Motion of the Management Board of Grupa Kęty S.A. with regard to 2019 profit distribution and dividend payment as well as assessment of the motion by the Supervisory Board

The Management Board of Grupa Kęty S.A. (hereinafter referred to as the Issuer or the Company) informs that on 15 July 2020 it passed a resolution recommending to the Annual General Meeting:

a) allocation of the net profit generated by the Company in 2019, amounting to PLN 205,026,782.37 (say: two hundred and five million twenty six thousand seven hundred and eighty two zlotys 37/100) in the following manner:

  • the amount of PLN 205,005,839.37 (say: two hundred and five million five thousand eight hundred and thirty nine zlotys 37/100) to be allocated to dividend payment to the shareholders;
  • the amount of PLN 20,943.00 (say: twenty thousand nine hundred forty three zlotys 00/100) to be allocated to the coverage of the actuarial loss of the year 2019 related to the adjustment of the provision for employee benefits;

b) utilisation of the Company reserve capital by allocating the amount of PLN 89,833,053.44 (say: eighty nine million eight hundred and thirty three thousand fifty three zlotys 44/100), representing a part of the amount transferred to that capital from the Company retained earnings, to the payment of dividend to the Company shareholders;

c) payment of dividend to the shareholders in the amount of PLN 294,838,892.81 (say: two hundred and ninety four million eight hundred and thirty eight thousand eight hundred and ninety two zlotys 81/100), i.e. PLN 30.73 per share, in reference to the number of shares of the Company as at the date of passing this resolution (9,594,497).

The value of the recommended dividend reflects the current and expected financial standing of the Company and complies with the Company policy in that regard, which assumes the dividend payment ratio of 60% to 100% of the consolidated net profit.

The recommendation by the Issuer’s Management Board was submitted to the Supervisory Board of the Company, which on 15 July 2020 – acting pursuant to Article 382.3 of the Code of Commercial Companies – issued a positive opinion on the Management Board motion with regard to distribution of the profit generated by the Company in 2019 and dividend payment.

Moreover, in the motion of the Management Board of Grupa Kęty S.A. on 2019 profit distribution, the Issuer’s Management Board proposes 21 September 2020 as the dividend record day, whereas the dividend payment date is proposed to be:

  • 6 October 2020 – the amount of PLN 97,288,199.58 (say: ninety seven million two hundred and eighty eight thousand one hundred and ninety nine zlotys 58/100), i.e. PLN 10.14 per share (say: ten zlotys 14/100);
  • 4 November 2020 – the amount of PLN 197,550,693.23 (say: one hundred and ninety seven million five hundred and fifty thousand six hundred and ninety three zlotys 23/100), i.e. PLN 20.59 per share (say: twenty zlotys 59/100).

Recommending to the AGM the dividend payment in two tranches at the aforesaid dates, the Management Board of the Company considered the possible increased demand for financial liquidity at the end of the third quarter and beginning of the fourth quarter of the current year, resulting from the up-to-date internal estimations.

The final decision regarding profit distribution for the reporting year 2019 and dividend payment will be made by the Annual General Meeting.