Fabrity Holding S.A

Regulatory Filings • Mar 24, 2020

Information on the impact of the effects ofCOVID-19 on the operations of the Issuer and its Capital Group

The board of Aforti Holding S.A. ("the Company", "theIssuer") with its registered seat in Warsaw, based on therecommendations issued by the European Securities and Markets Authority(ESMA) and the Polish Financial Supervision Authority (KNF), herebyinforms about the expected impact of the effects of the spread ofcoronavirus and related: announcement of epidemic status in theterritory of the Republic of Poland and Policy Council decisionsMonetary and Ministry of Finance, for the operations of the Issuer andits Capital Group.On the date ofpublication of this report, the Issuer and its Capital Group maintainoperational continuity. Most of the employees and associates of theIssuer and its Capital Group work remotely. The necessary securityprocedures have also been introduced: direct meetings with clients fortelephone and electronic communication have been minimized, visits toforeign subsidiaries have been suspended, universally recommended healthand safety principles and solutions have been implemented for limitingthe risk of virus infection.In thecase of lending activities carried out by the Issuer's subsidiary:Aforti Finance S.A., the Issuer's Management Board takes into accountvarious scenarios depending on the individual situation of the clients.The management board of the subsidiary monitors the situation regardingthe repayment of loans granted on an ongoing basis, prepares appropriateprocedures and actions that will be implemented if necessary.Inthe field of currency exchange services for entrepreneurs carried out bythe Issuer's subsidiary: Aforti Exchange S.A., an increase in the valueof turnover carried out by clients month to month is observed by justover 14 percent. Here it should be noted that interest in currencies dueto the high level of volatility of their exchange rate is an effect of,among others lowering interest rates and the macroeconomic situation inPoland and in the world.In the area ofdebt collection carried out by the Issuer's subsidiary: AfortiCollections S.A., a further significant increase in orders andacceleration of the transfer of outstanding claims by creditors isobserved.At the same time, a stablesituation remains in the case of factoring services provided by theIssuer's subsidiary: Aforti Factor S.A.Atthe moment, the number of users visiting the websites of the Issuer andits subsidiaries is comparable to the previous month.Takenthe dynamically changing environment into account, the Management Boardof the Issuer cannot reliably determine the impact of the spread of theCOVID-19 coronavirus on the Company's and its Capital Group'soperations, financial results and business prospects. It should beemphasized that at present the business continuity of the Issuer and itsCapital Group has not been interrupted. The Issuer and its subsidiariesare currently adjusting their activity to the observed and anticipatedmarket needs.

The Company monitors the situation on an ongoingbasis, and in the case of events having an impact on the financialresults and economic situation of the Issuer, the Issuer's ManagementBoard will inform in separate current reports as soon as such eventsoccur.Legal basis: Article 17paragraph 1 of the MAR - confidential information