Ciech S.A.

Legal Proceedings Report • Mar 13, 2020

Text of the report:

The Management Board of CIECH S.A. (the "Company")informs that today the Attorney for CIECH Soda Polska S.A., CIECH Cargosp. z o.o. and CIECH Pianki sp. z o.o. (hereinafter jointly referred toas the "Subsidiaries") has received copies of cassationcomplaints submitted to the Supreme Administrative Court by the Directorof the Tax Administration Chamber in Bydgoszcz (hereinafter referred toas the "DIAS") against the judgements of the RegionalAdministrative Court in Bydgoszcz of 11 December 2019 (hereinafterreferred to as the "Judgments" and "WSA"respectively), in which the WSA annulled the decisions of the DIAS of 27August 2019 (hereinafter referred to as the "Decisions")relating to tax arrears of the Subsidiaries due to Corporate Income Taxfor 2015 in the total amount of PLN 8.2 million. A provision for theamount of the tax liability was created earlier. The Company informedabout the Judgments in its Current Report No. 49/2019 of 11 December2019, and about the creation of the provision in its Current Report No.24/2019 of 27 June 2019.

In the submitted complaints, the DIAS requested thatthe appealed Judgements be annulled and the complaints of theSubsidiaries against the Decisions of the DIAS be dismissed, or,alternatively, that the appealed Judgements be annulled and the cases bereferred to the WSA for their reconsideration.

The Company informed about the pending cases in itsCurrent Reports numbers:

1.1.22/2019 of 6 June 2019 - information onthe decisions of the 1stInstance Authority;

2.2.24/2019 of 27 June 2019 - informationon creating a provision for income tax and recognising a write-down fora deferred tax asset and recognising a provision for late paymentinterest;

3.3.38/2019 of 9 September 2019 -information on the Decisions;

4.4.49/2019 of 11 December 2019 -information on the Judgements repealing the Decisions.