Kruk S.A. — Capital/Financing Update 2020

Mar 18, 2020

Current Report No. 6/2020

Date: March 18th 2020

Subject: Management Board's resolution to abandon issue of bonds underSixth Public Bond Issue Programme

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

Text of the report:

Further to Current Report No. 4/2020 of March 9th 2020 on the issue ofSeries AJ2 Bonds (the Bonds) and the final terms and conditions of theissue of the Bonds, the Management Board of KRUK S.A. (the Company)announces that today it has adopted a resolution to abandon the offeringof the Bonds on the basis of the Base Prospectus of the Sixth Bond IssueProgramme (the Programme). The decision was made in connection with thecoronavirus epidemic spreading across Poland and in keeping with theprinciples of social responsibility as, for instance, placingsubscription orders would require appearing in person at BrokerageHouses' Customer Service Points. The Company will consider the offeringof bonds under the Programme once the pandemic has subsided.

The Company would also like to point out that the KRUK Group iscontinuing its operations, has a relatively low debt (net debt to equityof 1.3x as at December 31st 2019), and its liquidity position is stable(as at December 31st 2019, the amount of cash and cash equivalents wasPLN 150m and the amount of available and undrawn credit facilities wasPLN 556m).

As at the date of this report, the Company's Management Board is unableto precisely determine the extent to which the spread of the coronavirusand the related problems will affect KRUK's financial performance andprospects in a longer term. The Management Board takes into accountdifferent scenarios and intends to manage KRUK's operations in a waywhich will minimise any adverse effect on KRUK's assets and financialperformance. At the same time the Management Board aims to prepare theGroup for full-scale investment activity when the pandemic threat ends.