Legal basis: Art. 17 para. 1 of the Market Abuse Regulation - confidential information
With reference to the publication of the consolidated quarterly report for Q1 2017 planned for 16 May 2017, the Management Board of LC Corp S.A. (the “Issuer”) hereby reports that the LC Corp S.A. Group recognised in its results for Q1 2017 the amounts being the result of a significant change of the EUR rate in Q1 2017 and having a material impact on the net result in this period, i.e.:
- Decrease of the fair value of investment properties whose valuation is made in EUR and is converted to PLN, in the amount of PLN 83,621,000. This amount will be recognised in the consolidated statement of comprehensive income in “Revaluation of non-financial fixed assets”
- Decrease of the valuation of liabilities resulting from loans in EUR taken in connection with the construction of investment properties in the amount of PLN 30,643,000. This amount will be recognised in the consolidated statement of comprehensive income in “Financial income”
The total effect of the change of the EUR rate (the EUR rate as at 31 March 2017 was PLN 4.2198, i.e. it was lower by EUR 0.2042 as compared to the EUR rate as at 31 December 3016 which was PLN 4.4240) on the consolidated financial result of the Group in Q1 2017 was PLN 52,978,000 and resulted in the decreased of the consolidated gross profit by this amount.
The change of the EUR rate is of a non-cash nature and has no effect on the ongoing situation and operating activities of the LC Corp Group.
In the opinion of the Management Board of the Issuer this information is confidential within the meaning of Art. 17 para. of the Regulations of the European Parliament and of the Council (EU) No. 596/2014 of 16 April 2014 on market abuse.