Ciech S.A.

Environmental & Social Information • Dec 29, 2021

The Management Board ofCIECH S.A. (the "Company" or "Issuer")herewith informs that on 29 December 2021, CIECH Soda Deutschland GmbH _amp;Co. KG and CIECH Energy Deutschland GmbH (the "Subsidiaries")sold 655.390 units of CO2 emission allowances (EUA), originating fromfree allocation and units previously purchased from the market ("Saleof Allowances" and "EUA Units" respectively). Themarket value of EUA Units sold amounts to EUR 52 million (equivalent ofPLN238million)as per current value of a CO2emission allowance unit, i.e. EUR 78,93/EUA (equivalent of PLN 363,30)

At the same time, theSubsidiaries concluded agreements securing the purchase of 655.390 unitsof CO2 emission allowances on the forward market, with a settlement datein April 2022 and April 2023 ("Hedging"). The Hedgingsettlement dates fall before the deadline for the required redeeming ofthe units in the amounts corresponding to the CO2 emissions for theyears 2021 and 2022 respectively.

The Sale of Allowancesand Hedging (jointly as the "Transaction"):

1._#160;havean impact on the adequate increase in the level of cash in theSubsidiaries2._#160;havean impact on the reduction of the consolidated net debt of the CIECHGroup by approx. PLN 238 million, calculated as at 31 December 2021;

3._#160;havean insignificant impact on EBITDA, limited to the difference between theselling price of EUA Units and the repurchase price of the units of CO2emission allowances (EUA), which should not exceed approx. PLN 2million; and

4._#160;donot affect the change in the net exposure of the CIECH Group to marketrisk related to fluctuations in the price of CO2 emission allowances.

The main purpose of theTransaction was to obtain funds that would improve liquidity in theshort term and reduce the costs of financing in the CIECH Group. Thefunds obtained from the Transaction will be allocated, among others, toreduce the utilisation of short-term financing sources (overdraftfacilities, factoring) with a higher cost of financing.

The Company assumes thatobtaining funds through the sale of the units of CO2 emission allowancesmay be repeated in subsequent years - within the time limits, inquantities and values depending, among others, on the dates ofallocation of such units as well as their quantity and market value.

Legal basis:Article 17.1 of theRegulation of the European Parliament and of the Council (EU) No.596/2014 of 16 April 2014 on Market Abuse (the Market Abuse Regulation)and repealing Directive 2003/6/EC of the European Parliament and of theCouncil and Commission Directives 2003/124/EC, 2003/125/EC and2004/72/EC (Official Journal of the European Union L No. 173, p. 1).