Ciech S.A.

Earnings Release • Nov 14, 2019

Subject:Creation of an additional write-down

Text of the report:

With reference to Current Report No. 37/2019 of 9September 2019 and Current Report No. 40/2019 of 18 September 2019,CIECH S.A. (the "Company" or "Issuer")informs that today the Management Board of the Company has decided tocreate an additional write-down in the amount of PLN 36.8 million (the "AdditionalWrite-down"), in the consolidated financial statements of the CIECHGroup for the third quarter of 2019, related to impairment of assets ofCIECH Soda Romania S.A. based in Romania (the "Subsidiary"),which - together with the write-down created in the first half of theyear (the "Write-Down") - will total PLN 73.7 million. TheIssuer informed on the creation of the Write-Down in its Current ReportNo. 37/2019 of 9 September 2019.

The decision to create the Additional Write-Down wasmade as a result of:

1.1.fulfilment of "Scenario 2" described inthe aforementioned report, No. 37/2019, i.e. failure to reach agreementbetween the Subsidiary and the sole provider of Steam - S.C. CET GovoraS.A. based in Romania in composition bankruptcy ("CET"), asto the level of the price of process steam (the "Steam"), as confirmedby CET in its letter with information on the inability to supply theSteam at the price agreed in the terminated contract,

2.2.analysis of possible Steam deliveryoptions from a new source, the probability of which, as at the date ofdecision making, was assessed as insufficiently high.

The creation of the Additional Write-Down will haveno impact on the consolidated adj. EBITDA of the CIECH Group (calculatedas EBITDA adjusted for extraordinary one-off events), consolidatedfinancial flows and the separate financial statements of the Company.The value of the Additional Write-Down will affect the consolidatedoperating result, consolidated EBITDA and consolidated net result of theCIECH Group for the third quarter of 2019. The Additional Write-Downwill be presented in the Extended Consolidated Quarterly Report of theCIECH Group for Q3 2019 to be published on 19 November 2019.

At the same time, the Issuer informs that analysesare continued with regard to the possibility of obtaining a new sourceof Steam at a reasonable cost and long-term cooperation in the supply ofother raw materials necessary for production (guaranteeing costpredictability in subsequent years). The result of these analyses mayaffect the amount of write-downs to be recognised in the consolidatedfinancial statements of the CIECH Group for subsequent reporting periods.

Legal basis:Article17.1 of the Regulation of the European Parliament and of the Council(EU) No. 596/2014 of 16 April 2014 on Market Abuse (the 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 (Official Journal of the European Union L No. 173, p. 1).