Restricted ability of subsidiaries to transfer funds to the Parent in the form of dividends

As a result of repayment of all investment facilities by LOTOS Paliwa Sp. z o.o., the restriction stipulated in the facility agreements and concerning the amount of cash surplus generated in a financial year that could be allocated to dividend payment ceased to apply.

As at December 31st 2020, the ability of LOTOS Asfalt Sp. z o.o. to pay dividend was restricted the credit facility agreement for the financing of the EFRA Project, whereby distribution of dividends is not permitted before the first instalment of the credit facility is paid and the EFRA Project is completed (the first instalment was paid on December 21st 2018) . Payment of dividends from operating cash flows is conditional upon fulfilment of the requirements defined in the agreement, including generation of a sufficient cash surplus and achievement of financial ratios at prescribed levels. As of December 31st 2021, the above restriction was not in effect.

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