CFI Holding S.A.

Capital/Financing Update • Sep 5, 2022

Currency conversion by the subsidiary CENTRAL FUND OF IMMOVABLES sp.zo.o. a liquidity loan guaranteed by BGK taken out in PLN at the Bank fora loan denominated in Euro.Management Board of CFI Holding S.A.(hereinafter referred to as: _quot;Issuer_quot;, _quot;Company_quot;) with its registeredoffice in Wrocław, announces to the public that on September 2, 2022,the Subsidiary CENTRAL FUND OF IMMOVABLES sp. z o.o. (CFI sp.z o.o.)with its registered office in Łódź, converted a liquidity loan with aguarantee of Bank Gospodarstwa Krajowego (BGK) from Bank OchronyŚrodowiska S.A. to a currency denominated in Euro (EUR). in Polish zlotyin the amount of PLN 27,281,500.00. The amount of the debt after theconversion is EUR 5 788 195.11 (in words: five million seven hundredeighty eight thousand one hundred ninety five EUR 11/100), mainly fromthe anti-crisis shield of the BGK Liquidity Guarantee Fund, which allowsfor the guarantee of the working capital loan . The concludedtransaction of converting the loan into EUR is another measure adjustingthe revenue policy of the companies from the CFI Capital Group,calculated on the basis of the indicator denominated in EUR.Thereported conversion of the loan was also covered by the mortgagereferred to in the ESPI report No. 12/2022 of August 29, 2022,constituting an additional security for up to PLN 10 million in the formof a contractual mortgage on the property covered by KW No. LD1M /00046431/8, which this mortgage secures all loans converted into euro(EUR).The day of the final loan repayment was set for June 28, 2026.Allother provisions of the annexed Agreement, which was subject to currencyconversion, about which the Issuer informed in the ESPI Current Report:No. 24/2020 of 30/09/2020, including securing the Bank's receivablesunder the Agreements concluded, did not change as a result of the annexconcluded and do not diverge from the provisions commonly used for thistype of loan agreements.For the above transaction, CFI sp.z o.oobtained the consent of the guarantor, Bank Gospodarstwa Krajowego,which de facto meant obtaining an amended BGK guarantee, about which theCompany informed in the above-mentioned ESPI report for a currencydenominated in EUR and with an extended BGK guarantee period for theentire loan period.BGK collateral ensures better lending conditionsresulting from the acceptance of the guarantee and better conditions forsecuring the loan - without the need to pledge assets, which is possiblethrough a thorough analysis of the financial and property situation ofthe entity to which the loan was granted.The transaction made by CFISp. z o.o. was dictated by the adjustment of the revenues achieved bythe entity on the basis of internal and external sales platforms for theprovided services indexed in Euro. The currency conversion transactionis aimed at limiting the current currency risk of operating activities -the hotel segment of the services provided - in the long run, due to thepricing of hotel services based on the base currency Euro, which is thebasis for own and external booking systems managed by CFI Sp. z o.o.like other national and international hotel chains. The imposition inthe reporting subsidiary of the rigor of establishing the price ofrevenues on the real and calculable base in Euro (the official currencyfor 19 EU countries) and accepting receivables also in Euro is aconsequence of the long-term policy of adjusting revenues to theexpected introduction of the euro in Poland, which results from theobligations arising from the Treaty of Athens and a stable monetarypolicy. Art. 128 sec. 1 TFEU states that euro banknotes are legaltender, and art. 11 of Regulation EC / 974/98 is the same for euro coins.Theinterest rate on the loans was determined on an arm's length basis basedon the EURIBOR rate increased by a margin.The reported subsidiary,like other companies from the CFI Capital Group, in particular operatingin the hotel industry, conduct further negotiations in order to convertthe remaining loans into the base currency of the financing in EUR.