Kruk S.A. — Earnings Release 2020

Oct 29, 2020

Current Report: 38/2020

Date: October 29th 2020

Subject: Recognition of deferred tax liability and preliminary estimatesof the KRUK Group's financial results for the third quarter of 2020

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

Text of the report:

The Management Board of KRUK S.A. (the "Company") announces that onOctober 29th 2020 it passed a resolution (the "Resolution") to updatethe plans for distribution of income from the Company's subsidiaries,which resulted in recognition of a deferred tax liability (the"Liability"), and to publish preliminary estimates of the KRUK Group'sresults for the three months ended September 30th 2020.

The Liability, amounting to PLN 58m, is attributable to a change in theexpected distribution of income from the Group's companies to KRUK S.A.over the next 36 months. The income distributions have been assumedbased on expected cash flows from the companies to the parent. TheLiability is the main component of the deferred tax in the KRUK Group,which estimated value for the the third quarter of 2020 is PLN 60m.

On October 29th 2020, the Company received preliminary estimates of theGroup's financial results for the third quarter of 2020 and decided topublish them.

The Group's preliminary estimated consolidated net profit for the threemonths ended September 30th 2020 is PLN 54m, and for the period fromJanuary 1st to September 30th 2020 is PLN 34m. The Group's preliminaryestimated cash EBITDA for the three months ended September 30th 2020 isPLN 324m, and for the period from January 1st to September 30th 2020 isPLN 915m.

The above figures are subject to change.

The finally determined financial results will be disclosed in theconsolidated report of the KRUK Group for the third quarter of 2020,scheduled for issue on November 5th 2020.