LC CORP S.A. SHORT INTERIM FINANCIAL STATEMENTS FOR A PERIOD OF 6 MONTHS ENDED ON 30 JUNE 2016 INCLUDING THE AUDITOR'S REVIEW REPORT

LC CORP S.A. SHORT INTERIM FINANCIAL STATEMENTS FOR A PERIOD OF 6 MONTHS ENDED ON 30 JUNE 2016 INCLUDING THE AUDITOR'S REVIEW REPORT

Short interim statement of financial position 3 Short interim statement of comprehensive income. 4 Short interim cash flow statement. 5 Short interim statement of changes in equity 6 Accounting principles (policy) and Additional explanatory notes 8 1. General information... 9 2. Approval of the short interim consolidated financial statements... 9 3. Investments of the Company... 9 4. Grounds for preparation of the short interim financial statements... 11 5. Accounting principles adopted for preparation of the short interim financial statements... 11 6. New standards and interpretations as published and but not adopted yet... 11 7. Significant values based on professional assessment and estimates... 12 Uncertainty of estimates... 12 8. Seasonal or cyclical character of the activity... 14 9. Information concerning business segments... 14 10. Income tax... 15 10.1. Tax charge... 15 10.2. Determining the effective tax rate... 15 10.3. Deferred income tax... 16 11. Property, plant and equipment... 16 12. Non-current investments... 17 13. Non-current loans and receivables... 18 In the period of 6 months ended 30 June 2016, the Company advanced loans to its subsidiaries, designed for financing their projects.... 18 14. Current financial assets... 18 Under the current financial assets the loans and interest on loans with the estimated maturity up to 12 months is disclosed.... 18 15. Inventories... 19 16. Trade and other receivables... 19 17. Cash and cash equivalents... 19 18. Capitaly... 20 18.1. Initial capital... 20 18.2. Reserve funds... 21 18.3. Other reserve funds... 21 18.4. Other capitals... 22 19. Financial liabilities... 22 19.1. Interest-bearing bank loans and bonds... 22 19.2. Issuance, redemption of capital securities... 23 19.3. Incurring, repayment of bank loans and borrowings... 24 19.4. Liabilities due to the acquisition of a subsidiary... 24 20. Provisions... 24 21. Collaterals... 24 22. Changes in contingent liabilities and contingent assets... 26 23. Litigation... 26 24. Transactions with associates... 27 24.1. The payment of dividend by LC Corp S.A.... 31 24.2. The payment of dividends by subsidiaries... 31 25. Capital management... 31 26. Events following the end of the reporting period... 32 Accounting principles (policies) and Additional explanatory notes to the financial statements on pages from 8 to 31 form their integral part 2

. President of the Management Board Dariusz Niedośpiał Senior Vice President of the Management Board Jakub Malski Member of the Management Board Mirosław Kujawski MEMBER OF THE MANAGEMENT BOARD TOMASZ WRÓBEL. Member of the Management Board Małgorzata Danek acting Chief Financial Officer Lidia Kotowska.. acting Chief Accountant Anna Gremblewska-Nowak SHORT INTERIM STATEMENT OF FINANCIAL POSITION as at 30 June 2016 Note 30 June 2016 31 December 2015 Assets A. Non-current assets 1,187,220 1,229,213 1. Intangible assets 235 254 2. Property, plant and equipment 11 811 906 2.1. Tangible assets 786 903 2.2. Tangible assets under construction 24 3 3. Non-current loans and receivables 13 340,646 386,683 4. Non-current investments 12 833,173 830,193 5. Long-term prepayments 0 0 6. Deferred tax assets 10.3 12,355 11,177 B. Current assets 206,570 147,762 1. Inventories 15 143,299 102,011 2. Trade and other receivables 16 33,812 6,180 3. Income tax receivable 0 0 4. Current financial assets 14 20,613 10,238 5. Cash and cash equivalents 17 7,380 29,017 6. Short-term prepayments 1,466 316 C. Fixed assets classified as assets held for sale 0 0 Total assets 1,393,790 1,376,975 Liabilities A. Equity 823,451 862,198 1. Initial capital 18.1 447,558 447,558 2. Balance of called-up share capital not paid 0 0 3. Reserve funds 18.2 331,012 294,493 4. Other reserve funds 18.3 0 100,000 5. Other capitals 18.4 3,068 3,068 6. Retained profit/(loss carried forward) 41,813 17,079 B. Non-current payables 460,227 390,427 1. Non-current financial liabilities 19.1 349,218 281,363 2. Non-current liabilities due to the acquisition of a subsidiary 19.4 110,990 109,045 3. Provisions 20 19 19 4. Deferred income tax reserve 10.3 0 0 C. Current payables 110,112 124,350 1. Current financial liabilities 19.1 63,309 73,734 2. Current liabilities due to the acquisition of a subsidiary 19.4 39,692 38,996 3. Trade and other payables 1,877 4,532 4. Income tax payable 506 47 5. Provisions 20 370 11 Accounting principles (policies) and Additional explanatory notes to the financial statements on pages from 8 to 31 form their integral part 3

6. Accrued costs and deferred income 4,358 7,030 Total liabilities 1,393,790 1,376,975. President of the Management Board Dariusz Niedośpiał Senior Vice President of the Management Board Jakub Malski Member of the Management Board Mirosław Kujawski MEMBER OF THE MANAGEMENT BOARD TOMASZ WRÓBEL. Member of the Management Board Małgorzata Danek acting Chief Financial Officer Lidia Kotowska. acting Chief Accountant Anna Gremblewska-Nowak SHORT INTERIM STATEMENT OF COMPREHENSIVE INCOME for a period of 6 months ended on 30 June 2016 Note Period of 6 months ended 30 June 2016 Period of 6 months ended 30 June 2015 Revenue Revenue from sale of services, products and goods 8,455 20,194 Revenue from interest and discounts 9,740 10,695 Revenue from dividend 55,197 8,133 Other financial income 3 14,931 Other operating income 60 264 Total operating income 73,455 54,217 Expenses Operating expenses, value of goods sold ( 17,556) ( 24,336) Costs of interest and discounts ( 8,912) ( 8,431) Other financial expenses ( 5,436) ( 3,718) Other operating expenses ( 443) ( 21) Total operating expenses ( 32,347) ( 36,506) Profit (loss) before tax 41,108 17,711 Income tax 10.1 705 ( 628) Net profit/(loss) on continued operations 41,813 17,083 Discontinued operations 0 0 Net profit/(loss) 41,813 17,083 Other comprehensive income Other components of comprehensive income 0 0 Income tax referring to other items of comprehensive income 0 0 Other comprehensive income (net) 0 0 Total income 41,813 17,083 Accounting principles (policies) and Additional explanatory notes to the financial statements on pages from 8 to 31 form their integral part 4

Earnings/(loss) per share - basic EPS from the profit/(loss) for the period in PLN 0.10 0.04 - diluted EPS from the profit/(loss) for the period in PLN 0.10 0.04. President of the Management Board Dariusz Niedośpiał Senior Vice President of the Management Board Jakub Malski Member of the Management Board Mirosław Kujawski MEMBER OF THE MANAGEMENT BOARD TOMASZ WRÓBEL. Member of the Management Board Małgorzata Danek acting Chief Financial Officer Lidia Kotowska acting Chief Accountant Anna Gremblewska-Nowak Accounting principles (policies) and Additional explanatory notes to the financial statements on pages from 8 to 31 form their integral part 5

SHORT INTERIM CASH FLOW STATEMENT for a period of 6 months ended on 30 June 2016 Note Period of 6 months ended 30 June 2016 Period of 6 months ended 30 June 2015 A. Cash flow from operating activities I. Net profit/(loss) on continued operations 41,108 17,711 II. Total adjustments ( 30,612) ( 5,499) 1. Change in tangible assets and intangible assets 113 104 2. Movements in reserves 359 0 3. Movements in inventories ( 41,289) 14,390 4. Movements in receivables ( 27,632) ( 5,960) 5. Movements in current liabilities, except loans and borrowings ( 2,655) 840 6. Movements in prepayments and accruals ( 3,820) ( 2,531) 7. Change of financial liabilities 11,644 12,019 8. Change in financial assets resulting from loans and notes 35,662 ( 6,930) 9. Change in financial assets resulting from shares ( 2,980) ( 17,431) 10. Income tax ( 14) 0 11. Other adjustments 0 0 III. Net cash flow from operating activities (l±ll) 10,496 12,212 B. Cash flows from financing activities l. Receipts 85,000 64,540 1. Net receipts from the issue of shares and capital contributions 0 0 2. Issuance of debt securities 85,000 64,540 3. Loans 0 0 II. Expenditure ( 117,133) ( 71,435) 1. Acquisition of own (treasury) shares 0 0 2. Dividends and payments to shareholders 24.1 ( 80,560) 0 3. Redemption of debt securities 0 ( 65,000) 4. Repayment of loans ( 30,000) 0 5. Interest ( 6,573) ( 6,435) 6. Other financial expenses 0 0 III. Net cash flow from financing activities (I-II) ( 32,133) ( 6,895) C. Total net cash flow (A.III±B.III) ( 21,637) 5,317 D. Balance-sheet change in cash, including: ( 21,637) 5,317 - movements in cash due to exchange adjustments 0 0 E. Cash at beginning of period 29,017 5,797 F. Cash at end of period (F±D) 17 7,380 11,114 - restricted cash 0 20. President of the Management Board Dariusz Niedośpiał Senior Vice President of the Management Board Jakub Malski Member of the Management Board Mirosław Kujawski MEMBER OF THE MANAGEMENT BOARD TOMASZ WRÓBEL. Member of the Management Board Małgorzata Danek acting Chief Financial Officer Lidia Kotowska acting Chief Accountant Anna Gremblewska-Nowak Accounting principles (policies) and Additional explanatory notes to the financial statements on pages from 8 to 31 form their integral part 6

SHORT INTERIM STATEMENT OF CHANGES IN EQUITY for a period of 6 months ended on 30 June 2016 LC Corp S.A. Note Initial capital Balance of calledup share capital not paid Reserve funds Other reserve funds Other capitals Retained profit/(loss carried forward) As at 1 January 2016 447,558 0 294,493 100,000 3,068 17,079 862,198 Profit after tax for a period of 6 months ended on 30 June 2016 0 0 0 0 0 41,813 41,813 Other comprehensive income for a period of 6 months ended on 30 June 2016 0 0 0 0 0 0 0 Comprehensive income for a period of 6 months ended on 30 June 2016 0 0 0 0 0 41,813 41,813 Transfer of reserve capital to supplementary capital 18.2 0 0 100,000 (100,000) 0 0 0 Payment of dividend 0 0 (63,481) 0 0 (17,079) (80,560) As at 30 June 2016 447,558 0 331,012 0 3,068 41,813 823,451 Total Note Initial capital Balance of calledup share capital not paid Reserve funds Other reserve funds Other capitals Retained profit/(loss carried forward) Total As at 01 January 2015 447,558 0 357,285 30,000 3,068 7,208 845,119 Profit after tax for the year 2015 0 0 0 0 0 17,079 17,079 Other comprehensive income for the year 2015 0 0 0 0 0 0 0 Comprehensive income for the year 2015 0 0 0 0 0 17,079 17,079 Transfer of profit for 2014 to reserve funds 18.2 0 0 7,208 0 0 ( 7,208) 0 Transfer of profit for previous years from supplementary capital to reserve capital 0 0 ( 70,000) 70,000 0 0 0 As at 31 December 2015 447,558 0 294,493 100,000 3,068 17,079 862,198 Accounting principles (policies) and Additional explanatory notes to the financial statements on pages from 8 to 31 form their integral part 7

Initial capital Balance of calledup share capital not paid Reserve funds Other reserve funds Other capitals Retained profit/(loss carried forward) As at 01 January 2015 447,558 0 357,285 30,000 3,068 7,208 845,119 Profit after tax for a period of 6 months ended on 30 June 2015 0 0 0 0 0 17,083 17,083 Comprehensive income for a period of 6 months ended on 30 June 2015 0 0 0 0 0 0 0 Comprehensive income for a period of 6 months ended on 30 June 2015 0 0 0 0 0 17,083 17,083 Transfer of profit for 2014 to reserve funds 0 0 7,208 0 0 ( 7,208) 0 As at 30 June 2015 447,558 0 364,493 30,000 3,068 17,083 862,202 Total. President of the Management Board Dariusz Niedośpiał Senior Vice President of the Management Board Jakub Malski Member of the Management Board Mirosław Kujawski MEMBER OF THE MANAGEMENT BOARD TOMASZ WRÓBEL. Member of the Management Board Małgorzata Danek acting Chief Financial Officer Lidia Kotowska acting Chief Accountant Anna Gremblewska-Nowak Accounting principles (policies) and Additional explanatory notes to the financial statements on pages from 8 to 31 form their integral part 8

ACCOUNTING PRINCIPLES (POLICIES) AND ADDITIONAL EXPLANATORY NOTES 1. General information LC Corp S.A. (the "Issuer", the "Company") was established by way of a Notarial Deed of 3 March 2006. The registered office of the Company is located in Wrocław at ul. Powstańców Śląskich 2-4. The Company is entered into the register of businesses of the National Court Register (KRS) maintained by the District Court for Wrocław-Fabryczna in Wrocław, 4th Commercial Division of the National Court Register under KRS number 0000253077. As at 30 June 2016 the shares of LC Corp S.A. are publicly traded. The Company has been assigned statistical identification number REGON 020246398. The Company has been established for an indefinite time. The Company's primary activity includes: PKD 7415Z Activities of holding companies LC Corp B.V., controlled by Mr Leszek Czarnecki, is the parent undertaking of LC Corp S.A. 2. Approval of the short interim consolidated financial statements These short interim financial statements of the Company for a period of 6 months ended on 30 June 2016 were approved by the Management Board on 29 August 2016. The Company has also prepared the short interim consolidated financial statements for the period of 6 months ended 30 June 2016, which were approved for publication by the Management Board on 28 August 2016. 3. Investments of the Company The Company has investments in the following subsidiaries: Company name Registered office 30 June 2016 Share of equity 31 December 2015 Share of equity Arkady Wrocławskie S.A. Wrocław 100% 100% Sky Tower S.A. Wrocław 100% 100% Warszawa Przyokopowa Sp. z o.o. Wrocław 100% 100% 100% (indirectly and 100% (indirectly and Kraków Zielony Złocień Sp. z o.o. Wrocław directly) directly) LC Corp Invest I Sp. z o.o. Wrocław 100% (indirectly and directly) 100% (indirectly and directly) LC Corp Invest II Sp. z o.o. Wrocław 100% 100% LC Corp Invest III Sp. z o.o. Wrocław 100% 100% LC Corp Invest VII Sp. z o.o. Wrocław 100% 100% LC Corp Invest VIII Sp. z o.o. Wrocław 100% 100% 9

LC Corp Invest IX Sp. z o.o. Wrocław 100% 100% LC Corp Invest X Sp. z o.o. Wrocław 100% 100% LC Corp Invest XI Sp. z o.o Wrocław 100% 100% LC Corp Invest XII Sp. z o.o Wrocław 100% 100% LC Corp Invest XV Sp. z o.o. Wrocław 100% 100% LC Corp Invest XVI Sp. z o.o. Wrocław 100% 100% LC Corp Invest XVII Sp. z o.o. Wrocław 100% 100% LC Corp Invest XVIII Sp. z o.o. Wrocław 100% 100% LC Corp Invest XV Sp. z o.o. Projekt 1 Sp. k. Wrocław 100% (indirectly) 100% (indirectly) LC Corp Invest XV Sp. z o.o. Projekt 2 Sp. k. Wrocław 100% (indirectly) 100% (indirectly) LC Corp Invest XV Sp. z o.o. Projekt 3 Sp. k. Wrocław 100% (indirectly) 100% (indirectly) LC Corp Invest XV Sp. z o.o. Projekt 4 Sp. k. Wrocław 100% (indirectly) 100% (indirectly) LC Corp Invest XV Sp. z o.o. Projekt 5 Sp. k. Wrocław 100% (indirectly) 100% (indirectly) LC Corp Invest XV Sp. z o.o. Projekt 6 Sp. k. Wrocław 100% (indirectly) 100% (indirectly) LC Corp Invest XV Sp. z o.o. Projekt 7 Sp. k. Wrocław 100% (indirectly) 100% (indirectly) LC Corp Invest XV Sp. z o.o. Projekt 8 Sp. k. Wrocław 100% (indirectly) 100% (indirectly) LC Corp Invest XV Sp. z o.o. Projekt 9 Sp. k. Wrocław 100% (indirectly) 100% (indirectly) LC Corp Invest XV Sp. z o.o. Projekt 10 Sp. k. Wrocław 100% (indirectly) 100% (indirectly) LC Corp Invest XV Sp. z o.o. Projekt 11 Sp. k. Wrocław 100% (indirectly) 100% (indirectly) LC Corp Invest XV Sp. z o.o. Projekt 12 Sp. k. Wrocław 100% (indirectly) 100% (indirectly) LC Corp Invest XV Sp. z o.o. Projekt 14 Sp. k. Wrocław 100% (indirectly and directly) 100% (indirectly and directly) LC Corp Invest XVII Sp. z o.o. Projekt 20 Sp. k. (a) Wrocław 100% (indirectly and directly) 100% (indirectly and directly) LC Corp Invest XVII Sp. z o.o. Projekt 21 Sp. k. LC Corp Invest XVII Sp. z o.o. Projekt 22 Sp. k. (b) Wrocław Wrocław 100% (indirectly) 100% (indirectly) 100% (indirectly and directly) - LC Corp Invest XV Sp. z o.o. Finance S.K.A. LC Corp Invest XV Sp. z o.o. Investments S.K.A. Wrocław Wrocław 100% (indirectly) 100% (indirectly) 100% (indirectly and directly) LC Corp Invest XVIII Sp. z o.o. Real Estate S.K.A Wrocław 100% (indirectly and directly) 100% (indirectly and directly) 100% (indirectly and directly) (a) On 7 January 2016, LC Corp S.A. made a payment of PLN 3,000,000.00 to LC Corp Invest XVII Sp. z o.o. Projekt 20 Sp. k. for the purposes of increasing the contribution dated 9 December 2015. On 15 February 2016, LC Corp S.A. increased the value of its contribution by PLN 3,000,000.00, i.e. to PLN 83,609,900.00. On 14 March 2016, LC Corp S.A. increased the value of its contribution by PLN 2,300,000.00, i.e. to PLN 85,909,900.00. (b) On 5 January 2016, a new company - LC Corp Invest XVII Spółka z ograniczoną odpowiedzialnością Projekt 22 Spółka komandytowa - was incorporated. The limited partner of the Company is LC Corp S.A., whereas LC Corp Invest XVII Spółka z ograniczoną odpowiedzialnością. is a general partner representing and managing the affairs of the company. As at 30 June 2016 and as at 31 December 2015 the Company's share in the total number of votes in subsidiaries is equal to its share in the capital of such subsidiaries. 10

4. Grounds for preparation of the short interim financial statements These short interim financial statements of LC Corp S.A. have been prepared in compliance with the International Financial Reporting Standards as adopted by the EU ("IFRS"), and in particular with International Accounting Standard No. 34. IFRS include standards and interpretations approved by the International Accounting Standards Committee (IASC) and the International Financial Reporting Interpretations Committee (IFRIC). The short interim financial statements covers a period of 6 months ended on 30 June 2016 and contains comparative data for a period of 6 months ended on 30 June 2015 and as at 31 December 2015. The short interim financial statements do not include all information and disclosures required in the annual financial statements and they should be read in connection with the consolidated financial statements of the Company for the year ended on 31 December 2015. The short interim financial statements are presented in thousand zlotys ( PLN ), and all values included in the tables and descriptions, if not indicated otherwise, are given in thousand zlotys ( PLN ). The short interim financial statements were prepared on the assumption that the company will continue as a going-concern in the foreseeable future. As at the date of approval of these financial statements no circumstances indicating any risk to going concern were found for the Company. 5. Accounting principles adopted for preparation of the short interim financial statements The accounting principles (policies) applied for the purpose of preparing the short interim financial statements are consistent with those applied during the preparation of the annual financial statements of the Company for the year ended on 31 December 2015, except when applying the following new or amended standards and interpretations applicable to annual periods starting on or after 1 January 2016. Amendments to IFRS (2012-2014) changes under the procedure of introduction of annual amendments to IFRS applicable to reporting periods beginning on or after 1 January 2016; Amendments to IFRS 11 "Joint arrangements" accounting for the acquisition of an interest in a joint operation - applicable to reporting periods beginning on or after 1 January 2016; Amendments to IAS 1 "Disclosure initiative" applicable to reporting periods beginning on or after 1 January 2016; Amendments to IAS 16 "Property, plant and equipment" applicable to reporting periods beginning on or after 1 January 2016; Amendments to IAS 16 "Property, plant and equipment" and IAS 38 "Intangible assets" - clarification of acceptable methods of depreciation and amortisation - applicable to reporting periods beginning on or after 1 January 2016; Amendments to IAS 27 "Equity method in separate financial statements" applicable to reporting periods beginning on or after 1 January 2016. The application of these amendments had no impact on the Company's financial position or profit/loss. 6. New standards and interpretations as published and but not adopted yet The following standards and interpretations have been issued by the International Accounting Standards Committee or the International Financial Reporting Interpretations Committee, but have not yet come into effect: IFRS 9 Financial instruments (published on 24 July 2014) applicable to annual periods beginning on or after 1 January 2018 until the date of approval of these financial statements not adopted by the EU, IFRS 14 Regulatory deferral accounts (published on 30 January 2014) pursuant to the decision of the European Commission, the process for approving the standard in its preliminary version will not be 11

initiated before the introduction of the final standard - until the date of the approval of these financial statements not yet adopted by the EU applicable to annual periods beginning on or after 1 January 2016, IFRS 15 Revenue from contracts with customers (published on 28 May 2014), including the changes to IFRS 15 Effective date of IFRS 15 (published on 11 September 2015) applicable to annual periods beginning on or after 1 January 2018 until the date of approval of these financial statements not adopted by the EU, Amendments to IFRS 10 and IAS 28 Sale or contribution of assets between an investor and its associate or joint venture (published on 11 September 2014) - the works aiming at the approval of these changes have been delayed indefinitely by the EU - the effective date has been postponed by IASC for an indefinite period, Amendments to IFRS 10, IFRS 12 and IAS 28 Investment entities: Applying the consolidation exception (published on 18 December 2014 ) - applicable to annual periods beginning on or after 1 January 2016 until the date of the approval of these financial statements not yet adopted by the EU, MSSF 16 Leases (published on 13 January 2016 ) - applicable to annual periods beginning on or after 1 January 2019 until the date of the approval of these financial statements not yet adopted by the EU, IAS 12 Recognition of deferred tax assets for unrealised losses (published on 19 January 2016 ) - applicable to annual periods beginning on or after 1 January 2017 until the date of the approval of these financial statements not yet adopted by the EU, MSSF 7 Disclosure initiative (published on 29 January 2016 ) - applicable to annual periods beginning on or after 1 January 2017 until the date of the approval of these financial statements not yet adopted by the EU, Explanations to IFRS 15 Revenue from contracts with customers (published on 12 April 2016) applicable to annual periods beginning on or after 1 January 2018 until the date of approval of these financial statements not adopted by the EU, Amendments to IFRS 2 Classification and measurement of share-based payment transactions (published on 20 June 2016 ) - applicable to annual periods beginning on or after 1 January 2018 until the date of the approval of these financial statements not yet adopted by the EU, The Management Board do not believe that the introduction of the above standards and interpretations has a significant impact on the accounting principles (policies) applied by the Company. 7. Significant values based on professional assessment and estimates The Management Board of the Company used their best knowledge of the applied standards and interpretations, and also the methods and principles of valuation of particular items of the enclosed financial statements. In order to prepare financial statements compliant with the IFRS the Management Board of the Company was required to make certain estimates and assumptions reflected in these statements. Actual results can differ from these estimates. Uncertainty of estimates The basic assumptions concerning the future have been discussed below as well as other key reasons for doubts occurring at the end of the reporting period and entailing a significant risk of considerable adjustment of the net book value of assets and liabilities in the following reporting period. 12

Deferred tax asset LC Corp S.A. The Company recognises a deferred tax asset based on the assumption that a tax profit enabling its utilisation should be obtained in the future. Deterioration in tax results in the future could make this assumption unreasonable. The deferred income tax is presented in Note 10.3. Valuation allowances for shares in subsidiaries As at the end of each reporting period the Management Board assesses whether there is any objective evidence that the shares in subsidiary undertakings are impaired. If any such evidence exists, the Management Board makes an impairment allowance regarding these assets to the recoverable value. The recoverable value is established as the higher of two values: fair value less costs to sell, or its value in use. The value in use was estimated by the DCF method. The DCF method is based on discounted cash flows generated by subsidiary undertakings within approved investment schedules and revenues from sales of premises, allowing for the sale price of 1 square metre of usable floor space, in accordance with the current market situation and current prices. The discount rate allows for the weighted average cost of capital (WACC). The recoverable value of shares and the value of the valuation allowances for shares were estimated as at 30 June 2016 and may be subject to change depending on the fluctuation of the market prices of land, sale prices of flats, construction costs, project completion schedules and discount rate calculations in the future. The actual results may vary from these estimates which were calculated on the grounds of data available as at the reporting date. It is also related to the uncertainty regarding the proper estimation of the market conditions in the following years. Consequently, valuation allowances may change in next financial periods. Valuation allowances for the value of shares are presented in Note 12. Valuation allowances for loans advanced to subsidiaries As at the end of each reporting period the Management Board assesses whether there is any objective evidence that the loans granted to subsidiaries are impaired. If there is objective evidence that a loss was incurred on account of the impairment of loans, the Management Board makes an impairment allowance of these assets. The amount of impairment allowance regarding a loss incurred on account of the impairment is equal to the difference between the book value of an asset and the current value of estimated future cash flows generated by subsidiary undertakings within approved investment schedules and revenues from sales of premises, allowing for the sale price of 1 square metre of usable floor space, in accordance with the current market situation and current prices. The discount rate allows for the weighted average cost of capital (WACC). The value of the valuation allowances for loans were estimated as at 30 June 2016 and may be subject to change depending on the fluctuation of the market prices of land, sale prices of flats, construction costs, project completion schedules and discount rate calculations in the future. Valuation allowances for loans are presented in Note 13, 14. The table below presents the significant estimates as at 30 June 2016 and as at 31 December 2015. 30 June 2016 31 December 2015 Deferred tax asset 12,355 11,177 Deferred tax reserve 0 0 Valuation allowances for shares and loans (77,244) (74,914) 13

8. Seasonal or cyclical character of the activity The Company s activity is not seasonal by nature, therefore the presented Company s operating results are not subject to significant fluctuations during a year. 9. Information concerning business segments The Company's sole activity is that of financial holding companies consisting in providing holding services for subsidiary undertakings. The Company's operations are limited to the territory of Poland. 14

10. Income tax 10.1. Tax charge The main components of the tax charge for a period of six months ended on 30 June 2016 and 30 June 2015 are as follows: Statement of comprehensive income Current income tax Period ended 30 June 2016 Period ended 30 June 2015 Current income tax charge 0 0 Adjustments of current income tax in previous years 472 0 Deferred tax Related to emergence and reversal of temporary adjustments ( 1,177) 628 Income tax (charge) disclosed in the statement of comprehensive income (705) 628 10.2. Determining the effective tax rate Determining the income tax from gross financial result before tax at the statutory tax rate, with income tax calculated at the effective tax rate of the Company for the period of six months ended 30 June 2016 and 30 June 2015 are as follows: Period ended 30 June 2016 Period ended 30 June 2015 Profit/(loss) before tax from continued operations 41,108 17,711 Profit/(loss) before tax from discontinued operations 0 0 Profit/(loss) before tax 41,108 17,711 Tax at the statutory 19% tax rate applicable in Poland (2015: 19%) 7,811 3,365 Costs other than cost of sales 162 28 Share in limited partnerships 7 472 Valuation allowances for shares ( 107) ( 2,837) Non-taxable revenues ( 10,487) ( 1,545) Settlement of discount for the purchase price of shares and interest for deferral of payment 899 1,152 Tax losses from previous years not recognised/adjusted 1012 0 Other (2) ( 7) Tax at effective tax rate (705) 628 Income tax (charge) disclosed in the statement of comprehensive income 705 ( 628) Income tax attributed to discontinued operations 0 0 705 ( 628) 15

10.3. Deferred income tax Deferred income tax follows from the following items: Statement of financial position Statement of comprehensive income Deferred tax reserve 30 June 2016 31 December 2015 30 June 2016 31 December 2015 Interest calculated on loans and deposits ( 2,445) ( 2,625) 180 2,432 Difference in value of non-current assets (tax and balance-sheet depreciation) (49) ( 62) 13 12 Shares in limited partnerships ( 601) ( 590) (11) ( 590) Other ( 157) ( 109) ( 48) ( 37) Gross deferred tax reserve ( 3,252) ( 3,386) Deferred tax assets Shares in limited partnerships 0 0 0 ( 570) Temporary provisions and settlements 759 1,113 ( 354) 539 Interest calculated on loans, discount on bonds 4,181 3,741 440 731 Valuation allowances for shares in subsidiaries 9,508 8,958 550 8,958 Losses deductible from future taxable income 1,159 751 407 ( 1,349) Gross deferred tax assets 15,607 14,563 Charge due to deferred income tax 1,177 10,126 Net deferred tax asset 12,355 11,177 Net deferred tax reserve 0 0 11. Property, plant and equipment In a period of 6 months ended on 30 June 2016, the Company purchased property, plant and equipment with the value of PLN 101 thousand (in a period of 6 months ended on 30 June 2015: PLN 128 thousand). In the period of 6 months ended 30 June 2016, the Company sold property, plant and equipment items and generated revenue of PLN 22 thousand (in the period of 6 months ended 30 June 2015, the Company sold property, plant and equipment items and generated revenue of PLN 40 thousand). As at 30 June 2016 there were no significant liabilities on account of the purchase of property, plant or equipment. As at 30 June 2016 and as at 31 December 2015, none of the fixed assets was used as collateral, was pledged or mortgaged. 16

12. Non-current investments Shares and interests As at 30 June 2016 and 31 December 2015, the Company held the following shares in companies: Company name Register ed office Balancesheet value in PLN '000 30 June 2016 31 December 2015 % in equity Balancesheet value in PLN '000 % in equity Arkady Wrocławskie S.A. Wrocław 128,652 100% 128,652 100% Sky Tower S.A. Wrocław 231,198 100% 231,198 100% Warszawa Przyokopowa Sp. z o.o. Wrocław 46,366 100% (indirectly and directly) 46,366 100% (indirectly and directly) Kraków Zielony Złocień Sp. z o.o. Wrocław 29,963 100% 29,963 100% 100% (indirectly 100% (indirectly LC Corp Invest I Sp. z o.o. Wrocław 1 and directly) 1 and directly) LC Corp Invest II Sp. z o.o. Wrocław 91,788 100% 91,788 100% LC Corp Invest III Sp. z o.o. Wrocław 10,308 100% 10,308 100% LC Corp Invest VII Sp. z o.o. Wrocław 12,234 100% 12,234 100% LC Corp Invest VIII Sp. z o.o. Wrocław 13,500 100% 13,500 100% LC Corp Invest IX Sp. z o.o. Wrocław 17,096 100% 17,096 100% LC Corp Invest X Sp. z o.o. Wrocław 19,500 100% 19,500 100% LC Corp Invest XI Sp. z o.o Wrocław 85,935 100% 85,935 100% LC Corp Invest XII Sp. z o.o Wrocław 40,582 100% 40,582 100% LC Corp Invest XV Sp. z o.o. Wrocław 305 100% 305 100% LC Corp Invest XV Sp. z o.o. Projekt 14 Sp.k. LC Corp Invest XV Sp. z o.o. Investments S.K.A. Wrocław Wrocław Wrocław 5,049 91,855 100% (indirectly and directly) 100% (indirectly and directly) 5,049 91,855 100% (indirectly and directly) 100% (indirectly and directly) LC Corp Invest XVI Sp. z o.o. Wrocław 5 100% 5 100% LC Corp Invest XVII Sp. z o.o. Wrocław 5 100% 5 100% LC Corp Invest XVII Sp. z o.o. Projekt 20 Sp.k (a) Wrocław 85,915 LC Corp Invest XVII Sp. z o.o. Projekt 22 Sp.k.. Wrocław 10 100% (indirectly and directly) 80,615 100% (indirectly and directly) (100% (indirectly and directly) - - LC Corp Invest XVIII Sp. z o.o. Wrocław 5 100% 5 100% LC Corp Invest XVIII Sp. z o.o. Real Estate S.K.A Wrocław 145 100% (indirectly and directly) Valuation allowance for shares (77,244) (74,914) Total 833,173 830,193 145 100% (indirectly and directly) (a) On 7 January 2016, LC Corp S.A. made a payment of PLN 3,000,000.00 for the increased contribution dated 9 December 2015. On 15 February 2016, LC Corp S.A. increased the value of its contribution by PLN 3,000,000.00, i.e. to PLN 83,609,900.00. On 14 March 2016, LC Corp S.A. increased the value of its contribution by PLN 2,300,000.00, i.e. to PLN 85,909,900.00. 17

As at 30 June 2016 the Management Board revised write-downs of shares to the recoverable amount. The total amount of write-downs of shares as at 30 June 2016 amounted to: PLN 77,244 thousand. The changes of write-downs of shares are presented in the table below. Period ended 30 June 2016 Year ended 31 December 2015 Beginning of the period (74,914) (91,876) Increase (2,330) 0 Utilised 0 0 Decrease 0 16,962 End of the period (77,244) (74,914) The recoverable value is established as the higher of two values: fair value less costs to sell, or its value in use. The value in use was estimated employing the DCF method. The DCF method is based on discounted cash flows generated by subsidiary undertakings within approved investment schedules and revenues from sales of premises, allowing for the sale price of 1 square metre of usable floor space, in accordance with the current market situation and current prices. The discounting rate is based on the weighted average cost of third party and equity capital (WACC). The recoverable value of shares and the value of the valuation allowances for shares were estimated as at 30 June 2016 and may be subject to change depending on the fluctuation of the sale prices of flats, project completion schedules and discount rate calculations. Actual results can differ from estimates calculated according to data available as at the date of their preparation. It is also related to the uncertainty regarding the proper estimation of the market conditions in the following years. As a consequence the values of impairment losses can change in subsequent financial periods. 13. Non-current loans and receivables 30 June 2016 31 December 2015 Non-current loans (including accrued interest) 340,646 386,683 Valuation allowance for loans 0 0 Other non-current receivables 0 0 Total 340,646 386,683 In the period of 6 months ended 30 June 2016, the Company advanced loans to its subsidiaries, designed for financing their projects. 14. Current financial assets 30 June 2016 31 December 2015 Current loans (including accrued interest) 20,613 10,238 Investment notes 0 0 Valuation allowance for loans 0 0 Total 20,613 10,238 Under the current financial assets the loans and interest on loans with the estimated maturity up to 12 months is disclosed. 18

The increase of the value of current financial assets results mainly from the anticipated amount of the loan amounting to PLN 10,000 thousand to be repaid, granted to LC Corp Invest I Sp. z o.o. This amount was partially (in the amount of PLN 2,000 thousand) received on 27 July 2016. 15. Inventories 30 June 2016 31 December 2015 Prepayments for purchase of land 0 0 Work in process 143,299 102,011 Finished products 0 0 Inventory valuation allowance 0 0 Total inventories 143,299 102,011 In the period of 6 months ended on 30 June 2016, the Company: - sold the ownership right to a part of land property at ul. Centralna in Kraków, - purchased the perpetual usufruct right to land property located in Warsaw at ul. Skierniewicka/Siedmiogrodza of the total area of 0.6867 ha intended for a commercial investment. As at 30 June 2016 and 31 December 2015, costs of external financing were not capitalised in the value of inventories. A part of the inventories is a collateral for a bank loan granted by Getin Noble Bank S.A. as a contractual mortgage and other collaterals (see Note 21). 16. Trade and other receivables 30 June 2016 31 December 2015 Trade receivables 1,413 1,919 Budget receivables (w/o income tax) 101 0 Dividend receivables 32 000(*) 0 Receivables following from blocked amounts on escrow accounts for the purchase of real property 0 4,050 Other receivables from third parties 299 211 Total receivables (net) 33,813 6,180 Adjusted by future periods ( 66) ( 66) Valuation allowance for receivables ( 13) ( 16) Gross receivables 33,892 6,262 (*) item described in Note 24.2 17. Cash and cash equivalents 30 June 2016 31 December 2015 19

Cash at hand and at banks 7,380 19,016 Short-term deposits - 10,001 7,380 29,017 Cash at bank bears variable interest. Short-term deposits are made for different periods, from one day to several months, depending on the Company's current demand for cash, and bear interest according to interest rates established for them. 18. Capitaly 18.1. Initial capital 30 June 2016 31 December 2015 Share capital Series A ordinary shares of par value PLN 1.00 per share 500 500 Series B ordinary shares of par value PLN 1.00 per share 113,700 113,700 Series C ordinary shares of par value PLN 1.00 per share 1,453 1,453 Series D ordinary shares of par value PLN 1.00 per share 1,472 1,472 Series E ordinary shares of par value PLN 1.00 per share 32,000 32,000 Series F ordinary shares of par value PLN 1.00 per share 102,000 102,000 Series G ordinary shares of par value PLN 1.00 per share 80,000 80,000 Series H ordinary shares of par value PLN 1.00 per share 58,433 58,433 Series J ordinary shares of par value PLN 1.00 per share 57,000 57,000 Series I ordinary shares of par value PLN 1.00 per share 1,000 1,000 447,558 447,558 Par value of the shares All issued shares have a par value of PLN 1.00 and were fully paid. Rights of shareholders No shares of any series are preferred as to the dividend or return on capital One share corresponds to one vote. Shareholders with significant interest As at 30 June 2016, the shareholders possessing, directly or indirectly through subsidiaries, at least 5% of the total vote at the General Meeting of the Issuer: Shareholder Leszek Czarnecki directly and indirectly (1) of which: LC Corp B.V. seated in Amsterdam Number of shares 229,359,795 192,872,084 Number of votes 229,359,795 192.872,084 Share % in initial capital 51.24% 43.09% Share % in vote at general meeting 51.24% 43.09% AVIVA Otwarty Fundusz Emerytalny AVIVA BZ WBK 30,200,000 30,200,000 6.75% 6.75% ING Otwarty Fundusz Emerytalny 35,000,000 35,000,000 7.82% 7.82% 20

OFE PZU "Złota Jesień" 44,669,000 44,669,000 9.98% 9.98% (1) Leszek Czarnecki directly holds 14,657,685 shares constituting 3.27% of the share capital and 3.27% share in the vote at the General Meeting, and indirectly through his subsidiary undertakings Leszek Czarnecki holds 214,702,110 shares constituting 47.97% of the share capital and 47.97% share in the vote at the General Meeting. Leszek Czarnecki's subsidiary undertaking is LC Corp. B.V seated in Amsterdam holding 192,872,084 shares constituting 43.09% of the share capital and 43.09% share in the vote at the General Meeting, Getin Noble Bank S.A. seated in Watsaw holding 21,829,026 shares constituting 4.88% of the share capital and 4.88% share in the vote at the General Meeting, and RB Investcom Sp. z o.o. seated in Wrocław holding 1,000 shares constituting 0.0002% of the share capital and 0.0002% share in the vote at the General Meeting. As at 31 December 2015, the shareholders possessing, directly or indirectly through subsidiaries, at least 5% of the total vote at the General Meeting of the Issuer: Shareholder Leszek Czarnecki directly and indirectly (1) of which: LC Corp B.V. seated in Amsterdam Number of shares 229,359,795 214,701,110 Number of votes 229,359,795 214,701,110 Share % in initial capital 51.24% 47.97% Share % in vote at general meeting 51.24% 47.97% AVIVA Otwarty Fundusz Emerytalny AVIVA BZ WBK 30,200,000 30,200,000 6.75% 6.75% Nationale Nederlanden Otwarty Fundusz Emerytalny 35,000,000 35,000,000 7.82% 7.82% OFE PZU "Złota Jesień" 44,669,000 44,669,000 9.98% 9.98% Leszek Czarnecki directly holds 14,657,685 shares representing 3.27% of the share capital and 3.27% of the total vote at the General Meeting, and indirectly through his subsidiary undertakings Leszek Czarnecki holds 214,702,110 shares representing 47.97% of the share capital and 47.97% of the total vote at the General Meeting. Leszek Czarnecki s subsidiary undertakings include LC Corp B.V., seated in Amsterdam and holding 214,701,110 shares representing 47.97% of the share capital and 47.97% of the total vote at the General Meeting and RB Investcom Sp. z o.o., seated in Wrocław and holding 1,000 shares representing 0.0002% of the share capital and 0.0002% of the total vote at the General Meeting. 18.2. Reserve funds As at 30 June 2016, reserve funds amount to PLN 331,012 thousand. Reserve funds were created with the surplus of the issue value over the par value of PLN 321,452 thousand, less issue costs disclosed as a decrease in the reserve funds in the amount of PLN 13,215 thousand. Losses from years 2006, 2008 and 2009 in the total amount of PLN 20,240 thousand were covered from reserve funds. Reserve funds were increased by the amount of profit from year 2007, 2010-2014 in the total amount of PLN 106,496 thousand, from which a total of PLN 100,000 thousand was transferred to supplementary capital in 2014 and 2015. In the period of 6 months ended on 30 June 2016, by way of a resolution of the General Meeting adopted on 13 April 2016, reserve funds in the amount of PLN 100,000 thousand were released and this amount was transferred to supplementary capital. A dividend of PLN 63,481 thousand was paid from the funds held in supplementary capital. 18.3. Other reserve funds 21

As at 30 June 2016 there are no other reserve funds. As at 30 December 2015 other reserve funds amounted to PLN 100,000 thousand and were created to purchase own shares by transferring in the years 2014 and 2015 a total amount of PLN 100,000 from reserve funds (initially it was the Company profit transferred to reserve funds). In the period of 6 months ended on 30 June 2016, by way of a resolution of the General Meeting adopted on 13 April 2016, reserve funds were released and the entire amount of reserve capital was transferred to supplementary capital. 18.4. Other capitals As at 30 June 2016 other capitals amount to PLN 3,068 thousand and were created as a result of the valuation of fair value of management options in 2007 totalling PLN 3,108 thousand and decreased by PLN 40,000 from settling the merger with LC Corp Invest Sp. z o. o. on 17 November 2011. 19. Financial liabilities 19.1. Interest-bearing bank loans and bonds Long-term Maturity 30 June 2016 31 December 2015 Bank loan in PLN (b) 31-12-18 49,731 49,681 Bank loan in PLN (c) 31-12-18 37,848 37,821 Bond scheme (d) 30-10-18 49,699 49,643 Bond scheme (e) 06-06-19 49,708 49,658 Bond scheme (f) 20-03-20 64,658 64,612 Bond scheme (g) 10-05-21 84,879 - Investment notes (h) 29-06-18 12,695 12,421 Investment notes (i) - 17,527 349,218 281,363 Maturity 30 June 2016 31 December 2015 Short-term Bank loan in PLN (a) - - 29,995 Bond scheme (d) 30-10-16 433 435 Bond scheme (e) 06-12-16 152 155 Bond scheme (f) 20-09-16 999 1,027 Bond scheme (g) 10-11-16 616 - Investment notes (i) 31-01-17 18,049 - Investment notes (j) 09-12-16 39,288 38,350 Loans (k) 31-03-17 3,772 3,772 63,309 73,734 (a) Bank loan taken out in PLN with Getin Noble Bank S.A. pursuant to an agreement concluded on 19 December 2011, released on 30 March 2012 and repaid on 31 March 2016. (b) Bank loan taken out in PLN with Getin Noble Bank S.A. pursuant to an agreement concluded on 29 April 2014, released on 30 April 2014. (c) Loan incurred by LC Corp S.A. in PLN with Getin Noble Bank S.A. under an agreement of 18 June 2014, released on 3 September 2015 in LC Corp S.A. 22

(d) Coupon bonds issue of 31 October 2013 of 500 uncollateralised 5-year coupon bonds with the nominal value of PLN 100 thousand each and total nominal value of PLN 50,000 thousand under the Bond Issue Scheme agreement signed with the banks Pekao S.A. in Warsaw and BRE Bank S.A. (formerly: BRE Bank S.A.) in Warsaw which according to the agreement are to be redeemed on 30 October 2018. (e) Coupon bonds issue of 6 June 2014, of 50,000 uncollateralised 5-year coupon bonds with the value of PLN 1 thousand each and total nominal value of PLN 50,000 thousand under the Bond Issue Scheme agreement signed with the banks Pekao S.A. in Warsaw and BRE Bank S.A. (formerly: BRE Bank S.A.) in Warsaw which according to the agreement are to be redeemed on 6 June 2019. (f) Coupon bonds issue of 20 March 2015, of 65.000 uncollateralised 5-year coupon bonds with the value of PLN 1 thousand each and total nominal value of PLN 65.000 thousand under the Bond Issue Scheme agreement signed with the banks Pekao S.A. in Warsaw and BRE Bank S.A. (formerly: BRE Bank S.A.) in Warsaw which according to the agreement are to be redeemed on 20 March 2020. (g) Coupon bonds issue of 10 May 2016, of 85,000 uncollateralised 5-year coupon bonds with the value of PLN 1 thousand each and total nominal value of PLN 85.000 thousand under the Bond Issue Scheme agreement signed with the banks Pekao S.A. in Warsaw and BRE Bank S.A. (formerly: BRE Bank S.A.) in Warsaw which according to the agreement are to be redeemed on 10 May 2021. (h) Investment notes the issue of 20 January 2011 of ten investment notes having a par value of PLN 1,000,000 each, taken up by the subsidiary Arkady Wrocławskie S.A. On 29 May 2013, the buyback date of the notes was rescheduled from 28 June 2013 to 30 June 2015 by way of an annexe. On 29 June 2015, the buyback date of the notes was rescheduled from 30 June 2015 to 29 June 2018 by way of an annexe. (i) Investment notes the issue of 9 March 2012 of seven investment notes having a par value of PLN 2,000,000 each, taken up by the subsidiary Arkady Wrocławskie S.A. On 31 January 2014, the buyback date of the notes was rescheduled from 31 January 2014 to 31 January 2017 by way of an annexe. (j) Investment notes the issue of 9 December 2010 of thirty investment notes having a par value of PLN 1,000,000 each, taken up by the subsidiary Warszawa Przyokopowa Sp. z o.o. On 9 December 2013, the buyback date of the notes was rescheduled from 9 December 2013 to 9 December 2016 by way of an annexe. (k) Liability on account of the agreement concluded on 8 July 2008 on a borrowing granted by a subsidiary undertaking, Warszawa Przyokopowa Sp. z o.o. The average weighted loan, bond and investment note interest in the period of six months ended 30 June 2016 amounted to 5.2%. The average weighted loan, bond and investment note interest in 2015 amounted to 5.1%. 19.2. Issuance, redemption of capital securities In a period of 6 months ended on 30 June 2016 the following bond issues and redemptions were made: On 10 May 2016 LC Corp S.A. issued 85,000 uncollateralised 5-year coupon bonds with the value of PLN 1,000 each and total nominal value of PLN 85,000,000 under the Issue Bond Scheme agreement signed with the banks Pekao S.A. in Warsaw and BRE Bank S.A. (formerly: BRE Bank S.A.) in Warsaw which according to the agreement are to be redeemed on 0May 2021. 23

19.3. Incurring, repayment of bank loans and borrowings On 29 January 2016, LC Corp S.A. signed with Getin Noble Bank S.A. an annexe to the loan agreement entered into on 19 December 2011 with Getin Noble Bank S.A., extending the repayment term of the bank loan to 31 March 2016. On 31 march 2016 a loan in the amount of PLN 30 million was repaid in full pursuant to the agreement. 19.4. Liabilities due to the acquisition of a subsidiary In connection with the extension of the payment term regarding the price of the shares of Sky Tower S.A. (pursuant to the agreement of 6 December 2013), the resultant liability was disclosed in their discounted value. As at 30 June 2016 the discount amount was PLN 10,918 thousand and as at 31 December 2015 it was PLN 13,559 thousand. Discounted liabilities as at 30 June 2016 and as at 31 December 2015 are presented in the table below: 30 June 2016 31 December 2015 Long-term 110,990 109,045 Short-term 39,692 38,996 Total 150,682 148,041 20. Provisions The amounts of reserves and provisions and reconciliation representing movements during the year are presented in the table below: Severance For removal of Litigation Total payments, health pensions, death benefits construction defects (*) As at 1 January 2016 19 11 0 30 Created during the accounting year 0 0 370 370 Utilised 0 (11) 0 (11) Reversed 0 0 0 0 As at 30 June 2016 19 0 370 389 Short-term as at 30 June 2016 0 0 370 370 Long-term as at 30 June 2016 19 0 0 19 As at 1 January 2015 19 11 0 30 Created during the accounting year 0 0 0 0 Utilised 0 0 0 0 Reversed 0 0 0 0 As at 31 December 2015 19 11 0 30 Short-term as at 31 December 2015 0 11 0 11 Long-term as at 31 December 2015 19 0 0 19 (*) concerns the investment project carried out by LC Corp Invest Sp. z o.o., taken over as a result of the merger on 17 November 2011. 21. Collaterals As at 30 June 2016 the repayment of loans was secured mainly by: 24