17/2024 – Conclusion of the Cyclical Contract Review Process for Trakcja S.A. for the First Quarter of 2024

The Management Board of Trakcja S.A. (the “Company”, the “Issuer”) announces that today the process of cyclical review of long-term contracts for the first quarter of 2024, covering the period from January 1 to March 31, 2024, has been completed in preparation for the standalone financial statements of the Company for the three-month period ended March 31, 2024. The Management Board of the Company is now disclosing the impact of this review on the financial results of the Company for this period.

As a result of the cyclical review of contracts, budgets were updated to reflect the nature, amounts, timing, and uncertainties regarding revenues and cash flows arising from their execution. During the budget updates, an analysis of opportunities and risks was conducted, identifying and incorporating technical, execution, and liquidity risks, as well as risks associated with delays in contract completion.

For the first quarter of 2024, the total impact of the budget updates on the Company’s gross result was negative, amounting to PLN 743 thousand.

The main factor contributing to the negative impact was:

1. The inclusion of higher indirect costs.

At the same time, the positive impact on the gross result in Q1 2024 came from:

1. Increased contract value adjustments;
2. Recognition of claims for the reimbursement of general costs.

Preliminary financial estimates will be disclosed after the data collection process and preliminary accounting closure.

The final financial results of the Company and the Group will be presented in the consolidated quarterly report for the three-month period ended March 31, 2024, which, according to the adopted reporting schedule, will be published on May 28, 2024.

Legal Basis: Article 17(1) MAR