Ciech S.A.

Legal Proceedings Report • Dec 14, 2022

The ManagementBoard of CIECH S.A. (the "Company" or "Issuer")informs that today the Supreme Administrative Court in Warsaw (the "NSA")announced 3 (three) judgements in cases regarding CIECHSoda Polska S.A., CIECHCargo sp. z o.o.and CIECHPianki sp. z o.o._#160;(jointlyas "Subsidiaries"), in which it dismissed the cassationappeals of the Director of the Tax Administration Chamber in Bydgoszcz(the "Second Instance Authority"). Thus, it upheld thejudgments of the Provincial Administrative Court in Bydgoszcz (the "WSA_quot;)of December 11, 2019, repealing 3 decisions (the "Decisions")of the Second Instance Authority of August 27, 2019. In the decisionsissued by it, the Second Instance Authority challenged the right of theSubsidiaries to settle the tax loss due to participation in apartnership, an indirect subsidiary of the Issuer ("Partnership")and determined the tax arrears of theSubsidiaries due to corporate income tax for 2015 in the total amount ofPLN 8,2 million.

With regard tothe right to settle the loss on account of participation in thePartnership, which was challenged for 2015, in relation to theSubsidiaries mentions in this Report, analogous tax proceedings are alsopending against other subsidiaries of the Issuer for 2015 and inrelation to one of them - for 2016.

The Issuerinformed about these cases in its Current Reports Nos.22/2019of 06.06.20219,38/2019of 09.09.2019,49/2019of11.12.2019,12/2020of13.03.2020,37/2021of02.12.2021,22/2022of01.06.2022and 42/2022 of 17.11.2022, and in Current Report No. 24/2019 of27.06.2019,it informed about the recognition of a provision and a write-down onassets in connection therewith.

The taxliability specified in the Decisions in the amount of PLN 8,2 million,together with interest for late payment of PLN 2,3 million, was paid bythe Subsidiaries to the relevant offices (hereinafter referred to as the"Offices") in 2019, after they received the Decisions.

The judgmentsare final and cannot be appealed against. The Subsidiaries are waitingfor the decisions of the Second Instance Authority in accordance withthe judgments of the NSA, after which they should receive a refund ofthe overpaid tax liability, interest paid for late payment, interest forthe period when the paid funds were at the disposal of the taxauthorities and reimbursement of court fees. The Subsidiaries anticipatethe aforementioned amounts to be reimbursed in 2023.

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).