Page 46 - CODIC 2016/2017 - Annual report

5. manaGement report on the ConSolidated finanCial StatementS
preSented by the board of direCtorS to the ordinary General meetinG on 31 auGuSt 2017

Ladies and gentlemen,

In accordance with the legal and statutory provisions, we have the honour of reporting
on our management, on the evolution of the company’s business during the financial year
ending on 30 April 2017, and submit for your approval the financial statements for this
financial year, as well as the allocation of the results obtained..

1. SIGNIFICANT EVENTS OF THE YEAR

The 2016-2017 financial year ended with a consolidated net profit after tax of EUR
20,743,833.02.

The profit for the year mainly includes, in accordance with IFRS accounting standards, the
recognition of the margin relating to the following real estate transactions:

• Regarding the Gateway project, the balance of the margin realised following the
delivery of the office building to the investor was recorded in the results,
• Regarding the Resonance project, the margin realised following the sale of the
office building to the investor was recorded in the results,
• Regarding the Royal-Hamilius project, and more specifically the office building and
the car park, the balance of the price supplements related to the leases entered into
with, respectively, Silver Royal A 2014 SA and Apcoa Parking Deutschland GmbH,
was recorded in the results.

2. PROSPECTS

Thanks to its policy of caution and rationalisation over the last few years, the Group now
has the resources it needs to pursue the development of its projects and to position itself,
alone or with quality partners, for the acquisition of new large projects.

3. SIGNIFICANT EVENTS THAT TOOK PLACE AFTER 2017

Since the closing on 30/04/2017, regarding the Royal-Hamilius project, and more particularly
the Department Store, the Board of Directors has recorded the termination of the commercial
lease initially concluded with Innolux. Contacts are currently in progress with other prospective
tenants.

4. Main risks and uncertainties

Codic International is a company holding interests in subsidiaries directly or indirectly
developing real estate projects.

The company faces the risks and uncertainties inherent to the profession of developer
exercised by its subsidiaries, and, in particular, the risks associated with obtaining and
maintaining administrative authorisations (commercial authorisation, building permits,
etc.); the risks associated with the marketing of their projects (leases, disposal) as well as
the operational risks related to the construction of the buildings, even if these risks are
usually transferred to construction firms.

44 Codic Annual Report 2016/2017