Echo Investment S.A. ($ECH)

[Interpreted] Good morning, ladies and gentlemen, and it's a pleasure to welcome you to our conference of the results of the Echo Investment where we are going to sum up 2025 annual. My name Weronika Ukleja and I'm responsible for marketing on Echo and it's a pleasure for me to host this meeting. First of all [indiscernible] 2022 -- 2025 SA. So it is a pleasure for me to present the Chairman, Waldemar Olbryk.

[Interpreted] Good morning.

[Interpreted] And a member of management of Echo. So without further ado, I will then later invite Echo Investment and now over to Waldemar.

[Interpreted] Good morning. It is an exceptional place. This is a location that perfectly defines the whole Echo Group, where quite unusually I would say complements how we create the urban so the residential part here is very much present here. We will be talking about it later on. But now together with we would like to take you through the summary of 2025, and we will talk to you that what happened in terms of business and financials, but we will also revisit quarter 1 so that you can have a feel of the dynamic of our Echo right now. So let me start with the most important events. 2025 is yet another year of the fifth year since Archicom became a part of Echo Group. So from a developer that had 6 projects, we now have 30 in the pipeline, and we were local, but now we are, in fact, a developer that I think aspires a lot higher than what happened in 2025. And what did happen? In a nutshell, the work very often on remarks, it's not seen, it's in the background, but it becomes recognized and awarded and this is what happened in March, last year where together with Echo had the opportunity to be awarded 2 prices for the Fuzja project, not just the regeneration of this unique place, but also a mixture of ideas that makes it real, what we talk about actually comes to it, becomes a place where we can make the cities of the future. Since the very beginning of this project, we said that Archicom was going to be a residential project where a developer that sells record high number of flats. This is what happened last year. Last year, we managed to also sell an office project office, too. And we are 100% focused now on the residential market. Thanks to being part of the group, we can build quite boldly look forward. And just like the developer was an idea of what we can do in Macondo we're launching 2 more projects, and I will say a few words about them. They present in Warsaw but also in Krakow and And one of the important components that puts a framework to this discussion, well, next developer is definitely a formula to unique places to live. September 1st was when we opened a school that we completed by fulfilling developer requirements. This is an exceptional school. Education also is held through including components of sustainable development. Last year was exceptional. We had record high sales. We also launched subsequent projects in the premium market, and we will tell you more about it in the second part of our meeting. And if you look at the window and so you hear on site, you can also take a look at the building site in Towarowa. What's very important to me is that for a while now, we have tried to diversify our portfolio. And step by step, we're not just selling more, but we're just selling a standard also that is popular with customers that want to live, but also want to be investors and our investors. We are also increasing the share of popular standard products. We are being appreciated. We are being awarded in that market sector and we use everything that we have learned with the average standard, but also the premium like here in Towarowa, which means that year-by-year, if you compare our sales results, our results are higher than 2024. Since the very beginning of 2025, we said that it was going to be a huge challenge in terms of the handover and indeed, almost 100% increase with a lot of emphasis on quarter 4, almost -- well, exactly 2,138 handovers. And these projects were everywhere. There was a huge monetization but also a great lesson for the whole company and how to prepare our clients, how to provide investments, how we can actively and realistically build up scale so that these plants are realistically foreseeable and scalable. We complemented our pipeline. And we applied the role of sustainable building of our offer to match our sales operations. We included some planned purchases. And at this point, early in the year, we had 32 projects in the pipeline and almost 3,200 flats on offer. Now what's happening right now in the market, well, I think that it's a dynamic time. At the same time, it requires, on one hand, planning. We want to be a developer that will let me just use an internal term that we'll be able to enter the growth trajectory that we can manage, but this was 30% growth in sales last year. And I think that we can ambitiously and broadly announce, which, of course, will require a lot of work, we can announce that we -- our aim is to be one of the top 3 in Poland, we are right now #4, but we have a very positive outlook going forward. Now on the market itself, everyone says that there's a lot of supply. And I think we can deepen the analysis in every single one of the cities. We will present such an analysis today, and I don't want to jump forward too quickly. Let me just say that having properties with very good locations and having ideas on how to develop them in various segments, even given the large supply that was the outcome of previous decisions, those are not decisions that are only apparent today, right? When we are able to selectively introduce our offer, we can say that we have a good portfolio wherever we are present and in whatever locations, please look at this slide. Whenever we look at the market for that it grew by 80% in Q3 and Q4. And our Archicom sales grew by 70%. Please look at Warsaw Grzybowska and Krakow, where we have definitely exceeded the standard from last -- from previous quarters, also in Katowice same was the case. [indiscernible] had a low baseline in the previous periods. So we are treating these markets, again, very much selectively, having good locations, we are treating them as stable places where we can implement our sales plan. And although this might be a simplification, I can say that our results vis-a-vis the market benchmark are very good, and that includes both the marketing mix, the product preparation and also what to do and what not to do. This together means that we have had a very good dynamic towards the end of the year. But we can also say that we managed to sustain a solid level of sales on our basic markets, while also we managed to prepare for the future. On an operational level, I think this is also of interest to you. Let me tell you what happened in terms of specific indicators. It was our goal to maintain an offer for this ongoing for the subsequent 12 months so that we can manage the land that we manage and the cash that we need to spend to be able to supplement the land bank. Quarter 4 was exceptional. We exceeded 1,000 sold apartments and other than this being 47% growth year-by-year in terms of quarters. The most important piece of news that I want to communicate is that we have operational capacity, which makes it possible for us to go ahead with selling 1,000 flats in a quarter. We're going back to our future forward planning to make sure that it's even more realistic. I remember getting this e-mail from David who said that we did something incredible. We sold over 1,000 flats. This is an incredible achievement for all the teams. So going back to the origins of Archicom, we were a local developer from [indiscernible]. And we are on the same or even better level of sales after 12 months. You can see in this slide as well, the projects that are still in the Echo part that we are managing as Archicom from the point of view of sales, marketing and [indiscernible] for example, is already completed. It's 2.5 hours from Warsaw, you can just jump on a first train. That's what I always say. But this is quite unique, as an example of the cooperation between Echo and Archicom because this is a project that allows us to build resilience for our customers because those are quite simply very good locations. Now handovers since the beginning of last year, we said that it was going to be an exceptional year, and this is what happened. Over 1,000 handovers the level of handovers vis-a-vis 2024 exceeded twofold. Without going into details, I can say that step by step, these projects progressed. We were obtaining our occupancy permits, and we were able to hand them over with incredible operational capacity. We made a quick summary to make sure that we can match the expectations this year because we have 3,200 plants to hand over in 2026. We want the process to be more predictable for the whole team. Now looking at the development process, we look initially first at whether or not we have lands that makes feel secure. Now the contracts that we have right now that are already signed as well as those that are only at preliminary stage, but secures over 10,200 flats -- [ 7,700 ]. We are diversifying between cities. We are seeing a lot of potential both in Warsaw and Krakow and Grzybowska where we can make more acquisitions. Thinking about the safety of our organization, we still keep checking whether are the model that we have developed is safe. 80% of our flights are sold momentum to be sold before the occupancy permit is obtained. We are convinced that this is possible to make sure that we close the deal on those projects that have been completed and closed the sale up to 100% afterwards. We feel secure. These are management decisions that mean that both forecasting acquisitions and launching new projects are, in fact, interconnected and things that we work on continuously. Let me just recall what happened in 2025. We often say, more pictures, right, or didn't happen. Well, these are quite unique, and we juxtapose them to what actually really happened in the reality. And I'm very satisfied to say that very often these projects look a lot better in reality. You need to wait a little bit because if the handover is in winter, the green areas are not yet there, but they were purchased. We had also good apartments that were sold here in the neighborhood, 3,274 that were sold over the last 12 months. So the very much -- the very big variety of our offer means that going forward, we are convinced and you can see that Echo in orange dark blue is Archicom, you can see that our sales plans will be supplement in such a way so as to be able to rationally manage our financial involvement in the locations that we deeply believe in. Also, our customer advisers very often say that we have returning customers who value what we can offer, not just as a project, but also a form that we offer. I think now is the time for financials. Over to you [indiscernible].

[Interpreted] Let me present the financials. Consolidated, we are now in 2025, we have the revenue and sales on the level of [ 961.7 million ], which resulted from handing over 1,320 flats. We handed over flats in 4 out of 6 cities where we are present in [indiscernible] residential area and in Warsaw Macondo Stage 6. The gross profit is [ PLN 320.6 million ] and the gross margin 33.3%, which as we declared before, is the desired level between 30% and 40% that we want to sustain. Now comparing it to 2024, in 2025, we had a different mix of projects. That's why the gross margin level is slightly different. Now for the cost of sales in general management, as we declared in quarter 3, we work intensely to make sure that these costs could be optimized. And the first outcomes are visible towards the end of 2025. When we compare to 2024, we've got a decrease by 10% in proportion to each sold because that's the kind of model of calculation that we've seen is appropriate in this case. As I mentioned in our previous conferences or what is the target for us and the point of reference is 50,000 per flat sold. So we still need to work on those items in 2026 and going forward. Now operational profit is PLN 142.6 million. The profit on containers is PLN 109.7 million. We added some information here that I think shows you quite well the potential of Archicom going forward. At the end of 2025, the value of the flats that were sold through a preliminary agreement but not yet handed over to our customers is PLN 2.3 billion, which gives you some idea about what our revenue is going to be like in the subsequent periods. Balance sheet. For assets, the total assets at the end is PLN 3.739 billion, and that's a growth by over 30%. And it needs to be reinforced that we have accumulated quite a lot of equity, 1/3 is the growth. A lot of that is the reserve about 25% I said last year, it's now 60% towards the end of 2025. So the growth has been quite even over the core distributed over the quarters. And this is due to the fact that we implemented an intense growth strategy. We purchased new land, we had 32 new development projects, which translated into about 600,600 flats. And as for liabilities, here, the biggest item on short-term liabilities, among short-term liabilities, over 60% are customers repayments, long-term liabilities are many over 670 million from this item. Our equity, in fact, has not changed significantly as compared to 2024. As for the sources of financing, we are diversified sources of financing. They are to a large extent our capital money from bonds, credit facilities and also customers' prepayments. And I think when you look here, the structure of the sources of financing, that the item that increased over 500 million. This is 100% are customers' prepayment and this is a direct effect of what Waldemar has said. That is a significant growth in sales volumes. As for debt ratio at the end of the year was 0.6. So it has not changed as compared to Q3. It is also related to the fact that in quarter 4, we used the kind of purchases opportunities because they were very favorable to us. All the time that the value is preferred in the indicator is below 0.5 and we will be aiming at it in the following periods. And we assume that it would somehow naturally happen together with the increase in our activity. The funds obtained have been used in 2025 to purchase land. We the total value of [ PLN 380 million ] in addition, PLN 100 million, most part of prepayments for purchases of other land, which, in fact, was converted or implemented in Q1 2026, which means that our plan for land purchase with shifts to Q1 2026 has been implemented. And we are working on our next purchases. As for bonds in 2025, that is last year, we bought a bond for the total amount of PLN 62 million. In 2026, we don't plan by output The first is 28 -- in quarter 1 is 27. And what should be emphasize is that all the time, we are oriented at intense growth, we have not yet achieved the ultimate savings as regard and handovers that we are aiming at. So we are really focusing greatly on investment and on growth, then course on condition that we maintain an appropriate low debt and flexible sources of financing. As of the 31 December 2025, we have a potential of [ PLN 227 million ] in cash. [indiscernible] has been a stable payer on dividend. As you can see every year, we have paid a dividend. That's something from 2018. Of course, the last 2 years are most interesting because despite implementation and intense CapEx growth, we also managed to pay the record dividend in the history of our company. Of course, we intend to maintain such good practices, and we will inform you about the details at another time. And that's it as regards the financial part.

[Interpreted] Well, just to close the information of this meeting, I think we should say what has happened since the 1st of January, we've been greatly satisfied we've been working hard. Our team has been working hard. The competitive project is very good because that decision has been obtained by us. I mean, we -- we would soon start the product. As developer project, that would be also our contribution into public infrastructure the know-how and our organization enables us look positively at other projects, both in Warsaw and Warszawa. These are the projects in the framework of which we are discussing the cities of the future, the cities where there's good living conditions, good functioning conditions would be met. This would be West in Warszawa, the next of modern or another project in Street. So we will continue the project, and I encourage you to really focus on that part of my presentation, I mean here, also crucial for me, some other projects as such the launches that close is housing stays like [indiscernible] then introduced for more sales [indiscernible] that has had a new standard as regards to the premium definition. So as for investment projects on the right-hand side, the land of the left-hand side. In Q1, we got occupancy permit for [indiscernible] a very interesting product in Warszawa. So these products would contribute to the result of Q1, including those that have been shifted due to the speed of sales and these processes would be finalized in Q1 so that we could of course meet later on and discuss it in more details. So of course, 2025 was the next year of very growth. I mean we could treat like that. That also has been the year that looks very broadly into the future in 2026. We look at the housing markets, which are very liquid like Warsaw, which is the key market. We've been working on the development of our offer within the popular segment. We see it's needed and we are looking strongly at the market in Tri City. That means that our goals for this year as regards to sales is between [ 3,200 to 3,500 ]. And the handovers that I mentioned an area is above 3,000 units and developer projects will be finalized by us, given the stage they are at now. And we would like to launch on the market as many as possible out of them. We would focus on operational and excellence. We know that's a very broad [indiscernible] construction and efficiency, operating efficiency, then at any stage of our organization. And the model that we worked on or have been working for now is scalable, and therefore, we look boldly and realistically that we will become 1 of top 3 among Polish developers. So these are our plans for 2026. And Weronika over to you. Thank you so much.

[Interpreted] Waldemar, thank you very much for your presentation. And now we have a short break. And I'd like now the members of the co-investment Board to take their seats. Please take your seats close to this stage because very soon, you will get back to the Q&A session. And now we will start summing up 2025 in the Echo Group. And this part of the presentation will be delivered in English. Right now, I would like to invite Nicklas Lindberg, CEO of Echo Investment; and Maciej Drozd, our CFO, to the stage as they will summarize the 2025 activity of the whole group. So giving you a broader perspective of both commercial residential and living part of our business. So welcome, Nicklas. Welcome, Maciej. I will just give you the stage. Without further ado, I think Maciej you will start. And after this part, we'll have a Q&A session.

Good morning, ladies and gentlemen. It's my pleasure to start this presentation and start from the highlights. Shortly speaking, 2025 was a great year for Echo. We can call it transactional year because a lot of things happened, both on the sales side and on the buy side, on financing, refinancing and payment of dividend. If you look at that one by one, we need to say that in commercial sector, we delivered on our promise to sell commercial assets on the market that was -- as we said before, during the year was not obvious, was not easy. But we did it because the quality of the assets that we built, the quality of tenants is exceptional. And on that basis, we were able to transact to sell the City 2, Brain that building where we are here and also shopping center Libero. We also were part of a landmark transaction in PRS sector, our affiliate resi for rent, where we built already the largest PRS platform in Poland, signed agreement to sell 18 projects to TAG. And this transaction was signed in Q3, and we expect it to close soon. We also bought a project in Warsaw City Center, and I think Nicklas will tell more about what is happening in office segment around us. So in Warsaw CBD. Residential sector, as Archicom presentation already made it trade clear, was unquestionable success with 30% year-on-year sales growth and from the whole Echo Group perspective, doubling number of handovers if we look at the full year. We started many projects, 17 in residential segments and 4 in commercial segment. And also, finance was an area of very important activity. We started to reduce our debt, our corporate debt, the bond debt, PLN 50 million was repaid and we already continued in 2026. We have repaid together with disposal of the projects over PLN 400 million of project debt. And what I think is probably the most important for all the investors that we did pay PLN 330 million of dividend in Q4, which was [ 80 ] gross per one share. You can see now pictures of the assets that we sold in 2025. I don't need to repeat the names. I would only like to say that the value of disposals was around EUR 300 million. And to repeat that we reduced that by virtue of disposals by 40 million. And we also signed this landmark as resi foreign transaction that we expect to close this year. And we are not stopping. We continue to sell. We have equally ambitious list of assets to be sold in 2026. So 2 other buildings of Brain complex, one was sold in '25 and we continue with the process, and we can proudly say that we already sold the first one in 2026 out of 2. And the second one is in advanced negotiations. And we also have 2 other projects -- 2 other office projects that are completed this year on our list of assets to be sold in 2026. We expect to free around 0.5 billion of cash as a result of these transactions. And we started to do that, we already received 60 million out of the first disposal of building Brain Park A. And with these funds, we will reduce our corporate debt. We will invest in new projects especially in living sector and in Warsaw CBD, and obviously, we'll continue to pay dividend. You can see on this slide more details of the building that we already sold this year in Krakow. And I think it's fair to say that like all the buildings that we built, lease and sell, it's a building of very high technical quality which is certified by Brian outstanding certificate that is leased to prime tenants like PepsiCo or Ernst & Young. And it's also well located in Krakow. So these buildings, we are able to build, lease and sell successfully. So if we look what we are planning to do in 2026. I think it's fair to say that we want broadly to continue what we started in 2025, what we declared to you to our investors as our plan, so we want to continue the disposal of office assets. We'll continue to look for new projects in Warsaw CBD, new commercial projects because we strongly believe that this is the part of the market that is performing in a way which is very good and very -- and makes these projects very interesting for us to invest, to develop, to lease and to sell. In living sector, obviously, doesn't need to be even said, but I will do it anyway. Archicom is our key focus. We expect faster sales and handovers growth as we support management of Archicom in these plants. We'll continue development of new PRS projects. So we are not only selling these assets that I mentioned before, these 18 projects, but we are also starting new projects in this segment. This segment, we believe, is attractive, especially in Warsaw, but not only. It will continue to develop our student space platform, where we currently have over 1,000 beds under construction, including projects in Warsaw, which is, again, the most attractive market for this segment. In finance, we'll continue to repay the debt to invest, of course, in new projects and obviously, to pay dividend. Echo Group is really about projects. I mean this is what we do. This is what we are about. And also I think, is a very interesting example of cooperation within the group and long-term development and also how we adapt to changing market conditions. I would like to remind you that the project was already completed partly by Archicom and because other part of the project was for commercial use, we had to work together with Archicom as a group on converting these projects to residential use that was successfully done and the project will start this year. And later, there will be even specific presentation done here on this particular project, which is very, very interesting, and it's a great example of our strategy, but also flexibility. Afi Tower is another example of fantastic project and very unique one. This is the project that we started already last year and of course, the construction of such a high building, 40 floors, 150 meters will take some time, but we already see a very, very strong tenant interest, and we are, on this basis, very optimistic about the outcome of what we are doing here. The same can be said about the next phase, which is a smaller building, less square meters and also not that tall. But again, also here, we have a very, very strong tenant interest and that's a project that we are starting -- actually, it started already now. We got the building permit. And if you look outside of the window here, you can see that. Another one, it's really a long list, but we are really doing many, many projects. It's Gutenberg Apartments and Towarowa Gardens. It's project that also started this year. It's high and residential done by Archicom. And again, there will be more on the halt of today. So please expect more details and a lot of interesting information. So to sum up, Q4 was a very successful quarter from our perspective. Residential sales and handovers in Echo Group, both exceeded 1,000 units. So we are at the level that we would like to continue and achieve each quarter. But of course, it was the first time when we hit that level. So it's possible, and it's our ambition to continue to be at that level. We sold first of the Brain Park buildings and the next one was in Q1. We also sold a stake in Libero Shopping Center, and we did pay [ 80 ] per share dividend. After Q4, also already now, already this year, we are working on Kabaty after having achieved approval for this -- for the change of the zoning. We sold Brain. We are building Towarowa. And I think what is also important to say that we already repaid 50 million of public bonds, which is a continuation of the debt reduction plan that I mentioned before. Key financial data. As I already mentioned, we look at the Q4 as a good quarter. For us, the net profit exceeded PLN 100 million, which was better than the consensus and of course, much better than a year ago, where actually the result was negative. So we can say this is the quarter that makes us satisfied. But of course, we will look at further improving these results, although they are better than the consensus, they are not full ambition that we want to realize in the future. I already mentioned the handovers and the fact that we exceeded 1,000 units handed over in Q4 2025. On this slide, you can see how it looked in 2024. And now in 2025, of course, we had a very, very steep growth. If you look, of course, in the future, as I mentioned, company ambition is to, of course, deliver even better results in 2026 and beyond. Nicklas?

Yes. Thank you, Maciej. If we look into the segments, of living, which is one of our bigger segments of the market, we have already said that we have sold in Archicom a record year of 2,850 apartments. We will continue investing in our land bank, and we'll continue to grow both but also handovers and sales. And this is something that we are just in the beginning of the trend of continue of our growth in the living sector. What you see in Poland is a stable sales on all the main markets. What you see is the bigger players are getting bigger. The smaller players are suffering much more on the market today. The market in '25 versus '24 was a smaller market, but still Archicom's market share grow by 30%. And we want this growth to continue into 2026. So this is just in the beginning of the growth and we are not really there at the level where we hoped for, and we're going to continue growing going forward. And this is the plan that we have communicated from the beginning. So we were last year in 2,800 plus. This year, we're going to be in the range of 3,200 to 3,500. And then we're going to get up to 4,000 that we have communicated, this is the level where we feel we can continue trading on that level or slightly below for many years going forward. So we are still in the growth strategy. We will continue growing. We will continue investing much more in Archicom, much more in land bank, starting new projects because we believe a lot in the market, we believe a lot in the growth. And we think with the Archicom quality that we have done until today, where there is a lot of more market share that can be taken by the business. If you look at the sales spread over the different markets, this is the market that we're going to continue focusing on with the exception of Katowice, where we did one Project and after that one, we are not going to do anything more on the Katowice market. Like I have highlighted many quarters before, a market that is very, very interesting for us is Tricity. On Tricity, we're going to continue evaluating now during 2026. And once we see an opportunity for the TriCity market, that is something that we're going to explore further. We're not going to enter the TriCity market by a single project. If we're going to enter the Tricity market, we will enter by a bigger acquisition into that market. Handovers we continue growing our handovers. We doubled from last year, and we're going to continue increasing in 2026. This is something that is important. This is what's going to come into our P&L. And going forward, this is something that's going to grow in line with how the sales are growing the year before. So our continued growth in sales will then translate into further growth or the handovers for the coming years. The offer is stabilized across all the different markets. We are focusing a lot on the bigger markets. We want to have a big market share in Warsaw, Warszawa and Krakow that are the biggest markets where we'll get very, very good profitability out of our projects. Wuch and Poznan are very strong markets for Archicom. We have taken a good strong market share there. We're going to continue developing our big projects in those markets. In Poznan now, we are going to have another project that is based on the new plan being implemented that we're going to start this year on the old We are active on the 6 different markets. We are analyzing the seventh market, which is the Tricity, which is an interesting market for us. Now in the future where we're going to exceed the 4,000 apartments. And all these markets here, we're having a big market share. We're going to continue growing our market share. And a big focus from inside the whole group, which you have seen also now in the presentation of the project we are starting is Warsaw. We need to grow up to a bigger market share into Warsaw. We have done tremendous work over the last year to growth, but it's still a much more done in Warsaw. And here, we're doing very, very nice projects in great locations and all of them are city transforming projects. When we were last year, the biggest project in Poland was Park that was ongoing. And now when you see now, you look outside the window, you will see the biggest project in Poland today, which is Towarowa. So we are really doing city transforming projects in the capital of Poland, which is unique for Archicom Echo. The living sector with the Resi4Rent is a very, very interesting market. We continue growing in the market. We continue handing over new projects. We are going to the transaction in Q2. We have targeted to sell off a part of the standing assets. That was from last year. And now we continue growing our platform. We're going to continue starting new projects. We're going to continue leasing up the projects that we have already done. And we see both from banks and from our tenants in this project, there is a big interest for this market. And we have only seen the beginning of the Resi4Rent market. That is going to continue growing for many years going forward. The transaction we announced in last year in Q3 is now getting the approvals and will be closed in Q2 in 2026, which is the 18 projects that was at that time completed. And today, there is many more projects being completed which will still be managed with the same platform that we're having in place today. On our Resi4Rent platform, we are leased around 98%, and we continue trending in the range of 98% to 99% leased and we are increasing rents above what the inflation is in the market. So we are continuing seeing a strong growth. We were the pioneers in this market. We are leading the market, and we're going to continue growing our market even after the sale that we're doing of the 18 units. We are continuing focus very, very much in this market. It's the same belief I'm having in the Resi4sale market market, I have the same belief in the Resi4Rent market. And they are not competing to each other. They are complementing each other. And I think this market will be growing going forward, but there will be the same consolidation as you see on the Resi4Sale market, where the biggest players will get bigger. We went in last year into the student housing market. We handed over 2 projects in Krakow, which both on Wita and on Listopada that has been very, very successfully leased. And we are now going forward this year, opposite of Park, where we do you see that is next student-based building that will be opened up now in September for the next semester, which is really a new project that was there yesterday, and it's a fantastic quality, and we already have the first 2 rooms ready to show up to our investors. And then we're going to continue in July, August to be ready fully with the project to welcome the first students in September. Parallel with this, we're also starting a project Street, and we're going to open up more in Warsaw. What's unique about our student platform is that we only do Warsaw and Krakow. We are focusing on the 2 biggest markets where we see the biggest demand today. And going forward, we're going to acquire some more projects in Warsaw this year to continue growing our presence. What you see here, the difference is when we do receive -- Archicom is doing an average of the apartment of 55 square meters, Resi4Rent is around 33%, and our students are between 14 to 16 square meters. So we are addressing totally different segments of the market, and that's how we really can complement all parts of the Living segment in Poland. And here, you see some pictures where we doing a lot of focus on the common areas, the amenities and everything you will see inside the student space areas. And here, you see the pictures from Plaza. And from now and we're already at full height, we're going to continue going in full speed ahead, and it will be a beautiful project that you will see shortly for the next presentation. Commercial, office and retail. This is a market that has been suffering for the last 2 to 3 years. We see now a strong interest in commercial segment. We see retail is coming back strongly. We sold Libero. We see also a strong interest now on Mlociny. We see our offices has a very, very strong interest. We sold one asset at the end of this year, we sold one asset already now in Q1, and we have already let or some intent for the coming assets to be sold. The leasing market, we hit now 93,000 square meters of office leased last year which comes back to where we were at the high parts of the market. What is really interesting here, if you look out to the window, we have started a high rise, we're starting a smaller building and all of them are starting on a speculative basis because we see so much interest in our buildings, we see rental growth in the market and we're also going to see forward that there is not enough supply to satisfy the demand from the tenants. The vacancy rate in Warsaw is the lowest since 2020. And we're going to continue seeing it's going to get lower and lower. And what you see is in the market of area where we have acquired a lot of offices that we are now transforming into residential. There is both -- 2 things happening. There is a less or less offices in which has decreased by up to 20%. And and those tenants are always relocating into the city center and paying higher rents. So what we're going to see here now going forward for Warsaw, we're going to see rental growth on all markets. And also, we're going to see that tenants is not having that much options to move into new buildings of the highest quality that we are delivering. We have here in Wroclaw, next to midpoint, what we're doing a fantastic building that we're going to open up in the coming days. And we are now 60% leased in the building, and we have one tenant in the early discussions that will go up to 91% leased of the whole building. So this really shows that at on completion, we are up to the levels around 90%. And WITA, another project, we have signed one tenant, and now we're signing the second tenant for the remaining part of the areas. So at completion in occupancy in May, the buildings will be fully leased. So you see here in all these markets here as well, we have seen rental growth. We see interest from investors. We see interest from tenants. So the commercial segment that many people believe was in a difficult period is now really coming back. People coming back to the office, people are looking for quality. And also, when you look at what we're doing on Towarowa, that's a unique project. And this building we're sitting today is fully leased, and there are all the tenants in the building are looking for more space. City space is another part of our business that is benefiting from this trend. As there is a lack of office the co-working is also benefiting. This is a flexible way where you can have this overlap of the people coming into the office that will be put into the city space or other co-working locations. We have been successfully here renegotiated our leases. We are opening up new locations. We really believe in city space going forward as we see the growth on the market. Galeria Mlociny is now up to a level where we're getting it stabilized. We think that what we put in and the tenants we're putting in there is really showing the confidence in the market where we believe this is the right way moving forward for Warsaw. From an ESG perspective, we are continuing focus on the ESG. It is the integrated part of our business. We are also taking the ESG to the next level where you see on the area where we're sitting today, where we're building a 2-hectare park that we're giving back to the city. We are creating green areas on all our projects. We are making sure that it's not only the buildings that are certified how we run them, how we run in the most energy-efficient area. It's also how do we give back public places to the inhabitants of all the cities where we develop our projects. So this is crucial for us in all areas, both how we run our business, but also how we run our destination projects.

Now we look into more details of our financials. So as I already mentioned, we look at Q4 of the last year is a very, very successful quarter. Obviously, compared to Q4 of 2024 because of 4x bigger number of handovers. Revenue was substantially higher. And also, we did show very strong margin of over 32% on residential sales which was the main driver of our gross sales profit. You can see that in fair value, the gain was not material, so it did not really impact the result. You can also see, if you look at SG&A, that they were lower than in 2024. So it's really -- on a group basis, it's a trend that we welcome and this is done. Please remember at the time where Archicom is investing a lot in the growth and the growth is expensive. And of course, it's much easier to manage costs where you are stable when your top line is stable, where your volumes are stable, it's much more difficult to do that while you're growing as rapidly as Archicom is growing. And obviously, at that time, you need to invest a lot of marketing systems, people and other resources. So we are happy with this trend. You can see that JV result was slightly lower in '25 than in '24. This is driven by valuations really and the number of projects that we complete and that was high in '24 than in in '25. Overall, net profit for the quarter was 109 million compared to a loss of [ 16 million ] year before. And as I said, the quarter was very good, but still we want and we plan to achieve better results looking forward. If you look at our balance sheet, Obviously, what you notice immediately is a very big increase of inventory, which is obviously driven by the growth of Archicom. And again, it was already said today that these residential assets that inventory growth is financed in a big extent by client prepayments, which is a very efficient way of doing that. At the top of our balance sheet, you can see investment properties and properties under construction. And I just want to remind you that in that area, we have both phases of Brain Park, which one was already sold this year and the second is planned to be sold in Q2. Also, WITA and [indiscernible] the projects that were described more in detail by Nicklas that are also on our list of projects to be disposed. So we plan to continue that this process so the trend of decreasing on our balance sheet, the share of investment properties of investment properties under construction is to continue because we will continue to have here projects in also CBD as a plan looking forward. Our JV area did not move a lot, moved a little bit because as we are already selling some of the assets on unit-by-unit basis that was mentioned that we are in this process, and we are quite advanced already and the process is going to be completed this year. We are already achieving distributions from Resi4Rent. So we -- even without these large transactions, we are already getting distributions coming from the disposal of unit by unit of Warsaw Brewery and Kampa. Just to remind you, the strategy on that part was driven by the fact that the pricing that we can get on unit-by-unit sales for this asset is much better than we can get in the entire transaction. If you look at our liabilities, you can notice a certain decrease of the balance sheet. And this is consistent with the fact that we are selling commercial assets. We are decreasing our liabilities, and we are paying dividend, right? So you can see a movement of equity, which is consistent with the fact that we did pay over PLN 300 million dividend last year. And you can see that in financial debt, which is short term, is slightly higher than a year ago. But this is the debt that we are going to either repay because it belongs to projects like Brain Park that are already sold or to be sold, all that is linked to renewable lines that we will continue. But overall, I think the trend of having less debt, obviously, is to be expected. Our net debt ratio was within the target that we used to have for many years, which was between 30% and 40%, but we are at the beginning of our debt reduction, we did reduce that to a certain extent in Q4, but we'll continue and will do much more in 2026. So long term, we expect to have and we plan to have a lower net debt ratio, which is more consistent with the fact that on our balance sheet, Archicom share will be much bigger and obviously, residential developers typically have lower gearing than commercial developers. So we will also have on this basis, consolidated net debt ratio lower. So we look at the range of 20% to 30% and not above 30%. One look at our bond maturities. What we have here in 2026 is not a significant amount from our perspective, PLN 50 million is already repaid, and we plan to continue repayment of these bonds in the amount of PLN 100 million during the year. When you look at these different colors here, you have -- you see this more, I would call it, green blue, I'm not sure how to call this color, but let's call it green blue at the bottom. And this is the area which we want to reduce. This is bond debt on Echo part. The gray area at the top is Archicom so we have the strategy that the part as we are selling commercial assets, that, that part will be reduced and as a result, also total amounts will be reduced, and we are prepared to do this, of course, on maturity or even proactively before as our cash flow from commercial disposal allows. We'll use it partly to prepay this debt which is maturing in future years. So shortly speaking, we do not have plan to issue new debt in Echo. In terms of bonds, we have a plan to continue to reduce it. The last element, I think already said it a few times, but I think it's good maybe to repeat it for the last time that we did pay advanced dividend at the end of 2025 in a very healthy amount. And of course, again, as I already said a few times, it's a plan to continue to be dividend payer on the basis of both disposal of commercial assets that produce cash flow, but also the results that looking forward will be more and more driven by Archicom, by growing number of handovers and net profit coming from that source. Thank you.

Thank you, gentlemen. I think this concludes financial presentation element of our today's meeting. So please stay here with us. But on the other hand, I would like to invite back [indiscernible] and Waldemar Olbryk to the stage. In a minute, we'll be taking questions both life and from the audience. So I encourage you to be brave and ask us whatever you want. Thank you.

[Interpreted] Ladies and gentlemen and gentlemen, please ask questions. [indiscernible] okay, that is one question. Please go ahead. I think whatever you prefer, Polish is good.

David Charmatin. First of all, with the commercial segment. Would you mind walking us through the time line or the general idea of the project that is going to be built on the that you acquired in 4Q.

On Grzybowska, we acquired a plot late last year. What we're doing now is we are working on -- we will demolish the building today. We will build a new office of the 20,000 square meters on the plot because we believe a lot in the office area, and we believe this is a really attractive area to continue doing it after [indiscernible]. And we are planning to start the new office building there early 2027. So we will complete it late '28, early 2019.

Right. And like, what is your general appetite towards the commercial investments because once you're going to basically divest majority of your yield-generating projects this year. Outside of Towarowa, there won't be much of an assets going forward. So like the general rule of thumb or ballpark estimates, how many new projects are you looking to basically commence following this year's investments.

What we're going to do following this year, we are going to focus much more on Warsaw CBD, which has moved to And we have acquired now, like you highlighted on Grzybowska are now in the pipeline of acquiring more plots around here around area. So every year, we're going to start around 50,000 square meters of office in Warsaw. If you're going to add the rule of thumb, it's around 50,000 per year that we're going to put to the market in Warsaw around and these areas. So it's, we are not going to do like we did before where we have probably spread all over Poland, we're going to focus much more on putting it back on Warsaw. We see that, like I said before, there's rental growth, rents are like 20%, 30% higher than it used to be. We see investor appetite going back to Poland. Poland is a very attractive market where you see that the rents are high, still not as high as the surrounding markets. The yields are attractive and also people are back in the office. You see really that there's a lot of trends pointing at Poland. And now when I was in an 2 weeks ago, it's like there's a lot of discussions, how can we get more investment into Poland.

Right. Maybe just finishing up my commercial questions. Following the regulatory approval, when it comes to the Resi4Rent divestment, what is your plan going forward for Resi4Rent? Do you look forward to now creating another 2,000, 3,000 new projects, new units or rather sell of the remaining part of the asset?

Where we have now is that we have a deal that is on the -- now on the approval process is that we think will close now in Q2 is about 5,500 apartments. We have today with the newly completed, I think we're up to 3,200 apartments in the pipeline. We're going to continue growing that one up to 5,000, 6,000 apartments again, and then we will analyze it again, and I will take a new decision going forward. So as in all the rest of our businesses, we are never a long-term holder forever. That is not in our business model. So we will build it up, get to 5,000. And then hopefully, we will find a new investor, and then we'll do it over again. So we will continue repeating this like we do with office sales, but in a much bigger scale. And it's very similar to what we have communicated with the student space, where we're saying we're going to get up to 5,000 units, then we will divest and then we'll start up a new student space platform.

Right. So let me switching up to the residential part [indiscernible] observe that is going on impacted as regards to cash or is the situation stable? And maybe in a few quarters' time, we may feel it cost of construction that you will have bear.

[Interpreted] I think as for construction, something may change from one week to another. Two weeks ago the situation different [indiscernible] framework agreements because cooperate within the framework of that's risks are secured in the midterm, not in the long term and analyze it current basis saying that we see something is too early which doesn't mean that we don't observe the market. Our experience is that through the work group we secure of supplies by implementing contracts if we have [indiscernible] from Echo and Archicom which doesn't mean that we don't analyze the risk in potential scenarios in business plan. And we have now [indiscernible] cost optimization. And I'm saying it was optional because [ 2 weeks ago and 3 days ago, ] we would not say that because I mean -- I would not give any specific details this is early.

[Interpreted] So target 30, 40 gross margin still in place, nothing will change?

[Interpreted] Yes. All the time and [indiscernible] change circumstances. [indiscernible] we are doing our best [indiscernible].

[Interpreted] [indiscernible] in general because in your perception, popular segment is not the same as for other players that these are multi-stage maybe products or smaller projects based on mid-market sort of how do you define it?

[Interpreted] So I think the popular product is more available product to an average buyer who buys the first department is a many state projects. And we've had experience in that Archicom and like these were the projects that we inherited, and we [indiscernible] the last 2, let's say, 3 phases. These are projects which is crucial, are rational in terms of price are accessible to people who buy the first apartment, but they also have some elements preserved such as project in which I mean here, green elements. They are popular, but they are greatly appreciated. I've mentioned it while discussing Q3. This is the project after slab was constructed in [ 7 months ] the award of the Power Sustainable Development Chamber because the project, which is popular still complies with the conditions of good life. So the popular segment is not popular -- let me put it like that. It means that popular is such that there is a lower cost of purchase, but the lack of quality of this high. So to help is the total project project of product, which is not here in Warsaw, but [indiscernible]. Yes, at the moment, we cannot say that we have a popular project in Warsaw, which doesn't mean that there is enough capacity potential for that in the capital city.

Okay, this is something about this year, but now maybe something about the next year. And the Tricity because you mentioned you plan to be present there. And this year, we should understand that, that you would build in greenfield structures and would have a project implemented there or you will acquire something?

I think Echo has already said that as for the Tricity market, we've been thinking about it for some time, we've been considering some plots, some land, given the speed we are developing, it's not the scenario which is good for us. I think if we know more about it, we will share this information with you. We are able to execute various scenarios while entering the new market.

Let me put it like that, the sentence, my question this will be the last one from me, the situation of the land market is such that this segment is consolidating, but there is an appetite for new lands which differs among various players.

[Interpreted] So in Q4 year, you bought some land opportunistically, but maybe just the transaction it was [indiscernible]. So the question is, do you see of the market some kind of opportunities second half land or a smaller price point, price struggle or there is no free prelaunch. I don't know if there have ever been prelaunch because the situation is such where the market is more difficult so you can see through the strength of the group and pay by the deadline because financial stability of the partner willing land is important upon transaction. And I think that if someone decides to sell land or someone is due to many factors. The price is important, of course, but not only that and for Echo and Archicom, et cetera, but we are now holding managed talks, which as I said, so we are closing some talks of the exceptionality of our authorities such that we have operational efficiency as regards like developer. We are not afraid of such projects, and we buy a big plot of land. So we may suggest it could be residential and other functions. We are interested in it. And finally, that means it's almost staggered in time, but the purchase is more attractive in terms of price.

Translate this question because you might have something on group point of view, do you see any opportunities right now coming up referring to new plots. And are there any like great catches or do you see any new opportunities will be the best translation?

I think we need to put everything in perspective. We buy land every year for EUR 150 million. So it's in the perspective, we're always looking for new land plots. The biggest thing on my radar today is to look at the way how we could enter the Tricity market, which will then be in a bigger acquisition for Archicom to enter that market. That is the highlights of my radar at the moment, individual plot is something we do on a day-to-day basis, and we will continue buying a lot of lands going forward as well.

[Interpreted] I also have question to [indiscernible]. so analyst asked many questions. So I will ask just sales please extend on the phrase, which was said about residential during residential. We think about the effectiveness of the construction process. You supplemented it by saying kind of collective purchases, but is there something else? Any other optimization, which is planned or maybe being implemented right now? The second question of mine is, do you plan to increase the share of prefabrication in your projects?

[Interpreted] Okay. Operational efficiency is something that could be redescribed in a book. It means, for example, the way of taking decisions, access to information, making decisions on what funds are to be allocated or how we use what people worked out in various places by organizations. Well, the last 5 years, we have integrated it not only within Archicom or Echo residential that was contribution kind to the group and the operational means, for example, speed of reacting to what's going on in the market or doing something in advance of creating market opportunities, something that I've already discussed. I can really mentioned some items here, the work that -- the works that you have already done and what to do with that with the growth of business, we can have more foreseeability. As for prefabrication, yes. We've been thinking about it as a kind of response first to the construction, which is more foreseeable, projects which are more standardized, which are safer, constructed faster. We created the kind of internal instruction from the whole process, not just value -- the profit but how to do it how to build to communicate such projects. We successfully implemented a historical project in [indiscernible] and we have a group of people who can do it at each stage of investment projects, including sales and later on maintenance, that's how we would continue to do it.

[Interpreted] What's more, this is a technology that successfully implement against great budgetary and time constraints investments such as student passing. For example, 29 November, we had a non-movable deadline and can you can also look it Warsaw there's actually construction underway. You can see it because it's still being built, but you can see what is prefabricated. What is is very good quality even the quality of detail so prefabricated certainly and student housing because usually unlike residential projects, these projects must absolutely be completed for a certain deadline, right? So usually, the construction periods are very short, it's less than a year that we can use to build a completion. Another important is the fact that they are repeatable. So there's a lot of efficiency that can be found in this repeatability the layouts are identified A lot of these components, these elements can be fabricated in such a way to maximize the effectiveness So we looking to increase the share. We're not quite yet at prefabricates are inserted even toilets both are just prefabrication inserted and we made, we're not quite there yet. It's not yet possible for us. But definitely, the share of prefabricates will be increasing due to labor costs quite simply.

For prefabrication, could you elaborate what are the pros and cons, also from the point of view of cost effectiveness what does it look like? And the second question a related one you talking potential suppliers, what is the market looking like, are there many potential suppliers, is there competition? Can you have to choose between offers, what's the situation like?

[Interpreted] Let me start with the market. The market is local because prefabrication linked to transportation process. Our locations were linked to factory availabilities and availabilities to offices that prepared design. Prefabrication needs to be started a lot prior to construction and 80% that was not visible actually results in producing LEGO blocks for adults really this is what Maciej said. Not far from here in we have build that being built. Is that being produced in Poland? Yes, they are. Are they're in modern production parts? Yes, there was very modern indeed. I can even say that some of them so modern because they are used featuring for a very mature containing market. So taking advantage of proximity and beyond the standards we have organized. We look at the look and can you see whether could be an idea that we have been cooperating to very beginning our supplies to make sure that we also optimize the cost to make sure that the moment and the margin that we care about. So at profitable from a point of view of cost sales, margin, et cetera, we won't be doing it there's a group of customers that definitely want to have, for example. We wouldn't be doing it otherwise, especially with such repeatable projects such as commercial projects. The questions of mine. I don't want to say where in responding to this question, there's a number of things that that we are speaking more about the predictability and the time of completion rather than just cost.

[Interpreted] Apparently in German where remuneration is higher, this is not very well developed compared to so the question is why not if everything is more expensive in the structure special leave.

[Interpreted] Let me go back to margin received in terms of the pace, the margin and the overall P&L. So we are going to keep a definitely savings in the sense of time management of project and construction structure. They are -- construction costs actually directly online similar other types, but we see advantages elsewhere.

[Interpreted] What is the reaction of players?

[Interpreted] Well, the overall communication effort when I was part of Echo's management board, we had a project in reference point for certain generation, I'm lookin at the mirror. This was sustained predictable and technologically advanced enough to make sure that we have a swap company already painted with a window and QR codes tells us where to insert it. So is a highly specialized team that puts the blocks together, so they can observe what it will look like.

[Interpreted] I will ask you about the first quarter, what it looks like from your point of view, without perhaps figure I see this whether March is different than January and February after the global event. Is it different than January, February.

[Interpreted] Are you asking about residential or just Archicom? The first period of this year definitely shaking off the record high sales of quarter 4, also in the popular sectors, we can see that is optimistic. Now for handovers, we want to approach what was planned actually and the big lesson of Q4 is best to make sure that the result is as close as possible to the budget. We don't want to give the figures out just yet, but you can do the math based on the fact that we have been given the occupancy permit for flow as we are successfully handing over these projects here in Q1.

[Interpreted] Now customer behavior, are there any changes in March? Do people want to buy now because they are predicting growth in prices? Or is there any caution or are there no changes at all?

[Interpreted] Margins for sure is because as mentioned, in January, I think we were taking a break, both us and the customers are very doing intense Q4 December. In February and March, partially there was some in fact, sales strongy March. We can see definitely more interest for mortgage customers of this has been linked so far with lowering interest rates, but still the ball is in the game. So we don't want to at this moment point rush to any conclusions regarding in Q1. It has not yet been closed.

[Interpreted] Okay, land acquisition. In 2026, are you planning higher expenditure than 2025?

[Interpreted] This is not simply because of the acquisition is process the payment has to be soon we have delayed that so not proportionately 0-doesn't really happen proportionately by our plans for 2026, 700 million, 800 million planned acquisition.

Any further questions from the audience. Let me use this opportunity and address the questions, you viewers have asked people would like to get into more details because I know that you already mentioned it during your presentation, what are the plans for asset sales in 2026?

There was a slide exactly what the plans were...

I can -- because we have 2 questions about it, but the other 1 is getting into more details. When are we going to sell Galeria

That was not on the list of the assets for sale this year. To ask -- answer that question, we are still stabilizing We see an upwards trend. We see a big appetite for retail. We see no big transactions happening in 2025 on many centers. With 2026, we see a continuous big interest for investors to invest in assets like all our assets that are stabilized and have hit the returns that we are expecting. Of course, we will then entertain any approaches on to sell off those assets. And is not really there yet, but it's on the way up and we see a positive trend. So we will continue analyzing it over the year.

Okay. And can you give a quick update on the sale of units in [indiscernible] from the Resi4Rent projects.

In Kempa, we are fully sold. So by the end of this month, we have sold off everything that we have on Kampa. And on brewery, we have sold 310 out of 450. And by the end of June, July, we will sold off the remaining assets. So there is a big appetite for this one. And like Maciej said before, this is totally a yield play for us. We get so much more returns or selling them as individual assets where we get totally different pricing, which means we can distribute much more money to our shareholders.

Thank you. I have a lot of questions about the dividend payout, but I think that we covered it already in 2 slides. And there is one question regarding Kabaty and our next plans regarding Lex developer.

On Kabaty, we already have developer.

Yes. But what's the pipeline for the next project?

The pipeline is we have continuous 2 more assets in where we have on Postempo, and we have also on the next phase of MPAC that we can continue developing going forward. But we also have very great projects that we're having in Vrotslav, with the old West 4 that's going to be a fantastic project. We have impose or the Poznan today that's going to be converted in residential. We have Kaplan and Krakow that's going to be converted into residential. And all of them are what we call destination project. This is really a project that's going to transform the cities. And if it's not going to be less developed, it's going to be the new general plan and the CPI. And here we see for us going forward, this is an integrated part of our business. We're going to continue growing that part of the business, and this is the strength of Archicom to the rest of the competitors, but they can do these big projects that very other few developers can.

Thank you. Thank you.

Are there any more questions in the audience.

Because here on my list, I have questions about but already covered this topic. And I think...

If we're going to conclude on PREPA is still a very small part of our business. It works really well when you have standardized units. So student space is a deal because we have in student space, you can only open up in September because that's when the semester is started, you have a short construction period. So it's a deal. In the Resi4Rent and also in office segment, we will use it for components that we can standardize, parts that we cannot standardize is not beneficiary for prefab. Today, I guess, it's 10% of our business and [ 9% ] is still constructed in the traditional way on constructing. We are working together as an Echo group to find the most effective way of building in all our areas. And that's why you see we have a stable margin, no matter how the market rounders is moving because we can always be effective in the way that we construct the project. So prefabricate part of the question. The bigger question is, how can we continue driving efficiency in all our construction process, no matter if it's prefab traditional construction or however we're doing it.

Thank you. So I think I used all the questions from our side. There's a last opportunity to have. No, thank you.

Thank you very much, and goodbye. [Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]