Benefit Systems S.A.

Management Reports • Mar 19, 2021

Accounting one-offs impacting financial results for fourth quarter 2020

The Management Board of Benefit Systems S.A. with its registered seat inWarsaw (hereinafter, the "Company") hereby announces followingaccounting one-offs, which affect significantly the profit before taxfor the 4 quarter 2020:

- Impairment on balance sheet value of the loans advanced to CalypsoFitness S.A. company (the "Calypso Fitness") and the companies from theCalypso Fitness group in the amount of PLN 33.3mn (to be included infinance costs) and impairment on balance sheet value of the receivablesfrom the leases provided to the Calypso Fitness and the companies fromthe Calypso Fitness group in the amount of PLN 12.1mn (to be included inother operating income). The above-mentioned impairments are inconnection with expected negative impact on Calypso Fitness groupfinancial situation arising from COVID-19 pandemic and restrictions insport facilities operations stemming from pandemic as well as theduration of period required to return to its operating activity levelnoted before the pandemic began;

- Provision in the amount of PLN 10.8mn related to the decision of thePresident of the Office of Competition and Consumer Protection, to whichthe Company referred in its report No. 2/2021 of 4 January 2021 (to beincluded in other operating income);

- Correction of lease liabilities balance sheet value (rents in leasedfacilities) in the amount of PLN 15.9mn (to be included as a reductionof the operating costs predominantly in cost of sales). The correctionis related to a portion of negotiated and realized savings on rent costsin 2020 and was recognized in line with the introduced amendment to IFRS16 in connection with COVID-19;

- Change in the amount of the provision for settlements of invoicedrevenues, resulting in a positive impact on results of 4 quarter 2020 inthe amount of PLN 5.4mn (revenue increase) as well as a negative impacton 2020 results in the amount of PLN 11.0mn (revenue decrease).

Presented values are estimated and may change. The final impact of theabove-mentioned one-offs on 2020 and 4 quarter 2020 results will bepresented in the annual Consolidated Financial Statements of the CompanyGroup for 2020 reported on 24th March 2021.