7/2021 Failure to meet the financial ratio in the loan agreement by the subsidiary Helios S.A.

The Management Board of Agora S.A. informs that in the course of preparations for the publication of financial results for the first quarter of 2021, it became aware of the failure of Helios S.A. to maintain one of the financial ratios specified in loan agreements - the capitalization ratio calculated as the equity-to-asset ratio, included in the loan agreement with BNP Paribas Bank Polska S.A. ('Bank').

The failure to maintain the ratio was mainly due to the prolonged closure of cinemas connected to the outbreak of the COVID-19 pandemic. As a result of the failure to maintain the ratio Helios S.A. will reclassify PLN 5 million of long-term liabilities into short-term ones at the balance sheet date. The total value of the loan used under the loan agreement amounted to PLN 7.2 million as at the balance sheet date.

At the same time, Agora S.A. received information that the Bank informed the management board of Helios S.A. that the failure to maintain the capitalization ratio was not considered a breach of the terms of the loan agreement. Due to the ban on the operation of cinemas until 29 May 2021, there is a high probability that Helios S.A. will not meet the current financial ratios indicated in the agreement with the Bank also in the second quarter of 2021. The company will provide detailed information on this in the financial statements for the period to which this will apply.

Legal basis: Art. 17 sec. 1 of the Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directive 2003/124/EC, 2003/125/EC and 2004/72/EC - confidential information.