MANAGEMENT BOARD REPORT ON ACTIVITIES OF THE CIECH GROUP AND CIECH S.A. IN 2020
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On 26 March 2021, a new letter of intent was signed on the
continuation of cooperation in the construction of waste incin-
eration plants, and details are provided in the current report
No. 9/2021.
Use of available financing
In the first quarter of 2020, all funds available under the re-
volving credit lines made available to CIECH S.A. under the
agreement with the consortium of banks of 9 January 2018
and the facility agreements of 18 April 2019 were disbursed:
✓ 17 February 2020 – disbursement of the amount of PLN
60,000 thousand – funds disbursed to finance the
Group's current liquidity needs,
✓ 19 March 2020 and 23 March 2020 - disbursement of
the amount of PLN 442,788 thousand - funds disbursed
in order to maximize the level of available liquidity and
minimize the risk of unavailability of financing in con-
nection with the growing uncertainty of economic de-
velopments due to the COVID-19 epidemic.
The current debt balance is reported in Section 3.5.7.
Letter of intent concerning the construction of a waste
treatment installation
On 23 March 2020, a letter of intent was signed between CIECH
S.A., CIECH Soda Polska S.A., Budimex S.A., EEW Energy from
Waste GmbH, EEW Energy from Waste Polska sp. z o.o., FBSer-
wis S.A. and the Municipality of Janikowo, on their cooperation
in the implementation of the investment project, consisting in
the construction by EEW, EEW Polska and FBSerwis of a thermal
waste treatment installation. The primary objective of the in-
stallation will be to supply CIECH Soda Polska S.A.'s production
plant, located in Janikowo, with thermal energy (process
steam). For details on the planned project, see current report
No 13/2020.
Voluntary redundancy programme
On 25 March 2020, a decision was made to implement, as of
1 April 2020, the Voluntary Redundancy Programme with re-
gard to employees of CIECH Soda Romania S.A. and the CIECH
S.A. Branch in Romania, and to launch, as of 27 March 2020,
the collective redundancy procedure with regard to employ-
ees of CIECH Soda Romania S.A. For details, see current re-
port No 14/2020.
Agreement for the execution of a significant project
On 2 April 2020, as part of a significant investment project,
involving the construction of an evaporated salt production
plant in Stassfurt in Germany, a subsidiary of CIECH S.A. –
CIECH Salz Deutschland GmbH – signed an agreement with
Adamietz Sp. z o.o. with its registered office in Strzelce Opol-
skie, for the execution of design, construction and assembly
works aimed at constructing the facilities making up the Pro-
ject. The total value of the Agreement is EUR 44,100 thou-
sand. CIECH Salz Deutschland GmbH is a special purpose ve-
hicle and a wholly-owned subsidiary of CIECH S.A., which
took over the salt business in Germany from CIECH Soda
Deutschland GmbH & Co.KG.
Reverse factoring agreements
On 7 April 2020, CIECH S.A. and its subsidiaries:
CIECH Sarzyna S.A., CIECH Pianki Sp. z o.o., CIECH Soda Polska
S.A. and CIECH Vitrosilicon S.A. entered into a supplier financ-
ing agreement (reverse factoring agreement) with BNP Pari-
bas Faktoring sp. z o.o. The conclusion of the Agreement fits
in well with the CIECH Group's policy aimed at limiting risks
related to the current market situation. Reverse factoring is
to ensure an improvement in the companies’ liquidity. For
details on the agreement, see current reports No 17/2020
and 21/2020.
Appointment of a Member of the Management Board
On 20 April 2020, the Supervisory Board of CIECH S.A.
appointed Mr Jarosław Romanowski as a Member of the
Management Board of CIECH S.A.
Resignation of a Supervisory Board Member
On 20 May 2020, Mr Tomasz Mikołajczak resigned as Mem-
ber of the Supervisory Board of CIECH S.A. Mr Tomasz
Mikołajczak served as Vice-Chairman of the Supervisory
Board of CIECH S.A.
Appointment of a Supervisory Board Member
On 21 May 2020, the Annual Shareholders’ Meeting of
CIECH S.A. appointed Mr Martin Laundenbach as a new mem-
ber of the Supervisory Board of CIECH S.A.
Consent to raising financing
On 21 May 2020, the Annual General Meeting of CIECH S.A.
gave its consent to CIECH S.A. or its subsidiaries raising fi-
nancing through the issue of bonds by CIECH S.A. or its sub-
sidiaries on international markets or the Polish market, con-
tracting credit facilities, contracting loans, incurring debt in
any other form or by combining various financing instru-
ments, provided however that the claims of entities provid-
ing such financing may be subordinated to the claims of cred-
itors of CIECH S.A.'s existing debt. The total amount of addi-
tional financing will not exceed PLN 500 million or its equiva-
lent in other currencies. For details, see current report No
24/2020.
Authorisation to purchase CIECH S.A.’s treasury shares
On 21 May 2020, the Annual General Meeting of CIECH S.A.
authorised the Management Board of CIECH S.A. to purchase
fully paid shares issued by CIECH S.A. (“Treasury Shares”)
from one or more of CIECH S.A.'s shareholders. Treasury
Shares may be acquired in particular for the purpose of:
✓ their cancellation by way of reduction of the share cap-
ital of CIECH S.A.,
✓ their resale against remuneration;
✓ using them to acquire or exchange shares or interest in
any other companies.
The total number of Treasury Shares purchased will not be
greater 7.7million shares of CIECH S.A., representing approx.
14.61% of the share capital, provided however that under no
circumstances will the total number of Shares purchased be
greater 20% of CIECH S.A's share capital, taking into account