Recommendation on the allocation of net profit generated in 2020

Legal basis: Article 38 sec. 1 point 11 of the Regulation of the Minister of Finance of 19 February 2009 on current and periodic information provided by issuers of securities and on conditions under which information required by legal regulations of a non-EU member state may be recognised as equivalent (Journal of Laws of 2014, item 133).

The Management Board of Przedsiębiorstwo Przemysłu Spożywczego PEPEES S.A. (the "Company") informs that it has decided to recommend to the Annual General Meeting to allocate the net profit earned in 2020 in its entirety to the capital reserves.
In the opinion of the Company's Management Board, allocation of the entire net profit for the financial year 2020 to the Company's capital reserves is consistent with the existing strategy of Pepees Group, which aims to build long-term value for shareholders through reinvestment of profits for further development of the Company and its capital group.
Pursuant to Art. 382.3 of the Commercial Companies Code, the Company's Supervisory Board issued a positive opinion on the Management Board's recommendation.
The final decision on profit distribution for financial year 2020 will be made by the Company's Annual General Meeting.