Cognor Holding S.A.

Legal Proceedings Report • May 5, 2025

Report Content Establishinga prudential material asset impairment allowance

TheManagement Board of AFORTI Holding S.A. in restructuring with itsregistered office in Warsaw (hereinafter referred to as the "Company","Issuer") hereby announces that on May 5, 2025, it adopted a resolutionon the establishment of a prudential impairment allowance for assets,i.e. shares in subsidiaries and receivables, in the total amount of PLN466,109,467.82.

Whenvaluing assets, the Company must take into account the ongoingrestructuring and bankruptcy proceedings. Restructuring proceedings takeprecedence over bankruptcy proceedings, but no conclusive decisions havebeen issued in them so far. The Company is unable to estimate theduration of court proceedings. The lack of decisions generatesuncertainty among business partners who expect stability andpredictability in order to cooperate with the Group Companies. Theirfluctuations in cooperation adversely affect the Company and the CapitalGroup Companies, whose shares constitute the Company's assets.

Inthis completely unpredictable situation, the Issuer's Management Boardmust be guided by the principle of prudence. The prepared plans arebased on the assumption of continuing operations for the next 5 yearsand achieving the assumed business goals. In the immediate liquidationscenario, creditors will probably not recover any funds. This resultsfrom the fact that the companies and related projects would losecontractors, making it impossible to implement them, and consequentlymaking them worthless. The available financial resources would besignificantly burdened with the costs of severance pay and employeedismissals. At the same time, the company does not have any liquidablefixed assets that could generate significant revenues from liquidation.The need to cover the costs of the trustee and liquidation proceedingswould additionally limit the potential for satisfying creditors.

Takinginto account the issues described above, and also, guided by theprinciple of prudence, due to the unpredictability of when and whatdecision the Court will make in the Issuer's case, which may result inbankruptcy and liquidation of all entities from the Issuer's CapitalGroup, the Management Board of the Company decided to create aprudential impairment allowance, in the scope of shares and interests ofthe following subsidiaries in the amount of PLN 432,162,198.69 andreceivables in the amount of PLN 33,947,269.13.

Dueto the still ongoing audit of the financial statements for 2022, theprudential allowance will affect the results of the Company's separatefinancial statements as at December 31, 2022, which will also involvethe need to make corrections to quarterly periodic reports.

Legalbasis: Article 17 paragraph 1 of the MAR- confidentialinformation