Poland

Overview: With the FOMC's decision several hours away, the dollar is trading lower against nearly all the major currencies.  The Antipodeans and Norwegian krone are leading.  The euro, yen, and sterling are posting minor gains (less than 0.1%).  Most of the freely liquid and accessible emerging market currencies are also firmer.  The Turkish lira is a notable exception.  The decline in the core inflation and a smaller than expected rise in the headline pace embolden officials for another rate cut when the central bank meets on November 18.  The JP Morgan Emerging Market Currency Index is rising for the second consecutive session after falling in the previous four sessions.  Equities are lower.  The MSCI Asia Pacific Index fell for the fifth session in the past six.  Among the large markets, Taiwan and Australia bucked the trend.  The four-day advance of the Stoxx 600 in Europe is at risk, and US futures are weaker.   Benchmark 10 year yields are mostly two-four basis points lower across most high-income countries today.  That puts the US 10-year Treasury yield near 1.52%.  Australia's two-year yield fell almost 10 bp to 0.55%.  It had peaked above 0.71% last week.   The three-year yield is off nearly 30 bp in recent days.  Gold continues to chop within the range set last Friday (~$1772-$1801).  Ahead of the OPEC+ meeting tomorrow amid talk that the US may seek to coordinate sales for a coalition of strategic reserves and a build of US inventories reported by API weigh on oil prices.  December WTI has approached the 20-day moving average (~$82), which has not closed below since late August. Base metals are higher as iron ore snapped a five-day slide during which it lost over 20%.  Copper is also recovering after forging a base in the $432-$433 area.  It is up around 1.5% today.  If sustained, it would be the largest gain in three weeks.   Asia Pacific China's Caixin services unexpectedly rose to 53.8 from 53.4 in September.  Recall that the manufacturing reading had improved to 50.6 from 50.0.  The net effect was that the composite edged up to 51.5 from 51.4.  The composite has converged with the "official" PMI, which stands at 50.8.  Separately, note that China is experiencing a broad spread of the virus into a dozen provinces, and the number of new cases is the highest in a couple of months. Inter-provincial travel has been restricted, and new social protocols are being introduced.  According to reports, the government advised households to stock up in necessities and ensure adequate food supplies for local authorities.  Australia's service and composite PMI shows the recovery was not quite as strong as the preliminary data suggested.  The service PMI rose to 51.8, not 52.0  from 45.5.  The composite stands at 52.1 rather than 52.2.  It was at 46 in September.   Tomorrow Australia reports Q3 real retail sales, but it will still be picking up the weakness of the lockdown.  September trade figures will also be reported.  Weaker exports and stronger imports are expected to have narrowed the trade surplus by almost 20% to A$12.4 bln. Ahead of the weekend, the central bank will make its Monetary Policy Statement.  The swaps market is pricing in 70 bp, down from 80 bp, of tightening over the next 12 months.  The dollar has been confined to a narrow quarter yen range through the Asian session and most of the European morning.  Softer yields and equities would be expected to give the yen a bit of support.  The 20-day moving average is near JPY113.65, and the greenback has not closed below it since the September FOMC meeting.  In the bigger picture, we have suggested the dollar-yen rally from mid-September through mid-October puts the dollar in a new range.  We suspected JPY114.50-JPY115.00 marks the upper end and JPY113.00 may be the lower end.  The Australian dollar fell almost 1.4% yesterday, its largest decline since May.  It reached $0.7420 yesterday, just above the $0.7410 (38.2% retracement objective of last month's rally).  It has stabilized today and has (so far) been capped near $0.7450.  Resistance is seen in the $0.7460-$0.7470 area.   For two weeks, the Chinese yuan has been alternating between advances and declines, and net-net little changed over the period.  Yesterday, the yuan slipped (0.04%), and today it is firmer (0.06%).  The PBOC has consistently set the dollar's reference rate above model projections, and today's fix was at CNY6.4079 compared with median expectations (Bloomberg) for CNY6.4068.  The PBOC was unexpectedly generous in its open market operations, injecting CNY50 bln. As a result, the overnight repo rate fell 12 bp to 1.99%.   Europe Norway's central bank meets tomorrow.  It was the first of the high-income countries to raise rates this year, so far, followed only by New Zealand.  We overstated the case for Norway to hike rates at the meeting, but don't be mistaken. The case for a rate hike exists, but the pattern is not to move at these "off-meetings" (without updated formal policy path guidance).  Instead, officials will likely confirm their intentions to raise rates in December. The swaps market is pricing in almost three hikes next year.   The dollar trended lower against the Nokkie since August 20. The downward momentum stalled in late October.  Yesterday it rose above NOK8.50 for the first time since mid-October.  The momentum indicators have turned up.  The 200-day moving average is slightly below NOK8.55 and near NOK8.60 is the (38.2%) retracement of the down move.  The UK is emerging from the economic soft patch in the June-August period.  The final service and composite PMI report today showed stronger activity than the preliminary estimates.  The service PMI rose to 59.1 from 55.4 in September.  The flash estimate had put it at 58.0.  The composite stands at 57.8, up from the preliminary projection of 56.8 and September 54.9.    The Bank of England meets tomorrow.  There does not seem to be much conviction, and the market appears divided. In the Bloomberg survey, 22 out of 45 economists expect a hike that seems to have been largely discounted by the markets (15 bp).  Three of the largest UK banks do not expect a hike.  Some observers argue that what is the point of stopping now when it would end next month. We often think the signaling channel of QE is under-appreciated.  Stopping the bond-buying now adds to the seriousness of the moment if it does not lift rates. Sterling has retreated by 2.3 cents since last week's high to approach $1.36 yesterday in the US. The euro reached its lowest level against sterling since March 2020 in late October near GBP0.8400, and yesterday rose to above GBP0.8500 for the first time since October 12.   Poland's central bank is expected to hike the base rate 25 bp today to 0.75%.  Recall that it hiked 40 bp last month to begin the cycle.  It started later than Czech and Hungary.  Preliminary October CPI rose 1% on the month, accelerating the year-over-year pace to 6.8% (from 5.9% in September.  It was at 5% as recently as July.  The Czech central bank meets Friday and is expected to hike the repo rate 75 bp to 2.25%.  After two quarter-point hikes (June and August), it hiked by 75 bp in September. Inflation (CPI) rose to 4.9% in September from 4.1% in August.  It is the highest since 2008.  Turkey's CPI rose by 2.39% last month to bring the year-over-year rate to 19.89% (19.58% in September), slightly lower than expected.  The core rate slipped slightly to 16.82% from 16.98%.   The euro has been confined to about a quarter of a cent range above $1.1575 so far.  It stalled yesterday near $1.1615, the (50%) retracement of the pre-weekend slide from almost $1.1700 to $1.1535.  It is making session highs in the European morning, but we look for a less friendly North American session.  There are options for about 530 mln euros at $1.16 that expire today.  A hawkish Fed (see below) could bring option expirations tomorrow at $1.1525 (~825 mln euros ) and $1.1550 (~900 mln euros) into play.  Sterling tested $1.36 yesterday, the lowest level since October 13.  It has hardly managed to distance itself from the lows.  It found new offers near $1.3635.   There is a GBP675 mln option expiring today at $1.3650.  A larger one (~GBP820) is at $1.3615 also expires but has liked been neutralized.   America It seems well appreciated that the Federal Reserve will announce it will begin slowing the bond purchases. Most expect a reduction of $10 bln of Treasuries and $5 bln of Agency MBS.  Investors appear to be anticipating the monthly reduction of these amounts through June 2022.  Even with yesterday's upticks, the June Fed funds futures contract continues to discount a rate hike then.  If the effective Fed funds rate is steady in the first half of June at eight basis points and then rises to 33 bp for the second half of the month (25 bp rate hike on June 15), the average effective rate is about 20.5 bp.  The contract settled at an implied rate of 20 bp yesterday.   Since this is already in the market, the tapering announcement itself may not be hawkish.  There are two steps the Fed could take if it wanted to drive home the point.  First, the FOMC statement has been referring to inflation as largely "transitory."  It could simply drop this qualifier or modify it.  The Chair has already acknowledged that it will likely persist longer than initially anticipated.  Indeed, next week's CPI report is expected (Bloomberg survey median) is expected to have risen by 0.5%, which, given the 0.1% increase in October 2020, means the 12-month rate will accelerate to around 5.8%.   Second, after the last press conference, Powell was asked about needing to reduce monetary stimulus while the Fed was still engaged in QE.  The Bank of England said it would hike if necessary while it was still buying bonds.  Powell said in that situation, the Fed would not send contradictory signals but accelerate the tapering process.  Quicker tapering would be a hawkish signal, and reaction by the market would likely bring forward the first hike.   The Democratic Party lost the Virginia gubernatorial context.  Biden had carried the state by 10 percentage points last year, and the preliminary results suggest a loss of suburban voters, a key part of the new Democratic coalition.  New Jersey's governor contest is very close, and the Democratic incumbent is trailing. The results play on ideas that the Democrats are likely to lose both houses of Congress in next year's mid-term election, in which it is common for the party in the White House to lose seats.  Some in the press have been critical that Xi and Putin are not attending COP-26, but their leadership was always in doubt.  The election results may undermine US leadership because Biden's commitments may not get legislative support, and executive decisions could be reversed in 2024.   Today could be the first day since October 13 that the US dollar does not trade below CAD1.2400.  Still, note that the greenback remains in the CAD1.2300-CAD1.2435 range set last Wednesday when the Bank of Canada turned more hawkish.  Yesterday, the US dollar closed above its 20-day moving average for the first time since late September.  We suspect corrective forces could lift the exchange rate toward CAD1.2475, where the (38.2%) retracement of last month's decline is found, and the 200-day moving average (~CAD1.2485).  However, in its way stands the $920 mln option at CAD1.2450 that expires today.  The greenback reached almost MXN20.92120 yesterday, a new eight-month high. Sellers emerged, and the dollar closed lower to snap a five-day advance.  It is softer today but holding above yesterday's low (~MXN20.71).  Ahead of the FOMC outcome, the market may be cautious about taking the dollar below the MXN20.66-MXN20.70 area.   Disclaimer

Office buildings that have solutions to limit the negative impact on the environment and reduce operating costs, at the same time provide a friendlier, safer and better organized work space. What do they offer? The change in the way of thinking about the work environment that has taken place since last spring did not ultimately affect the status of offices. On the contrary, after several months of hibernation, offices experience a renaissance. They are still a strong support in building the organizational culture of companies and a base for the development and cooperation of teams, training new employees, and a meeting place with clients. However, the expectations of the users of office buildings have changed. In addition, issues concerning the way buildings affect the natural environment and the people working in them have come to the fore. - Decision-making processes aimed at environmental protection are gaining momentum, which more and more often carry specific declarations of investors and developers, in which they undertake to reduce carbon dioxide emissions by buildings to zero in a specific time perspective - says Bartłomiej Zagrodnik, Managing Partner/CEO of Walter Herz. It became necessary to reevaluate the previously adopted standards and expand the scale of pro-ecological solutions, especially in the context of the climate change, which brings unexpected and dangerous weather phenomena. - The development of the market is focused on the implementation of intelligent, environmentally neutral buildings and the creation of innovative solutions that support the decarbonisation of the existing resources and adapting them to the current requirements in the field of sustainable development - explains Bartłomiej Zagrodnik. - The changes are also stimulated by such factors as rising electricity prices, costs of water consumption, heating and waste disposal. Office buildings are switching to green energy derived only from renewable sources, which not only has positive environmental effects, but also reduces operating costs. Hence, we also see the growing interest of tenants in real estate equipped with environmentally friendly solutions - says Bartłomiej Zagrodnik. Green energy and water saving The most modern buildings not only draw energy from renewable sources, but also use technologies that reduce its consumption by automating space management. There are also more and more common solutions enabling water retention, which is of key importance in the face of the water crisis. Facility owners are serious about the problem of shrinking water resources. They invest in gray water filtering and reuse systems and rainwater management, fittings and showers based on motion sensors to reduce network water consumption, as well as various types of water retention solutions. They create green roofs, terraces and rain gardens. Companies are also more likely to choose buildings that meet certain standards in this area, in order to take advantage of the possibility of reducing costs. In Poland, proper management of water resources is particularly important because in terms of our resources, we are on one of the last places in Europe, ahead of the Czech Republic, Cyprus and Malta. Unfortunately, the level of water consumption in the world is constantly increasing. Over the last century, it has increased sixfold. Crystal clear air, green enclaves and ecological crops There are many more factors that influence the efficiency of the office buildings. There are, among others, ventilation and air circulation systems that control and supply air of better quality than specified in the standards in high-class facilities, specialized filters and humidifiers, as well as carbon free finishing materials and solutions optimizing acoustics. Modern buildings expand the spectrum of solutions to become more work-friendly and environmentally friendly. Here, green also plays one of the main roles. We observe the creation of green enclaves around the buildings, the arrangement of courtyards, squares and recreation areas immersed in greenery, also with green concrete pavements that purify the air. Vegetation is usually selected in terms of low water demand and the possibility of producing a large amount of oxygen and absorbing toxins, and vines in the context of protecting the walls of the building from heating up. The complexes include refuges for birds and insects, as well as city apiaries and gardens for organic farming. Specially designed blocks, facades and roofs of buildings with elements reflecting sunlight are used to reduce the effect of the so-called urban heat islands. The interiors of office buildings are arranged in such a way as to activate users. For example, the central location of the stairs is to encourage the movement of pedestrians between the floors, which reduces the use of elevators. The promotion of infrastructure for cyclists in the office buildings is also conducive to the pro-health activity of employees and reducing the burden on the environment. Technologies that facilitate work organization The well-being of employees, so widely discussed today, is supported by the use of hybrid office management platforms in the most modern buildings, thanks to which the facilities can offer the so-called smart office. Applications available on smartphones improve the daily work organization. With their use, one can, among others, book an office arrival time or a parking space, enter the garage and take a lift to the selected floor avoiding contact with the other office users, book a conference room for a team or client meeting, and even report a printer issue. The key challenge was to provide people in the office environment with the greatest possible comfort and safety. It is to be guaranteed not only by generally available basic disinfectants, masks and gloves, but also by changes in the arrangement of offices. Such arrangement of office spaces, so that they are comfortable for everyone and provide various types of zones adapted to the new work profile. Therefore, companies most often decide to increase the distance between work stations, limit the number of large conference rooms that replace dedicated smaller rooms, boxes and booths for talks, as well as stands for creative team work. There are social zones, chill out rooms to rest, green terraces and winter gardens. The ambition of the office environment is also to create ecological spaces. Using as many recycled or reusable office supplies as possible, such as filter bottles instead of disposable plastic packaging. Undoubtedly, the reduction of the carbon footprint is also facilitated by the popularization of videoconferences, which significantly reduced business trips. Just as the already sanctioned electronic document flow previously contributed to minimizing the use of paper. Good service in the buildings is also increasingly important. The offer of additional services, similar to those provided by hotels, for example concierge service, is gaining in importance. The key condition is also direct access to the gastronomic offer, basic services and shops, preferably on the premises of the building. The changes taking place in the office market are generally aimed at perceiving space as a service. About Walter Herz Walter Herz company is a leading Polish entity which has been operating in the commercial real estate sector across the country. For nine years, the company has been providing comprehensive and strategic investment consulting services for tenants, investors and real estate owners. It provides extensive support for both public and private sector. Walter Herz experts assist clients in finding and leasing space, and give advice when it comes to investment and hotel projects. In addition to its headquarters in Warsaw, the company operates in Cracow and the Tri-City. Walter Herz has created Tenant Academy, first project in the country, supporting and educating commercial real estate tenants across Poland, with on-site courses held in the largest cities in the country. In order to ensure the highest ethical level of services provided, the agency introduced the Code of Good Practice.

1.  The market is still digesting the implications of Wednesday's CPI shock. The dollar has strengthened, yields have risen, the stock market wobbled after a long advancing streak, and in any event, stabilized in light trading during the US and Canadian holidays. However, given the low year-ago reading, there is a significant risk that inflation (including the core rate) will accelerate over the next few months. As a result, the Federal Reserve needs greater flexibility to raise rates sooner than it has envisioned.   The main restraint now is the pace of tapering.  The FOMC committed to reducing its bond-buying by $15 bln in November and December.  Its statement indicated that it anticipated maintaining the rate afterward, but the FOMC also reserved the right to adjust the pace if necessary. Thus, accelerating the tapering is the most likely course of action.  Bullard had suggested completing the tapering by the end of Q1.  If this is to become the majority view, there may be some effort to prepare the market.   Recently a rally in US bonds was attributed to talk that Governor Brainard could replace Powell as Fed chair.  The argument was that Brainard was more dovish.  Is this really relevant now?  Does it count as a strike against her?  With Yellen's apparent support, Powell is most likely to get re-appointed, and given that CPI is at 30-year highs, conventional thinking favors maintaining a stable hand at the helm. 2.    The dollar's gains accelerated since the higher than expected CPI report.  The euro was in a $1.15-$1.17 range last month and broke out on Wednesday.  Follow-through selling Thursday brought to about $1.1445.  We have suggested the next target is a little below $1.1300.   The jump in yields helped lift the greenback from below JPY112.80 above JPY114.00.  The five-year high set on October 20 was around JPY114.70, while we project the upper end of the likely range closer to JPY115.00. 3.  Disappointing economic data contributed to the losses of sterling and the Australian dollar.   Economists (Bloomberg survey) expected Australia to have created 50k jobs in October, but, instead, it lost 46.3k jobs for the third consecutive monthly decline.  The bulk of the loss (40.4k) were full-time positions, which reversed the 26.7k increase reported in September.  The unemployment rate jumped to 5.2% from 4.6%, the highest since April.  The Australian dollar peaked near $0.7550 in late October and fell below $0.7300 on Thursday, for the first time in a month.  The next target is around $0.7240-$0.7260.   The UK reported a significant slow down in Q3 GDP to 1.3% from 5.5% in Q2. Expectations for a 1.5% quarter-over-quarter expansion  (Bloomberg survey) seemed on the high side.  However, the September monthly GDP rose 0.6%, and the better than expected rise was offset but a reduction in the August GDP to 0.2% from 0.4%. The industrial output contracted in September. The trade deficit deteriorated after a dramatic revision in the August balance (to -GBP1.880 bln from -GBP3.716 bln, while services accelerated (0.7% from a revised 0.1% gain that had initially reported at 0.3%).  Sterling, which had been pushing near $1.36 before the Bank of England's meeting and slipped to a marginal new low for the year on Wednesday but still held above $1.34 (barely).  It fell to $1.3360 on Thursday. The next chart support area is seen around $1.3165-$1.3185. 4.  The joint US-China statement at COP-26 is promising.  It was the key to the Paris Agreement in 2015.  There was a commitment to boost efforts to cut emissions and illegal deforestation.  The gap between current policies and what is necessary was acknowledged, and there appeared to be an agreement in principle to reach an agreement on climate finances and rules for a carbon market.  The joint statement must have been in the works even as Biden criticized Xi for the lack of commitment for not attending COP-26.  There is still much speculation about a "virtual summit," which is supposed to signal something more than two phone calls the leaders have held this year.  The environment was also recognized where cooperation was possible.  Still, Beijing refused to join the US-EU commitment to cut methane admissions and opted for its own plan.   The geopolitical competition is unaffected by the joint statement. Meanwhile, the more pressing geopolitical threat is coming from the movement of Russian forces to the Ukraine border.  Reports suggest the US has briefed Europe on a possible Russian invasion of Ukraine.  Hostilities are said to have escalated recently.  Recall that Russia had amassed forces (~100k soldiers, tanks, and aircraft) in the Spring too.  It triggered a flurry of talks, and Moscow removed (redeployed) its forces.  Russia defended the troop movement within the country as an internal affair but has accused the US of provocation for sailing warships into the Black Sea, close to its territory last week.  Putin also reportedly was critical of Ukraine's alleged use of drones, which violated a previous agreement.  Meanwhile, tensions on the Polish-Belarus border remain tense.  Merkel sought Putin's help recently to defuse the situation, but he refused.   Belarus is thought to be instigating a migration crisis and has threatened to shut down a critical gas pipeline to the EU if Poland keeps its border closed.  These developments may have contributed to some pressure on the euro.   5.  The Mexican peso fell by around 0.5% after the central bank lifted the overnight rate to 5.00%. It is the third quarter-point move in the cycle that began in June.   The swaps market has nearly 90 bp of tightening discounted over the next three months and almost 220 bp in the next 12 months.  Banxico lifted its Q4 inflation forecast to 6.8% from 6.2%.  The one dissent (Esquivel, again) was to stand pat.  There was no vote for a 50 bp move, which contributed to the dovish read of the rate hike.  October CPI, reported earlier this week, is at 6.24% year-over-year,  6.   Friday's economic calendar is light.  Little new data from the large Asia Pacific and European countries.  The North American calendar is minimal.  The US JOLTS report on job openings and the University of Michigan's preliminary estimate of November sentiment and inflation expectations.   NY Fed's Williams is the lone speaker from the central bank and may not address monetary policy directly.  There are three sets of chunky options that expire tomorrow that may be relevant:  1.23 bln euros at $1.1460, $1.75 bln at JPY114.00, and GBP690 mln at $1.3320.   Disclaimer

Overview:  While the Belarus-Poland border remains an intense standoff, there have been a couple other diplomatic developments that may be exciting risk appetites today.  First, Biden and Xi will talk by phone later today.  Second, reports suggest the UK has toned down its rhetoric making progress on talks on the implementation of the Northern Ireland Protocol.  Equities in the Asia Pacific region were mostly firmer, with China a notable exception among the large markets, even though the October data was generally stronger than expected.  Europe's Stoxx 600, which has fallen only once this month, is edging higher to new records, while US futures are enjoying a firmer bias.  Benchmark 10-year yields are 1-2 bp lower, which puts the Treasury yield near 1.55%.  The European periphery is outperforming the core.  The dollar is soft.  The Scandis and Antipodeans lead the move, while the euro, yen, and British pound are little changed.  Emerging market currencies are also mostly stronger.  Here the Philippine peso is notable as it falls the most in seven weeks as corporates bought dollars.  After falling by 0.65% last week, the JP Morgan Emerging Market Currency Index is edging higher today.  Gold is snapping a seven-day rally, stalling near $1868.  Support is seen in the $1842-$1845 area.  January WTI  was sold again as it poked above $80.  It is pinned near last week's lows (~$78.65) as the US response is awaited.  European natural gas futures are firm as the capacity auction results are awaited, and Europe faces its first cold snap of the season.  Iron ore and copper prices are posting small losses.   Asia Pacific Japan's Q3 GDP disappointed, but it is old news and will likely spur Prime Minister Kishida to support a large supplemental budget, which could be unveiled by the end of the week.  Economic growth in the world's third-largest economy contracted for the fifth quarter in the past eight.  The 0.8% loss of output in Q3 was more than the 0.2% expected by the median forecast in Bloomberg's survey.  Consumption (-1.1%), business spending (-3.8%), and public investment (-1.5%) did the most damage.  The GDP deflator was unchanged from Q2 at -1.1%.  The Japanese economy is recovering here in Q4.  Talk of the size of the supplemental budget has increased to around JPY40 trillion (~$350 bln) from JPY30 trillion.  It is expected to include a cash payment for 18-year olds and younger, a tax break for companies that boost wages, a new subsidy for domestic travel, snd pay hikes for caregivers. China's October data was stronger than expected but does not shake off concern that the world's second-largest economy is struggling.  The year-over-year pace of retail sales rose for the second consecutive month in the face of expectations for a decline.  The 4.9% increase follows the 4.4% gain in September and 2.5% in August. In October 2020, it rose 4.3% year-over-year.  Industrial output rose 3.5% from a year ago. It was the first increase since March. Last October, it had increased by 6.9%. The surveyed joblessness was steady at 4.9%.  Fixed asset investment and property investment slowed.  Chinese officials have not addressed the economic slowdown with large-scale fiscal or monetary initiatives.   We have suggested that the dollar-yen exchange rate has entered a new range after trending higher from mid-September through mid-October.  That new range is likely JPY113-JPY115, and to find the floor, the dollar briefly traded below JPY112.80 last week. After spiking back to JPY114.00 on the US CPI surprise, the greenback continues to hover around there, the middle of the range.  Tomorrow's expiring options ($830 mln at JPY113.40 and $1.6 bln at JPY114.30) may mark the near-term range.  The Australian dollar is building on its pre-weekend recovery.  It saw a low slightly above $0.7275 on Friday and settled on its highs (a little above $0.7330).  It has risen to $0.7365, and the intraday momentum is getting stretched.  Look for resistance near $0.7375.  The greenback edged slightly lower against the Chinese yuan to record a new six-month low (~CNY6.3785) before recovering within a narrow range.  It is trading slightly above CNY6.3830 in late dealings. The PBOC set the dollar's reference rate at CNY6.3896, a little below the median forecast of CNY6.3896 (Bloomberg survey).  The PBOC rolled over in full the policy loans (CNY1 trillion) coming due this month, and the overnight repo rate fell by seven basis points to 1.78%, the lowest in three weeks.   Europe Tensions between the UK and EU appear to have taken a step away from the brink.  A deal on medicine supplies from other parts of Great Britain to Northern Ireland may have been the critical catalyst.  Reports suggest a de-escalation of UK rhetoric threatening to invoke Article 16, which allows for unilateral over-riding of the Northern Ireland Protocol under certain circumstances of serious economic, environmental, or societal risks.  Separately, two polls have begun showing Labour is edging ahead of the Tories. The Opinium poll (published in the Guardian) gave Labour a one percentage point lead, the first since January.  The Savanta Com Res poll (for the Daily Mail) put Labour ahead by six percentage points at 40%.  The main issue appears to be Prime Minister Johnson's handling of several ethics issues.  His personal support has also waned.    The US was warning at the end of last week that Russian may be preparing to invade Ukraine. Moscow seems to be acting out of fear, fear of the US and Europe creeping presence in Ukraine.  If Ukraine is going to remain independent, Russia insists it can only be a (weak) buffer state.  US rhetoric seemed aggressive in Moscow.  Last month US Defense Secretary Austin argued that no third country [i.e., Russia] has a veto over NATO membership decision[i.e., Ukraine].    Poland, Lithuania, and Latvia are considering formally requesting NATO consultations, while the EU is expected to announce new sanctions on Belarus later today.  Separately, we note reports that India has begun taking delivery of the S-400 air defense missile system from Russia (part of a $5.5 bln deal), which is the same that earned Turkey American sanctions.   The euro edged above the pre-weekend high, but the tone remains fragile, and for the third consecutive session has been unable to resurface above old support at $1.1500.  Since the US CPI report in the middle of last week, it has fallen, and the sideways movement could alleviate the overextended technical condition.  Sterling extended its pre-weekend recovery to reach $1.3440 before sellers reemerged to knock it to the session low of almost $1.3400.  We suspect it can move higher in North America today and target the $1.3480 area.   America The US seems more eager for the Biden-Xi call than Beijing  Expectations should be low, and with no actionable outcome likely (not even a statement), there appears to be little reason to spin it as a virtual summit. The top officials and the senior staff of the two largest economies should talk.  Previously, there were high-level meetings regularly.  Since their last call, a new US-UK-Australian alliance was announced that will result in Australia acquiring nuclear-powered submarines, and it was confirmed that the US has had military personnel in Taiwan since last November.  China continues with its intimidation campaign of repeatedly entering Taiwan's air-identification zone. China's assessment of the US is unlikely to have changed.  Beijing sees the same thing many others do.  Biden's approval rating has fallen to near 41%, and less than that has a favorable view of his handling of the economy.  At the end of last week, the Univerity of Michigan's consumer sentiment measure (preliminary November) fell to its lowest in a decade.  Surveys continue to point to the likelihood that the Democratic Party will lose both houses of Congress in next year's mid-term.  And to underscore the pressure on Biden, the US Court of Appeals (5th Circuit) sustained a block on OSHA's ordered vaccine mandate (or weekly test).  With the sixth plenum over,  Xi has, by all accounts, confirmed his ascendancy and domination of Chinese politics for years to come.   The week's economic calendar for the US begins off slowly.  The November Empire State manufacturing survey is on tap.  It has been in a sawtooth pattern, alternating between gains and losses for the past five months.  It fell sharply (19.8 from 34.3) in October and is expected to have turned up in November.  The US reports October retail sales and industrial production figures tomorrow. Fed officials begin taking to the public stage starting tomorrow.  Over the course of the week, around 11 officials are scheduled to speak.  In addition to US bills, the Treasury Dept sells 20-year bonds, whose auctions have been among the most challenging for coupons, and 10-year TIPS at the end of the week.   Canada reports September manufacturing and wholesale sales today, but the October existing home sales may be more important.  Tomorrow Canada reports housing starts, but the highlight of the week is Wednesday's October CPI.  Price pressures are accelerating in Canada, and the headline CPI is likely to move toward 5% (4.4% in September).  The swaps market is pricing in about 65 bp of tightening in six months.  This week, Mexico has a light economic diary after last week's higher than expected CPI (6.24%) and Banxcio's 25 bp rate hike (to 5%).  Brazil also has a light economic calendar this week.  Last week featured a further rise in (IPCA) CPI (10.67% vs. 10.25%) and weak September retail sales (-1.3% vs. -0.6% median forecast in Bloomberg's survey after a revised -4.3% fall in August). Last week's US CPI shocker saw the greenback jump from around CAD1.24 to slightly above CAD1.26, roughly the 50% retracement of the slump from CAD1.2900 on September 20.  It settled last week on a soft note, and some follow-through selling has seen the US dollar eased to about CAD1.2525.  A break here sees CAD1.2500 and then possibly CAD1.2470.  Since last September, the greenback has moved into a new and higher range against the Mexican peso.  It has not traded much below MN20.12.  Nor has it spent much time above MXN20.90.  It is in the pre-weekend range (~MXN20.45-MXN20.72).  Look for the consolidative day to continue through the local session.  The Brazil real was the strongest emerging market currency last week, rising almost 1.6% against the US dollar.  The US dollar found support around BRK5.40. Trendline support (from June, August, and September lows) and the 200-day moving average are near BRL5.36.   Disclaimer

Overview: The prospects that the 6.2% CPI will prompt the Fed to move quicker continue to underpin the dollar.  The euro fell to about $1.1265, its lowest level since last September, and the Japanese yen slumped to a fresh four-year low.  The JP Morgan Emerging Market Currency Index tumbled 1% yesterday, the largest decline since February.  A more stable tone is evident in Europe, as the euro has recovered above $1.13, and the JP Morgan Index is paring yesterday's losses.  The dollar is holding just below JPY115.00.  Asia Pacific equities did not fare well.  Only China and Taiwan markets, among the large regional markets, managed to rise.  Europe's Stoxx 600 is edging higher for the sixth consecutive session.  Recall it has fallen only once since October 27.  US futures are narrowly mixed. The bond market is quiet, with the US 10-year hovering around 1.62%.  European yields are a little softer.  Gold slid below $1850 yesterday but has snapped back today to test the $1860 area.  Crude oil is heavy, with the January WTI contract around $78.80, unable to resurface above $80 amid talk that the US and China may coordinate the release of strategic holdings.  Gas prices are up another 7% in Europe today after surging 16% yesterday and 9% on Monday. Due to "unplanned maintenance," a Belarus pipeline to Poland has been shut down, which may last three days.  Iron ore prices are giving back around half of yesterday's 1.2% gain, for the third loss in four sessions.  Copper is off for a third session, losing after dropping 2.2% in the past two sessions.   Asia Pacific Japan's October trade data disappointed.  Exports and imports were weaker than expected, and this resulted in a smaller deficit. Exports slowed to 9.4% year-over-year, down from 13% in September, defying expectations for a small double-digit increase.  Imports were up 26.7% from a year ago, off the heady 38.2% pace seen in September and below the 31.8% projected.  The resulting trade deficit of JPY67.4 bln was about a fifth of what economists anticipated (Bloomberg survey).  It is the third consecutive monthly deficit.  In the first seven months of the year, Japan recorded two deficits.  A year ago, Japan recorded a JPY840 bln surplus.   Reports suggesting that the possibility that the US and China coordinate the drawdown of strategic oil reserves are light on details, but the suggestion itself is enough to weigh on prices.  Still, the International Energy Agency yesterday echoed the broad assessment of America's EIA in anticipating that the tightness of the oil market could ease shortly.   Increased output in the US, Saudi Arabia, and Russia may account for half of the 1.5 mln barrel a day anticipated increase in supply. Nevertheless, the acting head of the EIA warned tapping the US Strategic Petroleum Reserve would have a short-term impact, for which other dynamics would quickly overshadow it.  Separately, note that the API estimated a slight build of 655k barrels in US stocks this past week, while gasoline inventories fell.   In other regional developments, Australia's wage price index rose a modest 0.6% in Q3 for a year-over-year pace of 2.2%.  This was in line with expectations.  It would seem to support the RBA's argument that it need not be in a hurry to raise rates.  The June 2022 T-bill yield settled last month at 69 bp and is now near 40 bp.  Separately, China appears to be allowing "high quality" property developments to return to the asset-backed securities market to raise capital after a three-month hiatus. Lastly, reports suggest Beijing is moving ahead with its import substitution plans to reduce dependency on foreign technology.    The dollar approached JPY115.00, where an option for almost $610 mln expires today.  The dollar has not traded above there since March 2017.  Since the dollar broke above JPY112.00, we have suggested that JPY114.50-JPY115.00 may mark the top of the new range.  While this has worked for the past month, the risk is on the upside.  A convincing break of around JPY115.50 would target the JPY118.00 area.  Initial support is now seen near JPY114.70.  Note that the upper Bollinger Band is slightly below JPY114.80.  The Australian dollar is trading near its lowest level since October 6, near $0.7265.  It is holding above a trendline connecting the August and September lows, which is found near $0.7250 today, but little stands in the way of a test on the $0.7200 in the coming days.  An option for a little more than A$800 mln at $0.7300 is set to expire today.  After posting a key upside reversal yesterday, the US dollar consolidated against the Chinese yuan today, and no follow-through buying materialized.  Instead, it seemed that the local market took advantage of the pop above CNY6.39 to sell the greenback, which is straddling CNY6.38 in late dealings.  The reference rate was set at CNY6.3935, just below the bank projections (CNY6.3936, according to the median in the Bloomberg survey).  We note that the yuan is also at its best level since 2015 against the trade-weighted CFETS basket the PBOC uses.   Europe On the heels of a strong employment report, the UK reported a larger than expected increase in the October CPI.  The preferred measure, which includes owner-equivalent housing costs, jumped to 3.8% from 2.9%.  The older measure rose to 4.2% from 3.1%.  On the month, consumer prices rose 1.1% rather than the 0.8% economists forecast (Bloomberg median). Flattered by increasing gas and electricity prices.  Core prices rose 3.4% year-over-year, accelerating from 2.9% in September and defying forecasts for a 3.1% pace.  Separately, producer prices, both input and output, also rose more than expected.  Lastly, UK house prices rose 11.8% year-over-year in September, up from a revised 10.2% in August.  The recent peak was 12.6% in June, which was the highest since 2004.    European gas prices are at one-month highs.  Belarus has stopped its pipeline to Poland, claiming unplanned maintenance issues, while the border tensions and earlier threats raise suspicions of a political move.  Separately, the German regulator suspended the certification process of the controversial Nord Stream 2 pipeline as corporate assets are rearranged.  Separately, a German court yesterday dismissed an environmental challenge to the pipeline.  Lastly, we note that the virus flare-up continues in Europe, and Germany and the Czech Republic reported a record number of cases. The euro surpassed our $1.1290 Fibonacci target and did not find bids until the $1.1265 area in Asian turnover.  The single currency has been in a tight range in Europe, holding above $1.1300.  Initial resistance is seen around $1.1330 now.  A move above yesterday's high, near $1.1385, is needed to lift the tone. We suspect the near big target is closer to $1.10.  Sterling slipped to a three-day low, slightly below $1.34, but shot up to the session high near $1.3375 on the inflation news. However, the momentum was not sustained, and sterling is little changed in late morning European turnover near $1.3430. The euro briefly traded below GBP0.8400 for the first time since March 2020 but snapped back.  An 840 mln euro option at GBP0.8445 expires today and another for about 620 mln euros at GBP0.8450 expires tomorrow.   America US retail sales surged last month, and the 1.7% rise was the best since March.  After slowing in Q3, consumption is off to a strong start in Q4.  Industrial production was also much stronger than expected, rising 1.6% compared with the 0.9% gain anticipated by economists (median, Bloomberg survey).  The US reports October housing starts today, and they are expected to have recovered from the 1.6% decline seen in September. Housing starts fell in Q3 but are seen rising in Q4, encouraged by an easing of some supply chain issues.   In fact, on several fronts, there are preliminary signs that the disruptions are dissipating.  Some reports suggest that the shortage of semiconductor chips may be passed, and US auto sales rose in October for the first time in six months.  Both the EIA and IEA have forecast a more balanced oil market, and some measures of shipping costs have moderated. The Los Angeles port has reportedly reduced the number of empty containers by around a quarter this month as six new sweeper ships have been brought into operation.  In addition, we note that the re-opening of US borders means immigrant workers may begin returning.  There is still much debate, of course, on the extent that the elevated price pressures are the result of supply chain disruptions.  A report by the Bank for International Settlements estimates that without the supply problems, US inflation would be closer to 2.5% and eurozone inflation near 1.5%. President Biden is expected to make his Fed announcements in the next few days, according to reports, but it could slip into early next week.  Powell is still the favorite, and he has Treasury Secretary Yellen's in support.  Yellen warns that action is needed soon on the debt ceiling.  Her efforts may be exhausted early next month.  Lastly, San Francisco Fed President Daly opined she was more bullish on the economy than a year ago.  This seems backward to us.  A year ago, the vaccine was announced, and fiscal stimulus was anticipated after the US election. Going forward, there will be less monetary and fiscal stimulus.  The pent-up demand ("excess savings") is projected to be exhausted by early next year, and, as we have noted, the doubling of the price of oil has preceded the last three recessions in the US. We suspect that there is sufficient stimulus and need to rebuild inventories to sustain reasonably strong growth for the next few quarters, but by the second half of next year, sub-3% growth will return as the norm.  Canada reports October CPI figures today.  The headline is likely to rise to 4.7% from 4.4% in September (Bloomberg median).  However, the base effect points to a further rise this month and December, when in 2020, the CPI rose 0.1% and fell 0.2%, respectively.   The underlying core rates are also increasing.  The Deputy Governor of the Bank of Canada cautioned about the high degree of uncertainty around potential structural shifts in the labor market that make it challenging to gauge full employment with any degree of confidence.  He pointed to economic areas that still show slack.  The market is expecting the first hike next March/April.  Note that tomorrow, the "Three Amigos" (Biden, Trudeau, and AMLO) meet in the US amid concern that the US "Build Back Better" has strong nationalistic elements, including for electric vehicles.     The US dollar posted an outside up day against the Canadian dollar yesterday, and follow-through buying has lifted it to around CAD1.2585.  At the end of last week, the high set was slightly above CAD1.2600, which close approximates the (50%) retracement of the greenback's decline since the September 20 high near CAD1.29.  The next retracement (61.8%) is found by CAD1.2665.  Still, we expect that a firm CPI report will lend the Loonie some support.  The session low, set in late Asia, near CAD1.2540, may be protected a CAD1.2545 option for $600 mln that expires today.  The greenback is consolidating against the Mexican peso today after rallying yesterday from about MXN20.56 to nearly MXN20.85.  The high from earlier this month was near MXN20.98.  It has not been above MXN21.00 since March.  Initial support is seen around MXN20.60.   Disclaimer

From quarter to quarter, more and more warehouses are built in our country, resulting in Poland ranking second in Europe in terms of resources under construction. New players are also entering our market Despite the record-high amount of space under construction, new supply on the warehouse market in our country is not keeping up with the ever-growing demand. Lease volume recorded in the first half of this year, was three times larger than the amount of the commissioned space. The largest number of warehouses appeared in Upper Silesia, Warsaw and the Tri-City. The amount of warehouse space under construction is similar to the level of lease recorded in the first 6 months of this year. In the second quarter, the warehouse space under construction increased by a third compared to the previous quarter. According to Walter Herz, most logistics facilities remain in Upper Silesia, in Western Poland and in Poznan. A total of over 1.5 million sq m. of space is under construction in these three regions. The scale of the increase in warehouse resources ranks Poland second in Europe, after Germany. New investors The group of investors active on our market in the warehouse sector is also growing. Recently, Scandinavian fund NREP started its expansion in Poland, finalizing the purchase of logistics portfolio of 130 thousand sq m. of space and planning activities in the segment of warehouses and apartments. LCube company, after starting the investment in Jasionka near Rzeszow, recently launched its second warehouse project near Wroclaw. - Developers are also taking up speculative ventures today, because the demand for warehouses remains at a record high level. Recently, facilities in the area of city logistics have been very popular. Nevertheless, all segments of the warehouse market remain on the path of growth. The largest transactions are concluded by companies from the e-commerce sector, logistics operators are also invariably in high demand - informs BartÅ‚omiej Zagrodnik, Managing Partner/CEO of Walter Herz. - Market observers agree that the demand for warehouses in our country, as in Europe, will continue to grow. First of all, thanks to the forecasted, further increase in online sales and the development of e-commerce, as well as the expected expansion of tenants from the manufacturing industry - adds BartÅ‚omiej Zagrodnik. Emerging warehouse centers Warsaw remains the largest logistics hub in the country, where demand for warehouse space in 2020 reached 1.2 million sq m. and resources exceed 5 million sq m. The second, largest warehouse center in Poland is Upper Silesia, with stock reaching almost 4 million sq m. of space. The next position is occupied by the warehouse hub located in the central part of Poland, where approximately 3.3 million sq m. of space is located. Wroclaw and Poznan also belong to the group of the largest logistics centers. The potential of the largest warehouse markets in our country is constantly growing, but smaller logistics centers are also experiencing intense growth. The Tri-City, Szczecin and the center in Western Poland will join the centers offering over 1 million sq m. of warehouse space after the completion of the current construction projects. New warehouse investments are multiplying all over the country. In Lower Silesia, on the 20 ha plot, Panattoni has started the construction of Panattoni Park GÅ‚ogów investment, which will provide a total of 111 thousand sq m. of space. The first of the two scheduled buildings will provide 78 thousand sq m. of space. The developer is also starting the implementation of another project in this region - Panattoni Park BolesÅ‚awiec, which will bring 50 thousand sq m. of warehouses. In addition, Panattoni has started the next stage of construction of their largest investment in Lower Silesia - WrocÅ‚aw Campus 39 - in Wierzbice near Wroclaw. It will offer a total of 150 thousand sq m. of space. Large facilities near Wroclaw GLP is building WrocÅ‚aw V Logistics Center, the largest warehouse project currently under construction in the Wroclaw agglomeration. 5 buildings of approximately 240 thousand sq m. are to be erected on 50 ha of land. Moreover, the construction of a facility offering 41 thousand sq m. has already started in Magnice near Wroclaw. Hillwood Polska is also building in Lower Silesia. Nearly 90 thousand sq m. of warehouses will be built in Sycow. The first building will bring over 44 thousand sq m. of space. Mountpark Logistics has also started construction. The first phase of the investment will provide 35 thousand sq m. of space, and the entire warehouse and logistics complex Mountpark WrocÅ‚aw will offer 140 thousand sq m. of warehouses. In Gorzow Wielkopolski, MLP Group purchased a 12 ha plot designated for a modern logistics and distribution center MLP Gorzów Wielkopolski with a lease area of 52 thousand sq m. Accolade company has also invested in the expansion of warehouses in this city, acquiring further investment areas. The company is planning on constructing industrial warehouses of almost 100 thousand sq m. At the western border, by the national road No. 24, Hillwood Rokitno logistics center of 112 thousand sq m. is also being built. The company is currently also implementing Hillwood Bydgoszcz investment of a similar size. Also in Swiebodzin, in Lubuskie Province, Amazon has recently opened its tenth logistics center in Poland, providing 193 thousand sq m. Szczecin under development New warehouse facilities are also emerging in Szczecin. Accolade company has acquired two industrial properties there. Modern warehouse spaces with a total of 73 thousand sq m. will be built on the land. The currently implemented stage of the project at Kniewska Street in Szczecin will include 31 thousand sq m. of space. In Goleniow, Panattoni Park Goleniów with a target area of 54 thousand sq m. is under construction. Nearly 20 thousand sq m. has been built so far. Pruszcz Logistics is preparing an investment in Bedzieszyn, which will bring about 50 thousand sq m. Apart from the warehouse hall, the project will include an office building. GLP, in turn, plans to implement the next stage of the Pomeranian Logistics Center in Gdansk. Another 39 thousand sq m. of warehouse and production space is to be built in the vicinity of the DCT Gdansk container terminal. Further investments in Poznan MLP Group is expanding the MLP PoznaÅ„ West project near Poznan. Another 43,000 sq m. of warehouses will be built in the complex in DÄ…brówka. P3 is going to build a building providing 82.5 thousand square meters in P3 PoznaÅ„ park for Westwing, The company offers the possibility of extension with additional 27 thousand sq m. In addition, Panattoni Park PoznaÅ„ East Gate with 45 thousand sq m. will be built on a plot of 10 hectares in SwarzÄ™dz minicipality near Poznan. Good Point, a Real Management brand, is also planning the construction of warehouses and technology parks near Warsaw, on land in the municipalities of Gora Kalwaria and Karczew. In Strykow in the Lodz province, in the vicinity of the junction connecting the A1 and A2 motorways, Mountpark Logistics is preparing a warehouse and logistics center which will provide 245 thousand sq m. New warehouses in Upper Silesia The largest warehouse investment in Upper Silesia is GLP LÄ™dziny Logistics Center, where 111 thousand sq m. is to be delivered. In Gliwice, MDC2 company has purchased a plot of 13.4 ha designated for a warehouse and logistics facility. MDC2 Park Gliwice complex is to consist of three buildings with 52 thousand sq m. of warehouse space. In addition, European Logistics Investment has started the construction of a second warehouse building in Silesia. The implementation of Park Tychy II investment is to bring 43 thousand sq m. of space. In Miedzyrzecze, 7R company will also build a specialized warehouse with about 20 thousand sq m. for the production company Aluprof. Retailers are building facilities Chain brands are also investing in logistics. Jeronimo Martins is already building the seventeenth distribution center for Biedronka in our country. A complex of warehouse and logistics halls with 54 thousand sq m., will be built in Stawiguda near Olsztyn on a 9 hectare plot. ALDI chain, which plans to open 40 stores in Poland, is to have a new distribution center located near Bydgoszcz, with over 43 thousand sq m. Recently, Lublin province also issued a building permit for the largest logistics park in Europe. In Malaszewicze, a modern cargo transshipment hub between Asia and Europe is to be built in the current dry port, which after the expansion will quadruple its capacity. The construction of the logistics park, which will occupy a key place on the New Silk Road route, is planned to start in 2022, and its implementation will take 5 to 6 years. The investment will cost over PLN 3 billion. Half of the funds are to come from the state budget. About Walter Herz Walter Herz company is a leading Polish entity which has been operating in the commercial real estate sector across the country. For nine years, the company has been providing comprehensive and strategic investment consulting services for tenants, investors and real estate owners. It provides extensive support for both public and private sector. Walter Herz experts assist clients in finding and leasing space, and give advice when it comes to investment and hotel projects. In addition to its headquarters in Warsaw, the company operates in Cracow and the Tri-City. Walter Herz has created Tenant Academy, first project in the country, supporting and educating commercial real estate tenants across Poland, with on-site courses held in the largest cities in the country. In order to ensure the highest ethical level of services provided, the agency introduced the Code of Good Practice.

December 01, 2021  $USD, Macro The pandemic is still with us as the year winds down and has not yet become endemic, like the seasonal flu.  Even before the new Omicron variant was sequenced, Europe was being particularly hard hit, and social restrictions, especially among the unvaccinated, were spurring social strife.  US cases, notably in the Midwest, were rising, and there is fear that it is 4-6 weeks behind Europe in experiencing the surge.  Whatever herd immunity is, it has not been achieved.  Moreover, despite plenty of vaccines in high-income countries, inoculation efforts in many low-income countries won't begin in earnest until next year.   That said, the new variant has injected a new element into the mix, and it is with a heightened degree of uncertainty that we share our December outlook.  Given the unknowns, policymakers can choose the kind of error they are willing to make. They are trying to minimize their maximum regret.  The utmost regret is that the mutation is dangerous and renders the existing vaccines and treatment significantly less effective.  This will leave them vulnerable to accusations of over-reacting if the Omicron turns out to be a contagious but less deadly variation.   Meanwhile, there has been some relief to the supply chain disruptions.  Covid-related factory closures in Asia, the energy shortage, and port congestion are easing. Large US retailers have stocked up for the holiday shopping season, some of which chartered their own ships to ensure delivery. There are also preliminary signs that the semiconductor chip shortage may be past its worst.  Indeed, the recovery of the auto sector and rebuilding of inventories will help extend the economic expansion well into next year, even though fiscal and monetary policy are less supportive for most high-income countries.  The flash November US manufacturing PMI saw supplier delivery delays fall to six-month lows.   We assume that the US macabre debt ceiling ritual will not lead to a default, and even though it distorted some bill auctions, some resolution is highly probable.  The debate over the Build Back Better initiative, approved by the House of Representatives, will likely be scaled back by moderate Democratic Senators and Republicans.  Besides assessing the risks posed by the new variant, the focus in December is back on monetary policy.  Four large central banks stand out.  The Chinese economy has slowed the People's Bank of China quarterly monetary report modified language that signals more monetary support may be forthcoming.  Many observers see another reduction in reserve requirements as a reasonable step.  Unlike in the US and Europe, which saw bank lending dry-up in the housing market crisis (2008-2009), Beijing is pressing state-owned banks to maintain lending, including the property sector.   The Federal Reserve meets on December 15.  There are two key issues.  First, we expect the FOMC to accelerate the pace of tapering to allow it to have the option to raise rates in Q2 22.  The Fed's commitment to the sequence (tapering, hikes, letting balance sheet run-off) and the current pace of tapering deny the central bank the needed flexibility.  The November CPI will be reported on December 10.  The headline will likely rise to around 6.7%, while the core rate may approach 5%.  Second, the new "Summary of Economic Projections" will probably show more Fed officials seeing the need to hike rates in 2022.  In September, only half did.  The rhetoric of the Fed's leadership has changed.  It will not refer to inflation as transitory and is signaling its intention to act.  The European Central Bank and the Bank of England meet the day after the FOMC.  The ECB staff will update its forecasts, and the key here is where it sees inflation at the end of the forecasting period.  In September, it anticipated that CPI would be at 1.5% at the end of 2023.  Some ECB members argued it was too low.   It may be revised higher, but the key for the policy outlook is whether it is above the 2% target.  We doubt that this will be the case.  While the ECB will likely announce that it intends on respecting the current end of the Pandemic Emergency Purchase Program next March, its QE will persist. The pre-crisis Asset Purchase Program is expected to continue and perhaps even expand in Q2 22.  The "modalities" of the post-emergency bond-buying program, size, duration, and flexibility (self-imposed limits) will be debated between the hawks and doves.  With eurozone inflation approaching 5% and Germany CPI at 6%, the hard-money camp will have a new ally at the German Finance Ministry as the FDP leader Linder takes the post.  On the other hand, the Social Democrats will name a Weidmann's replacement at the head of the Bundesbank, and nearly anyone will be less hawkish.   While we correctly anticipated that the Bank of England would defy market expectations and stand pat in November, the December meeting is trickier.  The decision could ultimately turn on the next employment and CPI reports due 1-2 days before the BOE meeting.  The risk is that inflation will continue to accelerate into early next year and that the labor market is healing after the furlough program ended in September.  On balance, we suspect it will wait until next year to hike rates and finish its bonds purchases next month as planned.   Having been caught wrong-footed in November, many market participants are reluctant to be bitten by the same dog twice. As a result, the swaps market appears to be rising in about a 35% chance of a 15 bp move that would bring the base rate up to 25 bp.  Sterling dropped almost 1.4% (or nearly two cents) on November 4, the most since September 2020 when the BOE failed to deliver the hike that the market thought the BOE had signaled.   The combination of a strong dollar and the Fed tapering weighed emerging market currencies as a whole.  The JP Morgan Emerging Market Currency Index fell by about 4.5% in November, its third consecutive monthly decline, bringing the year-to-date loss to almost 10%.  It fell roughly 5.7% in 2020.  Turkey took the cake, though, with the lira falling nearly 30% on the month.  It had depreciated by 15% in the first ten months of the year.  This follows a 20% depreciation last year.  Ten years ago, a dollar would buy about 1.9 lira.  Now it can buy more than 13 lira.  The euro's weakness was a drag, and the geopolitical developments (e.g., Ukraine, Belarus) weighed on central European currencies. The central bank of Hungary turned more aggressive by hiking the one-week deposit rate by 110 bp (in two steps) after the 30 bp hike in the base rate failed to have much impact.  The forint's 3.1% loss was the most among EU members.   Colombian peso was the weakest currency in Latam, depreciating by almost 5%. It was not rewarded for delivering a larger than expected 50 bp rate hike in late October.  Bannockburn's GDP-weighted global currency index (BWCI) fell by nearly 1% in November, the largest monthly decline since June.  It reflected the decline of the world's largest currencies against the dollar.  Three currencies in the index proved resilient  On the GDP-weighted basis, China has immense gravity, with a 21.8% weighting (the six largest EM economies, including China, account for a 32.5% of the BWCI). It appreciated by about two-thirds of a percent. The Brazilian real managed to rise (~0.25%) too.  Since the day before the Omicron variant was sequenced, the Japanese yen gained a little more than 2%, reversing the earlier decline that had brought it to four-year lows.  It rose by  0.7% in November, making it the strongest currency in the index.  Among the major currencies, the Australian dollar fell the most, declining about 5.2%.  The Canadian dollar was next, with around a 3% loss.   As it turns out, the dollar (Dollar Index) recorded its low for the year as shocking events were unfolding in Washington on January 6.  The bottomed against the yen and euro the same day.   The greenback did not bottom against the Australian dollar until February, but it took it until early June to put in a low against sterling and the Canadian dollar.  The BWCI peaked in early June and, by the end of last month, had retreated by about 2.7%.  We suspect it may decline by another 2%, which would return it the levels of late 2019.  That, in turn, implies the risk of a stronger dollar into the first part of next year.     Dollar:  The jump in US CPI to above 6%, and a strong sense that it is not the peak, spurred speculation that the Federal Reserve would likely accelerate the pace of tapering at the December meeting. Several Fed officials seemed sympathetic, including San Francisco President Daly, who is perceived to be a dove. The minutes of the November meeting underscored the central bank's flexibility over the pace of tapering.  At the same time, most of the high-frequency data for October came in stronger than expected, lending credence to ideas that after a disappointing Q3, the world's largest economy is accelerating again in Q4.  The divergence of monetary policy and the subsequent widening interest rate differentials is the primary driver of expectations for dollar appreciation against the euro and yen.  The market had been leaning toward three rates hikes in 2022 before news of the new Covid mutation emerged and trimmed the odds.  Powell was renominated for a second term at the helm of the Federal Reserve, Brainard was nominated to be Vice-Chairman.  There is still the Vice-Chair for supervision and an empty governor seat for President to Biden to fill.  In addition to the changes in leadership, the rotation of the voting members of the FOMC brings in a somewhat more hawkish bias next year.   Euro:  In contrast with the US, eurozone growth is set to slow in Q4. After two quarters that growth exceeded 2% quarter-over-quarter, growth is likely to moderate to below 1% in Q4 21 and Q1 22.  Food and energy are driving inflation higher.  The EC continues to negotiate with the UK over changes to the Northern Ireland Protocol.  The dispute over fishing licenses and migrant crossing of the channel are also unresolved sources of tension with the UK. Tensions between the EC and Poland/Hungary over the rule of law, judicial independence, and civil liberties have also not been settled.  As was the case in the spring, Russia's troop and artillery movement threatened Ukraine, though the tension on the Poland/Belarus border has eased.  The ECB's leadership continues to maintain the price pressures are related to the unusual set of circumstances but are ultimately temporary.  Its December 16 meeting, the last one before Bundesbank President Weidmann steps down, is critical. In addition to confirming the end of the Pandemic Emergency Purchase Program in March 2022, and the expansion of the Asset Purchase Program, the ECB staff will update its inflation forecasts.  The focus here is on the 2023 CPI projection of 1.5%.  There was a push back against it in September, and a slight upward revision is likely. Nevertheless, it will probably remain below the 2% target.  The swaps market is pricing in a 25 bp hike in 2023.   (November indicative closing prices, previous in parentheses)   Spot: $1.1335 ($1.1560) Median Bloomberg One-month Forecast $1.1375 ($1.1579)  One-month forward  $1.1350 ($1.1568)    One-month implied vol  7.1%  (5.1%)         Japanese Yen:  Japan has a new prime minister who has put together a large fiscal stimulus package that will help fuel the economic recovery that had begun getting traction since the formal state of emergency was lifted at the end of September.  After a frustratingly slow start, the inoculation efforts have started bearing fruit, with vaccination rates surpassing the US and many European countries.  Unlike most other high-income countries, Japan continues to experience deflationary pressures.  Food and energy prices may be concealing it in the CPI measure, but the GDP deflator in Q2 and Q3 was  -1.1%. However, the BOJ does not seem inclined to take additional measures and has reduced its equity and bond-buying efforts.  The exchange rate remains sensitive to the movement of the US 10-year note yield, which has chopped mostly between 1.50% and 1.70%. With a couple of exceptions in both directions, the greenback has traded in a JPY113-JPY115 range.  The emergence of the new Covid mutation turned the dollar back after threatening to break higher.  A convincing move above the JPY115.50 area would likely coincide with higher US rates and initially target the JPY118 area.    Spot: JPY113.10 (JPY113.95)       Median Bloomberg One-month Forecast JPY113.30 (JPY112.98)      One-month forward JPY113.00 (JPY113.90)    One-month implied vol  8.2% (6.4%)   British Pound:  Sterling never fully recovered from disappointment that the Bank of England did not hike rates in early November.  Market participants had understood the hawkish rhetoric, including by Governor Bailey, to signal a hike.  The implied yield of the December 2021 short-sterling interest rate futures plummeted by 30 bp by the end of the month, and sterling has not seen $1.36, let alone $1.37, since then.  Indeed, sterling chopped lower and recorded new lows for the year in late November near $1.3200.  Growth in the UK peaked in Q2 at 5.5% as it recovered from the Q1 contraction.  It slowed to a 1.3% pace in Q3 and looks to be slowing a bit more here in Q4.  The petty corruption scandals and ill-conceived speeches by Prime Minister Johnson have seen Labour move ahead in some recent polls.  An election does not need to be called until May 2024, but the flagging support may spur a cabinet reshuffle.  The next important chart point is not until around $1.3165 and then the $1.30 area, which holds primarily psychological significance.       Spot: $1.3300 ($1.3682)    Median Bloomberg One-month Forecast $1.3375 ($1.3691)  One-month forward $1.3315 ($1.3680)   One-month implied vol 7.5% (6.8%)      Canadian Dollar:  The Canadian dollar appreciated by almost 2.4% in October and gave it all back, plus some in November.  Indeed, the loss was sufficient to push it fractionally lower for the year (-0.4%), though it remains the best performing major currency against the US dollar.   The three major drivers of the exchange rate moved against the Canadian dollar last month.  First, its two-year premium over the US narrowed by 17 bp, the most in four years.  Second, the price of January WTI tumbled by around 18.2%.  Commodity prices fell more broadly, and the CRB Index snapped a seven-month rally with a 7.8% decline.  Third, the risk appetites faltered is reflected in the equity markets. The Delta Wave coupled with the new variant may disrupt growth.  Still, the swaps market has a little more than two hikes discounted over the next six months.   The government is winding down its emergency fiscal measures, but the spring budget and election promises mean that the fiscal consolidation next year will be soft.     Spot: CAD1.2775 (CAD 1.2388)  Median Bloomberg One-month Forecast CAD1.2685 (CAD1.2395) One-month forward CAD1.2770 (CAD1.2389)    One-month implied vol 7.2% (6.2%)      Australian Dollar:  The Australian dollar fell by more than 5% last month, slightly less than it did in March 2020.  It did not have an advancing week in November after rallying every week in October.  Australia's two-year premium over the US was chopped to less than 10 bp in November from nearly 28 bp at the end of October.  The Reserve Bank of Australia pushed back against aggressive rate hike speculation.   The unexpected loss of jobs in October for the third consecutive month took a toll on the Australian dollar, which proceeded to trend lower and recorded the low for the year on November 30, slightly below $0.7065.  A break of $0.7050 would initially target $0.7000, but convincing penetration could spur another 2-2.5-cent drop.  The 60-day rolling correlation between- changes in the Australian dollar and the CRB commodity index weakened from over 0.6% in October to below 0.4% in November. The correlation had begun recovering as the month drew to a close.       Spot:  $0.7125 ($0.7518)        Median Bloomberg One-Month Forecast $0.7195 ($0.7409)      One-month forward  $0.7135 ($0.7525)     One-month implied vol 9.7%  (9.1%)        Mexican Peso:  The broadly stronger US dollar and the prospects of more accelerated tapering weighed on emerging market currencies in November, but domestic considerations also weighed on the peso.   The Mexican peso fell by around 4.1%, the most since March 2020.  The economy unexpectedly contracted by 0.4% in Q3.  There is little fiscal support to speak of, while monetary policy is becoming less accommodative too slowly compared with some other emerging markets, such as Brazil.  Price pressures are still accelerating, and the bi-weekly CPI rose above 7% in mid-November. The swaps market discounts nearly a 25 bp hike a month for the next six months.  The government's policies, especially in the energy and service sectors, are not attractive to investors.  President AMLO dealt another blow to investor confidence by retracting the appointment of former Finance Minister Herrera for his deputy to head up the central bank starting in January.  This is seen potentially undermining one of the most credible institutions in Mexico.  Lastly, Mexico's trade balance has deteriorated sharply in recent months and through October has recorded an average monthly trade deficit of nearly $1.2 bln this year.  In the same period, in 2020, it enjoyed an average monthly surplus of almost $2.5 bln, and in the first ten months of 2019, the average monthly trade surplus was a little more than $150 mln.     Spot: MXN21.46 (MXN20.56)   Median Bloomberg One-Month Forecast  MXN21.23 (MXN20.42)   One-month forward  MXN21.60 (MXN20.65)     One-month implied vol 14.9% (9.6%)      Chinese Yuan:  The Chinese yuan has been remarkably stable against the US dollar, and given the greenback's strength, it means the yuan has appreciated sharply on a trade-weighted basis.  Going into the last month of the year, the yuan's 2.6% gain this year is the best in the world.  Chinese officials have signaled their displeasure with what it sees as a one-way market.  At best, it has orchestrated a broadly sideways exchange rate against the dollar, mainly between CNY6.37 and CNY6.40. The lower end of the dollar's range was under pressure as November drew to a close.   Even though the Chinese economy is likely to accelerate from the near-stagnation in Q3 (0.2% quarter-over-quarter GDP), it remains sufficiently weak that the PBOC is expected to consider new stimulative measures.  It last reduced reserves requirements in July, and this seems to be the preferred avenue rather than rate cuts.  Yet, given the interest rate premium (the 10-year yield is around 2.85%), record trade surpluses ($84.5 bln in October), portfolio inflows, and limited outflows, one would normally expect a stronger upward pressure on the exchange rate.    Spot: CNY6.3645 (CNY6.4055) Median Bloomberg One-month Forecast  CNY6.38 (CNY6.4430)  One-month forward CNY6.3860 (CNY6.4230)    One-month implied vol  3.5% (3.5%)    Disclaimer

December 07, 2021  $USD, Canada, China, Currency Movement, Germany, Hungary, Japan, Mexico, RBA, Russia, US Overview:  A return of risk appetites can be seen through the capital markets today, arguably encouraged by ideas that Omicron is manageable and China's stimulus.  Led by Hong Kong and Japan, the MSCI Asia Pacific rose by the most in three months, while Europe's Stoxx 600 gapped higher, leaving a potentially bullish island bottom in its wake.  US futures point to a gap higher opening when the local session begins.  The bond market is taking it in stride.  The US 10-year Treasury is slightly firmer at 1.44%, while European yields are 1-3 bp higher.  The dollar-bloc currencies and Norway are leading the move higher among most major currencies.  The yen and euro are softer.  Sterling struggles to sustain upticks. Among emerging markets currencies, the Turkish lira is bouncing, while most central European currencies are being dragged lower by the weaker euros.  The JP Morgan Emerging Market Currency Index is slightly higher after four consecutive losses.  Gold is trading within yesterday's narrow range.  Oil continues to recover, and the January WTI contract is up around 2.5% (after yesterday's 4.9% advance) and is above $71.50 a barrel.  US natgas prices dropped 11.5% yesterday and have come back firmer today, while the European benchmark (Dutch) is up 7% today (~+0.5% yesterday) to near last week's highs.  Iron ore prices jumped 7.7% today after 2.5% yesterday, perhaps encouraged by strong Chinese import figures.  Copper prices are also firm.    Asia Pacific The Reserve Bank of Australia stuck to its stance. It may take two years to reach the 2-3% inflation target, and the uncertainties surrounding the Omicron variant also favor a cautious approach. This was in line with expectations.  The swaps market still has about 75 bp of higher rates discounted next year.   The Australian dollar's gains reflect the risk-on mood.   Japan's economy is on the mend.  Household spending rose 3.4% month-over-month in October.  Paradoxically, outlays on medical care actually fell (-5.7%) year-over-year in October.  Meanwhile, Labor cash earnings rose by 0.2% year-over-year, the same as in September, but less than expected.  Households headed by a worker rose 0.5% year-over-year.   China's trade surplus fell to $71.7 bln in November from $84.5 bln in October.  The US accounted for a little more than 50% of the surplus (~$37 bln).  Exports rose by 22% year-over-year, less than the 27.1% increase in October.  But, what really stood out were China's imports.  They surged, jumping 31.7% from a year ago after a 20.6% increase in October.  Commodity imports were robust.  The 35 mln tons of coal imported was the most this year. Oil imports were at three-month highs.  Iron ore imports reached a 13-month high,  Gas purchases were the highest since January.  Copper imports appear to be a record.  Separately, China reported that the value of its foreign exchange reserves rose by a minor $4.7 bln to $3.222 trillion.  Economists (Bloomberg survey median) had expected around an $11 bln decline.   The dollar has forged what appears to be a solid base now around JPY112.55.  So far, today is the first session since November 26 that the greenback has held above JPY113.00.  It has been confined to a narrow range between JPY113.40 and JPY113.75.  The dollar looks poised to move higher but may stall around JPY114.00, where an option for around $865 mln expires today.  The Australian dollar rose about half of a cent yesterday and is up around another half-cent today to test $0.7100.  An option for A$1.04 bln expires today there ($0.7100).  It is also the (61.8%) retracement objective of last week's drop.  A move above there would target the $0.7130 area and possibly $0.7200.  The reduction in Chinese banks' reserve requirements and the divergence with the direction the Fed appears headed did not deter the yuan from strengthening.  The dollar held CNY6.38 yesterday and is near CNY6.3660 now.  The low for the year was set at the end of May near CNY6.3570.  The dollar's reference rate was set at CNY6.3738, a touch higher than the models (Bloomberg survey) projected of CNY6.3734.   Europe According to the proverb, for want of a nail, a kingdom was lost.  US intelligence warns that Russia is poised to invade Ukraine.  Beijing continues to act as a bully in the South China Sea.  US President Biden is hosting a "Summit for Democracy" December 9-10.   Reportedly 110 countries will be represented, even Taiwan, which the US officially does not recognize as a country.  All of the EU members have been invited but Hungary.  Hungary, like Poland, is in a serious fight with the EC over the rule of law.  It is being fined for failing to comply with the European Court of Justice over its harsh treatment of asylum seekers.  Poland, which is invited to the summit, is also being fined a record 1 mln euros a day for deviations from the EU standards of the rule of law.   Yet Hungary's exclusion is needlessly antagonistic.  Hungary will hold parliamentary elections in April (though possibly May), and the opposition is united behind the center-right Marki-Zay.  Most polls show him ahead of Orban.   It is an insult to the EU, and Orban used his veto to block the EU from formally participating and prevented it from submitting a position paper.  It is a vulnerable position for the US to be the judge and jury about democracy and the rule of law.   Laura Thorton, director of the Alliance for Securing Democracy of the German Marshall Fund of the United States, expressed shock and dismay in a recent Washington Post op-ed over developments in Wisconsin. She wrote, "If this [where the GOP is seeking to replace the bipartisan oversight of elections with just its party's control] occurred in any of the countries where the US provides aid, it would immediately be called out as a threat to democracy.  US diplomats would be writing furious cables, and decision-makers would be threatening to cut off the flow of assistance."  Separately, the US embassy in Tokyo warned Japan about "racially profiling incidents" following the closure of its borders to new foreign entries into the country.   The US response to the Russian aggression in Georgia in 2008 and the annexation of Crimea in 2014 was soft.  Despite bringing NATO to Russia's door in the Baltics, the US recognized by its actions that it is difficult to defend what Russia calls its near-abroad. Ukraine is different.  When Ukraine gave up its nuclear weapons, the Budapest Memorandum  (1994), Russia, the US, and the UK committed to respecting its independence and territorial integrity.  Russia clearly violated the agreement, but the US says it is not legally binding.  Nevertheless, reports indicate that the Biden administration is contemplating new sanctions against Russia and Putin's inner circle.  Reportedly under consideration is removing Russia from the SWIFT payment system and new sanctions of Russia's energy companies, banks, and sovereign debt.  In late April, the European Parliament approved a non-binding resolution to exclude Russia from the SWIFT if it attacked Ukraine.  Russia is a heavy user of SWIFT, as few foreign banks, including the Chinese, are willing to use Russia's own payment system.  After a dismal factory orders report, the market had been prepared for a poor industrial output report today.  Instead, Germany surprised with its strongest gain for the year.  Industrial output surged 2.8% in October.   It is only the third monthly gain this year.  Moreover, September's decline of 1.1% was halved to 0.5%.  It appears auto production (capital goods) may be behind the improvement in activity.  Separately, the ZEW survey was mixed.  The expectations component was stronger than expected, but still, at 29.9, lower than November's 31.7 reading.  The assessment of the current situation deteriorated sharply to -7.4 from 12.5.  It has been declining since September, but this is the lowest since June.  On November 30, the euro spiked higher and has subsequently worked its way lower.  Today, it reached almost $1.1250, its lowest level since November 30, low near $1.1235. The 20-day moving average (~$1.1320) continues to block the upside.  It has not closed above it for a little more than a month.  The low for the year so far was recorded on November 24 near $1.1185.  For its part, sterling remains in its trough. The low for the year was set on November 30, slightly below $1.32.  Before the weekend, it was in a roughly $1.3210-$1.3310 range and remains well within that range yesterday and today.  It has been blocked ahead of $1.3300.  There is an option for about GBP450 mln at $1.3250 that expires today.   America The US is expected to report that productivity fell in Q3 by 4.9% rather than the 5% that was initially reported.  Productivity increased by 2.4% in Q2 and 4.3% in Q1.  It averaged 2.6% last year and 2.3% in 2019.  Unit labor costs are the most holistic measure, including wages, benefits, and output.  Looking at a four-quarter moving average, unit labor costs rose 1.6% in 2018 and 1.45% in 2019.  They jumped to 6.25% last year and fell by an average of 0.85% in H1 21.  The initial estimate for Q3 was an 8.3% surge.   The US also reports the October trade balance.  The preliminary goods balance signaled a likely improvement from the $80.9 bln deficit in September.  The median forecast (Bloomberg) sees a deficit of slightly less than $67 bln.  Through September, the monthly average was nearly $71 bln, up from $53.3 bln in the same period last year and less than a $50 bln average in the first nine months of 2019. Late in the session, the US reports October consumer credit, and another substantial increase is expected.  It jumped almost $30 bln in September.  It has averaged $20.275 bln a month through September.  Last year was too distorted, but in the first three quarters of 2019, consumer credit rose by an average of $15.3 bln a month.    Canada reports its October merchandise trade figures today, ahead of the Bank of Canada meeting tomorrow  The median forecast in Bloomberg's survey call for a C$2.08 bln surplus, which, if accurate, would the be third largest surplus since 2008.  The June surplus was larger at C$2.26, as was the December 2011 surplus of C$2.12 bln.   Canada's goods trade balance through September swung into surplus with an average of C$703 mln.  In the same period in 2020, the monthly deficit averaged C$3.1 bln and  C$1.4 bln in 2019.  The merchandise surplus may be sufficient to lift the current account too.  Canada has been running a current account deficit since 2009.   The OECD forecasts a surplus this year of 0.3% of GDP and projects it to be in balance next year.  Canada and Mexico have expressed concerns about the credits for electric vehicles in the Build Back Better US initiative.  They claim it violates the USMCA.  Europe has expressed similar problems, and the EU Trade Commissioner Dombrovskis has reportedly sent a formal letter warning that the Biden administration's efforts may also violate WTO rules.  Meanwhile, there is talk that the initiative may be blocked this year.  If this is the case, the odds of passage next year seem even slimmer.  On a different front, Mexico's controversial energy reforms, which expand the state sector, over some objections by US energy companies, look to be delayed due to lack of support.  The US dollar posted an outside up day against the Canadian dollar before the weekend, despite Canada's strong employment report.  There was no follow-through yesterday, and the greenback recorded an inside day and settled on its lows.  The US dollar has been sold to around CAD1.2700 today.  Initial support is around CAD1.2675, but the more significant test is near CAD1.2640.  A break would strengthen the conviction that a high is in place.  Meanwhile, the greenback continues to consolidate against the Mexican peso.  It remains within the range set last Wednesday (~MXN21.1180-MXN21.5150).  Thus far today, it is holding above yesterday's low (~MXN21.1720), which was- above the pre-weekend low (~MXN21.1625).            Disclaimer

December 08, 2021  $USD, Bank of Canada, Currency Movement, Germany, India, Japan, Poland, Russia Overview:  The capital markets are calmer today, and the fear that was evident at the end of last week remains mostly scar tissue. Led by gains in Japan, China, Australia, New Zealand, and India, the MSCI Asia Pacific Index extended yesterday's gains.  Europe's Stoxx and US futures are firm.  The US 10-year yield is softer, around 1.43%, while European yields are mostly 1-2 bp lower.  The Norwegian krone and euro lead major currencies higher against the greenback, but the New Zealand dollar and sterling are underperforming. Most of the emerging market currencies are enjoying an upside bias. The Turkish lira is giving back a little more than half of yesterday's 2.25% bounce.  Gold is edging higher and is near the 200-day moving average (~$1792).  January WTI is off $1 around  $71 after rallying around 8% in the past two sessions.  API reported a three million barrel drawdown in inventories but a big jump in Cushing.   US natural gas is consolidating and paring Monday's 11.5% drop.  Europe (Dutch) natural gas prices are rising for the third consecutive session and around 10% this week.  Iron ore has extended this week's rally and is at the highs since October.  Copper is flat.   Asia Pacific Australia has joined the US in the diplomat boycott of the winter Olympics in Beijing.  South Korea and Japan have not formally decided yet.  China's quarantine policies made it difficult for many diplomats to attend in any event, and many apparently will not attend.  Beijing threatens unspecified retaliation.   Japan reported an increase in its October current account, rising to JPY1.18 trillion from JPY1.03 trillion in September.  The swing in the trade balance from a JPY230 bln deficit to a JPY167 bln surplus more than accounted for it.  Japan also revised Q3 GDP to a 0.9% contraction (from -0.8%).  The composition changed.  Consumption was a greater drag (-1.3% quarter-over-quarter rather than -1.1%), and inventories contributed less (0.1% vs. 0.3%) and net exports were flat (rather than contribute 0.1 percentage points).  Business investment was less a drag (-2.3% vs. -3.8%).  Still, there is reason to be more optimistic about the outlook for the world's third-largest economy.  Social restrictions have eased, the vaccination rate is among the best, and the government is providing fresh stimulus.  The Kishida government is expected to finalize its fiscal efforts toward the end of the week. A key issue is the tax incentive (subsidy) for companies that boost wages by 3%, which has not happened since 1997.   India left its key rate corridor on hold today.  The repo rate is 4%, and the reverse repo rate is 3.35%.  Some observers saw the possibility of a hike in the reverse repo rate.  The monetary policy committee voted unanimously to keep the repo rate steady.  The reverse repo rate is a broader issue decided by the central bank, not the MPC.  The emergence of Omicron may have encouraged the central bank to maintain a steady hand, while the cut in the excise duty and VAT for petrol and diesel may help ease price pressures.  It made some technical changes in its liquidity management, which some see as a prelude to a hike in February 2022, when the central bank meets again.   The dollar is consolidating in a narrow 30-point range above JPY113.35 against the Japanese yen.  Yesterday's high was just below JPY113.80.  An option for about $550 mln will roll off today at JPY114.25, while there is a nearly $1.5 bln option at JPY114.00 that expires tomorrow.  The JPY114 area also holds the 20-day moving average, which the dollar has not closed above since November 25. The Australian dollar began the week flirting with the $0.7000 area.  It is rising for its third consecutive session and has reached almost $0.7145 today.  Last week's highs were set a little above $0.7170.  Despite words of caution by Chinese officials and the cut in reserve requirements, the yuan continues to march higher.  It is at new three-year highs today.  The dollar has been sold down to almost CNY6.3455.  Local dollar bonds and bonds below investment grade have rallied as officials signal a focus on supporting the economy.  Today the rate for re-lending to rural and small businesses was cut by 25 bp.  The PBOC has also been generous with its liquidity provisions.  The reference rate for the dollar was set at CNY6.3677, a little firmer than expected (CNY6.3665, Bloomberg survey).    Europe An era is formally over today as Germany's new government takes office.  The challenges it faces are profound.  The virus was surging even before the Omicron variant was detected.  The economy has been hobbled.  Inflation is high (6% on the harmonized measure in November) and without the fiscal stimulus seen in the US, where CPI is up 6.2% from a year ago (October).  This year, the German deficit is estimated to be about 5.8% and seen falling to 2.5% next year.  The US deficit is around 12.5% this year and is expected to fall to around 6.5% in 2022. Russia is amassing troops, and fears that it will invade Ukraine early next year are running high.  Germany reportedly will nix the controversial Nord Stream II pipeline if Russia carries through with its threat as part of the economic sanctions being considered.  Italy's Draghi has had a bit of a honeymoon, but that will change.  Two of the three largest unions will strike on December 16 to protest Draghi's budget, which must be passed by the end of the month.   Moreover, the selection of a new Italian president in January may mark the beginning of the political process that will lead to a new parliamentary election by the middle of 2023.  The president of Itlay is chosen by the Italian Parliament and regional representatives.  The current president, Mattarella, has declined to run for a second term.  Draghi does lead any political party, but the latest surveys show the center-left Democratic Party is in first place, polling a couple percentage points higher than it got in the last election at 21.4% support.  The Brothers of Italy on the right are in second place with slightly less than 20% support.  The Five Star Movement has seen its fortunes slip to about 15%.  Poland's central bank is set to hike its base rate today.  It will be the third consecutive increase.  The base rate was slashed from 1.50% last year to 10 bp.  It was hiked by 40 bp in October and 75 bp last month to stand at 1.25%. The headline CPI surged from 2.4% at the end of last year to 7.7% in November. Czech and Hungary have been more aggressive in raising rates.  Last month, Czech's central bank delivered a 125 bp increase to lift its key two-week repo rate to 2.75%.   It was at 25 bp to start the year.  Its CPI is near 6%.  Hungary has raised its base rate every month since June and taken it from 60 bp to 2.10%.  It has also taken its one-week deposit rate from 75 bp to 3.10%, with 130 bp delivered in the past three weeks. Earlier today, it reported that CPI rose to 7.4% last month from 6.5%.  Most look for a 50 bp increase from Poland's central bank today.   The euro briefly dipped below $1.1230 yesterday but recovered in the North American afternoon.  It is extending the recovery today and traded $1.1300 in the European morning.  The $1.1310-$1.1320 offers nearby resistance.  The UK government is being embarrassed by reports about its holiday party a year ago in violation of the social restrictions in place at the time.  It adds to the sleaze factor that has weakened it.  The latest polls show that the Labour Party is extending its lead.  Also, ideas that the BOE could raise rates next week have diminished and been pushed into next February.  Sterling is heavy, near $1.3200.  We have warned of near-term risk toward $1.3165, the (38.2%) retracement objective of the rally from the March 2020 low near $1.14.   America A deal appears in the works to lift the US debt ceiling.  The maneuver requires 60 votes to allow the debt ceiling to pass with a simple majority.  The Republican leadership appears willing to go along with this.  It will likely set a new precedent that will be used and possibly expanded when control of Congress changes.  PredictIt.Org shows that the Republicans are favored to win control of both houses in next year's mid-term election.   The US calendar today features the JOLTS report on job openings.  The week's highlight, the November CPI, is out on Friday, and both the headline and core rates are expected to accelerate.  Fed officials are in the blackout period ahead of next week's FOMC meeting.  Today's North American feature is the Bank of Canada meeting.  No one expects a change in rates.  It is more about the rhetoric.  Despite the uncertainty surrounding the Omicron variant, Bank of Canada officials are likely to be more confident about the strength of the recovery.  Last week's jobs data adds to the positive impulses.  Moreover, the government is providing more fiscal support.  The biggest challenge is that the market has discounted five hikes over the next 12 months.  This is aggressive and difficult for the central bank to get ahead of market expectations. Even after the strong Canadian jobs data at the end of last week, the US dollar closed firmly above CAD1.28, showing the Loonie's vulnerability to the risk-off wave.  However, as cooler heads have prevailed, the Canadian dollar has bounced back.  The US dollar closed below the 20-day moving average yesterday (~CAD1.2670) for the first time in a month and was sold to about CAD1.2620 today. The (38.2%) retracement of the greenback's rally since the October 21 low (below CAD1.23) is found near CAD1.2640. The next retracement (50%) is around CAD1.2570.  Initial resistance now is likely by CAD1.2680.  The greenback also closed below its 20-day moving average against the Mexican peso yesterday for the first time since November 9.  It has slipped below MN21.00 today for the first time in about two-and-a-half weeks.  With today's loss, the US dollar has retraced (61.8%) of its rally from November 9 low (~MXN20.2750). The move seems exaggerated, and consolidation is likely.  Nearby resistance is seen in the MXN20.05-MXN20.10 area.  Disclaimer

Macro 2021-12-10 08:30 6 minutes to read Summary:  Risk sentiment has consolidated after sharp gains earlier this week as the market nervously eyes the US November CPI release today from the US and whether this will trigger a more hawkish FOMC meeting next week. The US White House has already been out attempting damage control from the inflation headlines today, saying that the data will not reflect recent declines in gasoline and other prices.   What is our trading focus? Nasdaq 100 (USNAS100.I) and S&P 500 (US500.I) - US equities and particularly tech stocks consolidated a significant chunk of the sharp gains from earlier this week, with speculative sectors getting the worst of it on the day, although most stocks were down on the day. A high US November CPI release today could spook investors as it would raise the anticipation of an even more hawkish FOMC meeting next week. EURUSD – The EURUSD rally attempt from Wednesday faltered in what now looks a mere tactical squeeze ahead of today’s US November CPI report (more below). Given that the slide in EURUSD has largely tracked with the rise in Fed expectations, the degree to which those expectations are adjusted higher or lower in the wake of today’s US CPI data and then next week in the wake of the FOMC meeting Wednesday and ECB meeting Thursday will likely correlate with EURUSD direction, where the focus is on the cycle lows just below 1.1200 for a possible run at 1.1000 on a break lower and the tactical pivot high near 1.1380. USDJPY and JPY crosses – the omicron variant news of some two weeks ago triggered a huge slide in USDJPY just after it was trying to engineer a break above multi-year highs near 114-50. Similar to developments in crude oil and longer US yields, USDJPY has failed to get back to the upper reaches of the recent range since that sell-off, which bottomed out near the 112.50 area – the current trigger zone for a possible further sell-off wave (most like in a scenario of cratering risk sentiment and US treasuries serving as a safe-haven) that could poke at the important 111.00-50 downside pivot zone. Elsewhere, JPY crosses backed up very sharply this week on hopes that the omicron variant will prove mild and won’t impact the growth outlook, but the scale of the rally or squeeze has been modest relative to the prior sell-off. Watching areas like 127.50-128.00 in EURJPY and 79.00 in AUDJPY in coming sessions for whether another wave of JPY strength is in the cards. Crude oil’s (OILUKFEB22 & OILUSJAN22) week-long rally hit the buffers yesterday with Brent and WTI retracing back towards support at their 200-day moving averages at $73 and $69.80 respectively. A study finding the omicron variant is 4.2 times more transmissible than the delta combined with new restrictions among several nations helped weaken the sentiment, and with end of year approaching many traders are increasingly becoming more risk adverse, potentially leading to more fluctuations. Focus today on omicron news, US inflation data and whether the mentioned support level can be maintained. Wheat (WHEATMAR22 & ZWH2) trades near five-week low following three days of losses which accelerated yesterday after the USDA raised its outlook for global stocks. The 3% drop in Chicago also helped drag down the recent highflyers futures for Kansas and Paris milling wheat. Global stock levels at the end of the 2022-23 season received a boost from production upgrades in Russian (1mt) and Australian (2.5mt) while US export slowed with high prices curbing demand. US Treasuries (TLH, TLT).  Yesterday’s 30-year auction showed that the market is not willing to buy long-term US Treasuries at current low yields. The 30-year auction was priced with a high yield of 1.895%, tailing by 3.2bps. Although the tail was smaller than last month’s 5.2bps, it would have been enough to cause a selloff in long-term Treasuries. However, covid distortions kept yields compressed, hence volatility in rates was avoided. Today’s CPI numbers are in focus as a high number is likely to contribute to more upward pressure in the yield curve. What is going on? The US White House was already out attempting damage control on inflation before today’s CPI release. A White House official, economic adviser Brian Deese, was out late yesterday saying that today’s US November CPI release won’t reflect recent drops in the price of key commodities, especially gasoline and natural gas as it is “backward looking”. China property developers formally declared to have defaulted - as Fitch Ratings noted missed interest payments on Evergrande and Kaisa Group Holdings USD bonds as it downgraded these issues to restricted default. USDCNY and USDCNH bounce sharply a day after posting new low for the year - China fixed the USDCNY level at a far weaker level than expected and announced an FX reserve ratio increase to 9%, forcing domestic banks to maintain higher reserves of foreign currencies.  These are rather obvious signals that China would like to avoid a further rise in its currency after a powerful and broad rally that saw both the offshore and onshore yuan posting new highs for the US dollar for the year just this Wednesday. Bitcoin and other cryptocurrencies close sharply lower – with Bitcoin closing at its lowest levels on a weekday since September. Technically, the 40-45k zone looks important for avoiding a more significant capitulation lower after the recent weekend meltdown that took the price some 20% lower to below 43k before support was found. According to coinmarketcap.com, the market cap of the nearly 15.5k cryptocurrencies is currently near $2.26 trillion after peaking near $2.93 trillion in November, a drawdown of over 22%. What are we watching next? US November CPI data release today, expected at 6.8% year-on-year for the headline number and 4.9% at the core, both of which would be the highest readings in decades. Given that expectations are so high, would a slightly hotter than expected number move the needle on a Friday ahead of next week’s important FOMC meeting? A significant beat to the upside just might make a difference, given that the Fed has clearly made a shift toward fighting inflation and would probably need to bring a March 2022 rate hike possibility into its forward guidance. Fed rate expectations for next year are poised near the high for the cycle, suggesting a 0.8% Fed Funds rate (vs. currently 0-0.25%) is priced in through the December 2022 Fed meeting. The EU is set to decide by December 22 whether investments in gas and nuclear energy should be labelled climate friendly. The design of the EU green investment classification system is closely watched by investors worldwide and could potentially attract billions of euros in private finance to help the green transition, especially given the need to reduce the usage of coal, the biggest polluter. Economic calendar highlights for today (times GMT) 0905 – ECB President Lagarde, others speaking at panel discussion1300 - Poland National Bank of Poland meeting minutes1330 – US Nov. CPI1500 – US Dec. Preliminary University of Michigan Sentiment Follow SaxoStrats on the daily Saxo Markets Call on your favorite podcast app: Apple Spotify Soundcloud Sticher

  Inflation is high and doesn’t seem to be going away anytime soon. However, gold is not rising. The question is – what does the Fed have to do with it? Inflation is not merely transitory, and that’s a fact. Why then isn’t gold rallying? Isn’t it an inflation-hedge? Well, it is - but gold is a lazy employee. It shows up at work only when inflation is high and accelerating; otherwise, it refuses to get its golden butt up and do its job. All right, fine, but inflation is relatively high! So, there have to be other reasons why gold remains stuck around $1,800. First of all, central banks are shifting their monetary policy. Global easing has ended, global tightening is coming! Actually, several central banks have already tightened their stance. For example, among developed countries, New Zealand, Norway, and South Korea have raised interest rates. Brazil, the Czech Republic, Hungary, Mexico, Poland, Romania, and Russia are in the club of monetary policy hawks as well. Even the bank of England could hike its policy rate this year, while the Fed has only announced tapering of its asset purchases. So, although central banks will likely maintain their dovish bias and real interest rates will stay negative, the era of epidemic ultra-loose monetary policy is coming to an end. We all know that neither the interest rates nor the central banks’ balance sheets will return to the pre-pandemic level, but the direction is clear: central banks are starting tightening cycles, no matter how gentle and gradual they will be. This means that monetary policy is no longer supportive of gold. The same applies to fiscal policy. It remains historically lax despite fiscal stimulus being pulled back. Even though Uncle Sam ran a fiscal deficit of $2.8 trillion in fiscal year 2021 - almost three times that of fiscal year 2019 ($0.98 trillion) - it was 12% lower than in fiscal year 2020 ($3.1 trillion). This implies that the fiscal policy is also tightening (despite the fact that it remains extravagantly accommodative), which is quite a headwind for gold. Investors should always look at directional changes, not at absolute levels. What’s more, we are still far from stagflation. We still experience both high inflation and fast GDP growth, as well as an improving labor market. As a reminder, the unemployment rate declined from 5.2% in August to 4.8% in September. The fact that the labor market continues to hold up relatively well is the reason why the so-called Misery Index, i.e., the sum of inflation and unemployment rates, remains moderate despite high inflation. It amounted to 10.19 in September, much below the range of 12.5-20 seen during the Great Inflation of the 1970s (see the chart below). So, the dominant narrative is about both inflation and growth. When people got vaccines, markets ceased to worry about coronavirus and started to expect a strong recovery. Commodity and equity prices are rising, as well as real interest rates. These market trends reflect expectations of more growth than inflation – expectations that hurt gold and made it get stuck around $1,800. Having said that, the case for gold is not lost. Gold bulls should be patient. The growth is going to slow down, and when inflation persists for several months, the pace of real growth will decline even further, shifting the market narrative to worrying about inflation’s negative effects and stagflation. Gold should shine then. Wait, when? Soon. The Fed’s tightening cycle could be a turning point. The US central bank has already announced tapering of quantitative easing, which could erase some downward pressure on gold resulting from the anticipation of this event. Additionally, please remember that every notable market correction coincided with the end of QE, and every recession coincided with the Fed’s tightening cycle. Moreover, don’t forget that gold bottomed in December 2015, just when the Fed started hiking the federal funds rate for the first time since the Great Recession, as the chart below shows. However, when it comes to tapering, the situation is more complicated. The previous tapering was announced in December 2013, started in January 2014, and ended in October 2014. As one can see in the chart above, the price of gold initially increased, but it remained in its downward trend until December 2015 when the Fed started hiking interest rates. Hence, if history is any guide, there are high odds that gold may struggle further for a while before starting to rally next year, which could happen even as soon as June 2022, when the markets expect the first hike in interest rates. Thank you for reading today’s free analysis. We hope you enjoyed it. If so, we would like to invite you to sign up for our free gold newsletter. Once you sign up, you’ll also get 7-day no-obligation trial of all our premium gold services, including our Gold & Silver Trading Alerts. Sign up today! Arkadiusz Sieron, PhDSunshine Profits: Effective Investment through Diligence & Care.

PRESS INFO Warsaw, December 20th, 2021 A record year is ahead for the sector of the smaller commercial facilities The growing trend of local awareness and the evolution of shopping habits increased the popularity of commercial convenience stores. Retail parks and small shopping centers have grown in importance, which in result motivates developers to undertake more intense actions. Each quarter, there are more and more investors who are planning to use this format and build commercial facilities. Apart from the flexibility of space and lower rental rates, the advantage of retail parks is their proximity to customers, a key factor in today’s world. - The popularity of smaller retail facilities is best evidenced by the fact that some brands prepare concepts specifically tailored for retail parks and everyday shopping centers. Chain stores have returned to their expansion plans and are starting the talks about leasing space in new locations. The discount sector, by locating its new outlets in retail parks, strengthens its position. Also, fashion brands, which previously limited their activity only to stores in galleries, started to look for new sales channels and thus have been turning up in smaller facilities. New brands are also entering our market, such as the DIY store Hipper.pl, with plans to locate a chain of it’s stores in retail parks - informs Agata Karolina Lasota, Managing Director at LBC Invest. The first three quarters of this year has already brought a greater increase in space in the retail sector than the entire previous year. During this time, the domestic resources increased by almost 330.000 m2 and according to the estimated data, throughout the 2021 the retail space market will be supplied by around 500.000 m2 of new retail space. – Currently, over 460.000 m2 of retail space is under construction nationwide, including 40 retail parks and convenience centers. In this format, over 200.000 m2 of new space will appear on the market this year, making it a historically record result. And developers are still turning up the heat. Retail parks and small shopping centers already account for over 60 percent of investments projects launched in the last quarter. They are usually built in cities with less than 100.000 residents, where there is a shortage of commercial space and cheaper land. It is a good way for the investors to strategically expand their investment portfolio or diversify their real estate portfolio - says Agata Karolina Lasota. New investment groups, with new brands of everyday shopping facilities started to appear on our market, such as the Polish-German investment group 4FI, which debuted with it’s first center called Mozaika in Krakow. Furniture and construction stores remain active and constantly develop their potential. This year, Agata Meble has commissioned new commercial warehouses in Bydgoszcz, while IKEA commissioned it’s one in Szczecin. Castorama in Zary and Leroy Merlin in Bydgoszcz, as well as Leroy Merlin in Kutno, were opened in buildings previously used by Tesco. A former Tesco facility in Warsaw is also being adapted for Leroy Merlin. The Atut Ruczaj Center in Krakow and Galeria Bawóchanka in Belchatow are expanding and building extensions. Andrychow Gallery was opened in December this year. New parks will be brought out to the market, including Saller Park Lipnik retail and service park, Premium Park Lubrza, Zabkowice Slaskie retail park, Sierpc Retail Park, Tuchola Park, S1 Center in Zlotoryja, Multishop Suwalki, Swinoujscie retail park and Stop Shop Zielona Gora. DS Retail Park is planning to open a retail park in Sosnowiec and Rembelszczyzna, and this year the company wants to commission a retail park in Reda. Fortis Investments is preparing further projects, with a total area of ​​17.000 m2, to be built, i.e., in Opoczno, Ciechocinek, Leczyca and Lowicz. The new retail park from DL Invest Group is being built in Mikolow. - Higher capitalization rates in our country, as compared to the European ones, in some cases reaching 7 %, is a strong impulse to invest in this real estate sector. - Agata Karolina Lasota informs. – Recently in the commercial sector, we have mainly seen transactions involving small real properties. Retail parks and convenience centers are attractive assets for investors. This is also confirmed by the large number of the ongoing negotiations regarding this format of the real properties. We are also talking about projects that are currently only at the stage of preparation for construction - comments the director of LBC Invest. - We have recently concluded contracts for the implementation of comprehensive investment processes, including commercialization of retail parks located in Krakow and two smaller cities in Lesser Poland and Pomerania regions. We are planning to start the implementation of the projects next year, and the design works are currently underway. Investors are both the clients from the African continent and Polish companies with whom we have been working successfully for many years - she adds. The growing demand for convenience real properties has resulted in over a dozen transactions this year, involving smaller shopping centers, mainly located in small towns. LCN, the American fund has acquired a number retail parks, as well as leased Auchan hypermarket chains with a total area of 107.600 m2 and located in Szczecin, Rybnik, Slupsk, Gdansk, Nowy Sacz and Lublin. Other facilities, such as Galeria Malta, Galeria Rumia, and Galeria Pestka, despite requiring a modernization, have also changed their owners.

22 December 2021 Following years of turmoil in retail, 2022 will bring rental growth and increased investment capital to the sector across Europe, according to Savills. The international real estate advisor said that the retail sector is better prepared for changes in consumer habits, while strong retail repricing - which has moved +80bps on average in Europe in the past four years - means retail assets are one of the most competitive real estate sectors. Savills’ European Investment Outlook 2022 identifies best-performing supermarkets and retail warehouses as the most sought-after investment deals, followed by convenience stores, commuting hubs and high street units in strong footfall areas. The report forecasts that prime retail warehouse yields will compress further by 5-10bps on average during the next 12 months, following a 4bps compression in the average prime retail warehouse yield in the last two quarters (to 5.2%). It added that shopping centre yields may start stabilising during 2022, after a 3bps increase to 5.3%. These retail trends are unfolding as investment into European commercial and residential property is on the rise, reaching €78.9bn in Q3 - the highest level recorded in a third-quarter over the past five years. Meanwhile €201.6bn of investment was transacted during the first three quarters of 2021 - a 13.5% jump on last year and a 7.7% increase on the past 5-year average. Savills estimates that the end-year volume will be around €288bn, a 9% increase year-on-year, and a similar total volume of around €290bn in 2022. “These are some stand out figures given the current circumstances,” said Oliver Fraser-Looen, joint head of Regional Investment Advisory EMEA, Savills. “Strong investment activity will continue until the end of the year.” The UK, Germany and France will remain the preferred investment destinations, but as increasing amounts of cross-border capital is invested in the Nordics, the region’s share in the total European volume could continue to expand. Despite growing deal volumes, investors will remain focussed on quality in 2022, particularly in the office sector, and with greater ESG imperatives ahead, property owners will be forced to renovate stock to achieve greener standards or repurpose buildings to embrace social values. Leila Packett, associate director, Regional Investment Advisory EMEA, Savills, said: “This will eventually provide some opportunities for value-add investors. Yet, we do not expect a significant return of the value-add investors at least until 2023, after a significant repricing in secondary asset classes. Historically, we have seen the interest of value-add investors rising in periods when the prime and secondary office yield gap is above 90bps, and during Q3 2021 it was 88bps.” Savills also said greater portfolio diversification would be a theme for years to come, in terms of assets, locations and strategies. The logistics and living sectors will also remain highly sought-after in 2022 and supply and demand imbalances in both sectors will create rental growth. But interest in the alternative sector will further increase as investors seek higher returns in a very low yield environment, said the firm. “Hospitals, universities, data centres, life sciences and urban farming are slowly growing on investors' radars,” said Lydia Brissy, director, Europe research, Savills. “We expect these sectors to gradually emerge as an asset class in the next five years.” Similarly, prime yields may harden by up to 15bps on average in European logistics, while the living sectors may see a 5-10bps yield compression. Michal Stepien, Associate, Investment, Savills Poland, said: “The resumed investor activity is also evident in Poland, where investors follow global trends and growth patterns, looking for stable returns and growth opportunities in order to protect the capital against inflation, as well as for ESG compliance. Industrial is still in the spotlight with offices right behind. There is also a recovering interest in retail, with a particular focus on convenience, standalone supermarkets and retail warehousing, nevertheless, due to limited supply of relevant investment product, the retail sector accounts for less than 14% of the investment volume. A balanced position of shopping centers and more attractive shopping centre yields are conducive to the return of investment capital to the retail sector, however, rising costs of energy and anti-inflation measures of the Central Bank may slow down consumer demand next year, which may adversely affect the turnover of popular chain stores and extend the ‘wait-and-see’ approach to this asset class.”

Warsaw, 15.12.2021 Several companies on our market are already developing their dark store networks, which allow for the delivery of food products within a dozen or so minutes from the order, and new shopping platforms announce their entry onto the Polish market. Things are getting very competitive in the quick commerce segment Quick commerce, which is a segment of express deliveries of basic food products, beverages, sweets, household chemicals and cosmetics, is a format that is now enjoying popularity, both in our country and around the world. Dark stores, distribution microcenters used only to handle orders placed on-line, already operate in the seven largest cities in our country. Due to the limited selection, covering from 1000 to 2000 products, they can’t compete with large retail chains and standard on-line shops offering a huge range of goods. However, they constitute direct competition to small local stores intended for quick, spontaneous shopping to meet the immediate needs. Even so, competition is difficult here due to the narrow range of products. - The development of this form of retail, which guarantees instant deliveries to the customer, favors the strong trend of convenience, related to the expectation of comfortable and easy access to goods. This trend became even more popular during the lockdown. The formula for deliveries within 10-15 minutes, however, requires the creation of a network of properly profiled distribution facilities scattered throughout the city. Dark stores resemble supermarkets measuring several hundred meters, usually from 200 sq m. up to 400 sq m, which are arranged in such a way that the individuals completing the order can efficiently move between the shelves and collect the products in the shortest possible time. They resemble shops, but act as warehouses for storing goods - explains Piotr Szymonski, Director Office Agency at Walter Herz. Free delivery up to 2:00 am Q-commerce on a larger scale began to develop in Poland only this year. The service is popular with a large group of customers. Dark stores offer goods at prices similar to traditional retail outlets. Orders are delivered 7 days a week, also on non-trading Sundays. Lisek, operating in Warsaw, Cracow, Wroclaw, Gdansk, Poznan and Katowice, ensures delivery up to 10 minutes. Completely free delivery is available at JOKR. At Jush, orders over PLN 35 get delivery free of charge. Recent months have brought not only a rapid development of this format in Poland, but also announcements of new large players entering our market. From week to week, companies operating in this segment are expanding their range of activities, providing their service to further city districts. Meanwhile, the express delivery market is already getting crowded. Dark store chains of the first platforms that appeared in Poland, such as Lisek, Jokr, and GetnowX, are growing. The number of Biedronka's distribution points for the Biedronka Express BIEK service, which from this October is being offered in collaboration with Glovo, is growing at a fast pace. This is the second platform that, just like the Lisek App, also functions outside the capital. Deliveries from dark stores scattered in Warsaw, Lodz, Cracow, Gdansk, Poznan and Wroclaw are made within a 2 km radius in a quarter of an hour. Distribution microcenters work throughout the week from 8am to 11pm, and in Warsaw on Fridays and Saturdays even until 2 am. Zabka Future Group chose the Lite E-Commerce start-up, which aims to create new modern convenience solutions. The company has recently decided to launch dark stores and fast food deliveries via the Jush app. This October, Zabka Jush launched in Warsaw. They also plan expansion into the other cities. New purchasing platforms are getting ready to take off in Poland Although the Swyft platform has temporarily suspended its operations after six months, the companies present on our market will soon gain considerable competition. Such companies as Gorillas and Grovy have announced their debuts in Poland. Gorillas, a German start-up specializing in instant deliveries from its own stores-warehouses, forms a project management team in our country. The company, with value that exceeding USD 1 billion just a few months after its establishment, is expanding in Europe. It operates in 15 cities in Germany, as well as in the Netherlands, Great Britain, France, Italy and Belgium. It also made its debut in New York, which will become a hub for the development of the network in the United States. Grovy is also getting ready to enter the Polish market. The platform has already been offering services in the largest cities in Germany and Romania. Now the start-up plans to enter the Polish, Czech and Hungarian markets. Glovo and Wolt specialize in deliveries from various stores. On our market, Glovo cooperates with Biedronka, and in its native Spain, Italy, Portugal, Romania and Ukraine, it operates on the basis of its own distribution facilities. Wolt, on the other hand, wants to launch its Wolt Market, a network of independent virtual supermarkets, in Poland, as it has in the Czech Republic, Denmark and Hungary. Wolt Market is intended to operate only as a dark store and fulfill online orders placed via the Wolt app. The company has launched their first virtual stores in Finland and Greece. One of the first Wolt Market stores also operates in the center of Warsaw. The market is open from 8 am to 11 pm, 7 days a week, and orders over PLN 150 are delivered free of charge within a 1.5 km radius. Soon, Bolt's dark stores are to open in Warsaw. Bolt is another company to offer delivery of goods purchased online within 15 minutes of placing the order. So far, the premiere Bolt Market has been launched only in Tallinn, the capital of Estonia. Pyszne.pl, belonging to the Dutch group Just Eat Takeaway, is also considering extending its services to delivering groceries. However, they do not plan to create their own network of dark stores, but to cooperate with the other stores. Dark stores not in every location - Creating a network of distribution microcenters is a big challenge. The facilities must meet the appropriate location conditions that allow for the rapid shipping of goods. They have to enable express completion of the order from its submission to delivery to the customer's door. Developers of dark stores are looking for space located next to large residential areas in most districts of Warsaw, also in those more distant from the center and in other large cities. They are located not only in commercial buildings, but also on the ground floors of office buildings. The format's potential is best demonstrated by the interest shown by many companies that plan to implement projects on our market - says Piotr SzymoÅ„ski. - The selection of location for dark stores should be based on an analysis of the range and availability of the location, as well as the demographic and transportation aspect. Prospective regions for distribution networks are also those city areas where the implementation of a large number of residential projects is scheduled in the near future. Of course, the technical aspects of the premises should also be taken into account, such as the load-bearing capacity of the ceiling or the ability to charge electric vehicles, which are often used by couriers - adds Piotr SzymoÅ„ski. Market analysis concludes that the constantly growing popularity of online purchases will mean that by 2026, in just 6 years, the value of online sales in Poland will double. Forecasts indicate that the e-commerce sector is facing a period of regular growth. There is still a lot of space for the development of e-commerce in our country. The segment will increase its market share, not only by disseminating new sales formats, but also by increasing the number of online stores operating in our country. In Poland, there are even several times less of them per 1000 inhabitants, compared to some EU countries. About Walter Herz Walter Herz company is a leading Polish entity which has been operating in the commercial real estate sector across the country. For nine years, the company has been providing comprehensive and strategic investment consulting services for tenants, investors and real estate owners. It provides extensive support for both public and private sector. Walter Herz experts assist clients in finding and leasing space, and give advice when it comes to investment and hotel projects. In addition to its headquarters in Warsaw, the company operates in Cracow and the Tri-City. Walter Herz has created Tenant Academy, first project in the country, supporting and educating commercial real estate tenants across Poland, with on-site courses held in the largest cities in the country. In order to ensure the highest ethical level of services provided, the agency introduced the Code of Good Practice.

More expensive offices in Warsaw, is it possible in a pandemic? - There are over 370 thousand sq m. of office space under construction in Warsaw. They are to be commissioned in the period between 2021 and 2024. This is less than half of the offices built in the recent years, before 2020. The Warsaw market slowed down significantly. Moreover, the level of new office construction is at a record low, while more than twice as much office space is being built on the regional markets. It should not be expected that this will change in the next 2-3 years. Developers have not been announcing the implementation of new projects - says Mateusz Strzelecki, Partner / Head of Regional Markets w Walter Herz. – According to our estimates, in 2021 in total almost 340 thousand sq m. of offices will be completed. In 2022, if the deadlines are met, the office resources in Warsaw have a chance to increase by just over 220 thousand sq m. of space. In the years 2023-2024, the first stage of Studio project by Skanska and The Bridge investment by Ghelamco are to be commissioned. They are among the few investments that investors have decided to build this year – adds Mateusz Strzelecki. Meanwhile, as Mateusz Strzelecki points out, in recent months we have been able to observe the resurgence of tenant activity, which in the third quarter of this year, resulted in a one third higher lease volume than in the same period last year. - This bodes well for the Warsaw market, the future of which looks bright. What is more, there is a noticeable increase in interest in renting by companies from the modern business services sector and those operating in the modern technology segment. The decisions of most companies to lease larger space than previously occupied are also a good prognosis. Only every tenth tenant has decided to reduce space this year - says Mateusz Strzelecki. The expert notes that if the demand continues in an upward trend, and developers continue to withhold further projects in the next two years, we can expect not only a decrease in the level of office vacancies in Warsaw, but also an increase in market rates. – In the upcoming quarters, we may have to deal with an increase in prices of flexible space operators due to their current high occupancy - adds Mateusz Strzelecki. Today, the Warsaw market offers 6.16 million sq m. of modern office space. As a result of its pre-pandemic, rapid growth, modern office buildings are now being completed. This year, over a dozen investments have been commissioned, including Warsaw Unit by Ghelamco (59 thousand sq m.), Skyliner by Karimpol (48,9 thousand sq m.), Generation Park Y by Skanska (47,6 thousand sq m.), Galwan and Plater office buildings in Fabryka Norblina belonging to Capital Park Group (40 thousand sq m.) as well as Widok Towers by Commerz Real and S+B Gruppe (28,6 thousand sq m.). Over 12 per cent of offices are awaiting tenants in Warsaw. The vacancy rate increased by less than 3 percent during this year. Noteworthy, however, is the high level of commercialization of modern facilities that entered the market. According to Walter Herz, three-quarters of space in the office buildings is secured with pre-let contracts, which indicates a high demand for work space of the highest standard. Companies are making decisions more and more boldly, as evidenced by the overwhelming share of new contracts in the total lease volume. In addition, as much as 60 per cent of space contracted in Warsaw in the first three quarters of this year, has been leased in buildings located in the very center of the city, which hosts top-class office buildings. This goes hand in hand with the increase in the social function of offices. Despite the consolidation of new work models, the offices retained the status of the central place of management. After a year and a half of experience with remote work, employers opt for a traditional, stationary model of work. It turned out that working in teams and exchanging knowledge between people is much more effective in direct contact than in a remote system. In addition, the office is irreplaceable when it comes to building relationships and community, as well as a sense of belonging to the team. In order to convince employees to return to their offices, companies must, however, remodel the space so that it provides the greatest possible comfort, friendly atmosphere and diversity, and is more flexible. The analysis shows that Warsaw offices are now about 40-50 per cent full. The next months will bring further changes in the way of using the workspace. Certainly, the is a visible trend to limit permanent workstations, so that one can use the entire office freely and stay in constant contact with other people. It will also become very important to use digital solutions to increase efficiency and support the well-being of employees. The key will be, among others, using appropriate applications and creating special zones dedicated to remote communication, which will guarantee high-quality, stable connection. About Walter Herz Walter Herz company is a leading Polish entity which has been operating in the commercial real estate sector across the country. For nine years, the company has been providing comprehensive and strategic investment consulting services for tenants, investors and real estate owners. It provides extensive support for both public and private sector. Walter Herz experts assist clients in finding and leasing space, and give advice when it comes to investment and hotel projects. In addition to its headquarters in Warsaw, the company operates in Cracow and the Tri-City. Walter Herz has created Tenant Academy, first project in the country, supporting and educating commercial real estate tenants across Poland, with on-site courses held in the largest cities in the country. In order to ensure the highest ethical level of services provided, the agency introduced the Code of Good Practice.

SAVILLS: PROPERTY MARKET HAS ADJUSTED TO THE NEW REALITY AND REGAINS MOMENTUM 14 December 2021 Real estate advisory firm Savills presents a preliminary summary of 2021 and predicts trends for the coming months. The commercial real estate market in Poland is regaining momentum but has changed significantly, reveals Savills. Key trends expected to dominate in the year ahead include rental growth, increasing ESG awareness and a focus on innovation. As expected, the vaccine roll-out has had a positive impact on the commercial property market in 2021. With investors remaining active, this year’s investment is likely to hit EUR 5 billion. Savills expects recent investment trends to continue and industrial assets to account for close to half of the total transaction volume by the end of the year. “Although the real estate market has undoubtedly bounced back in 2021, it has remained mired in uncertainty. In addition to concerns about the course of the pandemic, there were also geopolitical and economic risks. This did not however prevent tenants and investors from gradually resuming activity. Key metrics for the past 12 months illustrating investment volumes and office take-up are likely to remain close to last year’s levels amid a positive outlook for the future. A bright exception is the warehouse sector, which - undeterred by the pandemic - is already setting new highs. The commercial real estate market has adjusted to the new reality and is beginning to return to form,” says Tomasz Buras, CEO, Savills Poland. 2021 was the year of searching for an optimal work model on the office market. Many tenants decided to introduce a permanent hybrid scheme combining in-office work and working from home. According to Savills data, Poland’s total office stock topped 12,315,000 sq m. Flexible offices continued to gain traction with flexible office providers shifting their focus to expansion in regional cities. The Build-to-Rent (multifamily) sector is gradually gaining ground on the Polish market. According to Savills, at the end of 2021 there were close to 40 BtR developments in Poland. Projects that are currently under construction will soon double the stock of rental apartments. As high-tech and e-commerce companies continue to enjoy brisk expansion, these sectors are seeing their headcount grow. According to Savills, even though this has not translated directly into more demand for offices yet, there will be a growing requirement for modern housing as the trend of hybrid working intensifies. The online penetration rate (share of total retail sales) has risen from around 5% pre-pandemic to close to 9% in 2021. The development of omnichannel strategies combining online and offline shopping has gathered pace. The growth of e-commerce remains one of the key drivers of demand for logistics space. Retail has also seen the rise of dark stores - small in-town distribution centres helping shorten delivery times. In 2021, this format was launched in Poland, among others, by Å»abka. Such platforms are also operated by Lisek, Jokr and Swyft, while Biedronka has teamed up with Glovo. According to Savills, 2022 is expected to see another spike in construction costs and land prices, as well as an upward pressure on wages amid a risk of rising inflation. This will, first of all, push service charges up. Tenants will also be affected by exchange rate differences as euro-denominated rents remain a market standard. In addition, 2022 is likely to be the first year in many to witness warehouse and office rental rates go up. “There is potential for the investment market to see more buying in 2022. Investor demand for industrial assets will remain strong while the PRS will increase its market share. Several spectacular office projects are likely to change hands. Next year’s investment volume is expected to come close to pre-pandemic levels. Commercial real estate is considered a safe haven in times of high volatility on currency, stock exchange and bond markets, driving investor activity,” adds Tomasz Buras, Savills Poland. Next year is also shaping up to be a time when ESG strategies will begin to gain prominence on the real estate market. The importance of ESG is rising as a result of the European Union’s taxonomy, or the change of regulations on non-financial sustainability reporting and the entry into force of the CSRD, as well as tenants’ preferences. ESG is not only about a concern for the environment, but also for the human being. According to Savills, this will be visible on the warehouse market, where developers wanting to stand out will also begin to focus on the second social pillar of ESG, i.e. the human aspect, in addition to investing in energy efficiency. On the office market there will be marked differences between ESG compliant buildings and those whose owners will fail to take action in this period of change. Today, both older office buildings and properties in non-central locations are faced with refinancing challenges. Prospective buyers are, however, beginning to look for existing buildings with an intention to upgrade or sometimes repurpose them, or even to pull them down. This is true not only for office assets. Warehouse developers have also become keener to engage in brownfield projects in order to secure good locations. A dichotomy or division of properties into buildings that may soon have to be repurposed for lack of other options and those that have been upgraded will become visible for example in Warsaw’s SÅ‚użewiec district. Office buildings in that area meeting high standards will be able to attract cost-sensitive tenants with an opportunity to bring rents down. Such buildings may, therefore, become the big winners of the pandemic, says Savills. In 2022, the Warsaw office market is likely to begin to slowly switch to a landlord’s market. The office development pipeline is currently at its lowest in 10 years. Savills forecasts that as office buildings whose construction began before the pandemic are gradually filling up with tenants, the second half of the year may see the first signs of an undersupply and landlords gaining the upper hand in negotiations. This trend is already apparent in prime office buildings in Warsaw. Another top trend for 2022 according to Savills is innovation comprising the implementation of new technologies in real estate (proptech) and the use of big data in property management. The drive towards more automation is expected in manufacturing facilities, office buildings and autonomous retail stores. Looking ahead, modern data analytics tools will be used for a growing number of tasks in property management and valuation.

PRESS RELEASE Warsaw, 11.01.2021 Commercial real estate market in Poland has come a long way since the spring of 2020. Never before have so many changes been made in such a short time. Adaptation to new conditions turned out to be the most difficult for hotels and retail. For the warehouse market, in turn, the reshuffling of sales and deliveries became a springboard for a series of records. The offices returned in a new form. Nowadays, the new trends that will shape the market in the upcoming years, lead the way for the real estate sector. Experts from Walter Herz consulting company comment on what is changing. Offices in demand - Despite the popularization of home office and the hybrid work system, we cannot speak of a revolution on the office market. The situation in the sector is quite stable. However, the way the space is used is changing. Tenants decide to extend contracts and change the arrangement of space, adapting it to the needs of employees in the new market environment. Some companies reduce space and maximize its use. Co-working is trending. Companies create more space for team work, integration and meetings - informs Mateusz Strzelecki, Partner / Head of Regional Markets at Walter Herz. Mateusz Strzelecki expects an explosion of relocation to flexible offices this year. - This tendency was already visible last year, but we expect an increase in the activity of companies this year. This is due to the fact that nowadays, tenants need more time to decide on the new office, even a year or a year and a half - admits Mateusz Strzelecki. Mateusz Strzelecki also points to a positive symptom visible on the market related to the return of foreign companies that have been actively looking for locations for their headquarters in our country since autumn last year. Strzelecki also speaks of the great boom seen on the flex space market segment. - Tenants now prefer shorter, flexible contracts with different options of space. Hence, the growing demand for instant offices and co-working spaces is growing. They offer a full range of services and short lease terms, which attracts tenants. They are most often complementary to traditional spaces. The resources of flexible space are growing rapidly and are already provided by the majority of the most modern facilities. In 2022, the potential of this segment will increase – predicts Mateusz Strzelecki. Frozen projects However, Mateusz Strzelecki no longer speaks of an increase in the resources of traditional office space on the market with such great optimism - The amount of space under construction, especially on the Warsaw market, is the lowest in a decade and there are no signs that this will change in the near future. The situation is better on the regional markets, while in Warsaw most of the large office investments have already been completed, and the remaining construction projects are nearly finished. Almost half of the space in the projects under construction already has tenants. Over time, the free space will shrink and the market offer will become smaller. There is a supply gap on the horizon in the next two years, as only a small number of projects is under implementation. Low supply with higher expected demand may translate into optimization of lease terms on the part of building owners, and even an increase in rental rates in the best buildings in central locations, which are currently the most popular. Increasingly higher utility prices will, in turn, affect the increase in service charges - notes Mateusz Strzelecki. - The growing construction costs related to high inflation and an increase in interest rates do not encourage investors to act. Prices for building materials, services, land and wages are rising. We can expect this trend to continue this year. Estimates show that the cost of delivering an office building to the market has increased by over 30 per cent, since the beginning of the pandemic. In addition, there are difficulties related to the timely delivery of materials - says Mateusz Strzelecki. Warehouse sector is hot BartÅ‚omiej Zagrodnik, Managing Partner/CEO of Walter Herz, points out that thanks to the large-scale office buildings that have been commissioned last year and which constitute attractive assets, this year's value of transactions on the investment market may reach the level seen in Poland before the pandemic. - In 2021, the transaction volume will probably be similar to the one recorded last year. The warehouse and industrial sector will account for almost a half of the total value. The demand for logistics real estate is breaking records not only on our market. In Poland, convenience-type facilities, retail parks and local daily service centers providing access to everyday goods are also gaining importance. Investors also appreciate more and more projects offering flats for institutional rental, student dormitories, retirement homes and nursing homes, which guarantee lasting capital security and an attractive level of return - informs BartÅ‚omiej Zagrodnik. - The pandemic has significantly boosted the development of the warehouse real estate market. A record amount of space is under construction all over the country. The historically high new supply is followed by an equally high demand, which was a third higher in the first three quarters of 2021 than in the corresponding period a year earlier. This is a trend that will continue also this year due to the further development of e-commerce and nearshoring, locating production closer to the outlet zone and striving to shorten the supply chain – explains BartÅ‚omiej Zagrodnik. New concepts BartÅ‚omiej Zagrodnik points out that more and more warehouses built in the new standard will enter the market. They will reach the height of 12 m. - Developers are also noticing great interest in last mile logistics facilities, located close to large urban agglomerations, and will implement more such projects. These types of facilities are particularly popular among distributors and delivery companies, which are associated with the boom in the e-commerce sector. This year, the dark store concept, which debuted on our market in 2021, will also be popularized in Poland. Networks of distribution microcenters, resembling shops, but created exclusively to handle online orders with express delivery in several minutes, will be expanded, which are already operating in the seven largest cities in the country – informs BartÅ‚omiej Zagrodnik. Walter Herz specialists agree that commercial investments in Poland have chosen the multiple functionality course. Among the projects prepared for construction, mixed-use complexes implemented in several stages predominate. The purpose of designing part of the investment is also to supplement the development with additional functions, as is the case with the office building in SÅ‚użewiec in Warsaw. - We could observe the implementation of investments with residential, commercial, service, entertainment and hotel functions in major cities in the country even before the pandemic. Now, such facilities have dominated the sphere of new investments. Projects built in line with sustainable development meet not only the expectations of today's investors, but also the needs of office users who appreciate the advantages of the local area even more, but expect a comprehensive offer - says Piotr SzymoÅ„ski, Director Office Agency at Walter Herz. - In Warsaw, the implementation of new, large-scale mixed-use investments is scheduled, among others, in the districts of Bielany and Å»eraÅ„. Complexes of this type will also be built in Kabaty and OkÄ™cie – says Piotr SzymoÅ„ski. More and more green - When outlining outstanding trends, it is impossible not to mention the ESG (Environmental, Social and Corporate Governance) standards, which are becoming an increasingly important criterion in assessing the value of commercial real estate. The building's efficiency, emissivity and the comfort it provides to its users, confirmed by certificates, have become a key issue for investors. The environmental aspect related to projects in the face of climate change is already as important as the financial profit and, in the context of EU directives, to a large extent influences business decisions. Sustainable investments achieve higher market valuations and are better rated by financial institutions - says Piotr SzymoÅ„ski. Piotr SzymoÅ„ski expects further, more and more detailed regulations on ESG. - We are observing an increasing desire to reduce operating costs and minimize the impact on the planet through the use of energy-saving solutions. Facilities that take into account the convenience of users are also more popular among tenants. Companies pay attention to how the space in which they work affects the natural environment. Some organizations only work with entities that represent similar standards in this field. Therefore, it can be expected that year to year there will be more "green" buildings on the market. We can also expect an increase in market competitiveness in this respect – adds Piotr SzymoÅ„ski. Aboout Walter Herz Walter Herz company is a leading Polish entity which has been operating in the commercial real estate sector across the country. For nine years, the company has been providing comprehensive and strategic investment consulting services for tenants, investors and real estate owners. It provides extensive support for both public and private sector. Walter Herz experts assist clients in finding and leasing space, and give advice when it comes to investment and hotel projects. In addition to its headquarters in Warsaw, the company operates in Cracow and the Tri-City. Walter Herz has created Tenant Academy, first project in the country, supporting and educating commercial real estate tenants across Poland, with on-site courses held in the largest cities in the country. In order to ensure the highest ethical level of services provided, the agency introduced the Code of Good Practice.

CD PROJEKT RED announces that Alexander "TLG_Cyberz" Schmidt has claimed the ultimate victory in the Season 3 GWENT World Masters tournament this past weekend, earning the title of GWENT World Champion in the official Witcher Card Game esports series. The season's grand finale tournament played out over the course of Saturday and Sunday, December 4th-5th. Streamed live on Twitch in its entirety, it saw 8 of the best GWENT players from around the world competing in high-stakes battles for a share of the $71,000 prize pool and the title of GWENT World Champion. Relive GWENT World Masters on the official CD PROJEKT RED Twitch channel. The final tournament prize pool distribution and standings are as follows: WINNERAlexander "TLG_Cyberz" Schmidt (Germany)FINALISTSAlexander "TLG_Cyberz" Schmidt (Germany) — $36,140Ilya "BigKuKuRUzina35" Lyapin (Russia) — $9,230SEMIFINALISTSZhang "lord-triss" Yusheng (China) — $8,305Oleg "Akela114" Nikolaev (Russia) — $7,455QUARTERFINALISTSAleksander "TLG_Pajabol" Owczarek (Poland) — $3,480PaweÅ‚ "kams134" Skoroda (Poland) — $2,840Damian "TailBot" Kaźmierczak (Poland) — $1,775Elias "theshaggynuts" Sagmeister (Austria) — $1,775 During the event, before the final match, CD PROJEKT RED also revealed that a new content update for GWENT is coming Tuesday, December 7th. The update will add 12 new cards (2 per each faction), while also introducing a number of regular balance changes. The video overview for the update is available on Twitch, via the GWENT World Masters tournament recording, as well as on GWENT's official YouTube channel. CD PROJEKT RED would like to thank all participants and everyone who watched live to help make GWENT World Masters such a fantastic event.For a complete overview of GWENT Masters — the official esports series for GWENT: The Witcher Card Game — including the ruleset, format, and tournament dates, visit masters.playgwent.com.GWENT: The Witcher Card Game is available for free on PC via GOG.COM and Steam, Apple M1 Macs running macOS, as well as on Android and iOS. For more information on GWENT, visit playgwent.com.   Source: CD Projekt

PRESS RELEASE Warsaw, 17.01.2022 The growing interest in domestic tourism is conducive to the development of accommodation facilities in resorts. Interesting city hotels are also opening. The current year should bring stabilization in the hotel industry as more countries move from treating the covid as pandemic to endemic - Speaking of the current shape of the hotel sector, it is difficult to treat the market as a whole. Today we are dealing with two markets. The first of them - the city hotel market, considered safer before the pandemic, due to a more balanced structure of guests, as well as less seasonality than the second hotel market, that is tourist hotels. Currently, it is the latter market that is doing much better and is recovering from losses. City hotels, on the other hand, largely focus on maintaining the current profitability, however, in the fall, there was a recovery in demand from business guests and MICE. The results that the industry finished 2021 with are far from those before the market changes, but last year we could already see a recovery in demand and average prices on the market - says Katarzyna Tencza, Associate Director Investment & Hospitality at Walter Herz. Although there were fewer foreign guests, the hunger for travel and the uncertainty associated with overseas travel meant that in July and August last year, about 190 thousand more Poles stayed in hotels than in the summer of 2019. Demand accumulated in the summer as a result of, among others, the restrictions that hotels were subject to in the winter and spring months. The summer season in the resorts was very successful. The beginning of autumn in the resorts brought a sustained high demand for leisure and group stays. In November and December, the situation was clearly worse, with the exception of the holiday season, which was another opportunity for hotels in holiday destinations to increase revenues. - Good results obtained by resort facilities during the summer do not mean that the entire year 2021 can be considered successful by the industry. The turnover in the entire sector was lower than that achieved before the pandemic. The year 2022 should bring a continuation of the recovery in demand in the city markets - says Katarzyna Tencza. Ownership changes Despite the difficulties faced by hotels, so far we have not dealt with many transactions on our market. Especially that the largest market players mostly refrain from acquiring assets in this segment. The mass bankruptcies which were to happen in 2021, did not take place. Hotels for sale are not very attractive to investors due to location or other factors. The transactions took place mainly on regional markets. For example, NK Rysy company purchased Hotel Rysy, located in the very center of Zakopane. The unfinished Ewerdin hotel in Swinoujscie was also sold. In the second half of the year, a 100-room hotel located in the center of Cracow was also sold. We could also observe transactions concerning hotel facilities intended for other functions. Orbis has signed a preliminary agreement for the sale of the Ibis Hotel in Kielce, which is to be transformed into a different function facility. The deserted Astoria hotel in Klodzko was sold to a developer from Cracow, who after the renovation, will probably offer retail and service space. Polkomtel bought the Ossa hotel located in Ossa near Rawa Mazowiecka, in order to build a rehabilitation center. Polski Holding Hotelowy is also active on the market, which carries out the process of consolidation of facilities providing hotel services, owned by state-owned companies. PHH concluded a conditional agreement for the purchase of Geovita SA, part of the Polish Oil and Gas Mining Group, which manages several recreational facilities throughout Poland. The holding has also signed a conditional agreement with PGE Polska Grupa Energetyczna for the purchase of ten hotels and facilities belonging to Elbest, one of its companies that owns hotels, including in Krynica, MiÄ™dzyzdroje, Myczkowce nad Solina as well as facilities in Krasnobrod and Szklarska Poreba. Polski Holding Hotelowy has also signed conditional agreements for the purchase of a controlling stake in Interferie and shares in Interferie Medical SPA, companies belonging to the KGHM Group, thanks to which it will receive another six properties. New, high-class facilities in resorts In 2021, holiday resorts expanded their offer of high-quality hotel facilities. The recent openings are, of course, the result of investment processes initiated before the market turmoil. Tourist accommodation resources in the country increased, among others, thanks to the opening of the Radisson Resort hotel in Kolobrzeg with 209 rooms and an aquapark, the five-star Crystal Mountain hotel in WisÅ‚a with almost 500 rooms and an aquapark, and the 124-room Tremonti Ski&Bike Resort complex in Karpacz. Despite the difficulties, the hotel market continues to expand its resource base. New seaside hotel investments, as in previous years, are mostly located on the line between Swinoujscie and Kolobrzeg. Hotel investments in this region are mostly condo hotels. The largest projects include the Wave MiÄ™dzyzdroje Resort & SPA hotel with 393 suites, Aqua Resort in Miedzyzdroje with 300 rooms and an aquapark, 435-room Radisson Blu Resort in Miedzywodzie, Hotel GoÅ‚Ä™biewski in Pobierowo with approximately 1400 rooms, PINEA Resort & Apartments in Pobierowo with 138 apartments, 266-room Mövenpick in Kolobrzeg, Baltic Wave in Kolobrzeg which is to offer 468 suites. Polish mountains offer interesting hotel investments, also largely sold in the condo system, Among the most interesting projects are Elements Hotel & SPA in Swieradow Zdroj with 289 rooms, Sanssouci Karpacz MGallery Hotel Collection with 110 rooms, Movenpick in Karpacz with 126 rooms, Mövenpick Zakopane Imperial Hotel with 130 rooms, Infinity Zieleniec Ski & SPA in Duszniki Zdroj with 328 apartments, and Linden Hotel & Resort in Szklarska Poreba with 137 rooms. New city hotels - Hotel chains previously focused mainly on municipal investments, are now very active also in the holiday destinations. In addition, smaller regional cities are gaining in importance. Unfortunately, high prices of investment plots and fierce competition in the fight for land from investors developing apartments for rent and dormitories, as well as rising construction costs make it more and more difficult to budget for the new hotel projects. Banks are still very cautious about financing hotel investments - informs Katarzyna Tencza. The investment interest in the sector is mainly in tourist destinations, but urban locations can also offer visitors new, interesting facilities. Last year saw the opening of such facilities as the ibis Styles Kraków Centrum hotel with 259 rooms, NYX Hotel Warsaw of the Leonardo Hotels chain with 331 rooms, located in the Varso Place complex near the Warsaw Central Station, Tulip Residences Warsaw Targowa hotel with 110 units, and Mercure Katowice Centrum with 268 rooms. In addition, the 195-room Mercure Kraków Fabryczna City hotel appeared on the Cracow market, 300-room AC Hotel by Marriott Kraków and Courtyard by Marriott Szczecin City hotel was opened in the Posejdon complex in Szczecin. It offers134 rooms. In WrocÅ‚aw, guests were welcomed by the Jazz aparthotel with 62 rooms and Hotel Herbal with 66 rooms, and at the end of last year, Dwór Uphagena Arche Hotel GdaÅ„sk with 145 rooms was opened in Gdansk. The Olsztyn market welcomed the 105-room Hampton by Hilton Olsztyn hotel. This year, the city hotel market will be supplied with a dozen or so new facilities under the brands of international and Polish brands. Most of them are hotels for which investment decisions were made before the pandemic. The Warsaw market is to be supplied, among others, by 238-room Focus Hotel Premium Warszawa located in Mokotow, 192-room Staybridge Suites Warszawa Ursynów, 448-room Royal Tulip Warsaw Apartments in Unique Tower building on Grzybowska Street, 96-room Autograph Collection by Marriott International in Warsaw's Old Town, or 66-room Flaner Hotel WorldHotels Crafted Collection. In Cracow, a 216-room Hyatt Place Kraków hotel, 125-room Autograph Collection by Marriott International, 116-room Curio Collection by Hilton Hotel Saski Kraków, 53-room Garamond Boutique Hotel Tribute Portfolio, and 173-room Hampton by Hilton Krakow Airport hotel are to open next year. A 130-room B&B hotel is to welcome guests in Lublin, and a 122-room Hampton by Hilton BiaÅ‚ystok is to be commissioned in Bialystok. The 201-room Q Hotel Plus WrocÅ‚aw Bielany will open in Wroclaw and the former Sofitel Wroclaw Old Town hotel with 205 rooms will reopen under the Wyndham brand. More challenges The rapidly changing market conditions mean that the industry is facing new challenges. The greatest difficulties that hotels will have to grapple with in the near future are the rising costs of living and the lack of employees. Problems are also related to the recovery of demand from corporate guests, the MICE sector and foreign tourists. Rises in energy, gas and garbage disposal prices, and rising labor costs, are making it difficult for the sector to recover. Growing inflation driving the costs of maintaining facilities is forcing a rise in accommodation prices. We can expect an increase in accommodation prices in the upcoming months, both in holiday destinations and urban locations. About Walter Herz Walter Herz company is a leading Polish entity which has been operating in the commercial real estate sector across the country. For nine years, the company has been providing comprehensive and strategic investment consulting services for tenants, investors and real estate owners. It provides extensive support for both public and private sector. Walter Herz experts assist clients in finding and leasing space, and give advice when it comes to investment and hotel projects. In addition to its headquarters in Warsaw, the company operates in Cracow and the Tri-City. Walter Herz has created Tenant Academy, first project in the country, supporting and educating commercial real estate tenants across Poland, with on-site courses held in the largest cities in the country. In order to ensure the highest ethical level of services provided, the agency introduced the Code of Good Practice.

PRESS RELESE Warsaw, 02.02.2022 Rise.pl company has leased 1 600 sq m. of space in the CZ Office Park complex located at the intersection of Aleja KraÅ›nicka and NaÅ‚Ä™czowska Streets in Lublin. In June 2022, the provider of flexible workplaces solutions will offer a modern flex office space in the new location. Walter Herz supported the operator in the process of selecting space and negotiating lease terms. Rise.pl will launch instant offices and coworking spaces in CZ Office Park, an A-class office complex in Lublin. Tenants will also be able to use event spaces, 11 conference rooms, a chillout zone with a pool table and game systems, as well as an internal bar and cafeteria, kitchen and reception. The Lublin branch is the 13th location of Rise.pl in Poland, which also operates under the Chillispaces brand. The provider of flexible work solutions offers flex space in seven offices in Cracow, two offices in Lodz and branches located in Wroclaw and Rzeszow. Each office is tailored to the needs of the local businesses and allows for quick expansion. - We chose Lublin because we see great potential in this city for our industry, among others due to the fact that many companies from the IT sector and the outsourcing industry operate there. Moreover, Lublin is a very open business center that encourages companies to invest - says Katarzyna Augustyn, Sales and Marketing Director at Rise.pl. - When choosing the building in which we would open our first office in Lublin, we realized that the first location in the city is very important for the brand and will become a showcase and a point of reference for our further development. Therefore, entering the Lublin market required the selection of an outstanding property to display the quality and style we want to be identified with - says Katarzyna Augustyn. The operator ensures that the offices under the Rise.pl brand are arranged in such a way that they are not only comfortable places to work, with high technical standards and parameters related to safety, but also original spaces, with tasteful interiors, where one can not only work comfortably, but also spend quality time. Rise.pl has extensive development plans. The company intends to gradually expand the network of services so that the flexible offices offered by the company are available in all regions of the country. Lublin is the second location in Eastern Poland, after Rzeszow, for which Rise.pl has had extensive expansion plans for a long time. In the next two years, the company plans on launching flexible offices also in Szczecin, Poznan, Wroclaw, Opole, Katowice, Gliwice and Warsaw. - The concluded lease transaction is an important step for the development of Lublin's office infrastructure. Thanks to this decision, the city will gain the first modern flex office space. Due to the changes in ​​tenant preferences that have taken place on the market over the last two years, instant offices is a sector that will now develop even faster. Adoption of the long-term operating strategies by companies from the industry is confirmed by a 10-year lease period in CZ Office Park in Lublin. We are glad that we can contribute to the growth of the flexible work space market and participate in the transformation process that is currently taking place in the office segment in our country. Thanks to the wide range of office solutions and an increasingly extensive network of services offered by operators of flexible office spaces, tenants can work in a convenient place, time and form all over Poland - says Mateusz Strzelecki, Partner/Head of Regional Markets at Walter Herz. - Rise.pl was looking for a mixed-use space that would combine both a coworking space and independent offices for larger office segments, as well as full conference and event services. The lease of space in CZ Office Park was determined primarily by the unrivaled quality of the offered space, which allows for any configuration of office zones and the vicinity of key transport hubs in the city - informs Mateusz Dembski-Kornaga, Senior Negotiator at Walter Herz. - We are very pleased with Rise.pl’s investment, which is an important element of the city's economic ecosystem. The presence of such a valued brand in Lublin is a clear signal that the city's investment potential remains high, despite the economic turmoil on a national scale. Over the last several months, we have observed an increasing interest in flexible space on the market, which is reflected in the profile of the projects we handle. The space offered by Rise.pl will certainly become an important point on the map of business events in Lublin - says Igor Niewiadomski, coordinator of the Investor Assistance Office of the Lublin City Office, which supported the project. CZ Office Park D is a prestigious A-class office and retail building, located at the intersection of Aleja KraÅ›nicka and NaÅ‚Ä™czowska Streets in Lublin. One of the most modern properties in the city is located near the main transportation routes and academic centers. The total lease area offered by the complex is over 40,4 thousand sq m. The buildings were made in a modern, energy-saving facade technology with the use of the latest air-conditioning and ventilation solutions, guaranteeing comfortable working conditions. CZ Office Park is a place that attracts high-profile events, engaging both tenants and the business and cultural environment of the city. About Walter Herz Walter Herz company is a leading Polish entity which has been operating in the commercial real estate sector across the country. For nine years, the company has been providing comprehensive and strategic investment consulting services for tenants, investors and real estate owners. It provides extensive support for both public and private sector. Walter Herz experts assist clients in finding and leasing space, and give advice when it comes to investment and hotel projects. In addition to its headquarters in Warsaw, the company operates in Cracow and the Tri-City. Walter Herz has created Tenant Academy, first project in the country, supporting and educating commercial real estate tenants across Poland, with on-site courses held in the largest cities in the country. In order to ensure the highest ethical level of services provided, the agency introduced the Code of Good Practice.

While everyone is criticizing Russia, it’s easy to follow the US ‘savior’ narrative. However, what if we looked at what’s happening with oil in mind?Disclaimer to today’s article: I’m providing this analysis from a pure energy-focused perspective. I do not claim it represents THE right view, but rather one of those that won’t be as visible in the mainstream. It is interesting to add different views as pieces of the same puzzle. I am looking forward to reading yours in the comments!Picture Source: MemedroidSeveral port facilities in Germany, the Netherlands and Belgium have been the target of cyberattacks, prompting the judicial authorities to investigate the suspicions of extortion of funds at the expense of German operators in the oil sector. Indeed, it would appear that this series of computer hackings that began several days ago primarily concerns oil terminals. This is disrupting deliveries in several major European ports against a backdrop of soaring energy prices.After jumping the day before, thanks to the strengthening of the euro against the US dollar induced by ECB President Lagarde, oil prices continued to rise during the European session on Friday. Consequently, the fall in the greenback came on top of the recovery in demand, the fall in US crude inventories and the disruptions in supply to boost the price of black gold on the climb, the two crude benchmarks evolving above the psychological mark of 90 dollars a barrel, galvanized by solid demand and tensions on the offer coming from (geo-)political risks.Who is Provoking Who?The situation is rather complex on the geopolitical scene, with the US claiming that Russia is planning an invasion in Ukraine, whereas the US under NATO cover sent additional troops to Eastern Europe. The question that may arise here is: who is provoking who? So far, we haven’t seen Russia placing troops in Mexico, on the border with the United States. On the other hand, the Biden administration may encounter difficulties in accepting that the Kremlin can agree to various partnerships with its European neighbors, especially regarding more favorable energy supplies. Instead, it’s in the US interest to weaken those diplomatic relations, potentially leading to additional partnerships that may arise between the EU and Putin.And as we see the US-led narrative getting through the Western mainstream media with more aggressive, suspicious, and tense tones towards Russia, this obviously has the effect of pouring some oil on the Russian-Ukrainian fire. Furthermore, the US needs reasons to demonstrate that NATO is still alive and relevant while a number of countries are now questioning their own participation in the US-led military organisation created in 1949, even going so far as to show some doubts regarding its current motivations.Isolating the Russian BearBy maintaining a hostile tone towards Russia’s intentions, the US is consequently trying to isolate the Russian bear and push their European partners to blindly follow the “official narrative” (as the EU being part of NATO), which could possibly lead to new sanctions on Russia, the latter being able to retaliate by using its energy assets and capacities to deprive the EU of the Russian supplies, which currently on the gas side represent between 30% and 40% of total gas imports for Europe. Then, as a result, the Americans could start exporting more gas into Europe via Liquefied Natural Gas (LNG) shipping – which again could benefit their energy-led commercial balance – the Europeans thus becoming the losing players in this game.As an example, we saw this week that a tanker loaded with LNG from the US will arrive at the LNG terminal in Świnoujście (Poland) at the end of this month, since Poland has LNG import capabilities which could be used to deliver US gas to Ukraine. Apparently, this is the second time (after the first one took place two years ago) that such gas deliveries are made by PGNiG, the Polish state-controlled oil and gas company, in cooperation with ERU (their strategic trading partner on the Ukrainian market).Actually, Ukraine suspended imports of Russian gas at the end of 2015. After relying on Russian gas imports for decades, they currently increasingly depend on imports from Europe. Since Ukraine has no LNG import capabilities, such US gas deliveries have been organized via a pipeline from the Polish terminal (through re-gasified LNG).WTI Crude Oil (CLH22) Futures (March contract, daily chart)Brent Crude Oil (BRJH22) Futures (April contract, daily chart)RBOB Gasoline (RBH22) Futures (March contract, daily chart)Henry Hub Natural Gas (NGG22) Futures (February contract, daily chart)In summary, geopolitics is always complex because it relies on individual economic and strategic interests of countries. The readings also depend on different views, and since there is always a lot of noise, it often helps to take some steps back in order to analyze the global situation from a different angle.Have a nice weekend! And remember to chime in on the conversation.Like what you’ve read? Subscribe for our daily newsletter today, and you'll get 7 days of FREE access to our premium daily Oil Trading Alerts as well as our other Alerts. Sign up for the free newsletter today!Thank you.Sebastien BischeriOil & Gas Trading Strategist* * * * *The information above represents analyses and opinions of Sebastien Bischeri, & Sunshine Profits' associates only. As such, it may prove wrong and be subject to change without notice. At the time of writing, we base our opinions and analyses on facts and data sourced from respective essays and their authors. Although formed on top of careful research and reputably accurate sources, Sebastien Bischeri and his associates cannot guarantee the reported data's accuracy and thoroughness. The opinions published above neither recommend nor offer any securities transaction. Mr. Bischeri is not a Registered Securities Advisor. By reading Sebastien Bischeri’s reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Sebastien Bischeri, Sunshine Profits' employees, affiliates as well as their family members may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.

The battle for investment land is still going on, and the lack of attractive assets feels more and more severe. This applies to all large cities in Poland. For a long time, no matter the place, the investment land has not been easily available. In contrast, there are both plenty of people willing to buy land, as well as free funds to finance these purchases. The money surplus is enormous. Investors are trying to invest their capital in land as soon as possible, for fears of inflation. Although the peak shopping spree, often associated with really risky decisions, has already passed, the situation continues to bear resemblance to the one we remember from the years 2007-2008, when everything was selling like hot cakes, at rapidly rising prices. The appearance of new investors has shortened the sale process of attractive lands, which now usually closes within 3 months. In turn, the difficulty is the highly overestimated value of many plots of land or the unregulated ownership status of the property. The owners of land are also very reluctant to reserve the land through conditional or preliminary purchase agreements without deposit (earnest money). Maximizing profits through investments in land There are many companies willing to invest in land, despite the prices of land in some locations are growing in a blistering pace. The greatest shortage occurs in case of large plots for housing development in well-connected parts of cities. When the interesting plots of up to 5,000 m2 of residential and usage space appear on the market, even several companies compete for it. The larger the plot, the lower the number of competitors. Over the last two years, rates on the investment land market have increased by several dozen percent, depending on the location. Prices for 1 m2 of residential and usage space in attractive places in Warsaw or Krakow jumped by as much as 60 percent. Investors, for fear of further increases, buy land to increase their future profits. They are not deterred by soaring construction costs and time-consuming administrative procedures. The purchase of land can be financed in a number of ways. Many transactions are based on loans, many is financed from ongoing development activities, and some from issuance of bonds.   The pro-ecological, high standard housing estates, in unique location, turned out to be a hit among housing investments in the last year. The recent changes have translated into the demand for flats in recreational and tourist-attractive locations. The demand for land for residential buildings is further increased by the investments into premises for institutional quality lease. More and more development companies are involved in this type of projects, despite the lower margin. The share of the Private Rented Sector (PRS) in the sale of apartments as registered in 2021 by listed entities has already increased to over a dozen percent. Warehouses, warehouses everywhere As in case of housing developments, we can talk about very high demand for land for the planned warehouse and industrial investments. Wherever we see changes, road infrastructure improvements or express roads planned for construction, the land is immediately secured with preliminary contracts. It is easier to find plots for logistics projects, as investments in this sector are also carried out in greenfield areas located outside the administrative borders of cities. Therefore, both the greater supply and less competition from investors looking for land for investments in residential or service and commercial sectors. The land in required for both large-format investments with an area of ​​several dozen or over 100 thousand m2, as well as the so-called last mile warehouses and smaller municipal facilities. Investors from the warehouse sector are primarily interested in plots located near logistics hubs and in the vicinity of the largest cities, as well as plots located in smaller towns due to the rapidly growing online sales. The warehouse market is currently experiencing a period of the development of speculative investments. The companies are not afraid to perform such projects, as the demand for warehouse space has never been growing so fast as now, and there is practically no free warehouses space available. This is largely related to the growth of the e-commerce market, which is expected to grow further in value in the coming years, at the average rate of several per cent per annum. Moreover, the change of the transport structure, shortening the supply chains or the growing demand for buffer areas, where inventories are stored, also affect this demand. Similarly, the warehouses generate over half of the transaction volume on the investment market in Poland. Year by year, the logistics and industrial sectors are increasing their market share, reaching new highs. Our market is the point of interest of foreign capital from Europe, mainly from Germany, as well as North American and Asian companies. Shares of small shopping centers are going up Developers also share a keen interest in the construction of retail parks. The format now brings together as many as three-quarters of new investments in the retail sector. Retail parks, just like warehouses, have attracted more and more attention of funds and capital groups as investment assets. Although in Poland in 2021 the retail space has increased by 300,000 m2, with the same amount currently under construction, 70 percent of which being the retail parks, unfortunately there is still a shortage of this commodity. Hence, one-third of transactions for the purchase of commercial real properties from the last year concerned older-generation properties, dominated by properties owned by Tesco. The recent popularity of retail parks and convenience centers has resulted in the increased interest of the investors to perform such projects. Investors often enter into these investments in order to diversify their real properties portfolio. However, of course there are also entities on the market that specialize only in this format. The advantage of projects related to the construction of retail parks is that their construction process can be completed within 18 months, and the entry threshold is much lower in comparison to larger projects. In case of these projects, investors are looking for land mostly in smaller cities up to 100,000 or even 50,000 residents, in which market saturation is not too high. Land in such locations is much cheaper than in the largest cities, which also translates into higher investment profitability. The most attractive plots of land for new projects are located in areas which can potentially be visited also by residents of the surrounding boroughs. In case of retail parks, the key to ensuring satisfactory returns on investment is to include in the list of tenants a popular foodstuff chainstore. This is not only one of the most important reasons for visiting a shopping center, but also influences the image of the facility. An interesting trend that we can observe recently is the appearance of new brands in retail parks, often boutique brands, that have never been present in such facilities before. Land - the star of the investment market The high activity on the investment land market is also evidenced by the transactions carried out in 2021 by LBC Invest, most of which concerned land real properties. In WrocÅ‚aw and Kraków, we have supported our clients with comprehensive customer services for contracting of land in the implementation of development projects in the residential segment for over 45.000 m2 of residential and usable area. Some of them are under construction, and some are in the phase of obtaining building permits. We also closed a few speculative transactions last year. We are currently performing activities on over 70 ha of land. In the last quarter of 2021, we also signed contracts for the performance of comprehensive investment processes, including commercialization for retail parks located in Krakow and two smaller cities – in Lesser Poland and Pomeranian regions, with investors both from Africa and Poland. Last year, we also managed transactions for the purchase of commercialized land, together with construction designs and a building permit, and at the same time concluding general contracting agreements with previously selected companies. Concluding the contract of sale in this form was a condition for the purchase of investment areas, especially those for retail parks and located in attractive locations, with a built-up area of ​​2,500 to 8,000 GLA.

While US indices plunged yesterday as the situation near the Ukraine-Russia border remained tense with the S & P 500 dropping 2.12%, Nasdaq falling 2.88% and Dow Jones pulling back 1.78%, reports of shelling in Luhansk and Donetsk Oblasts in eastern Ukraine continue. However, the US President will host a meeting with leaders of Canada, France, Germany, Poland, Italy, Romania, UK, EU and NATO today which along with an announced meeting between US secretary Blinken and Russia's Lavrov next week has helped moods stabilize slightly. Oil prices pulled back noticeably with Brent dropping below $90 and gold gave up some gains after benefiting from the significant risk-off moods seen this week which saw it reach the highest level since mid 2021. With a lack of data releases and with a long weekend ahead in the US, we could be seeing significant volatility across markets as investors and traders adjust their positions to limit risk exposure and in anticipation of a potential escalation of the conflict. On the other hand, any sign of easing of tensions has been received positively from markets and further indication could lead to a return of risk appetite across asset classes, which could favor stocks as well as the cryptocurrency market, which have struggled to maintain gains lately. UK retail sales point to continued post pandemic recovery Today's retail sales figures continue to provide encouraging signs as the economy recovers from the pandemic and as businesses as well as consumers begin to adjust to rising inflation. While these figures indicated a rise of retail sales volumes by 1.9% in January 2022 following a fall of 4.0% in December 2021, an interesting thing to note is that the proportion of retail sales online fell to 25.3% in January 2022, its lowest level since March 2020 (22.7%). Ultimately, it remains to be seen how the Bank of England's policy will facilitate this trend moving forward in order to avoid a stagnation situation and as rising prices across sectors continue to add pressure.

PRESS RELEASE Warsaw, 23.02.2022Warsaw Chamber of Tax Administration has leased over 640 sq m. of office space with a 2000 sq m. square located next to the office building for its subordinate unit in the OKAM investment in Warsaw district of Żerań.The Chamber was looking for a location that would allow for the lease of both office space and a suitable area for customs clearance for the Customs Department VI in Warsaw, currently located in the Targówek district.These conditions were met by the warehouse, production and office complex located on the site of the former car factory at Jagiellońska Street in Warsaw.- The Chamber planned to relocate to a new office. However, the property also had to guarantee efficient logistics related to the customs clearance of goods. The infrastructure of the mixed-use complex in Żerań, its unique character on the scale of the entire Warsaw agglomeration, made it possible to fully meet the tenant's requirements. The profile of the investment allowed for a full consolidation and concentration the activities of the institution and its administration in one place - informs Piotr Szymoński, Director Office Agency at Walter Herz, the company which represented the landlord during the transaction.The new headquarters of the Customs Department VI in Warsaw and two organizational units of MCTO, they plan to move into next month, is located in a four-storey building, with a total of over 3100 sq m. of space.- Warsaw market offers many attractive spaces, which is why we feel all the more distinguished by the choice of our investment in Żerań by the Warsaw Chamber of Tax Administration. We hope that the office space leased by the Chamber along with the adjacent square will meet all of the current and future expectations of the organization. Our project in Żerań will also actively develop with our tenants and their needs in mind – says Arie Koren, CEO of OKAM City.OKAM investment in Żerań provides both office, retail and commercial space, as well as warehouse space, the height of which exceeds even 20 meters. It also has paved areas of high load capacity, intended for exhibition squares and parking lots.Most of the lease space in the complex is characterized by a great variety in terms of the offered parameters. - This makes the location a great choice for customers looking for space with different functions and non-standard dimensions in one investment - says Piotr Szymoński. The location provides direct access to the S8 route. The center of Warsaw can be reached within 20 minutes from the OKAM investment. Bus and tram stops as well as bicycle paths are located 250 m from the entrance to the complex. About Walter HerzWalter Herz company is a leading Polish entity which has been operating in the commercial real estate sector across the country. For nine years, the company has been providing comprehensive and strategic investment consulting services for tenants, investors and real estate owners. It provides extensive support for both public and private sector. Walter Herz experts assist clients in finding and leasing space, and give advice when it comes to investment and hotel projects.In addition to its headquarters in Warsaw, the company operates in Cracow and the Tri-City. Walter Herz has created Tenant Academy, first project in the country, supporting and educating commercial real estate tenants across Poland, with on-site courses held in the largest cities in the country. In order to ensure the highest ethical level of services provided, the agency introduced the Code of Good Practice. About OKAMOKAM Capital has been a leader among the real estate development companies for over 17 years. The company specializes in residential and commercial construction. OKAM portfolio includes 25 projects in 7 cities in Poland, such as Strefa PROGRESS in Łódź, INCITY and CITYFLOW in Warsaw district of Wola, MOKKA, VISTA and CENTRAL HOUSE in Mokotów, ARLET HOUSE in Ochota, ŻOLI ŻOLI in Żoliborz, BOHEMA - Strefa Praga in Praga Północ and 62 ha in Warsaw district of Żerań. In Katowice, the company is implementing investments in Dolina Trzech Stawów: DOM W DOLINIE TRZECH STAWÓW and INSPIRE. The assets of OKAM also include historic tenement houses in the center of Katowice as well as in Cracow.At the end of 2018, OKAM introduced the New Quality Policy as an expression of corporate social responsibility. Starting with the CENTRAL HOUSE investment, all OKAM residential investments will be equipped with pro-ecological and functional solutions supporting climate protection and improving the comfort of living, such as electric vehicle rental, bicycle rental, air purifiers, solar panels, systems for reusing rainwater, etc.

According to Savills, the e-commerce boom is continuing to drive demand for industrial and logistics assets across Europe, as new records were set for both levels of investment and leasing activity in 2021. In Poland, take-up in 2021 reached an all-time high and industrial assets accounted for over a half of the total investment volume. Some EUR 62bn was invested into industrial real estate across Europe, marking a 79% increase on the previous five year average. The UK (EUR 19.5bn) outperformed the rest of the continent and accounted for 31% of total investment activity. Germany (EUR 8.6bn), France (EUR 6.5bn) and Sweden (EUR 5.8bn) and the Netherlands (EUR 5.7bn) also recorded strong levels. Savills research also noted that investment into industrial assets accounted for 66% of European omnichannel investment in 2021, up from 47% in 2019, as investors were willing to pay premiums to gain exposure to the sector. “The trend for customers shifting to online shopping throughout the pandemic triggered the e-commerce boom, which has been a major catalyst for this sector’s growth,” comments Mike Barnes, Savills European Research. “So far it has shown little sign of slowing, even as restrictions have lifted and, as a result, the significant weight of capital targeting these assets has compressed prime yields by an average of 27bps to 4.20% over the last six months. Portugal, Spain and Finland have hardened by 50 bps each.” This demand is clearly represented by the unprecedented levels of leasing activity in the industrial sector across Europe last year, with take up reaching 38m sq m, 28% ahead of the previous five year average. Germany (8.6m sq m), the Netherlands (6.9m sq m) and the UK (5.1m sq m) drove the lion’s share of leasing activity, whilst Romania (+63%), France (+63%) and Spain (+62%) performed the strongest above their five year averages. Savills has observed that the record shortage of prime stock has driven upward pressure on rents, rising an average of 5% year on year. London (+25%), Dublin (+17%) and Prague (12%) were the fastest growing markets in 2021. Marcus de Minckwitz, Head of Industrial & Logistics, Savills EMEA, suggests, “Market fundamentals have been hugely favourable for the sector in recent years, and they will continue to underpin another strong performance for the year ahead. Our European Logistics Census last year indicated that 46% of occupiers anticipate that they will increase their warehouse floor space over the next 12 months, among the highest in the online retail sector. With such constrained supply, we expect to see increased development in the sector, despite rising construction costs, as well as appetite for assets in non-core locations as investors move up the risk curve in search of higher returns.” In Poland, take-up of industrial space in 2021 reached an all-time high of 7.35 million sq m with an 84% year on year increase in net absorption. Under construction space is 55% pre-leased before completion and vacancy rates have fallen to under 4%. With EUR 2.96 billion transacted, industrial assets accounted for over a half of the total investment volume recorded in 2021, representing a 15% increase year-on-year. John Palmer, Head of industrial Investment, Savills Poland, says: “The warehouse market in Poland is recording record-breaking figures. This trend is set to continue if not accelerate in 2022 and beyond. Investor appetite remains strong for both income producing assets and portfolios and forward funding of new developments.. Poland offers competitive labour rates, FDI incentives, an efficient planning and building permitting system; and all this is backed by growing domestic consumer spending. The dynamics of the occupier is changing with requirements increasingly focused on quality, sustainable and ESG focused properties, professionally managed by long-term landlords”.

Monday seems to be a calm beginning of the week (despite the Russia-Ukraine conflict) as there’s no any major event planned. The rest of the week 7/03-11/03 will surely arouse more interest. What to follow? Have a look at Economic Calendar by FXMAG.COM Tuesday – Japan and Poland The first important indicator of the week is the Japanese GDP (QoQ) (Q4) which is released very lately on Tuesday at 11:40 p.m. The previous value – 1.3% As tensions rise, the country which lies closely to Ukraine has its currency (PLN) weakened, so the Interest Rate Decision of National Bank released on Tuesday as well is worth a look as well. Wednesday - USA On Wednesday we focus on USA, where JOLTs Job Openings (3 p.m.) and US Crude Oil Inventories (3:30 p.m.) are released. Thursday – European Union and USA Thursday is full of Europe-targeted events. According to Investing.com, at 10 a.m., EU Leaders meet at the Summit and shortly after midday ECB releases its Marginal Lending Facility its Interest Rate Decision. At 1.30 p.m. there is a Press Conference planned. The same time ECB speaks to media, US Bureau Of Labor Statistics releases Core CPI (MoM) of February which previously hit 0.6% Friday – UK, EU And Canada Who’s going to wake up early on Friday? The answer is UK Office of National Statistics which releases GDP (MoM) and Manufacturing Production (MoM) at 7 a.m. EU Leaders will rest a little longer as they meet at the another Summit at 10 a.m. According to Investing.com the latest “triple-star” event of 11/03 is the release of Employment Change indicator in Canada, which hit -200.1K in the month before. Data: Investing.com Time: GMT

2021 was a period of intense work, development of a new organizational structure and expanding the team for Walter Herz. The company is operating in the commercial real estate sector, providing comprehensive consulting services across Poland. Consistent expansion of services and the need to provide clients with integrated service and comprehensive support, resulted in a new role emerging in the company. Mateusz Strzelecki, a long-term market expert who has been associated with Walter Herz for 9 years, was appointed Head of Tenant Representation. The promotion opened up even greater opportunities for him to further develop the spectrum of consulting services provided by the company to its clients and to vastly expand its operations in the area of office tenant representation on the largest business markets in the country. - The office market is still the primary focus of ​​Walter Herz's operations. However, the sector has become more demanding due to the intense process of changes and the emerging new directions of its development. Contrary to some predictions, stationary offices have kept their position. A lot is happening in the office market and clients need comprehensive support. Companies still invest heavily in workspace, some even more than before. In order to ensure the highest standard of consulting and full process security in the context of the constant evolution of the market, we must constantly develop. This is what makes our job very interesting, and customer satisfaction is a great motivation for us. Tenant's rights are a field I specialize in. I am pleased to share my knowledge with our business partners and clients, as well as with the participants of Tenant Academy, where I am a lecturer - says Mateusz Strzelecki, Head of Tenant Representation/Partner at Walter Herz. - We have been providing consulting for clients investing in the commercial real estate sector in Poland for a decade. This past year, despite the difficult situation on the market, brought progress for the company, both in terms of the scale of operations and employment growth. We focused on the development of the Office Tenant Representation department. Mateusz Strzelecki, who has been promoted to the position of Head of Tenant Representation, has been responsible for managing the team of advisers and for providing comprehensive support to clients – says BartÅ‚omiej Zagrodnik, Managing Partner/CEO at Walter Herz. An important event for the company was the recent opening of a branch in Lodz. Apart from Warsaw and Cracow, Lodz is the third stationary Walter Herz branch in the country. Therefore, Magdalena Góra has joined the Lodz branch as a Senior Business Development Specialist. - Magda will support our Tenant Representation team in acquiring customers. He has been working in the commercial real estate market for many years. So far, she has advised office tenants, working in the furnishing industry. At Walter Herz, she will have the opportunity to see the market from a different angle. We believe that the combination of our diverse experiences and competences will allow us to raise the standard and comprehensiveness of our consulting, thanks to a broader view of the entire process - says Mateusz Strzelecki, Head of Tenant Representation / Partner at Walter Herz. - We are expanding the scope of strategic consulting services, flexibly changing the employment structure. The expansion of the team allowed us to improve our qualifications in all areas of the commercial real estate market. Last year, employment in the company increased by 30 per cent. We are constantly investing in the development of our organization, including through regular, personalized training that allows to improve the expertise and skills of the employees. We care for the development of our staff and professional fulfillment of all people in the team. Among them, we have numerous long-term employees who take up new functions and are successively being promoted. The company is still actively looking for specialists with experience in consulting concerning all sectors of the real estate market for project teams, in order to be able to effectively develop partner relations with clients and provide them with the necessary knowledge - says Magdalena Zagrodnik, Head of HR & Business Partner at Walter Herz. In everyday work with clients, the company’s motto is - We care & We share. This goal is also a guideline for the further implementation of Walter Herz’s Tenant Academy - a proprietary training project designed to educate tenants of commercial space across the country. Last year, during the fifth edition of the event, we organized five specialized webinars and one hybrid panel. Almost 1000 participants signed up for it. About Walter Herz Walter Herz company is a leading Polish entity which has been operating in the commercial real estate sector across the country. For ten years, the company has been providing comprehensive and strategic investment consulting services for tenants, investors and real estate owners across the country. Walter Herz experts assist investors, property owners and tenants. They provide full service, to companies from the private as well as public sectors. Walter Herz advisors support clients in finding and leasing space, and provide consulting in the implementation of investment projects in the warehouse, office, retail and hotel sectors. The company is based in Warsaw and runs regional branches in Cracow and Łódź. Walter Herz has created the Tenant Academy, the first project in Poland, which supports and educates commercial tenants from all over Poland by organizing specialized training meetings. In order to ensure the highest ethical level of services provided, the agency introduced the Code of Good Practice.

There are still fewer leased and built offices than two years ago, but there is an upward trend in the office sector. Last year, some regional markets saw a sizable increase in demand, even compared to 2019 In 2021, 325 thousand sq m of office space was delivered on the Warsaw market. Such a high result was last seen in 2016. Several spectacular buildings, the implementation of which began before the pandemic, have been commissioned. Skyliner, Warsaw Unit, Generation Park Y and Fabryka Norblina have been completed in the vicinity of DaszyÅ„skiego roundabout. The construction of X20 building and Moje Miejsce II in the district of Mokotów have been completed. Warsaw office resources, which already exceed 6.15 million sq m. have also gained two office buildings in Centrum Praskie Koneser complex, as well as the EQ2 building and Baletowa Business Park. Warsaw with a negligible amount of new projects On the other hand, there is over a half less offices under construction in Warsaw than in recent years, when about 700-800 thousand sq m. of space was commissioned annually. According to Walter Herz, almost 330 thousand sq m. of offices is currently under construction. The last time there has been so little of them built in the city was a decade ago. Most of the projects will be completed this and next year. The office buildings under construction include, among others, Varso Tower, SkySawa, The Bridge, P180 and Bohema. The high level of new supply in 2021 and lower demand caused the vacancy rate to increase in the Warsaw market by 2.8 pp. to 12.7 per cent and become the highest in six years. - The activity of tenants in the office market is still lower than before the pandemic, but its gradual increase is noticeable. The total volume of lease in the office sector in Poland in 2021 was several percent higher than in the previous year. In Warsaw, the volume of lease transactions increased by over 7% year on year. Over 646 thousand sq m. of space has been leased. This result is significantly lower than in 2015-2019, when tenants leased an average of about 830 thousand sq m. of offices - says BartÅ‚omiej Zagrodnik, Managing Partner/CEO of Walter Herz. - However, offices still remain an important element of companies' business activities and interesting assets for investors. So far, rental rates are at the same level as before, but a significant increase in construction costs is putting pressure to increase them – adds BartÅ‚omiej Zagrodnik. The Tri-City with the largest number of new offices In the regions, the highest increase in resources was recorded in the Tri-City. The offer of the Tri-City office market, which is the fourth in the country, will soon reach 1 million sq m. of space, due to the completion of construction of 73 thousand sq m. of offices in 3T Office Park, Palio, LPP Fashion Lab and Gato projects. Cracow, the second largest office market in Poland, increased its offer last year to over 1.6 million sq m. of space. The supply increased by over 60 thousand sq m. of space, due to the completion of Equal Business Park D, Ocean Office Park A, Tertium Business Park B and Aleja Pokoju 81. Over 37 thousand sq m. of offices has been delivered to the office market in Poznan in Nowy Rynek D building. As a result, the resources exceeded 620 thousand sq m. of space. In Wroclaw, Krakowska 35 and Nowa Strzegomska projects were commissioned, offering a total of 22 thousand sq m. of space. As a result, the offer increased to 1.25 million sq m. In Katowice (600 thousand sq m.), over 13 thousand sq m. of space entered the market last year, and in Lodz (583 thousand sq m.) - 3.6 thousand sq m. Katowice market with the largest development Katowice clearly stands out in the regions with the number of offices under construction. There are as many as 200 thousand sq m. of space under construction on the Katowice market, which accounts for nearly a third of the city's current resources. Most of the projects are to be completed this year. The Cracow market is also growing, with 165 thousand sq m. of office space under construction. - If the macroeconomic conditions and the economic situation are favorable, this value may increase in the upcoming quarters with projects that are being prepared for implementation in Cracow - says Mateusz Strzelecki, Head of Tenant Representation/Partner at Walter Herz. - Another office market that is also expanding is Wroclaw with 150 thousand sq m. of space under construction, among others in the Brama OÅ‚awska project, Quorum Office Park and another building in the Centrum PoÅ‚udnie and Tri-City complex with 120 thousand sq m. of offices that are implemented mainly in Gdansk - informs Mateusz Strzelecki. Nearly 80 thousand sq m. of office space is under construction in Poznan and almost 90 thousand sq m. of offices in Lodz. The largest investment on the Poznan market is Andersia Silver, which upon completion will deliver the tallest building in the city. In the near future, Lodz will offer modern space in Manufaktura Widzewska, Fuzja and React projects. Demand in the regions is at a fair level According to Walter Herz, the lease level in regional markets was over a dozen per cent lower last year than in 2019. - While the office sector has seen a significant recovery in the second half of 2021, the annual transaction value is still below the pre-pandemic average. However, the high demand for offices registered last year in Wroclaw, the Tri-City and Poznan, where more space was contracted than in 2019 is noteworthy - says Mateusz Strzelecki. Last year, we could observe the greatest demand for offices in Cracow, where approximately 156 thousand sq m. of space was leased and in Wroclaw, which showed absorption at the level of 153 thousand sq m. While the demand on the Cracow market was slightly lower than in the previous years, in Wroclaw the result was several per cent higher, both in comparison to 2020 and 2019. The Tri-City and Poznan markets also showed an increase in demand last year. The rental volume in the Tri-City amounted to 108 thousand sq m. of office space and was 23 per cent higher than the year before, and nearly 7 per cent higher than in 2019. Poznan, on the other hand, where lease agreements for 73 thousand sq m of offices were signed, recorded over 80 per cent increase in demand for offices, compared to 2019. The demand on the Katowice market dropped to 53 thousand sq m. of space, that’s 16 per cent lower than a year earlier. In Lodz, 51 thousand sq m. of offices were contracted, which is also less than in previous years. Over the last year, the vacancy rate in regional markets increased slightly. Only in Poznan, due to the jump in demand, it slightly decreased. It is currently at the level of 10.5 per cent in Katowice to 16.7 per cent in Wroclaw. Experts point out that the model of arranging office space is changing. More rooms for meetings and videoconferences are now being designed. A larger number of desks also function as workstations, which, depending on the needs, can be used by various people in the hybrid system. About Walter Herz Walter Herz company is a leading Polish entity which has been operating in the commercial real estate sector across the country. For ten years, the company has been providing comprehensive and strategic investment consulting services for tenants, investors and real estate owners across the country. Walter Herz experts assist investors, property owners and tenants. They provide full service, to companies from the private as well as public sectors. Walter Herz advisors support clients in finding and leasing space, and provide consulting in the implementation of investment projects in the warehouse, office, retail and hotel sectors. The company is based in Warsaw and runs regional branches in Cracow and Łódź. Walter Herz has created the Tenant Academy, the first project in Poland, which supports and educates commercial tenants from all over Poland by organizing specialized training meetings. In order to ensure the highest ethical level of services provided, the agency introduced the Code of Good Practice.

  Preliminary figures compiled by Savills suggest that the total real estate investment volume in Europe for the first quarter of the year will reach approximately €70bn, a 19.5% increase year-on-year. Despite geopolitical events, the real estate advisor expects solid European investment activity for the remainder of the year, notably fuelled by large portfolio and entity deals. Savills anticipates total European real estate investment volumes for 2022 to reach between €300bn and €330bn, which would be 5-10% above the five-year average, as long as the Russia/Ukraine crisis doesn’t last too long and doesn’t have a long-term impact on the European economy. Lydia Brissy, Director, European Research at Savills, says: “Given the current context, we expect most of the investment activity this year will focus on Western Europe and particularly, the core countries of UK, Germany and France. Our preliminary Q1 figures suggest that those three countries have received 66.6% of the total European investment volume this quarter, up from 61.4% last year.” Tomasz Buras, CEO, Savills Poland, says: “The hostilities in Ukraine are having a stronger impact on the Polish real estate market than on Western European markets. Developers are facing severe disruptions to supplies of building materials and reduced availability of construction workers. Tenants have already suffered from rising inflation and energy charges, further fuelled by the weakening Polish zÅ‚oty relative to the euro, a currency in which rents are denominated. We are, however, seeing a surge in demand on the residential rental market and more enquiries for office and warehouse space from companies wanting or forced to relocate operations to Poland. Cross-border investors are likely to remain more cautious in the coming weeks, leading to a short-term dip in real estate investment volumes, albeit with a potential for a strong rebound if the armed conflict is quickly resolved peacefully.” James Burke, Director, Regional Investment Advisory EMEA at Savills, says: “For perhaps the first time since the Covid-19 pandemic, prime offices are looking like an increasingly attractive defensive investment as they are relatively protected from higher inflation due to the indexation of rents across core European cities. Based on our preliminary figures, prime office yields compressed further by an average of 17 bps year on year to 3.40% in Q1 2022. Office yield spreads to risk-free rates continue to illustrate the sector’s attractiveness despite some more recent increases in bond yields. Given this, we believe the potential for further yield compression is less likely, and we forecast a stable outlook on pricing throughout 2022.”

Situation in Europe remains global number one as war persists. Even President of The USA, Joe Biden travels to Brussels and Poland to discuss the ongoing war. The day begins with the highly-awaited release of UK Retail Sales which takes place 7 a.m. Previously this indicator amounted to 1.9%. Two hours later we head to Germany, when German Ifo Business Climate Index goes public. The previous one hit 98.9. One hour later, so at 10 a.m. EU Leaders meet and are expected to continue talks linked with the ongoing Russian-Ukrainian war which keeps people, but also investors, companies and markets as a whole uncertain. Natural gas price got back to high levels, crude oil price rises as well. Will there be any new sanctions? In the afternoon it’s time to have a look at the US Pending Home Sales (MoM) indicator which is presented at 2 p.m. hitting -5.7% previously. Source/Data: Investing.com Economic Calendar

InPost, the leader of the modern logistics services market in Poland, is moving its headquarters to Ocean Office Park complex in Cracow. The company has leased 8,300 sq m. of space in building B, implemented in this investment. Walter Herz company supported the company in the process of searching for a location and negotiating lease terms. Amsterdam Stock Exchange, decided to relocate the office to the Cavatina investment located at Pana Tadeusza Street in the Zablocie district of Cracow The international company listed on EURONEXT – Amsterdam Stock Exchange, decided to relocate the office to the Cavatina investment located at Pana Tadeusza Street in the Zablocie district of Cracow, with a view to create the best conditions for the development of the organization and to provide the team with comfortable working conditions in a modern environment. Read next: Altcoins: What Is Polkadot (DOT)? Cross-Chain Transfers Of Any Type Of Asset Or Data. A Deeper Look Into Polkadot Protocol | FXMAG.COM - Changing the headquarters is aimed at meeting our current expectations in terms of the quality of office space, as well as the needs related to the intense growth of the organization. We chose Ocean Office Park because it offers the highest standard of office space and common areas, which ensures comfort and safety at work. Attractive architectural and technical solutions that distinguish this project were the main aspects that determined the choice of location. Green areas and recreational zones arranged within the complex were also of great importance - says Marcin Pulchny, Vice President of the Management Board of InPost. - Environmental protection and ESG policy is of great importance to us. The company was listed first in the Electromobility-Friendly Companies 2022 ranking. It is important for us to achieve synergy, combining corporate governance and natural and social environment. All employees working in the complex will have access to parcel lockers, the most eco-friendly for of delivery for on-line shopping, located on the OOP premises. - adds Marcin Pulchny. It is a great satisfaction for us that InPost has once more benefited from the experience of our team specializing in servicing the office sector - informs BartÅ‚omiej Zagrodnik, Managing Partner/CEO at Walter Herz - We are very pleased that once again, we had the opportunity to support InPost in the search for space. This time, our task was to carry out the relocation process of the company's headquarters, including financial, legal and technical negotiations. We advised the company on various levels, both in terms of searching for offices and space for logistics activities, which is related to the expansion of the e-commerce delivery platform throughout Poland. InPost, as one of the largest logistics operators in Poland, is also one of the most active entities on the logistics space market. It is a great satisfaction for us that InPost has once more benefited from the experience of our team specializing in servicing the office sector - informs BartÅ‚omiej Zagrodnik, Managing Partner/CEO at Walter Herz. Read next: (TRX) TRON USD Decentralised Blockchain Platform That Focuses On Entertainment And Content Sharing. Altcoins: A Deep Look Into The TRON Network | FXMAG.COM InPost enjoys a leading position on the logistics market in Poland. The operator has created the first in the country network of parcel lockers, self-service points of sending and receiving parcels, open 24/7. The company has been present on the market for 22 years and has almost 17 thousand parcel lockers that form the largest business structure of this type on our market. Moreover, the application used to operate the lockers, has over 9 million users. - Searching for a new office for InPost, it was crucial to provide the company with optimal development opportunities within the selected building and to protect the client against an increase in construction costs. Comprehensive services related to the relocation also included securing the tenant's interests when it comes to Project Management, and above all Cost Management. The basis for choosing Ocean Office Park was a very good relation of the quality and technical standard of the offered space in relation to the financial conditions and the location of the facility in the vicinity of key transport hubs in the city - informs Mateusz Strzelecki, Head of Tenant Representation / Partner at Walter Herz. - Ocean Office Park is our third office project that we are implementing in Cracow. The confirmation of the success of this project, in which we commissioned the first office building, is among others, the main Prime Property Prize in the category of Investment of the Year in the Office Space Market, which it has recently won. So far, we have completed six office buildings on the Cracow market. In addition to building A in the Ocean Office Park investment, our portfolio of completed projects includes four office buildings in the Equal Business Park complex located at Wielicka Street and Tischnera Office project. We are happy that InPost is relocating its headquarters to our newest investment in Cracow. We plan to complete the construction of the second office building in the Zablocie district before the end of the year and we hope that the tenants will move into the offices at the beginning of next year – says Natalia JagliÅ„ska, Leasing Director, Cavatina Holding. Cavatina Capital Group is a leader on the Polish real estate market, it has a portfolio of mixed-use properties with a total of 0.5 million sq m. The company independently manages all key investment processes. About Walter Herz Walter Herz company is a leading Polish entity operating in the commercial real estate sector across the country. For ten years, the company has provided comprehensive and strategic investment consulting services for tenants, investors, and real estate owners across the country. Walter Herz experts assist investors, property owners, and tenants. They provide full service to companies from the private and public sectors. Walter Herz advisors support clients in finding and leasing space and provide consulting in implementing investment projects in the warehouse, office, retail, and hotel sectors. The company is based in Warsaw and runs regional branches in Cracow and Łódź. Walter Herz has created the Tenant Academy, the first project in Poland, which supports and educates commercial tenants from all over Poland by organizing specialized training meetings. To ensure the highest ethical level of services provided, the agency introduced the Code of Good Practice. 

April retail sales growth was supported by low base effects, “consumption smoothing” by domestic consumers as well as purchases by and for refugees from Ukraine. Construction output growth eased and has serious headwinds ahead. In June, the MPC may hike the main policy rate by 100bp in order to curb inflationary pressure A tight labour market should keep CPI inflation elevated in Poland Strong retail sales from a low reference base The consumer boom continues. In April, retail sales jumped by 19.0% year-on-year (ING: 16.7% YoY; consensus: 16.1% YoY). Such a strong annual growth was facilitated by a low reference base from April 2021, but that is not the only explanation for the strong reading. Retail sales, %YoY Source: GUS.   Buoyant consumer spending is supported by solid domestic demand. Soaring prices have not significantly reduced purchases as consumers continue to spend despite higher price levels. The monthly seasonally-adjusted real data for different sales categories looks robust. This is all happening despite high inflation, very poor consumer sentiment, and uncertainty caused by war. Demand for goods is fuelled by rising wages and fiscal expansion, including tax cuts.   The inflow of refugees from Ukraine is an additional boost to consumption, particularly in sales of clothing and footwear (up by 121.4% YoY). The high volatility of sales in this category is also linked to the lifting of Covid-19 restrictions.   Implied retail sales deflator increased to 12.1% YoY in April from 11.3% YoY in March. Consumer demand remains robust and high price pressures persist. Construction activity slows amid declining home sales Signs from construction are clearly less optimistic as activity softened visibly last month. Construction output rose by 9.3% YoY vs. an increase of 27.6% YoY in March (ING: 16.6%YoY; consensus: 18.7%YoY). Seasonally-adjusted data points to a 5.1% MoM decline. The decline in activity was broad-based, however, the smallest monthly drop was reported in civil engineering, due to ongoing spending of local and EU funds on infrastructure. The coming months will be tough for residential construction due to: (1) the hit to housing demand from higher interest rates and more restrictive regulations, (2) the sharp upswing in prices of materials, (3) mounting shortages of labour, including outflows of Ukrainian workers and (4) elevated uncertainty linked to the war in Ukraine. Construction output, 2015=100 (S.A.) Source: GUS. Bottom line The beginning of 2Q22 brings buoyant consumer demand and persistently high price pressures. Retail sales data, although somewhat distorted by a low reference base, points to strong consumer demand. This could fuel second-round effects (producers passing higher costs onto output prices). The scale of upward pressure on producers’ costs is reflected in the PPI index, which jumped by 23% YoY in April, so companies have higher costs, which should drive up inflation in coming months.   Data on retail sales, PPI and wages provide strong arguments for further interest rate hikes. The MPC should take further policy action in order to prevent inflation from spiralling. In June, the MPC may hike the main policy rate by 100bp. We still see the NBP reference rate at 7.5% this year and the terminal rate at 8.5%, with upside risk. Read this article on THINK Disclaimer This publication has been prepared by ING solely for information purposes irrespective of a particular user's means, financial situation or investment objectives. The information does not constitute investment recommendation, and nor is it investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument. Read more

July CPI has been revised to 15.6% year-on-year, the highest level so far in 2022. Yet the inflation peak is still ahead of us and we expect it in the autumn as the heating season begins and drives up prices. The Monetary Policy Council (MPC) will be forced to hike rates further We are continuing to see high price growth in restaurants and hotels in Poland New inflation record for 2022 The July inflation estimate has been revised to 15.6% year-on-year, from the 15.5% YoY reported previously. Thus, consumer inflation set a new record this year. Goods prices rose by 16.9% YoY, while services prices increased by 11.7% YoY, up from 16.8% YoY and 11.5% YoY, respectively, a month earlier.   On a monthly basis, prices rose by 0.5%, the slowest rise since February, when indirect tax cuts under the Anti-Inflation Shield, including lower VAT on food, took effect. Fuel prices fell by 2.6% month-on-month in July, while prices of energy carriers increased by 1.6% MoM, mainly driven by a further increase in the price of heating fuels (5.0% MoM). Food price increases were slightly lower (0.5% MoM) than those seen in June. The upward pressure on meat prices has eased somewhat in recent months. There are also seasonal reductions in the prices of fruit and vegetables. On the other hand, sugar prices rose strongly (7% MoM).   On the basis of detailed July CPI data, we estimate that core inflation rose to around 9.2% YoY last month from 9.1% YoY in June. Among the underlying categories, the significant price increase in the 'recreation and culture' category is noteworthy, boosted by increases in package holidays (especially abroad) and increases in radio and TV charges. We are continuing to see high price growth in restaurants and hotels as well. Compared to July 2021, prices in this category were 16.4% higher. CPI inflation and its composition, %YoY, percentage points Source: GUS. Inflation to rise further in the autumn The scale of the price increase in July does not give room for complacency for the MPC. Although the holiday period brings a deceleration in inflation and we may even witness a slight decline in August (thanks to cheaper gasoline), we set another record this year, with prices rising by double-digit levels on an annual basis. Furthermore, we expect that this year's peak in inflation is still ahead of us. Our forecasts indicate that upward pressure on prices will intensify again in the autumn, driven by factors including (1) the end of the summer promotion at the largest fuel distributor, (2) further increases in fuel prices as the heating season begins, and (3) increases in regulated prices, including electricity, heating, water and sewerage charges. Food prices are also likely to rise. High electricity and fuel costs are driving up the cost of storing and transporting goods (logistics), prompting retail chains to raise prices. Moreover, another significant increase in regulated prices is expected in early 2023. More rate hikes ahead Inflation, therefore, is far from being under control and the MPC will be forced to hike interest rates further, albeit on a much smaller scale than we saw in the first half of this year. The National Bank of Poland is unlikely to hike rates to the 8.5% level we expected earlier this year. In the context of still high inflation risks, declarations by some policymakers that the end of the interest rate hiking cycle is near, and that rate cuts may come in 2023, are in our view premature and may result in zloty depreciation.  Read this article on THINK TagsZloty NBP National Bank of Poland CPI Disclaimer This publication has been prepared by ING solely for information purposes irrespective of a particular user's means, financial situation or investment objectives. The information does not constitute investment recommendation, and nor is it investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument. Read more

We're expecting a 100bp rate hike from Hungary's central bank next week, as well as some strong growth figures in Turkey In this article Hungarian central bank set to hike by another 100bp Turkey: Expect strong second-quarter growth despite initial signs of a slowdown Source: Shutterstock Hungarian central bank set to hike by another 100bp We expect the Hungarian central bank to continue with decisive tightening by implementing another 100bp rate hike next week. Based on our updated inflation outlook, we expect additional measures alongside the hike sooner rather than later too, which could help to reduce excess liquidity and therefore improve monetary transmission, supporting the forint. We might see the first steps in that direction as soon as next week's rate-setting meeting. Besides that, we will get more detail on the stronger-than-expected second quarter GDP growth figure, with consumption and investment activity likely to be in the driver’s seat. August manufacturing PMI will remain elevated given order books are full and companies are still able to pass rising costs onto consumers. Turkey: Expect strong second-quarter growth despite initial signs of a slowdown Based on early indicators, we think the Turkish economy put in another strong performance in the second quarter, with 6.5% YoY growth. However more recently there have been initial signs of a slowdown relative to the first half of the year. We expect economic activity to lose momentum in the second half for a few key reasons. Firstly, a higher risk premium in financial markets and growing macro-stability risks could weigh on domestic demand. Secondly, there's a likely loss of momentum in exports given the slowdown in the eurozone. Finally, we're seeing continued cost pressures, tighter global financial conditions, and a challenging local regulatory environment, putting pressure on the corporate sector. Key events in EMEA next week Source: Refinitiv, ING TagsTurkey Hungary EMEA Disclaimer This publication has been prepared by ING solely for information purposes irrespective of a particular user's means, financial situation or investment objectives. The information does not constitute investment recommendation, and nor is it investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument. Read more

A busy week ahead for Hungary with July's economic activity data and August's inflation reading. Retail sales should improve while inflation is expected to lift further. We're also expecting a 25bp rate hike from the National Bank of Poland In this article Poland: central bank decision on rates Russia: inflation subsiding after a big spike Turkey: annual inflation expected to increase further Hungary: August core inflation reading expected to be 18.6% Kazakhstan: above expected inflation calls for another key rate hike Source: Shutterstock Poland: central bank decision on rates In recent public statements, Polish policymakers pointed out the need to continue monetary tightening albeit at a smaller scale than before. Rate-setters mainly mentioned a 25bp rate hike and some even seemed reluctant to hike at all. An upward surprise from the August flash CPI means that a 25bp rate hike to 6.75% (our baseline scenario) looks like a done deal and the Council may even discuss a 50bp rate hike. Still, the end of the rate-hiking cycle is nearing and we currently see the terminal National Bank of Poland rate at 7.0-7.5%. Russia: inflation subsiding after a big spike Following a sharp spike to 17.8% year-on-year in April, Russia has been on a disinflationary path due to weaker demand, ruble appreciation and a good harvest. Next Friday’s CPI numbers for August are likely to show a 0.6% month-on-month decline in prices and a deceleration in the annual rate to 14.2% YoY. This challenges our year-end expectations of 13% and suggests that the actual print is likely to be at the lower end of the Bank of Russia’s 12-15% range. This means that the key rate, which has already been cut from 20.0% in February-March to 8.0% in July, has room to go lower. Yet given the stabilisation of households’ inflationary expectations and unclear supply-side prospects, we expect CPI to remain elevated next year and doubt that this downside to the key rate could exceed 100 basis points by year-end. The next Central Bank of Russia meeting is scheduled for 16 September. Turkey: annual inflation expected to increase further We expect annual inflation to have risen further in August to 81.6% (2.2% on monthly basis) from 79.6% a month ago, despite a decline in gasoline prices, as pricing pressures will likely remain broad-based with a largely supportive policy framework leading to currency weakness and external factors weighing on import prices. Hungary: August core inflation reading expected to be 18.6% We are facing a really busy calendar in Hungary next week. The first set of data will be July economic activity. Retail sales could improve a bit as pensioners got extra transfers from the government which is practically a retroactively increased pension due to higher-than-expected inflation. This could boost food consumption, while non-food retail got a boost from the new (less favourable) utility bill support scheme, which urged households to replace old household appliances with newer, more energy-efficient ones. Based on PMI data, July industrial production could still be OK, though we see some downside risk here due to planned summer shutdowns. While industry is doing well despite the plethora of challenges, the trade balance is rather driven by the ever-rising energy bill of the country, and so we see further deterioration in the trade deficit in July. The highlight of the week is going to be the August inflation reading. Due to a refined fuel price cap, which narrowed the range of beneficiaries, the Statistical Office will recalculate the fuel price higher in the consumer basket (some weighted average of capped and market prices). This might explain 0.9-1.0ppt from the 2.3% month-on-month inflation, which will lift the yearly reading up to 16.2%. As rising energy and agricultural commodity prices spill over into processed food and service providers adjusting their prices to the rising utility bills, we see core inflation at 18.6% year-on-year. However, there is one beneficiary of this sky-high inflation environment: the government budget, where we expect yet another surplus on rising revenues in August. Kazakhstan: above expected inflation calls for another key rate hike National Bank of Kazakhstan is likely to make another key rate hike on Monday from the current level of 14.50% to 15.00% or higher. Following the latest 50bp hike at the end of July, inflation continued to outperform the market and NBK expectations, reaching 16.1% YoY in August. Higher inflationary pressure appears to be broad-based in terms of structure and most likely calls for an adjustment in the key rate level. Key events in EMEA next week Source: Refinitiv, ING TagsEmerging Markets EMEA Disclaimer This publication has been prepared by ING solely for information purposes irrespective of a particular user's means, financial situation or investment objectives. The information does not constitute investment recommendation, and nor is it investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument. Read more

PRESS RELEASE Warsaw, 31.01.2022 Bartłomiej Zagrodnik, Managing Partner/CEO of Walter Herz In the upcoming time, modern workplaces, full of new technologies and creating a friendly environment for users, will gain more and more importance. Office buildings operating in accordance with ESG principles, new environmental, social and corporate governance, especially those located in the city centers will take the leading position. Further changes on the office market will be largely determined by the pace of adaptation of the hybrid work model in companies. If we look at today's market, we can see that hybrid work is slowly becoming the norm. Companies are open to this model, which is related to the preferences of employees, who more and more often expect employers to be more flexible in the choice of the form of work and working hours. Many young people base their interest in the job offer and the willingness to take part in the recruitment on it. Therefore, in the upcoming years, offices will evolve into spaces adapted to the rotational work model. Clearly, it is not possible to introduce a division into remote and office work in all sectors. However, for example, in the area of IT, finance, administration and accounting, or services for business, marketing, customer service and HR, we can expect a gradual spread of the hybrid work model. Flexible rental option In the upcoming years, some companies will probably decide to reduce the amount of office space they occupy. Although the scale of this phenomenon so far, contrary to appearances, is not as large as it may be assumed, the tendency is visible. Certainly, tenants will also look for increasingly flexible solutions, thanks to which they will be able to use office space in many ways, adapting it on an ongoing basis to the changing needs of the company. The number of companies that will decide on the core & flex option, assuming a combination of traditional space and the use of flexible space, will increase. This direction in the selection of space for work by entrepreneurs is noticed by the owners of office real estate, who include flexible spaces in the pool of amenities in their buildings. It is also grist to the mill to the companies offering flex space. The segment is systematically growing. This year, more coworking spaces are scheduled to be opened all over Poland. It is likely that an increasingly popular option will also be subscriptions to access coworking networks with space available in various locations. It should be noted that buildings located in central parts of the cities are now even more popular than before. This is visible in, for example, last year's lease structure in Warsaw, where most of the leased space was located in the city center. The offices themselves are also changing. Their space is even more adapted to interactive group work. It gains open space, which, with low office occupancy, gives employees a sense of greater comfort. At the same time, access to quiet working areas and social areas is also important. New investors We are glad that many entities are planning to enter the Polish market. It will result in spaces potentially reduced by some industries, gaining new occupants. One of the main sectors that has been dynamically developing in Poland for years, and is the tenant of a large part of offices is the industry that provides modern services for business. Growing employment in this segment is related to the constant influx of new investors to our country and the development of organizations already present on the Polish market. Large-scale recruitment is taking place in the sector. Most jobs are offered today by companies from Great Britain, Switzerland, the Netherlands, Belgium and Germany, which have recently decided to transfer their services to our country. Sector companies are constantly opening new recruitment processes, but there are fewer candidates than job positions. Also in this industry, the expectations of employees and employers differ. Most of the employees, who are generally flooded with job offers, expect to work in a hybrid or fully remote system, while the employers want to return to the offices. I believe that this year we can expect more tenant activity, which will translate into a decline in the office vacancy rate in the country. Across the world, we can already observe a great return to offices. Symptoms of the reversal of the downward trend in the office sector could already be observed on our market in the last quarter of 2021. In Warsaw, in the last three months of last year, tenant activity returned to the level seen before the pandemic. Only the fourth quarter of last year was responsible for as much as 40 per cent of space leased on the Warsaw market throughout all of 2021. Last year, the demand for Warsaw offices reached almost 650 thousand sq m. of space, while almost 325 thousand sq m. of new offices were launched onto the market. Almost 80 per cent of the commissioned space is located in the center. Similarly, most of the contracted offices are located centrally. Demand is rising, supply is dropping Unfortunately, most office investments are still frozen. Developers are cautious about building new projects. In Warsaw, half as much office space is under construction compared to 2019. Investments are being slowed down by the rapidly growing costs of real estate development, amidst unstable market conditions. If the situation does not change and new projects are not launched in the next 2-3 years, we may have a shortage of space in the main office markets in the country. On the other hand, the activity of investors is growing, but they have more and more requirements in terms of the quality of buildings, including ESG. There is a growing demand for modern office buildings that meet restrictive requirements related to ecological parameters, located in the largest cities in the country. The estimated value of the transaction volume on the investment market in Poland in 2021, is similar to the level achieved in 2020. However, we expect an increase in the dynamics of the investment market in the upcoming months and a greater inflow of capital to Poland. There are many transactions concerning projects from the office segment that have recently entered the market that are being negotiated nowadays, therefore this year should bring an improvement in results. Critical ESG ESG issues will be of key importance for investors' decisions. It is not only about the growing general awareness of sustainable development and the impact of construction and buildings on the environment, but also about the adopted requirements and the related need to report on ESG activities. Investment strategies will be closely connected to the acquisition of assets and cooperation with companies that offer a product that meets environmental requirements. It will have a significant impact on the real estate market in the upcoming years and the value of assets. Investors and tenants will expect low-emission office buildings, or plans to achieve that goal. Facilities offering solutions in the area of ​​climate technologies will gain a competitive advantage. Trends related to the certification of buildings in terms of user-friendly impact and guaranteeing their full safety, will also become stronger. About Walter Herz Walter Herz company is a leading Polish entity which has been operating in the commercial real estate sector across the country. For nine years, the company has been providing comprehensive and strategic investment consulting services for tenants, investors and real estate owners. It provides extensive support for both public and private sector. Walter Herz experts assist clients in finding and leasing space, and give advice when it comes to investment and hotel projects. In addition to its headquarters in Warsaw, the company operates in Cracow and the Tri-City. Walter Herz has created Tenant Academy, first project in the country, supporting and educating commercial real estate tenants across Poland, with on-site courses held in the largest cities in the country. In order to ensure the highest ethical level of services provided, the agency introduced the Code of Good Practice.

In Central and Eastern Europe, the hiking cycle is coming to an end. in the Czech Republic, we're not expecting any further rate rises. Poland should deliver some fine-tuning, and expect the rate of interest rate hikes to slow in Romania and Hungary. That said, peak inflation is yet to come so risks abound In this article Poland: NBP turning dovish, but the peak in inflation is yet to come Czech Republic: CNB is comfortable with the end of the hiking cycle   Click to scroll down Hungary: The first signs of the winds of change Romania: Hiking cycle nears peak Poland: NBP turning dovish, but the peak in inflation is yet to come Poland's GDP growth in the second quarter surprised to the downside, reaching 5.5% YoY vs 8.5%YoY in the first three months. The sequential slowdown of 2.1% Quarter-on-Quarter (seasonally adjusted) was the second worst in the last few decades, only coming in deeper during the pandemic in early 2020. We think the data exaggerates the magnitude of the economic slowdown in the last quarter and the sharp sequential slide was also caused by statistical revisions. Still, the numbers mark a turning point in activity and the possible beginning of a technical recession in 2022. July activity figures present a similar picture, with industrial and construction, production, and retail sales surprising on the downside; the backdrop of this data shows the economy is losing momentum. The previous growth engines in manufacturing slowed, and seasonally adjusted retail sales indicate that the consumption boom is fading. Now we see indicators such as the PMI index fall well below 50 and consumer sentiment is worse than during the pandemic. The influx of some 2 million Ukrainian refugees supports the sale of necessities, but growth in durable goods is weakening.  After stabilising during the summer, August CPI figures show inflation pressures are resuming in all categories. Most worrisome is the sequential growth of core inflation, which spiked again after the June-July slowdown. This matches our non-consensus view that CPI should reach its new peak later this year and into next, reaching just below 20% YoY. The energy price shock is largely to blame and the government is preparing offsetting measures but sustaining those is perhaps prohibitively expensive.  The 2023 budget draft presents a sector deficit of 4.4% of GDP almost in line with our forecast and about 4.5% in 2022. We see revenue estimates as reasonable, but worry spending may be higher given the energy crisis. Also, locally funded investment projects may replace the EU Recovery Plan, so raising borrowing needs or the deficit.  Overall, the fiscal stimulus in 2023 should be comparable to over 3% of GDP we estimate for 2022, thus we see an upside risk for the 2023 deficit and higher borrowing needs than planned. Still, Poland seems to be somewhere between Hungary (where pre-election fiscal expansion was very high) and the Czech Republic, which delivered orthodox monetary and fiscal consolidation in 2022. Poland's Monetary Policy Committee switched to a dovish tone, but the governor withdraw from his opinion of 'one 25bp hike and done'. We downgraded our terminal rate forecast from 8.5 to 7.5%, which is a bit higher than consensus but matches market pricing. We still think that the risk of persistent inflation is high, but the government should mask inflation with additional extraordinary measures and fiscal stimulus would still be directed to households. The economic slowdown would make the MPC less prone to hike, but still recent CPI data from Poland and elsewhere support our view that the energy shock has to pass through to prices and the CPI peak is still ahead of us.  GDP growth in the CEE region (%QoQ) Source: Macrobond, ING Czech Republic: CNB is comfortable with the end of the hiking cycle Second-quarter Czech GDP had shown a slight increase instead of the expected economic contraction; the second estimate brought another upward revision. The main reason for the positive surprise is the rise in inventories, while consumption fell slightly. So, the outlook for the second half of the year has not changed significantly and the slowing economy is confirmed by both leading indicators and monthly data. Inflation surprised to the downside in July for the first time since last May, mainly due to energy prices and the unclear fix/float mix of household contracts. This may imply a slower pass-through of energy prices into CPI, but we still expect inflation to peak around 20% in the coming months. On the fiscal side, upward pressure on wages and household energy cost subsidies remain, but the government's actions to date do not pose a material risk to our forecast of a government deficit of 4.1% of GDP. Moody's, unsurprisingly, downgraded the Czech Republic's rating outlook from stable to negative in early August following Fitch's earlier decision. We do not expect a downgrade in ratings unless there is a complete cut-off of gas supplies from Russia. On the monetary policy side, the CNB remains in 'wait-and-see' mode. Our forecast remains unchanged, i.e. no interest rate hike. Although the economic picture is slightly better, surprisingly low inflation has created a solid buffer for the new board to remain dovish in the months ahead. Moreover, the depreciation pressure on the koruna has eased, so we do not see unsustainable intervention costs as a risk for the coming months either. The koruna should hold at current levels near the intervention band of 24.60-24.70 EUR/CZK. Hungary: The first signs of the winds of change In general, economic activity in Hungary is doing OK despite the plethora of challenges, which is represented well by the 6.5% year-on-year GDP growth in the second quarter. However, the first red flags have already popped up. The volume of retail sales has been on a downward trajectory for three months, a phenomenon which was last seen during 2008-2009 and in 2012. Hungary fell into recession in both periods. Real wage growth is still holding up (+3.3% YoY in June), but it is slowing quickly. The continued acceleration in inflation (13.7% in July) and the expected peak at 22% means a meaningful deterioration in real disposable incomes in the coming months. Finally, the unemployment rate increased for the first time in six months in June, though the labour market has remained extremely tight. Against this backdrop, we expect a technical recession in Hungary during the second half of the year. Its impact will mostly be felt in the 2023 average GDP growth (1.0-1.5%), as the strong first half in 2022 will keep this year’s economic performance elevated. However, any economic wobble shouldn’t frighten the National Bank of Hungary and we see the central bank continuing its fight against inflation with interest rate hikes and more. A 14% terminal rate might prove to be enough in our view if the upcoming rate hikes are accompanied by measures which actively tighten excess liquidity in the financial system. This combination could give a temporary boost to the still vulnerable local currency, but the real story of the forint can be found elsewhere, i.e. the gas and EU story. A satisfying conclusion in both (or at least in the Rule-of-Law debate) could free up the forint’s hidden potential. Romania: Hiking cycle nears peak Despite high-frequency indicators pointing to a small quarterly growth for second quarter GDP, the flash data again surprised strongly to the upside. Second quarter GDP expanded by 2.1% versus the previous quarter, dashing speculation about an ongoing recession. Corroborating this with the even stronger 5.1% quarterly growth from the first quarter and assuming no significant data revisions going forward, we can safely say that even a stagnant economy in the second half of 2022 would still take real GDP growth to 7.0% in 2022. On the inflation front, starting in the fourth quarter of this year the inflation profile will start descending gradually and the central bank estimates it will enter the target band (1.5%-4.5%) by the end of its two-year forecast horizon. This is in line with our forecast, though the recent spike in energy prices might complicate things again. We see the year-end inflation rate at 13.6% in 2022 and 7.0% in 2023. The relative stabilisation of the inflation trend will most likely incentivise the National Bank of Romania to reduce its hiking pace further. With two more policy meetings this year, the pace of tightening is likely to soften to 50 basis points in October and 25 basis points in November, taking the key rate to 6.25% by year-end. However, the broad monetary conditions might not fully reflect the remaining tightening steps. As we move ahead into the second half of 2022 the liquidity picture could improve a bit as the government should speed up its spending if it were to stick to its 5.8% of GDP budget deficit target. As of the end of July, the budget deficit stood below 2.0% of GDP, hence there’s almost 4.0% of GDP to spend (approximately RON55bn) in the remaining five months of 2022. Source: https://think.ing.com/articles/central-banks-look-for-a-peak-in-the-hiking-cycle/?utm_campaign=September-01_central-banks-look-for-a-peak-in-the-hiking-cycle&utm_medium=email&utm_source=emailing_article&M_BT=1124162492 Disclaimer This publication has been prepared by ING solely for information purposes irrespective of a particular user's means, financial situation or investment objectives. The information does not constitute investment recommendation, and nor is it investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument. Read more

Among economic data, PMI indexes can often be the fastest to show the current picture of the economy. Unlike GDP data, for which one has to wait a long time, preliminary PMIs are published the same month they refer to, with final readings appearing as early as the following month. The donwward of Europe's largest economy The data released today seem to indicate a deterioration in the economy, which could have an impact on stock indexes. For Europe, data from its largest economy, Germany, may be important. The S&P Global/BME Germany Manufacturing PMI for August was revised downward to 49.1 points from a preliminary reading of 49.8 points, indicating a second consecutive month of decline in factory activity. According to this report, there is a sustained decline in new orders, which seemed to affect production levels and slowed the pace of job creation in factories. On the positive side, companies may have been less pessimistic about the outlook than a month earlier, although concerns about high inflation, uncertainty in the energy market and the risk of an economic slowdown still seem to persist. PMI for the eurozone The index for the eurozone as a whole was also at a lower level. The S&P Global Eurozone Manufacturing PMI was revised down to 49.6 points in August from an initial estimate of 49.7 points. Manufacturing declined at a similar pace to July, when the deceleration was the strongest since May 2020. New orders once again fell sharply. Weak demand conditions were a major drag on manufacturers in August, reflecting deteriorating purchasing power across Europe with high inflation. In response to the deteriorating economic outlook, manufacturers further reduced their purchasing activity, the report said. The Lowest Poland Manufacturing PMI In Poland, the situation does not seem optimistic either. Poland Manufacturing PMI was the lowest since 2020. The S&P Global Poland Manufacturing PMI fell to 40.9 in August from 42.1 in July, below market forecasts of 41.8 points. The reading pointed to the fourth consecutive month of declining factory activity and was the worst since May 2020, as both production and new orders fell sharply. On the price front, costs and fees continued to rise at a slower pace, although high inflation continues to erode purchasing power, with sales from both domestic and international sources falling, a statement to the publication said. So it seems that economies still may not have reached their, which may also translate into a lack of bottoms in stock market indices. The following indicated their drop today, with Germany's DAX losing 1.7 percent from the start of the session until 10:55 GMT+3, France's CAC40 losing 1.68 percent and Italy's FTSE MIB losing 1.5 percent.

Today's press conference should be dovish, but we don’t expect the governor to definitively end the tightening cycle given the CPI peak ahead (at close to 20% in Feb-22 in our view) and continued upside risk for inflation Poland's central bank The MPC raised interest rates by 25bp (the reference rate to 6.75%), in line with our view and consensus expectations. The switch to smaller 25bp increments in the tightening cycle (the previous hike was 50bp in July), reflects policymakers' growing concern about economic growth prospects. At the same time, however, inflationary pressures persist. In August, inflation rose to the highest level in decades at 16.1% year-on-year. Moreover, the inflation outlook remains highly uncertain, as the economy has yet to fully absorb the new energy shock. This process has already started and is one of the reasons why core inflation resumed its strong sequential rise in August, to around 10% YoY. Companies continue to pass on rising costs to the prices of their goods and services. In our view, the inflation peak is still ahead and we see CPI at about 20% YoY in February 2023. The key changes in the communiqué suggest that the Council is strongly counting on the economic slowdown to reduce inflation. However, we are concerned that the GDP slowdown alone will not materially accomplish this goal. The latest energy shock is so powerful that companies will continue to pass on costs to product prices, even in a weaker economy. We also expect a large fiscal expansion in 2023. European governments want to show that the gas war will not derail their economies. This is a reasonable approach but Poland already has a very expansionary policy mix. So the side effect of these energy programmes could be persistently high inflation, and this risk is quite high in the Polish economy. In this environment, the MPC is likely to avoid explicit declarations about the imminent end of the hike cycle, leaving themselves wiggle room for further monetary tightening. In our view, interest rates could ultimately rise to 7.5% in the current cycle, and there will be no room for monetary easing in 2023, especially if there is further fiscal expansion as households and sensitive industries are protected from the consequences of rising energy prices in the forthcoming election year. Key to shaping market expectations for the monetary policy outlook will be the tone of today's press conference by NBP President Adam Glapinski. We are concerned that the president will again strike a dovish tone, although in light of the uncertainty about the further course of the inflation path, he is unlikely to explicitly declare his readiness to end the cycle of rate hikes. Also, he can again announce that conditions for interest rate cuts may emerge at the end of 2023. The prime minister spoke about the approaching end of interest rate hikes on Tuesday. The main changes in MPC press statement 1. unchanged paragraphs talking about future rates 2. counting on the GDP slowdown to lower CPI 3. no longer listing demand pressures among risks to CPI 4. noting high core inflation 5. noting strong labour market and wages. A dovish statement from President Glapinski today would make the zloty exposed to a falling EUR/USD. Also, the National Bank of Poland's approach compared to the region suggests that the PLN should remain weak. The National Bank of Hungary is raising rates and communicating that it will tighten further. The Czech National Bank has stopped raising rates but is intervening to defend the koruna. The NBP says it will soon end the cycle of increases and may even start to cut rates from next year. But it is not intervening. So it is difficult to be optimistic about the zloty exchange rate. Read this article on THINK Disclaimer This publication has been prepared by ING solely for information purposes irrespective of a particular user's means, financial situation or investment objectives. The information does not constitute investment recommendation, and nor is it investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument. Read more

Pointpack APM venture with risks With the purchase of a stake in P2A, Pointpack has loudly entered a new area of activity of delivering APMs that it previously was only attempting to develop with its pilot program. Although P2A’s involvement in a large contract with the Polish Post will substantially change the company’s results, we are cautious it will have an overly supportive impact on the company. Especially, because at the same time Pointpack has effectively delayed any potential distributions to its shareholders from its core cash generation operations (we delay the first assumed dividend to 2024E with a PLN 7.60ps DPS, DY of 19.8%). We expect consolidation of P2A to result in transformation of the company’s top line on a consolidated basis, but not to have any impact on the underlying business. In total, we increase our 2022E/2023E revenue forecasts to PLN 103.3m/154.4m (from PLN 59.5m/74.4m). At the earnings level, we expect P2A’s incremental contribution to offset the increased fixed cost base (as was visible in 1Q22 results) and slowdown related to anticipated by us recession in 1H23E. Overall, we increase the respective net profit forecast to PLN 6.8m/8.5m in 2022E/2023E (from PLN 6.4m/7.0m assumed earlier, we note that without P2A deal we would have cut 2022E/2023E net profit estimates by 22%/34%). With our outlook on the core business, we maintain a BUY rating and set our FV at PLN 55.0ps (vs. PLN 60.00ps earlier), which implies 44% upside. On our forecasts, Pointpack trades at a P/E of 6.3x/5.0x for 2022E/2023E. P2A’s M&A will alter the company’s profile. On 20 May 2022 Pointpack acquired a ca. 51% stake in P2A BOX sp. z o.o., a provider of APMs with smart cloud solutions that has one large contract with the Polish Post for delivery and maintenance of ca. 2k APMs (with an estimated value of PLN 240m in total over multiple years). Although Pointpack has paid for this 51% stake price reflecting its book value (an immaterial few PLN k), we consider the additional PLN 10m paid to one of P2A’s stakeholders for bonds issued by P2A as the effective economic price paid for the stake in P2A. Pointpack estimates its maximum liabilities from the deal at to up to PLN 30m (including change in WC). Looking beyond the top line of P2A’s contract with the Polish Post. Overall, we consider the P2A deal negatively for Pointpack from a strategic standpoint, as in our view engagement in such a larger (and likely one-off) contract for delivery of APMs temporarily limits the company’s cash generation, introduces a new set of operational risks and effectively changes the company’s profile. With an uncertain profit profile from the deal (considering the 51% stake, effective price for the bonds, risks for the Polish Post contract’s margin, future outflows related to minority dividends, cost of financing and undefined synergies that require additional investments from Pointpack), we are sceptical the P2A deal will prove to be an outright success (if the deal with the Polish Post is not expanded). In total, we estimate its NPV (excluding WC changes) at only PLN 2.8m for Pointpack. Analyst Marcin Nowak marcin.nowak@ipopema.pl + 48 22 236 92 44

This report is prepared for the Warsaw Stock Exchange SA within the framework of the Analytical Coverage Support Program. 3.0. 502/2022/AR Event: Sales and gross profit margin for August revealed. On Wednesday, during WSE trading hours, Action informed about their preliminary sales and gross profit margin on sales in August. The Group’s consolidated revenues reached PLN 189 million (up 7% yoy) while the gross profit margin on sales lost 0.1 pp mom and amounted to 7.1%. Expected impact: Neutral, as the information hit the market during Wednesday’s trading. It’s likely that the reported margin may finally turn higher than the preliminary one, as it was the case before, in our view. The revenue growth dynamic stays in the range 5--10% which corresponds with the Company’s target this year Analyst Jakub K. Viscardi +48 22 504 32 58

WSE Research Coverage Support Program 4 July 2022 06:00 CEST ATM Grupa Temporary delays We remain positive on the company’s long-term premium content exposure, as we strongly believe ATM Grupa is able to benefit from the trend of adding local content by OTT platforms. However, in the short term the company is not spoiling investors with unexpected either delays or one-offs. Firstly, we consider negatively the delay of production of the “Black Dog” TV series for Viaplay, which limits the number of premium TV series to be recognized in 2022E. Moreover, we highlight the delay in recognition of the contribution from the Swedish real estate project (to 2Q22E from initially planned 4Q21), recognized in 4Q21 a PLN 6.3m write-off on a loan to an associated company (we do not assume its reversal) and uninspiring the TV production segment revenues in 1Q22 (we expect flattish revenues from TV content production in 2022E/2023E). On top of that, the company’s associated companies unfortunately do not ease the situation (beside the mentioned one-off, also the value of Boombit’s stake has been declining, while Black Photon’s performance so far is below our initial expectations). We forecast 2022E/2023E revenues at PLN 263.5m/259.0m (+18%/-2% y/y, with 2022E being boosted by PLN 35m from the Swedish project) and net profit at PLN 40.0m/43.1m (+63%/+8% y/y). We maintain our BUY recommendation, but mainly due to higher cost of capital and Boombit’s lower market value, we decrease our FV to PLN 4.40 per share (implying 27% upside) from PLN 5.80ps. On our forecasts, ATM Grupa trades at a P/E of 7.3x/6.8x for 2022E/2023E, or at 7.2x/7.0x adj. P/E for 2022E/2023E if Boombit is excluded. Temporary delay in premium content pipeline does not affect long-term story. Following the delay in production of the “Black Dog” TV series for Viaplay to 2023E we cut the assumed number of premium TV series projects to be recognized in 2022E revenues to 1.6x (with “Lovzone” ordered by Netflix being the anchor project), down from the 2.5x equivalent assumed previously. However, we slightly upgrade our long-term expectations for premium content uptake, as we believe OTT’s services will be gradually increasing the orders on local markets (in our view, entrances of Disney+ and HBO Max to Poland supports such an expectation). As an example, we point to Netflix’s recent announcement of ordering 18 original productions in Poland in 2022E/2023E (including 9 TV series and 9 movies), out of which unfortunately only one project was allocated to ATM Grupa. Potential Boombit disposal may stumble on mobile games market sentiment. With Boombit’s share price declining by 42% (adj. by dividend) since ATM’s announcement of a strategic options review process regarding its stake in Boombit (4.0m shares, 29.63% of Boombit’s equity), we consider the probability of a potential sale of the stake in Boombit as even lower than previously. Hence, we keep our base assumption and we do not include the potential disposal in our forecasts, although in our view focusing more on core content related operations (or paying a one-off dividend) would be welcomed by the market. Analysts Marcin Nowak marcin.nowak@ipopema.pl + 48 22 236 92 44 MichaÅ‚ Wojciechowski michal.wojciechowski@ipopema.pl + 48 22 236 92 69 GPW’s Analytical Coverage Support Programme 3.0

K2 Holding Simpler structure, cash for growth Since the publication of the news of negotiations with Netia regarding the sale of Oktawave, K2 Holding's stock price has risen by PLN 7.5 per share, while outperformance against the WIG index amounted to 54%, i.e. nearly PLN 12 per share. The ultimate outcome of the negotiations was a transaction worth PLN 33.7m (EV) and an estimated cash inflow to K2 Holding of PLN 26.1m (after deduction of tax and transaction costs), which is equivalent to PLN 11.3 per share. Oktawave has not generated positive cash flow in recent years and thus has not been sufficiently factored into the holding's valuation. As a result of the sale, the costs previously attributed to Oktawave and in subsequent quarters charged to other segments (ca. PLN 1m per year) may prove to be somewhat of a burden on the company. On the other hand, K2 Holding's office lease agreement expires at the beginning of 2023, and renting new space could generate savings also approximating PLN 1m a year. At the same time, the company has already managed to sublease part of the office space, which will affect the result in the second half of the year. The clearly positive investor reaction to the deal is, in our view, limiting the upside potential in the short-term, although we still see nearly 20 percent undervaluation over a 12-month horizon. In the nearest future, the stock price may have the following positive catalysts: 1) Fabrity's return to generating higher operating profit after several quarters of slowdown and negative y/y profit growth, 2) acquiring a partner for the PerfectBot project, which will result in a more realistic valuation of this subsidiary, which is currently burdening the holding's operating profit with a loss of ca. PLN 1–1.5m per year, 3) a small acquisition expanding the group's competence in the software segment. The software segment will remain a major contributor to this result. In our forecasts for 2023–2024 Fabrity accounts for 80% of adj. EBITDA and operating profit of the K2H Group. In 1Q22, Fabrity's revenues grew by 25% y/y, and we think that growth approximating 20% should continue in the following quarters, and over the year we forecast revenues higher by 21%, up to PLN 48m. The scale of Fabrity's business is now 4–5x smaller than that of traded Spyrosoft or PGS Software (PLN 174m and PLN 203m revenues in 2021, respectively, y/y increases of +54% and +42% y/y, respectively), resulting in a discount to peers – we believe an inexpensive acquisition to increase the scope of business and support the Group's competence could meet with a positive market reception. The PerfectBot Project. PerfectBot generates ca. 2% of the Group's operating income, but has the potential for significant scale improvement. The company is working on attracting an external investor, which is very likely to happen in the coming months. A potential transaction will reduce K2 Holding's bailout efforts, while also resulting in a more realistic valuation of the business, although unlike in the case of the Oktawave transaction, we would assume only dilution of shares, with no direct cash inflow to K2H. As a result of raising the share capital, it cannot be ruled out that K2H's stake will fall below 50%, and consequently the full consolidation method will be discontinued, which would improve the holding’s operating profit. Valuation and recommendation. Our target price is based on several valuation methods, with 50% weighting assigned to the DCF method, 25% to market multiples valuation and 25% to sum-of-the-parts valuation. Our 12M target price is PLN 36, thus implying an upheld BUY recommendation. Analyst Dominik Niszcz GPW’s Analytical Coverage Support Programme 3.0

This report is prepared for the Warsaw Stock Exchange SA within the framework of the Analytical Coverage Support Program. 3.0. This is an excerpt from the Polish version of DM BOŚ SA’s research report. Voxel Sector: Health care & biotechnology Market Cap: US$ 76.2 m Fundamental rating: Hold (→) Bloomberg code: VOX PW Market relative: Underweight (→) Av. daily turnover: US$ 0.02 m Price: PLN 34.00 12M range: PLN 34.00-55.60 12M EFV: PLN 46.4 (→) Free float: 51% Recommended action We expect weaker 2Q22 financial results both, in a qoq and yoy perspective due to the fact that (i) testing for SARS-CoV-2 almost stopped, (ii) the hospital generated losses, (iii) write-offs (related to the absence of testing for SARS-CoV-2) were made, and (iv) Alteris posted poor results. We believe quite a high demand is observed in the diagnostic segment (for PET and SPECT scans). 2Q22 financial results preview In 2Q22 we assume Voxel performed 71,000 procedures altogether, (up 13% yoy) including 26,000 (up 11% yoy)/ 40,000 (up 12% yoy)/ 4,000 (up 27% yoy) CT/ MRI/ PET procedures. We estimate Voxel’s 2Q22 non-consolidated revenues at PLN 48 million (up 17% yoy). We forecast 2Q22 revenues of RP/ Scanix/ Exira/ Vito-Med/ Alteris to reach PLN 2/ 6/ 3/ 6/ 17 million. We expect the Group’s consolidated revenues to arrive at PLN 76 million in 2Q22 (down 30% yoy); the revenues decline stems probably from drastically shrinking numbers of SARS-CoV-2 testing (below 500 tests vs 115,000 in 2Q21). The Group’s 2Q22 EBIT should reach PLN 11 million (down 59% yoy). We expect the pressure on salaries and inflation cost growth. Vito-Med’s hospital should generate further losses which we forecast at PLN -5 million in the discussed period including write-offs at c. PLN -2 million. The Company has been restructuring the hospital business in order to increase revenues keeping the current level of employment and existing equipment base intact. We expect flat yoy net financial costs (they should rise in 3Q22) and forecast 2Q22 NI at PLN 7 million. Financial forecasts We uphold our financial forecasts for Voxel. Analyst: Sylwia Jaśkiewicz, CFA GPW’s Analytical Coverage Support Programme 3.0

This report is prepared for the Warsaw Stock Exchange SA within the framework of the Analytical Coverage Support Program 3.0. Daily 12.IX.2022 Event: Buyback update The Company informed that between September 5 and 9 it had purchased 9 776 shares (0.2259% of the share capital) and a number of own shares obtained in the pending buyback reached 163,200 (3.8% of the share capital). Expected impact: Neutral. Analyst Sylwia Jaśkiewicz, CFA Mikołaj Stępień, Michał Zamel

Mostostal Zabrze Good results despite market turmoil Mostostal Zabrze operates in the specialist construction, assembly and industrial production sectors, and in all these areas there are no signs of slowing down. Moreover, good results continued despite the strong increases in raw material prices. However, a new risk appeared on the horizon in the form of several times higher energy prices from the beginning of 2023. The degree of their impact on the results will depend on the possibility of transferring higher costs to consumers, which at the moment is unknown. Mostostal Zabrze has three main segments, largely separate. In the segment of industrial implementations and design, it is primarily an engineering company. In the general and engineering construction segment, it focuses on specialist projects, including waste incineration plants, swimming pools, and hospitals, many of which are implemented outside Poland. In the Machinery segment, it produces components for vehicles and specialist equipment, almost entirely for foreign customers. It is also worth noting that in all three segments the company in the vast majority of contracts does not bear the risk of changes in the prices of raw materials and components, the deliveries of which are usually left by the ordering party or subcontracted. The company recorded good results for Q2'22, which is due to high contracting, risk mitigation strategy, stabilization of prices of some raw materials and wage costs, and lower due to previously contracted electricity prices. The results achieved in recent quarters show that the strategy of avoiding the risk of steel price volatility works well. It also tries to contract energy prices in advance, thanks to which this year it still benefits from prices much lower than those currently applicable on the open market. However, the management board warns that the prices proposed by suppliers for 2023 are several times higher. These increases may have the greatest impact on the results of the Mechanical Engineering segment, which will depend on the possibility of transferring higher costs to customers. Thanks to two large contracts, the company has an order portfolio almost twice as large as at the end of 2020. Both of the above contracts are mainly performed this year, therefore we conservatively forecast a lower level of revenues for next year. However, the company systematically communicates the acquisition of further significant contracts, which raises the expectation of further revenue growth in the coming years. We have prepared a valuation of Mostostal Zabrze using the comparative method and DCF in two variants. One of these options assumes the payment of PLN 200 million in 2028. compensation (Stadion ÅšlÄ…ski), the latter does not include such a payment. As a result, we obtained the value of the company at the level of PLN 235 million, or PLN 3.2 per share. This is a value lower than that established in the previous report, and the main reason for the decline is an increase in interest rates, increasing the discount rates. However, it still remains much higher than the current market price, so we are reiterating a buy recommendation for the company's shares. Adam Zajler 22 598 26 88 adam.zajler@bankmillennium.pl

Sniezka Paint not dry yet We maintain our SELL recommendation on Sniezka and decrease our FV to PLN 53.27 per share, which implies 29% downside. The start of 2022 was not fortunate for the company with 1Q22 EBITDA seeing a 14% decrease y/y. Margins should be under pressure of persisiting high costs. However, implemented price hikes and slowly declining titanium white and steel prices should hamper that effect in 2H22. In 2023 we believe that the company may benefit from secured, elevated selling prices, while main costs should decrease significantly. Our EBITDA forecast for 2022 and 2023 amount respectively to PLN 107.6m (down 3% y/y) and PLN 143.9m (up 34% y/y), translating into EV/EBITDA of 11.6x and 8.2x, respectively (compared to the 5-years average 1Y forward ratio of 10.3x). Demand outlook. The declines in volumes were confimed by management and we would expect them to persist over the current and next year. This year we would see hiked interest rates as the key factor negatively affecting the disposable income of consumers in Poland and Hungary. Unlike management we would also see a decline in demand for premium products given the higher propensity to save money. Regarding the potential demand stemming from post-war damages in Ukraine, we would assume a CAGR of sales in 2022E-26E at 22%. Assumed limited growth mostly stems from the fact that currency depreciation favours local producers as foreign companies tend to rise prices in response, so Sniezka’s growth won’t go much beyond output capacity of its Jaworow plant. Sales are expected to increase by 1.5% y/y in 2022 and decline by 2.1% y/y in following year. Cost outlook. The situation here slightly improved with the current titanium white price (19% of total material costs) in China down 2.3% compared to the Apr’22 high. Even more substantial declines can be seen in steel prices (packaging including steel & plastic accounts for 19% of material costs) with 28% declines vs. the Mar’22 high. However, binders may still be at elevated levels given current oil prices. Additionaly, lower sales of products with better margins will affect profitability. Finally, Sniezka likely has secured quite expensive inventory for a couple of quarters. In 2022 we expect gross margins to decline to 39% from 40% in 2021 and increase to 43% in 2023 as we expect further material cost declines while product prices should be more or less sticky in 2023. Capex & dividend expectations. In 2022 Sniezka will be concluding its investment in the Zawada logistics centre. In ensuing years we are expecting capex at levels slightly above depreciation. We increase our capex estimate for 2022E to PLN 60m vs. PLN 50m assumed earlier (management guides PLN 55m). In case of DPS, amid slightly lower net profit (PLN 44.2m vs. PLN 46.2m expected previously) and the company guiding a 50% payout (instead of 80% assumed by us earlier) until reaching a 1.0x net debt/EBITDA ratio, we expect it at PLN 1.7 from 2022 net profit vs. PLN 3.3 expected earlier. Analyst Michal Pilch michal.pilch@ipopema.pl + 48 517 381 455

This report is prepared for the Warsaw Stock Exchange SA within the framework of the Analytical Coverage Support Program 3.0. 506/2022/AR Event: Preliminary 2Q22 results – 32% sales yoy growth; another sale to US Department of Defense. After yesterday’s market close DataWalk released its preliminary 1H22 financial results. 1H22 revenues reached PLN 18.2 million (up 29% yoy), which implies 2Q22 revenues at PLN 14.0 million (up 32% yoy). 2Q22 EBIT was in the red at PLN -106.2 million due to a non-cash cost of the incentive program (PLN 92.3 million). Adj EBIT (after the incentive program costs excluded) reached PLN 0.1 million. Operating costs in the discussed quarter stand at PLN 13.9 million (up 110% yoy and up 20% qoq). The Company’s CEO PaweÅ‚ WieczyÅ„ski commented on the results: 1H22 financials are mixed; on the one hand, the revenue dynamic is lower than the management’s expectations, on the other, DataWalk has already signed several important contracts which bode well for the future results; DataWalk acquired the key client (Total Energies) on the French market, where the Company’s presence was small; In 1H22 the Company faced problems related to field engineering. DataWalk had to focus on the existing key clients which resulted in a slower inflow of new contracts. Our commentary: field engineering relates, in our understanding, to, among other things, the pre-sale (software trial version installation) and post-sale services (software implementations). Due to staff shortages the Company was not able to implement new contracts (even trials) despite successfully clinched deals. 1H22 full financial report will be available on September 13 (next week). On September 15 the Company intends to organize a conference related to the publication of 1H22 financials and also provide a summary of its development 3rd stage. Another sale to US Department of Defense. Yesterday, during WSE trading hours, the Company informed about an acquisition of another (3rd) order from US Department of Defense (Department of Defense Office of Inspector General) for DataWalk’s software license. The Company disclosed information about the initial sale on September 25, 2020. Our commentary: Still another order from the existing client (cooperation widening) confirms the efficiency of the Company’s product. Expected impact: Slightly negative, as 2Q22 revenues are lower by over PLN 1 million (10%) than our tentative expectations. After 1H22 the sales yoy growth stands at 29% vs our FY22 forecast at 72% yoy. Thus it seems that achieving our forecast revenue dynamic may be quite a challenge for DataWalk. GPW’s Analytical Coverage Support Programme 3.0

This analysis was prepared by mBank at the request of the WSE as part of the Exchange's Analytical Coverage Support Programme Sygnity: Forecast of FY2022 Q3 Results Recommendation: sell | target price: PLN 13.50 | current price: PLN 18.00 SGN PW; SGN.WA | IT, Poland Sygnity will report results for the third quarter of fiscal FY2022, ended 30 June 2022, on Friday, 12 August. We expect quarterly revenue to post a 5% rise from the corresponding year-ago period but with costs rising faster the gross margin will probably register a 2.6pp y/y reduction. As a result, quarterly EBITDA might come in at PLN 10.1m after falling 8% from the year-ago level, reinforcing our bearish view on Sygnity. Sygnity generated estimated revenue of PLN 52.0m in Q3 FY2022, an increase of 5% year over year. The gross margin could register 29.5% after a 2.6pp decline from Q3 FY2021. We expect stable SG&A expenses relative to the year-ago quarter thanks to continued savings measures. One-time events probably had a neutral effect on quarterly results. As a result, we expect EBIT to come in at PLN 7.5m and we see EBITDA as falling 8% to PLN 10.1m. After a PLN 1.9m loss on financing activity and tax at an effective rate of 19.0%, net profit for Q3 2022 might end up at PLN 4.5m. Analyst: PaweÅ‚ Szpigiel +48 22 438 24 06 | +48 509 603 258 GPW’s Analytical Coverage Support Programme 3.0

This report is prepared for the Warsaw Stock Exchange SA within the framework of the Analytical Coverage Support Program 3.0. 511/2022/AR Event: 2Q22 final financial results released – in line with preliminary figures. Before the start of today’s trading, DataWalk released its final 2Q22 financial results which turned out to be in line with the preliminary ones. Selected issues (including the letter to shareholders): 1H22 financials were impeded by insufficient training and slower performance of field engineering teams handling the pre-sale (software trial version installation) and post-sale services (software implementations); Only after these problems have been solved, the target growth will kick in and above 70% CAGR can be reached; DataWalk summed up the 3rd stage of its development; The Company presented a sales funnel value graph which indicates that the current value exceeds those from in 1Q22 and 2Q22. Unfortunately, we cannot calculate the exact sales funnel value growth as compared to previous quarters as we lack precise figures (the graph indicates that the current value is close to USD 24 million which implies a c. 6% growth vs data from April this year). Expected impact: Slightly negative, as the Company conceded that currently, due to insufficient performance of field engineering teams handling the pre-sale and post-sale processes, DataWalk is not able to grow in the target pace of >70% yoy. Today, on September 15th, at 12:00 (Polish version) and 16:00 (English version) the conference on the Company’s financial results and 3rd stage of development will be held. Analyst Tomasz Rodak, CFA +48 797 487 381 GPW’s Analytical Coverage Support Programme 3.0

This report is prepared for the Warsaw Stock Exchange SA within the framework of the Analytical Coverage Support Program. 3.0. 512/2022/AR Event: Key indicators for the banking segment in August and September. On Thursday, September 15 Votum revealed their monthly reports (link) with key indicators for the segment of pursuing claims from abusive clauses in FX mortgage loan agreements for August (number of court sentences and acquired contracts) and September (planned number of court hearings). The court sentences in the segment of pursuing claims from abusive clauses in FX mortgage loan agreements. In August the courts of both instances handed down 367 sentences, including 296 in the courts of the first instance (95% of these sentences stated the invalidity of agreements with merely 2% that dismissed claims in their entirety) and 71 in the courts of the second instance (92% stating the invalidity of agreements with none that dismissed claims). August was a month, when the number of rulings came down mom, which is a result of a holiday season and lower number of court sittings. The tendency should change after holidays end. This tendency should be reversed from September, which is indicated by the high number of scheduled meetings in September. At the same time, on a monthly basis, a significant improvement in the judicial tendency can be seen in favor of clients in second instance judgments. Similarly, the number of second instance judgments remains high. A number of court hearings related to pursuing claims from abusive clauses in FX mortgage loan agreements. In September Votum will attend 2,149 court hearings (81% higher mom) related to pursuing claims from abusive clauses in FX mortgage loan agreements. We see a seasonal pattern here, with a number of court hearings coming back to higher levels after a period of holiday leaves ends. This also clearly points to a significant growth of court rulings, which should appear in September. New clients acquired in the segment of pursuing claims from abusive clauses in FX mortgage loan agreements. In August a number of new contracts stood at 893 which implies a clear increase yoy (57% up) as well as compared to previous months, which was most likely triggered by weakening PLN, which could prompt customers to take an action. Cumulative number of new signed contracts year-to-date (January-August) with customers amounted to 6,558, which constitutes a 26% yoy growth. It shows that the customer interest remains stronger this year. Analyst MichaÅ‚ Sobolewski, CFA, FRM +48 22 504 33 06 GPW’s Analytical Coverage Support Programme 3.0

ANALYST COMMENT – Relpol Q2’22 RESULTS The report was prepared by Dom Maklerski BDM at the request of the WSE as part of the Exchange's Analytical Coverage Support Programme Last recommendation BDM: BUY with target price 11,1 PLN/share (23.05.2022) LINK Revenues in Q2'22 amounted to PLN 37.1 million (+8% y/y), 8% above our assumptions. The dynamics was influenced by high demand for industrial automation components and higher selling prices. The German market (+6% y/y) still had the largest share in the sales structure. The increase in revenues is largely the result of the higher EUR/PLN exchange rate. We estimate that sales in EUR in Germany increased by 3% y/y. Sales in Poland maintained good dynamics (+18% y/y). Domestic revenues were 12% above our expectations. Revenues from the Russian market (Relpol Eltim) amounted to PLN 3.0 million in Q2'22. The subsidiary's assets were written off at the end of June (a PLN 2.7 million write-off included in financial costs). Relpol Eltim's net loss was PLN 91 thousands in H1'22. The gross margin dropped significantly to 17% (slightly below our expectations). Profitability was adversely affected by the cost of manufacturing products (material prices, labour costs, the creation of additional assembly stations due to the reduction in production in Ukraine). According to the management, the Ukrainian plant is currently operating at 85% of its pre-war capacity. Over the next two months, it is planned to increase the production and return to the pre-war potential. EBITDA amounted to PLN 2.4 million, 13% below our assumptions. R&D write-offs in the amount of PLN 0.7 million had a negative impact. Q2'22 gross profit was encumbered by the aforementioned write-downs on Russian assets. Due to sanctions and communication problems, the control over the Russian company is severely limited. The net loss in Q2'22 amounted to PLN -2.4 million. Two one-off events that were not included in our assumptions had a large impact. Cash flows from operating activities amounted to PLN +2.7 million, CAPEX in the last quarter amounted to PLN 2.1 million. Net debt amounted to PLN 9.9 million (PLN 3.4 million a year earlier). It was higher than our expectations. BDM Comment: Due to the write-offs, the company reported a net loss in Q2'22. Note that at the end of August Relpol announced the planned asset write-off in Russia. Revenues were above our expectations. This is the result of taking into account the revenues from the Russian company, which will not be consolidated in subsequent periods. We assume that the company will want to allocate this volume to other markets. The gross margin on sales in Q2'22 was the lowest for several years. However, the company emphasizes that the increase in product prices, the fall in raw material prices and the restoration of production potential in Ukraine may help to gradually rebuild the margin. In the report, the management board also points to the deteriorating market conditions and macro outlook, which makes it difficult for it to assess the outlook for H2'22. Analyst: Kajetan SroczyÅ„ski Kajetan.sroczynski@bdm.pl tel.: (+48) 668 516 977 GPW’s Analytical Coverage Support Programme 3.0

Core inflation in Poland rose again last month due to pressure from the weak zloty, rising wages, and high energy prices   According to the Central Statistical Office of Poland's final estimate, CPI inflation rose to 16.1% year-on-year in August from 15.6% YoY in July, in line with the flash reading. The year-on-year growth in both the CPI and core continue to rise. CPI in year-on-year terms accelerated, as increases in the prices of food (+1.6% month-on-month), energy carriers (+3.8%MoM) and core (+0.8%MoM) overshadowed a significant fall in transport fuel prices (-8.3%MoM). The large increase in food prices is not only due to the jump in sugar prices but also in other categories (meat, bread, dairy). There was also no typical seasonal drop in the total food price (-0.8%MoM average in the last decade). In August, food and beverages grew 1.6%MoM, as discounts for fruit and vegetables were dominated by growth in other categories. The large jump in energy prices was mainly driven by heating fuel (+12%MoM) – making it the largest single contribution to the August CPI increase – and municipal heating. Both increases have come earlier than usual from a seasonal perspective, and show the impact of the energy shock and the shortage of coal for domestic purposes of households. The details of August inflation show price pressures in many categories of goods and services. This is the effect of rising wages, high gas and electricity prices (as shown by jumps in categories such as paper, chemicals, and cosmetics), and the weak zloty. The strong holiday season has pushed up the prices of tourist and catering services, compared to last year. CPI drop in the coming months seems unlikely We are less optimistic than the National Bank of Poland (NBP) about the evolution of inflation in the coming months. It will be difficult to see a decline in the year-on-year CPI before the end of the year. The economy still has to absorb the energy shock over the next few months. We expect price rises in categories that escape regulation (such as fuel, bottled gas etc), but also await new price lists for the turn of 2022-23, which will determine what level inflation will peak at in February 2023. We also note that the annual inflation rate (CPI, %YoY) may fall over the course of 2023, on base effects, among other things, or thanks to large-scale measures to rein in energy prices. However, our models show persistent high core inflation, which is more domestic in nature. We see very high inflation expectations of firms and households, which are triggering strong second-round effects (firms are passing most of the new costs on to retail prices, and this effect will be seen in the coming months because the slowdown in domestic demand is too small). In turn, a significant increase in the minimum wage acts as a wage-price spiral. There may be no more interest rate hikes However, the cycle of interest rate hikes is coming to an end. Recent comments show that the NBP is rather targeting a decline in annual CPI (possibly by the end of 2023) and a 'soft landing' of the economy, while a “de jure” target of CPI at 2.5% YoY is seemingly forgotten. An important factor that reduces the effectiveness of the rate hikes is fiscal expansion. Currently, the total policy mix is only slightly restrictive despite inflation at 16.1% YoY. With such a definition of NBP targets, we can envisage rate cuts in 2023. With that in place, we should face another cycle of rate rises in 2024. The way to fight inflation differs from the approach of other countries, where central banks and governments communicate that what is needed is to cool down the economy, and the labour market, with slower wage growth than the rate of inflation. All of this is to avoid a repeat of the 1970s scenario in the US when it took three cycles of interest rate hikes to fight inflation. The ultimate cost of this fight was much greater than the cost of cooling the economy at the start of a period of high inflation. Read this article on THINK TagsPoland inflation National Bank of Poland Disclaimer This publication has been prepared by ING solely for information purposes irrespective of a particular user's means, financial situation or investment objectives. The information does not constitute investment recommendation, and nor is it investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument. Read more

WSE Research Coverage Support Program Company Update Agriculture Ukraine The changes in the East… In this report we revise financial forecasts and valuation for IMC upgrading recommendation from Sell to Buy and raising target price to PLN 22.56 p.s. As in the case of our previous company update published in July, the assumptions with respect to cost of equity has the greatest impact on the final valuation as well, but this time the change is positive. We still assume 10Y Ukraine’s RFR at 30% in 2023, 20% in 2024 and 10% thereafter, whereas risk premium is equal to 20% in 2023 and 10% later on. We moved, however, DCF model forecast period from 2022-2028 to 2023-2029, which under high discount rate scenario supports higher valuation. The latest positive newsflow regarding counteroffensive on Kharkiv front and opening Kherson front give hopes for faster and favourable for Ukraine end of war, which in our view is supportive of geopolitical premium decline. Nonetheless, given the evolution of events in Ukraine, interests of broadly defined sides of the conflict, the ever-changing macro including energy commodities supply crunch, the realization of scenario other than we assumed is highly likely. From the point of view of cash flow generation, we have no reason to considerably change our previous assumptions compared to July’s company update, in spite of unblocking Black Sea ports. According to the press reports, so far the additional volumes sold via recently open ports by listed Ukrainian agri companies are rather marginal. This is chiefly due to the high discount offered by global traders for Ukrainian grains, which may stem from higher insurance costs, additional 7 to 9 days associated with security clearance in Istanbul, as well as premium for companies engaged in war-torn areas. Applying discounted prices to calculation of profit on biological assets revaluation led to the 2Q22 miss on results vs. our forecast. Nonetheless, the impact was of purely accounting nature, and given the low sales volumes had limited impact on cash flow/valuation as well. Forecasts and valuation update Financial forecasts update In this report, we change our financial forecasts for IMC mainly due to the miss on reported results in 2Q22. As we mentioned many times, financial results in 2022, and 2Q22 in particular, are mainly made on profit on biological assets revaluation and in the environment of limited export, the result on sales will carry over to 2023. The profit on biological assets revaluation, in turn, is based on effective price commanding a discount to market prices, which stem from the problems of Ukrainian grain export. Based on our assumptions regarding low volumes sales all the way through the end of 2022 and much higher 2023 sales, poor price conditions nowadays and lower profit on revaluation has little impact on the final valuation of IMC (except for time value of money, which in the environment of high interest rates and risk premias, distort considerably discounted cash flows). After pushing out Russian from Poltawa, Sumy, Czernichov and Charkow region, the key problems of Ukrainian agri companies remained export disruptions. On July 22, 2022, Russia, Ukraine, Turkey and UN signed Istambul agreement, which guarantee safe marine grain export from Ukrainians ports on Black Sea. The aim of said agreement was to reduce the price pressure on global grains market and prevent the famine affecting the poorest countries in the world. The agreement is set to last for 120 days with potential for renewal. In September, Russia’s president Vladimir Putin stated that, contrary to provisions of the agreement only 2 of 87 ships headed to poor countries whereas the vast majority ended up in Europe, an opinion later corroborated by Turkish president Erdogan. Interesting solution to the possible withdrawal of the deal, is the recent proposal of UN which tries to broker a deal, enabling resumption of Russian ammonia export through the port in Odessa. After the war broke out, the pipeline linking Russian ammonia plants with port in Odessa has been shut down. The opening of Ukrainian ports in July 2022 enabled export of agri produce to step up to 4.5mn tons in August from 2.7mn month earlier. According to Ukraine’s Minster of Agriculture, export of agri produce may increase to 6-6.5mn tons in October. However, according to Reuters that target seems challenging, considering that not all shipping group are keen to send their ships into the warzone. The additional problem posed by the maritime export of grains from Ukraine are trade terms, which are offered to agri companies. Due to insurance prices, extra 7 to 9 days for security clearance in Istambul, and risk premia for shipowners, the price offered for Ukrainian agri produce is too low to justify higher export. We continue to assume that IMC’s sale of grains between 3Q22 and 4Q22 will amount ca. 20kt per month compared to 60kt per month pre-war. It will cause considerable drop in sales revenues, sharp rise of inventories on the balance sheet and as a consequence limited cash inflow. Our scenario assumes that from the beginning of 2023, blockade of Ukrainian ports will be lifted and IMC will be able to export current production and accumulated inventories as well. We point out that there are risks on both sides to our base scenario. We emphasize that the complete unblocking of Ukrainian ports may not be tantamount to ending of the war. On the flipside, if Russia decides to not make any concessions toward other countries, at some point in the future, limited sales of Ukrainian companies may lead to solvency issues and limited sowing campaign in 2023. It’s worth to mention that positive EBITDA result, which we believe IMC will report in 2022 r. stems mostly from positive revaluation of biological produce, which in the largest extent happened in 2Q22. We emphasize that 2022 EBITDA profit will stem from accrual accounting rules and is not tantamount to cash flows, which better reflect IMC financial position. Considerable EBITDA profit in 2022 will be accompanied by high inventories growth, which in turn will be reflected in the balance sheet’s low cash position visible at the end of 2022. Along with lifting blockade of Ukraininan ports and selling from the stocks, the situation in company’s book in 2023 will be opposite – standard EBITDA level will be accompanied by very high cash influx due to selling from inventories. Valuation Our DCF model indicates a 12M target price of PLN 22.56 per share. We attach 100% weight to this valuation method as it better captures the long-term prospects, company-specific factors and country risk. For illustrative purposes, we have prepared a peer comparison valuation based on 2022E - 2024E multiples which yields a 12M valuation of PLN 32.70. The details of our valuation and forecasts are available in the full version of this report. Financial forecasts Krzysztof KozieÅ‚, CFA krzysztof.koziel@pekao.com.pl GPW’s Analytical Coverage Support Programme 3.0

Despite the Central Bank of Turkey implying in its forward guidance that further rate cuts are ahead, we believe it will keep the policy rate unchanged for now to assess the impact of recent moves. For Poland, we forecast that unemployment will remain at 4.9% whilst PPI inflation will decline to 24.5% In this article Turkey: Expecting the CBT to keep rates unchanged this month Poland: Key data for the week ahead Hungary: Further widening of the current account deficit Source: Shutterstock   Turkey: Expecting the CBT to keep rates unchanged this month While the Central Bank of Turkey (CBT) cut the policy rate last month in a surprise move, it did issue forward guidance implying further rate cuts were ahead, citing some loss in economic momentum. The CBT moves will likely be determined by FX developments, as the tourism season comes to end, as well as the growth outlook. We expect the CBT to keep the policy rate unchanged this month to see the impact of recent moves, though the risks are on the downside. Poland: Key data for the week ahead Industrial output: Annual growth of industrial production moderated to a single-digit pace in July (7.6%), but is projected to improve somewhat in August (9.8%) amid the less negative impact of the number of working days in year-on-year terms. The output should be supported by shorter summer production halts in the automotive industry and house appliances plants. Electricity production was also rather solid. Output was reduced in some energy-intensive industries due to the soaring price of natural gas. PPI inflation: We forecast that PPI inflation declined to 24.5%YoY in August from 24.9%YoY in July as prices in the manufacture of coke and refined petroleum products eased. Annual growth of metal products manufacture also declined. Unless we see yet another upswing in energy and industrial commodities, the producers’ prices should continue to decline. We believe that the peak is most likely behind us. Enterprise wages: In July, enterprise wages jumped up by 15.8%YoY boosted by one-off payments and compensations for high inflation in the mining, energy and foresting sectors. In August, growth is expected to be lower, albeit still at a double-digit level. Nevertheless, real wages in the enterprise sector are projected to turn negative again. The labour market remains tight, which is what drives wages upwards. Enterprise employment: Average paid employment went up by 2.3%YoY in July, with the number of posts increasing by 11,000 people versus the previous month. In August we expect a seasonal decline, but smaller than last year, which should drive annual employment growth up to 2.4%YoY. Despite signs of slowing activity, particularly in industry and construction, demand for labour remains solid, especially in services. Unemployment rate: The labour market is drained from skilled workers and even the inflow of refugees from Ukraine that have assimilated quite well and are active in the labour market is not putting upward pressure on the unemployment rate so far. Since January the number of unemployed people is on a downward path and the registered unemployment rate is projected to remain at 4.9% for the second month in a row in April. Hungary: Further widening of the current account deficit The National Bank of Hungary will release the second quarter current account balance and it is expected to be in the same ballpark that we saw during the first quarter. A roughly €2tr deficit is the result of the rising energy bill of the country, deteriorating the balance of goods in an extreme manner. An early estimation of the July balance suggests further widening of the current account deficit. When it comes to the labour market, we see wage growth accelerating further, as the price-wage spiral has started. More and more companies have announced extra compensation for employees (either one-off or mid-year salary hikes) in the last couple of months, which will be visible in the wage statistics as well. On the other hand, the news has also been about companies planning redundancies in the future (various surveys put the share of these corporates between 25-50%), thus we won’t be surprised if the unemployment rate reflects that development, moving a bit higher compared to the previous month. Key events in EMEA next week Source: Refinitiv, ING TagsTurkey Poland industrial production Hungary EMEA   Disclaimer This publication has been prepared by ING solely for information purposes irrespective of a particular user's means, financial situation or investment objectives. The information does not constitute investment recommendation, and nor is it investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument. Read more

ANALYST COMMENT – SELENA FM Q2’22 RESULTS Last recommendation BDM: BUY with target price 30,0 PLN/share (2022/06/27) LINK Revenues in Q2'22 amounted to PLN 499.2m (+14% y/y), slightly above our expectations. A record quarter in the company's history. Weak revenues growth in Poland (+3%), strong in other EU markets (+19% y/y). Very good performance in North and South America (+61% y/y). Sales growth also in the Eastern Europe and Asia segment (+12%), despite large exposure to Russia. Subsidiaries based in Eastern Europe realised revenues of PLN 115.3m in H1'22 (PLN 114.5m a year ago). As at the balance sheet date, inventories located in Eastern Europe was PLN 49m and receivables from customers of non-related companies from the region was PLN 37m. Gross margin (28.3%) at similar y/y level, but weaker than in Q1'22 (32.1%) and below our assumptions. The ratio of SG&A costs to revenues increased slightly y/y. The impact of the other operating activities not significant in Q2'22 (PLN +0.2m). EBITDA amounted to PLN 38.8m in Q2'22 (vs. PLN 39.5m a year ago). Slightly weaker than we had anticipated (we expected PLN 39.8m). EBITDA by segment: EU (PLN 39.4m vs. PLN 58.1m a year ago), Eastern Europe and Asia (PLN 30.2m vs. PLN 18.0m), North and South America (PLN 7.5m vs. PLN 3.4m). Nonallocated results PLN -38.3m (PLN -40.0m in Q2'21). Financial activities with a positive impact of PLN +3.1m (clearly positive impact of foreign exchange differences, not assumed in our forecasts). Q2'22 net profit at PLN 23.4m (better y/y and above our assumptions). • Cash flows from operating activities amounted to PLN -31.9m in Q2'22. At the end of the period, the company had net debt of PLN 257m (PLN 199m after adjusting for loans extended to related parties). CAPEX in H1'22: PLN 15m. BDM Comment: Neutral. The company's Q2'22 results are marginally below our expectations on EBITDA, while net income was supported by positive foreign exchange. We note the strong performance in the Eastern Europe and Asia segment (both revenues and EBITDA), despite exposure to Russia, Turkey and China. The strong positive trend is maintained by the North and South America area. Good sales in Q2'22 in the rest of the EU, while the Polish market looks weak with only 3% sales growth, which, with significant inflation in the construction chemicals category (+21% y/y according to PSB), implies a clear decline in volumes. Also notable is the significant decline in EBITDA profitability in the EU segment. Net debt at the highest level in the company's history (PLN 257m, of which PLN 58m finances loans to entities related to the main shareholder). Net debt/EBITDA still at safe level of 1.8x Analyst: Krzysztof Pado krzysztof.pado@bdm.pl tel.: (+48) 512 338 250 GPW’s Analytical Coverage Support Programme 3.0

This report is prepared for the Warsaw Stock Exchange SA within the framework of the Analytical Coverage Support Program 3.0. Event: Buyback update The Company informed that it purchased 141,700 shares (3.3% of the share capital) for PLN 4.0 million in the pending buyback which implies an average price per share at c. PLN 28.32. BioMaxima has spent already 80% of the amount earmarked for the buyback (PLN 5 million). Expected impact: Neutral. Analyst Sylwia JaÅ›kiewicz, CFA MikoÅ‚aj StÄ™pieÅ„ GPW’s Analytical Coverage Support Programme 3.0

Event: Buyback update The Company informed that between September 12 and 16 it had purchased 7 950 shares (0.1837% of the share capital) and a number of own shares obtained in the pending buyback reached 171,200 (4.0% of the share capital). Expected impact: Neutral. This report is prepared for the Warsaw Stock Exchange SA within the framework of the Analytical Coverage Support Program 3.0. Analyst Sylwia Jaśkiewicz, CFA Mikołaj Stępień, Michał Zamel

Industrial output expanded by 10.9% YoY in August even though manufacturers face soaring energy prices and uncertainty about the availability of energy sources this winter. At the same time, producers’ prices continued running at ¼ level higher than in the corresponding period of 2021 and higher costs will continue to be passed on to retail prices August's production reading is a signal of economic resilience   Industrial production rose by 10.9% year-on-year in August (ING: 9.8%YoY; consensus: 9.7%YoY), following an increase of 7.1%YoY in July (revised from 7.6%YoY). The higher annual growth rate than the month before was due in part to calendar effects (a negative pattern of working days in July). Production was also supported by a smaller scale of shutdowns in the automotive and house appliances sectors in August. Production of motor vehicles, trailers and semi-trailers increased by 40%YoY and electrical appliances by 23.9%YoY. Interestingly, while the second quarter saw month-on-month declines in seasonally-adjusted production, the third quarter has brought a rebound in the level of output. No manufacturing recession in 3Q22 Industrial output (MoM SA)   We find the August production reading a positive signal of economic resilience, given poor leading indicators, weaker orders and high energy and commodity prices as well as uncertainty about the availability of energy in the autumn-winter period. We observe a gradual cooling down rather than a sudden and abrupt halt in activity as suggested by the latest manufacturing PMI index readings. We estimate that there will be an increase in 3Q22 GDP on a quarter-on-quarter seasonally-adjusted basis and that annualised growth will be close to 3%. In other words, we do not see a technical recession in 3Q22, but we still expect the second half of the year to be markedly worse for the Polish economy than the first with the most risk still in winter. Producer prices increased by 25.5% YoY in August, i.e. at the same pace as in July (after revision), despite another marked decline in fuel production prices (-6.5% month-on-month). Prices in manufacturing increased by 20.2%YoY and in mining and quarrying by 30.4%YoY. However, the greatest pressure was seen from energy prices, which rose in August at a double-digit rate (10.0%MoM) for the second month in a row and are already nearly 80% higher than a year earlier. Overall, the producers’ prices index (PPI) is around ¼ higher than a year ago, and the process of passing on rising production costs to final prices will continue in the coming months. This confirms our concern that the next few months will bring a new wave of retail price increases. We do not share the optimism of the Monetary Policy Council representatives who speak of a stabilisation or decline in CPI inflation before the end of the year. We rather expect an adjustment of prices and the economy to face another price surge, this time an energy shock. In our view, the expansionary nature of fiscal policy will even increase beyond what we see in 2022, making it easier to still pass on high costs to retail prices. Nevertheless, rate hikes are coming to an end. Recent comments show that the National Bank of Poland (NBP) is rather targeting a decline in the annual CPI (in our view possible by the end of 2023) and a 'soft landing' of the economy, while CPI at 2.5%YoY is a seemingly forgotten target. An important factor that reduces the effectiveness of the rate hikes so far is fiscal expansion. Currently, the total policy mix is only slightly restrictive despite inflation at 16.1%YoY. With such a definition of NBP targets, we can imagine a rate cut in 2023. With that in place, we may face another cycle of rate hikes in 2024. The way to fight inflation on the monetary and budgetary policy fronts in Poland differs from the approach of other countries, where central banks and governments communicate that domestic demand and labour market need to cool down and wage growth to moderate below the rate of inflation. All of this is to avoid a repeat of the 1970s scenario in the US when it took a couple of cycles of rate hikes to bring inflation down to required levels. The ultimate cost of fighting it was greater than the cooling of the economy at the start of a period of high inflation. Read this article on THINK TagsPoland industrial production Disclaimer This publication has been prepared by ING solely for information purposes irrespective of a particular user's means, financial situation or investment objectives. The information does not constitute investment recommendation, and nor is it investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument. Read more

Analytical Report Record revenues under margins pressure In the current, very difficult period for the construction sector, we consider the results of the Unibep Group to be good. In the first half of 2022, the Group achieved revenues of PLN 1 billion (increase by 47% y/y), which translated into PLN 62.2 million EBITDA (increase by 84% y/y) and PLN 38 million net profit (increase by 138% y/y). However, there has been a decrease in margins, which is the result of many factors that the construction industry is struggling with, including increase in prices of materials, energy, costs of external services. We believe that in these conditions the Group is coping well both with the portfolio of contracts it has and winning new ones, with a significant slowdown in private investments. We believe that the current backlog, exceeding PLN 3.5 billion, will provide the Group with stable revenues. The majority of it consists of new contracts, which largely reduces the risk of their profitability. Unfortunately, in our opinion, there are no opportunities on the horizon in the near future that could make investors more optimistic about the construction sector. The receding prospect of KPO funds and the environment of high interest rates, which the Group felt the most severely by the decline in orders in the modular construction segment and the upward revision of the risk premium for our country, mean that, while remaining positive towards the Group, and at the same time conservative in valuation, we make a slight change in the assumptions, decrease the target price from PLN 11 to PLN 10 at the end of 2022. Analysts Artur Wizner Tel.: +48 (22) 53 95 548 This report was prepared for the Warsaw Stock Exchange SA within the framework of the Analytical Coverage Support Program 3.0. This is a translation of the Polish analytical report. GPW’s Analytical Coverage Support Programme 3.0

In August, employment in the corporate sector rose 2.4% year-on-year as expected, up from 2.3% in July, underlining strong labour demand. However, wages were weaker, rising 12.7% YoY (consensus 13.9%), following a string of hikes and bonuses which brought growth to 15.8% YoY in July Inflation is outpacing wage growth in Poland   The lower year-on-year wage growth in August likely resulted from fewer wage hikes, bonuses and inflation benefits, which boosted the July figure. Those pay increases were primarily seen in the mining, energy and forestry categories. Some companies likely waited to boost pay until the personal income tax reduction took effect in July. As those effects faded in August, wage growth again fell below inflation (16.1% YoY). Companies may also be limiting salary increases in anticipation of a strong increase in the minimum wage next year (in January and July). As a result, for the last four months, wage growth has only outpaced inflation in July. The impact of this has been reflected in disappointing retail sales data, where there has been a clear decline in demand for durable goods, among other things. However, the overall health of the labour market remains good. Labour demand is strong despite growing refugee employment (now over 400,000 of those coming after 24 Feb). These people are most likely largely unaccounted for in the statistics (only full-time employees are counted), indicating that the number of jobs being created is impressive. Strong labour demand suggests continued high wage pressure in the months ahead. However, it may slow temporarily in the second half of the year as companies prepare for the 20% minimum wage hike in 2023. We assume some stabilisation in annual wage growth before the end of 2022 but a 20% increase in the minimum wage is likely next year despite the economic slowdown. Strong growth in the wage bill (taking into account the hiring of Ukrainian workers) is outpacing labour productivity. Along with the government's expansionary fiscal policy, this is another argument for keeping inflation stubbornly high. Real wages in decline CPI and nominal wages (YoY) Read this article on THINK TagsPoland wages Poland Disclaimer This publication has been prepared by ING solely for information purposes irrespective of a particular user's means, financial situation or investment objectives. The information does not constitute investment recommendation, and nor is it investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument. Read more

Retail sales and construction output data surprised to the upside in August, confirming that the economy is slowing. There is no sudden stop, as suggested by some indicators (manufacturing PMI, sales of mortgages). the economy is on course for c.3% YoY growth in 3Q22. A shopping mall in Warsaw, Poland August retail sales above market expectations Retail sales rose by 4.2% YoY in August (ING and consensus at 3.0%YoY), following an increase of 2.0% YoY in July. The seasonally adjusted data shows that after two months of declines in MoM sales, August saw growth. On a year-on-year basis the largest increases were again reported in necessities (pharmaceuticals, clothing and footwear, food). Durable goods sales continued to limp along, although there were signs of stabilisation in car sales as supply-side bottlenecks eased. Demand for durable goods has been soft in recent months, something we associate with high uncertainty and weak consumer sentiment. Despite signs of some weakening, however, growth in sales of necessities continues. Demand from refugees from Ukraine remains a support here. In the coming months, price increases may put pressure on purchasing decisions and induce households to be cautious in their spending, especially in view of the risk of increased housing costs (heating, electricity) in the autumn and winter. Residential construction still on the rise but housing starts fall sharply In August building construction expanded by 25.7% YoY, after rising by 11.7% the month before. Production in this sector has been growing at double digit rates in each month of 2022 so far. However, there was a strong decline in the number of housing construction starts (down by 46.1% YoY in August). Again, industries related to infrastructure investment performed poorly: civil engineering (-1.6% YoY, previously +2.2% YoY) and specialised construction (-1.3% YoY, previously -1.4% YoY). The structure of the data is consistent with trends seen in previous months. In residential construction, it is likely that projects already started are being completed. Companies are probably trying to fill the demand for housing that still exists. At the same time, the slump in new construction shows their concerns about demand in the future in the face of the large increase in interest rates. The weak performance of industries related to infrastructure investment is most likely still the result of the strong increase in production costs, which makes it difficult to launch new tenders, and the lack of funds from the Recovery Fund. GDP to expand by c.3% YoY in 3Q22. Retail sales data fit a scenario of a gradual economic slowdown with weakening consumption. Growth will be slower in 2H22 than in 1H22, when the lifting of epidemic restrictions allowed previously constrained demand in services to be realised and savings accumulated in the pandemic to be spent. Data from the housing sector indicates deteriorating prospects for upcoming quarters, but construction is still expanding. The biggest hit to 3Q22 annual growth is likely to be observed in the lack of support from the inventory adjustments that boosted economic growth in 1Q22 and 2Q22. The August set of monthly data (industry, trade, construction) fits our forecast for 3Q22 GDP growth of c.3% YoY, implying growth of c.0.6% QoQ S.A. Read this article on THINK TagsRetail sales GDP Construction Disclaimer This publication has been prepared by ING solely for information purposes irrespective of a particular user's means, financial situation or investment objectives. The information does not constitute investment recommendation, and nor is it investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument. Read more

Last recommendation BDM: BUY with target price 11,0 PLN/share (2022/06/15) LINK Revenues in Q2'22 amounted to PLN 76.5m (-2% y/y), above our expectations. Gross margin (6.3%) significantly lower y/y and below our assumptions. The company points to rising costs and a deep decline in revenues at constant prices given CPI/PPI. Profitability declines in every segment. The company has been working to revalue contracts, but this has not yielded final results at the end of June. The company significantly reduced the number of smaller contracts in H1'22, due to the mobilisation of resources for the contract for the electronic barrier on the border with Belarus. SG&A costs marginally higher y/y. Impact of the other operating activities slightly positive in Q2'22 (PLN +1.2m). EBITDA in Q2'22 amounted to PLN 0.8m (vs. PLN 5.5m a year ago). A result weaker than our assumptions (we expected PLN 2.0m and did not assume a positive impact from the other operating activities). Financial activities slightly positive at PLN +0.3m. Q2'22 net profit at PLN 0.7m (weaker y/y, above our assumptions only due to recognition of 'negative' income tax). Cash flows from operations activities amounted to PLN +11.8m in Q2'22. We note an increase in prepayments for deliveries to PLN 34.6m (vs. PLN 8.3m after Q1'22). At the end of the period, the company had PLN 18m in net cash. Backlog: PLN 648m (vs. PLN 598m after Q1'22 and PLN 313m after Q2'21). BDM Comment: Slightly Negative. The company's Q2'22 results are below our expectations at the EBITDA level, while the net result was supported by a 'negative' income tax. Management points to rising costs and a deep decline in revenue at constant prices given CPI/PPI. The company significantly reduced the number of smaller contracts in 1H'22, due to the mobilisation of resources for the largest contract ever, which is being executed in 2H'22 (electronic barrier on the border with Belarus for PLN 279m). We associate the improved cash position in Q2'22 mainly with the advance payment received for the contract. Due to the scale of the contract, 2H'22 results will be determined by the progress of the work and recognized profitability (in 2H'21 revenues amounted to PLN 147m). The company signed the contract in March 2022, and in August 2022 an annex was signed increasing its value by ca. PLN 9m and extending the completion date to 120 days after the completion of construction works by other parties (previously: 90 days). The report was prepared by Dom Maklerski BDM at the request of the WSE as part of the Exchange's Analytical Coverage Support Programme Analyst: Krzysztof Pado krzysztof.pado@bdm.pl tel.: (+48) 512 338 250 GPW’s Analytical Coverage Support Programme 3.0

Daily 28.IX.2022 Event: Buyback to be voted at the Extraordinary General Meeting of Shareholders. Action’s Extraordinary General Meeting of Shareholders was convened on October 26, 2022 and it will vote on a resolution related to the management authorization to carry out the buyback. The Company intends to release a PLN 30 million reserve capital earmarked for a buyback in the resolution passed in 2016 and to dedicate these funds for supplementary capital. At the same time, reserve capital will be created to finance the buyback. Expected impact: Neutral This report is prepared for the Warsaw Stock Exchange SA within the framework of the Analytical Coverage Support Program 3.0. Analyst Jakub K. Viscardi

Results adjusted by Nodthera valuation in line with expectations Ryvu Therapeutics reported 2Q22 results with the following highlights: Revenues PLN 7.5mn (+37% y/y, 8% above our estimates and 9% above market consensus). Revenues from grants amounted to PLN 7.3mn (+40% y/y). Total operating expenses amounted to PLN 45.6mn (+57% y/y). We underline that company has started to present the Notdthera valuation before EBIT, while until now this line has been presented before gross profit before tax. As a result total expenses increased that much as Nodthera valuation had negative effect in the amount of PLN 7.7mn. Total cost adjusted by Nothera valuation would come at PLN 38mn (vs. PLN 29mn, vs. PLN 34mn quarter ago). Reported EBITDA loss amounted to PLN 34.8mn (vs. PLN 20.6mn year ago, vs. PLN 23.9mn expected by market consensus, vs. PLN 23.5mn expected by us). Excluding the cost of incentive program and Nodthera valuation EBITDA loss amounted to PLN 19mn (vs. PLN 13mn year ago, vs. PLN 15mn expected by us). Underperformance is related primarily to the higher costs if external services. Net loss amounted to PLN -36.9mn (vs. PLN 24.2mn year ago, vs. PLN 27.2mn expected by market consensus, vs. PLN 26.8mn expected by us). Net cash came in at PLN 40mn (vs. PLN 60mn in 3Q21, vs. PLN 108mn year ago). Our view: NEUTRAL We underline that company’s results were affected by the valuation of Nodthera shares in the amount PLN 7.7mn and we believe that this value was not included in market consensus. Adjusting reported numbers by this amount EBITDA would come at PLN 27mn (vs. PLN 24mn expected by us and market consensus), while the net income would come at PLN 29mn (vs. PLN 27mn expected by us and market consensus). Therefore, the underperformance compared to market expectation is relatively small. We also underline that company’s pace of cash consumption is at level comparable to the previous quarters i.e. approx. PLN 20m per quarter, therefore today, we expect rather neutral market reaction. Key issues in the upcoming months: RVU120: “Data update from the ongoing Phase I clinical study in acute myeloid leukemia (AML) and high-risk myelodysplastic syndrome (HR-MDS) and the ongoing Phase I clinical study in solid tumors will be presented in Q4 2022” Synthetic lethality. “Data on Ryvu’s novel MTA-cooperative PRMT5 inhibitors as targeted therapeutics for MTAP deleted cancers to be presented in Q4 2022.” Ryvu Therapeutics 2Q22 results Marcin Górnik marcin.gornik@pekao.com. pl GPW’s Analytical Coverage Support Programme 3.0

2Q22 results: Continuation of high y/y dynamics The company is reporting impressive year-on-year growth in results at the consolidated level. Revenues amounted to PLN 101.7 million, up 120% y/y vs. the PLN 61.4 million we assumed. EBITDA increased by 41% y/y, operating profit +58% y/y. Net profit was PLN 8.5 million vs. PLN 2.3 million a year ago and PLN 4.3 million of our forecast. We have a positive view of the consolidated results and those attributable to the parent company, due to the 58% y/y profit growth, while the result attributable to the Ailleron CG is still somewhat unsatisfactory. Therefore, we are positive about the management buyout announced by the CEO during the earnings conference regarding the HotelTech segment (iLumio) and plans for FinTech. The company's representatives are positive about the market's potential and see no risk of revenue decline in the near future. Revenues for 2Q22: Consolidated net sales revenues amounted to PLN 101.7 million vs. PLN 46.2 million in the same period last year, an increase of 120% y/y. The increase in sales revenue is mainly attributable to the rapidly growing EnterpriseServices segment, whose revenue growth rate in 2Q22 was +159% y/y. This is largely the result of consolidation due to acquisitions, but also organic growth. Technology Services (e. EnterpriseServices) remains the dominant segment in the company's revenues and currently accounts for 83% of sales. FinTech generated 15% of revenues, and HotelTech just over 1%. Note the favorable trend in export sales, which in the first half of 2022 already accounted for 76% of total sales. The downside of such a situation is greater openness to currency risk. Revenues (mln PLN) and selling and administrative expenses as % of sales revenues Segment share in revenue Operating costs. Since 4Q19, there has been a positive downward trend in cost of sales relative to revenue, the share of the aforementioned currently accounting for 6.8% of sales. As the scale of operations increases, we expect further declines in this parameter in relation to revenues. General and administrative expenses have generally settled around the average of 10.1% of revenues since 1Q20, and for 2Q22 amounted to 10.2% vs. 10.1% a year ago and 9.6% in the previous quarter. EBIT for 2Q22 +58% y/y; EBITDA +41% y/y. The Group's operating profit amounted to PLN 7.0 million, compared to PLN 4.5 million in the second quarter of 2021, an increase of 58% year-on-year, for which the EnterpriseServices segment is mainly responsible (PLN 8.1 million EBIT). The operating profit of the FinTech and HotelTech segments unfortunately continues to be negative, negatively affecting, further, the result for the parent shareholders. In the case of FinTech, EBIT amounted to PLN -0.63 million, while HotelTech generated an operating loss of PLN 0.5 million. Consolidated EBITDA increased year-on-year by 41% to PLN 10.2 million vs. PLN 7.2 million a year ago. In the case of FinTech, this is due to the negative impact of the ongoing contract in the corporate part and the investment costs that are incurred in the LiveBank SaaS area. Net profit At the consolidated level, it amounted to PLN 8.5 million, up from PLN 2.3 million a year ago. In the case of net profit, this represents an increase of more than 271%. However, the net result attributable to the parent shareholders due to the negative contribution of FinTech and HotelTech is PLN 3.0 million, which, however positive for Ailleron's shareholders due to the growth dynamics (+58.0% y/y), can be considered a still unsatisfactory value (35% of net profit). It should be noted, however, that in financial expenses, in accordance with IFRS 3, the acquisition-related costs that Software Mind, as the acquirer, incurred in order to bring about a business combination as part of M&A processes were included as period costs - we are referring to consulting, legal, valuation or other costs for professional or advisory services. This refers to the costs of fully completed transactions. Excluding the costs of one-time events, the net result for the first half of 2022 is at a level of about PLN 15.8 million - i.e. almost 3 times higher than in 6M 2021. Profitability earned by Ailleron since 1Q17. The company had PLN 79 million in cash at the end of 2Q22, while financial debt is PLN 88 million. This means that net debt vs. 12 mo. EBITDA amounted to 0.20x vs. -2.98x in 2Q21. Noteworthy is the significant deterioration at the working capital level (-£10.5m), although it was -£14.2m a year ago, a y/y improvement. However, we attribute this mainly to Software Mind's rapid growth. Cash flows for 2Q22 We view Ailleron's 2Q22 results as generally positive. The results at the consolidated level should be assessed very well. Revenues were 66% above our forecasts, EBIT and EBITDA 2% below. Net profit was PLN 8.5 million vs. the PLN 4.3 we had forecast. On the negative side, we see a significant deterioration in margins, with gross margin dropping 5.2 p.p. to 23.9%, and EBITDA profitability dropping 5.6 p.p. to 10%. However, it should be noted that this is due to one-time events charged to the period's results in the form of M&A costs in SG&A and invoicing of future periods in acquired companies. We consider the results attributable to parent shareholders to be significantly better, but still unsatisfactory. In our view, only achieving more than 60% of net income attributable to parent shareholders would be a desirable value (we consider 50% to be sufficient). The company still has an investment CAPEX of around PLN 100 million to use by the end of the year. The Management Board is convinced that further adherence to the outlined strategy will allow the company to achieve several times that amount. The company's main growth direction for the next few years is expected to remain high-margin overseas. Last valuation: 19.1 PLN /share as of 3.03.2022. Price on the day of issue: PLN 11.40. Dariusz Dadej Analyst +48 602 445 334 GPW’s Analytical Coverage Support Programme 3.0

Analytical report Strategy to maximize revenue effectively in progress, profitability is still very low An ambitious strategy for the revenue growth set by the Management Board by focusing on three games from the current portfolio turned out to be implemented slightly faster than our forecasts, which should be perceived positively. The reasons include, inter alia growing users' interest in the two flagship titles (Real Boxing 2 and Eroblast) and USD appreciation, the most important currency for the Company revenue. Unfortunately, the increases in revenues are not accompanied by higher profits. Instead of generating a greater net profit margin after Q2, Vivid Games performed a result lower than in in the previous quarter and a lower than our expectations (PLN 22 thousand against the expected PLN 201 thousand and PLN 50 thousand generated in Q1 2022). The reason lies in the higher than expected costs of external services (plus 7.5%) and amortization (plus 4.2%). Among the relevant information there should be mentioned the sale of BidLogic technology (advertising mediation service), which will positively affect the Company liquidity position and net result in the third quarter. Because of this transaction, the Company expects a cash inflow of approx. PLN 4.2 million, of which over PLN 3 million has already been received. In our update report we perform a revision of the cost of capital and the assumed profit levels. Finally, we lower our valuation to PLN 1.07 (from PLN 1.29) per share at the end of 2022, still seeing Growth factors Risk factors potential for growth with relation to the current quotation. This report was prepared for the Warsaw Stock Exchange SA within the framework of the Analytical Coverage Support Program 3.0. This is a translation of the Polish analytical report. Analysts Łukasz Bryl Tel.: 785 500 874 GPW’s Analytical Coverage Support Programme 3.0

Strategy F1: 2019- 2023 The Group pursued the Strategy F1 successfully and realized it earlier than assumed; revenues and EBITDA beat the strategic targets (assumed at PLN 700 million and PLN 90 million, respectively, in 2023) hitting PLN 831 million and PLN 119 million, respectively, already in 2021, and all without incorporating the acquisition effectively closed in March 2021. Strategy F1R2: 2022-2026 For the years 2022-26 the management adopted a new strategy that assumes using the Group’s competitive advantages and its stable financial condition to accelerate its growth and expand the market share. The Strategy F1R2 defines the Group’s goals and directions of development in 3 dimensions: strategy, structure, and organizational culture. It includes ESG issues as well. The new strategy is based on 4 pillars: â–  market expansion, â–  product expansion, â–  production, â–  effectiveness. The market/ product expansion is aimed at a sales growth through market widening and product offer increase. The third pillar is supposed to support the Group’s perception as a producer through investments in production capacities, and the fourth one indicates internal transformation and elimination of the organization’s weaknesses. These last two are supposed to extend the Group’s operational flexibility and lower the risks related to unexpected changes in supply chains. The Strategy F1R2 defines key directions of the Group’s development as: new markets, well-adjusted offer, operational perfection, strong brand. The Company’s strategy covers M&A activities. Future acquisitions should enable the Group to take over a company offering complementary products to Ferro’s offer. A business growth potential after a takeover target has been incorporated, and means to raise capital for funding a potential acquisition are factors which play an important role in making a decision about the transaction. The management estimates that the realization of two main assumptions of the Strategy F1R2 will allow the Company to deliver in 2026: revenues at PLN 1,400 million, EBITDA at PLN 193 million, with the annual capex not exceeding PLN 30 million. The discussed assumptions do not cover the Company’s acquisition plans. The Strategy F1R2 assumes a dividend payout in the amount not less than 50% of the Company’s NI in the stable market and financial situation including, among other things, the consolidated ND/ EBITDA ratio staying ⩽ 2.5x. Conclusions The goals for 2026 assumed by the management are higher than our revenues and EBITDA forecasts by c. 20%. We assumed lower capex which is to be verified. The Company’s new strategy covering expansion, diversification, and competitive position improvement is, in our view, realistic. Given the current market circumstances, we are more concerned about our short-term forecasts, especially for the next year. Catalysts Expansion in European markets Strengthening position on the existing markets Launching a new logistic center in the southern Europe New products (expanding the product offer) Own brands repositioning Favorable FX rates and raw materials prices Acquisitions in the attractive segment (heat sources) Risk factors Economic slowdown in Europe Falling demand for new flats Falling frequency of renovations Qualified workforce shortage Pressure on salaries Energy/ heat price increase Volatile raw materials prices (of copper and zinc, in particular) Unfavorable/volatile FX rates (currency risk when PLN and CZK weaken against US$ and EUR) Own brands developed by shopping chains Turmoil in the region (war in Ukraine) Temporary higher inventories This report is prepared for the Warsaw Stock Exchange SA within the framework of the Analytical Coverage Support Program 3.0. Analyst: Sylwia JaÅ›kiewicz, CFA GPW’s Analytical Coverage Support Programme 3.0

Last recommendation BDM: HOLD with target price 37,0 PLN/share (2021/08/31) LINK Q2'22 results well below our expectations - increased sales costs impact profit (negatively) Q2'22, in line with our expectations, brought an increase in sales revenues to PLN 55.5 million (+12.9% y/y). The company posted a record gross margin on sales of 67.7%. Significant growth is also seen in cost of sales (+34% y/y), which outweighed the lower-than-forecast operating profit. The increase in these costs can be explained in part by the increase in sales - a significant portion is commission to franchisees. Other cost increases can be explained by the larger scale of salary increases, the high EUR exchange rate (rents are denominated in this currency) and the increase in the price of energy. We expect that the increased other operating income is mainly due to a higher-than-expected level of advances from NCBiR related to the RFiD labels under development. The company continued to see a trend of female customers returning to stationary stores, which contributed to a decline in sales in the online channel (-18% y/y). Sales campaigns in Q2 and Q3'22 were intensified to reduce inventory, as shipments of the new collection were already starting to arrive. Because of this, gross profit margin on sales declined in July and August'22, but sales increased very strongly (about PLN 55 million in two months vs. PLN 55.5 million in the entire 2Q'22). At the end of Q2'22, inventories were lower by about PLN 2.6 million k/k. Despite the ongoing armed conflict in Ukraine, the company is operating there, although on a limited basis. Esotiq has started sales on the Zalando platform in Germany and is very positive about the first sales results in this channel, so it wants to enter more German-speaking countries with its offer. Esotiq's mobile app is expected to be launched in October'22. In Q2'22, the company generated positive cash flow from operations. A reduction in accounts payable and an increase in depreciation and amortization had a significant impact on this part of cash flow. Net debt after equity was PLN 45.2 million, or 1.3x EBITDA. BDM's comments: 2Q'22 results disappointed us, mainly due to an increase in selling expenses, which are expected to rise further in 2H'22. The company's net profit was PLN 2.2m vs. PLN 3.8m expected. Unfavorable exchange rates not only raise rents, but also negatively affect purchase prices in future periods. For now, the company is managing to maintain margins mainly by increasing selling prices, but in the current macroeconomic environment, this may become increasingly difficult in the long term. The one-time significant margin decline in August'22 (55%) is justified by the need to reduce inventories and apply deeper sales. Analyst: Anna Madziar anna.madziar@bdm.pl tel.: (+48) 666 073 972 GPW’s Analytical Coverage Support Programme 3.0

Sygnity's stock price has skyrocketed >60% in the last three months versus a 14% loss on the WIG index. We do not find sufficient justification for such huge outperformance and we maintain our bearish view on SGN. We will soon update our financial forecasts for the company to reflect new assumptions for the risk-free rate and the equity risk premium, with the changes to valuation expected to be negligible. This analysis was prepared by mBank at the request of the WSE as part of the Exchange's Analytical Coverage Support Programme PaweÅ‚ Szpigiel +48 509 603 258 pawel.szpigiel@mbank.pl GPW’s Analytical Coverage Support Programme 3.0

Event: Buyback completed BioMaxima informed that it purchased 180,200 shares in the buyback (4.2% of share capital) for PLN 5.0 million that were dedicated to this purpose and thus the buyback came to an end. Expected impact: Neutral This report is prepared for the Warsaw Stock Exchange SA within the framework of the Analytical Coverage Support Program 3.0. Analyst Sylwia JaÅ›kiewicz, CFA MikoÅ‚aj StÄ™pieÅ„ GPW’s Analytical Coverage Support Programme 3.0

Event: Purchase of fuel transport wagons. The Company informed that it purchased fuel transport wagons worth the equivalent of PLN 37.8 million. Expected impact: Neutral. The purchase of these wagons is costly, but it should enhance the Company’s logistical situation and it should limit the risk of low availability of external transport services. This report is prepared for the Warsaw Stock Exchange SA within the framework of the Analytical Coverage Support Program 3.0. Analyst Łukasz Prokopiuk, CFA GPW’s Analytical Coverage Support Programme 3.0

The manufacturing PMI rose from 40.9 to 43 in September on less pessimistic new orders and current production. But approach the reading with caution – very poor past readings were not reflected in actual output and this recovery comes after the improvement in actual manufacturing results Source: Shutterstock Export orders lower because of lower German demand New orders have improved since August when they hit a 27-month low. Still, the pace of the decline has remained strong. Export orders have continued to shrink as well, with surveyed companies linking this primarily to weaker demand from Germany. The decline in current production, meanwhile, slowed to its weakest level since May. Despite falling output, backlogs of work fell for a fourth consecutive month. In response to shrinking demand, companies once again reduced purchasing activity, drawing on accumulated inventories. Manufacturers also announced job cuts in response to the deteriorating economic environment, and at the fastest pace since May 2020. We note the rebound in the input cost sub-index, which posted the strongest increase in three months. In response to rising costs, companies once again raised prices of finished goods strongly, albeit at the slowest pace since early 2021. We approach the PMI survey results with caution. The index has recorded very strong declines in recent months, but these have not been reflected even roughly in the actual industrial production data. Therefore, in the case of the improvement indicated in the September report, we do not assume that this will have a clearly positive impact on hard data readings. Indications of slower price increases in finished goods were visible in the PPI. However in the CPI - among other things, the large increase in the core component indicates another wave of price increases related to energy costs. Read this article on THINK

Q2/2022 results: weaker meter segment In 2Q2022, Sonel achieved results similar to the first quarter of this year and clearly better y/y. The increase in revenues in the most profitable area of measures (+15% y/y) did not manage to compensate for the loss of margin in less profitable segments: assembly services (sales increase +65% y/y) and meters (+85% y/ y). Rising costs negatively affected the results in Foxytech (deepening of the loss in Q2/22). Sonela's CAPEX still remains relatively small (approx. PLN 2m in Q2), given the company's development plans. We expect investments to accelerate in the coming quarters. The company regained some funds frozen in working capital, mainly due to increases in short-term liabilities. Sonel still has a surplus of cash, its level may decrease in the second half of the year due to the payment of dividends, acceleration of investments and possible increase in WC expenses. After six months, Sonel realized approx. 60% of revenues forecasted for this year and 55-60% of planned profits. Although maintaining a less favourable structure of revenues in terms of margin may worsen profitability in the second half of the year, we do not see any threats to the fulfilment of our full-year forecasts. Revenues and margins Consolidated revenues of Sonel in Q2 increased by 35%, mainly due to higher revenues in the service segment and from the sale of electricity meters (in total PLN +8.2 million y/y, approx. 75% of the total increase in sales recorded in 2Q2022). The subsidiary Foxytech, responsible for the area of meters, generated sales of PLN 8.2 million in the reporting period (+85% y/y). Sales of core business indicators increased by approx. 15%. The high (+65% y/y) sales in the service assembly segment may be a surprise, as we assumed a gradual reduction in this activity. The company explains it, among others lower use of the potential of the dedicated production of meters (reduction of demand from eastern markets), which made it possible to redirect the capacity to the provision of services. The decrease in the margin was the result of a weaker product mix (high share of low-margin meter and service segments) and rising production costs (components, work, energy). General expenses increased by 29% y/y, above the increase in gross profit. Other operating activities gave a positive result (approx. PLN 0.6 million), while a year ago there was a loss (including an allowance for the R&D project in the amount of approx. PLN 1.3 million - one-off). As a result, EBIT / EBITDA and net profit increased significantly. In the commentary on the results, the management indicated the loss recorded by Foxytech. The company relies mostly on imported components, and due to the nature of the market it operates on (a tender market with low margins and long terms of contract performance), it was not able to adjust its prices to the dynamically growing costs. We dealt with a similar situation in Apator. We mentioned the potential problems of companies with high exposure to the market of contracts won in tenders in our previous reports. Improvement in working capital, CAPEX still low The company has recovered some funds frozen in working capital (WC), mainly due to increases in short-term liabilities. Inventories continue to increase, receivables slightly lower. Consolidated CAPEX remains relatively low (ca. PLN 2m in Q2), but we expect spending to accelerate in the coming quarters. Sonel still has a surplus of cash, its level increased to PLN 15 million at the end of June. We expect that this value may decrease in the second half of the year due to the dividend payment (PLN 7 million paid in August this year), acceleration of investments (we estimate PLN 10 million in 2H2022) and a possible increase in WC expenditure (the need to finance higher inventories related to the implementation of large contracts in the area of meters). Last valuation: PLN 10.3 / share on June 06, 2022. Price on the issue date: PLN 9.8. MichaÅ‚ Sztabler Equity Analyst +48 (22) 213 22 36 michal.sztabler@noblesecurities.pl GPW’s Analytical Coverage Support Programme 3.0

Investment summary 2Q22 revenues reached PLN 14.0 million (up 32% yoy) and beat our tentative forecast by over PLN 1 million. DataWalk informed that 1H22 financials growth dynamic was impeded by insufficient training and size of teams handling the pre-sale and post-sale services, and concluded that only after these problems have been solved, the 70% target yoy growth dynamic can be reached. In 1H22 DataWalk’s growth dynamic stood at 29% yoy vs our expectations of 72% for FY22, which, in the light of current problems with pre-sale and post-sale processes, may be a big challenge for the Company this year, we believe, as 2H22 revenues should increase over 100% yoy to achieve this 72% growth. Therefore, we lower our forecast of the Company’s revenues in FY22 by 13% to PLN 46.2 million (up 50% yoy). We assume as well that, after the bottleneck problems are solved, from 2023 onwards, the Company’s revenues will resume a growth dynamic at a c. 70% level. Since June when we issued our last report, the Company informed about 8 contracts signed, including 5 which are the extensions/ expansions of existing contracts (Ally Financial, PKN Orlen, National Police Headquarters, the US Defense Department, the US Labor Department) and 3 new contracts (Total Energies, US Army Criminal Investigation Division, and Polaris Wireless). Until today, the Company informed about 14 new contracts acquired this year, which implies a 75% increase vs the analogical period of 2021 when it obtained 8 new contracts. Since June when we issued our last report, the median of EV/Sales multiples for 2022-24 of the Company’s peers has fallen by 6% on average, which coupled with lowering of our revenue forecasts for 2022E-24E by 13-16% leads to a 21% decline of our DataWalk 12M EFV that currently yields PLN 158 per share (previously PLN 201 per share). As we estimate the current upside for the Company’s share price at below 10%, we downgrade our LT fundamental recommendation to Hold (from Buy). At the same time our ST relative Neutral recommendation stays intact. Increasing number of revealed contracts Since June when we issued our last report, the Company informed about 8 contracts acquired, including 5 which are the extensions/ expansions of existing contracts (Ally Financial, PKN Orlen, National Police Headquarters, the US Defense Department, the US Labor Department) and 3 new contracts (Total Energies, US Army Criminal Investigation Division, and Polaris Wireless). Until today, the Company informed about 14 new contracts signed this year, which implies a 75% increase vs the analogical period of 2021 when it acquired 8 new contracts. Growth of sales funnel value DataWalk informed that as of September 14 a sales funnel value stood at c. PLN 25.1 million (including c. PLN 14.3 million in the US market and PLN 10.8 million in other markets) which implies a 12% growth of sales funnel value as compared to April. It seems that in spite of the above mentioned bottleneck problems of pre-sale services, a sales funnel value is back on a rising path after a year of flat performance. 2Q22 financial results review In 1H22 the Company’s revenues reached PLN 18.2 million (up 29% yoy) which implies PLN 14.0 million for 2Q22 (up 32% yoy). On the other hand, 2Q22 operating loss stood at PLN 106.2 million; the result was burdened by a non-cash cost of the incentive program (at PLN 106.2 million). 2Q22 adj EBIT (excluding the impact of the incentive program cost) amounted to 0. Operating costs in 2Q22 (excluding costs of the incentive program) reached PLN 14.0 million (up 110% yoy; up 20% qoq). 2Q22 reported revenues beat our preliminary expectations by PLN 1 million (and c. 10%). Summary of the 3rd stage of development – the conference key issues On September 15 the Company held a conference to discuss 1H22 financial results and address other matters. Below we present the key issues: According to one DataWalk’s client, the Company’s software enables to reach a 93% accuracy in fraud detection as compared to standard 20-30%; One client managed to shorten time of investigation to minutes from weeks; The Company’s clients conversion from the sales funnel reached c. 80%; There is large interest and the Company has no problem with client acquisition – the pre- and post-sale services pose the problem; The Company was forced to dismiss 50%/ 70% potential clients form US/ Europe due to a lack of employees qualified in pre- and post-sale support; Bottlenecks exerted negative impact on the pace of sales funnel building (pre-sales limitation); these processes had to be slowed; Chris Westphal is no longer a member of the team, as he completed his tasks (analytic competence building related to cooperation with US State agencies), but remains a significant shareholder; The management lists, among the Company’s weaknesses, immature system engineering processes and late start of works related to the SAAS implementation; A rise in the price list by >10% is planned from January next year (vs c. 7% rise in January 2022); The management indicated targets of the 4th stage of development: (i) acquisition of >100 clients, (ii) implementation of a partner sales model and of a SAAS model (in 3 years starting from today), and (iii) revenue growth at >70%; Full funding of the 4th development stage on the turn of 2023 and 2024 (shares issue). Financial forecasts In 1H22 DataWalk’s growth dynamic stood at 29% yoy vs our expectations of 72% for FY22, which, in the light of current problems with pre- and post-sale processes, may be a big challenge for the Company, we believe, as 2H22 revenues should increase over 100% yoy to achieve this 72% growth. Therefore, we lower our FY22 forecast of the Company’s revenues by 13% to PLN 46.2 million (up 50% yoy). We assume as well that, after the bottleneck problems 4 DataWalk are solved, from 2023 onwards, the Company’s revenues will resume a growth dynamic at a c. 70% level. Valuation and recommendations We value DataWalk via the peer-relative valuation based on the EV/Sales multiples against the peer group encompassing American software companies with similar business model and growth profile. Since June when we issued our last report, the median of EV/Sales multiples for 2022-24 of the Company’s peers has fallen by 6% on average, which coupled with lowering of our revenue forecasts for 2022E-24E by 13-16% results in a 21% decline of our 12M EFV to PLN 158 per share (from PLN 201 per share). Due to the fact that we estimate the current upside for the Company’s share price at c. 10%, we downgrade our LT fundamental recommendation to Hold (from Buy). At the same time our ST relative Neutral recommendation stays intact. Catalysts Dynamic growth of the link-based analysis segment High revenue dynamics expected in the upcoming years Increasing number of contracts signed Increasing demand for software for intelligence purposes Dynamic growth of sales funnel value Growing interest of foreign financial investors Strong USD vs PLN Risk factors Slower than expected revenue growth rate in the upcoming years Faster cash burning than expected without the following revenue growth Lacking access to funding and loss of liquidity Long sale cycle Early stage of the Company’s development Negative sentiment towards growth companies This report is prepared for the Warsaw Stock Exchange SA within the framework of the Analytical Coverage Support Program 3.0. Analyst: Tomasz Rodak, CFA

MCI Capital ASI – (Last valuation: 33.1 PLN/share as of 02.05.2022) 2Q22 results – upward revaluation of eSky helped reduce Q1 loss In 2Q2022, the company generated investment earnings of PLN 78.1 million, EBIT of +69.4 million and net income of PLN 80.3 million. Book value per share at the end of 2Q22 was PLN 34.4 compared to PLN 33.6 at the end of 1Q22, down 0.7% y/y and up 2.6% q/q. NAV/share was down about 2% from the end of 2021, mainly due to the dividend declared. On a fullyear basis, investment losses narrowed to PLN -13.5 million, EBIT declined to PLN -20.8 million, and net income was PLN 1.1 million. Net debt, according to our estimates, at the end of 2Q22 was around PLN 162 million (PLN 218 million after adjusting for the dividend liability and MCI.TV's yield guarantee liability), compared to PLN 196 million at the end of 1Q22, thanks in part to a decline in receivables. We view the results as neutral. P&L In 2Q22, investment gains amounted to PLN 78.1 million, EBIT PLN +69.4 million, net income PLN +80.3 million. The result for H1 consisted of MCI.EuroVentures FIZ positive contribution (PLN +131.2 million), including an upward revaluation of the investment in eSky (PLN +163 million), and a negative contribution from MCI. TechVentures FIZ (PLN -128.5 million), including devaluation of Morele Group (MCI share approx. -47m), Gett (MCI share approx. -34m), Answear (MCI share approx. -24m) and Travelata (MCI share approx. -21m). Revenues from management fee in 2Q22 amounted to PLN 3.3 million (vs. PLN 3.5 million in 1Q22). The results of the funds MCI Capital ASI's earnings presentation shows that the net assets of MCI.EuroVentures FIZ at the end of 2Q22 increased by 7.9% y/y. The decrease in IAI's valuation by PLN 22 million was offset by increases in Hobby Hall Group (+PLN 16 million) and eSky (+PLN 163 million). In contrast, MCI.TechVentures FIZ's net assets at the end of 2Q22 fell 40.4% YTD. The unrealized loss on the valuation of investments in this Subfund in H1, amounting to PLN 281.7 million, includes the revaluation of Morele Group (PLN - 108.6 million), Gett (PLN -79.5 million), Answear (PLN -55.4 million) and Travelata (PLN -48.7 million). Good liquidity position In our opinion, the company's liquidity situation is improving. This is supported by, for example, the full repayment of promissory notes to investment funds, the successful completion of the second tranche of the public bond issue for PLN 81 million, and the acquisition of a credit line at ING Bank for PLN 173 million, which can be used if investment opportunities arise. According to our estimates, net debt at the end of 2Q22 was around PLN 162 million, compared to PLN 196 million at the end of 1Q22. It is worth noting, however, that the decrease is temporary, as on the liabilities side the company shows a dividend liability (PLN 36.7 million) and a liability for the rate of return guarantee in MCI.TV (PLN 19 million). Adjusted for these two liabilities, net debt is about 218 million zlotys. The company said in the presentation that it has about PLN 777 million secured for potential investments. In September, additional cash is expected to come in from another redemption of investment certificates in MCI.TV FIZ, of which MCI will receive about PLN 12 million. Exits and new investments During the earnings conference call, the management indicated that valuations of companies are currently very attractive, and that the company will focus on investments in the coming quarters and years. At the same time, exits from Focus and Hojo will be made in 2022 in connection with the liquidation of the MCI.IV FIZ fund. Exits from investments in MCI.TechVentures (Gett, answear.com, Travelata) are planned for 2023 and 2024 in connection with the start of the liquidation period of this subfund, scheduled for the second half of 2024. Last valuation: 33.1 PLN/share as of 02.05.2022. Price on the day of issue 19 PLN. Krzysztof Radojewski Deputy Head of Research and Advisory Department krzysztof.radojewski@noblesecurities.pl

This analysis was prepared by mBank at the request of the WSE as part of the Exchange's Analytical Coverage Support Programme GPW’s Analytical Coverage Support Programme 3.0

Revenues up, profitability down As in the first half of 2021, in 1H 2022 NTT System again generated record high results. Half-year revenues for the first time in history exceeded PLN 0.5 billion (PLN 595 million). The most important segment of the Company remains the distribution of components, accessories, peripherals and consumer electronics (revenues amounted to a record high PLN 411.4 million). The share of this segment increased by 4.1 pp. yoy and currently accounts for 69% of revenues (64.9% in the previous year). The company has increased its already high sales dynamics in the segment of own-produced and processed products (an increase of 252.3% yoy in 1H 2022). The revenues of this segment amounted to PLN 80.6 million (the highest level in history). The revenues increase positively impacted an increase in profits, but their growth at some levels turned out to be lower than the growth of revenues. The company generated gross profit on sales of PLN 62.9 million (increase by 14.1% yoy), operating profit of PLN 15.7 million (increase by 48.2% yoy) and net profit of PLN 9.1 million (increase by 8.4% yoy). As a consequence, the gross profitability on sales decreased to 5.7% (6.5% in the previous year), and the net profitability decreased to 1.5% (1.8% in the previous year). The decline in profitability at the level of net profit resulted from over 5 times greater financial costs (due to interest on factoring) than in the previous year. Finally we lower our target price from PLN 7.9 (May 2022) to PLN 7.0, mainly due to: weaker prospects for future results (expected economic slowdown, high interest rates, low exchange rate), an increase in the discount rate and a multipliers decrease of comparable companies. Analysts Łukasz Bryl Tel.: 785 500 874 This report was prepared for the Warsaw Stock Exchange SA within the framework of the Analytical Coverage Support Program 3.0. This is a translation of the Polish analytical report. GPW’s Analytical Coverage Support Programme 3.0

Event: 2Q22 results released – slightly below our expectations. Before today’s session LSI Software released 2Q22 financial results with EBITDA at PLN 1.1 million vs PLN 2.2 million expected by us. 2Q22 revenues reached PLN 14.7 million, in line with preliminary reading; Production revenues at PLN 6.9 million turned to be 10% lower than we expected; the production margin reached 27.2% vs 42% expected; Distribution revenues at PLN 7.8 million were 12% above our forecasts; the distribution margin reached 27.2% vs 37% expected; Exports contributed 15% to 1H22 sales vs 13% in 1H21 and 24% in FY21; Gross profit on sales reached PLN 4.2 million and was 13% below our expectations; D&A stood at PLN 1.27 million in 2Q22 vs PLN 1.3 million expected; SG&A costs reached PLN 4.4 million vs PLN 4.1 million expected; 2Q22 operating loss stood at PLN 0.1 million vs expected operating profit at PLN 0.9 million; a PLN 0.2 million income tax was paid in 2Q22 (vs expected PLN 0.1 million); 2Q22 net loss stood at PLN 0.1 million vs expected PLN 0.8 million net profit; CFO at the end of 2Q22 reached PLN -1.6 million vs PLN +3.0 million in 1Q22; Cash at the end of 2Q22 PLN 4.1 million vs PLN 11.1 million in 1Q22; Net cash at the end of 2Q22 reached PLN 0.6 million vs PLN 8.2 million Capex in the discussed quarter reached PLN 5.2 million vs PLN 1,5 million in the previous quarter; Our comment: A strong decline of cash is related to very high capex, probably stemming from purchases of restaurant robots. The Company has not still received a decision regarding the cancellation of a subsidy from the Tax Shield 2.0 (c. PLN 3.5 million). The decision should be issued in 4Q22. Our commentary: When a positive decision is issued, the settlement of revenues from the Tax Shield will be completed. Expected impact: Slightly negative; the results are behind our expectations. The costs related to implementation of new business lines turn somehow higher than expected. The Company incurs high capex as well. Effects of these activities should be visible in next quarters only. This is an excerpt from the Polish version of DM BOÅš SA’s research report prepared for the Warsaw Stock Exchange SA within the framework of the Analytical Coverage Support Program 3.0. GPW’s Analytical Coverage Support Programme 3.0

Last recommendation BDM: HOLD with target price 11,5 PLN/share (2022/05/20) LINK BDM Comment: SimFabric's results for Q2'22 are below the previous estimates presented by the company at the beginning of September (H1'22: revenues from sales of products = PLN 4.6 million, EBITDA = PLN 3.2 million, Gross profit = PLN 2.7 million, profit net = PLN 2.6m) and our expectations, therefore we perceive them negatively. In the reporting period, the company generated PLN 2.4 million in revenues (-1.0% y/y). ). In H1'22, SimFabric generated PLN 4.9m in revenues (+ 7.7% y/y), of which 32.1% (PLN 1.6m) are revenues from e-learning materials, 2.8 PLN million (56.6%) three games, and PLN 0.5 million other. In 2Q'22, the operating costs amounted to PLN 1.9 million (+ 7.7% y/y). As usual, the highest cost is related to the production of games, hence the costs of external services amounted to PLN 1.3 million (+ 11.8% y/y), which was higher than our expectations, hence we perceive it negatively. In the last quarter, the company generated PLN 1.1 million EBITDA (+ 11.8% y/y), and at the level of net profit of parent comapny it managed to generate PLN 0.3 million (+ 55.6% y/y). Cash flows from operating activities in 2Q'22 amounted to -PLN 0.2 million, cash flows from investing activities were equal to -PLN 0.8 million, and financial flows were equal to PLN +0.4 million. At the end of June 22, the company had PLN 7.1m in cash and cash equivalents (-PLN 0.6m q/q). The company's intangible assets increased from PLN 5.5m at the end of Q1'22 to PLN 5.6m at the end of Q2'22 (of which PLN 4.3m were costs of games in progress (PLN +1.1m q/q) ), and PLN 1.3 million in costs of completed games. In 2Q'22, the company generated PLN 2.4m in revenues (+ 18% y / y). In H1'22, SimFabric generated PLN 4.9m in revenues (+ 7.7% y / y), of which 32.1% (PLN 1.6m) are revenues from e-learning materials, 2.8 million PLN (56.6%) three games, and PLN 0.5 million others. In the reported period, the operating costs amounted to 1.9 million (+ 7.7% y / y). As usual, the highest cost is related to the production of games, hence the costs of external services amounted to PLN 1.3 million (+ 11.8% y / y). In the last quarter, the company generated PLN 1.1 million EBITDA (+ 11.8% y / y), and at the level of net profit n.a. it managed to generate PLN 0.3 million (+ 55.6% y / y). Cash flows from operating activities in 2Q'22 amounted to PLN -0.2 million, cash flows from investing activities were equal to PLN -0.8 million, and cash flows from financial activities amounted to PLN +0.4 million. At the end of June 22, the company had PLN 7.1m in cash and cash equivalents (-PLN 0.6m q / q). The company's intangible assets increased from PLN 5.5m at the end of Q1'22 to PLN 5.6m at the end of Q2'22 (of which PLN 4.3m were costs of games in progress (PLN +1.1m q / q), and PLN 1.3m for the costs of completed games. Trade and other receivables increased from PLN 7.3 million at the end of Q1'22 to PLN 8.6 million at the end of June '22 (PLN 1.3 million). During 1H'22, the company and the entire SimFabric group continued the implementation of the Capital Group's Sustainable Development Strategy, initiated in 2019 and currently consisting of 6 pillars. In addition to the existing five pillars: creating proprietary games, game porting, research and development services and creating mobile games and virtual reality goggles, this year the sixth pillar has been added, which is the creation of games in the Play to Earn model based on blockchain and NFT technology. The development of four subsidiaries begins to enter the next phase, which begins with VRFabric with the submission of an application for introduction of shares to trading on the NewConnect exchange. At the end of June '22, the SimFabric team consists of a total of 70 people, ie: 4 people employed on specific specific contracts, the rest on the basis of b2b contracts. MobileFabric, VRFabric and GR Games employ four people on the basis of a specific work contract, Blind Warrior employs 3 people on a mandate contract. Analyst: Krzysztof Tkocz krzysztof.tkocz@bdm.pl tel.: (+48) 516 086 705 GPW’s Analytical Coverage Support Programme 3.0

The Monetary Policy Council kept National Bank of Poland rates unchanged, surprising investors. The Council rather prefers a longer period of disinflation and soft landing than a prompt return of CPI to 2.5%. Given the fast hikes in developed markets and a tense geopolitical environment, the zloty is at a risk of further weakening   ING and the consensus expected a 25bp rise in the main policy rate, while markets priced in a 25-50bp hike. In previous weeks, some Council members had explicitly declared a significant probability of ending the hiking cycle. The further sharp rise in inflation in September (especially core) did not change that opinion. This is surprising, since September's CPI negated the scenario of inflation peaking in the summer and trending downwards in the following months. In addition, major central banks entered a period of strong interest rate hikes, and the PLN weakened again. The decision to leave interest rates unchanged raises the risk of PLN depreciation, which will make it even more difficult to contain already high inflation. In the first reaction after the decision was announced, the PLN lost some 4gr against the EUR. In the post-meeting statement, the MPC assessed that past rate hikes and the expected economic downturn will contribute to weakening demand and lowering inflation "toward the inflation target". In particular, the document notes that the MPC writes about lowering inflation "towards the target", not "to the target". In addition, it was noted that the return to the NBP target will be gradual, suggesting that the MPC is not determined to bring inflation down to 2.5% year-on-year quickly, and accepts a longer period of elevated CPI levels. Markets will now focus on tomorrow's speech by NBP President Adam Glapinski, which may shed more light on the outlook for interest rates in the coming months. In our view, September's inflation data clearly point to another wave of price increases in response to earlier increases in costs, especially wholesale energy prices. Given the lag mechanism, the pass-through of higher costs to final prices will continue in the months ahead, even as demand softens. Inflation risks remain high, and in our view the peak in inflation is still ahead. At this stage we think the guidance that the tightening cycle is completed and discussion on possible rate cuts in 2023 to be risky. We see increasing chances of PLN weakening. The NBP's goals at the moment are rather to reverse the inflation trend and ensure a soft landing for the economy, than to bring inflation down to the target (2.5% YoY) as quickly as possible. Such a strategy raises the risk of a sustaining high inflation expectations and a prolonged period of elevated inflation. While we expect CPI in 2023 will fall from 20% to below 10% YoY, in 2024, when the fiscal measures (mainly cuts in indirect taxes) are reverted, inflation will rebound. Also, our models present a persistently high CPI in 2023-24 even with a GDP slowdown from 4.1% on average in 2022 to 1.5% ion average in 2023. Therefore, in our opinion, we are facing policy tightening again in 2024, either rate hikes or fiscal tightening. The ultimate cost of fighting long-term high inflation will be higher than if the policy mix tightens now. Read this article on THINK TagsPoland rates Poland MPC Disclaimer This publication has been prepared by ING solely for information purposes irrespective of a particular user's means, financial situation or investment objectives. The information does not constitute investment recommendation, and nor is it investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument. Read more

Inflation data is in focus next week, with a substantial increase expected in Poland. In Hungary, the Ministry of Finance will release the preliminary budget balance for September In this article Poland: Current account widen to 5% of GDP and Sep CPI expected at 17.2% Czech Republic: Unchanged year-on-year pace of inflation Hungary: Inflation still moving higher whilst budget improves Source: Shutterstock Poland: Current account widen to 5% of GDP and Sep CPI expected at 17.2% Current account (Aug): EUR-1573mn Weakening domestic demand and somewhat lower pressure from commodity prices eased pressure on Poland’s trade balance, but the scale of the external imbalance remains substantial. We forecast that in August exports in EUR went up by 14.7% YoY, while imports rose by 16.3% YoY. According to our forecasts, the cumulative 12-month current account will widen towards 5% of GDP by the end of the year. CPI (Sep, final): 17.2%YoY We expect the StatOffice to confirm its flash estimate of September consumer inflation at 17.2% YoY. The substantial upswing (from 16.1%YoY in August) was linked to rising prices of food and energy (mainly coal), but the scale of increase in core inflation is also shocking. According to our estimates, core inflation excluding food and energy prices jumped from 9.9% YoY in August to 10.7% YoY in September. Core prices increased by some 1.4% MoM, confirming that another wave of higher costs (mainly energy and transport) is being passed onto the prices of final products. Upward pressure on prices remains substantial and inflation is becoming stubbornly persistent. Deeply negative real interest rates and expansionary fiscal policy do not give much hope for significant disinflation anytime soon. Czech Republic: Unchanged year-on-year pace of inflation According to our estimates, inflation slowed again to 0.2% in September from 0.4% in August, which would be the slowest pace since November last year. In annual terms, this implies a stable rate at 17.2%. Compared to the previous month, we see higher prices for food (1.6%), clothing (1.8%) due to the start of the winter season and education (1.4%) due to the start of the school year. On the other hand, prices fell in transport (-1.5%) due to a drop in fuel prices (-4.1%) and tourism (-4.4%) due to the end of the summer season. For energy prices, we expect a similar pace of price increases as in the previous two months, although a few energy price hikes have again been announced for September by the main suppliers. However, the statistical office approach is still unclear and the last two months suggest that we can expect a gradual pass-through of these changes into the CPI rather than a spike in energy prices. Of course, as in the last two months, an upward spike in CPI energy prices cannot be ruled out, but otherwise, we see YoY inflation peaking in these months and we should see a decline by the end of the year, though still above the 16% YoY level. Hungary: Inflation still moving higher whilst budget improves Next week is all about the budget and inflation in Hungary. The Ministry of Finance is going to release the preliminary budget balance for September, where we expect a further deterioration with the pressure coming from the expenditure side, while the revenue side will see a boost from the windfall taxes only in the fourth quarter. In this regard, we expect a significant improvement in the months ahead. When it comes to the September inflation print, we see both the core inflation and the headline reading moving higher. The significant uptick in headline inflation is coming from the change in the utility bill support scheme. This could add roughly 3ppt to the year-on-year headline inflation as households were facing higher utility bills in September. The move in core inflation will come mainly from services and processed food as rising energy costs for corporates and the drought feed into consumer prices. Key events in EMEA next week Source: Refinitiv, ING Disclaimer This publication has been prepared by ING solely for information purposes irrespective of a particular user's means, financial situation or investment objectives. The information does not constitute investment recommendation, and nor is it investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument. Read more  

The Monetary Policy Council took a pause in the rate hike cycle but did not to close it, although the end of the cycle is near. The MPC hopes monetary tightening so far will moderate domestic demand pressure and lead to disinflation in 2023. Given upside risks to price developments we see one or two more hikes in this cycle, but further hikes may be needed in 2024 President of the National Bank of Poland, Adam Glapinski Rationale behind the pause in the rate hike cycle National Bank of Poland President GlapiÅ„ski outlined four reasons for stopping the rate hike cycle: The scale of monetary tightening to date, which has strongly reduced demand for housing and consumer credit. The gradual easing of initial shocks (energy, disruptions in supply chains). Waiting for the effects of past increases due to delays in the transmission mechanism. More decisive policy actions by major central banks (Fed, European Central Bank), which will have an impact on global disinflation. In our view, none of these factors are likely to change in the near future, so effectively we are approaching the end of cycle. Moreover, President GlapiÅ„ski assessed that it is possible that monetary policy in Poland has already reached its limits. In fact, this reasoning stems from the fact that the NBP is concerned that further tightening could negatively impact economic and financial stability. MPC too optimistic about future inflation In our opinion, the governor's view on the future situation mainly contained arguments in favour of a decline in the CPI. We are concerned that the NBP president spoke too little about upside risks to inflation. Professor GlapiÅ„ski outlined a scenario in which rate hikes by major central banks (Fed, ECB) and the economic downturn limits upward pressure on global prices, including commodity prices. At the same time, the rate hikes in Poland to date will dampen domestic demand pressures and limit local inflationary pressures. GlapiÅ„ski believes that the Polish economy is not at risk of recession or a significant increase in unemployment. If the anti-inflationary shields and measures limiting the growth of regulated prices are maintained, inflation should gradually decrease in the course of 2023. According to the governor, the decline in demand pressures will make it more difficult to pass on higher costs to final prices, reducing the secondary effects of past shocks on core inflation. Referring to the changes in the MPC's post-meeting communiqué, which now mentions a decline in inflation "towards the target" rather than "to the target", the central bank governor acknowledged that the inflation outlook for 2024 is deteriorating. Future decisions A decision on whether to end the cycle will be taken at the November meeting, after reviewing the newest macroeconomic projections. At that time, the Council may decide to communicate the formal end of the cycle or it may wait until 1Q23 when the scale of the increase in administered prices is known. For now, the Council is leaving the door open for further increases. This probably stems from the experience of recent months, when inflation kept surprising to the upside, but also from the experience of other central banks in the region, which declared the end of the cycle but the situation forced them to continue. Main takeaways from the NBP governor conference The MPC de facto allows further weakening of the zloty as it argues that the monetary tightening of the major central banks allow the NBP to hold off on increases in domestic rates. President GlapiÅ„ski argued that the weakening of the PLN has a relatively small impact on inflation (low scale of the pass-through effect). But the domestic currency came under pressure after the decision and the move continued during the press conference. Since the MPC's decision, the zloty has lost almost 2% against the euro. In our view, the inflation picture over the next two years may be worse than indicated by the NBP president. Global interest rate rises and the domestic downturn will not completely halt the so-called second-round effects. The demand barrier will appear, but in the short term the process of passing on costs to prices will be continued due to the large scale of the shock. Therefore, upward pressure on core inflation will continue in the next 2-3 quarters. CPI inflation is indeed expected to fall significantly in 2023 (from around 20% at the beginning of 2023 to below 10% by the end of 2023), but our models indicate that core inflation will be stubbornly high. In addition, the removal of temporary cuts in indirect taxes and caps on regulated energy prices will unleash 'deferred inflation' and add 4pp to CPI  in 2024. The November MPC policy meeting and the contents of the newest macroeconomic projection will be of key importance in assessing the monetary policy outlook for the coming quarters. We believe the MPC will opt for one-two more rate hikes – in November and possibly early 2023. During 2023, cosmetic cuts are possible, while 2024 will see a renewed fight against persistently high inflation and another tightening of the policy mix, either through rate hikes or a large tightening of fiscal policy will be needed to curb price pressure. Read this article on THINK TagsNational Bank of Poland Disclaimer This publication has been prepared by ING solely for information purposes irrespective of a particular user's means, financial situation or investment objectives. The information does not constitute investment recommendation, and nor is it investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument. Read more

The company reported a deepening of margin erosion in Q2'22. At the revenue level, Relpol was still consolidating the Russian company in the period (the asset write-down was only taken into account at the gross profit level). The company is suffering from increasing cost pressure (energy, materials and wages) and we assume no change in this area in H2'22. At the same time, the acceptance of price increases by customers remains a question (we pay close attention to competition from Asia). In the long term, we value the company's exposure to the energy transition area and relationships with large customers. In the shorter term, on the other hand, we are concerned that performance will be dragged down by the aforementioned factors. We are reducing our price target to PLN 6.32 and changing our recommendation to ACCUMULATE. We note that the y/y revenue growth in Q2'22 was driven by the consolidation of the Russian company (it will no longer be included in Q3'22), rising relay prices, and higher EUR/PLN and USD/PLN exchange rates. Demand for industrial automation products continues, but the weak outlook for the Polish construction industry means that new orders will be under pressure. From the other perspective, the energy transition and the popularity of photovoltaic solutions, as well as orders from strategic customers, should sustain sales in a more challenging market. The company is struggling to maintain its gross sales margin, it has been falling continuously since Q1'21. The margin in Q2'22 was 17%, while in 2020-21 it was oscillating around 20%. Profitability is negatively impacted by the cost of products. Despite declines in copper prices in USD, the company is not significantly affected due to the weakening of the USD, as well as the application of high surcharges by suppliers of copper-based materials. In addition, from 2H'22 Relpol will experience an increase in energy and labor costs. Relative to our previous recommendation, we believe that the company will sell fewer products; nevertheless, revenue growth will be positive as a result of higher conductor prices and high foreign exchange rates. As a result of cost pressures, the new gross sales margin forecasts are reduced for ’23 and ’24. The company has a tough year ahead of it, at the same time, the market position and natural demand for conductors will make Relpol ready to enter the market with new products (bistable relays) and with increased production capacity (completed investment in a new production hall and a new machine for the production of high-current relays) once the economic situation stabilizes. Main risks: 1) escalation of the war in Ukraine (the company has returned to assembly in Ukraine on a limited basis. Escalation of the war could force the company to stop production altogether); 2) high prices of strategic raw materials: copper and silver and problems with the availability of components 3) decline in the EUR / PLN exchange rate (the company exports> 70% of its products.); 4) extraordinary increase in labor costs, the model takes into consideration 8% y/y growth; 5) technological risk: displacement of electromagnetic relays by semiconductors (both have advantages / disadvantages, but are substitutes); 6) high concentration of customers (3 main clients of the company may be responsible for 30-40% of sales); 7) long operating cycle and high demand for working capital); 8) economical slow-down (current views and PMI on European market are showing a slow-down in future periods; 9) the risk of competition (the company is one of the largest producers of relays in Europe, but with a relatively low market share, Chinese competitors might try to get more market share on European market); The report was prepared by Dom Maklerski BDM at the request of the WSE as part of the Exchange's Analytical Coverage Support Programme Kajetan SroczyÅ„ski kajetan.sroczynski@bdm.pl tel. +48 (032) 208 14 39 Dom Maklerski BDM S.A. ul. 3-go Maja 23, 40-096 Katowice GPW’s Analytical Coverage Support Programme 3.0

A barometer of a weaker economy Protektor supplies footwear to many sectors (including HoReCa, industry, construction, medical sector) and is, in a sense, a barometer of the economy both in Poland (approx. 17% of revenues) and Western Europe (approx. 72% of revenues), because the forecast economic slowdown on these markets is discounted on an ongoing basis in the Group's quotations. With the outbreak of the war in Ukraine, and thus the likely increase in defense spending in most of the neighboring countries, the optimism of investors expecting an increase in orders in the military footwear segment was stimulated. Unfortunately, the results for the first quarter significantly cooled down expectations, revealing the problems faced by most enterprises this year, i.e. an increase in costs and a decline in margins at all levels. The results for the second quarter of 2022 showing an increase in revenues (+13.4 y / y), including more than a twofold increase in the sales of GROM military footwear, restored optimism. Objectively reviewing Protector results for H1 2022 and include the condition of all industries receiving the Group's products, as well as taking into account the increase in risk premium for the country, we adjust our previous forecasts and lower the target price from PLN 3.6 to 2.9 at the end of 2022 year. This report was prepared for the Warsaw Stock Exchange SA within the framework of the Analytical Coverage Support Program 3.0. This is a translation of the Polish analytical report. Analysts Artur Wizner Tel.: +48 (22) 53 95 548 GPW’s Analytical Coverage Support Programme 3.0

We maintain a positive attitude to values of Forever Entertainment and we issue a BUY recommendation, setting our target price at PLN 7,2/share (the decrease in valuation is related to an increase in the risk-free rate). In the latest record results for Q2'22, which the company owes to the premiere of the game "The House of The Dead: Remake", the biggest positive surprise was the division of revenues with the game developer and the owner of this IP. Our calculations indicate a level of approx. 35-40% (vs. 67% our assumptions from the last recommendation). However, please note that it may be higher in the following quarters, due to the priority of the production and release cost recovery for this game in that quarter. We expect it to be lower than our earlier assumptions, which translates into higher profitability. The most important premiere from the current (revealed) portfolio of titles - "Front Mission 1st: Remake" is ahead of us. We forecast that in Q4'22 this title will sell approx. 120 thousand copies., which will generate revenues of PLN 9.9 million in revenues. Throughout 2022. we estimate the company's net profit at PLN 15.4m, which will translate into an attractive P/E ratio of 9x. Moreover, we expect that the year 2023. will be "packed" with strong premieres of remakes, incl. such titles as "FM2", "FM3", "THoTD 2" or "PD 2" which will bring further dynamic result progression. Record results for Q2'22 generated thanks to the game "THoTD" In our previous report, we forecasted lower results, assuming other important debuts in Q2'22, which, however, did not take place in this period. Hence, we are positively surprised by the results of the game "The House of The Dead: Remake", which, according to our estimates, sold around 130,000 copies in the discussed period (vs our assumptions of 240 thousand throughout 2022). In addition, we were positively surprised by the division of revenues with the game developer and the owner of IP, according to our estimates, in Q2'22 it is at the level of approx. 35-40% (vs 67% of our assumptions from the last recommendation). However, please note that it may be higher in the following quarters, due to the priority reimbursement of production and release costs for this game (Q2’22). Nevertheless, we expect that it be lower than our previous assumptions, currently we assume the level of 60% for this IP. In addition, we would like to draw your attention to the information from the MegaPixel Studio report on research on "Iight-gun", the addition of which may have an impact on a significant increase in sales of „THoTD” in the following periods. The premiere of the largest IP in the portfolio of the company "FM 1st: Remake" We are waiting for the premiere of the most important (in terms of moentization potential) production from the company's game portfolio, ie "Front Mission 1st: Remake". According to the company's announcements, the title will appear in November '22. Due to the fact that this production will provide a much more hours of play (approx. 35-40 hours) compared to the previous remakes, we expect a higher price, at 35 USD. In addition, we assume that the internal FOR team is responsible for the development of this IP, hence the division of revenues from each copy with the IP owner may be approx. 50%/50%. We assume that in Q4’22 this title will sell in 120 thousand. copies, which will translate into PLN 9,9 million in revenues Further perspective of 2022 We expect that in Q3'22 FOR sold 35-40 thousand copies of the game "THoTD", and in the entire last quarter the company generated PLN 10.7 million in revenues (+ 40% y/y). Due to the further intensive expansion of teams and wage pressure, we expect a significant increase in salaries. We forecast PLN 1.6m at the EBIT level. Due to the fact that MegaPixel is very involved in other projects, we are moving "PD2" in our model to the beginning of 2023. Moreover, considering the latest information on the progress of work on "Fear Effect Reinvented", we expect the game to debut in Q1'23. Despite these shifts, we forecast that FOR throughout 2022 will generate a net profit of PLN 15.4m, which will translate into an attractive P/E ratio of 9x. Vision of intense 2023 Due to the work on "FM2" and "FM3", which has been going on for about a year, we expect that a game publisher may attempt a new type of sales campaign for this IP. In our opinion, there is a big chance that the premiers of these three titles will take place every six months. The increase in our forecasts versus our last recommendation is due to the inclusion of "FM3" in our model. However, we assume that FM2 and 3 will have lower profitability than FM 1, due to the share in production of FOR group companies (Storm Trident, MegaPixel). Additionally, in 2023 we expect the premieres of such remakes as "THoTD 2", "Fear Effect Reinvented" or "Panzer Dragoon 2". Further development plans of the company In addition, we would like to point out that Forever Entertainment is in advanced talks on obtaining new licenses for the release of remakes of classic games, much larger than before. Additionally, FOR hopes that with the release of the game "Fear Effect Reinvented" it will show potential partners that apart from working on remakes, it can also create game from scratch based on licenses (eg in the same way as in the case of "Resident Evil 2". Main risks: 1) Risk related to strategic goals 2) Risk related to the possibility of not obtaining the necessary concessions and licenses 3) The risk related to possible delays in game production 4) Risk related to the loss of key employees 5) Risk related to difficulties in acquiring experienced employees 6) The risk related to the possible failure of IT systems, telecommunications infrastructure and servers 7) The risk related to the competitive environment 8) Risk related to the development of new technologies and industry 9) Risk of volatility of foreign exchange rates The report was prepared by Dom Maklerski BDM at the request of the WSE as part of the Exchange's Analytical Coverage Support Programme GPW’s Analytical Coverage Support Programme 3.0

The government has announced plans to set a maximum electricity price for households, sensitive consumers, local governments and SMEs. This comes on top of the already-announced freeze on prices for households up to a certain level of consumption. The move may cushion the impact of higher electricity prices on 2023 CPI to just 0.2-0.4 percentage points Government's proposal on retail electricity prices The government announced a freeze on electricity prices up to a certain threshold of annual electricity usage by households and a cap on the electricity price above this threshold. The maximum price of PLN693/MWh pertains to the cost of energy only, i.e. excluding fees and taxes. The price cap pertains to annual consumption above 2,000kWh per household, 2,600kWh for households with a disabled person and 3,000kWh for farmers and large families (at least three children). Below this threshold, prices are frozen at the 2022 level. At the same time, the government proposed a cap of PLN785/MWh for sensitive consumers, local governments and SMEs, covering up to 90% of their electricity use in 2022.   In 2022, electricity prices (without fees and taxes) for households from the four main regulated distributors (Tauron, Enea, Energa, PGE) range from PLN413.1 to 414.7/MWh. Provided that prices for consumption above the limit of 2000/2600/3000 per kWh are raised to the proposed threshold, the increase will be nearly 70%. The cost of energy alone, on average, accounts for some 60% of the average electricity bill. The remaining 40% are distribution fees, taxes and other charges. Moderate increase in household electricity bills and small impact on CPI Potential price increases for households are of key importance in terms of the direct impact on CPI. Increases in energy prices for companies and local governments will affect consumer prices indirectly via the gradual pass-through of higher energy costs into prices of final goods and services. Our survey in the SME sector indicates that price increases have so far been the most frequent business response to expensive energy.      Based on 2018 data, about 70% of households consumed less than 2,500kWh annually. For the sake of simplicity, we have taken this level as the cut-off point for estimating average price increases for households consuming specific amounts of electricity. This threshold should compensate for households with higher limits (farmers, disabled, large families). We do not yet know how the StatOffice will approach the proposed solution and translate it into CPI data, but we have decided to plunge in and come up with some preliminary estimates. In 2018, the median household consumed 2000 kWh of electricity annually Empirical distribution of electricity consumption in kWh (%) Source: GUS.   Assuming no change in distribution fees and taxes, we estimate an annual increase in the 2023 average household electricity bill of about 8-15%. The range depends on assumptions for the electricity amount consumed above the thresholds. If the increase is limited to energy prices alone, more expensive electricity bills would bump up the CPI in 2023 by about 0.2-0.4 percentage points. However, this is a rough estimate. It attempts to gauge the direct impact of prices for households on CPI inflation but does not take into account second-round effects from companies and local governments passing on higher costs to buyers, or a possible increase in the weight of energy in the 2023 CPI basket. We should be able to come up with a more precise estimate when the draft bill is made public. Headline inflation likely to reach 20% soon The CPI inflation path for 2023 is uncertain given the uncertainty regarding energy prices. We still await a policy response to high gas prices as authorities may attempt to trim the 2023 price increase for households and sensitive buyers as well. Meanwhile, petrol prices have risen again amid a strengthening dollar and higher oil prices following OPEC+'s sizeable cut in output targets. In the  environment of still significantly rising overall energy costs, the headline CPI inflation may hit 20% late this year or early 2022, up from the latest reading of 17.2% year-on-year in September Read this article on THINK Disclaimer This publication has been prepared by ING solely for information purposes irrespective of a particular user's means, financial situation or investment objectives. The information does not constitute investment recommendation, and nor is it investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument. Read more

The final reading has confirmed the flash estimate of September inflation at 17.2%. This can mostly be blamed on the further rise in energy prices amid soaring coal prices, but energy alone was not fully responsible for the upswing in inflation last month. Core inflation rose to some 10.7%, confirming that inflation is increasingly broad-based Headline inflation is still elevated, with little chance of a turnaround in the near term Flash estimate of September CPI confirmed in final data Goods prices rose by 18.7% year-on-year and services by 12.5% YoY, up from 17.5% YoY and 11.8% YoY respectively in August. Similar to the previous month, more expensive coal was behind the significant month-on-month increase in prices of energy carriers. The rapid change in weather conditions in Poland translated into increased demand for clothing and footwear, resulting in price increases (4.8% month-on-month). An impressive increase was recorded in education (7.4% MoM), well beyond the typical seasonal pattern. Food prices (1.7% MoM) and prices in restaurants and hotels (1.7% MoM) continue to rise robustly, reflecting rising costs. Based on today's data, we estimate that core inflation excluding food and energy prices rose to around 10.7% YoY in September, up by around 1.5% compared to August. Headline inflation still elevated, with little chance of a turnaround in the near term Consumer prices, % YoY Source: GUS. High and persistent inflation calls for more policy actions Today's data confirmed that price increases are spreading widely and core inflation gained momentum. This is a bitter reminder that inflation is becoming stubborn and, in an environment of unanchored expectations, we may be witnessing a self-propelling mechanism that will be difficult to stop without decisive monetary policy action that will be potentially costly for the real economy.   Current trends are extinguishing hopes of a fall in inflation in the second half of this year. We have long held the view that the second half of 2022 would not bring a fall in inflation and this scenario seems to be materialising. Against this backdrop, there is still room for further interest rate rises, although the Monetary Policy Council (MPC) seems determined to end the interest rate hike cycle soon. We expect September's data from the real economy to confirm the relatively solid business conditions, allowing the MPC to raise interest rates by 25bp in November. Further steps will depend on the picture painted by the November National Bank of Poland inflation projection and incoming macroeconomic data. Be prepared for a long fight against inflation We fear that without positive real interest rates, inflation is unlikely to be contained anytime soon. While the extension of the anti-inflationary shield until the end of 2023 (our baseline scenario) and measures aimed at limiting the increase in end-user energy prices (e.g. maximum prices for electricity) may contribute to a decline in inflation to single-digit levels by the end of next year, 'deferred inflation' is mounting. In other words, authorities are kicking the can down the road and pushing inflation into the future. The return to original (regular) VAT and excise duty rates along with the withdrawal of measures inhibiting the market formation of energy prices could cause another upswing in inflation in 2024 and require further monetary tightening. Read this article on THINK TagsPoland Monetary Policy Council Inflation Disclaimer This publication has been prepared by ING solely for information purposes irrespective of a particular user's means, financial situation or investment objectives. The information does not constitute investment recommendation, and nor is it investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument. Read more

The current account deficit widened to €3,867mn in August, compared with a deficit of €1,735mn in July, and significantly worse than the consensus (€1,493mn). The marked widening of the current account balance deficit resulted primarily from a significant deterioration in the goods trade balance, driven by higher coal imports Higher coal imports contributed to the August trade deficit Monthly trade deficit commented by NBP This is the second largest monthly trade deficit this year. According to the National Bank of Poland commentary, this was mainly the result of higher demand for energy commodities, primarily coal. The geographic structure of fuel imports changed significantly – Russia ceased to be Poland's main trading partner in this area. Imports of auto parts, among other things, also increased. Imports in total increased by 28% year-on-year, following a 21% rise a month earlier. On the export side, a significant increase in automotive sales was observed, both in parts (especially batteries and engines), as well as new cars and vans. In tandem with increased imports of car parts, this suggests a general recovery in the automotive industry, likely linked to less severe supply chain disruptions. Exports to Ukraine, including fuel, among others, rose strongly for another month. In August total exports rose by 25% YoY, following a 19% increase the month before. The strong foreign trade turnover is largely the result of global price pressures. The primary income balance recorded a deficit of €3,073mn, up from €2,311mn a month ago. Income from direct investment in Polish entities accounted for the vast majority (nearly 85%). However, this time it was not offset by the balance of services, which closed August with a surplus of €2,161mn, the lowest this year. The month before, it amounted to €2,332mn. Both higher imports of services than the month before and lower exports were responsible for its decline. The current account balance's weak performance in August confirms that its 12-month deficit will widen in the coming months. It widened to 3.9% of GDP in August from 3.6% of GDP after July. It should reach around 5% of GDP by the end of the year. This is one of the key reasons for the observed weakness of the zloty. In particular, Poland has not gained access to the Recovery Fund, the exchange of which in the market for the zloty would counterbalance the deteriorating trade balance. Read this article on THINK TagsPoland trade deficit Disclaimer This publication has been prepared by ING solely for information purposes irrespective of a particular user's means, financial situation or investment objectives. The information does not constitute investment recommendation, and nor is it investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument. Read more

We expect the Central Bank of Turkey to keep rates on hold next week, given the current global economic backdrop. However, we recognise there is a significant risk skewed toward more easing as the central bank focuses on preserving growth momentum in industrial production In this article Turkey: Central Bank of Turkey expected to remain on hold this month Poland: Annual growth in industrial output moderated to single-digit levels Source: Shutterstock Turkey: Central Bank of Turkey expected to remain on hold this month The CBT’s recent rate cuts against a backdrop of high external finance requirements and a global risk-off mode may weigh on reserves as we have already seen a decline in the second half of September. Given this backdrop, the bank should remain on hold this month. However, there is a significant risk skewed towards more easing given i) President Erdogan’s call for further rate cuts to single digits by the end of the year ii) the CBT’s focus on supportive financial conditions so as to preserve the growth momentum in industrial production and the positive trend in employment given recent signals of decelerating economic activity. Poland: Annual growth in industrial output moderated to single-digit levels Industrial output (8.3% YoY): Seasonally adjusted data indicate that output started expanding again in 3Q22, after declining in 2Q22. Hard data does not confirm the sharp deterioration in industrial conditions painted by the nose-diving manufacturing PMI. Still, annual growth moderated to single-digit levels in September. High prices and potential shortages of energy will weigh negatively on industrial performance in 4Q22. Retail sales, real (4.8% YoY): Although the inflow of refugees from Ukraine is positive for the consumption of goods, the impact of this factor seems to be waning as high inflation bites into real income and makes consumers more cautious about spending. In September, sales expanded by some 4.8% year-on-year i.e. at a similar pace as in August (4.2% YoY). The structure of sales is projected to remain similar, with poor sales of durable goods and solid sales of necessities (food, clothing). In 3Q22, sales were visibly weaker than in 2Q22 in annual terms, pointing to easing household consumption. Key events in EMEA next week   Source: Refinitiv, ING TagsTurkey Poland EMEA Disclaimer This publication has been prepared by ING solely for information purposes irrespective of a particular user's means, financial situation or investment objectives. The information does not constitute investment recommendation, and nor is it investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument. Read more

Event: Preliminary 3Q22 banking segment revenues and results. On October 18, the Company released preliminary financial results with success fee revenues for 3Q22 (accounted for in line with IFRS 15) in the banking segment. In 3Q22, in the segment of pursuing claims from abusive clauses the revenues from the agreements with clients with regard to remuneration due for first instance court sentences ordering payments reached PLN 21.6 million with the net income at PLN 16.0 million. Preliminary 3Q22 results include adjustments with respect to revenues and net income on the back of compulsory restructuring of Getin Noble Bank (PLN 9.9 million at the top line level and PLN 7.6 million at the bottom line level). We present preliminary financials for last quarters below, in the Table. We believe that due to compulsory restructuring Votum will likely generate materially lower revenues from the existing clients with loans in Getin Noble Bank (c. 1/3 of total revenues constitutes the representation costs which will be hard to obtain), however the Company should be able to access the remaining part of the remuneration (success fee). At the same time we would like to stress that adjustments in 3Q22 pertain to all the revenues from Getin Noble Bank clients. Additionally, in the Table, 3Q22 financials are adjusted by write-offs that will be absent in the future; this implies that if not for the exclusions related to Getin Noble Bank, these results would have been closer to 2Q22. 567/2022/AR This report is prepared for the Warsaw Stock Exchange SA within the framework of the Analytical Coverage Support Program. 3.0.

The company maintains very high earnings growth rates at the consolidated level, and the Board of Directors does not see any risk of revenue decline in the foreseeable future. We view the plans for further growth of the dominant Technology Services segment, as well as the announced actions regarding the other two segments, positively. Seeing the rapid growth, we are raising revenue forecasts for the coming years and adjusting the parameters in the DCF. As a result, we value the company in a 24-month horizon at PLN 17.5/share, which gives 46% upside potential. Strong 2Q22 results The main influence on the results achieved in Q2 2022 was the significant improvement in the dominant Technology Services segment. Performance at the consolidated level should be assessed very well. Revenues were 66% above our forecasts, EBIT and EBITDA 2% below. Net profit was PLN 8.5 million vs. the PLN 4.3 million we had forecast. Of note is the significant deterioration in margins - gross margin falls 5.2 p.p. to 23.9%, while EBITDA profitability falls 5.6 p.p. to 10%. However, this is due to one-time events charged to the period's results in the form of M&A costs in SG&A and invoicing of future periods in acquired companies. Export growth in revenue Increasingly (85%), sales are made outside Poland. Export sales increased in 1H22 to nearly PLN 135 million and achieved a growth rate of more than 179%. The successive increase in exports is a consequence of the growing share of the Technology Services business, which is almost 100% export business, as well as the increasing share of exports in products such as LB (LiveBank). Ailleron is emphasizing growth in several key directions, primarily these are: Western Europe, Southeast Asia and the US - markets where higher margins can be achieved. Development of Financial Technology Services (FTS) The company announces the sale of technology - services to banks and companies in the financial sector, using its experience in providing technology-services (recruiting and building IT teams) and in manufacturing products for the financial sector. Services are to be sold under the Time & Material model with stable profitability (targeting 20% EBITDA margin). Changes in FinTech and hotel segment Management announces a review of investment plans in the LiveBank SaaS product, including an option to renegotiate the problematic agreement with Pekao SA. upon completion of its first phase. We consider the recent changes made to the company's board as the first sign of FinTech transformation. In addition, negotiations are underway for the hotel segment - MBO (management buy-out) of iLumio, which is a platform integrating, among other things, booking functions and hotel TV. Decisions in this regard are expected to be made later in 2022. Our 24-month price target (PT) for Ailleron SA is based on both peer multiples and a DCF (equal weighted) resulting in a PT of PLN 17.5/share. WYCENA We use two methods to value Ailleron 1) DCF and 2) Peers multiples valuation (both equally weighted). Our 24-month price target (PT) for Ailleron equals PLN 17.5 / share. Please note that in the calculation we take into account the Management Option Programme adopted by the EGM on 24 September 2021 in its entirety, i.e. we assume the issue of 821,076 new shares. In table below we present valuation summary: DCF VALUATION Assumptions: - Value of cash flows discounted as of the beginning of October 2022 (previously beginning of March 202), - Net debt level as of December 31, 2021 of -87 million (no change), - Long-term growth rate after the forecast period equal to 1.0% (no change), - Effective tax rate at 28% (previously 27%), - Risk-free rate at 7.73% (previously 4.00%), Risk premium at 7.19% (previously 5.08%), Net debt / EV 10% (previously 5%), Cost of debt 7.5% (previously 5.5%), Beta at 1.0 (unchanged). DCF AND SENSITIVITY ANALYSIS Below we present a sensitivity analysis of the DCF model depending on the risk-free rate and risk premium: Below we present Cost of Equity and WACC calculation: PEERS MULTIPLES VALUATION We based our comparative analysis on selected Polish and foreign companies. The analysis was carried out using P/E and EV/EBITDA multiples (equally weighted). Both multipes show that Ailleron is trading at a significant discount when compared to peers comparable companies. Peers valuation summary of Ailleron: Dariusz Dadej dariusz.dadej@noblesecurities.pl +48 602 445 334 GPW’s Analytical Coverage Support Programme 3.0

New indications provide new valuation opportunity Company monetized IO project and it sold its STING agonist to Exelixis. As a result of this deal, in the valuation of STING agonist project we increase bio-dollar to USD 400mn (vs. USD 150mn assumed earlier), peak sales to USD 2100mn (vs. USD 1206 assumed earlier) and level of royalties to 10% (vs. 9% assumed earlier), and we value this project at PLN 328mn (vs. PLN 149mn estimated earlier). On September 22, Ryvu presented key development goals for 1H22-2024, which, among others assumes development of RVU120 in new therapeutics indications (mCRPC and sarcomas) which has not been assumed in our last report. As a result, we assume that RVU120 will be sold in 2025e (vs. 2024e assumed earlier) with upfront payment of USD 60mn (vs. USD 30mn assumed earlier), bio-dollar value of USD 1209mn (vs. USD 525mn assumed earlier). Implementing this assumptions into our model we value RVU120 compound at PLN 746mn (vs. PLN 484 assumed in our last report). On the other hand, development of RVU120 in new indications will require additional funds that will have to be raised by the company, therefore MB was allowed by supervisory board to issue of up to 8.5mn shares. As a result, we assume that company will issue in 2H22-24e 8.5mn shares at PLN 36.2/sh (price as of yesterday close) and will raise PLN 306mn. Assuming share issue of 8.5mn new shares and value of STING agonist at PLN 328mn (vs. PLN 149mn assumed earlier), RVU120 at PLN 746mn (vs. PLN 484mn assumed earlier) and other projects at PLN 360mn (vs. PLN 365mn assumed earlier), we estimate TP at PLN 68.7/sh (vs. PLN 58mn estimate earlier) and we reiterate our Buy recommendation. Assumption for R&D pipeline valuation We performed valuation of R&D projects using risk-adjusted NPV method based on the following assumptions: â–  We applied discount rate of 13.8% (vs. 12.3% assumed in out last report) â–  We assumed USDPLN at 4.8x (vs. 4.25x assumed in our last report) and EURUSD at 1.0x (vs. 1.1x assumed in our last report) â–  Assuming probability of success we base on the probabilities presented in book Valuation in Life Science â–  Assumption related to sales of drug are based on collected by us statistics of sales comparable drugs. RVU120 As it has been presented above, we value RVU120 agonist at PLN 746mn (vs. PLN 483mn assumed in our last report). Valuation of SEL24 We expect some delays in Phase I/II AML study, therefore compared to our last report, we assume that SEL24 will be approved in 2027e (vs. 2026e in our last report) and we do not change all other assumptions and we value this compound at PLN 174mn (vs. PLN 208mn in our last report). Valuation STING agonist As it has been presented above, we value STING agonist at PLN 327mn (vs. PLN 149mn assumed in our last report). Valuation of HPK1 inhibitor Compared to our last report, we do not change major assumption in the valuation of HPK1, however in the valuation we do not take into account 2022e development costs, as they are already included in net debt 2022e, therefore we value this compound at PLN 143mn (vs. PLN 111mn in our last report). Risk to our valuation Risk of milestones, upfront and royalty payment. The assumed payments may differ visibly from our assumption as its levels is determined individually and depends from many factors such like: the advancement of drug development, success rates, sales potential. Risk of competitive projects. If competitive projects will demonstrate higher efficacy, the projects developed by Ryvu may be abandoned or its potential sales may be much lower than our estimates. If competitive project with similar or slightly lower efficacy will be developed earlier it can take over market share dedicated for company’s drug. Risk of peak sales and sales curve. Depending on patient number treated be company’s drug the peak sales as well as sales curve may deviate substantially from our assumptions. The number of patients treated by company’s drug depend on population, epidemiology, diagnosed patients access to health care, treatment rate and finally availability of other competitive treatment methods. Risk of delays. Any delays increase the cost of development of new drug as well as increase the probability that competitive project will reach marker approval before company’s drug. GPW’s Analytical Coverage Support Programme 3.0   Analyst: Marcin Gornik +48 691 701 088 marcin.gornik@pekao.com.pl

Average wages in the corporate sector rose by 14.5% YoY in September, significantly higher than the consensus (13.1% YoY) and the August print (12.7% YoY). In our view, the high minimum wage increase in 2023 will yield a wage-price spiral regardless of the market structure Employment in September increased by 2.3% YoY, against the consensus and the previous month's reading of 2.4% YoY. The Central Statistics Office has not yet released details, but it can be expected that, as in previous months, the increase in employment is mainly driven by services (retail trade, accommodation and catering). This is also where a large portion of refugees from Ukraine, who at least partially do not appear in the statistics (they are not employed under a standard labour contract), most likely found work. According to ministerial data, more than 400,000 Ukrainian refugees who have arrived in Poland since the start of the war have already found employment. This shows that the demand for labour remains strong. Wage growth falls behind price growth Source: GUS.   The labour market is persistently tight. National Bank of Poland surveys indicate some slide in the percentage of companies planning to raise wages, but it still remains at a very high level. Companies also declared that wage increases will be very broad and apply to more than half of employees. Other surveys also indicate that the job search period is shortening. On top of that, there will be a very generous increase in the minimum wage from the beginning of 2023. Given the tight labour market, this should spur a wave of wage increases, maintaining double-digit wage growth in the business sector for most of next year. In our view, the high minimum wage increase in 2023 will yield a wage-price spiral regardless of the market structure. The condition of the labour market is an argument for further tightening by the central bank, possibly with a hike in November. TagsPoland wages Disclaimer This publication has been prepared by ING solely for information purposes irrespective of a particular user's means, financial situation or investment objectives. The information does not constitute investment recommendation, and nor is it investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument. Read more

In September, construction output increased by just 0.3% year-on-year, compared to a consensus of 6.6% and an increase of 6.1% in August. The decline in growth is mainly the result of building construction. Construction may be one of the weakest elements of the economy at the turn of the year In September, construction output increased by just 0.3% YoY, compared to a consensus of 6.6% and an increase of 6.1% in August. Construction of buildings slowed to 8.7% YoY from 25.7% a month ago, although it remained by far the strongest category. New residential construction remains on a strong downward trend, as developers fear a further decline in demand and a collapse in real estate prices, while construction costs may be rising. The number of housing units under construction remains near record levels, but after a very strong 1H22, this is slowing strongly and is now below last year's level in August (see chart). Post-pandemic construction boom fading Flats under construction Infrastructure investment-related categories again performed poorly: civil engineering declined by 2.3% YoY (-1.6% YoY in August) and specialised construction works fell by 4.9% YoY (-1.3% YoY a month prior). This is likely the result of effects already seen in previous months - a strong increase in production costs, which makes it difficult to issue new tenders, particularly by the public sector, (or forces companies to walk off job sites), or a lack of funds from the Recovery Fund. Construction may turn out to be one of the weakest elements of the domestic economy at the turn of the year, with its annual dynamics sliding into negative levels. Its main driver, housing construction, is weakening significantly, and the necessary monetary tightening does not promise a recovery in demand in the coming quarters. Without access to the Recovery Fund, it is also difficult to assume an imminent improvement in infrastructure investment. Read this article on THINK TagsPoland construction Disclaimer This publication has been prepared by ING solely for information purposes irrespective of a particular user's means, financial situation or investment objectives. The information does not constitute investment recommendation, and nor is it investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument. Read more

Retail sales rose by more than 4% YoY in September, but sales of durable goods remain subdued due to elevated inflation. Demand for necessities was supported by the so-called '14th pension' and a sudden deterioration in weather conditions which boosted sales of clothing and footwear. Household consumption growth is projected to moderate Shoppers in Warsaw   The retail sale of goods increased by 4.1% YoY in September (ING: 4.8% YoY; consensus: 4.5% YoY), following an increase of 4.2% YoY in August. Seasonally adjusted sales were 0.9% higher than in August. Elevated inflation is clearly weighing on the propensity to consume as pictured by the deep fall in fuel sales (-20.4% YoY). Sales of durable goods continue to fall (cars: -2.9% YoY; furniture, consumer electronics, household appliances: -4.3% YoY). At the same time sales of necessities continue to rise. Cooler temperatures in September boosted sales of clothing and footwear (+25.2% YoY). Sales subdued despite 14th pension Retail sales of goods, % MoM (SA) Source: GUS. When assessing September's retail performance, we must remember that it was supported by the 14th pension payments that took place in August and September. New benefits probably aided monthly sales increases in seasonally adjusted terms. Nevertheless, they still look weak compared to the previous two years. Against this backdrop, September's figures look rather soft. The retail sales data suggest that high inflation is undermining consumers' purchasing power to such an extent that they are more cautious in their purchasing decisions. This is especially visible in poor demand for durable goods, where high uncertainty and unfavourable consumer sentiment are taking their toll. Some households are struggling to secure heating fuel for the winter and face high fuel prices. In addition to slower growth in demand for goods, we also see that the post-pandemic rebound in services is fading. Earlier this year consumers were eager to spend on services (tourism, eating out) that were restrained by the containment measures during the pandemic. High prices hit demand in this part of the market as well. As a result, we observe a cooling of consumer demand. Its scale may be slightly cushioned by fiscal expansion in the coming quarters. GDP We estimate that in 3Q22 GDP growth exceeded 3% YoY, with a significantly lower contribution from consumption than observed in 1H22. This means a deceleration in annual GDP growth, which in 2Q22 was at 5.5% YoY (according to unrevised data), but we judge that the economy managed to avoid a technical recession (the second consecutive quarterly decline in seasonally adjusted GDP). Read this article on THINK

With the National Bank of Hungary switching to a "whatever it takes" approach to ensure stability, we expect the base rate to remain unchanged at 13%, while the effective rate should remain at 18%. In Poland, data on money supply and unemployment will be in focus  In this article Poland: Cash in circulation continues to decline, unemployment remains unchanged Hungary: Base rate is expected to remain unchanged at 13% Source: Shutterstock   Poland: Cash in circulation continues to decline, unemployment remains unchanged Money supply (7.3% year-on-year): We estimate that money supply (M3) went up by 7.3% YoY in September vs. a 7.4% YoY increase in October. Both household deposit and corporate deposit growth are projected to increase in annual terms. At the same time, loans to households are very poor as mortgage loans are in free fall, whereas loans to enterprises are expanding robustly (mostly current loans). We forecast that cash in circulation continued to see a monthly decline. Registered unemployment (4.8%): We project registered unemployment to have remained unchanged at 4.8% in September. The economy is slowing, albeit gradually, and demand for labour remains solid. Tight labour markets and shortages of skilled workers are making businesses reluctant to lay off staff which may be difficult to re-employ later on. We expect labour hoarding during the current downturn to be substantial. Hungary: Base rate is expected to remain unchanged at 13% The National Bank of Hungary held an emergency meeting in mid-October, switching to a ‘whatever it takes’ approach. We expect the central bank to maintain this new modus operandi to ensure market stability. This means no material change in the monetary policy set-up at the upcoming regular rate-setting meeting. We expect the base rate to remain unchanged at 13%, while the effective rate (the new overnight deposit quick tenders rate) should remain at 18%. In addition to monetary policy, the focus will be on labour market data. With more and more companies giving one-off support to their employees or raising wages to mitigate the impact of the cost-of-living crisis, we expect an acceleration in wage growth. On the other hand, some companies are reacting to rising energy bills with cost-saving steps, translating into a higher unemployment rate. Key events in EMEA next week Source: Refinitiv, ING This article is part of Our view on next week’s key events   View 3 articles TagsPoland Hungary EMEA Disclaimer This publication has been prepared by ING solely for information purposes irrespective of a particular user's means, financial situation or investment objectives. The information does not constitute investment recommendation, and nor is it investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument. Read more

573/2022/AR Event: 3Q22 results preview. Unimot will present its 3Q22 financial results on November 16th . Expected quarterly EBITDA. We expect the quarterly sales to amount to PLN 3.39 billion. Our expected quarterly consolidated adjusted EBITDA estimate is as much as PLN 95.0 million (vs. PLN 12 million generated in 3Q21). We expect the Company’s EBIT and net profit at PLN 91.5 million and PLN 72.0 million, respectively. Expected results of segment. It seems that the Company managed to fully utilize the very favourable macro conditions in the ON+bio and LPG segments. The ON+bio segment could have generated extraordinary adjusted EBITDA of PLN 90 million, while the LPG segment could have delivered as much as PLN 15 million of EBITDA. Such high estimates for both segments are triggered by extraordinary market situation caused by the war in Ukraine (and the process of sanction implementation for Russian energy products and the gradual import adjustments). Logistical constraints in Poland (maximum transport capacity is being utilised currently) are an additional factor supporting strong margins. Moreover, the Company, based on our estimates, managed to generate PLN 25 million of savings on capital group transformation (out of the PLN 30 million savings declared previously by management). In our view, the current fuel margin levels are unsustainable in the long run and they are likely to gradually normalize. However, due to very dynamic environment it is hard to be sure on the possible margin levels even in the short run. We expect the natural gas and electric energy segments to reveal adjusted EBITDA of PLN 0 million and PLN -3 million, respectively. Expected impact: Depending on the divergence between the actual 3Q22 results and the market consensus of estimates. We continue to think the equities are very cheap: because the Company is currently generating extraordinary results, because it has a chance to cheaply acquire assets and because the outlook for 2023 seems very promising. We advise to overweight the equities. This report is prepared for the Warsaw Stock Exchange SA within the framework of the Analytical Coverage Support Program 3.0. GPW’s Analytical Coverage Support Programme 3.0

SFD HOLD FV PLN 2.94 12% upside Price as of 21 October 2022 PLN 2.63 SFD is due to publish its 3Q22E results on 14 November 2022. Opinion: We expect SFD to report sound 3Q22E results. Although the company has reported solid improvement of revenues (+39% y/y in 3Q22), we expect the results to remain under pressure related to operating costs inflation. Nevertheless, we expect SFD to report 80% y/y improvement of EBITDA. Revenues. The company has already reported its preliminary monthly sales with revenue of PLN 83m in 3Q22E (+39% y/y) with PLN 24.4m in July (+48% y/y), PLN 29.4m in August (+48% y/y) and PLN 29.1m in September (+25% y/y). EBIT. We expect SFD to report gross margin at comparable q/q level of 36.0% (+1.5pp y/y), as the management pointed at stabilization of gross margin despite pressure on cost of materials. We assume salaries at comparable q/q level (PLN 8.1m). As a result, we forecast EBIT of PLN 5.6m and EBITDA of PLN 6.4m (margin of 7.7%). Net profit. At the bottom line, we forecast profit of PLN 4.4m (vs. PLN 2.3m in 3Q21). Analyst: Marek SzymaÅ„ski marek.szymanski@ipopema.pl + 48 22 236 94 12 GPW’s Analytical Coverage Support Programme 3.0  

Markets learnt about the rising risk of EU money being withheld from Poland last week. However, the market reaction was quite muted. While the Rule-of-Law standoff threatens new EU funding to Poland, this is in line with the baseline scenario   Financial market participants are already assuming virtually no new EU fund flows to Poland before the late 2023 general election as a base case. However, there is mounting concern about 2024 when the absorption from the current EU budget ends and inflows of new funds look set to be modest. Context Although the European Commission (EC) formally greenlighted Poland’s National Recovery Plan (NRP) in June, funds from the EU’s Recovery Fund have not been disbursed. This is because Poland did not fulfil so-called horizontal milestones, in particular rules governing the independence of judges. As such, the country cannot start to absorb the €24bn in grants or the €12bn in preferential loans under the NRP.     The latest media reports suggest there are risks surrounding the EU’s structural and cohesion funds from the new 2021-27 multi-year budget. Poland’s allocation of grant money from these funds is three times as high as the NRP grants (above €75bn), and the implementation of them was expected to reach full-speed beginning in 2024. Direct payments to farmers (around 20% of EU transfers to Poland) are not subject to potential delays, given that they are processed at the EU-wide level. Taken together, the potential withholding of new EU funds to Poland, amounts to some €100bn. New and old EU money flows to Poland The main concern right now relates to the ‘new’ EU money to Poland as inflows already underway from the EU are not seen as likely to be disrupted. Because of the so-called T+3 rule, funds from the 2014-20 multi-year budget can be disbursed through the end of 2023. According to our estimates, the amount of remaining funds is around €20bn and given that Poland has an effective track record, the country should be able to absorb all of it. As of September 2022, contracts with EU financing have covered almost 100% of the available budget envelope, while payments were advanced in less than 75% of cases (as you can see in the chart below).   Historically, overlapping two consecutive EU budgets has been far from perfect. Poland’s experience is not impressive as shown by the sizeable drop in EU cohesion fund flows in 2016, to 1.6% of GDP compared to 2.2% of GDP in 2015, down from 3.3% of GDP on average in the previous three years. The previous EU budget expired in 2015, while investment projects from the new budget were not yet ready. The situation in late 2023 may be similar, and a sizeable gap in EU money flows may materialise in 2024. Partnership Agreement in place but not activated due to Rule-of-Law issue After the adoption of the Partnership Agreement in late June 2022, the EC made it very clear that the member states must fulfil so-called horizontal and thematic enabling conditions in the implementation of cohesion policy programmes. One of the enabling conditions requires compliance with the EU Charter of Fundamental Rights, which includes independence of the judiciary, during the whole programming period. If these conditions are not fulfilled, the EC cannot reimburse expenditures related to the parts of the programme concerned. The recent changes in the judiciary system introduced by the Polish authorities are not perceived as sufficient by officials in Brussels. Little hope for compromise before the end of 2023 A solution to the political deadlock ahead of next year’s general elections looks unlikely. This applies both to the new NRP (about 1% of GDP yearly from 2023 to 2026) and cohesion funds (above 2% of GDP yearly from 2024). The rhetoric of the current government has been centred on maintaining independence from EU bureaucrats in decision-making, so the scope for concessions in the run-up to next year’s elections is narrow. However, because confidence in the EU is very high in opinion polls, the internally-divided government will not be looking for an open conflict with Brussels. The opposition has generally shown a readiness to solve clashes with the EU. The Rule-of-Law and independence of judges remain key topics in internal policy disputes. Therefore, a scenario of no new EU money to Poland before the general election in late 2023 appears to be a baseline scenario for financial market participants. Flows of EU money will be delayed and this will hit Poland’s economy in 2024. Provided that the new EU money is not activated, the overall net balance of EU transfers to Poland (EU transfers minus Poland’s contribution to the EU) may appear close to balance (zero net flows) rather than a sizeable surplus (net balance of 2.1% of GDP yearly on average in 2017-21). Absorption of 2014-20 EU cohesion funds for Poland A percentage of total available funds Source: ING estimates. Statements from rating agencies The potential withholding of the EU's large budget for Poland could have dire economic and market implications. According to Moody’s, a further deterioration in the Rule-of-Law could negatively impact investing in Poland and further intensify the conflict between Warsaw and Brussels, which would be a credit negative. Withholding payments from the 2021-27 financial perspective would weigh on Poland’s economic as well as fiscal strength – Moody’s assessed. A similar view was presented by Fitch. The agency pointed out that delays in the disbursement of structural funds could undermine investor confidence, negatively impact the Polish zloty and hence lead to a further increase in inflationary pressure. So long as the delay is not substantial, it would not markedly impact the current absorption or investment trends, but the main risk is the suspension of EU money inflows after 2023. Read this article on THINK Disclaimer This publication has been prepared by ING solely for information purposes irrespective of a particular user's means, financial situation or investment objectives. The information does not constitute investment recommendation, and nor is it investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument. Read more

This analysis was prepared by mBank at the request of the WSE as part of the Exchange's Analytical Coverage Support Programme Recommendation: sell | target price: PLN 13.30 | current price: PLN 18.10 SGN PW; SGN.WA | IT, Poland Sygnity’s revenue for the fourth quarter of fiscal FY2022 (three months ended 30 September 2022) is expected to post a 9% rise from the corresponding year-ago period, accompanied by a small decline in gross margin. We believe the quarterly EBITDA might come in at PLN 10.8m after falling 13% from the year-ago level, reinforcing our bearish view on Sygnity. â–ª Sygnity generated estimated revenue of PLN 55.7m in Q4 FY2022, indicating an increase of 9% year over year. â–ª The gross margin could register 30.5% after 0.8pp y/y contraction. â–ª We expect fourth-quarter SG&A expenses of PLN 8.3m vs. PLN 6.4m the year before. â–ª One-time events probably had a neutral effect on the quarterly results. â–ª Consequently, we anticipate EBIT of PLN 8.2m and we assume EBITDA will approximate PLN 10.8m after falling 13% from the year-ago quarter. â–ª After a loss on financing activity in the projected amount of PLN 0.9m, and after tax at an effective rate of 19%, net profit for Q4 FY2022 might register PLN 5.9m Analyst: PaweÅ‚ Szpigiel +48 509 603 258 GPW’s Analytical Coverage Support Programme 3.0  

This report is prepared for the Warsaw Stock Exchange SA within the framework of the Analytical Coverage Support Program 3.0 Event: 3Q22 preliminary revenues amounted to PLN 14.4 million (-2% qoq; +37% yoy); above our expectations. During yesterday’s session LSI Software informed that 3Q22 preliminary revenues arrived at PLN 14.4 million (-2% qoq; +37% yoy). At the same time the Company informed that it received the PFR decision to be released from the obligation to return the financial subsidy obtained under the Financial Shield 2.0. As a result, revenues from the redemption of subsidies (PLN 3.5 million) will be recognized in the results for 4Q22. Expected impact: Positive – discounted during yesterday’s session. Reported sales turned out 14% above our initial expectations (we assumed PLN 12.6 million sales in 3Q22). Redemption of subsidies has been expected. Analyst: Tomasz Rodak, CFA GPW’s Analytical Coverage Support Programme 3.0 https://bossa.pl/analizy/wsparcie-pokrycia-analitycznego-gpw#lsi

The report was prepared by Dom Maklerski BDM at the request of the WSE as part of the Exchange's Analytical Coverage Support Programme ACCUMULATE (PREVIOUS: ACCUMULATE) TARGET PRICE 24,0 PLN 26 OCTOBER 2022, 11:10 CET We issue a Accumulate recommendation for Enter Air with a target price of 24,0 PLN/share, which is 11% above the current market price (the fall in the valuation is related to an increase in the risk-free rate and the restoration of comparative analysis in the final valuation). We positively assess the company's results for Q2'22, which in terms of gross result and EBITDA turned out to be significantly better than our expectations. The management board's outlook for 2H'22 and subsequent periods after the results conference was optimistic. Enter is constantly observing an overdemand for its services, and its low-cost structure is a significant advantage over foreign competition, and thanks to this, the carrier wins many tenders with a lower price and higher quality of services. Moreover, we are counting on record results for Q3'22. During this period, we expect more air operations than the best so far Q3'19 and better utilization of the fleet. We forecast PLN 275.8m in Q3'22 EBITDA IFRS 16 (+ 33.8% y/y). Q2'22 results The company's results for Q2'22 exceeded our expectations, which we received positively. The company's revenues in this period amounted to PLN 602.6m (+ 170.6%) and were in line with our expectations. The biggest positive surprise for us turned out to be the significantly lower cost of external services compared to our forecasts. This position includes, among others maintenance costs and some salaries (the company communicated during recent meetings with investors about the optimization of crew salaries, and the implication of which in our model improves the margin). Carrier's gross result in the reported period it amounted to PLN 68.7m (vs. -PLN 14.3m our expectations), and on the EBITDA level, the company generated PLN 112.5m (vs. PLN 27.8m BDM). Q3'22 record results Q3'22 brought a further improvement in demand (this is partially confirmed by readings published by Ryan Air; link), which significantly translated into an increase in the number of flights performed in this period (both y/y and vs the record-breaking 2019). In the summer season, the company used the entire available fleet of 25 aircraft (23 Boeing 737-800 aircraft and 2 737 MAX 8 aircraft) and two additional wet-lease machines, and the demand for its services exceeded the fleet's operational capabilities. We expect that in the discussed period, the utilization of the fleet was at a much better level, and the efficiency (number of hours flown per plane) exceeded even that of 2019. We estimate that in Q3'22 Enter Air generated PLN 1,153.4 million in revenues (+114.8% y/y). According to our calculations, the gross sales result in the last quarter amounted to PLN 233.4 million. At the level of IFRS 16 EBITDA, we forecast PLN 275.8m ( 33.8% y/y). Risk factors Despite the lifting of pandemic restrictions in most countries, the potential next waves of COVID-19 and their consequences are still the main risk to our forecasts. In addition, the above-mentioned deteriorating macro environment and changes in fuel prices (passed on to the customer) may in subsequent periods have a negative impact on the demand for trips abroad and the reconstruction of tourist traffic. However, we believe that the still observed over-demand and the competitive advantage of the company's services (in particular the lower price) will allow it to effectively use its fleet in subsequent periods. Main risks: 1) COVID-19 and its consequences 2) Macroeconomic environment 3) Customer concentration 4) Market competition 5) Aircraft crash 6) Suspension of Boeing 737 MAX 8 7) Terrorist attacks and military conflicts 8) Natural disasters and epidemics 9) Changes in fuel prices 10 ) Seasonality of results 11) Interest rate risk Analyst: Krzysztof Tkocz GPW’s Analytical Coverage Support Programme 3.0  

The report was prepared by Dom Maklerski BDM at the request of the WSE as part of the Exchange's Analytical Coverage Support Programme HOLD (PREVIOUS: BUY) TARGET PRICE 9,1 PLN 28 OCTOBER 2022, 11:30 CEST Decisions regarding the game "Stargate: Timekeepers", which have recently been made on the line Slitherine Software (publisher) - CFG (producer) and the company's communication about the ongoing optimization activities of production / teams, which, in addition to the lack of potential profits from the sale of the game, in our opinion imply significant changes in the functioning of the developer. Bearing the above information in mind, we think that the company intends to deviate from cooperation with publishers in its strategy and limit the number of simultaneous projects. We think that CFG will focus on fewer projects than before, which is implied in our model and which has a large impact on lowering our valuation. Moreover, we are disappointed with the premiere of the game "Aircraft Carrier Survival", which, despite the promising start (return of costs in 24 hours, sale of 20 thousand pieces in 72 hours), significantly differs from our expectations. Additionally, due to the expected significant changes in the operation of the group, we assume that most of the production has been delayed. Having regard to the above-mentioned arguments we are downgrading our recommendation from BUY to HOLD, setting our target price at PLN 9.1/share, which is 0,3% below the current market price. Loss of „Stargate: Timekeepers", ... At the beginning of September '22, CFG announced plans to establish a new company, Slitherine Poland (in which both parties will have shares), with Slitherine Software. New comapny will be responsible for the titles "Stargate: Timekeepers" and "Ancient Arenas: Chariots" on which CreativeForge has worked. Planned actions are to be taken by the end of 2022. We think that this means lack of proceeds from advance payments for the production and sales of the most important game in the CFG group. The direct financial benefit in this case may only be the payment of dividends by the established company or the sale of shares. On the other hand, we do not expect the advance payments received by CFG for the production of this game to be returned. …and its impact on the company's business model We think that the above decisions made by Slitherine Software (publisher) - CFG (producer) may result from "undeliverd" expectations regarding the quality of the game and the optimization of the cost of further production. In addition, in the last report, the company communicated about ongoing activities aimed at maximizing the efficiency of production teams, optimizing production and team management. With the above information in mind, we think that the company intends to leave in its strategy of cooperation with publishers and limit the number of simultaneous projects. We think that CFG will focus on a smaller number of projects than before, which is implied in our model and which has a large impact on lowering our valuation (we describe more in the chapter ("change of assumptions"). The premiere of "Aircraft Carrier Survival" leaves much to be desired The game debuted on April 20, 2022 and it was the first self-premiere of the company's new team, after CFG in 2019 has undergone thorough transformation. The first hours of "ACS" looked promising, the game reached a 24h peak of 2.3 thousand. people and climbed to the third bestselling games on Steam (with ratings at 77% positive). A few days later, the company announced the return of production, testing, location and marketing costs within 24 hours of the debut (they did not exceed PLN 0.4 million) and the sale of 20 thousand. copies in 72h. Unfortunately, the drop in ratings and mixed opinions from players (currently only 62% of positives, link) translated into a slump in the sales of "ACS". We estimate that approx. 40,000 copies was sold, and a year from the premiere, we forecast 48 thousand. units, which is far from our previous expectations (99 thousand). In addition, the game, less than 6 months after the premiere, is sold at a discount of 55% Further perspective of this year Due to the expected significant changes in the functioning of the group, we assume that most of the production has been delayed, thus we shift most of the games forecast for this year to 2023. In addition, given the reduction in employment, we assume that some of the ongoing projects will be suspended. On the other hand, we are counting on large related savings with the running of these projects. Throughout 2022, we forecast PLN 4.4m in revenues, PLN 0.5m in EBIT and PLN 0.4m in net profit. The perspective of 2023. We expect that at the beginning of 2023 there will be premiers of games such as "Handyman Corporation", "Colonize", "My Hotel", and later next year we are counting on such titles as: "Builders of Greece", "House Flipper City", "Black Gold" or "Monsters Domain" Main risks: 1) The risk of diversified and unforeseen demand for different products 2) The risk related to possible delays in game production 3) Risk related to the loss of key employees 4) Risk related to difficulties in acquiring experienced employees 5)The risk related to the possible failure of IT systems, telecommunications infrastructure and servers 6) The risk related to the competitive environment 7) Risk related to the development of new technologies and industry 8)Risk of volatility of foreign exchange rates 9) Risk of aging wishlists Analyst: Krzysztof Tkocz GPW’s Analytical Coverage Support Programme 3.0  

The third monetary policy meeting under the new Czech National bank will take place next Thursday. We believe interest rates will remain unchanged, as inflation is expected to be revised downward. On the other hand, Turkish and Polish inflation has continued to trend upward, and we see no signs of it levelling off soon In this article Turkey: Annual inflation expected to increase further Poland: No signs of polish inflation levelling off soon Czech Republic: CNB rates set to remain unchanged, again Source: Shutterstock Turkey: Annual inflation expected to increase further In October, we expect annual inflation to further increase to 86.2% (4.1% on a monthly basis) from 83.5% a month ago, given continuing broad-based pricing pressures on the back of a largely supportive policy framework along with less gradual currency weakness weighing on TRY-denominated import prices. Poland: No signs of polish inflation levelling off soon October CPI: 18.1% year-on-year Our forecasts indicate that CPI inflation increased further in October and probably slightly exceeded 18% year-on-year on the back of a sharp monthly increase in petroleum prices and further growth of energy and food prices. At the same time, we expect that core inflation continued trending upward. There are no signs of inflation levelling off soon and the momentum of core inflation remains high. October Manufacturing PMI: 42.2 percentage points Following a surprising upswing in manufacturing PMI in September, we expect the assessment of conditions in the domestic industry by purchasing managers to deteriorate again in October. Although supply-side bottlenecks eased recently and the energy outlook for the European industry is less challenging, elevated prices and softer global demand (decline in new orders) are projected to continue weighing on manufacturing activity in the coming quarters.  Czech Republic: CNB rates set to remain unchanged, again The third monetary policy meeting under the new Czech National Bank (CNB) leadership will take place on Thursday. We expect interest rates to remain unchanged. Thus, the central bank's new forecast will be the main focus. Compared to the August forecast, we see the biggest deviation in inflation, which surprised to the downside. In September, this deviation came in at 2.4 percentage points. Therefore, here we can expect the biggest downward revision in the new forecast. Nevertheless, the interest rate forecast can be expected to remain roughly similar to the CNB's summer version, indicating a rate cut in the next quarter due to the nature of the central bank's model. On the FX side, we don't expect much change in the forecast weakening trajectory of the koruna under the pressure of the declining interest rate differential. However, we don't see much implication for FX interventions, which are fully decoupled from the CNB forecast and depend only on the discretionary decision of the board. But, at the moment, we see the CNB in a comfortable position with no reason to change anything about the current regime. In the long run, we do not expect any further CNB rate hikes. Despite the board's highlighting of the wage-inflation risk, we believe that the stability or decline in annual inflation combined with a weaker economy will be enough in the coming months for the CNB to confirm the end of the rate hike cycle at future meetings. Read our full CNB preview here. Key events in EMEA next week Source: Refinitiv, ING TagsTurkey Poland PMI Czech Repulbic   Disclaimer This publication has been prepared by ING solely for information purposes irrespective of a particular user's means, financial situation or investment objectives. The information does not constitute investment recommendation, and nor is it investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument. Read more  

Consumer inflation rose by 17.9% year-on-year in October (flash) from 17.2% YoY in September. In monthly terms, prices increased at the fastest pace since April. Price growth is increasingly broad-based. The majority of the MPC is calling for an end to the tightening cycle, but we believe the Council will hike rates by 25bp in November Food prices continue to soar in Poland   According to StatOffice's flash estimate, CPI inflation rose by 17.9% YoY in October from 17.2% YoY in September. CPI growth was close to our forecast (18.1% YoY) and broadly in line with the market consensus. As expected, October saw an increase in petrol prices (4.1% MoM). This was accompanied by a further increase in energy prices (2.0% MoM). Market reports suggest that the peak in coal prices is probably behind us. At the same time, we continue to see an increase in food prices. Compared to September, prices for food and non-alcoholic beverages have risen by as much as 2.7%, and on a year-on-year basis, the price increase in this category is already close to 22%. The spillover of price increases into the overall economy is ongoing, following earlier increases in energy and transport costs. We estimate that core inflation excluding food and energy prices rose to around 11.1-11.2% YoY in October from 10.7% YoY in September. Food prices rising fast Prices of food and non-alcoholic beverages, % YoY Source: GUS.   Momentum is strong, with the CPI rising by 1.8% on a monthly basis, the highest since April this year. Not only has the scenario of an inflation peak in the summer not materialised, the story of an inflation plateau is also becoming increasingly difficult to defend. The local inflation peak is still ahead. Next February, inflation will exceed 20% YoY and a decline to single-digit levels will not occur before the fourth quarter of next year. The inflation outlook remains highly uncertain with risks tilted to the upside. Should the government decide not to extend the VAT reduction on electricity from 23% to 5% beyond end-2022, inflation could jump by around 0.5 percentage points from January 2023 on top of our current estimate.   The fight against inflation is not over yet, but the MPC appears to be dominated by those who support an end to the cycle of interest rate rises. November's interest rate decision will largely depend on the shape of the latest NBP macroeconomic projection. We expect this to indicate a higher CPI path than the July projection, and the persistence of inflation above the NBP's target. Therefore, we expect the Council to raise interest rates by 25bp next week (our baseline scenario), although the probability of interest rates remaining unchanged again is also high. Read this article on THINK Disclaimer This publication has been prepared by ING solely for information purposes irrespective of a particular user's means, financial situation or investment objectives. The information does not constitute investment recommendation, and nor is it investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument. Read more

Elektrotim's Q2’22 results were below our expectations. The company continued to experience significant costs increase regarding the contracts acquired in 2019-21. The contract for the construction of the electronic barrier on the border with Belarus has not contributed significantly to results so far. Management's outlook for H2'22 after the earnings conference call was optimistic. At the same time, we note that the portfolio still includes contracts with low margins and the company's exposure to foreign exchange rates (part of material purchases). The completion of the contract on the border with Belarus will be postponed to Q1'23 (when the contract was signed, it was assumed to be closed at the beginning of Q4'22). Taking these factors into account, we have lowered our earnings assumptions for 2022. The valuation is also negatively impacted by the increase in the risk-free rate and changes in the comparative valuation. We set our current target price at PLN 6.79, which implies an Hold recommendation. The company's Q2'22 results are another consecutive quarter in which they turned out to be below our assumptions (Q1'22: updated contract margins, Q4'21: write-downs, Q3'21: weak subsidiary results). Management notes the increase in costs and the large decline in revenue at constant prices. Given the scale of the Border Guard contract, H2'22 results will be determined by the progress of the work and its recognized profitability. The company signed the contract in March 2022, and in August 2022 an annex was signed which increases the value of the contract by PLN 9m to PLN 279m and extends the completion date to 120 days after completion of the physical barrier works (previously: 90 days). In Q2'22, the Installations segment, which accounts for the contract, had only a 2% gross margin on standalone sales (although in Q2'22 revenue from the barrier may have already accounted for the majority of its revenue). The company continued to increase its backlog in Q3'22 (we estimate by at least PLN 100m net). Most of these are contracts which the main scope of work will be in 2023. We maintain that in the medium/long term, the company may benefit from increased spending on power grids and the military area (references and certificates held). Elektrotim's current capitalization is PLN 65 m. Net cash at the end of Q2'22 amounted to PLN 18m (please note that the company has received an advance payment for a contract on the border - 15% of its value - during the period). At the same time, the company has struggled to stabilize its results in recent years. In 2017-21, it had a net loss three times, with the result ranging from PLN -15m to +17m (average for the last five years: PLN 0m, for the last 10 years: PLN 4m). The smooth implementation of the long-term strategy is also not favored by a rather fragmented shareholder structure. Krzysztof Pado pado@bdm.com.pl tel. (0-32) 208-14-32 Dom Maklerski BDM S.A. ul. 3-go Maja 23, 40-096 Katowice The report was prepared by Dom Maklerski BDM at the request of the WSE as part of the Exchange's Analytical Coverage Support Programme GPW’s Analytical Coverage Support Programme 3.0

The report was prepared by Dom Maklerski BDM at the request of the WSE as part of the Exchange's Analytical Coverage Support Programme. Last recommendation BDM: BUY with target price 7,2 PLN/share (2022/10/12) LINK BDM Comment: The final results of Forever Entertainment for Q3'22 turned out to be slightly higher than the previously presented estimates. As indicated in our recent comments, we are positively surprised by the company's results for the past quarter. In our last report (Forever Entertainment Buy 7,2 PLN ). we forecast lower results. Over the discussed quarter, the company generated PLN 11.8 million in revenues (+ 54.3% y/y) - of which PLN 9.8 million relates to revenues from the sale of products - an increase by 45.9% y/y, and the rest that is PLN 2.0 million until the change in the state of products - an increase by 114.0% y/y. The premiere of the game "THE HOUSE OF THE DEAD: Remake", which generated the highest sales revenues in the company's history so far, had the greatest impact on the increase in the company's revenues in Q3'22. Another significant factor in the increase in revenues in the periods discussed was the settlement of advances for the production of games, which reflects the acceptance of subsequent stages of their implementation. We estimate that in the discussed period, sales of the above-mentioned title were at the level of approx. 35-40 thousand. copies. The company's operating expenses in Q3'22 increased by PLN 3.5m, i.e. by 58.3% y/y, to PLN 9.6m. The increase in the value of the company's operating costs was mainly related to the increase in the costs of external services by PLN 3.0 million, i.e. by 74.5% y/y to the amount of PLN 7.0 million for 3Q'22. The amount of external services includes the value of the provision in the amount of (PLN 0.6 million for 3Q'22), created for future costs of settlements with contractors due to their share in profits from the sale of games ("revenue share"). The second significant operating cost was the cost of salaries and social security, for Q3'22 they totaled PLN 2.3 million and were 41.2% higher y/y compared to Q3'21. Employment increase over the year in the group at the level of 35%. The company's EBIT in 3Q'22 amounted to PLN 2.4 million (+ 34.1% y/y), while the company's EBITDA for the period in question was PLN 2.4 million (+ 19.0% y/y). In terms of financial activity, the company generated PLN 0.2m. The net profit for the period in question amounted to PLN 2.3 million and was higher by 46.3% compared to Q3'21. Without the RS provision, FOR's net profit would have been PLN 2.3m for Q3'22. At the end of Q3'22, the company had PLN 2.6m in cash and other assets (PLN - 0.3m q/q). Receivables from other entities decreased q/q by PLN 2.2m to PLN 6.1m. Provisions for liabilities increased by PLN 0.6m q/q to PLN 4.5m. Short-term liabilities fell by PLN 2.9m q/q to PLN 4.5m. The operating CF amounted to -11 thousand. PLN, CF investment = -0.2 million PLN, CF financial = -4.9 thousand. PLN. Most of the titles for which he is the producer and publisher are listed in the release schedule. In addition to them, the company together with entities from the group also realizes the titles not yet disclosed. We would like to remind you that the premiere of the most important production of FOR now, ie "FRONT MISSION 1st: Remake" will take place on November 30, 2022 (presale will start on November 16, 2022). • The company's revenues for Q3'22 amounted to PLN 11.8 million and were higher by 54.3% y/y (of which PLN 9.8 million relates to revenues from sales of products - an increase by 45.9% y/y, and the rest, i.e. PLN 2.0 million, until the change in the state of products - an increase by 114.0% y/y). • The premiere of the game "THE HOUSE OF THE DEAD: Remake", which generated the highest sales revenues in the company's history so far, had the greatest impact on the increase in the company's revenues in 3Q'22. Another significant factor in the increase in revenues in the periods discussed was the settlement of advances for the production of games, which reflects the acceptance of subsequent stages of their implementation. • Currently, Forever Entertainment implements independently or finances or contracts the implementation of several remake games to development studios in which it has shares. Most of the titles for which it is the producer and publisher are listed on the schedule of prime ministers. In addition to them, the company, together with entities from the group, also realizes the titles not yet disclosed. The budgets of currently produced games are much higher than the ones made in previous years. The increase in gaming budgets may be confirmed by the increase in employment (excluding company governing bodies) at the end of September 2022 in FE and the FE Group by 35% y/y. • The company's operating expenses increased by PLN 3.5m, i.e. by 58.3% y/y to PLN 9.6m in Q3'22. • The increase in the value of the company's operating expenses was mainly related to the increase in the costs of external services by PLN 3.0 million, i.e. by 74.5% y/y to PLN 7.0 million for 3Q'22. The amount of external services includes the value of the provision in the amount of (PLN 0.6 million for Q3'22) created for future costs of settlements with contractors due to their share in the profits from the sale of games ("revenue share"). Without the RS provision, FE's net profit would have been PLN 2.3m for Q3'22. • The second significant operating cost was payroll and social security costs for Q3'22, totaling PLN 2.3m, and were 41.2% higher y/y compared to Q3'21. • EBIT for 3Q'22 amounted to PLN 2.4 million (+ 34.1% y/y), while the value of the company's EBITDA profit for the discussed period was PLN 2.4 million (+ 19.0% y/y). • On the financial activity level, the company generated PLN 0.2 million. • Net profit for Q3'22 amounted to PLN 2.3 million and was higher by 46.3% compared to Q3'21. • Operating profitability EBITDA decreased to 20.7% for Q3'22 from 26.8% for Q3'22, with operating profit margin falling to 20.0% from 23.0% in the compared quarters. In the discussed period, FOR's net profitability fell to 15.5% compared to 20.6% in Q3'21. • At the end of Q3'22, the company had PLN 2.6m in cash and other assets (-PLN 0.3m q/q). Receivables from other entities decreased q/q by PLN 2.2m to PLN 6.1m. Provisions for liabilities increased by PLN 0.6m q/q to PLN 4.5m. Short-term liabilities fell by PLN 2.9m q/q to PLN 4.5m. The operating CF amounted to -11 thousand. PLN, CF investment = -0.2 million PLN, CF financial = -4.9 thousand. PLN. • At the end of Q3'22, inventories decreased by PLN 0.5 million: finished products increased by PLN 0.2 million, advance payments for deliveries decreased and services by PLN 0.6 million, a decrease in semi-finished products by PLN 0.1 million. • The most important event in Q3'22 was the presentation at the Nintendo Direct conference of another film material (gameplay) of the game FRONT MISSION 1st: Remake (preorders: 16/11/2022, premiere: 30/11/2022). • At the same global event, the first footage of the upcoming FE Group production: FRONT MISSION 2: Remake was presented. In the case of this title, it will be the first official release of this game outside of the Japanese market. The new version of the game will be characterized by completely new graphics and a few gameplay modifications, thanks to which the game will become more attractive to modern players, while remaining faithful to the original in terms of plot. The premiere of FRONT MISSION 2: Remake is scheduled for 2023. • Moreover, the third major title from the Company's portfolio has been announced at Nintendo Direct: FRONT MISSION 3: Remake. This event strengthened the promotion of the aforementioned titles, and significantly contributed to the recognition of the Company in the world, and this will translate into obtaining attractive licenses. • Magical Drop VI - the premiere of the game is scheduled for the winter of 2022/2023. • In Q3'22, the company continued work on creating tools enabling the transfer of mechanics and the implementation of code fragments of titles from (consoles) older generations in order to accelerate the implementation of game remakes implemented by the company. In addition, the implementation of a tool facilitating prototyping of the mechanics of new titles was started. • UF GAMES - works related to the introduction of all UF GAMES shares to trading in the ASO on NewConnect are in progress. Two titles achieved record sales on the Nintendo Switch console. Exceeding the number of 1,400,000 units sold is a huge success. pieces and 938 thousand. pieces by Thief Simulator and Cooking Simulator respectively. These two titles have been at the top of Nintendo Switch sales lists on various continents for many quarters. On November 2, 2022. Management Board of the Warsaw Stock Exchange S.A. adopted a resolution on introducing series A, B and C ordinary bearer shares to the alternative trading system on the NewConnect market. • As of September 30'22, the company employed a total of 69 people, including 37 people under a contract of employment (32 full-time people) and 32 people on the basis of civil law and B2B contracts. • The current schedule of premieres: https://forever-entertainment.com/premiery,4,pl . Analyst: Krzysztof Tkocz krzysztof.tkocz@bdm.pl tel.: (+48) 516 086 705 GPW’s Analytical Coverage Support Programme 3.0  

We see the National Bank of Poland hiking rates by 25 basis points at its meeting on 9 November, although the odds of no change are relatively high National Bank of Poland in Warsaw   The inflation outlook has not improved and there are even calls from the technocrats for tightening to continue, but on the other hand Monetary Policy Council comments were very dovish recently. Still, we remain confident that the NBP underdelivers market expectations on the terminal rate. Revised quarterly GDP figures point to stronger economic growth in the first half of 2022 and probably in 2022 as a whole, but the outlook for 2023 remains gloomy and we still see downside risks to our 1.5% GDP forecast for the upcoming year. Inflation refuses to pivot and is on course to peak above 20% year-on-year in February 2023. Even though it is expected to start declining afterwards to about 10%, our models point that core inflation will stay persistently high in 2023. With upside risks prevailing the MPC has no ground for complacency. All eyes are on the MPC that refrained to hike rates in October and declares to be close to ending the tightening cycle. The November macroeconomic projection may be a late opportunity for either fine-tuning or amending forward guidance. With signals from the government that they are worried about low confidence of Polish government bond buyers due to CPI risk and excessive spending in the 2023 election year, we expect policymakers to deliver a 25bp rate hike. However, we would not be surprised if the rates remained unchanged, in line with dovish comments of MPC recently. It is going to be a close call.   FX and Money Markets The zloty priced off much of the CEE premium, owing to high costs of financing of positions against the PLN, cheaper natural gas and politicians mulling a reset in relations with the European Commission to unlock the Recovery Fund. However, we fear the Polish currency won’t find much support from NBP policy in the year-end. We expect the MPC to deliver no more than 50bp of additional hikes, whereas the market is still pricing about 100bp. Therefore, we see €/PLN above 4.80 in December 2022, the scale of depreciation largely depending on the overall sentiment, €/US$ and fade of Recovery Funds. Domestic Debt and Rates We see curve steepening in the year-end. The NBP is expected to underdeliver against market expectations, pushing short end yields lower. However, fears of persistent inflation should affect the long end. This is likely to coincide with pressure on higher yields on core markets. We also cannot exclude further asset swap widening, as 2023 borrowing needs will be high. The government pledges spending cuts vs the 2023 budget draft, but this may be offset by new outlays in an election year. Read this article on THINK TagsZloty Poland central bank National Bank of Poland Disclaimer This publication has been prepared by ING solely for information purposes irrespective of a particular user's means, financial situation or investment objectives. The information does not constitute investment recommendation, and nor is it investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument. Read more

This report is prepared for the Warsaw Stock Exchange SA within the framework of the Analytical Coverage Support Program 3.0. Event: Preliminary consolidated 3Q22 results revealed. The Company published its preliminary data regarding 3Q22. The Company revealed that its preliminary consolidated adjusted EBITDA for 3Q22 amounted to PLN 124 million (vs. PLN 95.0 million expected by us). The reported consolidated EBITDA amounted to PLN 61 million (vs. PLN 95.0 million expected by us). The quarterly consolidated sales amounted to PLN 3.786 billion. The Company mentioned that the quarterly results had been particularly impacted by the war in Ukraine, and by the resultant instability of energy markets caused by introduction of sanctions on Belarus and Russia. The Company also mentions very high sale volumes generated on diesel, petrol and LPG products and logistical constraints that limited the utilization of market opportunities. Furthermore, The Company generated PLN 23 million on the sale of obligatory reserves (vs. PLN 25 million expected by us and vs. PLN 30 million declared by the Company to be generated in 2H22). Expected impact: Positive. The results were published near the end of Friday’s session and they were probably not fully discounted. The scale of positive surprise in this quarter is quite big: we will probably need to again upgrade our financial forecasts for the Company for this year. We support our positive view on the Company’s equities. Analyst: Łukasz Prokopiuk, CFA GPW’s Analytical Coverage Support Programme 3.0  

This report is prepared for the Warsaw Stock Exchange SA within the framework of the Analytical Coverage Support Program 3.0 Sector: Health care & biotechnology Market Cap: US$ 76.2 m Fundamental rating: Buy (↑) Bloomberg code: VOX PW Market relative: Overweight (↑) Av. daily turnover: US$ 0.01 m Price: PLN 34.90 12M range: PLN 33.10-53.20 12M EFV: PLN 46.4 (→) Free float: 51% Recommended action We upgrade our recommendations for the equities of Voxel: LT fundamental and ST relative to Buy (from Hold) and Overweight (from Underweight), respectively. We expect 3Q22 financial results higher yoy and materially higher qoq given a medical services pricing increase (by 30% on average with respect to diagnostics from 3Q22) and lower losses generated by the hospital business. We believe that a high demand for MRI, PET, and SPECT scans continues with CT procedure deliberately not supported by the Company, in line with the strategic assumptions. We assume a material rise in the medical staff remuneration from 4Q22 on, albeit its impact on the Group’s results should be below the impact of medical services pricing increase. Thus, we raise our financial forecasts for the Group for FY22 and onwards. In our view, it is likely that the Group may write off inventories worth several million PLN; we assume PLN 4 million in 4Q22 as a one-off. 3Q22 financial results preview In 3Q22 we assume Voxel performed 74,000 procedures altogether, (flat yoy) including 24,000 (down 9% yoy)/ 42,000 (up 4% yoy)/ 4,000 (up 3% yoy)/ 4,000 (up 21% yoy) CT/ MRI/PET/ SPECT scans. The Company concentrates on the development in the area of MRI, PET, and SPECT procedures while CT procedures are not a priority, which is in line with the Group’s strategy, and this approach should be visible already in 3Q22. We assume a significant increase of average prices, by 20-40% depending on a diagnostic procedure. We estimate Voxel’s 3Q22 non-consolidated revenues at PLN 58 million (up 29% yoy). We forecast 3Q22 revenues of RP/ Scanix/ Exira/ Vito-Med/ Alteris to reach PLN 2/6/3/7/26 million and expect the Group’s consolidated revenues to arrive at PLN 97 million (up 3% yoy). It is worth reminding that testing for SARS-CoV-2 (34,000 tests performed) increased the Group’s revenues by c. PLN 10 million in 3Q22. The Group’s 3Q22 EBIT should reach PLN 16 million (up 15% yoy). A favorable diagnostic mix (more high margin procedures) should support the profitability. A medical staff salaries growth should be visible from 4Q22. Vito-Med’s hospital should continue generating losses, though they will be lower: we assume PLN -3 million vs PLN -5 million in 2Q22 (PLN -3 million generated by the hospital business and PLN -2 million related to SARS-CoV-2). We expect considerably higher net financial costs (doubling yoy) and forecast PLN 10 million of 3Q22 NI (up 8% yoy and up 109% qoq). Financial forecasts The Group expects the diagnostic services volume to rise in 2022 and we believe this business segment will provide strong support for this year’s financials. This year’s backlog in Alteris is estimated at PLN 105 million and we believe it may slightly increase. Vito-Med closed 3 (out of 4) labs testing for SARS-CoV-2 as from April 1 NFZ stopped funding the testing performed by laboratories and mobile sites. The Company has been restructuring the hospital business in order to increase its revenues keeping the current level of employment and existing equipment base intact. Nevertheless, the hospital will burden this year’s results, we believe. We raise our financial forecasts for the Group incorporating higher pricing of medical services reimbursed by NFZ (in 3Q22 c. 30% rise (vs 1Q22) of pricing for the medical procedures which generate almost 70% of Voxel’s revenues; in 2023 we expect a comparable rise of prices for commercial clients). We assume this factor will outweigh a cost growth, especially related to the medical staff remuneration (we assume material increases from 4Q22) and expect yoy profitability improvement in 2023. Valuation Our 12M EFV for Voxel constituting a 50%–50% mix of DCF FCFF method and peer-relative valuation, stays intact at PLN 46.4 per share. The financial forecasts upgrade was offset by a RFR increase to 7% (from 6.5%) coupled with a market premium growth to 7% (from 6.0%) and a decline of forward peer multiples. The DCF FCF/ peer-relative valuation implies PLN 41/ PLN 52 per share. Risk factors 1. Lower public spending on health care (high exposure to NFZ) 2. Medical services pricing increase too low 3. Change in the State’s policy regarding private medical contractors 4. Changes in the Company’s contracts with NFZ 5. Changes in legislation regarding the funding of hospitals/ treatments 6. The decline in the society’s affluence (FFS and commercial clients contribute up to 20% of Voxel’s revenues) 7. New innovative methods of cancer diagnostics/ treatment 8. Medical errors - reputation risk 9. Low and deteriorating availability of radiologists 10. Loss/low labor supply 11. Salary pressure (in particular of medical and IT staff) 12. Overblown investments 13. Lagging behind the technological progress in diagnostics Catalysts 1. Aging society 2. The number of diagnostic imaging treatments below the standards in developed countries 3. Medical services pricing increase 4. Development of the market of private medical services 5. Improvement of the treatment mix (towards more advanced) 6. New medical services offered 7. Development of a profitable segment of pharmaceutical research (clinical trials) 8. Organic growth, new centers (high barriers to entry) 9. Acquisitions – economies of scale 10. Consolidation of the sector; potential acquisition target 11. AI development and new algorithms for test descriptions 12. IT software development for cloud diagnostics 4 Analyst: Sylwia JaÅ›kiewicz, CFA GPW’s Analytical Coverage Support Programme 3.0  

It looks as though the Democrats are doing a little better than expected in the US mid-terms. This news looks unlikely to unlock some of the equity gains that had been envisaged and we have yet to see the dollar extending its correction. Expect a day of FX consolidation ahead of US CPI tomorrow. Today's Polish monetary policy decision could weigh on the zloty United States Capitol building silhouette and US flags at sunrise Source: Shutterstock USD: Mid-terms point to a challenging two years of US policy What we have seen so far from the US mid-term results are: i) the Republicans likely taking control of the House, ii) a much closer Senate race than expected with a possibility the Democrats could retain it, and iii) the swing to Republicans not being as large as expected. How the US mid-terms play out in FX markets is rather a loose proposition - suggestions had been that a likely equity rally on the back of Republican control of Congress had been weighing on the dollar this month. In reality, buy-side surveys seem to have been split on what various mid-term outcomes would mean for equities, and hence the link between mid-terms and FX looks tenuous at best. In our US mid-term election preview, we suggested the scenario of a Republican House and a Democrat Senate might be slightly positive for the dollar in that a hamstrung Biden administration might be left to focus on Presidental executive orders including more hawkish policy on China. Additionally, reports suggest a Republican House will use next year's debt ceiling for policy leverage (such as tighter fiscal policy) and also launch a series of House investigations. On the former, a debt-ceiling stand-off in 2H23 could hit investor appetite for US asset markets and weaken the dollar - and our baseline forecasts already assume that the dollar will be turning by that stage. Back to the short term, it looks as though calls for an uninterrupted US equity rally into year-end are built on weak foundations and instead the core story of tighter US financial conditions will continue to dominate. Tomorrow's release of the October US CPI will have an important say here. An outcome in line with the consensus estimate of a 0.5% month-on-month rise in core inflation would likely keep expectations of Fed funds at 5% next year on track and keep the dollar supported. DXY is trading back under 110 again and barring a very soft US inflation release tomorrow, we see very little reason for the correction to extend much further. Favour a 109.50-110.50 range in DXY into tomorrow's CPI. Barring the mid-term results, the US calendar is light today. Fed speakers are Thomas Barkin and John Williams, both seen to the modestly hawkish end of the Fed spectrum.  Chris Turner EUR: Unpacking the EUR/USD correction EUR/USD is now around 5% off its late September lows. What has driven it? Fed communication has been reasonably hawkish and pricing of the Fed cycle is still near its highs - thus we cannot blame the correction on the Fed. What about a hawkish ECB? Two-year EUR:USD swap differentials have narrowed a little (10bp since the start of the month) and the 10-year US Treasury-German Bund spread has also narrowed 10bp this month, too. However, interest rate differentials have not been a big driver of EUR/USD over recent months. What probably is making the difference are equity markets. Since early October, European equity benchmarks are up 11% versus the 5-6% recovery in their US equivalents. Some bottom-fishing in European assets markets (including FX) may be at work here. We would argue that both the Fed and the ECB intend to take real rates even higher to turn the inflation trajectory around - meaning that further equity gains remain challenging. Above 1.0090/1.0100 EUR/USD could briefly see 1.02, but we would be in the camp saying that this correction does not endure and would still favour a return towards 0.95 into year-end as the Fed tightens the monetary knot still further. Chris Turner GBP: Holding pattern UK policymakers will appreciate the fact the UK asset markets have fallen out of the financial headlines for the time being. The UK's 5-year sovereign CDS is flat-lining near 30bp, back where it was in early September, if not early August (sub 20bp). When it comes to expected volatility in FX markets, EUR/GBP 3m volatility is trading around 8.5% - back to early September levels, while 3m GBP/USD volatility is also consolidating just below 13% and way off the near 20% levels seen in late September. So it is fair to say that some calm has returned to sterling FX markets. We continue to favour some sterling underperformance going into year-end, however. A tight UK fiscal budget on 17 November could be the catalyst to wipe a lot more off the expected Bank of England tightening cycle than is to come off the ECB cycle. And our call for a difficult, not benign external environment should see sterling soften again. EUR/GBP dips below 0.87 could provide hedging opportunities for European corporates with GBP revenue exposure. Chris Turner CEE: Difficult decision-making by the National Bank of Poland A heavy calendar continues today in the Central and Eastern Europe region. October inflation will be released in Hungary and we expect another jump from 20.1% to 21.0% year-on-year in line with expectations. The common drivers here will be rising processed food and services prices with some extra pressure coming from durables as well as the forint hitting its weakest level versus all the majors during October. Later today, the National Bank of Poland's decision will dominate CEE markets. We expect a 25bp rate hike to 7.00%, but our economists admit it will be a close call and unchanged rates are also a possibility. Inflation continues to rise, but on the other hand, the Polish zloty has strengthened significantly since the last meeting and the situation in the CEE region has generally calmed down, which should make the MPC more complacent and continue with its dovish rhetoric. Surveys are also expecting a 25bp rate hike and markets seem to be leaning on the hawkish side in our view. Hence, we believe the overall tone of today's NBP meeting and tomorrow's press conference will be dovish regardless of the pace of monetary policy tightening and the meeting will be negative for the Polish zloty, which has strengthened from levels around 4.850 to below 4.70 EUR/PLN in the last three weeks. Hence, we see the zloty vulnerable and furthermore, this is supported by the significant decline in the interest rate differential in recent days and the drop in costs of funding, which make it less expensive to be short the zloty. So as we mentioned earlier, we expect the zloty to trade above 4.750 EUR/PLN. Frantisek Taborsky Read this article on THINK Disclaimer This publication has been prepared by ING solely for information purposes irrespective of a particular user's means, financial situation or investment objectives. The information does not constitute investment recommendation, and nor is it investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument. Read more

The main reference rate was left at 6.75%, against the consensus of a 25 basis point hike. The Monetary Policy Council argued that the expected economic slowdown and monetary tightening, local and elsewhere, should gradually bring inflation back to target   After the MPC decision, tomorrow's conference by National Bank of Poland President Glapiński is even more important. Thus far, Glapiński has clearly held back on declaring the end of the tightening cycle and that should remain so tomorrow. Otherwise, the Polish zloty may suffer even more. The MPC's decision doesn’t help to rebuild investor confidence in Polish government bonds. In our view, the strong weakening of Polish debt, with 10-year yields peaking at 9% in October, was not only due to investor concerns about the high borrowing needs of the budget in 2023, but also was caused by the belief that inflation will remain persistently high, necessitating future hikes. The MPC statement sounded more hawkish and CPI projections were revised up The tone of the November post-meeting statement is relatively hawkish given the lack of a decision on a rate hike. In the passage on inflation, attention was drawn not only to commodity shocks, but in first instance the second-round effects (the transmission of high corporate costs to final prices) and demand pressures are mentioned as CPI drivers. Both of these factors increase core inflation. The second important change is in the projections. The NBP's expected economic growth in 2023-2024 has been slightly lowered, while the inflation path was revised up, above the July scenario. It is worth bearing in mind, however, that the July projection assumed the expiration of the Anti-Inflation Shield (VAT and excise tax cuts on electricity, gas, heating, fuel and food, among others) in October of this year. According to NBP Deputy Chairman M. Kightley, the November projection assumes the freezing of energy prices announced by the government and the maintenance of the Inflation Shield in 2023. Despite such assumptions and lower GDP growth, the inflation path went up. Still, the MPC's conclusion has not changed. The Council believes that the rate hikes made so far, as well as the slowdown of the economy, should support a decline in inflation, towards the NBP's inflation target. The MPC also hopes that low inflation should be supported by an external slowdown and rate hikes by major central banks. At the same time, it acknowledged that inflation should remain high in the short term, with a gradual return to the target. Comparison of NBP projections   We do not know the quarterly backdrop of the CPI projections, but the average of the ranges for the annual data suggest that inflation will not approach the target until 2025, so an extended period of elevated inflation lies ahead. The fact that inflation is unlikely to return to the NBP's target within the monetary policy horizon (4-7 quarters) suggests that there is still room for tightening. NBP rates remained unchanged for the second consecutive month, but this does not look like the formal end of the hike cycle. In its statement, the MPC said that further decisions should depend on incoming information on inflation and economic activity. At tomorrow's conference, the NBP president should rather refrain from declaring the end of the tightening cycle. Our inflation and rates view Inflation risks remain high, and the peak in inflation is still ahead of us. In our view, it will occur in February 2023 at around 20%. Also, the NBP is no longer talking about inflation stabilisation in the second half of 2022, but sees CPI peaking in early 2023, as do we. Over the course of 2023, CPI is expected to drop from 20% year-on-year to below 10%, but in 2024, inflation should remain stubbornly high. Our models indicate that even a slowdown in GDP to around 1-1.5% YoY in 2023 will not bring inflation even close to the NBP's target of 2.5% YoY. We see strong second-round effects (easy pass-through of corporate costs to retail prices), high inflation expectations of companies and households. The experience of other countries where inflation expectations were "deanchored" and the price spiral was set in motion shows that in order to combat stubbornly high inflation, a decisive tightening of the policy mix, i.e. monetary and fiscal policy, was necessary. Therefore, either further rate hikes or strong fiscal tightening await us in 2024. The ultimate cost of fighting long-term high inflation will be higher than if the tightening of the policy mix were greater today. The post-meeting statement indicates that the NBP rather targets a reversal of the inflation trend and want to facilitate a soft landing for the economy rather than bring inflation down to 2.5% as quickly as possible. Such a strategy raises the risk of perpetuating high inflation expectations, and this could entail higher costs of containing CPI in the future. Read this article on THINK TagsPoland rates Poland central bank Disclaimer This publication has been prepared by ING solely for information purposes irrespective of a particular user's means, financial situation or investment objectives. The information does not constitute investment recommendation, and nor is it investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument. Read more

This report is prepared for the Warsaw Stock Exchange SA within the framework of the Analytical Coverage Support Program 3.0. Event: 3Q22 preliminary results revealed – 31% yoy growth of revenues – below expectations. After yesterday’s market close, DataWalk released preliminary financials for 1-3Q22 with the revenues at PLN 25.8 million (up 29% yoy) which implies 3Q22 revenues at PLN 7.7 million (up 31% yoy) while an implied 3Q22 operating loss adjusted for the incentive program costs reached PLN -7.3 million. The incentive program valuation had a positive impact on the reported result. Operating costs grew in 3Q22 (up 65% yoy and 8% qoq) to PLN 15.0 million. The CEO PaweÅ‚ WieczyÅ„ski commented on the results: DataWalk expected a revenue dynamic growth in 3Q22, but this expectations did not materialize; In 3Q22 the Company witnessed a slowdown in making purchase decisions by some clients in spite of the fact that the implementation of solutions offered by DataWalk is deemed indispensable. The Company does not lose contracts, albeit they are delayed and in some cases split into parts with a lower first order; The CEO believes that even if uncertain economic circumstances prevail, DataWalk will come out of it with the stronger organization enabling the Company to accelerate its growth. Our comment: 2Q22 poor dynamics were justified by insufficient training and performance of field engineering teams handling the pre-sale (software trial version installation) and post-sale services (software implementations); this time, in 3Q22 the situation was aggravated by the problems of the wide market such as clients’ delaying decisions stemming from a harsher economic reality. The full 1-3Q22 report will be published on November 22, 2022. Expected impact: Slightly negative; as the revenue growth dynamic disappointed. Nevertheless, it looks like this has been partially discounted by the market. Analyst: Tomasz Rodak, CFA +48 797 487 381 GPW’s Analytical Coverage Support Programme 3.0  

Next week UK chancellor Jeremy Hunt will deliver his Autumn Statement. Exactly how the fiscal deficit will be closed remains uncertain – we believe there will be more noticeable cuts to investment spending. Data-wise, October's CPI reading will mark the peak in UK inflation, given energy will be fixed over the coming months In this article US: Fed officials will have to tread carefully regarding hiking expectations UK: Autumn Statement in focus amid busy data week Poland: inflation remains broad-based and core inflation momentum is high Source: Shutterstock US: Fed officials will have to tread carefully regarding hiking expectations The low CPI print from the US this week has boosted expectations that the Federal Reserve will raise interest rates by “only” 50bp in December after four consecutive 75bp hikes. However, the Fed will be nervous that Treasury yields fell so far as some market participants interpreted the number as an indication that the Fed’s work is nearly done. However, Fed officials won't want to signal that yet as it will reinforce a loosening of financial conditions that could undermine all the hard work in trying to constrain inflation. We expect to hear some fairly hawkish rhetoric over the coming days, messaging that while there likely will be a moderation in the size of rate hikes, inflation is not defeated and there is likely to be a higher terminal interest rate than the central bank signalled in September. In terms of data, we have retail sales, industrial production, producer price inflation, housing starts and existing home sales. Moderate growth is likely to be the order of the day in the activity reports, while the housing numbers will be soft due to the rapid rises in mortgage borrowing costs that have prompted a collapse in demand. PPI should come in on the softer side of expectations, thanks to falling commodity prices and freight costs plus the strong dollar and easing supply chain pressures. UK: Autumn Statement in focus amid busy data week Markets have generally given new UK prime minister Rishi Sunak and his chancellor Jeremy Hunt the benefit of the doubt when it comes to next week’s Autumn Statement. That’s partly because these announcements will be accompanied by new forecasts from the Office for Budget Responsibility – something that was lacking when the ill-fated mini-budget was announced in September. Investors no doubt expect the Chancellor to do enough to convince the OBR that debt will fall across the medium-term, closing a fiscal deficit that would probably otherwise be £30-40bn/year by 2026-27. Exactly how that will be achieved remains somewhat uncertain, and pretty much every possible lever available to the Chancellor has been touted in the press at some point over the past few weeks. Recent reports suggest the Treasury will rely more on spending than taxes to do the heavy lifting. But given the real-term cuts (in some cases sizable) already facing certain government departments, it may be that this means more noticeable cuts to investment spending. For the economy, much will depend on how much of the burden is placed on consumers via higher taxation, and how immediately those changes come through. But we’ll also be looking out for further detail on how the government intends to re-structure its flagship Energy Price Guarantee. The price cap, which had been due to last for two years, will be scaled back from April. Our working assumption is that most households will be shifted back to the Ofgem regulated price, which we estimate will average £3,300 annually based on current futures prices, up from £2,500 at the current government-guaranteed level. We also have a few key pieces of data: Jobs (Tue): Hiring indicators have begun to turn lower, but so far there’s been little-to-no sign of increased redundancies. Firms continue to face material staff shortages, driven in part by rising rates of long-term sickness in older workers. We expect the unemployment rate to remain low next week, and greater scope for "labour hoarding" compared to previous recessions could feasibly limit how far and fast unemployment rises over the coming month. Inflation (Wed): Famous last words but October’s inflation data is likely to mark the peak in UK CPI – or there or thereabouts. This data will include the latest rise in electricity/gas prices, but given they’re now being fixed by the government until at least April, their contribution has probably peaked. Still, headline inflation is unlikely to slip back into single digits until March/April next year. Retail sales (Fri): We expect a third consecutive month-on-month fall in sales as the cost of living squeeze continues to bite. Poland: inflation remains broad-based and core inflation momentum is high Current account (Sep): €-3025mn The external position remains under pressure and we expect another wide current account deficit for September amid a deep foreign trade imbalance and unfavourable secondary income balance, as September was a month when Poland paid more to the EU budget than received from it. On a 12-month cumulative basis, the current account is projected to have expanded to 4.1% of GDP vs. 3.9% of GDP in August. CPI (Oct): 17.9% YoY We expect the flash estimate of 17.9% year-on-year to be confirmed by the final data. Prices of petrol went up by 4.1% month-on-month and energy for housing by 2.0% MoM, so the energy crisis is not over yet. At the same time, prices of food and non-alcoholic beverages jumped up by 2.7% MoM as farmers, food manufacturers and retailers continue to pass on higher costs of energy and transport onto their final products. Inflation remains broad-based and core inflation momentum is high. We estimate that core inflation excluding food and energy prices went up by 1.2% MoM i.e. 11.2% YoY in October vs. 10.7% YoY in September. GDP (3Q22): +3.5% YoY The recent revision of national accounts point to an even stronger 1H22 and increases the upside risk to our forecast of 2022 GDP at 4.3%. We forecast that in 3Q22, GDP bounced back after declining by 2.1% quarter-on-quarter seasonally-adjusted in 2Q22, but annual growth moderated toward 3.5% YoY. The Polish economy is clearly slowing down and a strong performance in 1H22 has created a high reference base for 2022 so we expect dismal annual GDP figures at the beginning of 2023 and risks to our 1.5% forecast for the next year are increasingly skewed to the downside. Developed Markets Economic Calendar Source: Refinitiv, ING EMEA Economic Calendar Source: Refinitiv, ING This article is part of Our view on next week’s key events   View 2 articles TagsTreasury Federal Reserve EMEA   Disclaimer This publication has been prepared by ING solely for information purposes irrespective of a particular user's means, financial situation or investment objectives. The information does not constitute investment recommendation, and nor is it investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument. Read more

IMC Recommendation*: BUY 12M TP*: PLN 22.56 â–  In 3Q22 revenues stood at USD 17.3mn, i.e. 15% above our forecast of USD 15.0mn, mainly due to the higher volumes sales. IMC managed to sell 63kt of corn and 13kt of wheat compared to 60kt of wheat we’ve assumed in 3Q22 previews. â–  The reported gain from changes in fair value of biological assets and agricultural produce amounted to USD 12.0mn, only 8% down yoy and double of what we’ve estimated in our previews. The major reason for the beat were higher corn volumes used for the calculation of fair value. However, due to the absence of active market for grains in Ukraine, the valuation was based on cash flows method which apparently resulted in lower corn price used for calculations equal to mere USD 150/t vs. USD 200/t in 3Q22. Drop of that price may herald lower sales price in 4Q22 stemming from unfavorable conditions offered by international commodities traders. â–  Consolidated EBITDA in 3Q22 came in at USD 14.9mn, beating our forecast of USD 8.3mn by wide margin. â–  Net profit came in at USD 1.0mn vs. USD 2.9mn estimated by us, due to the USD 8.5mn FX losses. â–  OCF came in at negative USD 2mn vs. USD 10mn last year in the same time and USD 27mn year before. â–  Net debt came in at USD 152mn vs. USD 184 in 2Q22 due to the drop of long-term liabilities as to right-of-use assets Our view: NEUTRAL The 3Q22 results look decent, however the main reason for the beat was higher than expected gain on changes in FV of biological assets, which is non-cash P&L item. On the cash flow side, there is improvement vs 2Q22, but IMC’s ability to generate cash in 3Q22 was still far cry from previous years. Thankfully, along with reporting the end of harvest in 2022 the company said that in September and October IMC export reached 40.3kt and 56.7kt, which if extrapolated on the remaining months in 4Q22 should provide decent cash inflow (if the payment for sold produce is going to be realized in 4Q22 as well). For the moment being we remain cautious with respect to IMC, though we see the chance it’s out of the woods really soon. Clearly, we’ll be able to say more after 4Q22 report publication, when we know if sales numbers remain stable and what are realized prices vs. the market, or if higher sales are not paid for with hefty discounts. Analyst: Krzysztof KozieÅ‚ GPW’s Analytical Coverage Support Programme 3.0  

The report was prepared by Dom Maklerski BDM at the request of the WSE as part of the Exchange's Analytical Coverage Support Programme Last recommendation BDM: HOLD with target price 9,1 PLN/share (2022/10/28) BDM Comment: The company's results for Q3'22 at the level of EBIT profit are below our expectations, therefore we perceive them negatively. At the level of revenues, CFG generated PLN 1.7 million in the discussed period (-17.1% y/y), of which PLN 0.8 million from sales revenues (a decrease of 22.6% y/y, despite the premiere of ACS” in Q2'22, however, we think that it may be related to the lack of payments for the production of the game "Stargate Timekeepers") vs. PLN 1.0m our expectations. This position was significantly boosted by the change in the state of products, which amounted to nearly PLN 0.9 million and turned out to be significantly higher than our forecasts. In the period under review, operating costs fell by 24.2% y/y and increased by 4.8% q/q to PLN 1.5m. The largest cost, as usual, is associated with game production - the costs of external services increased by 21.8% y/y and 46.7% q/q to PLN 1.2 million, and salaries decreased y/y by approx. 66.1% and 49,7% q/q to PLN 0.3m. Despite the company focused on maximizing the efficiency of the production team and optimizing production, it did not reduce the most important costs and they are significantly above our expectations, which we perceive negatively. At the EBITDA level, the company generated a profit of PLN 0.2 million (+237.8% y/y), EBIT amounted to PLN 0.2 million (+355.4% y/y). In Q3'22, the company generated a PLN 1.0m financial balance due to the profit from the disposal of financial assets (the effect of the agreement with PLW regarding the game "Gnomepunk"), which translated into a net profit of PLN 1.1m (vs +294 .1% y/y). In Q3'22, net cash flows from operating activities amounted to PLN -0.3 million (of which PLN -1.0 million related to investing activities). At the end of September 2022, the company had PLN 0.8m in cash, i.e. PLN 0.1m less q/q. The company continues to focus on maximizing the efficiency of the production team. Production stages and team management are being optimised. • In Q3'22, the company generated PLN 1.7 million in revenues (-17.1% y/y), of which PLN 0.8 million from sales (-22.4% y/y, -34.6% q/q), the second part, i.e. PLN 0.9m, was due to a change in the product state (-11.0% y/y vs. -PLN 0.1m in Q2'22). • In the period under review, operating expenses decreased by 24.2% y/y and increased q/q by 4.8% to PLN 1.5 million. The largest cost, as usual, is associated with game production - the costs of external services increased by 21.8% y/y and 46.7% q/q to PLN 1.2 million, and salaries decreased y/y by approx. 66.1% and 49, 7 q/q by PLN 0.3m. • At the EBITDA level, the company generated a profit of PLN 0.2 million (+237.8% y/y), EBIT amounted to PLN 0.2 million (+355.4% y/y). • In Q3'22, thanks to the profit on the sale of financial assets, the company generated a PLN 1.0 million financial balance, which translated into a net profit of PLN 1.1 million (vs +294.1% y/y). • Over the past quarter, "products and semi-finished products" decreased q/q by PLN 1.5 million to PLN 3.2 million, and "finished products" decreased by PLN 0.1 million to PLN 1.7 million. • In 3Q'22, net cash flows from operating activities amounted to PLN -0.3 million (of which PLN -1.0 million related to investing activities). At the end of September 2022, the company had PLN 0.8m in cash, i.e. PLN 0.1m less q/q. • At the end of September 2022, in CreativeForge Games, there were no people employed on the basis of a full-time employment contract, while CFG employed 11 people on the basis of civil law contracts and one person from the Management Board employed on the basis of an employment contract. vocation. In total, in the group, converted into full-time jobs, no persons were employed on the basis of an employment contract, 3 persons were employed on the basis of appointments and 37 persons on the basis of civil law contracts. • On September 5, 2022, Annex No. 2 was signed to the publishing agreement of July 1, 2021 regarding the game entitled Gnomepunk, under which PlayWay became the new publisher of this title. CFG decided to transfer the role of the publisher to the above-mentioned game due to the need to focus its resources on other productions that are more important from the company's point of view. PlayWay covered all the costs incurred by CFG so far. • Deadwater Sallon - the game was introduced to players at the beginning of last quarter. This title was received with good reviews, and the developer is already working on another production, for which CFG will also be the publisher. • Handyman Corporation - 3Q'22 is intensive work on the release of the game, which will have its premiere soon, i.e. on November 30, 2022. CFG is very pleased with the effects of the above-mentioned. • My Hotel - the game is already in full production. Bugs and performance-degrading elements are still being removed on an ongoing basis. Production is not at risk. Analyzes are also underway examining the direction in which the game's marketing should go, and an appropriate release window is being sought to maximize premiere profits. • In addition to the above-mentioned games, titles such as Blacksmith Simulator, Beer Factory, Colonize, Black Gold and House Flipper City, Builders of Greece are in development. Each of these games is already at an advanced stage of production and each of them has great potential for success. • The company continues to focus on maximizing the efficiency of the production team. Production stages and team management are being optimised. Appropriate procedures have been created to identify potential bugs related to adding new features and mechanics to games more quickly, while at the same time the bug reporting and identification system has been improved, and thus, faster removal of irregularities by the testing teams. CFG already sees that the applied improvements have a positive impact on development activities. Analyst: Krzysztof Tkocz krzysztof.tkocz@bdm.pl tel.: (+48) 516 086 705 GPW’s Analytical Coverage Support Programme 3.0  

This report is prepared for the Warsaw Stock Exchange SA within the framework of the Analytical Coverage Support Program 3.0. Sector: Health Care & biotechnology Market Cap: US$ 20.3 m Bloomberg: BMX PW Av. daily turnover: US$ 0.02 m Price: PLN 22.40 12M range: PLN 18.14-39.00 12M EFV: PLN 33.90 (→) Free float: 73% 3Q22 financial results preview In 3Q22 BioMaxima will not book any revenues from the significant contract for a delivery of SARS-CoV-2 diagnostic tests (worth PLN 94.8 million) which helped materially the Company’s results in 1H22. Besides, the 3rd quarter is the weakest seasonally due to a relatively low incidence of infectious diseases. We forecast 3Q22 revenues/ EBITDA/ EBIT/ NI to reach PLN 15.1/ 1.8/ 1.3/ 1.2 million which implies some growth of revenues and flat margins yoy. Delivery of analyzers In 3Q22 there was only one significant contract the Company informed about, namely a delivery of 2 analyzers for cell cultures monitoring worth c. PLN 2 million (this year BioMaxima received orders for 6 analyzers). According to the Company’s estimations, each analyzer will generate additionally c. PLN 0.5 million of annual revenues on a sale of consumables. Valuation As there are no changes to our financial forecasts for BioMaxima and the peer group multiples changed slightly, our 12M EFV at PLN 33.90 per share stays intact. Catalysts 1. The SARS-CoV-2 becomes endemic 2. Increase in demand for the Group’s products unrelated to the pandemic 3. Increasing patients awareness 4. Production capacity expansion 5. Successful launch of new products 6. Exports development 7. Need for diagnostics of unvaccinated Ukrainian migrants (SARS-CoV-2, measles, tuberculosis, poliomyelitis) 8. Acquisitions of companies compatible with the Company’s operations 9. A potential takeover target 10. Successful restructuring of the Romanian subsidiary 11. Moderate efficacy of vaccines and drugs for Covid-19 12. Presence in all the fast growing IVD segments 13. Increasing recognition of the Company in Poland and abroad 14. High efficacy of the Company’s tests in detection of Omicron 15. Spreading over time the changes in law (IVDR) Risk factors 1. Dwindling demand related to the economic deterioration 2. The SARS-CoV-2 pandemic development 3. Change in the health care systems priorities 4. Change in reimbursement policies and IVD funding 5. Change in cooperation terms with public bodies 6. Change in law (IVDR) (postponed for 3 years) 7. Entry of new solutions to the market 8. Growing competition 9. Intellectual property breach 10. Deterioration of products quality 11. Loss of key employees 12. Lack of qualified staff 13. Changes in the shareholding structure 14. FX rates Competitive advantages 1. European brand (vital for exports) 2. Attractive products prices as compared to global players 3. Well established market position in Poland 4. Important sales relationships outside Poland 5. Broad product offer (over 3,000 indexes) 6. Own production technologies 7. Focus on globally known and implemented technologies Analysts: Sylwia JaÅ›kiewicz, CFA MikoÅ‚aj StÄ™pieÅ„ GPW’s Analytical Coverage Support Programme 3.0  

The current account deficit was €1.6bn in September, clearly below the consensus of €3.1bn and our forecast, and down from the €3.3bn deficit recorded in August. The reading is positive for the zloty   On a 12-month basis, we estimate that the balance improved to around -3.7% of GDP in September after -3.8% of GDP in August. The merchandise trade deficit was €2.1bn in September after €2.6bn in August. In cumulative terms, there was a slight deterioration in the balance here to around -3.9% of GDP from -3.8% of GDP a month earlier. A positive services balance of €2.3bn did not offset a deficit in primary income of €3.0bn. The secondary trade balance was close to zero. Foreign trade turnover, measured in euro, is growing at a rate of more than 25% year-on-year, but this is mainly due to increases in transaction prices of exports and imports. The National Bank of Poland's communiqué states that real changes remain relatively small. Annual imports of goods (28.9% YoY) still exceeded that of exports (25.5%), but the difference was clearly smaller than in the first half of the year (almost 12pp on average). Polish companies are taking advantage of opportunities to increase foreign sales due to the weakening of the zloty and the easing of tensions in global supply chains. This is also evidenced by better-than-expected eurozone industrial production data published today for September (up 0.9% month-on-month against a consensus of 0.5%). The NBP communiqué states that in September, as in the previous two months, the increase in exports was mainly driven by higher sales in the automotive sector, thanks to improved availability of key components for production. Exports of both auto parts (especially batteries and engines) and new cars and vans increased. Further growth in supplies of petroleum products to Ukraine also continued. Exports, however, were dampened by stagnation in durable consumer goods production. Imports were supported by a further increase in fuel imports, including coal, and an increase in imports of auto parts and components. Today's data is positive for the zloty, as the current account deficit turned out to be clearly below expectations. However, the zloty's exchange rate has recently been influenced by global factors (weakening of the dollar) and - after last week's positive inflation surprise in the US - is benefiting from increased investor appetite for riskier assets. We expect a gradual widening of the current account deficit in the coming months, but the 5%GDP level at the end of the year seems more distant than a few weeks ago. Current account balance and its components, in € million Source: NBP data. Read this article on THINK Disclaimer This publication has been prepared by ING solely for information purposes irrespective of a particular user's means, financial situation or investment objectives. The information does not constitute investment recommendation, and nor is it investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument. Read more

HOLD FV PLN 2.94 5% upside Price as of 14 November 2022 PLN 2.79 SFD reported its 3Q22 results with EBIT of PLN 3.8m and net profit of PLN 2.9m (32% and 33% below our expectations, respectively, on slightly lower sales and higher cost of external services). Below please find key highlights: • Revenues came in at PLN 81.7m (+37% y/y, 1% below preliminary monthly data of PLN 82.9m). We estimate that e-commerce sales increase by 18% y/y to PLN 40m (comparable to previous quarters) and accounted for nearly half of total sales (vs. 57% share in 3Q21). • SFD had 28 own stores (+1 q/q) and 67 franchising stores (+2 q/q) as of end-3Q22. Additionally, the company has launched its own e-commerce platform in Romania at that time. • Gross profit reached PLN 29.4m (+43% y/y), implying gross margin of 35.9% (+1.5pp y/y, in line with our expectations). • EBIT came in at PLN 3.8m (+32% y/y, 32% below our expectations). Operating costs amounted to PLN 77.8m at that time (vs. our estimate PLN 77.3m). Cost of salaries increased by 26% y/y to PLN 7.7m (and was 5% below our expectations), while cost of external services increased by 49% y/y to PLN 14.2m (4% above our expectations). EBITDA came in at PLN 4.7m (+31% y/y), implying EBITDA margin of 5.7% (vs. 6.0% reported in 3Q21). • Net profit amounted to PLN 2.9m (+28% y/y, 33% below our expectations). Net financial costs amounted to PLN 0.5m. • The company had inventory of PLN 60.0m as of end-3Q22 (+79% y/y and +19% q/q). Operating cash flow was negative PLN 5.0m vs. positive PLN 7.8m in 3Q21. Net debt amounted to PLN 21.6m (+67% y/y). • The company expects to maintain growth rate of revenues in 4Q22 at comparable level to 9M22 (+32% y/y in 9M22 and +32% y/y growth reported already in October) and expand its activity on foreing markets based on own platforms. Opinion: Negative, as reported 3Q22 results were below our expectations on lower than preliminary sales and higher inflationary pressure on cost of external services, resulting in deterioration of EBITDA margin. Additionally, we point at solid increase in inventory (+19% q/q), resulting in negative operating cash flow and increase in net debt. On the other hand, we note that the company reported sound sales of PLN 28m in October (+32% y/y); however results may remain under pressure on cost inflation. Analyst: Marek SzymaÅ„ski marek.szymanski@ipopema.pl + 48 22 236 94 12 GPW’s Analytical Coverage Support Programme 3.0  

The StatOffice confirmed its estimate of October CPI at 17.9% year-on-year. We estimate that core inflation rose to 11.2% from 10.7% YoY in September. Our concerns about high core inflation are shared by economists at the National Bank of Poland. Despite this, the MPC has decided to essentially end the rate hike cycle We already knew from the flash CPI estimate that the significant increase in food and fuel prices was mainly responsible for the increase in inflation last month relative to September. On the other hand, there was slightly less pressure from energy carriers, as prices grew at a slightly slower rate (1.9% month-on-month) than in August and September, mainly due to the deceleration of coal price increases. This does not change the fact that energy carriers are now more than 40% more expensive than a year ago, despite the Anti-Inflation Shield (VAT and excise tax cuts) covering electricity, gas, thermal energy prices, and the freeze on regulated prices through 2022. CPI increase in October vs. September mainly stemmed from upswing in food prices % YoY, percentage points.   Source: GUS, ING.   We are now seeing the effects of the energy shock (more expensive fuel and energy carriers), but the most worrying phenomenon is the propagation of this shock in the economy and the increasing spillover of price increases due to secondary effects. Rapidly rising core inflation confirms that the impulse from this side is strong, and its impact on prices may be long-lasting. Based on the CPI structure data in October, we estimate that core inflation rose by about 1.1% MoM to 11.2% from 10.7% YoY in September.   Our concerns about the high core inflation and the spillover of price increases across the economy are shared by economists at the central bank. In its November projection, the National Bank of Poland said that high inflation expectations of companies and households translate into increased acceptance of price increases in many sectors of the economy, increasing its persistence. At the same time, the minutes of the October meeting noted that in light of the inflation expectations of companies, households, and professional forecasters, the level of real interest rates remains negative. Despite this, the MPC has decided to essentially end the cycle of interest rate hikes and has adopted a wait-and-see attitude. Policymakers prefer a gradual and slow decline in CPI to the target. In our view, such solutions mean that ultimately, the cost of fighting inflation will be higher. Disclaimer This publication has been prepared by ING solely for information purposes irrespective of a particular user's means, financial situation or investment objectives. The information does not constitute investment recommendation, and nor is it investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument. Read more

In line with our expectations, Poland’s economy expanded by 3.5% year-on-year in 3Q22 (consensus: 3.0% YoY) as activity bounced back by 0.9% quarter-on-quarter (seasonally adjusted) after falling by 2.3% QoQ in 2Q22. As such, Poland has avoided a technical recession but brace for some difficult months ahead Technical recession averted so far According to the flash estimate, GDP growth slowed to 3.5% YoY in 3Q22 from 5.8% YoY in 2Q22. The lower annual growth rate was a consequence of the high reference base from last year and the turnaround in the inventory cycle, which is no longer adding to GDP as it did in the first half of 2022. Seasonally-adjusted data shows that the outbreak of the war in Ukraine dampened economic activity in 2Q22 (GDP down 2.3% QoQ). However, 3Q22 saw a solid rebound (0.9% QoQ) and the economy avoided a technical recession. Solid rebound in 3Q22 after sharp decline in 2Q22 GDP, QoQ (SA) Source: GUS Industry and exports holding up well We do not yet know the composition of economic growth (to be released on 30 November) but the high-frequency data suggests that industry continued to perform well. This is a very bright spot for the Polish economy and the main point of outperformance vs regional peers since the beginning of the pandemic. In 3Q22, manufacturing was supported by improvements in supply chains (including the availability of semiconductors), which boosted production in Poland and among our trading partners. The foreign trade balance most likely contributed positively to annual GDP growth, while consumption and investment had a markedly smaller positive impact as they grew much slower than in the previous two quarters. We estimate that growth in 2022 as a whole will be closer to 5% than 4% (around 4.8%), compared to 6.8% growth in 2021 (after revision). Gloomy outlook for upcoming quarters The prospects for the future look grim due to deteriorating foreign markets (a possible recession in Germany) and tighter financial conditions both in Poland and abroad (rising interest rates). In addition, high inflation bites into households' real disposable income as wage growth fails to keep pace with price increases. This is accompanied by unfavourable consumer sentiment, which translates into reduced spending on durable goods. Weakening foreign demand and rising financing costs will also have a negative impact on investment activity. An additional source of uncertainly is the stalemate between Warsaw and Brussels on the Recovery Fund, which may hamper public investment. MPC refrains from further hikes amid fears of a sharp economic slowdown The high reference base from 1H22 means that we may witness a negative annual GDP reading in early 2023. In 2023, we forecast economic growth at 1.5% but the risks are clearly tilted to the downside. The negative economic outlook for next year is one of the main reasons why the MPC has decided to pause, and de facto end the interest rate hike cycle. The MPC is choosing this strategy despite the prolonged period of elevated inflation and the risk of it becoming entrenched at high levels in the coming quarters.    Disclaimer This publication has been prepared by ING solely for information purposes irrespective of a particular user's means, financial situation or investment objectives. The information does not constitute investment recommendation, and nor is it investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument. Read more

Summary:  Equity markets were in for a wild ride yesterday as the melt-up continued in early trading, only to violently reverse on an apparently errant missile killing two in a Polish town bordering Ukraine. The price action has since stabilized, with risk sentiment still strong in Asia on hopes for incoming stimulus from China. Important incoming US data up today includes the October Retail Sales data.   What is our trading focus? Nasdaq 100 (USNAS100.I) and S&P 500 (US500.I) Big rejection in S&P 500 futures yesterday with the index futures coming off 1.3% from the intraday highs to close below the 4,000 level. Yesterday’s upside driver was a lower than estimated US PPI print and then later the downside move was triggered by news that a rumoured Russian missile had hit Polish territory killing two persons. This morning S&P 500 futures are attempting to push above the 4,000 level again, but we want to emphasize cautiousness here as geopolitical risks remain high and markets that seem fragile and trading on thin liquidity across many markets. Today’s key earnings event in the US is Nvidia reporting after the market close. Hong Kong’s Hang Seng (HSIX2) and China’s CSI300 (03188:xhkg) Hong Kong and China stocks consolidated and took a pause on the strong rally since last Friday, with Hang Seng Index losing 1% and CSI 300 Index sliding 0.7%. Chinese property names retraced. Leading private enterprise developer Country Garden (02007:xhkg) plunged 14% following the placement of new shares. Chinese EV makers underperformed, with leading names dropping by 2% to 6%. New Covid cases in mainland China went above 20,000 for the first time since April. FX: USD volatile on risk sentiment swings yesterday The US dollar was pummelled yesterday as the risk sentiment melt-up initially continued yesterday in early trading in the US before a missile hitting a Polish town (more below) sharply reversed sentiment. The situation has since stabilized, but the reversal of the spike put a considerable dent in tactical USD downside momentum. GBPUSD traded the most wildly ahead of today’s CPI and tomorrow’s Autumn Budget Statement, squeezing from 1.1750 early yesterday to all the way north of 1.2000 briefly before trading back to 1.1800 and closing the day south of 1.1900. The USD volatility was less pronounced elsewhere, particularly against Asian currencies. The incoming US data and risk sentiment swings around that data (or as we saw yesterday from other sources) will likely drive the next USD move. Crude oil (CLZ2 & LCOF3) Crude oil ended lower on Tuesday following a volatile trading session that briefly saw prices spike on news a Polish border town had been hit by a Russian-made but probably Ukrainian fired missile (see below). Overall, the crude oil market remains rangebound with demand worries currently weighing a touch harder than supply concerns driven by OPEC+ production cuts and from next month, EU sanctions against Russian oil, a development that according to the IEA may drive a 15% reduction in Russian output early next year. In China the number of virus cases have surged to near 20,000 thereby testing local authorities' appetite for maintaining the covid-zero restrictions. Focus on EIA’s weekly stock report after the API reported a 5.8m barrel drop in crude and smaller increases in fuel stocks. Gold (XAUUSD) Gold touched resistance at $1788 on Tuesday as the dollar hit a fresh cycle low after US PPI showed the smallest increase since mid-2021. Later in the day, a brief safe haven bid quickly fizzled out after Biden said the rocket that hit Poland was unlikely to have been fired from Russia. Demand from ETF investors – net sellers for months – remain elusive with total holdings falling to a fresh 31-month low and with that in mind expect continued consolidation and potentially a recheck of support at $1735. Resistance at $1788, the 38.2% retracement of the 2022 correction and $1804, the 200-day moving average. US treasuries (TLT, IEF) US treasuries punched to new local lows yesterday, with the 10-year treasury benchmark dipping below 3.80% after a likely errant missile hit a Polish town bordering Ukraine and on slightly softer than expected PPI data. But yields have rebounded today and are back to slightly below the close from last Thursday after that day’s surprisingly soft October US CPI release. Key levels are 3.50% to the downside, the pivot high around the June FOMC meeting when the Fed hiked 75 basis points for the first time for this cycle, while 4.00-4.10% is perhaps the upside swing area. What is going on? UK October CPI was out at 11.1% YoY, a new cycle high This was vs. 10.7% expected and 10.1% in September. Core CPI matched the cycle high from September at 6.5% YoY, versus 6.4% expected. Sterling trades a bit weaker after the initial reaction to the data point, as higher inflation will likely require more fiscal and monetary tightening that will make the coming UK recession deeper, a sterling negative. Missile comes down in Poland town bordering Ukraine, killing two The source of the missiles is a mystery, with US President Biden saying after an emergency meeting with other leaders that the missile was “unlikely” to have been launched in Russia, while Poland claimed that the missile was “Russian made” and convened an emergency security meeting yesterday afternoon. Markets reacted strongly to the development initially, as Poland is a member of NATO. Russian officials said that claims of an intentional missile firing are a “deliberate provocation with the goal of escalating the situation.” Donald Trump declares third bid for the White House in 2024 Trump was widely seen as the chief liability in a very poor Republican showing in the mid-term elections last week, with candidates strongly denying the results of the 2020 election losing badly in almost every case. The Democrats are set to gain a slightly larger majority in the Senate and the Republicans will only eke out the narrowest of majorities in the House of Representatives. As Trump still enjoys an unmatched “base” of personal popularity, it will be difficult for any Republican profile to rise up to challenge Trump, just as it is likely impossible that Trump can win independent voters and those that are not his base. It’s ideal ground for the formation of a new party. Apple set to shift to US-based chip production Apple shares rose over 2.1%, moving to their highest level since early November after the Apple CEO unveiled the company will be using US-made Chips from Arizona in 2024, as part of reducing its reliance on Asian chip manufacturers and shifting to producing its own. CEO Tim Cook also told staff Apple plans to expand its chip supply into European markets. The moves underscore the necessity for technology companies to reshoring semiconductors from Asia to reduce supply chain risks. These types of moves will add to inflationary pressures in the future. US earnings recap: Walmart, Home Depot, and Sea Ltd Yesterday’s earnings releases from these three consumer retailing companies were all better than expected with Walmart lifting guidance and beating on revenue growth. Home Depot had the most downbeat reaction from investors as the home improvement retailer’s revenue growth beat was only due to inflation and not higher volume. The biggest positive reaction was in Sea Ltd shares as the Southeast Asia gaming and e-commerce company posted a narrower operating loss and beat on revenue growth; however, the company took down guidance in its gaming division. Read more details in our earnings review note from yesterday. US producer prices cool more than expected, clocking smallest gain in a year Investors got another piece of evidence inflationary pressures are easing, with US producer price growth rising 8% Y/Y in October (below the 8.3% Bloomberg consensus expected and down from the 8.5% Y/Y in September). Excluding volatile food, energy, core PPI rose 6.7% Y/Y in October- when the market prices to rise 7.2%. After peaking in March at 11.7%, producer price growth has moderated from improving supply chains, softer demand, and weakening commodities prices. The Fed has therefore garnered more catalysts to slow its pace of hikes, which also provides further support to the equity market and bond markets. However, the next important data sets the Fed will be watching are due early next month; US jobs, and November CPI, which are ahead of the Fed’s next meeting (in the third week of December). Arabica coffee (KCc1) dropped 4.4% on Tuesday … thereby extending a rout that has seen the price retrace almost 61.8% of the 2019 to 2022 surge to a multi-year high above $2.50 per pound. Fast forward nine months and the global economic slowdown has led to a reduction in away-from-home consumption at a time where the production outlook from South America has improved. Stocks at ICE monitored warehouses have risen for the past seven days from a 20-year low and could more than double soon with more than half a million bags awaiting assessment. A new LNG exporter is born Mozambique is now officially a new LNG exporter after the first shipment on Monday left the Coral South floating liquefaction unit, which has a 4.4 bcm annual export capacity. This is positive news for Europe who is desperately looking for new energy suppliers since the Ukraine war has started. It was a long-decade process for Mozambique to get its first LNG supply out of the country. Based on official estimates, this is one of the largest LNG offshore fields in Africa. What are we watching next? Fed hawk Christopher Waller to speak on Economic Outlook tonight Waller is an FOMC voter as he sits on the Board of Governors and is widely considered one of the most hawkish Fed members and may unleash a blast of hawkish rhetoric, although it seems the market is more likely to listen only to Fed Chair Powell himself and more importantly, at incoming data. US October Retail Sales data today An interesting data release is up today, the US Retail Sales for October. This data series suggests rather sluggish US growth and is reported in nominal month-on-month terms, not real- or inflation-adjusted terms. The last three months of the headline data have averaged almost exactly 0.0%, while the “ex Food and Energy” series has averaged +0.36%. Today’s headline number is expected at +1.0% MoM and +0.2% for core sales. Earnings to watch Today’s US earnings focus is Nvidia which is expected to deliver a 18% decline in revenue y/y to $5.8bn and EPS of $0.70 down 31% y/y as the market for GPUs is cooling down as crypto mining is becoming less profitable from lower prices on cryptocurrencies. Tencent is expected to report earnings today following a new round of layoffs announced yesterday as revenue growth is expected to be down 1% y/y in Q3. Today: Siemens Energy, Tencent, Experian, SSE, Nibe Industrier, Nvidia, Cisco, Lowe’s, TJX, Target Thursday: Siemens, Alibaba, Applied Materials, Palo Alto Networks, NetEase Friday: JD.com Economic calendar highlights for today (times GMT) 0900 – ECB Financial Stability Review 1300 – Poland Oct. CPI 1315 – Canada Oct. Housing Starts 1330 – US Oct. Retail Sales 1330 – Canada Oct. CPI 1330 – US Oct. Import & Export Prices 1415 – US Oct. Industrial Production 1450 – US Fed’s Williams (Voter) to speak 1500 – US Nov. NAHB Housing Market Index 1500 – US Fed’s Barr (Voter) to testify before House Panel 1530 – EIA's Weekly Crude and Fuel Stock Report 1935 – US Fed’s Waller (Voter) to speak 0030 – Australia Oct. Employment Change / Unemployment Rate Follow SaxoStrats on the daily Saxo Markets Call on your favorite podcast app: Apple  Spotify PodBean Sticher Source:https://www.home.saxo/content/articles/macro/market-quick-take-nov-16-2022-16112022

US stocks extended rally yesterday, as the unexpected easing in producer prices beefed up the optimism that the Federal Reserve (Fed) would soften the monetary tightening and the better-than-expected New York Empire State Manufacturing index hinted that the US economy is holding up well. The geopolitical fears News that Russian missiles fell to Poland somehow killed a part of that falling-inflation, resilient growth optimism. But escalation of the tensions has been avoided so far, with US President Joe Biden saying that the missile was ‘unlikely’ fired from Russia. On the index level, the geopolitical fears remained short-lived, and the S&P500 finally rebounded to close the session a touch below the 4000 psychological mark. Crude Oil On the individual level, TSM jumped on Warren Buffet and Apple news, as Walmart gained on earnings, revenue beat and $20-billion buyback. In energy, US crude gained on the geopolitical concerns after the Poland attack, and on a more-than-5-million-barrel decline in US oil inventories last week. In the FX, the US dollar eased after the mixture of soft PPI and solid Empire Manufacturing revived the dovish Fed expectations. The EURUSD traded briefly above its 200-DMA, and Cable hit the 1.20 for the first time since this summer. UK  On the data front, UK inflation data showed that inflation in the UK hit 11.1% in October vs 10.7% penciled in by analysts, revived the hawkish Bank of England (BoE) expectations but not GBP-appetite. Watch the full episode to find out more! 0:00 Intro 0:24 US stocks extend rally on encouraging data 2:17 Poland hit by missiles, but Biden contains escalation 3:37 Market update 4:13 TSM, Walmart gain 5:51 Latest on US midterms 6:28 Oil recovers 6:50 FX: USD down, UK CPI exceeds 11.1%! 8:49 China home prices fall 9:21 What else you can watch today? Ipek Ozkardeskaya Ipek Ozkardeskaya has begun her financial career in 2010 in the structured products desk of the Swiss Banque Cantonale Vaudoise. She worked at HSBC Private Bank in Geneva in relation to high and ultra-high net worth clients. In 2012, she started as FX Strategist at Swissquote Bank. She worked as a Senior Market Analyst in London Capital Group in London and in Shanghai. She returned to Swissquote Bank as Senior Analyst in 2020. #Poland #attack #crude #oil #Fed #US #inflation #Walmart #earnings #TSM #Apple #USD #EUR #GBP #UK #Bbudget #China #property #rally #SPX #Dow #Nasdaq #investing #trading #equities #stocks #cryptocurrencies #FX #bonds #markets #news #Swissquote #MarketTalk #marketanalysis #marketcommentary ___ Learn the fundamentals of trading at your own pace with Swissquote's Education Center. Discover our online courses, webinars and eBooks: https://swq.ch/wr ___ Discover our brand and philosophy: https://swq.ch/wq Learn more about our employees: https://swq.ch/d5 ___ Let's stay connected: LinkedIn: https://swq.ch/cH

Summary:  Today we discuss US markets exploding higher yesterday after a soft PPI release, only to have an apparently Russian missile hitting Poland on the Ukrainian border roiling sentiment. The USD behavior yesterday was inverse to the swings in equities, pointing to more correlation with risk sentiment swings than US yields as we look ahead at today's US Retail Sales data. Crude oil, tightness in the commodity markets, the huge announcement from Apple on plans to purchase US-made chips and much more on today's pod, which features Peter Garnry on equities and John J. Hardy hosting an on FX. Listen to today’s podcast - slides are available via the link. Follow Saxo Market Call on your favorite podcast app: Apple  Spotify PodBean Sticher If you are not able to find the podcast on your favourite podcast app when searching for Saxo Market Call, please drop us an email at marketcall@saxobank.com and we'll look into it.   Questions and comments, please! We invite you to send any questions and comments you might have for the podcast team. Whether feedback on the show's content, questions about specific topics, or requests for more focus on a given market area in an upcoming podcast, please get in touch at marketcall@saxobank.com. Source: https://www.home.saxo/content/articles/podcast/podcast-nov-16-2022-16112022

Better-than-expected US retail sales didn’t please investors yesterday, as it fueled, again, inflation expectations. Higher inflation expectations fueled the hawkish Federal Reserve (Fed) expectations. And hawkish Fed expectations fueled recession worries – without however Fed being there to disperse cheap money. Stock Market US indices gave back gains yesterday. The S&P500 slid 0.83% and Nasdaq fell 1.54%. Earnings Sour earnings from Target, which highlighted that nice-to-have stuff like clothes and electronics didn’t sell well in the latest quarter, because of rising prices, didn’t help lift the investor mood. US Elsewhere, JP Morgan economists said they expect the US to enter a mild recession next year because of the rising rates and the tightening monetary conditions. Global economy Prospect of slower global economy, along with the de-escalation of geopolitical tensions on news that the rockets that hit Poland this week were from the Ukrainian defense, and probably landed in Poland by accident, pulled oil prices lower yesterday. UK In the UK, the government will announce its much-expected budget today. It won’t be pretty for people, but it should be ok for investors. Crypto In cryptocurrencies, the knock-on effects of FTX collapse continue to be felt but Bitcoin price remains resilient near $16K. Watch the full episode to find out more! 0:00 Intro 0:31 Strong US retail sales dampen mood 1:22 Target disappointed 3:25 JP hinted at mild US recession, oil fell 5:44 UK Budget Day! 7:32 Crypto contagion continues, but Bitcoin resists 8:59 Gold hits long-term trend top Ipek Ozkardeskaya Ipek Ozkardeskaya has begun her financial career in 2010 in the structured products desk of the Swiss Banque Cantonale Vaudoise. She worked at HSBC Private Bank in Geneva in relation to high and ultra-high net worth clients. In 2012, she started as FX Strategist at Swissquote Bank. She worked as a Senior Market Analyst in London Capital Group in London and in Shanghai. She returned to Swissquote Bank as Senior Analyst in 2020. #UK #Budget #US #retail #sales #Walmart #Target #earnings #USD #GBP #XAU #Bitcoin #FTX #BlockFi #Genesis #Gemini #contagion #selloff #crude #oil #recession #SPX #Dow #Nasdaq #investing #trading #equities #stocks #cryptocurrencies #FX #bonds #markets #news #Swissquote #MarketTalk #marketanalysis #marketcommentary ___ Learn the fundamentals of trading at your own pace with Swissquote's Education Center. Discover our online courses, webinars and eBooks: https://swq.ch/wr ___ Discover our brand and philosophy: https://swq.ch/wq Learn more about our employees: https://swq.ch/d5 ___ Let's stay connected: LinkedIn: https://swq.ch/cH

This report is prepared for the Warsaw Stock Exchange SA within the framework of the Analytical Coverage Support Program 3.0. Event: 3Q22 results revealed; Adjusted EBITDA close to the preliminary figures published earlier. The Company revealed its quarterly consolidated 3Q22 results on Wednesday late after the session. Consolidated figures. The Company’s reported EBITDA amounted to PLN 62.0 million. This figure is impacted by one-time effects at a sum of PLN -60.9 million in addition to other operating income at a value of PLN -1.3 million. The mentioned one-time effects include (i) PLN -64.4 million of timing effects in the ON+Bio segment and (ii) PLN 3.5 million of cost transfers in the natural gas segment. Ultimately, the Company’s adjusted EBITDA (as calculated by us) after excluding these items amounted to PLN 124.2 million vs. PLN 95.0 million expected by us initially (and vs. PLN 124 million indicated in the preliminary figures previously and PLN 120.7 million of final adjusted EBITDA calculated by management for the quarter). The difference in our adjusted EBITDA and the management adjusted EBITDA lies in other operating income and different calculation of depreciation. The Company’s reported net income amounted to PLN 41.1 million, while the adjusted net income, as calculated by us amounted to PLN 92.0 million. Results of segment. The Company’s ON/bio segment delivered adjusted EBITDA of PLN 122.3 million vs. PLN 90.0 million expected by us initially. The Company’s LPG segment recorded adjusted EBITDA of PLN 16.4 million vs. PLN 15.0 million expected by us. The natural gas segment’s adjusted EBITDA amounted to PLN 1.5 million vs. PLN 0.0 million expected by us. The electric energy segment delivered an adjusted EBITDA of PLN 5.4 million vs. PLN -3.0 million expected by us. The results of the photovoltaic segment with adjusted EBITDA at PLN -1.7 million (vs. PLN -1.0 million expected by us). The Company mentioned that the quarterly results had been particularly impacted by the war in Ukraine, and by the resultant instability of energy markets caused by introduction of sanctions on Belarus and Russia. The Company also mentions very high sale volumes generated on diesel, petrol and LPG products and logistical constraints that limited the utilization of market opportunities. Furthermore, The Company generated PLN 23 million on the sale of obligatory reserves (vs. PLN 25 million expected by us and vs. PLN 30 million declared by the Company to be generated in 2H22). Cash flow. The Company’s 3Q22 operating cash flow amounted to PLN 49 million vs. PLN -81 million recognised a year ago. The cumulative operating cash flow for 1-3Q22 amounts to as much as PLN 182 million (vs. PLN -146 million delivered a year ago). The strong drop in inventories has been confirmed in the quarter (a drop in inventories of PLN -153 million this year). The operating cash flow is negatively affected by a significant increase in trade receivables (of PLN -449 million recognised this year) – a figure which is likely to partly reverse in the next quarters, in our view. Net debt. The Company’s net debt at the end of the quarter amounted to PLN 228 million vs. PLN 337 million recognised a year ago. We were hoping for a greater decrease in net debt in the quarter. There are chances for a drop in trade receivables and a significant drop in net debt in the next quarters. Analyst: Łukasz Prokopniuk GPW’s Analytical Coverage Support Programme 3.0  

This report is prepared for the Warsaw Stock Exchange SA within the framework of the Analytical Coverage Support Program 3.0 Synektik BUY FV PLN 39.9 from PLN 45.0 31% upside Price as of 16 November 2022 PLN 30.55 In this report, we update our forecasts and valuation of Synektik. Based on new forecasts of financial results and the current risk-free rate, we set our Fair Value at PLN 39.9/share, which implies 31% upside potential to the current share price. We maintain our Buy recommendation. Synektik is one of our top-picks in the healthcare & biotech sector, the company is entering a period of high financial results, in 2022/23 we assume nearly PLN 40m of adjusted EBITDA, and a significant improvement in cash generation thanks to higher profits and lower working capital requirements. Synektik is currently valued at 8.5x EV/EBITDA for 2022/23E, which in our opinion is an undemanding level for a growing business with an increasing share of recurring revenues and development prospects for surgical robots, especially on the Polish market Accumulation of contracts for da Vinci robots. Over the past few months, Synektik has issued a number of announcements concerning the submission of offers and signing of contracts for the supply of da Vinci surgical robots in all three of its markets. According to our calculations, in 2H22 the company will deliver 12 da Vinci devices, including seven in Poland and five in Czechia and Slovakia. Four deliveries should be booked in 4Q21/22 while the remaining part (eight devices) in 1Q22/23. The high demand on the Polish market results from the current low penetration of surgical robots on the domestic market, but also from the start of reimbursement of procedures using robots by the National Health Fund from April 2022. On the other hand, on the Czech market, where the utilization of average device is much higher than in Poland and close to its maximum level, the growth in the number of treatments results in further purchases from new as well as existing users. Results momentum in 4Q21/22 and 1Q22/23. We expect that in 4Q21/22 Synektik will report PLN 71.8m in revenues, +38% y/y. Reported EBITDA should amount to PLN 9.0m (+36% y/y), and adjusted EBITDA to PLN 10.2m (+39% y/y). We estimate that reported net profit will amount to PLN 5.0m, an increase of 57% y/y. In 1Q22/23, we assume the sale of eight da Vinci devices and the completion of a large contract for delivery of a ZAP-X system to a hospital in Olsztyn, which, according to our preliminary estimates, should translate into over PLN 120m in revenues and approximately PLN 15m in adjusted EBITDA. For the entire FY22/23, we estimate PLN 302m in revenue, PLN 39.5m in adjusted EBITDA and PLN 15.0m in net profit. Valuation. We value Synektik using a 10-year DCF model. Taking into account the new forecasts and the current risk-free rate, we are lowering the company's Fair Value to PLN 39.9/share from PLN 45.0/share. The new valuation implies 31% upside potential relative to the current share price, and therefore we maintain our Buy recommendation. Analyst: Åukasz Kosiarski lukasz.kosiarski@ipopema.pl + 48 882 108 382 GPW’s Analytical Coverage Support Programme 3.0  

This report was prepared for the Warsaw Stock Exchange SA within the framework of the Analytical Coverage Support Program 3.0. Key facts from published results: â–ª In Q3 22, Unibep recorded a higher than we expected increase in sales revenue, which amounted to PLN 576 million, an increase of 63% y/y, a decrease of 4.1% q/q. â–ª At the key level of the gross margin, there was a decrease compared to previous quarters (6.3% vs. 9.2% in Q2 22 and 8.2% in Q1 22. â–ª The Group generated an operating profit of PLN 17 million compared to PLN 11.1 million a year ago (increase by 52.6% y/y), and almost half as compared to Q2 22 (decrease by 47.5% q/q). â–ª On the net profit level, the result of PLN 11.2 million should be considered weak at this level of revenue (decrease by 7.1% y/y, decrease by 52.2% q/q). We consider the results for Q3 22 to be a bit disappointing. In our opinion, the rich portfolio of contracts (PLN 3.4 billion) does not pose a risk to the achievement of forecasts in terms of revenue, but the threats to maintaining profitability (including inflation, prices and availability of materials), which we pointed out, have started to materialize. We hope that the recently concluded contracts (including in the infrastructure and energy and industrial construction segments) will contribute to rebuilding margins in the coming quarters, so we leave the valuation unchanged at PLN 10. Expected impact: We consider the results for Q3 22 to be a bit disappointing, although looking at the three quarters of 2022 in total, they should still be considered good compared to other companies from the construction sector and taking into account a number of problems faced by the industry this year - significant higher costs of materials, energy, transport, pressure to increase wages and lower availability of employees. In our opinion, the segments of cubature construction and infrastructure, which implement large and most extended contracts, are under the greatest pressure of these factors. In Q3 22, the profitability of the building construction sector dropped the most (to 2.3% from 4.2% in Q2 22), which accounted for more than half of the Group's revenues. In second place in Q3 22 in the structure of revenues was the infrastructure segment (share of 21.1%), which in turn recorded an increase in profitability from 1.9% to 5.6%. The good result of the segment was influenced by the completion of the construction of the third and fourth sections of the dam on the border with Belarus and the completion of the construction of the S61 road on the section between Szczuczyn and EÅ‚k. In the modular construction segment, persistent difficulties in the form of high prices of raw materials and materials as well as transport costs, including freight, negatively affecting the profitability of contracts on the Norwegian market, resulted in another quarter of loss (PLN 6.2 million in Q3 22 against PLN 77 PLN 6 million of revenue). We see an opportunity for this area in extending the offer to the hotel and development industries, as well as expansion to the German market. The biggest positive surprise for us in Q3 is the result of the energy and industrial construction segment, which achieved PLN 8.9 million in profit with PLN 75 million in revenue. We forecasted that only the disbursement of funds from the National Reconstruction Plan (KPO) would contribute to the dynamic development of this area. Although the prospect of obtaining EU funds from the reconstruction fund has recently receded, Unibep has acquired contracts with a total net value of approx. PLN 710 million in this area, which allows us to look with optimism at the development of this segment and expect further positive contribution to the Group's result in subsequent quarters. As in previous quarters, despite a small share in the Group's revenue, the development segment had the greatest impact on the result, which generated PLN 22.8 million of profit with PLN 68.8 million of revenue. In Q3 22, Unidevelopment handed over 116 premises, of which 107 as part of joint development projects with external entities. By the end of the year, the Company plans to hand over approx. 160 premises, e.g. in the investments Latte Residential in Warsaw and Idea Leo in Radom, which may have a significant positive impact on the result of the fourth quarter. Sales in Q3 22 amounted to 110 units, of which 78 as part of joint development projects. This gives a total of 318 units sold in 2022 (a decrease of 59.6% y/y) and raises concerns about the decrease in the segment's positive contribution to the Group's results in the coming years. In our opinion, the situation on the development market will have a significant impact on the Unibep stock performance. Analysts: Artur Wizner GPW’s Analytical Coverage Support Programme 3.0  

The report was prepared by Dom Maklerski BDM at the request of the WSE as part of the Exchange's Analytical Coverage Support Programme Last recommendation BDM: BUY with target price 22,0 PLN/share (2022/10/05) LINK • Revenues in Q3'22 amounted to PLN 569.0m (+15% y/y), 7% above our expectations. A record quarter in the company's history. • Weak revenues growth in Poland (+1%), still good in other EU markets (+11% y/y). Dynamics slowed in North and South America, but still high (+27% y/y). The biggest surprise was the increase in sales in the Eastern Europe and Asia segment (+35%), despite strong exposure to Russia. • Subsidiaries based in Eastern Europe (Ukraine and Vostok Moskwa) realised revenues of PLN 111.2m in Q3'22 (+26% y/y), and in Asia (Kazakhstan, Turkey, China) PLN 83.5m (+48% y/y). • As at the balance sheet date, inventories located in Eastern Europe was PLN 35m (PLN 49m after Q2'22) and receivables from customers of non-related companies from the region was PLN 30m (PLN 37m after Q2'22). • Gross margin (32.5%) at a markedly improved level q/q and y/y. After a weak Q2'22, we assumed an improvement to 30%. The ratio of SG&A costs to revenue fell y/y and q/q. • The impact of the other operating activities not significant in Q3'22 (PLN +0.7m). • EBITDA amounted to PLN 79.4m in Q3'22 (vs. PLN 47.8m a year ago). A much better result than we had anticipated (we expected PLN 49.0m). The reasons for the surprise were mainly the Eastern Europe and Asia segment, which had EBITDA of PLN 46m (comparable to the EU segment), and the low level of unallocated result. • EBITDA by segment: EU (PLN 49.8m vs. PLN 61.4m a year ago), Eastern Europe and Asia (PLN 46.0m vs. PLN 14.9m), North and South America (PLN 4.0m vs. PLN 2.7m). Nonallocated results PLN -20.4m (PLN -31.2m in Q3'21). • EBITDA after Q1-3'22 is already at PLN 155m (Selena FM had PLN 166m EBITDA in the entire record 2020). Seasonally, Q4 is usually weaker (the company averaged PLN 18m in the last 3 years). • Financial activities with a negative impact of PLN -8.0m (impact of interest and other expenses, neutral impact of foreign exchange differences, not assumed in our forecasts). • Q3'22 net profit at PLN 46.4m (better y/y and above our assumptions). • Cash flows from operating activities amounted to PLN +100.4m in Q3'22. At the end of the period, the company had net debt of PLN 162m (PLN 108m after adjusting for loans extended to related parties). • CAPEX in Q1-3'22: PLN 26m. BDM Comment: Positive. The Company's Q3'22 results are clearly above our expectations due to a very strong result (both revenue and EBITDA) in the Eastern Europe and Asia segment. The company mainly increased revenues from Asian companies (+48% y/y), but Eastern Europe also posted a 28% y/y increase. The positive trend is maintained by the North and South America area. Good sales in Q3'22 in the rest of the EU, while the Polish market looks weak with only a 1% increase in sales, which, with significant inflation in the construction chemicals category, implies a clear decline in volumes. Also of note is the y/y decline in EBITDA profitability in the EU segment. Net debt (PLN 162m, of which PLN 54m finances loans to entities related to the main shareholder) clearly fell thanks to strong operating cash flow. For the last four quarters' results, EV/EBITDA=3.7x, P/E=3.8x. Analyst: Krzysztof Pado krzysztof.pado@bdm.pl tel.: (+48) 512 338 250 GPW’s Analytical Coverage Support Programme 3.0  

The report was prepared by Dom Maklerski BDM at the request of the WSE as part of the Exchange's Analytical Coverage Support Programme Management income in 3Q22 was PLN 6 million (-24% y/y), investment earnings of PLN 68.5 million, EBIT of PLN 65.7 million and net income of PLN 60.4 million. After three quarters, net income is PLN 59.4 million and book value per share is PLN 34.9. In 3Q22, the main impact on the operating result was the upward revaluation of investment certificates of MCI.EuroVentures FIZ by PLN 68 million. In the same period, the unrealized gain on the investment certificates of MCI.TechVentures FIZ amounted to PLN 8.5 million, and the realized loss on redemption amounted to PLN 7.6 million (per balance, the impact on the result of MCI.TechVentures FIZ was about +0.9 million PLN). Net debt, according to our estimates, at the end of 3Q22 was around PLN 199 million (PLN 236 million after adjusting for the dividend liability), compared to PLN 162 million at the end of 2Q22. P&L In 3Q22, investment gains amounted to PLN 68.5 million, EBIT +PLN 65.7 million, net income +PLN 60.4 million. The 3Q22 result consisted of a positive result on CI MCI.EuroVentures FIZ (+68 million PLN). In the same period, the unrealized gain on the investment certificates of MCI.TechVentures FIZ amounted to PLN 8.5 million, and the realized loss on redemptions amounted to PLN 7.6 million (on balance, the impact on the result of MCI Capital's MCI.TechVentures FIZ subfund in 3Q22 was about +0.9 million PLN). Management income in 3Q22 amounted to PLN 6 million (vs. PLN 3.3 million in 2Q22). In total, after three quarters of 2022, unrealized gains on the valuation of MCI.EV FIZ amounted to +199 million PLN, and unrealized losses on the valuation of MCI.TV FIZ amounted to 120 million PLN. On the valuation of Internet Ventures FIZ investment certificates, the company reported PLN 6.6 million in unrealized losses and PLN 10 million in realized gains during the period. Gett’s restructuring The company said in the report that in September 2022 the restructuring of the Gett Group took place, under which MCI Capital ASI S.A. entered into the rights and obligations arising from the share instruments of Simbio Holdings Limited and DooBoo Holding Limited. The total valuation of share instruments and the company's liabilities to the MCI.TechVentures 1.0. sub-fund on this account as of September 30, 2022 amounted to PLN 48.4 million. Due to the agreements concluded between the company and the MCI.TechVentures 1.0. subfund, resulting in the return of benefits from the equity instruments to the subfund, the company netted the assets with the corresponding liabilities - the value of the assets less the corresponding liabilities amounted to PLN 0 and was therefore not shown in the balance sheet as of September 30, 2022. In addition, MCI Capital subscribed for 1 million new shares in Simbio Holding Limited for a total of $1 million in a new round of financing (ca. PLN 5 million) - under an agreement between MCI Capital and the MCI.TechVentures 1.0 sub-fund. , the company undertook to return to the MCI.TechVentures 1.0. subfund any proceeds from those shares less the cost of acquiring them, i.e. about PLN 5 million plus WIBOR 3M plus a margin per annum, subject to the company obtaining a surplus from those shares over that value. We estimate that these transactions have a neutral impact on MCI Capital's results. Last valuation: 29.6 PLN/share as of 07.10.2022. Price on the day of issue 16.1 PLN Analys: Krzysztof Radojewski Deputy Head of Research and Advisory Department krzysztof.radojewski@noblesecurities.pl GPW’s Analytical Coverage Support Programme 3.0  

We do not expect any movement from the National Bank of Hungary at next week's meeting, as the latest data were in line with expectations. The labour market is expected to be a mixed picture, with the unemployment rate moving up and wage growth remaining strong. We also expect the Central bank of Turkey to conclude its easing cycle In this article Poland: Wage growth is no longer keeping up with rising prices Turkey: Easing cycle to be concluded with a 9% policy rate Hungary: Base rate set to remain unchanged Poland: Wage growth is no longer keeping up with rising prices Industrial output (October forecast: 8.8% year-on-year): Industrial production is benefiting from an improvement in supply chain functioning, which supports exports-oriented industries, including automotive and electric products. When the backlog of work is unloaded and re-stocking is finished, domestic manufacturing is expected to slow over the medium term.   Retail sales (October forecast: 3.8% YoY): Retail sales growth has slowed to low single-digit growth as wages are no longer keeping up with rising prices. We forecast growth of 3.8% YoY as high inflation is undermining consumers' purchasing power to such an extent that they are more cautious in their purchasing decisions. Household consumption growth is slowing. Unemployment rate (October forecast: 5.1%): A recent data revision lifted the registered unemployment rate toward a higher level, but the number of unemployed remains unchanged (lower denominator). Nevertheless, the trend remains positive and we forecast that in October the number of unemployed and the unemployment rate were broadly unchanged vs. in September. The Polish labour market remains resilient to softer economic conditions. Turkey: Easing cycle to be concluded with a 9% policy rate While inflationary pressures remained broad-based in October as all 12 main CPI categories contributed positively to the increase in inflation, the Central Bank of Turkey has signalled that it intends to conclude the easing cycle with another 150bp rate cut in November. This will bring the policy rate to 9.0%. Hungary: Base rate set to remain unchanged We do not expect any fireworks from the National Bank of Hungary at its November rate-setting meeting. The latest data regarding inflation and GDP were broadly in line with the central bank’s expectations and the next staff projection update is only due in December. Against this backdrop, we don't see any game-changing moves. When it comes to the risk environment, we haven’t seen a material improvement in domestic or external risk factors, which were flagged by the central bank as triggers to consider changes in its monetary stance. By the time the National Bank of Hungary's (NBH's) rate-setting meeting takes place, we might see some positive headlines coming from the European Commission regarding the Rule-of-Law procedure. With a green(ish) light, Hungary will be able to secure the Recovery and Resilience Facility (RRF) plan signature just in time to not lose €4.6bn of the €5.8bn RRF grant which is at stake should Hungary miss the year-end deadline to have an accepted plan. But no matter how green this light is, we don’t expect the central bank to make a policy change so quickly and we see the NBH underscoring its hawkish “whatever it takes” approach again. Though the EU fund story and the monetary policy decision will give plenty to talk about, we are going to see the latest labour market data as well. Here we expect wage growth to remain strong, reflecting the fact that companies made mid-year wage increases and one-off payments as inflation bit workers’ disposable income. Regarding the unemployment rate, we expect it to continue its gradual rise, as other employers are unable to remain in business without a reduction in their labour costs. In general, it will be quite a mixed picture of the state of the Hungarian labour market. Key events in EMEA next week Source: Refinitiv, ING TagsTurkey Poland wages Hungary EMEA Disclaimer This publication has been prepared by ING solely for information purposes irrespective of a particular user's means, financial situation or investment objectives. The information does not constitute investment recommendation, and nor is it investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument. Read more

The report was prepared by Dom Maklerski BDM at the request of the WSE as part of the Exchange's Analytical Coverage Support Programme Last recommendation BDM: ACCUMULATE with target price 6,32 PLN/share (11.10.2022) LINK • Q3'22 revenue was PLN 35.8m (+4% y/y), 2.5% below our forecasts. As anticipated, foreign exchange rates and product price increases had a positive impact on revenues. • Sales on the Polish market fell 15.2% to PLN 7.9m, 23.5% below our assumptions. The Polish market share fell to 22%. By comparison, it was 27% in Q3'21 and 33% in Q2'22. The increase in domestic product prices was not sufficient to close the gap created by the negative sentiment in industry and domestic construction. • Export sales increased by 11.2% y-o-y, above our expectations. Sales in Germany rose to PLN 15.3m (+ 25% y/y). This market now accounts for 43% of revenues (36% in Q3'21, 37% in Q2'22). • Revenues from the Italian market increased by 52% y/y, q/q remains flat. Revenues from the Russian market fell to 0. • The rest of the European market performed better than expected, with revenue growth of 52% y/y and 77% q/q. • Gross profit margin declined sharply, well below our expectations. Cost pressures related to material prices, labour costs, third-party services and energy were higher than our expectations. • Despite lower-than-expected general and administrative expenses as well as cost of sales, the EBITDA margin also fell sharply. The margin erosion is due to the high cost of sales. • Operating cash flow amounted to PLN -2.5 million, the change in working capital amounted to PLN -3.8 million. • CAPEX in the last quarter amounted to PLN 6.4 million, of which PLN 4.1 million was the acquisition of intangible assets. Working capital requirements increased. Receivables turnover increased from 86 days in Q2'22 to 97 days, inventory turnover increased from 91 to 100 days respectively. • Net debt increased significantly (to PLN 15.2 million, from PLN 9.9 million in Q2'22). The net debt/EBITDA ratio currently stands at 1.1. BDM Comment: We view Q3'22 results negatively. Although the company's revenues were close to our forecasts, cost pressures proved to be greater than we had anticipated. Domestic sales were hit hard by the low PMI and the slowdown in construction. Sales in Germany were close to our forecasts and rose in EUR terms. Sales in Europe excluding Italy and Germany were also a positive surprise. It was able to fill the gap left by the revenue generated in Russia. The company managed to reduce selling and general and administrative expenses, but cost of sales was too high to generate satisfactory profits. Accounts receivable and inventory turnover raised and consequently, working capital requirements increased. Analyst: Kajetan SroczyÅ„ski Kajetan.sroczynski@bdm.pl tel.: (+48) 668 516 977 GPW’s Analytical Coverage Support Programme 3.0  

Energy prices are driving up CPI inflation: The increase in energy carrier prices in 2022 strongly impacted the acceleration of consumer inflation. In August, the contribution of fuels in transportation and home energy carriers was 6.0 percentage points inflation at 17.2% YoY. Neverthel, with CPI ess, the initial impetus for higher energy prices was also translated through socalled secondround effects on price increases for food and other goods and services in the core inflation basket CPI inflation and its sources (% change YoY) It’s not only energy responsible for the acceleration of inflation: In our view, the high price increase is a combination of cost inflation (pandemic, war in Ukraine) and demand inflation (consumption boom for a few years, tight labour market). These factors will continue to bring about high inflation as a result of the o ngoing energy crisis. Core inflation will rise with a peak in early 2023 because of the delayed pass producer price increases to retail prices. We forecast double-- through of digit CPI price growth in 202324. The anti-inflation shield and energy prices for households: Since the beginning of 2022, the government has actively used instruments to mitigate energy price increases by introducing indirect tax cuts as part of the antiinflation shield. These solutions have now been extended until the end of 2 022. Thanks to the reduction of the VAT rate on electricity (from 23% to 8%) in January 2022, the increase in this component of the CPI was about 5% rather than 24%, which would have otherwise been the result of Energy Regulatory Office’s hike in tar the 6 iffs for households. Prices of energy carriers in Poland - components of the CPI index (%ch YoY) Increases despite the anti-inflation shield: While the government has announced a freeze on the price of electricity, energy and gas for early 2023, consumers are still expected to face solid fuel (coal) price increases in autumn. Upward pressure on the price of food and other goods and services (second-round effects) will also persist. Disclaimer This publication has been prepared by ING solely for information purposes irrespective of a particular user's means, financial situation or investment objectives. The information does not constitute investment recommendation, and nor is it investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument. Read more

External assistance and government's anti-inflation shield The vast majority of respondents say the anti-inflation shield is helpful. The shield comprised temporary cuts in indirect taxes, addressed mainly to households. However, most companies (63%) find the anti-inflation shield helps only slightly, and only 15% feel that it does not help at all. Does the anti-inflation shield help your company? External assistance and EU policy to combat the energy crisis Most companies are quite sceptical about the effectiveness of EU policies in dealing with the energy crisis. 44% of companies do not believe that EU policies can contain the crisis but do note the potential for good solutions within them. One in ten companies are strongly critical and see EU policies as a pause button rather than a firm solution for dealing with the crisis. Slightly rarer are the companies that view EU policies more positively and with more hope (a total of 36%, of which 6% believe in EU policies without reservations. The remaining 30%, however, would make changes). Could EU policies help in the energy crisis? Disclaimer This publication has been prepared by ING solely for information purposes irrespective of a particular user's means, financial situation or investment objectives. The information does not constitute investment recommendation, and nor is it investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument. Read more

This section summarises the responses to the key research questions of our survey. How are companies coping in times of an energy shock, mainly gas? How does expensive energy affect their business? Do companies have problems with access to energy? Are they worried about energy access problems in the coming year? • SMEs have been hit hard by the war in Ukraine due to higher energy prices, which account for a more significant share of total costs. • 70% of companies are concerned about access to energy in the upcoming heating season. • Companies have generally only partially passed on higher energy costs to buyers and are actively reducing other expenses, including development. How have they responded so far, and what are their plans regarding energy-saving technologies or perhaps their own sources like photovoltaics, windmill, heat pump, and energy storage? • Companies expect further increases in energy prices for the coming year, although slightly lower than in the past 12 months. • High energy prices are increasing interest from SMEs in investments in energy efficiency and RES, especially in industrial companies in towns with less than 100,000 residents. • Companies are mainly focused on ad hoc measures with quick effects - increasing prices, looking for substitutes and cutting costs, including developmental ones. Does the anti-inflation shield (including reductions in VAT and excise taxes on energy) help them? • Most companies see the positive effects of the energy tax cuts. • For two-thirds of all companies, the anti-inflation shield is not enough support. For 15%, the shield does not help at all. • Nevertheless, the majority (60%) of companies believe it should be maintained at least until the end of 2023.Do companies feel pressure/identify a need to switch to clean energy in the near future? • Just 1 in 5 companies feel pressure to do so industrial companies.this tends to apply to larger • For the companies perceiving said pressure, the source is generally national and EU regulations, and secondarily from local governments or residents in the vicinity of the company's headquarters. Are they aware of EU climate policy and opportunities to support clean energy and energy efficiency? • Companies are r ather sceptical about the effectiveness of support from EU policy. A bird’s eye view takeaway: the large energy shock will make inflation more persistent The massive increases and fluctuations in the prices of energy carriers in 2022 (for natural gas in particular) have caused an unprecedented shock for Polish companies. In times of crisis, we appreciate how important energy is for production – in all companies, not just energy-intensive ones. Attempting to pass on high energy costs to buyers was the initial reaction for most companies, but they did so only partially. Having observed the behaviour of demand, it is possible that they have since decided to stagger price increases for their products or services. As a result, upward price adjustments will still take place in the form of second-round effects. The government's anti-inflation shield (currently under re-consideration) and various other solutions for 2023 should help to smooth out energy price increases, buying more time for action and investment in energy-saving technologies and our own RES. However, the persistency of inflation throughout 2023 is to come from non-energy items, such as food. This is visible in the rising trend of core inflation, which reached double-digit levels in the recent months (11% YoY in October). Prioritising the potential for green investment is no doubt the right way to go as a sustainable option for improving energy security in such turbulent times. Amid negative external circumstances, the emphasis on going green at the enterprise level is a reassuring message. Disclaimer This publication has been prepared by ING solely for information purposes irrespective of a particular user's means, financial situation or investment objectives. The information does not constitute investment recommendation, and nor is it investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument. Read more

This report is prepared for the Warsaw Stock Exchange SA within the framework of the Analytical Coverage Support Program 3.0 Event: 3Q22 results revealed; Adjusted EBITDA close to the preliminary figures published earlier. The Company revealed its quarterly consolidated 3Q22 results on Wednesday late after the session. Consolidated figures. The Company’s reported EBITDA amounted to PLN 62.0 million. This figure is impacted by one-time effects at a sum of PLN -60.9 million in addition to other operating income at a value of PLN -1.3 million. The mentioned one-time effects include (i) PLN -64.4 million of timing effects in the ON+Bio segment and (ii) PLN 3.5 million of cost transfers in the natural gas segment. Ultimately, the Company’s adjusted EBITDA (as calculated by us) after excluding these items amounted to PLN 124.2 million vs. PLN 95.0 million expected by us initially (and vs. PLN 124 million indicated in the preliminary figures previously and PLN 120.7 million of final adjusted EBITDA calculated by management for the quarter). The difference in our adjusted EBITDA and the management adjusted EBITDA lies in other operating income and different calculation of depreciation. The Company’s reported net income amounted to PLN 41.1 million, while the adjusted net income, as calculated by us amounted to PLN 92.0 million. Results of segment. The Company’s ON/bio segment delivered adjusted EBITDA of PLN 122.3 million vs. PLN 90.0 million expected by us initially. The Company’s LPG segment recorded adjusted EBITDA of PLN 16.4 million vs. PLN 15.0 million expected by us. The natural gas segment’s adjusted EBITDA amounted to PLN 1.5 million vs. PLN 0.0 million expected by us. The electric energy segment delivered an adjusted EBITDA of PLN 5.4 million vs. PLN -3.0 million expected by us. The results of the photovoltaic segment with adjusted EBITDA at PLN -1.7 million (vs. PLN -1.0 million expected by us). The Company mentioned that the quarterly results had been particularly impacted by the war in Ukraine, and by the resultant instability of energy markets caused by introduction of sanctions on Belarus and Russia. The Company also mentions very high sale volumes generated on diesel, petrol and LPG products and logistical constraints that limited the utilization of market opportunities. Furthermore, The Company generated PLN 23 million on the sale of obligatory reserves (vs. PLN 25 million expected by us and vs. PLN 30 million declared by the Company to be generated in 2H22). Cash flow. The Company’s 3Q22 operating cash flow amounted to PLN 49 million vs. PLN -81 million recognised a year ago. The cumulative operating cash flow for 1-3Q22 amounts to as much as PLN 182 million (vs. PLN -146 million delivered a year ago). The strong drop in inventories has been confirmed in the quarter (a drop in inventories of PLN -153 million this year). The operating cash flow is negatively affected by a significant increase in trade receivables (of PLN -449 million recognised this year) – a figure which is likely to partly reverse in the next quarters, in our view. Net debt. The Company’s net debt at the end of the quarter amounted to PLN 228 million vs. PLN 337 million recognised a year ago. We were hoping for a greater decrease in net debt in the quarter. There are chances for a drop in trade receivables and a significant drop in net debt in the next quarters. Analyst: Łukasz Prokopiuk, CFA GPW’s Analytical Coverage Support Programme 3.0 https://bossa.pl/analizy/wsparcie-pokrycia-analitycznego-gpw#unimot

3Q22 EBITDA above with market expectations (PLN 69mn / +11% y/y) Rainbow Tours reported 2Q22 results with the following highlights: â–  Gross profit on sales: PLN 140mn (+42% y/y) â–  Gross margin: 12.6% (-1.7 p.p. y/y) â–  SG&A costs: PLN 80mn (+28% y/y) â–  EBIT: PLN 63mn (+9% y/y) â–  Financial costs: PLN -5.0mn vs PLN -3.5mn â–  Interest paid (YTD): PLN -7.2mn vs -1.7mn â–  Cash netto: PLN 101.5mn â–  OCF (YTD): PLN +138mn vs +186mn in last year â–  CAPEX (YTD): PLN -1.4mn vs -44.8mn in last year Our view: POSITIVE Analyst: Dariusz DziubiÅ„ski GPW’s Analytical Coverage Support Programme 3.0  

This report is prepared for the Warsaw Stock Exchange SA within the framework of the Analytical Coverage Support Program 3.0. Event: 3Q22 financial results preview. On November 29 the Company will release 3Q22 financial results. On October 25 LSI already released 3Q22 preliminary revenues that reached PLN 14.4 million (down 2% qoq, up 37% yoy) which was above our expectations at c. PLN 12.6 million. We expect the production revenues to rise 13% yoy given last year’s low base (related to the pandemic uncertainty on the market) and forecast a 30% margin in this segment vs 18% in 3Q21 and 30% in 2Q22. We expect a 68% yoy rise of revenues in the distribution segment due to similar reasons and forecast the margin at the level of 26%, slightly lower than 31% recorded in the base quarter. We expect a material rise of SG&A costs because of sales team building for a new business line (restaurant robots); finally these costs should hit PLN 4.7 million (up 52% yoy). To sum up, in 3Q22 we forecast the Company’s revenues/ EBIT/ net loss at PLN 14.4 million (up 37% yoy)/ PLN 0.8 million (up 84% yoy)/ PLN -0.5 million (vs PLN -0.6 million a year ago). Expected impact: LSI Software is in the process of intensive investment in new business lines and a gradual improvement of results is expected in the upcoming quarters of 2023. Analyst: Tomasz Rodak GPW’s Analytical Coverage Support Programme 3.0  

In October, employment in the business sector grew by 2.4% YoY, beating both expectations and the previous print (2.2%). Wage growth came in below expectations (13% vs 14.2% YoY), as companies prepare for economic slowdown and a strong hike in the minimum wage next year. Given the labour shortage, markets should adjust more via wages than via employment   Labor demand remains strong despite signs of a slowdown in some sectors, such as construction. Adding to this is the large number (approximately 400,000) of refugees from Ukraine who have found work in Poland since the war broke out and are likely to be largely unaccounted for in the CSO's employment data. Combined with the demographics, this suggests a continued tight labor market and little room for unemployment to rise despite the economic slowdown that Poland is facing in 2023. However, after a very successful start to the year, a slowdown in demand for jobs is evident in many areas of the economy. This is primarily seen in manufacturing, where 7,000 full-time jobs have been lost since January. Information and communications is still doing very well (14,000 jobs gained), which may be related to the relocation of some companies to Poland from the East after the start of the Russian aggression. Employment in retail, among others, is also growing, which is probably related to the influx of refugees into the country. On the other hand, wage growth was weaker than expected - its rate slowed from 14% to 13% YoY, below consensus (14.2% YoY). Given how strong labor demand is, we can assume that the lower propensity of companies to raise wages is due to preparation for the economic slowdown, but also to prepare company budgets for a large increase in the minimum wage in 2023. It should be noted here that in real terms, wages have been falling almost continuously since April, and this is unlikely to change in 2023 as well. The trend is already resulting in weaker consumer demand, especially for durable goods. This is one of the key reasons for the slowdown in GDP growth we expect next year. So far, everything indicates that the condition of the labor market, for both employment and wages, will be better than that assumed in the latest NBP inflation projection. This is one of the reasons why we believe that the return of CPI to the NBP's target may prove to be for longer than the projection assumes. This will be reflected primarily in stubbornly high core inflation. Also we point out that with the structural labour shortage, the labour market should adjust via slower wage dynamics than employment cuts. Companies prefer to hoard labour when any slowdown is seen as temporary and to rather adjust wages - this time however even a wages slowdown may be shallower due to the strong countercyclical hike in the minimum wage planned for 2023 (by 19.6%). Read this article on THINK Disclaimer This publication has been prepared by ING solely for information purposes irrespective of a particular user's means, financial situation or investment objectives. The information does not constitute investment recommendation, and nor is it investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument. Read more

Industrial output growth moderated in October amid declines in energy production, but manufacturing continued to expand at a solid pace. PPI inflation, which we believe has now peaked, slowed further. The coming months will bring a further deterioration in industry, including in manufacturing, and the downward trend in PPI growth should continue Opel factory in Gliwice, Poland Softer energy production pulling down industrial output growth Industrial production rose by 6.8% year-on-year in October falling short of our estimates and market expectations (ING: 8.8% YoY; consensus: 8.1% YoY), after an increase of 9.8% YoY in September. Seasonally-adjusted output contracted by 0.3% month-on-month. Output growth in manufacturing remained solid (9.3% YoY vs. 11.0% YoY in September), but energy production slowed markedly (-16.2% YoY). Signs of weakening are also slowly becoming apparent in manufacturing as well, though. The positive effect of improving global supply chains, which reduced the backlog of work, is beginning to fade. Manufacturing is starting to experience softer demand (decline in new orders). In other words, the negative demand effect is starting to dominate the temporary positive supply impulse. Production growth in the automotive industry went up by  41.6% YoY vs. 46.5% YoY in September and was 5.2% lower than in the previous month. Energy output declines from high reference base Electricity, gas, steam and air conditioning supply, % YoY Source: GUS. In the short term manufacturing growth also expected to moderate Poland’s industry was quite robust in 3Q22, driven by an improvement in global supply chains, but October might have been the last month of significant annual output growth. In the coming months, overall production is expected to suffer from a high base from last year's impressive (and hard-to-explain) output growth in the energy production section. Also, manufacturing should slow as orders have weakened, so the turn of 2022 and 2023 should be weak. However, 2023 should not be as dire as the most pessimistic expectations indicate. There is a certain breath of optimism in the economies of our trading partners thanks to the fall in gas prices and significant fiscal stimulus in Western Europe, and perhaps Poland. Producer price growth slowing down Producer prices (PPI) rose by 22.9% YoY last month (ING and consensus at 23.5% YoY) following a 24.6 YoY increase in September. Prices in manufacturing rose by 1.4% on a monthly basis, while there was a marked decline (4.5% MoM) in the energy generation section (for the second month in a row). The peak of PPI inflation is probably behind us, due to declines in commodity and energy prices and the high reference base. But the process of passing on higher costs to the customer is far from over and should be continued for some time. Producer price inflation has turned around PPI, % YoY Source: GUS. The Polish PPI shows the green shoots of global disinflation. However, central banks in developed markets say it would be premature to declare victory over surging inflation. The economic situation in the US and Europe is not weak enough, labour markets are strong and policymakers are willing to continue hiking rates, albeit in lower increments. Outlook for economic growth rather poor In 3Q22, GDP growth was in line with our forecast (3.5% YoY) and we are on course to reach around 5% growth in 2022 as a whole. It should be noted that while growth exceeded 8% YoY at the beginning of the year, it slowed to around 3% in the second half of the year. The inventory cycle played a large role in this. We expect visibly slower annual growth figures with respect to household consumption and fixed investment in the second half of 2022. High prices, rising interest rates, elevated geopolitical uncertainty and deteriorating external demand also contributed to the GDP slowdown in Poland. In 2023, we will see economic growth slowing down to around 1%. Theoretically, the weaker economy will be conducive to disinflation, but we forecast that average annual price growth next year will still remain in double digits. Persistently high core inflation is particularly worrying and indicates that the 2021-22 increase in energy prices will still translate strongly into growth in retail prices. Interest rates to remain unchanged in the short term The MPC has completed the current cycle of hikes and further increases are unlikely until late 2023 when we see the NBP resuming its tightening cycle. Should the pace of disinflation turn out to be slower than envisaged in the November NBP projection, or new forecasts point to stubbornly high inflation in 2024, policymakers could decide to tighten monetary policy even more. Read this article on THINK Disclaimer This publication has been prepared by ING solely for information purposes irrespective of a particular user's means, financial situation or investment objectives. The information does not constitute investment recommendation, and nor is it investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument. Read more

Event: 3Q22 final financial results released – in line with preliminary figures. Before today’s session the Company released final 3Q22 financial results which are in line with the preliminary figures. Other findings from the 3Q22 financial report, including the letter to shareholders: In 3Q22 the Company observed some delay in purchase decisions taken by some clients and a decrease in a value of the first contract as well which are related to the economic slowdown; DataWalk is on track to overcome the limitations related to slower performance of field engineering teams; The effectiveness of these teams should not be a problem in 2023; The Company expects to sign several important contracts before the 2022-end. Expected impact: Neutral; the results are in line with the preliminary figures. Today (on November 22, 2022) at. 10:00 a.m., the Company will hold a conference to discuss 3Q22 financials. This report is prepared for the Warsaw Stock Exchange SA within the framework of the Analytical Coverage Support Program 3.0. 652/2022/AR GPW’s Analytical Coverage Support Programme 3.0

This report is prepared for the Warsaw Stock Exchange SA within the framework of the Analytical Coverage Support Program. 3.0. This is an excerpt from the Polish version of DM BOÅš SA’s research report. Sector: Oil & gas Market Cap: US$ 151.2 m Fundamental rating: Buy (→) Bloomberg code: UNT PW Market relative: Overweight (→) Av. daily turnover: US$ 0.26 m Price: PLN 87.60 12M range: 35.45-87.60 PLN 12M EFV: PLN 115.0 (↑) Free float: 36% Investment summary Unimot’s equities stay among our preferred stocks (Buy + Overweight; 12M EFV = PLN 115 per share) and once again we upgrade our financial forecasts for the Company: we (i) incorporate materially higher than we expected 3Q22 financial results, (ii) assume significantly higher 4Q22 results, (iii) include consolidated logistic assets (Olavion + cisterns) being acquired by the Company, and (iv) raise forecasts for the following years. We continue to be positive about the planned acquisition of asphalt and logistic assets from Lotos and PKN Orlen (which may be finalized already in December) and still believe this can be a breakthrough moment for Unimot that may become one of the biggest beneficiaries of Poland’s naphtha sector consolidation. We uphold our view expressed earlier that a share issue will not be necessary for funding these acquisitions, the more so that (i) the Company’s current financial results are record high, (ii) a strong decline of inventories was confirmed in 3Q22 results, and (iii) a high level of commercial receivables is likely to normalize in the upcoming quarters. We are positive about inland fuel premium margins in 2023, albeit in our forecasts we assume their normalization. The war in Ukraine, imposition of numerous sanctions on Russia and Belarus, and self-sanctioning led to a real shortage of particular fuels on European markets, and Poland was not immune to this. Lower supply, lower fuel stock, and more costly alternative imports directions: all this is reflected in higher fuel premiums. There is another important factor that supports margins, namely logistic problems in the region; currently the rail infrastructure is utilized to the limits which plays a significant role in the market creation. In these circumstances the lack of own logistics may indicate a failure to carry out the transportation operations (in Unimot’s case, this risk fully justifies the Company’s decision to purchase Olavion and cisterns). It is worth mentioning that high cost inflation affects fuel imports to Poland (via higher costs of logistics, storage, transport, freight, external services, and salaries) which may act as a strong growth driver for fuel premiums. Given the above mentioned considerations, consolidated FY22E EBITDA for the ON/bio segment stands a chance to exceed the record high level of PLN 325 million. Then, what is the outlook for the quarters to come? Due to a low visibility and unpredictability of the commodities markets we assume that fuel margins will gradually normalize in 2023 and 2024 (which implies that the expected EBITDA of the ON/bio segment will fall to c. PLN 250 million next year, and then to PLN 130 million in 2024), albeit given the current circumstances this approach may be considered a very cautious one, the more so that 4Q22 witnesses a further strengthening of fuel premiums. It seems that the above mentioned factors will prevail in the nearest quarters which could help maintain (or even improve) the current macroeconomic situation. It is worth mentioning that an acquisition of new cisterns and Olavion may prove crucial in securing the Company’s competitive edge over other independent fuel suppliers. After the incorporation of Unimot’s new assets and rationalization of longterm assumptions (for margins and sales volume) our normalized mid-cycle EBITDA for the ON/ bio segment rises to PLN 130 million (from PLN 100 million expected earlier). We assume a cautious approach to the LPG segment as well. This segment, alongside the ON/ bio one, is the main beneficiary of turbulent market changes, limited fuel supply in Europe, and logistic problems in the region. The fact that this year’s EBITDA of the LPG segment is likely to exceed the level of last year’s total EBITDA, truly surprises us. Similarly as with diesel and petrol, we remain cautious and assume significantly lower EBITDA in the following years than expected for this year, although at the moment we believe it is likely that our projections would be beaten. We raise our LT estimate of normalized EBITDA for this segment to c. PLN 20 million (from PLN 15 million expected earlier) The outlook for 2023 for the remaining segments is blurry due to limited visibility and high volatility on the commodities market. It is really difficult to forecast the Company’s margins for next year in other business segments due to an exceptional situation on most commodities markets and continuing geopolitical uncertainty. This refers especially to the gas and electricity segments. The law freezing electricity prices is still another risk factor with an impact difficult to assess. In our f inancial forecasts for the Company we expect much weaker results in these two segments next year, but this is more related to our cautiousness than stemming from a pessimistic approach. Anyway, the fact is that in previous quarters, in spite of the unpredictable environment, Unimot managed to surprise with relatively good financial results Risk factors Inland fuel premium margins will drop significantly in 2023 PKN Orlen fine-tunes its pricing policy negatively affecting the fuel premiums. The purchase of assets from Lotos and PKN Orlen will be more costly than we assume. Prices of natural gas back at high levels negatively affecting generated margins. Liquidity of electric energy contract prices on the TGE remains limited in subsequent months negatively affecting generated margins. Crude oil prices will rebound leading to higher NWC requirements. The Company’s photovoltaic business generates further losses. The Company will fall under the windfall tax. energy prices freezing in 2023 will adversely impact financial results. Catalysts 1. Logistic challenges and full utilization of transport infrastructure in Poland will support fuel margins. 2. No need to conduct an SPO to acquire assets. 3. High yoy increases in revenues recognized in the coming months. 4. Diesel consumption in Poland rises in 2023. 5. Unplanned refinery production stoppages support inland premium margins. 6. The photovoltaic and retail segments will grow at a faster pace than expected. 7. The fuel sector consolidation will bring about a lasting increase of fuel inland premiums in Poland. 8. Weaker market competitiveness results in a lasting growth of fuel inland premiums. 9. Crude oil price drops will lower NWC requirements. 10. The Group’s reshuffle should lower the Company’s NWC by over PLN 200 million per year. 11. The Company will recognize PLN 30 million of savings in 2H22 thanks to the Group’s reshuffle. Competitive advantages 1. As the biggest independent fuel supplier in Poland the Company is currently seen as the alternative for PKN Orlen. 2. Motivated and competent management team holding the equity position in the Company. 3. A big scale of business in the wholesale diesel trading market that may be difficult to reach for newcomers. 4. Tight cooperation with PKN Orlen: Unimot is a big wholesale buyer of PKN’s diesel oil and one of the main suppliers of biocomponents to PKN. 5. Expanding retail fuel chain secures growing wholesale diesel volumes. 6. A high cost effectiveness in comparison to competition. 7. Strengthening of the Company’s competitive edges and adding elements of stabilization and diversification thanks to an acquisition of logistic and asphalt assets from Lotos. 8. Unimot may be among the main beneficiaries of Poland’s fuel sector consolidation Analyst: Łukasz Prokopiuk, CFA GPW’s Analytical Coverage Support Programme 3.0  

Construction output increased by 3.9% year-on-year in October, against a consensus of 0.9% and a 0.3% increase in September. The improvement was mainly due to better activity in industries related to infrastructure investment, likely benefiting from the relatively warm weather     Civil engineering construction was unchanged on an annual basis vs. a 2.3% YoY decline a month earlier while specialised works increased 5.1% YoY, following a 4.9% YoY decline in September. The main component, building construction, was almost unchanged in annual terms (8.9% in October vs. 8.7% in September). The rebound in production may be the result of a relatively warm October, which made it easier to carry out work. The good weather has so far continued into November as well. Thus, it can be assumed that works related to infrastructure projects will perform quite well this month. However, the lack of funds from the Recovery Fund, and the high cost of work, which make it difficult to put out tenders, suggest that when the positive weather effects end, infrastructure investment will slow down again. Construction output, however, will be determined mainly by activity in building construction. In October, growth in this category remained quite strong, though much slower than in the previous months of 2022 (around 27% YoY on average). Real estate developers are likely finishing previously started projects but are not beginning new ones. Companies are being hit by high costs while demand for real estate has collapsed due to rising borrowing costs and deteriorating household sentiment. Therefore, we continue to believe that construction output may turn out to be one of the weakest elements of the domestic economy, although the decline in its annual growth rate to negative levels may be delayed until early next year. TagsPoland construction Disclaimer This publication has been prepared by ING solely for information purposes irrespective of a particular user's means, financial situation or investment objectives. The information does not constitute investment recommendation, and nor is it investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument. Read more

Retail sales slowed visibly at the beginning of 4Q fitting into the broad picture of a slowing economy. High inflation is undermining real disposable income despite one off pension payments and tax cuts as wage growth fails to keep pace with price growth. In the face of deteriorating GDP growth, the MPC is unlikely to resume its hiking cycle anytime soon   Retail sales of goods rose by just 0.7% year-on-year in October (ING: 3.8%; consensus: 3.2%), following a 4.1% YoY increase the month before. The weakness in sales was broad-based last month. The steepest declines were reported in fuel (-20.5% YoY), while the largest increase was in clothing and footwear (14.3% YoY). Growth in food sales (2.4% YoY) was also lower than in previous months.   Since May this year, wage growth in the corporate sector has been failing to keep pace with retail price growth (the exception being July, when high one off payouts in mining and energy temporarily boosted earnings). With relatively stable employment growth, this is translating into declines in the real wage fund. This is generating pressure on consumer spending as the resulting gap in real incomes cannot be offset by one off pension benefits and tax cuts. At the same time, households have largely consumed the savings accumulated during the pandemic. Falling real wages translate into weaker demand Retail sales of goods (real) and real wage bill in enterprise sector, % YoY Source: GUS, ING.   The beginning of 4Q22 signalled a further downturn in the Polish economy. We have seen slower industrial production growth and weak retail trade data. The fact that construction continued to expand and was hardly hit by higher costs and a collapse in mortgage loans, is of little consolation given the fact that it was boosted by favourable weather conditions in October this year. In annual terms, GDP growth in 4Q22 will be lower than in 3Q22, and we expect a decline in 1Q23.   Given that a significant part of current inflation was driven by rising costs, the emergence of a negative output gap will have a limited impact on the pace of price growth. In 2023, we expect still high core inflation and double-digit growth in consumer prices (CPI). Given the MPC's sensitivity to developments in the real economy, the likelihood that it will resume its tightening cycle (which has been 'paused') is negligible in the coming months. Disclaimer This publication has been prepared by ING solely for information purposes irrespective of a particular user's means, financial situation or investment objectives. The information does not constitute investment recommendation, and nor is it investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument. Read more  

This report is prepared for the Warsaw Stock Exchange SA within the framework of the Analytical Coverage Support Program 3.0. This is an excerpt from the Polish version of DM BOÅš SA’s research report. Sector: Construction materials Fundamental rating: Hold (→) Market relative: Neutral (↑) Price: PLN 24.00 12M EFV: PLN 28.7 (→) Market Cap: US$ 112 m Bloomberg code: FRO PW Av. daily turnover: US$ 0.03 m 12M range: PLN 22.50-37.80 Free float: 55% Recommended action We raise our ST market-relative bias to Neutral from Underweight while keeping LT Hold fundamental recommendation intact. The Group’s 3Q22 financial results exceeded our expectations on the operating level, albeit financial costs rose more than we assumed and NI was only marginally higher than our forecast. 3Q22 revenues/ EBITDA/ NI changed by 0%/ -6%/ -37% yoy. The market environment does not seem friendly, in our view, as new housing investments in the region start to stumble which will undoubtedly affect the demand for construction materials in the quarters to follow. Moreover, deteriorating consumers’ condition may hurt the secondary market. It looks like a spark of hope for the Company may constitute the perspective of the recovery and reconstruction in Ukraine, but first the war has to end. A tad better situation is on the commodities market with raw materials prices falling in 2Q and 3Q22 and slightly rising in 4Q22 which is offset by PLN appreciation vs US$. The Group plans to launch a new logistic center in Romania in 1H23 which implies temporary higher OPEX and higher inventories, albeit we deem the new warehouse opening is beneficial from the strategic perspective because not only will this enable a revenues growth and faster penetration of South European markets, but also will curb costs streamlining logistic processes (no transportation from Poland). 3Q22 financial results review The Group’s 3Q22 revenues reached PLN 226 million (flat yoy) while we assumed a 2% yoy decline. The Company’s segments of batteries and accessories/ installation fittings/ heating systems generated PLN 105 million (up 2% yoy)/ 78 million (up 18% yoy)/ 40 million (down 23% yoy). We assumed slightly lower revenues in the segments of batteries and accessories (down 3% yoy) and installation f ittings (up 15% yoy) while in the heating systems we expected higher sales (down 10% yoy). The Group’s sales in Poland/ Czechia/ Slovakia/ Romania/ Hungary/ other countries changed by -11%/ +12%/ +11%/ +14%/ +18%/ -2% yoy in 3Q22. The sales in Poland show a declining trend this year (PLN 120/99/ 98 million in 1Q/2Q/3Q22), so do sales in Czechia (PLN 43/38/36 million in 1Q/2Q/3Q22) and Hungary (PLN 12/10/10 million in 1Q/2Q/3Q22). The Group’s 3Q22 sales were supported by the Romanian (PLN 43/43/46 million in 1Q/2Q/3Q22), Slovakian (PLN 15/14/14 million in 1Q/2Q/3Q22), and other markets (PLN 22/20/23 million in 1Q/2Q/3Q22). The EBIT margin at 12.2% (vs 13.3% in 3Q21) exceeded our expectations, as we forecast a profitability decline to 9.6% in 3Q22. The profitability softening should be related to a yoy growth of raw materials costs without the possibility to pass the increase on product prices coupled with rising costs of salaries in relation to revenues. In consequence, the Group’s 3Q22 EBIT fell 8% yoy and reached PLN 28 million beating our expectations. Nonetheless, 3Q22 net financial costs turned out to be materially higher than we assumed: PLN 10 million vs PLN 6 million, on the back of high FX differences and higher interest (debt increase and interest rates hikes) as well. Ultimately, the Group’s 3Q22 NI hit PLN 14 million (down 37% yoy) slightly exceeding our expectations (by 12%). At the end of 3Q22 the Group’s inventories stood at PLN 363 million (up 11% qoq) and the net debt totaled PLN 190 million vs PLN 104 million at the 2021end; the ND/ EBITDA ratio reached 1.5x. Operating cash flows in 3Q22 reached PLN -22 million and PLN -58 million in 1-3Q22. Risk factors 1. Economic slowdown in Europe 2. Falling demand for new flats 3. Falling frequency of renovations 4. Qualified workforce shortage 5. Pressure on salaries 6. Energy/ heat price increase 7. Volatile raw materials prices (of copper and zinc, in particular) 8. Unfavorable/volatile FX rates (currency risk when PLN and CZK weaken against US$ and EUR) 9. Lack of stability in the region 10. Temporary higher inventories 11. High interest rates Catalysts 1. Expansion in European markets 2. Strengthening position on the existing markets 3. Launching a new logistic center in the southern Europe 4. New products (expanding the product offer) 5. Own brands repositioning 6. Favorable FX rates and raw materials prices 7. Acquisitions in attractive segments 8. Implementation of the adopted strategy F1R2 Analyst: Sylwia JaÅ›kiewicz, CFA GPW’s Analytical Coverage Support Programme 3.0  

3Q2022 results: weaker than the two previous quarters, lower y/y • The dynamics of revenue growth clearly weakened (+5% in the TIM cons. and 4% in TIM SA), although it was not a surprise considering the current reports informing about monthly results. • The gross margin on goods in TIM SA decreased (to 20%, compared to 21.7% in 3Q2021 and 24.7% in 2Q2022), which resulted in a decrease in gross profit on goods to approx. PLN 70 million (-4% y/y , -18% q/q). • General costs amounted to PLN 60 million in the entire Group (+19% y/y, -4% q/q), which means that they showed a higher dynamics than gross profit, which resulted in a decrease in both EBIT and EBITDA. • We would like to draw attention to the large increase in financial costs (balance in Q3 at the level of PLN -6.3 million), which was due to higher interest, but above all higher exchange rate differences resulting from the valuation of the financed currency liabilities (leasing in 3LP). • The net debt at the end of the period was higher (mainly the valuation of leasing liabilities at a higher EUR/PLN). • Inventories (PLN -61.5 million) and receivables (PLN -5 million) decreased significantly, but at the same time the level of trade liabilities was reduced (PLN -73 million). As a result, the net working capital (NWC) increased again, this time by approx. PLN 7 million. • In Q3, TIM paid a dividend (PLN 26.6 million), which additionally contributed to an increase in net debt. • At TIM SA, the realization of our forecasts at the level of 75-88% allows us to hope that the plan will be implemented. The situation is worse on a consolidated basis, which is due to the weaker results of the 3LP (lower than expected margin, higher financial costs). Achieving PLN 105 million of consolidated net profit will be a big challenge, currently PLN 90 million seems more realistic. Companies' results The sales of TIM SA in the third quarter of 2022 maintained an upward trend, although the dynamics decreased significantly (+5% vs +50% in Q1 and +11% in Q2), reflecting the downturn in the market. The marked drop in the margin on goods should be assessed negatively (to approx. 20%, after 5 quarters of a much higher profitability), which, in our opinion, may mean the end of the favourable situation on goods lasting for over a year, resulting, among others, from rising raw material prices (e.g. copper). The increase in general costs accelerated (+19% y/y), clearly above the margin change rate (-4% y/y). The balance of other activities and the balance of "cash" did not have a significant impact on the final result at TIM SA. There is a regression in the 3LP logistics company. Although this entity showed 11% an increase in sales to customers from outside the Group (to approx. PLN 15 million), but this is a rather disappointing result for us, our full-year forecasts assume +25%. The EBITDA profit decreased to approx. PLN 5.8 million (-25% y/y), and the net loss increased to approx. PLN 4 million (high financial costs). Inventories plunged sharply, but trade payables dropped even more In 3Q2022, TIM decreased the level of inventories by as much as PLN 61.5 million, and receivables were also slightly reduced (approx. PLN 5 million). On the other hand, TIM reduced its liabilities by over PLN 73 million, which limited the positive impact of lower inventories on generated operating cash flows. As a result, the net working capital (NWC) increased by approx. PLN 7 million, and the cash rotation cycle increased to 53 days (consulted data). From the beginning of the year, the involvement in KON amounted to approx. PLN 56 million, however, the purpose has changed: currently KON finances mainly the increase in receivables (approx. PLN 48 million) and a decrease in liabilities (approx. PLN 9 million). The quarterly value of the operating CF was again positive (PLN +22 million), mainly due to the already slight increase in working capital, which was lower than the profits generated from business. Debt increased (PLN +17.5m, in ¼ of this was due to the weakening of PLN), which, with a lower level of cash (due to the payment of PLN 26.6m in dividends in Q3), increased the level of net debt. This change mainly concerns the 3LP logistics company, the development of which, with the postponement of the share issue, is financed with external capital. TIM SA itself has net cash (lower by PLN 10 million q/q due to the aforementioned dividend payment). The Group's DN/EBITDA ratio increased to 0.7x, but still remains at a very safe level. At TIM SA, the implementation of our forecasts at the level of 75-88% allows us to hope that the plan will be implemented. The situation is worse on a consolidated basis, which is due to the weaker results of the 3LP (lower than expected margin, higher financial costs). Achieving PLN 105 million of consolidated net profit will be a big challenge, currently PLN 90 million seems more realistic. The lower increase in sales (and taking into account inflation in real terms, even a drop in revenues) and the lower margin indicate that the market has already entered the slump phase. In the coming periods, we should prepare ourselves for PLN 10-15 million of quarterly profits versus PLN 25-30 million that the company generated in the previous quarters. Last valuation: PLN 54.3 / share on 06/06/2022. Price on the issue date PLN 31.4. Analyst: MichaÅ‚ Sztabler Equity Analyst +48 (22) 213 22 36 michal.sztabler@noblesecurities.pl GPW’s Analytical Coverage Support Programme 3.0  

Recommendation: Buy 12M TP: PLN 68.7 Ryvu Therapeutics reported 3Q22 results with the following highlights: â–  Revenues PLN 20.5mn (+176% y/y, 8% below our estimates and 7% above market consensus). Company booked upfront payment from Exelixis of PLN 14mn (in line with our estimates). Revenues from grants amounted to PLN 5mn (vs. PLN 7mn year ago, vs. PLN 7mn expected by us). â–  Total operating expenses amounted to PLN -34mn (+9% y/y). Total expenses excluding non-cash cost of incentive program amounted to PLN 30mn (vs. PLN 23mn year ago). The growth of this cost is primarily related to the higher by 68% y/y cost of external services, higher by 19% y/y cost of materials and higher by 18% cost of employees. Cost of incentive program amounted to PLN 4mn (vs. PLN 8 year ago, vs. PLN 4mn expected by us) â–  Reported EBITDA loss amounted to PLN 10mn (vs. PLN 20mn year ago, vs. PLN 10mn expected by market consensus, vs. PLN 10mn expected by us). â–  EBITDA adjusted by incentive program amounted to PLN -6mn (vs. PLN -12mn year ago, vs. PLN -6mn expected by us) â–  Net loss amounted to PLN -12mn (vs. PLN -23mn year ago, vs. PLN 12mn expected by market consensus, vs. PLN 13mn expected by us). â–  Net cash came in at PLN 40mn (vs. PLN 41mn in 2Q22, vs. PLN 42mn expected by us). Our view: NEUTRAL The 3Q22 results came in line with our and market expectations and does not change company’s investment story. The upfront payment from Exelixis came fully in line with our expectation and operational cost came even slightly below our estimates, as a result company was managed to show stable level of net cash at the end of 3Q22 compared to 2Q22. In the upcoming quarter, we expect next small milestone payments from Exelixis (aprox. USD 3mn) as company said that it expect to receive another payments within a year after conclusion of partnering deal. Key issues in the upcoming months: â–  RVU120: “Safety and efficacy data from the ongoing Phase Ib clinical study in relapsed/refractory (r/r) acute myeloid leukemia (AML) and high-risk myelodysplastic syndrome (HR-MDS) will be presented at the 2022 ASH meeting. To date, RVU120 demonstrated single-agent activity with a complete response and disease stabilizations in 10 patients with r/r AML or HR-MDS.” â–  RVU120: “On-target activity of RVU120 in AML and HR-MDS patient samples will also be presented at the ASH. As of the cut-off date, inhibition of pSTAT5 reached >50%, a threshold that based on the preclinical predictions is sufficient for robust efficacy in certain groups of super-responder patients.” â–  SEL24. “Ryvu’s partner Menarini Group will present preclinical data showing SEL24 (MEN1703) potential for clinical efficacy in multiple myeloma (MM), Hodgkin’s lymphoma (HL), and diffuse large B-cell lymphoma (DLBCL) at the upcoming ASH meeting.” Analyst: Marcin Górnik marcin.gornik@pekao.com.pl GPW’s Analytical Coverage Support Programme 3.0" https://www.pekao.com.pl/biuro-maklerskie/klient-indywidualny/aktywne-inwestowanie/ryvu-therapeutics.html

The report was prepared by Dom Maklerski BDM at the request of the WSE as part of the Exchange's Analytical Coverage Support Programme BUY (PREVIOUS: ACCUMULATE) TARGET PRICE 28,8 PLN 25th NOVEMBER 2022, 12:15 CEST Selena FM reported very good results in Q3'22. The decrease in raw material pressures allowed the gross sales margin to improve. At the revenue level, the Eastern Europe and Asia segment contributed strongly to the result. In the Polish market, the company is experiencing pressure on sales volumes, but price increases offset this effect at the revenue level. On the fundamental risk side, Selena FM still has a significant sales position in the Russian market (we see a significant reduction in exposure to this area in the future as a potential upside to our valuation). The company is valued at EV/EBITDA'22=3.4x (3.1x after adjusting for loans to the main shareholder) according to our forecasts. These levels are already clearly below the average for the last 5 years. Better-than-expected Q3'22 results and the lower commodity price levels assumed in the model have a positive impact on our valuation of the company. Our current price target is PLN 28.8, which implies an upgrade to Buy. The company's Q3'22 results were clearly above our expectations due to a very strong result (both revenue and EBITDA) in the Eastern Europe and Asia segment. The company mainly increased revenues from Asian companies (+48% y/y), but Eastern Europe also posted a 28% y/y increase. The positive trend continued in North and South America. Good sales in Q3'22 continued in the rest of the EU (with a decline in profitability). The Polish market was weak with only a 1% increase in sales, which, with significant inflation in the construction chemicals category, implies a clear decline in volumes. Net debt (PLN 162m, of which PLN 54m finances loans to entities related to the main shareholder) clearly fell thanks to strong operating cash flows. The company did not hold an earnings conference after Q3'22. Only in a press release did the CEO reiterate that the company is seeing a decline in demand and pressure on volumes and margins. The company wants to increase its presence in western markets (including the US and Western Europe). We view these activities as being derived from the need to develop production capacity (in Poland or Asia) previously intended for the Russian market. The constantly significant exposure to the Russian market (companies located in Eastern Europe, i.e. Ukraine and Russia, accounted for 15% of the group's sales in Q1-3'22) raises risks that are difficult to quantify in our opinion. We note that the company's main European competitors are still present in Russia (with Henkel, for example, having announced divestments), The company also maintains its interest in acquisitions (entities with a recognisable brand and access to the market). The management also emphasised the high importance of working capital reduction measures. ). Selena FM's current market capitalization is PLN 505m (PLN 478m after deducting treasury shares). Net debt at the end of Q3'22 was PLN 162m (PLN 108m after adjusting for loans). EBITDA for the last four quarters amounted to ca. PLN 174m. The company is therefore valued at current adjusted EV/EBITDA=3.4x. The level is relatively low, and the discount to the average for the last five years (4.5x for annually averaged net debt adjusted for loans) has become noticeably larger than a quarter ago. Main risks: • high exposure to Eastern European markets • risks related to the macroeconomic situation, the economic situation in the construction industry and seasonality of revenues; • high prices of strategic raw materials: MDI and polyols and problems with their availability; • strong competition (in the markets where the company operates there is competition in the form of large, international companies offering a wide range of products); • risk related to M&A transactions; • exchange rate risk (mainly euro and EM currencies) • transactions with related entities (in 2015, the purchase of bonds of a subsidiary from the main owner for PLN 60 million - repaid in 2020, and in 2020-2022 - PLN 58m loans); • low free float and trading liquidity. Analyst: Krzysztof Pado pado@bdm.com.pl tel. (0-32) 208-14-32 Dom Maklerski BDM S.A. ul. 3-go Maja 23, 40-096 Katowice GPW’s Analytical Coverage Support Programme 3.0  

This report is prepared for the Warsaw Stock Exchange SA within the framework of the Abalytical Coverage Support Program 3.0 Event: Sale to one of uniformed services of the Polish National Government. During Friday’s session DataWalk informed that that it signed an agreement with one of uniformed services of the Polish National Government, for license sale of DataWalk platform. The DataWalk software will be used for applications related to the customer's operational activities. Expected impact: Slightly positive – discounted during Friday’s session. Anlyst: Tomasz Rodak, CFA GPW’s Analytical Coverage Support Programme 3.0  

The results for the 3Q are very good both in terms of revenues and profits, which originate from a one-off event, i.e. the sale of Bidlogic technology for PLN 4.2 million. The value of transaction less the payment due was recognized in revenues, which resulted in their record value in the history of the Company at PLN 13.872 million (increase by 41.2% y/y and 97.7% q/q). As a result, for the first time in seven quarters, Vivid Games generated: positive sales result (PLN 2.709 million vs. PLN 148k loss in Q2 2022 and minus PLN 410k loss in Q3 2021), one of the highest EBIT profit in history (PLN 3.04 million versus PLN 193k in Q2 2022 and minus PLN 63k of operating loss in Q3 2021) and record-breaking net profit (PLN 2.836 million versus PLN 22k in Q2 2022 and minus PLN 87k net loss in Q3 2021). Nevertheless, excluding the impact of a one-off event, Vivid Games SA loses a small positive profitability generated after two quarters of 2022, showing the results for the third quarter below our expectations. Among the positive factors shaping the value of the Company, we highlight the agreement on the monetization of Knights Fight 2 (November 2022). This game, before the dispute, generated about 15% out of total revenue of the Company. We assume a return to these values from January 2023. â–ª Among the threats we see weakening of the advertising market, a reduction in user spendings and a weaker than a few months ago USD/PLN exchange rate. Finally, we increase our valuation from PLN 1.07 to PLN 1.09 per share, due to the change in the valuations of comparative companies, decrease in discount rates and the increase in the residual value. Expected impact: The Company's results in the third quarter were very good, although they were under a strong, positive impact of a one-off event (sale of Bidlogic technology). This transaction had a significant impact on the Company's margins and its financial position. As a result liquidity increased, debt was reduced (the Company paid 9 out of 12 arrangement installments for bonds) and strengthened equity. However, the exclusion of a one-off transaction presents the Company in a different, less favorable light. While at the level of revenues there were still q/q and y/y increases (above our expectations), at the level of profits Vivid Games generated negative results again. Still the most important cost category of the Company (UA - paid user acquisition) clearly weighs on the final result. At the fundamental level, on the one hand, we see factors positively affecting the Company's revenues (return to monetization of Knights Fight 2), and on the other hand, the lower USD exchange rate against PLN and worse prospects for the development of the mobile games market, including advertising expenditures and users' purchasing behavior, mean that we are slightly lowering our revenue and profit forecasts for the Company. In our forecast, we do not assume significant write-offs at the end of the year. We increase our valuation to PLN 1.09 per share (from PLN 1.07), which results from the increase in the DCF model mainly due to the residual value increase and from the change of companies' multipliers in the comparative method. GPW’s Analytical Coverage Support Programme 3.0 Analyst Łukasz Bryl Tel.: 785 500 874

The report was prepared by Dom Maklerski BDM at the request of the WSE as part of the Exchange's Analytical Coverage Support Programme Last recommendation BDM: BUY with target price 29,6 PLN/share (2022/10/07) LINK Q3'22 results above our expectations - high revenues and lower margin decline (positive) Q3'22 was a record quarter in the company's history in terms of revenue. The high USD exchange rate and sales to reduce inventory levels resulted in a decline in gross margin on sales, but the margin turned out to be higher than our forecasts (58.8% vs. 57.3% expected) Cumulatively after 9 months 2022, the margin was 62.4%, which means that the company is, for the time being, delivering its target of maintaining the ratio above 60%. Due to store closures in Ukraine there was a slight decrease in store space (-1% y/y). The company also closed a store in Romania, where it currently maintains an online presence, wholesale and multibrands. Esotiq intends to expand its ecommerce network in Moldova and Germany. There are also underway efforts to start selling on Zalando in Austria and Switzerland. A mobile application was launched in late October'22. The company notes that in this sales channel, the sales per customer is 15% higher than the standard, and the number of items per receipt is also higher. In the first month of the app's operation, Esotiq recorded about 20,000 downloads, and the conversion rate was 17%. In Q3'22, the company paid a dividend of PLN 3.9 million, while keeping positive cash flow from financing activities, mainly due to proceeds from loans and borrowings. Net debt after equity was PLN 55.1 million, or 1.7x EBITDA. In Q3'22, the Vosedo.com platform, a project in cooperation with Oponeo.pl, has launched and generated first sales. Due to the continued lack of an investment agreement, it was not included in the company's results BDM's comments: Q3'22 results, despite lower y/y figures, surprised positively. First of all, revenues and gross sales margin turned out to be higher than the company's initial estimates. As a result, gross profit on sales turned out to be PLN 2.6 million higher than our forecasts. Further, there was a higher-than-expected increase in general and administrative expenses, which may be due to increased expenditures on a project related to the development of RFID technology. Ultimately, the company achieved PLN 9.9 million in EBITDA and PLN 4.6 million in net profit. In the current reality of rising costs and a strong USD exchange rate, we view the results positively. Note that Q3'21 represents a high base due to lower store operating costs and then ongoing trend of a return to in-store shopping, which was conducive to selling products at first prices and not exerting selling pressure. We also note the high level of inventories, which, given the tightened pandemic restrictions in China, the geopolitical situation and the steady increase in sales, seems justified. Analyst: Anna Tobiasz anna.tobiasz@bdm.pl tel.: (+48) 666 073 972 GPW’s Analytical Coverage Support Programme 3.0  

The report was prepared by Dom Maklerski BDM at the request of the WSE as part of the Exchange's Analytical Coverage Support Programme Last recommendation BDM: ACCUMULATE with target price 24,0 PLN/share (2022/10/26) LINK BDM Comment: Q3 2022, despite the unfavorable environment (according to official analyses, the market was about 18% below the 2019 level), turned out to be a record quarter for the company in terms of results. However, they were lower than our expectations, which we perceive slightly negative. Over the quarter, the company generated revenues of PLN 1,006.1 million (an increase of approx. 87.4% y/y, vs. our assumptions of PLN 1,153.4 million), and the number of flights increased y/y (definitely the increase in revenues was primarily related to the subsiding Covid-19 pandemic and the fact that tourists are eager to return to their holidays abroad after the restrictions are lifted). In the area of air services, the company generated turnover of PLN 981.5 million (+90.5% y/y), and PLN 24.6 million (+13.7% y/y) in on-board sales. In Q3'22, cost of sales increased by 120.8% y/y to PLN 842.1 million, and the main factor influencing the higher level of costs compared to the same period of the previous year is primarily an increase in the cost of materials and energy consumption (+ 167.8% y/y) and third-party services (+146.1% y/y) due to higher number of air operations and higher fuel prices. The gross result on the sale of the company amounted to PLN 164.0 million (+5.5% y/y). In Q3'22, the company recorded PLN 56.9 million in other operating income, which was related to the remission of the PFR loan. At the IFRS16 EBITDA level, Enter Air reported a profit of PLN 266.6 million (+29.4% y/y). The financial balance of the company amounted to PLN -103.3 million (PLN -91.0 million of which were exchange differences from the balance sheet valuation). The result was increased by the profit on the settlement of entities accounted for under the equity method (PLN 5.5 million - applies to Chair Airlines AG - which positively surprised us). In the discussed period, the company generated a net result of PLN 104.0 million (+37.6% y/y). In Q3'22, cash flow from operating activities amounted to PLN 240.8 million (vs. PLN 226 million a year ago), investment CF = PLN -0.3 million, and financial CF = PLN -83.5 million. At the end of September 2022, the group had PLN 448.9 million in cash (+PLN 164.9 million q/q). • In Q3'22, the group generated PLN 1,006.1 million in revenue, which means an increase of approx. 87.4% y/y. Thus, the company beat the record year of 2019, despite the fact that, according to official analyses, the market was about 18% below the level of 2019. The significant increase in revenues was mainly related to the receding Covid-19 pandemic and the fact that tourists are eager to return to their holidays after the restrictions are lifted abroad. • In the area of air services, the company achieved PLN 981.5 million in turnover (+90.5% y/y), and PLN 24.6 million in on-board sales sales (+13.7% y/y). • In the discussed period, the cost of sales increased by 120.8% y/y to PLN 842.1 million, and the main factor contributing to the higher level of costs compared to the corresponding period of the previous year is primarily an increase in the costs of materials and energy consumption (+ 167.8% y/y) and external services (+146.1% y/y) due to higher number of performed air operations. • Gross result on the sale of the company amounted to PLN 164.0 million (+5.5% y/y). • In Q3'22, the company recorded PLN 56.9 million in other operating income, which was related to the remission of the PFR loan. • At the IFRS16 EBITDA level, Enter Air reported a profit of PLN 266.6 million (+29.4% y/y). • The company's financial balance amounted to PLN -103.3 million (of which PLN -91.0 million were exchange differences from the balance sheet valuation). The result was increased by the profit on the settlement of entities accounted for using the equity method (PLN 5.5 million - applies to Chair Airlines AG). • In the discussed period, the company generated a net result of PLN 104.0 million (+37.6% y/y). • In the discussed period, cash flow from operating activities amounted to PLN 240.8 million (vs. PLN 226 million in the previous year), investment CF = PLN - 0.3 million, and financial CF = PLN -83.5 million. At the end of September 2022, the group had PLN 448.9 million in cash (+PLN 164.9 million q/q). • Next year, the company wants to fly more from Western Europe. Already, it is noting a significant increase in revenues from abroad, it intends to mark its presence more strongly on the Scandinavian and German-speaking markets, where it is gaining more and more recognition and is appreciated for its quality. • In the summer season, the company used the entire available fleet of 25 aircraft (23 Boeing 737-800 aircraft and 2 737 MAX 8 aircraft) and two additional wet-lease aircraft. In Poland, Enter Air operated connections for the largest tour operators and, at the same time, its long-term partners. Before the start of the season, the carrier signed charter contracts for the Summer 2022 and Winter 2022/23 seasons with TUI Poland (with an estimated value of PLN 543.3 million), Coral Travel Poland (with an estimated value of PLN 312.6 million) and Rainbow Tours (with an estimated value of PLN 312.6 million). PLN 159.5 million). Enter Air also cooperates with Itaka Holdings. • The Group signed further annexes amending lease agreements, which mainly concerned changes to schedules and rules for calculating lease payments during the Covid-19 pandemic. The agreements are aimed at reducing the group's financial burden in the winter, when sales proceeds are significantly lower. • At the end of September 2022, the average employment was 538 people vs. 462 in 2021 Analyst: Krzysztof Tkocz krzysztof.tkocz@bdm.pl tel.: (+48) 516 086 705 GPW’s Analytical Coverage Support Programme 3.0  

Recommendation: Buy 12M TP: PLN 68.7 Company signed partnering deal with Biotech and sales license for STING agonists compounds with following highlights: • Upfront payment EUR 20mn • Bio-dollar value EUR 876mn • Low single digit royalties Additionally Biotech has committed to invest EUR 20mn in Rvyu by purchasing shares of series J at price not higher than PLN 48.86/sh. Company has showed new presentation that included deal with Biontech which can be found under this link Our view: POSITIVE We underline that company has already sold part of rights to this compound to Exelixis and in our last report, we valued STING agonist compound at PLN 328mn (assuming bio-dollar value of USD 400mn and upfront payment USD 3mn) and we valued company’s shares at PLN 68.7/sh. Now, additionally assuming the upfront payment of EUR 20mn and bio dollar value of EUR 876mn from Biontech without changing any other factors, we estimate rNPV of this compound at PLN 857mn and in such case our model would indicate company’s share price at PLN 92/sh. We underline such deal as well as commitment of Biontech to invest in company share significantly increase credibility of Ryvu Therapeutics and all projects developed by company. Analyst: Marcin Górnik Tel.: 691 701 088 marcin.gornik@pekao.com. pl GPW’s Analytical Coverage Support Programme 3.0  

In 3Q, Poland's GDP slowed to 3.6% YoY after a very solid first half. This was the result of a significantly lower contribution from private consumption. In contrast, the contribution from inventory changes was unexpectedly high. This could mean that companies were taken by surprise by low demand, or increased inventories as a precautionary measure A shopping mall in Warsaw, Poland The third quarter contribution from private consumption came in at just 0.5pp vs. 3.6pp in the second quarter. In year-on-year terms, private consumption growth declined from 6.4% in 2Q22 to just 0.9% in 3Q22. The reason is high inflation growth, which has almost continuously outpaced wage growth since May. This will not change in 1H23 and is one of the main reasons for the slowdown we expect for next year. Adding to this is generally worse household sentiment, which is curbing demand for durable goods. Perhaps this is a delayed impact of the outbreak of the war, as 2Q22 consumption was relatively strong. GDP structure in Poland A significant deterioration in consumption in 3Q22; inventories are still quite strong The contribution from inventories was even higher than in 2Q22 (2.2pp vs. 1.8pp). This could mean that (a) companies were taken by surprise by low demand and were unable to adjust production in time, or (b) as a precautionary measure, they increased inventories in the face of supply shortages and accelerating inflation. However, investment performed relatively poorly (adding only 0.3pp to GDP growth, down from 1pp a quarter earlier). This is partly due to the difficult situation facing the construction industry. Infrastructure investment work has been hurt either by a lack of access to the Recovery Fund, or a strong increase in the cost of work, which has prompted companies to walk off construction sites and made it difficult to award tenders. Residential construction, meanwhile, is facing a slump in demand, due to high interest rates and a collapse in mortgage lending, among other factors. In YoY terms, investment growth fell from 6.6% to 2%. Read next: The Global Oil Market Is Expected To Tighten Over 2023| FXMAG.COM As expected, the contribution of net exports to GDP improved (from -0.7pp to +0.6pp). At the turn of the year, companies tried hard to increase inventories, fearing renewed disruptions in global supply chains. Import growth has been slowing for several quarters, while exports have begun to accelerate since 2Q22 amid softening domestic demand and the weakening zloty. The overall economic picture in 3Q22 is lacklustre, despite the fairly strong YoY headline GDP growth and an acceleration in seasonally-adjusted GDP growth to 1% QoQ in 3Q22. We view this acceleration as a rebound after a strong 2.3% quarter-on-quarter decline in 2Q22. Significant weakness in consumer demand bodes poorly for the turn of the year, with companies more likely to look to adjust inventories as price increases slow down. We still think GDP growth should be close to 5% YoY this year (mainly due to strong 1H22), with GDP slowing to around 1% YoY in 2023. Read this article on THINK

The report was prepared by Dom Maklerski BDM at the request of the WSE as part of the Exchange's Analytical Coverage Support Programme Last recommendation BDM: SELL with target price 7,5 PLN/share (2022/10/07) LINK BDM Comment: SimFabric's results for Q3'22 in terms of revenues and EBIT are significantly below our expectations, which is why we percive them negatively. In the quarter under review, the company generated only PLN 0.4m in revenues from sales of products (-74.4% y/y, -84.4% q/q). SIM did not present the revenue structure as it was done in previous reports. However, we believe that such a large decrease in revenues is the result of the lack of or insignificant impact of the recognition of elearning materials and payments on the production of publishing games. In our last recommendation, we indicated that the company had booked a total of PLN 14.9m/EUR 3.3m in revenues from three games developed under contract publishing agreements vs. EUR 3.6m contracted. The above result may be related to the use of the aforementioned pool of funds. Assuming that the created projects are ready/nearing completion, this may indicate the upcoming premieres of these games. However, bearing in mind the release of only one demo for one of the three games ("ElectriX") and the lack of marketing campaigns, the rest of the projects may need additional funds to complete them. Moving on to the costs. The large drop in revenues resulted in a proportionally large drop in operating expenses, which amounted to just PLN 0.2m (-87.7% y/y, -89.6% q/q). The majority of this item was depreciation (PLN 0.2 million), external services related to the production of games amounted to PLN -0.1 million (vs. PLN 1.3 million in Q2'22), and salaries PLN 11 thousand. PLN (-98.3% y/y and -31.3% q/q). In the last quarter, the company generated PLN 0.4 million EBITDA (-35.9% y/y, -62.2% y/y). In Q3'22, the company recognized PLN 1.6m in financial revenue, which boosted its net profit for the period to PLN 1.5m. Net profit of parent comapny amounted to PLN 1.0 million. Cash flows from operating activities in Q3'22 amounted to PLN -3.8 million, cash flows from investing activities amounted to PLN -1.4 million, and cash flows from financial activities amounted to PLN +4.0 million (PLN 4.0 million from the net effect of the capital increase). At the end of September 2022, the company had PLN 5.9m in cash and cash equivalents (PLN -1.2m q/q). The company's intangible assets increased from PLN 5.6m at the end of Q2'22 to PLN 6.9m at the end of Q3'22 (of which PLN 5.3m was costs of games in progress = PLN +1.0m q/q , PLN 1.1 million costs of completed games = PLN -0.3 million q/q, and PLN 0.5 million acquired rights to games). Trade and other receivables increased from PLN 12.8 million at the end of Q2'22 to PLN 13.2 million at the end of September'22 (PLN +0.4 million). In addition, on November 29, 2022. the company received information from Valve (owner of the Steam store), on the basis of which the company's account this store has been blocked. Thus, at the moment, SIM cannot sell or promote its projects on this platform, which we perceive negatively. SimFabric has contacted STEAM and the matter is currently being investigated in detail by STEAM in cooperation with the company. In the announcement, the company's management board informed that it will make every effort to clarify the matter as soon as possible and restore the operation of the STEAM account in the shortest possible time. • In Q3'22, the company generated only PLN 0.4m in revenues from product sales (-74.4% y/y, -84.4% q/q). The company did not present the revenue structure as it was done in previous reports. We tink that such a large decrease in revenues is the result of the lack of or insignificant impact of the recognition of e-learning materials and payments on the production of publishing games. • A large decrease in revenues was followed by a proportionally large decrease in operating costs, which amounted to only PLN 0.2 million (-87.7% y/y, -89.6% q/q). The majority of this item was depreciation (PLN 0.2 million), and external services related to the production of games amounted to PLN -0.1 million (vs. PLN 1.3 million in Q2'22). • In the last quarter, the company generated PLN 0.4 million EBITDA (-35.9% y/y, -62.2% y/y). • In Q3'22, the company recognized PLN 1.6 million in financial revenues, which increased its net profit for the period, which amounted to PLN 1.5 million. Net profit of parent comapny amounted to PLN 1.0 million. • Cash flows from operating activities in Q3'22 amounted to PLN -3.8 million, cash flows from investing activities amounted to PLN -1.4 million, and cash flows from financial activities amounted to PLN +4.0 million (PLN 4.0 million from the net impact of the capital increase ). At the end of September 2022, the company had PLN 5.9m in cash and cash equivalents (PLN -1.2m q/q). • The company's intangible assets increased from PLN 5.6m at the end of Q2'22 to PLN 6.9m at the end of Q3'22 (of which PLN 5.3m was costs of games in progress = PLN +1.0m q/ q, PLN 1.1 million costs of completed games = PLN -0.3 million q/q, and PLN 0.5 million acquired rights to games). • Trade and other receivables increased from PLN 12.8 million at the end of Q2'22 to PLN 13.2 million at the end of September'22 (PLN +0.4 million). • In Q3'22, the company successfully completed the first stage of production of the first game based on the "Play to Earn" model and blockchain technology. The first game project in this model is implemented as part of the 6th pillar of the Company's Sustainable Development Strategy and is financed from a grant for the development of blockchain technology, awarded to the company by the Swiss DFINITY Foundation. Currently, work is underway on the next stage of the game's development, consisting in the issue of NFT tokens. • During the festival, the Mushrooms: Forest Walker PC demo was downloaded by over 7,000 players worldwide. The full game is currently being finalized. • During the festival, the demo game "My Demon Wife" was downloaded by over 5,000 players worldwide. The full game is currently being finalized. • On October 28, Gardenia's own game was released on PlayStation Store for PS4/PS5. Within 72 hours from the premiere, the game's costs were recouped in 100% and the game currently makes money with every copy sold. Currently, work on the next versions of the game for consoles, mobile devices and VR is being finalized. • On November 18, the company's own game Quantum Storm was released on Nintendo Switch consoles in the Nintendo eShop. Within 72 hours of its release, the game's costs were recouped in 100% and the game currently makes money with every copy sold. Currently, work on the next versions of the game for consoles, mobile devices and VR is being finalized. • On November 18, the prologue of the Company's own game - Cthulhu: Books of Ancients - premiered in the Steam store for PCs. Within 48 hours of its release, the game was downloaded by over 10,000 players around the world. The full game is currently being finalized. • The SimFabric Capital Group continues its development and is currently entering the last phase of preparations for going public with the first subsidiary VRFabric S.A. The debut of the second subsidiary MobileFabric S.A. on the NewConnect market is planned for 2023. GR Games S.A. as the third subsidiary is also planning a stock exchange debut. However, launching the procedure for this subsidiary's listing on the main floor of the Warsaw Stock Exchange will be possible only after the release of the first GR Games S.A. game. – Gumball 3000 in 2024. Analyst: Krzysztof Tkocz krzysztof.tkocz@bdm.pl tel.: (+48) 516 086 705 GPW’s Analytical Coverage Support Programme 3.0  

Poland’s manufacturing PMI went up to 43.4pts in November, but we are still seeing rapidly deteriorating conditions in industry. Output and new orders continued to decline, albeit at a slower pace. Further improvement in supply chains was reported, but prices are still rising. Much softer industrial output readings are expected in the coming months The Polish manufacturing PMI index rose to 43.4pts in November from 42.0pts in October (consensus: 42.8pts). Despite the slight improvement, the PMI index still indicates a sharp contraction in industrial activity. Production and new orders fell again, albeit at a slightly lower rate than previously. Businesses complain about the unfavourable macroeconomic environment. Purchasing managers reported a decline in inventories, lower purchases, and employment reductions. PMI slightly up but still deeply in negative territory Poland's manufacturing PMI, pts. Source: S&P Global. Export orders declined for the ninth consecutive month, particularly to key European markets. Production backlogs are falling at a rapid pace and purchasing activity declined at the fastest rate since April 2020. Fewer problems with sourcing materials and the functioning of supply chains are supporting the Polish and European industry, allowing backlog orders to be fulfilled. This also translated into reduced upward cost pressures, which were the weakest in more than two years. Despite this, costs continued to rise (mainly due to more expensive gas and electricity), resulting in a sharp increase in output prices. The coming months will see a marked slowdown in industrial production growth. On the one hand we are dealing with deteriorating foreign demand, and on the other we have a high reference base from last year, when an impressive and hard-to-explain increase in energy production was reported. The usefulness of the PMI in predicting changes in production has been limited in recent months. The slump in purchasing managers’ assessments has been accompanied by the solid health of domestic manufacturing. This does not change the fact that the long-painted pessimistic picture of Polish manufacturing by manufacturers is now becoming a reality and will be reflected in hard data. Read this article on THINK TagsPoland PMI Disclaimer This publication has been prepared by ING solely for information purposes irrespective of a particular user's means, financial situation or investment objectives. The information does not constitute investment recommendation, and nor is it investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument. Read more

This report was prepared for the Warsaw Stock Exchange SA within the framework of the Analytical Coverage Support Program 3.0. Monnari Trade's results for the third quarter are good. The Company generated revenues of PLN 66.162 million, which means an increase of 17.9% compared to the third quarter of 2021 and a decrease by 10.0% q/q. In the clothing industry, characterized by seasonality, a decrease in sales in the third quarter is a normal phenomenon. Gross profit on sales amounted to PLN 35.745 million and was higher by 12.2% y/y. Gross margin on sales amounted to 54.0% (an increase of 2.3 p.p. y/y and a decrease of 7 p.p. q/q), which, taking into account the seasonality of the industry, is a good result (the last time in the third quarter Monnari Trade generated such a high margin in 2018 - 56.1%) We perceive the Company's cost discipline moderately positive. Selling costs increased by 23.9% y/y, and overheads by 30.1% y/y, which resulted in the Company losing profitability at the level of profit on sales. Thanks to the redemption of the preferential loan from PFR (PLN 11.4 million), Monnari Trade generated PLN 10.1 million in operating profit (the year before, the EBIT loss was minus PLN 1.128 million) and PLN 10.914 million in net profit (the year before, plus PLN 692 thousand). The Company's fundamentals remain solid. Thanks to the sale of a part of Geyer’s Gardens, liquidity remains high and liabilities are consistently decreasing. Despite the uncertainty in the macroeconomic environment, we assess the prospects for further growth positively, which is influenced by: a strong labor market, the strengthening of the zloty against the dollar, inflation rate slowdown in Poland and the suspension of the monetary policy tightening cycle. The Company's results are better than our expectations, hence we finally increase our valuation to PLN 7.2 per share (previously PLN 6.7), which is also due to a decrease in discount rates (WIBOR, treasury bond yields) and an increase in valuation multiples of peer companies Expected impact: At the revenue level, Monnari Trade's results are close to our estimates (PLN 66.162 mln vs. PLN 63.277 mln expected). The gross profit on sales turned out to be higher by 6.7% than our forecast (PLN 35.745 million vs. the expected PLN 33.502 million). On the other hand, at the level of operating profit, the result turned out to be slightly worse than we expected. EBIT amounted to PLN 10.111 million, with our estimates at PLN 10.583 million. The Company's net profit surprised us positively and amounted to PLN 10.914 million against the expected PLN 6.92 million. As announced by the Management Board, the Company's cash resources decreased in Q3 (from PLN 97.7 million at the end of Q2 to PLN 51.1 million). These funds were utilized to i.a. increase in inventories and decrease in liabilities, which fell from PLN 57.7 million in Q2 to PLN 48.9 million in Q3. In the perspective of the next year, the Company's results will be influenced by the economic situation in Poland, the exchange rate of the dollar against the zloty (the settlement currency for the purchase of imported goods) and cost discipline. Slightly better than expected results prompt us to revise our forecasts upwards at the level of net profit. Therefore, after updating the data in the model and multiples in the comparative valuation, we increase our valuation to PLN 7.2 per share at the end of 2022 (previously PLN 6.7). We believe the Company remains heavily undervalued. We see potential for growth not only in the company's core business (sale of clothing and clothing accessories), but also in the possibilities of business development of the remaining, unsold part of Geyer Gardens. Analyst Łukasz Bryl Tel.: 785 500 874 GPW’s Analytical Coverage Support Programme 3.0  

This analysis was prepared by mBank at the request of the WSE as part of the Exchange's Analytical Coverage Support Programme sell (reiterated) We maintain our negative outlook for Sygnity. Although sales revenues have followed an upward trend for several quarters with a clear acceleration in Q2 2022, the wage pressure in the IT sector remains strong (at least +10% y/y). Therefore, we still expect a slight deterioration of the profitability in results in the coming quarters. Our EBITDA forecast for the period 2022/23 is PLN 42.0 million (no change vs. the previous report of October 2022), and the net profit of PLN 25.4 million. The expected level of results implies EV/EBITDA and P/E at 10.3x and 17.8x, respectively, showing substantial premiums to peers., The level of ratios is higher than valuations of Asseco Poland or Comarch. Both companies are (also due to the size and liquidity) interesting investment types at the current level of share prices. In our valuation model, we assume the level of market risk in the DCF model = 6.00% and a new level of RFRs in the period 2022/30. We our new target price at PLN 13.70 (impact of updated peer multiples), which implies almost 39% downside potential and a reiterated sell recommendation. Analyst: PaweÅ‚ Szpigiel +48 509 603 258 pawel.szpigiel@mbank.pl GPW’s Analytical Coverage Support Programme 3.0  

Following a lower CPI reading, the Polish Monetary Policy Council officially declared a pause in its hiking cycle. So for next Wednesday, we are expecting the rate to remain at 6.75%. In Hungary, we see month-on-month headline inflation at around 1.8% and the core rate at 1.7%, due to a slowdown in both the industrial and service sectors In this article Poland: end of the cycle Turkey: risks are still on the upside Hungary: year-on-year indices of inflation rise further   Shutterstock Poland: end of the cycle NBP rate in December (6.75% - unchanged) The Polish Monetary Policy Council officially declared a pause in its rate hiking though in practice, this is the end of the cycle. With CPI inflation moderating from 17.9% year-on-year in October to 17.4% YoY in November (flash estimate) and GDP growth pointing to weak household spending and fixed investment, the Council is unlikely to tighten further anytime soon. Policymakers will wait for the impact of rate hikes delivered so far and hope that further tightening by central banks in core markets, along with a global economic slowdown, will bring Polish inflation down. However, the National Bank of Poland's target of 2.5% (+/- 1 perc. point.) is not in sight over the medium term. Turkey: risks are still on the upside In November, we expect annual inflation to change direction and drop to 84.4% (2.9% on monthly basis) from 85.5% a month ago, as base effects start to kick in. These will become more pronounced in December and early next year. Stability in the currency is another factor for some moderation in the pace of increase lately. However, the risks lie to the upside given the deterioration in pricing behaviour and still prevailing cost-push pressures. Hungary: year-on-year indices of inflation rise further October economic activity data is due next week in Hungary. We expect the retail sector to post a slowdown in sales volume, as household purchasing power is increasingly hit by rising inflation. Business survey indicators, including the PMI, suggest that we might also see a temporary slowdown in industrial production in October,  after a surprisingly strong September. The next big thing however is the November inflation print. We see food prices rising further as domestic producer prices are skyrocketing in the food industry (close to 50% YoY). Still, the strengthening of the forint may ease some pressure on imported inflation, and as aggregate demand retreats, inflation in services could also slow down. In all, we see the month-on-month headline inflation rate at around 1.8% and core inflation at 1.7%. But these rates are still higher than last year’s figures from the same month, thus the year-on-year indices are going to rise further, with the headline and core rates surpassing 22% and 23%, respectively. When it comes to the budgetary situation, unlike in the previous two months, we see a monthly deficit. This is fuelled by the extra pension adjustment by law due to high inflation. This payment triggered a significant outflow of cash in November, pushing the monthly budget balance into negative territory despite rising revenues from high inflation and windfall taxes, in our view. Key events in EMEA next week Refinitiv, ING TagsTurkey Poland MPC Hungary EMEA Disclaimer This publication has been prepared by ING solely for information purposes irrespective of a particular user's means, financial situation or investment objectives. The information does not constitute investment recommendation, and nor is it investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument. Read more

This report is prepared for the Warsaw Stock Exchange SA within the framework of the Analytical Coverage Support Program 3.0. Sector: TMT – IT software & services Fundamental rating: Buy (→) Market relative: Overweight (→) Price: PLN 10.20 12M EFV: PLN 17.3 (↓) Market Cap: US$ 7 m Bloomberg code: LSI PW Av. daily turnover: US$ 0.01 m 12M range: PLN 10.00-16.35 Free float: 70% Key points â–  Material growth of costs and revenues in 2022. In 1-3Q22 the Company’s revenues rose 20% yoy to PLN 39.8 million supported by the demand rebound in the HoReCa industry and inflationary growth of costs and goods offered by LSI Software. Nevertheless, the revenues growth was accompanied by an equally dynamic growth of costs resulting from a salaries increase, PLN weakening (the distribution segment’s purchases made in US$), and chiefly from the expansion of sales teams for new business lines: restaurant robots distribution and software sales in the SaaS model. â–  PUDU Robots distribution. The PUDU Roboty profile on Facebook informs that LSI-distributed robots are used in numerous restaurants (Pizza Hut, KFC, Da Grasso), hotels, fairs, entertainment centers in Poland. We assume that at the end of 2022 and 2023 LSI will rent 85 and 150 robots, respectively, which will enable the Company to generate c. PLN 1 million and PLN 3.9 million, respectively. We expect a further increase in a number of rented robots in the coming years. Besides, it is worth reminding that LSI charges a monthly fee for each rented robot, hence the revenues will recur in the following years. â–  Software sales in the SaaS model are another business arm that may exert an important impact on the Company’s future financials. A SaaS model will be implemented in three areas: gastronomy, marketing, and hotel business. LSI believes that these new solutions will not cannibalize old products, as they are addressed at smaller clients looking for a cheap subscription model. We have not included the revenues from this business segment in our forecasts. â–  4Q22E. We tentatively 4Q22 revenues at PLN 16.7 million (down 19% yoy) vs the base quarter’s record high sales thanks to the cinema operating revenues. Ultimately, we forecast 4Q22 EBITDA at PLN 6.6 million (up 22% yoy), with NP at PLN 4.4 million (down 12% yoy). â–  Risk to financial forecasts. Moderate/ high. The Company’s further growth depends on the HoReCa industry and cinema business which are relatively vulnerable to the economic slowdown. 5.4 4.6-8.5 13.1 7.2 6.2-15.2 16%-12%-24%-25%-44% 75.6 15.0 8.5 6.9-11.6 previous 62.3 16.0 9.7 8.0-19.1 change 21%-6%-13%-14%-39% profile and we expect a 33%/ 49%/ 23% EPS yoy growth in 2023/ 2024/ 2025 which will make the Company’s development to resemble business models of growth companies. â–  Forecast changes. 3Q22 sales were higher than our expectations and in the years to come we expect stronger growth dynamics due to inflationary factors. In consequence, we raise our revenue forecasts for 2022/2023/2024 by 6%/16%/21%. On the other hand, 2Q22 brought about higher than expected SG&A costs with slightly lower margins, thus we have adjusted our f inancial assumptions accordingly. â–  LSI perceived as a growth company? New business lines improve the Company’s growth Catalysts 1. Attractive current valuation â–  Valuation. Our target 12M EFV drops by 14% to PLN 17.3 per share (from PLN 20.0 per share) because of lower ST financial forecasts (due to intensive investments in development). â–  Recommended action. We continue to be positive towards LSI Software and keep our recommendations: LT fundamental Buy and ST relative Neutral, intact. The Company continues intensive investments in new business lines development which burden its financial results. We expect a gradual improvement of financials in 2023. Analyst: Tomasz Rodak, CFA GPW’s Analytical Coverage Support Programme 3.0  

This report is prepared for the Warsaw Stock Exchange SA within the framework of the Analytical Coverage Support Program 3.0. Key points â– This year we have observed a slowdown of the Company’s revenue dynamic to expected 30% yoy from 96% in 2021 which implies that the management target results (assuming a 70% revenue yoy growth) will not be achieved. There are two main reasons for this; namely (i) insufficient training and slower performance of field engineering teams handling the presale and post-sale services (internal factor) and (ii) a delay in purchase decisions taken by some clients and a decrease in a value of the first contract which are related to the economic slowdown (external factor). The management declares that the dominating internal factor is being addressed and the effectiveness of field engineering teams should not limit growth in 2023. â– A new issue in 2023/2024? In August the Company carried out a private placement of shares within authorized capital and collected PLN 38.3 million for further development. These funds should enable the Company to continue optimal development for a year and a half (until 1H24), we believe. Therefore, we expect another issue not later than in 1H24. â– The Company informed that to-date it signed 15 new contracts this year, which implies a 36% increase vs the analogical period of 2021 when it acquired 11 new contracts. Usually the yearend is particularly busy (clients tend to close their budgets) and we expect an inflow of new contracts till the end of 2022. â– Sales funnel value skewed slightly upwards. DataWalk informed that on September 14 a sales funnel value stood at c. US$ 25.3 million (including c. US$ 12.6 million in the US market and $ 12.7 million in other markets) which reflected a slightly rising trend of the sales funnel value, nonetheless we would like to see stronger growths which could support expectations of higher future growth dynamics. â– 4Q22E. Based on our FY revenue forecast in the amount of PLN 40.0 million, we expect 4Q22 revenues to reach PLN 14.2 million (up 31%/ 85% yoy/ qoq). â–  Risk to financial forecasts. High. Financial forecasts for DataWalk are encumbered with a high level of uncertainty given the early stage of the Company’s development and a relatively immature industry it operates in. During the last conference the management explained that the Company’s target for 2023 was a growth of revenues by at least 50% yoy (earlier they assumed 70% yoy). In consequence, we also lower our expectations related to revenues. â–  Valuation. Our target 12M EFV drops by 32% to PLN 107 per share (from PLN 158 per share), mainly on the back of (i) the revenue forecasts decrease, (ii) the peer multiples lowering by c. 50%, and (iii) valuation horizon forward shift. â–  Recommended action. For us, DataWalk remains an attractive growth company suffering temporary problems related to sales processes and unfavorable macro environment. Given this current negative market sentiment towards the growth companies with high needs for external funding, we maintain our recommendations: LT fundamental Hold and ST relative Neutral. Analyst: Tomasz Rodak, CFA GPW’s Analytical Coverage Support Programme 3.0  

A safe balance sheet will become more important Entities from the I&C industry (Control and Measurement Equipment and Automation) belong to the group of companies that systematically pay dividends. The effects of the upcoming economic slowdown, such as the loss of part of revenues and pressure on margins, but also an ambitious investment program or the need to finance increased working capital may have a negative impact on the ability to maintain the dividend policy at the current level in the coming years. Therefore, a strong balance sheet and stable operating cash flows are very important in the context of a demanding economic environment. In the case of Aplisens or Sonel, the expected deterioration of the economic situation and, consequently, the possible reduction in profits will not require verification of development plans and the implementation of drastic savings measures. In turn, Apator may be forced to choose between limiting payments to shareholders and reducing expenses for development. Apator SA We forecast that 2022 will be the weakest period in terms of results, from next year we expect them to improve. The improvement will be gradual and it will take several years to reach the pre-pandemic results. We assess the goals outlined in the updated Strategy of Apator Group as very difficult to achieve. With such assumptions, Apator is still valued at a premium to the fair value determined by us. We maintain the recommendation REDUCE with the target price of PLN 12.9 . Aplisens SA Our fears that Aplisens did not come true, due to the high involvement in eastern markets, most among I&C companies will experience the effects of war in Ukraine. The company coped very well in the new reality, and The passing year promises to be the best in the entire history of the company. Although we forecast a slight deterioration in results next year, further diversification of sales directions and still strong balance sheet give hope for a "dry foot" passage through the economic turmoil and maintaining transfers to shareholders. Quote We raised the share of the 18,3 PLN, which gives a 27% growth potential. Sonel SA Sonel coped quite well with the problems resulting from the increase in production costs and the availability of components. The challenge remains the profitable execution of contracts for the supply of meters (especially with dynamically growing sales in this segment). Sonel's strong side remains a safe balance sheet (net cash), high core business margins and stable operating flows. In our opinion, the company is well prepared for more difficult times. We maintained the valuation of shares at approx. PLN 10, similar to the current price. Analyst: MichaÅ‚ Sztabler Analityk akcji michal.sztabler@noblesecurities.pl +48 667 852 196 GPW’s Analytical Coverage Support Programme 3.0  

This report was prepared for the Warsaw Stock Exchange SA within the framework of the Analytical Coverage Support Program 3.0. Key facts from published results: â–ª We consider the published results for Q3 2022 as acceptable, but still far from those assumed in the strategy. The company recorded a decrease in sales revenue by 4.5% y/y and 3.5% q/q. Despite the continuing increase in costs (raw materials, energy), compared to Q2 2022, there was a visible increase in the gross margin on sales (from 32.8% to 36.7%), which we assess positively. â–ª Results at other levels with a strong impact of a decrease in general and administrative expenses (7% q/q). â–ª Operating profit was over PLN 1.08 million higher compared to Q2 22 and almost twice as high as compared to Q3 21 â–ª The net profit was mainly affected by the increase in financial costs (PLN 0.34 million in Q2 22 to PLN 1.47 million in Q3 22). The loss in Q3 22 amounted to PLN 0.57 million vs. PLN 0.7 million in Q2 22 and PLN 0.41 in Q3 21. We describe the financial situation of Protektor as stable, but the results achieved in Q3 are far from the assumptions of the strategy. We do not believe that the proposed new issue of shares is necessary for the Protektor (the so-called rescue issue), but we share the Management Board's concerns regarding the various possibilities of the war in Ukraine. We consider the efforts to transfer production from the second factory in Transnistria (Rida) to Poland to be right, and the issue was intended to serve this purpose. In our opinion, the results of Q3 do not give grounds for making another downward revision of the forecasts, so we leave the valuation unchanged at PLN 2.9. Expected impact: We consider the results for Q3 as quite good and meeting our expectations. Sales revenues decreased by PLN 1.2 million (4.5%) on an annual basis, and by PLN 882 thousand compared to Q2. PLN (3.5%). Taking into account the increase in production from 144 thousand. pairs of shoes in Q2 2022 to 174,000 pairs in Q3 2022 (+21%) and a decrease in sales from 169,000 up to 149 thousand par in Q3 2022 (-12%), it can be concluded that revenues are resistant to the observable increase in prices. Both in terms of quantity (sales of 165,000 pairs in Q3 2021) and value, these results are similar to last year's, so for now it is not visible that the new collections will contribute to the assumed increase in sales and improvement of margins. Revenues increased the most on the Romanian market (+73.7%), Switzerland (+29.2%) and Hungary (+28.2%), and fell the most on the Austrian market (-9.2%). On the most important German market for the Group, accounting for almost half of sales, revenues increased by 1%. This is not a bad result, taking into account the fact that the German economy sends the most signals of the forecasted slowdown. Finally, the Group's operating profit was higher by 76.4% compared to Q3 2021 and the net loss amounted to PLN 571 thousand. PLN against PLN 414 thousand PLN in the corresponding period of the previous year and PLN 695 thousand. PLN in Q2 2022. Summing up, we maintain our valuation, still seeing the potential to improve the results and increase the Company's valuation. Analyst: Artur Wizner Tel.: +48 (22) 53 95 548 GPW’s Analytical Coverage Support Programme 3.0  

The Monetary Policy Council left interest rates unchanged (the main one still at 6.75%), in line with the consensus and market expectations NBP real rates (ex-post) should stay negative even with CPI expected to fall in 2023 NBP nominal and real rates (ex-post) Source: NBP, GUS, ING Our take on the decision The National Bank of Poland has not formally closed the tightening cycle, but effectively this already happened a month ago when the MPC also decided to leave rates flat despite new higher CPI projection showing: (1) higher inflation in 2023 by 0.8 percentage points, at 13.1% year-on-year on average; (2) unfavourable CPI structure – the NBP shared our concerns about stubbornly high core inflation and raised its 2023 forecast by as much as one-third; (3) additionally, the November projection showed a return of CPI to the target range (2.5%, +/-1%), only in the second half of 2025, and this under rather optimistic assumptions about commodity markets and a rapid expiration of second-round effects and a marked deterioration in Poland's labour market. The decision to hold rates flat is no surprise. The MPC sticks to its de facto target, which the Council has defined as: (1) slow disinflation and (2) allowing a mild deceleration of GDP. The de jure target assuming inflation at 2.5% +/-1% is of less importance now. That is why the MPC decided to leave rates unchanged, despite the many risks of long-term high inflation. Outside the Polish economy, there are 'green shoots' showing a softening of global inflation pressure, i.e. a big improvement in supply chains, and a drop in energy commodity prices. Also, inflation has passed its peak in countries unaffected by the gas shock, such as the US, but not Europe. As 2021-22 saw the biggest price shock since the 1970s and many investors stayed short duration, now we see a massive unwind of these positions taking place. This has resulted in a strengthening of Polish debt and and in our view masks a short-sighted monetary policy. ING inflation forecast But we stick to our view that Poland's inflation outlook remains poor, and current monetary policy may prove too loose to bring inflation back to the NBP's target in a sustainable and credible way in the medium term. In 2023, CPI inflation should fall from over 20% YoY in February to around 10% YoY in the fourth quarter of 2023, but this will be due to base effects in food and energy prices. We expect a persistently high core inflation in the next two years. Also, the 'freezing' of energy prices in 2023 should cause an inflationary overhang that could generate further waves of secondary effects, cost increases and the need for price increases for a range of goods and services in subsequent years. The NBP seems to put more importance on the short-term economic costs of monetary tightening rather than to the medium- and long-term losses to households and businesses from sustained high inflation. Experiences of other countries where inflation expectations were 'unanchored' and the price spiral was set in motion shows that in order to combat stubbornly high inflation, a decisive tightening of the policy mix, i.e. monetary and fiscal policy, was necessary. Therefore, in 2024 expect either further rate hikes or a strong tightening of fiscal policy. The ultimate cost of fighting long-term high inflation will be higher than if the tightening of the policy mix were greater today. The post-meeting statement and Thursday's press conference The statement following the MPC meeting was almost unchanged from November, except for an update with new data. Also, the summary passages are almost identical as in November. After such a decision, Thursday's press conference by the NBP president should be important. The NBP governor should probably allude to the decline in CPI inflation in November and the weak GDP structure in the third quarter of 2022. The Council has further arguments for keeping interest rates unchanged in order to assess the effects of the hikes so far – especially in the context of a stable zloty. So far, Chairman Glapiński has been holding back on declaring the end of rate hikes, but effectively this phase of the fight against inflation has ended. A new chapter is likely to begin in 2024. Read this article on THINK Disclaimer This publication has been prepared by ING solely for information purposes irrespective of a particular user's means, financial situation or investment objectives. The information does not constitute investment recommendation, and nor is it investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument. Read more

Inflation data is in focus next week. In the Czech Republic, surveys suggest food prices continue to rise, and we believe fuel will be the only item to show deflation in November. Thus, we expect inflation to accelerate to 0.9% month-on-month. In Poland, core CPI grew to 11.3% year-on-year, and we see it peaking above 20% in February 2023 In this article Poland: No turnaround in inflation yet Czech Republic: Inflation accelerates again   Shutterstock Poland: No turnaround in inflation yet Current account (€-263mn) We forecast that the current account deficit narrowed substantially in October even though the trade deficit in goods was at a similar level as in the previous month. The main improvement is projected to come from an improvement in the primary income balance. For 2022 as a whole, we project a current account deficit of about 4% of GDP, declining further to 3.2% in 2023 on the back of weak domestic demand and a moderate increase in foreign sales. CPI (17.4%YoY) According to the flash estimate, CPI declined to 17.4% year-on-year in November from 17.9%YoY in October, as an expected month-on-month drop in gasoline prices was accompanied by an unexpected fall in energy prices due to cheaper coal. Still, core CPI grew to 11.3%YoY from 11.0%YoY in the previous month. Lower inflation in November is not yet a sign of a turnaround in the inflation trend. We see consumer inflation peaking above 20%YoY in February 2023 before declining to around 10%YoY in the fourth quarter of next year. You can read more in our 2023 economic outlook here. Czech Republic: Inflation accelerates again Surveys suggest that food prices in the Czech Republic continue to rise rapidly. While they rose by 3.0% in October, we expect a 2.1% month-on-month jump for November, which is still significantly higher than in the months leading up to October. On the other hand, we expect fuel prices to have fallen (1.7%). However, we believe this is the only item in the consumer basket that shows deflation in November. The main issue, as always, is energy prices. In October, the statistics office surprised with its aggressive approach to including the energy-saving tariff in the CPI, which led to a massive drop in inflation. This effect will last until December and will be replaced in January by the price cap, which we believe will have a similar effect on inflation. Unlike the price cap, the savings tariff allows energy prices to rise further. Therefore, we expect a slight increase in energy prices in November, but again, this is the main CPI item that may surprise. Thus, overall, we expect inflation to accelerate from -1.4% to 0.9% month-on-month, which should translate into a headline number rising from 15.1% to 15.9% year-on-year. Key events in EMEA next week Refinitiv, ING Read the article on ING Economics TagsEMEA Czech Repulbic Disclaimer This publication has been prepared by ING solely for information purposes irrespective of a particular user's means, financial situation or investment objectives. The information does not constitute investment recommendation, and nor is it investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument. Read more

The epidemic surprised Agora at the moment when it was just beginning to reap the fruits of long restructuring and many investments. According to our estimates, the company did not generate approximately PLN 430 million EBITDA in 2020- 2022. We believe that Agora should return to the pre-pandemic scale of operations and cash generation quite quickly. Next year will still not be easy, but the effects of investments in digitization and new areas will start to bring profits. The segment particularly affected by the epidemic was Helios cinemas, which basically lost a year of operation and are only now returning to normal. Although cinemas are already operating without restrictions, they are struggling with the effects of stagnant film production during the epidemic. Without good films, there are no viewers in cinemas, and in addition, two epidemic years allowed streaming platforms to consolidate their position, which raised doubts about the future of the big screen. However, the company presents analysis that contradict the thesis that viewers turn away from cinemas and when the expected title appears on the screens, there are no fewer people willing to watch it in cinemas than before the epidemic. The long-awaited sequel to Avatar is hitting theaters now, so this will be a good sampler. The studios are also announcing more movies for next year than this year. The epidemic also affected Agora's other key pillar, i.e. the AMS outdoor advertising network. This year there is a clear improvement and there is a good chance that, despite the economic slowdown, next year will be equal to the times before the epidemic. The attractiveness of this segment has recently gained a new dimension, which is related to another important segment of Agora, which is the Internet. Namely, it is entering a phase of perturbation due to the approaching end of a tool called cookies. This segment of Agora, like the entire online advertising market, benefited from the limited mobility of people and the transfer of activities to the Internet. However, this year his performance has deteriorated for the first time in years. The company decided in advance to change the nature of its product and service to prepare in advance for the new realities of online advertising. Next year, the first positive effects should be visible, and in 2024. the company is already promising a clearly positive impact of these changes. Importantly, this part of Agora's business related to YieldBird is global, and development opportunities go beyond the domestic market. We see the main source of improvement in Agora's results in the following years mainly in the three business segments mentioned above. A separate topic is the ongoing takeover of Eurozet, which should take Agora to a higher business level by leaps and bounds, and the delay in this process is more a political than economic issue. When discussing the factors affecting future results, it is worth mentioning an important and currently missing element of the Agora Group's revenues and profits. It's about the lack of advertising/revenues from the state administration and SP companies, on which it loses tens of millions a year. Possible changes on the political scene may change this unfavorable situation for the company. Analyst: Adam Zajler GPW’s Analytical Coverage Support Programme 3.0  

The report was prepared by Dom Maklerski BDM at the request of the WSE as part of the Exchange's Analytical Coverage Support Programme The company surprised positively with its results for the first time this year (Q3'22). The contract for the construction of an electronic barrier on the border with Belarus contributed significantly more than we expected. The company also booked PLN 4m of indexation of contracts. Management's outlook for Q4'22 at the earnings conference was optimistic. These factors raise our assumptions for 2022 and increase our valuation. At the same time, the company failed to win a contract for the construction of an electronic barrier on the border with Kaliningrad, which poses more challenges to filling the portfolio for 2023-24. We set our current target price at PLN 8.17, which implies an Accumulate recommendation. In Q3'22, the company managed to break the negative series of reporting disappointing results (which started in Q3'21). This was driven by strong revenues, a consequence of the higher-than-our-expected revenue recognition from the contract on the border with Belarus. Elektrotim also recognised in its results the achievement of contracts indexation. We associate the improvement in the cash position in Q3'22 mainly with a faster increase in trade payables over receivables (Q4'22 may be more demanding in terms of liquidity). Q4'22 results will be determined by the progress of the work and the recognised profitability on the barrier contract at the border with Belarus. The contract is likely to finish around the middle of Q1'23, but given the likely late reporting of Q4'22 results (end of April), the company should already recognise the target margin on the contract in Q4'22 (we estimate it was around 10% in Q3'22). After Q3'22, the Company's backlog amounted to PLN 711m, excluding the border contract, which is about PLN 500m, most of which is due in 2023 (we estimate about PLN 350m). The company failed to win a contract for the construction of an electronic barrier on the border with Kaliningrad, which investors believed quite strongly in November. The much smaller Telbud was selected in the tender. As of today, there is still no information about the final signing of the contract. We maintain that in the medium/long term, the company may benefit from increased spending on power grids and the military area (references and certificates held). Elektrotim's current capitalization is PLN 72 m. Net cash at the end of Q3'22 amounted to PLN 27m. At the same time, the company has struggled to stabilize its results in recent years. In 2017-21, it had a net loss three times, with the result ranging from PLN -15m to +17m (average for the last five years: PLN 0m, for the last 10 years: PLN 4m). The smooth implementation of the longterm strategy is also not favored by a rather fragmented shareholder structure. Analyst: Krzysztof Pado pado@bdm.com.pl tel. (0-32) 208-14-32 Dom Maklerski BDM S.A. ul. 3-go Maja 23, 40-096 Katowice GPW’s Analytical Coverage Support Programme 3.0  

We maintain our opinion that TIM is a good investment for difficult times in the economy. In our opinion, a proven business model (asset light), a safe balance sheet (net cash) and a competent Management Board allow us to expect that the company will also use the coming economic turmoil to further strengthen its market position. We expect a deterioration in financial results in 2023-24, but cash flows should remain stable. This will be conducive to maintaining transfers to shareholders. 3LP's ambitious development path may weigh on consolidated results. Bearing in mind the deterioration of the macroeconomic environment and the worse results of the logistics business, we have lowered our forecasts for 2023-24. Lower forecasts, changes in the parameters of the DCF model and valuation ratios of companies from the comparative group resulted in a reduction in the final valuation. The determined current value of the company (PLN 37.9/share) still gives a large growth potential. Slowdown is an opportunity for TIM We expect a decline in activity in the renovation and construction industry and industrial investments in the coming quarters. As a consequence, TIM's sales and margin will be lower. In our opinion, the company is well prepared for the downturn, both financially and operationally. In addition, the company's board of directors has great competence in running a business in difficult market conditions. We hope to strengthen TIM's market position at the expense of smaller competitors. Skillful management of working capital The company's management board pursues a very conservative liquidity management policy. Active warehouse management and quick adjustment of its level to forecasted sales is a characteristic feature of TIM. We believe that such an approach should work primarily in more difficult market conditions. Given the reduced sales dynamics, we expect a decrease in the value of inventories and freeing up some cash resources. Transfers to shareholders maintained TIM is a dividend company and we assume that it will remain so in the future. Currently, we identify two directions of transfer of funds to shareholders: dividend and buyback. The financial capacity allows us to maintain both of these streams in the years 2022-2024, and the recently launched share buyback should offset the projected decrease in the value of the dividend paid out. The development of the logistics segment costs money The 3LP company, despite an unsuccessful attempt to issue shares in order to obtain financing for new projects, did not stop the dynamic development. The increase in warehouse space will generate an increase in costs, which will be fully covered by revenues only after some time. We expect that in 2023-2024 the subsidiary responsible for the logistics business may generate negative results at the net level, thus affecting the reduction of consolidated profit. We estimated the value of TIM shares based on the following valuation methods: DCF (in total for the entire group: PLN 31.9) and comparative (separately for the commercial business: PLN 33.8 and logistics: PLN 8.0), which, after weighing the above valuations, allowed set the present value at PLN 37.9. VALUATION We calculated the value of one share of TIM SA as the average of the comparative valuation and DCF, with a weight of 50% each. On this basis, we set the current value of the shares at PLN 37.9. With the comparative approach, we valued the commercial and logistics business separately (in both cases using the ratio analysis), and the sum of the obtained values contributed to the total value. When selecting the group of companies for the comparative analysis, in the case of the commercial segment, we decided on domestic companies (operating in the wholesale and / or e-commerce segment) and foreign companies (distribution of products from the electrical engineering segment), and in the case of the logistics segment, due to the lack of equivalents on the WSE, we chose foreign entities. The lower valuation compared to our previous report is mainly due to the change in the parameters of the DCF model and lower ratios for peer companies. At the same time, we raised our forecasts for both the retail segment (TIM SA) and the logistics segment (3LP), which partially compensated for the decrease in valuation. Changes in forecasts are described later in the report. DCF VALUATION Assumptions: We rely on our own forecasts of consolidated results presented in this report, The value of cash flows discounted as at the date of publication of the report, Net debt as at 31/12/2021 in the amount of PLN 73 million (including lease liabilities under IFRS 16), Long-term growth rate after the forecast period equal to 0%. Share of equity in financing assets at the level of 80%. Effective tax rate of 20%. Risk-free rate of 6.8% (previously 6.7%), risk premium of 7.2% (previously 5.1%), beta of 1.0 (unchanged). Analyst: MichaÅ‚ Sztabler Equity michal.sztabler@noblesecurities.pl +48 22 244 13 03 GPW’s Analytical Coverage Support Programme 3.0  

Two programs in the clinical phase In this report, we update our valuation for Molecure. Our new FV is PLN 17.4ps, implying 7% upside vs. the current price. We maintain a HOLD recommendation. Molecure has reached an important milestone in the development of the OATD02 as the project has been approved to enter the clinical phase. In our opinion, OATD-02 is the most valuable asset in Molecure's pipeline, on our forecasts accounting for approximately 60% of the company's FV. By late 2023, Molecure should be able to provide early efficacy data, while we believe the partnering window for this project is already open. On the other hand, for OATD-01, we don't expect any major efficacy or partnering news anytime soon. In our view, the risk of uncertainty for this compound is likely to persist until the clinical trial report in 2025E, and it should be difficult to partner on this project before this milestone is reached. The uncertainty and lack of a short-term partnering perspective on this project limits the upside potential of the share price. OATD-01 to start phase II trial in sarcoidosis in 2023E. We assume that OATD-01 Phase II clinical trials in sarcoidosis will start next year and will last until 2025E. We assume a partnership contract in 2025E based on the results of Phase II clinical trials, with an upfront payment of USD 45m. We assume a probability of success of 10% due to the uncertainty surrounding Galapagos’ termination. The eventual success of Phase II clinical trials could remove the large discount from the OATD-01 valuation and unlock a large upside potential for the stock. OATD-02 has been given the green light for starting clinical trials. In November, Molecure received regulatory approval to begin clinical trials of OATD-02. The company plans to conduct a Phase I, dose-escalation study, on up to 30-40 patients recruited at three Polish centers with advanced or metastatic solid tumors. The company said that the cost of the study should amount to approximately PLN 11m, depending on the number of cohorts and patients. We assume that Molecure will sign a partnership agreement in 2024E after the completion of Phase I (cumulative success probability: 69%). However, in our opinion, the partnering window is already open and the company could commercialize OATD-02 earlier, in Phase I, which we see as a potential upside to our valuation. Share issue risk looms in the mid-term. During the last quarterly presentation, Molecure said that it has secured funding for 20 months, until May 2024, i.e. before the expected completion of the next clinical phases of OATD-01 and OATD-02. We believe that Molecure will first look for non-dilutive financing: grants for the OATD-01 clinical trial, venture capital financing or partnering (OATD-02 or one of the early projects), while a new share issue is the last resort. Recommendation and valuation. We reiterate our HOLD rating for Molecure with a new FV set at PLN 17.4, implying 7% upside vs. the current price. Analyst: Łukasz Kosiarski lukasz.kosiarski@ipopema.pl + 48 882 108 382 GPW’s Analytical Coverage Support Programme 3.0  

Poland's external current account balance improved in October on the back of seasonally higher transfers from the EU budget. The merchandise trade gap remains large but seems to have stabilised   Poland's current account deficit was €0.5bn in October, clearly below the consensus of €0.8bn and quite close to our forecast of €0.3bn, following a deficit of €1.6bn in September. On a 12-month basis, we estimate that the balance deteriorated slightly to about -3.9% of GDP from -3.7% of GDP in September (we recorded a sizable surplus in October 2021). The goods trade deficit was €2.3bn in October, from €2.1bn in September. In cumulative terms, the trade balance deteriorated to about -4.0% of GDP from -3.8% of GDP a month earlier. A high surplus in the services balance of €3.1m fully offset a gap in primary income of €1.3bn and a slightly negative secondary income balance of €0.1bn. The seasonally low deficit in primary income was due to the high inflow of EU funds (more than €1.6bn, according to the National Bank of Poland). Foreign trade turnover, calculated in euros, is growing at a rate close to 25% year-on-year, but this is mainly due to increases in export and import transaction prices. The annual growth rate of merchandise imports (24.6% YoY) only slightly exceeded that of exports (23.7%), and this was the smallest difference recorded since April 2021. Polish companies are taking advantage of opportunities to increase foreign sales due to the weakening zloty and the easing of tensions in global supply chains, in particular in the automotive industry. The NBP communiqué states that in October, export growth was driven by sales in the automotive industry benefiting from improved availability of key components, which boosted the European automotive sector. This was reflected in both exports of vehicles (cars, vans and road tractors) as well as spare parts (including batteries and engines). Food also recorded a sizeable expansion. On the import side, a slowdown in import growth was particularly visible in iron and steel and plastics, which indicates weak domestic demand. Large increases were recorded in imports of fuel, due to both continued high prices and rising volumes (the value of coal imports was a record high, while imports of oil was the highest since 2019). Today's data is neutral for the zloty exchange rate, with the current account deficit turning out to be slightly lower than the consensus. However, the zloty exchange rate has recently been influenced by global factors as well as this week's decisions on interest rate hikes by the US Federal Reserve, European Central Bank and other central banks, and expectations on unlocking EU funds from the Recovery Fund. We expect a gradual widening of the current account deficit in the reminder of the year, and forecast a 4.2% GDP deficit for 2022 as a whole. Our latest Directional Economics presents long-term projections for Poland. Current account balance and its components Source: NBP data. Read this article on THINK TagsPoland zloty Disclaimer This publication has been prepared by ING solely for information purposes irrespective of a particular user's means, financial situation or investment objectives. The information does not constitute investment recommendation, and nor is it investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument. Read more

In this report, we update our forecasts and valuation of Synektik following the 4Q21/22 results release. Based on new forecasts of financial results and FX rates and the current risk-free rate, we set our Fair Value at PLN 42.0ps, which implies 23% upside potential to the current share price. We maintain our Buy recommendation. Synektik is one of our top picks in the healthcare & biotech sector; the company is entering a period of soaring financial results, in 2022/23 we assume PLN 44m in adjusted EBITDA, and a significant improvement in cash generation thanks to higher profits and lower working capital requirements. Synektik is currently valued at 5.9x EV/EBITDA for 2022/23E, which in our opinion is an undemanding level for a growing business with an increasing share of recurring revenues and development prospects for surgical robots, especially on the Polish market. Accumulation of contracts for da Vinci robots. Over the past few months, Synektik has issued a number of announcements concerning the submission of offers and signing of contracts for the supply of da Vinci surgical robots in all three of its markets. In 4Q21/22 the company booked four deliveries, while another seven systems should be booked in 1Q22/23. The high demand on the Polish market, but also from the commencement of reimbursement of procedures using robots by the National Health Fund from April 2022. On the other hand, on the Czech market, where the average utilization of devices is much higher than in Poland and close to its maximum level, the growth in the number of treatments results in further purchases from new as well as existing users. Results momentum in 2022/23. Following the release of 4Q21/22 results with stronger than expected EBITDA margins in the medical equipment and IT segments, we upgraded our forecasts for 2022/23. In 1Q22/23, we assume the sale of seven da Vinci devices and the completion of a large contract for delivery of a ZAP-X system to a hospital in Olsztyn, which, according to our preliminary estimates, should translate into over PLN 125m in revenues and approximately PLN 20m in adjusted EBITDA. For the entire FY22/23, we estimate PLN 299m in revenue, PLN 43.8m in adjusted EBITDA and PLN 17.6m in net profit. Valuation. We value Synektik using a 10-year DCF model. Taking into account the new financial and FX forecasts and the current risk-free rate, we are upgrading the company's Fair Value to PLN 42.0ps from PLN 39.9ps. The new valuation implies 23% upside potential relative to the current share price, and therefore we maintain our Buy recommendation. Analyst: Łukasz Kosiarski lukasz.kosiarski@ipopema.pl + 48 882 108 382 GPW’s Analytical Coverage Support Programme 3.0  

We expect Pointpack to experience significant changes in 2023E, with the recognition of a substantial part of the P2A contract with Polish Post in the firm’s financial consolidated results, effectively boosting revenues, EBITDA and the bottom line. The uptick is likely to look spectacular on a y/y nominal basis (as well as on standalone 2023E multiples with 2023E EV/EBITDA at 1.0x) and may attract some attention. However, we expect the overall effect to be quite limited (we estimate the total NPV of the P2A deal at only PLN 0.5m). Due to elevated costs in 2022E we have cut our net profit forecast to PLN 3.5m (-43% y/y) for 2022E. On the other hand, we have increased our net profit forecasts to PLN 11.0m for 2023E and PLN 10.2m for 2024E (up from PLN 8.5m and PLN 9.5m previously). Our base-case scenario does not assume an extension of the P2A contract with Polish Post, hence we still expect to see the first dividend in 2024E and we have increased our 2024E DPS forecast to PLN 9.86ps (DY of 30.9%), up from PLN 7.60ps previously. Moreover, we highlight the end of the pilot program between Zabka and InPost, which we believe dispels the risks related to InPost’s entrance to the PUDO segment. With our positive outlook on the core business, we maintain a BUY rating and set our FV at PLN 65.00ps (vs. PLN 55.00ps previously), which implies 104% upside. On our forecasts, Pointpack trades at a P/E of 3.2x/3.5x for 2023E/2024E. ‘ Two sides of the P2A coin. The contribution from P2A to Pointpack’s 2023E results look astonishingly strong: we estimate the P2A’s revenues at PLN 131.9m and EBITDA at PLN 14.4m next year (after some delays from 2022E). We think P2A’s contribution should be considered in a broader context, namely: 1) the effective price paid for a 51% stake (i.e. PLN 10m paid to one of P2A’s stakeholders for bonds issued by P2A on top of an immaterial few PLN k for equity); 2) Pointpack’s roughly 51% stake in P2A, which means that consolidated EBITDA is not the best proxy for the project’s results attributed to Pointpack; there is also the consideration of dividend payments to P2A’s minority stakeholders; and 3) the surprisingly high cost of financing (i.e. a fixed 15% on loans drawn by Pointpack). In total, we estimate the P2A project’s NPV (excluding working capital changes) for Pointpack at only PLN 0.5m, assuming no extension of the contract with Polish Post; this fades in comparison with our forecast for the P2A project’s consolidated EBITDA at PLN 14.4m for 2023E. Improving trend of parcel volumes is a good sign. The volume of parcels handled by PUDO points within Pointpack’s network amounted to 6.8m in 3Q22, which implies +37% growth in the period versus +29%/+11% y/y in 2Q22/1Q22 (1Q22 was not fully comparable as it was negatively affected by the Russian invasion of Ukraine). Pointpack’s CEO noted recently that he expects to see record volumes in 4Q22E, which should also translate into a decent y/y dynamic. With the slight slowdown in the macro environment, we would be positive about any potential improvement in the dynamics. Analyst: Marcin Nowak marcin.nowak@ipopema.pl + 48 22 236 92 44 GPW’s Analytical Coverage Support Programme 3.0  

Although we still perceive ATM Grupa as a good long-term premium content exposure, there are limited positive triggers within the core business in the short term. We expect the company’s core media business to adapt to the curbed pipeline of premium TV series content and lower comparable demand for usual TV content anticipated in 2023E. Moreover, after the payment of a PLN 0.08ps advance dividend in December, our forecast of a total 2023E DPS of PLN 0.31ps (DY of 8.8%) looks neutral vs. the total paid 2022 DPS of PLN 0.28ps (combined with the advance payment). On the other hand, we are negative about the company’s decision to expand its real estate operations with the purchase of a SPV in Sweden for SEK 25.7m. The company now owns a land plot that will allow the construction of a project roughly five times the size of the one that recently ended, to be realized in three to five stages. The company is also contributing PLN 16.5m to the ATM Baltic SPV (ATM Grupa holds a 50% stake) for the Sianozety project on the Baltic Sea coast. In our view focusing on the core business might be more beneficial over the long term and would be welcomed by investors. Overall, we forecast revenues at PLN 238m/271m (-10%/+14% y/y) in 2023E/2024E (excluding estimated PLN 46m from the Swedish project in 2022E we forecast 2023E adj. top line dynamic at +9% y/y) and net profit at PLN 37m/44m (-5%/+21% y/y), down from PLN 43m/51m assumed earlier. We maintain our BUY recommendation and increase our FV to PLN 4.50 per share (implying 27% upside) from PLN 4.40ps. On our forecasts, ATM Grupa trades at a P/E of 8.1x/6.7x for 2023E/2024E. Dark clouds gather on the premium pipeline. We remain optimistic about the demand for premium content over the long term, as we believe OTT platforms in general will gradually increase in the mix of local market content. However, the outlook for 2023E seems uninspiring. With the completion of “Lovzone” in 2022 (ordered by Netflix) and the uncertain timing of the “Black Dog” TV series for Viaplay (delayed from 2022) the company’s short-term pipeline of TV series looks relatively thin on the ground in terms of anchor projects. Within movies, ATM Grupa has one movie scheduled for release in 1Q23, but the subsequent pipeline is limited according to management comments made after the 2Q22 results. Overall we have reduced the number of premium TV series to be produced from 1.6x/2.8x to 1.3x/2.0x in 2023E/2024E respectively, but we maintain our longterm assumption of 5x premium TV series annually. Potential disposal of Boombit remains uncertain. In our base scenario we do not include the potential disposal of ATM Grupa’s stake in Boombit (4.0m shares, 29.63% of Boombit’s equity; the strategic review process started in November 2021). The likelihood of the disposal taking place declines with each passing month, in our view, and the company does not have to push for the transaction if the conditions are not ideal, as ATM Grupa has a healthy balance sheet and a relatively low need for cash to finance core content operations. Analyst: Marcin Nowak marcin.nowak@ipopema.pl + 48 22 236 92 44 MichaÅ‚ Wojciechowski michal.wojciechowski@ipopema.pl + 48 22 236 92 69 GPW’s Analytical Coverage Support Programme 3.0

In 2022 the company released 66 games, down from 83 titles released in 2021; however, likely thanks to a still strong back catalogue, Ultimate Games will be able to increase revenue to PLN 31.8m this year (up 26% y/y), according to our forecast. We also expect a slight decline in profitability (EBIT margin at 20%, down 4pp) driven by expanding costs of brought-in services (likely driven by the developers’ revenue share and in general higher costs of work). In the forecast for the next year, we tentatively assume no breakout hit (we believe both Ultimate Hunting and Thief Simulator 2 could arrive in 2024E); nevertheless, with expected multiple smaller releases and a solid back catalogue, we expect Ultimate Games to improve revenues by 5% y/y, up to PLN 33.4m and adj. net profit to PLN 6.4m, up 9% y/y. On our forecasts, the company trades at a P/E of 14.6x/13.3x in 2022E/23E, at a high, double digit discount to foreign peers. We maintain our HOLD recommendation and decrease our FV to PLN 15.5 (5% downside), due to weaker than expected performance of games, anticipated longer production cycles as well as lower profitability. Ultimate Fishing Simulator 2. On 22 August Ultimate Games released Ultimate Fishing Simulator 2 Early Access. The game reached 19th place on Steam’s Top sellers list and achieved the peak of concurrent players at 924, which represents an 140% increase over performance of its predecessor released in November 2017. What’s important, following its launch, the game has been systematically improving its reception – as of now the average user rating is at 79% positive on Steam with the most recent ratio at 94% positive (vs. 90% for UFS1). We believe this suggests its potential for a long lifecycle. In our forecast for 2023E, we assume UFS2 to sell 60k copies. Ultimate Hunting and Thief Simulator 2. We move our expectations for one top selling title from the group to be released in 2024E and subsequent years and achieve 150k copies sold in the initial 12M (vs. previously expected as of 2023E). We believe that among the potential top performing titles are Ultimate Hunting as well as Thief Simulator 2 (however, in the case of this title, Ultimate Games will be more beneficial on a console port than on the PC version). Potential Switch port deals for top performing PlayWay titles remains an upside story for the company. Dividend. We expect Ultimate Games to keep high dividend payments with DPS of PLN 0.85/0.92 in 2022E/23E (DY of 5.2%/5.6% respectively). Analyst: MichaÅ‚ Wojciechowski Michal.Wojciechowski@ipopema.pl + 48 22 236 92 69 Marcin Nowak Marcin.Nowak@ipopema.pl GPW’s Analytical Coverage Support Programme 3.0  

On Thursday, December 15 Votum revealed their monthly reports (link) with key indicators for the segment of pursuing claims from abusive clauses in FX mortgage loan agreements for November (number of court sentences and acquired contracts) and December (planned number of court hearings). The court sentences in the segment of pursuing claims from abusive clauses in FX mortgage loan agreements. In November the courts of both instances handed down 930 sentences, including 768 in the courts of the first instance (96% of these sentences stated the invalidity of agreements with merely 1% that dismissed claims in their entirety) and 162 in the courts of the second instance (90% stating the invalidity of agreements). November has been the month where the total number of rulings increased further (18% growth versus October). The number of first as well as second instance judgments was at a record level in the period. A number of court hearings related to pursuing claims from abusive clauses in FX mortgage loan agreements. In December Votum will attend 2,366 court hearings (13% lower mom) related to pursuing claims from abusive clauses in FX mortgage loan agreements. On a month-to-month basis, we have a seasonal drop here due to the holiday season in December. Nevertheless, compared to December last year, which takes into account the effect of seasonality, the number of meetings will be more than twice as high, which is a further improvement in dynamics. A high number of hearings in December naturally means a high number of judgments that should appear this month. New clients acquired in the segment of pursuing claims from abusive clauses in FX mortgage loan agreements. In November a number of new contracts stood at 1,233 (67% up yoy). Cumulative number of new signed contracts year-to-date (January-November) with customers amounted to 9,719, which constitutes a 31% yoy growth. This is an excellent sales result. The Management Board of Votum in a press comment indicates that two factors have recently had a catalysing impact on decisions to become a client. The first is the process of resolution at Getin Noble Bank, and the second is the lack of trust in settlement proposals. As the press communique indicates, Votum currently acquires over 60% of new customers through referrals. In our opinion, the group of existing customers is growing into the main source of new customers. Next year, the average monthly acquisition target was set at 1,000 contracts, which, according to our estimates, would mean a 13% increase in customer acquisition (in the January-November period versus this year data). This report is prepared for the Warsaw Stock Exchange SA within the framework of the Analytical Coverage Support Program. 3.0. 686/2022/AR Analyst MichaÅ‚ Sobolewski, CFA, FRM GPW’s Analytical Coverage Support Programme 3.0

Q3'22 for the company was yet another period of declining profitability. The gross margin on sales in Q3'22 was 13.3% (vs an average of 20% over the last eight quarters). Sales volumes also fell. In addition to macro factors and the associated drop in demand, Relpol had a problem with its sales IT system in August. Despite the lower number of relays sold, the company reported higher revenue year-onyear by 4%. This was a result of, among other things, continued product price increases as well as foreign exchange rates. Continued cost pressures and long working capital turnover have a negative impact on valuation. For this reason, we reduce our target price to PLN 5.62 and change our recommendation to HOLD. The company still faces high costs and the effects will also be visible in '23, despite partially offsetting them by raising product prices. This is mainly due to higher electricity prices for next year, material costs and an increase in employee costs (significant minimum wage increase in 2023). High working capital requirements and higher debt also affect the company's valuation. We do not see the potential for a reduction in the net debt/EBITDA ratio by the end of '23 due to ongoing development work, high inventories and high levels of receivables turnover. The company's products remain indispensable in many applications, but 2023 in terms of results is unlikely to surprise us with positive dynamics. We assume y/y revenue will decline and adjusted net income will be lower than in '22. Nonetheless, we believe the company will remain profitable and will be able to take full advantage of the increased production potential in the future. Despite the weaker economy, demand for certain categories of relays is growing. High-current (solar) relays are in high demand both nationally and internationally. This has to do with the acceleration of the energy transition in Europe. Products that find their way in industrial automation continue to sell very well, and the growth dynamics of this market should be maintained. On the other hand, we are seeing a decline in demand for miniature relays, including those used in building automation and by retail customers. We believe that the low demand for these products will continue in '23, but with increased investment among developers in the following years, demand will slowly start to recover. Main risks: 1) escalation of the war in Ukraine (the company has returned to assembly in Ukraine on a limited basis. Escalation of the war could force the company to stop production altogether); 2) high prices of strategic raw materials: copper and silver and problems with the availability of components 3) decline in the EUR / PLN exchange rate (the company exports> 70% of its products.); 4) extraordinary increase in labor costs, the model takes into consideration 8% y/y growth; 5) technological risk: displacement of electromagnetic relays by semiconductors (both have advantages / disadvantages, but are substitutes); 6) high concentration of customers (3 main clients of the company may be responsible for 30-40% of sales); 7) long operating cycle and high demand for working capital); 8) economical slow-down (current views and PMI on European market are showing a slow-down in future periods; 9) the risk of competition (the company is one of the largest producers of relays in Europe, but with a relatively low market share, Chinese competitors might try to get more market share on European market); The report was prepared by Dom Maklerski BDM at the request of the WSE as part of the Exchange's Analytical Coverage Support Programme Kajetan SroczyÅ„ski kajetan.sroczynski@bdm.pl tel. +48 (032) 208 14 38 Dom Maklerski BDM S.A. ul. 3-go Maja 23, 40-096 Katowice GPW’s Analytical Coverage Support Programme 3.0

Event: Appendix to credit agreement. The Company informed that it signed an appendix with banks for the financing of the purchase of Lotos logistic assets. The appendix lowered the loan from PLN 360 million to PLN 320 million. The Company has decided to engage a higher amount of own funds to finance the transaction.   Expected impact: Neutral. The news confirms the good situation of the Company and it confirms that the SPO is a very improbable scenario currently. This report is prepared for the Warsaw Stock Exchange SA within the framework of the Analytical Coverage Support Program 3.0. 693/2022/AR Analyst Łukasz Prokopiuk, CFA GPW’s Analytical Coverage Support Programme 3.0