Q RESULTS AND OUTLOOK. Warsaw, 28 th November 2018

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2 Q RESULTS AND OUTLOOK Warsaw, 28 th Nvember 2018

3 Disclaimer Neither this presentatin (the Presentatin ), nr any cpy f it, nr the infrmatin cntained herein is being issued r may be distributed directly r indirectly t r int the United States, Canada, Australia r Japan. This Presentatin has been prepared by Ech Investment S.A. (the Cmpany ) slely fr infrmatinal purpses and des nt cnstitute r frm part f, and shuld nt be cnstrued as, an ffer, slicitatin r invitatin t subscribe fr, underwrite r therwise acquire, any securities f the Cmpany r any member f its grup (the Grup ) in any jurisdictin, including Pland and the United States, nr shuld it r any part f it frm the basis f, r be relied n in cnnectin with, any cntract t purchase r subscribe fr any securities f the Cmpany r any member f its Grup, r any ther cntract r cmmitment whatsever. This Presentatin des nt cnstitute a recmmendatin r legal, tax, accunting r investment advice regarding any securities f the Cmpany r its Grup. We recmmend that the recipient seek independent third party legal, regulatry, accunting and tax advice regarding the cntents f this dcument. The infrmatin cntained in the Presentatin des nt purprt t be cmprehensive and has nt been independently verified. T the extent permitted by law, n representatin, warranty r undertaking, expressed r implied, is made as t, and n reliance shuld be placed n, the fairness, accuracy, cmpleteness r crrectness f the infrmatin r the pinins cntained herein. This Presentatin cntains certain frward-lking statements. Frwardlking statements are generally identifiable by the use f certain wrds, including but nt limited t: may, will, shuld, plan, expect, anticipate, estimate, believe, intend, prject, gal r target r the negative f these wrds r ther variatins n these wrds r cmparable terminlgy r refer t infrmatin relating t the current year and the future. Frward-lking statements are based n current expectatins and assumptins and invlve a number f knwn and unknwn risks, uncertainties and ther factrs that culd cause the Cmpany s r its industry s actual financial cnditin, results f peratins r perfrmance t be materially different frm any future financial cnditin, results f peratins r perfrmance expressed r implied by such frward-lking statements. Yu shuld nt place undue reliance n frward-lking statements and t the extent permitted by the applicable laws, the Cmpany des nt undertake t publicly update r revise any frward-lking statements that may be made herein, whether as a result f new infrmatin, future events r therwise. This Presentatin cntains certain statistical and market infrmatin. Such market infrmatin has been surced frm and/r calculated based n data prvided by third-party surces identified herein r by the Cmpany, if nt attributed exclusively t third-party surces. Because such market infrmatin has been prepared in part based upn estimates, assessments, adjustments and judgments which are based n the Cmpany's r thirdparty surces' experience and familiarity with the sectr in which the Cmpany perates and has nt been verified by an independent third party, such market infrmatin is t a certain degree subjective. While it is believed that such estimates, assessments, adjustments and judgments are reasnable and that the market infrmatin prepared apprpriately reflects the sectr and the market in which the Cmpany perates, there is n assurance that such estimates, assessments, adjustments and judgments are the mst apprpriate fr making determinatins relating t market infrmatin r that market infrmatin prepared by ther surces will nt differ materially frm the market infrmatin included herein. This Presentatin is nt directed t, r intended fr distributin t r use by, any persn r entity that is a citizen r resident f, r lcated in, any lcality, state, cuntry r ther jurisdictin where such distributin, publicatin, availability r use wuld be cntrary t law r applicable regulatins r which wuld require any authrisatin, registratin, ntificatin r licensing within such jurisdictin. Persns int whse pssessin this Presentatin, any part f it r ther infrmatin referred t herein cmes shuld infrm themselves abut and bserve any such restrictins. Any failure t cmply with these restrictins may cnstitute a vilatin f the securities laws f any such jurisdictin. 3

4 Agenda I. Ech Investment Key Facts II. Creating Destinatins III. Market and Prject Update Residential Office Retail IV. Financials V. Appendix

5 Ech Investment Key Facts Abut Ech Investment Szczecin Tricity 22 years f experience 150 cmpleted prjects Pznan Ldz Warsaw 1,500,000 sqm - ttal area f cmpleted prjects 80 prjects under cnstructin and in preparatin Wrclaw Katwice Kielce 1,100,000 sqm - ttal area f prjects currently under cnstructin and in preparatin 7.5 bn PLN - ttal budget f 50 prjects under cnstructin and in advanced preparatin Cracw HQ Cities with prjects under cnstructin/in preparatin Cities with cmpleted prjects 5

6 Ech Investment Key Facts The Management Bard f Ech Investment S.A. Nicklas Lindberg President f the Bard CEO Maciej Drzd Vice-President f the Bard CFO Pitr Grmniak Vice-President f the Bard Artur Langner Vice-President f the Bard Marcin Materny Member f the Bard Rafał Mazurczak Member f the Bard Waldemar Olbryk Member f the Bard 6

7 Ech Investment Key Facts Strategy f Ech Investment Grup Sharehlding structure PIMCO-Oaktree-Griffin RE 55,96% Natinale- Nederlanden OFE 12,45% Fcus n Pland We buy land plts nly in Pland s majr cities Divestment f nncre assets substantially cmpleted Leadership psitin Retentin f leadership n ffice and retail markets A tp 10 residential develper in Pland Achieving balance f risk & return Exit rute fr cmmercial prperties under cnstructin t ptimize returns Mix f residential fr sale and fr rent stabilizing residential returns Partnerships Effective cperatin with reputable partners t deliver large-scale retail prjects ROFO and JV agreements Early sales t partners with a strng track recrd Destinatin prjects Launch f destinatin prjects starting with Warsaw Brewery and Mje Miejsce Purchase f plts t create mre destinatins in reginal cities Łódź, Kraków, Wrcław Others 21,44% Maciej Drzd 0,04% Nicklas Lindberg 0,11% Aviva OFE Aviva Santander 10,00% 7

8 Ech Investment Key Facts Business mdel Ech Investment runs the entire investment prcess in-huse, starting with acquisitin f plt, thrugh btaining administrative permits, financing, versight f cnstructin, leasing, active management t increase value f prperty until sale f prject. These steps are taken in mst cases thrugh the special purpse vehicles (SPV). LEASING ACTIVE PROPERTY MANAGEMENT The cre business f Ech Investment Grup falls int the fllwing categries: CONSTRUCTION cnstructin, lease, management and sale f ffice buildings, SALE cnstructin, lease, management and sale f retail buildings, cnstructin f residential apartments fr rent and fr sale DESIGN & PERMITTING CASH DIVIDEND prvisin f services (general cntractr, managing cntractr, leasing, cnsulting etc.) LAND ACQUISITION 8

9 Ech Investment Key Facts Highlights PLN 31 M f net prfit in Q3, PLN 158 M cumulatively Sale f Sagittarius Business Huse fr EUR 74.5 M Grand pening f Liber in Katwice: PLN 350 M prject f Ech Sale f 163 apartments and hand ver f 228 units Placement f PLN 50 M bnds fr individual investrs All EPP shares divested fr EUR 57 M Annuncement f advanced dividend: PLN 0.5 per share Pre-sale f Gatehuse Offices fr EUR 76.5 M 9

10 II. Creating Destinatins

11 Creating Destinatins Destinatins are the main pillar f ur strategy Ech Investment is the nly Plish develper with brad experience in residential, ffice, retail and htel sectrs. We can use it t create large, integrated parts f cities Destinatin is a mix f functins in buildings plus full public space and infrastructure, such as rads, parks, squares, green areas, street furniture Creating urban destinatins is a part f respnsibility t grw cities in a sustainable way Advantages f flexibility, risk diversificatin and ptimal utilisatin f resurces resulting in lwer acquisitin and develpment csts and shrter time t cmpletin We create friendly, pen and useful city space, where peple can live, wrk, entertain and run everyday business Our destinatins respnd t needs and trends f mdern peple: smartphnes (remte cntrl ver hme systems), sharing ecnmy (cars, bikes, washing machines), mbility (easy acces t the public transprt), urban services (laundry, package bxes, electric cars) Destinatins t becme city landmarks

12 Creating Destinatins Warsaw Brewery The whle area under cnstructin and will be ready by 2020 Gatehuse Offices (building J) cmpleted Resi4Rent under cnstructin Warsaw Brewery A, B, C 100% residential units sld Villa Offices (building K) 95% f space under lease negtiatins 12 Malthuse Offices (building G-H) cnstructin started Warsaw Brewery E great interest frm clients t buy an apartment

13 Creating Destinatins Warsaw Brewery Handver f Gatehuse Offices, tw ffice buildings under cnstructin Gatehuse Offices (Brewery J) cmpleted in December 2018 The building is 100% leased ut t L'Oréal Plska, WeWrk and Epam 16,200 sqm ffice building Villa Offices (building K) and 26,700 sqm Malthuse Offices (G-H) already under cnstructin Huge interest f tenants: advanced negtiatins t lease 95% f building K 13

14 Creating Destinatins Warsaw Brewery Gatehuse Offices sld t a fund managed by GLL Real Estate Partners fr EUR 76.5 mln Gatehuse Offices (Brewery J) cmpleted and presld t a fund managed by GLL Real Estate Partners fr EUR 76.5 mln The transactin is expected t be clsed in H The ffice space is already leased ut t L'Oréal Plska, WeWrk and Epam In December 2018 all tenants t mve in The retail space t be leased ut until the year end making 100% f the ttal space leased ut 14

15 Creating Destinatins Warsaw Brewery The first apartments cmpleted, the last residential building started Launch f sale f the last residential building Brewery E (82 units) 2018 sales plan executed in 2 weeks Apartments hand ver already started all 98 units f building A presld t clients Secnd residential building (190 units) t be handed ver in Q2/Q Restratin wrks n histrical cellars Entire area including all functins and public squares t be ready in

16 Creating Destinatins Tymienieckieg Tymienieckieg prject in Łódź t start in Q Masterplan allwing Ech t create a destinatin prject has been apprved by the City Cuncil in August ,000 sqm f residential, ffice and service space t be built Applicatin fr building permit fr the first residential building the permit expected in February 2019 Wrking n the entertainment and leisue prgram fr the whle area, including histrical buildings and pwer plant New city squares and bicycle rads cnnected t the city netwrk 16

17 Creating Destinatins Mje Miejsce First ffice building leased up t 60% by YE Destinatin prject with ffice and residential functins being created n Dlny Mktów Havas Media, City Space and ANG Spółdzielnia signed leasing agreements fr 7,000 sqm Advanced negtiatins with ther tenants - the first ffice building t be 60% leased at the year end Very gd receptin f the prject encurages Ech Investment t start 2nd phase in Q

18 Creating Destinatins Taśmwa Residential destinatin in the heart f the largest Warsaw business district Mix f apartments fr sale Osiedle Reset and Resi4Rent Direct neighburhd f the biggest business district in Warsaw with c.a. 85,000 emplyees and very limited residential ffer Psitive respnse frm buyers: 1st phase f Reset (164 units) sld in 70% a year befre cmpletin 2nd phase (253 units) started last week Resi4Rent building t be started in Q

19 III. Market and prject update Residential

20 Market and prject update Residential Residential market vlume slwing dwn but at increasing prices Average price f apartments intrduced t ffer in each quarter (PLN/sqm including VAT, shell and cre standard) Increase f average price (Q vs Q3 2017) +14.2% Warsaw +13.6% Wrcław +9.3% Łódź +7.1% Pznań +7.0% Tricity +5.2% Kraków Decrease f number f transactins in Q ,9% cmpared t Q % cmpared t Q Surce: REAS 20

21 Market and prject update Residential Residential sectr n its way t reach 2018 targets Targeted handvers and sales f apartments 950 apartments fr sale started in ,450 units t enter the ffer in 2019 including big and attractive prjects as Ordna Warsaw, Tymienieckieg Łódź Implementing new sales strategy: 80% f the apartments sld at cmpletin and the remaining apartments within 6 mnths after cmpletin 1,000 1,200 1,100 1,300 1,100 units annual sale target fr 2018 t keep margins n high level (the target cmpleted in 75% YTD) Apprximately 1,000 units t be handed ver in 2018 (the target cmpleted in 65% until Octber) Handvers Sales 21

22 Market and prject update Residential 950 apartments started in 2018 Wrcław Grta 111 Wrcław Ogrdy Graua Kraków Rydla 32 Warsaw Mje Miejsce Warsaw Brewery E Pznań Jaśminwe V Warsaw Reset II Łódź Jarzębinwe VI 22

23 Market and prject update Residential Keeping high margin n apartments: 28% in Q Recrded margin n revenues (handed ver apartments) Handvers 511 units handed ver in 2018 (Jan-Oct) Sales 786 units sld in 2018 (Jan-Oct) % in % in Q % in Q % in Q Q1 Q2 Q Q1 Q2 Q

24 Market and prject update Residential Over 1,450 apartments t be started in 2019 Starting new big prjects with 1,450 units in ttal: Tymienieckieg and Jarzębinwe VII in Łódź Ordna in Warsaw Nasze Jeżyce (Szczepanwskieg), Esencja Apartamenty (Garbary) and 18 MW in Pznań Swbdna, Wrcław The ffer t be enlarged by prjects n already secured plts i.e. in Kraków Targeting t sell 1,300 units 24

25 Market and prject update Resi4Rent The cmpany Resi4Rent already established 1 Gdańsk (294 units) Resi4Rent: current and secured lcatins The cmpany Resi4Rent set up in September 2018 Ech Investment hlds 30% stake and prvides develpment services 1 Warsaw (1,308 units) Resi4Rent has aquired frm Ech Investment fur prjects with 1,235 units fr a ttal value f PLN 339 mln under cnstructin and c-financed by Peka S.A. Anther tranche f 6 prjects (c.a.1,400 units) being prepared fr the transactin Pznań (143 units) 2 1 Łódź (211 units) 4 3 f them will be started within 6 mnths, remaining in Q4 2019/Q Resi4Rent has secured prject in Gdańsk fr anther 300 units and it als negtiates t buy plts in Warsaw and Kraków fr c.a. 1,000 units Resi4Rent t develp and perate 5,000-7,000 units by 2023, becming the largest institutinal rental platfrm in Pland Wrcław (573 units) 2 Kraków (388 units) 25

26 III. Market and prject update Office

27 Market and prject update Office Office demand higher than the supply WARSAW: LACK OF SPACE AVAILABLE NOW 635,000 sqm ttal space leased in Q1-Q % cmpared t Q1-Q ,000 sqm estimated net absrbtin in % vacancy rate, systematically falling since 2016 High demand and lack f immediately available space may cause increase f rents in the shrt-term C-wrkings became signifficant tenants amunting t 16% f the demand in Q Histrically lw sub 5% yields bserved in recent transactins REGIONAL MARKETS OUTPERFORM WARSAW 430,000 sqm f new ffice space delivered n reginal markets in Q1-Q twice as much as in Warsaw 5 mln sqm expected ffice space in reginal cities in 2019, as 805,000 sqm remain under cnstructin 421,000 sqm ttal space leased in Q1-Q3 2018: Kraków and Tricity are the mst dynamic cities 9.6% average vacancy rate: lwer than in Warsaw + 22% expected grwth f emplyment in BPO/SSC sectr until Q Rent price mst likely t grw due t high demand Surce: CBRE, JLL, ABSL 27

28 Market and prject update Office Cntinuatin f succesful ffice divestment: clsing f O3 Business Campus III in Q Symetris Business Park II Łódź Sagittarius Business Huse Wrcław Gatehuse Offices (Brewery J) Warsaw O3 Business Campus III Kraków 9,700 sqm GLA 94% f space leased t Philips Plska and Office Bistr EUR 21,4 mln - transactin price 7.5% - transactin yield Sld in Q t EPP 25,600 sqm GLA 90% leased t BNY Melln and EY EUR 74,5 mln - transactin price 6.175% - transactin yield Sld in Q t Warburg-HIH Invest 15,400 sqm GLA 100% f ffice space leased t L Oreal, Epam and WeWrk Presld t a fund manager by GLL Real Estate Partners Q targeted preliminary agreement siging 18,800 sqm GLA 30% f space leased, remaining space under advanced negtiatins Presld t EPP Q targeted clsing f the transactin 28

29 Market and prject update Office Sale f Sagittarius in Wrcław cnfirms huge ptential f reginal markets Warburg-HIH Invest becme the wner f Wrcław building fr EUR 74,5 mln The 25,600 sqm building is ver 90% ccupied by reputable tenants EY and Bank f New Yrk Melln Yield f the transactin amunted t 6.18% 29

30 Market and prject update Office Starting the secnd building f Face 2 Face in Katwice Tw-buildings ffice cmplex Face 2 Face n Grundmanna streat with 47,200 sqm GLA in ttal Cnstructin f the first building started in Q Big interests f tenants encurage Ech Investment t start the secnd building in Q half a year earlier than previusly planned 50% f space in bth buildings t be secured with tenants in Q Katwice remains ne f the mst dynamic reginal ffice markets in Pland 30

31 Market and prject update Office Starting cnstructin f 100,000 sqm f ffice space in 2019 Fur ffice prjects t be started: West 4 Business Campus I, Wrcław (14,700 sqm) Mje Miejsce, Warsaw (16,900 sqm) Slidarnści, Gdańsk (30,600 sqm) Pwstańców Śląskich, Wrcław (36,700 sqm) Cnstructin permits already btained r expected sn Very gd market cnditins encurage Ech Investment t start cnstructin wrks n early stage f leasing negtiatins Cntinuatin f leasing f Warsaw Brewery, Face 2 Face and ther prjects under cnstructin Mje Miejsce I and Face 2 Face I t be handed ver t tenants in

32 III. Market and prject update Retail

33 Market and prject update Retail Retail prjects creating mdern city hubs, destinatins attracting peple Fd and entertainment grwing frm 5% histrically t 15-20% in new centres Meeting place with attractins and center square like Liber r Galeria Młciny Warsaw remains the mst attractive retail market in Pland, with rents being three times mre expensive than in the ther majr cities New retail frmats cntaining mre service and entertainment functins displacing lder 1st and 2nd generatin schemes n the market Extentins and remdeling f lder schemes t amunt c.a. 20% f new retail space in cming years Lwer vlume f new space: c.a. 480,000 sqm t be pened in 2018 while 10-years average amunts t 660,000 sqm Grwing emplyment, salaries and cnsumptin Further decrease f average vacancy rate t 3,2% 2% - current vacancy rate in Warsaw 3.6% - vacancy rate in Katwice area Rent price mst likely t grw due t high demand Surce: CBRE, C&W 33

34 Market and prject update Retail Liber has becme the 150th prject delivered by Ech Investment Liber pened its drs n 15th Nvember After the event the ttal Plish shpping centre area exceeded 10 mln sqm Liber almst fully leased with reputable tenants Creating a new shpping destinatin in that area f the city with a high spending pwer - Katwice is a market with ne n the highest purchasing pwers in Pland Successful leasing increased net perating incme (NOI) t EUR 9.4 mln Mdern frmat with c.a. 20% f space fr fd & entertainment zne 34

35 Market and prject update Retail Galeria Młciny - a new Warsaw retail destinatin Cnstructin wrks accrding t the schedule The building shell&cre structure cmpleted Prject leased in 87% First, big tenants handed ver its permises and have started fit-ut wrks Fantastic fd & entertainment zne n the tp flr exceeding 6,000 sqm Grand pening in Q Slid partnership with EPP 35

36 III. Market and prject update Cnstructin & landbank

37 Market and prject update Cnstructin Cnstructin market stabilizing In-huse cmpetence t manage risks n cnstructin sites Wrking n standards and industrializatin in prcurement Optimizatin and standarizatin f prjects Benefits f having strengthened the cnstructin functin in the Cmpany ver the last 2 years Strng ecnmies f scale: being a general cntractr we buy directly frm suppliers Packaging f rders n all prjects including residential t speed up cnstructin start and manage csts Market struggling with lack f labur 37

38 Market and prject update Landbank Building the future extending landbank PLN 180 mln value f plts acquired and secured in 2018 PLN 1,247 average land price per 1 sqm f leasing/selling area PLN 110 mln value f plts divested in 2018 Acquired & Secured Land Bank 144,000 sqm f ffice & residential space Kraków: extensin f the destinatin prject by 23,000 sqm f ffice and residential area Katwice: 22,000 sqm f ffice space Pznań: 2 plts fr 26,000 sqm f residential space Wrcław: 35,000 sqm f ffice and residential area Kraków: 38,000 sqm f ffice space Under negtiatins 280,000 sqm f ptential space n plts under advanced negtiatins vast majrity fr residential prjects Plts under negtiatins split f 280,000 sqm residential 210 Warsaw 86 Split by functin [sqm thus.] ffice 70 Split by lcatin [sqm thus.] Wrcław 64 Kraków

39 IV. Financials

40 Financials Excellent results exceeding cnsensus PLN mln Prfrma results excluding EPP impact Actual results PAP cnsensus Q1-Q Q1-Q Q Q Q1-Q Q1-Q Q Q Q Revenue Operating prfit Prfit befre tax Net prfit Prfrma results excluding EPP impact are calculated based n actual Ech Investment s results excluding accunting impact f valuatin and sale f EPP shares, dividend paid by EPP t Ech Investment and share f EPP results allcated t Ech Investment. 40

41 Financials Grwing develpment prfit Q1-Q Q1-Q PLN mln Q1-Q Q1-Q Revenue Cst f sales Grss prfit SG&A % PLN 361 mln 18% 39% 15% PLN 304 mln Prfit n investment prperty EBIT Dividend frm EPP % 46% Interest EPP share valuatin & dispsal 88 0 residential ffice retail residential ffice retail 41 Share f prfit in assciates & JVs Net prfit Segments cntributin t prfit befre tax

42 Financials Main prfit drivers in Q and tasks fr Q H Q Q PLN 33 mln Margin earned n handver f 174 residential units (Kraków, Pznań, Wrcław) PLN 26 mln Margin earned n handver f 225 residential units Pznań, Osiedle Jaśminwe Kraków, Dm pd Wilgą II Łódź, Osiedle Jarzębinwe IV Margin earned n handver f c.a 500 residential units (mstly Pznań, Łódź and Warsaw) Pznań, Park Swińskieg IV PLN 186 mln Fair value increase f cmmercial prperties: O3 Business Campus III, Kraków Liber, Katwice Sagittarius, Wrcław Brewery Villa Offices (Brewery K), Warsaw West Link, Wrcław Others PLN 12 mln - dividend frm EPP PLN 44 mln - valuatin f equity interest in Galeria Młciny JV PLN 74 mln Fair value increase f cmmercial prperties Pzstałe Liber, Katwice Gatehuse Offices (Warsaw Brewery J) Sagittarius, Wrcław Other PLN -6 mln EUR/PLN exchange rates impact n valuatin f equity interest in Galeria Młciny JV Fair value increase f cmmercial prperties: Gatehuse Offices, Brewery Villa Offices, Malthuse Offices (Brewery J, K, G-H), Warsaw Liber, Katwice O3 Business Campus III, Kraków Mje Miejsce I, Warsaw Face2Face, Katwice Other Dividend frm EPP Valuatin f equity interest in Galeria Młciny JV 42

43 Financials Fcus n develpment with a lw debt level (PLN mln) PLN bn ttal assets value as at Assets Equity and liabilities % net debt rati (net debt) / (ttal assets cash) cmpared t 32% in Q ,366 2, Q Q Cash Trade receivables + restricted cash Assets fr sale Cmmercial and residential prperties under cnstructin Investment prperties Other ,0351, , Q Q Shrt term financial debt Lng term financial debt Other Prvisins Equity PLN 522 mln cash (PLN 168 mln in Q3 2017) 43

44 Financials Assets structure - fcus n develpment and liquidity (PLN mln) Retail JVs 255 Others 269 Cash 522 Cmpared t Q3 2017: 2% increase f ttal assets 3,793 ttal asset (PLN mln) Trade receivables + Restricted cash 398 EPP's shares 84 5% increase f cmmercial prperties under cnstructin (incl. JVs) Cmmercial prperties under cnstructin % increase f cash psitin Residential 784 Investment prperties

45 Financials Stable cash psitin, lw amunt f bnds maturing until 2021 Repayment f PLN 403 mln bnds in H1, n mre bnd liabilities in 2018 Cash and maturity f bnds as at (PLN mln) Bnd prspectus fr PLN 400 mln apprved, PLN 300 mln t be yet issued H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H Cash Bnds Issue f PLN 240 mln bnds fr individual and institutinal investrs in 2018 dne 45

46 Financials Ttal divestment f the EPP shares Ech sld 50 mln f the EPP shares in June and Nvember t several financial institutins The ttal value f transactins amunted t apprximately EUR 57 mln Ech has fully divested all shares in EPP t fcus n its cre business Ttal value f EPP shares sld: EUR 49 mln in 2017 EUR 57 mln in 2018 C.a. 15% IRR n EPP shares (frm June 2016) 46

47 Financials Stable results and financial psitin allw Ech Investment t pay an advanced dividend frm 2018 prfit DIVIDEND POLICY The Management Bard decided t pay cnditinally advanced dividend twards the prfit earned fr 2018 Bth cnditins fulfilled (Supervisry Bard agreement and EY cnfrmatin f the prfit recrded in H1) PLN 0.50 per share Amunt f dividend already paid fr 2017 UP TO 70% f annual prfit T be paid as dividend fr 2018 and later OVER 30% reinvested In the Cmpany s future grwth The dividend t be paid n 19 December 2018 t the sharehlders hlding shares n 12 December The ttal amunt f the dividend amunts t PLN 206 mln PLN 0,5 per share 47

48 V. Appendix

49 Appendix Residential Prjects Under Cnstructin [1/2] Prject / address Sales area [sqm] Number f units Sales level [% f units] Targeted revenues [PLN mln] Targeted budget [PLN mln] Expenditure incurred [%] Start Targeted cmpletin Dm pd Wilgą III Kraków, ul. Spiska Rydla 32 Kraków, ul. Rydla Osiedle Jarzębinwe V Łódź, ul. Okpwa Osiedle Jarzębinwe VI Łódź, ul. Okpwa Nwa Dzielnica (Wdna) Łódź, ul. Wdna Osiedle Jaśminwe IV Pznań, ul. Sielawy Osiedle Perspektywa I Pznań, ul. Sielawy Osiedle Perspektywa II Pznań, ul. Sielawy Osiedle Perspektywa III Pznań, ul. Sielawy % 41,8 28,6 79% II Q 2017 I Q % 48,4 36,5 38% I Q 2018 III Q % 42, % IV Q 2017 III Q % 19,8 15,6 13% III Q 2018 I Q % 29,6 22,4 70% III Q 2017 II Q % 31,4 23,1 19% II Q 2018 I Q % 44,8 37,4 90% IV Q 2016 IV Q % 24,8 20,7 25% IV Q 2017 III Q % 31,2 25,4 24% IV Q 2017 IV Q

50 Appendix Residential Prjects Under Cnstructin [2/2] Prject / address Sales area [sqm] Number f units Sales level [% f units] Targeted revenues [PLN mln] Targeted budget [PLN mln] Expenditure incurred [%] Start Targeted cmpletin Warsaw Brewery A Warsaw, ul. Grzybwska Warsaw Brewery B Warsaw, ul. Grzybwska Warsaw Brewery C Warsaw, ul. Grzybwska Widki Mktów Warsaw, ul. Puławska Osiedle Reset Warszawa, ul. Taśmwa Mje Miejsce I Warsaw, ul. Beethvena Zebra Wrcław, ul. Zakładwa % 55,4 40,9 95% IV Q 2016 IV Q % 124,9 79,4 51% IV Q 2017 II Q % 9100% 54,1 50% IV Q 2017 II Q % 67,1 49,4 44% IV Q 2017 I Q % 66,2 55,1 59% IV Q 2017 IV Q % 129,4 96,5 26% III Q 2018 IV Q % 75,9 55,7 54% III Q 2017 II Q 2019 Ttal ,

51 Appendix Residential Prjects in Preparatin Prject / address Sales area [sqm] Number f units Targeted revenues [PLN mln] Targeted budget [PLN mln] Expenditure incurred [%] Targeted start Targeted cmpletin Wita Stwsza I Kraków, ul. Wita Stwsza Wita Stwsza II Kraków, ul. Wita Stwsza Esencja Apartamenty Pznań, ul. Garbary Nasze Jeżyce I Pznań, ul. Szczepanwskieg Warsaw Brewery E Warsaw, ul. Grzybwska Osiedle Reset Warsaw, ul. Taśmwa Grta 111 III Wrcław, ul. Grta Ogrdy Graua Wrcław, ul. Gdańska ,6 75,1 22,20% I Q 2020 IV Q ,4 68,3 22,20% I Q 2020 IV Q ,9 84,8 18,10% I Q 2019 IV Q ,8 43,7 16,80% I Q 2019 I Q ,8 72,2 16,80% IV Q 2018 III Q ,2 93,9 21,60% IV Q 2018 III Q ,9 38,00% IV Q 2018 II Q ,7 33,8 19,60% IV Q 2018 III Q 2020 Ttal ,4 484,7 51

52 Appendix Residential Prjects fr Rental Platfrm Resi4Rent PROJECTS UNDER CONSTRUCTION Rychtalska Wrcław, ul. Zakładwa Warsaw Brewery Warsaw, ul. Grzybwska Nwa Dzielnica Łódź, ul. Wdna Kępa Mieszczańska Wrcław, Kępa Mieszczańska Residential area [sqm] Number f units Targeted annual rental revenues [PLN mln] Targeted budget [PLN mln] Expenditure incurred [%] Start Targeted cmpletin % IV Q 2017 III Q ,9 26% IV Q 2017 II Q ,9 52,2 39% IV Q 2017 IV Q , % II Q 2018 I Q 2020 Ttal ,3 391,1 PROJECTS IN PERPARATION Wrnicza Warsaw, ul. Wrnicza Taśmwa Warsaw, ul. Taśmwa Szczepanwskieg Pznań, ul. Szczepanwskieg Wita Stwsza I Kraków, ul. Wita Stwsza Wita Stwsza II Kraków, ul. Wita Stwsza Ordna Warsaw, ul. Ordna Residential area [sqm] Number f units Targeted annual rental revenues [PLN mln] Targeted budget [PLN mln] Expenditure incurred [%] Targeted start Targeted cmpletin ,9 55,1 20% IV Q 2018 III Q ,3 110,6 15% IV Q 2018 IV Q ,2 15% II Q 2019 II Q ,1 50,8 15% I Q 2020 IV Q ,1 50,5 15% I Q 2020 IV Q , % IV Q 2019 IV Q 2021 Ttal ,1 395,2 52

53 Appendix Office Buildings COMPLETED BUILDINGS GLA [sqm] Leasing [%] NOI [EUR mln] Targeted budget [PLN mln] Expenditure incurred [%] Cmpletin Recgnized fair value gain [PLN mln] Cmments O3 Business Campus III Kraków, ul. Oplska % 3,2 121,5 66% I Q ,3 preliminary sales cntract t EPP Ttal ,2 121,5 44,3 PROJECTS UNDER CONSTRUCTION GLA [sqm] Leasing [%] NOI [EUR mln] Targeted budget [PLN mln] Expenditure incurred [%] Start Targeted cmpletin Recgnized fair value gain [PLN mln] Cmments Gatehuse Offices (Brewery J) Warsaw, ul. Grzybwska Mje Miejsce I Warsaw, ul. Beethvena Face 2 Face I Katwice, ul. Grundmanna Villa Offices and Malthuse Offices (Brewery G, H, K) Warsaw, ul. Grzybwska % 3,8 155,2 52% II Q 2017 IV Q , % 3,3 148,9 41% III Q 2017 I Q , , % II Q 2018 IV Q ,2 483,4 18% III Q 2018 II Q ROFO agreement with Glbalwrth Pland ROFO agreement with Glbalwrth Pland Ttal ,9 938,5 83,0 53

54 Appendix Office Buildings in Preparatin Prject / address Mje Miejsce II Warszawa, ul. Beethvena React Łódź, ul. Piłsudskieg Slidarnści Gdańsk, ul. Nwmiejska Pwstańców Śląskich Wrcław, ul. Pwstańców Śląskich Face 2 Face II Katwice, ul. Grundmanna Wita Stwsza Kraków, ul. Wita Stwsza West 4 Business Campus I Wrcław, ul. Na Ostatnim Grszu GLA [sqm] NOI [EUR mln] Targeted budget [PLN mln] Expenditure incurred [%] Start Targeted cmpletin ,9 128,8 23% I Q 2019 III Q ,4 101,9 12% IV Q 2018 II Q ,1 10% I Q 2019 I Q ,4 284,8 18% I Q 2019 II Q ,6 196,7 13% IV Q 2018 III Q ,5 195,9 18% IV Q 2020 III Q , % IV Q 2018 III Q 2020 Cmments ROFO agreement with Glbalwrth Pland Ttal , ,10 54

55 Appendix Retail Prjects PROJECTS UNDER CONSTRUCTION GLA [sqm] Leasing [%] NOI [EUR mln] Targeted budget [PLN mln] Expenditure incurred [%] Start Targeted cmpletin Recgnized fair value gain [PLN mln] Cmments Liber Katwice, ul. Kściuszki Galeria Młciny Warsaw, ul. Zgrupwania AK "Kampins" % 9,4 355,4 70% III Q 2016 IV Q , % 21, ,2 59% IV Q 2016 II Q ,0* ROFO agreement with EPP Ech s jint-venture with EPP: 30%:70% Ttal , ,6 252,1 *30% f the prject value PROJECT IN PREPARATION Twarwa 22 Warsaw, ul. Twarwa GLA [sqm] NOI [EUR mln] Targeted budget [PLN mln] Expenditure incurred [%] Targeted start , ,3 25% 2021/2022 Cmments Ech s jint-venture with EPP: 30%:70% Ttal , ,3 55

56 Appendix Early Stage Prjects Prject / address Plt area [sqm] Ptential f leasing /sales area [sqm] Łódź, ul. Tymienieckieg Cmments Plt fr residential and ffice Wrcław, ul. Na Ostatnim Grszu Plt fr ffice Warsaw, ul. Ordna Plt fr residential Warsaw, ul. Chłdna/Wrnia Plt fr residential Łódź, ul. Kilińskieg Plt fr ffice Warsaw, Twarwa Plt fr residential, htel and ffice Katwice, ul. Pitra Skargi Plt fr ffice Pznań, ul. Sielawy, Naramwice Plt fr residential Pznań, ul. Szczepanwskieg Plt fr residential Ttal

57 Appendix Investment Prperties Prject / address Plt area [sqm] Cmments Pznań, Pamiątkw Pznań, Naramwice Preliminary sale agreement Part f the plt (29,000 sqm) sld in Q Występa k. Kielc Pznań, Hetmańska Kszalin, Krakusa i Wandy Preliminary sale agreement Katwice, Jankeg Pznań, Słacz Łódź, Okpwa Zabrze, Miarki Warsaw, Knstruktrska Radm, Beliny Warsaw, Wrnicza Plt fr the Student Huse drmitry Ttal

58 Appendix Definitins The estimated budget includes: Value f land, Cst f design, Cnstructin and external supervisin. It des nt include: Interest csts r activated financial csts, marketing and ttal persnnel csts related t the prject, which in ttal are estimated by the Cmpany t equal 7% fr ffice & retail and 6% fr residential prjects targeted budgets. Csts reducing sales revenue (price): Rent-free perids Prfit share n ROFO prjects Master lease Resi4Rent Estimated budget f R4R prjects includes: value f land, cst f design, cnstructin and external supervisin, develpment services financial csts. It des nt include csts f the platfrm peratin and marketing. GLA - grss leasing area NOI - net perating incme with the assumptin f full rental and the average market rent rates ROFO - right f first ffer Fair value includes currency differences n investment lans. 58

59 Ech Investment S.A. ECHO INVESTMENT al. Slidarnści 36 Kielce, Pland Emil GÓRECKI Investr Relatins Manager