ZPC Otmuchow : Current report No. 34/2016

Otmuchow, November 24th 2016

Current report no 34/2016

Subject: Updated assumptions strategic directions of development of the ZPC Otmuchów.

In reference to the current report No. 3/2016 of 30 March 2016 and the information provided in the periodic reports published in 2016 to update the assumptions of strategic directions of development of the ZPC Otmuchów (the Issuer, the Company) and the strategy of the Group in 2016, the Management Board of the Issuer informs that after verification strategic objectives and the current implementation of the strategy on the basis of strategic directions updated in March, on 24 November 2016 the Supervisory Board approved the adoption of updating the strategic directions of development of the ZPC Otmuchów made by the Board that entered into force on the same day.

Development of the Group will be led by intensifying activities in the areas indicated below:

• To improve profitability by diversifying sales channels, including the development of exports,

• Maintaining the important role of business in the area of B2B sales and Private Label, in particular organic growth of the cooperation with key customers in Poland and abroad,

• Investments in the development of existing and acquisition of new, technologically advanced products,

• Exploiting the potential of the brand of the producer available to the Group,

• Carrying out divestments on a limited basis, ie. in the area of pellet and chips.

Current report ZPC OTMUCHOW S.A.