Echo Investment S.A.

Quarterly Report • May 25, 2023

2023 The 1st quarter of

Financial report of Echo Investment S.A. and its Group

Photo: Moje Miejsce II office building in Warsaw

Content

	Message from CEO	6
	CHAPTER 1	8
	Management Report	8
01.	General information about the Company and its Group	9
	Management Board	10
	Supervisory Board	11
02.	The Strategy of Profitable Growth	12
03.	Business model	14
04.	Selected financial data of the Group	15
05.	Group segments	16
06.	Echo Investment S.A. shareholding structure and shareholders' rights	19
07.	Volume of the Company's shares and bonds held by managing and supervising persons	21
08.	Major events in Q1 2023	22
09.	Significant events after the balance sheet day	26
10.	Residential segment for individual clients – market outlook and the Group's business activities	28
11.	Residential segment for rent – market outlook and the Group's business activities	32
12.	Office segment – market outlook and Group business activities	34
13.	Retail segment – market outlook and Group business activities	38
14.	Portfolio of properties	40
15.	Main investments in Q1 2023 – acquisition of plots	53
16.	Factors and unusual events affecting the results in Q1 2023	54
17.	Significant factors influencing the development of Company and the Group in the perspective
	of at least the following quarter	56
18.	Information on dividend policy and dividend	58
19.	Financial liabilities of the Company and its Group	59
20.	Sureties and guarantees	63
21.	Other disclosures required by law	64
22.	The impact of the war in Ukraine on the operations and results of the Company and its Group in the future	65

CHAPTER 2 66

	Condensed interim consolidated financial statements of Echo Investment Group as of and for the period ended 31 March 2023	66
	Information on financial statement of the Group	75
01.	Accounting principles adopted in drawing up the financial report	76
02.	Echo Investment Group	77
03.	New standards and interpretations that are effective as of 1 January 2023	78
04.	Published standards and interpretations which are not effective yet and have not been adopted	79
	CHAPTER 3 Condensed interim standalone financial statements of Echo Investment S.A. as of and for the period ended 31 March 2023	81 81
	CHAPTER 4	89
	Statement of the Management Board	89
	Contact	92

01.

Message from CEO

Dear Shareholders, Partners and Clients,

It is my pleasure to present to you this financial report of Echo Investment for the first quarter of 2023. During this quarter, Echo Investment generated PLN 11.5 million in net profit which was mainly the result of nearly 300 handed over apartments and the revaluation of Resi4Rent. The company maintains a high level of cash – at the end of March 2023 it was PLN 778 million that is creating comfortable conditions for the future development.

Residential sector

In the first quarter of 2023, the Group sold 374 apartments and had 2,863 units under construction. We plan to jointly start another 2.5 thousand still this year.

In the first quarter of 2023, Resi4Rent , strengthened its leading position on the PRS market. Resi4Rent currently has over 3.3 thousand ready and fully leased premises, while over 5.8 thousand is under construction or planned to be started during the year. In the first quarter, the platform launched a new Warsaw project at Żwirki i Wigury with nearly 350 units, consistently striving to achieve the goal is to have about10 thousand apartments for rent by 2025.

In April 2023, we signed a preliminary agreement regarding the consolidation of Echo Investment's and Archicom's residential business. With Echo as a main shareholder with over 80% stake, the combined residential business will give Archicom a nationwide scale with greater growth potential, synergies and wider recognition on the market. It will also organize the structure of the Group, in which Echo Investment will focus on developing the commercial real estate segment, apartments for rent and creating

multifunctional "destination" projects. This action is in line with the Group's strategy, which assumes achieving the leading position on the residential and commercial market.

Commercial property sector

Commercial real estate continues to be a strong pillar of our business. We started the first quarter with the sale of Moje Miejsce II in Warsaw, the second office building of our Mokotów multifunctional project. The building is fully leased with strong tenants which confirms the interest in sustainable, high quality destination projects. The value of the transaction amounted to EUR 45 million. Currently, we are conducting advanced negotiations on the sale of further buildings, and looking to the future – we are preparing new investments, from which projects in Warsaw, Wroclaw and Krakow are to be kicked off still this year.

We are also pleased with the development of CitySpace, our Group's operator of flexible offices. In the first quarter, the company focused on preparations to open its first office in Łódź and the thirteenth location in the CitySpace's offer.

Our Libero shopping centers in Katowice and Galeria Młociny in Warsaw operate at full capacity and strengthen their position on local markets. The beginning of 2023 has been a continuation of growth in both locations. Libero's turnover in the first quarter of 2023 was 27% higher than in the first quarter of 2022, while footfall – by 7%. An equally good situation is observed in Warsaw's Galeria Młociny. Here, turnover increased by 25%, while footfall – by 20%.

Financial position

Our net profit attributable to shareholders of the parent company in the first quarter of 2023 amounted to PLN 11.5 million and was mainly the result of a hand over of nearly 300 apartments with a margin of 33% and the valuation of new Resi4Rent projects for which the demand is still strong. The Group maintains a high level of cash: at the end of the first quarter it was PLN 778 million, and the value of our assets was close to PLN 6 billion.

In March 2023, we announced the ESG Echo - Archicom 2030 strategy. It is a step-by-step road leading the Echo-Archicom Group to decarbonisation, zero-emission investments, further increasing the role of greenery in investments and supporting proper urban development. We also intend to provide our employees with equal development opportunities, maximize safety on construction sites and strengthen corporate governance.

I encourage you to read in detail both documents – our financial report for the first quarter of 2023 and the announced ESG Echo-Archicom 2030 strategy.

Yours sincerely

Nicklas Lindberg

With the financial report for the first quarter of 2023, we also announced our ESG Echo - Archicom 2030 strategy. It is a step-by-step road leading the Echo-Archicom Group to decarbonisation, zero-emission investments, further increasing the role of greenery in investments and supporting proper urban development. We also intend to provide our employees with equal development opportunities, maximize safety on construction sites and strengthen corporate governance. Documents confirm how much importance we attach in our Group to the issues of fair and sustainable business.

CHAPTER 1 Management Report

General information about the Company and its Group

The Echo Investment Group's core activity consists of the construction, lease and sale of office and retail buildings, construction and sale of residential buildings as well as trade in real estate.

01

The parent company - Echo Investment S.A. with its headquarter in Kielce, at al. Solidarności 36 - was registered in Kielce on 30 June 1994 and is entered into the National Court Register under number 0000007025 by the District Court in Kielce, 10th Commercial Division of the National Court Register.

Since 5 March 1996, the Company's shares are quoted at the Warsaw Stock Exchange on the regulated market. They are included into Warsaw Stock Exchange Index WIG, sWIG80 subindex as well as WIG-Real Estate sector index. The main place where the Company runs its business is Poland. The parent entity is Lisala Sp. z o.o., and the parently company of the highest level of the group is Dayton-Invest Kft., which is controlled at the highest level

by Tibor Veres. The Company was established for an indefinite period.

There have been no changes in the name of the reporting entity or other identifying data since the end of the previous reporting period.

Average monthly employment in the Echo Investment Group as at 31 March 2023 amounted to 556 people fulltime equivalents.

Whenever this document refers to the Echo Investment Group it means the parent company Echo Investment S.A. with all subsidiaries, including Archicom S.A. and its subsidiaries. The term "Echo Group" means the company Echo Investment S.A. with its subsidiaries, excluding Archicom S.A. and its subsidiaries. The term "Archicom Group" means only the company Archicom S.A. and its subsidiaries.

Management Board

Nicklas Lindberg

President of the Board, CEO

Maciej Drozd

Vice-President of the Board, CFO

Artur Langner

Vice-President of the Board

Rafał Mazurczak

Member of the Board

Małgorzata Turek

Member of the Board

Supervisory Board

Noah M. Steinberg

Chairman

Tibor Veres

Deputy Chairman

Sławomir Jędrzejczyk

Independent Supervisory Board Member Deputy Chairman of the Audit Committee

Péter Kocsis

Supervisory Board Member

Nebil Senman

Supervisory Board Member Audit Committee Member

Margaret Dezse

Independent Supervisory Board Member Chair of the Audit Committee

Maciej Dyjas

Supervisory Board Member

Bence Sass

Supervisory Board Member

The Strategy of Profitable Growth 02

In 2016, the Management Board of Echo Investment prepared and introduced the Strategy of Profitable Growth with the approval of the Supervisory Board. The strategic directions confirmed in 2020 place particular emphasis

on the Group's development in the residential sector and increasing the importance of multifunctional, large destination projects in the pipeline. Echo's strategy is based on the following pillars:

Leadership

Large destination projects

Echo Investment is the biggest real estate development company in terms of number of projects as well as its total area, operating in Poland. It is active in both sectors of real estate market: residential and commercial. In accordance with the Strategy of

Profitable Growth, Echo Investment is going to be one of the leaders in residential and commercial market, what implies higher dynamics in residential. Big scale of activity allows for optimum use of resources.

Echo Investment's many years of experience in three real estate sectors gives a competitive advantage consisting in the ability to implement large, multifunctional and city- -forming projects. Thanks to this, the Group can buy larger areas, with regard to which the unit price is lower

and the competition among buyers is much smaller. Combining the functions provides for faster completion of the project and comprehensive design of the urban space.

Development activity

The focus of the adopted strategy model is on development activities, which include land acquisition, construction, lease, active management to increase the market value and then sale of finished project in optimal time for the possible return ratio, capital management, market expectations and trends. Commercial and residential properties under construction constitute majority of the group's assets.

Focus on Poland

It is the strongest economy and real estate market in the Central and Eastern Europe. Echo Investment, which has been operating on this market for two decades, knows perfectly its potential, background and principles of functioning. This is why the Company focuses on running projects in the most important Polish cities, which are at the same time the most attractive and liquid real estate markets: Warsaw, Tricity, Poznań, Katowice, Wrocław, Krakow and Łódź.

Strategic cooperation with reliable partners

Echo Investment values long-term business relations with reliable partners, that created synergies for both sides. Development activities of Echo Investment are complementary to these entities. Such cooperation facilitates expanding Echo's scale of operation, accelerates speed of projects implementation and limits risks. Echo Investment assumes entering into joint-ventures for projects requiring significant capital expenditures, providing its partners with services such as development, planning, leasing, accounting etc. Partners may also be offered by Echo with priority to acquire ready projects on market conditions. Material agreements between Echo Investment and its partners need to be discussed and approved by the Supervisory Board.

Echo Investment Group runs the entire investment process in-house, starting with acquisition of property, through obtaining administrative permits, financing and oversight of construction, to leasing, completion, active property management to increase its value, taking decision of sale and execution of this decision in optimal moment from return, cash management, expectation and market trends. These steps are taken in most cases through the special purpose vehicles (SPV).

The core business of Echo Investment Group falls into the following categories:

• 1. construction and sale of residential apartments,
• 1. construction, lease, active property management to increase its value and sale of commercial properties office and retail buildings,
• 1. providing services of flexible office space leasing through the company CitySpace,
• 1. provision of services for other entities, such as Resi-4Rent and Student Depot (general contractor, development manager, leasing, consulting etc.).

Selected financial data of the Group 04

Consolidated financial data of the Group

		[PLN '000]		[EUR '000]
	as at 31.03.2023	as at 31.03.2022	as at 31.03.2023	as at 31.03.2022
Revenue	210 093	283 636	44 696	61 034
Operating profit	25 300	108 467	5 382	23 340
Gross profit	20 843	72 929	4 434	15 693
Profit attributable to shareholders of the parent company	11 533	51 442	2 454	11 069
Cash flows from operating activities	(154 641)	94 048	(32 899)	20 238
Cash flows from investment activities	54 535	(95 897)	11 602	(20 635)
Cash flows from financing activities	(63 433)	143 017	(13 495)	30 775
Net cash flow	(163 539)	141 168	(34 792)	30 377
Total assets	5 874 644	6 705 387	1 256 474	1 441 244
Equity attributable to equity holders of the parent	1 655 299	1 731 098	354 037	372 079
Long-term liabilities	1 917 439	2 385 124	410 104	512 654
Short-term liabilities	2 136 295	2 395 373	456 913	514 857
Number of shares	412 690 582	412 690 582	412 690 582	412 690 582
Profit (loss) per one ordinary share	0,03	0,12	0,01	0,03
Book value per one share	4,01	4,19	0,86	0,90

Euro exchange rate

In the periods covered by the report, selected financial data were converted using the average exchange rates of the Polish zloty against the EUR, established by the National Bank of Poland.

Exchange rate valid on the last day of the reporting period:

• − 4.6755 PLN/EUR as at 31 March 2023,
• − 4.6525 PLN/EUR as at 31 December 2022.

Average exchange rate in the period, calculated as the arithmetic mean of the rates applicable on the last day of each month in a given period:

• − 4.7005 PLN/EUR in the period from 1 January 2023 to 31 March 2023,
• − 4.6472 PLN/EUR in the period from 1 January 2022 to 31 March 2022.

05 Group segments

Consolidated statement of financial position – allocation to segments

				as at 31.03.2023 [PLN '000]
	Total	Residential	Resi4Rent	Commercial properties
Assets
Non-current assets
Intangible assets	71 615	69 585	-	2 030
Property, plant and equipment	62 080	12 174	-	49 906
Investment property	1 118 428	34 947	-	1 083 481
Investment property under construction	514 451	-	-	514 451
Investment in associates and joint ventures	507 217	-	200 848	306 369
Long-term financial assets	320 413	1 204	223 290	95 919
Derivative financial instruments	22 489	7 099	1 467	13 923
Other assets	1 231	1 231	-	-
Deferred tax asset	98 046	52 912	5	45 129
Land intended for development	21 061	17 354	-	3 707
	2 737 031	196 506	425 610	2 114 915
Current assets
Inventory	1 659 092	1 567 612	747	90 733
Current tax assets	15 899	3 118	-	12 781
Other taxes receivable	47 816	30 018	243	17 555
Trade and other receivables	333 155	180 148	8 469	144 538
Short-term financial assets	24 921	-	-	24 921
Derivative financial instruments	609	-	-	609
Other financial assets *	90 313	72 765	-	17 548
Cash and cash equivalents	778 458	282 709	157	495 592
	2 950 263	2 136 370	9 616	804 277
Assets held for sale	187 350	-	-	187 350
	3 137 613	2 136 370	9 616	991 627
Total assets	5 874 644	2 332 876	435 226	3 106 542

* Mainly cash on escrow accounts from residential clients

Consolidated statement of financial position

– allocation to segments

				as at 31.03.2023 [PLN '000]
	Total	Residential	Resi4Rent	Commercial properties
Equity and liabilities
Equity	1 820 910	561 523	236 514	1 022 873
	1 820 910	561 523	236 514	1 022 873
Long-term liabilities
Credits, loans, bonds	1 583 033	452 960	159 537	970 536
Long-term provisions	4 987	4 693	-	294
Deferred tax liabilities	118 479	54 948	-	63 531
Leasing	136 521	15 009	-	121 512
Other liabilities	74 419	19 078	-	55 341
	1 917 439	546 688	159 537	1 211 214
Short-term liabilities
Credits, loans, bonds	779 725	272 840	39 123	467 762
Credits, loans, bonds - non-current assets classified as held for sale	20 722	-	-	20 722
Acquisition of shares	52 269	52 269	-	-
Income tax payable	16 010	8 034	-	7 976
Other taxes liabilities	58 878	3 526	1	55 351
Trade payable	67 331	48 045	-	19 286
Leasing	96 477	53 507	-	42 970
Short-term provisions	52 392	28 931	51	23 410
Other liabilities	309 488	150 620	-	158 868
Liabilities due to customers	608 206	606 893	-	1 313
	2 061 498	1 224 665	39 175	797 658
Liabilities directly associated with non-current assets classified as held for sale	74 797	-	-	74 797
	2 136 295	1 224 665	39 175	872 455
Total equity and liabilities	5 874 644	2 332 876	435 226	3 106 542

Consolidated profit and loss account – allocation to segments

Total Residential Resi4Rent Commercial properties Revenues 210 093 146 354 5 858 57 881 Cost of sales (138 816) (98 682) (1 891) (38 243) Gross profit 71 277 47 672 3 967 19 638 Profit on investment property 843 - - 843 Administrative costs associated with project implementation (12 908) (10 151) (20) (2 737) Selling expenses (10 977) (8 816) (381) (1 780) General and administrative expenses (24 610) (10 750) (3 726) (10 134) Other operating income 7 713 4 576 1 3 136 Other operating expenses (6 038) (5 665) (2) (371) Operating profit 25 300 16 866 (161) 8 595 Financial income 8 326 3 362 2 671 2 293 Financial cost (46 418) (13 293) (2 231) (30 894) Profit (loss) on FX derivatives 124 (790) - 914 Foreign exchange gains (losses) 2 994 647 - 2 347 Share of profit (loss) of associates and joint ventures 30 517 - 32 531 (2 014) Profit before tax 20 843 6 792 32 810 (18 759) Income tax (6 233) (2 031) (9 812) 5 610 Net profit (loss) 14 610 4 761 22 998 (13 149) Equity holders of the parent 11 533 1 675 22 998 (13 140) Non-controlling interest 3 077 3 086 - (9)

for the period of 1 January - 31 March 2023 [PLN '000]

Echo Investment S.A. shareholding structure and shareholders' rights

Shareholders of Echo Investment S.A. as on the balance sheet day [25 May 2023]

The share capital of Echo Investment S.A. is divided into 412,690,582 ordinary bearer shares of A, B, C, D, E and F series. All issued shares are equal in terms of its rights and obligations, i.e. they are shares of the same type and incorporate the same rights and obligations.

The Company's share capital, i.e. the nominal value of all the shares, amounts to PLN 20,635 thousand, and it was paid in cash. The nominal value of one share is PLN 0.05. The number of shares equals the number of votes at the General Meeting of Shareholders. The securities issued

by Echo Investment S.A. do not provide their owners with any special controlling powers. Echo Investment S.A. does not have any information on limitations in exercising the voting right or transferring ownership rights by owners of its securities.

The shareholding structure information as it was on 31 March 2023 and as on the balance sheet day is based on notifications from shareholders and information on the OFE (Opened Pension Funds) portfolios composition as at 31 December 2022.

Significant changes in the shareholding structure in Q1 2023 and as on the balance sheet day

In Q1 2023 there were no significant changes in the shareholding structure. The members of the Management Board and Supervisory Board reported their purchases of the Companys' shares. Nicklas Lindberg, President of the Board, CEO purchased 22,000 shares and Péter Kocsis, Supervisory Board Member purchased 16,892 shares.

After the balance sheet date the Company was given:

• − on 11 April 2023 noticed by Wing International Zrt. about the indirect acquisition of 272,375,784 shares in Echo Investment S.A. from Wing IHC Zrt. As stated in the notification, the transaction was concluded between entities being members of the same capital group,
• − on 16 May 2023 informed by PTE Allianz Polska S.A., which manages Allianz Polska OFE, about the liquidation of Drugi Allianz OFE, on the account of Allianz OFE there were 39,781,769 shares, representing 9.64 percent of the share capital of the Company, granting the right to 39,781,769 votes from shares, representing 9.64 percent of the total number of votes at the Company's General Meeting of Shareholders.

Echo Investment was also informed about the purchase of 38,750 shares by Nicklas Lindberg after the balance sheet date, on 20 April 2023.

About the major shareholder

Wing is a leading real estate developer and investor in Hungary with a significant presence in the regional real estate market. Since its establishment in 1999, the company has developed 1.2 million square meters of real estate in Hungary. Wing is active in all market segments, including office, industrial, retail, hotel and residential development. As one of the largest privately owned real estate companies in Hungary, WING develops world-class landmark buildings that define the cityscape of Budapest. The company's latest developments include the new headquarters of Magyar Telekom and T-Systems - the country's most modern and largest new office building -, the Danube headquarters of Ericsson and Siemens-evosoft, the BB Hotel Budapest City and the Kassák Residence, Metropolitan Garden and Park West residential projects. Wing also plays a key role in the Central and Eastern European real estate market.

Volume of the Company's shares and bonds held by managing and supervising persons 07

To the best of the Company's knowledge, among the persons in charge of Echo Investment S.A. management or supervisory functions, the shareholders and bondholders of the Company are Nicklas Lindberg, President of the Management Board, Maciej Drozd Vice-president, CFO, Péter Kocsis and Bence Sass, members of the Supervisory Board.

Volume of shares of Echo Investment S.A. held by members of the Management Board and the Supervisory Board as on the balance sheet day [25 May 2023]

Surname / Position in the company	Number of shares held	Share in the capital and votes at GMS
Nicklas Lindberg President of the Board, CEO	906 372	0,22%
Maciej Drozd Vice-President of the Board, CFO	291 065	0,07%
Péter Kocsis Supervisory Board Member	111 084	0,03%
Bence Sass Supervisory Board Member	50 000	0,01%

In Q1 2023, Nicklas Lindberg, President of the Board, CEO purchased 22,000 shares and Péter Kocsis, Supervisory Board Member purchased 16,892 shares.

The Company was also informed about the purchase of 38,750 shares by Nicklas Lindberg after the balance sheet date, in Q2 2023.

Volume of bonds of Echo Investment S.A. held by members of the Management Board and the Supervisorys Board as on the balance sheet day [25 May 2023]

Surname / Position in the company	Number of bonds held
Maciej Drozd Vice-President of the Board, CFO	50 (kod PLECHPS00290)

To the best of the Company's knowledge, none of the other members of the Management Board or the Supervisory Board is a shareholder or a bondholder of the Company directly or indirectly as at the date of publication of the

report, none of them was a shareholder or bondholder on 31 December 2022 and during 2023, and none of them concluded any transactions for shares or bonds in the Company.

Major events in Q1 2023 08

Issue of bonds worth PLN 62 million for institutional investors

On 17 March 2023, Archicom S.A. issued one series of bonds for institutional investors.

The bonds are not secured and is listed on Warsaw Stock Exchange. The money raised will be spent on business development.

The offering agent was mBank.

Series	M7/2023
Value	PLN 62 mln
Maturity	2 years
Interest	WIBOR 3M + margin

Adoption of EGS strategy for Echo-Archicom Group ESG Strategy

On 23 March 2023 the Group announced its ESG Strategy Echo-Archicom 2030. It is a step-by-step road map that lays out how the Group is to decarbonize through zero-emission developments while further increasing the role of greenery in projects and supporting appropriate city development. Both companies also intend to provide their employees with equal career and training opportunities, maximize construction site safety and strengthen its corporate governance.

The Echo-Archicom 2030 sustainable development strategy comprises three parts that correspond to the environment (E), society (S) and corporate governance (G). All the goals conform to UN Sustainable Development Goals and they are both specific and measurable.

By 2026, only renewable energy is planned to be used by the Group in its offices, in each of its Cityspace loca-

2030

Echo-Archicom Group adopted of strategy due on its activities in the field of environmental protection, social involvement and responsible management, and announced goals conform to UN Sustainable Development Goals

tions, in all the buildings it constructs and owns, as well as on all of its construction sites. The strategy of the two companies is for their projects to counteract city sprawl. Both companies have also undertaken to plant trees with twice the ecological value as those that had to be felled in any given year. In the social sphere, the corporate goals are to ensure equality between men and women in their pay, promotions and in the positions they hold

as well as to ensure the safety and the high standard of working conditions on all of its construction sites. For corporate governance, the company has set itself the tasks of raising awareness of business ethics among its employees, improving the understanding of ESG at the Management and the Supervisory Board level and also of reviewing its good practices every year.

Photo: Wola Station apartments in Warsaw

Present of Towarowa 22 project in Warsaw

In March 2023, Echo Investment, together with its partner AFI Europe, presented a multifunctional development project for the purchased plot at Towarowa street in Warsaw, which was developed by the JEMS Architekci studio. It will be a flagship 'destination' project, a large placemaking project that meets the needs of Warsaw and will move the heart of the city over to Wola.

The project divides the former printing works site into eight new quarters, with streets, pedestrian and cycle paths running between them. The concept is to reconstruct Wronia street and the passage between Chłodna and Pańska streets, and in the ground floors to provide functions such as shops, cafés, restaurants and

services. The two central quarters of the site with the renovated Dom Słowa Polskiego pavilion will become a public space, a publicly accessible Park Słowa Polskiego, part of which will use the structure of the former halls. Around the park, buildings will be constructed with flats, offices, rental housing and the services needed on a daily basis. The total floor area of the buildings will be about 200,000 sqm. The highest point of the development will be a 150-metre-high office building at the junction of Towarowa and Pańska streets. The remaining development will gently slope down towards the south-east - to Miedziana street, creating a smooth transition between the metropolitan Daszyńskiego Roundabout and the historic buildings of Wola.

Towarowa 22

6.5-acre investment area located in the heart of Wola in Warsaw, a thriving district of Warsaw. The plot is intended for mixed-use buildings

150 metre

highest point of the development - office building at the junction of Towarowa and Pańska streets

200,000 sqm

total floor area of the buildings

Photo: Towarowa 22 in Warsaw

Sale of Moje Miejsce II office building in Warsaw

On 30 March 2023, West 4 Business Hub I, a modern A-class office building with 17,000 sqm GLA, was acquired by Trigea Real Estate Fund company.

The transaction value amounted to nearly EUR 45 million plus VAT and was reduced by the value of rent-free periods, rent reductions, as well as other costs. The amount payable at the closing was further reduced by the value of fit-out works. As a result, the price payable at the closing amounted to EUR 40.3 million plus VAT.

The office building is part of the Moje Miejsce (also known as My Place) project that forms a multifunctional urban quarter combining office buildings, apartments, service outlets and well-designed public spaces. Moje Miejsce II office building offers nearly 17,000 sqm of

leasable space and its tenants include Tchibo, NetWorks, Boehringer Ingelheim or Ekaterra, among others.

The entire Moje Miejsce destination project is already fully operational and completed.

A total of nearly 120 trees were planted within the project and in public areas along the surrounding Dziekońskiego, Beethovena and Aignera Streets. The office part of the project uses energy-efficient and pro-ecological solutions and technologies that support sustainability, which is confirmed by BREEAM certificates.

JEMS Architekci is responsible for the design of the project.

EUR 45 mln

the value of the transaction of the Moje Miejsce office building in Warsaw

Photo: Moje Miejsce II office building in Warsaw

09 Significant events after the balance sheet day

Preliminary understanding concerning a transfer of the residential business of Echo Investment S.A. to Archicom S.A.

On 18 April 2023 r. a preliminary agreement concerning an in-kind contribution by Echo to Archicom of the organisationally separated residential business of Echo was concluded..

The object of the transaction will not consist of any assets of Echo connected with execution of the apartments for rent (Resi4Rent/PRS).

Pursuant to the agreement, Echo Investment will acquire new shares of Archicom in exchange for a contribution in kind, which will be issued thereby, subject to the exclusion of the pre-emptive rights of the existing shareholders and offered for subscription by the Company after the Parties and their governing bodies complete all of the actions and obtain all of the consents that are required for the effective execution of the transaction.

Finalization of transaction, consisting of the Company making the In-kind Contribution to Archicom, is planned for July 2023.

The purpose of the transaction is to transfer the Echo Group's residential assets to Archicom, so that Archicom becomes the leader on the residential market in Poland.

Combining of the residential business in Archicom will give the company a nationwide scale with bigger growth potential, synergies and wider market presence. This move is in line with the Group's strategy to create the residential and commercial market leader. The change will also clarify the structure of the Group, where Archicom will be the residential part and Echo Investment will focus on growing the commercial and PRS segments, as well as on creating mixed-use 'destination' projects.

Acquisition of a stake of shares in Archicom S.A.

On 18 April 2023, Echo Investment Group acquired a block of Archicom S.A.'s shares representing 8.31 percent of the share capital and carrying 13.32 percent of total votes at the general meeting, through the acquisition of all shares of DKRA sp. z o.o. . The sellers were Archicom S.A. founders - Dorota Jarodzka-Śródka, Kazimierz Śródka and Rafał Jarodzki.The transaction was conducted on a basis of an option agreement dated 22 April 2021. The price of the shares amounted to PLN 61 million.

Establishment of a bond issue program for individual investors

On 4 April 2023, the Management Board of Echo Investment adopted a resolution on the establishment of a public program for the issuance of up to PLN 300 million or its equivalent in euro. The bonds will be offered in a public offering conducted after the approval of the base prospectus by the Polish Financial Supervision Authority (KNF). Detailed terms and conditions of the issue of bonds shall be set out prior to the issue of a given series of bonds. The Company plans to introduce the bonds issued under the prospectus to trading on the regulated market

Catalyst operated by the Warsaw Stock Exchange. Powszechna Kasa Oszczędności Bank Polski S.A. Branch - Brokerage Office in Warsaw will perform the function of the offering agent and the global coordinator.

PLN 300 million

maximum value of bonds that can be issued in the established program of bond issue for individual investors

Recommendation of the Company's Management Board on payment of dividend

Echo Investment's Management Board has made public its recommendation to allocate an amount equal to the advance dividend paid, i.e. PLN 90.8 million, or PLN 0.22 per share, to dividends from 2022 profit. The final decision will be taken by shareholders at the Ordinary General Meeting of Shareholders to be held on 29 June 2023.

Issue of bonds worth PLN 140 million for institutional investors

24 May 2023, Echo Investment issued one series of bonds for institutional investors.

The bonds are not secured and will be listed on Warsaw Stock Exchange. The money raised will be spent on business development and rollover of the company's debt maturing in 2023.

The offering agent was Ipopema Securities S.A..

The 2I/2023-series bonds public offering was carried out on the basis of the agreement approved Ipopema Securities S.A. registered in Warsaw, under the Company's bond issue program up to PLN 500 million.

Series	2I/2023
Value	PLN 140 mln
Maturity	5 years
Interest	WIBOR 6M + margin 4,5%

PLN 140 million

he value of the bonds issued for institutional investors

10 Residential segment for individual clients – market outlook and the Group's business activities

Polish residential for sale market in Q1 2023

According to JLL analysts, sales of apartments in the six main markets, i.e. Warsaw, Cracow, Wrocław, the Tri-City, Poznań and Łódź, were very good and amounted to 11,400 in Q1. This is due, among others, to concerns about possible price increases and limitations in apartments on offer arising from the announcement of introducing a government interest subsidy program to support first-time apartment purchases. The increase in demand was also influenced by a change in recommendations of the Polish Financial Supervision Authority regarding the rules for calculating creditworthiness (from the previous 5 percent buffer to 2.5 percent for periodically fixed-rate loans), which made loans more readily available. What additionally helped were decisions of the Monetary Policy Council, which has not raised interest rates since October (the reference rate has remained at 6.75 percent). The market was also influenced by reports about a possible limitation in the

number of units purchased during the year, or restrictions on the possibility to assign developer agreements. These are figures that allow for cautious optimism.

11,400

the number of units sold by developers in total in the six main markets, which is 34 percent more q/q

6,800

the number of newly launched apartments in total in the six main markets. Developers slowed down the start of sales of new projects, causing the offer in total in the six markets to fall at the end of March

43,800

the total number of units on offer in the six main markets at the end of Q1 Perspectives of each market sectors in comming 12 months: – Very optimistic – Optimistic

• Neutral
• Pesimistic
• Very pesimistic

Average prices of apartments on offer on the primary market [PLN/sqm, incl. VAT, shell and core]

29 Financial report of Echo Investment S.A. and its Group for Q1 2023

Echo Investment's achievements in the apartments for sale sector in Q1 2023

374

total sold apartments, of which the Echo Investment accounted for 116 apartments, and in Archicom – 258

2,863

the total number of units under construction. In Q1, the next phase of the project Sady nad Zieloną in Wrocław entered the offer, with 97 apartments

293

total jointly handed apartments to the customers (164 in Echo Investment and 129 in Archicom)

2,490

total number of units whose construction we plan to start by the end of the year

Photo: Browary Wrocławskie apartments in Wroclaw (Archicom)

Residential projects launched in Q1 2023

Residential projects with construction completed in Q1 2023

Project / address	Sales area [sqm]	Number of units	Start	Completed
WROCŁAW
Browary Wrocławskie BA2, BA3 ul. Jedności Narodowej	13 800	239	I Q 2021	I Q 2023

Apartments sold by the Echo Investment Group in Q1 2023 [units]

– Echo Investment – Archicom

* acquisition of Archicom development company in Q2 2021

Apartments booked as a result of the Echo Investment Group in Q1 2023 [units]

11 Residential segment for rent – market outlook and the Group's business activities

Polish PRS market in Q1 2023

According to JLL analysts, projects providing apartments being part of the private rented sector (PRS) are very popular and new developments are being leased very quickly, despite rising rents. The huge potential of the Polish private rented sector is due to several factors, including a structural shortage of apartments and a growing demand resulting in full occupancy of almost all existing projects in the private rented sector. Other factors include the needs of economic migrants or refugees seeking a safe place to live, the development of cities resulting from low levels of urbanisation, the process of singularisation of households, and mobility associated with various forms of employment. With regard to the investor's perspective, the expected yield compression and further price increases in the coming years provide an additional incentive to enter the market.

There is currently the greatest interest among tenants and investors in the PRS market. Almost all properties designated for this purpose are fully rented. This situation holds despite rising rents. According to the analysts of Expander and Rentier. io, the average rent increase amounted to 24 percent y/y, although it varies significantly depending on the city and location. The largest increases were recorded in Cracow (36 percent), Warsaw (31 percent) and Wrocław (31 percent). After these increases, Warsaw is still the most expensive, where the average cost is PLN 75 per square metre.

Poles are more willing to rent from private institutions than from an individual landlord. Although the private rented sector is slightly more expensive, they are willing to pay more for professional property management.

Despite its dynamic growth in recent years, the Polish PRS is still in its infancy and accounts for only a small percentage of all units available on the domestic market of apartments for rent. The development prospects for it are very promising - both for investors and potential tenants.

What is a question mark for the future of PRS companies are legal changes under way in parliament, which are intended to restrict the package purchases of apartments.

Perspectives of each market sectors in comming 12 months:

• Very optimistic
• Optimistic
• Neutral
• Pesimistic – Very pesimistic

10,800

existing stock of apartments in the PRS in Poland at the end of Q1 2023

Echo Investment's achievements in the apartments for rent sector in Q1 2023

In Q1 2023, Resi4Rent, a company offering subscription-based apartments, strengthened its position as the PRS market leader.

3,342

total apartments in the entire Resi4Rent offer, in 12 locations in the six largest cities in Poland - Gdańsk, Łódź, Poznań, Warsaw, Wrocław and Kraków

344

Resi4Rent launched apartments, Żwirki i Wigury project in Warsaw

5,846

Resi4Rent units under construction and in preparation, of which 766 will be commissioned to the end of year

10,000

number of Resi4Rent subscription will be until 2025

Photo: Resi4Rent – Taśmowa street in Warsaw

12 Office segment – market outlook and Group business activities

Office market in Warsaw in Q1 2023

According to CBRE data, the Warsaw office market remained active in the first quarter of 2023, despite the fact that there was no new building completed. This is the aftermath of developers' decisions made 2-3 years ago, a lack of building permits and difficulties in acquiring attractive plots of land. This has resulted in a widening supply gap and intensifying competition between tenants for those offices that are already available. In the case of new buildings, there is a need for interested companies to secure agreements long before construction is completed, especially in high-quality office buildings in prime locations.

6.26 million sqm

total stock of modern office space in Warsaw at the end of March 2023

200,000 sqm

office space under construction, of which 60,000 sqm is expected to be delivered by the end of 2023

159,000 sqm

demand for office space in Warsaw in the Q1 2023. The figure is 40 percent lower y/y, but then we dealt with the historically most active first quarter and one of the strongest quarters on record. Mainly tenants from the business services, logistics and processing and energy sectors were responsible for the demand in the Warsaw office market, leasing almost half of all space in total

70 percent

this was the share of new agreements in the structure of the recorded demand, 25 percent were renegotiations and 5 percent – expansions

11.6 percent

vacancy rate, which remains at the same level as at the end of last year, which resulted in 724,600 sqm of vacant offices. In central zones, the vacancy rate fell to 10.2 percent, while outside the city centre it reached 12.7 percent

Perspectives of each market sectors in comming 12 months: – Very optimistic

• Optimistic
• Neutral
• Pesimistic
• Very pesimistic

Office market in regional markets in Q1 2023

According to JLL analysts, in the first three months of 2023, developers focused on regional markets, which are gradually developing. Cracow, among others, was enriched by new office space, and the current interest among tenants remains at a fairly high level. The demand is spread proportionally across the regional cities. Tenants are paying attention to ESG issues and ensuring the comfort provided by working from offices for their employees. The first quarter was also the first time in the history of market development that the total supply in regional cities exceeded the supply in the capital.

6.47 million sqm

total stock of modern office space in the eight main regional markets at the end of March 2023. The largest markets are Cracow (1.7 million sqm) and Wrocław (1.3 million sqm)

530,000 sqm

office space under construction. This is more than 8 percent less q/q

68,100 sqm

space of office buildings delivered. The largest completed projects are Ocean Office Park B in Cracow (28,600 sqm) and Centrum Południe 3 in Wrocław (20,800 sqm)

175,000 sqm

demand for office space in the eight main regional markets. This is 13 percent more y/y. Most space was leased in Cracow (38,400 sqm) and Wrocław (36,200 sqm)

50 percent

this was the share of the demand structure recorded by new agreements, 44 percent were renegotiations and renewals, 6.5 percent expansions, and 3 percent was leased for personal use. The largest transactions included renewing a contract with Sii in the Olivia Prime building in Gdańsk (10,100 sqm), a new lease contract signed by Alorica in the React building in Łódź (5,000 sqm) and a renewal of a lease contract by UPS in Wrocław's Bema Plaza (4, 600 sqm)

15.9 percent

vacancy rate (up 0.6 p.p. q/q), which resulted in 1 million sqm of leasable space. The highest vacancy rate was recorded in Łódź (20.5 percent)

Perspectives of each market sectors in comming 12 months:

• Very optimistic
• Optimistic
• Neutral
• Pesimistic
• Very pesimistic

Main office markets in Poland – key indicators in Q1 2023

City	Existing space ['000 sqm]	New buildings ['000 sqm]	Gross demand ['000 sqm]	Vacancy rates [%]	Monthly rental rates [EUR/sqm]
Warsaw	6 256	0,0	159	11,6	18-26 11-17*
Kraków	1 751	42,6	38,4	17,4	15-17
Wrocław	1 313	20,9	36,2	17,3	14,5-15,5
Katowice	726	0,0	19,2	17,1	13,5-14,8
Łódź	632	0,0	14,6	20,5	12-14

Source: JLL

* CBD – central business district (limited by the Vistula, Trasa Łazienkowska, Raszyńska and Towarowa streets and WZ route) ** NCL – non-central location (the rest of Warsaw)

Echo Investment's achievements in the office sector in Q1 2023

Commercial real estate continues to be a strong pillar of Echo Investment's business. The Echo Investment Group started the first quarter with the sale of Moje Miejsca II in Warsaw, the second office building of the 'destination' mixed-use project. The transaction confirms the unflagging interest of both investors and tenants in sustainable

projects offering both apartments and offices combined with services. Meanwhile, the largest fit-out project completed by Echo this year was the new office of the Archicom Group in the MidPoint71 building in Wrocław, designed by 3XA Architects.

EUR 45 million

transaction value of the sale of the Moje Miejsce II office building in Warsaw. The area of the sold project is 17,000 sqm

5,300 sqm

total area finished and prepared for tenants in Echo Investment's buildings, including the new office in MidPoint71 for Archicom

5,000 sqm

total area of leased office space in the Echo Investment Group buildings. New tenants will appear in the MidPoint71 office buildings in Wrocław and React in Łódź

Photo: Archicom office in MidPoint71office building in Wroclaw

CitySpace's achievements in the the flexible office in Q1 2023

Photo: CitySpace in Q3 Business Campus in Cracow

The key activities around which CitySpace's operations focused in the first quarter of 2023 were preparations for the opening of its thirteenth office, its decision to expand in Wrocław, preparations to launch a comprehensive customer satisfaction survey and bringing offices across the network up to a standard that supports ESG.

13

this is how many offices CitySpace holds from May 2023, thanks to the opening of its first office in Łódź in the Fuzja project

12

number of locations in the CitySpace portfolio at the end of March. In total, their area is 25,000 sqm and they are located in 5 cities: Warsaw, Wrocław, Cracow, Katowice and Gdańsk.

2,818

number of leased workstations at the end of March. The overall occupancy rate in CitySpace in already stabilised locations was 81 percent

3,752

number of workstations currently offered by CitySpace, of which 273 are desks prepared in Fuzja in Łódź

13 Retail segment – market outlook and Group business activities

Retail real estate market in Poland in Q1 2023

The Polish retail real estate market recorded a good start to the year.

According to Cushman&Wakefield analysts, the first quarter was characterised by high occupancy, with an average 18 percent higher y/y. The average turnover of tenants in February 2023 was more than 30 percent higher compared to February 2022, but after accounting for rising inflation, its actual turnover was 11 percent lower. Consumers' spending and thus tenants' turnover in retail facilities are negatively affected by shrinking wallets of Polish shoppers and worsening sentiments. The structure of spending is also changing - the amount of money being spent on goods and services outside the basket of basic goods is decreasing. The year 2023 will see rather negative retail sales dynamics, which may amount to approx. 5 percent.

The first quarter brought an increase in rents for units in the best shopping centres and retail parks, which was largely the result of indexation of rates by inflation and resulted from provisions in lease agreements. Since the beginning of the year, two new brands have appeared in Poland -

Ukrainian Master Burger and British Lush. The year 2023 may bring further debuts of brands such as Woolworth, Popeyes, Fruitissimo and Bob Snail.

107,400 sqm

modern retail space delivered

12

no. of new or modernised facilities, the biggest opening was at Fort Wola (22,000 sqm GLA) and the Promenada shopping centre in Warsaw

13,5 million sqm

total retail space in Poland

362,300 sqm

retail space under construction, which includes, i.a. 32 new facilities and 6 existing facilities to be expanded

300,000 sqm

this is how much modern retail space will be delivered in 2023

Perspectives of each market sectors in comming 12 months: – Very optimistic – Optimistic – Neutral

– Pesimistic – Very pesimistic

Echo Investment's achievements in the retail real estate segment in Q1 2023

The strategy of strengthening the Libero Katowice and Galeria Młociny shopping centers, based on the continuous expansion of the offer and strong marketing support, is successful. Both centers are almost 100 percent occupied and record constant increases in footfall while increasing tenant turnover. Libero, as a "convenience" shopping center, has become a "neighbourhood gallery" -

close, comprehensive, offering many possibilities.

2023 was a continuation of growth in both locations. Libero's turnover in Q1 2023 was 27 percent higher than in Q1 2022 while its footfall grew by 7 percent. An equally good situation is observed in Galeria Młociny in Warsaw. Here, the turnover increased by 25 percent and footfall - by 20 percent.

Strategically, for Echo Investment, retail and service components are an element which strengthens the attractiveness of multifunctional "destination" projects such as the Warsaw Breweries or Fuzja in Łódź.

8

number of lease agreements with restaurants, cafes, service outlets and local shops, signed by food&beverage team, which will make Echo Investment's projects more attractive. Among the tenants joined m.in. Baken, a new concept breakfast room Bułka by Bibułka creators, Sakana Sushi, as well as new points in Resi4Rent residential projects

Photo: Galeria Libero in Katowice

14 Portfolio of properties

Residential

Definitions:

Sales level – the item exclusively concerns preliminary contracts

An estimated budget includes the value of land, cost of design, construction and external supervision. It does not include the cost of supply maintenance, interest costs or activated financial costs, marketing and total personnel costs related to the project. The Company estimates additional costs to equal on average 6 percent of the targeted budget.

Archicom Group's residential projects completed in Q1 2023

Project / address	Sales area [sqm]	Number of units	Sales level [% of units]	Targeted revenues [PLN mln]	Targeted budget [PLN mln]	Expenditu re incurred [%]	Start	Targeted completion
WROCŁAW
Browary Wrocławskie BA2, BA3 ul. Jedności Narodowej	13 800	239	89%	182,4	94,3	90%	I Q 2021	I Q 2023
Total	13 800	239	89%	182,4	94,3	90%

Echo Group's residential projects under construction as at 31 March 2023

Project / address	Sales area [sqm]	Number of units	Sales level [% of units]	Targeted revenues [PLN mln]	Targeted budget [PLN mln]	Expenditu re incurred [%]	Start	Targeted completion
KRAKÓW
ZAM II ul. Rydlówka	5 500	100	21%	75,1	50,5	32%	IV Q 2022	II Q 2024
Bonarka Living II C ul. Puszkarska	9 900	179	73%	101,8	76,4	69%	I Q 2022	III Q 2023
Bonarka Living II D ul. Puszkarska	8 400	151	68%	87,0	63,3	57%	I Q 2022	III Q 2023
ŁÓDŹ
Fuzja III ul. Tymienieckiego	9 100	159	84%	81,1	60,9	83%	II Q 2021	II Q 2023
Boho ul. Wodna	12 800	239	51%	105,1	78,3	67%	IV Q 2021	III Q 2023
Fuzja Lofty G01 ul. Tymienieckiego	7 900	160	18%	83,5	61,8	17%	IV Q 2022	IV Q 2024
POZNAŃ
Wieża Jeżyce I ul. Janickiego	11 600	206	86%	109,4	77,3	69%	IV Q 2021	IV Q 2023
WARSAW
Rytm Kabaty al. KEN	17 300	288	70%	289,4	184,8	64%	I Q 2022	IV Q 2023
Total	82 500	1 482	62%	932,4	653,3	60%

Archicom Group's residential projects under construction as at 31 March 2023

Project / address	Sales area [sqm]	Number of units	Sales level [% of units]	Targeted revenues [PLN mln]	Targeted budget [PLN mln]	Expenditu re incurred [%]	Start	Targeted completion
WROCŁAW
Browary Wrocławskie BP5-6 ul. Jedności Narodowej	9 300	188	79%	108,7	63,7	67%	I Q 2022	IV Q 2023
Olimpia Port M24, M25, M26 ul. Ameriga Vespucciego	10 700	181	60%	127,8	69,9	74%	III Q 2021	III Q 2023
Olimpia Port M37, M39 ul. Ameriga Vespucciego	7 800	156	69%	81,5	55,8	75%	IV Q 2021	II Q 2023
Planty Racławickie R8 ul. Wichrowa / Racławicka	5 500	94	90%	59,4	38,0	80%	IV Q 2021	III Q 2023
Planty Racławickie R9 ul. Wichrowa / Racławicka	9 500	177	12%	118,3	77,6	35%	III Q 2022	II Q 2024
Awipolis etap 3 ul. Władysława Chachaja	6 600	121	83%	60,4	43,0	88%	IV Q 2021	III Q 2023
Sady nad Zieloną 2 A1, C ul. Blizanowicka	5 000	97	0%	48,2	36,3	22%	I Q 2023	IV Q 2024
Nowa Kępa Mieszczańska KM4 ul. Mieszczańska	8 700	184	58%	119,4	79,9	65%	I Q 2022	I Q 2024
Nowa Kępa Mieszczańska KM5 ul. Mieszczańska	2 000	18	0%	28,6	24,2	24%	III Q 2022	I Q 2025
Nowa Kępa Mieszczańska KM6 ul. Mieszczańska	7 200	165	21%	101,3	72,0	46%	II Q 2022	III Q 2024
Total	72 300	1 381	51%	853,5	560,5	59%
Total of Echo Investment Group's residential projects under construction	154 800	2 863		1 785,8	1 213,8

Echo Group's residential projects under preparation as at 31 March 2023

Project / address	Sales area [sqm]	Number of units	Targeted revenues [PLN mln]	Targeted budget [PLN mln]	Expenditure incurred [%]	Targeted start	Targeted completion
KRAKÓW
Wita Stwosza Resi ul. Wita Stwosza	8 700	184	125,0	75,8	26%	III Q 2023	I Q 2025
ŁÓDŹ
Zenit II ul. Widzewska	6 000	120	46,4	32,1	24%	III Q 2023	IV Q 2024
Zenit III ul. Widzewska	8 000	159	62,3	43,2	17%	I Q 2024	III Q 2025
Zenit IV ul. Widzewska	8 700	173	72,2	48,5	11%	II Q 2024	IV Q 2025
Zenit V ul. Widzewska	9 900	184	86,8	53,9	7%	I Q 2025	III Q 2026
Zenit VI ul. Widzewska	8 500	170	76,7	46,8	7%	III Q 2025	I Q 2027
Zenit VII ul. Widzewska	5 400	107	45,0	31,4	8%	I Q 2024	II Q 2025
Zenit VIII ul. Widzewska	9 300	165	84,0	54,3	7%	I Q 2024	III Q 2025
Zenit IX ul. Widzewska	6 800	115	62,8	40,5	7%	II Q 2025	IV Q 2026
Fuzja Lofty G02 ul. Tymienieckiego	9 700	171	104,5	86,7	8%	III Q 2023	I Q 2026
POZNAŃ
Apartamenty Esencja II ul. Grabary	6 800	139	78,4	54,7	19%	IV Q 2023	III Q 2025
Wieża Jeżyce II ul. Janickiego	15 100	259	151,3	101,6	15%	III Q 2023	I Q 2025
Wieża Jeżyce III ul. Janickiego	13 600	242	143,4	94,9	14%	II Q 2024	IV Q 2025
Wieża Jeżyce IV ul. Janickiego	11 900	183	142,0	92,3	13%	I Q 2024	IV Q 2025
Opieńskiego I ul. Opieńskiego	15 300	174	128,9	92,1	9%	III Q 2024	II Q 2026
Opieńskiego II ul. Opieńskiego	12 500	212	108,7	75,1	9%	I Q 2025	IV Q 2026
Opieńskiego III ul. Opieńskiego	17 200	266	156,6	103,9	8%	III Q 2025	III Q 2027
Opieńskiego IV ul. Opieńskiego	10 000	160	99,7	60,2	9%	I Q 2026	IV Q 2027
WARSAW
Stacja Wola III ul. Ordona	13 300	232	208,4	117,9	26%	II Q 2023	III Q 2025
Projekt Mokotów I ul. Domaniewska	29 600	556	521,6	313,8	31%	II Q 2023	IV Q 2024
Projekt Mokotów II ul. Domaniewska	15 000	263	279,9	154,7	29%	I Q 2024	IV Q 2025
Projekt Mokotów III ul. Domaniewska	15 600	270	299,4	164,9	28%	I Q 2025	IV Q 2026

Echo Group's residential projects under preparation as at 31 March 2023

Project / address	Sales area [sqm]	Number of units	Targeted revenues [PLN mln]	Targeted budget [PLN mln]	Expenditure incurred [%]	Targeted start	Targeted completion
Projekt Mokotów IV ul. Domaniewska	6 300	123	124,3	67,5	28%	III Q 2025	III Q 2027
Total	263 200	4 627	3 208,3	2 006,7	19%

Archicom Group's residential projects under preparation as at 31 March 2023

Project / address	Sales area [sqm]	Number of units	Targeted revenues [PLN mln]	Targeted budget [PLN mln]	Expenditure incurred [%]	Targeted start	Targeted completion
WROCŁAW
Planty Racławickie R10 ul. Wichrowa / Racławicka	5 500	98	67,9	45,1	15%	III Q 2023	II Q 2025
Gwarna ul. Gwarna	4 000	107	58,7	42,1	30%	III Q 2023	III Q 2025
Awipolis etap 4a ul. Władysława Chachaja	10 000	188	35,2	26,4	12%	II Q 2023	I Q 2025
Awipolis etap 4b ul. Władysława Chachaja	3 200	56	98,2	73,9	11%	IV Q 2023	III Q 2025
Sady nad Zieloną 2 B ul. Blizanowicka	6 400	123	32,0	24,1	19%	IV Q 2023	III Q 2025
Czarnieckiego - M ul. Stefana Czarnieckego	4 000	97	64,4	46,6	14%	III Q 2024	IV Q 2026
Czarnieckiego - AH ul. Stefana Czarnieckego	2 200	58	53,0	36,7	12%	III Q 2024	I Q 2027
Iwiny - Schuberta ul. Schuberta	4 000	60	32,3	23,2	12%	II kw 2024	IV Q 2025
Iwiny - Radomierzycka 1 ul. Radomierzycka	9 500	179	90,1	65,3	19%	I Q 2024	IV Q 2025
Iwiny - Radomierzycka 2 ul. Radomierzycka	10 800	202	102,8	74,0	17%	IV Q 2024	II Q 2026
Iwiny - Radomierzycka 3 ul. Radomierzycka	10 700	199	102,1	73,9	17%	IV Q 2025	II Q 2027
Meridian K1 ul. Karkonoska	14 700	285	179,3	123,7	16%	I Q 2024	II Q 2026
Meridian K2 ul. Karkonoska	9 500	187	116,7	77,1	16%	III Q 2024	IV Q 2026
Browary Wrocławskie R1R2 ul. Rychtalska	6 600	128	86,7	57,7	11%	I Q 2024	I Q 2026
Góralska 1 ul. Góralska	6 900	124	90,9	59,6	16%	I Q 2025	I Q 2027
Góralska 2 ul. Góralska	11 000	216	142,5	95,8	16%	II Q 2025	II Q 2027
WARSAW
Projekt Mokotów ul. Domaniewska	14 400	257	239,5	171,4	39%	III Q 2023	II Q 2025

Archicom Group's residential projects under preparation as at 31 March 2023

Project / address	Sales area [sqm]	Number of units	Targeted revenues [PLN mln]	Targeted budget [PLN mln]	Expenditure incurred [%]	Targeted start	Targeted completion
POZNAŃ
Projekt Poznań I* ul. Janickiego	12 500	266	139,6	105,1	23%	I Q 2024	I Q 2026
Projekt Poznań II* ul. Janickiego	14 000	293	159,5	116,9	23%	III Q 2024	II Q 2026
KRAKÓW
Dąbrowskiego D1 D2 ul. Dąbrowskiego	2 700	55	37,5	25,1	16%	I Q 2024	IV Q 2025
Dąbrowskiego D3 ul. Dąbrowskiego	1 400	31	19,5	13,1	18%	I Q 2024	IV Q 2025
Duża Góra ul. Duża Góra	4 700	76	52,5	37,4	10%	I Q 2024	IV Q 2025
Total	168 700	3 285	2 001,2	1 414,2	20%
Total of Echo Investment Group's re sidential projects under preparation	432 000	7 912	5 209,5	3 420,9

* as at 31 March 2023, projects in the process of being sold from the Echo Investment Group to the Archicom Group. After the balance sheet date, on 28 April 2023, the promised agreement on the sale of the projects was concluded

All residential properties are presented as inventory in the consolidated statement of financial position.

Residential projects for rental platform Resi4Rent

Definitions:

An estimated budget of Resi4Rent projects includes the value of land, cost of design, construction and external supervision, development services and financial costs. It does not include the cost of the platform operation, such as marketing.

Residential projects of rental platform Resi4Rent in operation as at 31 March 2023

	Residential		Targeted annual net rental	Targeted
	area	Number	revenues NOI	budget
Project / address	[sqm]	of units	[PLN mln]	[PLN mln]	Completion
WROCŁAW
R4R Wrocław Rychtalska ul. Zakładowa	11 400	302	10,7	76,8	III Q 2019
R4R Wrocław Kępa Mieszczańska ul. Dmowskiego	9 300	269	8,7	76,3	II Q 2020
ŁÓDŹ
R4R Łódź Wodna ul. Wodna	7 800	219	6,0	52,4	IV Q 2019
WARSAW
R4R Warszawa Browary ul. Grzybowska	19 000	450	22,7	187,6	III Q 2020
R4R Warszawa Suwak ul. Suwak	7 900	227	7,7	60,7	IV Q 2020
R4R Warszawa Taśmowa ul. Taśmowa	13 000	372	12,6	112,1	I Q 2021
R4R Warszawa Woronicza ul. Żwirki i Wigury	5 200	161	7,2	53,2	IV Q 2022
R4R Warszawa II ul. Żwirki i Wigury	11 200	344	15,4	127,2	I Q 2023
GDAŃSK
R4R Gdańsk Kołobrzeska ul. Kołobrzeska	10 000	302	10,7	88,7	II Q 2021
POZNAŃ
R4R Poznań Jeżyce ul. Szczepanowskiego	5 000	160	4,7	45,3	III Q 2021
KRAKÓW
R4R Kraków Bonarka ul. Puszkarska	5 100	149	5,2	40,2	III Q 2022
R4R Kraków Błonia ul. 3 Maja	12 100	387	14,0	102,1	IV Q 2022
Total	117 000	3 342	125,6	1 022,6

Residential projects of rental platform Resi4Rent under construction as at 31 March 2023

Project / address	Residential area [sqm]	Number of units	Estimated annual rental revenue for stabilized asset [PLN mln]	Targeted budget [PLN mln]	Start	Targeted completion
WROCŁAW
R4R Wrocław ul. Jaworska	13 700	391	14,0	133,7	III Q 2021	III Q 2023
R4R Wrocław Park Zachodni ul. Horbaczewskiego	10 100	301	11,7	104,8	II Q 2022	II Q 2024
R4R Wrocław II ul. Jaworska	9 700	290	11,2	103,8	III Q 2022	II Q 2024
R4R Wroclaw ul. Grabiszyńska	13 000	358	14,3	161,3	III Q 2022	I Q 2025
ŁÓDŹ
R4R Łódź ul. Kilińskiego	9 700	287	9,0	102,9	II Q 2022	I Q 2024
WARSAW
R4R Warszawa ul. Wilanowska	12 200	375	16,0	132,4	III Q 2021	II Q 2023
POZNAŃ
R4R Poznań ul. Brneńska	13 000	411	14,8	149,2	IV Q 2022	IV Q 2024
KRAKÓW
R4R Kraków ul. Romanowicza	29 300	873	36,2	354,7	IV Q 2022	I Q 2025
Total	110 700	3 286	127,2	1 242,8

Residential projects of rental platform Resi4Rent in preparation as at 31 March 2023

Project / address	Residential area [sqm]	Number of units	Estimated annual rental revenue for stabilized asset [PLN mln]	Targeted budget [PLN mln]	Start	Targeted completion
WARSAW
R4R Warszawa 2	7 800	279	11,4	110,9	II Q 2023	I Q 2025
POZNAŃ
R4R Poznań 4	22 200	670	24,9	266,1	III Q 2023	II Q 2025
KRAKÓW
R4R Kraków ul. Jana Pawła II	8 700	296	10,9	97,2	II Q 2023	II Q 2025
GDAŃSK
R4R Gdańsk etap 1*	9 900	286	13,7	142,6	II Q 2023	I Q 2025
R4R Gdańsk etap 2*	10 400	292	13,8	148,5	II Q 2023	I Q 2025
R4R Gdańsk 2	24 200	737	29,8	295,8	II Q 2023	II Q 2025
Total	83 200	2 560	104,5	1 061,1

* the project is being sold from the Echo group to Resi4Rent

The table "Residential projects of rental platform Resi-4Rent in preparation" presents only properties with projects that are owned by the Resi4Rent group or are in the process of being sold from the Echo Investment Group to Resi4Rent. They do not present investments on plots secured by Resi4Rent (e.g. with a preliminary agreements), even if the preparation of the project is advanced.

Office

Definitions:

GLA – gross leasable area

NOI – net operating income with the assumption of full rental and the average market rent rates

ROFO – (right of first offer)

Due to 25 percent of capital participation in the project, ROFO partner is entitled to 25 percent of profit after sale of project.

Completion – date of commissioning permit. Significant part of fit-out works to be done after this date. An estimated budget includes the value of land, cost of design, construction and external supervision. It does not include the personnel costs related to the project, cost of marketing, leasing and financing, which are estimated by the Company to equal on average 7 percent the targeted budget. In addition, it does not include costs reducing sales revenue (price), such as master lease, profit share and costs of projects sale. Fair value includes currency differences on investment loans. The recognised fair value gain is reduced by the profit share obligation and the provision to secure rent-free periods (master lease).

Echo Investment Group's office building in operation as at 31 March 2023

Project / address	GLA [sqm]	Leasing [%]	NOI [EUR mln]	Targeted budget [PLN mln]	Expendi ture incurred [%]	Recognized fair value gain cumulatively [PLN mln]	Completion	Comments
React I Łódź al. Piłsudskiego	15 000	78%	2,5	118,9	77%	16,2	I Q 2022	Investment property.
Brain Park I Kraków, al. Pokoju	29 700	65%	5,6	283,8	78%	47,4	IV Q 2022	Investment property.
City Forum – City 2 Wrocław, ul. Traugutta	12 700	98%	2,4	95,4	97%	51,1*	II Q 2020	Archicom's S.A. office building. Asset available for sale.
Total	57 400		10,5	498,1		63,6

* cumulative fair value due account the valuation before the date of purchase Archicom S.A. Group by Echo Investment Group

Echo Group's office buildings under construction as at 31 March 2023

Project / address	GLA [sqm]	Leasing [%]	NOI [EUR mln]	Targeted budget [PLN mln]	Expen diture incurred [%]	Recognized fair value gain [PLN mln]	Start	Targeted completion	Comments
Fuzja I01 & I03 Łódź, ul. Tymienieckiego	9 400	0%	1,6	89,3	28%	-	I Q 2022	III Q 2024	Building sold.
Brain Park II Kraków, al. Pokoju	13 000	24%	2,5	127,9	45%	11,2	III Q 2022	IV Q 2023
Total	22 400		4,1	217,2		11,2

Echo Group's office buildings in preparation as at 31 March 2023

Project / address	GLA [sqm]	NOI [EUR mln]	Targeted budget [PLN mln]	Expenditure incurred [%]	Targeted start	Targeted completion	Comments
Wita Stwosza Kraków, ul. Wita Stwosza	26 600	5,4	264,5	23%	III Q 2023	II Q 2025
React II Łódź, al. Piłsudskiego	25 900	4,5	197,2	8%	IV Q 2024	II Q 2026
Swobodna I Wrocław, ul. Swobodna	16 200	3,3	154,2	13%	II Q 2023	II Q 2025
Swobodna II Wrocław, ul. Swobodna	25 600	5,1	241,1	12%	III Q 2024	III Q 2026
West 4 Business Hub II Wrocław, ul. Na Ostatnim Groszu	23 100	4,2	190,5	14%	II Q 2024	IV Q 2025
West 4 Business Hub III Wrocław, ul. Na Ostatnim Groszu	33 400	6,0	273,5	11%	II Q 2025	IV Q 2026
T22 Office B Warszawa, ul. Towarowa	31 100	8,9	424,5	19%	II Q 2023	II Q 2025	Project owned by Echo Investment (30 percent) and AFI Eu rope (70 percent).
Total	181 900	37,4	1 745,5

All office buildings under construction and under preparation are presented as 'investment properties under construction' in the condensed interim consolidated statement of financial position.

Retail

Definitions:

GLA – gross leaseable area

NOI – net operating income with the assumption of full rental and the average market rent rates

ROFO – right of first offer

Completion – date of commissioning permit. Significant part of fit-out works to be done after this date.

Due to 25 percent of capital participation in the project, ROFO partner is entitled to 25 percent of profit after sale of project.

Retail projects in operation as at 31 March 2023

Project / address	GLA [sqm]	Leasing [%]	NOI [EUR mln]	Targeted budget [PLN mln]	Expen diture incurred [%]	Recognized fair value gain cumu latively [PLN mln]	Completion	Comments
Libero Katowice, ul. Kościuszki	44 900	98%	9,0	390,4	100%	173,4*	IV Q 2018	ROFO agreement with EPP.
Galeria Młociny Warszawa, ul. Zgrupowania AK "Kampinos"	84 300	95%	20,6	1 273,7	99,9%	6,9**	II Q 2019	Joint venture with EPP in the proportions of 30:70 percent.
Pasaż Opieńskiego Poznań, ul. Opieńskiego	13 500	96%	0,9	n/a	n/a	n/a	n/a	Building to be demo lished.
Pasaż Kapelanka Kraków, ul. Kapelanka	17 800	99%	2,0	n/a	n/a	n/a	n/a	Building to be demo lished.
Total	160 500		32,4	1 664,1		180,3

* profit with account changes in Profit Share provision

** profit recognized by the Echo Group (30 percent)

Libero shopping centre is presented as 'investment property' in the condensed interim consolidated statement of financial position.

Proportional shares in Galeria Młociny are included in the item 'investments in associates and joint ventures'.

Echo Group's early stage projects as at 31 March 2023

		Potential of leasing
Project / address	Plot area [sqm]	/ sales area [sqm]	Comments
Warszawa, ul. Towarowa	55 500	166 600	"The project on the plot office and service functions owned in 30% by Echo Investment and in 70% by AFI Europe. Ultimately, the plot for residential will be owned by Echo Investment group."
Kraków, ul. Kapelanka	56 000	75 900	Plot for office, service and rental apartments.
Warszawa, al. KEN	29 600	26 500	Plot for office, service and apartments.
Łódź, ul. Tymienieckiego	22 100	26 800	Plot for office, service and residential functions.
Kraków, Wita Stwosza	3 200	4 600	Plot for service / rental apartments.
Katowice, ul. Piotra Skargi	3 700	26 500	Plot for office, service / rental apartments.
Łódź, ul. Widzewska	19 700	33 700	Plot for residential functions.
Total	189 800	360 600

Archicom Group's early stage projects as at 31 March 2023

		Potential of leasing
Project / address	Plot area [sqm]	/ sales area [sqm]	Comments
Projekt Kraków	3 400	7 000
Total	3 400	7 000

Echo Group's other properties as at 31 March 2023

Project / address	Plot area [sqm]	Comments
Poznań, Naramowice	77 500
Zabrze, ul. Miarki	8 100
Total	85 600

Archicom Group's other properties as at 31 March 2023

	Plot area
Project / address	[sqm]	Comments
Wrocław, ul. Murowana	3 100	Plot for residential function.
Wrocław, Jagodno	3 500	Plot for residential function.
Wrocław, ul. Vespucciego	700	Plot for green areas, with the possibility of building a gastronomic pavilion.
Total	7 300

15 Main investments in Q1 2023 – acquisition of plots

22,000 sqm

total residential potential of real estates secured by Echo Investment preliminary agreements

26,600 sqm

residential potential of real estates secured by Archicom preliminary agreements

In Q1 2023, Archicom Nieruchomości 12 Sp. z o.o. entered into a promised agreement with natural persons regarding the purchase of shares in a property located in Wrocław at Sokolnicza/Zelwerowicza Street. Currently, Archicom Nieruchomości 12 Sp. z o.o. holds a 23.96 percent stake in the

property. Archicom S.A. also concluded the purchase of 100 percent of shares in Mioga Investment Sp. z o.o., which on 23 March 2023 acquired the perpetual usufruct right to a property located in Cracow, where approximately 7,000 sqm of residential space can be developed.

The potential of purchased real properties is estimated based on planning documents and guidelines valid at the date of purchase. Ultimately, the use of each property is determined at a later stage of project preparation, taking into account current planning documents, arrangements, market potential and finally accepted project concept.

16 Factors and unusual events affecting the results in Q1 2023

Hand overs of 164 housing and retail units of Echo Group to clients.

Echo Group residential project's shares in the total number of final contracts in Q1 2023 [units]

– Łódź, Zenit I – Kraków, Osiedle Krk II – Łódź, Fuzja II – Poznań, Osiedle Enter III – Other

Hand overs of 129 housing and retail units of Archicom Group to clients.

Archicom Group residential project's shares in the total number of final contracts in Q1 2023 [units]

– Wrocław, Browary Wrocławskie BP3, BP4 – Wrocław, Olimpia Port M36, M38

• Wrocław, Planty Racławickie R5, R6, R7
• Wrocław, Awipolis L3, L4
• Other

Profit/loss on investment property by assets contracts in Q1 2023 [PLN mln]

17 Significant factors influencing the development of Company and the Group in the perspective of at least the following quarter

Significant factors influencing the development of the Group in coming quarters

Factors of a macroeconomic nature

Positive

• − Sustained high inflation supporting increase of demand for apartments from investors (i.e. 16.6 percent, 18.4 percent and 16.1 percent in January, February and March 2023, compared to the corresponding months of the previous year) (GUS),
• − an increase of average monthly salaries in the business sector excluding profit-sharing payments in March 2023 by 12.6 percent compared to March2022 (GUS),
• − a low level of the registered unemployment rate (5.5 percent in January 2023 and 5.4 percent in March 2023, according to the Main Statistic Office) (GUS),
• − a structural deficit of apartments and growing value of apartments,
• − increase in the role of the premium housing segment,
• − huge potential of the PRS market,
• − announcements of easing lending policy by banks. Adoption of the act introducing the First Apartment program, including Safe Loan 2 percent. and the Housing Account (the program will come into force on 1 July 2023).

Negative

• − High inflation as a cause of deterioration of financial standing of households that limits purchasing power and lowers consumer sentiment,
• − decrease GDP by 0.2 percent in Q1 y / y adjusted by seasonality, increase by 3.6 percent compared to Q4 2022 (NBP estimates),
• − emergence of investment alternatives bringing higher income with a lower level of risk than apartments (treasury bonds). High interest rates on deposits,
• − a low consumer confidence index: (BWUK): -38,1 p. p. in January 2023 and -32.1 p.p. in April 2023,
• − uncertainty about the prices of construction materials, raw materials and energy,
• − uncertainty about the development of war in Ukraine and its influence on European economy,
• − uncertainty as to the key assumptions of fiscal and monetary policy in Poland. Possibility of further increases in interest rates.

Factors arising directly from the activities of the Company and the Group

Handover of Echo Group's apartments, mainly in the projects:

• − Zenit I in Łódź,
• − Osiedle KRK I in Kraków,
• − Fuzja II in Łódź,
• − Osiedle Enter III in Poznań.

Valuation of interests entities accounted for using the equity method:

• − Galeria Młociny in Warsaw,
• − Towarowa 22 in Warsaw,
• − Resi4Rent.

Sale and administrative costs.

loans, at amortized cost.

Handover of Archicom Group's apartments in Wrocław projects:

• − Browary Wrocławskie,
• − Olimpia Port
• − Planty Racławickie,
• − Awipolis.

Sale of completed properties:

− Moje Miejsce II in Warsaw.

Revaluation of the fair value of the properties owned by the Group, which are in the course of leasing and construction:

− Brain Park II in Kraków.

Revaluation of the fair value of the ready properties owned by the Group:

• − Libero in Katowice,
• − Brain Park I in Kraków,
• − React I in Łódź.

Valuation and implementation of hedging financial instruments for foreign currencies.

Valuation of loans and cash on account of changes

Valuation of liabilities on account of bonds and

Interest on deposits and loans granted.

in exchange rates of foreign currencies.

Discounts and interest on credits, bonds and loans.

18 Information on dividend policy and dividend

On 26 April 2017 the Management Board of Echo Investment adopted a resolution on the Company's dividend policy. The adopted dividend policy states that the Management Board will be recommending the payment of the dividend up to amount of 70 percent of the consolidated net profit of the Capital Group attributable to shareholders of the parent company. When recommending the dividend payment the Management Board will take into consideration the current and expected condition of the

Company and the Capital Group as well as their development strategy, in particular:

• − safe and the most effective management of debt and liquidity in the Group,
• − investment plans resulting from the development strategy, purchase of land in particular.

Assumptions of the dividend policy were based on predictions concerning future profits from the Group's property development operations.

Dividend from 2022 profit

On 23 December, 2022 the Management Board of Echo Investment S.A. adopted a resolution to pay to shareholders an advance on future dividend for the financial year 2022. The total amount allocated to the advance amounts was PLN 90.8 million, i.e. PLN 0.22 per share. The dividend advance was paid on 2 February 2023 after obtaining the consent of the Supervisory Board. The shareholders holding the Company's shares on 26 January, 2023, i.e. 7 days before the payment date, were entitled to the dividend advance.

Echo Investment's Management Board are recommendation to allocate an amount equal to the advance dividend paid, i.e. PLN 90.8 million, or PLN 0.22 per share, to dividends from 2022 profit. The final decision will be taken by shareholders at the Ordinary General Meeting of Shareholders to be held on 29 June 2023.

The dividend policy states that the Management Board recommends the payment of the dividend up to the amount of 70 percent of the consolidated net profit annually.

PLN 0.22

amount of dividend from 2022 profit per share

19 Financial liabilities of the Company and its Group

Bonds

Company's liabilities due to bonds issued as at 31 March 2023

Series	ISIN code	Bank / brokerage house	Nominal value	Maturity	Interest rate
Bonds issued by Echo Investment S.A. for institutional investors [PLN '000]
1/2019	PLECHPS00308	mBank S.A.	96 510	11.04.2023	WIBOR 6M + margin 4,25%
1/2020	PLO017000012	mBank S.A.	70 000	31.05.2024	WIBOR 6M + margin 4,50%
1/2021	PLO017000046	mBank S.A.	195 000	17.03.2025	WIBOR 6M + margin 4,45%
2/2021	PLO017000061	mBank S.A.	172 000	10.11.2025	WIBOR 6M + margin 4,4%
1I/2022	PLO017000079	Ipopema Securities S.A.	180 000	8.12.2027	WIBOR 6M + margin 4,5%
		Total	713 510
		Bonds issued by Archicom S.A. for institutional investors [PLN '000]
M4/2019	PLARHCM00073	mBank S.A.	60 000	14.06.2023	WIBOR 3M + margin 3,3%
M6/2022	PLO221800090	mBank S.A.	110 000	15.03.2024	WIBOR 3M + margin 3,2%
M7/2023	PLO221800108	mBank S.A.	62 000	17.03.2025	WIBOR 3M + margin 3,5%
		Total	232 000
		Bonds issued by Echo Investment S.A. for individual investors [PLN '000]
I-series	PLECHPS00274	Consortium: DM PKO Banku Polskiego S.A., Noble Securities S.A. and Centralny Dom Maklerski Pekao S.A.	50 000	8.11.2023	WIBOR 6M + margin 3,4%
J and J2 -series	PLECHPS00290	J-series: consortium Noble Securities S.A., Michael / Ström DM S.A., DM Banku Ochrony Środowiska S.A	33 832	21.09.2023	WIBOR 6M + margin 3,4%
		J2-series: DM PKO Banku Polskiego S.A.
K-series	PLECHPS00324	DM PKO BP	50 000	10.01.2025	WIBOR 6M + margin 4,0%
L-series	PLECHPS00332	DM PKO BP	50 000	22.02.2026	WIBOR 6M + margin 4,0%
M-series	PLECHPS00340	DM PKO BP	40 000	27.04.2026	WIBOR 6M + margin 4,0%
N-series	PLECHPS00357	DM PKO BP	40 000	27.06.2026	WIBOR 6M + margin 4,0%
O-series	PLECHPS00365	DM PKO BP	25 000	6.09.2026	WIBOR 6M + margin 4,0%
		Total	288 832
Bonds issued by Echo Investment S.A. for seller of shares in Archicom S.A. [PLN '000]
1P/2021	PLO017000053	Michael/Ström DM (agent)	188 000	22.10.2024	fixed interest rate 5%
		Total	188 000
		Total bonds issued in PLN	1 422 342

Bonds issued by Echo Investment S.A. for institutional investors in eur [EUR '000]

Series	ISIN code	Bank / brokerage house	Nominal value	Maturity	Interest rate
1E/2020	PLECHPS00316	Bank Pekao S.A.	40 000	23.10.2024	fixed interest rate 4.5%
		Total bonds issued in EUR	40 000

The value of bonds corresponds to undiscounted cash flows, not including the value of interest. The change in business and economic conditions did not have a significant impact on the fair value of the financial liabilities.

All are quoted on the Catalyst market of debt instruments operated by the Warsaw Stock Exchange, on trading platforms operated by the Warsaw Stock Exchange (in the regulated market and ASO formula) and by Bondspot (analogous two markets).

Change of company's bond liabilities in Q1 2023

Bonds issued by Archicom S.A. [PLN '000]

Series	ISIN code	Date	Nominal value
M7/2023	PLO221800108	17.03.2023	62 000
Total			62 000

Investment loans of Echo Group as at 31 March 2023 ['000]

				Contractual amount of loan		Outstanding loan amount
Investment project	Borrower	Bank	PLN	EUR	PLN	EUR	Interest rate	Repay mentde adline
Libero, Katowice	Galeria Libero - Pro jekt Echo 120 Sp. z. o.o. Sp.k.	Santander Bank Polska S.A. BNP Paribas Bank Polska S.A.		67 566		62 836	EURIBOR 3M + margin	22.11.2024
Galeria Młociny, Warszawa*	Berea Sp. z o.o.	Santander Bank Polska S.A. PKO BP S.A. Bank Gospodar stwa Krajowego		56 100		51 202	EURIBOR 3M + margin	30.04.2025
Brain Park I i II, Kraków	Echo Arena Sp. z o.o.	PKO BP S.A. Bank Pekao SA		65 560		28 262	EURIBOR 3M + margin	30.06.2026
			9 000				WIBOR 1M + margin	30.06.2024
Projekt Echo 129	Projekt Echo 129 Sp. z o.o.	Bank Pekao S.A.		60 000		32 057	EURIBOR 3M + margin	30.09.2023
Resi4Rent* – 1st tranche	R4R Łódź Wodna Sp. z o.o. R4R Wrocław Rychtalska Sp. z o.o. R4R Warszawa Browary Sp. z o.o. R4R Wrocław Kępa Sp. z o.o.	ING Bank Śląski S.A.	106 560		103 363		WIBOR 3M + margin	10.12.2026
Resi4Rent* – 2nd tranche	R4R Poznań Szczepanowskiego Sp. z o.o. R4R Warszawa Taśmo wa Sp. z o.o. R4R Warszawa Woroni cza Sp. z o.o. R4R Gdańsk Kołobrzeska Sp. z o.o.	Santander S.A. Helaba AG	69 000		67 249		WIBOR 3M + margin	27.06.2027
Resi4Rent* – 3rd tranche	R4R Warszawa Wilanowska Sp. z o.o. Pimech Invest Sp. z o.o. M2 Hotel Sp. z o.o. R4R Kraków 3 Maja Sp. z o.o. R4R RE Wave 3 Sp. z o.o.	Bank Pekao S.A. Bank Go spodarstwa Krajowego BNP Paribas Polska	74 402		48 217		WIBOR 1M + margin	21.12.2028
Resi4Rent* – 4th tranche	M2 Biuro sp. z o.o. R4R Wrocław Park Zachodni Sp. z o.o. R4R RE Wave 4 Sp. z o.o./R4R Gdańsk Stocznia Sp. z o.o. R4R Kraków JPII Sp. z o.o. R4R Łódź Kilińskiego Sp. z o.o.	Santander S.A. Helaba AG	95 456		22 640		WIBOR 1M + margin	15.12.2029
Resi4Rent* - Corpo rate Credit Facility	R4R Poland sp. z o.o.	European Bank for Reconstruc tion and Development		15 000		9 188	EURIBOR 3M + margin	1.12.2027
Total			354 418	264 226	241 469	183 545

* Echo Investment owns 30 percent of shares in SPV - borrowers. and presents 30 percent of credit value.

Investment loans of Archicom S.A. as at 31 March 2023 ['000 EUR]

Investment project	Borrower	Bank	Contractual amount of loan	Outstanding loan amount	Interest rate	Repay ment deadline
City Forum - City 2	Archicom Nieruchomości 14 Sp. z o.o.	Bank Pekao S.A.	17 600	4 413	EURIBOR 1M + margin	22.12.2031
Total			17 600	4 413

Investment loans are secured by standard securities such as mortgages, registered and financial pledge agreements, powers of powers of attorney to bank accounts, subordination agreements, statements on submission to enforcement proceedings, agreements to secure the transfer of claims and rights and claims of a borrower under selected agreements, guarantees on overrun of cost / own contribution, interest coverage.

Credit facilities

Credit facilities of Echo Investment Group as at 31 March 2023 ['000 PLN]

Bank	Contractual amount of loan	Outstanding loan amount	Repayment deadline	Interest rate
PKO BP S.A. *	75 000	62 745	31.10.2023	WIBOR 1M + margin
Alior Bank S.A.	25 000	25 000	10.07.2023	WIBOR 3M + margin
Santander Bank Polska S.A.* *	100 000	51 640	29.02.2024	WIBOR 1M + margin
Total	200 000	139 385

* The available loan amount as at 31 March 2023 is reduced by the issued guarantees and amounts to PLN 10.3 mln.

**The available loan amount as at 31 March 2023 is reduced by the issued guarantees and amounts to PLN 11.1 million.

Credit facilities of Archicom Group as at 31 March 2023 ['000 PLN]

Bank	Borrower	Contractual amount of loan	Outstanding loan amount	Repayment deadline	Interest rate
mBank S.A. *	Archicom Sp. z o.o. – Realizacja Inwestycji Sp.k.*	15 000	0	23.09.2024	WIBOR 1M + margin
PKO BP S.A	Archicom S.A.	80 000	0	9.03.2024	WIBOR 3M + margin
Total		95 000	0

* Revolving loan for financing construction contracts. The loan is secured with a real estate mortgage, an assignment under construction contracts and a declaration of submission to enforcement

Credit facilities are secured with standard instruments such as authorisation to the bank account or statement on submission to enforcement proceedings. The loan value corresponds to undiscounted cash flows.

20 Sureties and guarantees

Surety agreements

Financial surety agreements issued by Echo Investment Group as at 31 March 2023 [PLN '000]

Issuer	Entity receiving surety	Beneficiary	Value	Validity	Description
Echo Investment S.A.	Pimech Invest Sp. z o.o.	Miasto Stołeczne Warszawa	1 230	30.03.2023	Surety for proper performance of the liabilities oarising from the road construction agreement.
Total			1 230

Guarantees

Financial guarantees issued by Echo Investment Group as at 31 March 2023 [PLN '000]

Guarantor	Entity receiving the guarantee	Beneficiary	Value	Validity	Description
Archicom S.A.	Javin Investments Sp. z o.o. Sp.k. w likwidacji; Space Investment Strzegomska 3 Sp. z o.o.	GNT Ventures Wro cław Sp. z o.o.	12 206	25.02.2024	Security for the proper performance of obligations under the contract for the sale of the West Forum IB office building.
Total			12 206

Performance and other guarantees issued by Echo Investment Group as at 31 March 2023 [PLN '000]

Guarantor	Entity receiving the guarantee	Beneficiary	Value	Validity	Description
Echo Investment S.A.	Echo Investment S.A.	Nobilis - Projekt Echo 117 Sp. z o.o. Sp.k.	40 000	31.10.2026	Quality guarantee for construction work related to the Nobilis office building in Wrocław.
Echo - SPV7 Sp. z o.o.	R4R Warszawa Wila nowska Sp. z o.o.	Bank PKO S.A.	18 465	31.12.2027	Security of the borrowers liabilities arising from the cost overrun not included in the budget specified in credit agreement and payment of interests under loan facility in construction tranche.
Total			58 465
Total financial, performance and other guarantees		70 671

21 Other disclosures required by law

Seasonal or cyclical nature of activities

The Group's activities cover several segments of the real estate market. Accounting for sales of apartments depends on delivery dates of residential buildings, and revenue from this activity occurs basically in every quarter, but with varying intensity. Historically, the Group handed over the greatest number of apartments in the second half of the year, and particularly in the fourth quarter. Revenues and results from services of general execution of projects, sales of finished commercial projects and real estate trading may occur on an irregular basis. The Management Board cannot exclude other one-time events that may affect the results achieved in a given period.

Material court, arbitration or administrative proceedings

From 1 January to 31 March 2023, no proceedings were pending before any court, arbitration authority or public administration authority which involved liabilities or receivables of Echo Investment S.A. or its subsidiary which represent at least 10 percent of the Company's equity.

Agreements concluded between shareholders

The Company has no information on agreements concluded in Q1 2023 between shareholders that would be important for its business.

Material transactions concluded by the Company or its subsidiaries with affiliated entities on terms other than market conditions

In Q1 2023, there were no material transactions between Echo Investment S.A. and its subsidiaries with affiliated entities on terms other than market conditions.

Impact of Q1 2023 results on financial forecasts

Echo Investment S.A. did not publish any forecasts of financial results.

Changes of main management rules

In Q1 2023, there are no material changes to the main management rules of the Company and the Group.

Agreements which may result in changes in the ownership structure of shares or bonds

The Company is not aware of any agreements potentially resulting in changes in the proportions of shares held by existing shareholders.

22 The impact of the war in Ukraine on the operations and results of the Company and its Group in the future

Echo Investment Group has not yet identified any circumstances that could constitute specific risk factors resulted directly from the invasion of Ukraine by the Russian Federation or the economic sanctions imposed on Russia and Belarus. Echo Investment S.A. and its group of companies do not conduct any activities in the territory of Ukraine, Russia or Belarus.

In the Group management's opinion, these events have an impact on the Group's activity as well as the financial and operating condition, however, this impact is indirect and combined with a number of other macroeconomic and geopolitical factors. The war and its immediate aftermath - sanctions in particular - contributed to instability in the global markets of energy resources and building materials, but the degree of this impact cannot be determined.

The Group monitors the potential impact of the war on operating activities, financial results and development

prospects. In particular, this includes monitoring the availability of workforce, prices and availability of major building materials and fuels. Currently, the risk of labor shortage is assessed as low. After a short period of turmoil, the situation on the building materials and fuels market stabilizes. At present, the Group has not identified specific risks that directly result from the war and significantly affect its operating activities, financial results and development prospects.

Due to the dynamics of the situation in Ukraine, the Group is not able to exclude new risk factors in the future that may affect the business, financial and operating situation. If such risks are revealed, Echo Investment S.A. provides information on new conditions that have a significant impact on the business, financial results or prospects, in a manner prescribed by law and to the extent required.

CHAPTER 2 Condensed interim consolidated financial statements of Echo Investment Group as of and for the period ended 31 March 2023

66 Financial report of Echo Investment S.A. and its Group for Q1 2023

Condensed interim consolidated statement of financial position [PLN '000]

	As at 31.03.2023	As at
	(unaudited)	31.12.2022
Assets
Non-current assets
Intangible assets	71 615	71 752
Property, plant and equipment	62 080	60 409
Investment property	1 118 428	1 094 638
Investment property under construction	514 451	486 625
Investment in associates and joint ventures	507 217	478 180
Long-term financial assets	320 413	326 675
Derivative financial instruments	22 489	26 251
Other assets	1 231	1 549
Deferred tax asset	98 046	94 494
Lands for development	21 061	21 359
	2 737 031	2 661 932
Current assets
Inventory	1 659 092	1 592 885
Current tax assets	15 899	14 925
Other taxes receivable	47 816	81 762
Trade and other receivables	333 155	333 577
Short-term financial assets	24 921	15 327
Derivative financial instruments	609	366
Other financial assets	90 313	88 914
Cash and cash equivalents	778 458	941 997
	2 950 263	3 069 753
Fixed assets (disposal group) held for sale	187 350	355 327
	3 137 613	3 425 080
Total assets	5 874 644	6 087 012

Condensed interim consolidated statement of financial position [PLN '000]

	As at 31.03.2023 (unaudited)	As at 31.12.2022
Equity and liabilities
Equity
Share capital	20 635	20 635
Supplementary capital	1 044 798	1 044 798
Retained earnings	588 870	577 337
Foreign currency translation reserve	996	1 008
Equity attributable to shareholders of the parent company	1 655 299	1 643 778
Non-controlling interest	165 611	162 534
	1 820 910	1 806 312
Long-term liabilities
Credits, loans, bonds	1 583 033	1 609 032
Long-term provisions	4 987	5 356
Deferred tax liabilities	118 479	140 651
Leasing	136 521	138 837
Other liabilities	74 419	68 200
	1 917 439	1 962 076
Short-term liabilities
Credits, loans, bonds	779 725	667 980
Credits, loans, bonds - non-current assets classified as held for sale	20 722	142 494
Acquisition of shares	52 269	51 478
Income tax payable	16 010	31 174
Other taxes liabilities	58 878	147 176
Trade payable	67 331	142 867
Dividend payable	-	90 792
Leasing	96 477	96 389
Short-term provisions	52 392	51 238
Other liabilities	309 488	293 775
Liabilities due to customers	608 206	558 252
	2 061 498	2 273 615
Liabilities directly associated with non-current assets classified as held for sale	74 797	45 009
	2 136 295	2 318 624
Total equity and liabilities	5 874 644	6 087 012
Equity attributable to equity holders of the parent entity [PLN '000]	1 655 299	1 643 778
Number of shares (thousands)	412 691	412 691
Book value per share (PLN)	4,01	3,98

Condensed interim consolidated profit and loss account [PLN '000]

	1.01.2023 - 31.03.2023 (unaudited)	1.01.2022 - 31.03.2022 (unaudited)
Revenues	210 093	283 636
Cost of sales	(138 816)	(186 501)
Gross profit	71 277	97 135
Profit on investment property	843	61 171
Administrative costs associated with project implementation	(12 908)	(15 023)
Selling expenses	(10 977)	(11 027)
General and administrative expenses	(24 610)	(25 591)
Other operating income, including:	7 713	6 132
Other operating expenses	(6 038)	(4 330)
Operating profit	25 300	108 467
Financial income	8 326	12 586
Financial cost	(46 418)	(39 980)
Profit (loss) on FX derivatives	124	(329)
Foreign exchange gains (losses)	2 994	(12 697)
Share of profit (loss) of associates and joint ventures	30 517	4 882
Profit before tax	20 843	72 929
Income tax	(6 233)	(11 622)
- current tax	(31 956)	(13 904)
- deferred tax	25 723	2 282
Net profit (loss), including:	14 610	61 307
Equity holders of the parent	11 533	51 442
Non-controlling interest	3 077	9 865
Equity holders of the parent	11 533	51 442
Weighted average number of ordinary shares (thousands) without shares held	412 691	412 691
Profit (loss) per one ordinary share (PLN)	0,03	0,12
Diluted profit (loss) per one ordinary share (PLN)	0,03	0,12

Condensed interim consolidated statement of comprehensive income [PLN '000]

	1.01.2023 - 31.03.2023 (unaudited)	1.01.2022 - 31.03.2022 (unaudited)
Profit for the year	14 610	61 307
Components of other comprehensive income that may be reclassified to profit or loss in later periods
- exchange differences on translation of foreign operations	(12)	46
Other comprehensive income for the year, net of tax	(12)	46
Total comprehensive income for the year, including:	14 598	61 353
Comprehensive income attributable to shareholders of the parent company	11 521	51 488
Comprehensive income attributable to non-controlling interest	3 077	9 865

Condensed interim statement of changes in consolidated equity [PLN '000]

			Accumula	Exchangedif	Equity attributable to equity
	Sharecapital	Supplemen tary capital	ted retaine dearnings	ferences from conversion	holdersof the parent	Non-con trollng share	Total equity
For the period 1.01.2022 - 31.12.2022
Opening balance	20 635	1 044 798	577 337	1 008	1 643 778	162 534	1 806 312
Net profit (loss) for the period	-	-	11 533	-	11 533	3 077	14 610
Other comprehensive income	-	-	-	(12)	(12)	-	(12)
Total net income for the period	-	-	11 533	(12)	11 521	3 077	14 598
Closing balance	20 635	1 044 798	588 870	996	1 655 299	165 611	1 820 910
For the period 1.01.2021 - 31.12.2021
Opening balance	20 635	1 158 524	499 517	934	1 679 610	183 927	1 863 537
Net profit (loss) for the period	-	-	51 442	-	51 442	9 865	61 307
Other comprehensive income	-	-	-	46	46	-	46
Total net income for the period	-	-	51 442	46	51 488	9 865	61 353
Closing balance	20 635	1 158 524	550 959	980	1 731 098	193 792	1 924 890

Condensed interim standalone cash flows statement [PLN '000]

	1.01.2023 - 31.03.2023 (unaudited)	1.01.2022 - 31.03.2022 (unaudited)
A. Operating cash flow – indirect method
I. Profit before tax	20 843	72 929
II. Total adjustments
Share in (profit) net losses of entities accounted for using the equity method	(30 517)	(4 882)
Depreciation of fixed assets and intangible assets	3 556	4 096
Profit (loss) on currency exchange rate	(3 639)	8 764
Interest and profit sharing (dividends)	37 703	26 654
Profit / (loss) on revaluation of investment properties	3 694	(67 341)
Profit / (loss) from the investment activity	(14)	(1 914)
Change in provision	(68 714)	1 359
(Profit) loss on realization of financial instruments	1 417	775
	(56 514)	(32 489)
III. Changes in working capital
Change in inventories	(65 746)	23 527
Change in receivables	39 696	(11 979)
Change in short-term liabilities, except for loans and borrowings	(43 403)	75 601
Change in cash on escrow account	(1 400)	(10 303)
	(70 853)	76 846
IV. Net cash generated from operating activities (I+/-II+/-III)	(106 524)	117 286
Income tax paid	(48 117)	(23 238)
V. Cash flow from operating activities	(154 641)	94 048
B. Cash flows from investing activities
I. Inflows
Disposal of intangible assets and tangible fixed assets	88	-
Disposal of investments in property	108 675	104 902
From borrowings	-	29 120
	108 763	134 022
II. Outflow
Purchase of intangible assets and tangible fixed assets	(1 454)	(2 575)
Investment in property	(49 481)	(118 691)
For borrowings	(3 293)
Increasing capital in joint ventures	-	(108 653)
	(54 228)	(229 919)
III. Net cash flow from investing activities (I+II)	54 535	(95 897)

Condensed interim standalone cash flows statement [PLN '000]

	1.01.2023 - 31.03.2023 (unaudited)	1.01.2022 - 31.03.2022 (unaudited)
C. Cash flow from financing activities
I. Inflows
Loans and borrowings	14 758	44 024
Issue of debt securities	61 402	210 000
	76 160	254 024
II. Outflows
Dividends and other payments to owners	(90 792)	-
Repayment of loans and borrowings	(17 758)	(11 271)
Redemption of debt securities	-	(78 500)
Due to currency derivatives	-	(260)
Payments of leasing liabilities	(8 519)	(6 929)
Interest paid	(22 524)	(14 047)
	(139 593)	(111 007)
III. Net cash flow from financing activities (I+III)	(63 433)	143 017
D. Total net cash flows (A.V +/- B.III +/- C.III)	(163 539)	141 168
E. Change in cash in the consolidated statement of financial position, including:	(163 539)	141 168
- change in cash due to exchange rate differences	-	-
F. Cash and cash equivalents at the beginning of the period	941 997	588 680
G. Cash and cash equivalents at the end of the period (D+F)	778 458	729 848

Information on financial statement of the Group

75 Financial report of Echo Investment S.A. and its Group for Q1 2023

01 Accounting principles adopted in drawing up the financial report

The condensed consolidated financial statements of the Echo Investment Capital Group present consolidated financial data for the 3-month period ended 31 March 2023 and for the 3-month period ended 31 March 2022.

All financial data in the Group's consolidated financial statements are presented in thousands of zlotys (PLN), unless otherwise stated. The financial statements have been prepared according to the historical cost principle, except for investment properties and financial instruments measured at fair value.

As at 31 March 2023 the Capital Group included 160 subsidiaries consolidated according to the full method and 36 jointly controlled companies consolidated according to the equity method.

Declaration of conformity and the basis of preparation

These interim condensed consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) which are applicabe the preparation of interim financial statements (IAS 34) and in accordance with all applicable IFRS as adopted by the European Union.

The interim condensed consolidated financial statements do not include all the information and disclosures required in the annual consolidated financial statements, so they

should be read in combination with the Group's consolidated financial statements for the year ended on December 31, 2022.

The accounting policies used in the preparation of these condensed interim financial statements are consistent with those used in the most recent annual financial statements and have been applied consistently for all periods presented in the consolidated financial statements, except for the application of new and revised standards and interpretations, the impact of which is described in Section "New standards and interpretations that are effective as of 1 January 2023".

Assumption of continuity in operations

The consolidated financial statements of the Echo Investment Capital Group for Q1 2023 have been drawn up according to the going concern principle as there are no circumstances indicating a threat to continued Group activity.

Approval of financial statements

These consolidated financial statements were approved for publication by the Management Board on 24 May 2023.

02 Echo Investment Group

Composition of the Group

As at 31 March 2023 the Capital Group included 160 subsidiaries consolidated according to the full method and 36 jointly controlled companies consolidated according to the equity method.

The most important role in the Group's structure belongs to Echo Investment S.A., which supervises, co-delivers and provides funds for carrying out ongoing developer projects. Most of the Group's companies have been established or acquired for the purpose of carrying out specific project-based tasks, including those arising from the process of execution of specific projects.

Echo Investment S.A. indirectly - through DKR Echo Investment Sp. z o.o. and DKR Echo Invest S.A. - is a major shareholder of Archicom S.A., in which it held 71.48 percent of shares entitling it to 70.41 percent of votes at the General Meeting of Shareholders as at 31 March 2023. Echo Investment S.A. consolidates all companies of the Archicom S.A. group according to the full method.

The Echo Investment Group also includes Echo Investment ACC - Grupa Echo Sp. z o.o. Sp. k., which acts as an accounting and clearing centre for most of the Group's companies.

The Group also holds minority interests in a number of joint ventures - mostly in companies owning finished, under construction or planned projects with apartments for rent Resi4Rent, the shopping centre Galeria Młociny in Warsaw or the planned multifunctional project Towarowa 22 in Warsaw.

Changes in the structure of the Group in Q1 2023

Increase of the Group

Enity	Action	Data	Share capital [PLN]
Mioga Investment Sp. z o.o.	Purchase of shares in the company by Archicom S.A.	14.03.2023	5 000
Archicom Warszawa Sp. z o.o.	Registration in the Register of Entrepreneurs	24.03.2023	10 000

03 New standards and interpretations that are effective as of 1 January 2023

The following standards and amendments to standards became effective on 1 January 2023:

Amendments to IFRS 4 "Insurance contracts" titled "Extension of the temporary exemption from the application of IFRS 9"

approved in the EU on 16 December 2020)

The expiry date of the temporary exemption from IFRS 9 has been extended from 1 January 2021 to annual periods beginning on or after 1 January 2023.

Amendments to IAS 1 "Presentation of financial statements" - Disclosures about accounting policies applied

Effective for annual periods beginning on or after 1 January 2023.

Amendments to IAS 8 "Accounting policies, changes in accounting estimates and errors" - Disclosures on accounting policies applied

Effective for annual periods beginning on or after 1 January 2023.

IFRS 17 "Insurance contracts", as amended by IFRS 17

Effective for annual periods beginning on or after 1 January 2023.

Amendments to IAS 12 Income taxes

(issued on 7 May 2021)

Not adopted by the EU up to the date of approval of these financial statements - applicable for annual periods beginning on 1 January 2023.

The impact of the above amendments to standards and interpretations had no significant impact on the report financial,. The above amendments do not affect the consolidated financial statements.

04 Published standards and interpretations which are not effective yet and have not been adopted

In approving these financial statements, the following amendments to existing standards have been issued by the IASB and endorsed for use in the EU, which are effective at a later date:

Amendments to IAS 1 "Presentation of financial statements" – Classification of liabilities as shortterm or long-term

It is effective for annual periods beginning on or after 1 January 2024.

Amendments to IFRS 16 "Leasing" – lease liabilities in sale and leaseback transactions

It is effective for annual periods beginning on or after 1 January 2024.

New standards and amendments to existing standards issued by the IASB but not yet endorsed for use in the EU

The IFRS as approved by the EU do not currently differ significantly from the regulations issued by the International Accounting Standards Board (IASB), except for the following new standards and amendments to standards, which as at 31 December 2022 have not yet been approved for use in the EU (the following effective dates refer to the full version of the standards):

IFRS 14 "Deferred balances from regulated activities"

Effective for annual periods beginning on or after 1 January 2016. The European Commission has decided not to initiate the approval process of this interim standard for use in the EU until the final version of IFRS 14 is issued.

Amendments to IFRS 10 "Consolidated Financial Statements" and IAS 28 "Investments in Associates and Joint Ventures" - Sale or Contribution of Assets between an Investor and its Associate or Joint Undertaking undertaking and subsequent changes

The effective date of the amendments has been postponed until the completion of research work on the equity method.

According to the Group's estimates, the above-mentioned new standards and changes to the existing standards would not have a significant impact on the financial statements, if they had been applied by the Group as at the balance sheet date.

Hedge accounting of the portfolio of financial assets and liabilities, the principles of which have not been approved for use in the EU, still remain outside the regulations approved by the EU.

According to the Group's estimates, the application of hedge accounting for the portfolio of financial assets or liabilities in accordance with IAS 39 "Financial Instruments: Recognition and Measurement" would not have a significant impact on the financial statements, if applied as at the balance sheet date.

The Group is currently analyzing how the implementation of the above standards and interpretations will affect the consolidated financial statements and the accounting policies applied by the Group.

CHAPTER 3 Condensed interim standalone financial statements of Echo Investment S.A. as of and for the period ended 31 March 2023

81 Financial report of Echo Investment S.A. and its Group for Q1 2023

Condensed interim standalone statement of financial position [PLN '000]

	As at 31.03.2023	As at 31.12.2022
Assets
Non-current assets
Intangible assets	5 436	4 807
Property, plant and equipment	43 170	41 952
Investment property	445	445
Investment in subsidiaries, associates and joint ventures	1 656 525	1 551 065
Long-term financial assets	165 149	12 409
Loans granted	574 915	502 672
Derivative financial instruments	22 489	26 251
Lease receivables	39 689	38 546
	2 507 817	2 178 147
Current assets
Inventory	116 235	119 441
Current tax assets	2 331	2 154
Other taxes receivable	-	1 183
Trade and other receivables	69 403	69 182
Short-term financial assets	64 340	64 157
Loans granted	147 910	567 908
Cash and cash equivalents	141 334	116 073
	541 553	940 098
Total assets	3 049 371	3 118 245

Condensed interim standalone statement of financial position [PLN '000]

	As at 31.03.2023	As at 31.12.2022
Equity and liabilities
Equity
Share capital	20 635	20 635
Supplementary capital	704 295	704 295
Dividend fund	296 169	296 169
Accumulated profit	105 413	50 212
	1 126 512	1 071 311
Long-term liabilities
Credits, loans, bonds	1 171 044	1 161 537
- including subsidiaries	56 174	57 576
Deferred tax liabilities	4 484	12 396
Deposits and advances received	2 737	2 737
Lease liabilities	67 233	65 353
Other liabilities	4 987	4 558
	1 250 486	1 246 581
Short-term liabilities
Loans, borrowings and bonds	590 684	606 851
- including from subsidiaries	150 451	150 913
Income tax payable	-	5
Other taxes liabilities	2 762	1 831
Trade payable	1 690	20 137
Deposits and advances received	9 603	9 788
Lease liabilities	27 019	30 793
Short-term provision	12 166	11 928
Other liabilities	28 449	119 020
	672 373	800 353
Total equity and liabilities	3 049 371	3 118 245
Book value	1 126 512	1 071 311
Number of shares	412 690 582	412 690 582
Book value per share (in PLN)	2,73	2,60

Off-balance sheet items [PLN '000]

	As at 31.03.2023	As at 31.12.2022
Off-balance sheet receivables	-	-
Liabilities	2 888 614	2 763 125
Total off-balance sheet items	2 888 614	2 763 125

Condensed interim standalone profit and loss account [PLN '000]

	1.01.2023 - 31.03.2023	1.01.2022 - 31.03.2022
Revenue	33 287	52 176
Cost of sales	(12 268)	(30 012)
Gross profit	21 019	22 164
Administrative costs associated with project implementation	(3 341)	(3 916)
Selling expenses	(4 537)	(3 650)
General and administrative expenses	(20 047)	(20 089)
Other operating income	95 981	116 989
- including interests and amortised costs (SCN) from borrowings and bond	13 191	17
Other operating expenses	(804)	(2 182)
Operating profit	88 271	109 316
Financial income	5 243	-
Financial cost	(44 549)	(34 543)
Profit before tax	48 965	74 773
Income tax	6 236	4 226
Net profit (loss)	55 201	78 999
Net profit (loss)	76 414	74 245
Weighted average number of ordinary shares	412 690 582	412 690 582
Profit (loss) per one ordinary share (PLN)	0,19	0,18
Diluted weighted average number of ordinary shares	412 690 582	412 690 582
Diluted profit per one ordinary share (PLN)	0,19	0,18

Condensed interim standalone statement of changes in equity [PLN '000]

	Supplementa		Accumulated	Total
	Share capital	ry capital	Dividend fund	profit (loss)	equity
For the period of 1.01.2023 – 31.03.2023
Opening balance	20 635	704 295	296 169	50 212	1 071 311
Changes during the period:
Net profit / (loss) for the period	-	-	-	55 201	55 201
Total changes	-	-	-	55 201	55 201
Closing balance	20 635	704 295	296 169	105 413	1 126 512
For the period of 1.01.2022 – 31.03.2022
Opening balance	20 635	704 295	413 912	13 842	1 152 684
Changes during the period:
Net profit /(loss) for the period	-	-	-	78 999	78 999
Total changes	-	-	-	78 999	78 999
Closing balance	20 635	704 295	413 912	92 841	1 231 683

Condensed interim standalone cash flow statement [PLN '000]

	1.01.2023 - 31.03.2023	1.01.2022 - 31.03.2022
A. Operating cash flow – indirect method
I. Profit before tax	48 965	74 773
II. Adjustments	(49 490)	(80 143)
Depreciation	2 308	2 360
Foreign exchange gains / (losses)	158	(344)
Interest and profit sharing (dividends)	(51 393)	(93 144)
Profit / (loss) on revaluation of assets and liabilities	(4 741)	10 985
Profit (loss) on sale of fixed assets and investment properties	(86)	-
Profit / (loss) on realization of financial instruments	4 264	-
III. Changes in working capital	5 998	(8 444)
Change in provisions	238	259
Change in inventory	7 608	11 448
Change in receivables	19 046	736
Change in short–term liabilities, except for loans and borrowings	(20 895)	(22 729)
Change in restricted cash	-	1 842
IV. Net cash generated from operating activities (I +/- II +/- III)	5 473	(13 814)
V. Income tax paid	(1 858)	(5 635)
VI. Net cash generated from operating activities (IV+/-V)	3 615	(19 449)
B. Cash flows from investing activities
I. Inflows
Disposal of intangible assets and tangible fixed assets	17	-
From financial assets	572 795	118 302
	572 812	118 302
II. Outflows
Purchase of intangible assets and tangible fixed assets	(1 210)	(2 561)
For financial assets	(147 699)	(2 185)
Other investment outflows	(268 500)	(108 653)
	(417 409)	(113 399)
III. Net cash flow from investment activities	155 403	4 903
C. Cash flow from financing activities (I-II)
I. Inflows
Loans and borrowings	585	1 338
Issue of debt securities	-	100 000
Other investment inflows	3 410	-
	3 995	101 338
II. Outflows
Dividends and other payments to equity holders	(90 792)	-
Repayment of loans and borrowings	(19 588)	(86 990)
Payments of liabilities under lease contracts	(3 786)	(3 363)
Interests	(23 033)	(10 833)
Other investment outflows	(553)	(444)
	(137 752)	(101 630)

Condensed interim standalone cash flow statement [PLN '000]

1.01.2023 - 31.03.2023	1.01.2022 - 31.03.2022
Net cash flow from financing activities (I - II) (133 757)	(292)
D. Total net cash flows (A.VI+/-B.III+/-C.III) 25 261	(14 838)
E. Balance sheet change in cash 25 261	(14 838)
F. Cash and cash equivalents at the beginning of the period 116 073	74 239
G. Cash and cash equivalents at the end of the period (F+/-D) 141 334	59 401

Nicklas Lindberg President of the Board, CEO

Maciej Drozd Vice-President of the Board, CFO

Artur Langner Vice-President of the Board

Rafał Mazurczak Member of the Board

Małgorzata Turek Member of the Board

Anna Gabryszewska-Wybraniec Chief Accountant

The document is signed with qualified electronic signature

Kielce, 24 May 2023

CHAPTER 4 Statement of the Management Board

The Management Board of Echo Investment S.A. declares that, to the best of its knowledge, the interim financial statements of Echo Investment S.A. and its Group for Q1 2023 and comparative data have been presented in compliance with the applicable accounting principles, and that they reflect in a true, reliable and transparent manner the economic and financial situation of Echo Investment Group and its financial result.

The management report on operations of the Echo Investment S.A. and its Group provides a true view of the development and achievements and standing, including the description of major threats and risks.

Nicklas Lindberg President of the Board, CEO

Maciej Drozd Vice-President of the Board, CFO

Artur Langner Vice-President of the Board

Rafał Mazurczak Member of the Board

Małgorzata Turek Member of the Board

The document is signed with qualified electronic signature

Kielce, 24 May 2023

Contact

Echo Investment Warsaw office, Villa Offices ul. Grzybowska 60, 00-844 Warsaw Layout and execution: Damian Chomątowski be.net/chomatowski