CR 32/2024 Notice of the Management Board of LPP SA on the key terms and structure of the transaction of sales of 100% of Re Trading OOO shares agreed on 8-10 May 2022, published in connection with the application for reinstatement of the deadline submitted by LPP SA to the KNF on 13 December 2024

Current report no: 32/2024
Date: 13 December 2024
Time: 06:28 PM

The Management Board of LPP SA (the “Issuer”, the “Company” or “LPP”) announces that on 13 December 2024, the Company applied to the Polish Financial Supervision Authority (KNF) for reinstatement of the deadline for compliance with the disclosure obligation regarding the key terms and structure of the transaction for the sale of 100% of the RE Trading OOO shares (the “Transaction”) by the Company agreed by the parties to the negotiations concluded on 10 May 2022. The application was submitted pursuant to Article 15zzzzzn² of the Act of 2 March 2020 on special arrangements relating to the prevention, counteracting and combating of COVID-19, other infectious diseases and emergencies caused by them.

This current report presents attached the course of the negotiations concerning the sale by the Company of 100% of its shares in OOO Re Trading established in Moscow (“Re Trading”) and the arrangements regarding the key terms and structure of the Transaction.

At the same time, the Issuer presents a summary of information concerning the process of the Issuer’s exit from Russia which has already been disclosed.

The report was prepared with reference to:

• the Company’s current reports in which LPP announced the closure of its operations in Russia and its exit from the Russian market as a consequence of Russia’s aggression against Ukraine in February 2022, numbers 06/2022, 09/2022, 12/2022, 17/2022 and, in particular, report number 19/2022, in which the Company informed of the Transaction;
• interim reports of the Company: the interim consolidated report on the operations of the LPP SA group for the first half of the financial year 2022/ 2023 (“SSF 1H2022”) and the consolidated annual report of the LPP SA group for the financial year 2022/23 (“SSF 2022”), in which LPP informed, in particular, about the sale price of the shares in RE Trading and the terms of its payment, the transitional period of providing the support for RE Trading and the put option available to the buyers of the shares in RE Trading;
• the current reports of the Company published as a consequence of the publication of the report entitled “Operating Behind Enemy Lines: How Fashion Powerhouse LPP S.A. Masked A Fake Russia “Sell-Off” Using Front Entities And Encrypted Barcodes” by Hindenburg Research LLC no. 4/2024, 5/2024, 6/2024; and
• meetings of the Company with investors on 18 March 2024 and 27 March 2024, the materials of which are available on the LPP website at the following link: https://www.lpp.com/en/investor-relations/materials-for-investors/investor-presentations/.