Israel Land Development : MLP GROUP S.A. GROUP CONSOLIDATED QUARTERLY REPORT FOR THE THREE MONTHS ENDED 31 MARCH 2024

MLP GROUP S.A. GROUP CONSOLIDATED

QUARTERLY REPORT

FOR THE THREE MONTHS ENDED 31 MARCH 2024

oprequired under the laws of a non published by issuers of securities and conditions for recognition as equivalent of information whose disclosure is published pursuant to Par. 60.1.1 of the Minister of Finance's Regulation on current and periodic information to be member state, dated 29 March 2018 (Dz. U. of 2018, item 757)

This document is a translation. Polish version prevails.

www.mlpgroup.com

MLP Group S.A. Group

Consolidated quarterly report for the three months ended 31 March 2024

(all data in PLN thousand, unless stated otherwise)

Contents:

I. Selected financial data of the MLP Group S.A. Group	5
II. Condensed consolidated financial statements of the MLP Group S.A. Group for	7
the three months ended 31 March 2024
Authorisation of the condensed consolidated financial statements for issue	8
Condensed consolidated statement of profit or loss and other comprehensive income	9
Condensed consolidated statement of financial position	10
Condensed consolidated statement of cash flows	11
Condensed consolidated statement of changes in equity	12
Notes to the condensed consolidated financial statements	13
1. General information	13

1. The Parent
2. The Group
3. Changes in the Group
4. Shareholding structure of the Parent

1.4. 1 Shareholders holding, directly or through subsidiaries, 5% or more of total voting rights in the Company

1.4. 2 Shares and rights to shares of the Parent held by members of management and supervisory bodies

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2. Basis of accounting used in preparing the condensed consolidated financial statements

1. Statement of compliance
2. Status of standards approval in the European Union

2.2. 1 Issued standards and interpretations which are not yet effective and have not been adopted early by the Group

1. Basis of accounting used in preparing the condensed consolidated financial statements
2. Functional currency and presentation currency of the financial statements; rules applied to translate financial data

1. 1. 1 Functional currency and presentation currency
   1. 2 Rules applied to translate financial data
      2.5 Use of estimates and judgements
2. Segment reporting
3. Revenue
4. Other income
5. Other expenses
6. Distribution costs and administrative expenses

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MLP Group S.A. Group

Consolidated quarterly report for the three months ended 31 March 2024

(all data in PLN thousand, unless stated otherwise)

8.	Finance income and costs	24
9.	Income tax	24
10.	Property, plant and equipment	26
11.	Investment property	28
	11.1	Fair value of the Group's investment property	30
12.	Deferred tax	31
13.	Investments and other investments	33
	13.1	Change in financial assets attributable to financing and other activities	33
14.	Other non-current assets	34
15.	Trade and other receivables	34
16.	Cash and cash equivalents	35
17.	Notes to the condensed consolidated statement of cash flows	36
	17.1	Cash flows from borrowings	36
	17.2	Change in receivables	37
	17.3	Change in current and other liabilities	37
18.	Equity		37
	18.1	Share capital	37
19.	Earnings and dividend per share	38
20.	Liabilities under borrowings and other debt instruments, and other liabilities	38
	20.1	Non-current liabilities	38
	20.2	Current liabilities	39
	20.3	Change in financial liabilities attributable to financing and other activities	40
	20.4	Liabilities under bonds	42
	20.5	Borrowings secured and not secured with the Group's assets	43
21.	Employee benefit obligations	45
22.	Trade and other payables	45
23.	Financial instruments	46
	23.1	Measurement of financial instruments	46
	23.1. 1	Financial assets	47
	23.1. 2	Financial liabilities	48
	23.2	Other disclosures relating to financial instruments	48
24.	Contingent liabilities and security instruments	49
25.	Related-party transactions	49
	25.1	Trade and other receivables and payables	49
	25.2	Loans and borrowings	50
	25.3	Income and expenses	50
26.	Significant litigation and disputes	51
27.	Significant events during and subsequent to the reporting period	52
	27.1	Impact of the political and economic situation in Ukraine on the operations of the MLP Group	53
		S.A. Group
28.	Remuneration paid or due to members of management and supervisory bodies	54
29.	Employees	55

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MLP Group S.A. Group

Consolidated quarterly report for the three months ended 31 March 2024

(all data in PLN thousand, unless stated otherwise)

III. Notes to the consolidated quarterly report of the MLP Group S.A. Group	56
1. Issue, redemption, cancellation and repayment of non-equity and equity securities	56
2. Management Board's position on published forecasts	56
3. Material achievements and failures in the three months ended 31 March 2024	56
4. Seasonality and cyclicality	56
5. Information material for the assessment of the human resources, assets, financial condition and financial	56
	results of the Group, or changes in any of the foregoing, and information material for the assessment of
	the Group's ability to meet its liabilities and fulfil its obligations
6. Factors which in the Management Board's opinion will affect the Group's performance in the next quarter	63
	or in a longer term
IV. Quarterly financial information of MLP Group S.A., with notes	64
Condensed separate statement of profit or loss and other comprehensive income	64
Condensed separate statement of financial position	65
Condensed separate statement of cash flows	66
Condensed separate statement of changes in equity	67
Notes to the condensed financial statements of MLP Group S.A.	68
1.	Non-current financial assets in related entities	68
	1.1	Shares	68
2.	Long-term financial investments	70
3.	Trade and other receivables	70
4.	Cash and cash equivalents	70
5.	Borrowings, other debt instruments and other liabilities	71
	5.1	Non-current liabilities	71
	5.2	Current liabilities	71
6.	Trade and other payables	71
7.	Revenue		72
8.	Distribution costs and administrative expenses	72
9.	Finance income and costs	72
10.	Related-party transactions	73
	10.1 Trade and other receivables and payables	73
	10.2	Loans and borrowings	75
	10.3	Income and expenses	79
11.	Variable remuneration and remuneration paid to members of management and supervisory	83
	bodies
12.	Employees	84

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MLP Group S.A. Group

Consolidated quarterly report for the three months ended 31 March 2024

(all data in PLN thousand, unless stated otherwise)

I. Selected financial data of the MLP Group S.A. Group

Average exchange rates of the Polish złoty against the euro during the reporting period:
	31 March	31 December	31 March
	2024	2023	2023
Average mid exchange rate during the reporting period*	4,3211	4,5284	4,7005
Mid exchange rate on the last day of the reporting period	4,3009	4,3480	4,6755

* Arithmetic mean of the mid exchange rates effective on the last day of each month in the reporting period.

Key items of the condensed consolidated statement of financial position translated into the euro:

as at	31 March 2024	31 December 2023
	PLN thousand	EUR thousand	PLN thousand	EUR thousand
	(unaudited)	(unaudited)
Non-current assets	4 720 348	1 097 526	4 667 657	1 073 518
Current assets	481 945	112 057	421 971	97 049
Total assets	5 202 293	1 209 583	5 089 628	1 170 567
Non-current liabilities	2 307 754	536 575	2 351 692	540 867
Current liabilities	481 915	112 050	342 308	78 728
Equity, including:	2 412 624	560 958	2 395 628	550 972
Share capital	5 999	1 395	5 999	1 380
Total equity and liabilities	5 202 293	1 209 583	5 089 628	1 170 567
Number of shares	23 994 982	23 994 982	23 994 982	23 994 982
Book value per share and diluted book value per	100,55	23,38	99,84	22,96
share attributable to owners of the parent (PLN)

The data in the condensed consolidated statement of financial position was translated at the mid exchange rate quoted by the National Bank of Poland for the last day of the reporting period.

Key items of the condensed consolidated statement of profit or loss and other comprehensive income translated into the euro:

for the three months ended 31 March	2024	2023
	PLN thousand	EUR thousand	PLN thousand	EUR thousand
	(unaudited)	(unaudited)	restated	restated
Rental income*	54 840	12 691	48 896	10 402
Revenue from property management services*	41 357	9 571	45 812	9 746
Other income	4 101	949	466	99
Gain/(loss) on revaluation of investment property	(23 679)	(5 480)	(10 305)	(2 192)
Costs of self-provided property management	(38 430)	(8 894)	(37 436)	(7 964)
services*
Selling, general and administrative expenses*	(10 291)	(2 382)	(9 697)	(2 063)
Operating profit/(loss)	26 294	6 085	37 490	7 976
Profit/(loss) before tax	22 836	5 285	26 086	5 550
Net profit/(loss)	16 225	3 755	26 148	5 563

Total comprehensive income

Net profit/ (loss) attributable to owners of the parent

Earnings per share and diluted earnings per share attributable to owners of the parent (PLN)

16 991	3 932	18 503	3 936
16 225	3 755	26 148	5 563
0,68	0,15	1,09	0,23

* Transformed data

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MLP Group S.A. Group

Consolidated quarterly report for the three months ended 31 March 2024

(all data in PLN thousand, unless stated otherwise)

The data in the condensed consolidated statement of profit or loss and other comprehensive income was translated at the mid exchange rate of the euro calculated as the arithmetic mean of the mid exchange rates quoted by the National Bank of Poland for the last day of each month in the reporting period.

Key items of the condensed consolidated statement of cash flows translated into the euro:

for the three months ended 31 March	2024	2023
	PLN thousand	EUR thousand	PLN thousand	EUR thousand
	(unaudited)	(unaudited)	(unaudited)	(unaudited)
Net cash from operating activities	47 267	10 939	43 416	9 236
Cash from investing activities	(72 820)	(16 852)	(113 201)	(24 083)
Cash from financing activities	95 444	22 088	117 816	25 065
Total cash flows, net of exchange differences	69 891	16 175	48 031	10 218
Total cash flows	73 176	16 935	51 316	10 917

The data in the condensed consolidated statement of cash flows was translated at the mid exchange rate of the euro calculated as the arithmetic mean of the mid exchange rates quoted by the National Bank of Poland for the last day of each month in the reporting period.

as at	31 March 2024	31 December 2023
	PLN thousand	EUR thousand	PLN thousand	EUR thousand
	(unaudited)	(unaudited)
Cash at beginning of period	344 247	79 174	315 200	72 493
Cash at end of period	417 423	97 055	344 247	79 174

The following exchange rates were used to translate the data from the condensed consolidated statement of cash flows:

Cash at end of period - the mid exchange rate quoted by the National Bank of Poland (NBP) for the last day in the reporting period

Cash at beginning of period - the mid exchange rate quoted by the National Bank of Poland (NBP) for the last day of the period preceding the reporting period.

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MLP Group S.A.

Group

CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

for the three months ended 31 March 2024

prepared in accordance with EU IFRS

MLP Group S.A. Group

Consolidated quarterly report for the three months ended 31 March 2024

Condensed consolidated financial statements for the three months ended 31 March 2024 (all data in PLN thousand, unless stated otherwise)

II. Condensed consolidated financial statements

Authorisation of the condensed consolidated financial statements for issue

On 20 May 2024, the Management Board of the Parent, i.e., MLP Group S.A., authorised for issue the condensed consolidated financial statements (the "consolidated financial statements") of the MLP Group S.A. Group (the "Group") for the period from 1 January to 31 March 2024.

The condensed consolidated financial statements for the period from 1 January to 31 March 2024 have been prepared in accordance with International Financial Reporting Standards as approved by the European Union ("EU IFRS"). In this report, information is presented in the following sequence:

1. Condensed consolidated statement of profit or loss and other comprehensive income for the period from 1 January to 31 March 2024, showing a net profit of PLN 16,225 thousand.
2. Condensed consolidated statement of financial position as at 31 March 2024, showing total assets and total equity and liabilities of PLN 5,202,293 thousand.
3. Condensed consolidated statement of cash flows for the period from 1 January to 31 March 2024, showing a net increase in cash of PLN 73,176 thousand.
4. Condensed consolidated statement of changes in equity for the period from 1 January to 31 March 2024, showing an increase in consolidated equity of PLN 16,996 thousand.
5. Notes to the condensed consolidated financial statements.

These condensed consolidated financial statements have been prepared in thousands of PLN, unless stated otherwise.

Signed by the Management Board with qualified digital signatures.

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MLP Group S.A. Group

Consolidated quarterly report for the three months ended 31 March 2024

Condensed consolidated financial statements for the three months ended 31 March 2024 (all data in PLN thousand, unless stated otherwise)

Condensed consolidated statement of profit or loss and other comprehensive

income

for the three months ended 31 March	Note	2024	2023
		(unaudited)	(unaudited)
Rental income*	4	54 840	48 896
Revenue from property management services*	4	41 357	45 812
Costs of self-provided property management services*	7	(38 430)	(37 436)
Gross operating profit/(loss)*		57 767	57 272
Selling, general and administrative expenses*	7	(10 291)	(9 697)
Gain/(loss) on revaluation of investment property		(23 679)	(10 305)
Other income	5	4 101	466
Other expenses	6	(1 604)	(246)
Operating profit/(loss)		26 294	37 490
Finance income	8	21 383	4 889
Finance costs	8	(24 841)	(16 293)
Net finance income/(costs)		(3 458)	(11 404)
Profit/(loss) before tax		22 836	26 085
Income tax	9	(6 611)	62
Net profit/(loss)		16 225	26 148
Net profit/(loss) attributable to:
Owners of the parent		16 225	26 148

Other comprehensive income that will be reclassified to profit or loss

Exchange differences on translation of foreign operations

Effective portion of changes in fair value of cash flow hedges

Other comprehensive income that will be reclassified to profit or loss, before tax

Other comprehensive income, gross

Income tax on other comprehensive income that will be reclassified to

profit or loss

(1 613)	(609)
2 876	(8 686)
1 263	(9 295)
1 263	(9 295)

1. 1 650

Other comprehensive income, net	771	(7 645)
Total comprehensive income	16 996	18 503
Comprehensive income attributable to:
Owners of the parent	16 996	18 503
Earnings per share	19
Earnings per ordinary share:
- Earnings per ordinary share	0,68	1,09
Diluted earnings per ordinary share:
- Diluted earnings per ordinary share	0,68	1,09

• For information on presentation changes relative to the Group's condensed consolidated financial statements for the three months ended 31 March 2023, see Note 7.

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MLP Group S.A. Group

Consolidated quarterly report for the three months ended 31 March 2024

Condensed consolidated financial statements for the three months ended 31 March 2024 (all data in PLN thousand, unless stated otherwise)

Condensed consolidated statement of financial position

as at	Note	31 March	31 December
	2024	2023
		(unaudited)
Non-current assets
Property, plant and equipment	10	24 768	24 683
Intangible assets		83	94
Investment property	11	4 589 894	4 541 505
Other long-term financial investments	13	94 088	87 481
Other non-current assets	14	5 245	7 853
Deferred tax assets	12	6 270	6 041
Total non-current assets		4 720 348	4 667 657
Current assets
Inventories		846	504
Short-term investments	13	1 246	1 722
Income tax receivable	15	3 558	2 573
Trade and other receivables	15	50 496	64 315
Other short-term investments	13	8 376	8 610
Cash and cash equivalents	16	417 423	344 247
Total current assets		481 945	421 971
TOTAL ASSETS		5 202 293	5 089 628
Equity	18
Share capital		5 999	5 999
Share premium		485 312	485 312
Cash flow hedge reserve		27 023	24 639
Translation reserve		(10 727)	(9 114)
Retained earnings, including:		1 905 017	1 888 792
Capital reserve		83 542	83 542
Statutory reserve funds		168 129	168 129
Profit/(loss) brought forward		1 637 121	1 689 179
Net profit/(loss)		16 225	(52 058)
Equity attributable to owners of the parent		2 412 624	2 395 628
Total equity		2 412 624	2 395 628
Non-current liabilities
Borrowings, other debt instruments and other liabilities	20.1	1 856 067	1 907 605
Deferred tax liability	12	369 630	365 113
Other non-current liabilities	20.1	82 057	78 974
Total non-current liabilities		2 307 754	2 351 692
Current liabilities
Borrowings, other debt instruments and other liabilities	20.2	347 216	206 080
Employee benefit obligations	21	1 842	389
Income tax payable	22	7 201	8 375
Trade and other payables	22	125 656	127 464
Current liabilities other than held for sale		481 915	342 308
Total current liabilities		481 915	342 308
Total liabilities		2 789 669	2 694 000
TOTAL EQUITY AND LIABILITIES		5 202 293	5 089 628

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