Echo Investment S.A.

Annual Report • Sep 28, 2022

2022 The 1st half-year of

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

Fot. Biurowiec Midpoint71 we Wrocławiu

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.	Echo Investment S.A. shareholding structure and shareholders' rights	16
06.	Volume of the Company's shares and bonds held by managing and supervising persons	17
07.	Major events in the 1st half-year 2022	18
08.	Significant events after the balance sheet day	26
09.	Residential segment – market outlook and the Group's business activities	28
10.	Commercial real estate – market outlook and Group business activities	33
11.	Portfolio of properties	38
12.	Main investments of the 1st half-year 2022 – acquisition of plots	51
13.	Factors and unusual events affecting the results in the 2nd quarter of 2022	52
14.	Significant factors influencing the development of Company and the Group in coming quarters	54
15.	Information on dividend policy and dividend	56
16.	Financial liabilities of the Company and its Group	58
17.	Off-balance sheet liabilities	62
18.	Remuneration of the Management Board and Supervisory Board	72
19.	Other disclosures required by law	75
20.	The impact of the war in Ukraine on the operations of the Group	76
21.	The impact of the macroeconomic situation on the operations of the Company and its Group - description of
	risks	77

79

	Condensed interim consolidated financial statement of Echo Investment Group	79
	Explanatory notes	87
	Information on financial statement of the Group	123
01.	Accounting principles adopted in drawing up the financial report	124
02.	Echo Investment Group	125
03.	Material estimates and judgments of the Management Board of the Company	127
04.	New standards and interpretations effective from 1 January 2022	135
05.	Published standards and interpretations which are not effective yet and have not been adopted	136
06.	Significant events after the balance sheet day	138
	Condensed interim standalone financial statements of Echo Investment S.A.	140
	Explanatory notes	148
	Information on financial statement of the Company	193
01.	Principles adopted in financial report	194
02.	Significant contracts concluded with related entities	195
03.	Methods of determining the financial result	197
04.	Estimates of the Company's management board	197
05.	New standards and interpretations that are effective as of 1 January 2022	198
06.	Published standards and interpretations which are not effective yet and have not been adopted	199
07.	Significant events after the balance sheet day	201
	Statement of the Management Board	202
	Contact	205

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 half of 2022. During this period, we generated a net profit attributable to the parent company in the amount of PLN 62 million. That was mainly the result of handing over to customers 755 apartments completed by Echo Investment and Archicom, sales of ready office buildings as well as an increase in the value of office projects under construction.

Residential sector

Since the beginning of 2022, our Group sold 1027 apartments. Echo Investment and Archicom jointly started construction of 981 units for sale and Resi4Rent platform – also 593 apartments for rent.

Recent months have brought significant changes on the residential market, but the diversification of our Group allows us to flexibly respond to the changing needs of our clients. It is important, that the market in the largest Polish cities has strong foundations and great potential. We prepare new, well-located projects to be launched, that will allow us to fight for customers even more effectively while keeping good margins.

Resi4Rent, the largest company with apartments for rent in Poland, currently has almost 2.5 thousand finished and fully rented premises, while over 2.2 thousand new ones are under construction. The demand for apartments for rent is very strong, which confirms our belief in this segment. At the end of this year, the platform will have 3 thousand ready apartments. The Resi4Rent goal by the end of 2024 is to have about 10 thousand premises for rent – ready or close to end of construction. Currently 90 percent of it is already secured.

Towarowa 22 – new 'destination' project

On the plot at Towarowa 22 in Warsaw, the demolition of the old shopping center has already started. This means that we are getting closer and closer to the start of our new 'destination' project. Advanced design works are underway and soon we will be able to present you a vision of development for this quarter of Wola.

Work on this project could accelerate, among others thanks to a new strategic partner for this project that joined us in the first half of the year. Under the agreement, Echo Investment will be a co-investor of the commercial part of this area, having 30 percent of shares in the special purpose vehicle, it will become the independent owner of the residential part, as well as the developer of the entire investment.

Commercial property sector

The first half of 2022 was marked by the sale of office buildings. As many as five of our buildings found new owners: MidPoint71 and West 4 Business Hub I in Wrocław and three buildings of Łódź-based Fuzja. The total value of the transactions amounted to EUR 205 million. We are working on three further transactions that should soon turn into signed sales contracts. These buildings are excellent investment products that are well-located and have reputable tenants.

At the end of June, we had two office buildings projects under construction with a total leasable area of around 39 thousand sqm. Another 190 thousand sqm is in the planning phase. We are pleased that among them there are new 'destinations' projects – places that attract people. Early next year we will be able to start the awaited projects such as Towarowa 22 in Warsaw or Wita Stwosza in Krakow. Multifunctional, well-designed large fragments of cities are our trademark, a reason to be proud and an expression of our concern for the sustainable development of cities.

Tenants' interest in using CitySpace's flexible office space has increased. The first half of the year was a continuation of the excellent trends from the end of last year. By June, the company had leased to clients over 1,5 thousand workstations.

Our shopping centers Libero in Katowice and Galeria Młociny in Warsaw are operating at full capacity, strengthening their position on local markets. Due to high footfall and, more importantly, tenants' turnover, which in Libero was 112 percent higher than in H1 2020, both projects remain fully leased and attract new clients and retail brands. are well-prepared to more challenging times on the market. The high cash position also means the possibility of monitoring the market in search of market opportunities, which would allow us to increase the scale of operations even faster.

In June, we also published our sustainability report for 2021. It summarizes our impact on the environment, economic and business background. Similar report was published by Archicom. Both documents confirm how much importance we attach in our Group to the issues of fair and sustainable business.

I encourage you to read our financial report for the first half 2022 in detail.

Yours sincerely

Financial position

The net profit attributable to equity holders of Echo Investment Group for the first half of 2022 amounted to PLN 61.9 million and was over 30 percent higher than in the corresponding period of 2021. The value of our assets still at the end of this period amounted to over PLN 6.7 billion. We maintain a high level of cash: at the end of the first half of the year it was over PLN 1 billion. In additional the net debt to asset ratio is decreased to c.a. 30 percent from 42 percent noted a year ago. All this factors show we

Nicklas Lindberg

CEO of Echo Investment

The net profit attributable to equity holders of Echo Investment Group for the first half of 2022 amounted to PLN 61.9 million and was over 30 percent higher than in the corresponding period of 2021. We maintain a high level of cash: at the end of the first half of the year it was over PLN 1 billion. In additional the net debt to asset ratio is decreased to c.a. 30 percent from 42 percent noted a year ago. All this factors show we are well-prepared to more challenging times on the market. The high cash position also means the possibility of monitoring the market in search of market opportunities, which would allow us to increase the scale of operations even faster.

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.

1996

First listing

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 in the first half of 2022 amounted to 608 full-time 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

Margaret Dezse

Independent Supervisory Board

Chair of the Audit Committee

Member

Tibor Veres

Deputy Chairman

Sławomir Jędrzejczyk

Independent Supervisory Board Member Deputy Chairman of the Audit Committee

Maciej Dyjas

Supervisory Board Member

Bence Sass

Supervisory Board Member

Péter Kocsis

Supervisory Board Member

Nebil Senman

Supervisory Board Member Audit Committee 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.

Photo: Midpoint71 office building in Wroclaw

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 30.06.2022	as at 30.06.2021	as at 30.06.2022	as at 30.06.2021
Revenue	598 140	420 896	128 835	92 562
Operating profit	162 654	60 990	35 034	13 413
Gross profit	103 992	56 689	22 399	12 467
Profit attributable to shareholders of the parent company	61 878	47 262	13 328	10 394
Cash flows from operating activities	(20 567)	170 566	(11 291)	37 510
Cash flows from investment activities	468 100	177 177	100 825	38 964
Cash flows from financing activities	56 385	(45 458)	12 145	(9 997)
Net cash flow	472 065	302 285	101 679	66 477
Total assets	6 708 798	7 049 679	1 433 320	1 559 388
Equity attributable to equity holders of the parent	1 650 767	1 628 695	352 683	360 267
Long-term liabilities	2 113 266	2 125 843	451 495	470 236
Short-term liabilities	2 748 795	3 119 861	587 274	690 113
Number of shares	412 690 582	412 690 582	412 690 582	412 690 582
Profit (loss) per one ordinary share	0,15	0,11	0,03	0,03
Book value per one share	4,00	3,95	0,85	0,87

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:

• − 4,6806 PLN/EUR as at 30 June 2022,
• − 4,5208 PLN/EUR as at 30 June 2021,
• − 4,5994 PLN/EUR as at 31 December 2021.

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:

• − 4,6427 PLN/EUR in the period from 1 January 2022 to 30 June 2022, − 4,5472 PLN/EUR
• in the period from 1 January 2021 to 30 June 2021,
• − 4,5775 PLN/EUR in the period from 1 January 2021 to 31 December 2021.

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

Shareholders of Echo Investment S.A.

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. None of the shares has limited rights.

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 30 June 2022 and as on the balance sheet day is based on data on shareholders holding minimum 5 percent of the total number of votes at the Ordinary General Meeting of Echo Investment S.A. of 15 June 2022 and notification from shareholders.

About the main 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 sqm 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 build-

ings 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 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 06

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

Surname / Position in the company	Number of shares held	Share in the capital and votes at GMS
Nicklas Lindberg President of the Board, CEO	732 402	0,18%
Maciej Drozd Vice-President of the Board, CFO	291 065	0,07%
Péter Kocsis Supervisory Board Member	94 192	0,02%
Bence Sass Supervisory Board Member	50 000	0,01%

In Q2 2022, Nicklas Lindberg purchased 131,880 of the Company's shares and Maciej Drozd 30,700 shares.

In Q3 2022 Nicklas Lindberg purchased 61,750 shares of the Company, Maciej Drozd – 38,600 shares, Péter Kocsis – 41,912 shares and Bence Sass – 50,000 shares.

Volume of bonds of Echo Investment S.A. held by members of the Management Board and the Supervisorys Board

Surname / Position in the company	Number of bonds held
Nicklas Lindberg President of the Board, CEO	229 (code PLECHPS00233)
Maciej Drozd Vice-President of the Board, CFO	50 (code PLECHPS00290) 316 (code PLECHPS00233)

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 30 June 2022 and during 2022, and none of them concluded any transactions for shares or bonds in the Company.

Major events in the 1st half-year 2022

Issue of PLN 140 million bonds for individual investors

In H1 2022, Echo Investment issued three series of bonds for individual investors.

07

General information about issued bonds

Series	K	L	M
Subscription start date	10 January 2022	22 February 2022	27 April, 2022
Subscription end date	21 January 2022	8 March 2022	11 May 2022
Series value	PLN 50 mln	PLN 50 mln	PLN 40 mln
Reduction rate	79%	27%	34%
Maturity date	3 years	4 years	4 years
Interest rate	WIBOR 6M + 4% margin	WIBOR 6M + 4% margin	WIBOR 6M + 4% margin

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

The offering agent was Powszechna Kasa Oszczędności Bank Polski S.A. - the Brokerage House in Warsaw.

The K, L and M-series bonds public offering was carried out on the basis of the prospectus approved by the Polish Financial Supervision Authority on 26 November 2021 and supplements to the prospectus.

PLN 140 mln

The value of the bonds issued for individual investors in H1 2022

Sale of West 4 Business Hub office building in Wroclaw

On 20 January 2022, West 4 Business Hub I, a modern A-class office building with 15,600 sqm GLA, was acquired by Solida Capital company.

The transaction value amounted to EUR 39 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 fitout works and those related to the removal of defects. As a result, the price payable at the closing amounted to EUR 35.4 million plus VAT. The seller will receive a separate consideration related to the performance of fit-out works on tenants' premises and the removal of defects, with a total amount of EUR 2.8 million plus VAT. The parties also entered into building quality guarantee agreements, rent guarantees, a fit-out agreement and a good neighbor agreement.

West 4 Business Hub office complex is a follow-up of West Gate and West Link office buildings that have already been built at Na Ostatnim Groszu street in Wrocław. Its first tenants of West 4 Business Hub are Vorwerk, PM Group, CitySpace and Sii Polska – one of the largest employers in the Polish IT industry.

West 4 Business Hub I was one of the first buildings where Echo Investment installed special anti-COVID systems improving the quality of air in the building that purifies the air, drawing on solutions naturally occurring in nature.

Maćków Pracownia Projektowa is responsible for the design of the project. West 4 Business Hub I has been awarded BREEAM environmental certificate with an Excellent rating.

Photo: West 4 Business Hub office building in Wrocław

EUR 39 mln

The sale price of the West 4 Business Hub office building in Wrocław

Issue of bonds worth PLN 110 million for institutional investors by Archicom S.A.

On 16 March 2022 a subsidiary of Echo Investment - Archicom S.A. - issued a series M6 / 2022 coupon bonds for a total amount of PLN 110 million, as part of the Bond Issue Program with mBank S.A. up to the maximum amount of PLN 350 million from 2016.

The bonds were issued for the period ending on 15 March 2024. The redemption will take place at their nominal value. The interest rate on the bonds was determined according to the variable WIBOR 3M interest rate, increased by a margin.

The interest period was three months. The bonds are not secured and were subject to introduction to trading in the alternative trading system Catalyst organized by the Warsaw Stock Exchange.

PLN 110 mln

The value of the bonds issued by Archicom for institutional investors in H1 2022

Release of Echo Investment's second sustainability report

Echo Investment has provided its second comprehensive summary of achievements and performance in the areas of environmental, social and corporate management. Details included in this report confirm that the company takes responsibility for people who work for it, for cities it co-creates and for the environment in which it develops its projects. Offices and estates built by Echo, along with the business dimension, also have the dimension of city-forming and good urban planning. They improve people's living conditions and support the proper development of cities.

As a result of a survey among stakeholders, the list of areas identified as most important included employee health and safety, anti-discrimination, diversity and equal treatment, green building, waste management, energy consumption, employee well-being, support for the development of sustainable cities, employee rights, social and environmental responsibility of subcontractors.

The Echo Investment Group also reported its economic impact figures in its 2021 report. As an investor, employer and ordering party, the Group has a significant economic impact - it contributes to generating jobs, salaries and creating added value. It was calculated in the report based on the Leontief model. The calculations indicated that one job at Echo Investment generates as many as 11 more jobs in the Polish economy. Each zloty of added value created in the Group generates 3.46 zlotys of added value throughout the economy. Such a high ratio is due to the fact that Echo's subcontractors and suppliers are almost exclusively Polish companies, employing people in Poland and paying taxes here.

Echo Investment voluntarily reports non-financial information due to the company's corporate maturity and because of the growing importance placed on conducting responsible business by the company's business partners, contractors, clients, shareholders and other stakeholders.

Our impact on the economy in 2021:

5,192

the total number of jobs maintained thanks to the Echo Group's operations.

PLN 252 mln

the total value of remuneration paid to employees in the Polish economy, as a result of the Echo Group's operations, taking into account indirect and induced impacts.

11

One job in Echo Group means 11 jobs in the entire economy.

value added generated thanks to the activities of the Echo Group in the entire economy.

Purchase of shares in the Towarowa 22 project by AFI Europe fund

On 8 June 2022, AFI Europe, an international investment group, finalized the purchase of shares in the Towarowa 22 project from the EPP N.V. group. Under the terms of the agreement, AFI Europe and Echo Investment will jointly participate in the completion of office and apartmentsfor-rent parts of the complex, owning 70 percent and 30 percent of the shares, respectively. According to the preliminary agreement concluded at the same time, Echo

Investment will become the sole owner of the residential part of the plot, for which it paid a down payment of EUR 23.7 million, and will also be the developer of the entire project.

Towarowa 22 is a 6.5-acre investment area located in the heart of Wola, a thriving district of Warsaw. The plot is intended for mixed-use buildings.

Pic. Towarowa 22 is one of the most attractive investment areas in Warsaw

Sale of three office buildings of Fuzja in Łódź

On 30 June 2022, KGAL Group finalized the purchase of three office buildings C, D and J from Echo Investment. The buildings are part of the mixed-use Fuzja project.

While the office buildings C and D are already completed, building J is under construction, and the seller has agreed to complete it.

The parties also entered into quality guarantee agreements for all the buildings, a rent guarantee agreement and a fit-out works agreement.

The value of the transaction on the agreement date amounted to EUR 56.7 million plus VAT. The amount payable at the closing was reduced by, among other things, the value of rent-free periods, rents on space not delivered to tenants, fit-out and construction works (including works related to the removal of possible defects), as well as other costs. As a result, the price payable at the closing amounted to EUR 43 million plus VAT.

After the closing, the seller will receive separate consideration related to the execution of the fit-out works carried out on the tenants' spaces and the removal of possible defects, in the total amount of EUR 3 million plus VAT, as well as the consideration related to the construction and obtaining of the occupancy permit for building J and the removal of possible defects, in the amount of EUR 4.1 million plus VAT.

The project is being developed on the basis of post-industrial buildings of a textile factory at Tymienieckiego Street in Łódź. The buildings are fully leased and offer 22 thousand sqm of modern office space . Office buildings C and D are already leased by Fujitsu Poland Global Delivery Center. The third building J is under construction and will be occupied by CitySpace, a flexible office space operator.

Medusa Group is responsible for the architectural design of Fuzja.

Photo: Fuzja's office complex in Łódź

EUR 56.7 mln

The sale price of three office buildings of the Fuzja complex in Łódź

Sale of MidPoint71 office building in Wrocław

The MidPoint71 office building in Wrocław was sold on 30 June 2022 to the Czech Trigea Real Estate Fund.

The value of the transaction amounted to EUR 109 million plus VAT and was reduced by the value of rent-free periods, rent reductions, as well as other costs, which resulted in a total of EUR 103.9 million plus VAT. The amount to be paid at the closing of the transaction was further reduced by, among other things, the value of the works related to the arrangement of unrented units in the building. This amount will be released in parts after the lease and the works are completed. As a result, the price to be paid at the closing amounted to EUR 100.5 million plus VAT.

The parties also entered into agreements for building quality guarantees and rent guarantees.

MidPoint71, commissioned in February 2022 and designed by architects of Medusa Group, offers more than 36,000 sqm of modern office space. The building is 80 percent leased to such companies as 3M GSC Poland, Pyszne.pl, PwC, CitySpace, CCC Group, Electrolux Poland, WooHoo and Archicom.

EUR 109 mln

The sale price of the MidPoint71 office building in Wrocław

Photo: MidPoint71 office building in Wrocław

Annual General Meeting of Shareholders

The Annual General Meeting of Shareholders of Echo Investment S.A. was held on 15 June 2022. Standard resolutions were passed on the approval of the financial statements and the management report for 2021, the adoption of the Supervisory Board's report on the results for 2021 and on the remuneration, the discharge of all members of the management board and the supervisory board, and the reappointment of the Supervisory Board with its unchanged composition for the next term. Shareholders also passed a resolution on the allocation of the profit generated in 2021.

The net profit of PLN 27.8 million, increased by PLN 153.7 million drawn from the Dividend Fund - a total of PLN 181.5 million - was allocated to be distributed to all shareholders of the Company. The dividend amount per share amounted to PLN 0.44. The amount of PLN 90.8 million, or PLN 0.22 per share, was paid on 28 December 2021 as dividend advances. The remaining dividend was paid on 26 July 2022.

08 Significant events after the balance sheet day

Issue of bonds worth PLN 65 million in total for individual investors

In Q3 2022, Echo Investment issued two series of bonds for individual investors.

Series	N	O
Start of subscription	27 June 2022	6 September 2022
End of subscription		7 July 2022 20 September 2022
Value	PLN 40 mln	PLN 25 mln
Reduction rate	37%	1%
Maturity	4 years	4 years
Interest	WIBOR 6M + margin 4%	WIBOR 6M + margin 4%

The bonds are not secured. N-series is listed on Warsaw Stock Exchange, O-series will also be introduced to trading on the regulated market. The money raised will be spent on business development.

The offering agent was Powszechna Kasa Oszczędności Bank Polski S.A. - the Brokerage House in Warsaw.

The N and O-series bonds public offering was carried out on the basis of the prospectus approved by the Polish Financial Supervision Authority on 26 November 2021 and supplements to the prospectus.

PLN 205 mln

Total value of five series of bonds for individual investors placed since the beginning of 2022

Tender offer for the shares of Archicom S.A.

On 23 August 2022, the majority shareholders of Archicom S.A., i.e. Echo Investment S.A. and DKR Echo Investment Sp. z o.o., announced a voluntary tender offer for 8,724,854 shares of Archicom S.A. entitling them to a total of 10,838,468 votes at the General Meeting of Shareholders. The tender offer concerns:

a. 6,611,240 A-series ordinary bearer shares, of which one share entitles the holder to one vote at the General Meeting, entitling the holder to exercise a total of 6,611,240 votes at the General Meeting, which in total represent approximately 20.74 percent of the total number of votes and approximately 25.75 percent of

the total number of shares in the Company's share capital. The shares are listed and traded on the regulated market operated by the Warsaw Stock Exchange; and

b. 2,113,614 B1-series registered shares, of which one share entitles the holder to two votes at the General Meeting, entitling the holder to exercise a total of 4,227,228 votes at the General Meeting, representing a total of approximately 13.26 percent of the total number of votes and approximately 8.23 percent of the total number of shares in the Company's share capital, dematerialized and registered with the KDPW (the Central Securities Depository of Poland).

Echo Investment intends to increase its majority stake in Archicom to continue the company's current direction and expand the scale of its operations. Archicom is to continue launching new residential projects to increase its value and competitiveness in the real estate market, while developing a strategic cooperation with its main shareholder in the residential segment in relation to land acquisition, designing, managing construction and sales processes, as well as in terms of supporting functions such as IT, accounting and human resources. In particular, the aim is to take advantage of cost synergies, implement proven business solutions, develop the exchange of knowhow and increase the competencies of managers and employees.

In addition, it is indicated that there is no intention to delist the shares of Archicom S.A. from the WSE in the near future.

Pledge on shares of Archicom S.A. held by Echo Investment Group

DKR Echo Invest S.A. and DKR Echo Investment Sp. z o.o. - companies of the Echo Investment Group which are direct shareholders of Archicom S.A. - pledged shares of Archicom S.A. to Bank Pekao S.A. on 22 July 2022.

Registered and financial pledges were placed on:

• 1. 4,843,950 dematerialized ordinary bearer shares, ISIN code PLARHCM00016, with a nominal value of PLN 10 each, having a total nominal value of PLN 48,439,500, listed on the Stock Exchange, which belong to DKR Echo Invest S.A.,
• 1. 8,007,649 dematerialized ordinary bearer shares, ISIN code PLARHCM00016, with a nominal value of PLN 10 each, having a total nominal value of PLN 80,076,490, listed on the Stock Exchange, which belong to DKR Echo Investment Sp. z o.o.,

Subscriptions began on 24 August and was closed on 22 September 2022.

The Management Board of Archicom estimated on 31 August 2022 that the successful completion of the tender offer for the sale of the Company's shares, announced by Echo Investment and DKR Echo Investment, will have a positive impact on Archicom's interest and will positively affect its further development. The Archicom's Management Board stated that the proposed price of PLN 18.3 per share is in the lower range of the fair value, at the same time, the proposed price is not a determinant of fair value from the perspective of assets related to Archicom S.A. included in the separate financial statements of Echo Investment S.A.

1. 4,093,888 dematerialized registered voting preference shares, ISIN code PLARHCM00081, with a nominal value of PLN 10 each, having a total nominal value of PLN 40,938,880, listed on the Stock Exchange, which belong to DKR Echo Investment Sp. z o.o.

The Management Board of Archicom S.A. agreed to exercise the pledgee's (Bank Pekao S.A.) voting rights attached to the pledged shares in Archicom S.A. upon the occurrence of an event of default and receiving by Archicom S.A. a copy of the bank's notice of its intention to exercise its rights under the pledge agreement, and for the duration of the pledge as well as under the terms and conditions as provided for in the pledge agreement.

09 Residential segment – market outlook and the Group's business activities

Residential market in Poland

The Q2 2022 brought a drop in sales in the primary housing market. The decline in the effective demand was caused by a number of factors, among the most important of which were the restrictive policy of the Monetary Policy Council and the Polish Financial Supervision Authority on raising interest rates and the method of calculating creditworthiness. As of 1 April 2022, when calculating creditworthiness, they need to take into account a bigger buffer for possible interest rate increases of up to 5 pp. The demand is also being held back by rising prices of apartments and emerging investment alternatives in the form of high-interest government bonds.

Based on JLL's analysis, the number of apartments sold in Q2 2022 in Poland's six largest markets amounted to 9,200, down 11.7 percent from the previous quarter. However, compared to the same period last year, this is a decrease of as much as 53 percent. It is important to remember, however, that 2021 was a record-breaking year: so we are comparing analogous periods of the best and worst year for the residential market in the last decade.

According to JLL analysts, the number of apartments on offer at the end of June 2022 amounted to 51 thousand. But due to regulatory reasons, this is not the reasonable offer. Taking into account apartments that were available for purchase in July 2022, the actual offer amounted to 43.2 thousand. What contributed to the increase in supply in the previous quarter was the entry into force of the Act on the Developer Guarantee Fund and the strategy of some developers to put apartments on the market before new obligations came into force. Thus, the trend of increases in supply is not expected to continue in the coming months.

As reported by JLL, the average prices of apartments that were on offer at the end of June 2022 have increased the most over the past three months in Wrocław (8.7 percent) where there was almost no price increase in the previous quarter. This was mainly due to launching premium and luxury apartment developments, with prices starting to deviate from the average market price in Q1 2022.

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

Apartments sold and launched for sale and the volume of the offer [thousands of units]

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

29 Financial report of Echo Investment S.A. and its Group for H1 2022

Difficulties in having sufficient creditworthiness and the extra demand generated by Ukrainians who escaped to Poland because of the war are contributing to the excellent performance of the market for apartments for rent. Rental rates are rising in almost every city, and apartment owners have no problems finding tenants. According to data provided by Bankier.pl and Otodom, in Cracow and Wrocław the rental prices of the

smallest and most popular apartments (up to 38 sqm) was 40 percent higher in June 2022 than a year earlier. The increase in Łódź amounted to 34 percent, in Warsaw to 32 percent and in Poznań to 28 percent.

Echo Investment's achievements in the segment of apartments for sale and for rent

From the beginning of the year to the end of June 2022. Echo Investment Group sold 1,027 apartments, of which the Echo Group accounted for 495 apartments and the Group of Archicom S.A. for 532. Both groups jointly handed to the customers to 755 apartments, including recognized the result in the first two quarters of the year: in the Echo Group it was 373, and in Archicom - 382.

In H1 2022 the Group started construction of 981 units for sale and , and as part of the Resi4Rent platform - also 593 apartments for rent in two projects located in Łódź and Wrocław.

Resi4Rent, which is the largest market-rate rental institution in Poland, currently has 2,450 completed and leased units in five major cities in Poland. It has 2,250 units under

construction and another 3,200 units with construction scheduled to start in 2022.

Echo Investment, Archicom and Resi4Rent are preparing projects with a total of over 11 thousand apartments for sale and rent, thus meeting their goal of maintaining their position as a nationwide leader in the residential sector.

Photo: Wola Station in Warsaw

Residential projects launched in the 1st half-year 2022

Investor Project		Number of apartments	Planned completion date
KRAKÓW
Echo Investment	Bonarka Living II C ul. Puszkarska	179	III Q 2023
Echo Investment	Bonarka Living II D ul. Puszkarska	151	III Q 2023
WARSZAWA
Echo Investment	Rytm al. KEN	288	III Q 2023
WROCŁAW
Archicom	Nowa Kępa Mieszczańska KM4 ul. Mieszczańska	185	I Q 2024
Archicom	Browary Wrocławskie BP5-6, ul. Jedności Narodowej	178	IV Q 2023
Total		981

Apartments sold by the Echo Investment Group [units]

Apartments booked as a result of the Echo Investment Goup [units]

– Echo Investment – Archicom

Photo: Reset in Warsaw

10 Commercial real estate – market outlook and Group business activities

Office market in Poland

At the end of H1 2022, the total supply of office space in Poland reached nearly 12.6 million sqm according to Colliers research. After a record-breaking beginning of the year, tenant activity in Poland's nine major office markets remained high also in the II quarter of this year. Almost twice as much space was leased in the capital city as in the first six months of 2021, and a 30 percent increase in demand was recorded in regional markets.

In Warsaw, the total stock of modern office space amount to less than 6.3 million sqm, and another 6.3 million sqm. in the other eight major regional agglomerations (Cracow, Wrocław, the Tri-City, Łódź, Poznań, Metropolis GZM, Lublin and Szczecin). The largest regional markets remained Cracow (1.7 million sqm), Wrocław (1.3 million sqm) and the Tri-City (1 million sqm).

In H1 2022, developers put into operation 129 thousand sqm of modern office space in 8 buildings in Warsaw. In regional cities, it was 26 buildings with a total area of 312 thousand sqm, with the largest amount in Katowice (about 116.3 thousand sqm),

the Tri-City (50.6 thousand sqm) and Wrocław (36.2 thousand sqm).

In Warsaw, the availability of office space for rent amounted to 748 thousand sqm, with the vacancy rate of 11,9 percent (a decrease of 0,6 percent y/y). In the central zones, the vacancy rate decreased to 11.6 percent, while outside the city center it reached 12.2 percent. In the eight major regional markets, 961 thousand sqm of space was available for rent, corresponding to 15,2 percent of the vacancy rate (an increase of 1.8 p.p. compared to the I half of 2021). The highest vacancy rate was recorded in Łódź - 18,6 percent.

In H1 2022, the total demand for modern office space in Warsaw amounted to 479 thousand sqm (traditional lease contracts). It was the highest half-yearly result in history. In regional cities, the demand reached 343 thousand sqm. This is 28 percent more than in the corresponding period of 2021.The largest share in the transaction volume were new contracts (55 percent) and renegotiations (33 percent).

Perspectives of each market sectors in comming 12 months:

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

Currently, nearly 780 thousand sqm of modern office space sqm is under construction - an decrease of 34 percent compared to the same period of 2021. In Warsaw, approximately 240 thousand sqm is under construction and it is the lowest volume for many years.

According to JLL analysts, the investment market in the office segment recorded a very good 1st half of the

year. Other eight major regional agglomerations of Poland also attracted investors, recording the best 1st halfyear in history in terms of the value of office transactions. Total turnover in H1 In 2022, in Poland, they exceeded EUR 1.3 billion, an increase of 54 percent compared to the same period last year.

Transactions concluded on regional markets accounted for 41 percent of the total volume. A significant part of it was placed in Wrocław, where Echo Investment finalized the sale of two buildings: MidPoint 71 and West 4 Business Hub I, for a total of nearly EUR 150 million. The regional transactions also include the sale of office buildings of the Fuzja complex by Echo Investment for nearly EUR 57 million.

Main office markets in Poland – key indicators of the 1st half-year of 2022

City	Existing space ['000 sqm]	New buildings ['000 sqm]	Gross demand ['000 sqm]	Vacancy rates [%]	Monthly rental rates [EUR/sqm]
Warsaw	6 270	129	479	11,9	18 – 25,5 / 11 – 16,85*
Kraków	1 666	48	109	16,6	14 – 16
Wrocław	1 284	38	61	14,8	14 – 15,5
Katowice	716	117	44	16,1	13,5 – 14,5
Łódź	630	41	32	18,6	11,5 – 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 H1 2022, Echo Investment sold five office buildings worth EUR 205 million: MidPoint71 and West 4 Business Hub I in Wrocław and three buildings of Łódź-based Fuzja.

At the end of H1 2022, Echo Investment had two office buildings projects under construction with a total leasable area of around 39 thousand sqm. Another 191.3 thousand sqm is in the planning phase.

The construction of three office buildings was completed in H1 2022: React I in Łódź and two buildings that are already sold: Fuzja CD also in Łódź and MidPoint71 in Wrocław. In total they delivered over 70 thousand sqm of usable space (GLA). All these office

buildings were developed in line with sustainable development principles, which is confirmed by their BREEAM environmental certificates achieving the Excellent level. In the course of construction, local and non-toxic materials were used, a waste management policy was applied and the building's impact on the environment was minimized. Tenants will benefit from solutions that support, among other things, energy and water saving, as well as charging stations for electric vehicles, changing rooms with drying rooms and showers for cyclists, and relevant infrastructure.

In H1 2022 has increased tenants' interest in using flexible office space. In the Echo Investment group, such a service is offered by CitySpace.

CitySpace currently has nearly 3,000 desks on 26 thousand sqm space in 12 locations in Poland. The 1st half of the year was a continuation of the excellent trends from the end of last year.

In the northern region (Warsaw, Gdańsk), new clients rented 296 workplaces, and 476 desks were contracted by existing clients. In the southern region (Wrocław, Katowice, Kraków), including Face2Face, West 4 and MidPoint offices opened in the last 18 months, a total of 750 new workplaces were sold.

Photo: MidPoint71 office building in Wrocław

EUR 205 mln

value of the office properties sold by Echo Investment in H1 2022

Retail real estate market in Poland

The condition of shopping centers after the pandemic seems to be recovered. According to data provided by the Polish Council of Shopping Centers, the turnover of shopping centers in June 2022 was 12 percent higher than in June 2019. There were increases in all categories of establishments, but most significantly in the biggest shopping centers (over 60 thousand sqm of GLA) - by 17.5 percent. The footfall in July 2022, as defined by the number of clients per one sqm of GLA, was 5.4 percent higher than in July 2019. Retail sales, as reported by the Statisticals Poland, increased by 9.1 percent in the first half of 2022 compared to the same period in 2021.

According to CBRE, at the end of June 2022, more than 360,000 sqm of retail space was under construction in Poland, of which more than half - located in cities with less than 100,000 residents. The pandemic has boosted the trend of everyday convenience shopping. Tenants are eager to expand in these types of stores and retail locations.

The investor sentiment towards the retail real estate sector is also on the rebound. According to JLL, in the H1 2022, retail building transactions closed in Poland with a total value of more than EUR 760 million, which is the best half-year result since the first half of 2018. Considering the transactions in the pipeline, analysts estimate that the full-year result could be at least EUR 1 billion.

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

• Pesimistic
• Very pesimistic

EUR 760 mln

The value of commercial real estate sales transactions in the H1 of 2022

Photo: Galeria Libero in Katowice

Echo Investment's achievements in the retail real estate segment

After the pandemic, both Libero in Katowice and Galeria Młociny in Warsaw returned to their typical functioning with very good footfall and tenants' turnover results.

Libero tenants' turnover in the first half of 2022 was 112 percent higher than in the first half of 2020 and by 80 percent compared to the first half of 2021. Its footfall was respectively 78 percent and 64 percent higher.

An equally good situation is observed in Galeria Młociny in Warsaw. Here, the tenants' turnover increased respectively by 76 percent and 63 percent compared to the first six months of 2020 and 2021, while footfall - by 71 percent and 64 percent.

When analyzing these data, it should be taken into account that in both comparative periods there were

about two months of strict limitations in the operation of shopping centers.

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

Photo: Galeria Młociny in Warsaw

11 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.

Echo Group's residential projects under construction as at 30 June 2022

Project / address	Sales area [sqm]	Number of units	Sales level [% of units]	Targeted revenues [PLN mln]	Targeted budget [PLN mln]	Expend iture incurred [%]	Start	Targeted completion
KRAKÓW
Osiedle Krk II ul. Zapolskiej	9 900	218	100%	99,6	67,4	95%	III Q 2020	III Q 2022
ZAM I ul. Rydlówka	6 300	115	97%	64,8	45,2	95%	I Q 2021	III Q 2022
Bonarka Living II C ul. Puszkarska	9 900	179	46%	101,5	70,1	30%	I Q 2022	III Q 2023
Bonarka Living II D ul. Puszkarska	8 400	151	50%	86,7	60,4	22%	I Q 2022	III Q 2023
ŁÓDŹ
Fuzja II ul. Tymienieckiego	12 400	240	89%	99,2	68,3	88%	IV Q 2020	III Q 2022
Fuzja III ul. Tymienieckiego	9 100	159	57%	79,2	54,8	44%	II Q 2021	II Q 2023
Zenit I ul. Widzewska	9 100	168	79%	61,9	45,6	38%	III Q 2021	IV Q 2022
Boho ul. Wodna	12 800	239	32%	109,2	78,2	24%	IV Q 2021	III Q 2023
POZNAŃ
Wieża Jeżyce I ul. Janickiego	11 600	206	69%	107,5	74,2	23%	IV Q 2021	IV Q 2023
Osiedle Enter II ul. Naramowice	9 400	157	99%	62,2	44,3	51%	II Q 2021	IV Q 2022
Osiedle Enter III ul. Naramowice	9 600	166	99%	66,2	46,4	58%	II Q 2021	IV Q 2022

Echo Group's residential projects under construction as at 30 June 2022

Project / address	Sales area [sqm]	Number of units	Sales level [% of units]	Targeted revenues [PLN mln]	Targeted budget [PLN mln]	Expend iture incurred [%]	Start	Targeted completion
WARSAW
Stacja Wola II ul. Ordona	13 700	249	100%	146,0	95,8	91%	III Q 2020	II Q 2022
Rytm al. KEN	17 300	288	60%	289,5	176,2	34%	I Q 2022	IV Q 2023
Total	139 500	2 535		1 373,4	926,8

Archicom Group's residential projects under construction as at 30 June 2022

Project / address	Sales area [sqm]	Number of units	Sales level [% of units]	Targeted revenues [PLN mln]	Targeted budget [PLN mln]	Expend iture incurred [%]	Start	Targeted completion
WROCŁAW
Browary Wrocławskie BA2, BA3 ul. Jedności Narodowej	13 800	239	48%	183,1	93,8	73%	I Q 2021	II Q 2023
Browary Wrocławskie BP5-6 ul. Jedności Narodowej	9 300	178	29%	107,8	63,2	23%	I Q 2022	IV Q 2023
Olimpia Port M24, M25, M26 ul. Ameriga Vespucciego	10 700	181	40%	124,1	67,0	23%	III Q 2021	III Q 2023
Olimpia Port M37, M39 ul. Ameriga Vespucciego	7 800	156	12%	87,1	58,9	43%	IV Q 2021	II Q 2023
Olimpia Port M36, M38 ul. Ameriga Vespucciego	4 900	88	73%	49,5	29,4	74%	I Q 2021	IV Q 2022
Olimpia Port M34, M35 ul. Ameriga Vespucciego	2 800	56	98%	27,5	17,0	98%	IV Q 2020	II Q 2022
Planty Racławickie R5, R6, R7 ul. Racławicka	9 900	169	87%	96,1	56,1	95%	IV Q 2020	III Q 2022
Planty Racławickie R8 ul. Wichrowa / Racławicka	5 500	94	55%	59,2	38,0	42%	IV Q 2021	III Q 2023
Awipolis L3, L4 ul. Władysława Chachaja	9 400	178	88%	80,0	55,2	88%	IV Q 2020	III Q 2022
Awipolis etap 3 ul. Władysława Chachaja	6 600	121	46%	60,6	42,7	40%	IV Q 2021	III Q 2023
Sady nad Zieloną ul. Blizanowicka	4 200	80	94%	35,3	26,1	95%	IV Q 2020	III Q 2022
Nowa Kępa Mieszczańska KM4 ul. Mieszczańska	8 700	185	34%	118,8	78,6	38%	I Q 2022	I Q 2024
Total	93 600	1 725		1 029,1	626,0

Echo Group's residential projects under preparation as at 30 June 2022

Project / address	Sales area [sqm]	Number of units	Targeted revenues [PLN mln]	Targeted budget [PLN mln]	Expenditure incurred [%]	Targeted start	Targeted completion
KRAKÓW
ZAM II ul. Rydlówka	5 500	100	75,1	50,6	23%	III Q 2022	I Q 2024
Wita Stwosza Resi ul. Wita Stwosza	8 600	180	132,5	81,0	23%	II Q 2023	IV Q 2024
ŁÓDŹ
Zenit II ul. Widzewska	8 200	160	63,3	44,7	8%	IV Q 2022	II Q 2024
Zenit III ul. Widzewska	8 300	164	64,6	45,1	7%	IV Q 2023	II Q 2025
Zenit IV ul. Widzewska	8 500	174	70,7	47,1	6%	II Q 2024	IV Q 2025
Zenit V ul. Widzewska	9 900	184	86,5	53,9	6%	IV Q 2024	II Q 2026
Zenit VI ul. Widzewska	8 500	170	76,7	46,5	6%	II Q 2025	IV Q 2026
Zenit VII ul. Widzewska	5 000	97	41,7	29,3	7%	IV Q 2022	III Q 2024
Zenit VIII ul. Widzewska	8 800	165	79,6	52,2	6%	I Q 2024	III Q 2025
Zenit IX ul. Widzewska	5 800	115	54,3	35,3	6%	II Q 2025	IV Q 2026
Fuzja Lofty G01 ul. Tymienieckiego	8 000	160	82,1	62,5	8%	I Q 2024	II Q 2026
Fuzja Lofty G02 ul. Tymienieckiego	9 700	171	99,2	86,1	7%	II Q 2023	IV Q 2025
POZNAŃ
Apartamenty Esencja II ul. Grabary	6 800	130	84,1	60,1	16%	III Q 2023	II Q 2025
Wieża Jeżyce II ul. Janickiego	15 100	259	151,3	96,6	14%	III Q 2022	II Q 2024
Wieża Jeżyce III ul. Janickiego	13 600	242	143,4	90,8	13%	I Q 2023	IV Q 2024
Wieża Jeżyce IV ul. Janickiego	11 900	183	142,0	89,0	11%	I Q 2023	IV Q 2024
Opieńskiego I ul. Opieńskiego	15 300	174	128,9	92,1	7%	III Q 2024	II Q 2026
Opieńskiego II ul. Opieńskiego	12 500	212	108,7	75,1	6%	I Q 2025	I Q 2027
Opieńskiego III ul. Opieńskiego	17 200	266	156,6	103,9	4%	III Q 2025	III Q 2027
Opieńskiego IV ul. Opieńskiego	10 000	160	99,7	60,2	7%	I Q 2026	IV Q 2028
WARSZAWA
Stacja Wola III ul. Ordona	13 300	232	219,0	122,6	24%	IV Q 2022	IV Q 2024
Projekt Mokotów I ul. Domaniewska	29 600	556	521,6	320,8	29%	IV Q 2022	IV Q 2024
Projekt Mokotów II ul. Domaniewska	15 000	286	279,9	157,5	30%	II Q 2023	I Q 2025

Echo Group's residential projects under preparation as at 30 June 2022

Project / address	Sales area [sqm]	Number of units	Targeted revenues [PLN mln]	Targeted budget [PLN mln]	Expenditure incurred [%]	Targeted start	Targeted completion
Projekt Mokotów III ul. Domaniewska	15 600	301	299,4	168,1	29%	IV Q 2023	III Q 2025
Projekt Mokotów IV ul. Domaniewska	6 300	123	124,3	68,8	29%	II Q 2024	I Q 2026
Total	277 000	4 964	3 385,3	2 139,8

Archicom Group's residential projects under preparation as at 30 June 2022

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 R9 ul. Wichrowa / Racławicka	9 500	171	121,3	81,9	17%	III Q 2022	II Q 2024
Planty Racławickie R10 ul. Wichrowa / Racławicka	5 500	98	67,9	44,2	14%	I Q 2023	IV Q 2024
Nowa Kępa Mieszczańska KM5 ul. Mieszczańska	2 000	20	25,2	23,1	21%	III Q 2022	III Q 2024
Nowa Kępa Mieszczańska KM6 ul. Mieszczańska	7 200	163	110,6	78,2	24%	III Q 2022	III Q 2024
Gwarna ul Gwarna	4 100	97	58,7	41,9	29%	III Q 2023	II Q 2025
Iwiny - Schuberta ul. Schuberta	4 000	60	35,2	29,5	10%	II Q 2024	IV Q 2025
Awipolis etap 4a ul. Władysława Chachaja	10 000	186	109,1	79,0	11%	I Q 2023	IV Q 2024
Awipolis etap 4b ul. Władysława Chachaja	3 200	56	35,6	25,2	9%	III Q 2023	II Q 2025
Sady nad Zieloną 2 A1, C ul. Blizanowicka	5 000	97	53,9	39,8	19%	I Q 2023	IV Q 2024
Sady nad Zieloną 2 B ul. Blizanowicka	6 300	123	68,6	51,2	16%	IV Q 2023	III Q 2025
Czarnieckiego - M ul. Stefana Czarnieckego	3 600	71	48,9	35,2	19%	II Q 2024	III Q 2026
Czarnieckiego - AH ul. Stefana Czarnieckego	1 100	60	15,3	11,1	20%	III Q 2024	IV Q 2026
WARSZAWA
Projekt Mokotów* ul. Domaniewska	14 400	257	241,1	175,4	38%	II Q 2023	I Q 2025
POZNAŃ
Projekt Poznań I* ul. Janickiego	13 000	245	140,4	108	23%	IV Q 2023	III Q 2025
Projekt Poznań II* ul. Janickiego	13 800	252	149,3	114,9	23%	II Q 2024	II Q 2026
Total	102 750	1 956	1 281,1	938,6

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

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

Photo: Stacja Wola in Warsaw

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 30 June 2022

Project / address	Residential area [sqm]	Number of units	Targeted annual rental revenues [PLN mln]	Targeted budget [PLN mln]	Completion
R4R Wrocław Rychtalska Wrocław, ul. Zakładowa	11 400	302	8,4	76,8	III Q 2019
R4R Łódź Wodna Łódź, ul. Wodna	7 800	219	4,9	52,4	IV Q 2019
R4R Wrocław Kępa Mieszczańska Wrocław, ul. Dmowskiego	9 300	269	6,8	76,3	II Q 2020
R4R Warszawa Browary Warszawa, ul. Grzybowska	19 000	450	16,6	187,6	III Q 2020
R4R Warszawa Woronicza Warszawa, ul. Suwak	7 900	227	6,2	60,7	IV Q 2020
R4R Warszawa Taśmowa Warszawa, ul. Taśmowa	13 000	372	11,1	112,1	I Q 2021
R4R Gdańsk Kołobrzeska Gdańsk, ul. Kołobrzeska	10 000	302	8,8	88,7	II Q 2021
R4R Poznań Szczepanowskiego Poznań, ul. Szczepanowskiego	5 000	160	3,8	45,3	III Q 2021
Total	83 400	2 301	66,6	699,9

Residential projects of rental platform Resi4Rent under construction as at 30 June 2022

Project / address	Residential area [sqm]	Number of units	Targeted annual rental revenues [PLN mln]	Targeted budget [PLN mln]	Start	Targeted completion
R4R Warszawa Żwirki Warszawa, ul. Żwirki i Wigury	5 200	161	5,3	53,2	III Q 2020	III Q 2022
R4R Kraków Puszkarska Kraków, ul. Puszkarska	5 100	149	4,0	40,2	III Q 2020	III Q 2022
R4R Warszawa 1 Warszawa	11 200	344	11,2	119,0	II Q 2021	I Q 2023
R4R Kraków 3 Maja Kraków, ul. 3 Maja	12 100	387	11,6	102,1	II Q 2021	IV Q 2022
R4R Warszawa Wilanowska Warszawa, ul. Wilanowska	12 200	375	12,3	130,0	III Q 2021	II Q 2023
R4R Wrocław Jaworska Wrocław, ul. Jaworska	13 700	391	12,1	120,2	III Q 2021	III Q 2023
R4R Łódź Kilińskiego Łódź, ul. Kilińskiego	10 000	291	7,4	77,9	II Q 2022	I Q 2024
R4R Wrocław Park Zachodni Wrocław, ul. Horbaczewskiego	10 100	302	8,6	81,7	II Q 2022	IV Q 2023
Total	79 600	2 400	72,5	724,3

Residential projects of rental platform Resi4Rent in preparation as at 30 June 2022

Project / address	Residential area [sqm]	Number of units	Targeted annual rental revenues [PLN mln]	Targeted budget [PLN mln]	Start	Targeted completion
R4R Gdańsk* Gdańsk	10 000	286	10,3	122,4	III Q 2022	I Q 2024
R4R Kraków Jana Pawła Kraków, ul. Jana Pawła II	8 700	296	7,7	85,6	III Q 2022	I Q 2024
R4R Wrocław Wrocław	9 700	290	8,9	89,5	III Q 2022	II Q 2024
R4R Warszawa 2 Warszawa	8 600	304	9,4	94,3	I Q 2023	IV Q 2024
R4R Wrocław 2 Wrocław	13 000	369	13,5	148,8	III Q 2022	I Q 2025
R4R Gdańsk 2 Wrocław	24 400	729	25,4	264,9	IV Q 2022	IV Q 2024
R4R Poznań 3 Poznań	12 500	384	10,5	131,2	IV Q 2022	III Q 2024
R4R Kraków 4 Kraków	29 100	868	30,9	310,8	IV Q 2022	IV Q 2024
Total	116 000	3 526	116,7	1 247,5

* 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.

Photo: Apartments for rental Resi4Rent

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 30 June 2022

Project / address	GLA [sqm]	Leasing [%]	NOI [EUR mln]	Targeted budget [PLN mln]	Expend iture incurred [%]	Recognized fair value gain cu mulatively [PLN mln]	Completion	Comments
Moje Miejsce II Warszawa, ul. Beethovena	17 100	71%	3,2	157,2	86%	22,3	IV kw. 2020	ROFO agreement with Globalworth Poland
Face 2 Face I Katowice, ul. Grundmanna	20 700	94%	3,8	157,2	96%	56,3	I kw. 2020
Face 2 Face II Katowice, ul. Grundmanna	26 500	96%	4,8	208,3	99%	61,4	IV kw. 2020
React I Łódź al. Piłsudskiego	15 100	28%	2,5	113,9	80%	20,0	I kw. 2022
City Forum – City 2 Wrocław, ul. Traugutta	12 700	98%	2,4	96,0	88%	49,5*	II kw. 2020	Archicom's S.A. office building
Total	92 100		16,7	732,5		160,1

* cumulative fair value, without separating the profit recognized in consolidation with the Echo Investment group

All office buildings in the table above are presented as assets held for sale in the interim condensed consolidated statement of financial position, except for the React I building, which is classified as investment property.

Echo Group's office buildings under construction as at 30 June 2022

Project / address	GLA [sqm]	Leasing [%]	NOI [EUR mln]	Targeted budget [PLN mln]	Expend iture incurred [%]	Recognized fair value gain [PLN mln]	Start	Targeted completion
Brain Park I Kraków, al. Pokoju	29 600	35%	5,5	270,2	56%	31,8	I Q 2021	IV Q 2022
Fuzja I01 & I03 Łódź, ul. Tymienieckiego	9 400	0%	1,6	87,1	13%	-	I Q 2022	IV Q 2023
Total	39 000		7,1	357,3		31,8

Echo Group's office buildings in preparation as at 30 June 2022

Project / address	GLA [sqm]	NOI [EUR mln]	Targeted budget [PLN mln]	Expenditure incurred [%]	Targeted start	Targeted completion
Brain Park II Kraków, ul. Fabryczna / al. Pokoju	12 800	2,4	121,2	28%	III Q 2022	III Q 2023
Wita Stwosza Kraków, ul. Wita Stwosza	26 600	5,0	257,0	23%	I Q 2023	III Q 2024
Piotra Skargi Katowice, ul. P. Skargi / Sokolska	26 500	4,6	207,9	7%	I Q 2023	III Q 2024
React II Łódź, al. Piłsudskiego	25 900	4,4	194,0	8%	I Q 2023	I Q 2024
Swobodna I Wrocław, ul. Swobodna	16 200	3,1	152,1	11%	II Q 2023	III Q 2024
Swobodna II Wrocław, ul. Swobodna	26 800	5,1	248,0	12%	IV Q 2023	II Q 2025
West 4 Business Hub II Wrocław, ul. Na Ostatnim Groszu	23 100	4,0	182,9	13%	I Q 2023	III Q 2024
West 4 Business Hub III Wrocław, ul. Na Ostatnim Groszu	33 400	5,8	257,7	11%	I Q 2024	I Q 2026
Total	191 300	34,3	1 620,8

All office buildings under construction and under preparation are presented as 'investment properties under

construction' in the condensed interim consolidated statement of financial position.

Photo: The BrainPark office building in Cracow - under construction

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

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.

Retail projects in operation as at 30 June 2022

Project / address	GLA [sqm]	Leasing [%]	NOI [EUR mln]	Targeted budget [PLN mln]	Expend iture incurred [%]	Recognized fair value gain cumu latively [PLN mln]	Completion	Comments
Libero Katowice, ul. Kościuszki	44 900	98%	9,3	390,4	100%	203,5	IV Q 2018	ROFO agreement with EPP.
Galeria Młociny Warszawa, ul. Zgrupowania AK Kampinos	84 300	99%	20,4	1 278,0	99,6%	2,3	II Q 2019	30% JV with EPP hold ing 70%.
Total	129 200		29,7	1 668,4		205,9

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 30 June 2022

		Potential of leasing /
Project / address	Plot area [sqm]	sales area [sqm]	Comments
Warszawa, ul. Towarowa	64 900	201 000	The project on the plot office and service functions owned in 30 percent by Echo Investment and in 70 percent by AFI Europe. Ultimately, the plot for residential will be owned by Echo Investment group.
Kraków, ul. Kapelanka	56 000	70 000	Plot for office, service and rental apartments.
Warszawa, al. KEN	29 700	32 000	Plot for office, service and apartments.
Łódź, ul. Tymienieckiego	22 100	26 800	Plot for office, service and residential functions.
Total	172 700	329 800

Archicom Group's early stage projects as at 30 June 2022

		Potential
Project / address	Plot area [sqm]	of leasing / sales area [sqm]	Comments
Iwiny, Radomierzycka	65 700	29 300	Plot for residential function.
Wrocław, Karkonoska	24 500	25 200	Plot for residential function.
Wrocław, Góralska	9 500	18 000	Plot for residential function.
Wrocław, Rychtalska	5 100	4 800	Plot for residential function.
Kraków, Dąbrowskiego	3 400	4 100	Plot for residential function.
Kraków, Duża Góra	3 900	4 700	Plot for residential function.
Total	112 100	86 100

Echo Group's other properties as at 30 June 2022

	Plot area
Project / address	[sqm]	Comments
Poznań, Naramowice	77 500
Łódź, ul. Widzewska	19 750
Gdańsk, ul. Nowomiejska	4 300	Preliminary sale agreement.
Zabrze, ul. Miarki	8 100
Total	109 650

Archicom Group's other properties as at 30 June 2022

Project / address	Plot area [sqm]	Comments
Wrocław, ul. Murowana	3 100	Plot for residential function.
Wrocław, obręb Jagodno	3 500	Plot for residential function.
Gajków, ul. Janowicka	7 250	Built-up plot - production and warehouse buildings.
Total	13 850

12 Main investments of the 1st halfyear 2022 – acquisition of plots

Currently, Echo Investment Group it secures by preliminary agreements real estates with c.a. 22,000 sqm residential potential. In addition, Echo Investment has signed a preliminary contract for the purchase from a joint venture company (Towarowa 22) of land intended for the construction of apartments for sale with a potential of c.a. 13,500 sqm.

After the balance sheet date, Archicom S.A. finalized the purchase of a plot of land with a potential of c.a. 2,000 sqm of residential space in Wrocław. The Archicom Group has also signed two preliminary contracts with companies from the Echo Group for the purchase of two properties in Warsaw and Poznań with a total potential of c.a. 42,500 sqm.

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.

Photo: The BrainPark office building in Cracow under construction

51 Financial report of Echo Investment S.A. and its Group for H1 2022

13 Factors and unusual events affecting the results in the 2nd quarter of 2022

Hand overs of 255 housing and retail units of Echo Group to clients.

Echo Group's residential project's shares in the total number of final contracts in the II quarter of 2022 [units]

Hand overs of 101 housing and retail units of Archicom Group to clients.

– Warszawa, Stacja Wola II

– Other

Archicom Group residential project's shares in the total number of final contracts in the II quarter of 2022 [units]

Profit/loss on investment property by assets in the 2nd quarter of 2022 [PLN '000]

Costs of sales and general administration.

Valuation of bonds and loans at amortized cost.

Valuation and execution of hedging financial instruments for foreign currencies.

Interest on deposits and loans granted.

14 Significant factors influencing the development of Company and the Group in coming quarters

Factors of a macroeconomic nature

Positive

• − Sustained high inflation supporting increase of demand for apartments from investors (12.3 percent, 13.9 percent, 15.5 percent in April, May and June respectively, compared to the corresponding months of 2021),
• − an increase of average monthly salaries in the business sector excluding profit-sharing payments in Q2 2022 by 3.6 percent compared to Q1 2022,
• − a decrease of the seasonally adjusted registered unemployment rate by 5.2 percent in April and 5.0 percent in June (Main Statistic Office GUS),
• − a structural deficit of apartments and growing value of apartments,
• − a decrease in banks' credit margins, which in the longterm translates into better credit conditions than loans taken under low interest rates.

Negative

• − High inflation as a cause of deterioration of financial standing of households that limits purchasing power and lowers consumer sentiment,
• − slower GDP growth in Q2 2022 to 5.5 percent y / y compared to 8.5 percent in Q1 2022 (NBP estimates),
• − emergence of investment alternatives bringing higher income with a lower level of risk than apartments (treasury bonds). Growing interest rates on deposits,
• − a reduction of banks' activity in the loan market as a result of stricter criteria for granting mortgage loans, increases in interest rates made by the Monetary Policy Council (RPP),
• − a deterioration in the consumer confidence index by 5.4 p.p. in June 2022 compared to May 2022 and by 29,0 p.p. compared to June 2021,
• − uncertainty about the prices of 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,
• − increasing prices of construction materials, that amounted to 32 percent y / y (according to Murator magazine).

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

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

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

Valuation of interests entities accounted for using the equity method:

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

Sale of land plots in Gdańsk and Poznań.

Hand over of Archicom Group's apartments, mainly in Wrocław projects:

• − Awipolis L3, L4,
• − Planty Racławickie R5-R7,
• − Sady nad Zieloną,
• − Olimpia Port M36, M38.

Sale and administrative costs.

Valuation of liabilities on account of bonds and loans, at amortized cost.

Revaluation and sale of completed properties:

• − Moje Miejsce II in Warsaw,
• − Face2Face I i II in Katowice,
• − City2 in Wrocław (Archicom's project).

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

• − Brain Park I in Kraków,
• − Fuzja J in Łódź.

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

• − Libero in Katowice,
• − React I in Łódź.

Valuation of loans and cash on account of changes in exchange rates of foreign currencies.

Valuation and implementation of hedging financial instruments for foreign currencies.

Interest on deposits and loans granted.

Discounts and interest on credits, bonds and loans.

15 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 from the profit in 2018 and subsequent years 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.

Resolution on the payment of an advance dividend from 2021 profit

On 18 November, 2021 the Management Board of Echo Investment S.A. adopted a resolution to pay to shareholders an advance on future dividend for the financial year 2021. 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 28 December 2021.

General Meeting of Shareholders decision regarding dividends for 2021

The Annual General Meeting of Shareholders of Echo Investment S.A. was held on June 15, 2022. Shareholders also passed a resolution on the allocation of the profit generated in 2021.

The net profit of PLN 27.8 million, increased by PLN 153.7 million drawn from the Dividend Fund - a total of PLN 181.5 million - was allocated to be distributed to all shareholders of the Company. The dividend amount per share amounted to PLN 0.44. The amount of PLN 90.8 million, or PLN 0.22 per share, was paid on December 28, 2021 as dividend advances. The remaining dividend was paid on July 26, 2022.

PLN 0.44

Amount of dividend from 2021 profit, per share.

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

16 Financial liabilities of the Company and its Group

Bonds

Company's liabilities due to bonds issued as at 30 June 2022

Series	ISIN code	Bank / brokerage house	Nominal value	Maturity	Interest rate
		Bonds issued by Echo Investment S.A. for institutional investors ['000 PLN]
1/2019	PLECHPS00308	mBank S.A.	96 510	11.04.2023	WIBOR 6M + margin 4,25%
1/2020	PLO017000012	mBank S.A.	150 000	31.05.2024	WIBOR 6M + margin 4,50%
1P/2020	PLO017000020	PKO TFI Parasolowy and Michael / Ström Dom Maklerski S.A. as an agent	100 000	5.08.2024	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%
		Total	713 510
		Bonds issued by Archicom S.A. for institutional investors ['000 PLN]
M3/2018	PLARHCM00065	mBank S.A.	50 000	13.07.2022	WIBOR 3M + margin 2,9%
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%
		Total	220 000
		Bonds issued by Echo Investment S.A. for individual investors ['000 PLN]
F – series	PLECHPS00233	DM PKO BP S.A.	125 000	11.10.2022	WIBOR 6M + margin 2,9%
G – series	PLECHPS00241	DM PKO BP S.A.	75 000	27.10.2022	WIBOR 6M + margin 2,9%
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 Dom Maklerski S.A., Dom Maklerski 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%
		Total	423 832
		Bonds issued by Echo Investment S.A. for seller of shares in Archicom S.A. ['000 PLN]
1P/2021	PLO017000053	Michael/Ström DM (agent)	188 000	22.10.2024	fixed interest rate 5%
		Total	188 000
		Total bonds issued in PLN	1 545 342

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

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.

Bonds issued by Echo Investment S.A. are not secured. All except series 2P/2020 are quoted in the Alternative Trading System (ATS) Catalyst: bonds for individual investors on the WSE ATS platform Catalyst for individual investors - Bond-Spot (ATS) Catalyst.

Change of company's bond liabilities in the 1st half-year 2022

Bonds redeemed by Echo Investment S.A. ['000 PLN]

Series	ISIN code	Date	Nominal value
1/2018	PLECHPS00282	25.04.2022	31 410
Emisja serii H	PLECHPS00266	22.05.2022	50 000
Total			81 410

Bonds redeemed by Archicom ['000 PLN]

Series	ISIN code	Date	Nominal value
M5/2020	PLO221800025	7.02.2022	78 500
Total			78 500

Bonds issued by Echo Investment ['000 PLN]

Series	ISIN code	Date	Nominal value
seria K	PLECHPS00324	1.02.2022	50 000
seria L	PLECHPS00332	17.03.2022	50 000
seria M	PLECHPS00340	25.05.2022	40 000
Total			140 000

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

Series	ISIN code	Date	Nominal value
M6/2022	PLO221800090	16.03.2022	110 000
Total			110 000

In in the 2nd half-year 2022 Echo Investment issued also N and O-series bonds for individual investors with the

nominal value of PLN 65 million.

Investment loans

Investment loans of Echo Group as at 30 June 2022 ['000]

			Contractual amount of loan		Outstanding loan amount			Repay
Investment project	Borrower	Bank	PLN	EUR	PLN	EUR	Interest rate	ment deadline
Libero, Katowice	Galeria Libero - Projekt Echo 120 Sp. z. o.o. Sp.k.	Santander Bank Polska S.A. / BNP Paribas Bank Polska S.A.		67 566		64 018	EURIBOR 3M + margin	22.11.2024
Galeria Młociny, Warszawa*	Berea Sp. z o.o.	Santander Bank Polska S.A. / PKO BP S.A. / Bank Gosp odarstwa Krajowego		56 100		52 886	EURIBOR 3M + margin	30.04.2025
Moje Miejsce II, Warszawa	Projekt Beethovena - Projekt Echo 122 Sp. z o.o. S.K.A.	PKO BP S.A.		23 034		22 350	EURIBOR 3M + margin	30.09.2023
Face2Face I i II, Katowice	Face2Face - Stranraer Sp. z o.o. S.K.A.	Bank Pekao S.A.		64 997		59 032	EURIBOR 3M + margin	31.12.2023
			18 000		424		WIBOR 1M + margin	30.09.2022
Brain Park I i II, Kraków	Echo Arena Sp. z o.o.	PKO BP S.A. / Bank Pekao SA		65 560			EURIBOR 3M + margin	30.06.2026
			9 000				WIBOR 1M + margin	30.06.2023
Projekt Echo 129	Projekt Echo 129 Sp. z o.o.	Bank Pekao S.A.		50 000		26 650	EURIBOR 3M + margin	30.09.2023
Resi4Rent * - I transza projektów	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		104 162		WIBOR 3M + margin	10.12.2026
Resi4Rent* – 2nd tranche	R4R Poznań Szcze panowskiego Sp. z o.o. / R4R Warszawa Taśmowa Sp. z o.o. / R4R Warszawa Woronicza Sp. z o.o. / R4R Gdańsk Kołobrzeska Sp. z o.o.	Santander S.A. / Helaba AG	69 000		68 284		WIBOR 3M + margin	27.06.2027
Resi4Rent* – 3rd tranche	R4R Warszawa Wilanows ka 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 Gospodarstwa Krajowego / BNP Paribas Polska	74 402		17 515		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		0		WIBOR 1M + margin	15.12.2029
Total			372 418	327 257	190 386	224 936

* 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 30 June 2022 ['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	4 480	EURIBOR 1M + margin	22.12.2031
Total			17 600	4 480

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 30 June 2022 ['000 PLN]

Bank	Contractual amount of loan	Outstanding loan amount	Interest rate	Repayment deadline
PKO BP S.A. *	75 000	62 486	WIBOR 1M + margin	31.10.2023
Alior Bank S.A.	25 000	25 000	WIBOR 3M + margin	10.07.2023
Santander Bank Polska S.A.* *	100 000	65 223	WIBOR 1M + margin	30.11.2022
Total	200 000	152 710

* The available loan amount as at 30 June 2022 is reduced by the issued guarantees and amounts to PLN 10,5 mln.

**The available loan amount as at 30 June 2022 is reduced by the issued guarantees and amounts to PLN 4,1 million.

Credit facilities of Archicom Group as at 30 June 2022 ['000 PLN]

Bank	Borrower	Contractual amount of loan	Outstanding loan amount	Interest rate	Repayment deadline
mBank S.A. *	Archicom Sp. z o.o. – Realizacja Inwestycji Sp.k.*	15 000	0	WIBOR 1M + margin	The repayment will take place on the 90th day after the drawing date at the latest, irrespective of other drawdowns. The final repayment date is 23.09.2024.
PKO BP S.A.**	Archicom S.A.**	80 000	0	WIBOR 3M + margin	9.03.2024
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

** a loan in the current account. The company will use the funds from the loan to finance current liabilities resulting from the operations of the Archicom S.A. group of companies.

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.

17 Off-balance sheet liabilities

Financial surety agreements issued by Echo Investment Group as at 30 June 2022 [PLN '000]

Issuer	Entity receiving surety	Beneficiary	Value	Validity	Description
Echo Investment S.A.	Dellia Investments - Projekt Echo 115 Sp. z o.o. Sp.k.	HPO AEP Sp. z o.o. Sp. j.	11 702	7.12.2031	Surety for liabilities of the entity, as a col lateral of liabilities resulting from the good neighbourhood agreement of 7.12.2016. Mutual surety issued in EUR.
Echo Investment S.A.	Pimech Invest Sp. z o.o.	Miasto Stołeczne Warszawa	1 230	30.03.2023	Surety for proper performance of the lia bilities oarising from the road construction agreement.
Archicom S.A.	Archicom Nierucho mości 14 Sp. z o.o.	Bank Pekao S.A.	6 979	30.03.2035 (subject to early expiry upon meeting DSCR 1.2)	Corporate guarantee, as a secure a loan for execution of City Forum A project.
Archicom S.A.	Archicom Nierucho mości 14 Sp. z o.o.	Bank Pekao S.A.	13 224	30.03.2035 (subject to early expiry upon meeting DSCR 1.2)	Surety granted, as a secure a loan for execution of City Forum A project.
Archicom S.A.	Archicom Nierucho mości 14 Sp. z o.o.	Bank Pekao S.A.	0	30.03.2035 (subject to early expiry upon meeting DSCR 1.2)	Corporate masterlease guarantee, as a secure a loan for execution of City Forum A project.
Archicom S.A.	Strzegomska Nowa Sp. z o.o.	PKO BP S.A.	1 729	28.04.2023	Surety granted, as a secure a bank guar antee in connection with the sale of the office building West Forum IA.
Archicom S.A.	Archicom Nierucho mości 5 Sp. z o.o.	PKO BP S.A.	6 009	9.09.2023	Surety granted, as a secure a bank guar antee in connection with the sale of the office building City Forum B.
Archicom S.A.	Archicom Sp. z o.o. RI Sp.k.	PKO BP S.A.	6 568	9.07.2023	Surety granted, as a secure a bank guar antee in connection with the sale of the office building City Forum B.
Archicom S.A.	Archicom Nierucho mości 14 Sp. z o.o.	Bank Millenium S.A.	4 491	90 days after 7 months of the lease period expiry (start lease pe riod: January 4, 2022, expires: November 3, 2022)	Surety granted, as a secure performance of obligation arising from lease agreement, in connection with payment of incentive fees and to secure payment on account of a contractual penalty in case of delay in delivery of the leased subject. Issued in EUR.
Total			51 932

Non-financial surety agreements issued by Echo Investment Group as at 30 June 2022 [PLN '000]

Issuer	Entity receiving surety	Beneficiary	Value	Validity	Description
Echo - Aurus Sp. z o.o.	Sagittarius - Projekt Echo 113 Sp. z o.o. Sp.k.	Warburg-HIH Invest Real Estate GmbH	152 000	31.10.2028	Surety for liabilities resulting from quality guarantee agreement and agreement on fit-out works.
Total			152 000
Total sureties			203 932

Changes in surety agreements issued by Echo Investment Group in the 1st half-year 2022 [PLN '000]

Change	Issuer	Entity receiving surety	Beneficiary	Value	Validity	Description
Expiry	Echo - SPV 7 Sp. z o.o. / Echo - Aurus Sp. z o.o.	Sagittarius-Projek Echo 113 Sp. z o.o. Sp.k.	Warburg - HiH Invest Real Estate GmbH	32 805	21.01.2022	Surety for liabilities resulting from sales contract.
Extension	Archicom S.A.	Archicom Nierucho mości 5 Sp. z o.o.	PKO BP S.A.	6 009	9.09.2023	Surety granted, as a secure a bank guarantee in connection with the sale of the office building City Forum B.
Extension	Archicom S.A.	Archicom Sp. z o.o. RI Sp.k.	PKO BP S.A.	6 568	9.07.2023	Surety granted, as a secure a bank guarantee in connection with the sale of the office building City Forum B.

Photo: Face2Face office building in Katowice

Guarantor	Entity receiving the guarantee	Beneficiary	Value	Validity	Description
Echo Investment S.A.	Midpoint 71 - Cornwall Investments Sp. z o.o. S.K.A.	SER Poland Sp. z o.o.	1 123	21.12.2033	"Unconditionally and irrevocably guaran tees of full, due and punctual performance of all payment obligations under the lease agreement. Guarantee issued in EUR."
Echo Investment S.A.	Grupa Echo Sp. z o.o.	IB 14 FIZAN	16 734	24.05.2024	"Security for the proper performance of the obligations arising from the contract for the sale of the West Link office building in Wrocław. Guarantee issued in EUR."
Echo Investment S.A.	Midpoint 71 - Cornwall Investments Sp. z o.o. S.K.A.	A 19 Sp. z o.o.	28 084	4.07.2038	"Guarantee for the obligations arising from the good neighborly agreement concluded on 4.07.2018 with Midpoint 71 project. Guarantee issued in EUR."
Echo Investment S.A.	Dellia Investments - Projekt Echo 115 Sp. z o.o. Sp.k.	LUX Europa III S.a.r.l.	51 487	3.03.2027	"Security for the proper performance of the liabilities arising from the sale contract of the Gatehouse Offices building being part of the Warsaw Brewery complex. Guarantee issued in EUR."
Echo Investment S.A.	Dellia Investments - Projekt Echo 115 Sp. z o.o. Sp.k.	APAK Grundstücks gesellschaft mbH & Co. KG	49 833	11.09.2022	"Security for the proper performance of obligations arising under the sale contract of the Villa Offices (building K) being part of the Warsaw Brewery complex, as well as unter the side letter. Guarantee issued EUR and PLN."
Santander Bank Polska S.A.	Echo Investment S.A.	Miasto Stołeczne Warszawa	25 000	30.10.2022	Guarantee securing obligation to perfor mance of the accompanying investment under the special housing act - building a primary school and transferring it to the City of Warsaw.
Santander Bank Polska S.A.	Echo Investment S.A.	Miasto Poznań reprezentowane przez Zarząd Dróg Miejskich w Poznaniu	3 384	31.07.2022	Guarantee of proper performance of the contract.
Echo Investment S.A.	Dellia Investments - Projekt Echo 115 Sp. z o.o. Sp.k.	Westinvest Ge sellschaft für Invest mentfonds mbH	3 606	5.11.2031	"Security for the proper performance of obligations arising under: (i) fit-out works agreement re. Malthouse Offices (building GH), being a part of the Warsaw Brewery complex, and (ii) rental guarantee related to the retail space in the Malthouse Offices (building GH), being a part of the Warsaw Brewery complex. Issued in EUR. Guarantee issued in EUR."
PKO BP S.A.	Echo Investment S.A.	APAK Grundstücks gesellschaft mbH & Co. KG	627	9.07.2022	"Proper performance of the terms of the lease agreement, which in particu lar includes the payment of rent, service charges, claims for contractual penalties, payment of a guarantee deposit, possible interest. Guarantee issued in EUR."
Towarzystwo Ubez pieczeń Euler Hermes S.A. (na zlecenie i z limitu Echo Invest ment S.A.)	Galeria Nova - Grupa Echo Sp. z o.o. S.K.A.	Apator Powogaz S.A.	21 500	31.12.2022	Guarantee of payment of the entire amount due the sale of a land property located in Poznań.
Echo Investment S.A.	Projekt Beethovena - Projekt Echo 122 Sp. z o.o. S.K.A.	Portfel2 PH5 Sp. z o.o.	52 295	21.11.2023	"Security for the proper performance of obligations arising under the sale agree ment of Moje Miejsce I office building. Guarantee issued in EUR."

Guarantor	Entity receiving the guarantee	Beneficiary	Value	Validity	Description
Echo Investment S.A.	Projekt Beethovena - Projekt Echo 122 Sp. z o.o. S.K.A.	Portfel2 PH5 sp. z o.o.	3 856	21.11.2026	"Security for the proper performance of obligations arising under fit-out agreement related to sale of Moje MIejsce I office building. Guarantee issued in EUR."
Echo Investment S.A.	Fianar Investments Sp. z o.o.	Kaufland Polska Mar kety Sp. z o.o. Sp.j.	2 500	2.11.2036	Conditional guarantee of the payment of the contractual penalty resulting from the lease agreement for premises at Kapelanka shopping centre in Cracow.
Santander Bank Polska S.A.	Elektrownia RE Sp. z o.o.	Miasto Łódź	796	18.10.2022	Payment guarantee related to the Agree ment concluded between Elektrownia RE Sp. z o.o. and the City of Łódź concerning the principles of implementing a road in vestment consisting in the construction of a 3KDD road designed on the section from ul. Tymienieckiego to Milionowej in Łódź.
Santander Bank Polska S.A.	Elektrownia RE Sp. z o.o.	Miasto Łódź	695	18.10.2022	Payment guarantee related to the Agree ment concluded between Elektrownia RE Sp. z o.o. and the City of Łódź concerning the principles of implementing a road in vestment consisting in the construction of a 3KDD road designed on the section from ul. Tymienieckiego to Milionowej in Łódź.
Echo Investment S.A.	Dellia Investments - Projekt Echo 115 Sp. z o.o. Sp.k.	Westinvest Ge sellschaft für Invest mentfonds mbH	8 425	30.11.2026	"Security for the proper performance of obligations arising under the sale agree ment of the building ""Villa Schiele"", being part of the Warsaw Brewery complex. Guarantee issued in EUR."
Echo Investment S.A.	Projekt Echo 130 Sp. z o.o.	Fujitsu Technology Solutions Sp. z o.o.	24 786	1.12.2023	"Security for the proper performance of obligations Projekt Echo 130 Sp.z o.o. as a landlord due to contractual penalties under the lease agreement of 31.01.2020. Guarantee issued in EUR."
Echo Investment S.A.	Projekt 17 - Grupa Echo Sp. z o.o. S.K.A.	Barcarrota Sp. z o.o.	33 120	31.12.2027	"Security for the proper performance of obligations arising under the sale agree ment of the building West 4 Business Hub Phase I. Guarantee issued in EUR."
Echo Investment S.A.	Projekt 17 - Grupa Echo Sp. z o.o. S.K.A.	Barcarrota Sp. z o.o.	12 091	20.01.2028	"Security for the proper performance of obligations arising under fit-out works agreement re. West 4 Business Hub Phase I. Guarantee issued in EUR."
Echo Investment S.A.	Potton Sp. z o.o.	Kaufland Polska Mar kety Sp. z o.o. Sp.j.	2 500	29.03.2036	Conditional guarantee of the payment of the contractual penalty resulting from the lease agreement for premises at Pasaż Opieńskiego shoping centre in Poznań.
Echo Investment S.A.	Projekt Beethovena - Projekt Echo 122 Sp. z o.o. S.K.A.	PKO BP S.A.	7 957	31.12.2026	"Securing the coverage of additional amounts resulting from the rental holidays of approved lease agreements to ensure the required DSCR. Guarantee issued in EUR."
PKO BP S.A.	Strzegomska Nowa Sp. z o.o.	GNT Ventures Wrocław Sp. z o.o.	1 729	28.02.2023	Security for the proper performance of obligations under the rental guarantee agreement related to the sale of the West Forum IA office building.
PKO BP S.A.	Archicom Nierucho mości 5 Sp. z o.o.	City One Park Sp. z o.o.	6 009	9.07.2023	Security for the proper performance of obligations under the contract for the sale of the City Forum B office building.
PKO BP S.A.	Archicom Sp. z o.o. RI - Sp.k.	City One Park Sp. z o.o.	3 284	9.07.2023	Security for the proper performance of ob ligations under the construction contract related to the contract for the sale of the City Forum B office building.

Guarantor	Entity receiving the guarantee	Beneficiary	Value	Validity	Description
PKO BP S.A.	Archicom S.A.	City One Park Sp. z o.o.	1 190	9.07.2023	Security for the proper performance of obligations under the lease agreement related to the contract for the sale of the City Forum B office building.
Archicom S.A.	Javin Investments Sp. z o.o. Sp.k. w likwidacji; Space Investment Strzegomska 3 Sp. z o.o.	GNT Ventures Wrocław Sp. z o.o.	12 217	25.02.2024	Security for the proper performance of obligations under the contract for the sale of the West Forum IB office building.
Archicom S.A.	Archicom Nierucho mości 5 Sp. z o.o.	City One Park Sp. z o.o.	17 496	27.11.2027	Bank guarantee in connection with the lease guarantee of the office building City Forum B.
Archicom S.A.	Archicom Nierucho mości 5 Sp. z o.o.	City One Park Sp. z o.o.	15 837	27.05.2023	Bank guarantee in connection with the sale of the office building City Forum B.
Total			408 159

Guarantor	Entity receiving the guarantee	Beneficiary	Value	Validity	Description
Echo Investment S.A.	Projekt Echo 130 Sp. z o.o.	FARKAS Grundstücks gesellschaft mbH & Co. KG	30 182	31.12.2023	Security for the proper performance aris ing from the sale contract of the Fuzja CDJ buildings being part of the Fuzja complex. Guarantee issued in EUR.
Echo Investment S.A.	Projekt Echo 130 Sp. z o.o.	FARKAS Grundstücks gesellschaft mbH & Co. KG	103 221	30.06.2033	Security for the proper performance of obligations arising under quality guaran tee agreement related to sale of Fuzja CD office buildings.
Echo Investment S.A.	Projekt Echo 130 Sp. z o.o.	FARKAS Grundstücks gesellschaft mbH & Co. KG	9 717	30.06.2033	Security for the proper performance of obligations arising under quality guarantee agreement related to sale of Fuzja J office building.
Echo Investment S.A.	Projekt Echo 130 Sp. z o.o.	FARKAS Grundstücks gesellschaft mbH & Co. KG	33 225	30.06.2032	Security for the proper performance of obligations arising under fit-out agree ment related to sale of Fuzja CDJ office buildings. Guarantee issued in EUR.
Echo Investment S.A.	Midpoint 71 - Cornwall Investments Sp. z o.o. S.K.A.	SER Poland Sp. z o.o.	179 242	30.09.2032	Corporate guarantee securing the quality guarantee related to the sale of Midpoint 71 in Wroclaw.
Echo Investment S.A.	Midpoint 71 - Cornwall Investments Sp. z o.o. S.K.A.	SER Poland Sp. z o.o.	97 228	31.03.2030	Corporate guarantee securing the sale agreement of Midpoint 71 in Wroclaw. Guarantee issued in EUR.
Santander Bank Polska S.A. (w ramach limitu kredytowego Echo Investment S.A.)	Galeria Libero - Projekt Echo 120 Sp. z o.o. Sp.k.	Miasto Katowice	758	10.05.2023	Security under the warranty and quality guarantee for the obligations arising from the contract concluded on June 16, 2016 on the implementation of a road invest ment.
Echo Investment S.A.	Echo - Opolska Busi ness Park Sp. z o.o. Sp.k.	EPP Office O3 Busi ness Campus Sp. z o.o.	42 708	21.12.2026	Corporate guarantee regarding mone tary obligations under the Construction Guarantee for a period consistent with the Construction Guarantee. Guarantee issued in EUR.
Echo Investment S.A.	ZAM - Projekt Echo 127 Sp. z o.o. Sp.k.	Tryton Business Park Sp. z o.o.	44 551	21.12.2026	Corporate guarantee regarding mone tary obligations under the Construction Guarantee for a period consistent with the Construction Guarantee. Guarantee issued in EUR.
Echo Investment S.A.	Symetris - Projekt Echo 131 Sp. z o.o. Sp.k.	EPP Office – Syme tris Business Park Sp. z o.o.	19 057	21.12.2026	Corporate guarantee regarding mone tary obligations under the Construction Guarantee for a period consistent with the Construction Guarantee. Guarantee issued in EUR.
Echo Investment S.A.	Projekt Echo 135 Sp. z o.o. Sp.k.	A4 Business Park Sp. z o.o.	25 743	26.04.2027	Construction guarantee related to the sale of the A4 Business Park III office building in Katowice. The guarantee is secured by a corporate guarantee issued by Echo Investment S.A. Guarantee issued in EUR.
Echo Investment S.A.	Echo - Opolska Busi ness Park Sp. z o.o. Sp.k.	EPP Office O3 Busi ness Campus Sp. z o.o.	40 721	21.12.2027	Construction guarantee related to the sale of the O3 Business Campus II office build ing in Kraków. The guarantee is secured by a corporate guarantee issued by Echo Investment S.A. Guarantee issued in EUR.
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 Investment S.A.	Symetris - Projekt Echo 131 Sp. z o.o. Sp.k.	EPP Office – Syme tris Business Park Sp. z o.o.	17 870	31.08.2023	Construction guarantee related to the sale of the office building Symetris II in Łódź. Guarantee issued in EUR.

Guarantor	Entity receiving the guarantee	Beneficiary	Value	Validity	Description
Echo Investment S.A.	Dellia Investments - Projekt Echo 115 Sp. z o.o. Sp.k.	LUX Europa III S.a.r.l.	102 693	31.12.2024	Security for the proper performance arising from the sale contract of the Gate house Offices building being part of the Warsaw Brewery complex. Guarantee issued in EUR.
Echo Investment S.A.	Dellia Investments - Projekt Echo 115 Sp. z o.o. Sp.k.	LUX Europa III S.a.r.l.	163 550	30.06.2030	Security for the proper performance liabilities arising from the quality guaran tee agreement related to sale agreement of the Gatehouse Office building in the Warsaw Brewery complex.
Echo Investment S.A.	Face2Face - Stranraer Sp. z o.o. S.K.A.	Bank Pekao S.A.	70 000	29.07.2022	Guarantee securing cost overrun, covering interests on minimal level and securing own contribution on Face2Face office project in Katowice.
Echo Investment S.A.	Echo - Opolska Busi ness Park Sp. z o.o. Sp.k.	EPP Office O3 Busi ness Campus Sp. z o.o.	37 757	9.08.2028	Construction guarantee related to the sale of the O3 Business Campus III office build ing in Kraków. The guarantee is secured by a corporate guarantee issued by Echo Investment S.A. Guarantee issued in EUR.
Echo Investment S.A.	Projekt 12 - Grupa Echo Sp. z o.o. S.K.A.	Tesco (Polska) Sp. z o.o.	0	30.06.2025	Corporate guarantee securing perfor mance of obligations regarding priority to lease space in the new shopping center, resulting from the preliminary sales contract of real estate concluded on 30.07.2019. Due to business and legal arrangements, the warranty has no upper limit potential liability.
Echo Investment S.A.	Dellia Investments - Projekt Echo 115 Sp. z o.o. Sp.k.	APAK Grundstücks gesellschaft mbH & Co. KG	96 611	11.03.2032	Security for the proper performance of obligations arising under quality guarantee agreement regarding to the Villa Offices (building K), being part of the Warsaw Brewery complex.
Echo SPV 7 Sp. z o.o.	R4R Warszawa Wilanowska Sp. z o.o.	Bank Polska Kasa Opieki 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.
Echo Investment S.A.	Dellia Investments - Projekt Echo 115 Sp. z o.o. Sp.k.	Westinvest Ge sellschaft für Invest mentfonds mbH	182 005	5.08.2026	Security for the proper performance of ob ligations arising under the sale agreement of the Malthouse Offices (building GH) be ing part of the Warsaw Brewery complex. Guarantee issued in EUR.
Echo Investment S.A.	Dellia Investments - Projekt Echo 115 Sp. z o.o. Sp.k.	Westinvest Ge sellschaft für Invest mentfonds mbH	200 486	5.08.2031	Security for the proper performance of obligations arising under quality guarantee agreement regarding to the Malthouse Offices (building GH), being part of the Warsaw Brewery complex.
Echo Investment S.A.	Projekt Beethovena - Projekt Echo 122 Sp. z o.o. S.K.A.	Portfel2 PH5 sp. z o.o.	124 643	28.05.2030	Security for the proper performance of obligations arising under quality guarantee agreement related to sale of Moje MIejsce I office building.
Echo SPV 7 Sp. z o.o.	M2 Biuro Sp. z o.o.	Santander Bank Polska S.A.	44 097	30.12.2022	Security of the borrowers liabilities arising from the cost overrun not included in the budget specified in credit agreement.
Echo Investment S.A.	Dellia Investments - Projekt Echo 115 Sp. z o.o. Sp.k.	Westinvest Ge sellschaft für Invest mentfonds mbH	9 159	30.11.2031	Security for the proper performance of obligations arising under quality guaran tee agreement regarding building Villa Schiele, being part of the Warsaw Brewery complex.

Guarantor	Entity receiving the guarantee	Beneficiary	Value	Validity	Description
Echo Investment S.A.	Projekt 17 - Grupa Echo Sp. z o.o. S.K.A.	Barcarrota Sp. z o.o.	82 498	20.01.2032	Security for the proper performance of obligations arising under quality guaran tee agreement regarding building West 4 Business Hub Phase I.
Sopockie Towarzystwo Ubezpieczeń ERGO Hestia S.A.	Projekt Beethovena - Projekt Echo 122 Sp. z o.o. S.K.A.	Portfel2 PH5 Sp. z o.o.	6 232	6.10.2026	Securing the proper performance of obli gations arising from the Quality Guarantee Agreement, related to the sale of real es tate located in Warsaw, at J. P. Dziekońsk iego Street No. 1 - Moje Miejsce stage 1.
Generali Towarzystwo Ubezpieczeń S.A.	Echo Investment S.A.	Miasto Stołeczne Warszawa	2 925	31.12.2025	Guarantee of proper performance of the contract in connection with the contract No. 4 / WIR / 2022 of 6.04.2022, con cerning the construction of the municipal road 2 KDD, concluded between the Obliged and the Beneficiary.
Total			1 825 346
Total guarantees			2 233 505

Changes in guarantee agreements issued by Echo Investment Group in the 1st half-year 2022 [PLN '000]

Change	Guarantor	Entity receiving the guarantee	Beneficiary	Value	Validity	Description
Issue	Echo Investment S.A.	Projekt Echo 130 Sp. z o.o.	FARKAS Grundstücks gesellschaft mbH & Co. KG	30 182	31.12.2023	Security for the proper performance arising from the sale contract of the Fuzja CDJ buildings being part of the Fuzja complex. Guarantee issued in EUR.
Issue	Echo Investment S.A.	Projekt Echo 130 Sp. z o.o.	FARKAS Grundstücks gesellschaft mbH & Co. KG	103 221	30.06.2033	Security for the proper performance of obligations arising under quality guar antee agreement related to sale of Fuzja CD office buildings.
Issue	Echo Investment S.A.	Projekt Echo 130 Sp. z o.o.	FARKAS Grundstücks gesellschaft mbH & Co. KG	9 717	30.06.2033	Security for the proper performance of obligations arising under quality guar antee agreement related to sale of Fuzja J office building.
Issue	Echo Investment S.A.	Projekt Echo 130 Sp. z o.o.	FARKAS Grundstücks gesellschaft mbH & Co. KG	33 225	30.06.2032	Security for the proper performance of obligations arising under fit-out agree ment related to sale of Fuzja CDJ office buildings. Guarantee issued in EUR.
Issue	Echo Investment S.A.	Midpoint 71 - Cornwall Investments Sp. z o.o. S.K.A.	SER Poland Sp. z o.o.	179 242	30.09.2032	Corporate guarantee securing the quality guarantee related to the sale of Midpoint 71 in Wroclaw.
Issue	Echo Investment S.A.	Midpoint 71 - Cornwall Investments Sp. z o.o. S.K.A.	SER Poland Sp. z o.o.	1 123	21.12.2033	Unconditionally and irrevocably guaran tees of full, due and punctual perfor mance of all payment obligations under the lease agreement. Guarantee issued in EUR.
Issue	Echo Investment S.A.	Midpoint 71 - Cornwall Investments Sp. z o.o. S.K.A.	SER Poland Sp. z o.o.	97 228	31.03.2030	Corporate guarantee securing the sale agreement of Midpoint 71 in Wroclaw. Guarantee issued in EUR.
Expiry	Echo Investment S.A.	Metropolis – Projekt Echo 121 Sp. z o.o. S.K.A.	Giant Sp. z o.o.	17 000	30.05.2022	Security for the payment of the guar antee amount and contractual penalty under the preliminary sales contract of 17.03.2022.
Issue	Santander Bank Polska S.A. (w ramach limitu kredytowego Echo Investment S.A.)	Galeria Libero - Projekt Echo 120 Sp. z o.o. Sp.k.	Miasto Katowice	758	10.05.2023	Security under the warranty and quality guarantee for the obligations arising from the contract concluded on June 16, 2016 on the implementation of a road investment.
Expiry	Echo Investment S.A.	Rosehill Investments Sp. z o.o.	IB 6 FIZAN w lik widacji	107 291	31.03.2022	Security for the proper performance of the obligations resulting from the pro gram contract concluded on 31.08.2017. Guarantee issued in EUR.
Expiry	Echo Investment S.A.	Projekt Beethovena - Projekt Echo 122 Sp. z o.o. S.K.A.	PKO BP S.A.	36 000	30.06.2022	Security for exceeding the costs of per forming the Moje Miejsce office project in Warsaw.
Expiry	PKO BP S.A. Biuro Finansowania Handlu	Dellia Investments - Projekt Echo 115 Sp. z o.o. Sp.k.	LUX Europa III S.a r.l.	6 450	20.05.2022	Security for the liabilities arising from the contract of quality guarantee con cluded on 27.03.2019.
Expiry	Echo SPV 7 Sp. z o.o.	R4R Poznań Szcze panowskiego Sp. z o.o.	Santander Bank Polska S.A.	24 500	8.03.2022	Security of the borrowers liabilities arising from the cost overrun not in cluded in the budget specified in credit agreement.
Expiry	Echo Investment S.A.	Midpoint 71 - Cornwall Investments Sp. z o.o. S.K.A.	PKO BP S.A.	39 000	30.06.2022	Guarantee securing cost overrun and maintanance of unleased area on Mid point 71 office project in Wroclaw.
Expiry	Echo Investment S.A.	Midpoint 71 - Cornwall Investments Sp. z o.o. S.K.A.	PKO BP S.A.	20 337	30.06.2022	Guarantee securing debt service cover ratio and covering rent-free periods in lease agreements on Midpoint 71 office project in Wroclaw. Guarantee issued in EUR.

Changes in guarantee agreements issued by Echo Investment Group in the 1st half-year 2022 [PLN '000]

Expiry Santander Bank Pols Galeria Libero - Urząd Miasta 758 20.01.2022 ka S.A. Projekt Echo 120 Sp. Katowice z o.o. Sp.k. Expiry Echo Investment S.A. Projekt Echo 130 Sp. Bank Pekao S.A. 28 609 30.06.2022 z o.o. Expiry PKO BP S.A. Biuro Echo Investment S.A. Gmina Miejska 282 10.05.2022 Finansowania Handru Kraków Issue Echo Investment S.A. Projekt Echo 130 Sp. Fujitsu Technolo 24 786 1.12.2023 z o.o. gy Solutions Sp. z o.o.	Security under the warranty and the quality guarantee for the obligations resulting from the agreement on per forming the road project concluded on 16.06.2016. Guarantee securing cost overrun of the construction of Fuzja CDJ complex
	office project.
	Guarantee of proper performance of the contract.
	Security for the proper performance of obligations Projekt Echo 130 Sp.z o.o. as a landlord due to contractual penalties under the lease agreement of 31.01.2020. Guarantee issued in EUR.
Issue Echo Investment S.A. Projekt 17 - Grupa Barcarrota Sp. 33 120 31.12.2027 Echo Sp. z o.o. S.K.A. z o.o.	Security for the proper performance of obligations arising under the sale agree ment of the building West 4 Business Hub Phase I. Guarantee issued in EUR.
Issue Echo Investment S.A. Projekt 17 - Grupa Barcarrota Sp. 12 091 20.01.2028 Echo Sp. z o.o. S.K.A. z o.o.	Security for the proper performance of obligations arising under fit-out works agreement re. West 4 Business Hub Phase I. Guarantee issued in EUR.
Issue Echo Investment S.A. Projekt 17 - Grupa Barcarrota Sp. 82 498 20.01.2032 Echo Sp. z o.o. S.K.A. z o.o.	Security for the proper performance of obligations arising under quality guaran tee agreement regarding building West 4 Business Hub Phase I.
Issue Generali Towarzystwo Echo Investment S.A. Miasto Stołeczne 2 925 31.12.2025 Ubezpieczeń S.A. Warszawa	Guarantee of proper performance of the contract in connection with the contract No. 4 / WIR / 2022 of 6.04.2022, concerning the construction of the mu nicipal road 2 KDD, concluded between the Obliged and the Beneficiary.
Issue Echo Investment S.A. Projekt Beethovena - PKO BP S.A. 7 957 31.12.2026 Projekt Echo 122 Sp. z o.o. S.K.A.	Securing the coverage of additional amounts resulting from the rental holi days of approved lease agreements to ensure the required DSCR. Guarantee issued in EUR.
Extension Archicom Nierucho City One Park Sp. PKO BP S.A. 6 009 3.06.2022 mości 5 Sp. z o.o. z o.o.	Security for the proper performance of obligations under the contract for the sale of the City Forum B office building.
Extension Archicom Sp. z o.o.- City One Park Sp. PKO BP S.A. 3 284 21.06.2022 RI - Sp.k. z o.o.	Security for the proper performance of obligations under the construction con tract related to the contract for the sale of the City Forum B office building.
Extension Archicom S.A. City One Park Sp. PKO BP S.A. 1 190 26.04.2022 z o.o.	Security for the proper performance of obligations under the lease agreement related to the contract for the sale of the City Forum B office building.

18 Remuneration of the Management Board and Supervisory Board

Remuneration of Members of the Management Board [PLN]

	H1 2022							H1 2021
	From Echo Investment S.A.					From Echo Investment S.A.
	remuneration Basic	Bonus	From subsidiaries, joint-ventures and associates	Other benefits	Total	remuneration Basic	Bonus	From subsidiaries, joint-ventures and associates	Other benefits	Total
Nicklas Lindberg	696 012	793 349	1 127 700	544 203	3 161 264	683 509	1 145 223	1 161 890	461 211	3 451 833
Maciej Drozd	266 175	422 829	632 222	19 068	1 340 294	262 733	433 020	649 767	16 668	1 362 187
Artur Langner	120 000	208 373	631 747	2 580	962 700	108 667	192 000	570 000	2 253	872 919
Marcin Materny (resigned on 22.04.2021	_	_	_	_	_	120 000	189 000	522 516	4 886	836 402
Rafał Mazurczak	153 000	260 100	595 855	5 580	1 014 535	131 000	189 000	541 516	4 886	866 402
Waldemar Olbryk (resigned on 22.04.2021	_	_	_	_	_	218 286	661 000	-	15 497	894 783
Małgorzata Turek	153 000	252 450	722 550	2 580	1 130 580	131 000	192 000	576 000	2 253	901 253
Total	1 388 187	1 937 101	3 710 074	574 011		1 655 194	3 001 242	4 021 690	507 654
Total in H1					7 609 373					9 185 780

The long-term incentive program of the CEO and CFO

On 21 July 2021, Echo Investment S.A. entered into contracts with Nicklas Lindberg, the CEO of the Company and Maciej Drozd, the CFO specifying the terms of additional incentive compensation in the form of a long-term bonus. Such additional compensation conforms with the Remuneration Policy.

Nicklas Lindberg and Maciej Drozd obtained the right to a long-term bonus. The amount of it will depend on the growth in the Company's goodwill measured by the aggregate amount of dividend and the growth in the share price on the Warsaw Stock Exchange in annual evaluation periods.

The contracts define the rules of determining the amount of the long-term bonus based on the growth in the average six-month price of the Company's shares calculated for one-year periods, increased by the dividend disbursed by the Company above the initial value of a Company share determined at PLN 4.34 per share. The right to the longterm bonus will be acquired in annual periods over the term of the program, i.e., from 1 January 2020 to 31 December 2024, unless a material change in the shareholding structure of the Company occurs earlier. The amount of the longterm bonus depends on the growth in the value of the Company's shares, provided that the amount of the long-term bonus (the "base value") does not exceed EUR 10 million for Nicklas Lindberg and EUR 5 million for Maciej Drozd if at the end of the five-year period the growth in the average six-month price of the Company's shares increased by the dividend disbursed during the term of the program exceeds the amount of the initial quotation of the Company's shares by PLN 5.80, i.e., if the aggregate amount of the disbursed dividend increased by the average six-month price of the Company's shares reaches the amount of PLN 10.14 per share. In case of a material change in the shareholding structure of the Company, in lieu of the average six-month price of the Company's shares, the basis for the calculation of the long-term bonus will be the price received for the Company's shares calculated on the basis of the price indicated in the transaction resulting in such material change in the shareholding structure.

The duration of the program may be extended by a two years (to a seven-year total), i.e., until 31 December 2026; in such case the maximum amount of the long-term bonus will be 125 percent of the base value if the average sixmonth price of the Company's shares increased by the dividend disbursed during the seven-year evaluation period exceeds the base value by PLN 7.25, i.e., the aggregate amount of the disbursed dividend increased by the average six-month price of the Company's shares reaches the value of PLN 11.59 per share.

The long-term bonus is to be disbursed in the form of the Company's shares (whether existing or of a new issue) annually, at the end of the evaluation period, and should that be impracticable, it will be disbursed as a lump sump in cash at the end of the five-year term (or the seven-year term, should the former be extended) of the program. In case of a material change in the shareholding structure of the Company, the long-term bonus shall be disbursed as a lump sum upon occurrence of such event.

The Contracts also define the detailed terms of the disbursement of the longterm bonus, as well as addressing a situation where a Management Board memberforfeits the right to receive the long-term bonus or a part thereof, in particular inthe event of causing damage to the Company or of taking actions that breach the elevant provisions of the law or the Company's in-house regulations.

Extension of the Long-Term Bonus program

On 15 June 2022, Echo Investment S.A. entered into contracts with Rafał Mazurczak and Małgorzata Turek, members of the company's management board and Waldemar Olbryk, president of the management board of Archicom S.A., the subsidiary of the Company specifying the terms of additional incentive compensation in the form of a longterm bonus. Such additional compensation conforms with the Remuneration Policy.

Under the contracts, Rafał Mazurczak, Małgorzata Turek and Waldemar Olbryk obtained the right to a long-term bonus. The amount of it will depend on the growth in the Company's goodwill measured by the aggregate amount of dividend and the growth in the share price on the Warsaw Stock Exchange in annual evaluation periods.

The contracts define the rules of determining the amount of the long-term bonus based on the growth in the average six-month price of the Company's shares calculated for one-year periods, increased by the dividend disbursed by the Company above the initial value of a Company share determined at PLN 4.07 per share. The right to the longterm bonus will be acquired in annual periods over the term of the program, i.e., from 31 December 2022 to 31 December 2025, unless a material change in the shareholding structure of the Company occurs earlier. The maximum amount of the long-term bonus (the "base value") does not exceed EUR 1 million for each of the participants if at the end of the four-year period the growth in the average six-month price of the Company's shares increased by the dividend disbursed during the term of the program exceeds the amount of the initial quotation of the Company's shares by PLN 5.60, i.e., if the aggregate amount of the disbursed dividend increased by the average six-month price of the Company's shares reaches the amount of PLN 9.67 per share. In case of a material change in the shareholding structure of the Company, in lieu of the average six-month price of the Company's shares, the basis for the calculation of the long-term bonus will be the price received for the Company's shares calculated on the basis of the price indicated in the transaction resulting in such material change in the shareholding structure.

The duration of the program may be extended by a further one years (to a five-year total), i.e., until 31 December 2026; in such case the maximum amount of the long-term bonus will be 112.5 percent of the base value if the average six-month price of the Company's shares increased by the dividend disbursed during the five-year evaluation period exceeds the base value by PLN 6.3, i.e., the aggregate amount of the disbursed dividend increased by the average six-month price of the Company's shares reaches the value of PLN 10.37 per share.

The other rules regarding the long-term bonus program for Małgorzata Turek, Rafał Mazurczak and Waldemar Olbryk are the same as in the case of Nicklas Lindberg and Maciej Drozd.

As at 30 June 2022, the Company recognized a provision in the amount of PLN 6,014,930 in its half-year financial

statements for a management bonus based on the share price. The change in the amount of the provision in H1 2022 increased the financial result of the Company by PLN 3,043,847 gross.

Agreements concluded between the company and members of the management

In 1H 2022 and as at the date of publication of the report, there were no agreements concluded between the Company and executives, providing for compensation in case

of their resignation or dismissal from their position without an important reason, or if their dismissal occurs due to a merger of Echo Investment S.A. or due to an acquisition.

Remuneration of Members of the Supervisory Board [PLN]

		H1 2022	H1 2021
	From Echo Investment S.A.	From subsidiaries, joint-ventures and associates	Other benefits	From Echo Investment S.A.	From subsidiaries, joint-ventures and associates	Other benefits
Noah M. Steinberg	120 000	_	_	120 000	-	-
Tibor Veres	42 000	_	-	42 000	-	-
Margaret Dezse	90 000	_	-	90 000	-	-
Maciej Dyjas	30 000	_	_	30 000	-	-
Sławomir Jędrzejczyk	90 000	_	_	90 000	-	-
Péter Kocsis	30 000	_	_	30 000	-	-
Bence Sass	30 000	_	_	30 000	-	-
Nebil Senman	30 000	_	_	30 000	-	-
Total	462 000	_	_	462 000	-	-

19 Other disclosures required by law

Seasonal or cyclical nature of operations

The Capital Group's activity covers several segments of the real estate market. Accounting revenues from sale of housing developments depends on the commissioned residential buildings and revenue on these operations is generated in every quarter but it varies in terms of stability. Historically majority of apartments was handed over by the Group in the second half of the year, in particular in the fourth quarter. Revenue and results from general investment contractor services, sales of commercial investments and trade in property may be irregular. The Management Board cannot exclude other one-off events which may influence results generated in a given period.

Agreements between shareholders

The company does not have any information on contracts concluded in H12022 between shareholders, that might be significant for its operations.

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

In H1 2022, no material transactions were concluded between Echo Investment S.A and its subsidiaries, and related parties on terms other than market terms.

Influence of 2022 result achieved on the published financial forecasts

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

Changes in the basic principles of management In H1 2022, there were no material changes in the basic management principles of the Company and the Group.

Contracts which may result in changes in the ownership structure of shares

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

20 The impact of the war in Ukraine on the operations of the Group

The impact of the war in Ukraine on the operations and results of Echo Investment 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. The remaining risks do not differ from the standard risks for development and construction activities described by the Group in the Management Board's Report for 2021 (item 13, page 48).

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.

21 The impact of the macroeconomic situation on the operations of the Company and its Group description of risks

The Echo Investment Group monitors and manages the risks to which it is exposed on an ongoing basis. The analysis of the risks and description of how they are managed are described annually in the "Management Report of Echo Investment S.A. and its Group" in the section "How we manage risk".

To the best knowledge of the Group's Management Board, the analysis performed and presented in the Management Report for 2021 (released on 30 March 2022) remains valid. In view of the dynamic macroeconomic and political situation, the Group's Management pays special attention to the following risks.

• Risk of not achieving assumed level of residential sales
• Limiting access to financing for individual clients,
• High housing prices,
• Strong competition on local markets,
• The offer of apartments not matched to demand.

Risk Method of risk management and competitive advantages of Echo Investment

• Business diversification activities in key segments of the real estate market. The cyclical nature of these markets usually does not run in parallel, and the Group is not dependent on one type of activity. In the current situation, in particular, it is important to emphasize the Group's presence in both segments of apartments for sale and for rent which situation differs dramatically,
• Constant, thorough analysis of local residential markets from the stage before the purchase of a given plot until the end of the sale process,
• Constant analysis of the latest trends in the housing market based on industry reports and own analyses of customer preferences,
• Ability to flexibly respond to changing customer preferences even during construction (own design department),
• Conducting sales of apartments based on own sales teams,
• Project implementation in stages,
• Many years of experience from several local residential markets.
• Realization of residential projects in the largest cities, where the negative effects of limited access to loans are lower than in developers from smaller cities.

Risk Method of risk management and competitive advantages of Echo Investment

Risk of changes in estimates regarding development projects • The scale and long time horizon of development projects and the related volatility of material prices and workmanship - currently, in particular due to the disturbance in the world commodity markets after Russia's invasion of Ukraine, • The cyclical nature of the real estate market and macroeco nomic conditions affecting both the revenue and cost side of budget assumptions, • Limited project repeatability.	• Internal teams of specialists for all key stages of the development process, enabling the achievement of an internal synergy effect, • Own department responsible for estimating development costs and monitoring the situation on the construction market on an ongoing basis, • Regular process of reviewing project budgets including risk analysis, • Designing based on functioning precise implementation standards for apartments and offices, allowing maximization of economies of scale and limiting the risks associated with low repeatability of implemented projects, • Mass orders, combined for several investments to ensure access to materials and equipment used massively on multiple investments, • Concluding flat-rate contracts with a fixed price guarantee.
The risk of changes in interest rates	• Use of hedging instruments (fixed rates, for some loans – IRS) for selected liabilities.
Currency risk	• Natural hedging – contracting loans to finance projects in EUR, which is also the main currency for rental and sale of retail real estate in Poland, financing of housing and construction activities in Polish zlotys, which are the main currency of concluded construction contracts and sale of apartments, • Possibility a EUR-denominated bond issue program in order to better adjust the currency structure of liabilities to the currency structure, • Selective use of derivatives (forward, currency options).
The risk of adverse changes in the real estate market • Cyclical nature of the real estate market, • Risk of withholding external financing.	• Early leasing of the commercial projects and its fast sale after completion, • A financial potential that makes it possible to keep completed retail properties on your own balance sheet if they cannot be sold, • Sales of around 80 percent of flats in a given project at the construction stage, which provides information about the demand on the market early and allows us to respond appropriately to less advanced projects (accelerate, delay, change the size and quality of apartments), • Constant maintenance of a high level of cash and available credit limits, • Implementation of residential projects from payments made by clients, without external financing, • Adjusting the pace and schedule of project implementation to market conditions, • Projects are carried out in stages.
The risk of adverse changes in business climate indicators • Poorer economic growth, • Increase of unemployment, • Decrease of consumption, • Increase of inflation	• Designing projects tailored to financial capabilities and the demand on local markets, • Flexible response to changes in demand by e.g. changing the size or quality of apartments under construction, delay or slowdown of the construction pace, • Constant analysis of the behaviour and needs of consumers and clients.
The risk of introduction of new legal regulations or changes to current regulations • Risk of not complying with new regulations in a timely manner, • Change in interpretation of current regulations, • Increased expenditure related to legal compliance.	• Constant monitoring of legislative work regarding the real estate: construction and related industries affecting the Group's operations, • Continuous analysis of the potential impact of new solutions on the company's operations at the level of the Management Board, • Participation in a social dialogue on ongoing legislative work through advisory, business and industry organizations, • Participation in professional trainings, • Support of external law firms when specialized knowledge is needed.

The Group's Management Board monitors all risk factors and their impact on the Group's activities on an ongoing basis. Currently, the Management Board does not see any risks that could affect the ability to perform contractual obligations, significantly deteriorate the financial stability or jeopardize the continued activities of the Group' s companies.

The risk factors described have been presented to the best knowledge of the Group's Management Board, based on information available at the time of preparing the description. The sequence of individual risks, has not been presented in order of their likelihood of occurrence or importance of their impact on business.

CHAPTER 2 Condensed interim consolidated financial statements of Echo Investment Group

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

	Note	As at 30.06.2022 (unaudited)	As at 31.12.2021
Assets
Non-current assets
Intangible assets		70 003	70 529
Property, plant and equipment	3	63 473	64 261
Investment property	4	838 604	811 091
Investment property under construction	5	733 554	745 370
Investment in associates and joint ventures	19	424 208	336 737
Long-term financial assets	7	307 754	366 360
Derivative financial instruments		33 732	-
Other assets		1 731	1 854
Deferred tax asset		82 704	74 015
		2 555 763	2 470 217
Current assets
Inventory	8	1 634 098	1 650 310
Current tax assets		18 591	13 104
Other taxes receivable	9	83 314	64 908
Trade and other receivables	9	321 942	120 163
Short-term financial assets	7	15 595	41 920
Derivative financial instruments		-	18 922
Other financial assets *	10	184 096	85 205
Cash and cash equivalents	10	1 060 745	588 680
		3 318 381	2 583 212
Assets held for sale	6	834 654	1 381 451
		4 153 035	3 964 663
Total assets		6 708 798	6 434 880

* mainly deposits from residential clients on escrow account

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

Equity and liabilities
Equity
Equity attributable to equity holders of the parent		1 650 767	1 679 610
Share capital		20 635	20 635
Supplementary capital		1 081 574	1 158 524
Retained earnings		547 553	499 517
Foreign currency translation reserve		1 005	934
Non-controlling interest		195 970	183 927
		1 846 737	1 863 537
Long-term liabilities
Credits, loans, bonds	12	1 641 071	1 589 047
Acquisition of shares		51 264	50 895
Long-term provisions	11	94 915	51 719
Deferred tax liabilities		158 258	172 917
Leasing	21	129 164	117 127
Other liabilities	13	38 594	97 139
Liabilities due to customers		-	20 447
		2 113 266	2 099 291
Short-term liabilities
Credits, loans, bonds	12	676 045	652 376
Credits, loans, bonds - non-current assets classified as held for sale	12	432 146	610 230
Derivative financial instruments		669	-
Income tax payable		33 358	6 319
Other taxes liabilities	13	162 838	15 260
Trade payable	13	168 373	186 793
Dividend payable	13	92 014	-
Leasing	21	101 651	105 355
Short-term provisions	11	116 837	77 511
Other liabilities	13	287 944	198 277
Liabilities due to customers	14	623 216	551 868
		2 695 091	2 403 989
Liabilities directly associated with non-current assets classified as held for sale	6	53 704	68 063
		2 748 795	2 472 052
Total equity and liabilities		6 708 798	6 434 880
Equity attributable to equity holders of the parent entity [PLN '000]		1 650 767	1 679 610
Number of shares (in thous. pieces)		412 691	412 691
Book value per share (in PLN)		4,00	4,07

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

	Note	1.01.2022 - 30.06.2022 (unaudited)	1.01.2021 - 30.06.2021 (unaudited)	1.04.2022 - 30.06.2022 (not reviewed)	1.04.2021 - 30.06.2021 (not reviewed)
Revenues	14,18	598 140	420 896	314 504	265 526
Cost of sales	18	(386 907)	(313 976)	(200 406)	(225 056)
Gross profit		211 233	106 920	114 098	40 470
Profit on investment property	15	51 223	2 356	(9 095)	(40 252)
Administrative costs associated with project implementation		(34 380)	(18 400)	(19 357)	(11 051)
Selling expenses		(22 558)	(20 082)	(11 531)	(13 327)
General and administrative expenses		(42 194)	(54 587)	(16 603)	(34 537)
Other operating income, including:		11 819	55 047	4 921	50 715
Profit on occasional purchase		-	48 581	-	48 581
Other operating expenses		(12 489)	(10 264)	(7 806)	(3 980)
Operating profit		162 654	60 990	54 627	(11 962)
Financial income	16	38 688	12 791	26 102	10 010
Financial cost	17	(85 520)	(57 366)	(45 980)	(27 645)
Profit (loss) on FX derivatives		(1 890)	5 561	(1 561)	8 136
Foreign exchange gains (losses)		(22 870)	33 597	(10 173)	46 774
Share of profit (loss) of associates and joint ventures	19	12 930	1 117	8 048	(5 882)
Profit before tax		103 992	56 689	31 063	19 430
Income tax		(30 071)	(9 739)	(18 449)	3 000
current tax		(53 418)	(31 466)	(39 514)	(7 566)
deferred tax		23 347	21 728	21 065	10 567
Net profit (loss), including:		73 921	46 950	12 614	22 430
Equity holders of the parent		61 878	47 262	10 436	22 741
Non-controlling interest		12 043	(312)	2 178	(311)
Equity holders of the parent		61 878	47 262	10 436	22 741
Weighted average number of ordinary shares (in '000) without shares held		412 691	412 691	412 691	412 691
Profit (loss) per one ordinary share (in PLN)		0,15	0,11	0,03	0,06
Diluted profit (loss) per one ordinary share (PLN)		0,15	0,11	0,03	0,06

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

	1.01.2022 - 30.06.2022 (unaudited)	1.01.2021 - 30.06.2021 (unaudited)	1.04.2022 - 30.06.2022 (not reviewed)	1.04.2021 - 30.06.2021 (not reviewed)
Profit for the year	73 921	46 950	12 614	22 430
Components of other comprehensive income that may be reclassified to profit or loss in later periods
Exchange differences on translation of foreign operations	71	(79)	25	(113)
Other comprehensive income for the year, net of tax	71	(79)	25	(113)
Total comprehensive income for the year, including:	73 992	46 871	12 639	22 317
Comprehensive income attributable to shareholders of the parent company	61 949	47 183	10 461	22 628
Comprehensive income attributable to non-controlling interest	12 043	(312)	2 178	(311)

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

				Exchange	Equity attributable
	Sharecap ital	Supplemen tary capital	Accumulat ed retained earnings	differences from conver sion	to equity holdersof the parent	Non-con trollng share	Total equity
For the period 1.01.2022 - 30.06.2022
Opening balance	20 635	1 158 524	499 517	934	1 679 610	183 927	1 863 537
Distribution of the result from previous years	-	13 842	(13 842)	-	-	-	-
Dividend approved for payment	-	(90 792)	-	-	(90 792)	-	(90 792)
Other comprehensive income	-	-	-	71	71	-	71
Net profit (loss) for the period	-	-	61 878	-	61 878	12 043	73 921
Closing balance	20 635	1 081 574	547 553	1 005	1 650 767	195 970	1 846 737
For the period 1.01.2021 - 30.06.2021
Opening balance	20 635	1 280 664	382 420	966	1 684 685	(126)	1 684 559
Taking control over subsidiaries	-	-	-	-	-	183 496	183 496
Dividend approved for payment	-	(45 348)	(57 825)	-	(103 173)	(7 778)	(110 951)
Other comprehensive income	-	-	-	(79)	(79)	-	(79)
Net profit (loss) for the period	-	-	47 262	-	47 262	(312)	46 950
Closing balance	20 635	1 235 316	371 857	887	1 628 695	175 280	1 803 975

Condensed interim consolidated cash flows statement [PLN '000]

	1.01.2022 - 30.06.2022 (unaudited)	1.01.2021 - 30.06.2021 (unaudited)
A. Operating cash flow – indirect method
I. Profit before tax	103 992	56 689
II. Total adjustments
Share in (profit) net losses of entities accounted for using the equity method	(12 930)	(1 117)
Depreciation	7 646	4 955
Profit (loss) on currency exchange rate	17 855	(52 461)
Interest and profit sharing (dividends)	48 391	42 325
Profit / (loss) on revaluation of investment properties	(67 309)	5 478
Profit / (loss) from the investment activity	112	(174)
(Profit) on an occasional purchase	-	(48 581)
Change in provision	83 021	(16 708)
(Profit) loss on realization of financial instruments	136	10 203
	76 922	(56 080)
III. Changes in working capital
Change in inventories	13 675	(54 667)
Change in receivables	(134 530)	(3 798)
Change in short-term liabilities, except for loans and borrowings	18 265	272 737
Change in cash on escrow account	(98 891)	(7 172)
	(201 481)	207 101
IV. Net cash generated from operating activities (I+/-II+/-III)	(20 567)	207 710
Income tax paid	(31 853)	(37 144)
V. Cash flow from operating activities	(52 420)	170 566
B. Cash flows from investing activities
I. Inflows
Disposal of intangible assets and tangible fixed assets	60	34
Disposal of investments in property	784 870	389 574
From borrowings	29 120	1 672
Disposal of investments	-	22 364
Other investment inflows *	32 548	-
	846 598	413 644
II. Outflow
Purchase of intangible assets and tangible fixed assets	(4 706)	(1 214)
Investment in property	(262 289)	(151 111)
For borrowings	(2 850)	(26 188)
Due to the acquisition of subsidiaries, net of cash and cash equivalents in the acquired entities	-	(35 104)
Investment purchase*	(108 653)	(22 850)
	(378 498)	(236 467)
III. Net cash flow from investing activities (I+II)	468 100	177 177

* In investment activities, the purchase of investments in H1 2022 includes the capital increase in Rosehill Investments Sp. z o.o. (Galeria Młociny), while the item other investment inflows includes the withdrawal of contributions in Projekt Echo 138 Sp. z o.o. Sp.k. (Towarowa 22).

Condensed interim consolidated cash flows statement [PLN '000] - continued

	1.01.2022 - 30.06.2022 (unaudited)	1.01.2021 - 30.06.2021 (unaudited)
C. Cash flow from financing activities
I. Inflows
Loans and borrowings	82 113	127 854
Issue of debt securities	249 277	195 000
Other financial inflows	370	-
	331 760	322 854
II. Expenses
Repayment of loans and borrowings	(47 100)	(145 692)
Redemption of debt securities	(159 910)	(155 000)
Due to currency derivatives	-	(10 164)
Payments of leasing liabilities	(17 401)	(13 672)
Interest paid	(50 964)	(43 784)
	(275 375)	(368 312)
III. Net cash flow from financing activities (I+III)	56 385	(45 458)
D. Total net cash flows (A.V +/- B.III +/- C.III)	472 065	302 285
E. Change in cash in the consolidated statement of financial position, including:	472 065	302 285
- change in cash due to exchange rate differences	-	-
F. Cash and cash equivalents at the beginning of the period	588 680	327 097
G. Cash and cash equivalents at the end of the period (D+F)	1 060 745	629 382

Explanatory notes

Off-balance sheet liabilities [PLN '000]

	30.06.2022	31.12.2021
Contingent liabilities for other parties:
- due to guarantees and sureties granted	2 441 928	1 986 198
- due to court proceedings	17 388	3 884
Total	2 459 316	1 990 082

Changes in surety agreements issued by Echo Investment Group in the 1st half-year 2022 [PLN '000]

Change	Issuer	Entity receiving surety	Beneficiary	Value	Validity	Description
Expiry	Echo - SPV 7 Sp. z o.o. / Echo - Aurus Sp. z o.o.	Sagittarius-Projek Echo 113 Sp. z o.o. Sp.k.	Warburg - HiH Invest Real Estate GmbH	32 805	21.01.2022	Surety for liabilities resulting from sales contract.
Extension	Archicom S.A.	Archicom Nierucho mości 5 Sp. z o.o.	PKO BP S.A.	6 009	9.09.2023	Surety granted, as a secure a bank guarantee in connection with the sale of the office building City Forum B.
Extension	Archicom S.A.	Archicom Sp. z o.o. RI Sp.k.	PKO BP S.A.	6 568	9.07.2023	Surety granted, as a secure a bank guarantee in connection with the sale of the office building City Forum B.

Changes in guarantee agreements issued by Echo Investment Group in the 1st half-year 2022 [PLN '000]

Change	Guarantor	Entity receiving the guarantee	Beneficiary	Value	Validity	Description
Issue	Echo Investment S.A.	Projekt Echo 130 Sp. z o.o.	FARKAS Grundstücks gesellschaft mbH & Co. KG	30 182	31.12.2023	Security for the proper performance arising from the sale contract of the Fuzja CDJ buildings being part of the Fuzja complex. Guarantee issued in EUR.
Issue	Echo Investment S.A.	Projekt Echo 130 Sp. z o.o.	FARKAS Grundstücks gesellschaft mbH & Co. KG	103 221	30.06.2033	Security for the proper performance of obligations arising under quality guar antee agreement related to sale of Fuzja CD office buildings.
Issue	Echo Investment S.A.	Projekt Echo 130 Sp. z o.o.	FARKAS Grundstücks gesellschaft mbH & Co. KG	9 717	30.06.2033	Security for the proper performance of obligations arising under quality guaran tee agreement related to sale of Fuzja J office building.
Issue	Echo Investment S.A.	Projekt Echo 130 Sp. z o.o.	FARKAS Grundstücks gesellschaft mbH & Co. KG	33 225	30.06.2032	Security for the proper performance of obligations arising under fit-out agree ment related to sale of Fuzja CDJ office buildings. Guarantee issued in EUR.
Issue	Echo Investment S.A.	Midpoint 71 - Cornwall Investments Sp. z o.o. S.K.A.	SER Poland Sp. z o.o.	179 242	30.09.2032	Corporate guarantee securing the quality guarantee related to the sale of Midpoint 71 in Wroclaw.
Issue	Echo Investment S.A.	Midpoint 71 - Cornwall Investments Sp. z o.o. S.K.A.	SER Poland Sp. z o.o.	1 123	21.12.2033	Unconditionally and irrevocably guaran tees of full, due and punctual perfor mance of all payment obligations under the lease agreement. Guarantee issued in EUR.
Issue	Echo Investment S.A.	Midpoint 71 - Cornwall Investments Sp. z o.o. S.K.A.	SER Poland Sp. z o.o.	97 228	31.03.2030	Corporate guarantee securing the sale agreement of Midpoint 71 in Wroclaw. Guarantee issued in EUR.
Expiry	Echo Investment S.A.	Metropolis – Projekt Echo 121 Sp. z o.o. S.K.A.	Giant Sp. z o.o.	17 000	30.05.2022	Security for the payment of the guar antee amount and contractual penalty under the preliminary sales contract of 17.03.2022.
Issue	Santander Bank Polska S.A. (w ramach limitu kredytowego Echo Investment S.A.)	Galeria Libero - Projekt Echo 120 Sp. z o.o. Sp.k.	Miasto Katowice	758	10.05.2023	Security under the warranty and quality guarantee for the obligations arising from the contract concluded on June 16, 2016 on the implementation of a road investment.
Expiry	Echo Investment S.A.	Rosehill Investments Sp. z o.o.	IB 6 FIZAN w lik widacji	107 291	31.03.2022	Security for the proper performance of the obligations resulting from the pro gram contract concluded on 31.08.2017. Guarantee issued in EUR.
Expiry	Echo Investment S.A.	Projekt Beethovena - Projekt Echo 122 Sp. z o.o. S.K.A.	PKO BP S.A.	36 000	30.06.2022	Security for exceeding the costs of per forming the Moje Miejsce office project in Warsaw.
Expiry	PKO BP S.A. Biuro Finansowania Handlu	Dellia Investments - Projekt Echo 115 Sp. z o.o. Sp.k.	LUX Europa III S.a r.l.	6 450	20.05.2022	Security for the liabilities arising from the contract of quality guarantee concluded on 27.03.2019.
Expiry	Echo SPV 7 Sp. z o.o.	R4R Poznań Szcze panowskiego Sp. z o.o.	Santander Bank Polska S.A.	24 500	8.03.2022	Security of the borrowers liabilities arising from the cost overrun not in cluded in the budget specified in credit agreement.
Expiry	Echo Investment S.A.	Midpoint 71 - Cornwall Investments Sp. z o.o. S.K.A.	PKO BP S.A.	39 000	30.06.2022	Guarantee securing cost overrun and maintanance of unleased area on Mid point 71 office project in Wroclaw.
Expiry	Echo Investment S.A.	Midpoint 71 - Cornwall Investments Sp. z o.o. S.K.A.	PKO BP S.A.	20 337	30.06.2022	Guarantee securing debt service cover ratio and covering rent-free periods in lease agreements on Midpoint 71 office project in Wroclaw. Guarantee issued in EUR.

Changes in guarantee agreements issued by Echo Investment Group in the 1st half-year 2022 [PLN '000]

Change	Guarantor	Entity receiving the guarantee	Beneficiary	Value	Validity	Description
Expiry	Santander Bank Pols ka S.A.	Galeria Libero - Projekt Echo 120 Sp. z o.o. Sp.k.	Urząd Miasta Katowice	758	20.01.2022	Security under the warranty and the quality guarantee for the obligations resulting from the agreement on per forming the road project concluded on 16.06.2016.
Expiry	Echo Investment S.A.	Projekt Echo 130 Sp. z o.o.	Bank Pekao S.A.	28 609	30.06.2022	Guarantee securing cost overrun of the construction of Fuzja CDJ complex office project.
Expiry	PKO BP S.A. Biuro Finansowania Handru	Echo Investment S.A.	Gmina Miejska Kraków	282	10.05.2022	Guarantee of proper performance of the contract.
Issue	Echo Investment S.A.	Projekt Echo 130 Sp. z o.o.	Fujitsu Technolo gy Solutions Sp. z o.o.	24 786	1.12.2023	Security for the proper performance of obligations Projekt Echo 130 Sp.z o.o. as a landlord due to contractual penalties under the lease agreement of 31.01.2020. Guarantee issued in EUR.
Issue	Echo Investment S.A.	Projekt 17 - Grupa Echo Sp. z o.o. S.K.A.	Barcarrota Sp. z o.o.	33 120	31.12.2027	Security for the proper performance of obligations arising under the sale agree ment of the building West 4 Business Hub Phase I. Guarantee issued in EUR.
Issue	Echo Investment S.A.	Projekt 17 - Grupa Echo Sp. z o.o. S.K.A.	Barcarrota Sp. z o.o.	12 091	20.01.2028	Security for the proper performance of obligations arising under fit-out works agreement re. West 4 Business Hub Phase I. Guarantee issued in EUR.
Issue	Echo Investment S.A.	Projekt 17 - Grupa Echo Sp. z o.o. S.K.A.	Barcarrota Sp. z o.o.	82 498	20.01.2032	Security for the proper performance of obligations arising under quality guaran tee agreement regarding building West 4 Business Hub Phase I.
Issue	Generali Towarzystwo Ubezpieczeń S.A.	Echo Investment S.A.	Miasto Stołeczne Warszawa	2 925	31.12.2025	Guarantee of proper performance of the contract in connection with the contract No. 4 / WIR / 2022 of 6.04.2022, concerning the construction of the mu nicipal road 2 KDD, concluded between the Obliged and the Beneficiary.
Issue	Echo Investment S.A.	Projekt Beethovena - Projekt Echo 122 Sp. z o.o. S.K.A.	PKO BP S.A.	7 957	31.12.2026	Securing the coverage of additional amounts resulting from the rental holi days of approved lease agreements to ensure the required DSCR. Guarantee issued in EUR.
Extension	Archicom Nierucho mości 5 Sp. z o.o.	City One Park Sp. z o.o.	PKO BP S.A.	6 009	3.06.2022	Security for the proper performance of obligations under the contract for the sale of the City Forum B office building.
Extension	Archicom Sp. z o.o.- RI - Sp.k.	City One Park Sp. z o.o.	PKO BP S.A.	3 284	21.06.2022	Security for the proper performance of obligations under the construction con tract related to the contract for the sale of the City Forum B office building.
Extension	Archicom S.A.	City One Park Sp. z o.o.	PKO BP S.A.	1 190	26.04.2022	Security for the proper performance of obligations under the lease agreement related to the contract for the sale of the City Forum B office building.

List of mortgages on Echo Investment Group's inventories

	Mortgage value Assets value
Company	Real estate	[PLN '000]	[EUR'000]	[PLN '000]	For	Comment
Projekt Beethovena - Projekt Echo 122 Sp. z o.o. S.K.A.	Warszawa, ul. Beethovena	163 068	75 420	42 450	Bank PKO BP S.A.	due to the financing of the Libe ro shopping center in Katowice
				24 000
Face2Face - Stranraer Sp.	Katowice, ul. Chorzowska	496 056	129 994	36 000	Bank Pekao S.A.	due to the financing of the
z o.o. S.K.A.				99 000		Face2Face Business Campus I and II in Katowice
Galeria Libero - Projekt Echo	Katowice, ul. Kościuszki	649 093	50 675	33 000	Santander Bank Polska S.A.	due to the financing of the Libe
120 Sp. z. o.o. Sp. k.				9 000		ro shopping center in Katowice
			50 675	20 850	BNP Paribas
				9 000	Bank Polska S.A.
Echo - Arena Sp. z o.o.	Kraków, Al.Pokoju / ul. Fabryczna	226 600	131 120	119 100	Bank PKO BP S.A. with Pekao S.A.	due to the financing of the Brain Park I and II in Cracow
				18 000
Fianar Investments Sp. z.o.o	Kraków, ul. Kapelanka	138 072	31 005		Topaz Jewel Sp. z.o.o.	security of pecuniary receivable debts in connection with the real estate purchase transaction in Cracow at Kapelanka street
			5 704		Pearl Jewel Sp. z o.o.	security of pecuniary receiv able debts due the real estate
			5 070			purchase transaction in Poznań and Łódź
Projekt Echo 123 Sp. z.o.o	Łódź, al. Piłsudskiego / ul. Kilińskiego	15 181		2 000	Miasto Łódź	contractual joint mortgage to cover a contractual penalty plus interest and awarded costs of the proceedings
Projekt 140 – Grupa Echo Sp. z o.o. Sp.k.	Katowice, ul. Skargi	14 989	120 000*		Bank Pekao S.A.	due to the credit concluded by PE 129 Sp. z o.o.
GRO Nieruchomości Sp. z o.o.	Kraków, ul. Żelazna / ul. Kątowa	22 037
Projekt 139 - Grupa Echo Sp. z o.o. Sp.k.	Wrocław, ul. Swobodna	45 853
Projekt 12 - Grupa Echo Sp. z o.o. S.K.A.	Warszawa, al. KEN	81 635
Villea Investments Sp. z o.o	Kraków, ul. Wita Stwosza	65 271
Total		1 917 857

* The mortgage of this value applies to both investment properties and inventories as a whole, these amounts should not be considered individually.

List of mortgages on the inventories of Echo Investment Group's inventories

		Mortgage value Assets value
Company	Real estate	[PLN '000]	[EUR'000]	[PLN '000]	For	Comment
Echo Investment S.A.	Warszawa, ul. Wołoska	177 668		88 150	Archicom Lofty Plati num 1 Sp. z o.o.	advance payment and VAT return security, mortgage not yet entered in the land and mortgage register
Archicom Nieruchomości 9 Sp. z o.o.	Wrocław, ul. Góralska (etap 2)	10 613		3 000	mBank S.A.	due to the financing of ongoing operations of Ar chicom Sp. z o.o. Realizacja Inwestycji Sp.k.
Archicom Nieruchomości 14	Wrocław, biurowiec City	138 657	35 200	8 000	Bank Pekao S.A.	due to the financing of the
Sp. z o.o.	Forum 2, ul. Traugutta			24 000		City Forum 2 project
Archicom Nieruchomości 6 Sp. z o.o.	Wrocław, ul. Karkonoska			39 828	Bondholders repre sented by The Office	due to the issue of bonds in cooperation with SGB Bank S.A.
Space Investment Strzegoms ka 3 Otyńska Sp. z o.o.	Wrocław, ul. Otyńska / Rudzka				of CounselorsLegal entities A. Pieścik, W. Pietrzykowski, W. Wolniewicz Sp. k.
Archicom Nieruchomości JN1 Sp. z o.o.	Wrocław, Browary Wrocławskiej (bud. BA2, BA3), al. Jedności Naro dowej	95 354		120 000	Bank PKO BP S.A.	due to the bank overdraft facility granted to Archicom S.A.
Archicom Residential Sp. z o.o.	Wrocław, Kępa Mieszczańska (bud. KM4), ul. Dmowskiego	33 823
Projekt 12 - Grupa Echo Sp. z o.o. S.K.A.	Warszawa, al. KEN	60 595	120 000*		Bank Pekao S.A.	due to the loan concluded by PE 129 Sp. z o.o.
Potton Sp. z o.o.	Poznań, ul. Opieńskiego	30 410
Total		547 120

* The mortgage of this value applies to both investment properties and inventories as a whole, these amounts should not be considered individually.

Changes in PP&E – by types [PLN '000]

	Own land	Buildings and structures	Technical equipment and ma chines	Means of transport	Other PP&E	Total PP&E
1.01.2022 - 30.06.2022
Gross value of PP&E at the beginning of the period after correc tions	200	61 960	8 903	13 398	16 286	100 746
– purchase	-	1 181	582	52	3 363	5 178
– leasing MSSF 16	-	1 421	-	302	-	1 723
– sale	-	-	(466)	(143)	(9)	(618)
– liquidation	-	(88)	-	-	(813)	(901)
– other	-	-	-	(1 850)	-	(1 850)
Gross PP&E at the end of the period	200	64 474	9 018	11 759	18 827	104 278
Accumulated depreciation at the beginning of the period	(10)	(15 436)	(6 918)	(6 436)	(7 685)	(36 485)
– depreciation	(1)	(425)	(758)	(51)	(950)	(2 185)
– liquidation	-	-	-	-	-	-
– leasing MSSF 16 – depreciation	-	(3 075)	-	(1 414)	-	(4 489)
– leasing MSSF 16 - claiming the lease agreement	-	-	-	1 855	-	1 855
– correction due to sale	-	-	280	210	9	499
Accumulated depreciation at the end of the period	(11)	(18 936)	(7 396)	(5 836)	(8 626)	(40 805)
Net value of PP&E at the end of the period	189	45 538	1 622	5 923	10 201	63 473

Balance of tangible fixed assets includes the right to use land (perpetual usufruct) in the amount of PLN 45,220 thousand (in 2021 - PLN 48,015 thousand).

	Own land	Buildings and structures	Technical equipment and ma chines	Means of transport	Other PP&E	Total PP&E
1.01.2021 - 31.12.2021
Gross value of PP&E at the beginning of the period after cor rections	293	26 772	5 659	11 254	10 180	54 158
– taking control over subsidiaries	-	15 837	3 339	446	2 127	21 749
– purchase	-	610	209	-	5 219	6 038
– leasing MSSF 16	-	20 063	-	2 339	-	22 402
– sale	(93)	(352)	(193)	(642)	(829)	(2 109)
– liquidation	-	(216)	(111)	-	(312)	(639)
– other	-	(754)	-	-	(99)	(853)
Gross PP&E at the end of the period	200	61 960	8 903	13 398	16 286	100 746
Accumulated depreciation at the beginning of the period	(14)	(9 008)	(5 143)	(6 367)	(5 754)	(26 286)
– taking control over subsidiaries	-	(5 797)	(1 527)	(41)	(822)	(8 187)
– depreciation	(2)	309	(515)	(92)	(1 981)	(2 281)
– liquidation	-	18	111	-	243	372
– leasing MSSF 16 – depreciation	-	(4 829)	-	(2 955)	-	(7 784)
– leasing MSSF 16 - claiming the lease agreement	-	3 839	-	2 245	-	6 084
– correction due to sale	6	32	156	774	629	1 597
Accumulated depreciation at the end of the period	(10)	(15 436)	(6 918)	(6 436)	(7 685)	(36 485)
Net value of PP&E at the end of the period	190	46 524	1 985	6 962	8 601	64 261

Changes in investment property [PLN '000]

	Offices	Retail	Land	asset	Total
Value at 1.01.2021	591 461	746 126	2 212	49 173	1 388 972
purchase	-	-	-	11 276	11 276
taking control over subsidiaries	101 558	-	7 806	-	109 364
expenditure on investments	30 165	3 544	25	-	33 734
revaluation of property	5 575	8 939	3 938	(11 284)	7 168
taking to investment properties	-	(80 868)	-	-	(80 868)
taking to inventories	-	(41 039)	-	-	(41 039)
taking to assets held for sale	(614 175)	-	(1 767)	(1 574)	(617 516)
Value at 31.12.2021	114 584	636 702	12 214	47 591	811 091
purchase	-	-	-	25 494	25 494
expenditure on investments	9 305	2 642	1	-	11 948
revaluation of property	13 349	9 849	-	(7 263)	15 935
taking from investment properties	100 838	-	-	-	100 838
taking to assets held for sale	(126 702)	-	-	-	(126 702)
Value at 30.06.2022	111 374	649 193	12 215	65 822	838 604

The Group measures investment properties at fair value at the end of each reporting period. The appraisals of the investment properties were performed by the Internal Analyzes Department.

Due to commissioning of the React I office building in Łódź, the Group transferred the value of this property in the amount of PLN 100,838 thousand from the item "investment property under construction" to the item "investment property".

Due to the intention to sell within 12 months, the Group reduced the 'investment property' item by transferring the City2 office building in Wrocław of the value of PLN 126,702 thousand to the item of 'assets held for sale'.

Value of the 'investment property" item as at 30 June 2022 consists mainly of the following properties: Libero shopping center in Katowice and the React I office building in Łódź. At the same time, the 'investment property' item includes the value of the right to use the land (perpetual usufruct), which amounts to PLN 65,822 thousand as at 30 June 2022 (as at 31 December 2021 it amounted to PLN 47,591 thousand).

The fair value of investment properties was classified as level 3 of the fair value hierarchy, with the exception of two investment properties classified as level 2 in the amount of PLN 9,960 thousand. Detailed information in part 03 – "Material estimates and judgments of the Management Board of the Group".

NOTE 5

Changes in investment property under construction [PLN '000]

		Right-of-use
	Offices	Retail	Land	asset	Total
Value at 1.01.2021	673 842	23 439	67 022	16 318	780 621
purchase	-	-	-	1 684	1 684
expenditure on investments	147 724	11 039	299	-	159 062
revaluation of property	47 186	-	267	191	47 644
movement from inventory	132 830	-	-	-	132 830
movement from investment properties	-	80 868	-	-	80 868
movement to inventory	(6 325)	(5 393)	-	(1 383)	(13 101)
taking to assets held for sale	(378 066)	-	(63 879)	(2 293)	(444 238)
Value at 31.12.2021	617 191	109 953	3 709	14 517	745 370
purchase	-	-	-	3 753	3 753
expenditure on investments	78 864	8 135	-	-	86 999
revaluation of property	(826)	-	-	125	(701)
movement to fixed assets	(1 029)	-	-	-	(1 029)
movement to investment properties	(100 838)	-	-	-	(100 838)
Value at 30.06.2022	593 362	118 088	3 709	18 395	733 554

The Group measures investment properties under construction at fair value at the end of each reporting period. The appraisals of the investment properties under construction were performed by the Internal Analysis Department except one property of a value of PLN 3,707 thousand that was valuated by external experts.

The expenses incurred for the implementation of the investment concerned the implementation of projects located in Kraków, Katowice, Łódź, Wrocław and Warsaw.

The Group recognized the loss on the first revaluation of Brain Park I office building in Kraków in the amount of PLN (-) 826 thousand net, including the provision for securing revenues on rent-free period (master lease).

Due to commissioning of the React I office building in Łódź, the Group transferred the value of this property in the amount of PLN 100,838 thousand from the item "investment property under construction" to the item "investment property".

In the report as at 30 June 2022, the Group presented investment properties under construction with a total value of PLN 733,554 thousand. The closing balance of the item for the reporting period includes mainly Brain Park I&II office buildings in Kraków. The value of investment property includes the right to use land (perpetual usufruct) in the amount of PLN 18,395 thousand (as at 31 December 2021 – in the amount of PLN 14,517 thousand).

The value of liabilities for the purchase of investment properties under construction as at 30 June 2022 was PLN 59,982 thousand (as at 31 December 2021 it was PLN 76,136 thousand).

The Group assigned level 3 in the fair value hierarchy for investment properties under construction. Details are presented in part 03 – 'Material estimates and judgments of the Management Board of the Company'.

Change in assets held for sale [PLN '000]

		Right-of-use
	Offices	Retail	Land	asset	Total
Value at 1.01.2021	1 247 234	-	-	22 095	1 269 329
investment properties under construction taking	378 066	-	63 879	2 293	444 238
investment properties taking	614 175	-	1 767	1 574	617 516
revaluation of property	43 094	-	-	(70)	43 024
expenditure on investments	209 477	-	-	-	209 477
sale	(1 176 988)	-	(1 767)	(23 378)	(1 202 133)
Value at 31.12.2021	1 315 058	-	63 879	2 514	1 381 451
investment properties taking	126 702	-	-	-	126 702
revaluation of property	16 673	-	16 200	50	32 923
expenditure on investments	29 089	-	1 084	-	30 173
sale	(662 413)	-	(81 163)	(660)	(744 236)
movement from other assets	7 641	-	-	-	7 641
Value at 30.06.2022	832 750	-	-	1 904	834 654

The Group measures assets held for sale at fair value at the end of each reporting period. The valuations of the assets held for sale were performed by the internal Analysis Department.

Due to the intention to sell within 12 months, the Group reduced the 'investment property' item by transferring the City2 office building in Wrocław of the value of PLN 126,702 thousand to the item of 'assets held for sale'.

The decrease of 'assets held for sale' item results from the sale of:

• − Fuzja CD i J office buildings in Łódź in a value of PLN 169,645 thousand (including the right of perpetual usufruct of land in the amount of PLN 660 thousand),
• − MidPoint 71 office building in Wrocław in a value of PLN 346,472 thousand,
• − West4 Business Hub I office building in Wrocław with a value of PLN 146,956 thousand and,

− investment plots at ul. Hetmańska in Poznań in a value of PLN 81,163 thousand.

Details of the sale transaction concluded in H1 2022 are presented in the note 20.

In the report as at 30 June 2022, in the 'assets held for sale' item the Group presents, among other, the value of the office building Moje Miejsce II in Warsaw and Face-2Face I&II in Katowice with a total value of PLN 834,654 thousand (including the perpetual usufruct of land in the amount of PLN 1,904 thousand).

The Group assigned level 3 in the fair value hierarchy for investment properties classified as held for sale. Details are presented in part 03 – 'Material estimates and judgments of the Management Board of the Group'.

Liabilities associated to assets held for sale [PLN '000]

	30.06.2022	31.12.2021
Leasing liabilities	1 791	2 512
Received deposits and advances	51 800	64 039
Other	113	1 512
Total	53 704	68 063

The item 'liabilities associated to assets held for sale' of the consolidated statement of financial position, presents liabilities related to following properties: Moje Miejsce II

office building in Warsaw, Face2Face I & II office buildings in Katowice, as well as land plot on ul. Nowomiejska in Gdańsk.

Financial assets [PLN '000]

	30.06.2022	31.12.2021
Long-term loans granted (with interests)	304 591	297 163
Short-term loans granted (with interests)	15 595	41 920
Long-term receivables due to disposal of subsidiaries	-	55 291
Long-term sureties	2 964	7 534
Long-term prepayments	199	6 372
Assets at the end of the period	323 349	408 280
long-term	307 754	366 360
short-term	15 595	41 920

Loans were granted to legal entities and natural persons in PLN, with the WIBOR interest rate + margin, as well as in EUR – with a fixed interest rate. As at the balance sheet date, loans with a total value of PLN 299,870 thousand (after conversion into PLN) were granted to entities accounted for using the equity method: companies being owners of projects Galeria Młociny, Towarowa 22 and Resi4Rent. The carrying amount of loans granted to other entities is PLN 20,316 thousand.

The maximum credit risk associated with loans equals their carrying amount. The Company's Management Board actively monitors debtors and assesses that their loan obligations are possible to meet. In particular, it is possible in the case of the loans granted to related entities, which enables the Group to assess and identify the loans for which the credit risk has increased significantly. The Company's Management Board did not identified such loans. The Management Board also assessed the loans in terms of making a write-down for expected credit losses and assessed such write-down as immaterial. The estimated fair value of the loans granted is approximately equal to their carrying amount.

Long-term receivables from the sale of subsidiaries as at 31 December 2021 are receivables from individual persons in PLN - with a fixed interest rate. This is the second instalment of the payment for the sale of all shares vested the Archicom Group in the share capital of Archicom Polska S.A., payable by 15 June 2023.

Inventory [PLN '000]

	30.06.2022	31.12.2021
Semi-finished products and work-in-progress	1 546 793	1 457 726
– asset on perpetual usufruct	67 905	81 322
Finished products	68 938	175 380
Lands for development	18 367	17 204
Total Inventory	1 634 098	1 650 310

The "finished products" item includes mainly residential and commercial premises sold under final contracts.

The "semi-finished products and work in progress" item includes mainly real estate owned by the Group and expenditure on housing projects in preparation and implementation (eg. design services, construction works, etc. provided by external companies). Additionally, this item shows the right to use land (perpetual usufruct). The remaining value of the item relates to the expenditure incurred on the services of finishing the premises (fit-out). Due to the specific nature of the business, the purchased land, prepared for development, is presented as work in progress, and the newly purchased land as land.

The 'goods' item includes land earmarked for sale.

Inventories are valued according to the cost of production or purchase, but not higher than the obtainable net sales value. This value is obtained according to the current market prices obtained from the development market. The reversal of an inventory write-down occurs either in connection with the sale of an inventory or in connection with an increase in the net selling price. The amounts of write-offs of the value of inventories recognized as an expense in the period and the amounts of the reversal of write-downs of values decreasing the value of inventories

recognized as income in the period are presented in the profit and loss account under "cost of sale".

In accordance with IAS 23, the Group activates the portion of financial costs directly related to the acquisition and production of assets presented as inventories. The amount of financial expenses determined using the effective interest rate reduced by the income from the temporary placement of cash (i.e. the interest on bank deposits, except for deposits resulting from blockades of accounts or letters of credit) in the case of targeted financing contracted for a given construction project. In the case of leasing, interest costs on the leasing obligation related to a specific project are capitalized in the project cost (targeted financing). In the case of general financing, the overall financing costs subject to capitalization are determined by applying the capitalization rate to the expenditure incurred for a given asset.

The activated amount of borrowing costs for inventories in H1 2022 amounted to PLN 3,919 thousand (capitalization rate 1.88 percent) whereas in 2021 it amounted to PLN 4,613 thousand (capitalization rate 1.17 percent).

The value of inventories as at 30 December 2022 amounts PLN 1,634,098 thousand, including for sale within 12 months PLN 552,377 thousand.

Inventories – impact on profit/loss [PLN '000]

	1.01.2022- 30.06.2022	1.01.2021- 30.06.2021
Amount of inventories recognised as an expense in the period	(331 310)	(301 779)
Impairment losses on inventories recognised in the period as cost	(750)	(19 664)
Reversal of impairment losses which decreases the value of inventories recognised in the period as income	457	17 421

Inventory write-downs and reversals refer to residential projects and they are intended to write down the value to the level of a feasible price. The inventory value recognized as income / cost in a given period is included in the profit and loss account under "cost of sales".

The change in inventory write-down until 30 June 2022 amounted to PLN (-) 293 thousand. As at 30 June 2021, this value amounted to PLN (-) 2,242 thousand.

The reversal of write-downs in H1 2022 concerned mainly to residential projects located in Warsaw and Poznań, in relation to sale transactions concluded.

Short-term receivables [PLN '000]

	30.06.2022	31.12.2021
Trade receivables
– up to 12 months	57 061	50 970
Total trade receivables	57 061	50 970
Receivables due to sale of subsidiaries	56 608	-
Receivables due to sales of Browary GH	27 890	20 884
Receivables from price increase	21 426	-
Land use right asset (perpetual usufruct)	2 104	-
Asset on perpetual usufruct	3 523	-
Tender bond for the purchase of real estate	-	10 000
Deposits paid	12 381	3 783
Advances for other deliveries	13 483	6 886
Advances for the purchase of land	113 933	5 283
Accruals - insurance	4 350	2 581
advances for invoiced deliveries	1 636	3 692
cost of transferred infrastructure	-	1 335
advances - other	3 363	4 996
Real estate tax	3 252
Other receivables	932	9 753
Total non-financial assets	264 881	69 193
Receivables due to VAT tax	82 451	63 695
Receivables due to other taxes	863	1 213
Total receivables due to taxes	83 314	64 908
Total net short-term receivables	405 256	185 071
– impairment losses on receivables - trade receivables	31 857	31 704
Total gross-short-term receivables	437 113	216 775

Receivables on account of deliveries and services result from provided development services, fit-out services, rental of commercial and residential space, and other.

The amount of advance payments for the purchase of land is related to the planned housing project Towarowa 22.

The company controls the condition and payment capacity of its counterparties on an ongoing basis. There is no significant risk concentration in relation to any of the clients of the Echo Investment Group. As at 30 June

2022, the Group estimated the value of impairment losses based on a provision matrix based on historical data regarding the repayment of receivables by counterparties.

The maximum value of credit risk related to trade receivables does not significantly differ from the carrying amount. The estimated fair value of trade receivables is the current value of future expected discounted cash flows and does not deviate significantly from the balance sheet value of these receivables.

		Cash and its equivalents [PLN '000]
--	--	-------------------------------------	--	--

	30.06.2022	31.12.2021
Cash in hand and at bank	1 060 745	588 680
Total cash	1 060 745	588 680

The Group keeps surplus cash in the following banks: PKO BP S.A., Pekao S.A., Alior Bank S.A. and mBank S.A.

The maximum credit risk of cash is equal to its carrying amount.

Bank's external ratings and publicly available information on default rates set by external agencies are used to assess credit risk. The ratings of the banks with the funds are between BBB- to A - according to the EuroRating rating agency, published on the European Rating Platform operated by the European Securities and Markets Authority (ESMA).

Other financial assets [PLN '000]

	30.06.2022	31.12.2021
Restricted cash:
– proceeds from residential customers on escrow accounts released by the bank in the course of the progress of investment	158 281	44 762
– securing the refund of security deposit	18 676	10 010
– securing the repayment of interest and principal instalments	7 139	30 433
Total other monetary assets	184 096	85 205

Change in provisions [PLN '000]

	30.06.2022	31.12.2021
Opening balance
provisions on expected costs of general administrative (audit, bonuses, leave of absence, etc.)	7 573	700
provision for estimated penalties and losses	15 182	13 014
provision for estimated costs of warranty repairs, etc.	8 137	1 274
provision for court cases	9 092	3 434
provision for liabilities related to investment projects	21 022	2 101
provision for master lease obligations	16 344	12 370
provision for profit share obligations	42 425	46 283
provision for fit-out works	9 455	2 912
	129 230	82 088
Increases due to:
provisions on estimated costs of general administrative (audit, bonuses, leave of absence, etc.)	10 211	12 522
provision for estimated penalties and losses	372	4 642
provision for estimated costs of warranty repairs, etc.	2 208	14 415
provision for court cases	2 478	8 064
provision for liabilities related to investment projects	38 891	31 818
provision for master lease obligations	29 950	12 373
provision for profit share obligations	1 873	1 546
provision for fit-out works	48 096	9 845
	134 079	95 225
Utilization due to:
incurred costs of general administrative	(9 776)	(5 649)
incurred penalties and losses	(1 369)	(2 474)
incurred of warranty repairs, renovations, etc.	(2 471)	(7 552)
provision for court cases	(4 038)	(2 406)
provision for liabilities related to investment projects	(17 803)	(12 897)
provision for master lease obligations *	(3 488)	(8 399)
provision for profit share obligations **	(4 295)	(5 404)
provision for fit-out works	(8 317)	(3 302)
	(51 557)	(48 083)
Closing balance
provisions on estimated costs of general administrative (audit, bonuses, leave of absence, etc.)	8 008	7 573
provision for estimated penalties and losses	14 185	15 182
provision for estimated costs of warranty repairs, etc.	7 874	8 137
provision for court cases	7 532	9 092
provision for liabilities related to investment projects	42 110	21 022
provision for master lease obligations	42 806	16 344
provision for profit share obligations	40 003	42 425
provision for fit-out works	49 234	9 455
	211 752	129 230
including:
Long-term provisions	94 915	51 719
Short-term provisions	116 837	77 511

* Detailed information on provisions for rent guarantees share is presented in item 03 "Material estimates and judgments Group Management Board ".

** Detailed information on provisions for liabilities due to profit share is presented in item 03 "Material estimates and judgments Group Management Board ".

Credit, loans and bonds [PLN '000]
------------------------------------	--	--	--	--	--

	30.06.2022	31.12.2021
Loans and borrowings	583 573	630 489
Credits, loans, - non-current assets classified as held for sale	401 546	580 511
Debt securities	1 733 543	1 610 934
Debt securities - non-current assets classified as held for sale	30 600	29 719
Total liabilities due to loans, borrowings and bonds	2 749 262	2 851 653
of which long-term portion	1 641 071	1 589 047
of which short-term portion	1 108 191	1 262 606

In the item 'loans, borrowings and bonds financing properties held for sale' of the consolidated statement of financial position, liabilities (bank loans, bonds, loans) related to projects intended for sale and presented in the item 'assets held for sale'.

As at the balance sheet date, this item includes liabilities financing projects:

• − Moje Miejsce II in Warsaw,
• − Face2Face Business Campus I&II in Katowice,
• − City2 in Wrocław.

The "loans and borrowings" item presents special purpose loans and lines of credit in current accounts. The purpose credit agreements are secured by real estate mortgages, assignment of receivables resulting from lease agreements, construction agreements, policies and registered pledges on shares, accounts, belongings and rights of subsidiaries. Interest rates on loans denominated in EUR are based on the EURIBOR plus a margin.

Credit lines denominated in PLN are secured by blank promissory notes, declarations of submission to enforcement and powers of attorney to bank accounts. The loan interest rate is based on the WIBOR rate plus a bank's margin. According to the best information and data of the Management Boards of the Group's companies, there were no breaches of the terms of loan agreements or the agreed levels of collateral during the financial year and until the date of signing the financial statements.

In the 'debt securities' item the Group presents bonds issued. The interest on bonds is based on the WIBOR rate plus a margin. The Group has also issued bonds in PLN based on a fixed rate, as well as bonds in EUR with a fixed interest rate. The fair value of loans and borrowings does not differ significantly from their balance value. The fair value was determined by the income method based on the cash flows discounted by the current market interest rate. The fair value measurement was classified as level 3 of the fair value hierarchy.

The Group's financing is based on the EURIBOR and WIBOR rates, which meet the conditions of the BMR (Benchmark Market Resolution) reform and the new standard concerning the reform of the interest rate benchmark (IBOR Reform) - Stage 2. Details of the impact of the reform are described in section 04 "New standards and interpretations effective from 1 January 2022."

Detailed information on loans and bonds can be found in the part 01 of the Management Board Report on the activities of Echo Investment S.A. and its Capital Group.

Trade and other liabilities [PLN '000]

	30.06.2022	31.12.2021
Trade payables maturing:
up to 12 months	168 373	186 793
	168 373	186 793
Leasing liabilities	232 605	224 994
Liabilities due to purchases of land	47 384	117 512
Dividend liabilities	92 014	-
Security deposits from contractors and deposits received	98 972	115 334
Payments on escrow account from clients purchasing apartments	158 279	44 764
Derivative financial instruments	669	1 188
Accruals - expenditure on real estate projects to be incurred in connection with concluded contracts	18 824	11 354
Accruals - bonuses for the Management Board and employees	6 317	23 796
Accruals - other	2 058	719
Other liabilities	5 128	7 022
	662 250	546 683
Liabilities due to VAT	146 184	5 358
Liabilities due to other taxes	16 654	9 902
	162 838	15 260
Total trade and others liabilities	993 461	748 736
- long-term	167 758	214 266
- short-term	812 820	505 685
- liabilities directly associated with non-current assets classified as held for sale	12 883	28 785

The fair value of trade and other liabilities does not differ significantly from their carrying amount.

Dividend liabilities as at 30 June 2022 concern Echo Investment S.A. in the amount of PLN 90,792 thousand and Archicom S.A. in the amount of PLN 1,221 thousand.

After the balance sheet date, on 26 July 2022, the dividend liability of Echo Investment S.A. was paid, and the dividend liability of Archicom S.A. was paid on 29 July 2022.

Sales revenues by title [PLN '000]

	1.01.2022- 30.06.2022	1.01.2021- 30.06.2021
Revenue from Contracts with Customers
Sale and lease of residential space	445 287	283 909
Sale to the Resi4Rent	7 901	13 164
Services in office space	19 087	7 034
Services in retail space	383	256
Other sale	27 820	46 507
Revenue from Contracts with Customers	500 478	350 870
Lease (MSSF16)
Lease of residential space	131	412
Lease of office space	62 480	46 519
Lease of retail space)	34 534	22 656
Lease of other space	517	439
Asset on leasing IFRS 16	97 662	70 026
Revenue total	598 140	420 896

Revenues [PLN '000]

	1.01.2022- 30.06.2022	1.01.2021- 30.06.2021
Sale	445 287	283 909
Lease	131	412
Apartments	445 418	284 321
Lease	62 480	46 519
Fit-out services	19 087	7 034
Office	81 567	53 553
Lease	34 534	22 656
Development services	383	256
Retail	34 917	22 912
Sale	7 901	13 164
Resi4Rent	7 901	13 164
Sale	19 678	45 110
Lease	517	439
Services	8 142	1 397
Other	28 337	46 946

Deferred income resulting from residential sales agreements [PLN '000]

Project	Targeted completion	Targeted total value	Total value of deferred reve nue related to concluded agreements	Received advance paymants / deferred income (long and short term)*	Deposit on apartments (long and short-term other liabilities (note 18)**
Residential project
Osiedle Krk I, Kraków	completed	98 116	6 475	3 133	129
Osiedle Krk II, Kraków	III Q 2022	99 552	99 552	22 882	525
Osiedle ZAM I, Kraków	III Q 2022	64 848	64 848	51 447	6 470
Osiedle Bonarka Living I, Kraków	completed	69 371	35	-	-
Osiedle Bonarka Living II C, Kraków	III Q 2023	101 520	101 520	12 899	6 867
Osiedle Bonarka Living II D, Kraków	III Q 2023	86 677	86 677	10 556	6 445
Osiedle Jarzębinowe VIII, Łódź Nowa Dzielnica, Łódź	completed completed	40 743 30 249	447 941	419 -	- -
Fuzja I, Łódź	completed	107 927	3 532	262	21
Fuzja II, Łódź	III Q 2022	99 223	99 223	55 351	19 214
Fuzja III, Łódź	II Q 2023	79 229	79 229	12 841	6 891
Zenit I, Łódź	IV Q 2022	61 857	61 857	21 321	5 261
Boho, Łódź	III Q 2023	109 199	109 199	7 795	-
Osiedle Perspektywa I, Poznań	completed	43 740	-	46	-
Osiedle Enter IA, Poznań	completed	42 207	368	19	77
Osiedle Enter IB, Poznań	completed	39 108	292	53	33
Osiedle Enter II, Poznań	IV Q 2022	62 194	62 194	32 617	18 386
Osiedle Enter III, Poznań	IV Q 2022	66 159	66 159	33 975	17 258
Nasze Jeżyce I, Poznań	completed	57 978	46	-	4
Nasze Jeżyce II, Poznań	completed	64 554	-	-	152
Apartamenty Esencja, Poznań	completed	116 872	2 797	-	3
Wieża Jeżyce I, Poznań	IV Q 2023	107 484	107 484	12 301	9 419
Widoki Mokotów, Warszawa	completed	69 556	941	73	-
Browary Warszawskie Etap E, Warszawa	completed	113 755	16 541	1 271	-
Osiedle Reset I, Warszawa	completed	66 700	53	-	-
Osiedle Reset II, Warszawa	completed	119 423	37	-	-
Moje Miejsce, Warszawa	completed	132 337	68	-	-
Stacja Wola I, Warszawa	completed	205 200	305	-	64
Stacja Wola II, Warszawa	completed	145 951	5 273	3 727	257
Rytm Apartamenty na Kabatach, Warszawa	IV Q 2023	289 451	289 451	30 528	42 973
Ogrody Graua, Wrocław	completed	44 750	73	76	-
Grota - Roweckiego 111 etap III, Wrocław	completed	16 204	-	17	-
Stacja 3.0, Wrocław	completed	89 643	1 154	751	503
Awipolis L3, L4, Wrocław	III Q 2022	79 986	79 986	59 570	674
Awipolis etap 3, Wrocław	III Q 2023	60 585	60 585	7 967	67
Sady nad Zieloną, Wrocław	III Q 2022	35 302	35 302	25 294	2 981
Browary Wrocławskie BA2, BA3, Wrocław	II Q 2023	183 050	183 050	51 293	972
Browary Wrocławskie BL1, BL2, BP3, BP4, Wrocław	completed	164 718	9 177	9 191	144
Browary Wrocławskie BA1, BL3, Wrocław	completed	105 580	372	38	-
Browary Wrocławskie BP1,BP2, Wrocław	completed	63 591	9	1	-
Browary Wrocławskie BP5,BP6, Wrocław	IV Q 2023	107 772	107 772	7 615	389

Deferred income resulting from residential sales agreements [PLN '000]

Project	Targeted completion	Targeted total value	Total value of deferred reve nue related to concluded agreements	Received advance paymants / deferred income (long and short term)*	Deposit on apartments (long and short-term other liabilities (note 18)**
Forma, Wrocław	completed	90 774	2	2	-
Cztery Pory Roku J15, J16, J17, J18, Wrocław	completed	119 384	516	426	-
Księżno P5-P7, Wrocław	completed	74 213	30	6	-
Olimpia Port M1-M4, Wrocław	completed	71 923	12	12	-
Olimpia Port M12, M14, Wrocław	completed	79 672	31	31	-
Olimpia Port M21,M22,M23, Wrocław	completed	72 638	2 040	258	76
Olimpia Port M24,M25,M26, Wrocław	III Q 2023	124 149	124 149	9 234	6 418
Olimpia Port M28, M29, M30, M30, M31, M32, M33, Wrocław	completed	142 270	1 612	348	-
Olimpia Port M34,M35, Wrocław	completed	27 393	25 331	21 365	2 395
Olimpia Port M36,M38, Wrocław	IV Q 2022	49 518	49 518	22 303	192
Olimpia Port M37,M39, Wrocław	II Q 2023	87 076	87 076	859	287
Olimpia Port M7-M11, Wrocław	completed	87 526	27	19	-
Olimpia Port S16a, S16b, S17, Wrocław	completed	54 184	12	12	-
Planty Racławickie R5,R6,R7, Wrocław	III Q 2022	96 262	96 262	68 847	1 180
Planty Racławickie R8, Wrocław	III Q 2023	59 171	59 171	9 458	507
Nowa Kępa Mieszczańska KM4, Wrocław	I Q 2024	118 738	118 738	9 061	619
Słoneczne Stabłowice Z1,Z5, Wrocław	completed	19 689	10	10	-
Słoneczne Stabłowice Z21,Z22,Z23, Wrocław	completed	40 496	13	1	14
Słoneczne Stabłowice ZD1,ZD2, Wrocław	completed	33 830	763	683	34
Total residential projects		5 191 267	2 308 337	618 264	157 901
Other projects
Others		5 329	5 329	4 952	378
Total other projects		5 329	5 329	4 952	378
Total residential and others projects		5 196 596	2 313 666	623 216	158 279

* Advance payments released from escrow accounts

** Advance payments (gross) to be released from escrow accounts

Net profit on investment property [PLN '000]

	1.01.2022- 30.06.2022	1.01.2021- 30.06.2021
Profit on investment property	1 527	(934)
Revaluation of property, including:	47 270	(4 058)
- Asset on perpetual usufruct	(55)	2
Costs of profit share	2 426	7 348
Net profit (loss) on investment property	51 223	2 356

In H1 2022, the Group sold office buildings Fuzja CD&J in Łódź, MidPoint71 and West4 Business Hub I in Wrocław as well as land plots on ul. Hetmańska in Poznań. The transactions are described in note 20.

In the item "profit (loss) on the sale of investment properties", costs of securing rental revenues (master lease), which are mainly related to sold Sagittarius Business House in Wrocław, O3 Business Campus in Kraków, Malthouse Offices in Warsaw (Warsaw Breweries K), Moje Miejsce I in Warsaw, West4 Business Hub I in Wrocław and Fuzja CD&J in Łódź.

The item "revaluation of real estate" mainly valuation of office projects such as Moje Miejsce II in Warsaw, Face2Face Business Campus I & II in Katowice City2 in Wrocław as well as Brain Park I in Krakow is presented. The item 'profit share costs' includes liabilities to profit sharing applied to Moje Miejsce I & II in Warsaw and Libero shopping center in Katowice.

NOTE 16

Financial income [PLN '000]

	1.01.2022- 30.06.2022	1.01.2021- 30.06.2021
Income from derivatives	15 938	-
Discount income	12 708	-
Profit on disposal of investments	-	5 316
income from borrowings interest with amortized cost	8 683	5 738
Income from interest	1 214	538
Other financial income	145	1 199
Total Financial income	38 688	12 791

Financial costs [PLN '000]

	1.01.2022- 30.06.2022	1.01.2021- 30.06.2021
Interest expense from credit with amortized cost	(19 271)	(23 516)
Interest expense from bonds with amortized cost	(62 844)	(30 250)
Costs of expected credit loss	(908)	(457)
Costs due to interest of leasing	(2 456)	(2 814)
Loss on disposal of investments	-	(297)
Other	(42)	(33)
Total Financial costs	(85 520)	(57 366)

In accordance with IAS 23, the Group activates the part of financial costs that are directly related to the acquisition and production of assets. In the case of general financing, the financing costs subject to capitalisation are determined using the weighted average of all external financing costs in relation to the incurred outlays for a given asset.

The activated amount of borrowing costs in H1 2022 amounted to: PLN 5,622 thousand at a capitalization rate of 1.88 percent (of which: for inventories: PLN 3,918 thousand, for investment properties under construction: PLN 1,704 thousand). In H1 2021 it amounted to: PLN 3,577 thousand at a capitalization rate of 1.09 percent (of which: for inventories: PLN 2,598 thousand, for investment properties under construction: PLN 979 thousand).

NOTE 18

In H1 2022 the Group's Management Board decided to change the method of presenting revenues and costs by segment. The previous segments "office", "retail" and "other" are now presented as one segment "commercial". The change of presentation results from organizational changes in the Group: joint supervision over the "office" and "retail" segments was taken over by one member of the Management Board. The new way of presentation is therefore in line with the management model.

The strategic steering committee of the Group, which includes the Management Board, analyzes the activity throughout the type of product / service and distinguishes 3 segments: apartments, apartments for rent and commercial properties.

Revenues of all segments of the Group's operations are recognized when the obligation to perform the service is fulfilled, except for revenues from the lease of space, which are recognized in a given period.

Revenues from any of the Group's clients did not exceed 10 percent of the sales revenues generated by the Group in the 6-month period ended on 30 June 2022.

Both in the H1 2022 and in H1 2021, the Group generated sales revenues only in Poland.

Consolidated statement of financial position – allocation to segments at 30 June 2022 [PLN '000]

	Total	Residential	Resi4Rent	Commercial properties
Assets
Non-current assets
Intangible assets	70 003	67 745	-	2 258
Property, plant and equipment	63 473	12 467	-	51 006
Investment property	838 604	-	-	838 604
Investment property under construction	733 554	-	-	733 554
Investment in associates and joint ventures	424 208	-	119 153	305 055
Long-term financial assets	307 754	4 103	207 722	95 930
Derivative financial instruments	33 732	9 803	1 712	22 218
Other assets	1 731	1 731	-	-
Deferred tax asset	82 704	36 432	28	46 244
	2 555 763	132 280	328 615	2 094 868
Current assets
Inventory	1 634 098	1 628 068	362	5 667
Current tax assets	18 591	4 254	-	14 337
Other taxes receivable	83 314	58 890	28	24 396
Trade and other receivables	321 942	178 375	3 727	139 840
Short-term financial assets	15 595	-	-	15 595
Other financial assets *	184 096	158 281	-	25 815
Cash and cash equivalents	1 060 745	217 204	242	843 300
	3 318 381	2 245 072	4 359	1 068 950
Assets held for sale	834 654	-	17 625	817 029
	4 153 035	2 245 072	21 984	1 885 980
Total assets	6 708 798	2 377 352	350 599	3 980 848

* Mostly cash in escrow accounts paid by residential clients.

Consolidated statement of financial position – allocation to segments at 30 June 2022 [PLN '000]

	Total	Residential	Resi4Rent	Commercial properties
Equity and liabilities
Equity	1 846 737	618 188	180 588	1 047 964
Long-term liabilities
Credits, loans, bonds	1 641 071	380 482	113 163	1 147 426
Acquisition of shares	51 264	51 264	-	-
Long-term provisions	94 915	6 480	-	88 435
Deferred tax liabilities	158 258	57 990	-	100 268
Leasing	129 164	20 271	-	108 893
Liabilities due to customers	38 594	19 861	-	18 733
	2 113 266	536 348	113 163	1 463 755
Short-term liabilities
Credits, loans, bonds	676 045	124 064	35 416	516 565
Credits, loans, bonds - non-current assets classified as held for sale	432 146	-	-	432 146
Derivative financial instruments	669	-	-	669
Income tax payable	33 358	1 083	-	32 275
Other taxes liabilities	162 838	12 902	1	149 935
Trade payable	168 373	83 252	310	84 810
Dividend payable	92 014	83 696	-	8 317
Leasing	101 651	64 673	-	36 978
Short-term provisions	116 837	18 845	216	97 776
Other liabilities	287 944	211 085	1	76 858
Liabilities due to customers	623 216	623 216	-	-
	2 695 091	1 222 816	35 945	1 436 329
Liabilities directly associated with non-current assets classified as held for sale	53 704	-	20 904	32 800
	2 748 795	1 222 816	56 849	1 469 129
Total equity and liabilities	6 708 798	2 377 352	350 599	3 980 848

Consolidated profit and loss account – allocation to segments for the period from 1 January 2022 to 30 June 2022 [PLN '000]

	Total	Residential	Resi4Rent	Commercial properties
Revenues	598 140	445 418	7 901	144 821
Cost of sales	(386 907)	(297 893)	(4 214)	(84 800)
Gross profit	211 233	147 525	3 687	60 021
Profit on investment property	51 223	-	-	51 223
Administrative costs associated with project implementation	(34 380)	(26 847)	(108)	(7 425)
Selling expenses	(22 558)	(18 000)	(820)	(3 738)
General and administrative expenses	(42 194)	(15 987)	(2 767)	(23 440)
Other operating income	11 819	2 850	-	8 969
Other operating expenses	(12 489)	(4 963)	-	(7 526)
Operating profit	162 654	84 578	(8)	78 084
Financial income	38 688	14 748	2 550	21 390
Financial cost	(85 520)	(25 609)	(4 238)	(55 673)
Profit (loss) on FX derivatives	(1 890)	-	-	(1 890)
Foreign exchange gains (losses)	(22 870)	(2 382)	(347)	(20 142)
Share of profit (loss) of associates and joint ventures	12 930	-	17 732	(4 802)
Profit before tax	103 992	71 335	15 689	16 968
Income tax	(30 071)	(20 627)	(4 537)	(4 907)
Net profit (loss)	73 921	50 708	11 152	12 061
Equity holders of the parent	61 878	38 661	11 152	12 064
Non-controlling interest	12 043	12 045	-	(2)

NOTE 19

Joint-ventures

The value of investments in associates and joint ventures accounted for using the equity method is presented in the table below:

	30.06.2022	31.12.2021
Rosehill Investments Sp. z o.o., Berea Sp. z o.o. (Galeria Młociny)	199 760	86 656
Projekt Echo 138 Sp. z o.o. Sp.k. (Towarowa 22)	105 294	147 099
R4R Poland Sp. z o.o. (Resi4Rent)	119 154	102 981
Total	424 208	336 737

Rosehill Investments Sp. z o.o., Berea Sp. z o.o. (Galeria Młociny)

On 31 May 2017 the Echo Investment Group together with the EPP Group concluded a purchase agreement concerning a property located in Warsaw at ul. Zgrupowania AK "Kampinos". Under the concluded transaction the companies purchased shares in Rosehill Investments Sp. z o.o., which is the owner of Galeria Młociny project by way of holding 100 percent shares in Berea Sp. z o.o. The property value was established as EUR 104.5 mln. As at the day of the acquisition and the balance date i.e. on 30 June 2022 the Echo Investment Group held 30 percent shares in the project company being the owner of the property and the remaining 70 percent was held by the EPP Group. The share of the Group in Berea Sp. z o.o. presented in the financial report is estimated according to the equity method. Pursuant to the articles of association, all strategic financial and operational decisions (including in particular: purchase of a significant asset, conclusion of a lease agreement, etc.) require the unanimous consent of both shareholders.

In H1 2022, the Echo Investment Group together with the EPP N.V. made a proportional capital increase in Rosehill Investments Sp z o.o. in the total amount of EUR 76.3

million (EPP N.V. - EUR 53.4 million, Echo Group - EUR 22.9 million).

A summary of financial information in the joint venture is presented below. The carrying value of the investment as at 30 June 2022 amounted to PLN 199,760 thousand. At the same time, since the beginning of the project, the Echo Group granted to Rosehill Investments Sp. z o.o. and Berea Sp. z o.o. loans with a total value of PLN 73,212 thousand.

In 2019, the company analyzed the impairment of net investment value based on the equity method in a jointly controlled company Rosehill Investments Sp. z o.o (projekt Młociny). In the first half of 2019, due to Galeria Młociny opening, the company updated the fair value of the project in the net assets of the jointly controlled entity. The company estimated that the recoverable amount of the net investment as at the balance sheet date is lower than the value of the shares in net assets as at that day. As at 30 June 2022, the company recognized an impairment loss of PLN 13,091 thousand.

Financial data of the joint venture – Galeria Młociny Selected data from the statement of comprehensive income [PLN '000]

	30.06.2022
Fixed assets – investment property	1 808 584
Current assets	9 193
Cash	48 596
Total assets	1 866 372
Long-term liabilities	1 221 015
Short-term liabilities	52 640
Total liabilities	1 273 655
Equity	592 717
Share of Echo Investment S.A.	30,00%
Share of Echo Investment S.A.*	177 815

* The difference between the net investment value (PLN 177,815 thousand) and the value of Echo Investment Group's share in the net assets of Rosehill Investments Sp. z o.o. (Galeria Młociny) in the amount of PLN 199,760 thousand constitutes goodwill.

Financial data of the joint venture - Galeria Młociny Selected data from the statement of comprehensive income [PLN '000]

	1.01.2022 - 30.06.2022
Operating income	57 726
Operating costs	(19 679)
Revenue/cost - revaluation of property	9 879
Costs of general administrative	(1 183)
Costs of sales	(644)
Other income / operating costs	(36)
Financial income	808
Financial costs	(23 420)
Gross profit (loss)	23 451
Income tax	(8 612)
Net profit (loss)	14 839
Total comprehensive income	14 839
Share of the Echo Investment Group (%)	30,00%
Share of the Group in comprehensive income resulting from joint-venture	4 452

Projekt Echo 138 Sp. z o.o. Sp.k. (Towarowa 22)

On 23 December 2016 the Echo Investment Group and the EPP Group concluded a purchase agreement under which they purchased a property located at ul. Towarowa 22 in Warsaw. The property sales price was EUR 77.4 million: Echo Investment paid EUR 35.82 million and EPP's contribution amounted to EUR 41.58 million.

On 8 June 2022, the following transactions related to this property took place:

• − EPP N.V. increased the capital of the joint venture by EUR 36 million, and then resold all its shares to a new investor, i.e. AFI Europe N.V. (a wholly owned subsidiary of AFI Properties Ltd., a public company registered in Israel and listed on the Tel Aviv Stock Exchange),
• − Echo Investment and AFI Europe N.V. made a proportional withdrawal of contributions to the joint venture: Echo Investment in the amount of EUR 7.1 million, while AFI Europe N.V. - in the amount of EUR 16.6 million,
• − Echo Investment has signed a preliminary purchase agreement for a part of the property located at ul. Towarowa 22 (part of a joint venture), which is intended for the residential function, and made an advance payment on this plot of EUR 23.7 million, which is 50 percent of the value of the plot.

After the above transactions and as at the balance sheet date, i.e. 30 June 2022, the Echo Group owns 30 percent of shares, and AFI Europe N.V. 70 percent of shares in the joint venture.

Pursuant to the articles of association, all strategic financial and operational decisions (including in particular: purchase of a significant asset, conclusion of a lease agreement, etc.) require the unanimous consent of both shareholders. Echo Investment S.A. and AFI Europe N.V. are only responsible for their proportionate share of the purchase price. The share of this joint venture in the consolidated financial statements of the Echo Investment Group is accounted for using the equity method. The carrying value of the investment as at 30 June 2022, amounted to PLN 105,294 thousand. At the same time, since the beginning of the project, the Echo Group granted to Projekt Echo 138 Sp. z o.o. Sp.k. and Projekt Echo 138 Sp. z o.o. borrowings with a total value of PLN 9,014 thousand.

A summary of financial information in the joint venture is presented below.

Financial data of the joint venture - Towarowa 22 Selected data from the financial situation [PLN '000]

	30.06.2022
Fixed assets – investment property	579 949
Other fixed assets	5 448
Cash	3 795
Current assets	14 079
Total assets	603 271
Long-term liabilities	99 953
Short-term liabilities	152 327
Total liabilities	252 280
Equity	350 991
Share of the Echo Investment S.A.	30,00%
Elimination of mutual transactions between unit and the Group	(3)
Share of the Echo Investment S.A.	105 294

Financial data of the joint venture - Towarowa 22 Selected data from the statement of comprehensive income [PLN '000]

	1.01.2022 - 30.06.2022
Operating income	1 013
Operating costs.	(11 878)
Costs of general administrative	(122)
Other income / operating costs	(19 433)
Financial income and costs	(3 700)
Gross profit (loss)	(34 120)
Income tax	4 895
Net profit (loss)	(29 225)
Total comprehensive income	(29 225)
Share of the Echo Investment Group (%)	30,00%
Share of the Group in comprehensive income resulting from joint-venture	(8 768)

R4R Poland Sp. z o.o. (Resi4Rent)

On 20 July 2018 Echo Investment S.A. acquired 30 percent of shares and votes in a joint investment venture R4R Poland Sp. z o.o. The remaining 70 percent of shares and votes was acquired by R4R S.a.r.l. Pursuant to the articles of association, all strategic financial and operational decisions (including in particular: purchase of a significant asset, conclusion of a lease agreement, etc.) require the unanimous consent of both share-holders.

Pursuant to the agreement, the joint-venture operates as a platform of apartments for rent in Poland. As part of the project, buildings with apartments for rent were built primarily in four locations in Warsaw, Łódź and Wrocław. Under the agreement, Echo Investment S.A. provides planning, design and investment implementation services while R4R Poland Sp. z o.o. is responsible for the operational management of the platform.

By fulfilling its commitment to co-finance the project, Echo Investment S.A. provided capital to R4R Poland Sp. z o.o. acquiring new shares in the increased share capital:

• − PLN 41,354,269 in 2018,
• − PLN 9,434,700 in 2019,
• − PLN 3,474,000 in 2020,
• − PLN 13,149,000 in 2021.

At the same time, Echo Investment granted loans to R4R Poland Sp. z o.o.:

• − PLN 77,250,728 in 2019,
• − PLN 35,546,700 in 2020,
• − PLN 74,511,000 in 2021.

In 2018, 2019, 2020, 2021 and in H1 2022, new subsidiaries of R4R Poland Sp. z o.o. were created in order to develop projects located among others in Warsaw (Grzybowska, Taśmowa, Woronicza, Wilanowska), Gdańsk (Kołobrzeska, Zielony Trójkąt), Kraków (3 Maja, Jana Pawła II, Puszkarska, Romanowicza, Zabłocie, Młyńska), Poznań (Szczepanowskiego, Nowe Miasto, ul. Dmowskiego), Łódź (Wodna, Kilińskiego) and Wrocław (Grabiszyńska, Jaworska, Rychtalska, Kępa, Park Zachodni).

The share of the Echo Investment Group in the consolidated financial statements is recognised by using the equity method. A summary of financial information in the joint venture is provided below.

The carrying value of the investment as at 30 June 2022 amounted PLN 119,154 thousand.

Financial data of the joint venture – Resi4Rent Selected data from the financial situation [PLN '000]

	30.06.2022
Fixed assets – investment property	1 096 758
Fixed assets – investment properties under construction	620 466
Other fixed assets	3 799
Cash	78 672
Current assets	114 867
Total assets	1 914 562
Long-term liabilities	1 435 123
Short-term liabilities	57 969
Total liabilities	1 493 092
Equity	421 470
Share of the Echo Investment S.A.	30,00%
Elimination of mutual transactions between unit and the Group	(7 288)
Share of the Echo Investment S.A.	119 153

Financial data of the joint venture – Resi4Rent Selected data from the statement of comprehensive income [PLN '000]

1.01.2022 - 30.06.2022
36 866
19 100
(9 203)
(8 869)
664
32 503
71 061
(13 553)
57 508
57 508
30,00%
17 252

MidPoint71 office building in Wrocław

A subsidiary of Echo Investment S.A. - Midpoint 71 - Cornwall Investments Sp. z o.o. S.K.A. - concluded an agreement for the sale of the MidPoint71 office building in Wrocław on June 30, 2022 with a company of the Czech Trigea Real Estate Fund group.

The transaction value of EUR 109,265,359 plus VAT was reduced by the value of rent-free periods, rent reductions, and other costs, resulting in EUR 103,863,244 plus VAT. The amount to be paid at the closing of the transaction was further reduced by, among other things, the value of works related to the arrangement of unrented premises in the building. The amount of these works will be released in parts to the seller after they will be leased and the arrangement works will be completed. As a result, the price to be paid at the closing amounted to EUR 100,547,081 plus VAT.

West 4 Business Hub I office building in Wrocław

A subsidiary of Echo Investment S.A. - Project 17 - Grupa Echo Sp. z o.o. S.K.A. - concluded an agreement for the sale of the West 4 Business Hub I office building in Wrocław with a company of the Solida Capital group on 20 January 2022.

The transaction value of EUR 39,025,000 plus VAT was reduced by the value of rent-free periods, rent reductions, as well as other costs, and in the end it amounted to EUR 38,158,000 plus VAT. The amount to be paid at the closing was further reduced by the value of the arrangement and the removal of defects. As a result, the price payable at the closing amounted to EUR 35,380,000 plus VAT. In addition, after the closing, the seller will receive a separate consideration related to arrangement works on premises of tenants and the removal of defects, in the total amount of EUR 2,778,000 plus VAT.

The parties also entered into a building quality guarantee agreement, a rent guarantee agreement, a fit-out agreement and a good neighbor agreement. The basic proviThe parties also entered into building quality guarantee and rent guarantee agreements. The basic provisions of the rent guarantee agreement stipulate that the seller will cover rent payments and service charges to the buyer for the parts of the building that have not been leased and those that have been leased, but for which additional conditions have not been met (such as handing over to tenants).

After taking into account all costs related to the above transactions and revaluation of the fair value, the Group recognized a result of the sale of the investment property in the amount of (-) PLN 4,510 thousand in H1 2022. Taking into account the results recognized in the previous years and in the current year, the Group generated a total profit of PLN 104,714 thousand.

sions of the rent guarantee agreement state that the seller will cover rent payments and service charges to the buyer for the parts of the building that have not been leased and those that have been leased, but for which additional conditions (such for example, handing over to tenants) have not been met. The basic provisions of the fit-out agreement provide that the seller is appointed as the contractor for specified fit-out works in the premises of the building. The basic provisions of the good-neighbor agreement provide that certain rights and obligations of the parties in connection with future operations of the property and other plots of land owned by the seller are regulated.

After taking into account all costs related to the above transactions and revaluation of the fair value, the Group recognized a result of the sale of the investment property in the amount of PLN 386 thousand in H1 2022. Taking into account the results recognized in the previous years and in the current year, the Group generated a total profit of PLN 30,247 thousand.

Office buildings C, D and J in the Fuzja project in Łódź

A subsidiary of Echo Investment S.A. - Projekt Echo 130 Sp. z o.o. - concluded an agreement with a company of the KGAL Group for the sale of office buildings C, D and J, which are part of the Fuzja complex in Łódź, on June 30, 2022. Office buildings C and D are already completed, while building J is under construction, and the seller has agreed to complete it.

The parties also entered into quality guarantee agreements for all buildings, a rent guarantee agreement and a fit-out agreement. The basic provisions of the rent guarantee agreement stipulate that the seller will cover rent payments and service charges to the buyer for the parts of the buildings that have not been leased and those that have been leased and for which rent reductions or rentfree periods have been applied. The basic provisions of the fit-out agreement provide for the seller's obligation to carry out fit-out and construction works carried out in the property.

On the date of the agreement, the transaction value amounted to EUR 56,701,267 plus VAT. The amount payable at the closing was calculated based on the transaction value less, among other things, the amount of the value of rent-free periods, rents on areas not delivered to tenants, arrangement and construction works (including works related to the removal of possible defects), as well as other costs. As a result, the price payable at the closing amounted to EUR 42,989,316 plus VAT.

Land property at Hetmańska Street in Poznań

On 12 May 2022 a subsidiary of Echo Investment S.A. - Metropolis - Projekt Echo 121 Sp. z o.o. S.K.A. - concluded an agreement for the sale of an undeveloped property in Poznań at Hetmańska Street with Giant Invest Sp. z o.o., based in Poznań. with Giant Invest Sp. z o.o., based in Poznań, S.K.A. - concluded an agreement for the sale of the undeveloped property in Poznań, Hetmańska Street.on May 12, 2022 with Gianth Invest Sp. z o.o.,

After the closing, the seller will receive a separate consideration related to the execution of arrangement works within areas of tenants and the removal of any defects, in the total amount of EUR 3,055,768 plus VAT, as well as a consideration related to the construction and obtaining of the occupancy permit for building J and the removal of any defects, in the amount of EUR 4,100,889 plus VAT.

After taking into account all costs related to the above transactions and revaluation of the fair value, the Group recognized a result of the sale of the investment property in the amount of PLN 5,094 thousand in H1 2022. Taking into account the results recognized in the previous years and in the current year, the Group generated a total profit of PLN 43,497 thousand.

based in Poznań. The value of the transaction was PLN 79,000,000 plus VAT.

After taking into account all costs related to the transaction and revaluation of the fair value, the Group recognized a result of the sale of the investment property in the amount of PLN 13,826 thousand in H1 2022.

NOTE 21

Leasing

		Perpetual usufruct right			Other agreements
	Inventory	Investment properties	Investment properties under con struction	Assets held for sale	Fixed assets	Investment properties
Asset on right of use
As at 1 January 2022	81 322	3 101	14 518	2 512	48 015	44 490
Depreciation	(89)	-	-	-	(4 489)	-
Fair value measurement	-	-	253	-	-	(5 203)
Increases	1 193	100	3 624	51	1 774	23 333
Reductions	(14 521)	-	-	(660)	(80)	-
As at 30 June 2022	67 905	3 201	18 395	1 903	45 220	62 620

				Perpetual usufruct right	Other agreements
	Inventory	Investment properties	Investment properties under con struction	Assets held for sale	Fixed assets	Investment properties
Lease liabilities
As at 1 January 2022	77 091	3 101	14 396	2 512	61 025	66 869
Interest expense	2 282	98	613	115	4 194	993
Repayment of liabilities	(6 055)	-	(363)	(116)	(6 940)	(4 682)
Increases	2 179	-	3 498	-	1 543	23 745
Reductions	(10 329)	(99)	-	(659)	(728)	-
Reclassification	(851)	(355)	(410)	(62)	-	-
As at 30 June 2022	64 317	2 745	17 734	1 790	59 094	86 925

		Perpetual usufruct right			Other agreements
	Inventory	Investment properties	Investment properties under con struction	Assets held for sale	Fixed assets	Investment properties
Lease liabilities
short-term	64 317	200	1 237	1 790	20 218	15 679
long term	-	2 545	16 497	-	38 876	71 246

NOTE 22

Transactions with related entities [PLN '000]

	30.06.2022	31.12.2021
Results of transactions with owners
Receivables from loans granted	15 436	41 920
Trade liabilities	-	1 900
Incurred costs	9 266	17 595
Results of transactions with related entities
Trade receivables	2 915	3 283
Recognized revenue	2 893	5 641
Results of transactions with members of the Management Board
Recognized revenue	1 953	1
Advances received	599	794
Incurred costs	2	46
Results of transactions with jointly controlled entities
Receivables from loans granted	299 870	291 284
Trade receivables	7 803	8 611
Liabilities	-	5
Incurred costs	100	3 397
Recognized revenue	9 400	65 160
Advance payments for the purchase of land	109 633	-

Members of the Management Board are entitled to the additional incentive remuneration in the form of a longterm bonus. As at 30 June 2022, the Group recognized a provision in the amount of PLN 6,015 thousand in the half-annual financial statements for the management board bonus based on the share price. The impact on the Company's financial result due to changes in the amount of this provision in the first half of 2022 was PLN 3,044 thousand gross to increase the result. Details are presented in the Management Board Report in the point "Remuneration of the Management Board and Supervisory Board".

Change in allowances for expected credit losses – receivables [PLN '000]

	30.06.2022	31.12.2021
As at the beginning of the period	482	391
Increases due to
– creation of a write-of	908	91
Balance of allowances at the end of the period	1 390	482

Information on financial statement of the Group

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 6-month period ended 30 June 2022 and comparative financial data as at 31 December 2021 and for the 6-month period ended 30 June 2021.

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 30 June 2022, the Capital Group consisted of 174 subsidiaries consolidated with the full method and 35 jointly controlled companies consolidated with 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). 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, 2021. 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 04.

Establishment of a business continuation

The consolidated financial statements of the Group for the first half-year of 2022 were prepared on the assumption that the business will continue in the foreseeable future, bearing in mind that there are no circumstances that would indicate a threat to the continuation of operations by the Group's companies.

Approval of financial statements

These consolidated financial statements were approved for publication by the Management Board on 27 September 2022.

02 Echo Investment Group

Echo Investment S.A. plays the most important role in the structure of the Group, which it supervises, co-executes and provides financial resources for the implementation of development projects. The vast majority of companies being part of the Group were established or purchased in order to execute specific investment tasks, including those resulting from the construction process of a specific development project.

As at 30 June 2022, the Capital Group consisted of 174 subsidiaries consolidated with the full method and 35 jointly controlled companies consolidated with the equity method.

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.

Changes in the structure of the group 1st half-year 2022

Decrease of the group

Enity	Action	Date	Share capital [in PLN]
Projekt CS Sp. z o.o. w likwidacji	Resolution on liquidation	1.02.2022	5 000
Projekt Echo 93 Sp. z o.o. w likwidacji	Resolution on liquidation	1.02.2022	50 000
Projekt Echo 104 Sp. z o.o. w likwidacji	Resolution on liquidation	1.04.2022	50 000
Projekt 132 - City Space - GP Sp. z o.o. Sp.k.	Agreement on the transfer the company to City Space Management Sp. z o.o.	18.05.2022	5 000
Projekt 133 - City Space - GP Sp. z o.o. Sp.k.	Agreement on the transfer the company to City Space Management Sp. z o.o.	13.04.2022	5 000
Aquarius - City Space - GP Sp. z o.o. Sp.k.	Agreement on the transfer the company to City Space Management Sp. z o.o.	18.05.2022	5 000
Projekt Echo 119 Sp. z o.o. w likwidacji	Removal from the register of entrepreneurs	17.05.2022	25 000
Gleann Sp. z o.o. w likwidacji	Removal from the register of entrepreneurs	20.05.2022	5 000
Shanklin Sp. z o.o. w likwidacji	Removal from the register of entrepreneurs	15.06.2022	5 000

Other changes

Entity	Action	Date
Projekt 139 – Grupa Echo Sp. z o.o. Sp.k.	Change of the limited partner in Perth Sp. z o.o. to Echo Investment S.A.	14.01.2022
Echo - Galaxy Sp. z o.o. S.K.A.	Change of the company's owner to Galaxy - Grupa Echo Sp. z o.o. S.K.A.	17.01.2022
Avatar - Projekt Echo - 119 Sp. z o.o. S.K.A.	Change of the company's owner to Avatar - Grupa Echo Sp. z o.o. S.K.A.	27.01.2022
PHS - Projekt CS Sp. z o.o. Sp.k.	Change of the company's owner to PHS - Grupa Echo Sp. z o.o. Sp.k.	29.03.2022
Babka Tower - Projekt Echo 93 Sp. z o.o. Sp.k.	Change of the company's owner to Babka Tower – Grupa Echo Sp. z o.o. Sp. k.	21.06.2022
Archicom Nieruchomości 16 Sp. z o.o.	Change of the company's owner to Archicom Poznań Sp. z o.o.	21.06.2022
Echo - Opolska Business Park Sp. z o.o. Sp.k.	Change of the general partner in Echo – Opolska Business Park Sp. z o.o. to Grupa Echo Sp. z o.o.	28.06.2022
Park Rozwoju III - Projekt Echo 112 Sp. z o.o. Sp.k.	Change of the general partner in Projekt Echo 112 Sp. z o.o. to Grupa Echo Sp. z o.o.	28.06.2022
Q22 - Projekt Echo 128 Sp. z o.o. Sp.k.	Change of the general partner in Projekt Echo 128 Sp. z o.o. to Grupa Echo Sp. z o.o.	28.06.2022
Sagittarius - Projekt Echo 113 Sp. z o.o. Sp.k.	Change of the general partner in Projekt Echo 113 Sp. z o.o. to Grupa Echo Sp. z o.o.	28.06.2022
Symetris - Projekt Echo 131 Sp. z o.o. Sp.k.	Change of the general partner in Projekt Echo 131 Sp. z o.o. to Grupa Echo Sp. z o.o.	28.06.2022

Photo: Warsaw Breweries

03 Material estimates and judgments of the Management Board of the Company

The preparation of the financial statements requires the Management Board of the Company to adopt certain assumptions and make estimates and judgments that affect the figures disclosed in the financial statements. Assumptions and estimates are based on the best knowledge of current and future events and activities, however, actual results may differ from those anticipated. Estimates and related assumptions are subject to ongoing verification. Change in accounting estimates is recognized in the period in which they were changed – if it concerns only this period, or in the current and future period – if the changes concern both the current and future period.

The main fields in which the Management Board's estimates have a material impact on the financial statements and key sources of uncertainty as at the balance sheet date are:

Investment properties under construction / Investment properties / Assets held for sale

Investment real estate includes facilities leased to clients by companies which are part of the Group. The fair value of investment real estate is classified at level 3 in the fair value hierarchy. There were no transfers between the levels.

After a change in the strategy of the Echo Investment Group, the Group most often measures properties at fair value during construction and / or commercialisation. The property valuation is based on the income method using the discounted cash flow technique, which takes

into account future proceeds from rent (including rent guarantees), the sale of real estate and other expenditure to be incurred. The yield used to determine residual values recognized in cash flows result from the Management Board's estimates based on preliminary agreements for the sale of real estate, letters of intent, external valuations of appraisers or their familiarity with the market. The rates used also take into account the risk, and the level of risk is assessed individually for each property subject to its status.

The fair value of real estate properties which are almost 100 percent commercialised and generate a fixed income is determined by the unit according to the income method, using simple capitalization technique as the quotient of the project's net operating income (NOI) and the yield, or using the value resulting from external valuation, a preliminary contract for the sale of real estate, a letter of intent or a purchase offer, provided they exist.

The fair value measurement involves estimates of the inputs to the measurement. The estimated fair value determined by the Group would increase / (decrease) if the assumed discount rate and/or yield rate were lower / (higher). Any significant change in those inputs to a different amount might result in the fair value measurement set at a significantly higher or lower level.

Presented below is how a change in the yield affects a change in the fair value of a property expressed as a percentage.

Change in yield	-10%	-5%	-1%	+1%	+5%	+10%
Change in the fair falue of a property	13,2%	6,2%	1,2%	-1,2%	-5,6%	-10,8%

Investment property under construction

According to the valuations prepared by the Group, the value of investment properties under construction as at 30 June 2022 amounted to PLN 733,554 thousand. It consisted of real estate measured at fair value (PLN 196,565 thousand) and other properties (PLN 536,989 thousand) valued at the purchase value that best reflects the fair value of the asset at the balance sheet date.

The table below presents an analysis of investment properties under construction carried at fair value in the consolidated statement of financial position according to the levels of the fair value hierarchy:

Investment property under construction – fair value hierarchy levels

	Level 1*	Level 2**	Level 3***	Fair value - total
30.06.2022
Office	-	-	196 565	196 565
Total	-	-	196 565	196 565

* Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities

** Level 2 - valuation techniques where the lowest level inputs that are relevant to the determination of fair value are directly or indirectly observable

*** Level 3 - valuation techniques where the lowest level inputs that are relevant to the measurement of fair value are unobservable.

The key input data and assumptions adopted for investment properties measured using the income method are as follows:

Investment property under construction – valuation techniques

Valuation	Valuation technique	Discount rate %	Capitalization %
196 565	income method	7,20%	6,70%
196 565

investment properties under construction, the companies of the Group take into account the assessment of the debt

The value of investment properties under construction as at 31 December 2021 amounted to PLN 745,370 thousand. It consisted of properties valued at fair value (PLN 232,152 thousand) and other properties (PLN 513,218 thousand).

burden associated with the debt incurred to execute a specific investment project.

The table below presents an analysis of investment properties under construction carried at fair value in the consolidated statement of financial position according to the levels of the fair value hierarchy:

Investment properties under construction – fair value hierarchy levels

	Level 1*	Level 2**	Level 3***	Fair value - total
31.12.2021
Office	-	-	232 152	232 152
Total	-	-	232 152	232 152

* Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities

** Level 2 - valuation techniques where the lowest level inputs that are relevant to the determination of fair value are directly or indirectly observable

*** Level 3 - valuation techniques where the lowest level inputs that are relevant to the measurement of fair value are unobservable.

The key input data and assumptions adopted for investment properties under construction measured using the income method are as follows:

Investment property under construction – valuation techniques

	Valuation	Valuation technique	Discount rate %	Capitalization %
31.12.2021
Office	232 152	income method	7,20% - 8,00%	6,70% - 7,50%
Total	232 152

Investment property

As at 30 June 2022, the value of investment properties was PLN 838,604 thousand. It consisted of real estate measured at fair value (PLN 838,160 thousand) and other properties (PLN 444 thousand).

The table below presents an analysis of investment properties carried at fair value in the consolidated statement of financial position according to the levels of the fair value hierarchy:

Investment property – fair value hierarchy levels

	Level 1*	Level 2**	Level 3***	Fair value - total
30.06.2022
Retail	-	-	652 395	652 395
Office	-	9 960	113 184	123 144
Office – City Space	-	-	62 621	62 621
Total	-	9 960	828 200	838 160

* Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities

** Level 2 - valuation techniques where the lowest level inputs that are relevant to the determination of fair value are directly or indirectly observable

*** Level 3 - valuation techniques where the lowest level inputs that are relevant to the measurement of fair value are unobservable.

The key input data and assumptions adopted for investment properties measured using the income method are as follows:

Investment property – valuation techniques

	Valuation	Valuation technique	Discount rate %	Capitalization %
30.06.2022
Retail	652 395	income method	7,00%	6,50%
Office	113 184	income method	8,00%-9,00%	7,50-9,00%
Office – City Space	62 621	income method	10,26%	-
Office	9 960	other method	-	-
Total	838 160

According to the valuations prepared by the Group, the value of investment properties as at 31 December 2021 amounted to PLN 811,091 thousand. It consisted of properties measured at fair value (PLN 810,646 thousand) and other properties (PLN 445 thousand).

The table below presents an analysis of investment properties carried at fair value in the consolidated statement of financial position according to the levels of the fair value hierarchy:

Investment property – fair value hierarchy levels

	Level 1*	Level 2**	Level 3***	Fair value - total
31.12.2021
Retail	-	-	639 803	639 803
Office	-	-	126 353	126 353
Office – City Space	-	-	44 490	44 490
Total	-	-	810 646	810 646

* Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities

** Level 2 - valuation techniques where the lowest level inputs that are relevant to the determination of fair value are directly or indirectly observable

*** Level 3 - valuation techniques where the lowest level inputs that are relevant to the measurement of fair value are unobservable.

The key input data and assumptions adopted for investment properties measured using the income method are as follows:

Investment property – valuation techniques

	Valuation	Valuation technique	Discount rate %	Capitalization %
31.12.2021
Retail	639 803	income method	7,00%	6,50%
Office	116 394	income method	6,50%-9,00%	6,50%-9,00%
Office – City Space	44 490	income method	3,79%	-
Office	9 959	other method	-	-
Total	810 646

Assets held for sale

The value of assets held for sale as at 30 June 2022 amounted to PLN 834,654 thousand. It consisted of real estate valued at fair value (PLN 799,404 thousand) and real estate valued at the value of expenditure (PLN 35,250 thousand), valued at the purchase amount that best reflects the fair value of the asset as of the balance sheet

date (applies to a land property on Nowomiejska Street in Gdańsk).

The table below presents an analysis of assets held for sale carried at fair value in the consolidated statement of financial position according to the levels of the fair value hierarchy:

Assets held for sale – fair value hierarchy levels

	Level 1*	Level 2**	Level 3***	Fair value - total
30.06.2022
Office	-	-	799 404	799 404
Total	-	-	799 404	799 404

* Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities

** Level 2 - valuation techniques where the lowest level inputs that are relevant to the determination of fair value are directly or indirectly observable

*** Level 3 - valuation techniques where the lowest level inputs that are relevant to the measurement of fair value are unobservable.

The key input data and assumptions adopted for assets held for sale measured using the income method are as follows:

Assets held for sale

– valuation techniques

	Valuation	Valuation technique	Discount rate %	Capitalization %
30.06.2022
Office	799 404	income method	7,25% - 8,05%	6,75% - 7,55%
Total	799 404

Under the 'assets held for sale' item the Group presents the properties with reference to which a decision was made to sell them within 12 months. This item includes completed projects as well as ongoing projects and investment plots.

As at 31 December 2021, the value of assets held for sale amounted to PLN 1,381,451 and consisted of office buildings measured at fair value (PLN 1,347,498 thousand) and a real estate valued at the value of expenditure (PLN 33,953 thousand).

The table below presents an analysis of assets held for sale carried at fair value in the consolidated statement of financial posit

Assets held for sale – fair value hierarchy levels

	Level 1*	Level 2**	Level 3***	Fair value - total
31.12.2021
Office	-	-	1 283 618	1 283 618
Retail	-	-	63 880	63 880
Total	-	-	1 347 498	1 347 498

* Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities

** Level 2 - valuation techniques where the lowest level inputs that are relevant to the determination of fair value are directly or indirectly observable

*** Level 3 - valuation techniques where the lowest level inputs that are relevant to the measurement of fair value are unobservable.

The key input data and assumptions adopted for investment properties under construction measured using the income method are as follows:

Assets held for sale – valuation techniques

	Valuation	Valuation technique	Discount rate %	Capitalization %
31.12.2021
Office	1 283 618	income method	6,85% - 7,90%	6,35% - 7,40%
Retail	63 880	other method	-	-
Total	1 347 498

Securing revenue for rent-free periods (Master Lease)

When an investment property is selling, it occurs that buildings are not fully commercialized at the time of sale. The price is calculated based on the project's projected revenue (NOI) while the Group signs a contract securing the rent-free periods (master lease). Securing rental proceeds (master lease) is estimated on the basis of information obtained from the office project leasing team, accepted by the Member of the Management Board responsible for this segment of activity, concerning:

• − terms of signed lease agreements,
• − assumptions for vacant areas, such as expected transfer dates.

The following is calculated on this basis:

• − for vacancies: the rent that would be paid by the potential future tenant,
• − for signed contracts: rental holidays (if any).

The estimate is made from the balance sheet date for the period of securing rental proceeds. In each calculated month:

• − if a vacancy is expected on an area in a given month, the cost of securing rental revenue is a full rent which is provided for on this area;
• − if it is expected that a given area will be transferred and the tenant has a rental holiday, the cost of securing the rental proceeds related to this area in a given month is equal to the value of rental holidays;
• − if it is expected that the tenants' rental holidays are over in a given month, the cost of securing the rental proceeds is equal to zero.

The basic rent and the maintenance fees are calculated in this way, the exception being that there are no rental holidays on maintenance fees. The total of these values discounted as at the balance sheet date is the value of the reserve for securing rent-free periods (master lease). The reserve for securing rent-free periods (master lease) is calculated for projects sold.

As at 30 June 2022, the value of reserves established to secure rent free periods amounted to PLN 42,806 thousand.

As at 31 December 2021 the value of reserves established to secure rent free periods amounted to PLN 16,344 thousand.

Fit-out works

The provision for fit-out works is provided for areas of buildings sold. In case of areas leased at the time of creating the provision, its amount is estimated on the basis of works remaining to be invoiced. With respect to areas not leased as of the balance sheet date, the provision is determined as a product of the vacant area and the rate per square meter (estimated by the team responsible for leasing and fitting-out of areas). In the event that a buyer retains a portion of the price in a blocked account in order to complete the fitting-out, the provision is made to cover any difference between the amount retained and the planned expenditures to be incurred.

As of 30 June 2022, the value of provisions created for fit-out works amounted to PLN 49,234 thousand.

As of 31 December 2021, the value of provisions created for fit-out works amounted to PLN 9,455 thousand.

Profit share from sale of real estate

A profit share is a share in the minority investor's profit. It results from concluded agreements according to which the investor is obliged to pay the capital constituting a share in the investment. The capital is contributed to the entities which perform the project in the form of a loan or an issue participating bonds. At the time of the sale of the project, the capital is returned to the investor along

with due profit share (calculated as the sale price - costs). The provision for the profit share is estimated for projects valued using the income method in proportion to the released profit on real estate. Therefore, the first provision for the profit share is created along with the first valuation of the project at fair value.

As at 30 June 2022, the value of reserves established to secure rent free periods amounted to PLN 40,003 thousand.

As at 31 December 2021, the value of reserves established to secure rent free periods amounted to PLN 42,425 thousand.

Inventory

When estimating the amount of the write-down on inventories held by the Group as at the balance sheet date, information is analyzed according to the current market prices obtained from the development market, regarding the expected sale prices and current market trends, as well as information resulting from the preliminary sales agreements concluded by the Group.

Assumptions used in the calculation of the writedown are mainly based on valid market prices of real estate in a given market segment. In the case of land included in the item of inventories, the value of write-downs results from the suitability of the given land for the needs of the current and future operations of the Group estimated by the Management.

Data regarding write-downs updating the value of inventories to the net value possible to obtain and reversing write-downs on this account are presented in note 8.

Financial instruments valued according to fair value

The Group uses its judgment when selecting valuation methods and makes assumptions based on market conditions existing at each balance sheet date. In particular, concluded forward contracts and concluded option agreements are valued on the basis of valuations provided by banks, which use such data as current exchange rates, their historical volatility and interest rates on deposits (WIBOR, EURIBOR) when calculating them.

Due to the fact that the interest rate on financial instruments is related to the WIBOR and EURIBOR rates, the Group's Management Board estimates that their fair value is approximately equal to the book value, taking into account the accrued interest.

As at 30 June 2022, the Group did not change the valuation principles for financial instruments, there were no changes in the classification or movements between levels of the fair value hierarchy. There is no difference between the carrying value and the fair value of financial instruments.

Asset from deferred income tax

The Group recognizes deferred tax asset based on the assumption that tax profit will be achieved in the future and it will be possible to use it. This assumption would be unjustified if the tax results deteriorated in the future.

The Management Board verifies the estimates adopted for the probability of the recovery of deferred tax assets based on changes in the factors considered in determining them, new information and past experience.

Goodwill impairment test

The Group conducted a goodwill impairment test as at 31 December 2021. As at 30 June 2022, the Group's Management Board re-analyzed the assumptions made in the test conducted at the end of 2021 and found no need to amend these assumptions. As a consequence, the Management Board's estimate of the goodwill write-downs did not change.

Trademark impairment test

The Group conducted an impairment test of the Archicom trademark as at 31 December 2021, as described in the annual consolidated financial statements for 2021. This test did not indicate an impairment of this asset. As at 30 June 2022, the Group's Management Board re-analyzed the assumptions made in the test conducted at the end

of 2021 and found no need to amend these assumptions. Consequently, the Management Board has not identified any premises for impairment of the Archicom trademark.

Expected credit losses

As at 30 June 2022, the Group has not changed its accounting policy or the methodology for determining expected credit losses with respect to trade receivables, loans & guarantees granted and cash. In the opinion of the Management Board, the adopted insolvency ratios and default ratios presented in the annual consolidated financial statements of the Echo Investment Group for 2021 did not change significantly in the first half of 2022 and, as a result, were used to calculate write-offs due to expected credit losses on 30 June 2022. As a consequence, the estimate of expected credit losses has not changed significantly compared to the data from the annual consolidated financial statements of the Echo Group for 2021.

Long-term incentive program

The Group has a long-term incentive program that meets the definition of a program based on shares in IFRS 2 "Share-based payment", which covers members of the Management Board and the President of the CEO of the subsidiary Archicom S.A. Due to the Group's expectation of settling the program in the form of cash, the liability amount and the cost were recognized in the period under general and administrative expenses. The valuation of the program is based on the 'Monte Carlo' model and variables such as the share price, the period until the end of the program or the expected share price at the end of the program.

04 New standards and interpretations effective from 1 January 2022

The following standards and amendments to standards became effective on 1 January 2022:

Amendments to IAS 16

"Property, Plant and Equipment - the prohibition from deducting from the cost of an item of property, plant and equipment any proceeds from selling items produced while preparing the asset to begin operating in accordance with management's intentions."

Amendments to IFRS 3

"Business Combinations" - the update of the Conceptual Framework in IFRS standards

Amendments to IAS 37

"Provisions, Contingent Liabilities and Contingent Assets" - the clarification on whether an agreement is an onerous contract

Annual amendments to IFRS 2018 - 2020

(IFRS 1 "First-time Adoption of International Financial Reporting Standards", IFRS 9 "Financial Instruments", IAS 41 "Agriculture" and to illustrative examples to IFRS 16 "Leases")

The impact of the above amendments to standards and interpretations is being analyzed by the Management Board. The above amendments do not affect the Consolidated Financial Statements and the Interim Condensed Consolidated Financial Statements.

Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 related to the IBOR reform

Effective 1 January 2021, amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4, IFRS 16 regarding the reform of the interest rate benchmark (the IBOR reform) - Phase 2, approved for use by the European Union, are in effect.

The Group monitors amendments to applicable regulations on an ongoing basis and analyzes the possible impact on its consolidated financial statements. The Group uses the EURIBOR and WIBOR reference rates, which continue to be quoted and in conformity with the BMR regulation (Benchmark Market Resolution).

05 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 IFRS 4 "Insurance Contracts" entitled "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 on the accounting policy applied

It is 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 the Accounting Policy Applied

It is effective for annual periods beginning on or after 1 January 2023.

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 30 March 2021 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.

IFRS 17 "Insurance Contracts" as amended to IFRS 17

It is effective for annual periods beginning on or after 1 January 2023.

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 2023.

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.

Amendments to IAS 12 Income Taxes (issued on 7 May 2021)

Until the date of approval of these financial statements, not approved by the EU - applicable to annual periods beginning on 1 January 2023.

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.

06 Significant events after the balance sheet day

Issue of bonds worth PLN 65 million in total for individual investors

In Q3 2022, Echo Investment issued two series of bonds for individual investors.

Series	N	O
Start of subscription	27 June 2022	6 September 2022
End of subscription		7 July 2022 20 September 2022
Value	PLN 40 mln	PLN 25 mln
Reduction rate	37%	1%
Maturity	4 years	4 years
Interest	WIBOR 6M + margin 4%	WIBOR 6M + margin 4%

The bonds are not secured. N-series is listed on Warsaw Stock Exchange, O-series will also be introduced to trading on the regulated market. The money raised will be spent on business development.

The offering agent was Powszechna Kasa Oszczędności Bank Polski S.A. - the Brokerage House in Warsaw.

The N and O-series bonds public offering was carried out on the basis of the prospectus approved by the Polish Financial Supervision Authority on 26 November 2021 and supplements to the prospectus.

Tender offer for the shares of Archicom S.A.

On 23 August 2022, the majority shareholders of Archicom S.A., i.e. Echo Investment S.A. and DKR Echo Investment Sp. z o.o., announced a voluntary tender offer for 8,724,854 shares of Archicom S.A. entitling them to a total of 10,838,468 votes at the General Meeting of Shareholders. The tender offer concerns:

• a. 6,611,240 A-series ordinary bearer shares, of which one share entitles the holder to one vote at the General Meeting, entitling the holder to exercise a total of 6,611,240 votes at the General Meeting, which in total represent approximately 20.74 percent of the total number of votes and approximately 25.75 percent of the total number of shares in the Company's share capital. The shares are listed and traded on the regulated market operated by the Warsaw Stock Exchange; and
• b. 2,113,614 B1-series registered shares, of which one share entitles the holder to two votes at the General Meeting, entitling the holder to exercise a total of

4,227,228 votes at the General Meeting, representing a total of approximately 13.26 percent of the total number of votes and approximately 8.23 percent of the total number of shares in the Company's share capital, dematerialized and registered with the KDPW (the Central Securities Depository of Poland).

Echo Investment intends to increase its majority stake in Archicom to continue the company's current direction and expand the scale of its operations. Archicom is to continue launching new residential projects to increase its value and competitiveness in the real estate market, while developing a strategic cooperation with its main shareholder in the residential segment in relation to land acquisition, designing, managing construction and sales processes, as well as in terms of supporting functions such as IT, accounting and human resources. In particular, the aim is to take advantage of cost synergies, implement

proven business solutions, develop the exchange of knowhow and increase the competencies of managers and employees.

In addition, it is indicated that there is no intention to delist the shares of Archicom S.A. from the WSE in the near future.

Subscriptions began on 24 August and closed on 22 September 2022.

Pledge on shares of Archicom S.A. held by Echo Investment Group

DKR Echo Invest S.A. and DKR Echo Investment Sp. z o.o. - companies of the Echo Investment Group which are direct shareholders of Archicom S.A. - pledged shares of Archicom S.A. to Bank Pekao S.A. on 22 July 2022.

Registered and financial pledges were placed on:

• 1. 4,843,950 dematerialized ordinary bearer shares, ISIN code PLARHCM00016, with a nominal value of PLN 10 each, having a total nominal value of PLN 48,439,500, listed on the Stock Exchange, which belong to DKR Echo Invest S.A.,
• 1. 8,007,649 dematerialized ordinary bearer shares, ISIN code PLARHCM00016, with a nominal value of PLN 10 each, having a total nominal value of PLN 80,076,490, listed on the Stock Exchange, which belong to DKR Echo Investment Sp. z o.o.,

The Management Board of Archicom estimated on 31 August 2022 that the successful completion of the tender offer for the sale of the Company's shares, announced by Echo Investment and DKR Echo Investment, will have a positive impact on Archicom's interest and will positively affect its further development. The Management Board stated that the proposed price of PLN 18.3 per share is in the lower range of the fair value.

1. 4,093,888 dematerialized registered voting preference shares, ISIN code PLARHCM00081, with a nominal value of PLN 10 each, having a total nominal value of PLN 40,938,880, listed on the Stock Exchange, which belong to DKR Echo Investment Sp. z o.o.

The Management Board of Archicom S.A. agreed to exercise the pledgee's (Bank Pekao S.A.) voting rights attached to the pledged shares in Archicom S.A. upon the occurrence of an event of default and receiving by Archicom S.A. a copy of the bank's notice of its intention to exercise its rights under the pledge agreement, and for the duration of the pledge as well as under the terms and conditions as provided for in the pledge agreement.

CHAPTER 3 Condensed interim standalone financial statement of Echo Investment S.A.

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

	Note	30.06.2022 (unaudited)	31.12.2021
Assets
Non-current assets
Intangible assets		3 489	2 375
Property, plant and equipment	1	43 893	44 078
Investment property	2	445	445
Investment in subsidiaries, jointly controlled	3	1 599 695	1 487 983
Long-term financial assets	4	54 254	48 810
Loans granted	5	1 289 444	1 379 100
Derivative financial instruments	6	33 732	18 922
Lease receivables	7	39 686	39 182
		3 064 638	3 020 895
Current assets
Inventory	8	293 724	307 479
Current tax assets		5 409	2 234
Other taxes receivable		2 615	8 134
Trade and other receivables	9	84 222	47 818
Short-term financial assets	4	63 723	62 551
Loans granted	10	246	262
Other financial assets *		229	2 404
Cash and cash equivalents		36 419	74 239
		486 587	505 121
Total assets		3 551 225	3 526 016

* Mainly cash in escrow accounts paid by residential clients

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

	Note	30.06.2022 (unaudited)	31.12.2021
Equity and liabilities
Equity attributable to equity holders
Share capital		20 635	20 635
Supplementary capital		704 295	704 295
Dividend fund		336 961	413 912
Accumulated profit		-	(14 000)
		116 623	27 842
		1 178 514	1 152 684
Long-term liabilities
Credits, loans, bonds	11	1 262 788	1 332 786
- including subsidiaries:		125 203	226 438
Deferred tax liabilities	12	10 954	16 677
Deposits and advances received	11	3 267	1 243
Leasing	11	67 091	70 778
Derivative financial instruments	11	-	6 970
Other liabilities	11	6 310	9 059
		1 350 410	1 437 513
Short-term liabilities
Credits, loans, bonds	14	633 804	621 479
- including subsidiaries:		71 789	105 874
Income tax payable	13	2	23
Other taxes liabilities	13	11 476	8 689
Trade payable	13	12 377	21 824
Deposits and advances received	13	178 221	188 693
Leasing	13	61 055	62 598
Short-term provisions	15	10 892	7 856
Other liabilities	13	114 474	24 657
		1 022 301	935 819

Total equity and liabilities 3 551 225 3 526 016

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

	Nota	1.01.2022- 30.06.2022 (unaudited)	1.01.2021- 30.06.2021 (unaudited)	1.04.2022- 30.06.2022 (data not to review)	1.04.2021- 30.06.2021 (data not to review)
Revenues	17	114 810	166 868	62 634	103 956
Cost of sales		(59 530)	(131 276)	(29 518)	(87 478)
Gross profit		55 280	35 592	33 116	16 478
Administrative costs associated with project implementation		(10 845)	(4 556)	(6 929)	(2 776)
Selling expenses		(9 313)	(12 304)	(5 663)	(7 391)
General and administrative expenses		(30 960)	(43 655)	(10 871)	(21 247)
Other operating income	18	189 678	84 958	72 689	20 737
- including: interest and adjusted purchase price (SCN) valuation on loans and bonds		45 996	19 222	45 979	19 222
Other operating expenses		(9 365)	(4 664)	(7 183)	(2 895)
Operating profit		184 475	55 371	75 159	2 906
Financial income	19	10 541	14 861	10 541	14 635
Financial cost	19	(81 643)	(39 976)	(47 100)	(20 924)
Profit before tax		113 373	30 256	38 600	(3 383)
Income tax		3 250	(540)	(976)	504
Net profit (loss)		116 623	29 716	37 624	(2 879)
Net profit (loss)		116 623	29 716
Weighted average number of ordinary shares		412 690 582	412 690 582
Profit (loss) per one ordinary share (in PLN)		0,28	0,07
Diluted weighted average number of ordinary share		412 690 582	412 690 582
Diluted profit per one ordinary share (PLN)		0,28	0,07

Condensed interim standalone statement of financial result and other comprehensive income [PLN '000]

	Note	1.01.2022- 30.06.2022	1.01.2021- 30.06.2021
Net profit		116 623	29 716
Other comprehensive income		-	-
Other comprehensive income, net of tax		-	-
Total comprehensive income		116 623	29 716

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

As at 1 January 2022 20 635 704 295 413 912 13 842 Changes during the period: Distribution of the result from previous years - - 13 842 (13 842) - Dividend approved for payment - - (90 793) - - Net profit for the period - - - - 116 623 Total changes - - (76 951) (13 842) 116 623 As at 30 June 2022 20 635 704 295 336 961 - 116 623 As at 1 January 2021 20 635 1 054 295 186 051 57 825 - Changes during the period: Distribution of the result from previous years - (350 000) 350 000 - - Dividend paid* - - (122 139) (57 825) (14 000) Net profit for the period - - - - 27 842 Changes in total - (350 000) 227 861 (57 825) 13 842		Share capital	Supplementa ry capital	Dividend fund	Profit (loss) from previous years	Profit for the current year	Own equity attributable to share holders - total
							1 152 684
							-
							(90 793)
							116 623
							25 830
							1 178 514
							1 318 806
							-
							(193 964)
							27 842
							(166 122)
	As at 31 December 2021	20 635	704 295	413 912	-	13 842	1 152 684

* Pursuant to Resolution No. 6 of the Ordinary General Meeting of Shareholders, Echo Investment S.A. paid dividends to shareholders in the amount of PLN 90,791,928.04, which constituted the amount of PLN 0.22 per share. The dividend was paid on 12 July 2022.

Condensed interim standalone cash flow statement [PLN '000]

	1.01.2022- 30.06.2022 (unaudited)	1.01.2021- 30.06.2021 (unaudited)
Operating cash flow – indirect method
I. Profit before tax	113 373	30 256
II. Adjustments	(111 199)	(44 261)
Depreciation	4 739	4 431
Foreign exchange gains / (losses)	4 295	(12 330)
Interest and profit sharing (dividends)	(126 232)	(46 536)
Profit / (loss) on revaluation of assets and liabilities	15 698	10 208
Profit (loss) on sale of fixed assets and investment properties	(1)	(34)
Profit / (loss) on realization of financial instruments	(9 698)
III. Changes in working capital	(29 932)	80 942
Change in provisions	3 036	(2 125)
Change in inventory	15 207	44 745
Change in receivables	(25 135)	19 316
Change in short–term liabilities, except for loans and borrowings	(25 215)	(7 516)
Change in restricted cash	2 175	26 522
IV. Net cash generated from operating activities (I +/- II +/- III)	(27 758)	66 937
V. Income tax paid	(5 668)	(926)
VI. Net cash generated from operating activities (IV+/-V)	(33 426)	66 011
Cash flows from investing activities
I. Inflows	386 420	370 093
Disposal of intangible assets and PP&E	2	22
From financial assets, including:	386 418	370 071
a) in affiliated entities	386 418	370 071
dividends and profit sharing	129 000	53 607
repayment of loans granted	241 506	278 357
interest	15 020	12 120
redemption of certificates	892	702
other inflows from financial assets	-	25 285
II. Outflows	(245 899)	(475 152)
Purchase of intangible assets and PP&E	(4 561)	(367)
On financial assets, including:	(123 949)	(474 785)
a) in affiliated entities	(123 949)	(474 785)
acquisition of financial assets	(5)	(257 786)
loans granted	(123 944)	(216 999)
Other investment outflows	(117 389)	-
Net cash flow from investment activities	140 521	(105 059)
Net cash flow from financing activities (I – II)
I. Inflows	140 000	246 088
Loans and borrowings	-	51 088
Issue of debt securities	140 000	195 000

Condensed interim standalone cash flow statement [PLN '000]

	1.01.2022- 30.06.2022 (unaudited)	1.01.2021- 30.06.2021 (unaudited)
II. Outflows	(284 915)	(207 890)
Repayment of loans and borrowings	(149 987)	(16 188)
Redemption of debt securities	(81 410)	(155 000)
Payments of liabilities under lease contracts	(6 694)	(4 921)
Interests	(43 702)	(31 150)
Other investment outflows	(3 122)	(631)
Net cash flow from financing activities	(144 915)	38 198
Total net cash flows	(37 820)	(850)
Balance sheet change in cash, including:	(37 820)	(850)
Cash and cash equivalents at the beginning of the period	74 239	107 437
Cash and cash equivalents at the end of the period	36 419	106 587

Explanatory notes

Explanatory notes to the statement of financial position

NOTE 1A

The Company did not make any impairment losses on property, plant and equipment in the periods covered by these financial statements. The Company has no collateral established on fixed assets.

Property, plant and equipment [PLN '000]

	30.06.2022	31.12.2021
PP&E, including:	41 916	42 500
ҽ land	89	90
ҽ buildings, premises, civil and water engineering structures	34 282	34 912
ҽ plant and machinery	80	87
ҽ means of transport	5 412	6 573
ҽ other PP&E	2 053	838
PP&E under construction	1 977	1 578
Advances on PP&E under construction	-	-
Total PP&E	43 893	44 078

NOTE 1B

Changes in PP&E - by types [PLN '000]

		Buildings
For the period 1.01.2022 – 30.06.2022	Own land	and struc tures	Technical equipment	Means of transport	Other PP&E	Total
Gross value of PP&E at the beginning of the period	100	43 209	3 433	12 693	4 105	63 540
Increases	-	1 889	12	200	1 352	3 453
- due to purchase	-	984	12	-	1 352	2 348
- due to lease	-	905	-	200	-	1 105
Decreases	-	-	(7)	(1 850)	(9)	(1 866)
- due to lease	-	-	-	(1 850)	-	(1 850)
- due to sale	-	-	(7)	-	(9)	(16)
Gross PP&E at the end of the period	100	45 098	3 438	11 043	5 448	65 127
Accumulated depreciation at the beginning of the period	(10)	(8 297)	(3 346)	(6 120)	(3 267)	(21 040)
Depreciation for the period	(1)	(2 519)	(12)	489	(128)	(2 171)
- due to depreciation	(1)	(176)	(19)	-	(137)	(333)
- due to sale	-	-	7	-	9	16
- due to lease	-	(2 343)	-	489	-	(1 854)
- due to liquidation	-	-	-	-	-	-
Accumulated depreciation at the end of the period	(11)	(10 816)	(3 358)	(5 631)	(3 395)	(23 211)
Net value of fixed assets at the end of the period	89	34 282	80	5 412	2 053	41 916
Including asset on usufruct	-	30 184	-	5 412	-	35 596

There are no contractual obligations related to the acquisition of tangible fixed assets.

Changes in PP&E - by types [PLN '000]

For the period 1.01.2021 – 31.12.2021	Own land	Buildings and struc tures	Technical equipment	Means of transport	Other PP&E	Total
Gross value of PP&E at the beginning of the period	193	23 201	3 499	10 952	3 557	41 402
Increases	-	24 199	22	4 513	1 676	30 410
- due to purchase	-	346	22	-	1 676	2 044
- due to lease	-	23 853	-	4 513	-	28 366
Decreases	(93)	(4 191)	(88)	(2 772)	(1 128)	(8 272)
- due to liquidation	-	-	(2)	-	(310)	(312)
- due to lease		(3 839)		(2 227)	-	(6 066)
- due to sale	(93)	(352)	(86)	(545)	(818)	(1 894)
Gross PP&E at the end of the period	100	43 209	3 433	12 693	4 105	63 540
Accumulated depreciation at the beginning of the period	(13)	(8 178)	(3 392)	(6 152)	(3 327)	(21 062)
Depreciation for the period	3	(119)	46	32	60	22
- due to depreciation	(2)	(256)	(41)	-	(950)	(1 249)
- due to sale	5	32	85	545	767	1 434
- due to lease	-	87	-	(513)	-	(426)
- due to liquidation	-	18	2	-	243	263
Accumulated depreciation at the end of the period	(10)	(8 297)	(3 346)	(6 120)	(3 267)	(21 040)
Net value of fixed assets at the end of the period	90	34 912	87	6 573	838	42 500
Including asset on usufruct	-	31 622	-	6 573	-	38 195

NOTE 2A

Changes in investment property [PLN '000]

	1.01.2022- 30.06.2022	1.01.2021- 30.06.2021
Value of property investments at the beginning of the period	445	2 212
Increases	-	-
Decreases	-	(1 767)
due to sales	-	(1 767)
Value of property investments at the end of the period	445	445

The Company has no collateral established on investment properties. The Company has no contractual obligations as at 30 June 2022.

NOTE 3A

Interests and shares [PLN '000]

	30.06.2022	31.12.2021
Investments in subsidiaries and joint ventures
in subsidiaries	1 372 582	1 372 808
in joint ventures	227 113	115 175
Total interests and shares	1 599 695	1 487 983

In accordance with IAS 36, when assessing the existence of premises indicating the possibility of impairment of assets related to the Archicom Group, the Board of Directors analyzed the premise that the carrying amount of net assets of the reporting entity is higher than their market capitalization.

In the Management Board's opinion, taking into account the Archicom Group's projects under construction and in the pipeline, as of 30 June 2022, there are no premises for write-downs due to impairment of the assets

NOTE 3B

Changes in interests and shares [PLN '000]

	1.01.2022- 30.06.2022	1.01.2021- 31.12.2021
Opening balance, including:	1 487 983	1 073 287
shares and interests	1 487 983	1 073 287
Increases	111 942	467 198
due to purchase of interests	5	456 195
due to capital increase	111 937	11 003
Decreases	(230)	(52 502)
due to sale of interests	-	(19 215)
due to capital decrease	-	(13 950)
due to liquidation of entity	(51)	(729)
due to write–down on assets	(179)	(18 608)
Closing balance, including:	1 599 695	1 487 983
shares and interests	1 599 695	1 487 983

Changes in interests and shares – by companies

Change	Company	Value [PLN '000]
Purchase of shares	Projekt 139 - GE Sp. z o.o. Sp.k.	5
Sale of shares		-
Capital increase	R4R Poland Sp. z o.o.	3 285
	Rosehill Investments Sp. z o.o.	108 652
Write-downs on interests	Galeria Tarnów Grupa Echo S.K.A.	7
	Babka Tower - Projekt Echo 93 Sp. z o.o. Sp.k.	6
	PPR Projekt Echo 77 Sp. z o.o. S.K.A.	7
	Malta Office Park - GE Sp. z o.o. S.K.A.	10
	PHS - Projekt CS Sp.k.	149
Liquidation	Echo - Babka Tower Sp. z o.o.	-
	Projekt Echo 119 Sp. z o.o.	-
	Gleann Sp. z o.o.	-
	Shanklin Sp. z o.o.	-
	Malta Office Park - GE Sp. z o.o. S.K.A.	-
	Echo - Galaxy Sp. z o.o.	51
Capital reduction		-

Joint venture's financial data – selected data from the financial situation [PLN '000]

	Rosehill Investments Sp. z o.o., Berea Sp. z o.o. (Galeria Młociny)	Projekt Echo 138 Sp. z o.o. Sp.k. (Towarowa 22)	R4R Poland Sp. z o.o. (Resi4Rent)
	30.06.2022	30.06.2022	30.06.2022
Fixed assets – investment property	1 808 584	579 949	1 096 758
Fixed assets – investment properties under construction	-	-	620 466
Other fixed assets	9 193	5 448	3 799
Cash	48 596	3 795	78 672
Current assets	-	14 079	114 867
Total assets	1 866 372	603 271	1 914 562
Long-term liabilities	1 221 015	99 953	1 435 123
Short-term liabilities	52 640	152 327	57 969
Total liabilities	1 273 655	252 280	1 493 092
Equity	592 717	350 991	421 470
Share of the Echo Investment S.A.	30,00%	30,00%	30,00%
Elimination of mutual transactions between unit and the Group	-	(3)	(7 288)
Share of the Echo Investment S.A.	177 815	105 294	119 153

Joint venture's financial data – selected data from the statement of comprehensive income [PLN '000]

	Rosehill Investments Sp. z o.o., Berea Sp. z o.o. (Galeria Młociny)	Projekt Echo 138 Sp. z o.o. Sp.k. (Towarowa 22)	R4R Poland Sp. z o.o. (Resi4Rent)
	1.01.2022 - 30.06.2022	1.01.2022 - 30.06.2022	1.01.2022 - 30.06.2022
Operating income	57 726	1 013	36 866
Operating costs	(19 679)	(11 878)
Revenue/cost - revaluation of property	9 879	-	19 100
Administrative costs related to project	-	-	(9 203)
Costs of general administrative	(1 183)	(122)	(8 869)
Costs of sales	(644)	-	-
Other income / operating costs	(36)	(19 433)	664
Financial income and costs	(22 612)	(3 700)	32 503
Gross profit (loss)	23 451	(34 120)	71 061
Income tax	(8 612)	4 895	(13 553)
Net profit (loss)	14 839	(29 225)	57 508
Total comprehensive income	14 839	(29 225)	57 508
Share of the Echo Investment Group (%)	30,00%	30,00%	30,00%
Share of the Group in comprehensive income resulting from joint-venture	4 452	(8 768)	17 252

Long-term anf short-term financial assets [PLN '000]

	30.06.2022	31.12.2021
Advances received	1 731	1 854
In subsidiaries	108 646	106 222
Bonds	108 646	106 222
- long-term	44 923	43 671
- short-term	63 723	62 551
Receivables for purchase and sale of shares	7 600	3 285
Total long and short-term financial assets	117 977	111 361

As at 30 June 2022 the Company estimated the value of bonds impairment loss in the amount PLN 4,2 million and as at 31 December 2021 at PLN 3,5 million.

In the opinion of the Management Board, through the possibility of monitoring operations of subsidiaries and periodically confirming the profitability of their projects, the Company is able to assess and identify receivables for which credit risk has significantly increased. The Company's Management

Board did not find such bonds. The Management Board assessed the bonds granted in terms of creating a write-down for expected credit losses based on the evaluation of Echo Investment Capital Group's credibility. In accordance with the requirements of IFRS 9, a write-down for expected credit losses was created. As at 30 June 2022, the write-down amounted PLN 36 thousand and as at 31 December 2021, the write-down amounted PLN 11 thousand.

Key data on bonds as at 30 June 2022 [PLN '000]

Contractor's name	Value	Interest	Redemp tion date	Classification by maturity
Taśmowa – Projekt Echo 116 Sp. z o.o. S.K.A.	40 810	WIBOR 6M + margin	10.09.2023	Long-term
Projekt Beethovena – Projekt Echo 122 Sp. z o.o. S.K.A.	34 975	WIBOR 6M + margin	5.11.2023	Short-term
Projekt Beethovena – Projekt Echo 122 Sp. z o.o. S.K.A.	27 000	WIBOR 6M + margin	1.01.2024	Short-term
Bonds without interests and write-offs	102 785
Interests	10 072
Write-offs	(4 211)
Total bonds with interest and write-off	108 646

After the analysis, the Management Board of the Company decided to correct the presentation of long-term and

short-term loans. The classification of loans now depends on the actual repayment date.

Key data on bonds as at 31 December 2021 [PLN '000]

Contractor's name	Value	Interest	Redemption date	Classification by maturity
Taśmowa - Projekt Echo 116 Sp. z o.o. S.K.A.	40 810	WIBOR 6M + margin	10.09.2023	Long-term
Projekt Beethovena - Projekt Echo 122 Sp. z o.o. S.K.A.	34 975	WIBOR 6M + margin	5.11.2023	Short-term
Projekt Beethovena - Projekt Echo 122 Sp. z o.o. S.K.A.	27 000	WIBOR 6M + margin	1.01.2024	Short-term
Bonds without interests and write-offs	102 785
Interests	6 972
Write-offs	(3 535)
Total bonds with interest and write-off	106 222

Long-term loans granted [PLN '000]

	30.06.2022	31.12.2021
to subsidiaries	999 138	1 094 701
to joint-ventures	289 733	283 845
to other entities	573	554
Total long-term loans granted	1 289 444	1 379 100

In accordance with the requirements of IFRS 9, a writedown for expected credit losses was created: as at 30 June 2022 its value was estimated at the amount

of PLN 3,153 thousand, and as at 31 December 2021 - in the amount of PLN 1,169 thousand.

NOTE 5A

Long-term loans granted – currency structure [PLN '000]

	30.06.2022	31.12.2021
In Polish currency (PLN)	1 062 791	1 172 651
In other currencies (recalculated into PLN)	226 653	206 449
Total long-term loans granted	1 289 444	1 379 100

The note includes long-term loans with interest.

Key figures on long-term borrowings without interest as at 30 June 2022 [PLN '000]

Contractor's name	Amount	Interest	Repayment date
Fianar Investments Sp. z o.o.	150 000	WIBOR 3M + margin	31.12.2023
Strood Sp. z o.o.	136 459	EURIBOR 3M + margin	31.12.2023
Projekt 12 – Grupa Echo Sp. z o.o. Sp.k.	103 268	WIBOR 3M + margin	31.12.2023
Galeria Libero Sp. z o.o Sp.k.	97 507	WIBOR 3M + margin	10.10.2026
Projekt Echo 130 Sp. z o.o.	71 580	WIBOR 3M + margin	26.02.2026
Villea Investments Sp. z o.o.	69 420	WIBOR 3M + margin	31.12.2023
R4R Poland Sp. z o.o	61 518	margin	31.03.2029
Arena Sp. z o.o.	52 800	WIBOR 3M + margin	31.12.2023
R4R Poland Sp. z o.o	49 584	margin	31.03.2030
Projekt Echo 137 Sp. z o.o.*	45 891	WIBOR 3M + margin	30.06.2024
Senja 2 Sp. z o.o.	44 079	WIBOR 3M + margin	31.12.2023
R4R Poland Sp. z o.o	41 055	margin	31.03.2031
Berea Sp. z o.o.	36 760	margin	31.12.2025
R4R Poland Sp. z o.o.	35 151	margin	30.09.2026
Midpoint 71 – Cornwall Investments Sp. z o.o. S.K.A.	35 080	WIBOR 3M + margin	30.06.2026
Projekt Echo 137 Sp. z o.o.*	31 000	WIBOR 3M + margin	31.12.2023
Perth Sp. z o.o.	28 000	WIBOR 3M + margin	31.12.2023
Rosehill Investments Sp. z o.o.	25 703	EURIBOR 3M + margin	31.12.2025
GRO Nieruchomości Sp. z o.o.	24 096	WIBOR 3M + margin	31.12.2023
Elektrownia Sp. z o.o	11 000	WIBOR 3M + margin	31.12.2023
City Space Management Sp. z o.o.	10 546	WIBOR 3M + margin	31.12.2023
Strood Sp. z o.o.	9 890	WIBOR 3M + margin	31.12.2023
Galaxy - Grupa Echo Sp. z o.o. S.K.A.	8 366	WIBOR 3M + margin	31.12.2023
Berea Sp. z o.o.	7 869	EURIBOR 3M + margin	31.12.2025
Echo - SPV 7 Sp. z o.o.	6 640	WIBOR 3M + margin	31.12.2023
Projekt Echo 139 Sp. z o.o.	6 033	WIBOR 3M + margin	31.12.2023
Rondo 1 City Space – GP S. z o.o. Sp.k.	4 051	WIBOR 3M + margin	31.12.2023
ZAM - Projekt Echo 127 Sp. z o.o. Sp.k.*	2 500	WIBOR 3M + margin	30.06.2024
RPGZ IX Sp. z o.o*	2 190	WIBOR 3M + margin	30.06.2024
Echo - Opolska Business Park Sp. z o.o.	1 327	WIBOR 3M + margin	31.12.2023
Projekt 147 - Grupa Echo Sp. z o.o. Sp.k.*	809	WIBOR 3M + margin	31.12.2023
Projekt 5 - Grupa Echo Sp. z o.o. S.K.A.*	668	WIBOR 3M + margin	31.12.2023
DKRA Sp. z o.o.*	535	margin	22.04.2026
Plac Unii City Space – GP Sp. z o.o. Sp.k.	499	WIBOR 3M + margin	31.12.2023
142 - City Space - GP Sp. z o.o. Sp.k.	446	WIBOR 3M + margin	31.12.2023
Projekt Echo 128 Sp. z o.o.*	115	WIBOR 3M + margin	31.12.2023
Projekt Echo 112 Sp. z o.o.*	112	WIBOR 3M + margin	31.12.2023
Projekt Echo 113 Sp. z o.o.*	82	WIBOR 3M + margin	31.12.2023
Projekt Echo 131 Sp. z o.o.*	65	WIBOR 3M + margin	31.12.2023
Pure System Sp. z o.o.*	55	WIBOR 3M + margin	31.12.2023
Loans without interest and write-offs	1 212 749
Interest	107 190
Write-offs	(30 495)
Total loans with interest and write-offs	1 289 444

* Loans granted in 2022

The loans granted are presented in line with the actual ones repayment date.

Key figures on long-term borrowings without interest as at 31 December 2021 [PLN '000]

Contractor's name	Amount	Interest	Repayment date
Strood Sp. z o.o.*	169 232	EURIBOR 3M + margin	31.12.2023
Strood Sp. z o.o.	9 890	WIBOR 3M + margin	31.12.2023
Fianar Investments Sp. z o.o.*	150 000	WIBOR 3M + margin	31.12.2023
Projekt 12 - Grupa Echo Sp. z o.o. Sp.k.	122 718	WIBOR 3M + margin	31.12.2023
Galeria Libero Sp. z o.o. Sp.k.	97 507	WIBOR 3M + margin	10.10.2026
R4R Poland Sp. z o.o.	90 638	margin	31.03.2030
Projekt Echo 130 Sp. z o.o.	85 580	WIBOR 3M + margin	26.02.2026
Villea Investments Sp. z o.o.	68 550	WIBOR 3M + margin	31.12.2023
R4R Poland Sp. z o.o.	61 518	margin	31.03.2029
Arena Sp. z o.o. *	46 800	WIBOR 3M + margin	31.12.2023
Senja 2 Sp. z o.o.	43 663	WIBOR 3M + margin	31.12.2023
ZAM - Projekt Echo 127 Sp. z o.o. Sp.k.*	43 000	WIBOR 3M + margin	31.12.2023
Berea Sp. z o.o.	36 760	margin	31.12.2025
R4R Poland Sp. z o.o.	35 151	margin	30.09.2026
Midpoint 71 - Cornwall Investments Sp. z o.o. S.K.A.*	35 080	WIBOR 3M + margin	30.06.2026
Doxent Investments Sp. z o.o.*	30 237	WIBOR 3M + margin	31.12.2023
Galeria Nova - Grupa Echo Sp. z o.o. S.K.A*	28 330	WIBOR 3M + margin	31.12.2023
Rosehill Investments Sp. z o.o.	25 703	EURIBOR 3M + margin	31.12.2025
GRO Nieruchomości Sp. z o.o.	23 687	WIBOR 3M + margin	31.12.2023
Perth Sp. z o.o.*	23 000	WIBOR 3M + margin	31.12.2023
RPGZ IX Sp. z o.o.	19 466	WIBOR 3M + margin	31.12.2023
Projekt Echo 139 Sp. z o.o.*	18 050	WIBOR 3M + margin	31.12.2023
Projekt Echo 123 Sp. z o.o.*	15 610	WIBOR 3M + margin	31.12.2023
Gosford Investments Sp. z o.o.	12 775	WIBOR 3M + margin	31.12.2023
City Space Management Sp. z o.o.	9 402	WIBOR 3M + margin	31.03.2022
Echo - Galaxy Sp. z o.o. S.K.A.*	8 230	WIBOR 3M + margin	31.12.2023
Berea Sp. z o.o.	7 869	EURIBOR 3M + margin	31.12.2025
Rondo 1 City Space GP Sp. z o.o. Sp.k.	4 051	WIBOR 3M + margin	31.12.2023
Echo - SPV 7 Sp. z o.o.	3 140	WIBOR 3M + margin	31.12.2023
Echo-Opolska Business Park Sp. z o.o. Sp.k.*	1 237	WIBOR 3M + margin	31.12.2023
Elektrownia Sp. z o.o.*	1 000	WIBOR 3M + margin	31.12.2023
Projekt Echo 111 Sp. z o.o.	792	WIBOR 3M + margin	31.12.2023
DKRA Sp. z o.o.	535	margin	22.04.2026
Plac Unii City Space - GP Sp. z o.o. Sp.k.	499	WIBOR 3M + margin	31.12.2023
142 – City Space – GP Sp. z o.o. Sp.k.	440	WIBOR 3M + margin	31.12.2023
Projekt Echo 144 Sp. z o.o.	30	WIBOR 3M + margin	31.12.2023
Projekt Echo 141 Sp. z o.o.	30	WIBOR 3M + margin	31.12.2023
Projekt Echo 142 Sp. z o.o.	30	WIBOR 3M + margin	31.12.2023
Projekt Echo 143 Sp. z o.o.	30	WIBOR 3M + margin	31.12.2023
Projekt Echo 145 Sp. z o.o.	30	WIBOR 3M + margin	31.12.2023
Loans without interest and write-offs	1 330 290
Interest	74 885
Write-offs	(26 075)
Total loans with interest and write-offs	1 379 100

* Loans granted in 2021

NOTE 6

Derivative financial instruments [PLN '000]

	30.06.2022	31.12.2021
Interest Rate Swap	33 732	18 922
Total derivative financial instruments	33 732	18 922

NOTE 7

Leasing receivables [PLN '000]

	30.06.2022	31.12.2021
up to 1 year	3 662	3 155
1 to 3 years	9 209	8 268
3 to 5 years	10 333	9 860
over 5 years	22 420	24 192
Total leasing receivables	45 624	45 475

NOTE 8A

Inventory [PLN '000]

	30.06.2022	31.12.2021
Semi-finished products and work-in-progress	289 579	287 582
– land usufruct asset	50 797	49 345
Finished products	4 145	19 897
Goods	-	-
Inventory in total	293 724	307 479

NOTE 8B

Inventory – impact on results [PLN '000]

	30.06.2022	31.12.2021
Inventory write-offs recognised as cost in the period	(750)	-
Reversed write-downs on inventory recognised as revenue in the period	-	171
Movement in write-down on inventory	(750)	171

The change in the inventory write-down in 2022 concerns an abandoned project in Warsaw.

NOTE 8C

Inventories - list of mortgages [PLN '000]

	Value of the asset	Value of the mortgage	For	Comment
Warszawa, ul. Wołoska	177 668	88 150	Archicom Lofty Platinum 1 sp. z o.o.	Securing the return of the advance payment and VAT. The mortgage is not yet entered into the land and mortgage register.

NOTE 9

Short-term trade receivables, taxes and other [PLN '000]

	30.06.2022	31.12.2021
a) receivables from subsidiaries	71 767	35 225
– trade, with maturity:	49 268	27 384
– up to 12 months	49 268	27 384
– up to 12 months	-	-
– other:	22 499	7 841
– due to profit from limited partnerships	22 499	7 841
b) receivables from other entities	20 479	22 961
– trade, with maturity:	2 219	1 805
– up to 12 months	2 219	1 805
– over 12 months	-	-
– tax receivables,	8 024	10 368
– other	5 323	5 719
– security deposits paid	1 547	573
– lease receivables	-	1 471
– bid bonds paid	3 776	3 675
– advances for deliveries	4 913	5 069
Total net short-term trade receivables, taxes and other	92 246	58 186
total write-downs for expected credit losses of receivables	(3 198)	(2 651)
Total gross short-term trade receivables, taxes and other receivables	95 444	60 837

The maximum value of credit risk related to trade receivables does not significantly differ from the carrying amount. The estimated fair value of trade receivables is the current value of future expected discounted cash flows and it does not deviate significantly from the balance sheet value of these receivables.

Receivables from affiliated companies are not secured. In relation to related entities, the credit risk, in the opinion of the Management Board, is minimised through regular monitoring of operating activities and the assessment of investment projects of these companies. In the opinion of the Management Board, through the ability to monitor the operations of subsidiaries and the periodic confirmation of the profitability of their projects, the Company has the option of assessing receivables for which credit risk has increased significantly. The Management Board of

the Company did not find such receivables, even with respect to overdue receivables over 30 days, based on the assessment of investment projects of subsidiaries.

Receivables on account of deliveries and services result from rental of office space and residential premises as well as project implementation services and other services. The company controls the condition and payment capacity of its contractors on an ongoing basis. There is no significant risk concentration in relation to any of the clients of the Company from outside the Echo Investment Group. As at 30 June 2022, the Company estimated the impairment loss on trade receivables by applying a provision matrix based on historical data regarding the repayment of receivables by contractors.

NOTE 10A

Short-term loans granted [PLN '000]

	30.06.2022	31.12.2021
In subsidiaries
loans granted	246	262
	246	262
In joint-ventures
loans granted	-	-
Total short-term loans granted	246	262

NOTE 10B

Short-term loans granted – currency structure [PLN '000]

	30.06.2022	31.12.2021
In the Polish currency (PLN)	246	262
In foreign currencies (after translation into PLN)	-	-
Total short-term loans granted	246	262

The note includes short-term loans with interest.

Basic data on major short-term borrowings, without interest, as at 30 June 2022 [PLN '000]

Contractor's name	Amount	Interest	Repayment date
Projekt 6 - Grupa Echo Sp. z o.o. S.K.A.	85	WIBOR 3M + margin	31.03.2022
Projekt 13 - Grupa Echo Sp. z o.o. S.K.A.	70	WIBOR 3M + margin	31.03.2022
Projekt CS Sp. z o.o.*	42	WIBOR 3M + margin	31.12.2022
Projekt Echo - 93 Sp. z o.o.*	38	WIBOR 3M + margin	31.12.2022
Borrowings without interests and write-offs	235
Interests	11
Write-offs	-
Borrowings with interest and write-offs	246

* Loans granted in 2022

Loans granted are presented in accordance with the actual ones repayment date.

Basic data on major short-term borrowings, without interest, as at 31 December 2021 [PLN '000]

Contractor's name	Amount	Interest	Repayment date
Shanklin Sp. z o.o.*	101	WIBOR 3M + margin	31.03.2022
Projekt K-6 S.K.A.*	85	WIBOR 3M + margin	31.03.2022
Projekt 13 S.K.A.*	70	WIBOR 3M + margin	31.03.2022
Borrowings without interests and write-offs	256
Interests	6
Write-offs	-
Borrowings with interest and write-offs	262

NOTE 11A

Long-term liabilities without income tax provision [PLN '000]

	30.06.2022	31.12.2021
Due to subsidiaries
on loans and borrowings	125 203	226 438
	125 203	226 438
Due to other entities
on leasing	67 091	70 778
security deposits received	3 267	1 243
credits	-	-
financial derivative instruments - IRS	-	6 970
due to issue of debt securities	1 137 585	1 106 348
bonuses for the Management Board and + retirement benefits 6 310	9 059
	1 214 253	1 194 398
Total long-term liabilities	1 339 456	1 420 836
Interest rates used to discount the expected cash flows from the lease:	from 1,77% to 12,00%	from 2,10% to 7,95%

According to the best information and data of the Company, there were no breaches of terms of loan agreements and established security levels during the financial year and until the date of signing of the financial statement.

NOTE 11B

Long-term liabilities without income tax provision with remaining maturities from the balance sheet date [PLN '000]

	30.06.2022	31.12.2021
1-3 years	1 045 581	1 020 099
3-5 years	263 998	369 663
Over 5 years	29 877	31 074
Total long-term liabilities	1 339 456	1 420 836
Interest rates used to discount expected cash flows:	from 1,77% to 12,00%	from 2,10% to 7,95%

Long-term liabilities in nominal value were presented by the Company in note 11F.

NOTE 11C

Long-term liabilities without provision for income tax – currency structure [PLN '000]

	30.06.2022	31.12.2021
In Polish currency (PLN)	962 598	1 026 866
In other currencies (recalculated into PLN)	376 858	393 970
Total long-term liabilities	1 339 456	1 420 836

Long-term liabilities – change due to leasing [PLN '000]

	30.06.2022	31.12.2021
Opening balance	70 778	13 567
Changes in the period	(3 687)	57 211
new purchases	1 103	57 211
financial costs	-	-
payment	(4 790)	-
project's completion/sale	-	-
Closing balance	67 091	70 778

NOTE 11E

Echo Investment S.A. credit facilities as at 30 June 2022 [PLN '000]

Bank	Contractual amount of loan	Outstanding loan amount	Interest rate	Repayment deadline
PKO BP S.A.*	75 000	62 486	WIBOR 1M + margin	31.10.2023
Alior Bank S.A.	25 000	25 000	WIBOR 3M + margin	10.07.2023
Santander Bank Polska S.A.**	100 000	65 224	WIBOR 1M + margin	30.11.2022
Total	200 000	152 710

* The available loan amount as at 30 June 2022 is reduces by the issued guarantees and amounts to PLN 10,5 mln.

** The available loan amount as at 30 June 2022 is reduced by the issued guarantees and amounts to PLN 4,1 million.

Echo Investment S.A. credit facilities as at 31 December 2021 [PLN '000]

Bank	Contractual amount of loan	Outstanding loan amount	Interest rate	Repayment deadline
PKO BP S.A.*	75 000	62 645	WIBOR 1M + margin	31.10.2023
Alior Bank S.A.	35 000	35 000	WIBOR 3M + margin	12.05.2022
Santander Bank Polska S.A.**	100 000	66 932	WIBOR 1M + margin	30.11.2022
Total	210 000	164 577

* The available loan amount as at 31 December 2021 is reduces by the issued guarantees and amounts to PLN 3,4 mln.

** The available loan amount as at 31 December 2021 is reduced by the issued guarantees and amounts to PLN 2,4 million.

Company's liabilities due to bonds issued as at 30 June 2022 [PLN '000]

Series	ISIN code	Bank / brokerage house	Nominal value	Maturity	Interest rate
	Bonds issued for institutional investors
1/2019	PLECHPS00308	mBank S.A.	96 510	11.04.2023	WIBOR 6M + margin 4,25%
1/2020	PLO017000012	mBank S.A.	150 000	31.05.2024	WIBOR 6M + margin 4,50%
1P/2020	PLO017000020	PKO TFI Parasolowy and Michael / Ström Dom Maklerski S.A. as an agent	100 000	5.08.2024	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%
		Total	713 510
	Bonds issued for individual investors
F – series	PLECHPS00233	DM PKO BP S.A.	125 000	11.10.2022	WIBOR 6M + margin 2,9%
G – series	PLECHPS00241	DM PKO BP S.A.	75 000	27.10.2022	WIBOR 6M + margin 2,9%
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 Dom Maklerski S.A., Dom Maklerski 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%
		Total	423 832
		Bonds issued by Echo Investment S.A. for seller of shares in Archicom S.A.
1P/2021	PLO017000053	Michael/Ström DM (agent)	188 000	22.10.2024	fixed interest rate 5%
		Total	188 000
		Total bonds issued in PLN	1 325 342

Bonds issued by Echo Investment S.A. for institutional investors [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 change in business and economic conditions did not have a significant impact on the fair value of the financial liabilities.

o łącznej wartości nominalnej 65 mln zł.

Company's liabilities due to bonds issued as at 31 December 2021 [PLN '000]

Series	ISIN code	Bank / brokerage house	Nominal value	Maturity	Interest rate
	Bonds issued for institutional investors
1/2018	PLECHPS00282	mBank S.A.	31 410	25.04.2022	WIBOR 6M + margin 2,9%
1/2019	PLECHPS00308	mBank S.A.	96 510	11.04.2023	WIBOR 6M + margin 4,25%
1/2020	PLO017000012	mBank S.A.	150 000	31.05.2024	WIBOR 6M + margin 4,50%
1P/2020	PLO017000020	PKO TFI Parasolowy i Michael / Ström Dom Mak lerski S.A. jako agent	100 000	5.08.2024	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%
		Total	744 920
	Bonds issued for individual investors
F – series	PLECHPS00233	DM PKO BP S.A.	125 000	11.10.2022	WIBOR 6M + margin 2,9%
G – series	PLECHPS00241	DM PKO BP S.A.	75 000	27.10.2022	WIBOR 6M + margin 2,9%
H – series	PLECHPS00266	DM PKO BP S.A	50 000	22.05.2022	WIBOR 6M + margin 2,8%
I – series	PLECHPS00274 Konsorcjum: DM PKO Banku Polskiego S.A., Noble Securities S.A. i Centralny Dom Maklerski Pekao S.A.		50 000	8.11.2023	WIBOR 6M + margin 3,4%
J and J2 – series	PLECHPS00290	Seria J: konsorcjum Noble Securities S.A., Michael / Ström Dom Maklerski S.A., Dom Maklerski Banku Ochrony Środowiska S.A.	33 832	21.09.2023	WIBOR 6M + margin 3,4%
		Seria J2: DM PKO Banku Polskiego S.A.
		Total	333 832
		Total bonds issued in PLN	1 078 752

Bonds issued for institutional investors [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	40 000

Bonds issued by Echo Investment S.A. for sellers of shares in Archicom S.A. [PLN '000]

Series	ISIN code	Bank / brokerage house	Nominal value Maturity	Interest rate
1P/2021	PLO017000053	Michael / Ström Dom Maklerski S.A. jako agent	188 000 22.10.2024	fixed interest rate 5%
		Total	188 000

Movement in deferred tax assets/provision [PLN '000]

	1.01.2022- 30.06.2022	1.01.2021- 31.12.2021
Deferred tax asset/provision at the beginning of the period	(16 677)	(19 534)
financial instruments	(2 271)	308
investment property	513	513
receivables and liabilities due to borrowings	(14 170)	(12 586)
liabilities due to loan and bonds	(1 559)	(2 546)
tax loss	2 344	2 461
inventory	1 713	(83)
interests and shares	1 636	-
leasing	1 995	26
other	(6 878)	(7 627)
Increases	13 565	7 137
liabilities due to loan and bonds	2 686	987
tax loss	1 968	-
inventory	2 988	1 796
interests and shares	-	1 636
leasing	-	1 969
other	5 923	749
Decreases	(7 842)	(4 280)
financial instruments	(1 628)	(2 579)
investment property	-	-
receivables and liabilities due to borrowings	(5 269)	(1 584)
liabilities due to loan and bonds	-	-
tax loss	-	(117)
leasing	(945)	-
other	-	-
Deferred tax asset/provision at the end of the period	(10 954)	(16 677)
financial instruments	(3 899)	(2 271)
investment property	513	513
receivables and liabilities due to borrowings	(19 439)	(14 170)
liabilities due to loan and bonds	1 127	(1 559)
tax loss	4 312	2 344
inventory	4 701	1 713
interests and shares	1 636	1 636
leasing	1 050	1 995
other	(955)	(6 878)

Tax loss amount for 2019 - 2021, from which no assets were created, amounts to PLN 6,038 thousand. Time limit for lapse of the right to reduction tax due to tax loss falls in 2026.

Short-term trade liabilities, taxes, security deposits received, advances received and other - without provisions [PLN '000]

	30.06.2022	31.12.2021
Trade, due to subsidiaries, with maturity:	5 343	5 980
– up to 12 months	5 343	5 980
Trade, due to other entities, with maturity:	7 034	15 844
– up to 12 months	7 034	15 844
Total short-term trade liabilities	12 377	21 824
Advances received (liability related to contract)	172 201	179 920
- including: from related entities	166 249	166 249
Security deposits received	6 020	8 773
Total security deposits and advances received	178 221	188 693
Due to other taxes	11 476	8 689
Due to current portion of income tax	2	23
Total liabilities due to taxes	11 478	8 712
Lease liability	61 055	62 598
Total lease liabilities	61 055	62 598
Other liabilities	114 474	24 657
payroll	3	2
Derivative financial instruments	13 209	-
other (due to)	101 262	24 655
dividend	90 792	-
cash on escrow account	229	2 404
Other, including:	10 241	22 251
bonuses for management and employees	5 554	10 664
Total other short-term liabilities	114 474	24 657
Total short-term trade liabilities, taxes, received deposits, received advances and other	377 605	306 484
Interest rates used to discount expected cash flows for leasing:	from 1,77% to 12,00%	from 2,10% to 7,95%

Fair value of trade and other liabilities does not differ materially from their carrying value.

Short-term liabilities – change related to lease [PLN '000]

	30.06.2022	31.12.2021
Opening balance	62 598	9 530
Changes in the period	(1 543)	53 068
new purchases	-	63 710
financing costs	5 450	2 052
payment	(5 573)	(9 704)
project completion/sale	(1 420)	(2 990)
Closing balance	61 055	62 598

NOTE 14A

Short-term loans, borrowings and bonds [PLN '000]

	30.06.2022	31.12.2021
Due to subsidiaries
borrowings	71 789	105 874
	71 789	105 874
Due to other entities
loans and borrowings	152 710	164 577
due to issue of debt securities	409 305	351 028
	562 015	515 605
Total short-term loans, borrowings and bonds	633 804	621 479

According to the best information and data of the Company, there were no breaches of terms of loan agreements and es-tablished security levels during the financial year and until the date of signing of the financial statement.

Short-term loans, borrowings and bonds – currency structure [PLN '000]

	30.06.2022	31.12.2021
In the Polish currency (PLN)	587 342	576 422
In other currencies (recalculated into PLN)	46 462	45 057
Total short-term loans, borrowings and bonds	633 804	621 479

Basic data on short-term borrowings as at 30 June 2022 [PLN '000]

Contractor's name	Amount	Interest rate	Repayment deadline
Projekt Beethovena - Projekt Echo 122 Sp. z o.o. S.K.A.	44 615	EURIBOR 3M + margin	30.09.2022
Pudsey Sp. z o.o.	23 952	WIBOR 3M + margin	30.09.2022
Borrowings without interests and write-offs	68 567
Interests	3 222
Borrowings with interest and write-offs	71 789

Basic data on short-term borrowings as at 31 December 2021 [PLN '000]

Contractor's name	Amount	Interest rate	Repayment deadline
Pudsey Sp. z o.o.	60 400	WIBOR 3M + margin	30.09.2022
Projekt Beethovena - Projekt Echo122 Sp. z o.o. S.K.A.	44 615	EURIBOR 3M + margin	30.09.2022
Borrowings without interests and write-offs	105 015
Interests	859
Borrowings with interest and write-offs	105 874

NOTE 15

Movement in short-term provisions – by types [PLN '000]

	30.06.2022	31.12.2021
Opening balance
provisions for penalties	-	2 000
provisions for guarantees	482	590
provisions for repairs	749	794
court proceedings	310	272
provision for costs	6 315	7 648
	7 856	11 304
Increases
provisions for guarantees	1 285	-
provisions for repairs	215	-
court proceedings	1 536	38
	3 036	38
Release due to
provision for costs	-	(1 333)
provisions for guarantees	-	(108)
provisions for penalties	-	(2 000)
provisions for repairs	-	(45)
	-	(3 486)
Closing balance
provisions for repairs	964	749
provisions for guarantees	1 767	482
court proceedings	1 846	310
provision for costs	6 315	6 315
	10 892	7 856

Off-balance sheet items [PLN '000]

	30.06.2022	31.12.2021
Contingent liabilities
To related entities	2 507 952	2 262 964
– due to guarantees and sureties granted	2 507 952	2 262 964
	2 507 952	2 262 964
Other
– due to court proceedings against Echo Investment	6 878	611
	6 878	611
Total	2 514 830	2 263 575

In accordance with the requirements of IFRS 9, a provision for expected credit losses was created as at 30 June 2022 in the amount of PLN 1,767 thousand and as at 31 December 2021 – in the amount of PLN 482 thousand.

Surety and guarantees agreements issued by Echo Investment S.A.:

Issuer	Entity receiving surety	Beneficiary	Value	Expiry date	Description
Echo Investment S.A.	Plac Unii City Space - GP Sp. z o.o. Sp.k.	Bletwood Investments Sp. z o.o.	1 574	4.07.2026	Surety for liabilities, as a collateral of liabil ities resulting from the lease agreement of 6.11.2015. Surety issued in EUR.
Echo Investment S.A.	Dellia Investments - Projekt Echo 115 Sp. z o.o. Sp.k.	HPO AEP Sp. z o.o. Sp. j.	11 702	7.12.2031	Surety for liabilities of the entity, as a col lateral of liabilities resulting from the good neighbourhood agreement of 7.12.2016. Mutual surety issued in EUR.
Echo Investment S.A.	Sagittarius - Projekt Echo 113 Sp. z o.o. Sp.k.	Human Office Polska Sp. z o.o.	100	1.08.2022	Surety for the liabilities of Sagittarius - Pro jekt Echo 113 Sp. z o.o. Sp.k. resulting from the lease of movable property.
Echo Investment S.A.	Projekt Beethovena - Projekt Echo 122 Sp. z o.o. S.K.A.	PKO BP S.A.	162 534	31.12.2026	Surety for particular liabilities as a col lateral of claims resulting from residential project and mortgage separation of real estate. Surety issued in EUR.
Echo Investment S.A.	Pimech Invest Sp. z o.o.	Miasto Stołeczne Warszawa	1 230	30.03.2023	Surety for proper performance of the lia bilities oarising from the road construction agreement.
Total			177 140

Changes in surety agreements issued by Echo Investment S.A. in the 1st half-year of 2022 [PLN '000]

Change	Issuer	Entity receiving surety	Beneficiary	Value	Expiry date	Description
Extension	Echo Investment S.A.	Plac Unii City Space - GP Sp. z o.o. Sp.k.	Bletwood Invest ments Sp. z o.o.	1 574	4.07.2026	Surety for liabilities, as a collateral of liabilities resulting from the lease agree ment of 6.11.2015. Surety issued in EUR.
Extension	Echo Investment S.A.	Sagittarius - Projekt Echo 113 Sp. z o.o. Sp.k.	Human Office Polska Sp. z o.o.	100	1.08.2022	Surety for the liabilities of Sagittarius - Projekt Echo 113 Sp. z o.o. Sp.k. resulting from the lease of movable property.
Extension	Echo Investment S.A.	Projekt Beethovena - Projekt Echo 122 Sp. z o.o. S.K.A.	PKO BP S.A.	162 534	31.12.2026	Surety for particular liabilities as a collateral of claims resulting from resi dential project and mortgage separation of real estate. Surety issued in EUR.

Guarantor	Issuer	Beneficiary	Value	Expiry date	Description
Echo Investment S.A.	Projekt Echo 130 Sp. z o.o.	FARKAS Grundstücks gesellschaft mbH & Co. KG	983	30.06.2025	Corporate guarantee securing the rent guarantee related to the sale of Fuzja CDJ in Lodz (retail part). Guarantee issued in EUR.
Echo Investment S.A.	Projekt Echo 130 Sp. z o.o.	FARKAS Grundstücks gesellschaft mbH & Co. KG	987	30.06.2031	Corporate guarantee securing the rent guarantee and coverage of service charg es related to the sale of Fuzja CDJ in Lodz (office part). Rent guarantee issued in EUR.
Echo Investment S.A.	Midpoint 71 - Cornwall Investments Sp. z o.o. S.K.A.	SER Poland Sp. z o.o.	1 123	21.12.2033	Unconditionally and irrevocably guaran tees of full, due and punctual performance of all payment obligation under the lease agreement. Guarantee issued in EUR.
Echo Investment S.A.	Midpoint 71 - Cornwall Investments Sp. z o.o. S.K.A.	SER Poland Sp. z o.o.	13 628	30.09.2029	Corporate guarantee securing the rent guarantee and coverage of service charges related to the sale of Midpoint 71 in Wroclaw. Rent guarantee issued in EUR.
Echo Investment S.A.	City Space Manage ment Sp. z o.o.	Midpoint 71 - Cornwall Investments Sp. z o.o. S.K.A.	960	25.05.2023	Corporate guarantee securing the City Space Management lease agreement. Guarantee issued in EUR.
Echo Investment S.A.	Grupa Echo Sp. z o.o.	IB 14 FIZAN	16 734	24.05.2024	Security for the proper performance of the obligations arising from the contract for the sale of the West Link office building in Wrocław. Guarantee issued in EUR.
Echo Investment S.A.	Midpoint 71 - Cornwall Investments Sp. z o.o. S.K.A.	A 19 Sp. z o.o.	28 084	4.07.2038	Guarantee for the obligations arising from the good neighborly agreement concluded on 4.07.2018 with Midpoint 71 project. Guarantee issued in EUR.
Echo Investment S.A.	Dellia Investments - Projekt Echo 115 Sp. z o.o. Sp.k.	LUX Europa III S.a.r.l.	0	30.06.2029	Security for the proper performance of liabilities arising from the sale agreement of the Gatehouse Office building in the Warsaw Brewery complex. Rental guarantee issued in EUR.
Echo Investment S.A.	Dellia Investments - Projekt Echo 115 Sp. z o.o. Sp.k.	LUX Europa III S.a.r.l.	51 487	3.03.2027	Security for the proper performance of the liabilities arising from the sale contract of the Gatehouse Offices building being part of the Warsaw Brewery complex. Guarantee issued in EUR.
Echo Investment S.A.	Echo - Opolska Busi ness Park Sp. z o.o. Sp.k.	EPP Office O3 Busi ness Campus Sp. z o.o.	364	11.02.2025	Corporate guarantee securing the rent guarantee and coverage of service charges related to the sale of O3 Business Campus III in Cracow. Rent guarantee partly issued in EUR.
PKO BP S.A.	Aquarius City Space GP Sp. z o.o. Sp.k.	Aquarius SR Sp. z o.o.	28	31.12.2022	Bank guarantee securing the liabilities under the lease agreement of 5.09.2018.
PKO BP S.A.	Aquarius City Space GP Sp. z o.o. Sp.k.	Aquarius SR Sp. z o.o.	662	31.12.2022	Bank guarantee issued securing the liabilities under the lease agreement of 5.09.2018.
Echo Investment S.A.	City Space Manage ment Sp. z o.o.	Tryton Business Park Sp. z o.o.	1 292	31.12.2022	Security for the liabilities arising from the lease contract concluded on 12.06.2018. Guarantee issued in EUR.
Echo Investment S.A.	City space Manage ment Sp. z o.o.	DH Supersam Katow ice Sp. z o.o. Sp.K.	392	31.12.2022	Security for the liabilities arising from the lease agreement concluded on 28.02.2017. Guarantee issued in EUR.

Guarantor	Issuer	Beneficiary	Value	Expiry date	Description
PKO BP S.A.	Sagittarius - Projekt Echo 113 Sp. z o.o. Sp.k.	Warburg-HiH Invest Real Estate GmbH	665	31.05.2023	Security of the liabilities arising from the rental guarantee contract. The maximum amount of the liability will be successively reduced as the amount of the liability that is secured by the guarantee decreases. Guarantee issued in EUR.
Echo Investment S.A.	Nobilis City Space GP Sp. z o.o. Sp.k.	Nobilis - Business House sp. z o.o.	610	31.10.2027	Guarantee securing liabilities resulting from the annex to leasing agreement. Issued in EUR.
Echo Investment S.A.	Dellia Investments - Projekt Echo 115 Sp. z o.o. Sp.k.	APAK Grundstücks gesellschaft mbH & Co. KG	49 833	11.09.2022	Security for the proper performance of obligations arising under the sale contract of the Villa Offices (building K) being part of the Warsaw Brewery complex, as well as unter the side letter. Guarantee issued EUR and PLN.
Echo Investment S.A.	Dellia Investments - Projekt Echo 115 Sp. z o.o. Sp.k.	APAK Grundstücks gesellschaft mbH & Co. KG	5 917	11.03.2024	Security for the proper performance of obligations arising under rental guarantee related to the retail space in the Villa Offic es (building K), being a part of the Warsaw Brewery complex. Guarantee issued in EUR.
Echo Investment S.A.	Projekt 16 - Grupa Echo Sp. z o.o. S.K.A.	R4R Gdańsk Stocznia Sp. z o.o.	26 000	18.09.2023	Conditional guarantee securing the reimbursement of the advance paid by the buyer under the preliminary real estate sale agreement.
Echo Investment S.A.	Projekt 146 - CityS pace GP Sp. z o.o. Sp.K.	Face2Face - Stranraer Sp. z o.o. S.K.A.	735	30.04.2023	Security for liabilities resulting from the lease agreement concluded on 30.09.2020. Guarantee issued in EUR.
Echo Investment S.A.	Projekt 16 - Grupa Echo Sp. z o.o. S.K.A.	Wentel Sp. z o.o.	26 000	2.10.2023	Conditional guarantee securing the reim bursement of the advance payment made by a company from the Student Depot group under the preliminary purchase agreement of real estate in Gdańsk from the Echo Investment group.
Santander Bank Polska S.A.	Echo Investment S.A.	Miasto Stołeczne Warszawa	25 000	30.10.2022	Guarantee securing obligation to perfor mance of the accompanying investment under the special housing act - building a primary school and transferring it to the City of Warsaw.
Santander Bank Polska S.A.	Echo Investment S.A.	Miasto Poznań reprezentowane przez Zarząd Dróg Miejskich w Poznaniu	3 384	31.07.2022	Guarantee of proper performance of the contract.
Echo Investment S.A.	Dellia Investments - Projekt Echo 115 Sp. z o.o. Sp.k.	Westinvest Ge sellschaft für Invest mentfonds mbH	153	5.11.2031	Security for the proper performance of obligations arising under rental guarantee and coverage of service charges related to the office space in the Malthouse Offices (building GH), being a part of the Warsaw Brewery complex. Rent guarantee issued in EUR.
Echo Investment S.A.	Dellia Investments - Projekt Echo 115 Sp. z o.o. Sp.k.	Westinvest Ge sellschaft für Invest mentfonds mbH	3 606	5.11.2031	Security for the proper performance of obligations arising under: (i) fit-out works agreement re. Malthouse Offices (building GH), being a part of the Warsaw Brewery complex, and (ii) rental guarantee related to the retail space in the Malthouse Offices (building GH), being a part of the Warsaw Brewery complex. Issued in EUR. Guarantee issued in EUR.

Guarantor	Issuer	Beneficiary	Value	Expiry date	Description
PKO BP S.A.	Echo Investment S.A.	APAK Grundstücks gesellschaft mbH & Co. KG	627	9.07.2022	Proper performance of the terms of the lease agreement, which in particular includes the payment of rent, service charges, claims for contractual penalties, payment of a guarantee deposit, possible interest. Guarantee issued in EUR.
Towarzystwo Ubez pieczeń Euler Hermes S.A. (na zlecenie i z limitu Echo Invest ment S.A.)	Galeria Nova - Grupa Echo Sp. z o.o. S.K.A.	Apator Powogaz S.A.	21 500	31.12.2022	Guarantee of payment of the entire amount due the sale of a land property located in Poznań.
Echo Investment S.A.	Projekt Beethovena - Projekt Echo 122 Sp. z o.o. S.K.A.	Portfel2 PH5 Sp. z o.o.	52 295	21.11.2023	Security for the proper performance of ob ligations arising under the sale agreement of Moje Miejsce I office building. Guarantee issued in EUR.
Echo Investment S.A.	Projekt Beethovena - Projekt Echo 122 Sp. z o.o. S.K.A.	Portfel2 PH5 Sp. z o.o.	2 165	21.11.2026	Security for the proper performance of obligations arising under rental guarantee and coverage of service charges related to sale of Moje MIejsce I office building. Rent guarantee issued in EUR.
Echo Investment S.A.	Projekt Beethovena - Projekt Echo 122 Sp. z o.o. S.K.A.	Portfel2 PH5 sp. z o.o.	3 856	21.11.2026	Security for the proper performance of obligations arising under fit-out agreement related to sale of Moje MIejsce I office building. Guarantee issued in EUR.
Echo Investment S.A.	Fianar Investments Sp. z o.o.	Kaufland Polska Mar kety Sp. z o.o. Sp.j.	2 500	2.11.2036	Conditional guarantee of the payment of the contractual penalty resulting from the lease agreement for premises at Kapelanka shopping centre in Cracow.
Echo investment S.A.	City Space Manage ment Sp. z o.o.	Projekt 17 - Grupa Echo Sp. z o.o. S.K.A.	847	31.12.2022	Bank guarantee securing the liabilities under the lease agreement.
Santander Bank Polska S.A.	Elektrownia RE Sp. z o.o.	Miasto Łódź	796	18.10.2022	Payment guarantee related to the Agree ment concluded between Elektrownia RE Sp. z o.o. and the City of Łódź concerning the principles of implementing a road in vestment consisting in the construction of a 3KDD road designed on the section from ul. Tymienieckiego to Milionowej in Łódź.
Santander Bank Polska S.A.	Elektrownia RE Sp. z o.o.	Miasto Łódź	695	18.10.2022	Payment guarantee related to the Agree ment concluded between Elektrownia RE Sp. z o.o. and the City of Łódź concerning the principles of implementing a road in vestment consisting in the construction of a 3KDD road designed on the section from ul. Tymienieckiego to Milionowej in Łódź.
Echo Investment S.A.	Dellia Investments - Projekt Echo 115 Sp. z o.o. Sp.k.	Westinvest Ge sellschaft für Invest mentfonds mbH	8 425	30.11.2026	Security for the proper performance of ob ligations arising under the sale agreement of the building Villa Schiele, being part of the Warsaw Brewery complex. Guarantee issued in EUR.
Echo Investment S.A.	Projekt Echo 130 Sp. z o.o.	Fujitsu Technology Solutions Sp. z o.o.	24 786	1.12.2023	Security for the proper performance of obligations Projekt Echo 130 Sp.z o.o. as a landlord due to contractual penalties under the lease agreement of 31.01.2020. Guarantee issued in EUR.
Echo Investment S.A.	Projekt 17 - Grupa Echo Sp. z o.o. S.K.A.	Barcarrota Sp. z o.o.	33 120	31.12.2027	Security for the proper performance of obligations arising under the sale agree ment of the building West 4 Business Hub Phase I. Guarantee issued in EUR.

Guarantor	Issuer	Beneficiary	Value	Expiry date	Description
Echo Investment S.A.	Projekt 17 - Grupa Echo Sp. z o.o. S.K.A.	Barcarrota Sp. z o.o.	5 962	20.01.2028	Security for the proper performance of obligations arising under rental guarantee related to the office space and coverage of service charges in the West 4 Business Hub Phase I. Rent guarantee issued in EUR.
Echo Investment S.A.	Projekt 17 - Grupa Echo Sp. z o.o. S.K.A.	Barcarrota Sp. z o.o.	12 091	20.01.2028	Security for the proper performance of ob ligations arising under fit-out works agree ment re. West 4 Business Hub Phase I. Guarantee issued in EUR.
Echo Investment S.A.	Potton Sp. z o.o.	Kaufland Polska Mar kety Sp. z o.o. Sp.j.	2 500	29.03.2036	Conditional guarantee of the payment of the contractual penalty resulting from the lease agreement for premises at Pasaż Opieńskiego shoping centre in Poznań.
Echo Investment S.A.	Projekt Beethovena - Projekt Echo 122 Sp. z o.o. S.K.A.	PKO BP S.A.	7 957	31.12.2026	Securing the coverage of additional amounts resulting from the rental holidays of approved lease agreements to ensure the required DSCR. Guarantee issued in EUR.
Total			438 747

Guarantor	Issuer	Beneficiary	Value	Expiry date	Description
Echo Investment S.A.	Projekt Echo 130 Sp. z o.o.	FARKAS Grundstücks gesellschaft mbH & Co. KG	30 182	31.12.2023	Security for the proper performance aris ing from the sale contract of the Fuzja CDJ buildings being part of the Fuzja complex. Guarantee issued in EUR.
Echo Investment S.A.	Projekt Echo 130 Sp. z o.o.	FARKAS Grundstücks gesellschaft mbH & Co. KG	103 221	30.06.2033	Security for the proper performance of obligations arising under quality guaran tee agreement related to sale of Fuzja CD office buildings.
Echo Investment S.A.	Projekt Echo 130 Sp. z o.o.	FARKAS Grundstücks gesellschaft mbH & Co. KG	9 717	30.06.2033	Security for the proper performance of obligations arising under quality guarantee agreement related to sale of Fuzja J office building.
Echo Investment S.A.	Projekt Echo 130 Sp. z o.o.	FARKAS Grundstücks gesellschaft mbH & Co. KG	33 225	30.06.2032	Security for the proper performance of obligations arising under fit-out agree ment related to sale of Fuzja CDJ office buildings. Guarantee issued in EUR.
Echo Investment S.A.	Midpoint 71 - Cornwall Investments Sp. z o.o. S.K.A.	SER Poland Sp. z o.o.	179 242	30.09.2032	Corporate guarantee securing the quality guarantee related to the sale of Midpoint 71 in Wroclaw.
Echo Investment S.A.	Midpoint 71 - Cornwall Investments Sp. z o.o. S.K.A.	SER Poland Sp. z o.o.	97 228	31.03.2030	Corporate guarantee securing the sale agreement of Midpoint 71 in Wroclaw. Guarantee issued in EUR.
Santander Bank Polska S.A. (w ramach limitu kredytowego Echo Investment S.A.)	Galeria Libero - Projekt Echo 120 Sp. z o.o. Sp.k.	Miasto Katowice	758	10.05.2023	Security under the warranty and quality guarantee for the obligations arising from the contract concluded on June 16, 2016 on the implementation of a road invest ment.
Echo Investment S.A.	Echo - Opolska Busi ness Park Sp. z o.o. Sp.k.	EPP Office O3 Busi ness Campus Sp. z o.o.	42 708	21.12.2026	Corporate guarantee regarding mone tary obligations under the Construction Guarantee for a period consistent with the Construction Guarantee. Guarantee issued in EUR.
Echo Investment S.A.	ZAM - Projekt Echo 127 Sp. z o.o. Sp.k.	Tryton Business Park Sp. z o.o.	44 551	21.12.2026	Corporate guarantee regarding mone tary obligations under the Construction Guarantee for a period consistent with the Construction Guarantee. Guarantee issued in EUR.
Echo Investment S.A.	Symetris - Projekt Echo 131 Sp. z o.o. Sp.k.	EPP Office – Syme tris Business Park Sp. z o.o.	19 057	21.12.2026	Corporate guarantee regarding mone tary obligations under the Construction Guarantee for a period consistent with the Construction Guarantee. Guarantee issued in EUR.
Echo Investment S.A.	Projekt Echo 135 Sp. z o.o. Sp.k.	A4 Business Park Sp. z o.o.	25 743	26.04.2027	Construction guarantee related to the sale of the A4 Business Park III office building in Katowice. The guarantee is secured by a corporate guarantee issued by Echo Investment S.A. Guarantee issued in EUR.
Echo Investment S.A.	Echo - Opolska Busi ness Park Sp. z o.o. Sp.k.	EPP Office O3 Busi ness Campus Sp. z o.o.	40 721	21.12.2027	Construction guarantee related to the sale of the O3 Business Campus II office build ing in Kraków. The guarantee is secured by a corporate guarantee issued by Echo Investment S.A. Guarantee issued in EUR.
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 Investment S.A.	Symetris - Projekt Echo 131 Sp. z o.o. Sp.k.	EPP Office – Syme tris Business Park Sp. z o.o.	17 870	31.08.2023	Construction guarantee related to the sale of the office building Symetris II in Łódź. Guarantee issued in EUR.

Guarantor	Issuer	Beneficiary	Value	Expiry date	Description
Echo Investment S.A.	Dellia Investments - Projekt Echo 115 Sp. z o.o. Sp.k.	LUX Europa III S.a.r.l.	102 693	31.12.2024	Security for the proper performance arising from the sale contract of the Gate house Offices building being part of the Warsaw Brewery complex. Guarantee issued in EUR.
Echo Investment S.A.	Dellia Investments - Projekt Echo 115 Sp. z o.o. Sp.k.	LUX Europa III S.a.r.l.	163 550	30.06.2030	Security for the proper performance liabilities arising from the quality guaran tee agreement related to sale agreement of the Gatehouse Office building in the Warsaw Brewery complex.
Echo Investment S.A.	Face2Face - Stranraer Sp. z o.o. S.K.A.	Bank Pekao S.A.	70 000	29.12.2023	Guarantee securing cost overrun, covering interests on minimal level and securing own contribution on Face2Face office project in Katowice.
Echo Investment S.A.	Echo - Opolska Busi ness Park Sp. z o.o. Sp.k.	EPP Office O3 Busi ness Campus Sp. z o.o.	37 757	9.08.2028	Construction guarantee related to the sale of the O3 Business Campus III office build ing in Kraków. The guarantee is secured by a corporate guarantee issued by Echo Investment S.A. Guarantee issued in EUR.
Echo Investment S.A.	Projekt 12 - Grupa Echo Sp. z o.o. S.K.A.	Tesco (Polska) Sp. z o.o.	0	30.06.2025	Corporate guarantee securing perfor mance of obligations regarding priority to lease space in the new shopping center, resulting from the preliminary sales contract of real estate concluded on 30.07.2019. Due to business and legal arrangements, the warranty has no upper limit potential liability.
Echo Investment S.A.	Dellia Investments - Projekt Echo 115 Sp. z o.o. Sp.k.	APAK Grundstücks gesellschaft mbH & Co. KG	96 611	11.03.2032	Security for the proper performance of obligations arising under quality guarantee agreement regarding to the Villa Offices (building K), being part of the Warsaw Brewery complex.
Echo Investment S.A.	Dellia Investments - Projekt Echo 115 Sp. z o.o. Sp.k.	Westinvest Ge sellschaft für Invest mentfonds mbH	182 005	5.08.2026	Security for the proper performance of ob ligations arising under the sale agreement of the Malthouse Offices (building GH) be ing part of the Warsaw Brewery complex. Guarantee issued in EUR.
Echo Investment S.A.	Dellia Investments - Projekt Echo 115 Sp. z o.o. Sp.k.	Westinvest Ge sellschaft für Invest mentfonds mbH	200 486	5.08.2031	Security for the proper performance of obligations arising under quality guarantee agreement regarding to the Malthouse Offices (building GH), being part of the Warsaw Brewery complex.
Echo Investment S.A.	Projekt Beethovena - Projekt Echo 122 Sp. z o.o. S.K.A.	Portfel2 PH5 sp. z o.o.	124 643	28.05.2030	Security for the proper performance of obligations arising under quality guarantee agreement related to sale of Moje MIejsce I office building.
Echo Investment S.A.	Dellia Investments - Projekt Echo 115 Sp. z o.o. Sp.k.	Westinvest Ge sellschaft für Invest mentfonds mbH	9 159	30.11.2031	Security for the proper performance of obligations arising under quality guaran tee agreement regarding building Villa Schiele, being part of the Warsaw Brewery complex.
Echo Investment S.A.	Projekt 17 - Grupa Echo Sp. z o.o. S.K.A.	Barcarrota Sp. z o.o.	82 498	20.01.2032	Security for the proper performance of obligations arising under quality guaran tee agreement regarding building West 4 Business Hub Phase I.
Sopockie Towarzystwo Ubezpieczeń ERGO Hestia S.A.	Projekt Beethovena - Projekt Echo 122 Sp. z o.o. S.K.A.	Portfel2 PH5 Sp. z o.o.	6 232	6.10.2026	Securing the proper performance of obli gations arising from the Quality Guarantee Agreement, related to the sale of real es tate located in Warsaw, at J. P. Dziekońsk iego Street No. 1 - Moje Miejsce stage 1.

Guarantor	Issuer	Beneficiary	Value	Expiry date	Description
Generali Towarzystwo Ubezpieczeń S.A.	Echo Investment S.A.	Miasto Stołeczne Warszawa	2 925	31.12.2025	Guarantee of proper performance of the contract in connection with the contract No. 4 / WIR / 2022 of 6.04.2022, con cerning the construction of the municipal road 2 KDD, concluded between the Obliged and the Beneficiary.
Total			1 762 784

Changes in guarantees issued by Echo Investment S.A. in the 1st half-year 2022 [PLN '000]

Change	Guarantor	Issuer	Beneficiary	Value	Expiry date	Description
Issue	Echo Investment S.A.	Projekt Echo 130 Sp. z o.o.	FARKAS Grundstücks gesellschaft mbH & Co. KG	30 182	31.12.2023	Security for the proper performance arising from the sale contract of the Fuzja CDJ buildings being part of the Fuzja complex. Guarantee issued in EUR.
Issue	Echo Investment S.A.	Projekt Echo 130 Sp. z o.o.	FARKAS Grundstücks gesellschaft mbH & Co. KG	983	30.06.2025	Corporate guarantee securing the rent guarantee related to the sale of Fuzja CDJ in Lodz (retail part). Guarantee issued in EUR.
Issue	Echo Investment S.A.	Projekt Echo 130 Sp. z o.o.	FARKAS Grundstücks gesellschaft mbH & Co. KG	103 221	30.06.2033	Security for the proper performance of obligations arising under quality guar antee agreement related to sale of Fuzja CD office buildings.
Issue	Echo Investment S.A.	Projekt Echo 130 Sp. z o.o.	FARKAS Grundstücks gesellschaft mbH & Co. KG	9 717	30.06.2033	Security for the proper performance of obligations arising under quality guaran tee agreement related to sale of Fuzja J office building.
Issue	Echo Investment S.A.	Projekt Echo 130 Sp. z o.o.	FARKAS Grundstücks gesellschaft mbH & Co. KG	987	30.06.2031	Corporate guarantee securing the rent guarantee and coverage of service charges related to the sale of Fuzja CDJ in Lodz (office part). Rent guarantee issued in EUR.
Issue	Echo Investment S.A.	Projekt Echo 130 Sp. z o.o.	FARKAS Grundstücks gesellschaft mbH & Co. KG	33 225	30.06.2032	Security for the proper performance of obligations arising under fit-out agree ment related to sale of Fuzja CDJ office buildings. Guarantee issued in EUR.
Issue	Echo Investment S.A.	Midpoint 71 - Cornwall Investments Sp. z o.o. S.K.A.	SER Poland Sp. z o.o.	179 242	30.09.2032	Corporate guarantee securing the quality guarantee related to the sale of Midpoint 71 in Wroclaw.
Issue	Echo Investment S.A.	Midpoint 71 - Cornwall Investments Sp. z o.o. S.K.A.	SER Poland Sp. z o.o.	1 123	21.12.2033	Unconditionally and irrevocably guaran tees of full, due and punctual perfor mance of all payment obligations under the lease agreement. Guarantee issued in EUR.
Issue	Echo Investment S.A.	Midpoint 71 - Cornwall Investments Sp. z o.o. S.K.A.	SER Poland Sp. z o.o.	97 228	31.03.2030	Corporate guarantee securing the sale agreement of Midpoint 71 in Wroclaw. Guarantee issued in EUR.
Issue	Echo Investment S.A.	Midpoint 71 - Cornwall Investments Sp. z o.o. S.K.A.	SER Poland Sp. z o.o.	13 628	30.09.2029	Corporate guarantee securing the rent guarantee and coverage of service charges related to the sale of Midpoint 71 in Wroclaw. Rent guarantee issued in EUR.
Expiry	Echo Investment S.A.	Metropolis – Projekt Echo 121 Sp. z o.o. S.K.A.	Giant Sp. z o.o.	17 000	30.05.2022	Security for the payment of the guar antee amount and contractual penalty under the preliminary sales contract of 17.03.20222.
Issue	Echo Investment S.A.	City Space Manage ment Sp. z o.o.	Midpoint 71 - Cornwall Invest ments Sp. z o.o. S.K.A.	960	25.05.2023	Corporate guarantee securing the City Space Management lease agreement. Guarantee issued in EUR.
Issue	Santander Bank Polska S.A. (within the credit limit Echo Investment S.A.)	Galeria Libero - Projekt Echo 120 Sp. z o.o. Sp.k.	Miasto Katowice	758	10.05.2023	Security under the warranty and quality guarantee for the obligations arising from the contract concluded on June 16, 2016 on the implementation of a road investment.
Expiry	Echo Investment S.A.	Echo - Opolska Busi ness Park Sp. z o.o. Sp.k.	EPP Office O3 Business Campus Sp. z o.o.	0	28.05.2022	Corporate guarantee securing rental guarantee related to the sale of O3 Business Campus II in Kraków. Guarantee partially issued in EUR.

Changes in guarantees issued by Echo Investment S.A. in the 1st half-year 2022 [PLN '000]

Change	Guarantor	Issuer	Beneficiary	Value	Expiry date	Description
Expiry	Echo Investment S.A.	Rosehill Investments Sp. z o.o.	IB 6 FIZAN w lik widacji	107 291	31.03.2022	Security for the proper performance of the obligations resulting from the pro gram contract concluded on 31.08.2017. Guarantee issued in EUR.
Expiry	Echo Investment S.A.	Projekt Beethovena - Projekt Echo 122 Sp. z o.o. S.K.A.	PKO BP S.A.	36 000	30.06.2022	Security for exceeding the costs of per forming the Moje Miejsce office project in Warsaw.
Expiry	PKO BP S.A. Biuro Finansowania Handlu	Dellia Investments - Projekt Echo 115 Sp. z o.o. Sp.k.	LUX Europa III S.a r.l.	6 450	20.05.2022	Security for the liabilities arising from the contract of quality guarantee concluded on 27.03.2019.
Expiry	Echo Investment S.A.	Projekt 132 - City Space - GP Sp. z o.o. Sp.k.	EPP Development 6 Sp. z o.o.	2 212	30.06.2022	Security for the liabilities arising from the lease agreement concluded on 4.06.2019. Modified by the annex of 22.05.2020. Guarantee issued in EUR.
Expiry	Echo Investment S.A.	142 - City Space - GP Sp. z o.o. Sp.k.	Berea Sp. z o.o.	22	31.03.2022	Security for the liabilities arising from the lease agreement concluded on 21.05.2019. Guarantee issued in EUR.
Extension	PKO BP S.A.	Sagittarius - Projekt Echo 113 Sp. z o.o. Sp.K	Warburg-HiH Invest Real Estate GmbH	665	31.05.2023	Security of the liabilities arising from the rental guarantee contract. The maximum amount of the liability will be succes sively reduced as the amount of the liability that is secured by the guarantee decreases. Guarantee issued in EUR.
Expiry	Echo Investment S.A.	Midpoint 71 - Cornwall Investments Sp. z o.o. S.K.A.	PKO BP S.A.	39 000	30.06.2022	Guarantee securing cost overrun and maintanance of unleased area on Mid point 71 office project in Wroclaw.
Expiry	Echo Investment S.A.	Midpoint 71 - Cornwall Investments Sp. z o.o. S.K.A.	PKO BP S.A.	20 337	30.06.2022	Guarantee securing debt service cover ratio and covering rent-free periods in lease agreements on Midpoint 71 office project in Wroclaw. Guarantee issued in EUR.
Expiry	Santander Bank Pols ka S.A.	Galeria Libero - Projekt Echo 120 Sp. z o.o. Sp.k.	Urząd Miasta Katowice	758	20.01.2022	Security under the warranty and the quality guarantee for the obligations resulting from the agreement on per forming the road project concluded on 16.06.2016.
Expiry	Echo Investment S.A.	Projekt Echo 130 Sp. z o.o.	Bank Pekao S.A.	28 609	30.06.2022	Guarantee securing cost overrun of the construction of Fuzja CDJ complex office project.
Issue	Echo Investment S.A.	Projekt 146 - CityS pace GP Sp. z o.o. Sp.K.	Face2Face - Stranraer Sp. z o.o. S.K.A.	735	30.04.2023	Security for liabilities resulting from the lease agreement concluded on 30.09.2020. Guarantee issued in EUR.
Expiry	PKO BP S.A. Biuro Finansowania Handru	Echo Investment S.A.	Gmina Miejska Kraków	282	10.05.2022	Guarantee of proper performance of the contract.
Issue	Echo Investment S.A.	Projekt Echo 130 Sp. z o.o.	Fujitsu Technolo gy Solutions Sp. z o.o.	24 786	1.12.2023	Security for the proper performance of obligations Projekt Echo 130 Sp.z o.o. as a landlord due to contractual penalties under the lease agreement of 31.01.2020. Guarantee issued in EUR.
Issue	Echo Investment S.A.	Projekt 17 - Grupa Echo Sp. z o.o. S.K.A.	Barcarrota Sp. z o.o.	33 120	31.12.2027	Security for the proper performance of obligations arising under the sale agree ment of the building West 4 Business Hub Phase I. Guarantee issued in EUR.

Changes in guarantees issued by Echo Investment S.A. in the 1st half-year 2022 [PLN '000]

Change	Guarantor	Issuer	Beneficiary	Value	Expiry date	Description
Issue	Echo Investment S.A.	Projekt 17 - Grupa Echo Sp. z o.o. S.K.A.	Barcarrota Sp. z o.o.	5 962	20.01.2028	Security for the proper performance of obligations arising under rental guar antee related to the office space and coverage of service charges in the West 4 Business Hub Phase I. Rent guarantee issued in EUR.
Issue	Echo Investment S.A.	Projekt 17 - Grupa Echo Sp. z o.o. S.K.A.	Barcarrota Sp. z o.o.	12 091	20.01.2028	Security for the proper performance of obligations arising under fit-out works agreement re. West 4 Business Hub Phase I. Guarantee issued in EUR.
Issue	Echo Investment S.A.	Projekt 17 - Grupa Echo Sp. z o.o. S.K.A.	Barcarrota Sp. z o.o.	82 498	20.01.2032	Security for the proper performance of obligations arising under quality guaran tee agreement regarding building West 4 Business Hub Phase I.
Issue	Generali Towarzystwo Ubezpieczeń S.A.	Echo Investment S.A.	Miasto Stołeczne Warszawa	2 925	31.12.2025	Guarantee of proper performance of the contract in connection with the contract No. 4 / WIR / 2022 of 6.04.2022, concerning the construction of the mu nicipal road 2 KDD, concluded between the Obliged and the Beneficiary.
Issue	Echo Investment S.A.	Projekt Beethovena - Projekt Echo 122 Sp. z o.o. S.K.A.	PKO BP S.A.	7 957	31.12.2026	Securing the coverage of additional amounts resulting from the rental holi days of approved lease agreements to ensure the required DSCR. Guarantee issued in EUR.
Expiry	Echo Investment S.A.	142 - City Space - GP Sp. z o.o. Sp.k.	Berea Sp. z o.o.	114	31.03.2022	Security for the liabilities arising from the lease agreement concluded on 21.05.2019. Guarantee issued in EUR.

Explanatory notes to profit and loss account

NOTE 17

Operating income material structure – types of activity [PLN '000]

	1.01.2022- 30.06.2022	1.01.2021- 30.06.2021
Revenues due to contracts with clients	105 158	166 674
Sale of residential and commercial space	20 789	95 475
Development services	40 965	33 883
including from related entities	40 965	33 835
from subsidiaries	29 935	25 613
from joint-ventures	11 030	8 222
Sale of plots of land	-	18 418
including from related entities	-	18 416
from joint-ventures	-	9 845
from subsidiaries	-	8 571
Legal, accounting, consulting and IT services	940	1 378
icluding from related entities	940	1 378
from subsidiaries	940	1 378
Financial, marketing, security services and other revenue	42 464	17 520
icluding from related entities	33 778	16 133
from subsidiaries	32 894	15 195
from joint-ventures	878	932
from key personnel	6	6
Revenues due to lease contracts	9 652	194
Lease services	9 652	194
icluding from related entities	322	15
from subsidiaries	322	15
Total operating income	114 810	166 868
icluding from related entities	76 005	69 777
from subsidiaries	64 091	60 617
from joint-ventures	11 908	9 154
from key personnel	6	6

The Company did not conclude transactions with related parties on terms other than market terms. The agreements concerning significant transactions with related entities

executed in the H1 2022 were presented by the Company in additional explanations.

NOTE 17A

Operating income – subleasing [PLN '000]

	1.01.2022- 30.06.2022	1.01.2021- 30.06.2021
Lease services	2 783	-
Total lease services	2 783	-

NOTE 17B

Operating revenue - territorial structure [PLN '000]

	1.01.2022- 30.06.2022	1.01.2021- 30.06.2021
Domestic	114 810	166 868
icluding from related entities	75 999	69 777
Abroad	-	-
icluding from related entities	-	-
Total net revenue from sale of products	114 810	166 868
icluding from related entities	75 999	69 777

Revenues related to development activity as at 30 June 2022 [PLN '000]

Targeted completion	Targeted revenue	Total value deferred revenue related to liabilities resulting from concluded agreements	Received advanced payments
project completed	69 371	35	-
project completed	37 015	-	-
project completed	40 743	447	419
project completed	30 249	941	-
project completed	16 215	-	-
project completed	57 997	46	-
project completed	64 554	-	-
project completed	116 872	2 797	-
project completed	44 750	73	76
	17	17	17
	477 783	4 356	512

The total value of revenues to be recognized in the future related to the obligations to perform the contract for the sale of residential and commercial space under contracts signed as at the balance sheet date, 30 June 2022 is PLN 4,356 thousand, of which up to the balance sheet date the Company received advance payments in the amount

of PLN 512 thousand. These revenues will be recognized when real estate is handed over to buyers, after construction is completed and necessary administrative decisions are obtained, which occurs on average after a period of approximately 1-3 months after the completion of construction.

Revenues related to development activity as at 31 December 2021 [PLN '000]

Project	Targeted completion	Targeted revenue	Total value deferred revenue related to liabilities resulting from concluded agreements	Received advanced payments
Osiedle Bonarka Living I, Kraków	project completed	69 520	9 275	5 567
Osiedle Jarzębinowe VII, Łódź	project completed	37 015	-	-
Osiedle Jarzębinowe VIII, Łódź	project completed	40 807	6 682	5 632
Nowa Dzielnica, Łódź	project completed	30 254	941	-
Grota - Roweckiego 111 etap III	project completed	16 232	44	-
Nasze Jeżyce, Poznań	project completed	57 997	66	-
Nasze Jeżyce II, Poznań	project completed	64 554	355	222
Apartamenty Esencja, Poznań	project completed	116 862	2 782	-
Ogrody Graua, Wrocław	project completed	44 869	5 087	2 059
Other projects		191	191	191
Total		478 301	25 423	13 671

Other operating revenue [PLN '000]

	1.01.2022- 30.06.2022	1.01.2021- 30.06.2021
Released provisions	-	2 124
due to receivables	-	-
for expected costs	-	2 124
Other, including:	1	9 175
contractual penalties and compensation	-	-
profit from sale of debt	1	9 015
revenue from sale of non-financial non-current assets	-	34
other	-	126
Interest on borrowings and bonds	45 996	19 222
from related entities, including:	45 996	19 222
from subsidiaries	39 843	15 446
from joint-ventures	6 153	3 776
Depreciation	-	-
on loans and bonds	-	-
Other interests	23	-
from other entities	23	-
Total	46 020	30 521

NOTE 18B

Other operating income from dividends and profit shares [PLN '000]

	1.01.2022- 30.06.2022	1.01.2021- 30.06.2021
From related entities including	143 658	54 437
from subsidiaries	143 658	54 437
Total	143 658	54 437

NOTE 19A

Financial income from interest [PLN '000]

	1.01.2022- 30.06.2022	1.01.2021- 30.06.2021
Other interest
from other entities	8	-
Total	8	-

NOTE 19B

Other financial income [PLN '000]

Foreign exchange gains - 4 215 realised - - Profit on sale of interests - 6 278 Profit on interests and certificates redemption* - - Profit on IRS use 1 128 - Revaluation of loans, credits and bonds - - Revaluation of shares - - Revaluation of financial derivates 8 571 4 368 Other 834 - Total 10 533 14 861	1.01.2022- 30.06.2022	1.01.2021- 30.06.2021

NOTE 19C

Financial costs of interest [PLN' 000]

	1.01.2022- 30.06.2022	1.01.2021- 30.06.2021
Interests and depreciation of loans, borrowings and bonds
for related entities	6 369	2 829
for subsidiaries	6 369	2 829
for interdependents	-	-
for a significant investor	-	-
for parent entity	-	-
for other entities	66 132	29 405
	72 501	32 234
Other interest
for other entities	3	5
	3	5
On lease
for other entities	1 294	308
	1 294	308
Depreciation of investment, including
interests	-	119
	-	119
Total financial costs on interests	73 798	32 666

The amount of borrowing costs capitalised to the value of inventories as at 31 December 2020 amounted to PLN 2,493 thousand (cap rate 1,37 percent) and as at 31 December 2021 - PLN 472 thousand (cap rate 1,25 percent).

NOTE 19D

Other financial costs [PLN '000]

	1.01.2022- 30.06.2022	1.01.2021- 30.06.2021
Foreign exchange losses	3 115	-
realized	1 522	-
not realized	1 593	-
Loos on closing - FX options	-	388
IRS	-	388
	-	-
Loss on disposal	485	-
interests	485	-
Other, including	4 156	6 922
commissions	4 156	2 048
other	-	4 874
liquidation of entities	-	-
Depreciation of investments	89	-
IRS	-	-
interests	89	-
Total	7 845	7 310

NOTE 20

Income tax – effective tax rate [PLN '000]

	1.01.2022- 30.06.2022	1.01.2021- 30.06.2021
Profit before tax	113 373	30 256
Income tax according to the national rates 19%	21 541	5 749
Dividends received	(24 510)	(8 740)
Distribution of profit from limited partnerships (Sp.k.)	(2 785)	(1 603)
Company's tax burden relative to the result of limited partnerships (subsidiaries)	-	146
Representation costs and other non-deductible costs during the year	5 878	4 569
Provision for expected cost	577	(404)
Measurement of interests of a subsidiary representing a permanent difference	17	23
Write-downs on loans granted due to which deferred tax was not recognised	968	400
Adjustment from previous years recognized in the result (current year)	(4 942)	-
Movements in the measurement of other items from previous years	6	400
Charges on the financial result due to income tax	(3 250)	540

Information on financial instruments [PLN '000]

				Balance value
Type of instrument	Note	Classification according to IFRS 9	at 30.06.2022	at 31.12.2021
Financial assets
Long-term and short-term financial assets			108 646	106 222
Bonds	4	amortized cost	108 646	106 222
Borrowings and receivables			1 414 595	1 468 126
Long-term borrowings	5	amortized cost	1 289 444	1 379 100
Short-term borrowings	10	amortized cost	246	262
Trade payables	9	amortized cost	51 487	29 189
Leasing	7, 9	amortized cost	39 686	40 653
Derivative financial instruments	6	fair value	33 732	18 922
Cash and other monetary assets			36 648	76 643
Other financial assets		amortized cost	229	2 404
Cash and cash equivalents		amortized cost	36 419	74 239
Financial liabilities
Other financial liabilities			2 050 324	2 116 435
Liabilities due to issue of debt securities	11, 14	amortized cost	1 546 890	1 457 376
Trade liabilities	13	amortized cost	12 377	21 824
Borrowings	11, 14	amortized cost	196 992	332 312
Loans	11, 14	amortized cost	152 710	164 577
Leasing	11, 13	amortized cost	128 146	133 376
Loans granted	11	fair value	13 209	6 970

IFRS 9, which replaced IAS 39, defines three categories of financial assets, depending on the business model in terms of asset management and the characteristics of cash flows resulting from the agreement:

• − assets measured after initial recognition at amortized cost – if financial assets are held according to the business model, the purpose of which is to maintain financial assets to obtain cash flows arising from the agreement and the contractual terms relating to those financial assets give rise to cash flows that are only repayment of the principal and the interest,
• − assets measured after initial recognition at fair value through other comprehensive income – if financial assets are held according to the business model, the purpose of which is both to maintain financial assets to obtain contractual cash flows and to sell financial assets and the contractual terms relating to those financial assets give rise to cash flows, which are only repayment of the principal and the interest,
• − assets measured at fair value through the profit and loss account - all other financial assets.

Due to the fact that the interest rate on financial instruments is related to the WIBOR and EURIBOR rates, the Management Board of the Company estimates that their fair value is approximately equal to the book value, taking into account the accrued interest.

Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 in relation to the IBOR reform.

In response to the expected interest rate benchmark reform (IBOR reform), the International Accounting Standards Board has released the second part of amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16. The amendments relate to accounting issues that will arise when IBOR-based financial instruments switch over to the new interest rates. The amendments introduce a number of guidelines and exemptions from 1 January 2021, in particular a practical simplification in the case of modifications to contracts required by the reform, which will be recognized by updating the effective interest rate, an exemption from the obligation to end hedge accounting, a temporary exemption from the need to identify the risk component, and the obligation to include additional disclosures. These amendments have been reviewed by the Company's Management Board and do not have a material impact on the Company's financial position,

business performance or the scope of information presented in these interim condensed financial statements. The interest rates on which the financial instruments are based are still published and are in accordance with the BMR Regulation.

The structure of financial instruments bearing interest at a variable interest rate [PLN '000]

Floating interest instruments	at 30.06.2022	at 31.12.2021
Financial assets	145 294	182 865
Financial liabilities	1 896 592	1 954 265
Total net	(1 751 298)	(1 771 400)

Information on financial statement of the Company

01 Principles adopted in financial report

Declaration of conformity

The condensed standalone financial statement of Echo Investment S.A. presenting financial data for the 1st half of 2022, covering the period from 1 January 2022 to 30 June 2022 have been drawn up in accordance with MSR 34 "Interim Financial Reporting" endorsed for use in the European Union.

The condensed standalone financial statement do not include all information and disclosures required in the annual standalone financial statements, therefore they should be read in conjunction with the standalone financial statements for the year ended 31 December 2021.

The condensed standalone financial statement of Echo Investment S.A. presents financial data for the 6-month period ending on 30 June 2022 and comparative data for the 12-month period ending on 31 December 2021 and for the 6-month period ending on 30 June 2021.

This financial statement was prepared with the historical cost principle with the exception of investment property, which was measured at fair value. The reporting currency in the financial statements and the functional currency of Echo Investment S.A. is Polish zloty (PLN). Unless indicated otherwise, all financial data in the Company's financial statements has been presented in thousand zlotys (PLN).

Assumption of continuity in operations

The statements have been drawn up according to the going concern principle as there are no circumstances indicating a threat to continued activity.

Approval of financial statements

The Company drew up the condensed standalone financial statement for the half year ended 30 June 2022, which was approved for publication on 27 September 2022. The Management Board of the Company has used its best judgment regarding the application of standards and interpretations, as well as the methods and principles of measurement of individual items of separate financial statements.

02 Significant contracts concluded with related entities

Due the adopted by the Echo Investment S.A. group a model for the implementation of each shopping center, office building and selected housing projects by a separate subsidiary, a large number of transactions are carried out with related entities.

Material agreements concluded with related entities and performed in H1 2022 [PLN '000]

Subject of the contract - obligation of Echo Investment S.A.	Contractor - investor	Value of the trans action
Real estate brokerage	Midpoint 71 - Cornwall Investments Sp. z o.o. S.K.A.	9 723
Investment project management	Midpoint 71 - Cornwall Investments Sp. z o.o. S.K.A.	6 201
Investment project management	Projekt Echo 130 Sp. z o.o.	2 178
Investment project management	Echo - Arena Sp. z o.o.	2 473
Real estate brokerage	Projekt 17 - Grupa Echo Sp. z o.o. S.K.A.	3 456
Real estate brokerage	Projekt Echo 130 Sp. z o.o.	4 695
Strategic cooperation	Achicom S.A.	4 501

Listed above transactions with related entities concern subsidiaries.

Transaction with related entities as at 30 June 2022 [PLN'000]

An affiliated entity	Sale	Purchase	Receivables	Write-downs	Liabilities
Subsidiaries	64 091	11 663	1 147 030	34 709	381 793
commercial	64 091	11 663	39 000	3	5 343
loans	-	-	999 384	30 495	196 992
bonds	-	-	108 646	4 211	-
advance payments *	-	-	-	-	166 249
an option reserve for the share premium	-	-	-	-	13 209
Joint-ventures	11 908	2	300 001	-	-
commercial	11 908	2	10 268	-	-
loans			289 733	-	-
Owners	-	9 268	-	-	-
commercial	-	9 268	-	-	-
The company's management	6	-	-	-	6 015
commercial	6	-	-	-	-
incentive program					6 015
Total	76 005	20 933	1 447 031	34 709	387 808

Advance payments for the sale of real estate to Archicom Lofty Platinum 1 Sp. z o. o. and Perth Sp. z o.o.

The impairment loss on assets as at 30 June 2022 was PLN 34,709 thousand.

Transaction with related entities as at 31 December 2021 [PLN'000]

An affiliated entity	Sale	Purchase	Receivables	Write-downs	Liabilities
Subsidiaries	126 465	17 491	1 217 471	29 612	509 612
commercial	126 465	17 491	16 286	2	4 081
loans	-	-	1 094 963	26 075	332 312
bonds	-	-	106 222	3 535	-
advance payments *	-	-	-	-	166 249
an option reserve for the share premium	-	-	-	-	6 970
Joint-ventures	31 470	3 340	11 098	-	-
commercial	31 470	3 340	11 098	-	-
Owners	-	17 595	-	-	1 899
commercial	-	17 595	-	-	1 899
The company's management	49	-	-	-	-
commercial	49	-	-	-	-
incentive program					9 059
Total	157 984	38 426	1 228 569	29 612	511 511

Methods for determining the financial result as at 30 June 2022 are not changed compared to the last audited financial report as of 31 December 2021.

04 Estimates of the Company's management board

Estimates of the Company's management board as at 30 June 2022 are not changed compared to the last audited financial report as of 31 December 2021.

05 New standards and interpretations that are effective as of 1 January 2022

The following standards and amendments to standards became effective on 1 January 2022:

Amendments to IAS 16

"Property, Plant and Equipment - the prohibition from deducting from the cost of an item of property, plant and equipment any proceeds from selling items produced while preparing the asset to begin operating in accordance with management's intentions."

Amendments to IFRS 3

"Business Combinations" - the update of the Conceptual Framework in IFRS standards

Amendments to IAS 37

"Provisions, Contingent Liabilities and Contingent Assets" - the clarification on whether an agreement is an onerous contract

Annual amendments to IFRS 2018 - 2020

(IFRS 1 "First-time Adoption of International Financial Reporting Standards", IFRS 9 "Financial Instruments", IAS 41 "Agriculture" and to illustrative examples to IFRS 16 "Leases")

The impact of the above amendments to standards and interpretations is being analyzed by the Management Board. The above amendments do not affect the Standalone Financial Statements and the Interim Condensed Standalone Financial Statements.

06 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 IFRS 4 "Insurance Contracts" entitled "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 on the accounting policy applied

It is 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 the Accounting Policy Applied

It is effective for annual periods beginning on or after 1 January 2023.

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 30 March 2021 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.

IFRS 17 "Insurance Contracts" as amended to IFRS 17

It is effective for annual periods beginning on or after 1 January 2023.

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 2023.

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.

Amendments to IAS 12 Income Taxes (issued on 7 May 2021)

Until the date of approval of these financial statements, not approved by the EU - applicable to annual periods beginning on 1 January 2023.

According to the Company'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 Company 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 Company'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 Company is currently analyzing how the implementation of the above standards and interpretations will affect the standalone financial statements and the accounting policies applied by the Company.

07 Significant events after the balance sheet day

Significant for Echo Investment S.A. events after the balance sheet day are described in the consolidated financial statements in section 06 Significant events after the balance sheet day.

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, 27 September 2022

Statement of the Management Board

The Management Board of Echo Investment S.A. declares that, to the best of its knowledge, the financial statements for the 1st half of 2022 and comparable data were prepared in accordance with the applicable accounting principles and reflect in a true, fair and clear view on the property and financial situation as well as financial results of the Company and the Group. The management report on operations of the Company and the Group provides a true view of the development and achievements and standing of Echo Investment S.A. and its group of companies, including including the description of major threats and risks.

The Management Board of Echo Investment S.A. declares that the entity authorized to audit financial statements, reviewing the condensed interim financial statements for the 1st half of 2022, was selected in accordance with the law. This entity and the auditors reviewing these statements satisfied the conditions for expressing an impartial and independent opinion on the audited interim financial statements, in accordance with applicable regulations and professional standards.

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, 27 September 2022

Contact

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