INTERIM REPORT Q1 2013/14 Table of Contents

ILLUSTRATION: BARKARBY GATE, RETAIL PARK Stockholm, Sweden

TK Development A/S | CVR nO. 24256782 COMPANY ANNOUNCEMENT no. 16/2013 | 21 JUNe 2013

INTERIM REPORT Q1 2013/14 Table of contents

Page

3 Summary

5 Consolidated financial highlights and key ratios

6 results in Q1 2013/14 and outlook for 2013/14

12 market conditions

13 property development

17 Asset management

22 Discontinuing activities

23 other matters

24 Statement by the Board of Directors and Executive Board on the Interim Report

25 Consolidated financial statements

34 Company information

2 /34 | Tk Development A/S | Interim Report Q1 2013/14 | Table of contents Summary

Results for the first quarter of 2013/14 PHoto: TK Development’s results for the first quarter of 2013/14 FASHION ARENA OUTLET CENTER amounted to DKK -19.0 million before tax, compared to DKK PRAGUE, CZECH REPUBLIC -6.9 million in the same period the year before. The results after tax amounted to DKK -16.2 million against DKK -154.9 million in the same period the year before.

The balance sheet total amounted to DKK 3,957.9 million at 30 April 2013 against DKK 4,009.3 million at 31 January 2013. Consolidated equity totalled DKK 1,370.9 million, and the solvency ratio stood at 34.6 %. Asset management The total portfolio of own properties under asset manage- Cash flows for the period amounted to DKK -4.5 million ment, which thus generates cash flow, comprised 138,250 against DKK -12.9 million in the same period the year before. m² and amounted to DKK 1,938.7 million at 30 April 2013, Net interest-bearing debt amounted to DKK 2,195.7 million of which investment properties accounted for DKK 314.0 at 30 April 2013 against DKK 2,206.1 million at 31 January million. The annual net rent from the current leases corre- 2013. sponds to a return on the carrying amount of 6.7 %. Based on full occupancy, the return on the carrying amount is ex- PROPERTY DEVELOPment pected to reach 7.9 %. In the municipality of Danderyd near Stockholm, TK Devel- opment handed over the first 13,000 m² phase of a retail The operation of these properties is generally proceeding park to an investor in 2010/11. Construction of the second satisfactorily, and overall the footfall and revenue in the phase of about 1,800 m² was completed in March 2013, and centres are developing positively. the retail park was handed over to the investor in the first quarter of 2013/14. The total project has been sold to the Market conditions German investment fund Commerz Real on the basis of for- In Management’s opinion, the market conditions have not ward funding. changed appreciably during the past months.

In January 2013, construction of the first phase of 7,850 m², The main challenge currently facing the property sector is a total of 136 units, of TK Development’s residential project the difficult access to financing. Uncertainty on the inter- in Bielany, Warsaw, Poland, was completed. The first units national financial markets continues to adversely affect the were handed over to the buyers in February 2013 and 50 % property sector, leading to consistently long decision-mak- of all units were handed over in the first quarter of 2013/14. ing processes among financing sources, tenants and inves- In total, 76 % of the first-phase units have been sold. tors alike.

After the reporting date, TK Development has sold a 20,000 The Group will make the startup of major new projects con- m² retail park project in Barkarby, Stockholm, Sweden, to a tingent on obtaining either full or partial financing for them fund managed by Cordea Savills. The sale is based on for- and on freeing up cash resources from the sale of several ward funding. 73 % of the project premises have been let. major completed projects. The option to purchase land for the project will be exercised simultaneously with construction startup, scheduled for Au- Financial issues gust 2013. Earnings from the sale are expected to be recog- At the Company’s Annual General Meeting on 22 May 2013, nized in the 2014/15 financial year. the Board of Directors was authorized to carry out a capital increase with gross proceeds of about DKK 210-231 million. The Group’s project portfolio in the property development The capital increase will help generate the cash resources area comprised 456,000 m² at 30 April 2013 (31 January required to underpin future operations and project flow, and 2013: 452,000 m²). thus long-term earnings. The capital increase has been dis-

Summary | Interim Report Q1 2013/14 | Tk Development A/S | 3 /34 Summary

cussed with the Group’s major shareholders, who, together management anticipates positive results before tax for the with a few major private and institutional investors, have giv- continuing activities for the 2013/14 financial year. The en conditional subscription and underwriting commitments timing and progress of the phase-out of the discontinuing for the total capital increase. activities are subject to major uncertainty, and the results of these activities are therefore not included in the outlook The Board of Directors has appointed Nordea Bank Danmark for the 2013/14 financial year. A/S to be the Manager of the offering. The more specific terms and conditions governing the capital increase have As mentioned previously, Management has revised the sales not yet been determined. The prospectus currently being strategy for the Group’s projects and chosen to accept re- prepared will set out the detailed terms and conditions of duced prices for selected project sales. Thus, Management the capital increase. TK Development expects to publish the considers it important for the Group to sell some of its com- prospectus in the first half of August 2013 and expects the pleted projects and plots of land in the 2013/14 financial capital increase to be completed in early September 2013. year.

A substantial portion of the proceeds from the capital in- The expectations mentioned in this Interim Report, including crease will be used to reduce the debt to credit institutions, earnings expectations, are naturally subject to risks and un- including project finance loans of DKK 68.5 million granted certainties, which may result in deviations from the expected by a number of the Company’s major shareholders and mem- results. Various factors may impact on expectations, as out- bers of Management. lined in the section “Risk issues” in the Group’s Annual Report for 2012/13, particularly the valuation of the Group’s project TK Development has a general agreement with the Group’s portfolio. main banker about both operating and projects credits. Af- ter the reporting date, the agreement has been extended for a two-year period, subject to the condition that the operating credit limit is reduced by DKK 73.5 million when the forthcoming capital increase has been implemented, at the latest.

During and after the period under review, TK Development has concluded agreements regarding the refinancing of project credits worth DKK 1.2 billion out of the DKK 1.5 billion due to mature in 2013/14 as of 31 January 2013. The most significant project credit of those refinanced after the reporting date has been extended by two years, subject to the condition that the credit is reduced by DKK 50 million when the forthcoming capital increase has been implemented, at the latest.

Now that the above-mentioned refinancing agreements are in place, credits of DKK 0.3 billion are due to mature in 2013/14. The Group is in ongoing dialogue with the relevant credit institutions, and Management anticipates being able to either prolong or otherwise refinance project credits that have not been prematurely repaid upon project sales.

Outlook for 2013/14

4 /34 | Tk Development A/S | Interim Report Q1 2013/14 | Summary Consolidated financial highlights and key ratios

Q1 Q1 Full year DKKm 2013/14 2012/13 2012/13

Financial highlights:

Net revenue 131.6 54.7 632.3 Value adjustment, investment properties, net 1.6 -0.3 -37.8 Gross profit/loss 32.2 39.4 -139.5 Operating profit/loss (EBIT) 8.5 12.1 -241.1 Financing, etc. -27.9 -19.1 -87.4 Profit/loss before tax and writedowns, etc. -19.0 -6.9 -0.3 Profit/loss before tax -19.0 -6.9 -326.0 Profit/loss for the period -16.2 -154.9 -493.3

Balance sheet total 3,957.9 4,480.6 4,009.3 Property, plant and equipment 500.9 447.5 498.8 of which investment properties/investment properties under construction 498.8 443.4 496.3 Total project portfolio 3,021.9 3,546.6 3,030.9 Equity 1,370.9 1,725.7 1,389.7

Cash flows from operating activities 46.1 -24.8 45.6 Net interest-bearing debt, end of period 2,195.7 2,278.3 2,206.1

Key ratios:

Return on equity (ROE) *) -4.7 % -34.4 % -30.2 % EBIT margin 6.5 % 22.1 % -38.1 % Solvency ratio (based on equity) 34.6 % 38.5 % 34.7 % Equity value in DKK per share 32.6 41.0 33.0 Price/book value (P/BV) 0.3 0.4 0.4 Number of shares, end of period 42,065,715 42,065,715 42,065,715 Earnings per share (EPS) in DKK -0.4 -3.7 -11.7 Dividend in DKK per share 0 0 0 Listed price in DKK per share 9 15 13

Key ratios adjusted for warrants:

Return on equity (ROE) *) -4.7 % -34.4 % -30.2 % Solvency ratio (based on equity) 34.6 % 38.5 % 34.7 % Equity value in DKK per share 32.6 41.0 33.0 Diluted earnings per share (EPS-D) in DKK -0.4 -3.7 -11.7

The calculation of key ratios is based on the 2010 guidelines issued by the Danish Society of Financial Analysts.

*) Annualized.

TK Development’s results for the first quarter of 2013/14 phase out activities. amounted to DKK -19.0 million before tax, compared to DKK -6.9 million in the same period the year before. The results after Therefore, the financial review below contains a description of tax amounted to DKK -16.2 million against DKK -154.9 million in the results and balance sheet total at group level only. the same period the year before. Accounting policies The balance sheet total amounted to DKK 3,957.9 million at 30 The Interim Report is presented in accordance with IAS 34, In- April 2013 against DKK 4,009.3 million at 31 January 2013. Con- terim Financial Reporting, as adopted by the EU, and Danish dis- solidated equity totalled DKK 1,370.9 million, and the solvency closure requirements for listed companies. ratio stood at 34.6 %. The Interim Report has been presented in accordance with The results for Q1 2013/14 and the balance sheet at 30 April the financial reporting standards (IFRS/IAS) and IFRIC interpre- 2013, broken down by business segment, appear from the ta- tations applicable for financial years beginning at 1 February bles below. 2013.

The activities within each individual business segment are de- The implementation of new and amended financial reporting scribed in more detail on pages 13-22. standards and interpretations that have entered into force as of the 2013/14 financial year has not impacted recognition and The property development segment is described on pages measurement in the consolidated financial statements and 13-16. The description includes information about the thus has no effect on the earnings per share and the diluted development potential of TK Development’s project portfolio, earnings per share. including an outline of the individual development projects. In March 2013, the Board of Directors decided to change the The asset management segment is described on pages internal reporting procedure. In this connection, the segment 17-21. The description contains information about TK definition has been revised, and segments are now divided into Development’s own properties under asset management, in- property development activities, asset management activi- cluding an outline of the operation and customer influx for the ties and discontinuing activities. The comparative figures have individual projects. been restated accordingly.

The discontinuing activities are described on page 22, which The accounting policies have been applied consistently with provides more details about TK Development’s properties and those presented in the Annual Report for 2012/13. Reference projects in the countries where Management has decided to is made to the Annual Report for a complete description of the

Results q1 2013/14 (DKKm)

Q1 Property Asset Discontinuing Profit/loss 2013/14 development management activities Unallocated Revenue 131.6 95.1 33.1 3.4 0.0 Gross profit/loss 32.2 2.5 29.8 -0.1 0.0 Costs 23.2 - - 2.1 21.1 Operating profit/loss 8.5 2.5 29.8 -2.2 -21.6 Financing, net -27.9 -6.3 -16.5 -1.7 -3.4 Profit/loss before tax -19.0 -3.6 13.4 -3.8 -25.0 Tax on profit/loss for the period -2.8 - - - -2.8 Profit/loss for the period -16.2 - - - -22.2

The balance sheet structure appears from the next page.

6 /34 | Tk Development A/S | Interim Report Q1 2013/14 | Management commentary Results in Q1 2013/14 and outlook for 2013/14

Balance sheet structure at 30 april 2013 (DKKm)

Property Asset Discontinuing Balance sheet 30 Apr 2013 development management activities Unallocated

Assets Investment properties 481.2 - 314.0 167.2 - Investment properties under construction 17.6 17.6 - - - Other non-current assets 177.4 3.3 3.3 - 170.8 Projects in progress or completed 3,021.9 1,159.9 1,624.7 237.3 - Receivables 209.0 50.4 135.4 21.9 1.3 Deposits in blocked and escrow accounts, cash and cash equivalents, etc. 50.8 10.9 12.5 0.4 27.0 Assets 3,957.9 1,242.1 2,089.9 426.8 199.1

Equity and liabilities Equity 1,370.9 582.3 694.6 233.5 -139.5 Credit institutions 2,260.5 533.4 1,246.3 188.9 291.9 Other liabilities 326.5 126.4 149.0 4.4 46.7 Equity and liabilities 3,957.9 1,242.1 2,089.9 426.8 199.1

Solvency ratio 34.6 % 46.9 % 33.2 % 54.7 % -70.1%

Group’s accounting policies. Overview of handed-over projects Q1 2013/14 No interim financial statements have been prepared for the Parent Company. The Interim Report is presented in DKK, which Retail park, Enebyängen, Danderyd, Sweden is the presentation currency for the Group’s activities and the In the municipality of Danderyd near Stockholm, TK Develop- functional currency of the Parent Company. The Interim Report ment handed over the first 13,000 m² phase of the retail park has not been audited or reviewed by the Company’s auditors. to an investor in 2010/11. Construction of the second phase of about 1,800 m² was completed in March 2013, and the re- Accounting estimates and judgments tail park was handed over to the investor in the first quarter of The most significant accounting estimates and judgments 2013/14. The second phase is fully let and tenanted by Plan- made by Management in applying the Group’s accounting pol- tagen (2012/13: 100 %). The total project has been sold to the icies, and the associated, estimated material uncertainty, are German investment fund Commerz Real on the basis of forward the same as those made in the preparation of the Annual Re- funding. port for 2012/13. For a more detailed description, reference is therefore made to the Annual Report. Residential park, Bielany, Warsaw, Poland Construction of the first phase of 7,850 m², a total of 136 units, Income statement was completed in January 2013, and the first units were hand- Revenue ed over to the buyers in February 2013. A total of 76 % of the The revenue for the period under review totalled DKK 131.6 mil- units have been sold (2012/13: 69 %), with 50 % being handed lion against DKK 54.7 million in Q1 2012/13. over to the buyers in Q1 2013/14. The residential units are being sold as owner-occupied apartments to private users. The revenue stems from the sale of projects, rental and fee income, etc.

Management commentary | Interim Report Q1 2013/14 | Tk Development A/S | 7 /34 Results in Q1 2013/14 and outlook for 2013/14

Gross margin Goodwill The gross margin for Q1 2013/14 amounted to DKK 32.2 million Goodwill is unchanged compared to 31 January 2013, amount- against DKK 39.4 million in Q1 2012/13. The gross margin de- ing to DKK 33.3 million at the reporting date. Goodwill relates rives from the operation of completed projects, the operation to the Group’s property development and asset management and value adjustment of the Group’s investment properties and activities in Poland and the Czech Republic. There are no indica- profits on handed-over projects. tions of any need to impair the value of goodwill.

The value adjustment of the Group’s investment properties Investment properties and investment properties under con- amounted to DKK 1.6 million against DKK -0.3 million in Q1 struction 2012/13. TK Development’s investment properties consist of:

Staff costs and other external expenses Futurum Hradec Králové, shopping centre, the Czech Repub- Staff costs and other external expenses amounted to DKK 23.2 lic (a 20 % interest). million for Q1 2013/14 against DKK 26.7 million in Q1 2012/13, Galeria Tarnovia, shopping centre, Tarnów, Poland (a 30 % a reduction of about 13 %. interest). German investment properties. Staff costs amounted to DKK 16.6 million against DKK 18.7 million in the same period the year before, a decline of about 11 The total value of the Group’s investment properties amounted %. The number of employees totalled 105 at 30 April 2013 (31 to DKK 481.2 million against DKK 479.4 million at 31 January January 2013: 112), including employees working at operation- 2013. DKK 167.2 million of the value at 30 April 2013 is attribu- al shopping centres. table to the Group’s German investment properties, which are described in more detail in the section “Discontinuing activities” Other external expenses amounted to DKK 6.6 million, a reduc- below. The two remaining investment properties belong to the tion of about 18 % compared to Q1 2012/13. asset management segment and are described in more detail under that heading. Development in costs: The valuation of the Czech investment property, the Futurum 180 Hradec Králové shopping centre, made at 31 January 2013 was 150 based on the ongoing sales process. This valuation was upheld 120 at 30 April 2013. 90

60 TK Development’s 30 % ownership interest in Galeria Tarnovia 30 has been valued at fair value based on the return on the pro- 0 perty agreed upon in December 2012 in connection with the

2008/09 2009/10 2010/11 2011/12 2012/13 2013/14E Q1 2012/13Q1 2013/14 sale of 70 % to Heitman. In Management’s opinion, the rate of Costs, DKKm Costs, trend return agreed upon in December 2012 is still consistent with Financing the current market level. TK Development realized net financing expenses of DKK 27.9 million against DKK 19.1 million in the same period the year TK Development’s investment properties under construction before. The increase is attributable partly to higher financing consist of the Group’s ownership interest in the Jelenia Góra costs on individual project credits and partly to the declining development project in Poland. No value adjustment of the in- volume of projects on which interest is capitalized following the vestment property was made at 30 April 2013, as the parties decision to sell some of the Group’s plots of land. are awaiting final permits for the project and further clarifica- tion of the building phase, including the timing of construction Balance sheet startup, construction period, etc. The Group’s balance sheet total amounted to DKK 3,957.9 million, which is a decline of DKK 51.4 million compared to 31 Jan- Deferred tax assets uary 2013. Deferred tax assets were recorded at DKK 134.7 million in the

8 /34 | Tk Development A/S | Interim Report Q1 2013/14 | Management commentary Results in Q1 2013/14 and outlook for 2013/14

balance sheet against DKK 127.0 million at 31 January 2013. Receivables Total receivables amounted to DKK 209.0 million, a decline of The valuation of the tax assets is based on existing budgets DKK 32.0 million from 31 January 2013 that relates mainly to and profit forecasts for a five-year period. For the first three other receivables. years, budgets are based on an evaluation of specific projects in the Group’s project portfolio. The valuation for the next two Cash and cash equivalents years is based on specific projects in the project portfolio with Cash and cash equivalents amounted to DKK 26.9 million a longer time horizon than three years as well as various project against DKK 31.2 million at 31 January 2013. The Group’s total opportunities. cash resources, see note 4, came to DKK 68.1 million against DKK 70.1 million at 31 January 2013. Due to the substantial uncertainties attaching to these val- uations, provisions have been made for the risk that projects Equity are postponed or not implemented and the risk that project The Group’s equity came to DKK 1,370.9 million against profits fall below expectations. A change in the conditions and DKK 1,389.7 million at 31 January 2013. assumptions for budgets and profit forecasts, including time estimates, could result in the value of the tax assets being low- Since 31 January 2013, equity has partly been affected by the er than that computed at 30 April 2013, which could have an results for the period and negative market-value adjustments adverse effect on the Group’s results of operations and finan- after tax of DKK 2.8 million related to foreign subsidiaries and cial position. hedging instruments.

Project portfolio The solvency ratio amounts to 34.6 %. The total project portfolio came to DKK 3,021.9 million against DKK 3,030.9 million at 31 January 2013. The decline is a com- Equity and solvency: bined result of an increase in the Group’s portfolio of ongoing projects and a decrease due to the sale of projects. 2,000

1,500 Total prepayments based on forward-funding agreements were DKK 330.3 million at 31 January 2013, compared to 1,000 40.4 % 40.4 % 39.5 % DKK 369.6 million at 31 January 2013. Forward funding de- 59 % 500 36.4 % 34.7 % creased due to the handover of projects to investors in Q1 34,6 % 0 2013/14. At 30 April 2013, forward funding represented 94.8 31 Jan 09 31 Jan 10 31 Jan 11 31 Jan 12 31 Jan 13 30 Apr 13 % of the gross carrying amount of sold projects. Equity, DKKm Solvency ratio

The Group’s total portfolio of completed projects and invest- Non-current liabilities ment properties amounted to DKK 2,138 million at 30 April The Group’s non-current liabilities represented DKK 140.8 mil- 2013 (31 January 2013: DKK 2,132 million), and the Group’s net lion against DKK 141.0 million at 31 January 2013. interest-bearing debt amounted to DKK 2,196 million (31 Janu- ary 2013: DKK 2,206 million). Current liabilities

2,500 The Group’s current liabilities represented DKK 2,446.2 million against DKK 2,478.6 million at 31 January 2013. The decline is 1,875 primarily attributable to debt owing to credit institutions.

1,250 Cash flow statement 625 The Group’s cash flows from operating activities were positive

0 31.1.09 31.1.10 31.1.11 31.1.12 31.1.13 31.4.13 in the amount of DKK 46.1 million (2012/13: positive in the Net interest-bearing debt, DKKm amount of DKK 45.6 million). This amount is a combined result Investment properties and completed projects, DKKm of a reduction of funds tied up in projects due to project sales, new project investments, a decline in receivables, interest and

Management commentary | Interim Report Q1 2013/14 | Tk Development A/S | 9 /34 Results in Q1 2013/14 and outlook for 2013/14

tax paid, as well as other operating items. Financial issues Capital increase The Group’s cash flows from investing activities were nega- At the Company’s Annual General Meeting on 22 May 2013, tive in the amount of DKK 1.0 million (2012/13: positive in the the Board of Directors was authorized to carry out a capital in- amount of DKK 6.4 million), due mainly to additional invest- crease with gross proceeds of about DKK 210-231 million. The ments in the Group’s investments properties and investment capital increase will help generate the cash resources required properties under construction. to underpin future operations and project flow, and thus long- term earnings. The capital increase has been discussed with The cash flows from financing activities were negative in the the Group’s major shareholders, who, together with a few major amount of DKK 49.6 million (2012/13: negative in the amount private and institutional investors, have given conditional sub- of DKK 76.2 million). The negative cash flows result from a re- scription and underwriting commitments for the total capital duction of payables to credit institutions coupled with the fi- increase. nancing raised for project investments. The Board of Directors has appointed Nordea Bank Danmark Goals and strategy A/S to be the Manager of the offering. The more specific terms As described in company announcement no. 6/2013 and the and conditions governing the capital increase have not yet Annual Report for 2012/13, in March 2013 Management resol- been determined. The prospectus currently being prepared ved to revise the Group’s strategy and business model and to will set out the detailed terms and conditions of the capital in- adjust its market focus. crease. TK Development expects to publish the prospectus in the first half of August 2013 and expects the capital increase In this connection, Management decided to carry out a number to be completed in early September 2013. of adaptations, the aim being to achieve the following results after a two-year transformation process: A substantial portion of the proceeds from the capital increase will be used to reduce the debt to credit institutions, including The remaining activities will have been limited to Denmark, project finance loans of DKK 68.5 million granted by a number Sweden, Poland and the Czech Republic. of the Company’s major shareholders and members of Manage- The portfolio of projects not initiated (plots of land) will have ment. been reduced from about DKK 1.1 billion to about DKK 500 million. Other financial issues The balance sheet will have been adjusted, with a solvency The fact that a number of completed projects have not been ratio of about 40 %. sold means a substantial portion of the Group’s financial re- overheads will have been reduced by around 20 % relative sources is tied up in these projects. This has made it difficult to to 2012/13, with half of the reduction deriving from the allocate the necessary capital to securing the progress of new discontinuation of activities in Germany, Finland and the projects. Therefore, in December 2012 Management decided to Baltic States – cost cuts implemented at the beginning of revise the Group’s sales strategy with a view to realizing faster 2013. sales. The sale of several completed projects will free up the Financing costs will have been normalized as a result of the cash resources that are essential for strengthening the Group’s initiatives implemented. financial platform. Moreover, financial resources will be secured The new reporting procedure – applied with effect as of the to regenerate momentum and thus to realize the substantial 2012/13 Annual Report – will have provided a better over- development potential inherent in several of the Group’s proj- view of the Group’s activities, values, value creation and ects. expected development. TK Development is dependent on its ability to continue obtain- Following implementation of the above-mentioned adaptati- ing either full or partial financing of existing and new projects, ons, Management believes that a platform for normalized ear- either from credit institutions or from investors in the form of nings will have been established. forward funding, and on freeing up substantial cash resources from the sale of several major completed projects. Having sufficient cash resources is essential for the Group. In order to complete the development of its planned projects and there-

10 /34 | Tk Development A/S | Interim Report Q1 2013/14 | Management commentary Results in Q1 2013/14 and outlook for 2013/14

by achieve the expected results, the Group must have or must Subsequent events be able to procure sufficient cash resources to cover the costs As stated in company announcement no. 15/2013, in June and deposits required for the projects, the capacity costs and 2013 TK Development has sold a Swedish 20,000 m² retail park other obligations. project in Barkarby, Stockholm, to a fund managed by Cordea Savills. The sale is based on forward funding. 73 % of the proj- TK Development has a general agreement with the Group’s ect premises have been let, and construction is scheduled to main banker about both operating and project credits. After the begin in August 2013. reporting date, the agreement has been extended for a two- year period, subject to the condition that the operating credit Other than those mentioned in the management commentary, limit is reduced by DKK 73.5 million when the forthcoming capi- no significant events of relevance to the Company have oc- tal increase has been implemented, at the latest. curred after the reporting date.

During and after the period under review, TK Development has concluded agreements regarding the refinancing of project credits worth DKK 1.2 billion out of the DKK 1.5 billion due to mature in 2013/14 as of 31 January 2013. The most significant project credit of those refinanced after the reporting date has been extended by two years, subject to the condition that the credit is reduced by DKK 50 million when the forthcoming capital increase has been implemented, at the latest.

Now that the above-mentioned refinancing agreements are in place, credits of DKK 0.3 billion are due to mature in 2013/14. The Group is in ongoing dialogue with the relevant credit institutions, and Management anticipates being able to either prolong or otherwise refinance project credits that have not been prematurely repaid upon project sales.

OUTLOOK FOR 2013/14 Management anticipates positive results before tax for the continuing activities for the 2013/14 financial year. The timing and progress of the phase-out of the discontinuing activities are subject to major uncertainty, and the results of these activities are therefore not included in the outlook for the 2013/14 financial year.

As mentioned previously, Management has revised the sales strategy for the Group’s projects and chosen to accept reduced prices for selected project sales. Thus, Management considers it important for the Group to sell some of its completed projects and plots of land in the 2013/14 financial year.

The expectations mentioned in this Interim Report, including earnings expectations, are naturally subject to risks and uncertainties, which may result in deviations from the expected results. Various factors may impact on expectations, as outlined in the section “Risk issues” in the Group’s Annual Report for 2012/13, particularly the valuation of the Group’s project portfolio.

Management commentary | Interim Report Q1 2013/14 | Tk Development A/S | 11 /34 Market conditions

In Management’s opinion, the Group’s market conditions have on international financial markets. not changed appreciably during the past months. The current market conditions are still leading to long decision-making pro- The rental level is expected to remain fairly stable in the period cesses among investors, tenants and financing sources alike. ahead. However, the rental level for secondary locations is ex- The Danish market in particular continues to be affected by pected to be under pressure. uncertainty, partly because of a weakened financial sector. In Management’s opinion, there are no indications of a significant In the residential segment in Warsaw, Poland, demand is slug- improvement during the period to come. gish and prices have realigned due to the large supply of new housing for sale, among other factors. The scope of housing The access to project financing remains difficult and is currently projects launched in Warsaw is now diminishing, and over time the greatest challenge facing the property sector. The financial the supply of housing is expected to stabilize. Therefore, in the sector is weakened and has sharpened its focus on credit risks, opinion of Management, housing development in Poland will be- and at the same time new rules have imposed stricter capital come attractive again, particularly in the Warsaw area. requirements on banks. This means that credit institutions remain reluctant to provide loans to finance real property, with a resulting negative effect for the property sector, and thus TK Development as well. TK Development is dependent on its ability to continue obtaining either full or partial project financing, either from credit institutions or from investors in the form of forward funding, and on freeing up substantial cash resources from the sale of several major completed projects.

The past year has seen cautious investor optimism and increased interest in investing in selected segments of retail projects, with quality and location being key factors in the investment decision. However, the decision-making processes continue to be lengthy, in part because of the investors’ re- quirement for lower project risk.

Institutional investors need options for placing their funds, and this paves the way for setting up partnerships with such investors for the purpose of cooperating on the execution of new projects. These opportunities fall in line with the Group’s business model, according to which TK Development wishes to enter into partnerships regarding completed properties and new development projects, and thus to improve the allocation of the Company’s equity, diversify risks and better utilize the Group’s development competencies.

The Swedish market is currently considered the most trans- parent and attractive market for selling projects in the Nordic region, and given the continued retail expansion, this market is highly interesting for TK Development.

In the letting market for retail property, tenants continue to focus on location. TK Development is experiencing a good amount of interest in prime-location projects, and several strong national and international retail chains are expanding, although decision-making processes are protracted in light of the unrest

12 /34 | Tk Development A/S | Interim Report Q1 2013/14 | Management commentary Property development

The Group’s primary business area is the development of real The development in the Group’s project portfolio is outlined be- property, termed property development. low:

31 Jan 31 Jan 30 Apr Strategy for business area – Property development DKKm 2012 2013 2013 Developing projects from the conceptual phase through to project completion, based on one of several models: Sold • Sold projects (forward funding / forward purchase) Completed 0 15 13 • Projects with partners In progress 17 17 0 • On TK’s own books based on a high degree of confidence in Not initiated 10 6 5 the letting and sales potential • Services for third parties. Total 27 38 18

Remaining Property development Completed 0 38 28

Countries: Denmark, Sweden, In progress 286 198 195 Poland and the Czech Republic Not initiated 938 901 919 Total 1.224 1.137 1.142 Revenue: Q1 2013/14: DKK 95.1 million (Q1 2012/13: DKK 14.5 million) Net project portfolio 1.251 1.175 1.160 Gross profit/loss: Q1 2013/14: DKK 2.5 million Forward funding 293 370 330 (Q1 2012/13: DKK 5.5 million) Gross project portfolio 1.544 1.545 1.490 Balance sheet total: 30 Apr 2013: DKK 1,242.1 million Forward funding in % of gross (31 Jan 2013: DKK 1,284.5 million) carrying amount of sold projects 91,6 % 91,1 % 94,8 %

Table 1

In its property development segment, TK Development focuses on executing existing projects in the portfolio, as well as on se- By means of forward funding, the Group reduces the funds tied curing satisfactory pre-construction letting or sales. In addition, up in the portfolio of sold projects. Forward funding has fallen the Group continuously works on new project opportunities. since 31 January 2013 due to the handover of projects to investors. The Group will make the startup of major new projects contingent on obtaining either full or partial financing for them and on The development potential of the Group’s project portfolio is freeing up cash resources from the sale of one or more major shown below (in square metres): completed projects.

m² (’000) 31 Jan 2012 31 Jan 2013 30 Apr 2013 The gross margin for development activities amounted to DKK 2.5 million in Q1 2013/14 against DKK 5.5 million in Q1 2012/13. Sold Completed 0 4 2

The Group’s retail projects on which construction is already on- In progress 7 3 0 going or about to start are still attracting a good amount of in- Not initiated 29 0 0 terest from tenants. During the period under review, the Group Total 36 7 2 also concluded lease agreements for several of these projects. Remaining Completed 0 3 2 The development potential of the project portfolio represented In progress 39 20 19 456,000 m² at 30 April 2013, of which sold projects accounted Not initiated 560 422 433 for 2,000 m² and remaining projects for 454,000 m². The project Total 599 445 454 portfolio had a total development potential of 452,000 m² at 31 January 2013. Total project portfolio 635 452 456 Number of projects 50 37 35

Table 2

Management commentary | Interim Report Q1 2013/14 | Tk Development A/S | 13 /34 Property Development

Project outline The outline below lists the key projects in the portfolio in the property development segment.

Construction TKD’s start/ Opening/ TKD’s share ownership expected con- expected Project name City/town Country Segment of area (m2) interest struction start opening

Completed Residential Park, Bielany, phase I Warsaw PL Residential/services 4,395 100 % Mid-2011 January 2013

In progress Amerika Plads, underground car park Copenhagen DK Under-ground car park 16,000 50 % 2004 Continuously Vasevej Birkerød DK Mixed 3,400 100 % - -

Not initiated BROEN, shopping centre Esbjerg DK Retail 29,800 100 % Autumn 2013 2015 Østre Teglgade Copenhagen DK Office/residential 32,700 1) 100 % Continuously Continuously Amerika Plads, lot C Copenhagen DK Mixed 6,500 50 % 2014 2016 Amerika Plads, lot A Copenhagen DK Office 5,900 50 % 2014 2016 Aarhus South, phase II Aarhus DK Retail 2,800 100 % 2013 2014 Ejby Industrivej Copenhagen DK Office 12,900 100 % - - Østre Havn/Stuhrs Brygge Aalborg DK Mixed 36,000 1) 50 % Continuously Continuously Retail park, Marsvej Randers DK Retail 10,000 100 % 2013 2014 Development of town centre Køge DK Mixed 27,500 100 % 2013 Continuously Farum Bytorv, extension Farum DK Retail 8,000 100 % 2013 2015 The Kulan commercial district Gothenburg SE Mixed 45,000 100 % 2013 2015 Barkarby Gate, retail park Stockholm SE Retail 20,000 100 % August 2013 Autumn 2014 Retail park, Söderhamn Söderhamn SE Retail 10,000 100 % 2013 2014 Retail park, Gävle, phase II Gävle SE Retail 15,800 100 % Continuously Continuously Shopping centre, Jelenia Góra Jelenia Góra PL Retail 7,200 30 % 2013 2015 Residential park, Bielany, remaining phases Warsaw PL Residential/services 48,350 100 % Continuously Continuously Bytom Retail Park Bytom PL Retail 25,800 100 % Continuously Continuously Shopping centre, Frýdek Místek Frýdek Místek CZ Retail 14,800 100 % 2013 2014 Most Retail Park, phase II Most CZ Retail 2,000 100 % - - Property development, total floor space approx. 385,000 1) Share of profit on development amounts to 70 %.

14 /34 | Tk Development A/S | Interim Report Q1 2013/14 | Management commentary Property Development

Geographical segmentation of the development potential in Kvickly, Aldi, Imerco, Skoringen, Sport-Master, Bahne, Panduro square metres: Hobby, Kong Kaffe and Gina Tricot. The fitness facilities have been let to Fitness World. Construction is expected to com-

Denmark mence in autumn 2013, and the shopping centre is scheduled to open in 2015. TK Development is currently working on the

Czech Republic planning, design, startup and sale of the project.

Sweden Østre Teglgade, Copenhagen, Denmark TK Development owns an attractively located project area at Poland Teglholmen of about 32,700 m². Current plans involve estab- lishing a church and possibly a residential care facility. Discus- sions are also being held with several interested parties regard- Completed projects ing the construction of residential property in the project area. Residential park, Bielany, Warsaw, Poland TK Development owns a tract of land in Warsaw allowing for Amerika Plads, lots A and C, Copenhagen, Denmark the construction of about 56,200 m², distributed on 900-1,000 Kommanditaktieselskabet Danlink Udvikling (DLU), which is residential units. The plan is to build the project in four phases. owned 50/50 by Udviklingsselskabet By og Havn I/S and TK Construction of the first phase of 7,850 m², consisting of 136 Development, owns three projects at Amerika Plads: lot A, lot units, was completed in January 2013. Sluggish demand in the C and an underground car park. A building complex with about Polish residential market has affected the pre-completion sale 11,800 m² of office space is to be built on lot A, and a building of the units. The sales process has now picked up, and 76 % complex with about 13,000 m² of commercial and residential of the first-phase units (2012/13: 69 %) have been sold. The space on lot C. Construction will take place as the space is let. residential units are being sold as owner-occupied apartments to private users, and 50 % of the units had been handed over to Østre Havn/Stuhrs Brygge, Aalborg, Denmark the buyers at 30 April 2013. Management expects the remain- In the area previously occupied by Aalborg Shipyard at Stuhrs ing units to be sold in the course of the 2013/14 financial year. Brygge, TK Development is developing a business and residential park of about 72,000 m² through a company jointly owned Projects in progress with Frederikshavn Maritime Erhvervspark on a 50/50 basis. Amerika Plads, underground car park, Copenhagen, Denmark The area was acquired by the jointly owned company, with pay- Kommanditaktieselskabet Danlink Udvikling (DLU), which is ment being effected for the development rights acquired in owned 50/50 by Udviklingsselskabet By og Havn I/S and TK step with the development and execution of specific projects. Development, owns three projects at Amerika Plads: lot A, lot C A new local plan comprising about 31,000 m² of housing, offic- and an underground car park. Part of the underground car park es and parking facilities has been launched. in the Amerika Plads area has been built. The Group expects to sell the total parking facility upon final completion. Retail park, Marsvej, Randers, Denmark In October 2010, the Group took over a plot of land on Marsvej Vasevej, Birkerød, Denmark in Randers, intended for a retail development project of 10,000 TK Development owns a property of about 3,000 m² at Vasevej m². Letting has been initiated, and there is a satisfactory level in Birkerød, rented by SuperBest. The project consists of a re- of interest among potential tenants. furbishment of the existing property and a minor extension comprising a few stores and dwellings. The combined project is Development of town centre, Køge, Denmark expected to comprise about 3,400 m². TK Development is working on a potential project in Køge. In February 2012, Køge Kyst and TK Development entered into a Projects not initiated conditional agreement under which TK Development is to buy BROEN, shopping centre, Esbjerg, Denmark land for constructing a project of about 27,500 m². The project, In Esbjerg, TK Development has bought a plot earmarked for a to be built immediately next to Køge Station and the town cen- shopping centre project, BROEN, of about 29,800 m², to be built tre shopping area, comprises retail stores of about 12,000 m², on the railway land at Esbjerg station. The shopping centre is public service facilities of about 8,500 m² including a town hall expected to comprise about 70 stores. The current occupan- and rehabilitation centre, residential premises of about 3,600 cy rate is 74 % (2012/13: 75 %), with tenants including H&M, m² and office premises/fitness facilities of about 3,400 m² as

Management commentary | Interim Report Q1 2013/14 | Tk Development A/S | 15 /34 Property Development

well as a 14,000 m² underground car park. The local plan for has an option to buy a plot of land for developing additional the area is to be changed, and a new one expected to be final- retail park premises of about 15,800 m². ly adopted in mid-2013. TK Development expects to enter into an agreement with Køge Municipality regarding its takeover of Shopping centre, Jelenia Góra, Poland both town hall and rehabilitation centre. Letting of the retail TK Development has bought a plot of land in Jelenia Góra and premises has started, and potential tenants are showing a has an option on additional land for the development of a shop- good amount of interest in the project. ping centre of about 24,000 m². The project will comprise a supermarket of about 2,200 m² and retail, restaurant and service Farum Bytorv, extension, Farum, Denmark premises totalling about 21,800 m². The local plan for the area In Farum, TK Development has made a winning bid for an exten- is in place and the letting of premises has started. Construction sion of Farum Bytorv by about 8,000 m². A new local plan for the is expected to commence in 2013, and the shopping centre is area is to be drawn up. This process is under way, and the local scheduled to open in 2015. In December 2012, 70 % of the proj- plan is expected to be adopted in mid-2013. ect was handed over to Heitman, and in this connection the Group’s 30 % ownership interest was classified under “Invest- The Kulan commercial district, shopping centre and service/ ment properties under construction”. TK Development will re- commercial space, Gothenburg, Sweden ceive fee income from the jointly owned company established TK Development and the Swedish housing developer JM AB for developing, letting and managing the construction of the have entered into a cooperation agreement with SKF Sverige project. AB to develop SKF’s former factory area in the old part of Go- thenburg. The contemplated project comprises a total floor Residential park, Bielany, Warsaw, Poland space of about 75,000 m²: 30,000 m² for a shopping centre, TK Development owns a tract of land in Warsaw allowing for 15,000 m² for services/commercial use and 30,000 m² for the construction of residential units of about 56,200 m² in all; housing. TK Development will be in charge of developing the see above under “Completed projects”. Construction of the first 45,000 m² for a shopping centre, services and commercial fa- phase of 7,850 m² has been completed. The plan is to initiate cilities, while JM AB will have responsibility for the 30,000 m² of construction of the remaining three phases of about 48,350 housing. The local plan is being drawn up and is expected to be m² successively, in continuation of the completion of the first approved in 2013. The project is being discussed with potential phase, once pre-construction sales have reached a satisfacto- tenants, and several lease agreements have been concluded. ry level.

Barkarby Gate, retail park, Stockholm, Sweden Bytom Retail Park, Bytom, Poland In Barkarby in the northwestern part of Stockholm, TK Develop- TK Development intends to develop a retail park with total leas- ment has an option on an area for the development of a 20,000 able space of about 25,800 m² on its site at the Plejada shop- m² retail park. The retail park is expected to consist of 12-14 ping centre in Bytom, which is centrally located in the Katowice units, of which 9-10 units will be retail stores. The current oc- region. Construction of the project will be phased in step with cupancy rate is 73 % (2012/13: 70 %), and lease agreements letting. Letting efforts are ongoing, and construction will start have been concluded with various major tenants, including XXL as space is let. (sports store), Clas Ohlson, Intersport, Lager 157, Grizzly, Kjell & Co., Burger King and the fitness chainN ordic Wellness. After Shopping centre, Frýdek Místek, the Czech Republic the reporting date, the project has been sold to a fund man- In the Czech town of Frýdek Místek, TK Development has an aged by Cordea Savills. The sale is based on forward funding. option to buy a plot of land for building a 14,800 m² shopping The option to purchase land for the project will be exercised centre, consisting of about 60 stores. The current occupancy simultaneously with construction startup, scheduled for Au- rate is 71 % (2012/13: 75 %). As the project has been post- gust 2013. The opening has been scheduled for autumn 2014. poned relative to the original schedule, a few tenants have cho- Earnings from the sale will be recognized upon handover of the sen to exercise their right to withdraw from the lease agree- project to the investor, expected to take place in 2014/15. ments, which is the reason for the declining occupancy rate. The letting process is still proceeding satisfactorily, and lease Retail park, phase II, Gävle, Sweden agreements have been concluded with such tenants as Billa, In 2012/13, TK Development sold and handed over an 8,300 m² Intersport, H&M, NewYorker and Euronics. Construction is ex- retail park in the Swedish town of Gävle to the Swedish proper- pected to start in the course of 2013, with the opening sched- ty company Nordika Fastigheter AB. Moreover, TK Development uled for 2014.

16 /34 | Tk Development A/S | Interim Report Q1 2013/14 | Management commentary Asset management

The Group’s secondary business area is asset management, Breakdown of own properties under asset management by which consists of owning, operating, running in, maturing and country (carrying amount): optimizing completed projects for a medium-long operating period whose length matches the potential for adding value both Denmark for the Group and for third parties.

Poland Strategy for business area – Asset management Owning, operating, maturing and optimizing completed projects for a Czech Republic medium-long operating period that matches the potential for adding value both for the Group and for third parties.

The gross margin for asset management activities amounted Asset management to DKK 29.8 million in Q1 2013/14 against DKK 31.9 million in Countries: Denmark, Sweden, Poland Q1 2012/13. and the Czech Republic

Revenue: Q1 2013/14: DKK 33.1 million Although these properties have been classified under asset (Q1 2012/13: DKK 37.0 million) management, TK Development will focus on selling them in Gross profit/loss: Q1 2013/14: DKK 29.8 million whole or in part, as their sale will substantially strengthen the (Q1 2012/13: DKK 31.9 million) Group’s financial platform. Therefore, the process of selling a Balance sheet 30 Apr 2013: DKK 2,089.9 million number of the Group’s completed projects continues. Manage- total: (31 Jan 2013: DKK 2,100.7 million) ment anticipates being able to conclude final sales agreements Number of employ- 30 Apr 2013: 9 for one or more of these properties within a short period of time. ees at centres: (31 Jan 2013: 12)

The Group’s own properties under asset management comprise the following nine properties:

TKD’s ownership Project Country Type interest Floor space m2

Investment properties Futurum Hradec Králové Czech Republic Shopping centre 20 % 28,250 Galeria Tarnovia, Tarnów Poland Shopping centre 30 % 16,500

Other completed projects Sillebroen, Frederikssund Denmark Shopping centre 100 % 25,000 Fashion Arena Outlet Center, Prague Czech Republic Outlet centre 75 % 25,000 Galeria Sandecja, Nowy Sącz Poland Shopping centre 100 % 17,300 Ringsted Outlet Denmark Outlet centre 50 % 13,200 Most Retail Park Czech Republic Retail park 100 % 6,400 Aabenraa Denmark Retail park 100 % 4,200 Brønderslev Denmark Shopping-street property 100 % 2,400 Total 138,250

Management commentary | Interim Report Q1 2013/14 | Tk Development A/S | 17 /34 Asset management

The total portfolio of properties under asset management amounted to DKK 1,938.7 million at 30 April 2013 (31 January 2013: DKK 1,932.1 million), of which investment properties accounted for DKK 314.0 million (31 January 2013: DKK 312.1 million). The operation of these properties, which largely consist of shopping centres, is generally proceeding satisfactorily. The annual net rent from the current leases corresponds to a return on the carrying amount of 6.7 % (2012/13: 6.7 %). Based on full occupancy, the return on the carrying amount is expected to reach 7.9 % (2012/13: 7.9 %).

Overall, the individual centres recorded favourable development in 2012, and the positive development in both footfall and revenue has continued into 2013.

The development of the individual centres appears from pages 19-21.

Generally, TK Development’s properties have a satisfactory letting status, and the current occupancy rates are:

Futurum Hradec Králové

Galeria Tarnovia, Tarnów

Sillebroen, Frederikssund

Fashion Arena Outlet Center, Prague

Galeria Sandecja, Nowy Sącz

Ringsted Outlet

Most Retail Park

Aabenraa, retail park

Brønderslev, shopping-street property

40 % 50 % 60 % 70 % 80 % 90 % 100 %

18 /34 | Tk Development A/S | Interim Report Q1 2013/14 | Management commentary Asset management

FUTURUM HRADEC KRÁLOVÉ, CZECH REPUBLIC

Opening November 2000/May 2012 Major tenants: Cinestar, Tommy Hilfiger, H&M, New Yorker, Adidas, Re- served, Intersport, Takko Fashion, Foot Locker, Gant, C & A, Lindex, Da- Leasable area 28,250 m² tart. Occupancy rate 100 % (2012/13: 100 %) Footfall 2012 5.6 million

In 2012, an extension of almost 10,000 m² was added to the shopping centre. In this connection the existing centre was also modernized, bringing up the number of retail stores to 110. The shopping centre is fully let and also recorded a satisfactory occupancy rate, operating profit and customer influx throughout the period under review.

GALERIA TARNOVIA, SHOPPING CENTRe, TARNÓW, POLaNd

Opening November 2009 Major tenants: H&M, New Yorker, Euro RTV AGD, Reserved, Deichmann, Douglas, Rossmann, Stradivarius, Takko Fashion, Simply Market. Leasable area 16,500 m², including a 2,000 m² supermarket Occupancy rate 95 % (2012/13: 96 %) Footfall 2012 1.8 million

Following the sale of 70 % of the centre to Heitman in December 2012, the Group’s ownership interest amounts to 30 %.

The shopping centre continues to have a satisfactory influx of customers and to perform well. Despite a slight decline in the number of visitors, the shopping centre revenue continued the positive trend of the previous year. TK Development’s focus is on enhancing the centre’s attraction value, and current initiatives are aimed at bolstering occupancy in the centre, among other things.

SILLEBROEN, SHOPPING CENTRe, FREDERIKSSUND, DENMARK

Major tenants: Kvickly, Fakta, H&M, Fona, Gina Tricot, Matas, Sport-Ma- Opening March 2010 ster, Frederikssund Isenkram, Deichmann, Vero Moda, Vila, Wagner. Leasable area 25,000 m², including 5,000 m² supermarket units Occupancy rate 92 % (2012/13: 91 %) Footfall 2012 3.0 million

In the continuing difficult economic climate with subdued private con- sumption, the centre’s footfall and revenue have showed a slight decline compared to 2012. Tenants are regularly replaced and newcomers move in to optimize the centre. In March 2013, Gina Tricot opened an outlet in the centre, and the most recent newcomer is Signal. Negotiations with tenants for several of the remaining rental units are ongoing. The centre is still being run in and matured, and continued efforts are being made to position the centre on the market. TK Development’s focus is on strengthening the occupancy and revenue levels for the centre.

Management commentary | Interim Report Q1 2013/14 | Tk Development A/S | 19 /34 Asset management

FASHION ARENA OUTLET CENTER, PRAGue, CZECH REPUBLIC

Opening November 2007/October 2010 Major tenants: Tommy Hilfiger, Nike, Adidas, Benetton, Tom Tailor, Ecco, Gant, Lacoste, Levi Strauss & Co., Esprit. Leasable area 25,000 m² Occupancy rate 96 % (2012/13: 96 %) Footfall 2012 2.2 million

In recent years, the Fashion Arena Outlet Center has truly distinguished itself as one of the outlet centres with the highest attraction value in Central Europe. Since the second phase opened in 2010, the centre has recorded a highly positive development in footfall and revenue, including a 24 % hike in revenue in 2012 compared to 2011. This positive trend in the centre’s revenue has continued into the first months of 2013.

GALERIA SANDECJA, SHOPPING CENTRe, NOWY SĄCZ, POLand

Opening October 2009 Major tenants: Carrefour, H&M, New Yorker, Reserved, Deichmann, Dou- glas, Camaieu, Carry, Euro RTV AGD. Leasable area 17,300 m², including a 5,000 m² hypermarket Occupancy rate 96 % (2012/13: 96 %) Footfall 2012 2.4 million

The operation of Galeria Sandecja is still proceeding satisfactorily. The shopping centre had a footfall of almost 2.4 million in 2012, slightly below the previous year’s figure. Nevertheless, the shopping centre’s revenue rose by about 14 % in 2012 compared to 2011. During the first months of 2013, the shopping centre’s revenue and footfall increased compared to the same period the year before.

TK Development continues its efforts to optimize the centre and is exploring various initiatives to help improve operations, footfall and occupancy.

RINGSTED OUTLET, RINGSTED, DENMARK

gacy. In terms of revenue and footfall, the centre has continued the po- Opening March 2008 sitive development from 2012 in the first months of 2013. Leasable area 13,200 m²

Occupancy rate 60 % (2012/13: 61 %) Major tenants: Hugo Boss, Nike, Puma, Diesel, G-Star Raw, Redgreen, Footfall 2012 1.1 million Ticket to Heaven, McDonald’s, Superdry, Le Creuset, Levi’s, Sparkz, Jack- pot. After a long running-in period, Ringsted Outlet has recorded pleasing progress in the past year. Despite the difficult letting situation and in- tensified competition in the Danish retail trade sector, in 2012 Ringsted Outlet recorded the highest number of visitors and the highest revenue since its opening. However, the 25 % growth in revenue should be viewed in light of the centre’s relatively low revenue the year before.

Lease agreements have been concluded with several new tenants, and a few tenants have moved out. Five new retail stores opened in spring 2013 – Sparkz, Jackpot, Saint Tropez, Superdry, and recently Nordic Le-

20 /34 | Tk Development A/S | Interim Report Q1 2013/14 | Management commentary Asset management

MOST RETAIL PARK, CZECH REPUBLIC

TK Development is developing an 8,400 m² retail park in the Czech town of Most, to be built in phases. The first phase of 6,400 m² opened in April 2009, and the current occupancy rate for this phase is 91 % (2012/13: 91 %). One vacant rental unit remains, and efforts are being made to let this unit. Management believes the vacant rental unit should be let before the project can be sold.

RETAILPARK, AABENRAA, DENMARK

TK Development has built a retail park of approx. 4,200 m² in Aabenraa. The retail park opened in September 2009 and is fully let (2012/13: 100 %), and the tenants include jem & fix, Biva, T. Hansen and Sport24.

Shopping-street property, BRØNDERSLEV, DENMARK

TK Development has developed retail stores of about 2,400 m2 in the former Føtex property at Mejlstedgade in Brønderslev. Premises have been let to Deichmann, Intersport and Fitness World. The current occupancy rate is 93 % (2012/13: 93 %).

Management commentary | Interim Report Q1 2013/14 | Tk Development A/S | 21 /34 Discontinuing activities

As described previously, Management has chosen a market terminates at the end of September 2013. The office is expect- focus that targets the countries expected to contribute with ed to close down in autumn 2013. long-term, profitable operations in future. This means that the Group will phase out its activities in Finland, Germany, the Bal- Finland tic States and Russia. The phase-out, which will result in office The Group’s activities in Finland are fairly limited and, apart from closures and employee dismissals, will be carried out as soon a few project opportunities, comprise the projects listed below. as possible, while taking into account that all the countries in question have projects that need to be handled so as to retain Project City/town Segment Floor space (m²) as much of the value of the existing portfolio as possible. Pirkkala Retail Park, phase II Tammerfors Retail 5,400 Kaarina Retail Park Turku Retail 6,600

Discontinuing activities Efforts will be made to phase out the activities in the course Countries: Germany, Finland, Lithuania, Latvia and Russia of the current financial year. With the exception of the country Revenue: Q1 2013/14: DKK 3.4 million manager, the employees have been given notice and will leave (Q1 2012/13: DKK 3.2 million) the company in mid-2013. The office is expected to close down Gross profit/loss: Q1 2013/14: DKK -0.1 million in 2013/14. (Q1 2012/13: DKK 2.0 million)

Balance sheet total: 30 Apr 2013: DKK 426.8 million Baltic States (31 Jan 2013: DKK 425.4 million) The Group’s Baltic activities comprise the following projects: Number of employees: 30 Apr 2013: 11 (31 Jan 2013: 11) Project City/town Segment Floor space (m²) DomusPro Retail Park Vilnius (LT) Retail 11,100 The results for the discontinuing activities before tax amount- Milgravja Street Riga (LV) Residential 10,400 ed to DKK -3.8 million in Q1 2013/14 against DKK -2.3 million in Ulmana Retail Park Riga (LV) Retail 12,500 Q1 2012/13. The value adjustments of the German investment properties amounted to DKK 0.0 million in Q1 2013/14. DomusPro Retail Park, Vilnius, Lithuania TK Development owns a plot of land in Vilnius reserved for build- Germany ing an 11,100 m² retail park. Constructive dialogue has been es- The Group has four investment properties left in Germany: a tablished with potential tenants, and binding lease agreements combined commercial and residential rental property in Lüden- have been signed for about 54 % of the premises (2012/13: scheid in western Germany and three residential rental prop- about 53 %). TK Development intends to execute this project to erties on the outskirts of Berlin. An agreement regarding the best harness its inherent values. The plan is to build the project sale of one of the Group’s residential rental properties has been in two phases. Construction of the first phase, of which 80 % concluded, with the handover taking place after the reporting has been let, is expected to start in mid-2013 as opposed to date. Management considers it essential to downscale the Ger- the previously expected startup date in spring 2013. Negotia- man activities. tions with potential investors for the project are ongoing.

At 30 April 2013, the value of these properties was DKK 167.2 Efforts will be made to phase out the remaining activities in the million. The valuation of the properties has been based on a course of the current financial year. required rate of return of 6.5 % p.a. calculated on the basis of a discounted cash-flow model over a ten-year period, with the Russia terminal value being recognized in year ten. In the cases where The Group owns a minor project in Moscow, consisting of Scan- sales negotiations are ongoing with potential investors, these dinavian-style dwellings that are used for rental, mainly to in- negotiations form the basis for the valuation. ternational company employees stationed in Moscow. Efforts will be made to sell this project. In addition to these investment properties, the Group owns a share of a minor shopping centre and a few plots of land.

The employees have been given notice and their employment

22 /34 | Tk Development A/S | Interim Report Q1 2013/14 | Management commentary Other matters

The Board OF DIRECTORS The Board of Directors is composed of six members elected by the General Meeting. At the Company’s Annual General Meet- ing in May 2013, Niels Roth, Peter Thorsen and Per Søndergaard Pedersen were re-elected to the Board of Directors. Moreover, three new members were appointed to the Company’s Board of Directors. The newly elected members are Arne Gerlyng-Han- sen, CEO of Harald Nyborg A/S, Morten Astrup, founding part- ner and CIO of Storm Capital Management Ltd., London, and Kim Mikkelsen, CEO of Strategic Capital ApS. After the Annual Gen- eral Meeting, a meeting was held for the purpose of electing of- ficers, with Niels Roth being elected as the Chairman, and Peter Thorsen being elected as the Deputy Chairman of the Board of Directors.

Transactions with related parties No significant or unusual transactions were made with related parties in the first quarter of the 2013/14 financial year other than interest payments on project finance loans granted by a number of major shareholders, including members of Manage- ment. As regards transactions with related parties, reference is made to note 7 in the Interim Report.

FINANCIAL TARGETS To provide for sufficient future financial resources, Manage- ment has adopted a liquidity target for the whole Group. More- over, Management’s target is to have a solvency ratio of about 40 % at group level, calculated as the ratio of equity to total assets.

The Group has undertaken a commitment towards its main banker to meet a liquidity target and a solvency target. Both targets were met during the period under review.

Other matters For a more detailed review of other matters relating to the Group, including risk issues, reference is made to the Group’s Annual Report for 2012/13, which is available at the Company’s website: www.tk-development.com

Management commentary | Interim Report Q1 2013/14 | Tk Development A/S | 23 /34 Statement by the Board of Directors and Executive Board on the Interim Report

The Board of Directors and Executive Board have today consid- Moreover, we consider the Management’s review to give a fair ered and adopted the Interim Report of TK Development A/S presentation of the development in the Group’s activities and for the period from 1 February to 30 April 2013. financial affairs, the results for the period and the Group’s overall financial position, as well as a true and fair description of The Interim Report, which has not been audited or reviewed by the most significant risks and elements of uncertainty faced the Company’s auditors, is presented in accordance with IAS by the Group. 34, Interim Financial Reporting, as adopted by the EU, and Dan- ish disclosure requirements for listed companies.

In our opinion, the Interim Report gives a true and fair view of the Group’s financial position at 30 April 2013 and of the results of the Group’s operations and cash flows for the period from 1 February to 30 April 2013.

Aalborg, 21 June 2013

EXECUTIVE BOARD

Frede Clausen Robert Andersen President and CEO Executive Vice President

BOARD OF DIRECTORS

Niels Roth Peter Thorsen Chairman Deputy Chairman

Per Søndergaard Pedersen Arne Gerlyng-Hansen

Kim Mikkelsen Morten Astrup

24 /34 | Tk Development A/S | Interim Report Q1 2013/14 | Statement by the Board of directors and Executive Board Consolidated financial statements

Income statement

Q1 Q1 Full year DKKm Note 2013/14 2012/13 2012/13

Net revenue 131.6 54.7 632.3 External direct project costs 2 -101.0 -15.0 -734.0 Value adjustment of investment properties, net 1.6 -0.3 -37.8 Gross profit/loss 32.2 39.4 -139.5

Other external expenses 6.6 8.0 30.2 Staff costs 16.6 18.7 69.2 Total 23.2 26.7 99.4

Profit/loss before financing and depreciation 9.0 12.7 -238.9 Depreciation and impairment of non-current assets 0.5 0.6 2.2 Operating profit/loss 8.5 12.1 -241.1

Income from investments in associates 0.4 0.1 2.5 Financial income 1.2 1.4 5.6 Financial expenses -29.1 -20.5 -93.0 Total -27.5 -19.0 -84.9

Profit/loss before tax -19.0 -6.9 -326.0 Tax on profit/loss for the period -2.8 148.0 167.3 Profit/loss for the period -16.2 -154.9 -493.3

Earnings per share in DKK

Earnings per share (EPS) of nom. DKK 15 -0.4 -3.7 -11.7 Diluted earnings per share (EPS-D) of nom. DKK 15 -0.4 -3.7 -11.7

Comprehensive income statement

Profit/loss for the period -16.2 -154.9 -493.3

Items that may be re-classified to profit/loss: Foreign-exchange adjustments, foreign operations 0.7 7.1 6.1 Tax on foreign-exchange adjustments, foreign operations -0.8 -4.1 -2.9 Value adjustment of hedging instruments -3.3 0.9 3.1 Tax on value adjustment of hedging instruments 0.6 -0.2 -0.6 Other comprehensive income for the period -2.8 3.7 5.7

Comprehensive income for the period -19.0 -151.2 -487.6

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BALANCE sheet

DKKm Note 30 Apr 2013 31 Jan 2013 30 Apr 2012

ASSETS

Non-current assets

Goodwill 33.3 33.3 33.3 Intangible assets 33.3 33.3 33.3

Investment properties 481.2 479.4 367.8 Investment properties under construction 17.6 16.9 75.6 Other fixtures and fittings, tools and equipment 2.1 2.5 4.1 Property, plant and equipment 500.9 498.8 447.5

Investments in associates 1.9 1.7 0.3 Receivables from associates 4.6 4.6 2.5 Other securities and investments 0.8 0.8 1.8 Deferred tax assets 134.7 127.0 143.4 Other non-current assets 142.0 134.1 148.0

Total non-current assets 676.2 666.2 628.8

Current assets

Projects in progress or completed 3,021.9 3,030.9 3,546.6

Trade receivables 70.5 73.2 72.4 Receivables from associates 19.1 19.0 18.0 Corporate income tax receivable 1.3 4.0 0.6 Other receivables 95.9 122.4 101.9 Prepayments 22.2 22.4 23.6 Total receivables 209.0 241.0 216.5

Securities 4.0 4.3 4.0 Deposits in blocked and escrow accounts 4 19.9 35.7 42.2 Cash and cash equivalents 4 26.9 31.2 42.5

Total current assets 3,281.7 3,343.1 3,851.8

ASSETS 3,957.9 4,009.3 4,480.6

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BALANCE sheet

DKKm Note 30 Apr 2013 31 Jan 2013 30 Apr 2012

EQUITY AND LIABILITIES

Equity

Share capital 631.0 631.0 631.0 Other reserves 5 2.5 5.3 143.5 Retained earnings 737.4 753.4 951.2 Total equity 1,370.9 1,389.7 1,725.7

Liabilities

Credit institutions 101.6 102.2 37.5 Provisions 0.9 2.3 1.8 Deferred tax liabilities 36.8 35.0 32.7 Other debt 1.5 1.5 3.8 Total non-current liabilities 140.8 141.0 75.8

Credit institutions 2,158.9 2,189.1 2,341.5 Trade payables 98.8 106.3 162.9 Corporate income tax 6.1 5.0 1.8 Provisions 13.1 13.1 11.2 Other debt 158.5 150.2 148.3 Deferred income 10.8 14.9 13.4 Total current liabilities 2,446.2 2,478.6 2,679.1

Total liabilities 2,587.0 2,619.6 2,754.9

TOTAL EQUITY AND LIABILITIES 3,957.9 4,009.3 4,480.6

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Statement of changes in equity

Share Other Retained Total DKKm capital reserves earnings equity

Equity at 1 February 2012 631.0 139.8 1,105.6 1,876.4 Profit/loss for the period 0.0 0.0 -154.9 -154.9 Other comprehensive income for the period 0.0 3.7 0.0 3.7 Total comprehensive income for the period 0.0 3.7 -154.9 -151.2 Share-based payment 0.0 0.0 0.5 0.5 Equity at 30 April 2012 631.0 143.5 951.2 1,725.7

Equity at 1 February 2013 631.0 5.3 753.4 1,389.7 Profit/loss for the period 0.0 0.0 -16.2 -16.2 Other comprehensive income for the period 0.0 -2.8 0.0 -2.8 Total comprehensive income for the period 0.0 -2.8 -16.2 -19.0 Share-based payment 0.0 0.0 0.2 0.2 Equity at 30 April 2013 631.0 2.5 737.4 1,370.9

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Cash flow statement

Q1 Q1 Full year DKKm 2013/14 2012/13 2012/13

Operating profit/loss 8.5 12.1 -241.1 Adjustments for non-cash items: Value adjustment of investment properties, net -1.6 0.3 37.8 Depreciation and impairment 0.4 0.6 290.1 Share-based payment 0.2 0.4 0.9 Provisions -1.5 -1.7 0.4 Foreign-exchange adjustment -13.8 -1.5 7.5 Increase/decrease in investments in projects, etc. 29.6 -22.6 139.9 Increase/decrease in receivables 47.6 43.3 22.4 Changes in deposits on blocked and escrow accounts 15.8 3.0 9.5 Increase/decrease in payables and other debt -3.8 -5.8 -61.1 Cash flows from operating activities before net financials and tax 81.4 28.1 206.3

Interest paid, etc. -36.6 -33.4 -142.9 Interest received, etc. 1.6 1.4 4.3 Corporate income tax paid -0.3 -20.9 -22.1 Cash flows from operating activities 46.1 -24.8 45.6

Investments in equipment, fixtures and fittings `0.0 -0.2 -0.2 Sale of equipment, fixtures and fittings 0.0 0.2 0.4 Investments in investment properties -1.3 -2.9 -11.3 Sale of investment properties 0.0 0.0 17.3 Purchase of securities and investments 0.0 0.0 -0.7 Sale of securities and investments 0.3 0.1 0.9 Cash flows from investing activities -1.0 -2.8 6.4

Repayment, long-term financing 0.0 0.0 -0.7 Raising of long-term financing 0.0 3.0 13.0 Raising of project financing 2.1 34.5 149.5 Reduction of project financing/repayments, credit institutions -51.7 -22.8 -238.0 Cash flows from financing activities -49.6 14.7 -76.2

Cash flows for the period -4.5 -12.9 -24.2

Cash and cash equivalents, beginning of period 31.2 55.1 55.1 Foreign-exchange adjustment of cash and cash equivalents 0.2 0.3 0.3

Cash and cash equivalents, end of period 26.9 42.5 31.2

The figures in the cash flow statement cannot be inferred from the Consolidated Financial Statements alone.

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Page 30 Note 1. Segment information

30 Note 2. External direct project costs

31 Note 3. Share-based payment

31 Note 4. Liquidity reserves

32 Note 5. Other reserves

32 Note 6. Changes in contingent assets and contingent liabilities

33 Note 7. Transactions with related parties

33 Note 8. Financial instruments

Note 1. Segment information

The internal reporting in TK Development is split into the business units development, asset management and discontinuing activities. The segment information has been disclosed accordingly.

Asset Discontinuing DKKm Development management activities Unallocated Total

30 Apr 2013 Net revenue, external customers 95.1 33.1 3.4 0.0 131.6 Profit/loss before tax -3.6 13.4 -3.8 -25.0 -19.0 Segment assets 1,242.1 2,089.9 426.8 199.1 3,957.9 Segment liabilities 659.8 1,395.3 193.3 338.6 2,587.0

Asset Discontinuing DKKm Development management activities Unallocated Total

30 Apr 2012 Net revenue, external customers 14.5 37.0 3.2 0.0 54.7 Profit/loss before tax 6.5 16.8 -2.3 -27.9 -6.9 Segment assets 1,462.2 2,315.7 478.1 224.6 4,480.6 Segment liabilities 697.7 1,540.3 210.8 306.1 2,754.9

Note 2. External direct project costs

Q1 Q1 Full year 2013/14 2012/13 2012/13 Project costs 101.0 15.0 446.1 Impairment losses on projects in progress or completed projects 0.0 0.0 303.5 Reversal of impairment losses on projects in progress or completed projects 0.0 0.0 -15.6 External direct project costs, total 101.0 15.0 734.0

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Note 3. Share-based payment

For a more detailed description of the Group’s incentive schemes, reference is made to the Group’s 2012/13 Annual Report.

The development in outstanding warrants is shown below:

Number of warrants 30 Apr 2013 31 Jan 2013 30 Apr 2012 Outstanding warrants, beginning of year 930,315 1,707,812 1,707,812 Lapsed due to termination of employment -8,000 -16,000 0 Expired during the period 0 -761,497 0 Outstanding warrants, end of period 922,315 930,315 1,707,812

Number of warrants exercisable at the reporting date 446,315 446,315 1,207,812 Share-based payment recognized in the profit or loss (DKK million) 0.2 0.9 0.5

Note 4. Liquidity reserves

30 Apr 2013 31 Jan 2013 30 Apr 2012 The liquidity reserves break down as follows: Cash and cash equivalents 26.9 31.2 42.5 Unutilized credit facilities 21.3 3.2 11.6 Total 48.2 34.4 54.1 Deposited funds for later release 19.9 35.7 42.2 Total liquidity reserve 68.1 70.1 96.3

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Note 5. Other reserves

Reserve for Reserve for value adjust- value Reserve for ment of avail- adjustment of foreign-ex- Special able-for-sale hedging change adjust- reserve financial assets instruments ments Total Other reserves at 1 February 2012 140.2 -0.1 -3.2 2.9 139.8 Exchange-rate adjustment, foreign operations 0.0 0.0 0.0 7.1 7.1 Value adjustment of hedging instruments 0.0 0.0 0.9 0.0 0.9 Deferred tax on other comprehensive income 0.0 0.0 -0.2 -4.1 -4.3 Other comprehensive income, total 0.0 0.0 0.7 3.0 3.7

Other reserves at 30 April 2012 140.2 -0.1 -2.5 5.9 143.5

Other reserves at 1 February 2013 0.0 -0.1 -0.7 6.1 5.3 Exchange-rate adjustment, foreign operations 0.0 0.0 0.0 0.7 0.7 Value adjustment of hedging instruments 0.0 0.0 -3.3 0.0 -3.3 Deferred tax on other comprehensive income 0.0 0.0 0.6 -0.8 -0.2 Other comprehensive income, total 0.0 0.0 -2.7 -0.1 -2.8

Other reserves at 30 April 2013 0.0 -0.1 -3.4 6.0 2.5

Other reserves amounted to DKK 140.2 million at 30 April 2012 and concerned a special fund that arose in connection with the capital reduction implemented in August 2010, when the denomination of the Group’s shares was changed from DKK 20 to DKK 15. This reserve can be used only following a resolution passed at the General Meeting. At the Company’s Annual General Meet- ing on 24 May 2012, the proposal to transfer the special reserve of DKK 140.2 million to distributable reserves was adopted. The transfer was made in Q2 2012/13.

The reserve for value adjustment of financial assets available for sale comprises the accumulated net change in the fair value of financial assets classified as available for sale. The reserve is dissolved as the relevant financial assets are sold or expire.

The reserve for value adjustment of hedging instruments comprises unrealized losses on forward-exchange transactions and interest-rate hedging transactions concluded to hedge future transactions.

The reserve for foreign-exchange adjustments comprises all foreign-exchange adjustments arising on the translation of financial statements for enterprises with a functional currency other than Danish kroner; foreign-exchange adjustments relating to assets and liabilities that are part of the Group’s net investment in such enterprises; and foreign-exchange adjustments relating to any hedging transactions that hedge the Group’s net investment in such enterprises. On the sale or winding-up of subsidiaries, the accumulated foreign-exchange adjustments recognized in other comprehensive income in respect of the relevant subsidiary are transferred to the profit or loss.

Note 6. Changes in contingent assets and contingent liabilities

There have been no significant changes in the Group’s contingent assets and contingent liabilities since the most recently pub- lished Annual Report.

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Note 7. Transactions with related parties

The Company has no related parties with a controlling interest.

The Company has the following related parties: - Board of Directors and Executive Board (and their related parties) - Joint ventures and associates.

30 Apr 2013 31 Jan 2013 30 Apr 2012

Board of Directors and Executive Board (and their related parties) Holding of shares, in terms of number (balance) 2,840,251 1,940,251 1,525,061 Obligation towards Executive Board, employee bonds (balance) 1.5 1.5 1.5 Fees for Board of Directors 0.4 1.8 0.4 Salaries, Executive Board 1.4 6.2 1.4 Share-based payment, Executive Board 0.0 0.0 0.1 Interest expenses, project finance loans from Board of Directors and Executive Board 0.5 0.4 0.0 Project finance loans from Board of Directors and Executive Board (balance) 21.7 21.7 0.0 Accrued interests, project finance loans from Board of Directors and Executive Board (balance) 0.2 0.3 0.0

Joint ventures Fees from joint ventures 0.5 1.5 0.5 Interest income from joint ventures 0.7 2.5 0.6 Interest expenses to joint ventures -0.7 -1.3 -0.3 Receivables from joint ventures (balance) 76.0 46.2 72.6 Payables to joint ventures (balance) 95.8 88.4 89.0

Associates Interest income from associates 0.1 0.4 1.0 Receivables from associates (balance) 23.7 23.6 20.5

The Group has taken out second mortgages on two projects of DKK 5 million each as security for project finance loans granted by the Board of Directors and the Executive Board. Moreover, as security for the total project finance loans granted by a group of the Company’s major shareholders, of which the share granted by the Board of Directors and the Executive Board amounts to DKK 21.7 million, the Group has granted a mortgage of DKK 70 million on the land for the project to be financed by the loans.

Receivables and payables are settled by payment in cash. No losses were realized on receivables from related parties. In Q1 2013/14 no impairment was made to provide for any probable losses (Q1 2012/13: DKK 0.0 million).

Note 8. Financial instruments

TK Development has no significant financial instruments that are measured at fair value.

During the period under review, no changes were made to the classification within the fair-value hierarchy. There have been no changes in the Group’s situation or the financial markets that materially affect the disclosures regarding financial instruments measured at fair value as appearing from the Group’s Annual Report for 2012/13.

Consolidated financial statements | Interim Report Q1 2013/14 | Tk Development A/S | 33 /34 Company information

TK Development A/S The Group’s mission The overall mission of TK Development is to create added value CVR no.: by developing real property. The Group is a development and 24256782 service enterprise specialising in being the productive and crea- tive liaison between tenants and investors. ISIN code: DK0010258995 (TKDV)

Municipality of registered office: Aalborg, Denmark

Website: www.tk-development.com

e-mail: [email protected]

Executive Board: Frede Clausen and Robert Andersen

Board of Directors: Niels Roth, Peter Thorsen, Per Sønder- gaard Pedersen, Arne Gerlyng-Hansen, Kim Mikkelsen and Morten Astrup. Helsinki Uudenmaankatu 7, 4. FIN-00 120 Helsinki T: (+358) 103 213 110

Aalborg Vestre Havnepromenade 7 Stockholm DK-9000 Aalborg Gamla Brogatan 36-38 T: (+45) 8896 1010 S-101 27 Stockholm T: (+46) 8 751 37 30

Copenhagen Vilnius Islands Brygge 43 Gynėjų str. 16 DK-2300 Copenhagen S LT-01109 Vilnius T: (+45) 3336 0170 T: (+370) 5231 2222

Berlin Warsaw Ahornstraße 16 ul. Mszczonowska 2 D-14163 Berlin PL-02-337 Warsaw T: (+49) 30 802 10 21 T: (+48) 22 572 2910

Prague Karolinská 650/1 CZ-186 00 Prague 8 T: (+420) 2 8401 1010

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