Page 50 - CODIC 2017/2018 Annual Report

5. manaGement report on the ConSolidated finanCial StatementS
preSented by the board of direCtorS to the ordinary General meetinG on 31 auGuSt 2018

Ladies and gentlemen,

In accordance with legal and statutory provisions, we hereby report to you on our management,
describe to you the evolution of the Company’s business during the financial year ended
30 April 2018, and submit to your approval the financial statements for this financial year,
as well as the allocation of the results obtained.

1. RESULT OF THE FINANCIAL YEAR

The 2017-2018 financial year ended with a consolidated net profit after tax of EUR 23,255,093.84,
resulting from the sale of projects and price adjustments applied to projects sold.

2. OUTLOOK

The Group’s policy of prudence and rationalisation over the last few years means that it
has the resources it needs to pursue the development of its projects and to position itself,
alone or with high-quality partners, for the acquisition of new large projects.

The outlook is encouraging in our three main countries of activity (Belgium, France and
Luxembourg).

3. MAJOR EVENTS AFTER 30 APRIL 2018

Aucun évènement important n’est survenu depuis la clôture au 30/04/2018.

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 permit,
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 are most
often transferred to construction companies.

In addition, the company is confronted with various market risks, such as changes in the
economic situation, a downturn in the real estate market, changes in foreign exchange
risks in countries outside the eurozone where the company is active, a significant hike in
interest rates, access to finance, etc.

Aware of these different risks, the Board of Directors is attentive to their management.

As part of a prudent management of inventory valuation, the Board of Directors has recorded
an overall write-down of EUR 3,000,000 relating to the inventory of companies accounted
for under the equity method.

48 Codic Annual Report 2017/2018