Announcement.

LC CORP SA (69/2018) Events with a significant impact on the result for the third quarter of 2018

The Board of LC Corp S.A. & Quot; Issuer & quot; in connection with the publication of the consolidated quarterly report for the third quarter of 2018 planned for November 15, 2018, informs that: & lt; br / & gt; I. & lt; br / & gt; The LC Corp SA Group. recognized in the financial results for the third quarter of 2018 amounts resulting from a significant change in the EUR exchange rate and having a significant impact on the gross result in the period ie: & lt; br / & gt; 1) for three quarters of 2018 cumulatively (period from 01/01/2018 to 30/09/2018): & lt; br / & gt; - increase in the fair value of investment properties, whose valuation is prepared in EUR and converted into PLN, in the amount of PLN 42,202 thousand. zł. The indicated amount will be included in the consolidated statement of comprehensive income under "Revaluation of non-financial non-current assets" & Lt; br / & gt; - increase in the valuation of liabilities due to loans in EUR taken in connection with the construction of investment properties in the amount of PLN 13,945 thousand. zł. The amount indicated will be included in the consolidated statement of comprehensive income under "Financial expenses & quot; & Lt; br / & gt; Impact of the EUR exchange rate change described in item I (the EUR exchange rate as at 30 September 2018 amounted to PLN 4.2714, ie it increased by PLN 0.1015 in relation to the EUR exchange rate as at December 31, 2017, which amounted to PLN 4.1709) , the consolidated financial result of the Gross Group for three quarters of 2018 amounted to PLN 28,527 thousand. PLN and caused an increase in consolidated gross profit by this amount. & Lt; br / & gt; 2) for the third quarter of 2018 (period from 01/07/2018 to 30/09/2018): & lt; br / & gt; - decrease in the fair value of investment property, whose valuation is prepared in EUR and converted into PLN, in the amount of PLN 37.878 thousand zł. The indicated amount will be included in the consolidated statement of comprehensive income under "Revaluation of non-financial non-current assets" & Lt; br / & gt; - decrease in the valuation of liabilities due to loans in EUR incurred in connection with the construction of investment properties in the amount of PLN 11,918 thousand. zł. The indicated amount will be included in the consolidated statement of comprehensive income under "Financial income" & Lt; br / & gt; Impact of the EUR exchange rate change described in point I (the EUR exchange rate as at 30 September 2018 amounted to PLN 4.2714, ie it decreased by PLN 0.0902 in relation to the EUR exchange rate as at June 30, 2018, which amounted to PLN 4.3616) , on the consolidated financial result of the Groupgross for the third quarter of 2018 amounted to PLN 25,960 thousand PLN and caused a decrease in consolidated gross profit by this amount. & Lt; br / & gt; The change in the EUR exchange rate is non-monetary and has no impact on the current situation and operating activities of the LC Corp SA Group companies. & Lt; br / & gt; II. & Lt; br / & gt; The LC Corp SA Group. recognized in the financial results for the third quarter of 2018 significant amounts resulting from a significant change in the fair value of investment properties and having a significant impact on the gross result in the period ie: & lt; br / & gt; - in connection with obtaining the occupancy permit for the Retro Office House building in Wrocław, the fair value of the investment real estate Retro Office House has been recognized. The fair value of the property was PLN 25,910 thousand as at 30 September 2018. EUR (PLN 238.814 thousand) and decreased by the value of expenditures to be incurred in the amount of PLN 12,565 thousand. zł. The impact of the recognition of the valuation on the gross financial result amounted to PLN 6,801 thousand. EUR (PLN 29,050,000). The valuation was included in the results for the first quarter of 2018. The indicated amount will be included in the consolidated statement of comprehensive income under "Revaluation of non-financial non-current assets" & Lt; br / & gt; - due to a change in the situation on the local commercial real estate market in Wrocław and updated estimates of the net operating result of Arkady Wrocławskie S.A. the fair value of investment property Arkady Wrocławskie fell, which amounted to PLN 80,000 thousand as at 30/09/2018. EUR, which means a drop in the value of real estate in the amount of PLN 11,900 thousand EUR (50,830 thousand), of which 1.640 thousand EUR (7.005 thousand PLN) was included in the results for the third quarter of 2018. The indicated amount will be included in the consolidated statement of comprehensive income under "Revaluation of non-financial non-current assets" & Lt; br / & gt; The impact of recognition of investment properties described in point II of investment properties on the consolidated financial result of the Gross Group for three quarters of 2018 amounted to PLN 21,780 thousand. PLN and caused a decrease in consolidated gross profit by this amount. The change in the above valuations is non-monetary. & Lt; br / & gt; The total effect of the changes described in sections I and II on the consolidated financial result of the Gross Group for three quarters of 2018 amounted to PLN 6,747 thousand. PLN and caused an increase in consolidated pre-tax profit bythis amount. & Lt; br / & gt; The total effect of the changes described in sections I and II on the consolidated financial result of the Gross Group for the third quarter of 2018 amounted to PLN 32,965 thousand. PLN and caused a decrease in consolidated gross profit by this amount. & Lt; br / & gt; The change in the above valuations is non-monetary. & Lt; br / & gt; III. & Lt; br / & gt; LC Corp S.A. recognized in the financial results for the third quarter of 2018 significant amounts that have a significant impact on the gross financial result in the period from: & lt; br / & gt; - dividends and shares in profits received, the total amount of which in the statement of comprehensive income for the three quarters of 2018 amounted to PLN 136,899, of which PLN 63,176,000 PLN was included in the results for the third quarter of 2018, & lt; br / & gt; - the valuation of the Retro Office House property described above in point II, which had a significant impact on the reversal of the write-down for the Issuer's shares in LC Corp Invest XI sp. o.o. in the gross amount of PLN 6,514 thousand PLN, of which PLN 1,064 thousand PLN was included in the results for the third quarter of 2018. This amount will increase the Issuer's unit financial result for three quarters of 2018. & Lt; br / & gt; These revenues do not affect the consolidated financial statements of the LC Corp Group. ARE. & Lt; br / & gt; In the opinion of the Issuer's Management, this information constitutes confidential information within the meaning of art. 17 sec. 1 of the European Parliament and Council Regulation (EU) No 596/2014 of 16/04/2014 on market abuse. & Lt; br / & gt;

Source: company website, investor relations, current and periodic reports.

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Company information
Company name:LC Corp SA
ISIN:PLLCCRP00017
NIP:899-25-62-750
Adress: ul. Powstańców Śląskich 2-4 53-333 Wrocław
Phone:+48 71 7988010
website:www.lcc.pl

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