34/2023 – Update on Preliminary Financial Results for H1 2023 and Consolidated Financial Results for Trakcja Group

Zarząd Spółki Trakcja S.A. (“Spółka”, “Emitent”) informs that today an important update has been approved regarding the preliminary financial estimates based on an additional update of the construction contract budgets (published in current report 31/2023) due to a significant event after the balance sheet date. This event involves the settlement of mediation concerning one of the contracts, which positively affected the gross result of the Company by PLN 13,130,000.

Revised Impact of Contract Budget Updates:

• Net Positive Impact on Gross Result for Q2 2023: PLN 16,085,000

As a result, there has been a significant change in the preliminary financial estimates for the first half of 2023, as previously published in current report 32/2023.

Updated Preliminary Financial Results for H1 2023:

• Revenue from Sales: PLN 414,764,000
• Gross Profit from Sales: PLN 15,962,000
• EBITDA: PLN 11,219,000
• Gross Profit: -PLN 9,695,000

Preliminary Consolidated Financial Results for Trakcja Group for H1 2023:

• Revenue from Sales: PLN 771,990,000
• Gross Profit from Sales: PLN 29,060,000
• EBITDA: PLN 17,737,000
• Gross Profit: -PLN 17,939,000

The presented figures are preliminary and subject to review by an independent auditor.

Additional Information:

• Financial Covenants and Compliance: The Management Board also informs about significant circumstances related to long-term financing agreements (referenced in, among others, current report 54/2022) and the Company’s obligation to adhere to financial covenants related to the current financial situation of the Company and Trakcja Group. Preliminary findings indicate a breach of financial covenant levels specified in the financing agreements. However, not every breach constitutes a material default. According to the financing agreements, a breach would only be considered material if at least three financiers (including at least one insurance company and one bank or Agencja Rozwoju Przemysłu S.A.) determine it as a material default. No single financier can unilaterally decide to suspend financing based on this breach; such a decision requires the agreement of the specified group of financiers.

Final Financial Results: The final financial results for the Company and the Group, including an operational situation description and an independent auditor’s review report, will be provided in the consolidated report for the first half of 2023, which is scheduled for publication on September 27, 2023.

Legal Basis: Article 17 MAR