TOWER INVESTMENTS GROUP 2017–2022 DEVELOPMENT STRATEGY

Market presence since 2005

We are providing END-TO-END REAL PROPERTY DEVELOPMENT SERVICES for retail and service chains

Between 2012 and 2016, Group companies implemented 10 PROJECTS for retail chains, 4 SHOPIN retail parks and OVER 15 real property development service PROJECTS

We have created a SELF-SUFFICIENT BUSINESS MODEL, we implement real property development projects, real property development service and turnkey retail parks

Tower Investments S.A. has been listed on the NewConnect market SINCE JULY 2016

Our BIGGEST CLIENTS are the renowned chains: Netto, Biedronka, Intermarche, Unibail-Rodamco, BP and Burger King

We diversify our business by initiating cooperation with new retail and service chains

We are exploring NEW FIELDS OF OPERATIONS – mixed-use residential, office, retail and service projects

WHO WE ARE

R E A L P R O P E R T Y D E V E L O P M E N T

P R O J E C T S

R E T A I L P A R K S R E A L P R O P E R T Y D E V E L O P M E N T

S E R V I C E

End-to-end implementation of real property development projects, with an emphasis on the operation of retail and service chains.

THREE MAIN BUSINESS PILLARS:

B U S I N E S S M O D E L

A B C

We have a unique analytical expertise in terms of selection of the location, which is the key to a successful investment and sets us apart on the market – years of experience in the trade provide us with a competitive advantage: we know the market and its needs inside out and we can predict where retail chains will make investments in the near future.

R E A L P R O P E R T Y D E V E L O P M E N T P R O J E C T S Core business

L O C A T I O N S E L E C T I O N

ADMINISTRATIVE PERMITS ACQUISITION F A C I L I T I E S

C O N S T R U C T I O N REAL ESTATE PURCHASE

A

We provide an end-to-end offer for retail and service chains

We are extending the scope of real property development projects with mixed investment projects – residential, office, commercial and service ones – desirable on the market

K N O W - H O W

C O M P R E H E N S I V E O F F E R

M I X E D U S E

M A R K E T P R E S E N C E S I N C E 2 0 1 2

S H O P I N R E T A I L P A R K S Tailor-made retail and service facilities

B

-  We select a proper location pursuant to the analysis of environment conditions

-  Our Parks are located in the centre or along the main roads in towns or microregions of cities

-  We earmark part of the park space for the food operator

-  We offer parking lots for clients

-  The parks’ usable floor area ranges from 1 to 5 thousand square meters

-  SHOPIN retail parks are a friendly meeting place for local communities

S H O P I N S E R V I C E

Construction of own Shopin retail park – a service for investors which is unique on the market

As part of the Group, we offer an end-to-end service of an own SHOPIN retail park construction: starting from finding or verification of the real property, through acquisition of all administrative permits, facility commercialisation, acquisition of financing to the facility construction.

C I T Y S H O P I N

Business objective: developing a perfect tailor-made commercial offer for microregions

– aesthetic arrangement of commercial space in urban agglomerations

End-to-end service

R E A L P R O P E R T Y D E V E L O P M E N T S E R V I C E I n v e s t m e n t a d v i s o r y s e r v i c e s

C

Capital accumulation

Due to our experience and knowledge of every stage of development project process, we provide services consisting in delivering individual process elements to the client: advisory services and investor representation services.

An increase in the number of simultaneous development projects, cooperation with new chains

2 0 1 7 - 2 0 2 2 D E V E L O P M E N T S T R A T E G Y

a. more

Creating an optimal model for mixed investments: residential, service and commercial ones – maximizing functionality and developer margins

b. innovative

Intensive development of the SHOPIN retail park network , as well as new formats: CITY SHOPIN and SHOPIN MALL

c. shopin

Creating the Real Estate Investment Trust (REIT)

d. reit

In 2015-2017 we extended our business with cooperation with the new counterparties. Currently, we are cooperating with the following chains: Netto, Biedronka, Intermarche, Bricomarche, Majster, BP, Shell, Burger King, MAX, Rossmann, Pepco, KIK, Textilmarket, Cosmedica and others. Our client base and company structure allow us to carry out even more projects in the future.

Objective: 50 real property development projects for retail and service chains by 2022

An increase in the number of simultaneous development projects, cooperation with new chains

2 0 1 7 - 2 0 2 2 D E V E L O P M E N T S T R A T E G Y a. 50 projects for retail chains

We are operating on the market that has been steadily growing for over 20 years now:

-  the number of discount stores continues to grow each year, both in big and small chains

-  consumer choose discount stores – it is the leading type of stores in Poland

-  the share of discount stores in the retail market will continue to grow for at least 7-10 years

-  retail and service chains, and mainly discount chains, have been continuously increasing the number of facilities held over the recent years

O b j e c t i v e : 1 0 m u l t i - f u n c t i o n a l M u l t i t o w e r p r o j e c t s b y 2 0 2 2

Creating an optimal model for mixed investments: residential, service and commercial ones; maximizing functionality and developer margins

2 0 1 7 - 2 0 2 2 D E V E L O P M E N T S T R A T E G Y b. 10 Multitower projects

The market is evolving. Due to the growing number of properties, attractive locations in large cities are harder to acquire. This is why multi-functional buildings, which combine retail, residential and commercial facilities, are more in demand than small retail spaces. Our Multitower concept enables building space optimization. We are one of the few to have the relevant expertise, know-how and experience to offer and implement such projects.

O U R M U L T I T O W E R P R O J E C T S :

-  Multitower Tychy (residential and commercial building)

-  Multitower Tarchomin (shopping mall on the ground floor of the building + apartments)

O b j e c t i v e : 2 0 S H O P I N p r o j e c t s b y 2 0 2 2

I n t e n s i v e d e v e l o p m e n t o f t h e S H O P I N r e t a i l p a r k n e t w o r k , a s w e l l a s n e w f o r m a t s : C I T Y S H O P I N a n d S H O P I N M A L L

2 0 1 7 - 2 0 2 2 D E V E L O P M E N T S T R A T E G Y c. 20 x shopin

Since its NewConnect debut (July 2016), we have seen a dynamic growth of our SHOPIN branded projects. SHOPIN brand consists of SHOPIN retail parks, City SHOPIN and SHOPIN Mall. So far we have opened retail parks in Garwolin, Łódź and Płock; in January 2017 we opened the first City SHOPIN facility. Currently there are more projects underway, including but not limited to Pleszewo, Mrągowo and Tychy. We already have the locations secured for 5 retail parks and, in line with our strategy, there will be 20 retail parks by 2022.

REIT assumptions:

Creating the Real Estate Investment Trust (REIT)

2 0 1 7 - 2 0 2 2 D E V E L O P M E N T S T R A T E G Y d. reit

-  the companies are to invest in all types of income-generating real properties and operate as joint-stock companies registered in Poland and listed on the Warsaw Stock Exchange

-  the companies will be obliged to pay out to shareholders 90% of rent profits in the form of dividends and they will pay 8.5% CIT thereon

As of 1 January 2018, a new Act regulating Operation of Real Estate Investment Trusts (REIT) will come into force. In autumn, following consultations, the bill is to be submitted to the lower to the Polish Sejm (lower chamber of the Polish Parliament).

Tower Investments versus REIT:

-  we are developing projects consistent with REIT assumptions: we find and purchase attractive land where we construct buildings earmarked for rent or sale

-  we want to base our trust on a large number of small facilities with long-term lease contracts with retail chain clients (agreements concluded for 10-15 years), which facilitates development of a stable real property portfolio

-  for years now we have been verifying the most attractive premises that we will acquire in the future by way of REIT

-  we have relevant experience and competence in facility management and tenant services

M A R K E T

The industry in which we have been operating for many years now is growing.

The analysts forecast at least 5-7 years of favourable economic conditions for retail chains in Poland

Competing operators are completely dispersed on the market

Discount stores and hypermarket and supermarket chains, which are our field of expertise, have the dominant market position When compared to other countries, the Polish market of retail facilities is still not saturated

One of the sources of retail facilities growth is a limited number of attractive locations at good price making the chains compete for them; as a result new facilities are launched faster – we are experts in proper location selection and we have earned trust of numerous largest retail chains in Poland

According to specialists, the position of discount stores will strengthen further in the markets segment and convenience chains will grow at the expense of traditional stores

Share of modern formats on the food market

P R O J E C T S

Projects’ value before the issue

Total projects’ value as at April 2017

PLN 85 million (2016)

approx.

PLN 250 million over

N E T P R O F I T

2 0 1 3 - 2 0 1 5

PLN 5.8 million 2 0 1 6

PLN 7.3 million 2 0 1 7

PLN 14 million (official forecast audited)

2 0 1 8

PLN 19.4 million (official forecast audited)

W a r s a w S t o c k E x c h a n g e

In Q4 2017, we are planning to transfer the shares from NewConnect to the regulated

market of the Warsaw Stock Exchange.

We are planning the issue of up to 300,000 shares. On 25 May 2017, the Extraordinary

General Meeting of the Company consented to the issue by way of its resolution.

C O N T A C T

TOWER INVESTMENTS S.A. ul. Rumiana 49, 02-956 Warsaw tel.: (+48 22) 299-73-34 e-mail: info@towerinvestments.pl www.towerinvestments.pl