58/2022 Revising the contract budget of the subsidiary Torprojekt sp. z o.o. for the six months ended June 30, 2022

The Management Board of Trakcja S.A. (“Company”, “Issuer”) announces that on September 2, 2022, the Issuer’s subsidiary Torprojekt sp. z o.o. (“Torprojekt”) informed on the update of the budget of the contract executed in connection with the contract concluded on January 10, 2018 for “Design documentation and author’s supervision for the reconstruction of the cross-city line in Warsaw under the project OPI&E 5.1-13 titled ‘Works on the cross-city line in Warsaw on the section Warsaw East Station – Warsaw West Station’” as well as annexes and an agreement for a contract similar to the basic contract concluded on April 8, 2021, by Torprojekt Sp. z o.o, as the Leader of the Consortium consisting of:
– Torprojekt Sp. z o.o. – Consortium Leader
– Kuryłowicz & Associates Sp. z o.o. – Consortium Partner
with PKP Polskie Linie Kolejowe S.A., based in Warsaw.
Accordingly, the Company’s Management Board announces the impact of the above update on the financial results of Torprojekt and the Trakcja Group (the “Group”) for the six-month period ended June 30, 2022.

In H1 2022, the impact of the contract budget update on the gross profit of Torprojekt and the Group was negative and amounted to PLN 24,116 thousand.
The main factors that most negatively affected the amount of the update were the adjustment of the earlier underestimation of subcontractor costs, wages and indirect costs.

As of the date of publication of this current report, Torprojekt has not prepared final financial statements as of June 30, 2022. Considering the impact of the budget update described above on the subsidiary’s performance, Torprojekt’s equity is expected to be negative as of June 30, 2022. The Issuer will take appropriate action to address the situation.

Preliminary estimates of the Group’s financial performance will be released to the public upon completion of the financial data collection process, including the completion of asset impairment testing and asset revaluation.

The Company’s and the Group’s final financial results will be reported in the consolidated semi-annual report for the six-month period ended June 30, 2022, which, in accordance with the approved calendar for the publication of periodic reports, will be published on September 14, 2022.

Legal basis:
Article 17(1) MAR