Subject:

Estimated financial results for Q4 2020 and information on the impairment of trademark values

Legal basis:

Art. 17 sec. 1 MAR – inside information.

Content:

The Management Board of R22 S.A. with its registered office in Poznań (the “Company”) hereby announces that on 10.02.2021 it decided to recognise a partial impairment of the value of the Linuxpl.com and Hekko.pl trademarks (the “Impairment”). The decision to recognise the Impairment is related to the successful rollout of the cyber_Folks brand based on the operations previously conducted under the Linuxpl.com trademark (since April 2020) and the Hekko.pl trademark (since October 2020), and the decision to limit further promotion of the former Linuxpl.com and Hekko.pl trademarks. Recognition of the Impairment will reduce the R22 Group’s operating profit for Q4 2020 (Q6 of the 2019/2020 financial year) by PLN 2,1 million and net profit by slightly less than PLN 1,7 million. The Impairment has no impact on EBITDA and, due to its non-cash nature, has no impact on cash flows.

At the same time, the Company publishes the estimated consolidated financial results of the R22 Group for Q4 2020 (Q6 of the 2019/2020 financial year):

• Revenue PLN 70,9 million

• Normalised EBITDA PLN 18,2 million

• Normalised EBITDA excludes one-off costs related to the acquisition of ProfiSMS s.r.o. (CPaaS Segment) and the purchase of H88 S.A. shares by R22 S.A. from Vercom S.A. (R22 Group corporate segment).