Current Report No. 21/2019

Date of the report: May 29th 2019

Subject: Modification of 2019-2024 Strategy

Legal basis: Art. 17(1) of MAR - Inside information

Text of the report:

The Management Board of KRUK S.A. ("Company") announces that on May 29th2019 it passed a resolution to modify the corporate strategy for2019-2024 ("Strategy"), as announced in Current Report No. 44/2018, tothe extent pertaining to the Company's key objective stated in theStrategy, i.e. achievement of the PLN 700m net profit target by 2024("Strategic Objective"). The Company modified the Strategic Objectivefor 2019-2024 to read as follows ‘grow the business by expanding thescale of operations and improving process efficiency at the KRUK Group'.The Strategic Objective was changed after the Polish FinancialSupervision Authority ("PFSA"), in the course of proceedings to approvethe base prospectus for KRUK S.A. bonds, presented a statutoryinterpretation that led it to conclude that the previous StrategicObjective was a profit forecast. KRUK S.A. has never published and doesnot intend to publish any earnings forecasts. The modification of theStrategic Objective (cancellation of the previous Strategic Objective)was caused solely by the Company's intention to implement the PFSA'sconclusion referred to above, with the remaining part of the Strategyremaining unchanged. There are no other reasons for modifying theStrategic Objective. In particular, the Company's financial position andbusiness environment, or their perception by the Company's ManagementBoard, have not changed. The modification of the Strategic Objectivedoes not affect the Management Board's approach to the Strategyimplementation or the Company's growth prospects. The full text of theStrategy is available on the Company's website.