THE BIGGEST POLISH DEVELOPER
AGENDA
ECHO INVESTMENT
RESIDENTIAL
THE BIGGEST POLISH DEVELOPER
The team Strategy
OFFICE
Projects Results
RETAIL
THE TEAM
NICKLAS LINDBERG CEO PIOTR GROMNIAK
MACIEJ DROZD
COO Residential
CFO
ARTUR LANGNER
MARCIN MATERNY
RAFAŁ MAZURCZAK
Deputy CEO Construction
Board Member Retail
Board Member Office
MANAGEMENT TEAM
THE TEAM
OUR TEAM
323 EXPERIENCED MARKET PROFESSIONALS
OVER
7
YEARS OF AVERAGE SERVICE PERIOD
STRATEGY
1
POLAND
Access to the best and the biggest market in CEE
Using 20 years experience and deep market knowledge Decision to sell plots outside Poland (Budapest, Brasov, Kiev)
ECHO IN POLAND 20 YEARS
Gdańsk
TODAY
Szczecin
32 cities
Warsaw
Poznań
8 cities
Łódź
over 120 projects
49 projects Wrocław
1,3 Mln sqm Katowice
Kielce
Kraków
over 0,5 Mln sqm
STRATEGY
2 THE LEADER
NEW ECHO
ECHO INVESTMENT’S STRATEGIC PARTNERS PIMCO-Oaktree-Griffin - the main shareholders Echo services for Griffin’s Group on the market conditions (development, leasing, consulting) Griffin, as a private equity, can attract potential partners, eg. projects’ buyers Resi for Rent (R4R) Student Depot
SEGMENT STRATEGY
OFFICE Focus on the core markets: Warsaw
Łódź
Wrocław
Poznań
Kraków
Gdańsk
Katowice
7 projects under construction (GLA 106,000 sqm)
Sales of leased buildings
CitySpace – new market niche to support office leasing
SEGMENT STRATEGY
RETAIL Focus on big projects: Libero, Galaxy
4 projects under construction (GLA 66,900 sqm)
Acquisition of 1st and 2nd generation shopping centers
to be redeveloped
SEGMENT STRATEGY
RESIDENTIAL 5 markets: Poznań
Kraków
Warsaw
Wrocław Łódź
13 projects under construction (84,100 sqm, 1227 units)
More popular segment products Focus on big projects as part of a multi-funcional projects Small niche projects Resi for Rent (R4R)
DIRECTIONS
STRATEGY
3 PURE DEVELOPER
STRATEGY
PROFITABLE GROWTH Focus on development Society developer, creating destinations Dividend
SEGMENT STRATEGY
CONSTRUCTION Strengthening the division Stronger impact on cost control and quality management on the sites
Health and safety Acting as fee developer both for Echo and Griffin RE capital group
PROJECTS
HIGHLIGHTS
49 PROJECTS
GROWTH
In the pipeline
Enlarging the land-bank
with 500,000 sqm. of space
and number of projects
DESTINATIONS Large-scale projects
PROJECTS
BROWARY WARSZAWSKIE CHALLENGE FOR COMMING YEARS Excellent example of the new philosophy: social development, city space creation The most important project in Poland 100,000 sqm of residential and office space
1 Bln PLN – expected value of investment H2 2016 – start of construction works
PROJECTS
PORTFOLIO SUMMARY
OFFICE 7
7 MARKETS Warsaw
Łódź
Kraków
Poznań
Katowice
Gdańsk
PROJECTS UNDER CONSTRUCTION GLA 106,000 sqm
Wrocław
1
PROJECT TO START IN 2016
8 PROJECTS READY TO START AFTER 2016
GLA 18,000 sqm GLA 132,300 sqm
FLAGSHIP PROJECT
Q22
Deloitte, Allegro, Linklaters, William Demant, City Citibank Handlowy, Boston H1 - tenants succesful completion 53,000 sqm oflandmark office space from Warsaw new 70Prestigious pct 2016 leased out, big–interests another potential tenants Scientific
PROJECTS
PROJECTS
PORTFOLIO SUMMARY
RETAIL 4 PROJECTS UNDER CONSTRUCTION TOTAL GLA 66,900 sqm Libero Galaxy extention* Outlet Park III* Outlet Park IV* *Sold to EPP
LIBERO
MAJOR RETAIL PROJECT Leading retail scheme in the very good location 44,700 sqm GLA 250 Mln PLN – expected volume of investment H1 2016 – start of construction works H1 2018 – planned completion 35 pct of space leased-out, high interest of potential retailers
PROJECTS
PROJECTS
PORTFOLIO SUMMARY
RESIDENTIAL 13
5
MARKETS
PROJECTS UNDER CONSTRUCTION
Warsaw
Łódź
84,100 sqm
Kraków
Poznań
1227 units
Wrocław
7
PROJECTS TO START IN 2016
9 PROJECTS TO START AFTER 2016
45,100 sqm
55,000
861 units
1001 units + ca. 1500 R4R
PROJECTS
NOWY MOKOTÓW EXAMPLE OF SUCCESS Residential complex of 4 phases
Excellent location proven by sensational sales results 1st and 2nd phases completed (412 units): 98 pct sold 3rd phase (239 units) to be delivered in Q3 2017: 52 pct sold
4th phase (45 apartments) not in the offer yet: 8 apartments reserved
LAND BANK AND PROJECTS IN EARLY STAGE
Katowice Grundmanna, Łódź Okopowa, Łódź Wodna, Poznań Hetmańska,
Warszawa Taśmowa, Wrocław Kępa Mieszczańska.
STRATEGIC STEP
ECHO POLSKA PROPERTIES Separation of assets in operation
574.1
Mln PLN
EPP SHARES BOOK VALUE
and sales of 75% stake The first dividend: advance of PLN 590.1 Mln paid in H1, remaining PLN 1.585 Bln paid in July 2016 ROFO agreement – EPP as a potential Echo’s client
5.23
PLN
TOTAL DIVIDEND PER SHARE
Echo as developer and co-investor – model for the future
H1 2016 FINANCIAL DATA
REVENUE BY SECTORS 180
162,9 160
H1 2016
150 H1 2015
ECHO INVESTMENT GROUP
140
120
100
77,8
80
65,7 60
280.5 Mln PLN revenue (H1 2015 – 273,8 mln PLN)
46,7
41,6
40
20
6
3,6
0
Retail rents*
Office rents*
*5 months 2016 vs 6 months 2015 excl. Babka Tower (still in balance sheet)
Residential sale
Others
H1 2016 FINANCIAL DATA
ECHO INVESTMENT GROUP 145.4 Mln PLN gross sales profit (H1 2015 - 135 Mln PLN ) 404 Mln PLN operating profit (H1 2015 – 31.3 Mln PLN ) 299 Mln PLN net profit (H1 2015 – 22.7 Mln PLN) 5.550 Bln PLN assets value (H1 2015 – 6.279 Bln PLN) 471.9 Mln PLN – cash remaining after dividend payment (H1 2015 – 31.3 Mln PLN)
73% net debt/equity ratio (1.313 Bln PLN/1.797 Bln PLN)
ECHO INVESTMENT S.A. 244,3 mln PLN net profit (H1 2015 - 43 mln PLN) 1,705 bln PLN equity capital (H1 2015 – 720,2 mln PLN )
FUTURE
OUR VISION
PURE DEVELOPER
LEADERSHIP
SALE
DIVIDEND
We’ve become
We are going to achieve
Sales of the properties asap
We want to pay
a pure developer
a dominant position in
leased out, to obtain faster
yearly dividend
residential, office and retail
capital turnover and higher
sectors
return to the shareholders
FUTURE
H AV I N G S T R O N G B A C K G R O U N D , IMPRESSIVE TRACK-RECORD AND CLEAR GOALS,
ECHO INVESTMENT IS READY TO
GO FORWARD
THANK YOU
SUPPLEMENT
SUPPLEMENT
OUR OPERATING ASSETS
64.6 M
ln PLN
INVESTMENT PROPERTY Babka Tower - 55,2 mln PLN plots and others - 9,4 mln PLN
1 396.6
Mln PLN
ASSETS HELD FOR SALE office buildings - 1 218.5 Mln PLN office under construction - 67.7 Mln PLN plots – 110.7 Mln PLN
594.6
Mln PLN
INVESTMENT PROPERTY UNDER CONSTRUCTION
625.2
Mln PLN
INVENTORY 430.6 Mln PLN - residential under construction 171.1 Mln PLN - completed appartments 23.5 Mln PLN - residential plots for sale
SUPPLEMENT
594.6 Mln PLN INVESTMENT PROPERTY UNDER CONSTRUCTION
OUR OPERATING ASSETS
Libero Katowice
O3 phase I Kraków (ROFO)
O3 Kraków – II and III phases
Symetris Łódź Beethovena Warszawa
ASSETS HELD FOR SALE
Buildings:
Grundmanna Katowice Cracovia Kraków
1 396.6 Mln PLN
23.5 Mln PLN INVENTORY
Tryton Gdańsk (ROFO) Q22 Warszawa
A4 Business Park III Katowice (ROFO)
Browary Warszawa Taśmowa Warszawa
Park Rozwoju III Warszawa West Link Wrocław Saggitarius Wrocław Nobilis Wrocław Metropolis Poznań PHS Park Logistyczny Kijów
Resi plots for sale:
Plots:
Kielce Dyminy
Słupsk
Kielce Masłów
Budapeszt
Warszawa Rezydencje Leśne
Brasov Koszalin Puławska Warszawa Częstochowa (sold in H2)
SUPPLEMENT
FINANCIAL HIGHLIGHTS 594.6 Mln PLN investment properties under construction (H1 2015 - PLN 1 214.2 Mln) 1 478.9 Mln PLN supplementary capital (H1 2015 - PLN 3 139.7 Mln) 385.2 Mln PLN revaluation of property portfolio (H1 2015 - PLN (-) 40.6 Mln) 263.8 Mln PLN financial costs* (H1 2015 - PLN 59 Mln)
* incl. sale option Q22
