3/2024 – Completion of the Cyclical Review Process of Contracts of Trakcja S.A. for the Fourth Quarter of 2023

The Management Board of Trakcja S.A. (the “Company,” the “Issuer”) informs that today the process of cyclical review of long-term contracts for the fourth quarter of 2023, i.e., from October 1 to December 31, 2023, has been completed for the purpose of preparing the Company’s individual financial statements for the 12-month period ended December 31, 2023. In connection with this, the Management Board of the Company discloses its impact on the Company’s financial results for this period.

As a result of the cyclical contract review, the budgets were updated regarding their nature, amounts, timing, and uncertainties related to revenues and cash flows arising from their execution. During the budget update, an analysis of opportunities and threats was conducted, which identified and accounted for technical, implementation, and liquidity risks, as well as those related to the extension of contract execution.

In the fourth quarter of 2023, the total impact of the contract budget updates on the Company’s gross result was positive and amounted to PLN 50,036,000.

The main factors that positively influenced the update amount were:

1. Recognition of revenue from mediation;
2. Increase in the value of contract indexation;
3. Acquisition of additional orders for currently ongoing tasks.

At the same time, the negative impact on the gross result in the fourth quarter of 2023 was due to the contract budget updates concerning:

1. Recognition of contractual penalties settled during mediation;
2. Updating the estimate of costs due to contract extensions;
3. Increased costs related to the calculation of indexation for subcontractors.

Preliminary estimates of financial results will be disclosed to the public after the completion of the financial data collection process and the preliminary closing of the accounting books.

The final financial results of the Company and the Group will be disclosed in the individual and consolidated annual report for the 12-month period ended December 31, 2023, which, according to the adopted schedule for the publication of periodic reports, will be published on April 12, 2024.

Legal basis: Article 17(1) of MAR (Market Abuse Regulation).