Orange Polska S.A.

Environmental & Social Information • Dec 6, 2017

Current report 26/2017OrangePolska S.A. - Warsaw, Poland5 December2017(translation of Polishversion)title:OrangePolska signed with trade unions the Social Agreement for the years2018-2019, under which up to 2,680 employees may benefit from voluntarydepartures.

Pursuant to Article 17(1) of the Regulation (EU) No. 596/2014 of theEuropean Parliament and of the Council of 16 April 2014 on market abuse(market abuse regulation) and repealing Directive 2003/6/EC of theEuropean Parliament and of the Council and Commission Directives2003/124/EC, 2003/125/EC and 2004/72/EC, the Management Board of OrangePolska S.A. ("Orange Polska") announces the conclusion of a SocialAgreement with the Social Partners.

Orange Polska signed with trade unions the Social Agreement for theyears 2018-2019, under which up to 2,680 employees may benefit fromvoluntary departures.

On December 5, 2017, the Management Board of Orange Polska concludednegotiations with the Social Partners on the terms of a new SocialAgreement. This will remain in force for the next two years, that is2018-2019. In parallel to negotiating the Social Agreement, OrangePolska completed negotiations on a Settlement for 2018 under the Act of13 March 2003 on special rules on termination of employment for reasonsnot attributable to employees (Journal of Law of 2016, item 1474).

In particular, the Social Agreement for 2018-2019 sets the number ofvoluntary departures in the next two years at 2,680 people anddetermines a financial package for employees leaving Orange Polska underthe voluntary departure scheme. It also provides for potential basicsalary rises (2.5% in 2018 and 2019) and additional compensation foremployees reaching retirement age, while specifying the position androle of internal mobility in supporting an allocation programme andoffering participation in an outplacement programme to people whoseemployment contracts are to be terminated by the employer. In addition,the Social Agreement for 2018-2019 provides for the follow-up of the‘Friendly Work Environment' programme and continuation of medicalcoverage.

The negotiated Settlement sets the number of employees to leave OrangePolska in 2018 at 1,450 and determines the terms of voluntary departuresin 2018 as well as the amount of severance pay and additionalcompensation for employees departing in 2018. The Settlement alsospecifies the rules and selection criteria to be applied to people whoseemployment will be terminated by the employer for reasons notattributable to employees.

The amount of compensation package per departing employee will depend ontheir seniority in the Group in accordance with the IntragroupCollective Labour Agreement and will be increased in 2018 by additionalcompensation of PLN 5,000 for employees with seniority of 10 to 15years, PLN 10,000 for employees with seniority of 15 to 20 years or PLN26,000 for employees with seniority of more than 20 years.

The Management Board of Orange Polska will conduct the relevantanalysis, and the financial impact resulting from the aforementionedagreement will be covered in the accounts for the fourth quarter of 2017.