Announcement of Cersanit S.A. on the sale of assets in the Russian Federation

Kielce, April 5, 2022

Announcement of Cersanit S.A. on the sale of assets in the Russian Federation

The war and the senseless deaths of Ukrainian citizens are an unimaginable drama and it is impossible to find a rational explanation for this situation. Cersanit has been supporting Ukraine from the very first day of this tragedy. We focus our efforts primarily on providing multifaceted assistance to the employees of our plants in Ukraine and their families, ensuring their safety and the conditions for surviving difficult times. We also provide significant financial support.

At the same time, for over three weeks, the owner and management board of Cersanit S.A. have been negotiating the sale of all of the company's assets in Russia. Negotiations are being conducted with investors from China, the United Arab Emirates and Turkey. The assets being sold mainly consist of three large production plants in Fryanovo, Kuchino and Syzran, as well as trade organization.

In these circumstances, the sale of assets in Russia (where Cersanit has been present since 1998) is the only definite and final step that we can take so as not to be wrongly accused of any involvement in the conflict or even of indirectly supporting it. We would like to stress that since February 24, we are implementing the decision to suspend all investments in our Russian plants, both planned and ongoing. The total value of these investments was EUR 83 million.

We are announcing our withdrawal from the Russian market with a delay, because our highest priority has always been to ensure the safety of our employees in Ukraine, as well as those working in Russia.

We will provide further information regarding the transaction as the negotiations progress and in agreement with the buyer.

Mariusz Sośnierz
President of the Management Board of Cersanit S.A.