9/2017 Recommendation concerning the policy for payment of dividend

Adoption by the Management Board of Medicalgorithmics S.A. of a resolution on the approval of a recommendation concerning the policy for payment of dividend from the profit earned by Medicalgorithmics S.A. in the financial year 2016 and thereafter

Current report 9/2017

The Management Board of Medicalgorithmics S.A. (“Company”) hereby announces that on 29 May 2017 it adopted a resolution on the approval of a recommendation concerning the policy for payment of dividend from the profit earned by the Company in the financial year 2016 and thereafter.

Pursuant to Resolution No 03/05/2017 adopted by the Company’s Management Board on 29 May 2017:

1. The Company’s Management Board recommends the following dividend for the financial year 2016:

– PLN 2.00 per share eligible for dividend paid out of the Company’s net profit reported in the Company’s financial statements for the financial year 2016;

and allocation of the remaining portion of the net profit to the supplementary capital.

2. Subject to the provisions of clauses 3, 4 and 5 below, it is the Management Board’s intention that the payment of dividend from the profit earned by the Company for financial years following the financial year 2016 be set at the level of up to 50% of the Medicalgorithmics Capital Group’s consolidated net profit attributable to shareholders of the parent company for a given financial year based on the consolidated financial statements and that the remaining portion of profit be allocated to supplementary capital.
3. In the event of actual or anticipated capital needs of the Company of significant value, the Management Board’s recommendations regarding the payment of dividend from the profit earned by the Company for the financial years 2017, 2018 or 2019 may be set at the level of 20% of the consolidated net profit of the Medicalgorithmics Capital Group attributable to shareholders of the parent company for a given financial year on the basis of the consolidated financial statements and the remaining part of profit may be allocated to the supplementary capital.
4. The possibility of dividend payment from the Company’s net profit disclosed in the Company’s financial statements for the financial year 2017, 2018 or 2019 may be excluded or limited due to the provisions of the terms of issue of securities (in particular bonds) issued by the Company;
5. The ultimate recommendation of the Management Board concerning the distribution of profit generated in the Capital Group will be based on the market, financial and liquidity position of the Group, current and future liabilities and provisions related thereto, determining the maximum level of debt.
6. The Management Board will recommend days on which the list of shareholders entitled to receive dividends and the dividend payment dates will be determined, with due regard for the need to carry out this process in an efficient manner.

The ultimate decision on the distribution of the Company’s net profit for the financial year 2016 and subsequent financial years will be made by the Ordinary General Meeting of Shareholders.