOUNT FAIR VALUE 2021 (IN EUR THOUSAND) Interest rate swaps 2025 – 2026 3M Euribor from -0.295% to -0.11% EUR 61,303 EUR 172 Foreign exchange swaps N/A N/A N/A N/A N/A -- Total receivables from derivatives 172 As at 31 December 2020 CTP held the following derivative inancial instruments: DERIVATIVE FINANCIAL INSTRUMENTS DUE WITHIN MATURITY DATE RECEIVING LEG PAYING LEG CURRENCY NOMINAL AMOUNT FAIR VALUE 2020 (IN EUR THOUSAND) Interest rate swaps 2021 - 2026 from 3M Euribor to 6M Euribor from -0.44% to 0.446% EUR 1,648,904 EUR -33,900 Foreign exchange swaps 2021 N/A N/A CZK/EUR 10,000 EUR -52 Total liabilities from derivatives -33,952 307 32. Income taxes Deferred income tax assets and liabilities are ofset when there is a legally enforceable right to ofset current income tax assets against current income tax liabilities and when the deferred income taxes relate to the same iscal authority. Deferred tax assets and liabilities The recognized deferred tax assets and liabilities are attributable to the following: IN EUR THOUSAND 2021 2020 ASSETS LIABILITY NET ASSETS LIABILITY NET Investment property 8,722 -734,501 -725,779 2,841 -502,970 -500,129 Tax losses 9,510 -- 9,510 10,321 -- 10,321 Property, plant and equipment 1,153 -- 1,153 -- -2,189 -2,189 Other (receivables, hedge accounting etc.) 16,913 -24,518 -7,605 1,640 -- 1,640 Tax asset/(liabilities) 36,298 -759,019 -722,721 14,802 -505,159 -490,357 Set- off of tax -12,246 12,246 -- -380 380 -- Net tax assets/ (liabilities) 24,052 -746,773 -722,721 14,422 -504,779 -490,357 Movement in Deferred tax during the Year recognized in proit and loss, in equity and in OCI IN EUR THOUSAND BALANCE AS AT 1 JANUARY 2021 CHANGE IN TEMPORARY DIFFERENCES CHANGE THROUGH BUSINESS COMBINATION DEFERRED TAX RECOG- NISED IN OCI EFFECT OF CHANGES IN FX RATES BALANCE AS AT 31 DECEMBER 2021 Investment property -500,129 -217,223 -753 -- -7,674 -725,779 Tax losses 10,321 -1,005 36 -- 158 9,510 Property, plant and equipment -2,189 5,148 -- -1,772 -34 1,153 Other (receivables, hedge accounting etc.) 1,640 -9,270 -- -- 25 -7,605 Total -490,357 -222,350 -717 -1,772 -7,525 -722,721 IN EUR THOUSAND BALANCE AS AT 1 JANUARY 2019 CHANGE IN TEMPORARY DIFFERENCES CHANGE THROUGH BUSINESS COMBINATION DEFERRED TAX RECOG- NISED IN OCI EFFECT OF CHANGES IN FX RATES BALANCE AS AT 31 DECEMBER 2020 Investment property -396,369 -107,535 612 -- 3,163 -500,129 Tax losses 2,457 8,300 -- -- -436 10,321 Property, plant and equipment 2,679 -5,395 -944 1,723 -252 -2,189 Other (receivables, hedge accounting etc.) 432 1,288 -- -- -80 1,640 Total -390,801 -103,342 -332 1,723 2,395 -490,357 IN EUR THOUSAND BALANCE AS AT V1 JANUARY 2020 CHANGE IN TEMPORARY DIFFERENCES CHANGE THROUGH BUSINESS COMBINATION DEFERRED TAX RECOG- NISED IN OCI EFFECT OF CHANGES IN FX RATES BALANCE AS AT 31 DECEMBER 2020 Investment property -490,526 -14,234 612 -- 4,019 -500,129 Tax losses 3,158 7,194 -- -- -31 10,321 Property, plant and equipment 2,984 -6,867 -- 1,723 -29 -2,189 Other (receivables, hedge accounting etc.) 344 1,304 -- -- -8 1,640 Total -484,040 -12,603 612 1,723 3,951 -490,357 308 Unrecognized deferred tax assets Deferred tax assets have not been recognized in respect of the following items, because it is not probable that future taxable proit will be available against which the Group can use the beneits therefrom IN EUR THOUSAND 2021 2020 Gross amount Tax effect Gross amount Tax effect Tax losses 26,427 4,257 26,304 4,226 Total 26,427 4,257 26,304 4,226 Tax losses carried forward Tax losses for which no deferred tax asset was recognized expire as follows. IN EUR THOUSAND 2021 EXPIRY DATE 2020 EXPIRY DATE Expire 26,427 2022 - 2027 26,304 2021 - 2026 Never expire -- -- Total 26,427 26,304 Amounts recognized in OCI IN EUR THOUSAND 2021 2020 Items that will not be reclassified to profit or loss Gross amount Tax effect Net of tax Gross amount Tax effect Net of tax Revaluation of PPE 9,326 -1,772 7,554 -9,070 1,723 -7,347 Items that are or may be reclassified to profit or loss Change in Translation reserve -4,524 782 -3,742 10,413 -1,940 8,473 Current income tax assets and payables The current income tax asset of EUR 7,260 thousand (2020 – EUR 2,692 thousand) represents the amount of income tax recoverable in respect of current and prior periods, i.e. the amount by which the advance payments made exceed income tax payable if any. The current income tax liabilities of EUR 18,289 thousand (2020 – EUR 19,463 thousand) represents payable in respect of current or prior periods, i.e., the amount by which the income tax payable exceeds advance payments made. 309 33. Subsidiaries The Company had the following investments in subsidiaries as at 31 December 2021 and 31 December 2020 respectively: SUBSIDIARIES COUNTRY 2021 2020 NOTE CTP Alpha GmbH Austria 100% 100% CTP Beta GmbH (formerly CTP Immobilienverwaltung GmbH) Austria 100% 100% CTP Delta GmbH Austria 100% 100% CTP Epsilon GmbH Austria 100% 100% CTP Gamma GmbH Austria 100% 100% CTP Invest Immobilien GmbH Austria 100% 100% CTP Zeta GmbH Austria 100% 100% CTP Invest EOOD (formerly CTPark Alpha, EOOD) Bularia 100% 100% CTPark Beta EOOD Bularia 100% 100% CTPark Delta EOOD Bularia 100% 100% CTPark Epsilon EOOD Bularia 100% 100% CTPark Eta EOOD Bularia 100% 0% 2/ CTPark Gamma EOOD Bularia 100% 100% CTPark Iota EOOD Bularia 100% 0% 2/ CTPark Kappa EOOD Bularia 100% 0% 1/ CTPark Lambda EOOD Bularia 100% 0% 1/ CTPark Theta EOOD Bularia 100% 0% 2/ CTPark Zeta EOOD Bularia 100% 100% Project Vrajdebna EOOD Bularia 100% 0% 1/ Clubco, spol. s r.o. (formerly CTP Invest XXVII, spol. s.r.o.) Czech Republic 100% 100% CTP Alpha, spol. s r.o. (formerly CTP Property XXII, spol. s.r.o.) Czech Republic 100% 100% CTP Barrandov, spol. s r.o. Czech Republic 100% 100% CTP Beta, spol. s r.o. v likvidaci (formerly CTP Property Czech, S. a r.l.) Czech Republic 100% 100% CTP Bohemia North, spol. s r.o. Czech Republic 100% 100% CTP Bohemia South, spol. s.r.o. (formerly CTP Property XI, spol. s.r.o.) Czech Republic 100% 100% CTP Bohemia West, spol. s r.o. Czech Republic 100% 100% CTP Borská Pole, spol. s r.o. Czech Republic 100% 100% CTP CEE Properties, spol. s.r.o. (formerly CTP Property Lux S.á.r.l.) Czech Republic 100% 100% CTP CEE Sub Holding, spol. s.r.o. Czech Republic 100% 100% CTP Domeq Brno, spol. s r.o. Czech Republic 100% 100% CTP Finance, spol. s r.o. v likvidaci Czech Republic 0% 100% 3/ CTP Forest, spol. s r.o. (formerly CTP Invest XXVI, spol. s.r.o.) Czech Republic 100% 100% CTP Hotel Operations Brno, spol. s r.o. Czech Republic 100% 100% CTP Hotel Operations PIlsen, spol. s.r.o. Czech Republic 100% 100% CTP Hotel operations Prague, spol. s.r.o. (formerly Hotel Operations EUROPORT s.r.o.) Czech Republic 100% 100% CTP Hotel Pilsen, spol. s.r.o. (formerly 2P , s.r.o.) Czech Republic 100% 100% CTP Hotel Prague, spol. s r.o. Czech Republic 100% 100% CTP I, spol. s r.o. v likvidaci (formerly Mavo Lux S.à r.l.) Czech Republic 100% 100% 5/ CTP II, spol. s r.o. (formerly CTP Property XXIII, spol. s.r.o.) Czech Republic 100% 100% CTP III, spol. s r.o. (formerly CTP Property XXVI, spol. s.r.o.) Czech Republic 100% 100% CTP Industrial Property CZ, spol. s.r.o. Czech Republic 100% 100% CTP Infrastructure, spol. s r.o. v likvidaci Czech Republic 0% 100% 3/ CTP Invest, spol. s r.o. Czech Republic 100% 100% CTP IQ Ostrava, spol. s r.o. Czech Republic 100% 100% CTP IV, spol. s r.o. (formerly CTP Property XXVII, spol. s.r.o.) Czech Republic 100% 100% CTP Moravia North, spol. s r.o. Czech Republic 100% 100% CTP Moravia South, spol. s.r.o. Czech Republic 100% 100% CTP Omega, spol. s.r.o. v likvidaci Czech Republic 0% 100% 3/ CTP Pilsen Region, spol. s r.o. Czech Republic 100% 100% CTP Ponávka Business Park, spol. s r.o. Czech Republic 100% 100% CTP Portfolio Finance CZ, spol. s.r.o. Czech Republic 100% 100% CTP Property Bulgaria, spol. s.r.o. v likvidaci Czech Republic 0% 100% 3/ CTP Property Czech, spol. s.r.o. Czech Republic 100% 100% CTP Property Romania, spol. s.r.o. v likvidaci Czech Republic 100% 100% CTP Property Serbia, spol. s.r.o. v likvidaci Czech Republic 100% 100% CTP Solar I, a.s. (formerly CTP Property, a.s.) Czech Republic 100% 100% CTP Solar II, a.s. (formerly CTP Property VIII, a.s.) Czech Republic 100% 100% 310 SUBSIDIARIES COUNTRY 2021 2020 NOTE CTP Solar III, spol. s.r.o. (formerly CTP Invest VIII, spol. s.r.o.) Czech Republic 100% 100% CTP Solar, a.s. v likvidaci Czech Republic 100% 100% 5/ CTP V, spol. s r.o. (formerly CTP Property XXVIII, spol. s.r.o. ) Czech Republic 100% 100% CTP VI, spol. s r.o. (formerly CTP Property XXIX, spol. s.r.o.) Czech Republic 100% 100% CTP VII, spol. s r.o. (formerly CTP Property XXXI, spol. s.r.o.) Czech Republic 100% 100% CTP VIII, spol. s r.o. (formerly CTP Property XXXII, spol. s.r.o.) Czech Republic 100% 100% CTP Vlněna Business Park, spol. s.r.o. (formerly CTP Property XVII, spol. s.r.o.) Czech Republic 100% 100% CTP Vysočina, spol. s.r.o. Czech Republic 100% 100% CTP X, spol. s r.o. (formerly CTp invest 1, spol. s r.o.) Czech Republic 100% 100% CTP XI, spol. s r.o. Czech Republic 100% 100% CTP XII, spol. s r.o. Czech Republic 100% 100% CTP XIII, spol. s r.o. (formerly CTP Invest XIV, spol. s.r.o.) Czech Republic 100% 100% CTP XIV, spol. s r.o. (formerly CTP Invest XV, spol. s.r.o.) Czech Republic 100% 100% CTP XV, spol. s r.o. (formerly CTP Invest XVIII, spol. s.r.o.) Czech Republic 100% 100% CTP XVI, spol. s r.o. (formerly CTP Invest XXI, spol. s.r.o.) Czech Republic 100% 100% CTP XVII, spol. s r.o. (formerly CTP Invest XXII, spol. s.r.o.) Czech Republic 100% 100% CTP XVIII, spol. s r.o. (formerly CTP Invest XXIII, spol. s.r.o.) Czech Republic 100% 100% CTP XXI, spol. s r.o. (formerly CTP Invest XXVIII, spol. s.r.o.) Czech Republic 100% 100% CTP XXII, spol. s r.o. Czech Republic 100% 100% CTP XXIII, spol. s r.o. Czech Republic 100% 100% CTP XXIV, spol. s r.o. Czech Republic 100% 100% CTPark Aš II, spol. s r.o. (formerly CTP XIX, spol. s r.o.) Czech Republic 100% 100% CTPark Bor, spol. s.r.o. Czech Republic 100% 100% CTPark Brno I, spol. s.r.o. Czech Republic 100% 100% CTPark Brno II, spol. s.r.o. (formerly CTP Property X, spol. s.r.o. Czech Republic 100% 100% CTPark Brno III, spol. s.r.o. (formerly Bor Logistics, spol. s.r.o.) Czech Republic 100% 100% CTPark Brno Líšeň East, spol. s r.o. (formerly CTP Invest XX, spol. s.r.o.) Czech Republic 100% 100% CTPark Brno Líšeň II, spol. s r.o. (formerly CTP Invest XXIV, spol. s.r.o.) Czech Republic 100% 100% CTPark Brno Líšeň West, spol. s r.o. Czech Republic 100% 100% CTPark Brno Retail, spol. s.r.o.(formerly Brno Retail, spol. s.r.o.) Czech Republic 100% 100% CTPark České Budějovice II, spol. s r.o. Czech Republic 0% 100% 3/ CTPark České Budějovice, spol. s r.o. (formerly Kaufpark a.s.) Czech Republic 0% 100% 3/ CTPark České Velenice, spol. s r.o. Czech Republic 100% 100% CTPark Hranice, spol. s r.o. Czech Republic 100% 100% CTPark Lysá nad Labem, spol. s r.o. Czech Republic 100% 100% CTPark Mladá Boleslav, spol. s.r.o. Czech Republic 100% 100% CTPark Modřice, spol. s r.o. Czech Republic 100% 100% CTPark Ostrava Poruba, spol. s r.o. Czech Republic 100% 100% CTPark Ostrava, spol. s.r.o. Czech Republic 100% 100% CTPark Plzeň, spol. s r.o. (formerly CTP Invest XIX, spol. s.r.o.) Czech Republic 100% 100% CTPark Prague Airport, spol. s.r.o. Czech Republic 100% 100% CTPark Prague East, spol. s.r.o. Czech Republic 100% 100% CTPark Prague North II, spol. s.r.o. Czech Republic 100% 100% CTPark Prague North III, spol. s r.o. (formerly DUNSTAR a.s.) Czech Republic 100% 100% CTPark Prague West, spol. s.r.o. (formerly CTP Invest XI, spol. s.r.o.) Czech Republic 100% 100% CTPark Stříbro, spol. s.r.o. (formerly Waystone CZ s.r.o.) Czech Republic 100% 100% CTPersonnel Bor, spol. s.r.o. v likvidaci Czech Republic 100% 100% CTZone Ostrava, spol. s r.o. Czech Republic 100% 100% Multidisplay s.r.o. Czech Republic 100% 100% PŘÍDANKY SPV, s.r.o. Czech Republic 100% 0% 1/ RENWON a.s. Czech Republic 100% 0% 1/ Spielberk Business Park II, spol. s.r.o. (formerly CTP INVEST V, spol. s.r.o.) Czech Republic 100% 100% Spielberk Business Park, spol. s.r.o. (formerly Spielberk Oice Center, spol. s.r.o.) Czech Republic 100% 100% CTP Invest Eypt 100% 0% 4/ CTP Real Estate Eypt 100% 0% 4/ CTP Real Estate Development Eypt 100% 0% 4/ Samesova OÜ Estonia 100% 0% 4/ Vojtova OÜ Estonia 100% 0% 4/ Zemankova OÜ Estonia 100% 0% 4/ CTP Alpha France France 100% 0% 4/ CTP Beta France France 100% 0% 4/ CTP France France 100% 0% 4/ CTP Germany GmbH Germany 100% 100% CTP Germany II GmbH Germany 100% 100% 1/ CTP Germany III GmbH Germany 100% 100% 5/ 311 SUBSIDIARIES COUNTRY 2021 2020 NOTE CTP Germany IV GmbH & Co. KG Germany 100% 100% 5/ CTP Germany IX GmbH Germany 100% 0% 4/ CTP Germany V GmbH Germany 100% 100% CTP Germany VI GmbH Germany 100% 100% CTP Germany VII GmbH Germany 100% 0% 4/ CTP Germany VIII GmbH Germany 100% 0% 4/ CTP Germany X GmbH Germany 100% 0% 4/ CTP Invest Germany GmbH Germany 100% 0% 4/ CTP Invest Hungary Kft. Hunary 0% 100% 3/ CTP Management Hungary Kft. Hunary 100% 100% CTP Solar Hungary Kft Hunary 100% 0% 2/ CTPark Alpha Kft. Hunary 100% 100% CTPark Arrabona Kft. Hunary 100% 100% CTPark Beta Kft. Hunary 100% 100% CTPark Biatorbágy Kft. Hunary 100% 100% CTPark Delta Kft. Hunary 100% 100% CTPark Eight Kft. Hunary 100% 100% CTPark Eighteen Kft. Hunary 100% 0% 2/ CTPark Eleven Kft. Hunary 100% 100% CTPark Fifteen Kft. Hunary 100% 0% 2/ CTPark Fourteen Kft Hunary 100% 0% 2/ CTPark Gamma Kft. Hunary 100% 100% CTPark Nine Kft. Hunary 100% 100% CTPark Nineteen Kft. Hunary 100% 0% 2/ CTPark Seven Kft. Hunary 100% 100% CTPark Seventeen Kft. Hunary 100% 0% 2/ CTPark Sixteen Kft. Hunary 100% 0% 2/ CTPark Ten Kft. Hunary 100% 100% CTPark Thirteen Kft Hunary 100% 0% 2/ CTPark Twelve Kft. Hunary 100% 100% CTPark Twenty Five Kft. (formerly Aviv Investment Hungary Kft.) Hunary 100% 0% 1/ CTPark Twenty Four Kft. (formerly Weerts LP VI Kft.) Hunary 100% 0% 1/ CTPark Twenty Kft. Hunary 100% 0% 2/ CTPark Twenty One Kft. Hunary 100% 0% 2/ CTPark Twenty Seven Kft. (formerly Natibar Kft.) Hunary 100% 0% 1/ CTPark Twenty Six Kft. (formerly Gali Hungary Kft.) Hunary 100% 0% 1/ CTPark Twenty Three Kft Hunary 100% 0% 1/ CTPark Twenty Two Kft. Hunary 100% 0% 2/ Oice Campus Real Estate Kft. Hunary 100% 0% 1/ CTP Alpha S.r.l. Italy 100% 0% 4/ CTP Beta S.r.l. Italy 100% 0% 4/ CTP Italy S.r.l. Italy 100% 0% 4/ Samesova SIA Latvia 100% 100% 5/ Vojtova SIA Latvia 100% 100% 5/ Zemankova SIA Latvia 100% 100% 5/ UAB Samesova Lithuania 100% 100% 5/ UAB Vojtova Lithuania 100% 100% 5/ UAB Zemankova Lithuania 100% 100% 5/ CTP Alpha S.R.L. Moldova 0% 100% 3/ CTP Invest S.R.L. Moldova 0% 100% 3/ Amsterdam Logistic Cityhub B.V. Netherland 100% 0% 1/ CTP Alpha B.V. Netherland 100% 0% 2/ CTP Baltic Holding B.V. Netherland 100% 100% CTP Beta B.V. Netherland 100% 0% 2/ CTP Delta B.V. Netherland 90.1% 0% 2/ CTP Epsilon B.V. Netherland 100% 0% 2/ CTP Eta B.V. Netherland 100% 0% 2/ CTP Gamma B.V. Netherland 100% 0% 2/ CTP Invest B.V. Netherland 100% 0% 2/ CTP Iota B.V. Netherland 100% 0% 4/ CTP Kappa B.V. Netherland 100% 0% 4/ CTP Lambda B.V. Netherland 100% 0% 4/ CTP Mediterranean Holding B.V. Netherland 100% 100% CTP Mu B.V. Netherland 100% 0% 1/ CTP Portfolio Finance Czech B.V. Netherland 100% 100% 312 SUBSIDIARIES COUNTRY 2021 2020 NOTE CTP Property B.V (formerly CTP Invest B.V.) Netherland 100% 100% CTP Theta B.V. Netherland 100% 0% 2/ CTP Turkish Holding B.V. Netherland 100% 100% CTP Zeta B.V. Netherland 100% 0% 2/ Multiin B.V. Netherland 100% 100% CTP Beta poland Sp. z o.o. Poland 100% 100% CTP Delta Poland Sp. Z o. o. Poland 100% 100% CTP Epsilon Poland Sp. z o.o. Poland 100% 100% CTP Eta Poland Sp. z o.o. (formerly GreenPark Resi I Sp. z o.o.) Poland 100% 100% CTP Gamma Poland Sp. Z o. o. Poland 100% 100% CTP Invest Poland Sp. z o.o. Poland 100% 100% CTP IOTA POLAND SP Z O.O. Poland 100% 0% 1/ CTP KAPPA POLAND SP Z O.O. Poland 100% 0% 1/ CTP LAMBDA POLAND SP Z O.O. Poland 100% 0% 1/ CTP Mu Poland Sp. z o.o. Poland 100% 0% 2/ CTP Nu Poland Sp. z o.o. Poland 100% 0% 2/ CTP Theta Poland Sp. z o.o. (formerly GreenPark Resi II Sp. z o.o.) Poland 100% 100% CTP Xi Poland Sp. z o.o. Poland 100% 0% 2/ CTP Zeta Poland Sp. z o.o. Poland 100% 100% CTPark Iłowa Sp. z o.o. Poland 100% 100% CTPark Omicron Poland Sp. z o.o. Poland 100% 0% 2/ CTPark Opole Sp. z o.o. (formerly CTP Alpha Poland Sp. Z.o.o. ) Poland 100% 100% CTPark Phi Poland Sp. z o.o. Poland 100% 0% 2/ CTPark Rho Poland Sp. z o.o. Poland 100% 0% 2/ CTPark Sigma Poland Sp. z o.o. Poland 100% 0% 2/ CTPark Zabrze Sp. z o.o. Poland 100% 100% CTP CONTRACTORS SRL Romania 100% 100% CTP INVEST BUCHAREST SRL Romania 100% 100% CTP SOLAR SRL (formerly CTPARK KM23 WEST SRL) Romania 100% 100% CTPARK ALPHA SRL Romania 100% 100% CTPark Arad North SRL (formerly BORDER LOGISTICS SRL) Romania 100% 0% 1/ CTPARK BETA SRL Romania 100% 100% CTPark Brasov SRL (formerly Olympian Brasov Logistic SRL) Romania 100% 0% 1/ CTPark Brasov West SRL (Olympian Brasov SA) Romania 100% 0% 1/ CTPARK BUCHAREST A1 SRL Romania 100% 100% CTPARK BUCHAREST II SRL (formerly CENTURA PROPERTY HOLDINGS S.A.) Romania 100% 100% CTPark Bucharest South II SRL (formerly Olympian East Bucharest SA) Romania 100% 0% 1/ CTPARK BUCHAREST SRL Romania 100% 100% CTPARK BUCHAREST UPSILON SRL Romania 100% 100% CTPARK BUCHAREST WEST I SRL Romania 100% 100% CTPARK BUCHAREST WEST II SRL (formerly H.E.E. (MERCURY) PROPRIETATI SRL) Romania 100% 100% CTPark Craiova East SRL (formerly SOUTHERN LOGISTICS SRL) Romania 100% 0% 1/ CTPARK DELTA SRL Romania 100% 100% CTPARK DEVA II SRL (formerly DEVA LOGISTIC CENTER S.A.) Romania 100% 100% CTPARK EPSILON SRL Romania 100% 100% CTPARK ETA SRL Romania 100% 100% CTPARK GAMMA SRL Romania 100% 100% CTPARK IOTA SRL Romania 100% 100% CTPARK KAPPA SRL Romania 100% 100% CTPARK KM23 NORTH SRL Romania 100% 100% CTPARK LAMBDA SRL Romania 100% 100% CTPARK MANAGEMENT AFUMATI SRL Romania 100% 100% CTPARK MANAGEMENT TURDA SRL Romania 100% 100% CTPARK MIU SRL Romania 100% 100% CTPARK OMEGA SRL Romania 100% 100% CTPARK OMICRON SRL Romania 100% 100% CTPark Oradea North SRL (formerly WESTERN LOGISTICS SRL) Romania 100% 0% 1/ CTPARK PHI SRL Romania 100% 100% CTPARK PSI SRL Romania 100% 100% CTPARK RHO SRL Romania 100% 100% CTPark Sibiu East SRL (formerly NETWORK WIDE LOGISTICS SRL) Romania 100% 0% 1/ CTPARK SIGMA SRL Romania 100% 100% CTPARK TAU SRL Romania 100% 100% CTPARK THETA SRL Romania 100% 100% CTPark Timisoara East SRL (formerly Olympian Timisoara SA) Romania 100% 0% 1/ 313 1/ Newly acquired subsidiaries in 2021 2/ Newly established subsidiaries in 2021 3/ Disposed subsidiaries in 2021 4/ Newly established subsidiaries in 2021 not consolidated due to its limited size/activities 5/ Not consolidated subsidiaries SUBSIDIARIES COUNTRY 2021 2020 NOTE CTPARK ZETA SRL Romania 100% 100% FOREST PROPERTY INVEST SRL (formerly CTPARK KM23 SOUTH SRL) Romania 100% 100% Universal Management SRL Romania 100% 75% CTP Alpha doo Beograd-Novi Beograd Serbia 100% 100% CTP Beta doo Beograd-Novi Beograd Serbia 100% 100% CTP Delta doo Beograd-Novi Beograd Serbia 100% 100% CTP Epsilon doo Beograd-Novi Beograd Serbia 100% 100% CTP Gamma doo Beograd-Novi Beograd Serbia 100% 100% CTP Invest doo Beograd-Novi Beograd Serbia 100% 100% CTP Iota doo Beograd-Novi Beograd Serbia 100% 100% CTP Kappa doo Beograd-Novi Beograd Serbia 100% 100% CTP Lambda doo Beograd (formerly Expo Site doo Beograd) Serbia 100% 100% CTP Omega doo Beograd-Novi Beograd (formerly LogMaxx Beta, d.o.o.) Serbia 100% 100% CTP Omicron doo Beograd-Novi Beograd Serbia 100% 100% CTP Phi doo Beograd-Novi Beograd Serbia 100% 100% CTP Property Alpha d.o.o. Beograd-Novi Beograd Serbia 100% 0% 1/ CTP Rho doo Beograd-Novi Beograd Serbia 100% 100% CTP Sigma doo Beograd-Novi Beograd Serbia 100% 100% CTP Tau doo Beograd-Novi Beograd Serbia 100% 100% CTP Zeta doo Beograd-Novi Beograd Serbia 100% 100% CTP Alpha SK, spol. s.r.o. Slovakia 100% 100% CTP Dunaj s.r.o. (formerly ATH Slovakia, s.r.o.) Slovakia 100% 100% CTP Gama s. r. o. (formerly AZQ Slovakia s.r.o.) Slovakia 100% 100% CTP Invest SK, spol. s.r.o. Slovakia 100% 90% CTP Slovakia, s.r.o. Slovakia 100% 100% CTP Solar SK, spol. s r.o. Slovakia 100% 0% 2/ CTPark Banská Bystrica, spol. s r.o. Slovakia 100% 0% 2/ CTPark Bratislava East, spol. s r.o. Slovakia 100% 0% 2/ CTPark Bratislava, spol. s.r.o. Slovakia 100% 100% CTPark Čierny Les, spol. s r.o. (formerly CTPark Žilina, spol. s.r.o.) Slovakia 100% 100% CTPark Hlohovec, spol. s r.o. (formerly CTPark Nitra, s.r.o.) Slovakia 100% 100% CTPark Košice, spol. s.r.o. Slovakia 100% 100% CTPark Krásno nad Kysucou, spol. s r.o. (formerly CTP Beta SK, spol. s.r.o.) Slovakia 100% 100% CTPark Land SK I, spol. s r.o. Slovakia 100% 0% 2/ CTPark Land SK II, spol. s r.o. Slovakia 100% 0% 2/ CTPark Námestovo, spol. s r.o. (formerly Accentis Námestovo, s.r.o.) Slovakia 100% 0% 1/ CTPark Nitra, s.r.o. (formerly Nitra Park II, s.r.o.) Slovakia 100% 100% CTPark Nove Mesto, spol. s.r.o. Slovakia 100% 100% CTPark Prešov s.r.o. (formerly ABL Slovakia s.r.o.) Slovakia 100% 100% CTPark Trnava II, spol. s r.o. (formerly CTP Land SK, spol. s.r.o.) Slovakia 100% 100% CTPark Žilina Airport II, spol. s r.o. Slovakia 100% 100% CTPark Žilina Airport, spol. s r.o. Slovakia 100% 100% CTP Ljubljana, d.o.o. Slovenia 100% 100% CTPark Alpha, d.o.o. Slovenia 100% 100% Global Guanaco, S.L.U. Spain 100% 100% 5/ CTP ALPHA GAYRİMENKUL VE İNAAT LİMİTED İRKETİ Turkey 100% 100% 5/ CTP BETA GAYRİMENKUL VE İNAAT LİMİTED İRKETİ Turkey 100% 100% 5/ CTP GAMMA GAYRİMENKUL VE İNAAT LİMİTED İRKETİ Turkey 100% 0% 4/ CTP Alpha Ltd United Kindom 100% 0% 4/ CTP Beta Ltd United Kindom 100% 0% 4/ CTP Invest Ltd United Kindom 100% 0% 4/ 314 34. Related parties CTP has a related party relationship with its directors and executive oicers and other companies which equity holder is Multivest B.V. This entity is the ultimate parent of CTP. In 2021 and 2020 CTP had the following interest income and interest expense with related parties: 2021 1.1.2019 – 31.12.2020 2020 IN EUR THOUSAND REVENUES EXPENSES REVENUES EXPENSES REVENUES EXPENSES Multivest B.V. -- -383 -- -4,419 -- -1,941 CTP Holding B.V. 1,707 -- 183 -1,093 183 -165 CTP Energy TR, a.s. -- -- 70 -- -- -- CTP Germany II GmbH 234 -- 197 -- 197 -- CTP Germany III GmbH 35 -- 35 -- 35 -- CTP I, spol. s r.o. -- -- 10 -- -- -- CTP Solar, a.s. -- -2 -- -6 -- -2 Total 1,976 -385 495 -5,518 415 -2,108 As at 31 December 2021 and 2020, CTP has the following short-term receivables/payables from/to related parties: 2021 2020 IN EUR THOUSAND RECEIVABLES PAYABLES RECEIVABLES PAYABLES CTP Holding B.V. 13 -- 13 -2,627 CTP I, spol. s. r.o. -- -- 30 -- Multivest B.V. 515 -- -- -- Other -- -- 2 -- Total 528 -- 45 -2,627 As at 31 December 2021 and 2020, CTP has the following long-term receivables/payables from/to related parties: 2021 2020 IN EUR THOUSAND RECEIVABLES PAYABLES RECEIVABLES PAYABLES CTP Germany II GmbH -- -- 7,924 -- CTP Germany III GmbH 348 -- 314 -- CTP Germany IV GmbH -- -15 -- -15 CTP Holding B.V. 46,776 -3 33,804 -3 CTP Solar, a.s. -- -- 4 -163 Multivest B.V. -- -- -- -34,363 Total 47,124 -18 42,046 -34,544 Other non-current non-trade receivables from and non-trade liabilities to related parties are interest bearing and bear an arm’s length interest in a range of 1.2% - 5.6% depending on the maturity, collateralization, subordination, country risk and other speciics. 315 Remuneration of management The average number of members of Board of directors and top management and their remunerations paid for the periods ended 31 December 2021 and 2020 respectively were as follows: HEADCOUNT PERSONAL EXPENSES IN EUR THOUSAND 2021 1.1.2019 – 31.12.2020 2020 2021 1.1.2019 – 31.12.2020 2020 Executive directors 2 2 2 1.025 3,478 2,322 Non-executive directors 2 -- -- 340 -- -- Other management 22 24 24 3,939 5,122 3,036 Total 26 26 26 5,304 8,600 5,358 Personnel expenses of executive and non-executive directors include only short-term employee beneits. On 30 April 2021, the Company granted a conditional share award under the LTIP to the one of the directors. For detail refer to Note 29. As at 31 December 2021, the members of Board of directors held shares in CTP N.V as follows: NR. OF SHARES PRICE PER 1 SHARE VALUE IN EUR THOUSAND Board of Directors 527,384 18.70 9,862 35. Financial instruments risk management objectives and policies Exposure to various risks arises in the normal course of CTP’s business. These risks include credit risk, capital risk, operational risk, market risk including foreign currency risk, interest rate and liquidity risk. Credit risk Credit risk refers to the risk that the counterparty will default on its contractual obligations resulting in a inancial loss to CTP. The management has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis. Credit evaluations are performed for all customers requiring credit over a certain amount. CTP usually does not require collateral from its tenants. For most of the tenants, a parent company guarantee or a solvent tenant group company guarantee is in place. Investments can be made only in liquid securities and only with counterparties that have a credit rating equal to or better than CTP. Given their high credit ratings, the management does not expect any counterparty to fail to meet its obligations. As at the reporting date there were no signiicant concentrations of credit risk towards third parties. The maximum exposure to credit risk is represented by the carrying amount of each inancial asset in the statement of inancial position. CTP has bank accounts with prestigious banking institutions, where no risk is expected. CTP monitors regularly the inancial position of the related parties and the related credit risk. Credit risk concentration: IN EUR THOUSAND 2021 2020 Amounts due from banks 893,902 428,729 Amounts due from financial derivatives 172 -- Amounts due from related parties 47,652 42,091 Amounts due from third parties 36,417 24,491 Amounts due from tax institutions 53,154 13,817 Total 1,031,297 509,128 316 Amounts due from banks includes cash and cash equivalents including restricted cash reported under non- current Trade and other receivables as per 31 December of the respective year. CTP discloses signiicant amounts of receivables towards related parties. Receivables towards related parties are partly covered by the liabilities to related parties and assets held by the related parties. If the related parties breach the repayment of CTP receivables and CTP is not able to set of receivables against liabilities, CTP will be exposed to signiicant credit risk. CTP does not expect breach of repayment. Credit risk is the risk of inancial loss to the Group if a customer or counterparty to a inancial instrument fails to meet its contractual obligations and arises principally from the Group’s receivables from customers. The carrying amounts of inancial assets and contract assets represent the maximum credit exposure. Impairment losses on inancial assets and contract assets recognized in proit or loss were as follows: IN EUR THOUSAND 2021 2020 Impairment to cash and cash equivalent -- -- Impairment to trade receivables 4,137 3,257 Impairment to receivables to related parties -- -- Total 4,137 3,257 The movement in the allowance for impairment in respect of trade receivables during the year was as follows: IN EUR THOUSAND 2021 2020 Balance as at 1 January 3,257 4,114 Amounts written off -- -- Amounts derecognised due to discontinued operations -- -- Net remeasurement of loss allowance 880 -857 Balance at 31 December 4,137 3,257 The following table provides information about the exposure to credit risk and ECLs for inancial assets as at 31 December 2021 and 2020 respectively: IN EUR THOUSAND FOR THE YEAR 2021 STAGE WEIGHTED AVERAGE LOSS RATE GROSS AMOUNT IMPAIRMENT LOSS ALLOWANCE NET AMOUNT Cash and cash equivalents Low risk 0% 892,816 -- 892,816 Restricted cash Low risk 0% 1,086 -- 1,086 Receivables due from related parties Low risk 0% 47,652 -- 47,652 Trade receivables * Low to Fair risk 10% 40,554 -4,137 36,417 Total 982,108 -4,137 977,971 IN EUR THOUSAND FOR THE YEAR 2020 STAGE WEIGHTED AVERAGE LOSS RATE GROSS AMOUNT IMPAIRMENT LOSS ALLOWANCE NET AMOUNT Cash and cash equivalents Low risk 0% 419,141 -- 419,141 Restricted cash Low risk 0% 9,588 -- 9,588 Receivables due from related parties Low risk 0% 42,091 -- 42,091 Trade receivables * Low to Fair risk 12% 27,748 -3,257 24,491 Total 498,568 -3,257 495,311 * Weighted average loss rate related to Trade receivables is calculated in Note 21. 317 Capital risk CTP’s policy is to maintain a strong capital base so as to maintain creditor and market conidence and to sustain future development of the business. CTP manages its capital to ensure that entities in CTP will be able to continue as a going concern while maximizing the return to shareholders through the optimization of the debt and equity balance. CTP’s overall strategy remains unchanged compared to 2020. CTP as property investor is mainly inluenced by the fact that it leverages its project inancing by using bank debts or bonds. There is no real seasonality impact on its inancial position but rather the volatility of inancial markets that might positively or negatively inluence CTP’s inancial position. The capital structure of CTP consists of a debt, which includes the borrowings disclosed in Note 26. The Group has secured bank loans that contain loan covenants. Under the agreements, the covenants are monitored on a regular basis to ensure compliance with these agreements. Net gearing ratio: Gearing ratio calculated below compares debt to equity where a debt is deined to be the sum of long-term and short-term liabilities and equity includes all capital and reserves of the Group excluding non-controlling interests. IN EUR THOUSAND 2021 2020 Debt 5,579,815 4,182,128 Equity 4,106,830 2,263,202 Gearing ratio 136% 185% The Net loan to value (value is the fair value of the properties) ratio of CTP properties (calculated as a share of interest-bearing loans from inancial institutions and bonds issued adjusted for cash and cash equivalents available as per 31 December of the respective year on investment property, investment property under construction and plant and equipment) is approximately 43% at 31 December 2021 (2020 – 51%) that is seen as appropriate within the inancial markets where CTP is operating. As the properties are leased for a long period and CTP agreed with its inancial institutions long-term inancing, CTP expects to fulill inancial covenants in the future. Market risk Market risk is the risk that changes in market prices such as foreign exchange rates and interest rates will afect CTP’s income or the value of its holding of inancial instruments. The objective of market risk management is to manage and control market risk exposure within acceptable parameters while optimizing the return. Foreign currency risk Currency risk is managed mainly by making, when possible, investments in the same currency as the inancing sources utilized. The currency risk during the period of repayment of liabilities to third parties is usually ofset by generating revenues denominated in the same underlying currency. CTP pays for construction of buildings in local currency and therefore has foreign currency risk during the construction period. CTP uses derivative inancial instruments (FX forwards) to hedge against the exposure to foreign currency risk arising on forecast transactions. As at 31 December 2021 CTP analyzed the impact of the foreign exchange rate variances on its assets and liabilities and on its statement of comprehensive income. The impact would not be signiicant as a majority of inancial instruments is denominated in EUR. Foreign currency exchange risk is limited and arises from recognized monetary assets and liabilities. Below we disclose the currency risk based on the functional currency (EUR) of the operating subsidiaries of the Group. 318 2021 IN EUR THOUSAND CZK RON PLN HUF USD TOTAL Trade and other receivables 33,981 24,934 12,901 13,455 33,900 119,171 Cash and cash equivalents 12,940 5,385 240 7,205 -- 25,770 Financial derivatives -- -- -- 129 -- 129 Total financial assets 46,921 30,319 13,141 20,789 33,900 145,070 Trade and other payables -76,842 -38,471 -1,928 -7,845 -- -125,086 Total financial liabilities -76,842 -38,471 -1,928 -7,845 -- -125,086 Net position -29,921 -8,152 11,213 12,944 33,900 19,984 FX hedge -- -- -- -- -- -- Net position after FX hedge -29,921 -8,152 11,213 12,944 33,900 19,984 2020 IN EUR THOUSAND CZK RON PLN HUF USD TOTAL Trade and other receivables 12,605 21,163 478 2,704 -- 36,950 Cash and cash equivalents 5,823 9,933 1,144 1,414 -- 18,314 Total financial assets 18,428 31,096 1,622 4,118 -- 55,264 Financial derivatives -52 -- -- -- -- -52 Interest-bearing loans and borrowings incl. loans from related parties -- -1,623 -- -- -- -1,623 Trade and other payables -95,724 -27,183 -217 -6,907 -- -130,031 Total financial liabilities -95,776 -28,806 -217 -6,907 -- -131,706 Net position -77,348 2,290 1,405 -2,789 -- -76,442 FX hedge 10,000 -- -- -- -- 10,000 Net position after FX hedge -67,348 2,290 1,405 -2,789 -- -66,442 Sensitivity analysis A strengthening / (weakening) of EUR, as indicated below, against other currencies at the reporting date would have increased / (decreased) the equity by the amounts shown in the following table. This analysis is based on foreign currency exchange rate variances that the Group considered to be reasonably likely at the end of the reporting period. The analysis assumes that all other variables, in particular interest rates, remain constant. 2021 2020 Net position on financial assets and liabilities denominated in EUR 19,984 -66,442 Effect on profit or loss and on equity of: CZK weakening by 5% -1,496 -3,367 CZK strengthening by 5% 1,496 3,367 RON weakening by 5% 408 115 RON strengthening by 5% -408 -115 USD weakening by 5% 1,695 N/A USD strengthening by 5% -1,695 N/A PLN weakening by 5% 561 70 PLN strengthening by 5% -561 -70 HUF weakening by 5% 647 -139 HUF strengthening by 5% -647 139 Interest rate risk The interest rate risk arises mainly from the loating interest rates applicable to debt inancing. Bank loans usually have lexible interest rates based on EURIBOR or PRIBOR rates for the reference period from 1 months to 6 months increased by a ixed margin. In 2021 and 2020, CTP entered into transactions with the inancial institutions to hedge the interest rate risk (refer to Note 30). CTP mitigated the interest rate risk by holding interest rate swaps in 2021 and 2020. The interest rate proile of the Group’s interest-bearing inancial instruments as reported to the management of the Group is as follows. 319 Fixed-rate instruments 2021 2020 Receivables due from related parties 47,652 42,091 Loans owed to related parties -18 -37,171 Bonds issued -3,381,692 -1,041,971 Bank loans with fixed interest rate -1,047,636 -401,647 Bank loans covered by IRS -61,303 -1,648,904 Variable- rate instruments 2021 2020 Loans not covered by IRS -29,659 -315,344 Sensitivity analysis A reasonably possible change of 0.25% in the interest rates at the reporting date would have increased (decreased) proit by the amounts shown below. This analysis assumes that all other variables, in particular foreign currency exchange rates, remain constant. 1.1.2021 - 31.12.2021 INTEREST RATE SENSITIVITY ANALYSIS OF BANK LOANS AND BORROWINGS IN EUR THOUSAND BANK LOANS COVERED BY INTER- EST RATE SWAPS AND FIXED RATE % HEDGE LOANS WITH VARIABLE INTEREST EFFECT ON RESULT IN CASE OF INTEREST RATE INCREASE BY 25BP EFFECT ON RESULT IN CASE OF INTEREST RATE DECREASE BY 25BP Interest-bearing loans and borrowings 1,138,598 1,108,939 97.4% 29,659 -74 74 Total 1,138,598 1,108,939 97.4% 29,659 -74 74 1.1.2019 - 31.12.2020 INTEREST RATE SENSITIVITY ANALYSIS OF BANK LOANS AND BORROWINGS IN EUR THOUSAND BANK LOANS COVERED BY INTER- EST RATE SWAPS AND FIXED RATE % HEDGE LOANS WITH VARIABLE INTEREST EFFECT ON RESULT IN CASE OF INTEREST RATE INCREASE BY 25BP EFFECT ON RESULT IN CASE OF INTEREST RATE DECREASE BY 25BP Interest-bearing loans and borrowings 2,365,895 2,050,551 86.7% 315,344 -788 788 Total 2,365,895 2,050,551 86.7% 315,344 -788 788 1.1.2019 - 31.12.2020 INTEREST RATE SENSITIVITY ANALYSIS OF BANK LOANS AND BORROWINGS IN EUR THOUSAND BANK LOANS COVERED BY INTER- EST RATE SWAPS AND FIXED RATE % HEDGE LOANS WITH VARIABLE INTEREST EFFECT ON RESULT IN CASE OF INTEREST RATE INCREASE BY 25BP EFFECT ON RESULT IN CASE OF INTEREST RATE DECREASE BY 25BP Interest-bearing loans and borrowings 2,365,895 2,050,551 86.7% 315,344 -2,105 2,105 Total 2,365,895 2,050,551 86.7% 315,344 -2,105 2,105 Liquidity risk Liquidity risk is the risk that CTP will not be able to meet its inancial obligations as they fall due. With respect to the nature of its business and its assets, CTP is naturally exposed to a certain amount of liquidity risk. CTP manages liquidity risk by constantly monitoring forecast and actual cash low, inancing its investment property portfolio by long-term inancing, and reinancing where appropriate, and to use the rent income to settle the short-term liabilities. The table set out below shows liabilities at 31 December 2021 and 31 December 2020 by their remaining contractual maturity. The amounts are gross and undiscounted and include contractual interest payments and exclude the impact of netting agreements. 320 2021 CONTRACTUAL CASH FLOWS IN EUR THOUSAND UNTIL 3 MONTHS 3 - 12 MONTHS BETWEEN 1 -5 YEARS OVER 5 YEARS TOTAL Interest-bearing loans and borrowings 10,398 31,105 205,759 1,045,668 1,292,930 Bonds issued 3,750 32,500 1,994,359 1,547,978 3,578,587 Loans to related parties -- 1 19 -- 20 Derivative financial liabilities -- -- -- -- -- Lease liabilities 299 801 2,842 11,277 15,219 Trade and other payables incl. corporate income tax liability 245,513 7,911 52,721 -- 306,145 Total 259,960 72,318 2,255,700 2,604,923 5,192,901 2020 CONTRACTUAL CASH FLOWS IN EUR THOUSAND UNTIL 3 MONTHS 3 - 12 MONTHS BETWEEN 1 -5 YEARS OVER 5 YEARS TOTAL Interest-bearing loans and borrowings 21,216 119,254 673,188 1,775,341 2,588,999 Bonds issued 4,298 12,895 1,118,775 -- 1,135,968 Loans to related parties -- 2,673 37,722 -- 40,395 Derivative financial liabilities 1,706 5,064 24,911 2,722 34,403 Lease liabilities 153 240 1,054 4,555 6,002 Trade and other payables incl. corporate income tax liability 172,656 15,423 18,128 -- 206,207 Total 200,029 155,549 1,873,778 1,782,618 4,011,974 Fair value Fair value is deined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair values are obtained, as appropriate, from quoted market prices, discounted cash low projections and other valuation models. To estimate the fair value of individual classes of inancial instruments, the following methods and assumptions are used: Cash and cash equivalents, short-term investments The book value of cash and other short-term investments approximates their fair value, as these inancial instruments have a relatively short maturity. Receivables and payables The book value of short-term receivables and payables approximates their fair value, as these inancial instruments have a short maturity. Short-term loans The book value approximates their fair value, as these instruments have a loating interest rate and a short maturity. Long-term loans The book value of long-term loans and other liabilities with diferent interest rates approximates their fair values. Bond The fair value of bond issued as at 31 December 2021 is of EUR 3,385,163 thousand (2020 – EUR 1,092,358 thousand). For details refer to Note 27. Derivatives The fair value of derivatives is based on their market value. Investment property and Investment property under development Investment property and Investment property under development are stated at fair value. For details refer to Note 17 and Note 18. Global health pandemic (COVID-19) assessment Overall, whilst we will of course be adversely afected by the disruption to normal life caused by COVID-19 related measures, after 2 years with COVID-19 we believe that CTP is well placed to withstand these with limited impact on our inancial position. In general, economies are on its way to recovery from the pandemic-induced recession. Economies are set to recover to its pre-pandemic levels during next year(s). However, economies are still impacted by supply chain disruption and high energy prices. This impacts forecasted GDP growth and inlation. Although the impact of the Covid-19 is incorporated in the igures as at and for the year ended 31 December 2021, Covid-19 can impact CTP in the period after 31 December 2021. However, based on the current assessment we believe that the impact on CTP will be limited. Associated with the COVID-19 virus, we have considered possible events and conditions for the purpose of identifying whether these events and conditions afect, or may afect the future performance of the company. In making this assessment, we have considered: (i) the period up to 12 months after the end of the reporting period, as well as for (ii) the period up to 12 months after the date of this report. We assessed the following risks: • Changes in demand of the company’s products / services; CTP experienced an ongoing demand for new developments and take up of leases for its space. • Signals of deterioration of credit risk and payment behavior of debtors; whilst at the beginning of the Covid pandemic there was a lot of uncertainty as regards the predictability of the rental collection, during 2020 CTP experienced no material hick-ups in its rental collection. More speciically, 98% of receivables were paid within the contracted payment period. • Disruptions in the (inter-) national supply chains; instead we recorded an increase in demand for space as a result of this trend. • Signals of change in payment terms required by creditors; as stated above, after an initial period of unpredictability in this respect, during which time a limited number of tenants contacted CTP for rental freeze (which were declined by us), the payment discipline of our tenants kept its normal pattern. 321 • Disruptions in the company’s core processes (construction/ property management / oices / work force etc.); apart from some initial minor delays in construction activities due to workers staying at home due to the pandemic, our construction was resumed to normal pace quickly. In hindsight and when reviewing its full efect, no material disruptions were recorded. • Issues with providers of inancing / loan covenants / credit facilities; as a result of changes in the structure of our bond/bank inancing, CTP repaid in 2021 bank loans in the amount of 1.8 million and successfully issued senior unsecured bonds in nominal amount of EUR 2,500 million. Another bond in the amount of EUR 700 million was issued in January 2022. This provided another indicator of CTP’s sound inancial position and trust of investors. Although change in structure of CTP inancing has a positive impact on meeting bank conditions, CTP wishes to maintain its solid bank relationships by making sure that core relationship banks can beneit through ofering fee-based banking services to the Group. CTP maintains its solid bank relationships by making sure that core relationship banks can beneit through ofering fee-based banking services to the Group. As a result of above, the Group received syndicated bank loan of EUR 0.6 million in September 2021 We expect COVID-19 to have negative but also positive efects (such as an increase demand for our premises in suitable e-commerce locations due to move from classic retailers to e-commerce). Furthermore, we expect that manufacturing locations will be located closer to the consumption end of the European supply chains due to the trend of diversiication of manufacturing locations, which will lead to an increase of the demand for new space. Therefore, on balance we believe that for CTP positive efects will prevail in the mid-term. During 2021 CTP experienced no liquidity issues with tenants. CTP’s business proile is resilient as it beneits from a very diversiied portfolio (in terms of both geographical locations and tenants). CTP has no dependence on any single individual tenant or location in isolation. The independent valuers of the industrial portfolio did not include a material valuation uncertainty statement in the valuations as per 31 December 2021, which conirms that the appraiser has suicient market evidence and the estimation uncertainty is comparable to the period before the outbreak of COVID-19. The management is convinced that the current uncertainties related to the COVID-19 virus do not impact the presented Consolidated inancial statements as per 31 December 2021. CTP is not aware of any other events that have occurred since the statement of inancial position date that would have a material impact on these inancial statements as at 31 December 2021 particularly also in respect of the going-concern assumption covering the 12 months period after the day of this report. 36. Contingent liabilities Issued guarantees Under Guarantee agreements concluded following the sale of a portfolio A, CTP Invest, spol. s r.o. and CTP CEE Properties, spol. s r.o. provided speciic guarantees to the buyer of the entities being the companies established by Deka Immobilien Investment GmbH and WestInvest Gesellschaft ür Investmentfonds GmbH. The speciic guarantees include (i) Rental Guarantee (Vacant Premises, Rent Shortfall, Outstanding Tenant Incentives) (ii) Tenant Guarantees (Default, Break Options, Non-Solicitation) and (iii) Technical Guarantee (for the quality of the buildings). The duration of the guarantees is until 15 November 2028, unless they terminate earlier pursuant to the agreement. During 2020 Raifeisenbank a.s. issued a bank guarantee on behalf of the Group in favor of BOHEMIA SHELFCO 2018 S.R.O. in the amount of EUR 848 thousand. The bank guarantee relates to the warranty under the General Agreement for the delivery of a turn-key project in Stříbro, Czech Republic and terminates on 3 June 2022. Contracted work As at 31 December 2021, the Group has contracted work with external suppliers related to realization of construction project, which is not performed at the year-end of EUR 314,240 thousand (2020 – EUR 172,595 thousand). 322 37. Pledges Shares, receivables, future receivables and other assets in some of the subsidiaries are pledged in favor of the inancing institutions for securing the bank loans received by them. As at the date of these inancial statements the assets in the following companies are pledged: COMPANY PLEDGE IN FAVOUR OF CTP Moravia South, spol. s r.o. Komerční banka, a.s. (as agent) + others CTP Portfolio Finance Czech B.V. Aareal Bank AG CTP Slovakia, s. r. o. Tatra banka, a.s. CTPark Alpha Kft. Unicredit Bank Hungary Zrt. CTPark Arrabona Kft. Unicredit Bank Hungary Zrt. CTPark Bor, spol. s r.o. Aareal Bank AG CTPark Brno I, spol. s r.o. Komerční banka, a.s. (as agent) + others CTPark Brno II, spol. s r.o. Komerční banka, a.s. (as agent) + others CTPark Čierny Les, spol. s r.o. Tatra banka, a.s. CTPark Modřice, spol. s r.o. Aareal Bank AG CTPark Námestovo spol. s r.o. Tatra banka, a.s. CTPark Ostrava, spol. s r.o. Komerční banka, a.s. (as agent) + others CTPark Prague East, spol. s r.o. Komerční banka, a.s. (as agent) + others CTPark Seven Kft. Unicredit Bank Hungary Zrt. CTP Germany II GmbH Volksbank Jever eG 38. Subsequent events On 20 January 2022, the Company CTP N.V. issued EUR 700 million unsecured bonds in nominal value of EUR 100,000 each. The bonds are issued as subordinated, with ix interest rate 0.875% per annum (“p.a.”) and bonds are due on 20 January 2026. The ISIN of the bonds is XS2434791690. There are no covenants related to the bonds. On 24 January 2022, the Group has repaid bonds from the irst emission occurred in October 2020 in the nominal value of EUR 168,189 thousand. On 28 January 2022, the Group has received 98.17% shareholder support for its voluntary public takeover and delisting ofer (the “Ofer”) for and contemplated merger with Deutsche Industrie REIT-AG (now named Deutsche Industrie Grundbesitz AG) (“DIR”). This includes a further 10.39% of the shares in DIR (“the DIR Shares”) tendered during the additional acceptance period and a DIR shareholder with 4.67% of DIR Shares expressing support for the merger. A further 12.60% of DIR Shares was previously secured for the merger via non-tender commitments. The expected impact of acquisition on consolidated inancial statements is as follows: IN EUR THOUSAND ACQUISITION Investment property 828,631 Cash and cash equivalents 9,355 Trade and other receivables 106,796 Assets held for sale 10,183 Total assets 954,966 Trade and other liabilities -32,350 Bond liabilities -206,961 Interest bearing loans -234,914 Total liabilities -474,226 Net assets acquired 480,740 323 The total number of DIR Shares tendered in the Ofer is in aggregate 25,951,833 DIR Shares, corresponding to approximately 80.90% of the outstanding share capital in DIR. Additionally, a DIR shareholder, holding 1,498,505 DIR Shares, has expressed its support for the transaction and the intention to vote in favour of the contemplated cross-border merger at the extraordinary general meeting of DIR. Entering into non-tender agreements, CTP also secured the support of 4,041,958 DIR Shares held by DIR’s largest shareholder for the cross-border merger (12.60% of the outstanding DIR Shares), resulting in total support for the transaction of 98.17% as illustrated in the table below: NUMBER OF SHARES % OF TOTAL DIR SHARES Share consideration 25,937,060 80.85% Cash consideration 14,773 0.05% Total DIR Shares tendered 25,951,833 80.90% Non-tender agreements 4,041,958 12.60% Statement of intent 1,498,505 4.67% Total shareholder support 31,492,296 98.17% Closing and settlement of the Ofer, in which CTP is ofering either a cash consideration of EUR 17.12 or a share consideration of 1.25 shares in the share capital of CTP (the “CTP Shares”) for each tendered DIR Share (the “Share Consideration”), is expected to take place on 3 February 2022. During the acceptance period, a total of 25,937,060 tendered DIR Shares opted for the Share Consideration. Accordingly, a total of 32,421,325 CTP Shares will be issued, which will result in an increase of the total number of issued CTP Shares to 432,814,135 and representing an increase of 8.10% of CTP’s issued share capital. As a result, the stake of its founder and CEO, Remon Vos, will reduce to c.76.91%. On 1 January 2022, the entities CTPark Bor II, spol. s r.o. and CTPark Bor III, spol. s r.o. were incorporated by spin-of from CTP Alpha, spol. s r.o. The part of the assets was transferred from CTP Alpha, spol, s r.o. to these entities according to the project prepared on 16 November 2021. Subsequently CTPark Bor III, spol. s r.o. was transferred from CTP Industrial Property, spol. s r.o. to CTPark Bor, spol. s r.o. on 21 February 2022. In 2022, the entity CTP Delta B.V. was renamed to CTPark Bremen B.V. In 2022, the Group wound up subsidiary CTP Property Serbia, spol. s.r.o. CTP is not aware of any other events that have occurred since the statement of inancial position date that would have a material impact on these inancial statements as at 31 December 2021. Amsterdam, 8 March 2022 Remon L. Vos Richard J. Wilkinson Barbara Knolach Gerard van Kesteren Susanne Eickermann-Riepe Pavel Trenka 324 325 COMPANY FINANCIAL STATEMENTS 326 Company balance sheet As at 31 December IN EUR THOUSAND NOTE 31 DECEMBER 2021 31 DECEMBER 2020 Assets Property, plant & equipment 35 -- Intangible assets 30 -- Investments in group companies 4 3,424,436 2,262,021 Long-term receivables due from related parties 15 3,281,737 737,922 Deferred tax asset 14 5,049 -- Total non-current assets 6,711,287 2,999,943 Trade and other receivables 2,777 493 Trade and other receivables from related parties 15 28,059 -- Cash and cash equivalents 10 766,674 307,154 Total current assets 797,510 307,647 Total assets 7,508,797 3,307,590 Issued capital 64,063 53,760 Share premium reserve 2,661,979 1,858,460 Legal reserve on participating interest 2,488,095 1,586,323 Translation reserve 10,716 14,458 Retained earnings -2,143,959 -1,676,396 Result for the year 1,025,936 426,597 Total equity 5 4,106,830 2,263,202 Liabilities Long-term payables 3,615 -- Bonds issued 6 3,368,202 1,041,971 Total non-current liabilities 3,371,817 1,041,971 Bonds issued 6 13,490 -- Trade and other payables to related parties 15 15,280 -- Trade and other payables 1,380 2,417 Total current liabilities 30,150 2,417 Total liabilities 3,401,967 1,044,388 Total equity and liabilities 7,508,797 3,307,590 327 Company income statement IN EUR THOUSAND NOTE 31 DECEMBER 2021 PERIOD FROM 21 OCTOBER 2019 TO 31 DECEMBER 2020 Other income 11 15,681 -- Administration costs 12 -21,164 -7,649 Net other income / expenses -5,483 -7,649 Net loss before finance costs -5,483 -7,649 Interest income 13 53,463 3,815 Interest expense -32,198 -4,178 Other financial expense -20,016 -1,107 Net finance income / expenses 13 1,249 -1,470 Result from participating interest 1,025,147 435,716 Result before income tax 1,020,913 426,597 Income tax expense 14 5,023 -- Result for the year 1,025,936 426,597 1. General information The company inancial statements are part of the 2021 inancial statements of CTP N.V. (the “Company”). The principal operation of the Company is the exploitation of investment property throughout Europe, in the Czech Republic, Romania, Hungary, Slovakia, Serbia and Poland through its subsidiaries. 2. Principles for measurement of assets and liabilities and determination of result The company inancial statements have been prepared in accordance with Title 9, Book 2 of the Dutch Civil Code. For setting the principles for the recognition and measurement of assets and liabilities and determination of results for the company inancial statements, the Company makes use of the option provided in section 2:362(8) of the Dutch Civil Code. This means that the principles for the recognition and measurement of assets and liabilities and determination of the result (hereinafter referred to as principles for recognition and measurement) of the company inancial statements of the Company are the same as those applied for the consolidated EU-IFRS inancial statements. These principles also include the classiication and presentation of inancial instruments, being equity instruments or inancial liabilities. In case no other principles are mentioned, refer to the accounting principles as described in the consolidated inancial statements. For an appropriate interpretation of these inancial statements, the separate inancial statements should be read in conjunction with the consolidated inancial statements. All amounts in the company inancial statements are presented in EUR thousand, unless stated otherwise. Participating interests in group companies Participating interests in group companies are accounted for in the company inancial statements according to the equity method. Refer to the basis of consolidation accounting policy in the consolidated inancial statements. 328 Result of participating interests The share in the result of participating interests consists of the share of the Company in the result of these participating interests. Results on transactions, where the transfer of assets and liabilities between the Company and its participating interests and mutually between participating interests themselves, are not incorporated insofar as they can be deemed to be unrealised. Impairment The Company applies an ECL (expected credit loss) model. Under this approach, all inancial assets in the scope of the impairment model of the Company generally carry a loss allowance – even those that are newly originated or acquired. Under the general approach, the measurement basis of Company’s assets, other than investment property, investment property under development and deferred tax assets, depends on whether there has been a signiicant increase in credit risk since initial recognition. The Company bases the impairment calculation on its historical, observed default rates, and also takes into account adjustments of forward-looking estimates that include the probability of a worsening economic environment within the next years. At each reporting date, the Company updates the observed default history and forward-looking estimates. Loans provided Loans are inancial assets with ixed 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. Loans provided are subsequently measured at amortised cost using the efective interest method, less any impairment losses. The Company classiies as a current portion any part of long-term loans that is due within one year from the reporting date. 3. Financial reporting period and comparative figures CTP N.V. is founded on 21 October 2019 and has, according to the articles of association an extended inancial year which ended at the balance sheet date of 31 December 2020. Therefore, the comparative inancial year of CTP N.V. presents the period 21 October 2019 up to and included 31 December 2020. CTP N.V. acquired CTP Property B.V. and CTP Invest, spol. s r.o. under common control. The company inancial statements follow the legal requirements rather than the economic perspective of the common- control transactions (refer to Note 3b to the consolidated inancial statements) therefore the common control transactions are accounted for as of the date of incorporation of CTP N.V. The Company decided to re- present its comparatives and adjust its current reporting period before the date of the transaction in case the combination had occurred as at the date of incorporation. 4. Investments in group companies The Company has as at 31 December the following inancial interests in group companies: SHARE IN ISSUED CAPITAL IN % AMOUNT IN EUR THOUSAND 31 DECEMBER 2021 31 DECEMBER 2020 31 DECEMBER 2021 31 DECEMBER 2020 Participating interests 100.0% 100.0% 3,424,436 2,262,021 The Company holds 100% ownership interests in two subsidiaries – CTP Invest, spol. s r.o. with statutory seat in the Czech Republic and CTP Property B.V. with statutory seat in the Netherlands. 329 The movements of the investment in group companies can be shown as follows: IN EUR THOUSAND PARTICIPATING INTERESTS IN GROUP COMPANIES TOTAL Balance at 1 January 2021 2,262,021 2,262,021 Acquisitions -- -- Increase in investment - capital contribution 133,483 133,483 Share in result of participating interests - OCI 3,785 3,785 Share in result of participating interests 1,025,147 1,025,147 Balance at 31 December 2021 3,424,436 3,424,436 IN EUR THOUSAND PARTICIPATING INTERESTS IN GROUP COMPANIES TOTAL Balance at 21 October 2019 1,796,664 1,796,664 Acquisitions -- -- Increase in investment - capital contribution 450,466 450,466 Decrease in investments -285,978 -285,978 Returned contribution -12,102 -12,102 Dividends received -122,745 -122,745 Share in result of participating interests 435,716 435,716 Balance at 31 December 2020 2,262,021 2,262,021 As pooling of interest is applied the share in result of participating interest covers the period 21 October 2019 up to and including 31 December 2020. This includes the result of CTP Invest, spol. s r.o. over the period 21 October 2019 (accounting date) and 27 January 2020 (transaction date) of EUR 69.6 million. 5. Shareholders’ equity IN EUR THOUSAND ISSUED CAPITAL SHARE PREMIUM RESERVE LEGAL RESERVE FOR PAR- TICIPATING INTEREST TRANS- LATION RESERVE RETAINED EARNINGS NET PROFIT FOR THE PERIOD TOTAL EQUITY Balance as at 1 January 2021 53,760 1,858,460 1,586,323 14,458 -1,676,396 426,597 2,263,202 Increase of share capital 9,763 809,572 -- -- -- -- 819,335 Dividends 540 -6,053 -- -- -- -- -5,513 Increase of other legal reserve -- -- 901,772 -- -894,218 -- 7,554 Other -- -- -- -- 85 -- 85 Increase in share without change in control -- -- -- -- -27 -- -27 Translation reserve -- -- -- -3,742 -- -- -3,742 Appropriation of profit -- -- -- -- 426,597 -426,597 -- Net result for the year -- -- -- -- -- 1,025,936 1,025,936 Balance as at 31 December 2021 64,063 2,661,979 2,488,095 10,716 -2,143,959 1,025,936 4,106,830 330 IN EUR THOUSAND ISSUED CAPITAL SHARE PREMIUM RESERVE LEGAL RESERVE FOR PAR- TICIPATING INTEREST TRANS- LATION RESERVE RETAINED EARNINGS NET PROFIT FOR THE PERIOD TOTAL EQUITY Balance as at 21 October 2019 -- 1,802,714 1,345,120 5,255 -1,356,425 -- 1,796,664 Increase of share capital 53,760 -53,560 -- -- -- -- 200 Increase of other legal reserve -- -- 241,203 -- -241,203 -- -- Result of CTP Invest, spol. s r.o. over the period 21 October 19 till 27 January 2020 -- 69,565 -- -- -69,565 -- -- Returned contribution -- -12,102 -- -- -- -- -12,102 Increase in share premium -- 51,843 -- -- -- -- 51,843 Translation reserve -- -- -- 9,203 -9,203 -- -- Net result for the year -- -- -- -- -- 426,597 426,597 Balance as at 31 December 2020 53,760 1,858,460 1,586,323 14,458 -1,676,396 426,597 2,263,202 Issued capital As at 31 December 2021, the issued capital comprised of the following: TYPE OF SHARES NO. OF SHARES NOMINAL VALUE OF SHARE ISSUED CAPITAL IN EUR Ordinary shares 400,392,810 EUR 0.16 64,062,850 In 2018 and 2019, the issued capital consisted of 100 ordinary shares with nominal value of share of EUR 1. In April 2020, based on approved change in Articles of association, the Company issued share capital amounted to EUR 200 thousand divided into 20,000,000 shares with nominal value of EUR 0.01. Nominal value of share was increased to EUR 0.16 per share and share capital increased to EUR 3,200 thousand. In December 2020, an additional 316,000,000 shares were issued, with the nominal value of EUR 0.16 per share. As at 31 December 2020, the issued capital comprised of the following: TYPE OF SHARES NO. OF SHARES NOMINAL VALUE OF SHARE ISSUED CAPITAL IN EUR Ordinary shares 336,000,000 EUR 0.16 53,760,000 As at 29 March 2021, an additional 61,017,000 shares were issued, with nominal value of EUR 0.16 per share. As at date of issuance of new shares, on 29 March 2021, the Company has emitted its shares on Amsterdam’s stock exchange. On 17 August 2021, CTP N.V. announced a H1 2021 interim dividend of EUR 0.17 per share. Shareholders were given the choice to receive the interim dividend either in cash or shares. The number of dividend rights that entitles to 1 new ordinary CTP share has been set at 108. The conversion ratio is based on the volume-weighted average price of the CTP share during the period from 26 August up to and including 30 August 2021. Shareholders representing 92% of the total number of outstanding ordinary shares have chosen to receive the dividend in stock, while shareholders representing 8% of the total number of outstanding ordinary shares opted for payment in cash. Based on the conversion ratio and after delivery of the ordinary shares due to the conversion of dividend rights, the total number of outstanding ordinary shares increased by 3,375,810 to a total of 400,392,810 shares. The payment date for the dividend payment in cash and delivery of the ordinary shares has been set on 22 September 2021. 331 As at date of issuance of new shares, on 29 March 2021, the Company has emitted its shares on Amsterdam’s stock exchange. Share premium reserve The share premium concerns the income from the issuing of shares in so far as this exceeds the nominal value of the shares (above par income). Share premium as per 21 October 2019 of EUR 1,802.7 million consists of the book value of CTP Property B.V. (EUR 951.8 million) and CTP Invest, spol. s r.o. (EUR 850.9 million). The book value of CTP Invest, spol. s r.o. at the transaction date (27 January 2020) is EUR 920.5 million. As pooling of interest has been applied the result over the period 21 October 2019 (accounting date) and 27 January 2020 (transaction date) of EUR 69.6 million of CTP Invest, spol. s r.o. is shown in the movement schedule of equity as transfer of retained earnings to share premium. The existing legal reserves are transferred as at 21 October 2019 and movements are shown since that date. In 2021, after emission of shares on Amsterdam’s stock exchange, there is an increase of EUR 809,572 thousand, which comprise of EUR 844,476 thousand of cash acquired and capitalised IPO costs of EUR 34,904 thousand. Increase in Share premium as at 30 September 2021 of EUR 61,439 thousand is connected with announced interim dividends, which were paid in form of new shares. Legal reserve for participating interest Other legal reserves which amount to EUR 2,488,095 thousand (2020 – EUR 1,586,323 thousand) consists as per 31 December 2021 solely out of a legal reserve for participating interests and pertains to participating interests that are accounted for according to the equity accounting method. The reserve represents the diference between the participating interests’ retained proit and direct changes in equity, as determined on the basis of the Company’s accounting policies, and the share thereof that the Company may distribute. The acquisition of the participations in CTP Property B.V. and CTP Invest, spol. s r.o. including its subsidiaries from related party Multivest B.V. under a common control transaction occurred in 2019 and 2020. The legal reserve signiicantly increased as the valuation gain on this portfolio was transferred from the retained earnings. The shares thereof the Company may distribute takes into account any proits that may not be distributable by participating interests that are Dutch limited companies based on the distribution tests to be performed by the management of those companies. The legal reserves are determined on an individual basis. Net result for the year Net result for the year consists of share in result of participating interest, administration cost and net inance expense. At the General Meeting, the following appropriation of the result 2021 will be proposed: addition of the amount of EUR 1,025,936 thousand to the retained earnings. 6. Bonds issued Current period BOND ISSUANCE DATE ISIN NOMINAL VALUE OF TOTAL BONDS ISSUED IN EUR NOMINAL VALUE OF EACH BOND CURRENCY TYPE FIX INTEREST RATE PER ANNUM ("P.A") MATURITY DATE FAIR VALUE OF BONDS IN TEUR 27 Sept 2021 XS2390530330 500,000,000 100,000 EUR senior unsecured 0.625% 27 Sept 2026 494,545 27 Sept 2021 XS2390546849 500,000,000 100,000 EUR senior unsecured 1.500% 27 Sept 2031 485,270 21 June 2021 XS2356029541 500,000,000 100,000 EUR senior unsecured 0.500% 21 June 2025 498,545 21 June 2021 XS2356030556 500,000,000 100,000 EUR senior unsecured 1.250% 21 June 2029 490,725 18 Feb 2021 XS2303052695 500,000,000 100,000 EUR senior unsecured 0.750% 18 Feb 2027 486,940 27 Nov 2020 XS2264194205 400,000,000 100,000 EUR senior unsecured 0.625% 27 Nov 2023 404,296 1 Oct 2020 XS2238342484 500,002,000 100,000 EUR senior unsecured 2.125% 1 Oct 2025 524,842 Total 3,400,002,000 3,385,163 332 Prior period BOND ISSUANCE DATE ISIN NOMINAL VALUE OF TOTAL BONDS ISSUED NOMINAL VALUE OF EACH BOND CURRENCY TYPE FIX INTEREST RATE PER ANNUM ("P.A") MATURITY DATE FAIR VALUE OF BONDS IN TEUR 27 Nov 2020 XS2264194205 400,000,000 100,000 EUR senior unsecured 0.625% 27 Nov 2023 403,228 1 Oct 2020 XS2238342484 650,000,000 100,000 EUR senior unsecured 2.125% 1 Oct 2025 689,130 Total 1,050,000,000 1,092,358 On 29 September 2021, the Group has repaid bonds from the irst emission occurred in October 2020 in the nominal value of EUR 149,998 thousand. IN EUR THOUSAND 31 DECEMBER 2021 21 OCTOBER 2019 - 31 DECEMBER 2020 Non-current and current liabilities Bonds issued - nominal value 3,550,000 1,050,000 Repayment of bonds – nominal value -149,998 -- Nominal value after payment 3,400,002 1,050,000 Interest expense 13,490 3,682 Discount applied -27,878 -8,605 Amortisation of applied discount 3,796 345 Bond issuance costs -9,200 -3,602 Amortisation of bond issuance costs 1,482 151 Balance at 31 December 3,381,692 1,041,971 In 2021, the Company has replaced revolving credit facility from the year 2020 by new revolving credit facility of EUR 400,000 thousand for a three-year period. The Company does not expect a drawdown either partial or for the full amount under this facility in 2022. In December 2020, CTP N.V. has concluded the agreement with Raifeisen International Bank A.G. for providing the EUR 100,000 thousand revolving facility to the Company. As at 31 December 2021 and 31 December 2020, the revolving facility was not used for inancing of the Group. 7. Financial instruments General The Group has exposure to the following risks from its use of inancial instruments: Credit risk Credit risk refers to the risk that the counterparty will default on its contractual obligations resulting in a inancial loss to CTP. Credit risk concentration: IN EUR THOUSAND 2021 2020 Amounts due from banks 766,674 307,154 Amounts due from related parties 3,309,796 737,922 Amounts due from third parties 2,777 493 Total 4,079,247 1,045,569 333 Liquidity risk Liquidity risk is the risk that company will not be able to meet its inancial obligations as they fall due. With respect to the nature of its business and its assets, the Company is naturally exposed to a certain amount of liquidity risk. 2021 CONTRACTUAL CASH FLOWS IN EUR THOUSAND UNTIL 3 MONTHS 3 - 12 MONTHS BETWEEN 1 -5 YEARS OVER 5 YEARS TOTAL Bonds issued 3,750 32,500 1,994,359 1,547,978 3,578,587 Trade and other payables incl. corporate income tax liability 16,660 -- 3,615 -- 20,275 Total 20,410 32,500 1,994,674 1,547,978 3,598,862 2020 CONTRACTUAL CASH FLOWS IN EUR THOUSAND UNTIL 3 MONTHS 3 - 12 MONTHS BETWEEN 1 -5 YEARS OVER 5 YEARS TOTAL Bonds issued 4,298 12,895 1,118,775 -- 1,135,968 Trade and other payables incl. corporate income tax liability 2,417 -- -- -- 2,417 Total 6,715 12,895 1,118,775 -- 1,138,385 Market risk Market risk is the risk that changes in market prices such as foreign exchange rates and interest rates will afect CTP’s income or the value of its holding of inancial instruments. The objective of market risk management is to manage and control market risk exposure within acceptable parameters while optimizing the return. CTP N.V. is not subject of interest rate risk, nor foreign currency risks, as all loans provided are with ixed interest rate and in functional currency of the Group EUR. In the notes to the consolidated inancial statements information is included 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. 8. Off-balance sheet assets and liabilities In 2021 and 2020, the Company has no of-balance sheet assets, nor liabilities to be presented in these inancial statements. 9. Trade and other payables Trade and other payables consist of arrangement fees, accruals for legal, tax and audit services. 10. Cash and cash equivalents Cash and cash equivalents of EUR 766,674 thousand (2020 – EUR 307,154 thousand) consist of petty cash, cash at bank balances, including cash acquired from bond issuance and cash on deposit account. 11. Other income Other income of EUR 15,681 thousand represents license fee invoiced to the companies in the Group. 334 12. Operational expenses IN EUR THOUSAND 31 DECEMBER 2021 21 OCTOBER 2019 - 31 DECEMBER 2020 Administrative expenses, legal, tax and audit 21,164 7,649 Total 21,164 7,649 Operational expenses consist of wages, salaries, and management fees. For details related to audit fees, please refer to table below. Only audit services were provided to the Group. Audit fees The following fees were charged by KPMG Accountants N.V. to the Company, its subsidiaries and other consolidated companies, as referred to in Section 2.382a (1) and (2) of the Dutch Civil Code: IN EUR THOUSAND FOR 2021 KPMG ACCOUNTANTS N.V. OTHER KPMG NETWORK TOTAL KPMG Audit fees 198 373 571 IPO costs 413 -- 413 Other services 94 -- 94 Total 705 373 1,078 Other services comprise expenses related IPO advisory services. IN EUR THOUSAND FOR 2020 KPMG ACCOUNTANTS N.V. OTHER KPMG NETWORK TOTAL KPMG Audit fees 173 799 972 Other services -- -- -- Total 173 799 972 13. Net finance income/expense IN EUR THOUSAND 31 DECEMBER 2021 21 OCTOBER 2019 - 31 DECEMBER 2020 Interest income from related parties 53,463 3,815 Finance income 53,463 3,815 Bond interest expenses -26,120 3,682 Bond Issuance costs amortisation -6,078 496 Other financial expense -20,016 1,107 Finance costs -52,214 5,285 Net finance income / expense 1,249 -1,470 Other inancial expenses consist of bank fees of EUR 1,732 thousand (2020 – EUR 1 thousand), inancing fees of EUR 14,777 thousand (2020 – EUR 1,106 thousand) and exchange rate diferences of EUR 3,507 thousand (2020 – EUR 0 thousand). 335 14. Income taxes No Dutch current income taxes have been recorded, primarily because of the participation exemption in 2020. In 2021, withholding tax was paid of EUR 26 thousand. Deferred tax asset was recognized in 2021 of EUR 5,049 thousand. 15. Related parties In periods as of 31 December 2021 and 21 October 2019 up to 31 December 2020 the Group had the following interest income with related parties: 31 DECEMBER 2021 21 OCTOBER 2019 - 31 DECEMBER 2020 IN EUR THOUSAND REVENUES EXPENSES REVENUES EXPENSES CTP Industrial Property CZ, spol. s r.o. 6,880 -- -- -- Spielberk Business Park, spol. s r.o. (formerly Spielberk Office Center, spol. s.r.o.) 2,875 -- 664 -- CTP Invest, spol. s r.o. 2,577 -- 111 -- CTPARK BUCHAREST WEST I SRL 2,215 -- 466 -- CTPARK ETA SRL 1,850 -- 0 -- CTPARK BUCHAREST SRL 1,669 -- 14 -- CTP Holding B.V. 1,588 -- 340 -- CTPark Bucharest A1 SRL 1,483 -- 121 -- CTPark Bratislava, spol. s r.o. 1,385 -- 300 -- CTPARK GAMMA SRL 1,329 -- 46 -- CTPARK BETA SRL 1,215 -- 12 -- CTPARK PHI SRL 1,156 -- -- -- CTPARK ZETA SRL 1,149 -- 7 -- CTP Vlněna Business Park, spol. s r.o. (formerly CTP Property XVII, spol. s.r.o.) 1,147 -- -- -- Spielberk Business Park II, spol. s r.o. (formerly CTP INVEST V, spol. s.r.o.) 1,094 -- 232 -- CTPARK BUCHAREST WEST II SRL (formerly H.E.E. (MERCURY) PROPRIETATI SRL) 875 -- 155 -- CTPark Košice, spol. s r. o. 808 -- 152 -- CTPark Nine Kft. 803 -- -- -- CTPark Biatorbágy Kft. 735 -- -- -- CTPARK ALPHA SRL 729 -- -- -- CTP CONTRACTORS SRL 724 -- -- -- CTPark Žilina Airport, spol. s r. o. 717 -- -- -- CTPark Eleven Kft. 694 -- -- -- CTP Property B.V. (formerly CTP Invest B.V.) 675 -- 49 -- CTP Alpha SK, spol. s r.o. 582 -- 91 -- CTP Zeta d.o.o. Beograd-Novi Beograd 575 -- 3 -- CTPARK PSI SRL 568 -- -- -- CTPARK BUCHAREST UPSILON SRL 563 -- -- -- CTPark Twelve Kft. 545 -- -- -- CTPark Prague North III, spol. s r.o. (formerly DUNSTAR a.s.) 543 -- 25 -- CTPark Fourteen Kft 519 -- -- -- CTPARK TAU SRL 514 -- -- -- CTP Beta B.V. 510 -- -- -- Other 12,172 -- 1,027 -- Total 53,463 -- 3,815 -- The revenues comprise interest on loan and borrowings provided to the subsidiaries. 336 As at 31 December 2021 and 31 December 2020, the Group has the following Long-term receivables due from related parties: IN EUR THOUSAND 2021 2020 CTP Industrial Property CZ, spol. s r.o. 824,173 -- CTP Invest, spol. s r.o. 144,285 5,448 CTPark Eighteen Kft. 133,266 -- CTPARK ETA SRL 89,685 -- Spielberk Business Park, spol. s.r.o. (formerly Spielberk Oice Center, spol. s.r.o.) 81,847 101,586 CTPARK BUCHAREST WEST I SRL 70,251 80,527 CTPark Bratislava, spol. s r.o. 64,488 48,913 CTPARK BUCHAREST SRL 58,224 10,235 CTP Vlněna Business Park, spol. s r.o. (formerly CTP Property XVII, spol. s r.o.) 57,480 -- CTPark Eleven Kft. 57,180 -- CTPARK GAMMA SRL 56,042 27,008 CTP Beta B.V. 54,560 -- CTPARK ZETA SRL 49,460 2,207 CTP CONTRACTORS SRL 49,099 -- CTPark Bucharest A1 SRL 46,721 20,936 CTPark Košice, spol. s r. o. 45,730 32,309 CTPark Brno Líšeň East, spol. s r.o. (formerly CTP Invest XX, spol. s r.o.) 44,841 3,785 CTPark Twelve Kft. 44,600 -- CTPARK THETA SRL 43,881 -- CTPARK PHI SRL 43,671 -- CTP Holding B.V. 42,318 25,730 CTPARK ALPHA SRL 42,289 -- CTPark Nine Kft. 35,855 -- CTPARK BETA SRL 35,033 8,983 CTP Alpha SK, spol. s r.o. 35,005 19,299 CTP Property B.V. (formerly CTP Invest B.V.) 34,502 35,831 CTPark Eta EOOD 31,219 -- CTPark Fourteen Kft 31,184 -- CTPARK PSI SRL 31,142 -- CTPark Žilina Airport, spol. s r. o. 31,017 -- Spielberk Business Park II, spol. s r.o. (formerly CTP INVEST V, spol. s r.o.) 28,791 35,463 CTPark Opole Sp. Z o.o. (formerly CTP Alpha Poland Sp. Z.o.o. ) 26,597 12,228 CTP Invest Poland sp. Z o.o. 25,304 -- Amsterdam Logistic Cityhub B.V. 24,793 -- CTP IQ Ostrava, spol. s r.o. 24,319 -- CTP LAMBDA POLAND SP Z O.O. 23,848 -- CTPark Delta Kft. 23,178 -- CTPark Biatorbágy Kft. 22,808 -- CTPARK BUCHAREST WEST II SRL (formerly H.E.E. (MERCURY) PROPRIETATI SRL) 21,034 23,585 CTP Gamma GmbH 20,819 -- CTPARK OMEGA SRL 19,987 10,204 CTP Zeta doo Beograd-Novi Beograd 19,228 18,003 CTPARK TAU SRL 19,111 -- CTPARK BUCHAREST UPSILON SRL 19,072 -- CTPark Nineteen Kft. 19,036 -- CTP XXI, spol. s r.o. (formerly CTP Invest XXVIII, spol. s.r.o.) 18,445 -- CTP Alpha B.V. 18,222 -- CTPark Thirteen Kft 18,115 -- CTP Slovakia, s.r.o. 17,564 12,819 CTP Delta Poland Sp. z o.o. 15,779 -- CTPark Brno III, spol. s r.o. (formerly Bor Logistics, spol. s.r.o.) 15,023 -- CTPARK KAPPA SRL 14,062 -- CTPark Sixteen Kft. 13,718 -- CTPark Hlohovec, spol. s r.o. (formerly CTPark Nitra, s.r.o.) 12,743 14,973 CTPARK KM23 NORTH SRL 12,502 -- CTPARK DELTA SRL 12,339 9,814 CTPARK SIGMA SRL 12,323 10,429 337 Interest rate on long-term receivables due from related parties is 1.2% - 5.6% p.a. depending on purpose and country speciic conditions. IN EUR THOUSAND 2021 2020 CTP VIII, spol. s r.o. (formerly CTP Property XXXII, spol. s.r.o.) 11,751 -- CTP Delta doo Beograd-Novi Beograd 11,678 11,968 CTPark Gamma Kft. 11,598 11,384 CTPark Miu SRL 10,826 3,415 CTPark Beta Kft. 10,649 15,668 CTPark Delta EOOD 10,643 11,547 CTPark Seven Kft. 9,884 -- CTP Invest doo Beograd-Novi Beograd 9,743 -- CTPark Arrabona Kft. 9,566 -- CTP Zeta GmbH 9,109 -- CTP Gamma Poland Sp. z o.o. 9,057 -- CTPark Beta EOOD 8,517 -- CTPark Prague North III, spol. s r.o. (formerly CTPark Prague North III, a.s.) 8,495 12,675 CTP Alpha GmbH 8,474 -- CTPark Čierny Les, spol. s r.o. (formerly CTPark Žilina, spol. s.r.o.) 8,406 -- CTPark Plzeň, spol. s r.o. (formerly CTP Invest XIX, spol. s.r.o.) 8,392 -- CTPark Alpha Kft. 8,359 -- CTP Hotel Prague, spol. s r.o. 8,128 19,973 CTPark Prešov s.r.o. (formerly ABL Slovakia s.r.o.) 8,039 -- CTP Gamma doo Beograd-Novi Beograd 7,793 9,338 CTPark Gamma EOOD 7,617 -- CTPARK LAMBDA SRL 7,234 5,398 CTP Delta GmbH 7,189 -- CTP Mu Poland Sp. z o.o. 7,069 -- CTPark Seventeen kft. 7,067 -- CTPARK RHO SRL 6,837 2,613 CTPARK Zeta EOOD 6,573 -- CTP Property Czech, spol. s r.o 6,083 -- CTP Hotel Pilsen, spol. s r.o. (formerly 2P , s.r.o.) 5,938 12,541 CTPark Nove Mesto, spol. s.r.o. 5,647 -- CTPARK ZABRZE SPÓŁKA Z OGRANICZONA ODPOWIEDZIALNOSCIA 5,590 -- CTP Gamma B.V. 5,558 -- CTPARK EPSILON SRL 4,996 -- CTPark Krásno nad Kysucou, spol. s r.o. (formerly CTP Beta SK, spol. s r.o.) 4,971 4,566 CTP Invest B.V. 4,888 -- CTPark Ten Kft. 4,887 -- CTP Management Hungary Kft. 4,786 -- CTPark Aš II, spol. s r.o. (formerly CTP XIX, spol. s r.o.) 4,437 4,733 CTPARK BUCHAREST II SRL (formerly CENTURA PROPERTY HOLDINGS S.A.) 4,305 4,455 CTP Sigma doo Beograd-Novi Beograd 3,959 -- CTP Phi doo Beograd-Novi Beograd 3,915 -- CTP Alpha doo Beograd-Novi Beograd 3,885 5,024 CTPark Trnava II, spol. s r.o. (formerly CTP Land SK, spol. s.r.o.) 3,844 -- CTP Forest, spol. s r.o. (formerly CTP Invest XXVI, spol. s.r.o.) 3,812 -- CTP Beta doo Beograd-Novi Beograd 3,067 3 964 CTPark Eight Kft. 2,703 -- CTPark Banská Bystrica, spol. s r.o. 2,350 -- CTPark Brno Líšeň II, spol. s r.o. (formerly CTP Invest XXIV, spol. s r.o.) 2,244 3,175 CTPark Epsilon EOOD 2,213 -- CTP XVII, spol. s r.o. (formerly CTP Invest XXII, spol. s.r.o.) 2,162 -- CTPARK DEVA II SRL (formerly DEVA LOGISTIC CENTER S.A.) 2,065 -- CTP Invest SK, spol. s r.o. 1,956 -- Valkenburg s.r.o. 1,924 1,924 Other 13,051 23,246 Total 3,281,737 737,922 338 Movement schedule of the loans provided to related parties: IN EUR THOUSAND TOTAL Balance of the loans provided as at 1 January 2021 737,922 Loans granted to the related parties 4,149,928 Repayment of loans -1,471,669 Settlement of loans with the Increase in Equity of subsidiaries -143,411 Interest accrued 53,463 Interest received -41,955 Other -2,541 Balance at 31 December 2021 3,281,737 IN EUR THOUSAND TOTAL Balance of the loans provided as at 21 October 2019 -- Loans granted to the related parties 1,148,024 Repayment of loans -413,663 Interest accrued 3,704 Interest received -143 Balance at 31 December 2020 737,922 As at 31 December 2021 and 31 December 2020, the Group has the following Trade and other receivables due from related parties and Trade and other payables to related parties: 2021 2020 IN EUR THOUSAND RECEIVABLES PAYABLES RECEIVABLES PAYABLES CTP Invest, spol. s r.o. 21,491 -14,981 -- -- CTP INVEST BUCHAREST SRL 3,033 -- -- -- CTP Management Hungary Kft. 1,030 -- -- -- CTP Invest doo Beograd-Novi Beograd 522 -- -- -- CTP Invest EOOD (formerly CTPark Alpha, EOOD) 488 -- -- -- CTP Invest Poland Sp. z o.o. 392 -- -- -- CTP Invest B.V. 374 -1 -- -- CTP Invest Immobilien GmbH 213 -- -- -- Other 516 -298 -- -- Total 28,059 -15,280 -- -- 16. Personnel The Company did employ 9 employees in 2021 (in 2020 1 employee from 1 July onwards). 17. Emoluments of directors In 2021, the emoluments, including pension costs as referred to in Section 2:383(1) of the Dutch Civil Code, charged in the inancial year to the company, its subsidiaries and consolidated other companies amounted to EUR 574 thousand, out of which EUR 234 thousand relates to emolument of Executive directors and EUR 340 thousand to Non-executive directors, respectively. In 2020, the emoluments, including pension costs as referred to in Section 2:383(1) of the Dutch Civil Code, charged in the inancial year to the company, its subsidiaries and consolidated other companies amounted to EUR 317 thousand (2018 – EUR 0 thousand) for managing directors and former managing directors. 339 On 30 April 2021, the Company granted a conditional share award under the LTIP to the one of the directors. This award has a vesting period of three years, and vesting is subject to continued services up to vesting and depends on the Company’s total shareholder return (“TSR”). Vesting of 50% of the number of awards granted is subject to an Absolute TSR condition and 50% is subject a Relative TSR condition. The number of awards that will vest is between 0% and 150% of the target number of awards granted. The vesting percentage is allocated linearly between the threshold level and the maximum level. The fair value of the awards is expensed on a straight-line basis over the three-year vesting period. In 2021, the total share-based payment expense recognized for the equity-settled awards amounted to EUR 85 thousand (2020 – EUR 0 thousand). 18. Subsequent events For subsequent events, see Note 38 of the consolidated inancial statements. 19. Subsidiaries The Company has 100% ownership interest in CTP Property B.V. and CTP Invest, spol. s r.o. which owns subsidiaries with operational activities in the Czech Republic, Hungary, Romania, Poland, Slovakia, Austria, Germany, Serbia and Bulgaria. For the list of the Company`s subsidiaries as at 31 December 2021 refer to Note 33 to the consolidated inancial statements. Amsterdam, 8 March 2022 Remon L. Vos Richard J. Wilkinson Barbara Knolach Gerard van Kesteren Susanne Eickermann-Riepe Pavel Trenka 340 OTHER INFORMATION Provisions in the Articles of Association governing the appropriation of proit According to article 22 of the Company’s Articles of Association, the proit is at the disposal of the General Meeting of Shareholders, which can allocate the proit wholly or partly to the general or speciic reserve funds. The board has to approve the appropriation of proit before the decision of the general meeting takes efect. The company can only make payments to the shareholders and other parties entitled to the distributable proit for the amount the shareholders’ equity are greater than the paid-up and called-up part of the capital plus the legally required reserves. KPMG Accountants N.V., a Dutch limited liabilit y compan y re g istered with the trade re g ister in the Netherlands under number 33263683, is a member firm of the g lobal or g anization o f independent member firms affiliated with KPMG International Limited, a private En g lish compan y limited b y g uarantee . I n d epen d en t au dit or ' s repor t T o : th e G eneral Meetin g o f S hareholders of C TP N.V. Re p ort on the audit of the financial statements 2 02 1 i ncluded in the annual re p ort Ou r o pinion In our opinio n : — the accompan y in g consolidated f inancial statements g ive a true and f air view o f the f inancial p osition o f C TP N.V. as at 3 1 December 2 0 2 1 a n d of it s r esu lt a n d it s cas h f l o w s fo r the y ear th e n e n ded , in accordance with International Financial Reportin g S ta n dards as adopted b y the European Union ( E U - IFR S) and with Part 9 o f Book 2 o f the Dutch C ivil C od e . — the accompan y in g compan y f inancial statements g ive a true and f air view o f the f inancial p osition o f C TP N.V. as a t 3 1 December 2 0 2 1 a n d of it s r esu lt fo r the y ear then ende d in accordance with Part 9 o f Book 2 o f the Dutch C ivil C od e . W hat we have audited W e h a v e aud it ed th e f in a n c i a l s t a t e m e nt s 2 0 2 1 of C TP N.V. ( ‘ th e C ompan y ’ ) based i n U trecht. Th e f in a n c i a l s t a t e m e nt s in c l ude th e co n so li da t ed f inancial statements and the compan y f inancial s t a t e m e nt s . The consolidated f inancial statements compris e : 1 the consolidated statement o f f inancial position as a t 3 1 December 2 0 2 1 ; 2 the f ollowin g consolidated statements o v e r th e p eriod 1 Januar y 2021 up to an d includin g 3 1 December 2 0 21: s tatements o f pro f it and loss and comprehensive income, chan g es in equit y and cash f lows; an d 3 the notes comprisin g a summar y o f the si g ni f icant accountin g policies and other explanator y in fo rm a ti on . T h e compan y f inancial statements compris e : 1 the compan y b a l a n ce s h ee t as 3 1 December 2 0 2 1 ; 2 the compan y in co m e s t a t e m e n t fo r the y ear ended 31 December 2 0 2 1 a n d 3 the notes comprisin g a summar y o f the accountin g policies and other explanator y in fo rm a ti on . 341 2 Basis for our opinion W e co n duc t ed ou r aud it in accordance with Dutch law, includin g the Dutch S tandards on Auditin g . O ur responsibilities under those standards are f urther described in the ‘O ur responsibilities f or the audit o f the f inancial statements’ section o f our repor t . We are independent o f C TP N.V. in acco r da n ce with th e ‘ V erordenin g inzake de ona f hankeli j kheid van accountants bi j assuranc e - opdrachte n ’ ( Vi O , C ode o f Ethics f or Pro f essional Accountants, a re g ulation with respect to independence ) and other relevant independence re g ulations in the Netherlands. Furthermore, we have complied with the ‘ Verordenin g g edra g s - e n beroepsre g els accountants ’ ( V G BA, Dutch C ode o f Ethics ) . O ur audit procedures were determine d in th e co nt e xt of ou r aud it of th e f in a n c i a l s t a t e m e nt s as a wh o l e . O ur observations in respect o f g oin g concern, f raud and no n - c ompliance wit h l a w s a n d r e g ulations , c lim a t e and the ke y audit matters should be viewed in that contex t a n d no t as s eparate o p ini on s o r co n c l us i o n s . We believe the audit evidence we have obtained is su ff icient and appropriate to provide a basis f or our opinio n . Audit approach S ummar y M aterialit y — M aterialit y o f EUR 82 milli on — 0 . 85 % of t o t a l asse t s G rou p audi t — Audit covera g e o f 99 % o f investment propert y and investment propert y under developmen t — Audit covera g e o f 97 % of t o t a l asse t s — Audit covera g e o f 82 % of r e nt a l in co m e G oin g concern , Fraud / Noclar a nd C l imate chan ge — G oin g concern: no s i g ni f ican t g oin g concer n r i s k s i de nti f i ed — Fraud & No n - c ompliance with laws and re g ulations ( Noclar ) : mana g ement override o f co ntr o l s is presumed f r aud ri sk a n d a f r aud r i s k in r e l a ti o n t o acquisition o f investment p ropert y under developmen t . — C limate chan g e: th e response of th e B oa r d of Dir ec t o r s to possible f uture e ff ects o f climate c han g e and their anticipated outcomes have been disclose d in the chapter Risk M ana g ement o f the annual repor t . We have considered the impact o f climat e - re l a t ed ri s ks 342 3 o n ou r i de nti f i ca ti o n a n d assess m e nt of ri s k s of m a t e ri a l mi ss t a t e m e nt in th e f in a n c i a l s t a t e m e nt s . K e y audit matters — V aluation o f investment propert y and investment propert y under developmen t — Acquisition o f investment propert y under developmen t O p inion U nquali f ie d M aterialit y Based on our pro f essional j ud g ement we determined the materialit y f or the f inancial statements as a wh o l e at E UR 8 2 milli o n ( 2 0 2 0 : E U R 5 0 million ) . The materialit y is determined with refe r e n ce t o t o t a l asse t s ( 0 . 85 %) . W e co n s i de rt o t a l asse t s as the most appropriate benchmar k because of the nature o f the business, the level o f activities an d asset value is likel y the primar y focus of th e use r s of th e f in a n c i a l s t a t e m e nt s e valuatin g C TP N.V.’s f inancial p er f ormanc e . M aterialit y si g ni f icantl y increased compared to last y ear due to the increase o f total assets. W e h ave also taken into account misstatements and / or possible misstatements that in our opinion a r e m a t e ri a l fo r th e use r s of th e f in a n c i a l s t a t e m en ts f or qualitative reasons . We a g reed with th e B oa r d of Dir ec t o r s th a t mi ss t a t e m e nt s identi f ied durin g our aud it in e x cess of E UR 4. 1 milli on would be reported to them, as well as smaller misstatements that in our view must be reported on q ualitative g rounds . S cope of the group audi t C TP N.V. is at the head o f a g roup o f c omponents ( the G roup ) . Th e f in a n c i a l in fo rm a ti o n of thi s G roup is included in the f inancial statements o f C TP N. V . O ur g roup audit scopin g was mainl y based on the accounts investment propert y and investmen t p ropert y under development. We determined the si g ni f icant components based on the relativ e s ize and risk pro f ile o f the accounts investment propert y and investmen t p ropert y u n de r developmen t where we assi g ned a f u ll scope audit ( audit o f the complete reportin g packa g e ) . Additionall y , w e included certain components in the scope o f our g roup audit where speci f ied audit procedures are per f ormed on the valuation o f investment propert y and investment propert y u n de r de v e lopment in order to obtain su ff icient audit covera g e. Because we are ultimatel y responsible f or the opinion, we are also responsible f or directin g , s upervisin g and per f ormin g the g roup audit. In this respect we have determined the nature and e xt e nt of th e audit procedures to be carried out f or operatin g companies and issued audit instructions to local auditors. As g roup auditor we were involved in the f ull - s cope audits p er f ormed b y local auditors. 343 4 O ur involvement included, amon g st others, the f ollowin g : — issuin g audit instructions to c omponen t auditors prescribin g the scope o f the audit procedures to be per f ormed, our risk assessment, materialit y to be applied and reportin g requirements; — p articipation in plannin g discussions with c omponen t auditors; — attendin g con f erence calls durin g the audit with respect to relevant audit matters ; — attendin g meetin g s with the local auditors to discuss the results o f local audits and discussions on the valuation o f investment propert y with independent ap p raisers en g a g ed b y the company ; — attendin g ( virt ua l ) c losin g meetin g s at the c omponents to discuss relevant audit f indin g s with th e c omponent auditor and countr y mana g ement; — f ollow up on reported audit f indin g s ; — review o f the audit f iles o f all si gn i f icant components to veri fy the audit work b y c omponent aud it o r s h as bee n ca rri ed ou t in acco r da n ce with ou r in s tr uc ti o n s . F o r th e residual populatio n n ot in scope we per f ormed anal y tical procedures in order to c orroborate that our scopin g remained appropriate throu g hout the audit. B y per f ormin g the procedures mentioned above at gro u p c omponents, to g ether with additional p rocedures at g roup level, we have been able to obtain su ff icient and appropriate audit evidence about the g roup’s f inanc i al in f ormation to provide an opinion about the f inancial statements . The audit covera g e as stated in the section summar y can be f urther speci f ied as f ollows : Investment propert y and investment propert y under developm e n t 7 1 % 2 8 % Audit of the complete reportin g packa ge S pecified audit p rocedures T otal Assets 7 2 % 2 5 % Audit of the complete reportin g packa ge S pecified audit p rocedures 344 5 R ental income 82 % A udit o f the complete r eportin g packa ge Audit response to going concern - no significant going concern risks identified As explained in n o t e 2 t o the f inancial statements, the B oa r d of Dir ec t o r s h as per f ormed its g oin g c oncern assessment and has not identi f ied an y g oin g concern risks. T o assess th e B oa r d of Dir ec t o r s’ assessment, we have per f ormed, inter alia, the f ollowin g procedures : - We considered whether the assessment o f the g oin g concern risks p er f ormed b y the B oa r d of Dir ec t o r s in c l uded a ll r e l e v a nt in fo rm a ti o n of whi c h w e a r e a w a r e of as a r esu lt of ou r aud i t ; - We considered whether the developments in share prices indicate a si g ni f icant g oin g c oncern risk; - We anal y zed the f inancial positio n o f the G rou p as at y ear end and compared it t o th e p revious f inancial y ear in terms o f indicators that could identi fy si g ni f icant g oin g concern ri s k s . The outcome o f our risk assessment procedures did not g ive a reason to per f orm additional audit procedures o n th e g oin g concern assessmen t p er f ormed b y t h e B oa r d of Dir ec t o r s . Audit response to the risk of fraud and non - compliance with laws and regulation s In th e c hapter R isk Mana g emen t of th e a nn ua l r epor t , th e B oa r d of Dir ec t o r s desc ri b e it s p rocedures in respect o f the risk o f f r aud a n d n on - c ompliance with laws and re g ulations. As part o f our audit, we have g ained insi g hts into the C ompan y and its business environment, and assessed the desi g n and implementatio n of th e C ompan y ’s risk mana g ement in relation to f raud 345 6 a n d n on - c ompliance. O ur procedures included, amon g other thin g s, assessin g the G rou p ’s code o f conduct, whistleblowin g p olic y , KY C & AML screenin g polic y, a nt i - briber y polic y , ant i - f r aud p olic y , incidents re g ister and its procedures to investi g ate indicat i ons o f possible f raud and no n - c omplianc e . Furthermore, we per f ormed relevant inquiries with th e B oa r d of Dir ec t o r s a n d o th e r r elevant f unctions, suc h as Int e rn a l A ud it a n d C ompliance. As part o f our audit procedures , w e: - assessed other positions held b y t he B oa r d of Dir ec t o r s and other emplo y ees and paid s pecial attention to procedures and compliance in view o f possible con f licts o f interest; - e valuated correspondence with re g ulators ( e. g . the AFM ) as well as le g al con f irmation le tt e r s . In addition, w e per formed procedures to obtain an understandin g o f the le g al and re g ulator y f rameworks that are applicable to the C ompan y a n d identi f ied the f ollowin g areas as those most l ikel y to have a m a t e ri a l effect o n th e f in a n c i a l s t a t e m e nt s : — Ant i - briber y and c orruptio n l a w ; — Ant i - mone y launderin g laws and re g ulations; W e to g ether with our f orensics specialists, e v a l ua t ed th e f r aud a n d n on - c ompliance ris k fac t o r s t o co n s i de r wh e th e r th ose fac t o r s in d i ca t e a ri s k of m a t e ri a l mi ss t a t e m e nt i n th e f in a n c i a l s t a t e m e nt s . We assessed the presumed f raud risk on revenue reco g nition as irrelevant, because the C ompan y ’s main f orm o f revenue relates to rental income w h ich involves limited j ud g ement as the revenue related to rental income is contractuall y a g reed and with various individual tenants. Based on the above and on the auditin g standards, we identi f ied tw o f r aud ri s k s th a t a r e r e l e v a n t to our audit, includin g t h e relevant presumed risks laid down in the auditin g standards . A f r aud ri sk is identi f ied in relation to possible c on f lictin g interests which relate to an acquisitio n of inv es tm e nt p ropert y under developmen t . We re f er to our ke y audit matter. Th e o th e r ri s k i de nti f i ed i s th e p resumed f r aud r isk o f mana g ement override o f controls. — M a na g ement override of controls ( a presumed risk ) R i s k: - M ana g ement is in a unique position to manipulate accountin g records and prepare f raudulent f inancial statements b y overridin g controls that otherwise appear to be operatin g eff ectivel y R esponses: - We evaluated the desi g n and the implementation o f internal controls that miti g ate f raud a n d n on - c ompliance risks, such as processes related to j ournal entries a n d es tim a t es . - We per f ormed a data anal y sis o f hi gh - r isk j ournal entries ( ad j ustments to initiall y recorded c han g es in f air value o f investment propert y and investment propert y under development above a threshold ) which were sub j ect o f the examinatio n a n d e v a l ua t ed t h e k e y estimates valuation o f investment propert y and investment propert y under developmen t a n d 346 7 j ud g ments f or bias b y the C ompan y ’s mana g emen t includin g retrospective reviews o f prior y ears ’ estimates . Where we identi f ied instances o f unexpecte d j ournal entries or other risks throu g h our data anal y tics, we per f ormed additional audit procedures to address eac h i de nti f i ed ri sk , includin g testin g o f transactions back to source in f ormatio n . - We incorporated elements o f unpredictabilit y in our audit, i n c ludin g ; p er f orm procedures on an earl y sta g e development pro j ect and review the tender process related to selection o f a construction compan y ( e. g . multiple quotes obtained, documentation around s election o f the part y) and selection o f advisor y f ees paid in the period j ust be f or e a c onstruction permit is obtained and to per f orm procedures on whether the services are in accordance with the f ees pai d . We communicated our risk assessment, audit responses and results to th e B oa r d of Dir ec t o r s . O ur audit procedures did not reveal ac t ua l indications or reasonable suspicion o f f raud and no n - c ompliance that are considered material f or our audi t . Audit respon s e to climate ris k Th e B oa r d of Dir ec t o r s is responsible f or preparin g the f inancial statements in accordance with the applicable f inancial reportin g f ramework, includin g considerin g whether the implications f rom c lim a t e - re l a t ed ri s k s a n d co mmitm e nt s h a v e b e en appropriatel y accounted f or and disclosed. Th e B oa r d of Dir ec t o r s ha v e p er f ormed its anal y sis o f the impact o f climat e - r e l a t ed ri s k s o n th e c ompan y’ s business and operations on the lon g er term and on its accountin g in the current f in a n c i a l s t a t e m e nt s . In th e c hapter R isk Mana g emen t of th e annual repor t , the B oa r d of Dir ec t o r s co n c l uded th a t th e effec t of c lim a t e - related risks do not have a material impact on accounts and disclosures, includin g j ud g ements and estimates in the f inancial statements. Th e e v a l ua ti o n of th e effec tiv e n ess of th e s trate gy of th e B oa r d of Dir ec t o r s aga in s t int e rn a l o r e xternal g oals set is not in scope o f our audit o f the f inancial statements. As part o f our audit we c onsider potential e ff ects o f climat e - related risks on the accounts and disclosures, includin g e stimates and j ud g ements in the current y ea r ’ s f in a n c i a l s t a t e m e nt s t o de t e rmin e wh e th e r th e f in a n c i a l s t a t e m e nt s a r e f r ee f r o m m a t e ri a l mi ss t a t e m e nt s . Thi s in c l udes d i scuss i o n of th e c ompan y’ s strate gy in relation to climate chan g e with th e B oa r d of Dir ec t o r s . 347 8 Our k ey audit matter s Ke y audit matters are those matters that, in our pro f essional j ud g ement, were o f most s i g ni f icance in our audit o f the f inancial statements. We have communicated the ke y audit m a tt e r s t o th e B oa r d of Dir ec t o r s . The ke y audit matters are not a comprehensive re f lec ti o n of a ll m a tt e r s d i scussed . V aluation of investment propert y and investment propert y under developmen t D escri p tion Investment propert y and investment propert y under development ( herea f ter ‘ investment p ropert y ’ ) amounts to EUR 8 .4 billion and represent 86 % o f the G roup’s total assets as at 31 December 2 02 1 . Investment propert y is valued at f air value; there f ore, the G r o u p has to make e stimates and use assumptions to determine those f air values. The f air value is, as explained in n o t es 1 7 a n d 1 8 to the f inancial statements, determined b y the Board o f Directors based on appraisal reports b y an independent appraiser ( 98 %) o r on the acquisition price of inv es tm e nt p ropert y as a prox y f or the f air value when acquired close to the reportin g date ( 2 %) . Because the valuation o f investment propert y is complex and hi g hl y dependent on estimates a n d s i g ni f ican t assumptions ( such as es tim a t ed r e nt a l v a l ue a n d y iel d / discount rat e , a n d s peci f icall y f or investment propert y under development the development mar g in ) and the availabilit y o f comparable transactions, we consider the valuation o f investment propert y as a k e y audit m a tt e r in ou r aud it. Our res p ons e We have evaluated the competence, capabilities and ob j ectivit y o f the external appraiser. We have evaluated the appropriateness o f the in f ormation and assumptions used in the valuations. This includes the estimates made b y the Board o f Directors supported b y the e xternal appraisal f irms. We f ocused on the si g ni f icant assumptions, such as: estim a t ed r e nt a l value, y ield / discount rate and speci f icall y f or investment propert y under development the development mar g in. We anal y sed the results o f the valuation process and discussed the abovementioned f actors th a t de t e rmin e th e v a l ua ti o n s with th e B o ard o f Directors and the external appraiser. For that p urpose we used the expertise o f our own internal propert y valuation specialists. These s pecialists have supported us with our assessment o f the ( si g ni f icant ) assumptions, methods and developments in t h e v a l ua ti o n s . Finall y , we veri f ied whether the disclosures in notes 17 and 1 8 t o th e f in a n c i a l s t a t e m e nt s in r espect o f investment propert y are in con f ormit y with E U - IFR S . 348 9 Our observation O verall, we assess that the assumptions and m ethodolo g ies used, and related estimates resulted in a valuation o f investment propert y whi c h i s dee m ed r easo n ab l e a n d co n cu r with th e r e l a t ed d i sc l osu r es in th e f in a n c i a l s t a t e m e nt s . Acquisition of investment propert y under developmen t D escri p tion As part o f the normal course o f business acquisitions take place. Acquisitions o f investment propert y under development are si g ni f icant transactions which are s ub j ect to error due to the nature o f these transactions. Transactions o f ten involv e a v a ri ab l e c onsideration ( earn outs, rental g uarantees, etc. ) and are structured as asset deals or share deals ( dependin g on tax considerations ) . In addition to the risk o f error, a f raud risk is i de nti f i ed in r e l a ti o n t o c orruption in th e co nt e xt of th e u se o f a g ents and / or business partners as part o f the acquisition o f investment propert y a n d r e l a t ed p otential con f licts o f interes t . G iven the size and complex nature o f t h i s transaction we consider the accountin g f or these acquisitions o f investment propert y and investment propert y under development to be a ke y aud it m a tt e r. W e initiall y se l ec t ed th e acquisition o f Amsterdam Lo g istic C it y hub B.V. based o n s iz e a n d c omplexit y . Durin g our audi t w e se l ec t ed a n add iti o n a l important transaction in pro gress t o ob t a in a l a n d p osition f or development in Hun g ar y . For this transaction in pr o gr ess w e r efe r t o n o t e 21 in th e n otes to the f inancial statements. G iven the structure o f the transaction, the EUR 1. 9 milli o n f ee paid, parties involved, includin g one compan y which involves ( ex ) local g overnment o ff icials havin g minorit y share holdin g s and mana g ement positions. This could lead to potential c on f licts o f interest. In line with the existin g policies, C TP has per f ormed various procedures to e v a l ua t e thi s ri s k. Our res p ons e We per f ormed audit procedures in respect o f the acquisitions o f investment propert y under de v e lopment to ensure these transactions are accuratel y accounted f or. These procedures included obtainin g an understandin g o f the purchase contracts and related cash movements, g ainin g an understandin g o f the variable considerations in the contracts and tes t in g o f the accountin g entries to record the initial purchase. 349 1 0 In respect o f f raud risks related to transactions with investment propert y a n d inv es tm e nt p ropert y under developmen t , we obtained an understandin g o f mana g ement’s ant i - f r aud c ontrols (f or example, counterpart y due dili g ence, f our - ey es principle, procurement procedures f or development / construction contracts ) . At g roup level, we also inspected minutes o f Board meetin g s in which these transactions are discussed to veri fy that the g overnance arou n d the transactions is appropriate and the required approvals are obtained. S peci f icall y f or the transaction in pr o gr ess in Hun g ar y , with the support o f a f orensic specialist , w e p er f ormed additional procedures which included mana g ement inquiries, c hallen g e d mana g ement’s assessment o f r e l a t ed f r aud r isks, p er f ormed a search in publicl y available resources on the involved parties and persons, evaluated whether the transaction price o f the l and is at arm ’ s len g th, evaluated the risk related to involv e m e nt of ( fo rm e r ) g overnment off i c i a l s ( on which the corruption risk cannot be completel y miti g ated b y C TP’s procedures onl y) , inspecte d r e l e v a nt docu m e n t s such as contracts and emails, inspected th e s creenin g as p art o f C TP’s KY C policies and we v e ri f i ed t h e adequac y o f the disclosure i n no t e 21 t o th e f in a n c i a l s t a t e m e nt s . Finall y , we veri f ied whether the disclosures in Notes 3 and 6 to the f inancial statements in respect o f investment propert y transactions are in con f ormit y with E U - IFR S . Our observation O verall, we assess that the acquisitions o f investment propert y under development are adequatel y accounted f or and disclosed in the f inancial statements. Furthermore, based on our p rocedures, the ris k o f a potential con f lict o f interest related to the transaction in pro g ress in H un g ar y , taken into account the inherent limitations o f the f acts and circumstances, is m iti g ated to an acceptable level. Re p ort on the other information included in the annual r e p or t In addition to the f inancial statements and our auditor’s report thereon, the annual report co nt a in s o th e r in fo rm a ti on . Based on the f ollowin g procedures per f ormed, we conclude that the other in f ormatio n : — i s co n s i s t e nt with th e f in a n c i a l s t a t e m e n t s a n d does n o t co nt a in m a t e ri a l mi ss t a t e m e nt s ; a n d — co nt a in s th e in f ormation as required b y Par t 9 o f Boo k 2 o f the Dutch C ivil C od e fo rth e m ana g ement report and o th e r in fo rm a ti on . We have read the other in f ormation. Based on our knowled g e and understandi n g obtained throu g h our audit o f the f inancial statements or otherwise, we have considered whether the other in fo rm a ti o n co nt a in s m a t e ri a l mi ss t a t e m e nt s . 350 1 1 B y per f ormin g these procedures, we compl y with the requirements o f Par t 9 o f Boo k 2 of th e Dutch Ci vil C ode and the Dutch S tandar d 720. The scope o f the procedures per f ormed is less than the scope o f those per f ormed in our audit o f the f inancial statements . Th e B oa r d of Dir ec t o r s is responsible f or the preparation o f the o t h er in f ormation, includin g t h e in f ormation as required b y P a r t 9 o f Boo k 2 o f the Dutch C ivil C od e . Report on other le g al and re g ulator y requirements a nd ESEF Engagemen t We were en g a g ed b y th e G eneral Meetin g o f S hareholders as aud it o r of C TP N.V. on 1 6 N o v e m be r2 02 0 , as of th e aud it fo r th e p eriod ended 31 December 2 02 0 and have operated as s tatutor y auditor ever since that f inancial y ear . N o prohibited non - a udit service s We have not provided prohibited no n - aud it se rvi ces as r efe rr ed t o in Arti c l e 5( 1 ) o f the E U R e g ulation on speci f ic requirements re g ardin g statutor y audi t s o f public - int e r es t e ntiti es . Eur o pean Single Electroni c Format ( ESEF ) C TP N.V. h as prepared its annual report in E S EF. The requirements f or this f ormat are set out i n the C ommission Dele g ated R eg ulation ( EU ) 2019 / 81 5 with re g ard to re g ulator y technical s tandards on the speci f ication o f a sin g le electronic reportin g f orma t (t he se r equirements are h ereina f ter re f erred to as: the RT S on E S EF ) . In our opinion, the annual report p repare d in th e XHTML f ormat, includin g the par t i a l ly ta gg ed c onsolidated f inancial statements as included in the reportin g packa g e b y C TP N.V., has bee n prep ared in all material respects in accordance with the RT S on E S EF. Th e B oa r d of Dir ec t o r s is responsible f or preparin g the annual report includin g the f inancial s tatements in accordance with the RT S on E S EF, whereb y th e B oa r d of Dir ec t o r s co m b in e th e v a ri ou s components into a s in g le r eportin g packa g e. O ur responsibilit y is to obtain reasonable assu r a n ce fo r ou r opinio n whether the annual report in this reportin g packa g e, is in accordance with th e R T S on E S EF . O ur procedures takin g into co n s i de r a ti on Alert 43 o f NBA ( the Netherlands Institute o f C hartered Accountants ) ,in c l uded amon g st others : — o btainin g an understandin g o f the entit y 's f inancial reportin g process, includin g the p reparation o f the reportin g packa ge ; — o btainin g the reportin g p acka g e and per f ormin g validations to determine whether the r eportin g packa g e containin g the Inline XBRL instance document and the XBRL extension taxonom y f iles have been prepared in accordance with the technical speci f ications as included in the RT S on E S E F ; 351 1 2 — e xaminin g the in f ormation related to the consolidated f inancial statements in the reportin g p acka g e to determine whether all required ta gg in g s have been applied and whether these are in accordance with the RT S on E S EF. D escri p tion of res p onsibilities r e g ardin g the financial statements R esponsibilities o f t he Board of Director s f or the financial statement s Th e B oa r d of Dir ec t o r s is responsible f or the preparation and f air presentation o f the f inancial s tatements in accordance with E U - IFR S and Part 9 o f Book 2 o f the Dutch C ivil C ode. Furthermore, th e B oa r d of Dir ec t o r s is responsible f or such internal control as th e B oa r d of Dir ec t o r s determine is necessar y to enable the preparation o f the f inancial statements that are f ree f rom material misstatement, w h e th e r due t o f r aud o r e rr o r . In that respect th e B oa r d of Dir ec t o r s is responsible f or the prevention and detection o f f raud and no n - c ompliance with laws and re g ulations, includin g determinin g measures to resolve the consequences o f it and to p revent recurrence. As part o f the preparation o f the f inancial statements, th e B oa r d of Dir ec t o r s i s responsible f or assessin g the C ompan y ’s abilit y to continue as a g oin g concern. Based on the f inancial reportin g f rameworks mentioned, th e B oa r d of Dir ec t o r s s hould prepare the f inancial statements usin g the g oin g concern basis o f accountin g unless th e B oa r d of Dir ec t o r s e ither intends to liquidate the C ompan y or to cease operations, or has no realistic alternative but to do s o . Th e B oa r d of Dir ec t o r s s hould disclose events and circumstances that ma y cast si g ni f icant doubt on the compa ny ’s abilit y to continue as a g oin g concern in the f inancial statements. Our responsibilities for the audit of the financial statement s O ur ob j ective is to plan and per f orm the audit e n g a g emen t in a m a nn e r th a t a ll o w s us t o ob t a in s u ff icient and appropr i ate audit evidence f or our opinio n . O ur audit has been per f ormed with a hi g h, but not absolute, level o f assurance, which means we ma y not detect all material errors and f raud durin g our audi t . M i ss t a t e m e nt s ca n a ri se f r o m f r aud o r e rr o r a n d a r e co n s i de r e d material i f , individuall y or in the a gg re g ate, the y could reasonabl y be expected to in f luence the economic decisions o f users taken on the basis o f these f inancial statements. The materialit y a ff ects the nature, timin g and e xtent o f our audit procedures a n d th e e v a l ua ti o n of th e effec t of i de nti f i ed mi ss t a t e m e nt s o n ou r opinio n . A f urther description o f our responsibilities f or the audit o f the f inancial statements is included i n th e appendix o f this auditor's repor t . This description f orms part o f our auditor ’ s repor t . 352 1 3 Amstelveen, 8 M arch 2 02 2 KPM G Accountants N.V. H .D. G rönloh RA Appendix: Description o f our responsibilities f or the audit o f the f in a n c i a l s t a t e m e nt s 353 14 A pp endi x D escri p tion of our res p onsibilities for the audit of the f inancial statements We have exercised pro f essional j ud g ement and have maintained pro f essional s cepticism throu g hout the audit, in accordance with Dutch S tandards on Auditin g , ethical requirements a n d independence requirements. O ur audit included amon g others : — i denti fy in g and assessin g the risks o f material misstatement o f the f inancial statements, whether due to f raud or error, desi g nin g and per f ormin g audit procedures responsive to those r isks, and obtainin g audit evidence that is su ff icient and appropriate to provide a basis f or our opinion. The risk o f not detectin g a material misstatement resultin g f rom f raud is hi g her than th e ri sk resultin g f rom error, as f raud ma y involve collusion, f or g er y , i n tentional omissions, m isrepresentations, or the override o f internal control ; — o btainin g an understandin g o f internal control relevant to the audit in order to desi g n audit p rocedures that are appropriate in the circumstances, but not f or the purpose o f ex p r essin g an opinion on the e ff ectiveness o f the C ompan y ’ s internal control; — e valuatin g the appropriateness o f accountin g policies used and the reasonableness o f accountin g estimates and related disclosures made b y th e B oa r d of Dir ec t o r s ; — c oncludin g on the a p propriateness o f th e B oa r d of Dir ec t o r s ’ u se o f the g oin g concern basis o f accountin g , and based on the audit evidence obtained, whether a material uncertaint y e xists related to events or conditions that ma y cast si g ni f icant doubt on the C ompan y ’s abilit y to continue as a g oin g concern. I f we conclude that a material uncertaint y exists, we are r equired to draw attention in our auditor’s report to the related disclosures in the f inancial s tatements or, i f such disclosures are inadequate, to modi fy o u r opinion. O ur conclusions are based on the audit evidence obtained up to the date o f our auditor’s report. However, f uture e vents or conditions ma y cause a compan y to cease to continue as a g oin g concer n ; — e valuatin g the overall presentation, structure an d c ontent o f the f inancial statements, includin g the disclosures ; an d — e valuatin g whether the f inancial statements represent the underl y in g transactions and events in a manner that achieves f air presentatio n . W e are s olel y r esponsible f or the opinio n a n d th e re f ore responsible to o b t a in suff i c i e nt appropriate audit evidence re g ardin g the f inancial in f ormation o f the entities or business activities within the g roup to express an opinion on the f inancial statements. In this respect we are also r esponsible f or d i r ectin g , supervisin g and per f ormin g the g roup audi t . W e co mm u ni ca t e with th e B oa r d of Dir ec t o r s r e g ardin g , amon g other matters, the planned scope and timin g o f the audit and si g ni f icant audit f indin g s, includin g an y si g ni f icant f indin g s in internal co ntr o l that we identi fy durin g our audit. In this respect we also submit an additional report to the audit committee in accordance with Article 11 o f the EU Re g ulation on speci f ic requirements r e g ardin g statutor y audits o f public - int e r es t e ntiti es . Th e in fo rm at i o n in c l uded in thi s add iti o n a l r eport is consistent with our audit opinion in this auditor ’ s report. 354 1 5 We provid e d th e B oa r d of Dir ec t o r s with a statement that we have complied with relevant ethical r equirements re g ardin g independence, and to co mm u ni ca t e with th e m all relationships and other m atters that ma y reasonabl y be thou g ht to bear on our independence, and where applicable, r elated sa f e g uards . Fr o m th e m a tt e r s co mm u ni ca t ed with th e B oa r d of Dir ec t o r s , w e de t e rmin e the ke y audit matters: t h ose matters that were o f most si g ni f icance in the a u d it of th e f in a n c i a l s t a t e m e nt s . W e desc ri be these matters in our auditor ’ s report unless law or re g ulation precludes public disclosure about the matter or when, in extremel y rare circumstances, not comm u nicatin g the matter is in the p ublic interes t . 355 356 APPENDICES 357 358 CTP Building Number CTPark Country Company Use 1000012 CTPark Aš CZ CTP Bohemia West, spol. s r.o. Production/Warehouse 1000583 CTPark Aš CZ CTPark Aš II, spol. s r.o. Warehouse 1000512 CTPark Blatnice CZ CTP Pilsen Region, spol. s r.o. Warehouse 1000052 CTPark Blučina CZ CTP Moravia South, spol. s r.o. Production/Warehouse 1000548 CTPark Blučina CZ CTP Moravia South, spol. s r.o. Warehouse 1000025 CTPark Bor CZ CTPark Bor, spol. s r.o. Warehouse 1000028 CTPark Bor CZ CTPark Bor, spol. s r.o. Production/Warehouse 1000574 CTPark Bor CZ CTP Alpha, spol. s r.o. Warehouse 1000029 CTPark Bor CZ CTPark Bor, spol. s r.o. Warehouse 1000549 CTPark Bor CZ CTPark Bor, spol. s r.o. Warehouse 1000030 CTPark Bor CZ CTPark Bor, spol. s r.o. Warehouse 1000033 CTPark Bor CZ CTPark Bor, spol. s r.o. Warehouse 1000034 CTPark Bor CZ CTPark Bor, spol. s r.o. Warehouse 1000035 CTPark Bor CZ CTPark Bor, spol. s r.o. Warehouse 1000036 CTPark Bor CZ CTPark Bor, spol. s r.o. Production/Warehouse 1000037 CTPark Bor CZ CTPark Bor, spol. s r.o. Production/Warehouse 1000481 CTPark Bor CZ CTPark Bor, spol. s r.o. Warehouse 1000038 CTPark Bor CZ CTPark Bor, spol. s r.o. Production/Warehouse 1000509 CTPark Bor CZ CTPark Bor, spol. s r.o. Production/Warehouse 1000039 CTPark Bor CZ CTPark Bor, spol. s r.o. Production/Warehouse 1000440 CTPark Bor CZ CTPark Bor, spol. s r.o. Oice 1000001 CTPark Brno CZ CTPark Brno I, spol. s r.o. Production/Warehouse 1000002 CTPark Brno CZ CTPark Brno I, spol. s r.o. Production 1000003 CTPark Brno CZ CTPark Brno I, spol. s r.o. Production/Warehouse 1000004 CTPark Brno CZ CTPark Brno I, spol. s r.o. Production 1000006 CTPark Brno CZ CTPark Brno I, spol. s r.o. Production/Warehouse 1000007 CTPark Brno CZ CTPark Brno I, spol. s r.o. Oice 1000008 CTPark Brno CZ CTPark Brno I, spol. s r.o. Production/Warehouse 1000009 CTPark Brno CZ CTPark Brno I, spol. s r.o. Production/Warehouse 1000010 CTPark Brno CZ CTPark Brno I, spol. s r.o. Parking 1000026 CTPark Brno CZ CTPark Brno I, spol. s r.o. Production 1000027 CTPark Brno CZ CTPark Brno I, spol. s r.o. Custom built 1000031 CTPark Brno CZ CTPark Brno I, spol. s r.o. Production 1000115 CTPark Brno CZ CTPark Brno I, spol. s r.o. Production/Warehouse 1000116 CTPark Brno CZ CTPark Brno I, spol. s r.o. Production/Warehouse 1000117 CTPark Brno CZ CTPark Brno I, spol. s r.o. Production 1000152 CTPark Brno CZ CTPark Brno II, spol. s r.o. Production/Warehouse 1000153 CTPark Brno CZ CTPark Brno II, spol. s r.o. Custom built 1000154 CTPark Brno CZ CTPark Brno II, spol. s r.o. Production/Warehouse 1000155 CTPark Brno CZ CTPark Brno II, spol. s r.o. Production/Warehouse 1000156 CTPark Brno CZ CTPark Brno II, spol. s r.o. Production/Warehouse 1000165 CTPark Brno CZ CTPark Brno II, spol. s r.o. Production/Warehouse 1000166 CTPark Brno CZ CTPark Brno II, spol. s r.o. Warehouse 1000167 CTPark Brno CZ CTPark Brno II, spol. s r.o. Production/Warehouse 1000171 CTPark Brno CZ CTPark Brno II, spol. s r.o. Production/Warehouse Appendix AAppendices Property List Property List CTP Building Number CTPark Country Company Use 1000172 CTPark Brno CZ CTPark Brno II, spol. s r.o. Production/Warehouse 1000462 CTPark Brno CZ CTPark Brno II, spol. s r.o. Production/Warehouse 1000173 CTPark Brno CZ CTPark Brno II, spol. s r.o. Warehouse 1000618 CTPark Brno Líšeň CZ CTPark Brno Líšeň West, spol. s r.o. Warehouse 1000570 CTPark Brno Líšeň CZ CTPark Brno Líšeň West, spol. s r.o. Warehouse 1000551 CTPark Brno Líšeň CZ CTPark Brno Líšeň West, spol. s r.o. Warehouse 1000552 CTPark Brno Líšeň CZ CTPark Brno Líšeň II, spol. s r.o. Warehouse 1000359 CTPark Brno South CZ CTP Moravia South, spol. s r.o. Production/Warehouse 1000360 CTPark Brno South CZ CTP Moravia South, spol. s r.o. Warehouse 1000361 CTPark Brno South CZ CTP Moravia South, spol. s r.o. Warehouse 1000434 CTPark Cerhovice CZ CTP Pilsen Region, spol. s r.o. Production/Warehouse 1000613 CTPark Cerhovice CZ CTP Pilsen Region, spol. s r.o. Warehouse 1000126 CTPark Česká Lípa CZ CTP Bohemia North, spol. s r.o Production/Warehouse 1000468 CTPark Česká Lípa CZ CTP Bohemia North, spol. s r.o Warehouse 1000150 CTPark České Velenice CZ CTPark České Velenice, spol. s r.o. Warehouse 1000127 CTPark Cheb CZ CTP Bohemia West, spol. s r.o. Warehouse 1000764 CTPark Chrastava CZ RENWON a.s. Warehouse 1000159 CTPark Divišov CZ CTP Vysočina, spol. s r.o. Warehouse 1000550 CTPark Divišov CZ CTP Vysočina, spol. s r.o. Warehouse 1000192 CTPark Hlubočky CZ CTP Moravia North, spol. s r.o. Production/Warehouse 1000128 CTPark Hranice CZ CTPark Hranice, spol. s r.o. Warehouse 1000168 CTPark Hranice CZ CTPark Hranice, spol. s r.o. Warehouse 1000195 CTPark Hranice CZ CTPark Hranice, spol. s r.o. Production/Warehouse 1000196 CTPark Hranice CZ CTPark Hranice, spol. s r.o. Production/Warehouse 1000197 CTPark Hranice CZ CTPark Hranice, spol. s r.o. Production/Warehouse 1000198 CTPark Hranice CZ CTPark Hranice, spol. s r.o. Production/Warehouse 1000199 CTPark Hranice CZ CTPark Hranice, spol. s r.o. Production/Warehouse 1000200 CTPark Hranice CZ CTPark Hranice, spol. s r.o. Production/Warehouse 1000201 CTPark Hranice CZ CTPark Hranice, spol. s r.o. Production/Warehouse 1000202 CTPark Hranice CZ CTPark Hranice, spol. s r.o. Production/Warehouse 1000203 CTPark Hranice CZ CTPark Hranice, spol. s r.o. Production/Warehouse 1000211 CTPark Hranice CZ CTPark Hranice, spol. s r.o. Production/Warehouse 1000363 CTPark Hranice CZ CTPark Hranice, spol. s r.o. Warehouse 1000364 CTPark Hranice CZ CTPark Hranice, spol. s r.o. Porch 1000416 CTPark Hranice CZ CTPark Hranice, spol. s r.o. Production/Warehouse 1000178 CTPark Humpolec CZ CTP Vysočina, spol. s r.o. Production 1000179 CTPark Humpolec CZ CTP Vysočina, spol. s r.o. Parking 1000180 CTPark Humpolec CZ CTP Vysočina, spol. s r.o. Production/Warehouse 1000181 CTPark Humpolec CZ CTP Vysočina, spol. s r.o. Production/Warehouse 1000182 CTPark Humpolec CZ CTP Vysočina, spol. s r.o. Production 1000183 CTPark Humpolec CZ CTP Vysočina, spol. s r.o. Warehouse 1000184 CTPark Humpolec CZ CTP Vysočina, spol. s r.o. Production/Warehouse 1000185 CTPark Humpolec CZ CTP Vysočina, spol. s r.o. Production/Warehouse 1000186 CTPark Humpolec CZ CTP Vysočina, spol. s r.o. Production 1000187 CTPark Humpolec CZ CTP Vysočina, spol. s r.o. Warehouse 1000188 CTPark Humpolec CZ CTP Vysočina, spol. s r.o. Oice 1000204 CTPark Humpolec CZ CTP Vysočina, spol. s r.o. Warehouse 1000208 CTPark Jihlava CZ CTP Vysočina, spol. s r.o. Production/Warehouse 1000209 CTPark Jihlava CZ CTP Vysočina, spol. s r.o. Warehouse 1000210 CTPark Jihlava CZ CTP Vysočina, spol. s r.o. Warehouse 1000219 CTPark Kadaň CZ CTP Bohemia North, spol. s r.o Production/Warehouse 1000220 CTPark Kadaň CZ CTP Bohemia North, spol. s r.o Production/Warehouse 1000483 CTPark Kadaň CZ CTP Bohemia North, spol. s r.o Production 1000221 CTPark Kadaň CZ CTP Bohemia North, spol. s r.o Warehouse 1000234 CTPark Karviná CZ CTP Moravia North, spol. s r.o. Warehouse 1000235 CTPark Karviná CZ CTP Moravia North, spol. s r.o. Production/Warehouse 359 CTP Building Number CTPark Country Company Use 1000236 CTPark Karviná CZ CTP Moravia North, spol. s r.o. Production/Warehouse 1000223 CTPark Kutná Hora CZ CTP Invest, spol. s r.o. Warehouse 1000224 CTPark Kutná Hora CZ CTP Invest, spol. s r.o. Warehouse 1000237 CTPark Kvasiny CZ CTP Vysočina, spol. s r.o. Production/Warehouse 1000489 CTPark Kvasiny CZ CTP Vysočina, spol. s r.o. Production/Warehouse 1000238 CTPark Liberec CZ CTP Bohemia North, spol. s r.o Warehouse 1000438 CTPark Lipník nad Bečvou CZ CTP Moravia North, spol. s r.o. Production/Warehouse 1000243 CTPark Louny CZ CTP Bohemia North, spol. s r.o Production/Warehouse 1000101 CTPark Lysá nad Labem CZ CTPark Lysá nad Labem, spol. s r.o. Production/Warehouse 1000102 CTPark Lysá nad Labem CZ CTPark Lysá nad Labem, spol. s r.o. Production/Warehouse 1000103 CTPark Lysá nad Labem CZ CTPark Lysá nad Labem, spol. s r.o. Production/Warehouse 1000490 CTPark Mladá Boleslav CZ CTPark Mladá Boleslav, spol. s r.o. Production 1000547 CTPark Mladá Boleslav CZ CTPark Mladá Boleslav, spol. s r.o. Warehouse 1000247 CTPark Mladá Boleslav CZ CTPark Mladá Boleslav, spol. s r.o. Production/Warehouse 1000248 CTPark Mladá Boleslav CZ CTPark Mladá Boleslav, spol. s r.o. Warehouse 1000249 CTPark Mladá Boleslav CZ CTPark Mladá Boleslav, spol. s r.o. Production/Warehouse 1000273 CTPark Mladá Boleslav II CZ CTPark Mladá Boleslav, spol. s r.o. Production 1000484 CTPark Mladá Boleslav II CZ CTPark Mladá Boleslav, spol. s r.o. Warehouse 1000274 CTPark Mladá Boleslav II CZ CTPark Mladá Boleslav, spol. s r.o. Warehouse 1000275 CTPark Mladá Boleslav II CZ CTPark Mladá Boleslav, spol. s r.o. Production/Warehouse 1000546 CTPark Mladá Boleslav II CZ CTPark Mladá Boleslav, spol. s r.o. Production/Warehouse 1000142 CTPark Modřice CZ CTPark Modřice, spol. s r.o. Oice 1000144 CTPark Modřice CZ CTPark Modřice, spol. s r.o. Oice 1000251 CTPark Modřice CZ CTPark Modřice, spol. s r.o. Warehouse 1000252 CTPark Modřice CZ CTPark Modřice, spol. s r.o. Warehouse 1000253 CTPark Modřice CZ CTPark Modřice, spol. s r.o. Production 1000254 CTPark Modřice CZ CTPark Modřice, spol. s r.o. Production 1000255 CTPark Modřice CZ CTPark Modřice, spol. s r.o. Production 1000256 CTPark Modřice CZ CTPark Modřice, spol. s r.o. Warehouse 1000257 CTPark Modřice CZ CTPark Modřice, spol. s r.o. Production/Warehouse 1000258 CTPark Modřice CZ CTPark Modřice, spol. s r.o. Warehouse 1000259 CTPark Modřice CZ CTPark Modřice, spol. s r.o. Production/Warehouse 1000260 CTPark Modřice CZ CTPark Modřice, spol. s r.o. Warehouse 1000261 CTPark Modřice CZ CTPark Modřice, spol. s r.o. Warehouse 1000262 CTPark Modřice CZ CTPark Modřice, spol. s r.o. Production 1000263 CTPark Modřice CZ CTPark Modřice, spol. s r.o. Warehouse 1000264 CTPark Modřice CZ CTPark Modřice, spol. s r.o. Production 1000265 CTPark Modřice CZ CTPark Modřice, spol. s r.o. Production/Warehouse 1000266 CTPark Modřice CZ CTPark Modřice, spol. s r.o. Production 1000267 CTPark Modřice CZ CTPark Modřice, spol. s r.o. Production/Warehouse 1000270 CTPark Most CZ CTP Bohemia North, spol. s r.o Production/Warehouse 1000442 CTPark Nošovice CZ CTP Moravia North, spol. s r.o. Production/Warehouse 1000498 CTPark Nošovice CZ CTP Moravia North, spol. s r.o. Production/Warehouse 1000279 CTPark Nový Jičín CZ CTP Moravia North, spol. s r.o. Warehouse 1000280 CTPark Nový Jičín CZ CTP Moravia North, spol. s r.o. Production/Warehouse 1000281 CTPark Nový Jičín CZ CTP Moravia North, spol. s r.o. Production/Warehouse 1000469 CTPark Nový Jičín CZ CTP Moravia North, spol. s r.o. Production/Warehouse 1000523 CTPark Nový Jičín CZ CTP Moravia North, spol. s r.o. Production/Warehouse 1000283 CTPark Nový Jičín CZ CTP Moravia North, spol. s r.o. Production/Warehouse 1000284 CTPark Nový Jičín CZ CTP Moravia North, spol. s r.o. Warehouse 1000312 CTPark Okříšky CZ CTP Moravia South, spol. s r.o. Production/Warehouse 1000143 CTPark Ostrava CZ CTPark Ostrava, spol. s r.o. Oice 1000145 CTPark Ostrava CZ CTPark Ostrava, spol. s r.o. Oice 1000146 CTPark Ostrava CZ CTPark Ostrava, spol. s r.o. Oice 1000147 CTPark Ostrava CZ CTPark Ostrava, spol. s r.o. Oice 1000189 CTPark Ostrava CZ CTPark Ostrava, spol. s r.o. Custom built 360 CTP Building Number CTPark Country Company Use 1000291 CTPark Ostrava CZ CTPark Ostrava, spol. s r.o. Production/Warehouse 1000292 CTPark Ostrava CZ CTPark Ostrava, spol. s r.o. Warehouse 1000472 CTPark Ostrava CZ CTPark Ostrava, spol. s r.o. Warehouse 1000293 CTPark Ostrava CZ CTPark Ostrava, spol. s r.o. Production/Warehouse 1000294 CTPark Ostrava CZ CTPark Ostrava, spol. s r.o. Production/Warehouse 1000295 CTPark Ostrava CZ CTPark Ostrava, spol. s r.o. Production 1000296 CTPark Ostrava CZ CTPark Ostrava, spol. s r.o. Production/Warehouse 1000495 CTPark Ostrava CZ CTPark Ostrava, spol. s r.o. Warehouse 1000297 CTPark Ostrava CZ CTPark Ostrava, spol. s r.o. Warehouse 1000298 CTPark Ostrava CZ CTPark Ostrava, spol. s r.o. Warehouse 1000299 CTPark Ostrava CZ CTPark Ostrava, spol. s r.o. Production/Warehouse 1000300 CTPark Ostrava CZ CTPark Ostrava, spol. s r.o. Production/Warehouse 1000301 CTPark Ostrava CZ CTPark Ostrava, spol. s r.o. Production/Warehouse 1000302 CTPark Ostrava CZ CTPark Ostrava, spol. s r.o. Warehouse 1000303 CTPark Ostrava CZ CTPark Ostrava, spol. s r.o. Warehouse 1000508 CTPark Ostrava CZ CTPark Ostrava, spol. s r.o. Production 1000304 CTPark Ostrava CZ CTPark Ostrava, spol. s r.o. SBU 1000305 CTPark Ostrava CZ CTPark Ostrava, spol. s r.o. SBU 1000561 CTPark Ostrava CZ CTPark Ostrava, spol. s r.o. Warehouse 1000470 CTPark Ostrava CZ CTPark Ostrava, spol. s r.o. Warehouse 1000306 CTPark Ostrava CZ CTPark Ostrava, spol. s r.o. Production/Warehouse 1000307 CTPark Ostrava CZ CTPark Ostrava, spol. s r.o. Production/Warehouse 1000308 CTPark Ostrava CZ CTPark Ostrava, spol. s r.o. Production/Warehouse 1000309 CTPark Ostrava CZ CTPark Ostrava, spol. s r.o. Warehouse 1000310 CTPark Ostrava CZ CTPark Ostrava, spol. s r.o. Production/Warehouse 1000517 CTPark Ostrava CZ CTPark Ostrava, spol. s r.o. Production/Warehouse 1000311 CTPark Ostrava CZ CTPark Ostrava, spol. s r.o. Production/Warehouse 1000603 CTPark Ostrava Poruba CZ CTPark Ostrava Poruba, spol. s r.o. Warehouse 1000337 CTPark Pardubice CZ CTP Vysočina, spol. s r.o. Warehouse 1000338 CTPark Pardubice CZ CTP Vysočina, spol. s r.o. Warehouse 1000346 CTPark Planá CZ CTP Bohemia South, spol. s r.o. Production/Warehouse 1000579 CTPark Plzeň CZ CTP Borská Pole, spol. s r.o. SBU 1000604 CTPark Plzeň CZ CTP XXIII, spol. s r.o. SBU 1000569 CTPark Plzeň CZ CTP XXIII, spol. s r.o. SBU 1000525 CTPark Plzeň CZ CTPark Plzeň, spol. s r.o. SBU 1000075 CTPark Plzeň CZ CTP Borská Pole, spol. s r.o. SBU 1000347 CTPark Pohořelice CZ CTP Moravia South, spol. s r.o. Warehouse 1000348 CTPark Pohořelice CZ CTP Moravia South, spol. s r.o. Warehouse 1000349 CTPark Pohořelice CZ CTP Moravia South, spol. s r.o. Warehouse 1000350 CTPark Pohořelice CZ CTP Moravia South, spol. s r.o. Warehouse 1000351 CTPark Pohořelice CZ CTP Moravia South, spol. s r.o. Warehouse 1000228 CTPark Prague Airport CZ CTPark Prague Airport, spol. s r.o. Warehouse 1000229 CTPark Prague Airport CZ CTPark Prague Airport, spol. s r.o. Warehouse 1000230 CTPark Prague Airport CZ CTPark Prague Airport, spol. s r.o. Warehouse 1000231 CTPark Prague Airport CZ CTPark Prague Airport, spol. s r.o. Oice 1000232 CTPark Prague Airport CZ CTPark Prague Airport, spol. s r.o. Warehouse 1000285 CTPark Prague East CZ CTPark Prague East, spol. s r.o. Production/Warehouse 1000444 CTPark Prague East CZ CTPark Prague East, spol. s r.o. Production/Warehouse 1000504 CTPark Prague East CZ CTPark Prague East, spol. s r.o. Production/Warehouse 1000526 CTPark Prague East CZ CTPark Prague East, spol. s r.o. Warehouse 1000286 CTPark Prague East CZ CTPark Prague East, spol. s r.o. Oice 1000287 CTPark Prague East CZ CTPark Prague East, spol. s r.o. Warehouse 1000288 CTPark Prague East CZ CTPark Prague East, spol. s r.o. Warehouse 1000129 CTPark Prague West CZ CTPark Prague West, spol. s r.o. Production/Warehouse 1000437 CTPark Prague West CZ CTPark Prague West, spol. s r.o. Production/Warehouse 1000352 CTPark Přeštice CZ CTP Pilsen Region, spol. s r.o. Production/Warehouse 361 CTP Building Number CTPark Country Company Use 1000353 CTPark Přeštice CZ CTP Pilsen Region, spol. s r.o. Production/Warehouse 1000354 CTPark Přeštice CZ CTP Pilsen Region, spol. s r.o. Production/Warehouse 1000408 CTPark Ústí nad Labem CZ CTP Bohemia North, spol. s r.o Production/Warehouse 1000427 CTPark Zákupy CZ CTP Bohemia North, spol. s r.o Warehouse 1000428 CTPark Zákupy CZ CTP Bohemia North, spol. s r.o Oice 1000425 CTPark Žatec CZ CTP Bohemia North, spol. s r.o Production/Warehouse 1000426 CTPark Žatec CZ CTP Bohemia North, spol. s r.o Production/Warehouse 1000577 CTPark Žatec CZ CTP Bohemia North, spol. s r.o Warehouse 1000430 CTPark Žatec II CZ CTP Bohemia North, spol. s r.o Production/Warehouse 1000013 CTZone Ostrava CZ CTZone Ostrava, spol. s r.o. Oice 1000014 CTZone Ostrava CZ CTZone Ostrava, spol. s r.o. Garages & Workshops 1000015 CTZone Ostrava CZ CTZone Ostrava, spol. s r.o. Production 1000016 CTZone Ostrava CZ CTZone Ostrava, spol. s r.o. SBU 1000017 CTZone Ostrava CZ CTZone Ostrava, spol. s r.o. Guard building 1000018 CTZone Ostrava CZ CTZone Ostrava, spol. s r.o. Change & washroom 1000019 CTZone Ostrava CZ CTZone Ostrava, spol. s r.o. Warehouse 1000020 CTZone Ostrava CZ CTZone Ostrava, spol. s r.o. Parking 1000021 CTZone Ostrava CZ CTZone Ostrava, spol. s r.o. Parking 1000022 CTZone Ostrava CZ CTZone Ostrava, spol. s r.o. Warehouse 1000023 CTZone Ostrava CZ CTZone Ostrava, spol. s r.o. Workshops 1000024 CTZone Ostrava CZ CTZone Ostrava, spol. s r.o. Workshops 1000207 IQ Ostrava/Náměstí Republiky CZ CTP IQ Ostrava, spol. s r.o. Oice 1000118 Ponávka CZ CTP Ponávka Business Park, spol. s r.o. Oice 1000119 Ponávka CZ CTP Ponávka Business Park, spol. s r.o. Oice 1000120 Ponávka CZ CTP Ponávka Business Park, spol. s r.o. Storage 1000121 Ponávka CZ CTP Ponávka Business Park, spol. s r.o. Oice 1000122 Ponávka CZ CTP Ponávka Business Park, spol. s r.o. Warehouse 1000125 Ponávka CZ CTP Ponávka Business Park, spol. s r.o. Warehouse 1000134 Ponávka CZ CTP Ponávka Business Park, spol. s r.o. SBU 1000135 Ponávka CZ CTP Ponávka Business Park, spol. s r.o. SBU 1000136 Ponávka CZ CTP Ponávka Business Park, spol. s r.o. SBU 1000137 Ponávka CZ CTP Ponávka Business Park, spol. s r.o. SBU 1000138 Ponávka CZ CTP Ponávka Business Park, spol. s r.o. SBU 1000139 Ponávka CZ CTP Ponávka Business Park, spol. s r.o. SBU 1000140 Ponávka CZ CTP Ponávka Business Park, spol. s r.o. SBU 1000141 Ponávka CZ CTP Ponávka Business Park, spol. s r.o. SBU 1000148 Ponávka CZ CTP Ponávka Business Park, spol. s r.o. Oice 1000149 Ponávka CZ CTP Ponávka Business Park, spol. s r.o. Oice 1000507 Ponávka CZ CTP Ponávka Business Park, spol. s r.o. Oice 1000450 Ponávka CZ CTP Domeq Brno, spol. s r.o. Mid-term housing Domeq II Ponávka CZ CTP Domeq Brno, spol. s r.o. Mid-term housing Domeq III Ponávka CZ CTP Domeq Brno, spol. s r.o. Mid-term housing 1000272 Retail Bohemia CZ CTP Barrandov, spol. s r.o. Retail 1000206 Spielberk Oice Centre CZ Spielberk Business Park, spol. s r.o. Oice 1000389 Spielberk Oice Centre CZ Spielberk Business Park II, spol. s r.o. Oice 1000409 Spielberk Oice Centre CZ Spielberk Business Park, spol. s r.o. Oice 1000410 Spielberk Oice Centre CZ Spielberk Business Park, spol. s r.o. Oice 1000411 Spielberk Oice Centre CZ Spielberk Business Park, spol. s r.o. Oice 1000412 Spielberk Oice Centre CZ Spielberk Business Park, spol. s r.o. Oice 1000413 Spielberk Oice Centre CZ Spielberk Business Park, spol. s r.o. Oice 1000151 Vlněna Oice Park CZ CTP Vlněna Business Park, spol. s r.o. Oice 1000448 Vlněna Oice Park CZ CTP Vlněna Business Park, spol. s r.o. Oice 1000446 Vlněna Oice Park CZ CTP Vlněna Business Park, spol. s r.o. Oice 1000642 Vlněna Oice Park CZ CTP Vlněna Business Park, spol. s r.o. Oice 1000445 Vlněna Oice Park CZ CTP Vlněna Business Park, spol. s r.o. Oice 1000011 CTPark Arad RO CTPark Beta S.R.L Industrial 362 CTP Building Number CTPark Country Company Use 1000615 CTPark Arad West RO CTPark Beta S.R.L Industrial 1000527 CTPark Bucharest RO CTPark Bucharest A1 SRL Industrial 1000528 CTPark Bucharest RO CTPark Bucharest A1 SRL Industrial 1000529 CTPark Bucharest RO CTPark Bucharest A1 SRL Industrial 1000532 CTPark Bucharest RO CTPark Bucharest A1 SRL Industrial 1000530 CTPark Bucharest RO CTPark Bucharest A1 SRL Industrial 1000531 CTPark Bucharest RO CTPark Bucharest A1 SRL Industrial 1000533 CTPark Bucharest RO CTPark Bucharest A1 SRL Industrial 1000534 CTPark Bucharest RO CTPark Bucharest A1 SRL Industrial 1000535 CTPark Bucharest RO CTPark Bucharest A1 SRL Industrial 1000585 CTPark Bucharest RO CTPark Bucharest A1 SRL Industrial 1000586 CTPark Bucharest RO CTPark Bucharest A1 SRL Industrial 1000587 CTPark Bucharest RO CTPark Bucharest A1 SRL Industrial 1000588 CTPark Bucharest RO CTPark Bucharest A1 SRL Industrial 1000589 CTPark Bucharest RO CTPark Bucharest A1 SRL Industrial 1000590 CTPark Bucharest RO CTPark Bucharest A1 SRL Industrial 1000591 CTPark Bucharest RO CTPark Bucharest A1 SRL Industrial 1000592 CTPark Bucharest RO CTPark Bucharest A1 SRL Industrial 1000593 CTPark Bucharest RO CTPark Bucharest A1 SRL Industrial 1000594 CTPark Bucharest RO CTPark Bucharest A1 SRL Industrial 1000595 CTPark Bucharest RO CTPark Bucharest A1 SRL Industrial 1000596 CTPark Bucharest RO CTPark Bucharest A1 SRL Industrial 1000093 CTPark Bucharest RO CTPark Bucharest II SRL Industrial 1000090 CTPark Bucharest RO CTPark Bucharest SRL Industrial 1000094 CTPark Bucharest RO CTPark Bucharest SRL Industrial 1000095 CTPark Bucharest RO CTPark Bucharest SRL Industrial 1000096 CTPark Bucharest RO CTPark Bucharest SRL Industrial 1000097 CTPark Bucharest RO CTPark Bucharest SRL Industrial 1000098 CTPark Bucharest RO CTPark Bucharest SRL Industrial 1000099 CTPark Bucharest RO CTPark Bucharest SRL Industrial 1000100 CTPark Bucharest RO CTPark Bucharest SRL Industrial 1000565 CTPark Bucharest RO CTPARK BUCHAREST UPSILON SRL Industrial 1000566 CTPark Bucharest RO CTPARK BUCHAREST UPSILON SRL Industrial 1000567 CTPark Bucharest RO CTPARK BUCHAREST UPSILON SRL Industrial 1000091 CTPark Bucharest RO CTPARK GAMMA SRL Industrial 1000092 CTPark Bucharest RO CTPARK GAMMA SRL Industrial 1000497 CTPark Bucharest RO CTPARK GAMMA SRL Industrial 1000555 CTPark Bucharest RO CTPARK GAMMA SRL Industrial 1000568 CTPark Bucharest North RO CTPARK THETA SRL Industrial 1000623 CTPark Bucharest North RO CTPARK THETA SRL Industrial 1000623 CTPark Bucharest North RO CTPARK THETA SRL Industrial 1000553 CTPark Bucharest West RO CTP CONTRACTORS SRL Industrial 1000106 CTPark Bucharest West RO CTPark Bucharest West I SRL Industrial 1000107 CTPark Bucharest West RO CTPark Bucharest West I SRL Industrial 1000108 CTPark Bucharest West RO CTPark Bucharest West I SRL Industrial 1000113 CTPark Bucharest West RO CTPark Bucharest West I SRL Industrial 1000114 CTPark Bucharest West RO CTPark Bucharest West I SRL Industrial 1000105 CTPark Bucharest West RO CTPark Bucharest West II SRL Industrial 1000111 CTPark Bucharest West RO CTPark Bucharest West II SRL Industrial 1000112 CTPark Bucharest West RO CTPark Bucharest West II SRL Industrial 1000606 CTPark Bucharest West RO CTPark Bucharest West II SRL Industrial 1000109 CTPark Bucharest West RO CTPARK ETA SRL Industrial 1000477 CTPark Bucharest West RO CTPARK ETA SRL Industrial 1000473 CTPark Bucharest West RO CTPARK PHI SRL Industrial 1000110 CTPark Bucharest West RO CTPARK PHI SRL Industrial 1000612 CTPark Bucharest West RO CTPARK PHI SRL Canteen 363 CTP Building Number CTPark Country Company Use 1000454 CTPark Bucharest Chitila RO CTPARK KAPPA SRL Industrial 1000466 CTPark Cluj RO CTPARK ALPHA S.R.L. Industrial 1000494 CTPark Cluj RO CTPARK ALPHA S.R.L. Industrial 1000614 CTPark Caransebes RO CTPark Beta S.R.L Industrial 1000160 CTPark Deva RO CTPARK ALPHA S.R.L. Industrial 1000486 CTPark Deva RO CTPARK ALPHA S.R.L. Industrial 1000161 CTPark Deva II RO CTPark Deva II SRL Industrial 1000162 CTPark Deva II RO CTPark Deva II SRL Industrial 1000453 CTPark Ineu RO CTPARK DELTA SRL Industrial 1000344 CTPark Pitesti RO CTPARK ALPHA S.R.L. Industrial 1000345 CTPark Pitesti RO CTPARK OMEGA SRL Industrial 1000460 CTPark Pitesti RO CTPARK OMEGA SRL Industrial 1000451 CTPark Salonta RO CTPARK DELTA SRL Industrial 1000452 CTPark Salonta RO CTPARK DELTA SRL Industrial 1000474 CTPark Sibiu RO CTPARK TAU SRL Industrial 1000475 CTPark Sibiu RO CTPARK LAMBDA SRL Industrial 1000387 CTPark Timisoara RO CTPark Beta S.R.L Industrial 1000388 CTPark Timisoara II RO CTPARK SIGMA SRL Industrial 1000616 CTPark Timisoara South RO CTPark Beta S.R.L Industrial 1000622 CTPark Timisoara South RO CTPARK BETA SRL Industrial 1000401 CTPark Turda RO CTPark Beta S.R.L Industrial 1000402 CTPark Turda RO CTPark Beta S.R.L Industrial 1000709 CTPark Arad North RO CTPark Arad North SRL (fost BORDER LOGISTICS SRL) Industrial 1000710 CTPark Sibiu East RO CTPark Sibiu East SRL (Network Wide Logistics SRL) Industrial 1000711 CTPark Sibiu East RO CTPark Sibiu East SRL (Network Wide Logistics SRL) Industrial CTPark Oradea North RO CTPark Oradea North SRL (WESTERN LOGISTICS SRL) Industrial CTPark Oradea North RO CTPark Oradea North SRL (WESTERN LOGISTICS SRL) Industrial 1000713 CTPark Craiova East RO CTPark Craiova East SRL (SOUTHERN LOGISTICS SRL) Industrial 1000714 CTPark Craiova East RO CTPark Craiova East SRL (SOUTHERN LOGISTICS SRL) Industrial n/A CTPark Brasov West RO CTPark Brasov West SRL Industrial 1000720 CTPark Brasov West RO CTPark Brasov West SRL Industrial 1000778 CTPark Brasov West RO CTPark Brasov West SRL Industrial 1000779 CTPark Brasov West RO CTPark Brasov West SRL Industrial 1000780 CTPark Brasov West RO CTPark Brasov SRL Industrial 1000781 CTPark Brasov West RO CTPark Brasov West SRL Industrial 1000721 CTPark Timisoara RO CTPark Timisoara East SRL (Olympian Timisoara SA) Industrial 1000788 CTPark Timisoara RO CTPark Timisoara East SRL (Olympian Timisoara SA) Industrial 1000721 CTPark Timisoara RO CTPark Timisoara East SRL (Olympian Timisoara SA) Industrial 1000790 CTPark Timisoara RO CTPark Timisoara East SRL (Olympian Timisoara SA) Industrial 1000721 CTPark Timisoara RO CTPark Timisoara East SRL (Olympian Timisoara SA) Industrial 1000728 CTPark Bucharest South II RO CTPark Bucharest South II SRL (Olympian East Bucharest SA) Industrial 1000729 CTPark Bucharest South II RO CTPark Bucharest South II SRL (Olympian East Bucharest SA) Industrial 1000722 CTPark Bucharest South II RO CTPark Bucharest South II SRL (Olympian East Bucharest SA) Industrial 1000787 CTPark Bucharest South II RO CTPark Bucharest South II SRL (Olympian East Bucharest SA) Industrial 1000496 CTPark Bucharest RO CTPARK GAMMA SRL Industrial 1000581 CTPark Bucharest RO CTP CONTRACTORS SRL Industrial 1000599 CTPark Bucharest RO CTPark Rho SRL Industrial 1000597 CTPark Bucharest West RO CTPARK ZETA SRL Industrial 1000365 CTPark Sibiu RO CTPARK TAU SRL Industrial 1000578 CTPark Timisoara II RO CTPARK PSI SRL Industrial 1000739 CTPark Turda RO CTPark Epsilon SRL Industrial 1000176 CTPark Arrabona HU CTPark Alpha Kft. Industrial 1000177 CTPark Arrabona II HU CTPark Arrabona Kft. Industrial 1000510 CTPark Arrabona II HU CTPark Arrabona Kft. Industrial 1000562 CTPark Arrabona II HU CTPark Arrabona Kft. Industrial 1000723 CTPark Budapest Campus HU OFFICE CAMPUS REAL ESTATE Kft. Oice 364 CTP Building Number CTPark Country Company Use 1000404 CTPark Budapest East HU CTPark Beta Kft. Industrial 1000405 CTPark Budapest East HU CTPark Alpha Kft. Industrial 1000406 CTPark Budapest East HU CTPark Beta Kft. Industrial 1000563 CTPark Budapest East HU CTPark Eleven Kft. Industrial 1000601 CTPark Budapest East HU CTPark Eleven Kft. Industrial 1000467 CTPark Budapest South HU CTPark Seven Kft. Industrial 1000572 CTPark Budapest South HU CTPark Seven Kft. Industrial 1000042 CTPark Budapest West HU CTPark Delta Kft. Industrial 1000043 CTPark Budapest West HU CTPark Delta Kft. Industrial 1000050 CTPark Budapest West HU CTPark Biatorbágy Kft. Industrial 1000602 CTPark Budapest West HU CTPark Nine Kft. Industrial 1000506 CTPark Budapest West HU CTPark Nine Kft. Industrial 1000459 CTPark Budapest West HU CTPark Delta Kft. Industrial 1000044 CTPark Budapest West HU CTPark Biatorbágy Kft. Industrial 1000045 CTPark Budapest West HU CTPark Biatorbágy Kft. Industrial 1000046 CTPark Budapest West HU CTPark Biatorbágy Kft. Industrial 1000047 CTPark Budapest West HU CTPark Biatorbágy Kft. Industrial 1000048 CTPark Budapest West HU CTPark Biatorbágy Kft. Industrial 1000049 CTPark Budapest West HU CTPark Biatorbágy Kft. Industrial 1000479 CTPark Komárom HU CTPark Alpha Kft. Industrial 1000227 CTPark Komárom HU CTPark Eight Kft. Industrial 1000455 CTPark Komárom HU CTPark Eight Kft. Industrial 1000456 CTPark Komárom HU CTPark Eight Kft. Industrial 1000465 CTPark Székesfehérvár HU CTPark Ten Kft. Industrial 1000380 CTPark Szombathely HU CTPark Biatorbágy Kft. Industrial 1000715 CTPark Szombathely East HU CTPark Thirteen Kft. Industrial 1000381 CTPark Tatabánya HU CTPark Gamma Kft. Industrial 1000382 CTPark Tatabánya HU CTPark Alpha Kft. Industrial 1000383 CTPark Tatabánya HU CTPark Alpha Kft. Industrial 1000384 CTPark Tatabánya HU CTPark Alpha Kft. Industrial 1000632 CTPark Vecsés HU CTPark Twelve Kft. Industrial 1000617 CTPark Vecsés HU CTPark Twelve Kft. Industrial 1000277 Nitra SK CTPark Nitra, spol, s.r.o Warehouse 1000278 Nitra SK CTPark Slovakia, s.r.o. Production 1000458 Nitra SK CTPark Slovakia, s.r.o. Production 1000391 Trnava SK CTPark Slovakia, s.r.o. Production 1000396 Trnava SK CTPark Slovakia, s.r.o. Warehouse 1000397 Trnava SK CTPark Slovakia, s.r.o. Production 1000398 Trnava SK CTPark Slovakia, s.r.o. Production 1000399 Trnava SK CTPark Slovakia, s.r.o. Production 1000400 Trnava SK CTPark Slovakia, s.r.o. Production 1000559 Trnava SK CTPark Slovakia, s.r.o. Warehouse 1000392 Trnava SK CTPark Slovakia, s.r.o. Production 1000393 Trnava SK CTPark Slovakia, s.r.o. Warehouse 1000394 Trnava SK CTPark Slovakia, s.r.o. Production 1000395 Trnava SK CTPark Slovakia, s.r.o. Warehouse 1000414 Voderady SK CTP Alpha SK, spol. s r.o. Production 1000415 Voderady SK CTP Alpha SK, spol. s r.o. Production 1000457 Hlohovec SK CTPark Hlohovec, spol. s r.o. Production 1000476 Hlohovec SK CTPark Hlohovec, spol. s r.o. Production 1000488 Nové Mesto nad Váhom SK CTPark Nove Mesto, spol. s.r.o. Production 1000487 Nové Mesto nad Váhom SK CTPark Nove Mesto, spol. s.r.o. Production 1000076 Bratislava SK CTPark Bratislava, spol. s r.o. Production 1000084 Bratislava SK CTPark Bratislava, spol. s r.o. Production 1000503 Bratislava SK CTPark Bratislava, spol. s r.o. Production 1000514 Bratislava SK CTPark Bratislava, spol. s r.o. Warehouse 365 CTP Building Number CTPark Country Company Use 1000683 Bratislava SK CTPark Bratislava, spol. s r.o. Warehouse 1000085 Bratislava SK CTPark Bratislava, spol. s r.o. Production 1000086 Bratislava SK CTPark Bratislava, spol. s r.o. Production 1000087 Bratislava SK CTPark Bratislava, spol. s r.o. Warehouse 1000088 Bratislava SK CTPark Bratislava, spol. s r.o. Warehouse 1000077 Bratislava SK CTPark Bratislava, spol. s r.o. Production 1000078 Bratislava SK CTPark Bratislava, spol. s r.o. Production 1000079 Bratislava SK CTPark Bratislava, spol. s r.o. Warehouse 1000080 Bratislava SK CTPark Bratislava, spol. s r.o. Warehouse 1000081 Bratislava SK CTPark Bratislava, spol. s r.o. Production 1000082 Bratislava SK CTPark Bratislava, spol. s r.o. Production 1000083 Bratislava SK CTPark Bratislava, spol. s r.o. Production 1000626 Žilina Airport SK CTPark Žilina Airport, spol. s r. o. Warehouse 1000627 Žilina Airport SK CTPark Žilina Airport, spol. s r. o. Warehouse 1000628 Žilina Airport SK CTPark Žilina Airport, spol. s r. o. Warehouse 1000431 Žilina SK CTP Alpha SK, spol. s r.o. Production 1000432 Žilina SK CTP Alpha SK, spol. s r.o. Warehouse 1000435 Žilina SK CTP Alpha SK, spol. s r.o. Production 1000493 Žilina SK CTP Alpha SK, spol. s r.o. Production 1000560 Žilina SK CTP Alpha SK, spol. s r.o. Production 1000233 Krásno nad Kysucou SK CTPark Krásno nad Kysucou, spol. s r.o. Production 1000538 Košice SK CTPark Košice, spol. s r. o. Production 1000539 Košice SK CTPark Košice, spol. s r. o. Warehouse 1000537 Košice SK CTPark Košice, spol. s r. o. Production 1000554 Košice SK CTPark Košice, spol. s r. o. Production 1000540 Košice SK CTPark Košice, spol. s r. o. Production 1000541 Košice SK CTPark Košice, spol. s r. o. Warehouse 1000556 Košice SK CTPark Košice, spol. s r. o. Production N/A Námestovo SK CTPark Námestovo, spol. s r.o. Production N/A Vavrečka SK CTPark Námestovo, spol. s r.o. Production 1000093 OC Dunaj SK CTPark Bratislava, spol. s r.o. Mixes use 1000499 CTPark Belgrade West RS CTP Beta doo Beograd-Novi Beograd Warehouse 1000485 CTPark Belgrade West RS CTP Alpha d.o.o. Beograd-Novi Beograd Warehouse 1000584 CTPark Belgrade North RS CTP Lambda doo Beograd Warehouse 1000580 CTPark Belgrade North RS CTP Lambda doo Beograd Warehouse 1000619 CTPark Belgrade North RS CTP Omega doo Beograd-Novi Beograd Warehouse 1000513 CTPark Novi Sad, Serbia RS CTP Gamma d.o.o Beograd-Novi Beograd Production 1000511 CTPark Kragujevac RS CTP Delta doo Beograd-Novi Beograd Production 1000564 CTPark Kragujevac RS CTP Kappa doo Beograd-Novi Beograd Production 1000313 CTPark Opole PL CTPark Opole Sp. z o.o. Industrial 1000314 CTPark Opole PL CTPark Opole Sp. z o.o. Industrial 1000607 CTPark Soia Airport BG CTPark Delta EOOD Logistics 1000767 CTPark Soia East BG CTPark Lambda EOOD Logistics 1000766 CTPark Plovdiv Airport BG CTPark Kappa EOOD Industrial 1000132 Deuchendorf AT CTP Beta GmbH Production 1000041 Bernau, Germany DE CTP Germany V GmbH Industrial 1000169 Erfurt-Nord, Germany DE CTP Germany V GmbH Industrial 1000222 Gommern Karith, Germany DE CTP Germany V GmbH Industrial 1000271 Müllrose, Germany DE CTP Germany V GmbH Industrial 1000362 Schenkendöbern, Germany DE CTP Germany V GmbH Land 1000379 Syke, Germany DE CTP Germany V GmbH Industrial 1000407 Untermaßfeld, Germany DE CTP Germany V GmbH Land 1000417 Weimar, Germany DE CTP Germany V GmbH Industrial 1000419 Schulstr. 102 Wiesmoor, Germany DE CTP Germany V GmbH Industrial 366 Five Building Types CTP’s Industrial portfolio is centered on our core business—the CTPark Network—the largest integrated network of premium business parks in CEE. With over 120 locations and a strategic land bank, the CTPark Network enables our clients to cover the whole region with room to grow. To meet the requirements of major industries, CTP has developed fi ve bespoke building types ranging in size and functionality to support a broad spectrum of business activities: logistics, e-commerce, manufacturing and its supply chains, as well as high-tech manufacturing, advanced R&D and back-offi ce operations. The in-house CTP Platform provides for the fi nancing, design and construction of custom-built industrial properties and interior fi t-outs, including sophisticated production lines, clean rooms and laboratories, complemented by complex building management systems engineered for effi cient operations and transparent OPEX costs. ctBox From 400-850 sqm ctFlex 1,150-3,000 sqm ctFit from 5,000 sqm ctLab from 195 sqm ctSpace from 3,000 sqm Appendix BAppendices Five Building Types ctBox Designed for local companies and startups. This simple and functional building provides three necessary areas for a smooth running business: showroom, office space and warehouse. As companies grow, it is easy for them to expand their retail, light manufacturing, or test facilities etc. Typical Usage B2B retail, showrooms, warehousing / production Typical Size 400-850 sqm Standard Height 7 m Floor Loading 500 kg/sqm (Oice), 4 tn/sqm (Warehouse) or 3.2 tn for rack support Standard Grid 15×24 m, oice in-built reduced up to 5×6 m From 400-850 sqm 367 ctFlex Built with flexibility in mind for growing businesses, ctFlex offers a modifiable and expandable concept for small and mid-sized companies with built-in offices and warehouses. ctFlex allows companies to focus on their business without being worried about having enough space for operations. Typical Usage Production/warehousing in smaller units that can be merged as clients grow Typical Size 1,150 - 3,000 sqm Standard Height 10.5 m Floor Loading 5,000 kg/sqm or 3.2 tn for rack support Standard Grid 12×24 m 1,150-3,000 sqm ctFit Ideal for activities of large enterprises with special technical parameters, such as distribution hubs, chilled warehousing, high-tech manufacturing and R&D laboratories. Typical Usage To meet client speciications, but also suitable for new clients Typical Size from 5,000 sqm Standard Height Clear height 10.5 m Floor Loading 500 kg/sqm (Oice), 5 tn/sqm (Warehouse) or 3.2 tn for rack support Standard Grid 12×24 m, oice inbuilt reduced up to 6×6 m from 5,000 sqm 368 ctLab ctLab is a cost-effective facility ideal for service centres, software/ equipment design, R&D and back-office operations of all types of companies. Flexible floor plans support customisation and future expansion. The concept also includes ground-floor business services and amenities. Typical Usage Supplementary oices in parks Typical Size from 195 sqm Standard Height 2.8 m Floor Loading 400 kg/sqm Standard Grid Variable, typically 6×6 m up to 7.5×7.5 m from 195 sqm ctSpace Top-quality buildings for global companies designed to accommodate warehousing and distribution needs. The ctSpace concept is ideal for logistics operations, distribution centres or supply chain hubs. Typical Usage Big-box logistics Typical Size from 3,000 sqm Standard Height 12 m Floor Loading 5,000 kg/sqm or 3.2 tn for rack support Standard Grid 12×24 m, oice in-built from 3,000 sqm 369 370 Appendix CAppendices EPRA Financial Performance Metrics The purpose of these indicators, as recommended by the European Public Real Estate Association (EPRA), is to enable easier comparison with similar real estate businesses. EPRA performance indicators are calcu- lated in accordance with the EPRA Best Practices Recommendations (BPR) Guidelines. EPRA Financial Performance Metrics Indicator Definition 2021 2020 1. COMPANY SPECIFIC ADJUSTED EPS A key measure of a company’s underlying operating results and an indication of the extent to which current dividend payments are supported by earnings. € 0.49 € 0.44 2. EPRA NAV METRICS EPRA NAV metrics make adjustments to the NAV per IFRS inan- cial statements to provide stakeholders with the most relevant information on the fair value of the assets and liabilities of a real estate investment company, under diferent scenarios. a. EPRA Net Tangible Assets Assumes that company buy and sell assets, thereby crystallising certain levels of unavoidable deferred tax. € 12.06 € 8.32 b. EPRA Net Reinstatement Value Assumes that company never sell assets and aims to represent the value required to rebuild the company. € 12.09 € 8.33 c. EPRA Net Disposal Value Represents the shareholders’ value under a disposal scenario, where deferred tax, inancial instruments and certain other ad- justments are calculated to the full extent of their liability, net of any resulting tax. € 10.25 € 6.59 3. EPRA YIELD METRICS A comparable measure for portfolio Valuations. a. EPRA NET INITIAL YIELD (NIY) Annualised rental income based on the cash rents passing at the balance sheet date, less non-recoverable property operating ex- penses, divided by the market value of the property, increased with (estimated) purchasers’ costs. 5.2% 5.8% b. EPRA ‘TOPPED-UP’ NIY This measure incorporates an adjustment to the EPRA NIY in respect of the expiration of rent-free periods (or other unexpired lease incentives such as discounted rent periods and step rents). 5.6% 6.2% EPRA Earnings (amounts in TEUR) 2021 2020 Earnings per IFRS income statement 1,025,936 252,118 Adjustments to calculate EPRA Earnings, exclude: (i) Changes in value of investment properties, development properties held for investment and other interests 1,100,571 152,162 (ii) Proits or losses on disposal of investment properties, development properties held for investment and other interests 2,233 -933 (iii) Proits or losses on sales of trading properties including impairment charges in respect of trading properties. - - (iv) Tax on proits or losses on disposals -146 - (v) Negative goodwill / goodwill impairment - - (vi) Changes in fair value of inancial instruments and associated close-out costs 12,126 -40,272 (vii) Acquisition costs on share deals and non-controlling joint venture interests -1,648 - (viii) Deferred tax in respect of EPRA adjustments -227,903 -14,234 (ix) Adjustments (i) to (viii) above in respect of joint ventures (unless already included under proportional consolidation) - - (x) Non-controlling interests in respect of the above - - EPRA Earnings 140,703 155,395 Average number of shares 383,407 336,000 EPRA Earnings per Share (EPS) € 0.37 € 0.46 Company speciic adjustments: (a) Adjustment for rental income included in 2018 for sold portfolio to Deka (b) Impairment/depreciation on property, plant and equipment -5,657 -6,122 (c) FX related to company restructuring, intra-group transfer of SPV's -5,306 17,866 (d) Adjustment associated costs with establishment capital market structure -41,094 -6,479 (e) Deferred tax in respect of Company speciic adjustments 6,654 1,163 Company speciic Adjusted Earnings 186,106 148,967 Company speciic Adjusted EPS € 0.49 € 0.44 Please ind full reconciliation of the calculated EPRA performance indicators below. 1 The denominator in the calculation of basic EPS over 2020 is the number of shares as at 31 December 2020. The resulting 2020 EPS data is pro forma rather than historical but comparable to 2021. EPRA Earnings 371 EPRA Net Asset Value Metrics (amounts in TEUR) EPRA NRV EPRA NTA EPRA NDV December 2021 December 2021 December 2021 IFRS Equity attributable to shareholders 4,106,830 4,106,830 4,106,830 Include / Exclude: i) Hybrid instruments Diluted NAV 4,106,830 4,106,830 4,106,830 Include: ii.a) Revaluation of IP (if IAS 40 cost option is used) ii.b) Revaluation of IPUC1 (if IAS 40 cost option is used) ii.c) Revaluation of other non-current investments iii) Revaluation of tenant leases held as inance leases iv) Revaluation of trading properties Diluted NAV at Fair Value 4,106,830 4,106,830 4,106,830 Exclude: v) Deferred tax in relation to fair value gains of IP - 725,779 - 725,779 vi) Fair value of inancial instruments 172 172 vii) Goodwill as a result of deferred tax viii.a) Goodwill as per the IFRS balance sheet viii.b) Intangibles as per the IFRS balance sheet 2,111 Include: ix) Fair value of ixed interest rate debt -3,471 x) Revaluation of intangibles to fair value xi) Real estate transfer tax 6,595 NAV 4,839,032 4,830,326 4,103,359 Fully diluted number of shares 400,393 400,393 400,393 NAV per share € 12.09 € 12.06 € 10.25 EPRA NAV Metrics 2021 372 EPRA net initial Yield (NIY) and 'topped-up' NIY December 2021 December 2020 Investment property – wholly owned 7,822,472 5,447,632 Investment property – share of JVs/Funds - - Trading property (including share of JVs) - - Less: developments 774,204 387,347 Completed property portfolio 7,048,268 5,060,285 Allowance for estimated purchasers’ costs - - Gross up completed property portfolio valuation B 7,048,268 5,060,285 Annualised cash passing rental income 379,001 302,816 Property outgoings 9,103 7,454 Annualised net rents A 369,898 295,362 Add: notional rent expiration of rent-free periods or other lease incentives 21,435 19,724 Topped-up net annualised rent C 391,333 315,086 EPRA NIY A/B 5.2% 5.8% EPRA “topped-up” NIY C/B 5.6% 6.2% EPRA Net Asset Value Metrics (amounts in TEUR) EPRA NRV EPRA NTA EPRA NDV December 2020 December 2020 December 2020 IFRS Equity attributable to shareholders 2,263,202 2,263,202 2,263,202 Include / Exclude: i) Hybrid instruments Diluted NAV 2,263,202 2,263,202 2,263,202 Include: ii.a) Revaluation of IP (if IAS 40 cost option is used) ii.b) Revaluation of IPUC1 (if IAS 40 cost option is used) ii.c) Revaluation of other non-current investments iii) Revaluation of tenant leases held as inance leases iv) Revaluation of trading properties Diluted NAV at Fair Value 2,263,202 2,263,202 2,263,202 Exclude: v) Deferred tax in relation to fair value gains of IP - 500,129 - 500,129 vi) Fair value of inancial instruments - 34,066 - 34,066 vii) Goodwill as a result of deferred tax viii.a) Goodwill as per the IFRS balance sheet viii.b) Intangibles as per the IFRS balance sheet 2,418 Include: ix) Fair value of ixed interest rate debt -50,387 x) Revaluation of intangibles to fair value xi) Real estate transfer tax NAV 2,797,379 2,794,979 2,212,815 Fully diluted number of shares 336,000 336,000 336,000 NAV per share € 8.33 € 8.32 € 6.59 EPRA NAV Metrics 2020 EPRA YIELD METRICS 373 374 EPRA Performance Measure Definition 2021 2020 Elec-Abs Total amount of electricity consumed. It includes electric- ity from renewable and non-renewable sources, whether imported or generated on site. This accounts for CTP’s corporate oices. Of which from renewable sources: On-site solar energy generation: 289 MWh 248 MWh (85%) 5,592 MWh Of which from renewable sources: On-site solar energy generation: 147 MWh 2 7 MWh (4%) 5,893 MWh DH&C-Abs Total amount of indirect energy consumed from district heating or cooling systems. In this instance, ‘indirect’ means energy generated of-site and typically bought from an external energy supplier. CTP did not make use of District Heating & Cooling in 2020 or 2021 Fuels-Abs Total amount of fuel used from direct (renewable and non-renewable) sources (‘direct’ meaning that the fuel is combusted on-site). Natural Gas: 0% from renewables 270 MWh N/A GHG-Dir-Abs Total amount of direct greenhouse gas emissions gener- ated (‘direct’ meaning that GHG emissions are generated on site through combustion of the energy source/fuel). This calculation includes use of natural gas in oices, car fuel, as well as jet fuel. 2,345 Mt CO e 1,468 Mt CO e Water-Abs Total amount of water consumed within the corporate oices over the full reporting year. Municipal: 1,543 m 3, 4 N/A Waste-Abs The total amount of waste produced and disposed of. 38 Mt 5, 6 N/A Appendix DAppendices EPRA Sustainability Performance Measures EPRA Sustainability Performance Measures CTP Carbon Footprint Calculations of CTP’s Carbon Footprint were per- formed by SCS Global Services. The results are based on the data CTP provided for 2020 and 2021. CTP Carbon Capture This report describes the results of the evaluation of the forest management practices in CTP’s two forests in the Czech Republic to determine the car- bon sequestration for 2020 and 2021. Data was obtained directly from CTP which represents the forest inventory at the start of year 2020. Growth was then simulated using this data set as a starting point and the growth rates were averaged across a 10-year period. Local tree biomass equations were used whenever possible and the total carbon stocks represent the above and below ground portions of the tree (foliage, branches, stem, stump and roots) for live trees only. Results indicate that 43,872.26 Mg CO 2 e should be sequestered each year (over the next 10 years) by the forests owned by CTP Invest with the Mladá Boleslav Forest representing 16,670.48 Mg CO 2 e and the Zlín Forest, 27,201.78 Mg CO 2 e, provided that the management and growth conditions remain largely unaltered. Mg stands for Mega gram which is the equivalent of Metric ton. 1 The environmental numbers represent the 4 core countries, Czech Republic, Slovakia, Romania, and Hungary. 2 For 2020, we were not able to retrieve all data for Romania, therefore the number represented is lower than what we believe true. 3 Our indirect energy consumption has been offset by the solar energy production. 4 CTP’s offi ces only withdraw from “municipal” sources. 5 Data from our Romanian offi ces could not be collected. 6 We were unable to separate waste streams by disposal route. EPRA Sustainability Performance Measures - Environment 1 EPRA Performance Measure Definition 2021 2020 Gov-Board The composition of the highest governance body Number of executive members: 2 Number of executive members: 2 Number of non-executive members: 4 Number of non-executive members: 0 Average Tenure: 4 year Average Tenure: N/A EPRA Performance Measure Definition 2021 2020 Diversity-Emp The percentage of male and female employees in the organisation’s governance bodies and other signiicant employee categories. Board of Directors gender headcount: Female member: Male members: Headcount Total Organisation: Female employees: Male Employees: Headcount under 30: Female employees: Male Employees: Between 30-50: Female employees: Male Employees: 50 and over: Female employees: Male Employees: 33% 67% 271 (49%) 282 (51%) 76 (67%) 38 (33%) 167 (46%) 199 (54%) 28 (38%) 45 (62%) Board of Directors gender headcount: Female member: Male members: Employees: 0% 100% Approx. 50/50 Diversity-Pay Ratio of the basic salary and/or remuneration of women to men Total organisation: Under 30: 30-50: 50 and over: 67% 70% 78% 42% N/A Emp-Turnover The total number and rate of new employee hires and employee turnover. New Hires: Dismissals: Voluntary leave: Turnover Rate: 222 23 82 19% Turnover Rate: H&S-Emp The occupational health and safety performance with relation to our direct employees. Lost day rate: Work-related fatalities: 2,6% 0 N/A 1 The data for the social aspects covers 98% of the entire corporate organisation. 2 For this, CTP assumes that each employee works 230 days per year. 3 CTP went public. EPRA Sustainability Performance Measures – Social EPRA Sustainability Performance Measures - GOVERNANCE 1 375 LINK TO STRATEGY RISK OWNER MANAGEMENT & MITIGATION STRATEGIES LINK TO STRATEGY RISK OWNER MANAGEMENT & MITIGATION STRATEGIES 376 LEVEL 1: operational RISKS LEVEL 2: insurance RISKS LEVEL 1: STRATEGIC RISKS LEVEL 2: Business Model RISKS Appendix EAppendices Principal Risks Principal Risks Existing stable Cash Flow model - Future growth - ESG Executive Directors • Most of the Group's insurance policies do not contain an exclusion for Acts of God The recent global coronavirus pan- demic has led to signiicant volatility in inancial and other markets and could harm the Group’s business and results of operations. Pandemics / Acts of God Minimise APPETITE: Material IMPACT: Likely PROBABILITY: Future growth - ESG Executive Directors • The Group Strategy is being implemented over 22 years by a team of seasoned executives with exceptional track record • The Group Strategy is based on a successful formula that includes: • An Investment policy oriented to high-quality sustainable properties at strategic locations with growth potential • Development of new properties on its owned landbank • Continuous improvement and active management of its property portfolio • Disciplined approach to inancial management • Selective strategic expansion to new markets where it currently has no or limited presence The Group may not be able to successfully implement its key strategies. Strategy Execution Manage APPETITE: Moderate IMPACT: Very unlikely PROBABILITY: LEVEL 1: STRATEGIC RISKS LEVEL 2: Macro-economic RISKS Existing stable Cash Flow model - Future growth Executive Directors • The Group negotiates long lease terms • Portfolio diversiication across industries and single names • Contracts with parent company guarantees • Credit Quality of the tenant portfolio, compromising mainly large national and international companies • Excellent location of properties, near major cities and transport arteries • Constant monitoring of macroeconomic trends and developments in major industries across our geography • Use of independent research • The Group receives market intelligence from investment banks • Experienced local presence and an extensive network of market contacts, advisors and consultants The Group is exposed to macroeco- nomic conditions and business cycle risks that afect the markets in which the Group operates. Macro economic ManageAPPETITE: Material IMPACT: Very unlikely PROBABILITY: LINK TO STRATEGY RISK OWNER MANAGEMENT & MITIGATION STRATEGIES LINK TO STRATEGY RISK OWNER MANAGEMENT & MITIGATION STRATEGIES LINK TO STRATEGY RISK OWNER MANAGEMENT & MITIGATION STRATEGIES LINK TO STRATEGY RISK OWNER MANAGEMENT & MITIGATION STRATEGIES LEVEL 1: FINANCIal RISKS LEVEL 2: Market RISKS LEVEL 1: investment RISKS LEVEL 2: portfolio RISKS LEVEL 1: FINANCIal RISKS LEVEL 2: Market RISKS • The Group’s biggest cost is inancing which is largely ixed • Operational costs constitute less than 20% of cash income and are thus considered manageable even in times of prolonged high inlation • Since 2020 our new leases contain an indexation clause that takes the higher of (i) CPI or (ii) ixed-indexation • CAPEX increases are passed on to the tenants Existing stable Cash Flow model - Future growth CFO The Group’s business can be negatively afected by rising inlation, as the majority of the lease agreements the Group has entered into with its tenants contain a ixed adjustment of rent clause. Inflation MinimiseAPPETITE: ModerateIMPACT: Likely PROBABILITY: Existing stable Cash Flow model - Future growth CFO • Appointment of pre-eminent international valuation experts (as of 2021 Q3 the Group appointed Cushman & Wakeield) using standardised valuation methods (RICS Red Book) • Use of market studies, analyses and forecasts • Geographical diversiication of the portfolio across all major CEE markets, with close ties to western European markets • Signiicant landbank at strategic locations in proximity to the Group's investment properties complementing the existing network and supporting tenant demand • Investment strategy oriented to high-quality properties that generate stable, long-term income located at strategic locations with growth potential • Continuous maintenance and improvement of properties • Quality of the tenant portfolio, compromising mainly large national and international companies with low annual credit provisions The Group’s inancial statements may be afected by luctuation in the fair market value of its property portfolio as a result of revaluations or the Group may be unable to dispose of its properties proitably. The Group may hold excess land for future development which may not ultimately be beneicial to the Group. VALUATION ManageAPPETITE: MaterialIMPACT: Unlikely PROBABILITY: • Specialised in-house property development team and use of external consultants • Strict monitoring of construction sites • Use of well-established contractors with good solvency • Community engagement to maintain a constructive dialogue with local decision-makers • Projects are launched only if they are pre-let and fully inanced and the required permits have been obtained Future growth CEO The Group is exposed to the risk of cost overruns, delays or other diiculties in relation to its development activities. The Group is also dependent on the performance of third-party contractors or suppliers. DEVELOPMENT ManageAPPETITE: Signifi cantIMPACT: Possible PROBABILITY: 377 Remon LeonardɁVos StichtingɁ AdministratiekantoorɁ Multivest CTPInvest,spol.sr.o. Multivest B.V. CTP Holding B.V. CTP N.V. Personwith signiicantcontrol 100% 100% 100% 83.14% Czech Republic CTP Property Czech, spol. s r.o. 100% CTP X, spol. s r.o. 100% CTPark Brno Retail, spol. s r.o. 100% CTPark Brno III, spol. s r.o. 100% Multidisplay s.r.o. v likvidaci 100% CTPark Prague North II, spol. s r.o. 100% CTP XIII, spol. s r.o. 100% CTP XIV, spol. s r.o. 100% CTP Vlněna Business Park, spol. s r.o. 100% CTPark Plzeň, spol. s r.o. 100% CTP II, spol. s r.o. 100% CTPark Prague North III, spol. s r.o. 100% CTP III, spol. s r.o. 100% CTP V, spol. s r.o. 100% CTPark Stříbro, spol. s r.o. 100% CTP XV, spol. s r.o. 100% CTP XVI, spol. s r.o. 100% Serbia ➜ CTP Lambda doo Beograd 100% CTP XVIII, spol. s r.o. 100% CTPark Brno Líšeň II, spol. s r.o. 100% CTP Forest, spol. s r.o. 100% CTP Property Romania, spol. s r.o. v likvidaci 100% CTP Property Serbia, spol. s r.o. v likvidaci 100% Clubco, spol. s r.o. 100% CTP XXI, spol. s r.o. 100% ➜ PŘÍDANKY SPV, s.r.o. 100% CTP Barrandov, spol. s r.o. 100% CTP XXII, spol. s r.o. 100% CTPark Lysá nad Labem, spol. s r.o. 100% Czech Republic CTP Domeq Brno, spol. s r.o. 100% CTP IQ Ostrava, spol. s r.o. 100% CTP XII, spol. s r.o. 100% CTP XI, spol. s r.o. 100% CTP IV, spol. s r.o. 100% CTP VI, spol. s r.o. 100% Spielberk Business Park, spol. s r.o. 100% CTZone Ostrava, spol. s r.o. 100% CTP VII, spol. s r.o. 100% CTP VIII, spol. s r.o. 100% CTP XXIV, spol. s r.o. 100% CTP Hotel Pilsen, spol. s r.o. 100% ➜ CTP Hotel Operations Pilsen, spol. s r.o. 90%, 10% CTP Invest,spol. s r.o. CTP Hotel Prague, spol. s r.o. 100% ➜ CTP Hotel Operations Prague, spol. s r.o. 90%, 10% CTP Invest spol. s.r.o. Spielberk Business Park II, spol. s r.o. 100% ➜ CTP Hotel Operations Brno, spol. s r.o. 100% CTPersonnel Bor, spol. s r.o. v likvidaci 100% CTP CEE Properties, spol. s r.o. 100% CTP Beta, spol. s r.o. v likvidaci 100% Austria CTP Beta GmbH 100% CTP Invest Immobilien GmbH 100% CTP Alpha GmbH 100% CTP Gamma GmbH 100% CTP Delta GmbH 100% CTP Epsilon GmbH 100% CTP Zeta GmbH 100% Bulgaria CTP Invest EOOD 100% CTPark Beta EOOD 100% CTPark Gamma EOOD 100% CTPark Delta EOOD 100% CTPark Epsilon EOOD 100% ➜ Project Vrajdebna EOOD 100% CTPark Zeta EOOD 100% ➜ CTPark Kappa EOOD 100% CTPark Eta EOOD 100% ➜ CTPark Lambda EOOD 100% CTPark Theta EOOD 100% CTPark Iota EOOD 100% France CTP France 100% CTP Alpha France 100% CTP Beta France 100% United Kingdom CTP Invest Ltd 100% CTP Alpha Ltd 100% CTP Beta Ltd 100% Germany CTP Germany GmbH 100% ➜ CTP Germany V GmbH 90%, 10% CTP Invest, spol. s r.o. ➜ CTP Germany VI GmbH 90%, 10% CTP Invest, spol. s r.o. CTP Invest Germany GmbH 100% CTP Germany VII GmbH 100% CTP Germany VIII GmbH 100% CTP Germany IX GmbH 100% CTP Germany X GmbH 100% Hungary CTP Management Hungary Kft. 100% CTPark Eleven Kft. 100% CTPark Twelve Kft. 100% CTPark Thirteen Kft. 100% CTPark Fourteen Kft. 100% ➜ Offi ce Campus Real Estate Kft. 100% CTPark Fifteen Kft. 100% CTPark Sixteen Kft. 100% CTPark Seventeen Kft. 100% CTP Solar Hungary Kft. 100% CTPark Eighteen Kft. 100% ➜ CTPark Twenty Three Kft. 100% ➜ CTPark Twenty Four Kft. 100% ➜ CTPark Twenty Five Kft. 100% ➜ CTPark Twenty Six Kft. 100% ➜ CTPark Twenty Seven Kft. 100% CTPark Nineteen Kft. 100% CTPark Twenty Kft. 100% CTPark Twenty One Kft. 100% CTPark Twenty Two Kft. 100% Italy CTP Italy S.r.l. 100% CTP Alpha S.r.l. 100% CTP Beta S.r.l. 100% Netherlands Multifi n B.V. 100% Czech Republic ➜ CTP I, spol. s r.o. v likvidaci 100% ➜ CTP Solar, a.s. v likvidaci 100% Germany ➜ CTP Germany II GmbH 100% ➜ CTP Germany IV GmbH & Co. KG 100% ➜ CTP Germany III GmbH 100% Netherlands CTP Baltic Holding B.V. 100% Latvia ➜ Samesova SIA 100% ➜ Vojtova SIA 100% ➜ Zemankova SIA 100% Lithuania ➜ UAB Samesova 100% ➜ UAB Vojtova 100% ➜ UAB Zemankova 100% Estonia ➜ Samesova OŰ 100% ➜ Vojtova OŰ 100% ➜ Zemankova OŰ 100% CTP Turkish Holding B.V. 100% Turkey ➜ CTP ALPHA GAYRİMENKUL VE İNŞAAT LİMİTED ŞİRKETİ, 100% ➜ CTP BETA GAYRİMENKUL VE İNŞAAT LİMİTED ŞİRKETİ, 100% ➜ CTP GAMMA GAYRİMENKUL VE İNŞAAT LİMİTED ŞİRKETİ 100% CTP Mediterranean Holding B.V. 100% Egypt ➜ CTP Real Estate 90%, 10% CTP Baltic Holding B.V. ➜ CTP Real Estate Development 90%, 10% CTP Baltic Holding B.V. ➜ CTP Invest 90%, 10% CTP Baltic Holding B.V. Netherlands CTP Invest B.V. 100% CTP Alpha B.V. 100% CTP Beta B.V. 100% CTP Gamma B.V. 100% CTP Delta B.V. 90.1% CTP Epsilon B.V. 100% CTP Theta B.V. 100% CTP Eta B.V. 100% CTP Zeta B.V. 100% Netherlands CTP Iota B.V. 100% CTP Kappa B.V. 100% CTP Lambda B.V. 100% CTP ALC B.V. 100% CTP Mu B.V. 100% Poland CTP Invest Poland Sp. z o.o. 100% CTPark Opole Sp. z o.o. 100% CTP Eta Poland Sp. z o.o. 100% CTP Theta Poland Sp. z o.o. 100% CTPark Iłowa Sp. z o.o. 100% CTPark Zabrze Sp. z o.o. 100% CTP Beta Poland Sp. z o.o. 100% CTP Delta Poland Sp. z o.o. 100% CTP Gamma Poland Sp. z o.o. 100% CTP Zeta Poland Sp. z o.o. 100% CTP Epsilon Poland Sp. z o.o. 100% CTP Iota Poland Sp. z o.o. 100% CTP Kappa Poland Sp. z o.o. 100% CTP Lambda Poland Sp. z o.o. 100% CTP Mu Poland Sp. z o.o. 100% CTP Nu Poland Sp. z o.o. 100% CTP Xi Poland Sp. z o.o. 100% CTP Omicron Poland Sp. z o.o. 100% CTP Sigma Poland Sp. z o.o. 100% CTP Pi Poland Sp. z o.o. 100% CTP Rho Poland Sp. z o.o. 100% CTP Company Structure Appendices Appendix F 378 CTPPropertyB.V. 100% Romania CTP INVEST BUCHAREST SRL 98.94%, 1.06% Spielberk Business Park,spol. s r.o. ➜ Universal Management SRL 100% ➜ CTPARK MANAGEMENT TURDA SRL 100% ➜ CTPARK MANAGEMENT AFUMATI SRL, 100% CTPARK THETA SRL 100% CTPARK PSI SRL 100% CTPARK ZETA SRL 100% CTPARK EPSILON SRL 100% CTPARK IOTA SRL 100% CTPARK MIU SRL 100% CTPARK OMICRON SRL 100% CTPARK RHO SRL 90%, 10% CTP Property Czech, spol. s r.o. CTPARK KM23 NORTH SRL 100% FOREST PROPERTY INVEST SRL 100% CTP SOLAR SRL 100% CTPARK ARAD NORTH SRL 100% CTPARK SIBIU EAST SRL 100% CTPARK CRAIOVA EAST SRL 100% CTPARK ORADEA NORTH SRL 100% CTPARK TIMISOARA EAST SRL 100% CTPARK BRASOV SRL 100% CTPARK BRASOV WEST SRL 100% CTPARK BUCHAREST SOUTH II SRL 100% Serbia CTP Invest doo Beograd‐Novi Beograd 100% CTP Zeta doo Beograd‐Novi Beograd, 100% ➜ CTP Property Alpha d.o.o. Beograd‐Novi Beograd, 100% CTP Iota doo Beograd‐Novi Beograd, 100% CTP Sigma doo Beograd‐Novi Beograd 100% CTP Omicron doo Beograd‐Novi Beograd 100% CTP Phi doo Beograd‐Novi Beograd 100% CTP Rho doo Beograd‐Novi Beograd 100% CTP Tau doo Beograd‐Novi Beograd 100% Slovakia CTP Invest SK, spol. s r.o. 90%, 10% CTP Property Czech, spol. s r.o. CTPark Čierny Les, spol. s r.o. * 85%, 15% CTP Property Czech, spol. s r.o. CTPark Prešov s.r.o. 90%, 10% CTP Property Czech, spol. s r.o. CTP Gama s. r. o. 90%, 10% CTP Property Czech, spol. s r.o. CTPark Trnava II, spol. s r.o. 90%, 10% CTP Property Czech, spol. s r.o. CTP Dunaj s.r.o. 90%, 10% CTP Property Czech, spol. s r.o. CTPark Žilina Airport II, spol. s r.o. 90%, 10% CTP Property Czech, spol. s r.o. CTPark Bratislava East, spol. s r.o. 90%, 10% CTP Property Czech, spol. s r.o. CTP Solar SK, spol. s r.o. 90%, 10% CTP Property Czech, spol. s r.o. CTPark Banská Bystrica, spol. s r.o. 90%, 10% CTP Property Czech, spol. s r.o. CTPark Land SK I, spol. s r.o. 90%, 10% CTP Property Czech, spol. s r.o. CTPark Land SK II, spol. s r.o. 90%, 10% CTP Property Czech, spol. s r.o. CTPark Námestovo spol. s r.o. 90%, 10% CTP Property Czech, spol. s r.o. Slovenia CTP Ljubljana, d.o.o. 100% CTPark Alpha, d.o.o. 100% Spain Global Guanaco, S.L.U. 100% Romania CTP CONTRACTORS SRL 100% CTPARK ALPHA SRL 100% CTPARK BETA SRL 100% CTPARK GAMMA SRL 100% CTPARK DELTA SRL 100% CTPARK BUCHAREST SRL 100% CTPARK BUCHAREST WEST I SRL 100% CTPARK DEVA II SRL 100% CTPARK BUCHAREST WEST II SRL 100% CTPARK KAPPA SRL 100% CTPARK BUCHAREST II SRL 100% CTPARK LAMBDA SRL 100% CTPARK OMEGA SRL 100% CTPARK PHI SRL 100% CTPARK SIGMA SRL 100% CTPARK TAU SRL 100% CTPARK ETA SRL 100% CTPARK BUCHAREST A1 SRL 100% CTPARK BUCHAREST UPSILON SRL 100% Netherland CTP Portfolio Finance Czech B.V. 100% Czech Republic ➜ CTPark Bor, spol. s r.o. 100% ➜ CTPark Modřice, spol. s r.o. 100% Czech Republic CTPark Aš II, spol. s r.o. 100% CTP CEE Sub Holding, spol. s r.o. 100% CTPark Česká Velenice, spol. s r.o. 100% Czech Republic CTP Portfolio Finance CZ, spol. s r.o. 100% ➜ CTP Industrial Property CZ, spol. s r.o. 100% ➜ CTPark Prague West, spol. s r.o. 100% ➜ CTPark Brno Líšeň East, spol. s r.o. 100% ➜ CTP XVII, spol. s r.o. 100% ➜ CTP Borská Pole, spol. s r.o.. 100% ➜ CTP Vysočina, spol. s r.o. 100% ➜ CTPark Brno I, spol. s r.o. 100% ➜ CTPark Ostrava, spol. s r.o. 100% ➜ CTP Moravia South, spol. s r.o. 100% ➜ CTPark Mladá Boleslav, spol. s r.o. 100% ➜ CTP Bohemia North, spol. s r.o. 100% ➜ RENWON a. s. 100% ➜ CTPark Brno Líšeň West, spol. s r.o. 100% ➜ CTP Moravia North, spol. s r.o. 100% ➜ CTP Pilsen Region, spol. s r.o. 100% ➜ CTP Bohemia West, spol. s r.o. 100% ➜ CTPark Ostrava Poruba, spol. s r.o. 100% ➜ CTPark Hranice, spol. s r.o. 100% ➜ CTP XXIII, spol. s r.o. 100% ➜ CTPark Prague Airport, spol. s r.o. 100% ➜ CTPark Prague East, spol. s r.o. 100% ➜ CTP Ponávka Business Park, spol. s r.o., 100% ➜ CTP Solar I, a.s. 100% ➜ CTPark Brno II, spol. s r.o. 100% ➜ CTP Bohemia South, spol. s r.o. 100% ➜ CTP Alpha, spol. s r.o. 100% ➜ CTP Solar II, a.s. 100% ➜ CTP Solar III, spol. s r.o. 100% Hungary CTPark Alpha Kft. 100% CTPark Beta Kft. 100% CTPark Gamma Kft. 100% CTPark Delta Kft. 100% CTPark Biatorbágy Kft. 100% Hungary CTPark Arrabona Kft. 100% CTPark Seven Kft. 100% CTPark Eight Kft. 100% CTPark Ten Kft. 100% CTPark Nine Kft. 100% Serbia CTP Alpha doo Beograd‐Novi Beograd 100% CTP Beta doo Beograd‐Novi Beograd 100% CTP Gamma doo Beograd‐Novi Beograd 100% CTP Delta doo Beograd‐Novi Beograd 100% CTP Epsilon doo Beograd‐Novi Beograd 100% ➜ CTP Omega d.o.o. Beograd‐Novi Beograd 100% CTP Kappa doo Beograd‐Novi Beograd 100% Slovakia CTP Alpha SK, spol. s r.o. 90%, 10% CTP CEE Sub Holding, spol. s r.o. CTPark Krásno nad Kysucou, spol. s r.o. 90%, 10% CTP CEE Sub Holding, spol. s r.o. CTP Slovakia, s. r. o. 90%, 10% CTP CEE Sub Holding, spol. s r.o. CTPark Bratislava, spol. s r.o. 90%, 10% CTP CEE Sub Holding, spol. s r.o. CTPark Hlohovec, spol. s r.o. 90%, 10% CTP CEE Sub Holding, spol. s r.o. CTPark Nitra, spol. s r.o. 90%, 10% CTP CEE Sub Holding, spol. s r.o. CTPark Nove Mesto, spol. s.r.o. 90%, 10% CTP CEE Sub Holding, spol. s r.o. CTPark Košice, spol. s r.o. 90%, 10% CTP CEE Sub Holding, spol. s r.o. CTPark Žilina Airport, spol. s r.o. 90%, 10% CTP CEE Sub Holding, spol. s r.o. 379 380 Glossary of Terms Annualised Rental Income Rent roll as per the end of period, including service charge income (Base rent plus other rental income plus extras for above standard technical improvement plus services minus rent frees) Audit Committee Audit committee of the Board Average Cost of Debt The total of bank interest expense, interest expense from fi nancial derivatives and interest expense from bonds issued for the reporting period divided by the average total balance of interest-bearing loans and borrowings from fi nancial institutions and bonds issued for that same period Board (of Directors) The Board of Directors the Company BREEAM Building research establishment environmental assessment method Business The Company’s business and the business of its affi liates BW Dutch Civil Code (Burgerlijk Wetboek) CAGR Compound annual growth rate CEE The Central and Eastern Europe region CEO Chief executive offi cer of the Company CFO Chief fi nancial offi cer of the Company Collection Rate The scheduled payments received under lease agreements not later than 15 days after due date, as a percentage of billings including rent, service charges, extra’s and tenant direct re-charges Company CTP N.V. Company specifi c Adjusted Earnings EPRA Earnings adjusted for the after (deferred) tax effect from the adjustment for rental income for sold portfolio, impairment/depreciation on hotel portfolio and acquisitions, foreign exchange gains/losses related to company restructuring and associated costs with establishment capital market structure Company specifi c Adjusted Earnings per Share Company specifi c Adjusted Earnings based upon the number of shares as of end of period Core Markets Czech Republic, Hungary, Romania, Slovakia COVID-19 Strain of a coronavirus disease SARS-CoV-2 CTP Invest CTP Invest, spol. s.r.o. DEKA DEKA Immobilien Investment GmbH DIP A deferred incentive plan, which provides a mechanism for the deferral of part of a participant’s incentive into a DIP Award DIP Award A deferred award of cash and/or a deferred award of Shares Director A member of the Board EBITDA Profi t or loss for the period attributable to parent excluding Income tax expenses, interest income, interest expense and depreciation and amortisation EMTN Programme EUR 4,000,000,000 Euro Medium Term Note Programme established by the Company in September 2020. Morgan Stanley & Co. International plc acted as arranger, Erste Group Bank AG, J.P. Morgan Securities plc, Morgan Stanley & Co. International plc, Raiffeisen Bank International AG, Société Générale and UniCredit Bank AG as dealers, Citicorp Trustee Company Limited as trustee, Citibank, N.A., London Branch as principal paying agent and transfer agent and Citigroup Global Markets Europe AG as registrar EPRA Earnings per Share EPRA Earnings based upon the weighted average number of shares as of end of period EPRA Net Initial Yield Annualised rental income based upon the cash passing rent at balance sheet date less non recoverable property operating expenses divided by the market value of income generating investment property EPRA NTA or EPRA Net Tangible Assets Total equity attributable to owners of the Company excluding deferred tax in relation to net valuation result of investment property and investment property under development with intention to hold and not sell in the long run, excluding Fair value of fi nancial instruments and excluding of goodwill as a result of deferred tax EPRA Topped-up Net Initial Yield Annualised rental income based upon the cash passing rent at balance sheet date less non recoverable property operating expenses adjusted notional rent expiration of for rent free periods and other lease incentives divided by the market value of income generating investment property ERM Enterprise Risk Management, an integrated risk-based system of functions, processes and methodologies of identifying and addressing methodically the potential events that represent risks to the achievement of strategic objectives, or to opportunities to gain competitive advantage ERP Enterprise Resource Planning, a business process management software that manages and integrates a company’s fi nancials, supply chain, operations, commerce, reporting, manufacturing, and human resource activities ESG Environmental, Social, and Corporate Governance; an evaluation of a fi rm’s collective conscientiousness for social and environmental factors EUR or euro or € The lawful currency of the European Economic and Monetary Union Euronext Amsterdam Euronext in Amsterdam, a regulated market of Euronext Amsterdam N.V. Executive Committee Executive Committee of the Company constituted of The Executive Directors and other certain appointed key offi cers Executive Directors Executive Directors of the Company Expansion Markets Bulgaria, Poland and Serbia Financial Statements Audited 2021 fi nancial statements of CTP N.V. prepared in accordance with International Financial Reporting Standards as adopted by the European Union (EU- IFRS). The fi nancial statements include the consolidated fi nancial statements and the company fi nancial statements. Founder Mr. Remon Vos FTEs Full time equivalent personnel GAV The gross asset value calculated as the aggregate of investment property, investment property under development and property, plant and equipment as presented in the fi nancial statements in accordance with IFRS GDP Gross domestic product General Meeting General meeting of the Company, being the corporate body, or where the context so requires, the physical meeting of Shareholders GLA Gross lettable area Green Bond Framework The Group’s framework developed according to the Green Bond Principles 2018, administrated by the International Capital Market Association Gross Rental Income Rental income and service charge income for the relevant period Gross Yield Percentage of annual rental income not refl ecting any expenses (i.e. property operating expenses, maintenance costs, stamp duty) divided by market value of investment property Appendices Appendix G Glossary of Terms Group The Company and all entities included in the group (groep, within the meaning of article 2:24b BW) headed by it Group Companies The Company’s subsidiaries within the meaning of article 2:24b BW IAS International Accounting Standards ICR The ratio of the Group’s total interest expense to Adjusted EBITDA IFRS The International Financial Reporting Standards as adopted by the European Union Indebtedness Interest-bearing loans and borrowings from fi nancial institutions ISIN International securities identifi cation number KPMG KPMG Accountants N.V. Leasing Activity Sum of new contracts or amendments for either newly leased or prolonged premises in given period. Like-for-Like Rental Income Growth Organic growth of the contracted rental income year- on-year, excluding development projects, acquisitions, vacancy movement and disposals during both periods of the comparison LTIP Long-term incentive plan LTIP Awards Awards of shares granted by Non-Executive Directors or Executive Directors as appropriate NET Debt Aggregate amount of interest- bearing loans and borrowings from fi nancial institutions plus bonds issued after deduction of cash and cash equivalents Net LTV Net loan-to-value ratio, which is the aggregate amount of interest-bearing loans and borrowings from fi nancial institutions plus bonds issued after deduction of cash and cash equivalents as a percentage of GAV New Markets Austria, Germany, the Netherlands Nomination and Remuneration Committee Nomination and remuneration committee of the Board Non-Executive Directors Director of the Company appointed as non-executive director NRI Margin Net Rental Income Margin is the rental income plus service charge income minus property operating expenses, divided by the total rental income Occupancy Rate Proportion of the aggregate GLA of the properties (whether or not capable of being let) which is subject to tenancies at that point in time. For the avoidance of doubt, the aggregate GLA includes areas designated as structurally vacant or under refurbishment. Any development to create new lettable area at any property shall only be included when the relevant space or development is complete and available to generate income Option Contracts Signed purchase contracts or future purchase contracts of intent in respect of the purchase of further 3.8 million square meters of land mainly in the CEE region between the Group and potential sellers Prospectus IPO prospectus dated 17 March 2021 PV Photovoltaic SID Senior Independent Director Remuneration Policy The remuneration policy of the Company which will be effective as of the Settlement Date Retention Rate The part of total rental income that expires in one year and is prolonged with existing clients, as part of the total rental income of leases which expire in the same year. TEN-T Trans-European Transport Network aims to include the most important connections, linking its most important nodes Valuation Report The condensed valuation report included in this Prospectus prepared, at the Company’s request, by JLL issued on 26 February 2021 which provides a market valuation of 400 standing assets, 35 development properties and 89 land sites of the Group located in the Czech Republic, Romania, Hungary, Slovakia, Serbia, Poland, Bulgaria, Slovenia and Austria as of 31 December 2020 Valuation Yield Annualised rental income as a percentage of investment property owned by the Group, excluding the value of the Group’s land bank VaR Value at Risk, a statistic that quantifi es the extent of possible fi nancial losses over a specifi c time frame WAULT Weighted average unexpired lease term Yield-on-Cost Average contracted rental value divided by development cost including land and excluding fi nancing, marketing, rent free periods and project management costs restricted to assets under development as at 31/12/2021, unless otherwise stated. 381 382 Forward-looking Statements To the extent that this annual report contains for- ward-looking statements, such statements do not represent facts and are characterised by the words “expect”, “believe”, “estimate”, “intend”, “aim”, “as- sume” or similar expressions. The forward-looking statements contained herein speak only as of the date they are made and CTP does not assume any obligation to update such statements, except as re- quired by law. Forward-looking statements express the intentions, opinions or current expectations and assumptions of CTP and the persons acting in con- junction with CTP, for example with regard to the the Outlook section of the “CEO and CFO letter”, or the Outlook and Priorities for 2022 section in the “2021 in Review.” Such forward-looking statements are based on current plans, estimates and forecasts which CTP and the persons acting in conjunction with CTP have made to the best of their knowledge, but which may not be correct in the future. Forward-looking statements are subject to risks and uncertainties that are diicult to predict and usually cannot be inluenced by CTP or the persons acting in conjunc- tion with CTP. Please see in this respect chapter Risk Management. It should be kept in mind that the actual events or consequences may difer materi- ally from those contained in or expressed by such forward-looking statements. Market Data Statements regarding market share, market data, industry statistics and industry forecasts, con- tained in this annual report are based on publicly available sources such as research institutes and analyst coverage in combination with CTP’s own management estimates. Disclaimer Appendices Appendix H Disclaimer CTP CTPark Humpolec 1571 396 01 Humpolec Czech Republic +420 565 535 565 CTP CZECH REPUBLIC CTP Invest spol. s r.o. Národní 135/14 110 00 Prague 1 Czech Republic +420 220 511 444 CTP ROMANIA CTP Invest Bucharest SRL Dragomiresti Deal Commune Plot 76-78, Building B, Ground Floor, Oice no.2 Ilfov County 077096 Romania +40 756 150 103 CTP POLAND CTP Invest Poland Sp. z o.o. Al. Korfantego 2 (9th l.) 40-004 Katowice Poland +48 666 387 585 CTP SLOVAKIA CTP Invest SK, spol. s r.o. Laurinská 18 811 01 Bratislava Slovakia +421 904 174 157 CTP AUSTRIA CTP Invest Immobilien GmbH Kärntner Straße 27 1010 Vienna Austria Colophon CTP Regional Offices CTP SERBIA CTP Invest doo Starine Novaka 23 11000 Belgrade Serbia +381 66 8772 860 CTP HUNGARY CTP Management Hungary Kft, Verebély László utca 2., 2051 Biatorbágy Hungary +36 30 579 70 11 CTP BULGARIA Shipka Street 6 Betahaus Oices, 3rd loor 1504 Soia Bulgaria +381 66 877 28 60 CTP NETHERLANDS CTP Invest BV Apollolaan 151 1077 AR Amsterdam The Netherlands +31 85 27 31 294 Follow Us linkedin.com/company/CTP-invest twitter.com/CTPInvest facebook.com/CTPInvest instagram.com/CTP_Invest youtube.com/CTPeu #byctp ctp.eu CTP Yearbook 2021 Prepared by CTP Content CTP Graphic design Simon Gray Photography Goran Tačevski, Kryštof Antůšek , Vlad Dumea, Konstantin Mitič, Tomáš Mertlík, Chris Schotanus, Oldřich Hrb, Michaela Antůšková, Mart Stevens, Tomáš Schiller CTP Archive Print production KFG, s.r.o. Published by CTP, March 2021 MIX — Paper from responsible sources, FSC®-C100605. Printed in the Czech Republic on paper certiied by the Forest Stewardship Council® as derived from responsibly managed forests and other controlled sources. CTPN.V. Apollolaan 151 1077 AR Amsterdam The Netherlands T +31 85 27 31 294 ctp.eu
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.