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Clarifications to HR on Codere's financial statements

Madrid, October 7, 2019. Codere, a leading international company in the private gaming sector, has reported in relevant fact that its internal control mechanisms have detected certain inconsistencies in the report of the accounting results referred to 2019 of three of its subsidiaries Latin American (Mexico, Panama and Colombia).
The preliminary analysis of these inconsistencies estimates its maximum impact of around 13-18 million euros, on the results published in the first half of the year, and would reduce the company's Adjusted EBITDA expectation for the entire year by approximately 20 million euros. Euros From the investigations carried out so far, no additional impact has been detected in the company's liquidity situation, nor inappropriate cash outflows, the company understanding that it is an isolated incident that only affects the results of those subsidiaries in this year.

As a result of Codere's firm commitment to compliance with all enforceable measures and applicable regulations, the group has activated Internal Control, Audit and Compliance systems, which have allowed detecting such incidents.

Once they are located, a session of the Board of Directors has been convened that took place this afternoon, after which the corresponding relevant fact has been issued to inform the competent authorities, complying with the criteria of maximum transparency and good corporate governance practices of Codere.
In addition, the company's Board of Directors has commissioned a forensic analysis from an independent external consultant of recognized prestige. Once the results of this process are known, which will determine the origin of the inconsistencies and the root of the internal responsibilities or errors, the company will take the pertinent measures to correct the detected disagreements and ensure that they do not occur again.
Codere maintains its commitment to transparency criteria, focusing its efforts on the prevention, monitoring and control of all its processes.
Meanwhile, the company's management team remains fully committed to the group's objectives and is already working on an action plan to mitigate the impact of this situation on the results of the year.

On the other hand, today there has been the voluntary resignation of the director Mr. Alberto Manzanares Secades for “strictly personal reasons, mainly due to the difficulty of reconciling the dedication required by my position as Proprietary Director of CODERE S.A. with my remaining professional obligations. ” This fact is not related to the situation described above, since his resignation has occurred prior to having proof of it and Mr. Alberto Manzanares has not already attended the Council meeting held this afternoon.

About Codere
Codere is a Spanish multinational reference in the private gaming sector that manages more than 57,000 slot machines, 30,000 bingo seats and about 7,900 betting terminals in Latin America, Spain and Italy through points of sale that include 148 gaming rooms, 1,100 recreation rooms, 10,000 bars, 500 betting rooms and 4 racetracks. The Company also develops online game