Motion of the Management Board of Grupa Kęty S.A. with regard to 2020 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 8 April 2021 it passed a resolution recommending to the Annual General Meeting:

a) allocation of the net profit generated by the Company in 2020, amounting to PLN 296,153,755.03 (say: two hundred and ninety six million one hundred and fifty three thousand seven hundred and fifty five zlotys 03/100) in the following manner:

• the amount of PLN 295,935,869.03 (say: two hundred and ninety five million nine hundred and thirty five thousand eight hundred and sixty nine zlotys 03/100) to be allocated to dividend payment to the shareholders;
• the amount of PLN 217,886 (say: two hundred and seventeen thousand eight hundred and eighty six zlotys 00/100) to be allocated to the coverage of the actuarial loss of the year 2020 related to the adjustment of the provision for employee benefits;

b) utilisation of the Company reserve capital by allocating the amount of PLN 134,214,208.66 (say: one hundred and thirty four million two hundred and fourteen thousand two hundred and eight zlotys 66/100), 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 430,150,077.69 (say: four hundred and thirty million one hundred and fifty thousand seventy seven zlotys 69/100), i.e. PLN 44.67 per share, in reference to the number of shares of the Company as at the date of passing this resolution (9,629,507).

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

At the same time, the Management Board of the Company confirms that in accordance with their estimations the amount of the Company reserve capital remaining after the utilisation of some of the capital in the manner referred to above, i.e. after the allocation to dividend payment of the amount allowed by the binding regulations, equals PLN 38,514,646.53.

Moreover, in the motion of the Management Board of Grupa Kęty S.A. on 2020 profit distribution, the Issuer’s Management Board proposes 31 May 2021 as the dividend record day, whereas the dividend payment date is proposed to be:

• 18 June 2021 – the amount of PLN 129,035,393.80 (say: one hundred and twenty nine million thirty five thousand three hundred and ninety three zlotys 80/100), i.e. PLN 13.40 per share (say: thirteen zlotys 40/100);
• 31 August 2021 – the amount of PLN 301,114,683.89 (say: three hundred and one million one hundred and fourteen thousand six hundred and eighty three zlotys 89/100), i.e. PLN 31.27 per share (say: thirty one zlotys 27/100).

Recommending to the Annual General Meeting 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 second quarter and beginning of the third quarter of the current year, resulting from the up-to-date internal estimations.

The recommendation by the Issuer’s Management Board was submitted to the Supervisory Board of the Company, which on 8 April 2021 – 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 2020 as well as dividend payment.

The final decision regarding profit distribution for the reporting year 2020 and dividend payment will be made by the Annual General Meeting.