Recommendation of the Izostal S.A. Management Board concerning non-payment of dividends from the profit for 2015.

Legal basis: Art. 56 Clause 1 Item 2 of the Offering Act - current and periodic information.
 
CONTENT OF THE REPORT:
On 14 March 2016 the Management Board of Izostal S.A. (Company) adopted a resolution on addressing a request to the General Meeting of Shareholders with a proposal regarding distribution of the net profit generated in 2015.
Pursuant to the resolution, the Management Board of Izostal S.A. decides to apply to the General Meeting of Shareholders and Supervisory Board for allocating the total net profit for 2015 for the Company’s supplementary capital and thereby non-paying dividends for 2015.

Justification of the recommendation:
The key recipient for the Company - the Gas Transmission Operator Gaz-System S.A. starts executing tenders under the 2nd Framework Agreement of April 2015 (1057 km of DN1000 and DN 700 pipes). Net value of the Framework Agreement is PLN 1.8 bn. The first tenders settled in 2015 from which Izostal S.A. cashes PLN 109,992 thousand with the time of delivery up to 31.07.2016. On the basis of the information available, it appears that a substantial part of them shall be cashed in 2016 and 2017 what shall generate an additional need for financial resources essential to process orders.
Therefore, the Management Board considers it appropriate to keep the generated net profit for 2015 in the Company and allocate it for the supplementary capital for executing contracts.

Specific legal basis: § 38 clause 1 item 11 of the Ordinance of the Minister of Finance of February 19, 2009 on current and periodic information disclosed by the issuers of commercial papers and the conditions for recognizing as equivalent the information required by the laws of a non-member state (Journal of Laws No. 33, item 259 as amended).

SIGNATURES OF PERSONS REPRESENTING THE COMPANY:
Management Board President, Marek Mazurek 2016-03-15
Management Board Vice President, Michał Pietrek 2016-03-15
 
INFORMATION ON THE ENTITY:
Full name of the issuer: IZOSTAL SPÓŁKA AKCYJNA
Abbreviated name of the issuer:  IZOSTAL S.A
Sector based on the classification of Warsaw Stock Exchange:  Other industry
Address: 47-113 Kolonowskie Opolska 29
Telephone: (77) 405 65 00
Fax: (77) 405 65 01
e-mail:info@izostal.com.pl
www.izostal.com.pl
VAT No. [NIP]:756-00-10-641
Statistical No. [REGON]: 530884678