KRUK opts for the Polish stock exchange

• The Management Board of KRUK decided to conclude the revision of the strategic option in which KRUK took into consideration two parallel scenarios: (1) to remain as a public company and to continue working for current shareholders, (2) to obtain support from a financial investor
• KRUK conducted the revision of the strategic options and decided that the optimal structure for further development will be to stay on the Warsaw Stock Exchange
• Polish stock exchange remains an attractive place for big and well established companies (despite temporary turmoil)
• KRUK is a pioneer on the Polish capital market – recently, after a 2-year break, conducted two bond issues for a total of PLN 65m – one private marketed among institutional investors and one public to almost 400 individual investors
• The Management Board concluded that, in a current situation on both the equity and bond markets, potential tender offer may not fully reflect fundamental value of the company
• KRUK has healthy fundamentals and does not need any additional equity to realize its strategy
• KRUK plans its further growth in such a way to achieve PLN 700m of net profit in 2024, keeping a moderate level of leverage
• As a public company, as opposed to private company, KRUK will have the access to cheaper funding
• The Management Board intends KRUK to be a dividend-paying company, with the level depending on current financial and market situation

- It was intense and valuable time we utilized to analyze our strategic options and delineate further development plans for KRUK. We were primarily focused on the good of the company and shareholders. Scenarios for further development may be well achieved within current shareholding structure – KRUK has healthy fundamentals and does not need any additional equity to realize its strategy. The main goal I have for my team is clear – KRUK has to stay itself – growing dynamically, maintaining conservative level of leverage and, if current situation of the company and the market allow, pay dividends. Together with the whole Management Board we declare full involvement in efforts to achieve a new goal set after the revision of the strategic options. This year we are celebrating the 20th anniversary of KRUK and I want to assure that my outlook is well beyond the next 6 years of the new strategy -  says Piotr Krupa, CEO of KRUK.

KRUK has been listed on the Warsaw Stock Exchange since 2011. Current capitalization equals PLN 3.3bn, four times more than at the time of the IPO. Net profit of the company in 2017 equaled PLN 295m and increased eightfold compared to 2010. The company maintains a relatively low level of leverage – the ratio of net debt to cash EBITDA at the end of Q3 2018 equaled 2,3x (covenant at 4,0x). KRUK has been paying dividends for the past four year – in the period of 2015-2018 KRUK paid out PLN 193m in total.

Lint to presentation: KRUK Group Strategy for 2019-2024