16 April 2020

Motion of the Management Board regarding the distribution of profit for 2018 and payment of dividend

Legal basis: Article 17(1) MAR – Confidential information

Content of the report:

The Management Board of Ten Square Games S.A. with its registered office in Wrocław (the “Company”) hereby announces that on April 16, 2020 it adopted a resolution to submit a motion to the General Meeting of Shareholders of the Company concerning the distribution of net profit for the year 2018 in the amount of PLN 73.796.395,00 (in words: seventy-three million seven hundred ninety-six thousand three hundred ninety-five zlotys) as follows:

  1. he amount of PLN 27.371.906,10 (in words: twenty-seven million three hundred seventy-one thousand nine hundred six zlotys 10/100) was proposed to be distributed among shareholders in the form of a dividend of PLN 3.78 (in words: three zlotys and seventy-eight groszy) per share;
  2. PLN 46.424.488,90 (in words: forty-six million four hundred twenty-four thousand four hundred eighty-eight zloty 90/100) was proposed to be transferred to the Company’s reserve capital.

At the same time, the Management Board of the Company requested the General Meeting of Shareholders to set the dividend date as 29 May 2020 and the dividend payment date as 10 June 2020.

In the justification of the motion, the Management Board indicated that the recommended profit distribution takes into account the amount of profit generated by the Company, the Company’s financial situation, its future capital needs and the current situation in the world and the related uncertainty on the financial markets. In accordance with the dividend policy adopted by the Company, the Company pays out up to 75% of the consolidated net profit in the form of a dividend, whereas taking into account the above mentioned factors, the amount of the dividend for 2019 proposed by the Management Board is 36% of the consolidated net profit and is also consistent with the adopted policy.

The dates recommended by the Management Board for the dividend date and the dividend payment date are consistent with the applicable laws and regulations and the 2016 Code of Best Practice for WSE Listed Companies.
These applications will be reviewed by the Company’s Supervisory Board. The final decision concerning the distribution of profit for the financial year ended 31 December 2019 will be made by the Ordinary General Meeting of the Company.