GTC - Globe Trade Centre S.A. — Earnings Release 2020

Jul 15, 2020

Subject: Events with a potential impact on GTC`s consolidated financialstatements for the six-month period ended 30 June 2020

The management board of Globe Trade Centre S.A. ("GTC", the "Company")informs that based on preliminary discussions with the valuation expertcommissioned to value the real estate portfolio of the GTC group, itexpects that the financial results of GTC will be adversely affected andGTC will report a consolidated net loss for the six months ended 30 June2020 due to (i) the expected drop in valuation of the properties; and(ii) the establishment of a support scheme and multi-pronged measures tosupport tenants.

The valuation of the investment property portfolio

Since the outbreak of the coronavirus disease (COVID-19), localgovernments in each country where GTC operates have implemented avariety of contingency measures. Consumer behaviour and retail saleshave been adversely impacted and may remain challenging in the near termuntil the spread of COVID-19 is effectively contained.

Due to the uncertainty regarding future operating performance as aconsequence of COVID-19 and the dampened economic and operatingenvironment in Central and Eastern Europe (CEE), it is expected that theappraised value of our investment properties as at 30 June 2020 willdecrease when compared to that as at 31 March 2020. Based on thepreliminary assessment by the valuation expert commissioned to value GTCgroup's real property portfolio, the decrease in the value of ourinvestment properties is expected to amount to EUR 62 million as at 30June 2020, a decline of 2.7% when compared to the appraised value of EUR2,255 million as at 31 March 2020. The decline is primarily attributedto the retail activity of the Company, and in particular to GaleriaPolnocna (situated in Warsaw, Poland) and Ada Mall (situated inBelgrade, Serbia). As a result of the decline in book value, the loansrelated to the above-mentioned retail properties are expected to nolonger comply with certain financial covenants included in therespective loan agreements as of 30 June 2020:

• With respect to a EUR 188.7 million loan from Bank Pekao SA granted toa subsidiary of GTC operating the Galeria Północna project, the LtV(loan-to-value) and DSCR (debt service coverage ratio) covenants werenot met as of 30 June 2020. Accordingly, the loan will need to bereclassified as a current liability due to the non-compliance with therespective loan covenants. In parallel, the Company has initiatednegotiations with the financing bank in order to obtain a waiver inrespect to such covenants or to reach a common understanding to relaxthe present financial covenants.

• With respect to a EUR 60.8 million loan from Banka Intesa ad Beograd,Vseobecna Uverova Banka a.s. and Privredna Banka Zagreb d.d. granted toa subsidiary of GTC operating the Ada Mall project, the DSCR covenantwhich would not have been met was waived by the banks as of 30 June 2020until the end of June 2021.

• With respect to a EUR 128.8 million loan from Erste Group Bank AG andRaiffeisenlandesbank Niederosterreich-Wien AG granted to a subsidiary(Galeria Jurajska), the DSCR covenant was waived as of 30 June 2020until the end of June 2021.

The Company maintains a strong cash position which enables to becompliant with the debt-service payments obligations.

Establishment of a support scheme and multi-pronged measures to supporttenants

GTC group has implemented multi-pronged measures to support tenants andencourage consumer spending, such as reducing rent, allowing rentpayment in instalments, waiving late payment interest and servicecharges. Depending on the extent and length of the COVID-19 pandemic,the GTC group may have to extend further assistance to its tenantsacross the portfolio.

GTC will continue to monitor and protect its financial and liquiditypositions, both of which remain healthy as of the date of this report,and undertake mitigating steps to reduce the impact of the adversemarket situation.

The information contained in this current report is based only upon thepreliminary assessment made by the management board of GTC withreference to the information currently available, which has neither beenreviewed nor audited by GTC's auditors. GTC's consolidated results forthe six months ended 30 June 2020 are expected to be published on 20August 2020.