Ciech S.A.

Report Publication Announcement • Nov 6, 2023

Current Report No. 63/2023

Date of preparation:6.11.2023

Abbreviated name of theIssuer: CIECH S.A.

Subject:_#160;Informationon decision of tax authorities regarding corporate income tax of theIssuer

Legalbasis: Art. 17.1 of the MAR - inside information

The Management Board of CIECH S.A. (the "Company"or "Issuer") informs that today it received the decision(the "Decision") of the Head of the Małopolski Customs and Tax Office inKrakow (hereinafter: _quot;Head of MCTO_quot;). In the issued Decision, the Headof MCTO found that the Company did not have the right to recognize thetax expense related to all expenses incurred for the purchase of sharesin a subsidiary, which arose in connection with the sale of these sharesin 2016. Therefore, according to the Head of MCTO, the Companyincorrectly determined its corporate income tax liability for 2016.

The amount of tax liability resulting from thereceived Decision is PLN 2.9 million, and the interest on arrears as atthe date of receipt of the decision is approximately PLN 1.5 million.The disputed case may also affect tax settlements for 2018-2020 due to apossible change in the amount of tax losses settled in these years. Thetotal potential tax liability resulting from the above may amount toapproximately PLN 31.5 million plus interest on arrears (currentlyapproximately PLN 14.5 million).

The decision determining the amount of the taxliability in the amount of PLN 2.9 million is non-final and cannot beenforced. Nevertheless, the Company will consider the appropriateness ofpaying the amount specified in the Decision and default interest,despite the fact that the Issuer and its tax advisor do not agree withthe position of the Head of MCTO, and the Company intends to prove itscase in the event of further questioning by the Head of MCTO of theright to recognize the entire tax expenses referred to above.

The Issuer advised on the above matter in currentreport No. 55/2023 of July 20, 2023. The audits in the case in questionwere described in Note 9.2 of the consolidated report of the CIECH Groupfor 2022and in point 2.13 of the consolidatedreport of the CIECH Group for the first quarter of 2023 in the section"Auditsof tax settlements in the CIECH Group and related contingentliabilities".

Legal basis:Article17.1 of Regulation of the European Parliament and of the Council (EU)No. 596/2014 of 16 April 2014 on Market Abuse (the Market AbuseRegulation) and repealing Directive 2003/6/EC of the European Parliamentand of the Council and Commission Directives 2003/124/EC, 2003/125/ECand 2004/72/EC (Official Journal of the European Union L No. 173, p. 1).