Ciech S.A.

Regulatory Filings • Dec 16, 2022

Subject:Sale of CO2 emission allowances and conclusion of hedging transactions.

The Management Board of CIECH S.A. (the _quot;Company_quot; or_quot;Issuer_quot;) with reference to current report No. 38/2021 of December 29,2021, herewith informs that on 16 December 2022, CIECH Soda DeutschlandGmbH GmbH _amp; Co. KG ("CSD") and CIECH Energy Deutschland GmbH ("CED";jointly "Subsidiaries") sold together467.700units of CO2emission allowances(_quot;Sale of Allowances_quot; and "EUA Units", respectively), originating fromfree allocation and from units previously purchased on the market. Themarket value of EUA Units sold amounts to EUR 38.9 million (equivalentof PLN 182.7 million) as per current value of EUA Unit, i.e. EUR83,25/EUA(equivalent of PLN390,72).

At the same time, the Subsidiaries and Ciech SodaPolska S.A. concluded agreements securing the purchase of467.700units of CO2emission allowances onthe forward market, with a settlement date in April 2023 (_quot;Hedging_quot;).The Hedging settlement dates fall before the deadline for the requiredredeeming of the EUA Units intheamounts corresponding to the CO2emissions for the year 2022.

The Sale of Allowances and theHedging(jointly: _quot;Transaction_quot;) have an impact on the corresponding increase inthe level of cash in CSD and CED and have an impact on reducing theconsolidated net debt of the CIECH Group by approx. PLN 182.7 million,calculated as at December 31, 2022. The Transaction has an insignificantimpact on the level of consolidated EBITDA.

Legal basis:Article17.1 of the Regulation of the European Parliament and of the Council(EU) No. 596/2014 of 16 April 2014 on Market Abuse (the Market 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).