Closing transaction of acquisition 51% stakePPIM

11.12.2017 - Report 65/2017: Closing the transaction of acquisition of 51% stake in Pioneer Pekao Investment Management S.A.

UNOFFICIAL TRANSLATION

With reference to the Current Report No. 27/2017 dated 1 June 2017 and Current Report No. 61/2017 dated 22 November 2017, the Management Board of Bank Polska Kasa Opieki S.A. with registered office in Warsaw (hereinafter referred to as the "Bank") hereby informs that on 11 December 2017 the Bank and UniCredit S.p.A. (legal successor of Pioneer Global Asset Management S.p.A.) executed the final sale agreement regarding 14 746 (fourteen thousand seven hundred forty six) shares in Pioneer Pekao Investment Management S.A. with registered office in Warsaw (hereinafter referred to as "PPIM"), constituting 51% stake in share capital and in the overall number of votes in the General Meeting of PPIM for the price of EUR 138 million (one hundred thirty eight million Euro). In consequence, the Bank has become a shareholder holding 100% of PPIM shares and indirectly a 100% stake in share capital constituting 100% of the total number of votes in the General Meeting of Pioneer Pekao Towarzystwo Funduszy Inwestycyjnych S.A. with registered office in Warsaw.

On the day of acquisition of shares referred to above, being simultaneously the day of taking the control over the company, the Bank performed a revaluation of the 49% stake in PPIM held to date. Positive impact of revaluation upon consolidated profit and loss account of Bank Pekao S.A. Group for 2017 amounts to approx. PLN 400 million. The impact of acquisition of PPIM shares upon stand-alone profit and loss account of the Bank is neutral.

The acquisition of PPIM will cause a reduction in CET1 by approx. -0.4 pp at the consolidated level, after the profit referred to above is allocated to own funds.

Legal grounds: Article 17 Item 1 MAR - inside information