Benefit Systems S.A.

Earnings Release • Mar 31, 2020

Quarterly information about the number of active sports cards; impact ofthe COVID-19 coronavirus epidemic on the activity of the Benefit SystemsCapital Group

Further to current report No. 24/2016 of 20 July 2016, the ManagementBoard of Benefit Systems S.A. with its registered seat in Warsaw(hereinafter, the "Company," or the "Issuer") would like to announcethat as of the end of 1Q 2020, the number of active sports cardsamounted to 1 548.9 thousand pcs. (of which 1 177.5 thousand pcs. are inPoland and 371.4 thousand pcs. on foreign markets), whereby, as of theend of 1Q 2019, the number of active sports cards amounted to 1 297.3thousand pcs. (of which 1 032.1 thousand pcs. in Poland and 265.1thousand pcs. on foreign markets).

A growth in the number of supported sports cards over the recent 12months amounted to 145.4 thousand pcs. in Poland and 106.3 thousand pcs.on foreign markets respectively, thus representing growth by 14.1% inPoland and by 40.1% on foreign markets, respectively, as compared to Q12019.

On the basis of Regulation issued by the Minister of Health on 13 March2020 concerning the declaration of the state of emergency due toepidemic in the territory of the Republic of Poland and the Regulationissued by the Minister of Health on 24 March 2020 concerning the stateof epidemic in the territory of the Republic of Poland, starting from 14March 2020, sports facilities and fitness clubs have been temporarilyclosed. Therefore, the Issuer is taking steps aimed at providing onlineservices to the sports cards. In April, the Company will offer employersand their employees rebates or additional services if they use theMultiSport programme. The clients and users have also an option tosuspend their sports cards until the sports facilities reopen (the"Suspended Cards"), with no fee being charged for the Suspended Cardsfrom April. Billing will resume after the sports facilities arereopened. The estimated proportion of the Suspended Cards in Aprilamounts to 70% of the total number of cards in Poland.

On foreign markets, where sports facilities are also closed due to thestate of the COVID-19 coronavirus epidemic (the "Epidemic"), thecompanies belonging to the Issuer's capital group (the "Capital Group")are offering on-line services at the moment. Therefore, the Issuerexpects a significant drop in the revenues of the "Foreign" segment in2Q 2020. As at the date of this report, the companies of the CapitalGroup have not reported terminations of agreements for sports cards withthe clients (employers) on a considerable scale whether in Poland orabroad.

Both in Poland and abroad, the companies of the Capital Group charge nofee for the sports carnets to the customers (B2C) of the fitness chains.

Therefore, the Group expects a significant negative impact of theEpidemic on the results of 2Q 2020 both on the revenues and theoperating profit. Its scale will depend, among other things, on how longthe sports facilities will have to remain closed and on how effectivethe measures taken by the member companies of the Capital Group in termsof cost saving will be.

As of the date of this report, the Issuer expects that in connectionwith the Epidemic, a substantial part of its adverse impact on theresults of 2Q 2020 due to loss of the B2C profit at fitness clubs willbe offset by the savings on the costs directly related to the operationof the clubs. Furthermore, the Issuer has started to optimize the costsof sales and overheads of the Capital Group. The Company also expectssavings from the fitness clubs on foreign markets in 2Q 2020; however,these savings are going to be much lower than the savings on the directexpenses by the fitness clubs in Poland. Implementation of the assumedcost-efficiency measures depends, among other things, on factorsindependent from the Capital Group, including the final shape of the aidregulations introduced by the governments in Poland and in the othercountries where the Capital Group operates and on the results ofnegotiations with business partners.

Notwithstanding the above-described impact of the Epidemic on theresults of 2Q 2020, in accordance with the current estimations of theCompany based on the assumptions available as of the date of thispublication, the impact on 1Q 2020 results is not going to besignificant in spite of a significant drop in the revenues for thesecond half of March. The final financial results for 1Q 2020 will beknown after the quarterly report is published and may depart from thecurrent estimations.

The Issuer would like to note that due to uncertainty regarding thedevelopment of the Epidemic and its impact on the economic situation inPoland and on foreign markets, they are unable to precisely estimate itsimpact on the results in the second half of 2020.

The management of the liquidity of the Capital Group of the Issuerduring the COVID-19 epidemic is regarded as a top priority. The Issuermonitors collection of receivables on a daily basis. As of the date ofthis report, the process has been continued without any majordisturbance. Concurrently, whenever possible and reasonable, the Issueris working to postpone payment of liabilities, and is taking other stepsaimed at the management of the liquidity of the Company.