Announcement.

LABO PRINT SA (16/2018) Information on the conclusion of transactions securing the exchange rate of the Issuer's revenues.

The Management Board of Labo Print S.A. (hereinafter the Company, the Issuer) informs that on 23, 24 and 25 May 2018, it entered into currency option transactions hedging the risk of volatility of the zloty against the euro.
These transactions have been concluded with PKO Bank Polski S.A. (Transaction 1), Bank Zachodni WBK S.A. (Transaction 2 and Transaction 3) and ING Bank Śląski S.A. (Transaction 4) (Total Transactions).
As part of Transaction 1, the Issuer entered into transactions for exchange rate options totaling EUR 3.1 million, ie PLN 60,000 each. euro for a period of 52 weeks. In accordance with the terms of Transaction 1, the Issuer secured the settlement of future revenues realized in euro in such a way that:
• in the event of zloty appreciation against the euro and the euro market exchange rate against the zloty below the corridor lower limit, set at 4.31 EUR / PLN, and in the case of the zloty depreciating against the euro and the euro market exchange rate against the zloty above the upper limit of the corridor, set at 4.48 EUR / PLN, the Company will settle the sale of the euro at a guaranteed rate equal to the lower border of the corridor,
• in the event of the euro market exchange rate against the zloty between the corridor borders, the Company will account for the sale of the euro at the market rate.
Under Transaction 2, the Issuer entered into exchange rate option transactions in a total of EUR 2.5 million, ie PLN 50 thousand each. euro for a period of 50 weeks. In accordance with the terms of Transaction 2, the Issuer secured the settlement of future revenues realized in euro in such a way that: in the event of the zloty strengthening against the euro and the euro market exchange rate against the zloty below the corridor's lower limit, set at 4.30 EUR / PLN, and in the case of a weakening of the zloty against the euro and the euro market exchange rate against the zloty above the upper limit of the corridor, set at 4.47 EUR / PLN, the Company will settle the sale of the euro at a guaranteed rate equal to the lower border of the corridor,
• in the event of the euro market exchange rate against the zloty between the corridor borders, the Company will account for the sale of the euro at the market rate.
As part of Transaction 3, the Issuer entered into exchange rate option transactions totaling EUR 1.5 million, ie PLN 30 thousand each. euro for a period of 50 weeks. In accordance with the terms of Transaction 3, the Issuer secured the settlement of future revenuesimplemented in the euro in such a way that: in the case of the zloty strengthening against the euro and the euro market exchange rate against the zloty below the lower border of the corridor, set at 4.30 EUR / PLN, and in the case of the zloty weakening against EUR and the exchange rate of the euro against the zloty above the upper limit of the corridor, set at 4.46 EUR / PLN, the company will settle the sale of the euro at a guaranteed rate equal to the corridor's bottom border,
• in the case of the euro market exchange rate against the zloty between the boundaries of the corridor, the Company will settle the sale of the euro at the market rate.
As part of Transaction 4, the Issuer sold forward contracts for a total of EUR 3.0 million, ie PLN 60,000 each. euro for a period of 50 weeks, at a rate of EUR 4.3471 / PLN. The concluded Transactions hedge the settlement price in total by EUR 10.1 million, i.e. between 60 and 70% of estimated revenues from sales settled in EUR during the hedging period. Estimates of the value of revenues settled in EUR were based on sales results known as at May 25, 2018, taking into account the best knowledge of the Management Board regarding the revenues to be achieved by the end of 2018 and 2019. The Transaction will be settled by the end of May 2019.
As at the date of the Transaction, the Issuer was not party to other transactions hedging the zloty exchange rate to the euro, other than those described in this current report.
Persons representing the company:
• Krzysztof Fryc - President of the Management Board
• Wiesław Niedzielski - Vice President of the Management Board

Source: company website, investor relations, current and periodic reports.

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Company information
Company name:Labo Print SA
ISIN:PLLBPRT00013
NIP:7792385780
Adress: ul. Rabczańska 1 60-476 Poznań
Phone:+48 61 8411889
website:www.laboprint.pl

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