Current Report No.: 4/2023

Date of preparation: 31.01.2023

Abbreviated name of the Issuer: CIECH S.A.

Subject: Filing of a lawsuit by a subsidiary of CIECH S.A. – CIECH Salz Deutschland GmbH against EVATHERM AG

Legal basis: Article 17.1 of the MAR – confidential information.

Report:

The Management Board of company under trade name CIECH S.A. (“Company” or “Issuer”) hereby informs that on January 31, 2023, it received from the subsidiary of the Issuer – CIECH Salz Deutschland GmbH („ CSD”) an information that CSD filed a lawsuit (the “Lawsuit”) with the Magdeburg District Court against EVATHERM AG (“Contractor”) for the payment of approx. EUR 20 million (including interest and costs of proceedings).

The lawsuit was filed due to improper performance of the contract, delayed commissioning of the installation and problems with the operation of the installation and the production process at the CSD evaporated salt plant located in Staßfurt, Germany (“Plant”) launched in 2021 (about which the Issuer informed by way of current report no. 16/2021 dated May 19, 2021), resulting in additional costs incurred by CSD and a reduced level of evaporated salt production compared to the level assumed by the CIECH Group. Until the date of this report, despite numerous attempts to repair the technical installation, in the opinion of CSD, the defects in the installation have not been removed by the Contractor.

On the basis of currently available information, the Issuer cannot predict the outcome of the legal proceedings. The Issuer will provide further information on the next stages of the legal proceedings in a separate report(s).

At the same time, with reference to the current report no. 16/2021, the Issuer indicates that the Plant is currently using approx. 60 % of the expected production capacity, which is influenced, among others, by the technical problems described above, also affecting the increase in production costs.

The Issuer indicates that CSD is currently implementing a number of steps to rectify the technical problems described above and to restore the production of evaporated salt to the level originally envisaged by the CIECH Group. The company plans to implement these measures by the end of 2023. At the same time, CSD is in the process of signing contracts with salt recipients.

Legal basis: article 17.1 of the Regulation of the European Parliament and of the Council (EU) No. 596/2014 on market abuse (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 of 2014, L 173/1, as amended).

Signatures of the Company’s representatives:

Dawid Jakubowicz – President of the Management Board

Jarosław Romanowski – Member of the Management Board