10/2022 Information on the Management Board’s decision to establish a write-down and an update of the preliminary estimates of the Company for the fourth quarter of 2021 and for the period of 12 months ended on 31 December 2021.

The Management Board of the Company Trakcja S.A. (‘the Company’) informs that on 22 February 2022, as a result of the conducted test on the impairment of investments in the subsidiary AB Kauno Tiltai, the impairment of these investments was stated. Therefore, the Company decided to establish a write-down for ‘Investments in subsidiaries’ in the Company’s standalone balance sheet in the amount of PLN 18,513 thousand.

The value of ‘Investments in subsidiaries’ presented in the Company’s standalone balance sheet as on 30 September 2021 amounted to PLN 307,453 thousand.

Making the aforementioned write-down will have an impact on decreasing the standalone financial result for 2021 and decreasing the value of fixed assets presented in the Company’s standalone balance sheet as on 31 December 2021 by the amount of PLN 18,513 thousand.

This event will not have an impact on the consolidated financial result for 2021 and the value of fixed assets presented in the consolidated balance sheet of Trakcja Group as on 31 December 2021.

Establishing write-downs is of non-monetary character and does not influence liquidity of the Company and the Group.

Estimates published by the Company in current report no. 4/2022 have changed predominantly with regard to the conducted tests and establishment of a higher write-down. Therefore, the Management Board informs of the update thereof:

Preliminary estimated financial results of the Company Trakcja S.A. for the fourth quarter of 2021:
Revenue from sales: PLN 249,812K;
Gross profit on sales: PLN 15,164K;
EBITDA: PLN 28,242K;
Gross profit: PLN 42,542K
Preliminary estimated financial results of the Company Trakcja S.A. for the period of 12 months ended on 31 December 2021:
Revenue from sales: PLN 792,849K;
Gross profit on sales: PLN 22,515K;
EBITDA: PLN 27,892K;
Gross profit: PLN 15,294K.

The aforementioned data is of an estimate character and has not yet been audited by a statutory auditor. Final financial results of the Company will be presented in a standalone annual report for the period of 12 months ended on 31 December 2021, which, according to the adopted calendar of publication of periodic reports, is going to be published on 31 March 2022.

Legal grounds for forwarding the report:
Article 17 MAR