Digitree Group S.A.

Legal Proceedings Report • Dec 28, 2017

Subject: Decision of President of the OCCP in antimonopoly proceedings

Current report 57/2017

The management board of Pfleiderer Group S.A. (the "Company") informsinvestors that on 28 December 2017 the Company received decision no.DOK-3/2017 (the "Decision") of the President of the Office ofCompetition and Consumer Protection (the "President of the OCCP")considering as an anti-competitive practice the conclusion by KronospanSzczecinek sp. z o.o., Kronospan Mielec sp. z o.o., Swiss Krono sp. zo.o. (formerly Kronopol sp. z o.o.), Pfleiderer Group S.A. (formerlyPfleiderer Grajewo S.A.) and Pfleiderer Wieruszów sp. z o.o. (formerlyPfleiderer Prospan S.A.) an agreement limiting competition on thenational market of sales of chipboard and on the national market ofsales of fibreboard, consisting in:

1. the fixing of prices of chipboard and fibreboard, which infringes theprohibitions mentioned in Art. 6 sec. 1 point 1 of the Act onCompetition and Consumer Protection (the "Act") and Art. 101 sec. 1 a)of the Treaty on the Functioning of the European Union (the "TFEU"); and

2. the exchange of commercial information on the conditions of sale ofchipboard and fibreboard, which infringes the prohibition mentioned inArt. 6 sec. 1 of the Act and Art. 101 sec. 1 of the TFEU.

According to the Decision, the agreement was in force from the beginningof 2008 to 7 September 2011. In the Decision, the President of the OCCPimposed a fine of PLN 15,957,741.83 on Pfleiderer Group S.A. and PLN19,804,706.50 on Pfleiderer Wieruszów sp. z o.o. The Decision is notlegally final.

During an internal investigation, the Company did not identify anyinfringements of competition law that would justify the Decision's beingissued in relation to the Company and Pfleiderer Wieruszów sp. z o.o.Consequently, the Company plans to file an appeal against the Decisionwith the Court of Competition and Consumer Protection.

The Company notes that the fines mentioned in the Decision are payableafter the Decision becomes legally final, that is after the appealprocedure in courts of two instances has been exhausted.

The Company is examining the justification of the Decision andconducting an analysis to determine the amount of the provision itshould set up in its accounting ledgers.

Legal basis: Art. 17 sec. 1 of the Regulation (EU) No. 596/2014 of theEuropean Parliament and of the Council on market abuse (Market AbuseRegulation) and repealing Directive 2003/6/EC of the European Parliamentand of the Council and Commission Directives 2003/124/EC, 2003/125/ECand 2004/72/EC (OJ L of 2014, no. 173, p. 1, as amended).

28.12.2017