2022
Management Board report on operations of Echo Investment S.A. and its Group
Pic. Face2Face Business Campus office building in Katowice
Pic. Lobby in the Face2Face Business Campus office building in Katowice
Content
Message from CEO | 5 | |
Management Report | 7 | |
01. | General information about the Company and its Group | 8 |
Management Board | 9 | |
Supervisory Board | 10 | |
02. | The Strategy of Profitable Growth | 11 |
03. | Business model | 13 |
04. | Selected financial data of the Group | 14 |
05. | The main figures disclosed in the annual financial statements of Echo Investment S.A. and its Group | 15 |
06. | Group segments | 21 |
07. | EU taxonomy | 24 |
08. | Echo Investment S.A. shareholding structure and shareholders' rights | 31 |
09. | Volume of the Company's shares and bonds held by managing and supervising persons | 33 |
10. | Major events in 2022 | 34 |
11. | Significant events after the balance sheet day | 46 |
12. | Residential segment for individual clients - market outlook and the Group's business activities | 48 |
13. | Residential segment for rent - market outlook and the Group's business activities | 54 |
14. | Office segment - market outlook and Group business activities | 56 |
15. | Retail segment - market outlook and Group business activities | 60 |
16. | How we manage risk | 62 |
17. | The impact of the war in Ukraine on the operations and results of the Company and its Group in the future | 66 |
18. | Portfolio of properties | 67 |
19. | Main investments in 2022 - acquisition of plots | 80 |
20. | Factors and unusual events affecting the results in 2022 | 81 |
21. | Significant factors influencing the development of the Group in coming quarters | 83 |
22. | Information on dividend policy and dividend | 85 |
23. | Output markets and sources of supplies of materials, goods and services | 86 |
24. | Financial liabilities of the Company and its Group | 88 |
25. | Sureties and guarantees | 93 |
26. | Assessment of financial resources management and investment plan feasibility | 95 |
27. | Information on borrowings granted in 2022, including to related entities | 101 |
28. | Agreements concluded with an auditor | 103 |
29. | Composition of the Group | 104 |
30. | Other disclosures required by law | 105 |
Statements of the Management Board | 106 |
Contact | 108 |
Pic. Fuzja office and residential complex in Łódź
Message from CEO
Dear Shareholders, Partners and Clients,
It is my pleasure to present to you this financial report of Echo Investment for 2022. During this period, we generated a net profit attributable to the parent company in the amount of PLN 127 million. That was mainly the result of handing over to customers 2,168 apartments for sale and for rent completed by Echo Investment and Archicom, as well as an increase in the value of office and residential for rent projects. Last year was also marked by the sale of seven office buildings worth EUR 318 million which is a very strong confirmation of the quality of our projects. It results in a strong cash position and reduced net debt of the Group, that is crucial for our business' growth.
Residential sector
Last year our Group sold 1,515 and handed over 2,168 apartments to individual clients. During this time we have jointly started construction of 1,613 units. The residential market is currently undergoing changes. Individual investors who buy flats, treating them as a safe capital invest- ment, have become the dominant group of our clients. They appreciate the quality, excellent project locations, as well as the stability and reputation of our Group. That is why we introduce to our offer projects that best meet the expectations of these customers.
Apartments for rent
The demand for apartments for rent is very strong, which confirms our faith in this market segment. The excellent condition of the rental residential market is reflected in the 100% level of commercialization of Resi4Rent build- ings. The company currently has 3 thousand ready and fully leased premises, with another 3.6 thousand under construction. The goal of Resi4Rent is to have about 10 thousand premises for rent by the end of 2024 - out of
which over 8 thousand ready and the rest close to com- pletion. Currently, the land for 90% of these apartments is already secured.
Commercial property sector
Last year was marked by the sale of completed and well- leased office buildings in our Group. It is important to un- derline, that we managed to close transactions for the sale of buildings located on Polish regional markets, and we are in the process of negotiating further transactions, the effects of which we will soon be able to present to you. This is an evidence of the fact, that investment market remains in good shape.
When thinking about the future, we are working on more spectacular projects. Last week, we presented the To- warowa 22 project in Warsaw designed by JEMS Ar- chitekci, which we will build together with our partner AFI Europe. A 2 hectares park with the renovated Dom Słowa Polskiego pavilion will create the central point of the pro- ject. Around the park, buildings will be constructed with flats, offices, rental housing and the services needed on a daily basis. The total floor area of the buildings will be more than 200,000 sqm. We plan to start construction of the first office building already this year.
We are also happy with the development of CitySpace, our flexible office space operator. The main activities marked by 2022 in this company were the opening of the twelfth location, expansion in Warsaw, decision
of entering a new regional market, increasing the standard of customer service and adapting offices in the entire network to the standard supporting ESG issues.
Management Board report on operations of Echo Investment S.A. and its Group at 2022 | 5 |
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Disclaimer
Echo Investment SA published this content on 28 March 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 April 2023 12:37:05 UTC.