Kruk S.A. — Capital/Financing Update 2016

Oct 10, 2016

Current Report No. 93/2016

Date of the report: October 10th 2016

Subject: Expenditure on and recoveries from debt portfolios

Legal basis: Art. 17(1) of MAR - Inside information

Text of the report:

In line with the adopted disclosure policy, KRUK S.A. (KRUK, theCompany) announces that, in connection with the Company's strategy tostrengthen its position on the debt purchase market, the expenditure ondebt portfolios purchased by the KRUK Group (the Group) in Q3 2016 grewby 189% year on year, to PLN 205m. The expenditure includes PLN 155m onthe transaction executed in partnership with International FinanceCorporation of Washington, D.C., USA (IFC), an entity of the World BankGroup.

The nominal value of debt purchased by the Group in Q3 2016 amounted toPLN 2bn.

The recoveries from the management of purchased portfolios grew in Q32016 to PLN 255m, that is by 24% year on year.

The aggregate expenditure on debt purchased by the Group in Q1−Q3 2016was PLN 936m (with the nominal value of cases amounting to PLN 8.4bn),up 222% on the first three quarters of 2015. The recoveries from themanagement of purchased portfolios in Q1-Q3 2016 grew to PLN 701m, thatis by 16% year on year.

The Company further announces that details of the financial resultsachieved by the Company and the KRUK Group in Q1−Q3 2016 will beprovided in the interim consolidated report for Q3 2016, scheduled forpublication on November 1st 2016.