Group’s shares still offer huge growth potential. Today, we see it particularly in development projects - the revenues from this sector we showed for the first time at the end of 2015. They offer a new space to increase ours value for shareholders, and thus also to increase value of our shares. Further development of other companies from our portfolio, high development potential arising from held assets and active communication with the market are also expected to bring measurable results, both for the company and for shareholders.

In the past few years, we gained the money for the development mainly from bank loans. It is currently the cheapest source of financing. We ease in obtaining bank loans because of owning valuable real estate. Our ownership of real estate are very profitable, so we do not have a problem with their indebtedness.

As for the issue of bonds - we considered that solution, but for now abandoned the idea because of the high costs (higher than a bank loan) of funding. We do not exclude that in case of sudden large investment needs, we decide to issue bonds.

As for the issue of shares - there are no favourable circumstances: neither the conditions nor the price, or investment needs. It is true that financing is on the critical path of rapid development, but so far we manage to maintain a very dynamic development, without diluting the share capital. 

To consider the issue of shares, there would be needed following conditions:

1. Significantly higher than the current share price. Currently, we are still very undervalued.

2. Better investment mood in the stock market.

3. A very large capital needs for a specific investment project - so that investors would know exactly what they invest and how will this impact on the increase of company's value.

4. The emergence of a large group of investors, who wish to assist in the development of the Group, and one of the conditions of their aid will be emiting shares for them

Of course, we are pleased with our cooperation with the Association of Individual Investors (SII), and we intend to continue it. In particular, we intend to take an active part in both the conference "Wall Street" and "Professional Investor" - this year we hosted both of them, so we did in previous years

In 2016 Grupa Kapitałowa IMMOBILE SA. paid a dividend of 0.05 PLN per share. The Group allocated for this purpose a total amount of 3 643 147 PLN. The date of acquisition of the right to the dividend was 22.8.2016. The dividend payment date was set on 12.09.2016.

So far, we allocated earnings on the development of the Group. Due to the large financial surpluses generated last year, and the desire to interest new shareholders, we consider the payment of dividends already this year. We consulted the idea with our shareholders who showed up at the last General Meeting, what resulted in a resolution approving the payment. Soon we intend to determine the dividend policy.

In our opinion, the diversification reduces risk. Fluctuations on the whole economy is not identical to the economic situation in its particular sectors, so the business model adopted by us, makes the company resistant to negative changes in some sectors. We believe that a diversified business will enable us to achieve stable financial results.

We try to develop all sectors symmetrically. By now, the most profitable segment is the industry. In the following years there will be more revenues in the development and construction segment.

In the construction sector we currently execute two major investments: Immobile K3 - the first class A office building in Bydgoszcz and Platanowy Park - residential and service investment, divided into 7 stages; currently we work on the first stage (two buildings) and are preparing to start the next stage. The first significant revenues from this investment we recorded already in the fourth quarter of 2015.   

In the industrial sector we focus on developing sales of our flagship products: crushers, mills and dryers and introducing a new product - the revolutionary mobile car parks.   

In the hotel sector we are focusing on opening new facilities. We want to double the number of rooms in the next two years. Our hotel facilities also launched its own catering brand.

We pay great attention also to our new business - organic food trade. Ekozakupy.pl network is growing rapidly - we are increasing the number of stores and our online shop quickly achieved the position of market leader in e-shops industry. The prospects of this business are very good. 

Yes of course. So far, only our industrial company can be considered as international, because approx. 50% of production is sold abroad. Special hopes in increasing this number, we associate with our new products which are automatic car parks.

In addition to the further expansion of the industrial company, we intend as soon as possible to open several hotels in neighboring countries. Expansion of the hotel chain will start from Germany and Belarus.

We still have a few ideas associated with international expansion, but it should remain as secret of the Board.

Industry: We hope for a significant increase in revenues due to the debut of car parking systems. Orders for this product flow down gradually. We are convinced that the testimonials of the first customers will allow us to significantly accelerate the sale. We expect a decline in orders from the offshore sector due to the low price of oil. Just two years ago, we changed the structure of revenues. Sales generated in the offshore sector were largely replaced by sales of high-margin, own products. We are convinced that the sale of automated parking systems will accelerate this process. The portfolio of our industrial products enlarged by those brought by the company PROJPRZEM - docking systems and steel structures. The industrial sector is developing very dynamically recently, to be kept in touch with that, we invite you to follow our blog.

Hotels: In the last three years we have managed to double the revenues generated in this segment. We want to maintain this growth rate. All the time we negotiate agreements on new facilities. We have already signed agreements for three new facilities (Bydgoszcz, Sopot and Bialystok).

Development: We finished the stage zero of Platanowy Park Investment. We are working now on the next stage of construction of a housing investment called Platanowy Park: http://www.platanowypark.pl/. Already this year we also want to start building apartments in Warsaw. We are planning housing projects in Lodz and Poznan too. The construction of office building IMMOBILE K3 also progress according to plans.

Other sectors of our business should grow organically at 10% per annum. Much more dynamic growth we are planning for our network of eco stores: http://ekozakupy.pl/.

m.jerzy@immobile.com.pl

p.kulessa@immobile.com.pl