QI 2013 FINANCIAL RESULTS

Warsaw, May 22 nd 2013 INVESTOR PRESENTATION QI 2013 FINANCIAL RESULTS POLNORD SA CAPITAL GROUP

DISCLAIMER This report has been prepared solely for information purposes and is not intended to incite to buy or sell any financial instruments. This report does not constitute an advertisement, offer or suggestion to purchase financial instruments. Sources of information used are considered by Polnord SA reliable and accurate, but there is no guarantee that they are complete and fully reflect the actual state. The presentation may contain forward-looking statements, which represent investment risk or source of uncertainty and may differ materially from actual results. Polnord SA is not responsible for the effects of decisions made on the basis of this study. Information contained in this presentation should not be treated as a source of knowledge sufficient to make an investment decision. Responsibility for the use of the information contained in the paper rests solely with the users of the presentation. This report is copyright protected. Copying, publishing or distribution requires written permission from Polnord SA. 2

CONTENTS Q1 2013 OVERVIEW SALES AND DELIVERIES FINANCIAL RESULTS COMPENSATORY CLAIMS PUBLIC HOUSING INVESTMENT PORTFOLIO 3

SELECTED FINANCIAL DATA SALES REVENUE [THOUSANDS PLN] GROSS PROFIT ON SALES /NET PROFIT [THOUSANDS PLN] 100 000 90 000 80 000 70 000 83 581 89 423 14 000 12 000 10 000 10 951 9 498 10 665 11 972 Gross profit on sales Net profit 60 000 67 135 8 000 50 000 40 000 30 000 48 989 41 102 6 000 4 000 4 278 3 700 3 771 20 000 10 000 2 000 1 877 2 206 1 455 0 1Q 2012 2Q 2012 3Q 2012 4Q 2012 1Q 2013 0 1Q 2012 2Q 2012 3Q 2012 4Q 2012 1Q 2013 SALES & DELIVERIES [UNITS] GENERAL ADMINISTRATIVE AND SELLING EXPENSES [THOUSANDS PLN] units 400 14 000 350 300 250 200 150 100 50 245 222 194 150 198 233 194 144 367 136 12 000 10 000 8 000 6 000 4 000 12 834 11 949 10 369 13 023 8 701 0 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 2 000 Deliveries Net sales 0 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 4

SIGNIFICANT EVENTS Operations Joint Venture Agreement with Group Waryński to construct a development project in Warsaw (total usable area 45 thousand sqm., value in current prices 300m PLN, planned commencement of phase 1 2013/2014 165 apartments. Introduction for sale of phase 1 of project Osiedle Guderskiego in Gdańsk (96 apartments in total) Advanced preparations of development projects in Ząbki near Warsaw, Gdańsk and Gdynia Successful commercialization of office building B3 in Wilanów Office Park (leased in almost 90%) Debt management 01.2013 buyout and issue of bonds at total par value of 65,5 mpln. 30.04.2013 buyout of bonds at total par value of 40 mpln, issue of bonds at total par value of 5 mpln. 13.05.2013 issue of bonds at total par value of 46 mpln with the aim to finance new development projects implemented by Polnord. Submission of a statement of claim against Miejskie Przedsiębiorstwo Wodociągów i Kanalizacji w m.st. Warszawie SA ("MPWiK") for take-over, for remuneration of 57,3 mpln, of a part of the water and sewage network, constructed during the investment of Miasteczko Wilanów in Warsaw. Reduction of operation costs General administrative and selling expenses 8,7 mpln lowest since 2007. Merger of Polnord with subsidies optimization of the cost structure of Polnord Capital Group. Reduction of remuneration for Members of the Company's Supervisory Board. 5

CONTENTS Q1 2013 OVERVIEW SALES AND DELIVERIES FINANCIAL RESULTS COMPENSATORY CLAIMS PUBLIC HOUSING INVESTMENT PORTFOLIO 6

DELIVERIES AND MARGINS DELIVERIES AND REVENUES RECOGNIZED IN THE FINANCIAL STATEMENT 600 [units] 132,8 500 89,4 400 83,6 81,2 67,1 300 49,0 53,7 479 41,1 200 367 21,5 233 233 100 194 144 144 132 56 0 140 [m PLN] 120 100 80 60 40 20 0 WARSAW PROJECT UNITS DELIVERED UNITS SOLD TO BE DELIVERED REVENUES [KPLN] % GROSS PROFIT [KPLN] MARGIN Ostoja Wilanów 17 19 10 518 23 % 1 113 10 % Królewskie Przedmieście 2 2 1 524 3 % - 29-2 % Dobry Dom 4-2 070 5 % 315 15 % TRICITY Ostoja Myśliwska II 12 18 3 474 8 % 620 18 % 2 Potoki I 14 5 3 216 7 % 673 21 % Sopocka Rezydencja 13 7 5 955 13 % - 2 497-42 % Units delivered Sales revenue [m PLN] Osiedle Guderskiego I 4 4 544 1 % 28 5 % OLSZTYN Revenues from sales in Q1 2013 equal to 41,1 mpln recognized as a result of the delivery of 136 apartments and the lease of office space. Osiedle Tęczowy Las (bud.4) SZCZECIN 5 2 784 2 % 246 31 % Ku Słońcu I 7 3 2 133 5 % 228 11 % Ku Słońcu II (bud. 2) 44 18 10 718 24 % 1 375 13 % Negative margins on Sopocka Rezydencja and City Park projects significantly influenced Polnord s financial result these margins should be close to 0 in upcoming periods. High margins (>30%) on projects in Wrocław and Olsztyn. Most deliveries in Q1 2012 in Szczecin and Tricity area where margins ranged form 13% to 21 %. ŁÓDŹ City Park 6 14 1 736 4 % - 442-25 % WROCŁAW Osiedle Innova 8 3 2 259 6 % 947 42 % TOTAL 136 95 44 931 100 % 2 576 6 % ATTENTION: Data not weighted by Polnord s share in the ptoject 7

SALES AND OFFER GROSS SALES [szt] 350 300 312 250 200 150 100 50 0 317 237 317 299 214 234 275 218 312 299 218 [szt] 350 300 250 200 150 100 50 0 Gross sales in Q1 2013 equal to 218 units, 198 units accounting for annulations 14 reservation agreements signed in Q1 2013 Gross sales in April 2013 equal to 69 units, net sales 64 units High value of sales despite lower unit sales due to increased interest in large apartments OFFER AS AT 31.03.2013 Increase in the number of clients paying in cash 1600 1400 1200 1000 800 600 400 200 0 266 327 395 348 423 490 443 273 377 1170 1087 1010 1014 962 877 899 799 557 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 Offer as at March 31 st 2013: 1389 apartments, comprising 490 completed units and 899 units under construction Offer 934 1072 1436 1414 1405 1365 1385 1320 1389 Units under construction Completed units 8

EXPANSION OF OFFER 1.258 apartments of total usable area 67 thousand m 2, located in 8 new development projects to expand Polnord s offer by the end of 2013. Brama Sopocka Planned commencement 4Q2013 Planned completion 4Q2015 7.500 m 2 usable area 120 units Phase I: 2.800 m 2 usable area, 42 units Osiedle Tęczowy Las (building 6) Planned commencement 3Q2013 Planned completion 2Q2015 6.743 m 2 usable area 149 units Dwa Tarasy Planned commencement 3Q2013 Planned completion 3Q2014 15.300 m 2 usable area 334 units Phase I: 7.131 m 2 usable area, 162 units Neptun (Ząbki near Warsaw) Planned commencement 3Q2013 Planned completion 3Q2017 30.000 m 2 usable area 600 units Phase I: 12.100 m 2 usable area, 218 units Osiedle Moderno Planned commencement 4Q2013 Planned completion 2Q2015 7.225 m 2 usable area 158 units Śródmieście Wilanów, building D Planned commencement 3Q2013 Planned completion 2Q2015 9.200 m 2 usable area 180 units Ostoja Wilanów (Phase VI, building C2) Planned commencement 3/4Q2013 Planned completion 1/2Q2014 12.320 m 2 usable area 184 units Stacja Kazimierz Planned commencement 4Q2013/1Q2014 Planned completion 4Q2017 45.000 m 2 usable area 450 units Phase I: 9.200 m 2 usable area, 165 units 9

CONTENTS Q1 2013 OVERVIEW SALES AND DELIVERIES FINANCIAL RESULTS COMPENSATORY CLAIMS PUBIL HOUSING INVESTMENT PORTFOLIO 10

PROFIT AND LOSS ACCOUNT Gross profit on sales the result of lease of office space and delivery of 136 units Revaluation of office building B3 in Wilanów Office Park due to advanced progress of commercialization (approx. 90%) by the amount of +23 mpln Reduction of SG&A expenses by 32% year to year Cost of interest 9 mpln SPECIFICATION (THOUSAND PLN) 1Q2013 1Q2012 Sales revenue 41 102 83 581 Prime cost of sales ( 37 331) ( 72 630) Gross profit (loss) on sales 3 771 10 951 Revaluation of investment property 21 480 227 General administrative and selling expenses ( 8 701) ( 12 834) Other operating revenue 725 25 582 Other operating expenses ( 6 677) ( 7 749) Gross operating profit (loss) 10 598 16 177 Financial revenue 3 489 4 550 Financial expenses ( 10 567) ( 16 611) Share in profit of associated company ( 94) Gross profit (loss) 3 520 4 022 Income tax ( 2 116) ( 1 887) Net profit (loss) on continued operations 1 404 2 135 (Net profit (loss) on discontinued operations 51 ( 285) Net profit (loss) 1 455 1 877 11

RENTABILITY BY PROJECTS GROSS PROFIT ON SALES BY PROJECTS 5 4,5 4 3,5 3 2,5 2 1,5 1 0,5 0 0,5 0,3 0,7 0,6 0,5 0,2 1,6-0,4-2,5 2,2 0,1 3,8 Gross profit on sales is the result of lease of office space and delivery of 136 units. Lower gross viability on sales of apartments is the result of deliveries on loss-generating projects (20% share in total sales revenue from sales of apartments). Progress of sales on loss-generating projects: City Park in Łódź: 90% GROSS VIABILITY ON SALES 16% 14% 12% 13,1% 13,4% Sopocka Rezydencja: 68% Given past write-downs expected margins on the mentioned projects should be around 0 in upcoming periods, at current sales prices. 10% 8% 9,2% 6% 4% 2% 6,4% 4,5% Estimated value of net revenue on the sale of 198 units in 1Q 2013 (considering only preliminary contracts) equal to 69.809 kpln. 0% 1Q 2012 2Q 2012 3Q 2012 4Q 2012 1Q 2013 12

BALANCE SHEET - ASSETS SPECIFICATION (THOUSAND PLN) 31.03.2013 31.12.2012 Increase in value is the effect of the revaluation on office building B3 in Wilanów Office Park due to almost complete commercialization Non-current assets 1 270 556 1 243 044 Property, plant and equipment 14 017 14 223 Investment property 973 233 947 668 Intangible assets 834 898 Financial assets 19 510 19 425 Deferred tax assets 46 753 45 353 Long-term receivables 93 727 92 995 Goodwill 122 482 122 482 Current assets 992 679 1 014 472 Inventory 662 172 661 356 Trade and other receivables 184 928 185 832 Other short-term financial assets 55 066 77 290 Receivables due to VAT and other taxes 14 190 12 887 Receivables due to income tax 1 112 1 255 Payments 7 858 5 855 Cash and cash equivalents 67 353 69 997 TOTAL ASSETS 2 263 235 2 257 516 13

million PLN million PLN BALANCE SHEET - ASSETS STRUCTURE OF INVENTORY INVENTORY LAND BANK AS AT 31.03.2013 800 700 600 500 400 4 699,7 661,4 662,2 26,7 0,3 0,1 26,7 26,7 362,2 358,6 361,8 Wrocław 17,33m PLN Ząbki near Warsaw 18,39m PLN Tricity 62,59m PLN Lublin 6,44m PLN 300 200 204,5 153,2 164,5 Łódź 48,46m PLN 100 0 102,3 122,6 109,2 30.09.2012 31.12.2012 31.03.2013 Units completes Units under construction Land bank Infrastructure Other Warsaw - Wilanów 167,07m PLN Szczecin 33,84m PLN Bartąg near Olsztyn 7,66m PLN STRUCTURE OF INVESTMENT PROPERTY INVESTMENT PROPERTY LAND BANK AS AT 31.03.2013 1200 1000 800 33,4 963,5 947,7 973,2 29,1 33,2 34,4 66,9 71,6 94,7 93,6 93,0 93,0 Warsaw, Wilanów 505,2m PLN 600 400 740,5 749,9 751 200 0 30.09.2012 31.12.2012 31.03.2013 Land bank Office building B1 (Wilanów) Office building B3 (Wilanów) Stroj-Dom (Russia) Office building Novosibirsk (Russia) Dobrzewino, Sopot gmina 47,3m PLN Szemud 16,1m PLN Dopiewiec near Poznań 122,3m PLN Łódź 40m PLN Kowale near Gdańsk Other 9,5m PLN 10,6m PLN 14

BALANCE SHEET EQUITY AND LIABILITIES SPECIFICATION (THOUSAND PLN) 31.03.2013 31.12.2012 Equity 1 329 869 1 327 558 Long-term liabilities 569 837 532 034 Interest-bearing bank loans and borrowings 500 124 464 846 Provisions 196 196 Other liabilities 3 996 3 748 Debt restructuring through buyout and issue of bonds at par value 65,5 mpln Deffered income tax provision 64 348 61 957 Accruals 1 173 1 287 Short-term liabilities 363 529 397 924 Trade and other liabilities 31 439 34 178 Current long-term portion of bank loans and borrowings 56 640 45 419 Short-term revolving loans 788 Other short-term loans and borrowings 147 294 194 854 Liabilities due to VAT and other taxes 3 838 1 624 Liabilities due to income tax 460 1 Accruals 3 592 3 502 Advance payments received 55 812 53 397 Provisions 64 454 64 161 Total liabilities 933 366 929 958 TOTAL EQUITY AND LIABILITIES 2 263 235 2 257 516 15

INTEREST-BEARING DEBT NET INTEREST-BEARING DEBT 800 700 600 673,7 684,0 639,3 635,9 636,7 100% 90% 80% 70% 30.04.2013 - Buyout of bonds at par value 40 mpln. 3,7 mpln value of bond interest as at 31.03.2013 r. 500 60% 400 50% 300 40% 200 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 Net debt (m PLN) Net debt to equity ratio (%) 30% DEBT [M PLN] 2Q2013 3Q2013 4Q2013 2014 2015 2016+ TOTAL Residential projects 9,6 5,5 7,3 37,0 27,1 18,0 104,4 Commercial projects 1,5 0,5 0,5 2,0 2,0 97,4 103,9 Current loans 24,0 56,6 80,6 Debt stemming from issued bonds 43,7 30,4 18,5 114,0 134,0 340,6 Loans of Fadesa Polnord Polska Group 2,1 2,1 2,1 12,9 17,8 37,1 Other (including FPP loans) 28,8 8,6 37,4 TOTAL 80,9 8,1 69,2 127,0 169,5 249,4 704,0 Cash and cash equivalents as at 31.03.2013 67,3 NET DEBT as at 31.03.2013 636,7 16

CONTENTS Q1 2013 OVERVIEW SALES AND DELIVERIES FINANCIAL RESULTS COMPENSATORY CLAIMS PUBLIC HOUSING INVESTMENT PORTFOLIO 17

COMPENSATORY DAMAGES FOR ROADS AND INFRASTRUCTURE The judgement of the Supreme Administrative Court fully confirms Polnord's legal position regarding the Company's claim for compensation COMPENSATORY DAMAGES DUE FROM THE CAPITAL CITY OF WARSAW FOR LAND PLOTS ASSIGNED FOR PUBLIC ROADS DATE OF SALE/AGREEMENT AREA SUBJECT TO COMPENSATION AMOUNT OF I INSTALMENT OF SALE PRICE (RECEIVED) Receivable I (sold to Polski Bank Przedsiębiorczości) 29.06.2011 15,9 ha 101,5 mpln Receivable II (sold to Polski Bank Przedsiębiorczości) 17.07.2012 6,74 ha 43,4 mpln Additional agreement (participation in amounts exceeding 144,9 mpln) 27.12.2012-25 mpln COMPENSATORY DAMAGES DUE FROM MPWIK* FOR WATER AND SEWERAGE INFRASTRUCTURE DATE OF SUBSMISSION COMPENSATORY CLAIM Claim against MPWiK for compensation for usufruct of water and sewerage utilities in Miasteczko Wilanow on a non-contractual basis Claim against MPWiK to take-over, for compensation, part of the water and sewage network, constructed during the investment of Miasteczko Wilanów in Warsaw 25.04.2012 11,8 mpln 05.03.2013 57,3 mpln In progress In progress *Miejskie Przedsiębiorstwo Wodociągów i Kanalizacji (Municipal Water and Wastewater Company) 18

CONTENTS Q1 2013 OVERVIEW SALES AND DELIVERIES FINANCIAL RESULTS COMPENSATORY CLAIMS PUBLIC HOUSING INVESTMENT PORTFOLIO 19

MARKET FOR PUBLIC HOUSING Statutory task of municipalties: creation of conditions to meet housing needs of self-government community Tight budget of local self-governments: necessity to complete ongoing investment projects (especially infrastructural projects) restrictions on further indebtedness of municipalities pressure to reduce public debt extension of municipality obligations successive take-over of responsabilities for indebtedness of self-government legal persons (such as Independent Public Health Care institutions), cultural institutions and municipal companies (including guarantees) Only 2 500 public flats delivered each year in Poland ie. on average 1 flat/municipality/year Estimated deficit of public flats for the less affluent in Poland = 400.000 flats URGENT ISSUE FOR LOCAL SELF-GOVERNMENTS (see Supreme Audit Office report 10.01.2012) Well adjusted offer of public flats (product + financing structure) 20

CONTENTS Q1 2013 OVERVIEW SALES AND DELIVERIES FINANCIAL RESULTS COMPENSATORY CLAIMS PUBLIC HOUSING INVESTMENT PORTFOLIO 21

ONGOING PROJECTS Śródmieście Wilanów, bud. A Location : Warszawa Commenced 3Q2011 Planned completion 3Q2013 9 059m 2 usable area 170 units, available 48 units Śródmieście Wilanów, bud. C Location : Warszawa Commenced 3Q2012 Planned completion 3Q2014 10 565 m 2 usable area 162 units, available 77 units Ostoja Wilanów (etap 7) Location : Warszawa Commenced 3Q2011 Planned completion 2Q2014 19 430 m 2 usable area 324 units, available 212 units 22

ONGOING PROJECTS Osiedle Tęczowy Las (building 5) Location: Bartąg near Olsztyna Commenced 1Q2012 Planned completion 3Q2013 5 838 m 2 usable area 103 units, available 73 units Osiedle Innova (phases 4/5) Location : Wrocław Commenced 1Q2012/1Q2012 Planned completion 2H2014/2H2014 4 468/4 468 m 2 usable area 92/92 units, available 35/36 units Ku Słońcu (phase 2, building 1) Location : Szczecin Commenced 2Q2012 Planned completion 4Q2013 7 575 m 2 usable area 158 units, available 158 units 2 Potoki (phase 2, buildings 6-9) Location : Gdańsk Commenced 2Q2012 Planned completion 3Q2013 7 092 m 2 usable area 162 units, available 148 units 23

THANK YOU FOR YOUR ATTENTION CONTACT FOR INVESTORS Agata Wiktorow-Sobczuk e-mail: Agata.Wiktorow-Sobczuk@polnord.pl tel. (22) 351 96 12 24