TOYA : The decision to waive the dividend policy

The Management Board of TOYA S.A. hereby informs that on 18 May 2016 it has resolved a resolution concerning a change in the Company's strategy regarding dividend policy. This change is the cancellation of the dividend policy, about which the Management Board informed in the current report no 10/2013 dated 19 February 2013. At the same time the Management Board informs that this resolution has been submitted and approved By the Supervisory Board of TOYA SA on 18 May 2016.

The Management Board believes that the adoption of this decision is a necessary step which gives the Company the feasibility of further organic growth associated, among others, with continuous expansion of the range of assortment and growth through acquisition projects.

Some acquisition projects require rapid access to funding, without which the Company may have a difficult access to them or even be eliminated. Therefore, leaving the possibility of quick access to capital can facilitate the realization of these acquisition projects. The Management Board of the Company does not prejudge, however, this method of financing for such projects, only indicates that by the part of the providers offering interesting investments the Company can then be seen as a more reliable partner and investor.

The Company informed in the current report no 9/2016 dated 11 May 2016 on the readiness of the Company to enter into negotiations aimed at signing termsheet with MaxCom S.A. This investment will extend the operational capabilities of the Company, increases its potential range, and will contribute to achieving better financial results and will be another element of the further expansion of the Group TOYA. The Management Board does not preclude the taking similar action in the future, which will require significant capital contribution.

Notwithstanding the foregoing, the Company is rapidly increasing both the volume and range of product groups. In the opinion of the Management Board, a further increase of sales volume resulting from the expansion of the offer, will require significant capital resources from current assets of the Company. These funds will be used to finance the growth of receivables, the value of inventories and liabilities.

The costs of purchase of goods and an increase in inventory, in the opinion of the Board, are subject to significant foreign exchange risk at present. The unstable market situation, having a direct impact on exchange rates, translates directly to exchange rate risks and enforces the need to use the potential of the Group TOYA to actively manage their trade liabilities, which should limit the adverse impact of changes in the currency market on the results of the TOYA Group.

In the face of unstable macroeconomic environment, the Management Board recognizes the need to reach the goals to a greater extent based on the Company's own resources, while reducing credit exposure.

These assumptions will allow to minimize the financial risk while increasing operational efficiency of the Company.

The Management Board believes that the termination of the current dividend policy, leaving the profits in the company, while further expansion of the Group TOYA and significant expansion of the range will increase its value for shareholders.

Legal basis:

Art. 56 point 1 of the Act of 29 July 2005 on public offer and conditions for introducing financial instruments to organized trading system and on public companies

Grzegorz Pinkosz President of the Management Board

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