Current Report No. 21/2019: Modification of 2019–2024 Strategy

The Management Board of KRUK S.A. (“Company”) announces that on May 29th 2019 it passed a resolution to modify the corporate strategy for 2019–2024 (“Strategy”), as announced in Current Report No. 44/2018, to the extent pertaining to the Company’s key objective stated in the Strategy, i.e. achievement of the PLN 700m net profit target by 2024 (“Strategic Objective”). The Company modified the Strategic Objective for 2019–2024 to read as follows ‘grow the business by expanding the scale of operations and improving process efficiency at the KRUK Group’. The Strategic Objective was changed after the Polish Financial Supervision Authority (“PFSA”), in the course of proceedings to approve the base prospectus for Kruk S.A. bonds, presented a statutory interpretation that led it to conclude that the previous Strategic Objective was a profit forecast. KRUK S.A. has never published and does not intend to publish any earnings forecasts. The modification of the Strategic Objective (cancellation of the previous Strategic Objective) was caused solely by the Company’s intention to implement the PFSA’s conclusion referred to above, with the remaining part of the Strategy remaining unchanged. There are no other reasons for modifying the Strategic Objective. In particular, the Company’s financial position and business environment, or their perception by the Company’s Management Board, have not changed. The modification of the Strategic Objective does not affect the Management Board’s approach to the Strategy implementation or the Company’s growth prospects. The full text of the Strategy is available on the Company’s website.

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