Ciech

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Current Report No.: 16/2019

Recommendation of the Management Board of CIECH S.A. regarding the allocation of profit for 2018

Current Report No.: 16/2019

Date of preparation:
 22.05.2019

Abbreviated name of the Issuer: CIECH S.A.

Legal basis: Article 17(1) of the MAR – inside information

Subject:
 Recommendation of the Management Board of CIECH S.A. regarding the allocation of profit for 2018


Text of the Report:

The Management Board of CIECH S.A. (the "Company" or "Issuer") informs that on 22 May 2019, it adopted a resolution containing its recommendation to the Annual General Meeting of the Issuer on the manner of allocation the Company's net profit of PLN 270,611.852.97 (in words: two hundred and seventy million six hundred and eleven thousand eight hundred and fifty-two 97/100 zlotys) for the financial year 2018, namely:

  1. PLN 17,181,990.27 (in words: seventeen million one hundred and eighty-one thousand nine hundred and ninety 27/100 zlotys) to cover the loss recognised as an adjustment in the opening balance;
  2. PLN 253,429,862.70 (in words: two hundred and fifty-three million four hundred and twenty-nine thousand eight hundred and sixty-two 70/100 zlotys) to be allocated to to the supplementary capital of the Company.

The loss shown in item 1, recognised as an adjustment in the opening balance, is a consequence of the Company’s change of its accounting policy in connection with the Issuer’s application of International Financial Reporting Standard 9 (IFRS 9) as of 1 January 2018. Details of the above change and the resulting consequences (recognition of a loss) are described in item 1.5.1 (IFRS 9 "FINANCIAL INSTRUMENTS") of the Company's financial statements for 2018 of 26 March 2019.

The recommendation of the Management Board of the Company concerning the allocation of the amount shown in item 2 to the supplementary capital follows the analysis and assessment of the current and future financial and liquidity position of the CIECH Group and is related to the implementation of the CIECH Group’s Strategy for 2019-2021, the adoption of which was announced by the Company in its current report no. 34/2018 on 5 December 2018.

At the same time, the Management Board of the Issuer informs that it intends to request the Supervisory Board of the Company to evaluate the motion addressed to the Annual General Meeting of the Company regarding the allocation of profit for 2018, in accordance with this recommendation of the Management Board of the Issuer.  


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 persons representing the Company:

Dawid Jakubowicz – President of the Management Board

Artur Osuchowski – Member of the Management Board


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