Globe Trade Centre S.A. (the “Company”, „GTC S.A.” or “GTC”) with its subsidiaries (“GTC

Group” or “the Group”) is an international real estate developer and investor. The Company

Warsaw (Poland) at Komitetu Obrony Robotników 45a. The Company owns, through its

GTC is primarily listed on the Warsaw Stock Exchange and inward listed on Johannesburg

Stock Exchange.

As of 31 December 2021, the majority shareholder of the Company is GTC Holding Zrt.,

which holds directly and indirectly 320,466,380 shares of GTC S.A., entitling to 320,466,380

votes in the Company, representing 66% of the share capital of GTC S.A. and carrying the

right to 66% of the total number of votes in GTC S.A. GTC Holding Zrt. holds directly

21,891,289 shares of the Company, entitling to 21,891,289 votes in GTC S.A., representing

4.51% of the share capital of the Issuer and carrying the right to 4.51% of the total number

of votes in GTC S.A. and indirectly (i.e. through GTC Dutch Holdings B.V.) holds

298,575,091 shares in the Company, entitling to 298,575,091 votes GTC S.A., representing

included in the consolidated financial statements by a translation into Euro using appropriate

exchange rates outlined in IAS 21 The Effects of Changes in Foreign Exchange Rates.

Assets and liabilities are translated at the period end exchange rate, while income and

expenses are translated at average exchange rates for the period. All resulting exchange

differences are classified in equity as “Foreign currency translation reserve” without affecting

earnings for the period.

The Company maintains its books of account in accordance with accounting principles and

practices employed by enterprises in Poland as required by the Polish accounting

regulations. The companies outside Poland maintain their books of account in accordance

with local GAAP. The consolidated financial statements include a number of adjustments

These consolidated financial statements have been prepared in accordance with

At the date of authorisation of these consolidated financial statements, taking into account

the EU IFRS's ongoing process of IFRS endorsement and the nature of the Group's

requirements through the generation of operating cash-flows from rental income. Further

As of 31 December 2021, the Group’s net working capital (defined as current assets less

of particular subsidiaries and believes that there are not risks for paying current financial

liabilities and cash on hand, as well as, expected operating cash-flows will be sufficient to

the next twelve months from the balance sheet date. Consequently, the consolidated

financial statements have been prepared on the assumption that the Group companies will

continue as a going concern in the foreseeable future, for at least twelve months from the

balance sheet date.

cash flow budget assumptions, the management concluded that there is no material

investment property to its fair value. If as of the date of revaluation, the carrying value is

higher than the fair value, the costs are recognized in the income statement.

Non-current assets and their disposal groups are classified as held for sale if their carrying

amount will be recovered principally through a sale transaction rather than through

continuing use. This requirement can be fulfilled only if the occurrence of a sale transaction

is highly probable and the item of assets is available for immediate sale in its present

condition. The classification of an asset as held for sale assumes the intent of the entity’s

management to realise the transaction of sale within one year from the moment of asset

classification to the held for sale category. Non-current assets held for sale are measured

term on a straight-line basis (according to IFRS 16 Leases).

Interest income is recognised on an accrual basis using the effective interest method that

is the rate that exactly discounts estimated future cash flows through the expected life

of financial instruments to the net carrying amount of the underlying financial asset or

liability.

established.

area and rates agreed in the contract.

Service charge revenue is recognised under IFRS 15 when control of the goods or services

are transferred to the customer at an amount that reflects the consideration to which the

Group expects to be entitled in exchange for those goods or services.

Group recognizes two kinds of performance obligations in the Group:

invoices for electricity are billed through GTC entities and addressed to the tenants

directly. The Group recognizes cost and corresponding income at the same amount.

For financial statement purposes such income and expenses are disclosed on a net

disclosed on a gross basis, as GTC acts as a principal.

capitalised as part of the cost of the asset. All other borrowing costs are expensed in the

period in which they occur. Borrowing costs consist of interest and other costs that an entity

incurs in connection with the borrowing of funds.

The interest capitalised is calculated using the Group’s weighted average cost

of borrowings after adjusting for borrowings associated with specific developments. Where

borrowings are associated with specific developments, the amount capitalised is the gross

interest incurred on those borrowings less any investment income arising on their

temporary investment. Interest is capitalised from the commencement of the development

work until the date of practical completion, i.e., when substantially all of the development

The current provision for corporate income tax for the Group companies is calculated

in accordance with tax regulations ruling in particular country of operations and is based on

the profit or loss reported under relevant tax regulations.

Deferred tax liabilities are recognised for all taxable temporary differences, except:

the transaction, affects neither the accounting profit nor taxable profit or loss,

• in respect of taxable temporary differences associated with investments in subsidiaries,

associates, and interests in joint ventures, where the timing of the reversal of the

temporary differences can be controlled and it is probable that the temporary

differences will not reverse in the foreseeable future.

Deferred tax assets are recognised for all deductible temporary differences, carry forward

combination and, at the time of the transaction, affects neither the accounting profit nor

taxable profit or loss,

• in respect of deductible temporary differences associated with investments in

subsidiaries, associates, and interests in joint ventures, deferred tax assets are

recognised only to the extent that it is probable that the temporary differences will

reverse in the foreseeable future and taxable profit will be available against which the

The measurement of deferred tax liabilities and deferred tax assets reflects the tax

liabilities.

At each reporting date, the Group companies re-assess unrecognised deferred tax assets

and the carrying amount of deferred tax assets. The companies recognise a previously

unrecognised deferred tax asset to the extent that it has become probable that future

taxable profit will allow the deferred tax asset to be recovered.

The companies conversely reduce the carrying amount of a deferred tax asset to the extent

that it is no longer probable that sufficient taxable profit will be available to allow the benefit

of part or all of the deferred tax asset that might be utilised.

Deferred tax relating to items recognised outside profit and loss is also recognized outside

profit and loss: under other comprehensive income if relates to items recognised under

other comprehensive income, or under equity – if relates to items recognized in equity.

Deferred tax assets and deferred tax liabilities are offset if, and only if, a legally enforceable

right exists to set off current tax assets against current tax liabilities, and the deferred tax

authority.

part of the cost of acquisition of the asset or as part of the expense item, as applicable

• receivables and payables, which are stated with the amount of value added tax

included.

If the Group ascertains that it is not probable that the tax authorities will accept an uncertain

tax treatment or a group of uncertain tax treatments, the Group reflects the impact of this

prevailing at the date of the transaction. Monetary assets and liabilities denominated in

foreign currencies are revalued at period-end using period-end exchange rates. Foreign

currency translation differences are charged to the income statement. The following

exchange rates were used for valuation purposes in cases where a certain lease

is denominated in local currency.

transaction costs associated with the borrowing.

Debt issuance expenses are deducted from the amount of debt originally recognised. These

costs are amortised through the income statement over the estimated duration of the loan,

except to the extent that they are directly attributable to construction. Debt issuance

expenses represent an adjustment to effective interest rates.

A financial instrument is any contract that gives rise to a financial asset of one entity and

a financial liability or equity instrument of another entity.

Financial assets are classified, at initial recognition, as subsequently measured at

amortised cost, fair value through other comprehensive income (“OCI”), and fair value

through profit or loss.

contractual cash flow characteristics and the Group’s business model for managing them.

With the exception of trade receivables that do not contain a significant financing

component or for which the Group has applied the practical expedient, the Group initially

established by regulation or convention in the market place (regular way trades) are

asset.

For purposes of subsequent measurement, financial assets are classified in four

categories:

• Financial assets at amortised cost (debt instruments);

• Financial assets at fair value through OCI with the recycling of cumulative gains and

losses (debt instruments);

• Financial assets designated at fair value through OCI with no recycling of cumulative

• Financial assets at fair value through profit or loss.

• The financial asset is held within a business model with the objective to hold

financial assets in order to collect contractual cash flows and

The Group’s financial assets at amortised cost include trade receivables, loans to associate