Kruk S.A. — Management Reports 2020

Jul 10, 2020

Current Report No. 17/2020

Date of the report: July 10th 2020

Subject: Expenditure on and recoveries from debt portfolios and theimpact of the epidemic on the KRUK Group's results

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.

Q2 2020

The nominal value of debt purchased by the Group

Q2 2020 Q2 2019 change

PLN 187m PLN 1.897m -90%

The expenditure on debt portfolios purchased by the Group

Q2 2020 Q2 2019 change

PLN 23m PLN 129m -82%

The recoveries from the management of purchased portfolios purchased bythe Group

Q2 2020 Q2 2019 change

PLN 417m PLN 447m -7%

IH 2020

The nominal value of debt purchased by the Group

IH 2020 IH 2019 change

PLN 692m PLN 3.288m -79%

The expenditure on debt portfolios purchased by the Group

IH 2020 IH 2019 change

PLN 80m PLN 309m -74%

The recoveries from the management of purchased portfolios purchased bythe Group

IH 2020 IH 2019 change

PLN 894m PLN 874m +2%

The Company announces that in the first half of 2020 each market onwhich the KRUK Group operates was affected by the COVID-19 pandemic andthe resulting lockdown restrictions, which had an impact on recoveries.Given the pandemic and its consequences, the KRUK SA Group also reducednew investments in H1 2020. The KRUK Group is taking steps to minimisethe adverse impact of COVID-19 on its assets and financial performance,and to prepare the Group to resume full investment and operatingactivity once the pandemic subsides.

The Group's finances and liquidity position as at the end of the secondquarter of 2020 and the date of issue of this report remained stable.The KRUK Group enjoys a strong equity position (PLN 1953m as at March31st 2020) and low debt (2.1 in a net debt/cash EBITDA ratio as at March31st 2020). Its cash and cash equivalents at June 30th 2020 were PLN248m, an increase of PLN 18m compared with the end of March 2020. Theundrawn lines of credit available to the Group as at June 30th 2020totaled PLN 910m, up by PLN 198m relative to the end of March 2020.

The finally determined financial results for IH 2020 will be disclosedin the separate and consolidated half year report of the KRUK Group forIH 2020, scheduled for issue on August 27th 2020.