Current Report No.: 6/2019

Information on reversal of an asset revaluation write-off

Current Report No.: 6/2019

Date of preparation:

Abbreviated name of the Issuer: CIECH S.A.

Subject: Information on reversal of an asset revaluation write-off

Legal basis: Art. 17.1 of the MAR – inside information

Text of the Report:

The Management Board of CIECH S.A. (the “Company”) informs that as part of the work on the separate financial statements for 2018, it performed tests for the impairment of the Company's participation in its subsidiaries. Based on the analyses, the Management Board of the Company decided to reverse all historical impairment write-offs for its shares in SDC GmbH in the amount of approx. PLN 260 million. The value in use, estimated based on the discounted cash flow model, was used as the recoverable value, taking into account the assumptions resulting from the market environment, in particular, the prices of soda products, the electricity market and the prices of raw materials.

The amount of reversal of the write-off will increase the Company’s separate net financial result for 2018, however, it will not affect the consolidated net profit of the CIECH Group for 2018.

Due to the fact that the amount of the reversed write-off is subject to examination by an auditor, it may still change. The final amount of reversal of the write-off will be presented in the Company's separate annual financial statements for 2018, the publication of which is scheduled for 26 March 2019.

The aforementioned reversal will be a non-cash operation.

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 the Company’s representatives:

Dawid Jakubowicz – President of the Management Board 

Artur Osuchowski – Member of the Management Board

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