CFI Holding S.A.

Capital/Financing Update • Aug 29, 2022

Currency conversion by the subsidiary CENTRAL FUND OF IMMOVABLES sp.zo.o. some of the investment loans taken out at the Bank in PLN for aloan denominated in EUR.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 August 26, 2022 inthe afternoon, the Subsidiary CENTRAL FUND OF IMMOVABLES sp. z o.o. (CFIsp. z o.o.) with its registered office in Łódź, converted some of theinvestment loans taken out at Bank Ochrony Środowiska S.A. into a loandenominated in Euro (EUR). in Polish zloty in the amount of PLN 67 144212.85. The amount of debt after the conversion is EUR 14,222,455.59 asat the date of submitting the report. The company will establish anadditional security for the amount of PLN 10 million in the form of acontractual mortgage on the property covered by KW No. LD1M /00046431/8. All other provisions of the annexed Agreements that weresubject to currency conversion, about which the Issuer informed in theESPI Current Reports: No. 6/2020 of 07/02/2020, No. 59/2017 of28/12/2017, No. 15/2019 of 08/06/2019, 12/2018 of 29/06/2018, includingthe security of the Bank's claims under the Agreements concluded, didnot change as a result of the concluded annexes and do not differ fromthe provisions commonly used for this type of loan agreements.Thetransaction made by CFI Sp. z o.o. was dictated by the adjustment of therevenues achieved by the entity on the basis of internal and externalsales platforms for the provided services indexed in Euro. The currencyconversion transaction is aimed at limiting the current currency risk ofoperating activities - the hotel segment of the services provided - inthe long run, due to the pricing of hotel services based on the basecurrency Euro, which is the basis for own and external booking systemsmanaged by CFI Sp. z o.o. like other national and international hotelchains. The imposition in the reporting subsidiary of the rigor ofestablishing the price of revenues on the real and calculable base inEuro (the official currency for 19 EU countries) and acceptingreceivables also in Euro is a consequence of the long-term policy ofadjusting revenues to the expected introduction of the euro in Poland,which results from the obligations arising from the Treaty of Athens anda stable monetary policy. Art. 128 sec. 1 TFEU states that eurobanknotes are legal tender, and art. 11 of Regulation EC / 974/98 is thesame for euro coins.The interest rate on the loans was determined onan arm's length basis based on the EURIBOR rate increased by a margin.Thereported subsidiary, like other companies from the CFI Capital Group, inparticular operating in the hotel industry, conduct further negotiationsin order to convert the remaining loans into the base currency of thefinancing in Euro.