Report 7/2020

The Management Board of EMC Instytut Medyczny S.A. (hereinafter referred to as ‘the Issuer’, ‘the Company’)  announces that in connection with the current epidemiological situation related to the spread of SARS-CoV-2 corona virus, the Issuer, as a medical entity, is currently operating in the conditions in which the entire health service has found itself.

The consequence of the COVID pandemic include the increase in the current operating costs of the Company, in particular the cost of purchasing materials (masks, gloves, etc.), the need to stockpile medicines and to fulfil new obligations arising from legal provisions. In addition, the Issuer's Management Board has recognized the risk of decreased revenues due to patients cancelling appointments and medical procedures, and the need to suspend the above.

It is impossible for the Issuer to precisely indicate exactly what costs will be generated by operating in the current circumstances, because the situation in the health care system is changing dynamically along with the increase in the number of infections detected. We are currently assessing the impact that the outbreak will have on the Issuer's financial results.

At present, the Issuer's day-to-day operations are not threatened and the Management Board does not consider the risk of losing financial liquidity, however, temporary problems may not occur, depending on the development of events, especially the rate of increase in SARS-CoV-2 infection.

In the event of significant events occurring that may involve estimating of specific costs related to operating in the existing epidemics, as well as new threats emerging; the Issuer will inform the public in separate reports.

The information is considered as confidential by the Issuer due to the significant impact of the coronavirus outbreak on the entire economy, and in particular on entities that operate in the health care sector to which the Issuer belongs.