Q1 2017 RESULTS

AGENDA

ECHO AT A GLANCE

Q1 2017 FINANCIAL HIGHLIGHTS

RESIDENTIAL UPDATE

OFFICE UPDATE

RETAIL UPDATE

LAND BANK ACQUISITIONS

NICKLAS LINDBERGCEO

ARTUR LANGNERDeputy CEO - Construction

MARCIN MATERNY

Board Member Retail

RAFAŁ MAZURCZAK

Board Member Office

MACIEJ DROZDCFO

PIOTR GROMNIAKDeputy CEO

TEAMMANAGEMENT

FOCUSON POLANDECHO INVESTMENT

BY SECTORS

35%

31%

34%

800,000sqm of commercial

and residentialspace in pipeline*

* including 100% of Galeria Młociny

and Towarowa 22

5 RETAIL PROJECTS

16 OFFICE PROJECTS

38 RESIDENTIAL PROJECTS

retail

office

residential

FOCUSON POLAND

4%

11%

10%

7%

8%48%

10%2%

Gdańsk

Katowice

Kraków

Łódź

Poznań

Warsaw

Wrocław

Szczecin

800,000sqm of commercial

and residentialspace in pipeline*

* including Galeria Młociny

and Towarowa 22

ECHO INVESTMENT

GEOGRAPHICAL SPREAD252,000 sqm

of office, retail

and residential space

in 26 projects currently

under construction

58%

66,300 sqm

of residential space sold

38,500 sqm

of office space leased

41,500 sqm

of retail space leased

sold or leased

45%

20%

35%

38%

24%

38%

including 100% of Galeria Młociny and Towarowa 22

41%

8%

51%

Q1 2016

32%

40%

10%

UNDER CONSTRUCTION

IN PREPARATION240,000

sqm

220,000sqm

350,000sqm

450,000sqm

+59%

+88%

retail

office

residential

PIPELINE’S GROWTHQ1 2016 - Q1 2017

Q1 2017

Q1 2017Q1 2016

Dom pod Wilgą, Kraków

Jarzębinowe III, Łódź

Kościuszki Apartments, Kraków

Jaśminowe II, Poznań

Sowińskiego I and II, PoznańJarzębinowe III and IV, Łódź

Os. Perspektywa I, Poznań

Jackowskiego, Poznań

Jaśminowe III, Poznań

Pod Klonami III, Poznań

RESIDENTIAL PROJECTS

UNDER CONSTRUCTION

Park Avenue, Kraków

Jackowskiego, Poznań

Pod Klonami III, Poznań

Nowy Mokotów II, Warszawa

Grota-Roweckiego II, Wrocław

Apartamenty GO, Kraków

Dom pod Wilgą I and II, Kraków

Kościuszki Apartments, Kraków

Grota-Roweckiego II, Wrocław

Browary Warszawskie A, Warsaw

Nowy Mokotów III-IV, Warsaw

Sowińskiego II, III and IV, Poznań

Sowińskiego III, Poznań

Nowy Mokotów III, Warszawa

P

P

P

P

P

P project completed

30-35%targeteddevelopment margin on cost

62%sold

Q1 2017Q1 2016

OFFICE PROJECTS

UNDER CONSTRUCTION

Q22, Warsaw

A4 Business House, Katowice

Nobilis, Wrocław

Symetris I, Łódź

O3 Business Campus I, Kraków

Symetris II, Łódź

O3 Business Campus III, Kraków

O3 Business Campus II, Kraków

Sagittarius Business House, Wrocław

West Link, Wrocław

P

P

P

P

P sold or pre-sold

P

30-40%targeteddevelopment margin on cost

P

P

P

Q1 2017Q1 2016

RETAIL PROJECTS

UNDER CONSTRUCTION

Galaxy extension, Szczecin Galaxy extension, Szczecin

Galeria Libero, Katowice

Outlet Park III, Szczecin

30-40%targeteddevelopment margin on cost

65% leased41% leased

DEVELOPMENT

PIPELINE

2014 2015 2016 2017 2018 2019

Completion

(thous. sqm of commercial and residential area)

Retail Office Residential

90 84

166152 156

302

Q1 2017 RESULTS

PLN

3,330 mlnvalue of total assets

Investment

propertyOther

Asset

for sale

Cash

Trade

receivables

Property under

construction

EPP’s shares

Residential

(inventory)

ASSETS

STRUCTURE

COMMERCIAL PORTFOLIO

WITH EARLY EXIT DEFINITION

of commercial projectsin pipeline has pre-defined

exit routes

80%

3%

14%

7%

8%

2%

47%

20%

projects run for EPP

ROFO agreement with EPP

Forward sale to EPP

ROFO agreement with GriffinPremium REForward sale to Griffin Premium RE

JV with EPP

Exit scenario non definied

by targeted NOI

ROFO ADVANTAGE

Project IRR maximisation

Exit flexibility

Risk sharing and increasing exit certainty*

Design & planning

Construction

Leasing

Open market sale process

ROFO price negotiation

Sale closing

(open market sale)

Sale closing (ROFO)

Project lifetime decreased by ca.

9 months through ROFO

* ROFO partners co-finance projects at 25% share, increasing their motivation to exercise the option

Q1 2017 Q1 2016

Operating revenue 68 143**

Operating profit 89 168

Net profit 62 188

Total assets 3,330 8,211***

Loans and borrowings 1,123 4,044

Net debt / Total assets less cash ratio* 28% 49%

FINANCIAL

HIGHLIGHTSEcho Investment Group (PLN mln)

* cash decreased by declared dividends and VAT payable

** including revenue from standing assets

*** including yielding portfolio

OF COSTS ALLOCATIONNEW WAY

Part of overheads allocated to projects

Higher effectiveness and flexibility

of the organisation

Changes in the financial report:

since Q1 2017 – restating of costs position

DECREASE OF

OVERHEAD COSTS

Q1 2016 Q1 2017

Selling and administrative expenses

net of recharges (PLN mln)14.4 15.8

Annualised (x4) 57.6 63.2

Pipeline (000 sqm) 460 800

OH costs / sqm 125PLN / sqm

79PLN / sqm

Overheads per sqm in pipeline

-37%

PLN

300 mlnmaximal value

of public bonds program

The Prospectus approved by Polish

Financial Supervision Authority

on 26 May 2017

Bonds may be issued in PLN or EUR

In 2014 Echo Investment successfully

placed PLN 200 mln of public bonds

Bonds as an excellent and flexible

source of the financing

PROGRAM OF

PUBLIC BONDS

September 2017 – end of lock-up period for the Echo’s stake in EPP

EPP shares not included in dividend policy assumptions

Echo Investment holds 12.86% of shares in EPP

EUR ca

100 mlnbook value

of Echo’s shares in EPP

EUR ca

120 mlnmarket value

on LuxSE and JSE

OUR INTERESTS

IN ECHO POLSKA PROPERTIES

DIVIDEND POLICY

amount of dividend

for 2017

PLN 0.50per share

remaining amount

of annual profit reinvested

GROWTH

to be paid as dividend

for 2018 and later

up to 70%of annual profit base

DIVIDEND

Based on share price of PLN

5.60 and declared dividend

from 2017 profit, compared

to Bloomberg mean estimates

of dividend from 2017 profit

of selected developers

8,9% 8,6%

7,0%

5,2%4,7% 4,4%

3,6% 3,6%2,9%

Robyg Dom

Development

Vantage

Development

Atal Atenor Immobel LC Corp Marvipol

Best-in-class dividend yield

RESIDENTIAL UPDATE

FOCUSON POLAND

Q1 2016 Q1 2017 change

Projects under

construction13 17 31%

Units under construction 1,461 1,841 26%

Pre-sale (by revenue

of projects under

construction)

40% 62% 22 p.p.

Projects in preparation 19 21 11%

Units in preparation 1,958 3,355 71%

GROWTH

OF RESIDENTIAL SEGMENT

115

89

139

248

147162

194

422

259

106

70 67

157

46

129

211

65

90

Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017

sale delivery

SPEED

OF RESIDENTIAL SALES 1,841 units

under construction

976 units

to be completed in 2017

71%pre-sold

(units)

62%pre-sold

DIVERSIFICATION

OF RESIDENTIAL MARKETS

28%

10%

30%

25%

7%

Kraków Łódź Poznań Warsaw Wrocław

4%

18%

22%44%

12%

5most attractive

residential markets

in Poland

Presence at

underconstruction in preparation

Data presented by residential usable area

30-35%range of targeted

gross margin

1-6.5%range of Echo’s share

of local markets*

* sales in 2016 - REAS

BROWARY

WARSZAWSKIE

1st office building (15,000 sqm GLA) launched in May 2017

2 residential buildings under construction

8,000 sqm of retail space in newand historical buildings

OFFICE

RESIDENTIAL

67% of apartments sold (178 contracts)

3rd residential building to be launchedin Q3 2017

OFFICE UPDATE

FOCUSON POLAND

Q1 2016 Q1 2017 change

Projects under

construction5 5

Space under

construction110,000 86,800 -21%

Total pre-leasing 45% 44% -1 p.p.

Projects in preparation 6 11 83%

OFFICE

ACTIVITY

15,000 sqmBrowary Warszawskie Jstarted in May 2017

Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017

new agreements recommercialisation

OFFICE

LEASING2017

(thous. sqm)

14,6

7,2 6,8

25,1

17,2

10,1

29,7

41,1

25,3

5buildings under constructionto be delivered in 2017/2018

44%leasing of total space

33%incured budgets

As at the end of Q1 2017

86,800sqm of GLA

OFFICE PIPELINE

DIVERSIFICATION

44%

11%

45%

Gdańsk

Katowice

Kraków

Łódź

Warsaw

Wrocław

87,000sqm of GLA

underconstruction

17%

26%

8%

49%

180,000sqm of GLA

in preparation

SAGITTARIUSWROCŁAW

OFFICE

24,900 sqm GLA building in Wrocław

82% of space leased to EY and BNY Mellon

(increase from 42% at 2016 YE)

Q4 2017 – expected end of construction

part of ROFO agreement with EPP

sale agreement under negotiations

92% of space leased to NOKIA Networks

(increase from 52% at 2016 YE)

WEST LINK

1Q 2018 – expected end of construction

OFFICE

14,200 sqm GLA building in Wrocław

– one of the top destinations for BPO/SSC

Building to be sold to Griffin Premium RE

for ca. EUR 36 mln

WROCŁAW

RETAIL UPDATE

Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017

new agreements recommercialisation

RETAIL

LEASING2017

(thous. sqm)

19,9

16,5

19,8

5,2

20,217,7

12

29,4

21

4projects under construction

to be delivered in 2017/2018

66%leasing of total space

14%incured budgets

As at the end of Q1 2017

63,600sqm of GLA

GALERIA

LIBERO

44,700 sqm GLA

H1 2018 – planned completion

Increase of the leased area from 41% at 2016 YE to 58%

Leading retail scheme in excellent location in Katowice

Part of ROFO agreement with EPP

RETAIL

58% leased

RETAIL

EUR 104.5 mln – the total price

for project under construction

82,000 sqm GLA in a very good location

in Northern Warsaw

2Q 2019 – expected completion

Project in cooperation with EPP

(target 30/70% joint-venture)

MŁOCINYGALERIA

55% leased

RETAIL

TOWAROWA 22SHOPPING EXPERIENCE OF THE FUTURE

Working full speed with designing

and permitting

30/70% joint-venture Echo and EPP

110,000 sqm retail and residential

mixed complex to be built

Plac Kazimierza

- new meeting point for Warsaw

LAND ACQUISITIONS

39

LAND

ACQUISITIONS

Securing the pipeline of projects

for 2020 and beyond

Ability to acquire and develop

big plots for mixed–use

projects

Negotiating resonable prices:

PLN 500 – 1000 per 1 sqm

of GLA / residential area

SALEOF NON CORE ASSETS

Non-core asset sales

since the begining of 2016

PLN 150 mln UNDER PRELIMINARY AGREEMENTS

Cracovia hotel, Kraków (1.7 ha)

Kiev (4.3 ha)

Zakład Ogrodniczy

Naramowice – Pamiątkowo (535 ha)

Lublin (105 ha)

Słupsk (7 ha)

Koszalin (4 ha)

Korona Brasov, Romania (5 ha)

45%reduction of passiveland bank Q1 2016 - Q1 2017

SECURING LAND

FOR 2020+

73,000 sqm

of GLA and

residential area

▪ Katowice,

Grundmanna

▪ Poznań, Garbary

▪ Wrocław,

West Link

2016 2017 SECURED

82,000 sqm

of GLA

▪ Łódź,

Piłsudskiego

▪ Gdańsk,

Solidarności

▪ Wrocław,

Powstańców Śl.

280,000 sqm

of GLA and

residential area

▪ Warsaw

▪ Kraków

▪ Wrocław

▪ Poznań

▪ Łódź

100,000 sqm

of GLA and

residential area

▪ Kraków

▪ Poznań

NEGOTIATIONS

1-3 years - to enter the new plot to the production

WELCOMETO OUR NEW OFFICE

APPENDIXCOMMERCIAL PORTFOLIO

ProjectNOI

EndPre-defined exit

routeComments

(EUR mn)

Wrocław, Nobilis Business House 2.9 completed P ROFO – EPP*

Warszawa, Babka Tower 1.2 completed

Szczecin, Galaxy (extension) 3.3 IV Q 2017 P Extension of EPP asset

Kraków, O3 Business Campus II 3.2 III Q 2017 P Forward – EPP

Łódź, Symetris Business Park II 1.6 III Q 2017 P Forward – EPP

Wrocław, Sagittarius Business House 4.5 IV Q 2017 P ROFO – EPP (1)

Szczecin, Outlet Park III 0.6 IV Q 2017 P Extension of EPP asset

Kraków, O3 Business Campus III 3.2 IV Q 2017 P Forward – EPP

Warszawa, Browary Warszawskie J 3.1 III Q 2018 P ROFO – Griffin Premium RE

Katowice, Galeria Libero 9 I Q 2018 P ROFO – EPP

Wrocław, West Link 2.5 I Q 2018 P Forward – Griffin Premium RE

Warszawa, Beethovena II 2.9 IV Q 2019 P ROFO – Griffin Premium RE

Warszawa, Galeria Mlociny 20.4 II Q 2019 P Joint venture with EPP

Katowice, Grundmanna I 3.8 IV Q 2019

Warszawa, Beethovena I 3.1 III Q 2019 P ROFO – Griffin Premium RE

Warszawa, Browary Warszawskie K 3.4 I Q 2020

Warszawa, Browary Warszawskie G 1.8 I Q 2020

Warszawa, Browary Warszawskie H 2.5 I Q 2020

Warszawa, Towarowa 22 (two stages) 36.4 IV Q 2020** P Joint venture with EPP

Katowice, Grundmanna II 3.9 IV Q 2020

* the asset is currently being sold in an open market process

AL. SOLIDARNOŚCI 36KIELCE, POLAND

WWW.ECHO.COM.PL