Resolution on conditional advance payment towards future dividend for financial year 2019

11 September 2019

The Management Board of Echo Investment S.A. hereby provides the contents of a resolution concerning a conditional advance payment towards a future dividend for financial year 2019.

RESOLUTION

of the Management of Echo Investment S.A.

on conditional advance payment towards future dividend for financial year 2019

dated 11 September 2019

§ 1

Pursuant to art. 349 § 1 of the Code of Commercial Companies and § 20 of the Articles of Association, having taken into consideration that the approved separate financial report of the Company for the financial year 2018 included a net profit of PLN 42,431,650.15, the Management Board of Echo Investment S.A. seated in Kielce (hereinafter referred to as the Company) decides to conditionally pay an advance towards a future dividend for financial year 2019 (hereinafter referred to as the Dividend Advance Payment) to Company’s shareholders subject to the following conditions:

1. The total amount earmarked for the Dividend Advance Payment will amount to PLN 206,345,291 (two hundred six million three hundred fourty five thousand two hundred ninety one zloty 00/100) i.e. PLN 0.50 per share (hereinafter referred to as the "Amount of Dividend Advance Payment"). The Amount of Dividend Advance Payment does not exceed half of the Company"s profit generated until the end of the previous financial year, which was published in the financial report dated 30 June 30 2019 and referring to the period from 1 January 2019 to 30 June 2019, which was assessed by an auditor representing Ernst&Young Audyt Polska Sp. z o.o. Sp.k. seated in Warsaw, increased by a reserve capital created in order to pay an overdue dividend or make an advance payment towards the dividend and deducted by uncovered losses and own shares.
2. The number of shares covered by the Dividend Advance Payment amounts to 412,690,58 as at the date of the Resolution.
3. The Dividend Advance Payment will be paid until 21 October 2019 (the Payment Date of the First Instalment of Dividend Advance Payment).
4. Shareholders who hold Company"s shares on 14 October 2019  i.e. 7 days before the Payment Date of the First Instalment of Dividend Advance Payment will be entitled to the Dividend Advance Payment.

§2

The Dividend Advance Payment will be made subject to the following conditions:

(a) approval of the Supervisory Board;

(b) assessment of the Company"s financial report for the period from 1 January 2010 until 30 June 2019 by an auditor representing Ernst&Young Audyt Polska Sp. z o.o. Sp.k., which will involve a confirmation of Company"s planned net profit generated from the end of the previous financial year;

before the Payment Date of the First Instalment of Dividend Advance Payment.

§ 3

The resolution enters into force upon adoption.

Legal basis: Art 17 section 1 MAR – confidential information