Current reports

Recommendation of the Management Board on the distribution of profit for 2018

Current Report No 17/2019

Date: 31 May 2019

Legal basis: Article 17(1) of MAR – inside information

The Management Board of Medicalgorithmics S.A. (“Company”) announces that on 20 May 2019, in accordance with the published dividend payment policy (Current Report No 9/2017 of 29 May 2017), it adopted Resolution No 1/05/2019, pursuant to which it recommends that the Company’s Annual General Meeting distributes the entire Company’s net profit for 2018 in the amount of 11,325,272.20 PLN (in words: eleven million three hundred twenty five thousand two hundred seventy two zlotys and 20/100) to the Company’s supplementary capital (the “Recommendation”).

In preparing the Recommendation, the Management Board took into account the possible capital needs of the Medicalgorithmics Capital Group (the “Group”) resulting from the planned change of the Group’s business model in the United States. The change from the model out of the insurance network to the model in the insurance network, i.e. conclusion of long-term contracts for the provision of services directly with private insurers, may temporarily adversely affect the Group’s financial results. However, in the opinion of the Management Board it is necessary to implement medium and long-term objectives of the Group. The Company informed about the change of the business model in the Current Report No 4/2019 dated 1 March 2019.

It should be notated that as at the date of this current report, the Company maintains its current dividend payment policy in the perspective of the following financial years.

The recommendation of the Management Board is subject to approval by the Supervisory Board.

The final decision on the distribution of profit for 2018 shall be taken by the Annual General Meeting of the Company.