Legal basis: Art. 17 par. 1 MAR MAR - confidential information
Subject: Request of the Management Board of VRG S.A. to the Ordinary General Meeting regarding the method of distributing the Company's net profit for the financial year 2024
The Management Board of VRG S.A. with its registered office in Kraków (the "Company") hereby informs about the adoption on 15 May 2025 of a resolution on the acceptance of the motion of the Management Board of VRG S.A. in Kraków to the Ordinary General Meeting of the Company regarding the method of distributing the Company's net profit for the financial year 2024. The above motion contains a recommendation not to pay a dividend from the profit for 2024 and to allocate the net profit shown in the Company's financial statements for the financial year 2024 in the amount of PLN 8,071,360.17 in full to the reserve capital.
The above recommendation assumes a departure from the dividend policy adopted by the Management Board of the Company on May 18, 2022 (the "Dividend Policy") in relation to the distribution of profit for 2024. The recommendation results from the desire to provide the Company with the capital necessary for the further development of its operations and the implementation of planned investments concerning, among others, the development of the clothing and jewelry segments in the scope of infrastructure supporting business management processes, as well as the opening of new or renovation of existing retail spaces of stationary showrooms of the Company's Capital Group brands.
The recommendation to distribute the net profit shown in the Company's financial statements for 2024, referred to above, meets the requirements of Article 395 § 2 item 2) in connection with Article 396 of the Commercial Companies Code.
At the same time, the Management Board informs that the Supervisory Board of the Company, at its meeting on May 15, 2025, adopted a resolution on the basis of which it made a positive assessment of the above proposal of the Management Board.