Ciech S.A.

Regulatory Filings • Feb 22, 2019

Text of the report:

The Management Board of CIECHS.A. (the "Company") informs that as part of the work on the separatefinancial statements for 2018, it performed tests for the impairment ofthe Company's participation in its subsidiaries. Based on the analyses,the Management Board of the Company decided to reverse all historicalimpairment write-offs for its shares in SDC GmbH in the amount ofapprox. PLN 260 million.

The value in use, estimated based on the discountedcash flow model, was used as the recoverable value, taking into accountthe assumptions resulting from the market environment, in particular,the prices of soda products, the electricity market and the prices ofraw materials.

The amount of reversal of the write-off will increasethe Company's separate net financial result for 2018, however, it willnot affect the consolidated net profit of the CIECH Group for 2018.

Due to the fact that the amount of the reversedwrite-off is subject to examination by an auditor, it may still change.The final amount of reversal of the write-off will be presented in theCompany's separate annual financial statements for 2018, the publicationof which is scheduled for 26 March 2019.

Theaforementioned reversal will be a non-cash operation.