THE BIGGEST P O L I S H D E V E L O P E R

THE BIGGEST POLISH DEVELOPER AGENDA ECHO INVESTMENT RESIDENTIAL THE BIGGEST POLISH DEVELOPER The team Strategy OFFICE Projects Results RETAIL...
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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