Grupa LOTOS S.A. (the “Company”) announces that on May 11th 2021 the Management Board of Grupa LOTOS S.A. passed a resolution to recommend to the Company’s Annual General Meeting that the net loss disclosed in the Company’s separate financial statements for 2020 of PLN 881,331,986.81 be fully covered with the Company’s reserve funds.

At the same time, the Management Board will refrain from recommending payment of dividend for 2020 from the reserve funds. In issuing its recommendation to the Annual General Meeting regarding non-payment of dividend, the Management Board took into consideration:

a)       the net loss disclosed in the Company’s separate financial statements for 2020;

b)      the need to execute further important CAPEX projects, including projects covered by the Company’s Strategy;

c)       uncertain outlook for the fuel market stability, related in particular to the developing COVID-19 pandemic, and the resulting need to secure the Company’s liquidity.

The recommendation will be submitted for endorsement to the Supervisory Board of Grupa LOTOS S.A. A final decision regarding coverage of net loss and payment of dividend will rest with the Annual General Meeting of Grupa LOTOS S.A.

Legal basis: Article 17(1) of MAR – Inside information