Current Report No.: 3/2022

Date of preparation: 02.03.2022

Abbreviated name of the Issuer: CIECH S.A.

Subject: Selected estimated consolidated results of the CIECH Group for 2021. 

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

Report:

The Management Board of CIECH S.A. with its registered office in Warsaw (the “Issuer”), in reference to the forecast of the CIECH Group's results for 2021 (the “Forecast”), published in Current Report No. 12/2021 on 22 April 2021, herewith presents selected estimated consolidated results of the CIECH Group achieved in 2021. 

Estimated consolidated sales revenues for 2021 amounted to PLN 3.459 million and were higher by approx. PLN 483 million (16 %) than in 2020. The Forecast assumed consolidated sales revenues at a level of PLN 3.125 million – PLN 3.285 million.

Estimated consolidated adjusted EBITDA for 2021 amounted to approx. PLN 724 million and was higher by PLN 139 million (24 %) than in 2020. The Forecast assumed the consolidated adjusted EBITDA at a level of PLN 700 million – PLN 735 million.

Consolidated cash flow from operating activities amounted to PLN 1.150 million in 2021 and was higher by PLN 383 million (50 %) than in 2021.

Consolidated net debt (calculated according to a methodology adopted in loan agreements) stood at PLN 1.177 million, i.e. PLN 354 million (23 %) less than at the end of 2020, and the net debt/EBITDA ratio was 1,63x (previous year: 2.45x).

The Management Board of the Issuer informs that due to the increase in value generated by the CIECH Group in 2019-21 at a level enabling it to create and pay out a bonus pool, as defined in the incentive programme for the management of the CIECH Group (the “Incentive Programme”) – a specific provision (tied-up reserve) (the “Provision”) will be created. The estimated value of the Provision is approx. PLN 53 million. The Provision was included in the estimated results of the CIECH Group. The final amount of the Provision will be determined based on the consolidated financial statements of the CIECH Group for 2021 audited by a certified auditor. The bonus pool, with a value equal to the value of the final Provision, will be paid out in 2022-2024, in equal parts each year. The Issuer advised on the Incentive Programme in its Current Report No. 7/2019 on 26.02.2019.  

The final, consolidated results of the CIECH Group for 2021 will be published by the Company on 24 March 2022 in the consolidated financial statements of the CIECH Group audited by a certified auditor. 

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).

Signatures of the Company’s representatives:

Dawid Jakubowicz – President of the Management Board  

Jarosław Romanowski – Member of the Management Board