Grupa Azoty Zaklady Azotowe Pulawy : Current Report No. 5/2017 Recognition of impairment loss on shares

Subject: Recognition of impairment loss on shares

Legal basis: Art. 17.1 of MAR - Inside information

Text of the report: The Management Board of Grupa Azoty Zakłady Azotowe Puławy S.A. (the 'Company') announces the anticipated effect of a one-off non-cash event on the Company's 2016 separate financial statements. On February 6th 2017, the Management Board resolved to recognise an impairment loss of PLN 18.9m on the Company's shareholding in the subsidiary Zakłady Azotowe Chorzów S.A. (the 'Subsidiary') due to the negative results posted by the Subsidiary, especially with respect to the fat processing unit.

The effect of the impairment loss on shares in Zakłady Azotowe Chorzów S.A. on the Company's 2016 separate financial results is as follows:
a) effect on pre-tax profit/loss: PLN - 18.9m
b) effect on net profit/loss: PLN - 15.3m

The impairment loss on shares in Zakłady Azotowe Chorzów S.A. will have no effect on the Company's consolidated net profit/loss. As the Company's financial statements are currently being audited, the above amounts are not final and may be subject to change. The full-year report of Grupa Azoty Zakłady Azotowe Puławy S.A. will be published on March 16th 2017.

Legal basis: Article 17(1) of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC (OJ EU of June 12th 2014, No. L 173/1, as amended).