Kernel Holding S.A. — Regulatory Filings 2023

Sep 6, 2023

Current report no 34/2023

dated 06 September 2023

UPDATE ON OPERATIONS AND RECENT DEVELOPMENTS

Kernel Holding S.A. (the "Company") hereby provides an update on recent developments and operations

On September 2, 2023, Russia once again targeted key Danube port infrastructure in Ukraine, vital to the operations of the Company's subsidiaries involved in sunflower oil exports from the region. Russian drones inflicted damage to multiple critical assets, including storage tanks used for vegetable oil accumulation, equipment essential for transshipment activities (including pipelines), railway intake capabilities, rail tanks awaiting unloading, and an administrative building. The full extent of these damages is currently under assessment.

Continuing their aggressive actions on September 3, 2023, Russia also targeted grain flat storages operated by a port operator in the Danube region, which provides crucial grain transshipment services to Kernel. This resulted in the complete destruction of two flat storages with a combined storage capacity of 5 thousand tons, while another two flat storages with the same capacity suffered damage and temporarily cannot be used for grain accumulation. These relentless airstrikes are severely disrupting the export of agricultural products from Ukraine.

Additionally, on 6 September 2023, another strike occurred, targeting, among other locations, the Company's assets in the Danube ports. Fortunately, there was no significant damage, although the operational activity of such assets was disrupted.

In addition, the Company provides a preliminary update on its export volumes for August 2023. Kernel exported 92 thousand tons of grain, 67 thousand tons of sunflower meal, and 98 thousand tons of sunflower oil. Export volumes were undermined by the challenges the Company faces, such as the inability to export goods through Ukrainian Black Sea ports and the ongoing Russian attacks on Ukrainian Danube port infrastructure, which have severely disrupted river export logistics.

Legal grounds: Art. 17 of REGULATION (EU) No 596/2014 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC.

Signatures of individuals authorised to represent the Company:

Anastasiia Usachova

Viktoriia Lukianenko