Current reports

Recommendation of the Management Board on the distribution of profit for 2019

Current Report No 33/2020

Date: 6.07.2020

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

The Management Board of Medicalgorithmics S.A. (“Company”) announces that on 3 July 2020, in accordance with the published dividend payment policy (Current Report No 9/2017 of 29 May 2017), it adopted Resolution No 2/2020, pursuant to which it recommends that the Company’s Annual General Meeting distributes the entire Company’s net profit for 2019 in the amount of 16,593,783.57 (words: sixteen millions five thousand ninety three seven hundred eighty three 57/100) PLN to the Company’s reserve capital (the “Recommendation”).

Preparing the Recommendation, the Management Board took into account the possible financial needs of the Medicalgorithmics Capital Group (the “Group”) resulting from the ongoing COVID-19 pandemic, which may have a temporary negative impact on the Group’s financial results and possible financial needs for continuing the change of the Group’s business model from the model outside the insurance network to the model in the insurance network in the context of achieving short and long-term plans of the Group, which may temporarily negatively affect the Group’s financial results.

The Company announced the impact of the COVID-19 pandemic on the Issuer’s operations in Current Reports No. 20/2020 and No. 27/2020.The Company informed about the change of the business model from the model outside the insurance network to the model in the insurance network 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 2019 shall be taken by the Annual General Meeting of the Company.