Firma Oponiarska Debica S A : Update on the impact of the COVID-19 pandemic on the Company

POLISH FINANCIAL SUPERVISION AUTHORITY

Date: August 10, 2020

Abbreviated name of issuer:

DEBICA

Subject: Supervisory Board's opinion on the distribution of profit for 2019

Legal grounds:

Art. 17 item 1 MAR - confidential information

Report content:

With reference to current reports no. 4/2020, no. 6/2020 and no. 9/2020, the Management Board of TC Dębica SA ( the "Company") provides information on the impact of the COVID-19 pandemic on the Company.

1. The Management Board continues to monitor the impact of the COVID-19 pandemic on the financial, business and operational aspects of the Company and will continue to make appropriate decisions to ensure business continuity and a secure and stable situation for the Company. The scale of the Company's operations is and will be adjusted to the current market situation.
2. The estimated financial results of the Company are as follows:
3. 1. Q2 2020:

− net revenue from the sale of products, goods and materials: 288 741 thousand PLN

1. • net loss: 21 233 thousand PLN
2. Q1 2020:

− net revenue from the sale of products, goods and materials: 797 811 thousand PLN

• net loss: 1 260 thousand PLN

In the opinion of the Management Board, the main factor affecting the Company's results in the second quarter and in the entire first half of this year was the fight against the COVID-19 pandemic and its consequences, including, among others, the stoppage and subsequent reduction of production due to a smaller number of orders resulting from a decrease in the demand on the Polish market demand as well as on foreign markets.

Due to the dynamically changing circumstances, increased market uncertainty and uncertainty as to the further impact of the COVID-19 pandemic (including a possible second wave) on the Company's economy, industry, business partners and consumer behaviour, the Management Board believes that the estimates presented above should not be relied upon as a source of any indication or forecast of the Company's performance in subsequent periods.

At the same time, the Company stipulates that the above data constitute estimates obtained during the preparation of the financial statement and may be subject to change.

The final results will be made public in the form of an interim report for the first half of 2020, scheduled for publication on 14 September 2020.