Kruk S.A. — Audit Report / Information 2017

Apr 27, 2017

Current Report No. 19/2017

Date: April 27th 2017

Subject: Appointment of financial auditor

Legal basis: Art. 56.1.2 of the Public Offering Act - Current andperiodic information

Text of the report:

The Management Board of KRUK S.A. of Wrocław (the "Company") announcesthat on April 27th 2017 the Company's Supervisory Board, acting pursuantto Art. 388.3 of the Commercial Companies Code as well as Art. 13.4 andArt. 14.2.17 of the Company's Articles of Association, passed aresolution to appoint auditing firm KPMG Audyt Sp. z o.o. of Warsaw("KPMG") to audit the full-year separate financial statements of KRUKS.A. for the financial years 2017, 2018 and 2019 and the consolidatedfinancial statements of the KRUK Group for 2017, 2018 and 2019. Theresolution comes into force on April 27th 2017. The agreement to beconcluded with the auditor will also provide for a review of thehalf-year financial statements of KRUK S.A. for H1 2017, H1 2018 and H12019 and of the half-year consolidated financial statements of the KRUKGroup for H1 2017, H1 2018 and H1 2019.

The auditing firm's registered address is Inflancka 4A, Warsaw, Poland.The firm is entered in the list of entities qualified to audit financialstatements under entry number 458.

Company previously engaged KPMG Audyt Sp. z o.o. Sp. k. to audit theseparate financial statements of the Company for the financial years2011−2013 and the consolidated financial statements of the KRUK Groupfor the financial years 2011−2013, as well as to review the half-yearseparate financial statements of KRUK S.A. for H1 2011, H1 2012 and H12013 and the half-year consolidated financial statements of the KRUKGroup for H1 2011, H1 2012 and H1 2013. The Company had also used theservices of KPMG, with respect to audit of the separate financialstatements of KRUK S.A. and the consolidated financial statements of theKRUK Group for the reporting periods in years 2005-2010.

The qualified auditor of financial statements was selected in compliancewith the applicable regulations and professional standards.

The Supervisory Board agreed to the Management Board entering into anagreement with KPMG to the extent necessary to carry out the activitiesspecified in this report.

The agreement with the auditor will be made for a period necessary toperform these activities.

Legal basis: Par. 5.1.19 of the Regulation of the Minister of Finance ofFebruary 19th 2009 on current and periodic information [...]