JR Holding SA

Management Reports • Feb 19, 2021

The Management Board of Berg Holding S.A. with its registered office inKatowice [Company, Issuer] informs about the planned strategy ofoperations of the Issuer's associated company - ELON MOTORS S.A. withits registered office in with its registered seat in Gdańsk [ELONMOTORS, Associated Company] for the years 2021-2023.

The partnership ELON MOTORS, in which the Issuer took up 21% of shares,was established by the Company and four natural persons, one of whom,i.e., Mr. Łukasz Rosiński is a member of the Issuer's Supervisory Board,on 4 December 2020, about which the Company informed in the currentreport ESPI no 74/2020.

The core business of ELON MOTORS includes manufacturing, distribution,building sales market and organizing all operational activities relatedto production, distribution and sale of motorcycles, motor scooters,scooters and electric bicycles.

The Associate's strategy for 2021-2023 includes:

1. Development of ELON MOTORS brand as a manufacturer and distributor ofelectric vehicles on the Polish market.

2. Creating customized products and services based on motorcycles,scooters, bicycles, motor scooters and electric bikes.

3. Designing of own line of gadgets dedicated for electric vehicles.

4. Expanding the distribution of products and services under ELON MOTORSbrand to the markets of Europe, North and South America and Africa.

5. Research and development in the field of electromobility.Optimization of the production lines managed by the associated company.

The associated company plans to carry out its business based on thefollowing cooperation models:

1. Business to Customer [B2C] - development of sales through onlinestore and sales platforms like Allegro or Amazon and the system of ownand franchise outlets.

2.Business to Business [B2B] - development of sales of electricvehicles, i.e. mainly motor scooters and scooters for companies as ameans to generate savings in the company.

The main sales assumptions of the presented strategy assume generatingrevenues from sales of the vehicles offered, respectively, of about 3.2million PLN in 2021, about 6.1 million PLN in 2022 and about 12.7million PLN in 2023.

The Issuer will inform about updates or changes to the informationcovered in this report by way of relevant current reports.