Echo Investment S.A. (the “Company” or “Echo”) together with its main shareholder are considering increasing the free float of the Company’s shares, through a non-documented offering to institutional investors, in order to improve liquidity for all shareholders and to diversify the Company’s shareholder base. Kempen, Pekao Investment Banking and Wood & Co. have been appointed to support this process. At this stage, the Company itself does not need any additional equity.

Not for release, publication or distribution directly or indirectly, in or into the United States of America, Australia, Canada or Japan or in any other jurisdiction where to do so would be restricted or prohibited by law. Company Highlights In terms of pipeline, Echo is the largest pure play developer focusing on office, retail and residential segments in Poland with: − Over 130 projects and 1.3mn square meters of usable space completed, and with 70 projects and 1 million square meters of usable space under construction and in pipeline;
− All of commercial projects under construction with pre-defined exit routes and over 60% of residential projects under construction already pre-sold;
− One of the most experienced management teams in the Polish real estate sector comprising in-house execution teams focusing on each of development stages, from land acquisition to sale;
− Targeted profit on cost margin of 30-40% over the EUR 1.5 billion pipeline until 2020
− Attractive dividend policy, targeting to pay up to 70% of annual net profit as dividend starting from the 2018 profit. For 2017, the recommendation of the management board of the Company on dividend is expected to be PLN 0.5 per share;
− Strong balance sheet showing H1 2017 net financial debt to asset value of c. 25%;
− Good access to financing through a variety of sources including project bank financings and bond markets. Background and Strategy Echo was founded in 1994 and listed on the Warsaw Stock Exchange in 1996 and has over 20 years retail, office and residential development experience in major Polish cities. In 2015, a group of investors (funds managed by Pacific Investment Management Company LLC (“PIMCO”), funds managed by Oaktree Capital Management, L.P. (“Oaktree”) and Griffin Real Estate (“Griffin”)) acquired almost 66% of the shares of the Company. In 2016, the Company fully focused on being a pure play developer by selling 75% of Echo Polska Properties (portfolio of yielding properties developed by Echo) (“EPP”) to Redefine Properties. Currently, Echo still holds 7% in EPP. The Company targets to further strengthen its leading position in office, retail and residential development, with focus on 7 major Polish cities enabling to optimize its resources and providing it with economies of scale. “Echo is the only Polish development company that can seamlessly combine office, retail, leisure, residential and hotel functions within one project. Creating such urban destinations is a part of our responsibility to grow cities in a sustainable way. It also gives the Company advantages in terms of flexibility, risk diversification and optimal utilization of own resources resulting in lower acquisition and development costs as well as shorter times to completion”, says Nicklas Lindberg, the CEO of Echo, who joined Echo in 2016 after 16 years with Skanska in various leading commercial and residential development roles in the CEE region with a focus on Poland. This material is not a promotional material in the meaning of article 53 of the Polish Act on Public Offering, Conditions Governing the Introduction of Financial Instruments to Organized Trading and on Public Companies dated 29 July 2005, as amended. This material contains certain “forward-looking statements”. Forward-looking statements are generally identifiable by the use of certain words, including but not limited to: “may”, “will”, “should”, “plan”, “expect”, “anticipate”, “estimate”, “believe”, “intend”, “project”, “goal” or “target” or the negative of these words or other variations on these words or comparable terminology or refer to information relating to the current year and the future. Forward-looking statements are based on current expectations and assumptions and involve a number of known and unknown risks, uncertainties and other factors that could cause the Company"s or its industry"s actual financial condition, results of operations or performance to be materially different from any future financial condition, results of operations or performance expressed or implied by such forward-looking statements. You should not place undue reliance on forward-looking statements and to the extent permitted by the applicable laws, the Company does not undertake to publicly update or revise any forward-looking statements that may be made herein, whether as a result of new information, future events or otherwise. This material or any part hereof is not intended for distribution, whether directly or indirectly, within the territory of or in the United States of America or other jurisdictions where such distribution, publication or use may be subject to restrictions or may be prohibited by law. The securities referred to in this material have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”), and may only be offered or sold within the United States under an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act.
This material does not contain or constitute or form part of any offer or invitation, or any solicitation of an offer, for securities, and under no circumstances shall form the basis for a decision to invest or not in the securities of Echo Investment S.A.