Standalone ANNUAL REPORT OF ECHO INVESTMENT S.A.

2019

CZĘŚĆ 1 Content

finansowe Echo

Message from CEO	4

Standalone FINANCIAL REPORT OF ECHO INVESTMENT S.A. FOR 2019

Jednostkowe sprawozdanie

Investment S.A. za 2019 r.

CHAPTER 1	8
Statement of financial position	8
Profit and loss account	10
Statement of financial results and other comprehensive income	10
Cash flow statement	11
Statement of changes in equity	13

Chapter 2	14
EXPLANATO RY NOTE S	14
Explanatory notes to the statement of financial position	15
Explanatory notes to profit and loss account	73
Explanatory notes to cash flow statement	83

CHAPTER 3	86
INFORMATION ON THE FINAN CIAL STATE MENT S	86

01.	About the Company	87
	The Management Board of Echo Investment S.A	88
	The Supervisory Board of Echo Investment S.A.	89
02.	Information on the financial statement	91
03.	Application of new and amended standards and interpretations
	issued by the IFRS Interpretations Committee	92

	Jednostkowe sprawoz danie Published standards and interpretations which are not effective yet and have not been
	adopted by the company	95
05.	finansowe Ec ho Main accounting principles	96
06.	Methods of determining the financial result	103
07.	Investment S.A. z a 2019 r. Effects of changing the principles of accounting used – transformations
	of financial statements for previous periods	105
08.	Material estimates of the Company's management board	107
09.	Financial risk management	109
10.	Capital risk management	113
11.	Material agreements concluded with related entities	114
12.	Material post-balance sheet events	116
13.	Remuneration of the Management Board and Supervisory Board	118
14.	Agreements concluded with an entity authorised to audit financial statements	121

CZĘŚĆ 1

Chapter 4	122
STATE MENT OF THE MANA GEMENT BOA RD	122
Contact	124

Message from CEO

Dear Shareholders, Partners and Clients,

Echo Investment has had another successful year with a great operational and financial results. I am pleased to provide you with this report in which we describe all activities of the company: our business achievements and development plans.

We are proud that the results for 2019 were higher than the market expectations. The obtained net profit of PLN 300 million results from the increase in the value of our office and retail projects, handover of 1,263 apartments, as well as the sale of office buildings Gatehouse Offices in Warsaw and O3 Business Campus III in Kraków. All this allowed for the payment of an advance dividend of PLN 0.50 per share.

In December 2019, Wing, Hungary's leading real estate company, has become Echo Investment's main shareholder. I am glad to share with you that Noah Steinberg, CEO of Wing and Chairman of Supervisory Board of Echo Investment since January, stated that they intend to continue the company's development in line with our 'Strategy of Profitable Growth' announced in 2016.

Multifunctional 'destination' projects

Today, the ongoing 'destination' projects are Warsaw Brewery and Fuzja in Łódź. In Fuzja we are experiencing great interest from tenants which is reflected in a fact that we have leased almost entire available office space. The same thing applies to Warsaw Brewery – we are in advanced negotiations on the whole remaining office space in the buildings.

On Warsaw Brewery we are finalising construction works and in the end of the year this entire great urban quarter will be fully available for citizens. In the Apartments near Malthouse project we are selling last units.

Attractive restaurateurs and tenants are being introduced into their premises. This is going to be the place to be in Warsaw for working, living and entertainment.

A year ago we have started construction works at Łódź-based Fuzja – the project that met a very warm reception. Its apartments' offer enjoys big interest from clients. In 2019 we received the building permit for the first office buildings in this complex and attracted Fujitsu Poland Global Delivery Center to move its headquarter here. This proofs a great potential and attractiveness of Fuzja in Łódź.

Both projects confirm, that the strategy based on developing integrated part of the cities where the history meets the present in design, is efficient and socially responsible. That is why we are preparing another 'destination' projects, such as Towarowa 22 in Warsaw. I am particularly satisfied of the acquisition of the Tesco shopping mall in Warsaw's Kabaty which is going to be transformed into the new center of the district. Another great deal was concluded in the beginning of 2020 where we secured three standing and working first generation shopping malls belonging to the Tesco Group that enable us to develop around 240,000 sqm mixed use area consisting of residential, office and retail space in Poznań, Łódź and Cracow.

Residential

We systematically strengthen our position is among the biggest residential developers in Poland. As one of the few developers in 2019, we improved our sale results. Our sales team signed 1,357 preliminary agreements, which translates into 38% of growth compare to 2018. Echo Investment began construction and launched nine projects offering over 1,800 apartments.

To develop our residential business, in 2019 and in the beginning of 2020, lands where over 8,000 apartments can be developed, were bought or secured.

Resi4Rent

Our residential-for-rent platform made a breakthrough in 2019: it started to market and lease its first projects Rychtalska in Wrocław and Wodna in Łódź. In just a dozen weeks from commissioning, the Wrocław-based project is rented in almost 70%, and the building in Łódź in approx. 40%.

The platform successfully grows and in just few weeks it will handover the third project Kępa Mieszczańska in Wrocław. With another projects being currently under construction Resi4Rent will manage a portfolio with 2,300 completed units already at the end of 2021. The client's huge interest and speed of leasing exceed our expectations and demonstrates huge potential of the institutional rental market in Poland. This is why we are going to develop the platform further and make it the first choice landlord for those, who seek comfortable apartment for rent from an institutional landlord.

Office

Last year, Echo Investment started construction of four office projects with a total leasable area of over 95,000 sqm, and has obtained the occupancy permit for two office buildings - Moje Miejsce I and Face 2 Face I - with a total area of nearly 40,000 sqm. Our leasing team signed lease agreements for a total area of 96,000 sqm. Among the largest tenants secured last year were such companies as Grupa Żywiec in the Warsaw Brewery, Pyszne.pl in Wrocław's MidPoint 71, LuxMed in O3 Business Campus III in Kraków, Just Gym in My Place in Warsaw, Medicover Polska in Katowice Face2Face, CitySpace in React in Łódź and last but not least Fujitsu Poland Global Delivery Center in Łódź-based Fuzja.

CitySpace

Last year our operator of flexible serviced offices increased its managed area by 70 pct. and it launched over 800 additional workstations. Currently it manages almost 17,000 sqm of space with around 1,900 workstations in ten locations. Last year the company launched as many as four offices: in the Aquarius Business House in Wrocław, Galeria Młociny in Warsaw, the Moje Miejsce office building in Warsaw's Mokotów district and the third building of the O3 Business Campus office complex in Kraków. The spaces under operations is having an occupancy rate of over 71% and it's growing.

Retail and entertainment

The opening of Galeria Młociny was one of key events of 2019, not only for Echo Investment, but for the entire retail sector in Poland. This complex is about 85,000 sqm of modern, well-designed space, where over 6,000 sqm is dedicated to food and entertainment. The international retail chain Primark confirmed its presence in Galeria Młociny. Its store in our scheme opens this spring and it will be the first location in Poland. Moreover, 40 new brands extended Galeria Młociny's offer in stores opened in August and September.

Although not yet fully completed, the Warsaw Brewery project is arousing enormous interest now. This is reflected, among others, by tenants who believed in the potential of this place and chose it for their market debut. Among them was Robert Lewandowski, Pjaca restaurant, as well as Craft & Beer Kumpel Atelier.

Financial standing and future outlook

Echo Investment enjoys a very stable financial situation and a low net asset-to-debt ratio, which as at 31 December 2019, was at 34%. The Group maintains a high cash balance: over PLN 490 million at the end of 2019.

The value of our projects under construction increased over the last four quarters by 30%.

Wing, Hungary's leading real estate company, has become Echo Investment's main shareholder. I am glad to share with you that Noah Steinberg, CEO of Wing and Chairman of Supervisory Board of Echo Investment since January, stated that they intend to continue the company's development in line with our 'Strategy of Profitable Growth' announced in 2016.

This is in line with our strategy to achieve dominant position on markets we operate in. This is why we constantly searching and buy land for further development. In 2019, we acquired land properties for over 170,000 sqm of residential and office space. Also another land for 190,000 sqm is already secured with preliminary agreements – mainly for residential projects (including projects for Resi4Rent).

Changes in global economy and all lines of business due to coronavirus, caused close analysis of our action plans to be prepared for the changes in the business environment that are ahead of us. We put great emphasis on the health and safety of our employees and business partners and with that in mind we are continually updating our plans for the next steps to ensure continuity of our business.

Nicklas Lindberg CEO of Echo Investment

Standalone FINANCIAL REPORT OF ECHO INVESTMENT S.A. FOR 2019

CHAPTER 1

Statement of

financial position

STATEMENT OF FINANCIAL POSITION [PLN '000]

	Note	31.12.2019	31.12.2018
ASSETS
Non-current assets
Intangible assets	1	3 614	2 445
Property, plant and equipment	2	21 766	5 284
Investment property	3	2 212	2 212
Investments in subsidiaries, jointly controlled entities and associates	4	1 021 440	975 449
Long-term financial assets	5	487 387	796 125
Loans granted	6	281 264	221 504
Deferred tax assets	7	-	-
		1 817 683	2 003 019
Current assets
Inventory	8	212 191	201 445
Current tax assets	9	-	-
Other taxes receivable	9	-	248
Trade and other receivables	9	121 507	109 224
Loans granted	10	533 608	265 621
Other financial assets	11	17 720	7 389
Cash and cash equivalents	11	232 147	181 977
		1 117 173	765 904

Total assets		2 934 856	2 768 923

STATEMENT OF FINANCIAL POSITION CONT. [PLN '000]

	Note	31.12.2019	31.12.2018
EQUITY AND LIABILITIES
Equity
Share capital	12	20 635	20 635
Supplementary capital	13	1 054 295	1 054 295
Dividend fund	13	164 639	326 309
Profit / (loss) from previous years	13	-	2 243
Net profit		21 412	42 432
		1 260 981	1 445 914
Provisions
Long-term provisions	17	15 507	17 317
Short-term provisions	17	-	-
Deferred tax liabilities	7	4 639	1 468
		20 146	18 785
Long-term liabilities
Loans, borrowings and bonds	14	1 063 866	903 448
– including from subsidiaries		127 007	-
Lease liabilities	14	12 645	-
Deposits and advances received	14	1 492	746
		1 078 003	904 194
Short-term liabilities
Loans, borrowings and bonds	16	362 212	267 725
Income tax payable	15	3 215	1 219
Other taxes liabilities	15	12 100	1 678
Trade payable	15	53 402	32 595
Deposits and advances received	15	104 940	74 795
Lease and perpetual usufruct conversion fee liabilities	15	13 274	-
Other liabilities	15	26 583	22 018
		575 726	400 030

Total equity and liabilities		2 934 856	2 768 923

PROFIT AND LOSS ACCOUNT [PLN '000]

Profit and loss account

	Note	1.01.2019 -31.12.2019	1.01.2018 -31.12.2018
Revenues	19	312 924	430 233
Cost of sales	20	(224 388)	(326 629)
Gross profit		88 536	103 604
Profit / (loss) on investment property		-	-
Administrative costs associated with project implementation		(10 588)	(4 757)
Selling expenses	20	(19 340)	(24 254)
General and administrative expenses	20	(91 967)	(85 748)
Other operating income	21	121 474	118 582
Other operating expenses	21	(5 390)	(52 402)
Operating profit		82 725	55 025
Financial income	22	11 089	86 130
Financial cost	22	(64 007)	(73 076)
Profit before tax		29 807	68 079
Income tax	23	(8 395)	(25 647)
Net profit		21 412	42 432

Net profit		21 412	42 432
Weighted average number of ordinary shares		412 690 582	412 690 582
Profit per one ordinary share (PLN)		0,05	0,10
Diluted weighted average number of ordinary shares		412 690 582	412 690 582
Diluted profit per one ordinary share (PLN)		0,05	0,10

STATEMENT OF FINANCIAL RESULTS AND OTHER COMPREHENSIVE INCOME [PLN '000]

Statement of financial results

Other comprehensive income for the year Other comprehensive income for the year, net of tax	- -	- -

Total comprehensive income	21 412	42 432

and other comprehensive income

CASH FLOW STATEMENT [PLN '000]

Cash flow statement

	Note	1.01.2019 -31.12.2019	1.01.2018 -31.12.2018
A. Operating cash flow – indirect method
I. Profit before tax		29 807	68 079
II. Adjustments		(46 770)	18 080
Depreciation		8 071	2 422
Foreign exchange gains / (losses)		-	-
Interest and profit sharing (dividends)		(57 355)	30 678
Profit / (loss) on revaluation of assets and liabilities		2 738	(15 020)
Profit (loss) on sale of fixed assets and investment properties		(224)	-
III. Changes in working capital		25 911	60 590
Change in provisions		(1 810)	(27 354)
Change in Inventory		(2 415)	16 542
Change in receivables		(28 687)	97 961
Change in short–term liabilities, except for loans and borrowings		69 154	(39 941)
Change in other financial assets		(10 331)	13 382
IV. Net cash generated from operating activities (I +/- II +/- III)		8 948	146 749
V. Income tax paid		(3 228)	(9 123)
VI. Net cash generated from operating activities (IV+/-V)		5 720	137 626
B. Cash flows from investing activities
I. Inflows		430 350	1 095 545
Disposal of intangible assets and tangible fixed assets		717	589
Sale of investments in property		-	-
From financial assets, including:		429 633	1 094 956
a) in subsidiaries		429 633	1 094 956
- disposal of financial assets		564	-
- dividends and profit sharing	21B	22 879	81 514
- repayment of loans granted		212 094	392 499
- interest		27 756	6 795
- redemption of certificates		28 400	518 354
- other inflows from financial assets		137 940	95 794
b) in other entities		-	-
- disposal of financial assets		-	-
- repayment of loans granted		-	-
- interest		-	-
Other investment incomes		-	-

CASH FLOW STATEMENT [PLN '000]

	Note	1.01.2019 -31.12.2019	1.01.2018 -31.12.2018
II. Outflows		(500 019)	(813 518)
Purchase of intangible assets and PP&E		(2 773)	(1 793)
Investment in property		-	-
On financial assets, including:		(497 246)	(811 330)
a) in subsidiaries		(497 246)	(788 094)
- acquisition of financial assets		(7 248)	(250 218)
- loans granted		(489 998)	(537 876)
b) in other entities		-	(23 236)
- acquisition of financial assets		-	(23 236)
- loans granted		-	-
Other investment outflows		-	(395)
Cash flow from financing activities		(69 669)	282 027
Net cash flow from investment activities		-	-
I. Inflows	25	634 648	671 675
Net inflows from issuing of shares and other capital instruments as well as capital additions		-	-
Loans and borrowings		500 816	431 675
Issue of debt securities		133 832	240 000
Other investment inflows		-	-
II. Outflows	25	(520 529)	(1 137 430)
Purchase of own shares		-	-
Dividends and other payments to equity holders		(206 345)	(412 690)
Outflows on profit distribution other than payments to owners		-	-
Repayment of loans and borrowings		(80 000)	(250 000)
Redemption of debt securities		(170 500)	(402 900)
Due to other financial liabilities		-	-
Payments of liabilities under leasing contracts		(6 269)	-
Interests		(54 825)	(65 440)
Other investment outflows		(2 590)	(6 400)
Net cash flow from financing activities		114 119	(465 755)

Total net cash flows		50 170	(46 102)
Balance sheet change in cash, including:		50 170	(85 740)
Cash and cash equivalents at the beginning of the period	25	181 977	241 461
Cash and cash equivalents at the end of the period	25	232 147	181 977

STATEMENT OF CHANGES IN EQUITY [PLN '000]

Statement of changes in equity

	Note	Share capital	Supplementary capital	Dividend fund	Accumulated retained earnings	Current profit	Total equity
Opening balance as at 1 January 2019		20 635	1 054 295	326 309	44 675	-	1 445 914
changes in accounting principle		-	-			-	-
Opening balance as at 1 January 2018		20 635	1 054 295	326 309	44 675	-	1 445 914
Changes in the period
Distribution of previous years' profit/loss	13			44 675	(44 675)	-	-
Dividend paid	13			(206 345)			(206 345)
Dividend approved	13				-		-
Profit (loss) for the period		-	-	-	-	21 412	21 412
Total changes in the period		-	-	(161 670)	(44 675)	21 412	(184 933)
Closing balance as at 31 December 2019		20 635	1 054 295	164 639	-	21 412	1 260 981
Opening balance as at 1 January 2018		20 635	839 054	319 579	634 661	-	1 813 929
changes in accounting principle		-	-		2 243	-	2 243
adjustments to previous years' results		-	-		-	-	-
Opening balance as at 1 January 2018		20 635	839 054	319 579	636 904	-	1 816 172
Changes in the period
Distribution of previous years' profit/loss	13	-	215 241	213 075	(428 316)	-	-
Dividend paid	13		-	(206 345)	(206 345)		(412 690)
Dividend approved	13				-		-
Profit for the period		-	-	-	-	42 432	42 432
Total changes in the period		-	215 241	6 730	(634 661)	42 432	(370 258)
Closing balance as at 31 December 2018		20 635	1 054 295	326 309	2 243	42 432	1 445 914

CZĘŚĆ 1 Chapter 2

Jednostkowe sprawozdanie EXPLANATORY NOTES

Investment S.A. za 2019 r.

finansowe Echo

Explanatory notes to the statement of financial position

NOTE 1A

The company did not recognise impairment losses in "intangible assets" item during the periods covered by the financial statements. The company has no contractual obligations as at 31 December 2019.

INTANGIBLE ASSETS [PLN '000]

Total intangible assets	3 614	2 445
Intangible assets under construction	563	772
- computer software	2 097	14
Acquired concessions, patents, licenses and similar assets, including:	3 051	1 673
	31.12.2019	31.12.2018

NOTE 1B

CHANGES IN INTANGIBLE ASSETS BY TYPES [PLN '000]

	Purchased permits, patents, licences and similar assets	Total
For the period 01.01.2019 – 31.12.2019	Software	Other	Intangible assets
Gross value of intangible assets at the beginning of the period	4 580	2 710	7 290
Increases	2 424	-	2 424
- due to purchase	2 424	-	2 424
Decreases	-	-	(3)
- due to sale		-	(3)
Gross value of intangible assets at the end of the period	7 004	2 710	9 711
Accumulated depreciation at the beginning of the period	(4 566)	(1 051)	(5 617)
Depreciation for the period	(341)	(373)	(1 043)
- planned	(341)	(373)	(1 046)
- due to sale		-	3
Accumulated depreciation at the end of the period	(4 907)	(1 424)	(6 660)

Net value of intangible assets at the end of the period	2 097	1 286	3 051

All intangible assets owned by the Company were acquired.

− acquired concessions, patents, licenses and similar values –the straight-line method, 50%, depreciation booked on general administrative costs,

Depreciation methods used and adopted periods of use or depreciation rates applied for:

− other intangible assets – not transferred for use as at 31 December 2019 are not depreciated.

	Purchased permits, patents, licences and similar assets
For the period 01.01.2018 – 31.12.2018	Software	Other	Total Intangible assets
Gross value of intangible assets at the beginning of the period	5 669	921	6 590
Increases	4	1789	1 793
due to purchase	4	1789	1 793
Decreases	(1 093)	-	(1 093)
- due to sale	(1 093)	-	(1 093)
Gross value of intangible assets at the end of the period	4 580	2 710	7 290
Accumulated amortization at the beginning of the period	(5 513)	(845)	(6 358)
Amortization for the period	947	(206)	741
- due to planning	(89)	(257)	(346)
- due to sale	1 036	51	1 087
Accumulated amortization at the end of the period	(4 566)	(1 051)	(5 617)
Net value of intangible assets at the end of the period	14	1 659	1 673

CHANGES IN INTANGIBLE ASSETS BY TYPES [PLN '000]

NOTE 2A

The Company did not make any impairment losses on property, plant and equipment in the periods covered by these financial statements. Before January 1, 2019, the Company did not hold any rights of perpetual usufruct of land (PWUG), that should be included in the calculation value at the transition is IFRS 16.

The Company has no collateral established on fixed assets.

PROPERTY, PLANT AND EQUIPMENT [PLN '000]

	31.12.2019	31.12.2018
PP&E, including:	21 669	5 040
- land	183	250
- buildings, premises, civil and water engineering structures	16 152	3 490
- plant and machinery	151	157
- means of transport	4 849	505
other PP&E	334	638
PP&E under construction	97	244
Advances on PP&E under construction	-	-
Total property, plant and equipment	21 766	5 284

CHANGES IN PP&E - BY TYPES [IN PLN '000]

For the period 01.01.2019 – 31.12.2019	Own land	Buildings and structures	Technical equipment and machines	Means of transport	Other PP&E	Total
Gross value of PP&E at the beginning of the period	258	4 266	4 479	2 665	4 364	16 032
- due to leases as at 01.01.2019	-	7 895	-	6 439	-	14 334
Gross value of PP&E at the beginning of the period	258	12 161	4 479	9 104	4 364	30 366
Increases	-	8 763	200	752	576	10 291
- due to purchase	-	760	200	-	576	1 536
- due to leases	-	8 003	-	752	-	8 755
Decreases	(64)	(421)	(1 183)	(392)	(1 211)	(3 271)
- due to liquidation	-	(190)	(782)	-	(578)	(1 550)
- due to sale	(64)	(231)	(401)	(392)	(633)	(1 721)
Gross PP&E at the end of the period	194	20 503	3 496	9 464	3 729	37 386
Accumulated depreciation at the beginning of the period	(8)	(776)	(4 322)	(2 160)	(3 726)	(10 992)
Depreciation for the period	(3)	(3 575)	977	(2 455)	331	(4 725)
- due to depreciation	(3)	(227)	(204)	(278)	(370)	(1 082)
- decrease due to sale	-	13	416	391	194	1 014
- due to leases		(3 406)		(2 568)		(5 974)
- due to liquidation		45	765		507	1 317
Accumulated depreciation at the end of the period	(11)	(4 351)	(3 345)	(4 615)	(3 395)	(15 717)
Net value of fixed assets at the end of the period	183	16 152	151	4 849	334	21 669
- including lease asset	-	12 492	-	4 623	-	17 115

The amount of contractual obligations incurred in connection with the acquisition of property, plant and equipment is: PLN 0.

CHANGES IN PP&E - BY TYPES [IN PLN '000]

	Own land	Buildings and structures	Technical equipment and machines	Means of transport	Other PP&E	Total
Gross value of fixed assets at the beginning of the period	258	3 248	5 132	3 297	4 137	16 072
Increases	-	1 018	634	-	690	2 342
- due to purchase	-	1 018	634	-	690	2 342
- due to transfer from inventories	-	-	-	-	-	-
Decreases	-	-	(1 287)	(632)	(463)	(2 382)
- due to sale	-	-	(1 287)	(632)	(463)	(2 382)
Gross value of fixed assets at the end of the period	258	4 266	4 479	2 665	4 364	16 032
Accumulated depreciation at the beginning of the period	(6)	(578)	(4 921)	(2 338)	(3 346)	(11 189)
Depreciation for the period	(2)	(198)	599	178	(380)	197
- due to depreciation	(2)	(198)	(668)	(445)	(770)	(2 083)
- decrease due to sale	-	-	1 267	623	390	2 280
Accumulated depreciation at the beginning of the period	(8)	(776)	(4 322)	(2 160)	(3 726)	(10 992)
Net value of fixed assets at the end of the period	250	3 490	157	505	638	5 040

The Company presents investment properties at the moment of their posting to the books at purchase price / production cost. After the initial posting, the Company measures properties at fair value at the end of each calendar quarter.

Profit/loss on valuation is disclosed under "Profit/loss on investment property" in the profit and loss account.

The fair value was determined using a market comparison model based on current market prices. In the hierarchy of fair value for investment properties, the Company assigned level 2.

The Company has no collateral established on investment properties. The Company has no contractual obligations as at 31 December 2019.

Value of property investments at the beginning of the period	2 212	2 212
Increases due to:	-	-
- inventory taking	-	-
- revaluation of property	-	-
Decreases due to:	-	-
- sales	-	-
- transfer of assets to sale	-	-
- revaluation of property	-	-

Value of property investments at the end of the period 2 212 2 212

NOTE 3B

INVESTMENT PROPERTY – INFLUENCE ON THE RESULT [PLN '000]

	1.01.2019- 31.12.2019	1.01.2018- 31.12.2018
Revenue from investment property rents	27	37
Direct operating expenses (including repair and maintenance costs) on investment property generating rent revenue in the period	(34)	(4)
Direct operating expenses (including repair and maintenance costs) on investment property not generating rent revenue in the period	-	-

NOTE 4A

The Company's share in the financial result of associates is equal to the total number of votes at their general meeting.

INTERESTS AND SHARES [PLN '000]

Total Interests and shares	1 021 440	975 449
- in associates	57 425	50 790
- in joint ventures	-	-
- in subsidiaries	964 015	924 659
Investments in subsidiaries, joint ventures and associates
	31.12.2019	31.12.2018

CHANGES IN INVESTMENT PROPERTY [PLN '000]

1.01.2019- 31.12.2019 1.01.2018- 31.12.2018

CHANGES IN INTERESTS AND SHARES [PLN '000]

	1.01.2019- 31.12.2019	1.01.2018- 31.12.2018
Balance at the beginning of the period, including:	975 449	927 796
- shares and interests	975 449	927 796
Increases due to:	202 740	362 321
- purchase of interests	149 069	126 995
- increase in capital	53 671	189 260
- advanced payments for capital increas	-	46 066
Decreases due to	(156 749)	(314 668)
- sale of interests	(141)	(49)
- capital decrease	-	(300 192)
- advances to increase capital	(46 066)
- subsidiary liquidation	(106 413)	(1 010)
- write–down on assets	(4 129)	(13 417)
Balance at the end of the period, including:	1 021 440	975 449
- shares and interests	1 021 440	975 449

CHANGES IN THE ECHO INVESTMENT CAPITAL GROUP IN 2019

ACQUISITION OF SHARES IN THE FOLLOWING COMPANIES

Company	Value of shares [PLN '000]
RPGZ Sp. z o.o.	21
Metropolis-Grupa Echo Sp. z o.o. S.K.A.	17 976
Duże Naramowice - PE-111 Sp. z o.o. S.K.A.	129 596
Villea Investments Sp. z o.o.	-

30 grudnia 2019 r. Spółka nabyła akcje spółki Duże Naramowice - PE 111 SP z o.o. SKA i Metropolis - Grupa Echo Sp. z o.o. SKA. Całość należności z tytułu nabycia akcji na 31 grudnia 2019 r. została rozliczona. Rozliczenie nastąpiło umowami potrącenia nabycia akcji z wykupem certyfikatów Forum 60 Fundusz Inwestycyjny Zamknięty dnia 30 grudnia 2019 r.

PAYMENT AND CAPITAL INCREASE IN THE FOL-LOWING SUBSIDIARIES

Company	Value of shares [PLN '000]
Projekt 17 - Ge Sp. z o.o. Sp.K.	46 000
City Space Gp Sp. z o.o.	100
City Space Management Sp. z o.o.	900
Projekt 151 - PE13 GE Sp. z o.o. S.K.A. Sp.K.	5
Projekt 152 - PE14 GE Sp. z o.o. S.K.A. Sp.K.	5
Projekt 153 - PE21 GE Sp. z o.o. S.K.A. Sp.K.	5
Projekt 154 - PK-6 GE Sp. z o.o. S.K.A. Sp.K.	5
Projekt 150 - PE12 GE Sp. z o.o. S.K.A. Sp.K.	5
R4R Poland Sp. z o.o.	6 635

SALE OF SHARES IN THE FOLLOWING COMPANIES

Company	Value of shares [PLN '000]
Projekt 15 - GE Sp. z o.o. Sp.K.	21
Projekt 139 - GE Sp. z o.o. Sp.K.	6
Projekt 144 - GE Sp. z o.o. Sp.K.	6
Projekt 145 - GE Sp. z o.o. Sp.K.	6
Projekt 146 - GE Sp. z o.o. Sp.K.	6
Cornwall Investments Sp.K.	15
Selmer Investments Sp. z o.o. Sp.K.	51
Galeria Nova - Grupa Echo Sp. z o.o. S.K.A.	31

LIQUIDATION OF SUBSIDIARIES

Company	Value of shares [PLN '000]
Echo Prime Assets BV	106 000

All receivables due to the company's liquidation was settled as at 31 December 2019. The settlement was made on 25 June 2019 by bank transfer for the amount of EUR 1 million; due the agreement on assignment of receivables of 25 March 2019, resulting from the loan agreement of 7 August 2017 between the Company and Berea Sp. z o.o.; the agreement on the deduction of receivables under the loan of EUR 23 million of 25 March 2019 and the agreement on the deduction under the dividend of receivables in the amount of EUR 7 million of 25 March 2019.

Changes in the Echo Investment capital group in 2018

Acquisition of shares in the following companies:

Company	Value of shares [PLN '000]
Projekt 1-Ge Sp. z o.o. SKA	4 004
Projekt 5 - Ge Sp. z o.o. SKA	50
Projekt Echo - 108 Sp. z o.o.	64
Villea Investments Sp. z o.o.	5
Bełchatów Ge Sp. z o.o. Ska	72
Fianar Investments Sp. z o.o.	5
PPR - Grupa Echo Sp. z o.o. SKA	159
Pudsey Sp. z o.o.	82
Seaford Sp. z o.o.	5
Kielce-Grupa Echo Sp. z o.o. SKA	136
Malta Office Park-Pe96 Sp. z o.o. SKA	2 467
53 - Ge Sp. z o.o. SKA	1 315
Projekt Beethovena - Pe-122 Sp. z o.o. SKA	3 429
Echo-Galaxy Sp. z o.o. SKA	8 560
Galeria Tarnów Grupa Echo Sp. z o.o. SKA	575
Avatar - Pe-119 Sp. z o.o. SKA	17 664
Oxygen - Pe-95 Sp. z o.o. SKA	26
Park Postępu-Pe-130 Sp. z o.o. SKA	1 587
Gosford Investments Sp. z o.o.	5
Doxent Investments Sp. z o.o.	5
Projekt Echo - 138 Sp. z o.o.	2
Gleann Sp. z o.o.	5
Perth Sp. z o.o.	5
Potton Sp. z o.o.	5
Rosehill Investments Sp. z o.o.	44 581
Projekt 140 - Ge Sp. z o.o. Sp.K.	15 000
R4r Poland Sp. z o.o.	4
Swanage Sp. z o.o.	10
Stranraer Sp. z o.o.	10
Dagnall Sp. z o.o.	10
Shanklin Sp. z o.o.	10
Strood Sp. z o.o.	27 125

Sale of shares in the following companies:

Company	Value of shares [PLN '000]
Projekt 141 - Ge Sp. z o.o. Sp.K.	6
Projekt 142 - Ge Sp. z o.o. Sp.K.	6
Projekt 143 - Ge Sp. z o.o. Sp.K.	6
Projekt Echo - 114 Sp. z o.o.	31
Villea Investments Sp. z o.o.
Fianar Investments Sp. z o.o.
Pudsey Sp. z o.o.	1
Echo Investment Hungary Kft

Payment and capital increase in the following subsidiaries:

Company	Value of shares [PLN '000]
Projekt 139 - Ge Sp. z o.o. Sp.K.	5
Projekt 140 - Ge Sp. z o.o. Sp.K.	5
Projekt 141 - Ge Sp. z o.o. Sp.K.	5
Projekt 142 - Ge Sp. z o.o. Sp.K.	5
Projekt 143 - Ge Sp. z o.o. Sp.K.	5
Projekt 144 - Ge Sp. z o.o. Sp.K.	5
Projekt 145 - Ge Sp. z o.o. Sp.K.	5
Projekt 146 - Ge Sp. z o.o. Sp.K.	5
Projekt 147 - Ge Sp. z o.o. Sp.K.	5
Projekt 148 - Ge Sp. z o.o. Sp.K.	5
Projekt 20 - GE Sp. z o.o. SKA	50 000
Projekt 22 - GE Sp. z o.o. SKA	49 000
Projekt Echo - 136 Sp.K.	84 000
R4R Poland Sp. z o.o.	6 220

Reduction of capital in a subsidiary:

Company	Value of shares [PLN '000]
Echo Prime Assets BV	300 192

Liquidation of subsidiaries:

Company	Value of shares [PLN '000]
Barconsel Holdings Limited	106 000
Projekt Echo - 77 Sp. z o.o.
Projekt Echo - 95 Sp. z o.o.
Projekt Echo - 96 Sp. z o.o.
Projekt Echo - 100 Sp. z o.o.
Mena Investment Sp. z o.o.
Echo-Klimt House Sp. z o.o.
Echo - Pod Klonami Sp. z o.o.

All receivables due to the capital reduction as at 31 December 2018 were settled. The settlement was made by a bank transfer of 27 November 2018 and the "datio in solutum" agreement of 26 November 2018 transferring the loan and ownership of the shares of the companies listed in the agreements.

Establishment of registered pledges aT of 31.12.2019

The company whose shares have been pledged	Title of pledge
Projekt Echo 120 Sp. z o.o.	collateral for a loan granted to the subsidiary Galeria Libero - Projekt Echo 120 Sp. z o.o. Sp.K. by Bank Zachodni WBK S.A. in the amount of EUR 101 million.
Projekt Echo 120 Sp. z o.o.	collateral for a loan granted to the subsidiary Galeria Libero - Projekt Echo 120 Sp. z o.o. Sp.K. by Bank Zachodni WBK S.A. in the amount of PLN 18 million.
Rosehill Investments Sp. z o.o.	collateral for a loan granted by CBRE Loan Services Limited to its subsidiary Berea Sp. z o.o. Sp.K. in the amount of EUR 16 million.
Projekt Echo 115 Sp. z o.o.	collateral for a loan granted to the subsidiary Dellia Investments - Projekt Echo 115 Sp. z o.o. Sp.K. by Bank Polska Kasa Opieki S.A. in the amount of EUR 131 million.
Projekt Echo 115 Sp. z o.o.	collateral for a loan granted to the subsidiary Dellia Investments - Projekt Echo 115 Sp. z o.o. Sp.K. by Bank Polska Kasa Opieki S.A. in the amount of PLN 26 million.
Projekt Beethovena - Projekt Echo - 122 Sp. z o.o. S.K.A.	collateral for a loan granted to the subsidiary Projekt Beethovena - Projekt Echo - 122 Sp. z o.o. Sp.K. by Nordea Bank Polski S.A. in the amount of EUR 75 million.
Projekt Beethovena - Projekt Echo - 122 Sp. z o.o. S.K.A.	a collateral for a loan granted to the subsidiary Projekt Beethovena - Projekt Echo - 122 Sp. z o.o.Sp.K. by Nordea Bank Polski S.A. in the amount of EUR 75 million.
Projekt Beethovena - Projekt Echo - 122 Sp. z o.o. S.K.A.	collateral for a loan granted to the subsidiary Projekt Beethovena - Projekt Echo - 122 Sp. z o.o. Sp.K. by Nordea Bank Polski S.A. in the amount of PLN 24 million.
Projekt Echo - 122 Sp. z o.o.	collateral for the loan granted to a subsidiary Projekt Beethovena - Projekt Echo - 122 Sp. z o.o. Sp.K. by Nordea Bank Polski S.A. in the amount of EUR 75 million.
Projekt Echo - 122 Sp. z o.o.	collateral for a loan granted to the subsidiary Projekt Beethovena - Projekt Echo - 122 Sp. z o.o. Sp.K. by Nordea Bank Polski S.A. in the amount of EUR 75 million.
Projekt Echo - 122 Sp. z o.o.	collateral for a loan granted to the subsidiary Projekt Beethovena - Projekt Echo - 122 Sp. z o.o.Sp.K. by Nordea Bank Polski S.A. in the amount of PLN 24 million.
Stranraer Sp. z o.o.	a collateral for a loan granted to the subsidiary Face2Face - Stranraer Sp. z o.o. SKA by Bank Polska Kasa Opieki S.A. in the amount of PLN 36 million.
Stranraer Sp. z o.o.	collateral for a loan granted to the subsidiary Face2Face - Stranraer Sp. z o.o. SKA by Bank Polska Kasa Opieki S.A. in the amount of PLN 130 million.
Face2Face – Stranraer Sp. z o.o. S.K.A.	collateral for a loan granted to the subsidiary Face2Face - Stranraer Sp. z o.o. SKA by Bank Polska Kasa Opieki S.A. in the amount of PLN 36 million.
Face2Face – Stranraer Sp. z o.o. S.K.A.	collateral for a loan granted to the subsidiary Face2Face - Stranraer Sp. z o.o. SKA by Bank Polska Kasa Opieki S.A. in the amount of PLN 130 million.
Dagnall Sp. z o.o.	collateral for a loan granted to React - Dagnall Sp. z o.o. SKA subsidiary by BNP Pari bas Bank Polska S.A. for EUR 29 million.
Dagnall Sp. z o.o.	collateral for a loan granted to React - Dagnall Sp. z o.o. SKA subsidiary by BNP Pari bas Bank Polska SA in the amount of PLN 1 million.

Establishment of registered pledges AT of 31.12.2018

The company whose shares were pledged	Pledge description
Projekt Echo 120 Sp. z o.o.	A collateral for the loan granted to the subsidiary Galeria Libero - Projekt Echo 120 Sp. z o.o. Sp.K. by Santander Bank Polska S.A. (former Bank Zachodni WBK S.A.) in the amount of EUR 101 mln
Projekt Echo 120 Sp. z o.o.	A collateral for the loan granted to the subsidiary Galeria Libero - Projekt Echo 120 Sp. z o.o. Sp.K. by Santander Bank Polska S.A. (former Bank Zachodni WBK S.A.) in the amount of PLN 18 mln
Projekt Echo 113 Sp. z o.o.	A collateral for the loan granted to the subsidiary Sagittarius - Projekt Echo 113 Sp. z o.o. Sp.K. by PKO BP S.A. in the amount of EUR 48 mln
Projekt Echo 113 Sp. z o.o.	A collateral for the loan granted to the subsidiary Sagittarius - Projekt Echo 113 Sp. z o.o. Sp.K. by PKO BP S.A. in the amount of PLN 9 mln
Projekt Echo 95 Sp. z o.o.	A collateral for the loan granted to the subsidiary Oxygen - Projekt Echo 95 Sp. z o.o. Sp.K. by Nordea Bank Polska S.A. in the amount of EUR 26 mln
Oxygen - Projekt Echo 95 Sp. z o.o. SKA	A collateral for the loan granted to the subsidiary Oxygen - Projekt Echo 95 Sp. z o.o. Sp.K. by Nordea Bank Polska S.A. in the amount of EUR 26 mln
Projekt Echo 95 Sp. z o.o. SKA	A collateral for the loan granted to the subsidiary Oxygen - Projekt Echo 95 Sp. z o.o. Sp.K. by Nordea Bank Polska S.A. . in the amount of EUR 26 mln
Projekt 5 - Grupa Echo Sp. z o.o. SKA	A collateral for the loan granted to the subsidiary Outlet Park - Projekt Echo 125 Sp. z o.o. Sp.K. prbyzez PKO BP S.A. . in the amount of EUR 26 mln

No.	Company name and legal form	Registered office	Business activity	Value of shares / interests according to the purchase price	Revaluation adjustments – opening balance	Revaluation adjustments – movement	Revaluation adjustments – closing balance	Carrying value of interests / shares	% of share capital held	Share in total number of votes at the general meeting	Another basis for control
	INTERESTS OR SHARES IN SUBSIDIARIES
1	Projekt Echo - 93 Sp. z o.o.	Kielce	lease and property management	51	-		-	51	99,00%	99,00%	none
2	Echo - Aurus Sp. z o.o.	Kielce	lease and property management	199 021	-	-	-	199 021	99,99%	99,99%	none
3	Princess Investment Sp. z o.o.	Kielce	execution of construc tion projects related to buildings	5 063	(5 063)		(5 063)	-	99,99%	99,99%	none
4	Bełchatów - Grupa Echo Sp. z o.o. S.K.A.	Kielce	lease and property management	73	-	(35)	(35)	38	99,95%	99,95%	none
5	PPR - Grupa Echo Sp. z o.o. S.K.A.	Kielce	lease and property management	160	(89)		(89)	71	99,95%	99,95%	none
6	Echo - SPV 7 Sp. z o.o.	Kielce	lease and property management	189 018	-		-	189 018	100,00%	100,00%	none
7	Grupa Echo Sp. z o.o.	Kielce	business and manage ment consultancy	52	-	(52)	(52)	-	100,00%	100,00%	none
8	Kielce - Grupa Echo Sp. z o.o. S.K.A.	Kielce	lease and property management	153	-		-	153	99,95%	99,95%	none
9	Echo Investment ACC - Grupa Echo Sp. z o.o. Sp.K.	Kielce	accounting and book keeping activities	51	-		-	51	99,00%	99,00%	none
10	Malta Office Park - Grupa Echo Sp. z o.o. S.K.A.	Kielce	lease and property management	2 469	-	(2 301)	(2 301)	168	99,95%	99,95%	none
11	Echo - Arena Sp. z o.o.	Kielce	execution of construc tion projects related to buildings	1 008	(1 008)		(1 008)	-	99,95%	99,95%	none
12	Echo - Galaxy Sp. z o.o.	Kielce	execution of construc tion projects related to buildings	51	-		-	51	99,00%	99,00%	none

No.	Company name and legal form	Registered office	Business activity	Value of shares / interests according to the purchase price	Revaluation adjustments – opening balance	Revaluation adjustments – movement	Revaluation adjustments – closing balance	Carrying value of interests / shares	% of share capital held	Share in total number of votes at the general meeting	Another basis for control
13	Echo - Opolska Biznes Park Sp. z o.o.	Kielce	lease and property management	52	-	(52)	(52)	-	100,00%	100,00%	none
14	Projekt Saska Sp. z o.o.	Kielce	real estate brokerage	20 420	(20 419)		(20 419)	1	95,00%	95,00%	none
15	Echo - Advisory Services Sp. z o.o.	Kielce	lease and property management	100	(100)		(100)	-	99,00%	99,00%	none
16	Echo - Browary Warszawskie Sp. z o.o.	Kielce	lease and property management	100	(71)		(71)	29	99,00%	99,00%	none
17	Echo - Kasztanowa Aleja Sp. z o.o. Sp.K.	Kielce	lease and property management	451	-		-	451	99,90%	99,90%	none
18	Klimt House - Grupa Echo Sp. z o.o. Sp.K.	Kielce	lease and property management	501	(200)	(22)	(222)	279	99,90%	99,90%	none
19	Echo - Browary Warszawskie Sp. z o.o. Sp.K.	Kielce	lease and property management	20 002	-		-	20 002	100,00%	100,00%	none
20	53 - Grupa Echo Sp. z o.o. S.K.A.	Kielce	lease and property management	1 317	-		-	1 317	100,0000%	100,0000%	none
21	Echo - Galaxy Sp. z o.o. S.K.A.	Kielce	lease and property management	8 611	(8 611)		(8 611)	-	99,95%	99,95%	none
22	Galeria Tarnów - Grupa Echo Sp. z o.o. S.K.A.	Kielce	lease and property management	577	-	(52)	(52)	525	99,95%	99,95%	none
23	Duże Naramowice - Projekt Echo - 111 Sp. z o.o. S.K.A.	Kielce	lease and property management	130 908	-		-	130 908	100,00%	100,00%	none
24	Avatar - Projekt Echo - 119 Sp. z o.o. S.K.A.		business and manage ment consultancy	17 665				17 665	99,95%	99,95%	none
25	Projekt Naramowice - Grupa Echo Sp. z o.o. S.K.A.	Kielce	execution of construc tion projects related to buildings	63 753	-		-	63 753	100,00%	100,00%	none
26	Oxygen - Grupa Echo Sp. z o.o. S.K.A.	Kielce	lease and property management	27	-	(27)	(27)	-	99,95%	99,95%	none
27	Park Postępu - Grupa Echo Sp. z o.o. S.K.A.	Kielce	lease and property management	1 587	(130)		(130)	1 457	99,95%	99,95%	none

No.	Company name and legal form	Registered office	Business activity	Value of shares / interests according to the purchase price	Revaluation adjustments – opening balance	Revaluation adjustments – movement	Revaluation adjustments – closing balance	Carrying value of interests / shares	% of share capital held	Share in total number of votes at the general meeting	Another basis for control
28	Echo - Nowy Mokotów Sp. z o.o.	Kielce	lease and property management	94	(76)		(76)	18	99,90%	99,90%	none
29	Metropolis - Grupa Echo 121 Sp. z o.o. S.K.A.	Kielce	lease and property management	18 156	-	(349)	(349)	17 807	100,00%	100,00%	none
30	Galeria Nova - Grupa Echo Sp. z o.o. S.K.A	Kielce	execution of construc tion projects related to buildings	16	-		-	16	100,00%	100,00%	none
31	Echo Investment Projekt Manage ment SRL	Brasov	property management	4 129	(4 135)	6	(4 129)	-	100,00%	100,00%	none
32	Projekt Echo - 99 Sp. z o.o.	Kielce	buying and selling of property on own account	97	(42)		(42)	55	99,80%	99,80%	none
33	Projekt 1 - Grupa Echo Sp. z. o.o. S.K.A.	Kielce	lease and property management	4 007	(78)		(78)	3 929	99,95%	99,95%	none
34	Pod Klonami - Grupa Echo Sp. z o.o. Sp.K.	Kielce	buying and selling of property on own account	10	-		-	10	99,00%	99,00%	none
35	Projekt CS Sp. z o.o.	Kielce	other financial bro kerage	122	(43)	(54)	(97)	25	99,00%	99,00%	none
36	Taśmowa - Projekt Echo - 116 Sp. z o.o. S.K.A.	Kielce	lease and property management	11	-		-	11	100,00%	100,00%	none
37	Projekt 5 - Grupa Echo Sp. z o.o. S.K.A.	Szczecin	lease and property management	51	(51)		(51)	-	99,95%	99,95%	none
38	Echo - Nowy Mokotów Sp. z o.o. Sp. K.	Kielce	buying and selling of property on own account	1 251	-		-	1 251	99,00%	99,00%	none
39	Projekt Echo - 104 Sp. z o.o.	Kielce	lease and property management	50	(50)		(50)	-	99,90%	99,90%	none
40	Projekt Echo - 108 Sp. z o.o.	Kielce	lease and property management	65				65	100,00%	100,00%	none

No.	Company name and legal form	Registered office	Business activity	Value of shares / interests according to the purchase price	Revaluation adjustments – opening balance	Revaluation adjustments – closing balance	Carrying value of interests / shares	% of share capital held	Share in total number of votes at the general meeting	Another basis for control
41	Echo - Babka Tower Sp. z o.o.	Kielce	lease and property management	51	(35)	(35)	16	100,00%	100,00%	none
42	Echo - Property Poznan 1 Sp. z o.o.	Kielce	business and manage ment consultancy	197	-	-	197	99,00%	99,00%	none
43	Projekt K-6 - Grupa Echo Sp. z o.o. S.K.A.	Kielce	business and manage ment consultancy	61	(50)	(50)	11	100,00%	100,00%	none
44	Projekt 12 - Grupa Echo Sp. z o.o. S.K.A.	Kielce	lease and property management	24	-	-	24	100,00%	100,00%	none
45	Projekt 13 - Grupa Echo Sp. z o.o. S.K.A.	Kielce	lease and property management	24	-	-	24	100,00%	100,00%	none
46	Projekt 14 - Grupa Echo Sp. z o.o. S.K.A.	Kielce	other financial bro kerage	24	-	-	24	100,00%	100,00%	none
47	Projekt 16 - Grupa Echo Sp. z o.o. S.K.A.	Kielce	real estate brokerage	50	-	-	50	100,00%	100,00%	none
48	Projekt 17 - Grupa Echo Sp. z o.o. S.K.A.	Kielce	real estate brokerage	46 050	-	-	46 050	100,00%	100,00%	none
49	Projekt 18 - Grupa Echo Sp. z o.o. S.K.A.	Kielce	real estate brokerage	50	(36)	(36)	14	100,00%	100,00%	none
50	Projekt 19 - Grupa Echo Sp. z o.o. S.K.A.	Kielce	real estate brokerage	50	(30)	(30)	20	100,00%	100,00%	none
51	Face2Face - Stranraer Sp. z o.o. S.K.A.	Kielce	real estate brokerage	50 050	-	-	50 050	100,00%	100,00%	none
52	Projekt 21 - Grupa Echo Sp. z o.o. S.K.A.	Kielce	real estate brokerage	50	(30)	(30)	20	100,00%	100,00%	none
53	Projekt 22 - Grupa Echo Sp. z o.o. S.K.A.	Kielce	real estate brokerage	49 050	-	-	49 050	100,00%	100,00%	none
54	Pure Systems Sp. z o.o.	Cracow	other financial services, except insurance and retirement funds	1			1	99,90%	99,90%	none
55	Projekt Echo - 111 Sp. z o.o.	Kielce	lease and property management	101	(29)	(29)	72	99,95%	99,95%	none

No.	Company name and legal form	Registered office	Business activity	Value of shares / interests according to the purchase price	Revaluation adjustments – opening balance	Revaluation adjustments – movement	Revaluation adjustments – closing balance	Carrying value of interests / shares	% of share capital held	Share in total number of votes at the general meeting	Another basis for control
56	Projekt Echo - 112 Sp. z o.o.	Kielce	lease and property management	31	-	(31)	(31)	-	100,00%	100,00%	none
57	Projekt Echo - 113 Sp. z o.o.	Kielce	lease and property management	31	-	(31)	(31)	-	100,00%	100,00%	none
58	Projekt Echo - 115 Sp. z o.o.	Kielce	lease and property management	31	-	(31)	(31)	-	99,83%	99,83%	none
59	Projekt Echo - 116 Sp. z o.o.	Kielce	lease and property management	31	-		-	31	99,83%	99,83%	none
60	Projekt Echo - 119 Sp. z o.o.	Kielce	lease and property management	25	(20)		(20)	5	99,80%	99,80%	none
61	Projekt Echo - 120 Sp. z o.o.	Kielce	lease and property management	31	-	(31)	(31)	-	100,00%	100,00%	none
62	Projekt Echo - 121 Sp. z o.o.	Kielce	lease and property management	31	-		-	31	100,00%	100,00%	none
63	Projekt Echo - 122 Sp. z o.o.	Kielce	lease and property management	31	-	(31)	(31)	-	100,00%	100,00%	none
64	Projekt Echo - 127 Sp. z o.o.	Kielce	lease and property management	31	-		-	31	100,00%	100,00%	none
65	Projekt Echo - 128 Sp. z o.o.	Kielce	lease and property management	31	-	(31)	(31)	-	100,00%	100,00%	none
66	Projekt Echo - 130 Sp. z o.o.	Kielce	lease and property management	41	(31)	-	(31)	10	100,00%	100,00%	none
67	Projekt Echo - 131 Sp. z o.o.	Kielce	lease and property management	31	(21)	(10)	(31)	-	100,00%	100,00%	none
68	Projekt Echo - 132 Sp. z o.o.	Kielce	lease and property management	5 373	(1 472)		(1 472)	3 901	100,00%	100,00%	none
69	Projekt Echo - 135 Sp. z o.o.	Kielce	lease and property management	31	-	(31)	(31)	-	100,00%	100,00%	none
70	Projekt Echo - 136 Sp. z o.o.	Kielce	lease and property management	31	-		-	31	100,00%	100,00%	none

No.	Company name and legal form	Registered office	Business activity	Value of shares / interests according to the purchase price	Revaluation adjustments – opening balance	Revaluation adjustments – movement	Revaluation adjustments – closing balance	Carrying value of interests / shares	% of share capital held	Share in total number of votes at the general meeting	Another basis for control
71	Projekt Echo - 137 Sp. z o.o.	Kielce	lease and property management	31	-		-	31	100,00%	100,00%	none
72	Projekt Echo - 136 Sp. z o.o. Sp. K.	Kielce	lease and property management	84 006	-		-	84 006	99,00%	99,00%	none
73	Villea investments Sp. z o.o.	Warsaw	lease and property management	6				6	100,00%	100,00%	none
74	Selmer Investments Sp. z o.o.	Warsaw	business and manage ment consultancy	12	-		-	12	100,00%	100,00%	none
75	Selmer Investments Sp. K.	Warsaw	business and manage ment consultancy	14	-		-	14	100,00%	100,00%	none
76	Cornwall Investments Sp. z o.o.	Warsaw	business and manage ment consultancy	12	-		-	12	100,00%	100,00%	none
77	Gosford Investments Sp.z o.o.	Warsaw	lease and property management	5				5	100,00%	100,00%	none
78	Fianar Investments Sp. z o.o.	Warsaw	business and manage ment consultancy	5				5	100,00%	100,00%	none
79	Doxent Investments Sp. z o.o.	Warsaw	lease and property management	5				5	100,00%	100,00%	none
80	City Space - GP Sp. z o.o.	Warsaw	lease and property management	137	(37)	(100)	(137)	-	100,00%	100,00%	none
81	City Space - Management Sp. z o.o.	Warsaw	other activities related to the provision of employees	937	(37)	(900)	(937)	-	100,00%	100,00%	none
82	Gleann Sp. z o.o.	Warsaw	lease and property management	5				5	100,00%	100,00%	none
83	Perth Sp. z o.o.	Warsaw	lease and property management	5				5	100,00%	100,00%	none
84	Potton Sp. z o.o.	Warsaw	lease and property management	5				5	100,00%	100,00%	none
85	Pudsey Sp. z o.o.	Warsaw	business and manage ment consultancy	82				82	100,00%	100,00%	none

No.	Company name and legal form	Registered office	Business activity	Value of shares / interests according to the purchase price	Revaluation adjustments – opening balance	Revaluation adjustments – movement	Revaluation adjustments – closing balance	Carrying value of interests / shares	% of share capital held	Share in total number of votes at the general meeting	Another basis for control
86	Seaford Sp. z o.o.	Warsaw	business and manage ment consultancy	6				6	100,00%	100,00%	none
87	Elektrownia RE Sp. z o.o.	Warsaw	buying and selling of property on own account	36 286				36 286	100,00%	100,00%	none
88	Projekt 140 Grupa Echo Sp. z o.o Sp. K.	Kielce	lease and property management	15 006				15 006	99,99%	99,99%	none
89	GRO Nieruchomości Sp. z o.o.	Cracow	lease and property management	10				10	100,00%	100,00%	none
90	Projekt 147 Grupa Echo Sp. z o.o Sp. K.	Kielce	lease and property management	6				6	99,99%	99,99%	none
91	Projekt 148 Grupa Echo Sp. z o.o Sp. K.	Kielce	lease and property management	6				6	99,99%	99,99%	none
92	Swanage Sp. z o.o.	Warsaw	lease and property management	10	(10)		(10)	-	100,00%	100,00%	none
93	Stranraer Sp. z o.o.	Warsaw	lease and property management	10				10	100,00%	100,00%	none
94	Dagnall Sp. z o.o.	Warsaw	lease and property management	10				10	100,00%	100,00%	none
95	Shanklin Sp. z o.o.	Warsaw	lease and property management	10				10	100,00%	100,00%	none
96	Strood Sp. z o.o.	Warsaw	lease and property management	27 125				27 125	100,00%	100,00%	none
97	RPGZ Sp. z o.o.*	Cracow	execution of construc tion projects related to buildings	21				21	100,00%	100,00%	none
98	Projekt Beethovena - Projekt Echo - 122 Sp. z o.o - S.K.A.	Kielce	lease and property management	3 430		-	-	3 430	99,95%	99,95%	none
99	Projekt 150 - Shanklin z o.o. S.K.A. Sp.K.*	Kielce	lease and property management	6				6	99,99%	99,99%	none
100	Projekt 151 - PE13 GE z o.o. S.K.A. Sp.K.*	Kielce	lease and property management	6				6	99,99%	99,99%	none

% of share capital held	Share in total number of votes at the general meeting	Another basis for control
99,99%	99,99%	none
99,99%	99,99%	none
99,99%	99,99%	none
99,99%	99,99%	none
100,00%	100,00%	none
100,00%	100,00%	none
100,00%	100,00%	none
100,00%	100,00%	none
100,00%	100,00%	none
100,00%	100,00%	none


34,00%	34,00%	none

No.	Company name and legal form	Registered office	Business activity	Value of shares / interests according to the purchase price	Revaluation adjustments – opening balance	Revaluation adjustments – movement	Revaluation adjustments – closing balance	Carrying value of interests / shares	% of share capital held	Share in total number of votes at the general meeting	Another basis for control
			Total	34	(34)	-	(34)	-
	INTERESTS OR SHARES IN CO-CONTROLLED ENTITIES
1	Rosehill Investments Sp. z o.o.	Warsaw	lease and property management	44 581				44 581	30,00%	30,00%	none
2	Projekt Echo - 138 Sp. z o.o.	Warsaw	lease and property management	2				2	30,00%	30,00%	none
3	R4R Poland Sp. z o.o.	Warsaw	lease and property management	12 842				12 842	30,00%	30,00%	none
			Total	57 425	-	-	-	57 425
	TOTAL INTERESTS OR SHARES IN SUBSIDIARIES			1 067 643	(42 038)	(4 165)	(46 203)	1 021 440

* companies acquired and established in 2019

In the chart the Company presented a revaluation write-down of the value of owned shares and stocks in subsidiaries, jointly controlled entities and associates, which was made during the financial year.

If the revaluation write-down is not made, in opinion of the Company, there were no indications as at the balance sheet date that the need to change the value of adjustments have to be made.

The change in the value of adjustments updating the value of shares was recognised in the result as at 31 December 2019 in the 'revaluation of investments' item in financial revenue/ expenses. The costs included the amount of the impairment loss created amounting to PLN 4,165,000.

According to IFS 12 paragraph 44, the Company analyzed an asset on owned shares in subsidiaries and does not create it, due to lack of possibility to reversal of its value in predictable future.

The Company has 100% control over entities listed above directly – by holding its shares or indirectly, by other subsidiaries controlled by the Company. The exemptions of this are companies: Projekt Saska Sp. z o.o., Rosehill Investments Sp. z o.o., Projekt Echo - 138 Sp. z o.o. and R4R Poland Sp. z o.o.

No.	Company name and legal form	Registered office	Business activity	Value of shares/ interests according to the purchase price	Revaluation adjustments – opening balance	Revaluation adjustments – movement	Revaluation adjustments – closing balance	Carrying value of interests/ shares	% Share capi tal held	Share in total number of votes at the general meet ing	Another basis for control
	INTERESTS OR SHARES IN SUBSIDIARIES
1	Projekt Echo - 93 Sp. z o.o.	Kielce	property lease and man agement	51	-		-	51	99,00%	99,00%	–
2	Echo - Aurus Sp. z o.o.	Kielce	property lease and man agement	199 021	-	-	-	199 021	99,99%	99,99%	–
3	Princess Investment Sp. z o.o.	Kielce	construction works involving erection of buildings	5 063	(5 063)		(5 063)	-	99,99%	99,99%	–
4	Bełchatów - Grupa Echo Sp. z o.o. S.K.A.	Kielce	property lease and man agement	73	-		-	73	99,95%	99,95%	–
5	PPR - Grupa Echo Sp. z o. o. S.K.A.	Kielce	property lease and man agement	160	-	(89)	(89)	71	99,95%	99,95%	–
6	Echo - SPV 7 Sp. z o. o.	Kielce	property lease and man agement	189 018	-		-	189 018	100,00%	100,00%	–
7	Grupa Echo Sp. z o.o.	Kielce	business consulting and management	52	-		-	52	100,00%	100,00%	–
8	Kielce - Grupa Echo Sp. z o.o. S.K.A.	Kielce	property lease and man agement	153	-		-	153	99,95%	99,95%	–
9	Echo Investment ACC - Grupa Echo Sp. z o.o. Sp.K.	Kielce	accounting and book keeping activity	51	-		-	51	99,00%	99,00%	–
10	Malta Office Park - Grupa Echo Sp. z o.o. S.K.A.	Kielce	property lease and man agement	2 469	-		-	2 469	99,95%	99,95%	–
11	Echo - Arena Sp. z o.o.	Kielce	rimplementation of pro jects by construction of buildings	1 008	(1 008)		(1 008)	-	99,95%	99,95%	–
12	Echo - Galaxy Sp. z o.o.	Kielce	implementation of pro jects by construction of buildings	51	-		-	51	99,00%	99,00%	–
13	Echo - Opolska Biznes Park Sp. z o.o.	Kielce	property lease and man agement	52	-		-	52	100,00%	100,00%	–

14 Projekt Saska Sp. z o.o. Kielce real estate brokerage 20 420 (20 419) (20 419) 1 95,00% 95,00% 15 Echo - Advisory Services Sp. z o.o. Kielce property lease and man 100 (100) - (100) - 99,00% 99,00% agement 16 Kielce property lease and man 100 (71) (71) 29 99,00% 99,00% Echo - Browary Warszawskie Sp. z o.o. agement 17 Echo - Kasztanowa Aleja Sp. z o.o. Kielce property lease and man 451 - - 451 99,90% 99,90% Sp.K. agement 18 Klimt House - Grupa Echo Sp. z o.o. Kielce property lease and man 501 (200) (200) 301 99,90% 99,90% agement Sp.K. 19 Kielce property lease and man 20 002 - - 20 002 100,00% 100,00% Echo - Browary Warszawskie Sp. z o.o. Sp.K. agement 20 53 - Grupa Echo Sp. z o.o. S.K.A. Kielce property lease and man 1 317 - - 1 317 99,9500% 99,9500% agement 21 Kielce property lease and man 8 611 (49) (8 562) (8 611) - 99,95% 99,95% Echo - Galaxy Sp. z o.o. S.K.A. agement 22 Galeria Tarnów - Grupa Echo Sp. z o.o. Kielce property lease and man 577 - - 577 99,95% 99,95% S.K.A. agement 23 Duże Naramowice - Projekt Echo - 111 Kielce property lease and man 17 - - 17 0,0127% 0,0127% agement Sp. z o.o. S.K.A. 24 other business consult 17 665 17 665 99,95% 99,95% Avatar - Projekt Echo - 119 Sp. z o.o. S.K.A. ing and management 25 Projekt Naramowice - Projekt Echo - Kielce construction works 63 753 - - 63 753 0,0319% 0,0319% involving erection of 100 Sp. z o.o. S.K.A. buildings 26 Oxygen - Grupa Echo Sp. z o.o. S.K.A. Kielce property lease and man 27 - - 27 99,95% 99,95% agement 27 Park Postępu - Grupa Echo Sp. z o.o. Kielce property lease and man 1 587 - (130) (130) 1 457 99,95% 99,95% agement S.K.A. 28 Kielce property lease and man 94 (76) (76) 18 99,90% 99,90% Echo - Nowy Mokotów Sp. z o.o. agement	No.	Company name and legal form	Registered office	Business activity	Value of shares/ interests according to the purchase price	Revaluation adjustments – opening balance	Revaluation adjustments – movement	Revaluation adjustments – closing balance	Carrying value of interests/ shares	% Share capi tal held	Share in total number of votes at the general meet ing	Another basis for control
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No.	Company name and legal form	Registered office	Business activity	Value of shares/ interests according to the purchase price	Revaluation adjustments – opening balance	Revaluation adjustments – movement	Revaluation adjustments – closing balance	Carrying value of interests/ shares	% Share capi tal held	Share in total number of votes at the general meet ing	Another basis for control
29	Metropolis - Grupa Echo 121 Sp. z o. o. S.K.A.	Kielce	property lease and man agement	-	-		-	-	0,000050%	0,000050%	–
30	Galeria Nova - Grupa Echo Sp. z o.o. S.K.A	Kielce	implementation of pro jects by construction of buildings	16	-		-	16	100,00%	100,00%	–
31	Echo Investment Projekt Management SRL	Brasov	property management	4 129	(4 059)	(76)	(4 135)	(6)	100,00%	100,00%	–
32	Projekt Echo - 99 Sp. z o. o.	Kielce	buying and selling of property on own account	97	(42)		(42)	55	99,80%	99,80%	#ADR!
33	Projekt 1 -Grupa Echo Sp. z. o. o. S.K.A.	Kielce	property lease and man agement	4 007	-	(78)	(78)	3 929	99,95%	99,95%	–
34	Pod Klonami - Grupa Echo Sp. z o. o. Sp.K.	Kielce	buying and selling of property on own account	10	-		-	10	99,00%	99,00%	–
35	Projekt CS Sp. z o.o.	Kielce	other cash brokerage	122	(43)		(43)	79	99,00%	99,00%	–
36	Taśmowa - Projekt Echo - 116 Sp. z o.o. S.K.A.	Kielce	property lease and man agement	11	-		-	11	100,00%	100,00%	–
37	Projekt 5 - Grupa Echo Sp. z o.o. S.K.A.	Szczecin	property lease and man agement	51	-	(51)	(51)	-	99,95%	99,95%	–
38	Echo - Nowy Mokotów Sp. z o. o. Sp. K.	Kielce	buying and selling of property on own account	1 251	-		-	1 251	99,00%	99,00%	–
39	Projekt Echo - 104 Sp. z o. o.	Kielce	property lease and man agement	50	(50)		(50)	-	99,90%	99,90%	–
40	Projekt Echo - 108 Sp. z o. o.	Kielce	property lease and man agement	65				65	100,00%	100,00%	–
41	Echo - Babka Tower Sp. z o. o.	Kielce	property lease and man agement	51	(35)		(35)	16	100,00%	100,00%	–
42	Echo - Property Poznan 1 Sp. z o. o.	Kielce	other business consult ing and management	197	-		-	197	99,00%	99,00%	–

No.	Company name and legal form	Registered office	Business activity	Value of shares/ interests according to the purchase price	Revaluation adjustments – opening balance	Revaluation adjustments – closing balance	Carrying value of interests/ shares	% Share capi tal held	Share in total number of votes at the general meet ing	Another basis for control
43	Projekt K-6 - Grupa Echo Sp. z o.o. S.K.A.	Kielce	other business consult ing and management	61	(50)	(50)	11	100,00%	100,00%	–
44	Projekt 12 - Grupa Echo Sp. z o.o - S.K.A.	Kielce	property lease and management	24	-	-	24	100,00%	100,00%	–
45	Projekt 13 - Grupa Echo Sp. z o.o - S.K.A.	Kielce	property lease and management	24	-	-	24	100,00%	100,00%	–
46	Projekt 14 - Grupa Echo Sp. z o.o - S.K.A.	Kielce	other financial brokerage	24	-	-	24	100,00%	100,00%	–
47	Projekt 15 - Grupa Echo Sp. z o.o - S.K.A.	Kielce	real estate brokerage	50	(29)	(29)	21	100,00%	100,00%	–
48	Projekt 16 - Grupa Echo Sp. z o.o - S.K.A.	Kielce	real estate brokerage	50	-	-	50	100,00%	100,00%	–
49	Projekt 17 - Grupa Echo Sp. z o.o - S.K.A.	Kielce	real estate brokerage	50	-	-	50	100,00%	100,00%	–
50	Projekt 18 - Grupa Echo Sp. z o.o - S.K.A.	Kielce	real estate brokerage	50	(36)	(36)	14	100,00%	100,00%	–
51	Projekt 19 - Grupa Echo Sp. z o.o - S.K.A.	Kielce	real estate brokerage	50	(30)	(30)	20	100,00%	100,00%	–
52	Projekt 20 - Grupa Echo Sp. z o.o - S.K.A.	Kielce	real estate brokerage	50 050	-	-	50 050	100,00%	100,00%	–
53	Projekt 21 - Grupa Echo Sp. z o.o - S.K.A.	Kielce	real estate brokerage	50	(30)	(30)	20	100,00%	100,00%	–
54	Projekt 22 - Grupa Echo Sp. z o.o S.K.A.	Kielce	real estate brokerage	49 050	-	-	49 050	100,00%	100,00%	–
55	Pure Systems Sp. z o.o.	Cracow	other financial services, except insurance and retirement funds	1			1	99,90%	99,90%	–
56	Projekt Echo - 111 Sp. z o. o.	Kielce	property lease and management	101	(29)	(29)	72	99,95%	99,95%	–
57	Projekt Echo - 112 Sp. z o. o.	Kielce	property lease and management	31	-	-	31	100,00%	100,00%	–

No.	Company name and legal form	Registered office	Business activity	Value of shares/ interests according to the purchase price	Revaluation adjustments – opening balance	Revaluation adjustments – movement	Revaluation adjustments – closing balance	Carrying value of interests/ shares	% Share capi tal held	Share in total number of votes at the general meet ing	Another basis for control
58	Projekt Echo - 113 Sp. z o. o.	Kielce	property lease and management	31	-		-	31	100,00%	100,00%	–
59	Projekt Echo - 115 Sp. z o. o.	Kielce	property lease and management	31	-		-	31	99,83%	99,83%	–
60	Projekt Echo - 116 Sp. z o. o.	Kielce	property lease and management	31	-		-	31	99,83%	99,83%	–
61	Projekt Echo - 119 Sp. z o. o.	Kielce	property lease and management	25	(20)		(20)	5	99,80%	99,80%	–
62	Projekt Echo - 120 Sp. z o. o.	Kielce	property lease and management	31	-		-	31	100,00%	100,00%	–
63	Projekt Echo - 121 Sp. z o. o.	Kielce	property lease and management	31	-		-	31	100,00%	100,00%	–
64	Projekt Echo - 122 Sp. z o. o.	Kielce	property lease and management	31	-		-	31	100,00%	100,00%	–
65	Projekt Echo - 123 Sp. z o. o.	Kielce	property lease and management	31	-		-	31	100,00%	100,00%	–
66	Projekt Echo - 127 Sp. z o. o.	Kielce	property lease and management	31	-		-	31	100,00%	100,00%	–
67	Projekt Echo - 128 Sp. z o. o.	Kielce	property lease and management	31	-		-	31	100,00%	100,00%	–
68	Projekt Echo - 129 Sp. z o. o.	Kielce	property lease and management	51	(36)	-	(36)	15	99,90%	99,90%	–
69	Projekt Echo - 130 Sp. z o. o.	Kielce	property lease and management	41	(31)	-	(31)	10	100,00%	100,00%	–
70	Projekt Echo - 131 Sp. z o. o.	Kielce	property lease and management	31	(21)	-	(21)	10	100,00%	100,00%	–
71	Projekt Echo - 132 Sp. z o. o.	Kielce	property lease and management	5 373	-	(1 472)	(1 472)	3 901	100,00%	100,00%	–
72	Projekt Echo - 135 Sp. z o. o.	Kielce	property lease and management	31	-		-	31	100,00%	100,00%	–

No.	Company name and legal form	Registered office	Business activity	Value of shares/ interests according to the purchase price	Revaluation adjustments – opening balance	Revaluation adjustments – closing balance	Carrying value of interests/ shares	% Share capi tal held	Share in total number of votes at the general meet ing	Another basis for control
73	Projekt Echo - 136 Sp. z o. o.	Kielce	property lease and management	31	-	-	31	100,00%	100,00%	–
74	Projekt Echo - 137 Sp. z o. o.	Kielce	property lease and management	31	-	-	31	100,00%	100,00%	–
75	Projekt Echo - 136 Sp. z o. o Sp. K.	Kielce	property lease and management	84 006	-	-	84 006	99,00%	99,00%	–
76	Villea investments Sp. z o .o.	Warsaw	property lease and management	5			5	100,00%	100,00%	–
77	Selmer Investments Sp. z o.o.	Warsaw	other business consult ing and management	12	-	-	12	100,00%	100,00%	–
78	Selmer Investments Sp. K.	Warsaw	other business consult ing and management	14	-	-	14	100,00%	100,00%	–
79	Cornwall Investments Sp. z o.o.	Warsaw	other business consult ing and management	12	-	-	12	100,00%	100,00%	–
80	Cornwall Investments Sp. K.	Warsaw	other business consult ing and management	15	-	-	15	100,00%	100,00%	–
81	Gosford Investments Sp.z o.o	Warsaw	property lease and management	5			5	100,00%	100,00%	–
82	Fianar Investments Sp. Z o.o.	Warsaw	other business consult ing and management	5			5	100,00%	100,00%	–
83	Doxent Investments Sp.z o.o.	Warsaw	property lease and management	5			5	100,00%	100,00%	–
84	City Space - GP Sp. z o. o.	Warsaw	property lease and management	37	(37)	(37)	-	100,00%	100,00%	–
85	City Space - Management Sp. z o.o.	Warsaw	other activity involving hiring of labour	37	(37)	(37)	-	100,00%	100,00%	–
86	Echo Prime Assets BV	Amsterdam	activity of head offices and holdings, excluding financial holdings	106 413	-	-	106 413	100,00%	100,00%	–
87	Gleann Sp. z o.o.	Warsaw	property lease and management	5			5	100,00%	100,00%	–

No.	Company name and legal form	Registered office	Business activity	Value of shares/ interests according to the purchase price	Revaluation adjustments – movement	Revaluation adjustments – closing balance	Carrying value of interests/ shares	% Share capi tal held	Share in total number of votes at the general meet ing	Another basis for control
88	Perth Sp. z o.o	Warsaw	property lease and management	5			5	100,00%	100,00%	–
89	Potton Sp. z o.o.	Warsaw	property lease and management	5			5	100,00%	100,00%	–
90	Pudsey Sp. z o.o.	Warsaw	other business consult ing and management	82			82	100,00%	100,00%	–
91	Seaford Sp. z o.o.	Warsaw	other business consult ing and management	6			6	100,00%	100,00%	–
92	Elektrownia RE Sp.z o.o.		buying and selling of property on own account	36 286			36 286	100,00%	100,00%	–
93	Projekt 139 Grupa Echo Sp. z o.o Sp. K.	Kielce	property lease and management	6			6	99,99%	99,99%	–
94	Projekt 140 Grupa Echo Sp. z o.o Sp. K.	Kielce	property lease and management	15 006			15 006	99,99%	99,99%	–
95	GRO Nieruchomości Sp. z o.o.	Kraków	property lease and management	10			10	100,00%	100,00%	–
96	Projekt 144 Grupa Echo Sp. z o.o Sp. K.	Kielce	property lease and management	6			6	99,99%	99,99%	–
97	Projekt 145 Grupa Echo Sp. z o.o Sp. K.	Kielce	property lease and management	6			6	99,99%	99,99%	–
98	Projekt 146 Grupa Echo Sp. z o.o Sp. K.	Kielce	property lease and management	6			6	99,99%	99,99%	–
99	Projekt 147 Grupa Echo Sp. z o.o Sp. K.	Kielce	property lease and management	6			6	99,99%	99,99%	–
100	Projekt 148 Grupa Echo Sp. z o.o Sp. K.	Kielce	property lease and management	6			6	99,99%	99,99%	–
101	Swanage Sp. z o.o.	Warsaw	property lease and management	10	(10)	(10)	-	100,00%	100,00%	–
102	Stranraer Sp. z o.o.	Warsaw	property lease and management	10			10	100,00%	100,00%	–

No.	Company name and legal form	Registered office	Business activity	Value of shares/ interests according to the purchase price	Revaluation adjustments – opening balance	Revaluation adjustments – movement	Revaluation adjustments – closing balance	Carrying value of interests/ shares	% Share capi tal held	Share in total number of votes at the general meet ing	Another basis for control
103	Dagnall Sp. z o.o.	Warsaw	property lease and management	10				10	100,00%	100,00%	–
104	Shanklin Sp. z o.o.	Warsaw	property lease and management	10				10	100,00%	100,00%	–
105	Strood Sp. z o.o.	Warsaw	property lease and management	27 125				27 125	100,00%	100,00%	–
106	Projekt Beethovena - Projekt Echo - 122 Sp. z o.o - S.K.A.	Kielce	property lease and management	3 430		-	-	3 430	99,95%	99,95%	–
			Total	920 662	(31 601)	(10 468)	(42 069)	878 593
	INTERESTS OR SHARES IN ASSOCIATES
1	"SPC" S.A	Warsaw	management of other entities	34	(34)	-	(34)	-	34,00%	34,00%	–
			Total	34	(34)	-	(34)	-
	INTERESTS OR SHARES IN joint -ventures
1	Rosehill Investments Sp. z o.o.	Warsaw	property lease and management	44 581	-	-	-	44 581	30,00%	30,00%	–
2	Projekt Echo - 138 Sp. z o.o.	Warsaw	property lease and management	2	-	-	-	2	30,00%	30,00%	–
3	R4R Poland Sp. z o.o.	Warsaw	property lease and management	6 207	-	-	-	6 207	30,00%	30,00%	–
			Total	50 790	-	-	-	50 790

	TOTAL INTERESTS OR SHARES IN SUBSIDIARIES, JOINT-VENTURES AND ASSOCIATES			971 486	(31 635)	(10 468)	(42 103)	929 383

If the revaluation write-down is not made, in opinion of the Company, there were no indications as at the balance sheet date that the need to change the value of adjustments have to be made.

According to IFS 12 paragraph 44, the Company analyzed an asset on owned shares in subsidiaries and does not create it, due to lack of possibility to reversal of its value in predictable future.

LONG-TERM FINANCIAL ASSETS [PLN '000]

Total long-term financial assets	487 387	796 125
receivables for purchase and sale of shares	9 032	-
bonds	473 564	625 276
investment certificates	4 791	170 849
advances received	-	-
	31.12.2019	31.12.2018

In 2019, the Company redeemed 138,993 B-series certificates issued by Forum 60 Funduszu Inwestycyjnego Zamkniętego for PLN 175 million. As at 31 December 2019, all receivables due for the redemption of certificates were settled. The amount of PLN 28 million was settled by the bank transfer on 15 February 2019 and the amount of PLN 147 million by deduction agreements transferring the ownership of shares in the companies listed in the agreements of 30 December 2019.

As at 31 December 2019, the Company estimated the value of bonds impairment loss in the amount PLN 39 million and as at 29 December 2018 at PLN 31 million.

Bonds meet the SPPI test according to IFRS 9 par. 4.1.2., therefore they are not measured at fair value, but at amortised cost. The valuation does not differ significantly from the valuation at fair value. The bonds were granted to related entities with good financial standing. In relation to

related entities, credit risk, in the opinion of the Management Board, is minimized through current control of operating activity and evaluation of investment projects of these companies. 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 31 December 2019, the write-down amounted PLN 287 thousand and as at 31 December 2018, the writedown amounted PLN 288 thousand.

LONG-TERM LOANS GRANTED [PLN '000]

Total long-term loans granted	281 264	221 504
In other entities	-	-
In co-controlled entities	106 843	81 404
In subsidiaries	174 421	140 100
	31.12.2019	31.12.2018

Borrowings meet the SPPI test according to IFRS 9 par. 4.1.2., therefore they are not measured at fair value, but at amortized cost. The measurement does not differ significantly from the fair value measurement.

The maximum value of credit risk related to the borrowings equals their carrying amount. The loans granted are not secured, they are not overdue and there is no material impairment of their value. The loans were granted to related entities with good financial standing. In relation to related entities, credit risk is, in the opinion of the Management Board, minimized through current control of operating activities and evaluation of investment projects of these companies.

In the opinion of the Management Board, through the possibility of monitoring the operations of subsidiaries and periodically confirming the profitability of their projects, the Company is able to assess and identify the borrowings for which credit risk has significantly increased. The Company's Management Board did not find any such borriowings. The Management Board assessed the loans in terms of creating a write-down for expected credit losses based on the assessment 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 31.12.2019 in the amount of PLN 1,078 thousand, and as at 31.12.2018 in the amount of PLN 650 thousand.

KEY FIGURES ON LONG-TERM BORROWINGS WITHOUT INTEREST AS AT 31.12.2019

Contractor's name	Amount	[PLN '000] Interest rate	Payment time limit
GRO Nnieruchomości Sp. z o.o.	21 657	WIBOR 3M + margin	31.12.2021
R4R Poland Sp. z o.o.	77 251	WIBOR 3M + margin	01.07.2026
Galeria Libero Sp. z o.o. Sp.K.	97 507	WIBOR 3M + margin	10.10.2026
Rosehill Investments Sp. z o.o.	25 702	WIBOR 3M + margin	31.12.2021
RPGZ IX Sp. z o.o.*	47 465	WIBOR 3M + margin	31.12.2021
	Total 269 582

* Borrowings granted in 2019

The maximum value of credit risk associated with borrowings equals their carrying amount. The granted borrowings are not secured. The granted borrowings are not overdue and there is no impairment of the granted borrowings

KEY FIGURES ON LONG-TERM BORROWINGS WITHOUT INTEREST AT 31.12.2018

Contractor's name	Amount	[PLN '000] Interest rate	Payment time limit
GRO Nieruchomości Sp. z o.o.	21 642	WIBOR 3M + margin	31.12.2021
R4R Poland Sp. z o.o.	35 151	WIBOR 3M + margin	01.07.2026
Galeria Libero Sp. z o.o. Sp.K.	115 540	WIBOR 3M + margin	10.10.2026
Berea Sp. z o.o.	41 193	WIBOR 3M + margin	31.12.2020
	Total 213 526

MOVEMENT IN DEFERRED TAX ASSETS/PROVISION [PLN '000]

	1.01.2019- 31.12.2019	1.01.2018- 31.12.2018
Deferred tax assets/provision at the beginning of the period:	(1 468)	13 840
- financial instruments	-	(4)
- investment property	513	513
- receivables and liabilities due to borrowings	(3 701)	(1 409)
- liabilities due to loans and bonds	(779)	100
- tax loss	3 454	10 244
- inventory	3 602	5 800
- other	(4 557)	(1 404)
Increases:	1 808	4
- financial instruments	-	4
- investment property	-	-
- receivables and liabilities due to borrowings	-	-
- liabilities due to loans and bonds	374	-
- tax loss	1 362	-
- inventory	-	-
- interests and shares
- leasing	72
- other	-	-
Decreases:	(4 979)	(15 312)
- financial instruments	-	-
- investment property	-	-
- receivables and liabilities due to borrowings	(3 466)	(2 292)
- liabilities due to loans and bonds	-	(879)
- tax loss	-	(6 790)
- inventory	(1 439)	(2 198)
- interests and shares	-	-
- leasing	-
- other	(74)	(3 153)
Deferred tax assets/provision at the end of the period:	(4 639)	(1 468)
- financial instruments	-	-
- investment property	513	513
- receivables and liabilities due to borrowings	(7 167)	(3 701)
- liabilities due to loans and bonds	(405)	(779)
- tax loss	4 816	3 454
- inventory	2 163	3 602
- interests and shares	-	-
- leasing	72	-
- other	(4 631)	(4 557)

The right to reduce the income tax due to tax strategy expires in 2024 (PLN 25,212 thousand).

INVENTORY [PLN '000]

	31.12.2019	31.12.2018
Semi-finished products and work-in-progress	190 186	188 298
- land use right asset	8 331	-
Finished products	16 365	11 559
Goods	5 640	1 588
Inventory in total	212 191	201 445

Inventories are measured at production or purchase cost, but not higher than the net realisable value of sales. This value is obtained from information from an active market. In the hierarchy of fair value for inventories, the Company assigned level 2. Reversal of inventory write-down takes place either in connection with sale of inventories or in connection with increase of net sale price. The amounts of inventory write-downs recognised as cost in the period and amounts of reversals of writedowns of values decreasing the value of inventories recognised as cost reductions in the period are presented in the income statement under "cost of sales".

The 'finished products' item contains completed residential units intended for sale. The 'intermediate products and products in progress' item contains mainly real estate and expenditures on residential projects under preparation and construction. The 'goods' item contains land for sale.

NOTE 8B

INVENTORIES – INFLUENCE ON THE RESULT [PLN '000]

	31.12.2019	31.12.2018
Inventories write-offs recognised as cost in the period	-	(4)
Reversed write-downs on inventories recognised as revenue in the period	7 088	8 745
Movement in write-down on inventories	7 088	8 741

Inventory write-downs and their reversals apply to residential projects and are intended to write down the value to the level of obtainable price.

The value of inventories recognized as income/cost in the period is disclosed in the income statement under "cost of sales".

The change in the inventory write-down in 2019 concerns, among others, Grota - Roweckiego residential projects in Wrocław and Wodna in Łódź.

The change in the inventory write-down as at 31 December 2019 amounted PLN 7 088 thousand, it was PLN 8 741 thousand as at 31 December 2018.

SHORT-TERM TRADE RECEIVABLES, TAXES AND OTHER [PLN '000]

	31.12.2019	31.12.2018
Receivables from subsidiaries	75 269	72 548
Trade, with maturity:	21 436	22 806
- up to 12 months	21 436	22 806
Other:	53 833	49 742
- due to profit from limited partnerships	53 833	49 742
Receivables from other parties	46 238	36 924
Trade, with maturity:	21 310	25 643
- up to 12 months	21 310	25 643
- over 12 months	-	-
Due to other taxes,	-	248
Other	718	5 336
- paid securities	132	4 831
- claims related to repayment of certificates	94	-
- security deposits paid	-	-
Advances on deliveries	24 210	5 697
write-downs for expected credit losses of receivables	(1 319)	(1 545)
Total net short-term trade receivables, taxes and other	121 507	109 472
- total write-downs for expected credit losses of receivables	(1 319)	(1 545)
Total gross short-term trade receivables, taxes and other receivables	122 826	111 017

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, credit risk, in the opinion of the Management Board, is minimised by the ongoing control of operating activities and assessment of investment projects of these companies. By monitoring the operations of subsidiaries and periodically confirming the profitability of their projects, the Company has the option of assessing receivables for which the credit risk has significantly increased. 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.

The company regularly monitors the condition and payment capability of contractors. There is no significant risk concentration in relation to any of the clients of the Company from outside the Echo Investment Group. As at 31 December 2018, the Company estimated the value of the impairment loss for trade receivables, using a provision matrix developed on the basis of historical data regarding the repayment of receivables by counterparties.

CHANGES IN WRITE-DOWNS ON SHORT-TERM RECEIVABLES [PLN '000]

	1.01.2019- 31.12.2019	1.01.2018- 31.12.2018
Opening balance	1 545	264
Increases	77	1 380
- due to write-down recognition	77	1 380
Decreases	(303)	(99)
- due to repayment	(30)	-
- due to termination	(273)	(99)
Write-downs on expected credit losses on short-term receivables at the end of the period	1 319	1 545

The impairment loss expected credit losses on receivables has been disclosed under 'other operating revenue/ costs' in the profit and loss account of the Company.

NOTE 9C

GROSS SHORT-TERM TRADE RECEIVABLES, TAXES AND OTHER - CURRENCY STRUCTURE [PLN '000]

	31.12.2019	31.12.2018
In the Polish currency (PLN)	121 280	105 117
In foreign currencies, after translation into PLN	1 546	5 900
- unit/currency EUR	356	1 365
- PLN '000	1 516	5 870
- unit/currency USD	8	8
- PLN '000	30	30
Total gross short-term trade receivables, taxes and other	122 826	111 017

NOTE 9D

GROSS TRADE RECEIVABLES – WITH REMAINING MATURITY FROM THE BALANCE SHEET DATE [PLN '000]

	31.12.2019	31.12.2018
up to 1 month	8 477	18 339
between 1 month and 3 months	31 054	11 752
between 3 month and 6 months	-	-
between 6 month and 12 months	-	-
over 12 months	-	-
overdue receivables	4 534	19 388
Total (gross) trade receivables	44 065	49 479
write-downs on expected credit losses on trade receivables	(1 319)	(1 030)
Total (net) trade receivables	42 746	48 449

OVERDUE GROSS TRADE RECEIVABLES, WITH REMAINING MATURITY FROM THE BALANCE SHEET DATE [PLN '000]

	31.12.2019	31.12.2018
up to 1 month	1 406	5 042
between 1 month and 3 months	543	2 487
between 3 month and 6 months	211	9 381
between 6 month and 12 months	717	1 978
over 12 months	1 657	500
Total (gross) overdue trade receivables	4 534	19 388
overdue write-downs on trade receivables	(1 319)	(1 030)
Total (net) overdue trade receivables	3 215	18 358

NOTE 9F

GROSS TRADE RECEIVABLES [PLN '000]

		31.12.2019	31.12.2018
Unimpaired current receivables		39 531	30 091
Unimpaired overdue receivables		3 215	17 843
Impaired overdue receivables		1 319	1 545
	Total (gross) trade receivables	44 065	49 479

NOTE 9G

DISPUTED AND OVERDUE RECEIVABLES [PLN '000]

	31.12.2019	31.12.2018
Disputed receivables	-	-
Other	-	-
- not covered by write-down	-	-
Overdue receivables	4 534	19 388
Trade recivables	4 534	19 388
- not covered by write-down	3 215	17 843

SHORT-TERM LOANS GRANTED [PLN '000]

		31.12.2019	31.12.2018
In subsidiaries
- loans granted		502 354	229 533
- interest		30 571	9 427
		532 925	238 960
In joint-ventures
- loans granted		638	25 566
- interest		45	1 095
		683	26 661
	Total short-term loans granted	533 608	265 621

Loans meet the SPPI test in accordance with IFRS 9, paragraph 4.1.2. Therefore, they are not measured at fair value, but at amortised cost. The valuation does not differ significantly from the fair valuation.

The maximum value of credit risk related to loans equals their carrying value. The loans granted are not secured. The loans granted are not overdue and the value of the loans has not been lost. In respect of affiliated companies, the risk is minimised through the control of their operations on a regular basis and through the evaluation of investment projects in the aforementioned companies. In the opinion of the Management Board, through the ability to monitor the operations of subsidiaries and periodically confirm the profitability of their projects, the Company has the opportunity to assess and identify loans for which the credit risk has increased significantly. The Management Board of the Company did not find such loans. The Management Board assessed the loans in terms of creating a write-down for expected loan losses based on the assessment 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 31.12.2019 in the amount of PLN 1,078 thousand, and as at 31.12.2018 in the amount of PLN 650 thousand.

SHORT-TERM LOANS GRANTED - CURRENCY STRUCTURE [PLN '000]

	533 608	265 621
In foreign currencies (after translation into PLN)	683	-
In the Polish currency (PLN)	532 925	265 621
	31.12.2019	31.12.2018

The note includes short-term borrowings with interests.

BASIC DATA ON MAJOR SHORT-TERM BORROWINGS, WITHOUT INTEREST, AS AT 31 DECEMBER 2019 [PLN '000]

Contractor's name	Amount [PLN '000]	Interest rate	Payment time limit
City Space Management Sp. z o.o.	5 029	WIBOR 3M + margin	30.06.2020
Rondo 1 City Space - GP Sp. z o.o. Sp. K.	4 051	WIBOR 3M + margin	30.09.2020
Plac Unii City Space - GP Sp. z o.o. Sp. K.	499	WIBOR 3M + margin	30.09.2020
Fianar Investments Sp. z o.o.	71 360	WIBOR 3M + margin	31.12.2020
Elektrownia Sp. z o.o.	109	WIBOR 3M + margin	30.06.2020
Echo - SPV 7 Sp. z o.o.	18 404	WIBOR 3M + margin	31.12.2020
Echo Aurus Sp. z o.o.	43 569	WIBOR 3M + margin	31.12.2020
Villea Investments Sp. z o.o.	63 375	WIBOR 3M + margin	31.03.2020
Dellia Investments - Projekt Echo - 115 Sp. z o.o. Sp. K.*	19 365	WIBOR 3M + margin	31.12.2020
Gosford Investments Sp. z o.o.*	15 725	WIBOR 3M + margin	31.12.2020
ZAM - Projekt Echo - 127 Sp. z o.o. Sp. K.*	27 725	WIBOR 3M + margin	31.12.2020
Berea Sp. z o.o.	47 386	EURIBOR 3M + margin	30.06.2020
Projekt 144 - Grupa Echo Sp. z o.o. Sp. K.*	43 770	WIBOR 3M + margin	31.03.2020
GRO Nieruchomości Sp.z o.o.*	1 415	WIBOR 3M + margin	31.03.2020
142 – City Space- Gp Sp. z o.o. Sp. K.*	440	WIBOR 3M + margin	30.09.2020
Projekt 12 - Grupa Echo Sp. z o.o. Sp. K.*	121 073	WIBOR 3M + margin	30.09.2020
Perth Sp. z o.o.*	25 990	WIBOR 3M + margin	31.12.2020
Total	509 285

* Loans granted in 2019.

The maximum value of credit risk associated with the loans equals their carrying amount. The granted loans are not secured, they are not overdue or impaired. The loans were granted to related entities with good financial standing. In relation to affiliated companies, the credit risk, in the opinion of the Management Board, is minimized through current control of operating activity and evaluation of investment projects of these companies. In the opinion of the Management Board, through the possibility of monitoring the operations of subsidiaries and periodically confirming the profitability of their projects, the Company is able to evaluate and identify the loans for which the credit risk has significantly increased. The Company's Management Board has not found any such loans.

BASIC DATA ON MAJOR SHORT-TERM BORROWINGS, WITHOUT INTEREST, AS AT 31 DECEMBER 2018 [PLN '000]

Contractor's name		Amount [PLN '000]	Interest rate	Payment time limit
Villea Investments Sp. z o.o.		63 100	WIBOR 3M + marża	31.03.2019
Rosehill Investments Sp. z o.o.		25 555	WIBOR 3M + marża	31.03.2019
Elektrownia Sp. z o.o.		109	WIBOR 3M + marża	30.06.2019
City Space – SPV 3 Sp. z o.o.		498	WIBOR 3M + marża	30.09.2019
City Space – Management Sp. z o.o.		29	WIBOR 3M + marża	30.09.2019
City Space – SPV 2 Sp. z o.o.		4 051	WIBOR 3M + marża	30.09.2019
Fianar Investments Sp. z o.o.		71 360	WIBOR 3M + marża	31.12.2019
Echo - SPV 7 Sp. z o.o.		39 400	WIBOR 3M + marża	31.12.2019
Echo Aurus Sp. z o.o.		55 980	WIBOR 3M + marża	31.12.2019
Berea Sp. z o.o.		11	WIBOR 3M + marża	31.12.2019
	Total	260 093

NOTE 11A

CASH AND other financial assets [PLN '000]

	31.12.2019	31.12.2018
Other financial assets	17 720	7 389
- inflows from residential clients, blocked on fiduciary accounts, released by the bank as the investment progresses	17 518	7 324
- on VAT split payment accounts	202	65
Cash in hand and in bank accounts	232 147	181 977
Total	249 867	189 366

As at 31 December 2019, the Company has cash at renowned banks, mainly DNB Nord S.A., PKO S.A. and Santander Bank Polska S.A.

The maximum value of credit risk related to cash equals its balance sheet value.

Cash in the bank bears interest at variable interest rates, the amount of which depends on the interest rate on one-day bank deposits. Short-term deposits are made for various periods, from one day to one month, depending on the current demand of the Company for cash and they bear interest according to the interest rates set for them.

NOTE 11B

CASH AND CASH EQUIVALENTS OF LIMITED DISPOSABILITY - CURRENCY STRUC-TURE [PLN '000]

		31.12.2019	31.12.2018
In the Polish currency (PLN)		119 549	174 855
In foreign currencies (after translation into PLN)		130 318	14 511
unit/currency EUR		30 602	3 627
PLN '000		130 317	14 508
unit/currency USD		-	1
PLN '000		1	3
	Total	249 867	189 366

SHARE CAPITAL

Series / Issue	Type of share	Type of limited rights to shares	No. of shares	Value of series / issue at nominal value [PLN '000]	Capital coverage method
A, B, C, D, E, F	bearer shares	none	412 690 582	20 635	cash
Total no. of shares			412 690 582
Total share capital				20 635

SHAREHOLDERS OF ECHO INVESTMENT S.A. HOLDING MORE THAN 5% OF THE SHARE CAPITAL AS AT 31.12.2019

Shareholders		Type of share	Number of shares / votes	0% of capital held
Wing oraz Griffin Real Estate (poprzez Lisala Sp. z o.o.)		230 930 856	55,96	55,96
Nationale Nederlanden OFE		56 002 112	13,57	13,57
Aviva OFE Aviva Santander		32 272 404	7,82	7,82
Others		93 485 211	22,65	22,65
	Total	412 690 582	100,00	100,00

SHAREHOLDERS OF ECHO INVESTMENT S.A. HOLDING MORE THAN 5% OF THE SHARE CAPITAL AS AT 31.12.2019

NOTE 13

SUPPLEMENTARY CAPITAL [PLN '000]

	31.12.2019	31.12.2018
Share premium	100 748	100 748
Statutory	6 878	6 878
Created from generated profits according to the statute/articles, above the statu torily required (minimum) value	946 647	946 647
Other	22	22
Total	1 054 295	1 054 295

CHANGE ON DIVIDEND FUND [PLN '000]

	1.01.2019- 31.12.2019	1.01.2018- 31.12.2018
Opening balance	326 309	319 579
Changes in the period	-	-
- supplementary capital	-	-
- dividend fund	(206 345)	(206 345)
- distribution of the result from previous years	44 675	213 075
Closing balance	164 639	326 309

On April 26, 2017 Management Board of Echo Investment S.A. adopted a resolution regarding the adoption of the Company's dividend policy.

The dividend policy of the Company assumes that for 2018 and subsequent years, the Management Board intends to recommend dividend payment in the amount of up to 70% of the consolidated net profit of the Company's Capital Group, assigned to the shareholders of the parent company.

When recommending dividend payment, the Company's Management Board will take into account the current and predicted financial condition of the Company and the Capital Group as well as the development strategy.

In particular, the Company's Management Board in its annual recommendations regarding dividend payment will take into account:

− the safe and most effective level of debt and liquidity management in Capital Group;
− implementation of investment plans on the development market resulting from development strategies, in particular in the area of land purchase.

NOTE 13B

CHANGE ON PROFIT/LOSS OF PREVIOUS YEARS [PLN '000]

	1.01.2019- 31.12.2019	1.01.2018- 31.12.2018
Opening balance	44 675	634 661
Changes in the period
– adjustments of result from previous years	-	2 243
– distribution of result from previous years	(44 675)	(634 661)
Closing balance	-	2 243

LONG-TERM LIABILITIES WITHOUT INCOME TAX PROVISION [PLN '000]

	31.12.2019	31.12.2018
Due to subsidiaries
- on account of credits and loans	127 007	-
	127 007	-
Due to other entities:
- due to lease	12 645	-
- due to deposits received	1 492	746
- due to issue of debt securities	936 859	903 448
	950 996	904 194
Total long-term liabilities	1 078 003	904 194
Interest rates used to discount expected lease cash flows	from 3,43% to 3,61%	0,00%

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.

DATA ON LONG-TERM LOANS WITHOUT INTEREST AND UPDATE ENTRIES AS OF DECEMBER 31, 2019

Contractor name	Amount [PLN '000]	Interest rate	Repayment date
Projekt Echo - 129 Sp. z o.o.	127 005	Wibor 3M + margin	30.09.2021
Total	127 005

NOTE 14B LONG-TERM LIABILITIES WITHOUT INCOME TAX PROVISION WITH REMAIN-ING MATURITIES FROM THE BALANCE SHEET DATE [PLN '000]

	31.12.2019	31.12.2018
Between 1 to 3 years	903 512	483 671
Between 3 to 5 years	177 985	420 368
Over 5 years	1 997	155
Total	1 083 494	904 194
Interest rates used to discount expected cash flows:	5,15%	5,02%

Long-term liabilities in nominal value were presented by the Company in note 14E.

LONG-TERM LIABILITIES WITHOUT PROVISION FOR INCOME TAX - CURRENCY STRUCTURE [PLN '000]

Total	1 083 494	904 194
In foreign currencies (by currency and after conversion to PLN)	-	-
In Polish currency	1 083 494	904 194
	31.12.2019	31.12.2018

Financial liabilities due to debt financial instruments are measured at amortized cost of a liability component, in accordance with IFRS 9. The fair value of longterm liabilities does not differ significantly from their carrying amount.

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

NOTE 14D

LONG-TERM LIABILITIES - CHANGE DUE TO INTRODUCTION OF MSSF 16 [PLN '000].

	31.12.2019	31.12.2018
Opening balance	8 843	-
Changes in the period	3 802	-
- new purchases	8 756	-
- financial costs	657	-
- payment	(5 611)	-
- completion of the project/sale	-	-
Closing balance	12 645	-

REVENUES - COSTS OF LEASE [PLN '000]

	01.01.2019- 31.12.2019	01.01.2018- 31.12.2018
Cost related to leases of low-value assets	878	-
Cost related to long-term leases	6 285	-
Total	7 163	-

The total cash outflow from leases amounted to PLN 6,269 thousand in 2019.

CREDIT FACILITIES AS AT 31.12.2019 [PLN '000]

Bank	Contractual amount of loan	Outstanding loan amount	Interest rate	Repayment deadline	Security
PKO BP S.A.*	75 000	65 452	WIBOR 1M + margin	30.10.2020	authorisation to bank account, statement on submission to enforcement proceedings
Alior Bank S.A.	75 000	75 000	WIBOR 3M + margin	26.03.2020	authorisation to bank account, statement on submission to enforcement proceedings
Santander Bank Polska S.A.**	100 000	73 423	WIBOR 1M + margin	30.11.2020	authorisation to bank account, statement on submission to enforcement proceedings
Total	250 000	213 875

* The available loan amount as at 31/12/2019 is reduced by the issued guarantees and amounts to PLN 0.2 million.

** Within the credit limit of PLN 100 million, the Company is granted a sublimit for a current loan of up to PLN 75 million and a sublimit of up to PLN 25 million for guarantees. As at 31/12/2019, the utilization of the guarantee limit was PLN 24.2 million.

The loan value corresponds to undiscounted cash flows.

CREDIT FACILITIES AS AT 31.12.2018 [PLN '000]

Bank	Contractual amount of loan	Outstanding loan amount	Interest rate	Repayment deadline	Security
PKO BP S.A.*	75 000		WIBOR 1M + margin	30.10.2020	authorisation to bank account, statement on submission to enforcement proceedings
Alior Bank S.A.	75 000	50 000	WIBOR 3M + margin	15.12.2019	authorisation to bank account, statement on submission to enforcement proceedings
Santander Bank Polska S.A.**	100 000		WIBOR 1M + margin	30.11.2020	authorisation to bank account, statement on submission to enforcement proceedings
Raiffeisen Bank Polska S.A***	62 000		WIBOR 1M + margin	16.12.2019	authorisation to bank account, statement on submission to enforcement proceedings
Total	****312 000	50 000

* The available loan amount as at 31/12/2018 is reduced by the guarantees issued and amounts to PLN 54.1 million.

** Within the credit limit of PLN 100 million, the Company is granted a sublimit for a current loan of up to PLN 75 million and a sublimit of up to PLN 25 million for guarantees. As at 31/12/2018, the utilization of the guarantee limit was PLN 24.2 million.

*** As at 31.12.2018, the available loan amount is reduced by guarantees issued and amounts to nearly PLN 60 million.

**** Including PLN 25 million of the guarantee limit in Santander Bank Polska S.A. The total amount of current and working capital loan limits amounts PLN 287 million as at 31 December 2018.

The loan value corresponds to undiscounted cash flows.

LONG AND SHORT-TERM LIABILITIES DUE TO THE DEBT FINANCIAL INSTRUMENTS ISSUED AS AT 31 DECEMBER 2019

Series	ISIN code	Bank/brokerage house	Nominal value	Maturity	Interest rate	Securities	Quotation market
	Bonds purchased by the company in 2019
1/2016	PLECHPS00209	mBank S.A.	100 000	18.11.2020	WIBOR 6M + margin 3,0%	none	ASO CATALYST
1/2017	PLECHPS00225	mBank S.A.	155 000	31.03.2021	WIBOR 6M + margin 2,9%	none	ASO CATALYST
2/2017	PLECHPS00258	mBank S.A.	150 000	30.11.2021	WIBOR 6M + margin 2,9%	none	ASO CATALYST
1/2018	PLECHPS00282	mBank S.A.	140 000	25.04.2022	WIBOR 6M + margin 2,9%	none	ASO CATALYST
1/2019	PLECHPS00308	mBank S.A.	100 000	11.04.2023	WIBOR 6M + margin 4,25%	none	ASO CATALYST
		Total	645 000

	Bonds for individual investors
E-series issue	PLECHPS00217	DM PKO BP S.A.	100 000	06.07.2021	WIBOR 6M + margin 2,9%	none	CATALYST regulated market
F-series issue	PLECHPS00233	DM PKO BP S.A.	125 000	11.10.2022	WIBOR 6M + margin 2,9%	none	CATALYST regulated market
G-series issue	PLECHPS00241	DM PKO BP S.A.	75 000	27.10.2022	WIBOR 6M + margin 2,9%	none	CATALYST regulated market
H-series issue	PLECHPS00266	DM PKO BP S.A.	50 000	22.05.2022	WIBOR 6M + margin 2,8%	none	CATALYST regulated market
I-series issue	PLECHPS00274	Consortium: DM PKO Bank Polski S.A., Noble Securities S.A. and Centralny Dom Maklerski Pekao S.A.	50 000	08.11.2023	WIBOR 6M + margin 3,4%	none	CATALYST regulated market
J and J2-series issue	PLECHPS00290	J-series: consortium of 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%	none	CATALYST regulated market
		J2 series: DM PKO Bank Polski S.A.
		Total	433 832
		Bonds in total	1 078 832

The value of the bonds corresponds to undiscounted cash flows, not including interest.

Bonds purchased by the Company in 2019

Series	Date	Value [PLN '000]
bonds for institutional investors - series 1/2014	19.02.2019	100
bonds for institutional investors - series 2/2014	12.04.2019	10
bonds for institutional investors - series 2/2014	15.05.2019	61
	Total	171

Bonds issued by the Company in 2019

Series	Date of subscription / issue	Value [PLN '000]
bonds for individual investors - J-series	18.02.-1.03.2019	34
bonds for individual investors - series 1/2019	11.04.2020	100
	Total	134

Issuance of PLN 33.8 mln worth of bonds for individual investors

After the balance sheet date, the Company placed 188,315 J-series bonds and 150,000 J2-series bonds, which were issued on the basis of the Prospectus approved by the Polish Financial Supervision Authority on 16 April 2018. The total issue value of the placed bonds was PLN 33,831,500.

The subscription for J-series bonds lasted from 18 February to 1 March 2019, while J2-series bonds from 18 February to 25 February 2019. The allocation of the bonds took place on 5 March 2019. The interest rate on J-series and J2-series bonds is based on the WIBOR 6M rate increased by a 3.4% margin. The bonds have a 4.5-year maturity. The offering was organized by Dom Maklerski PKO Banku Polskiego and the consortium of Noble Securities S.A., Michael / Ström Dom Maklerski S.A. and Dom Maklerski Bank Ochrony Środowiska S.A.

Issuance of bonds for institutional investors

As part of the Bond Issuance Programme of up to PLN 1 bln of 2011, which was signed with mBank, Echo Investment issued coupon bonds with a total value of PLN 100 mln on 11 April 2019. The nominal value and the issue price of one bond was PLN 10,000. The bonds were issued for the period ending on 11 April 2023. The interest rate on the bonds was determined based on the variable WIBOR 6M rate plus a margin for investors. The redemption of the bonds on the redemption date will be at the nominal value of the bonds. The interest will be paid semi-annually. The issued bonds are not secured. At the same time, the Company acquired 1,000 own bonds marked with the ISIN code PLECHPS00159 for redemption.

LONG-TERM AND SHORT-TERM LIABILITIES DUE TO BONDS ISSUED AS AT 31.12.2018 [PLN '000]

Bonds for institutional investors

Series	ISIN code	Bank / brokerage house	Issue value	Maturity	Interest rate	Guarantees	/ securities Quotation market
1/2014	PLECHPS00134	mBank S.A.	100 000	19.02.2019	WIBOR 6M + margin 3,6%	none	ASO CATALYST
2/2014	PLECHPS00159	mBank S.A.	70 500	15.05.2019	WIBOR 6M + margin 3,6%	none	ASO CATALYST
1/2016	PLECHPS00209	mBank S.A.	100 000	18.11.2020	WIBOR 6M + margin 3,0%	none	ASO CATALYST
1/2017	PLECHPS00225	mBank S.A.	155 000	31.03.2021	WIBOR 6M + margin 2,9%	none	ASO CATALYST
2/2017	PLECHPS00258	mBank S.A.	150 000	30.11.2021	WIBOR 6M + margin 2,9%	none	ASO CATALYST
1/2018	PLECHPS00282	mBank S.A.	140 000	25.04.2022	WIBOR 6M + margin 2,9%	none	ASO CATALYST
		Total	715 500
	Bonds for individual investors
E-series	PLECHPS00217	DM PKO BP S.A.	100 000	06.07.2021	WIBOR 6M + margin 2,9%	none	regulated market CATALYST
F-series	PLECHPS00233	DM PKO BP S.A.	125 000	11.10.2022	WIBOR 6M + margin 2,9%	none	regulated market CATALYST
G-series	PLECHPS00241	DM PKO BP S.A.	75 000	27.10.2022	WIBOR 6M + margin 2,9%	none	regulated market CATALYST
H-series	PLECHPS00266	DM PKO BP S.A.	50 000	22.05.2022	WIBOR 6M + margin 2,8%	none	regulated market CATALYST
I-series	PLECHPS00274	DM PKO Bank Polski S.A., Noble Securities S.A. and Centralny Dom Maklerski Pekao S.A.	50 000	08.11.2023	WIBOR 6M + margin 3,4%	none	regulated market CATALYST
		Total	400 000
		Total bonds	1 115 500

SHORT-TERM TRADE LIABILITIES, TAXES, SECURITY DEPOSITS RECEIVED, ADVANCES RECEIVED AND OTHER - WITHOUT PROVISIONS [PLN '000]

	31.12.2019	31.12.2018
Trade, due to subsidiaries, with maturity:	2 590	3 002
- up to 12 months	2 590	3 002
- over 12 months	-	-
Trade, due to other entities, with maturity:	50 812	29 593
- up to 12 months	50 812	29 593
- over 12 months	-	-
Total short-term trade liabilities	53 402	32 595
Advances received ("contract liability")	100 163	69 657
Security deposits received	4 777	5 138
Total security deposits and advances received	104 940	74 795
Taxes, customs duties, insurance and other benefits	15 315	2 897
On account of current income tax	3 215	1 219
Total tax	15 315	2 897
Lease liabilities	13 059
Perpetual usufruct conversion fees	215
Lease and perpetual usufruct conversion fee liabilities	13 274
Other liabilities	26 583	22 018
- due to payroll	10	2
- other (due to)	26 673	22 016
- dividend	-	-
- cash on escrow account	17 720	7 389
- acquisition of share	370	-
- other, including:	8 483	14 627
- bonuses for management and employees	5 940	10 867
Total other short-term liabilities	26 583	22 018
Total	213 514	132 305
Interest rates used to discount expected cash flows due to leases:	6,94%	0,00%

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

SHORT-TERM TRADE LIABILITIES, TAXES, SECURITY DEPOSITS RECEIVED, ADVANCES RECEIVED AND OTHER - WITHOUT PROVISIONS [PLN '000]

	31.12.2019	31.12.2018
In the Polish currency (PLN)	199 729	132 289
In foreign currencies (after translation into PLN)	13 785	16
unit/currency EUR	3 237	4
- PLN '000	13 785	16
unit/currency USD		- -
- PLN '000		- -
	Total 213 514	132 305

NOTE 15C

SHORT-TERM LIABILITIES (CHANGE IN CONNECTION WITH THE ADOPTION OF MSSF 16) [PLN '000].

	31.12.2019	31.12.2018
Opening balance	15 048	-
Changes in the period	(1 774)	-
- new purchases	-	-
- financing costs	450	-
- payment	(647)	-
- project completion/sale	(1 577)	-
Closing balance	13 274	-

The Company described the changes related to the introduction of IFRS 16 in the chapter "Main accounting principles" under "Leasing".

NOTE 16A SHORT-TERM LOANS, BORROWINGS AND BONDS [PLN '000]

	31.12.2019	31.12.2018
Due to subsidiaries
- borrowings	-	-
	-	-
Due to other entities
- loans and borrowings	213 874	50 000
- due to issue of debt securities	148 338	217 725
Total	362 212	267 725
Total short-term loans, borrowings and bonds	362 212	267 725

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]

		31.12.2019	31.12.2018
In the Polish currency (PLN)		362 212	267 725
In foreign currencies (by currency and after translation into PLN)		-	-
	Total	362 212	267 725

As at 31.12.2019 the Company has no short-term borrowings without interests.

MOVEMENT IN SHORT-TERM PROVISIONS – DUE TO [PLN '000]

	31.12.2019	31.12.2018
At the beginning of the period
- provisions for penalties	2 000	2 000
- provisions for guarantees	270	-
- court proceedings	-	2 066
- provision for costs	15 047	40 605
	17 317	44 671
Increases
- provisions for guarantees	244	270
- provisions for expected losses	4 003	11 363
- provision for costs	-	-
- court proceedings	4 247	11 633
Utilisation due to
- provision for costs	(4 840)	(10 000)
- provision for penalties	-	(2 066)
	(4 840)	(12 066)
Release due to
- provision for costs	(1 217)	(26 921)
- provisions for expected losses	-	-
	(1 217)	(26 921)

At the end of the period
- provisions for penalties	2 000	2 000
- provisions for guarantees	514	270
- court proceedings	-	-
- provision for costs	12 993	15 047
	15 507	17 317

Provision for penalties includes the value of any penalties with which the Company may be charged due to contracts concluded, with a probability of charging that exceeds 50%. The amount of the provision was estimated based on the best knowledge of the Company and based on its past experience.

The provision for projected costs of warranty repairs includes the value of repairs or compensation for sold premises and projects with a probability of charging that exceeds 50%. The amount of the provision was estimated based on the best knowledge of the Company and based on its past experience.

The dates of crystallising of the provisions for penalties and losses, warranty costs and court cases are not possible to be estimated, however, there is a high probability of their implementation within 12 months from the balance sheet date.

OFF-BALANCE SHEET ITEMS [PLN '000]

	31.12.2019	31.12.2018
1. Contingent receivables		-	-
2. Contingent liabilities	1 941 756	1 215 651
2.1. For related parties	1 941 756	1 215 651
- due to guarantees and sureties granted	1 941 756	1 215 651
2.2. For other parties		-	-
- due to guarantees and sureties granted		-	-
2.3. Other		719 100
- due to court proceedings against Echo Investment		719 100
	Total 1 942 475	1 215 751

Sureties issued by "Echo Investment" S.A as at December 31, 2019

For	Value [PLN '000]	Validity	Description
Bletwood Investments Sp. z o.o.	1 432	The entire duration of the lease and three consecutive months from the date of its termination	Surety for liabilities of the company Cogl II Limited Poland Sp. z o.o. as security for the obligations arising from the lease agreement concluded on 6.11.2015. Issued in EUR.
HPO AEP Sp. z o.o. Sp. J.	10 646	Until obtaining the occu pancy permit for projects carried out, however not later than until 07.12.2031.	Surety for liabilities of Echo – Browary Warszawskie Sp. z o.o. Sp.K. and Dellia Investments - Projekt Echo - 115 Sp. z o.o. Sp. K. as security for the obligations arising from the contract concluded on 7.12.2016. Mutual guarantee issued in EUR.
Human Office Polska Sp. z o.o.	100	Until the expiry of the lease contract	Surety for liabilities of Sagittarius - Sagittarius - Projekt Echo-113 Sp. z o.o. Sp.K. resulting from the lease contract
PKO BP S.A.	344 944	until 31.12.2026	Surety for liabilities of Projekt Beethovena - Projekt Echo – 122 Sp. z o.o. S.K.A. as a collateral of claims resulting from housing project in the Company and mortgage separation of real estate. Issued in EUR
PeKaO S.A.	389 135	until 31.12.2030	Surety for liabilities Dellia Investments - Projekt Echo - 115 Sp. z o.o. S.K. as a collateral of claims resulting from housing projects, sold office building in the Company and fulfilling the terms of the lease agreement with one of the tenants. Issued in EUR.
Total	746 258

Sureties issued as at December 31, 2018

For	Value [PLN '000]	Validity	Description
Bletwood Investments Sp. z o.o.	1 446	Entire validity period of the lease and three months fol lowing its termination date	Surety for liabilities of Cogl II Poland Limited Sp. z o.o. as a collateral of liabilities resulting from the lease agree ment of 06.11.2015. Issued in EUR.
HPO AEP Sp. z o.o. Sp. J.	10 750	Until the date of issuance of the occupancy permit for the projects but no later than 07.12.2031.	Surety for liabilities of Echo – Browary Warszawskie Sp. z o.o. Sp.K. and Dellia Investments – Projekt Echo – 115 Sp. z o.o. Sp. K. j as a collateral of liabilities resulting from the lease agreement of 07.12.2016. Mutual surety issued in EUR.
Human Office Polska Sp. z o.o.	100	Until the expiry of ob ligations under leasing agreement	Surety for liabilities of Sagittarius - Projekt Echo-113 Sp. z o.o. Sp.K. resulting from leasing contract
Total	12 296

For	Value [PLN '000]	Validity	Description
Horta Sp. z o.o.	21 293	until 02.07.2020	Performance bond for the final sale agreement of the Aquarius Business House I office building in Wrocław. Issued in EUR.
Skua Sp. z o.o.	25 551	until 31.07.2021	Performance bond for the final contract sales and the master lease agreements for the Aquarius Business office building House II in Wrocław. Issued in EUR.
IREEF – Stryków Propco Sp. z o.o.	997	until 15.12.2019	Construction work quality guarantee related to the Q22 office building in Warsaw.
IREEF – Stryków Propco Sp. z o.o.	1 187	unti 31.05.2022	Rental guarantee related to the sale of the office building Q22 in Warsaw. The guarantee is issued in EUR. The amount of the guar antee is updated as the liability decreases.
issued to Ventry Investments Sp. z o.o. Sp.K. (currently authorized entity of EPP Office O3 Business Campus sp.z o.o)	38 857	until 21.12.2026	Construction guarantee related to the sale of the O3 Business Campus I office building in Kraków. The construction guarantee is secured by is the corporate guarantee issued by Echo Investment S.A. The guarantee issued in EUR. The maximum amount of responsibilities will be progressively reduced as the amount of the liability that the guarantee secures decreases.
issued to Ventry Investments Sp. z o.o. Sp.K. (currently authorized entity EPP Office O3 Business Campus sp.z o.o)	958	until 21.05.2020	Rental guarantee related to the sale of O3 Business Campus I in Kraków. The rental guarantee is secured by the corporate guar antee issued by Echo Investment S.A. Partly issued in EUR. The maximum amount of responsibilities will be progressively reduced as the amount of the liability that the guarantee secures decreases.
issued to Emfold Investments Sp. z o.o. (currently authorized entity Tryton Business Park sp.z o.o.)	40 533	until 21.12.2026	Construction guarantee related to the sale of the Tryton office building in Gdańsk. The construction guarantee is secured by the corporate guarantee issued by Echo Investment S.A. The guarantee is issued in EUR.
issued to Emfold Investments Sp. z o.o. (currently authorized entity Tryton Business Park sp.z o.o.)	–	until 21.05.2020	Rental guarantee related to the sale of the Tryton office building in Gdańsk. The rental guarantee is secured by the corporate guar antee issued by Echo Investment S.A. Partly issued in EUR. The maximum amount of responsibilities will be progressively reduced as the amount of the liability that the guarantee secures decreases.
issued to Flaxton Investments Sp. z o.o. (currently authorized entity EPP Office - Symetris Business Park sp. Z o.o.)	17 339	until 21.12.2026	Construction guarantee related to the sale of the Symetris I office building in Łódź. The construction guarantee is secured by the cor porate guarantee issued by Echo Investment S.A. Issued in EUR.
issued to Flaxton Investments Sp. z o.o. (currently authorized entity EPP Office - Symetris Business Park sp. Z o.o.)	71	until 21.05.2020	Rental guarantee related to the sale of the Symetris I office build ing in Łódź. The rental guarantee is secured with the corporate guarantee issued by Echo Investment S.A. Partly issued in EUR. The maximum amount of the liability shall be decreased successively as the amount of the liability covered by the guarantee decreases.
A4 Business Park sp. z o.o.	23 422	until 26.04.2027	Construction guarantee related to the sale of the A4 Business Park III stage office building in Katowice. The guarantee is secured by the corporate guarantee issued by Echo Investment S.A. Issued in EUR
A4 Business Park sp. z o.o.	–	until 26.09.2020	Rental guarantee related to the sale of the A4 Business Park III stage office building in Katowice. The rental guarantee is secured by the corporate guarantee issued by Echo Investment S.A. Partly issued in EUR. The maximum amount of the liability will be suc cessively reduced as the amount of the liability that the guarantee secures decreases.
EPP Office O3 Business Campus Sp. z o.o.	37 048	until 21.12.2027	Construction guarantee related to the sale of the O3 Business Campus II office building in Kraków. The guarantee is secured by the corporate guarantee issued by Echo Investment S.A. The guar antee is issued in EUR.

For	Value [PLN '000]	Validity	Description
EPP Office O3 Business Campus Sp. z o.o.	1 873	until 28.05.2021	Corporate guarantee of Echo Investment SA securing the rent guarantee related to the sale of O3 Business Campus II in Kraków. Partly issued in EUR. The maximum amount of the liability shall be successively reduced as the amount of the liability secured by the guarantee decreases.
Santander Bank Polska, PKO BP SA, Bank Gospodarstwa Krajowego oraz mBank S.A.	39 604	until credit conver sion from construc tion into investment loan	Security of overrun of costs of the construction of the Galeria Mło ciny project in Warsaw and obligations of Berea Sp. z o.o. resulting from the loan contract signed on 17.10.2017. Issued in EUR
Nobilis - Projekt Echo - 117 Sp. z o.o. Sp. K.	40 000	until 31.10.2026	Quality guarantee for construction work related to the Nobilis office building in Wrocław.
Nobilis - Projekt Echo - 117 Sp. z o.o. Sp. K.	1 611	until 28.12.2020	Rental guarantee related to the sale of the Nobilis office building in Wrocław. Issued in EUR. The maximum amount of liability will be successively reduced as the amount of liability secured by the guarantee decreases.
IB 14 FIZAN	76 126	until 24.05.2024	Security of due performance of obligations resulting from the contract of sale of the West Link office building in Wrocław. Issued in EUR. After 24.05.2021 the amount of maximum liability will be reduced by 80%.
A 19 Sp. z o.o.	25 551	until 4.07.2038	Guarantee for obligations of Projekt 22 - "Grupa Echo" Spółka z ograniczoną odpowiedzialnością - SKA (Midpoint 71) under the good neighbourly agreement concluded on 4.07.2018. Issued in EUR
issued to Flaxton Investments Sp. z o.o. (currently authorized entity EPP Office - Symetris Business Park sp. Z o.o.)	16 258	until 15.11.2020	Construction guarantee related to the sale of the Symetris II stage project in Łódź. Issued in EUR. The maximum amount of liability may be successively reduced aas the amount of liability secured by the guarantee decreases.
issued to Flaxton Investments Sp. z o.o. (currently authorized entity EPP Office - Symetris Business Park sp. Z o.o.)	205	until 27.12.2021	Rental guarantee related to the sale of the Symetris II stage in Łódź. Partially issued in EUR. The maximum amount of liability will successively decrease as the amount of liability secured by the guarantee decreases.
PeKaO S.A.	14 147	until 30.06.2029	Guarantee of exceeding costs of residential projects: R4R Łódź Wodna, R4R Wrocław Rychtalska, R4R Warszawa Browary, R4R Wrocław Kępa.
R4R Wroclaw Kępa Sp. z o.o./R4R Warszawa Browary Sp. z o.o.	84 809	until 31.07.2021	Guarantee of repayment of advance payments made by R4R com panies in accordance with preliminary property sales contracts: Kępa Mieszczańska in Wrocław and Browary Warszawskie E in Warsaw, Echo SPV 7 sp. z o.o. entered into preliminary agreements as a joint and several debtor responsible for the sellers' obligations.
IB 6 FIZAN / GPF 3 FIZAN	132 733	until 31.10.2021	Security for proper performance of Rosehill Investments Sp. z o.o.'s obligations under the programme agreement concluded on 31.08.2017. Issued in EUR.
Tryton Business Park Sp. z o.o.	540	until 31.01.2020	Security for liabilities of Tryton City Space - GP sp.z o.o. sp.k. aris ing from the lease agreement concluded on 12/06/2018. Issued in EUR.
DH Supersam Katowice Sp. z o.o. Sp.k.	359	until 31.01.2020	Security for liabilities of Supersam City Space - GP sp. z o.o. sp.k. resulting from the lease agreement concluded on 28.02.2017. Issued in EUR.
Miasto Katowice	758	until 16.01.2020	Warranty security and quality guarantee for liabilities of Galeria Libero - Projekt Echo 120 Sp. z o.o. Sp.K. arising from an agree ment concluded on 16.06.2016 concerning the execution of a road investment.
PKO BP S.A.	36 000	until 30.06.2023	Securing the cost overrun of the Moje Miejsce office project in Warsaw.

For	Value [PLN '000]	Validity	Description
LUX Europa III S.a.r.l.	6 450	till 25.03.2020	Collateral for liabilities of Dellia Investments - Projekt Echo - 115 Sp. z o.o. Sp.k. arising from the quality assurance agreement of 27.03.2019.
LUX Europa III S.a.r.l.	93 432	until 31.12.2024	Security for proper performance of obligations of Dellia Invest ments - Projekt Echo - 115 Sp. z o.o. Sp. k., arising from the contract of the sale of the Gatehouse Offices building in the Browary Warszawskie complex. Issued in EUR.
LUX Europa III S.a.r.l.	570	until 30.06.2029	Security for proper performance of obligations of Dellia Invest ments - Projekt Echo - 115 Sp. z o.o. Sp.K. under the contract of the sale of the Gatehouse Offices building in the Browary Warszawsk ie complex. The rental guarantee issued in EUR. The maximum amount of liability will be successively reduced as the amount of liability covered by the guarantee decreases.
LUX Europa III S.a.r.l.	163 550	until 30.06.2030	Security for proper performance of obligations of Dellia Invest ments - Projekt Echo - 115 Sp. z o.o. Sp.K. under the contract of the sale of the Gatehouse Offices office building in the Browary Warszawskie complex. Issued in PLN.
LUX Europa III S.a.r.l.	46 844	until 03.03.2027	Security for proper performance of obligations of Dellia Invest ments - Projekt Echo - 115 Sp. z o.o. Sp.K. under the contract of the sale of the Gatehouse Offices building in the Browary Warszawskie complex. Issued in EUR.
LUX Europa III S.a.r.l.	366	till 30.06.2020	Security for liabilities of Dellia Investments - Project Echo - 115 Sp. z o.o. Sp.k. resulting from the rental guarantee agreement. The maximum amount of liability will be successively reduced as the amount of the liability that the guarantee secures.
PeKaO S.A.	68 045	until credit conver sion from construc tion into investment loan	Guarantee of exceeding the costs of the office project in the Bro wary Warszawskie complex in Warsaw. Issued in EUR.
Bank Millenium S.A.	8 045	until credit conver sion from construc tion into investment loan	Guarantee of exceeding the costs of the West 4 Business Hub office project in Wrocław.
Bank Millenium S.A.	4 557	until credit conver sion from construc tion into investment loan	Guarantee securing the income from leases during the construc tion of the West 4 Business Hub office project in Wrocław. Issued in EUR
issued to Echo-Opolska Business Park Sp. z o.o. Sp.k. (currently authorized entity EPP DEVELOPMENT 6 sp.z o.o.)	1 008	until 30.06.2020	Security for liabilities of Projekt 132 - City space - GP sp. z o.o. sp.k. resulting from the lease agreement concluded on 04.06.2019. Issued in EUR.
PeKaO S.A.	70 000		until 29.12.2023 Guarantee for cost overruns, minimum interest coverage and secur ing of own contribution for Face2Face office project in Katowice. Issued in PLN.
BNP Paribas Bank Polska S.A.	10 499	until 1.12.2022	Security of exceeding the costs of the React office project in Łódź.
EPP Development 6 Sp. z o.o.	8 337	until 11.02.2025	Corporate guarantee of Echo Investment SA securing the rent guarantee related to the sale of O3 Business Campus III in Cracow. Partly issued in EUR. The maximum amount of liability will be successively reduced as the amount of liability secured by the guarantee decreases.
EPP Development 6 Sp. z o.o.	34 352	until 9.08.2028	Construction guarantee related to the sale of the O3 Business Campus III office building in Kraków. The guarantee is secured by a corporate guarantee issued by Echo Investment S.A. The guarantee is issued in EUR.
Dyrektor Izby Administracji Skarbowej w Kielcach	873	till 10.02.2021	Lottery guarantee for Galeria Libero - Projekt Echo - 120 Sp. z o.o. SK

For	Value [PLN '000]	Validity	Description
142 - City Space - GP Sp. z o.o. sp. K	20	until 22.06.2024	Security for liabilities of Projekt 142 - City space - GP Sp. z o.o. Sp. k. resulting from the lease agreement concluded on 21.05.2019. Issued in EUR.
142 - City Space - GP Sp. z o.o. sp. K	103	until 29.09.2024	Security for liabilities of Projekt 142 - City space - GP sp.z o.o. Sp.K. arising from the lease agreement concluded on May 21, 2019. Issued in EUR.
Skua Sp. z o.o.	24	until 17.12.2020	Bank guarantee issued at request of Echo Investment, securing liabilities of Aquarius - City Space - GP Sp. z o.o. Sp.K. under the lease agreement of 5.09.2018.
Horta Sp. z o.o.	594	until 17.12.2020	Bank guarantee issued at the request of Echo Investment to secure obligations of Aquarius - City Space - GP Sp. z o.o. Sp.K. under the lease agreement of 5.09.2018.
Tesco (Polska) Sp. z o.o.	–	until 30.06.2025	Corporate guarantee of Echo Investment SA securing the perfor mance of obligations Project 12 - Grupa Echo Sp. z o.o. S.K.A on provision of priority lease of space in the new shopping centre and resulting from the preliminary property sales agreement concluded on 30.07.2019 between Projekt 12 - Grupa Echo Sp. z o.o. S.K.A a Tesco (Poland) sp. z o.o. Due to business and legal arrangements, the guarantee has no upper limit of potential liability.
Total	1 195 499

FRS 9 introduced a model based on the concept of expected loss, also in relation to the issuer of financial guarantees. The company does not conduct separate activities in this area but is only a party to guarantees and sureties in relation to office and commercial projects implemented by subsidiaries. Such guarantees constitute either collateral related to project implementation or after-sales collateral for new investors and constitute a form of collateral commonly used on the market. In the opinion of the Management Board, through the ability to monitor the activities of subsidiaries, the Company has the full ability to monitor the credit risk associated with issued guarantees. The units of the Echo Investment Capital Group have full capacity and readiness to meet the contractual obligations, therefore the Management Board of the Company has not identified the existence of significant expected losses due to issuing guarantees and sureties by the Company. In accordance with the requirements of IFRS 9, a provision for expected credit losses as at 31 December 2019 in the amount of PLN 514 thousand was created and as at 31 December 2018 in the amount of PLN 270 thousand.

For	Value [PLN '000]	Validity	Description
Horta Sp. z o.o.	21 500	until 02.07.2020	Performance bond for the final sale agreement of the Aquarius Business House I office building in Wrocław. Issued in EUR.
Skua Sp. z o.o.	25 800	until 30.07.2021	Performance bond for the final sale agreement of the Aquarius Business House II office building in Wrocław. Issued in EUR.
Skarb Państwa	45 466	until 22.05.2019	Surety bond for liabilities of Outlet Park - Projekt Echo - 126 Sp. z o.o. Sp.K.
Skarb Państwa	4 550	until 20.06.2019	Surety bond for liabilities of Outlet Park - Projekt Echo - 126 Sp. z o.o. Sp.K.
IREEF – Stryków Propco Sp. z o.o.	420 000	until 15.12.2019	Construction work quality guarantee related to the Q22 office building in Warsaw.
IREEF – Stryków Propco Sp. z o.o.	27 358	until 15.12.2021	Rent guarantee related to the sale of the Q22 office building in Warsaw. The rent guarantee is secured by a bank guarantee issued by BZ WBK S.A. on behalf of Echo Investment S.A. The guarantee issued in EUR.
Ventry Investments Sp. z o.o.	28 360	until 20.12.2019	Rental guarantee related to sale of O3 Business Campus I office building in Kraków. Performance bond for the rental guarantee is corporate guarantee issued by Echo Investment S.A. Partially issued in EUR.
Emfold Investments Sp. z o.o.	43 193	until 20.12.2019	Rental guarantee related to sale of Tryton office building in Gdańsk. Performance bond for the rental guarantee is corporate guarantee issued by Echo Investment S.A. Partially issued in EUR.
Flaxton Investments Sp. z o.o.	18 148	until 20.12.2019	Rental guarantee related to sale of Symetris I office building in Łódź. Performance bond for the rental guarantee is corporate guarantee issued by Echo Investment S.A. Partially issued in EUR.
Projekt Echo 135 Sp. z o.o. Sp. K.	21 538	do 25.04.2020	Rental guarantee related to sale of A4 Business Park III office building in Katowice. Performance bond for the rental guarantee is corporate guarantee issued by Echo Investment S.A. Partially issued in EUR.
IREEF – Stryków Propco Sp. z o.o.	992	until 31.07.2019	Guarantee securing the execution of liabilities of Echo Investment S.A. resulting from the lease agreement of 24.10.2016. Issued in EUR
Santander Bank Polska S.A. oraz Bank BNP Paribas S.A.	56 954	until credit conver sion from construc tion into investment loan	Surety bond for costs overrun of the project of Galeria Libero in Katowice. Issued in EUR.
Santander Bank Polska S.A., PKO BP S.A., Bank Gospodarstwa Krajowego oraz mBank S.A.	39 990	until credit conver sion from construc tion into investment loan	Surety bond for costs overrun of the project of Galeria Młociny in Warsaw and liabilities of Berea Sp. z o.o. resulting from the agree ment on 17.10.2017. Issued in EUR.
Ventry Investments Sp. z o.o. Sp. K.	47 399	until 27.12.2020	Corporate guarantee of Echo Investment S.A. securing the rental guarantee related to sale of Q3 Business Campus II office building in Kraków. Partially issued in EUR.
Nobilis - Projekt Echo - 117 Sp. z o.o. Sp. K.	40 000	until 31.10.2026	Construction work quality guarantee related to the Nobilis office building in Wrocław.
Nobilis - Projekt Echo - 117 Sp. z o.o. Sp. K.	15 983	until 28.12.2020	Rental guarantee related to sale of Nobilis office building in Wrocław. Issued in EUR.
Novaform Polska Sp. z o.o.	4 616	until 31.05.2019	Guarantee securing the execution of liabilities of Duże Naramow ice – Projekt Echo – 111 Sp. z o.o. S.K.A. resulting from the agree ment of 08.01.2018.

For	Value [PLN '000]	Validity	Description
IB 14 FIZAN	88 334	until 24.05.2024	Performance bond for liabilities resulting from the final sale agree ment of the West Link office building in Wrocław. Issued in EUR.
A 19 Sp. z o.o.	25 800	until the expiry of the agreement of 4.07.2018	Performance bond for liabilities of Projekt 22 - "Grupa Echo" Sp. z o.o. - SKA resulting from agreement concluded on 4.07.2018 r. Issued in EUR.
Flaxton Investments Sp. z o.o.	11 278	do 27.07.2021	Rental guarantee related to sale of Symetris II office building in Łódź. Partially issued in EUR.
Bank Polska Kasa Opieki S.A.	14 147	do 30.06.2029	Cost overrun guarantee agreement regarding housing projects
R4R Wroclaw Kępa Sp. z o.o. / SO SPV 103 Sp. z o.o. / R4R Warszawa Browary Sp. z o.o.	82 818	do 31.07.2021	Advance payment guarantee.
IB 6 FIZAN / GPF 3 FIZAN	119 131	do 31.10.2021	Performance bond for liabilities of Rosehill Investments Sp. z o.o. resulting from the framework agreement of 31.08.2017. Issued in EUR.
	Total 1 203 355

Explanatory notes to profit and loss account

NOTE 19A

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 previous year were presented by the Company in additional explanations.

OPERATING INCOME MATERIAL STRUCTURE - TYPES OF ACTIVITY [PLN '000]

	1.01.2019- 31.12.2019	1.01.2018- 31.12.2018
Sale of residential and commercial space	179 452	187 986
- from related entities	-	-
Investment development services	76 506	196 843
From related entities	73 573	131 506
- from subsidiaries	57 873	131 506
Sale of plots of land	2 962	1 337
- from related entities	-	-
Leasing services	1 862	4 932
From related entities	1 395	2 751
- from subsidiaries	-	2 751
- from the parent company	-	-
Legal, accounting, consulting and IT services	9 999	6 609
From related entities	9 595	6 506
- from subsidiaries	9 595	6 506
- from jointly controlled entities	-	-
Financial, marketing, security and other revenue services	42 143	32 526
-From related entities	39 932	30 824
- from subsidiaries	26 031	30 821
- from key personnel	58	3
Operating income, in total	312 924	430 233
From related entities	124 495	171 587
- from subsidiaries	93 499	171 584
- from the parent company	-	-
- from key personnel	58	3

NOTE 19B The company did not conclude transactions with affiliated entities on terms other than market terms. Agreements regarding significant transactions with affiliated entities implemented in the previous year were presented by the Company in additional explanations.

REVENUES RELATED TO PROPERTY DEVELOPMENT (I.E. SALE OF RESIDENTIAL AND COMMERCIAL UNITS)

The Company recognizes revenue when the obligation to perform the service is met. The obligation to perform the service is considered fulfilled upon the release of the property to the buyer, which takes place on the basis of the acceptance protocol signed by the parties only after the completion of the property construction process and receipt of the occupancy permit, and provided that the buyer makes 100% payments for the purchase price property. Agreements concluded within this group of revenues do not contain the element of variable remuneration. In addition, in the Company's opinion, the concluded contracts do not contain a significant financing element. Due to such nature of contracts, the Company, as a rule, does not show receivables or other assets balances under contracts related to this group of revenues. The contractual obligations reflect the short-term down payments made by the clients. The table below presents changes in the liabilities balance under agreements in relation to this group of revenues.

SHORT-TERM ADVANCED RECEIVED [PLN '000]

	1.01.2019- 31.12.2019	1.01.2018- 31.12.2018
Short-term advanced payments received (note 15A)
- opening balance	69 657	44 266
Increase – payments	209 968	213 377
Presented as revenue in the period	(179 452)	(187 986)
- including revenue in the period, recognized in received advanced pay ments balance at the beginning of the period	(69 657)	(40 089)
Short-term advanced payments received (note 15A)
- closing balance	100 163	69 657

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, December 31, 2019 is PLN 403,497 thousand, of which up to the balance sheet date the Company received advance payments in the amount of PLN 100,416 thousand. zł. 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.

REVENUE RELATED TO DEVELOPMENT SERVICES [PLN '000]

Project	Targeted completion	Targeted revenue	Total value deferred revenue related to lia bilities resulting from concluded agreements	Received advanced payments
Dom Pod Wilgą III, Kraków	completed	41 839	492	420
Rydla 32, Kraków	completed	48 557	3 994	2 082
Osiedle Jarzębinowe V, Łódź	completed	43 926	2 952	936
Nowa Dzielnica, Łódź	completed	30 076	3 503	1 023
Osiedle Jarzębinowe VI, Łódź	I Q 2020	20 063	20 063	10 027
Osiedle Jarzębinowe VII, Łódź	IV Q 2020	35 864	35 864	4 493
Grota - Roweckiego 111 etap III, Wrocław	completed	16 300	8 939	5 851
Wodna Resi4Rent, Łódź	III Q 2019	45 791	45 791	42 168
Nasze Jeżyce, Poznań	I Q 2021	57 823	57 823	5 628
Nasze Jeżyce II, Poznań	II Q 2021	63 695	63 695	845
Apartamenty Esencja, Poznań	IVQ 2020	115 398	115 398	14 621
Ogrody Graua, Wrocław	IIQ 2020	44 846	44 846	11 860
Other projects		209	209	209
Total		564 387	403 569	100 163

REVENUES OF INVESTMENT IMPLEMENTATION SERVICES

The Company provides services for implementation of development projects: preparation and organisation of the investment process of projects owned by other entities - mostly subsidiaries. As part of its duties, the Company undertakes to perform supervisory, management, legal and other activities necessary to manage the investment. The process includes preparation of investments, organisation and service of tenders for construction works, supervision and coordination of construction works as well as customer. The company recognises revenues

OTHER REVENUES OF THE COMPANY

The Management Board analysed the other contracts for the provision of services, including real estate intermediation services, book-keeping, legal, consulting, informatic, financial, marketing and other services, most of which are carried out for affiliated entities within activities under Echo Investment SA's holding company. The Company recognises the revenue when the obligation to perform the service is fulfilled, i.e. for certain contracts – at the time of completion of a given type of service (e.g. signing a real estate sale contract as a result of the real estate intermediation service) or during the provision of a given type of service (e.g. at the time of fulfilment of the obligation to perform the service, i.e. during the service provision period. The remuneration resulting from the concluded contracts is permanent and due to the Company monthly. In addition, in the Company's opinion, the concluded contracts do not contain a significant element of financing. Due to such nature of the contracts signed, there are no significant balances of assets or liabilities under contracts, except for trade receivables (see note 9).

period of provision of bookkeeping services, marketing services, consultancy, legal and property management). In the majority of cases, services are provided on a monthly basis and are thus accounted for and payable to the Company.

service.For some contracts (e.g. real estate intermediation) the remuneration resulting from concluded contracts contains a variable element, however, the nature of these contracts shows that the Company is entitled to remuneration only when the contractual obligation is fulfilled, which results in the fact that the variable remuneration is known at the moment of recognizing revenue and its value is not changed later. Moreover, in the Company's opinion, the concluded agreements do not contain a significant element of financing. In connection with this nature of the contracts signed, there are no significant balances of assets or liabilities under contracts, other than trade receivables (see note 9).

NOTE 19C

OPERATING REVENUE - TERRITORIAL STRUCTURE [PLN '000]

	1.01.2019- 31.12.2019	1.01.2018- 31.12.2018
Domestic	312 744	429 884
incl.: from related entities	124 468	171 238
Abroad	180	349
incl.: from related entities	27	349
Total net revenue from sale of products	312 924	430 233
incl.: from related entities	124 495	171 587

NOTE 19D

OPERATING INCOME - SUBLEASING OF ASSETS DUE TO THE RIGHT OF USE [PLN '000]

Total	1 421	-
Leasing services	1 421	-
	1.01.2019- 31.12.2019	1.01.2018- 31.12.2018

The company sublets part of the office space rented in Warsaw.

OPERATING EXPENSES BY TYPE [PLN '000]

	1.01.2019- 31.12.2019	1.01.2018- 31.12.2018
Value of goods and materials sold	-	115 430
Depreciation	8 071	2 422
Consumption of materials and energy	15 649	21 777
Third party services	232 889	206 050
Taxes and charges	3 172	3 734
Remunerations	71 780	47 976
Social security and other benefits	11 830	11 583
Other costs by type (due to), including:	10 667	13 456
- business travel	6 251	3 018
- other	4 416	10 438
Total	354 058	422 428
Movement in inventory and products	(7 775)	18 960
Own work capitalised (negative value)	-	-
Administrative expenses related to projects*	(10 588)	(4 757)
Selling expenses (negative value)*	(19 340)	(24 254)
General administrative expenses (negative value)*	(91 967)	(85 748)
Manufacturing cost of products sold	224 388	326 629

* The costs of employee benefits and depreciation are disclosed in the costs of sales and general administrative expenses.

OTHER OPERATING REVENUES [PLN '000]

		1.01.2019- 31.12.2019	1.01.2018- 31.12.2018
Released provisions		260	17 624
- due to receivables		260	-
- due to expected costs		-	17 624
Other, including:		9 214	1 463
- contractual penalties		147	-
- revenue from sale of debt		7 770	-
- revenue from sale of non-financial non-current assets		224	555
- other		1 073	908
Interest on borrowings and bonds		54 097	22 292
- from related entities, including:		54 097	15 885
- from subsidiaries		45 595	15 885
- from co-controlled entities		8 502	6 407
Valuation		-	-
- from loans and bonds		-	-
Other interests		104	132
- from other entities		104	132
	Total	63 675	41 511

NOTE 21B

OTHER OPERATING INCOME FROM DIVIDENDS AND SHARES IN PROFITS [PLN '000]

		1.01.2019- 31.12.2019	1.01.2018- 31.12.2018
From related entities including		57 799	77 071
- from subsidiaries		57 799	77 071
From other entities		-	-
	Total	57 799	77 071

OTHER OPERATING EXPENSES [PLN '000]

		1.01.2019- 31.12.2019	1.01.2018- 31.12.2018
Provisions established		2 806	1 282
- due to expected costs		2 806	-
- due to receivables		-	1 282
Other, including:		294	12 334
- donations		276	621
- cost of loan sales		-	8 826
- contractual penalties		-	24
- compensation due to rent gurantee agreements		18	563
- due to using success fee provision		-	2 300
Revaluation		1 660	35 417
- loans and bonds*		1 660	35 417
Interests due to borrowings		630	3 369
- from related parties, including:		630	3 369
- from subsidiaries		630	3 369
	Total	5 390	52 402

*After reviewing receivables on account of loans and bonds, on the basis of the forecasted and current results and cash flows of the borrowers, the Company estimated the amount of revaluation write-downs on particular loans and bonds. As at 31 December 2019, the value of impairment losses amounted PLN 49 million, and as at 31 December 2018 amounted PLN 34 million.

NOTE 22A

FINANCIAL INCOME FROM INTEREST [PLN '000]

		1.01.2019- 31.12.2019	1.01.2018- 31.12.2018
Other interest
- from other entities		837	1 331
	Total	837	1 331

NOTE 22B

OTHER FINANCIAL INCOME [PLN '000]

		1.01.2019- 31.12.2019	1.01.2018- 31.12.2018
Foreign exchange gains		-	1 974
Profit on sale of interests		337	87
Profit on interests and certificates redemption*		9 913	82 738
Other		2	-
	Total	10 252	84 799

* The transactions are described in the notes 4B and 5.

Finance expenses due to interests [PLN '000]

Other interest
- for other entities	16 16	60 60
From Leases
- for other entities	657	-

	657	-

The amount of borrowing costs capitalised to the value of inventories as at 31 December 2019 amounted to PLN 3,436 thousand and as at 31 December 2018 - PLN 3 846 thousand.

NOTE 22D

OTHER FINANCIAL COSTS [PLN '000]

	1.01.2019- 31.12.2019	1.01.2018- 31.12.2018
Foreign exchange losses	1 235	-
– executed	-	-
Loss on disposal	-	-
– interests	-	-
Other, including:	6 446	6 674
– commissions	3 798	6 400
– other	244	274
– liquidation of companies	2 404
Revaluation of investments	5179	13 417
- bonds	1079	-
- interests	4 100	13 417
	Total 12 860	20 091

Write-off on share value is described in the note 4D.

INCOME TAX - EFFECTIVE TAX RATE [PLN '000]

	1.01.2019- 31.12.2019	1.01.2018- 31.12.2018
Profit before tax	29 807	68 079
Income tax according to the national rates 19%	5 663	12 935
Dividends received	(10 016)	(14 250)
Distribution of profit from limited partnerships (Sp.K.)	(965)	(3 052)
Company's tax burden relative to the result of limited partnerships (subsidiaries)	(1 369)	2 135
Representation costs and other non-deductible costs during the year	15 372	14 354
Provision for expected cost	(931)	1 205
Measurement of interests of a subsidiary representing a permanent difference	791	1 989
Write-downs on loans granted due to which deferred tax was not rec ognised	567	6 729
Movements in the measurement of other items	(717)	3 602
Charges on the financial result due to income tax	8 395	25 647

NOTE 23B

DEFERRED TAX, TERM OF SETTLEMENT [PLN '000]

	31.12.2019	31.12.2018
Deferred tax liabilities
– to be settled within 12 months	6 982	4 804
– to be settled after 12 months	(107)	267
Deferred tax assets
– to be settled within 12 months	-	-
– to be settled after 12 months	(2 236)	(3 603)
	Total 4 639	1 468

NOTE 23C

TAX BURDEN INCLUDED IN PROFIT OR LOSS [PLN '000]

	31.12.2019	31.12.2018
Current income tax
- current tax burden due to income tax	5 352	10 328
- adjustments relative to current income tax result from previous years	(129)	12
Deffered income tax
- related to arises and changes of temporary differences	3 173	15 307
Total	8 396	27 647

PROFIT DISTRIBUTION

The net profit earned by Echo Investment S.A. in 2018, amounting to PLN 42,432 thousand was allocated to distribution among the Company's shareholders by resolution of the Ordinary General Meeting of Shareholders of 25 June 2019.

The financial statements of Echo Investment S.A. for 2018 were approved by resolution of the Ordinary General Meeting of Shareholders of 25 June 2019.

Explanatory notes to cash flow statement

NOTE 25A

CASH INCLUDED IN THE CASH FLOW STATEMENT [PLN '000]

	1.01.2019- 31.12.2019	1.01.2018- 31.12.2018
Opening balance, including	181 977	228 079
– cash in hand and at bank	181 977	228 079
Closing balance	232 147	181 977
– cash in hand and at bank	232 147	181 977

ADDITIONAL EXPLANATION TO CASH-FLOW STATEMENT STRUCTURE

In investing activity the Company does not present interests on borrowings granted.

In the statement of cash flows of financing activity, the lessee classifies:

− cash payments on the main part, including interest,
− short-term lease payments, lease payments for low-value assets and variable lease fees not included in the valuation of leasing liabilities as part of operating activity.

CHANGE OF LIABILITIES ARISING OUT OF FINANCIAL ACTIVITY

	liabilities due to oans, borrowings and bonds	other liabilities – dividend included
Balance at the beginning of the period, 01.01.2019	1 171 173	-
Financial cash flows
– incomes	634 648	-
– expenses	(314 184)	(20 345)
Non-monetary changes	(65 559)	206 345
– accrued interest	54 540	-
– borrowings repayment	(125 825)	-
– valuation of exchange differences	923	-
– valuation by effective interest rate	(1 466)	-
– dividend approved for payment	-	206 345
– expenses	6 269	-
Balance at the end of the period, 31.12.2019	1 426 078	-

CHANGE OF LIABILITIES ARISING OUT OF FINANCIAL ACTIVITY

	liabilities due to loans, borrowings and bonds	other liabilities – dividend included
Balance at the beginning of the period, 01.01.2018	1 657 215	-
Financial cash flows
– incomes	671 675	-
– expenses	(724 740)	(412 690)
Non-monetary changes	(432 977)	412 690
– accrued interest	54 035	-
– borrowings repayment	(486 895)
– valuation of exchange differences		-
– valuation by effective interest rate	(116)	-
– dividend approved for payment	-	412 690
– expenses	-	-
Balance at the end of the period, 31.12.2018	1 171 173	-

INFORMATION	ON FINAN CIAL	INSTRUMENT	S [PLN '000]
-------------	---------------------	------------	-----------------

Type of instrument	Note	Classification ac cording to IFRS 9	Carrying amount as at 31.12.2019	Carrying amount as at 31.12.2018
FINANCIAL ASSETS
Long-term financial assets	5		478 355	796 125
– investment certificates			4 791	170 849
– bonds		depreciated cost	473 564	625 276
Borrowings and receivables			857 712	535 574
– long-term borrowings	6	depreciated cost	281 264	221 504
– short-term borrowings	10	depreciated cost	533 608	265 621
– trade receivables	9	depreciated cost	42 746	48 449
– leases	9	depreciated cost	94	-
Cash and other financial assets			249 867	189 366
– restricted cash	11	depreciated cost	17 720	7 389
– cash and cash equivalents	11	depreciated cost	232 147	181 977

FINANCIAL LIABILITIES
Other financial liabilities			1 479 480	1 203 768
– liabilities due to issue of debt securities	14,16	depreciated cost	1 085 197	1 121 173
– trade liabilities	15	depreciated cost	53 402	32 595
– loans and borrowings	16	depreciated cost	340 881	50 000
– leases	15	depreciated cost	25 919	-

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.

CHAPTER 3 INFORMATION ON THE FINANCIAL STATEMENTS

About the Company

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

Echo Investment S.A. (later referred to as Echo or the Company), with its registered office in Kielce, al. Solidarności 36, was registered in Kielce on 23 July 1992. Echo is a Joint Stock Company entered into the National Court Register under no. 0000007025 by the District Court in Kielce, 10th Economic Department 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, mWIG40 subindex, WIG ESG social responsible companies index as well as sector index WIG-Real Estate. The Company was established for an indefinite period of time.

The Management Board of Echo Investment S.A

as at 20 March, 2020

The Management Board of Echo Investment S.A. was appointed by the Supervisory Board on 29 June 2017, for 3 years term of office.

Nicklas Lindberg President of the Board, CEO

Vice-President of the Board

Artur Langner

Maciej Drozd Vice-President of the Board, CFO

Rafał Mazurczak Member of the Board

Waldemar Olbryk Member of the Board

Marcin Materny Member of the Board

Małgorzata Turek Member of the Board

The Supervisory Board of Echo Investment S.A.

as at 20 March, 2020

Noah M. Steinberg Chairman of the Supervisory Board

Tibor Veres Deputy Chairman of the Supervisory Board

Stefan Kawalec Independent Supervisory Board Member Chairman of the Audit Committee

Bence Sass Supervisory Board Member

Mark Abramson Independent Supervisory Board Member Deputy Chairman of the Audit Committee

Nebil Senman Supervisory Board Member Audit Committee Member

Maciej Dyjas Supervisory Board Member

Péter Kocsis Supervisory Board Member

The Management Board of ECHO INVESTMENT S.A. as at 31 December 2019

Nicklas Lindberg – President of the Management Board, CEO; Maciej Drozd – Vice-President of the Management Board, CFO; Artur Langner – Vice-President of the Management Board; Marcin Materny – Member of the Management Board; Rafał Mazurczak – Member of the Management Board; Waldemar Olbryk – Member of the Management Board, Małgorzata Turek– Member of the Management Board.

CHANGES IN THE COMPOSITION OF THE MANAGEMENT BOARD IN 2019

Echo Investment's Supervisory Board appointed Małgorzata Turek as Member of the Board on 7th March, 2019. She is responsible for investment, divestment and planning department.

SUPERVISORY BOARD OF ECHO INVESTMENT S.A. as at 31 December 2019

Mark Abramson – Independent Supervisory Board Member, Maciej Dyjas – Member of the Supervisory Board, Stefan Kawalec – Independent Supervisory Board Member, Nebil Senman – Member of the Supervisory Board.

CHANGES IN THE COMPOSITION OF THE SUPERVISORY BOARD IN 2019

Due to sale of majority stake of shares of Echo Investment S.A., on 13 December 2019 following representatives of investment funds PIMCO and Oaktree Capital Management resign from their seats in the Supervisory Board: Karim Khairallach (Chairman of the Supervisory Board), Laurent Luccioni (Vice-Chariman the Supervisory Board) and Sebastian Zilles (Member the Supervisory Board).

Audit Committee of ECHO INVESTMENT S.A. as at 31 December 2019

Stefan Kawalec – President of the Audit Committee, Mark E. Abramson – Vice-President of the Audit Committee, Nebil Senman – Member of the Audit Committee.

Changes in the Audit Committee composition in 2019

There was no changes in the Audit Committee of Echo Investment S.A. during 2019.

Independent members of the Supervisory Board constitute the majority in the Audit Committee. In this way the Company has fulfilled the requirements of the Act on statutory auditors, audit companies and public supervision of the 11th of May 2017 and one of the 'Best Practices of WSE Listed Companies 2016'.

Information on the financial statement

The statements of the Echo Investment S.A. present financial data for the 12-month period ending on 31 December 2019 and comparative data for the 12-month period ending on 31 December 2018.

The financial statements have been drawn up in accordance 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).

DECLARATION OF CONFORMITY

The statements have been prepared in compliance with the International Financial Reporting Standards (IFRS), as adopted by the European Commission. To fully understand the financial situation and business results of the Company as the parent company of the Echo Investment Capital Group, these financial statements should be read together with the full consolidated financial statements for the 12-month period ending on 31 December 2019. The consolidated financial statements are available at the Company's website https://en.echo.com.pl/.

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 Separate Financial Statement for the year ended 31 December 2019, which was approved for publication on 20 March 2020.

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.

Application of new and amended standards and interpretations issued by the IFRS Interpretations Committee

The following standards and changes in standards became effective on 1 January 2019:

IFRIC 23 Uncertainty related to income tax recognition

The interpretation explains how to recognise and measure income tax in accordance with IAS 12 if there is uncertainty about its recognition. It does not apply to taxes or fees that do not fall within the scope of IAS 12, or it does not cover interest and penalty requirements related to the uncertain recognition of income tax. The interpretation applies in particular to:

− separate consideration of uncertain tax treatment by the entity;
− assumptions made by the entity concerning the inspection of tax treatment by tax authorities;
− how the entity determines taxable income (tax loss), the tax base, unused tax losses, unused tax credits and tax rates;
− how the entity the entity reflects changes in facts and circumstances.

The entity must determine whether it considers each uncertain tax treatment separately or in combination with one or more other uncertain tax treatment. The approach, which better provides for resolution of uncertainty, should be followed.

The interpretation has no significant impact on the interim condensed financial statements of the Company.

Amendments to IFRS 9 Contracts with prepayment features with negative compensation

In accordance with IFRS 9, a debt instrument may be measured at amortized cost or at fair value through other total income, provided that contractual cash flows are only the principal repayments and interest on the outstanding principal amount (the SPPI criterion) and the instrument is held under the appropriate business model for this classification. Amendments to IFRS 9 specify that a financial asset meets the SPPI criterion regardless of any event or circumstance that cause early termination of the contract and regardless of which party pays or receives reasonable compensation for early termination.