Report 3/2019


Current report No. 3/2019 dated February 13, 2019

Conclusion by the subsidiary of a lease contract for office space

Legal basis: art. 17 sec. MAR 1

Contents of the report:

The Management Board of Wirtualna Polska Holding SA ("Company") hereby informs that it learned about the conclusion on February 12, 2019 by a subsidiary, ie Wirtualna Polska Media S.A. with its registered office in Warsaw ("the Lessee") of the lease agreement ("Agreement") with VASTINT POLAND Sp. z o.o. with headquarters in Warsaw ("the Lessor").

The subject of the Agreement is the lease of office space located in the Warsaw Business Garden office complex at ul. Żwirki i Wigury 16 in Warsaw for the purpose of running a business activity by the Lessee ("Lease Object").

The Lease Agreement was concluded for a period of 7 years starting from January 15, 2020 ("Lease Period").

The total estimated value of the Lessee's benefits (excluding indexing costs) during the Lease Period (expressed in EUR and exchanged at the average exchange rate announced by the National Bank of Poland on the day preceding the Agreement conclusion day) will amount to PLN 41 million. Starting from March 1, 2021, the Lessor will be entitled to make an annual indexation of fees paid by the Lessee based on the average annual rate of change specified for all European Union countries by the HICP.

The contract was concluded on market terms commonly used for this type of contracts.

Due to the earlier termination of usage of the Oxygen Park building at ul. Jutrzenki 137a in Warsaw, the Group will recognize in 2019 a maximum of PLN 1.5m of additional one-off costs of amortizing the right to use existing office space resulting from financial leasing recognized in accordance with IFRS 16 effective as of January 1, 2019. In addition, the Group will also accelerate depreciation of expenditures incurred for adaptation of the existing office space, which will result in an increase in depreciation of improvements in foreign fixed assets in 2019 by approx. PLN 1 million.

Legal basis: Article 17 para. 1 of Regulation No. 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (regulation on market abuse) and repealing Directive 2003/6 / EC of the European Parliament and of the Council and Commission Directive 2003/124 / EC , 2003/125 / EC and 2004/72 / EC

Signatures of persons representing the company:
Jacek Świderski - President of the Board,
Elżbieta Bujniewicz - Belka - Member of the Board for financial affairs of the Company