12/2023 – Completion of the Cyclical Contract Review Process for Trakcja S.A. for Q1 2023

The Management Board of Trakcja S.A. (the “Company,” the “Issuer”) announces that today it has completed the cyclical review process of long-term contracts for the first quarter of 2023, i.e., from January 1 to March 31, 2023, in preparation for the consolidated report for Q1 2023, ending March 31, 2023. As a result, the Management Board is disclosing the impact of this review on the Company’s financial results for the period.

As part of the cyclical contract review, contract budgets were updated considering the nature, amounts, timing, and uncertainties regarding revenues and cash flows arising from their execution. During the budget update, an analysis of opportunities and threats was conducted, identifying and taking into account technical, execution, and liquidity risks, as well as risks related to the extension of contract execution.

In the first quarter of 2023, the total impact of the contract budget updates on the Company’s gross result was negative, amounting to PLN 8,319 thousand.

The main factors that most negatively affected the update amount were:

1. Higher general costs due to the extension of contract execution.
2. Exclusion of certain works from the execution scope.

At the same time, there was a positive impact on the gross result in Q1 2023 due to the update of contract budgets concerning: 3. An increase in the value of contract adjustments.

Preliminary financial results will be disclosed after the completion of data collection and preliminary accounting closure.

The final financial results of the Company and the Group will be disclosed in the consolidated report for Q1 2023, ending March 31, 2023, which, according to the adopted reporting calendar, will be published on May 24, 2023.

Legal Basis: Article 17(1) MAR