Kruk S.A. — Earnings Release 2020

May 22, 2020

Current Report No. 13/2020

Date: May 22nd 2020

Subject: Preliminary estimated financial results of the KRUK Group forQ1 2020

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

Text of the report:

Having been notified, on May 22nd 2020, of the preliminary estimate ofthe consolidated net result of the KRUK Group (the "Group") for Q1 2020,the Management Board of KRUK S.A. (the "Company") had decided toannounce the results to the public. The preliminary estimatedconsolidated net loss of the KRUK Group for Q1 2020 amounts to PLN 62m.When estimating the preliminary net result, the Company made anaccounting review of expected recoveries taking into account theexpected effect of the COVID-19 pandemic. In effect, the Group posted adownward revaluation of portfolios for a total amount of PLN -125m in Q12020. The revaluation reflects the decline in expected recoveriesobserved since the end of March, attributable to such factors asrestricted activity of field consultants, reduced access to paymentchannels (post offices, payment intermediaries), as well as limitedactivity of courts and enforcement officers.The Company has made apreliminary estimate of the KRUK Group's cash EBITDA* for Q1 2020 at PLN326m, up 15% on Q1 2019. The KRUK Group is taking steps to minimise theadverse effect of COVID-19 on its assets and financial performance, andto prepare the Group to resume full investment and operating activityonce the pandemic subsides.The Group's finances and liquidity positionas at the end of Q1 2020 and as at the date of issue of this report arestable. The KRUK Group's equity is high (PLN 1.959m as at December 31st2019) and its debt is low (2,3 x net debt/cash EBITDA as at December31st 2019). As at March 31st 2020, the KRUK Group's cash and cashequivalents amounted to PLN 236m. The undrawn amount of lines of creditwas PLN 712m as at March 31st 2020. The finally determined financialresults will be disclosed in the consolidated report of the KRUK Groupfor Q1 2020, scheduled for issue on May 28th 2020. * Cash EBITDA =EBITDA - revenue from purchased debt portfolios + recoveries frompurchased debt portfolios