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1/04/2021 18:54

7/2021 – Information on the Management Board’s decision concerning the creation of revaluation write-downs

The Management Board of Trakcja S.A. (the “Company”) should like to inform that upon completion of tests:

1 for the impairment of the value of investment in a subsidiary – AB Kauno Tiltai,

2 the impairment of goodwill allocated to cash generating unit (“CGU”), which consists of subsidiaries belonging to the AB Kauno Tiltai group,

it has been found that there has been an impairment of the value of investment in subsidiary and impairment of goodwill. Accordingly, the Company has decided to create a revaluation write-down for “Investments in subsidiaries” within the framework of the Company’s standalone balance sheet in the amount of PLN 3,855,000.00 and a revaluation write-down for “Goodwill from consolidation” within the framework of the Trakcja Group consolidated balance sheet in the amount of PLN 38,735,000.00

The value of “Investments in subsidiaries” presented in the Company’s standalone balance sheet as at September 30, 2020 amounted to PLN 311,308,000.00, and the Goodwill of Company under consolidation” presented in the Trakcja Group consolidated balance sheet as at September 30, 2020 amounted to PLN 174,660,000.00.

The above-mentioned events, i.e. creation of revaluation write-downs:

– The value of the investment shall bear an impact on the reduction of the standalone financial result for 2020 and reduction of the value of fixed assets presented in the Company’s standalone balance sheet as at 31 December 2020 by the amount of PLN 3,855,000.00.

– The value of the goodwill shall bear an impact on the reduction of the consolidated financial results for 2020 and reduction of the value of fixed assets presented in the Trakcja Group consolidated balance sheet as at 31 December 2020 by the amount of PLN 38,735,000.00.

The creation of revaluation write-downs is of a non-pecuniary nature and shall have no impact on the Company’s and Group’s liquidity.

The foregoing data is an estimate, and their final value is contingent on the completion of the annual audit, and shall be presented together the financial results of Trakcja S.A. and its Group, as appropriate, in the Company’s standalone balance sheet and the Issuer’s Group consolidated balance sheet.

The estimates of results, published by the Company in Current Report no. 3/2021, have been modified, primarily due to the conducted tests and the creation of the above-mentioned revaluation write-offs. Accordingly, the Management Board is making available to the public the update of the preliminary estimates of the Company’s financial results for the 12 months ending on 31 December 2020:

Revenue from sales: PLN 652,753,000.00

Gross result from sales: – PLN 20,456,000.00

EBITDA: – PLN 34,336,000.00

Net result: – PLN 70,481,000.00ł

Furthermore, the Company is providing preliminary estimated financial results of the Trakcja Group for the 12 months ending on 31 December 2020:

Revenue from sales: PLN 1,338,982,000.00

Gross result from sales: PLN 11,306,000.00

EBITDA: – PLN 13,700,000.00

Net result: – PLN 109,986,000.00

As the above information is preliminary, the final calculations shall be presented In the Company’s and Group’s annual reports for the 12 months ending on 31 December 2020, which in accordance with the accepted publication calendar of annual reports, shall be published on 15 April 2021.

Legal basis of transmitting the report:

Article 17 MAR

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