Current Report No. 34/2016

Date of preparation: 07.11.2016

Abbreviated name of the Issuer: CIECH S.A

Subject: Information on the intention to recognise, in the consolidated financial statements , a single event affecting the consolidated result of CIECH Group for Q3 2016

Legal basis: Article 17 paragraph 1 of the MAR - inside information

Contents of the report:

The Management Board of CIECH S.A. with its  egistered office in Warsaw (the “Issuer”) announces that today a decision has been made to recognise, in the consolidated financial statements of CIECH Group for Q3 2016 (the “Consolidated Financial  Statements”), which are currently being prepared by the Issuer, a non-recurrent, non-monetary event affecting the Consolidated Financial Statements.

Due to the fact that CIECH Soda Polska S.A. (a subsidiary of the Issuer) fulfils the conditions to qualify for public aid in the form of exemption from corporate income tax in respect of its business operations in the area of the Pomeranian Special Economic Zone, and the fact that the estimates related to the possibility of taking advantage of this exemption have been substantiated, CIECH Soda Polska  S.A. is going to recognise a deferred tax in the financial result for Q3 this year.

Following the principle of prudence, the maximum amount of such deferred tax subject to recognition has been decreased in order to account for the uncertainty of estimates related to the available limit of public aid for the so-called single investment project; therefore, the amount of the recognised asset is approximately PLN 50 million. 

The Issuer estimates that the impact of the aforementioned event on the consolidated net result of CIECH Group for Q3 will also amount to approx. PLN 50 M. 

In Q1 and Q2 this year, CIECH Group generated a net profit of PLN 102,238 thousand and PLN 162,079 thousand respectively. 

The Consolidated Financial Statements will be published on 14 November 2016.

Legal basis: article 17.1 of the Regulation of the European Parliament and of the Council (EU) No. 596/2014 of 16 April 2014 on Market Abuse (the Market Abuse Regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC (Official Journal of the European Union L No. 173, p. 1) (the “MAR”).

Signatures of persons authorised to represent the company:

Maciej Tybura - President of the Management Board
Artur Król - Member of the Management Board