Current Report No.: 18/2019

Date of preparation: 27.05.2019

Abbreviated name of the Issuer: CIECH S.A.

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

Subject: Assessment of the application 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 "Issuer" or “Company”) herewith informs that on 27 May 2019, the Supervisory Board of the Company, upon review of the application by the Management Board of the Company to be proposed at the Annual General Meeting, as expressed in Resolution of the Management Board of CIECH S.A. of 22 May 2019, on the allocation of the net profit generated by the Company in 2018, adopted a resolution on recommendation to the Annual General Meeting of distribution of the net profit of the Company for 2018, to the value 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 in the following manner:

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 the supplementary capital of the Company.

The Issuer published information on the approval by the Management Board of the Issuer of a resolution on the proposal of the allocation of the net profit of the Issuer for the financial year 2018 in its current report no. 16/2019 of 22 May 2019.

At the same time, the Company informs that the final decision on the allocation of the net profit for 2018 will be made by the Annual General Meeting of CIECH S.A.  

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