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Kruk S.A. Earnings Release 2017

Jan 10, 2018

5678_rns_2018-01-10_b1665c56-33ca-497b-ab6c-185e27ae0346.html

Earnings Release

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Current Report No. 2/2018

Date of the report: January 10th 2018

Subject: Expenditure on and recoveries from debt portfolios; preliminaryestimate of KRUK Group's net profit for 2017

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) discloses the amount of expenditure on and recoveries from themanagement of debt portfolios purchased by the KRUK Group.

Q4 2017

The nominal value of debt purchased by the Group

Q4 2017 Q4 2016 change

PLN 6.409m PLN 8.218m - 22%

The expenditure on debt portfolios purchased by the Group

Q4 2017 Q4 2016 change

PLN 210m PLN 347m -40%

The recoveries from the management of purchased portfolios purchased bythe Group

Q4 2017 Q4 2016 change

PLN 375m PLN 291m +29%

Y 2017

The nominal value of debt purchased by the Group

Y 2017 Y 2016 change

PLN 16.403m PLN 16.609m -1%

The expenditure on debt portfolios purchased by the Group

Y 2017 Y 2016 change

PLN 976m PLN 1.283m -24%

The recoveries from the management of purchased portfolios purchased bythe Group

Y 2017 Y 2016 change

PLN 1.369m PLN 992m +38%

At the same time, as the Management Board of the KRUK Group was notifiedon January 10th 2018 of the preliminary estimate of the KRUK Group's netprofit for 2017, the Company decided to publicly announce it.

The preliminary estimated consolidated net profit earned by the KRUKGroup in 2017 is PLN 300m, up 20,6% year on year.

The preliminary estimated earnings per share (EPS) of the KRUK Groupreached PLN 16 in 2017, having grown 13,6% year on year, 1,4pp below thetarget set in the KRUK Group's strategy for 2015-2019. However, theinitially estimated net profit is subject to revision, particularly toreflect the remeasured value of debt portfolios, which affects theconsolidated net profit of the KRUK Group.

The finally determined financial results for 2017 will be disclosed inthe separate and consolidated annual report of the KRUK Group for 2017,scheduled for issue on March 4th 2018.