BBI Development S.A. — Board/Management Information 2019

Jun 19, 2019

Current report No. 23 / 2019

Subject: Completion of the review of strategic options and update of theCompany's development strategy

With reference to information provided, among others, in Current reportsNo. 20/2018 of March 13, 2018 and No.22 / 2019 of June 19, 2019, theManagement Board of i2 Development S.A. with its registered office inWrocław (the "Company") informs that on June 19, 2019, the ManagementBoard of the Company adopted a resolution on the end of the review ofpotential strategic options related to the further development of theCompany's operations.

In addition, on June 19, 2019, the Management Board of the Companyadopted a resolution regarding the update of the development strategy("Strategy") of the Issuer's Capital Group ("Group"), presented in theCompany's prospectus approved on March 30, 2016 by the Polish FinancialSupervision Authority ("Prospectus").

The updated Strategy provides for the continuation of the Group's corebusiness, which is real estate development on the residential andcommercial real estate market (services and offices). The Group'sdevelopment activity will continue to focus on the implementation ofresidential projects located in Wrocław. In addition to theimplementation of projects from the upper market segment, on which theGroup has focused so far, the Group intends to significantly increasethe scale of operations through the implementation of projects from theso-called medium segment of the market addressed to a wider group ofclients. The aim of the Group is to increase the scale of developmentactivity to the extent allowing the sale of premises at the level of1,000 items per year. The Group's development strategy in the housingsegment allows for geographical diversification of operations throughthe Group's entry into the markets of other major Polish cities.

The updated Group Strategy provides for the creation of a new segment ofthe Group's operations - the commercial property segment. The Group'sgoal is to create, mainly based on commercial projects implemented bythe Group, a diversified portfolio of office and service properties(commercial and service premises) generating stable income for theGroup. and, in the case of sales of mature segment assets to externalinvestors, sales revenue. The target value of the net assets of thesegment (NAV) is to be at the level corresponding to half of the valueof the Group's equity.

The Group's strategy foresees continuation and development of theGroup's services in the real estate market (construction and designactivities), focused mainly on the execution of development projectsimplemented by the Group.

The Group's strategy assumes an independent further development of theGroup in the development and construction segment, not anticipating theactive search for partners (co-investors) to carry out the group'sdevelopment projects, at the same time not excluding such cooperation ifthe interest of the Company's Shareholders justifies it. In the Group'srental segment, the strategy allows, in the medium and long-term,creation of commercial groups based on the commercial real estateportfolio, dedicated rental companies that derive income from rentingand regularly paying dividends to shareholders, shares in which theywill be offered to external investors.