Chairman of the Supervisory Board Statement Letter

Dear Investors,

2017 was a period of ambitious projects carried out by the PZU Group, whose powerful influence as a national champion is taking on greater significance. The dynamic growth in the Group’s results posted in 2017 generates shareholders’ earnings and also contributes to the growth of other branches of the polish economy such as finance, trade, car repair, real estate and logistics.

The initiatives completed last year have been endorsed by the entire Supervisory Board and the market. In particular, it is noteworthy that S&P Global Ratings, an American firm, has raised PZU’s rating outlook from negative to stable.

One of the most important transactions executed last year from PZU’s vantage point undoubtedly contributed to that rating, i.e. the finalization of the acquisition of a 32.8% equity stake in Bank Pekao SA jointly with the Polish Development

Fund for a total amount of PLN 10.6 billion. This acquisition confirms the Management Board’s determination in pursuing the PZU 2020 strategy calling for a strong footprint in Poland’s banking sector. This investment has enabled the PZU Group to become the largest group offering comprehensive financial services in Poland and Central and Eastern Europe with a total balance sheet value in excess of PLN 317 billion.

We stand behind the PZU Group’s growing commitment to sustainable development. As a company open to dialogue and social expectations, PZU endeavors to set trends and construe business solutions in line with the expectations of its key stakeholders. At present, PZU is more and more actively getting involved in social projects related to prevention, as well as employee and environmental issues, and in the future, this will drive the formation of its long-term competitive advantage.

Within the framework of the “New PZU” strategy the detailed indicators and ambitions have been presented as they address material non-financial issues. The implementation of these projects will augment PZU’s investment and image-related value while translating into its intrinsic value generated at the level of business profitability.

PZU’s prospects for the upcoming years provide ample cause for satisfaction. I am convinced that the Management Board’s ongoing persistent actions in the context of the newly-adopted strategy will generate high added value for the shareholders, clients and employees.

Respectfully,
Maciej Łopiński
Chairman of the PZU Supervisory Board