4/2022 – Preliminary estimated financial results of the Company Trakcja S.A. 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”) hereby informs that on 21 January 2022 the process of preliminary closure of the accounts ended, including the process of reviewing long-term contracts and collecting financial data for the purposes of drawing up a separate financial statement of the Company for the fourth quarter of 2021, i.e. as of 1 October until 31 December 2021 and for the period of 12 months ended on 31 December 2021. Therefore, it is hereby announced as follows:

Preliminary estimated financial results of the Company Trakcja S.A. for the fourth quarter of 2021:
Revenue from sales: PLN 249,812 thousand
Gross profit on sales: PLN 15,429 thousand
EBITDA: PLN 28,985 thousand
Gross profit: PLN 61,798 thousand

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 792,849 thousand
Gross profit on sales: PLN 22,780 thousand
EBITDA: PLN 28,635 thousand
Gross profit: PLN 34,550 thousand

As a result of the conducted periodical review of contracts, budgets thereof have been updated in terms of their nature, amounts, spread in time and uncertainty regarding revenues and cash flows resulting from performance thereof. In the course of updating budgets, an analysis of threats and opportunities was conducted, within which technical, implementation and liquidity risks as well as the risk related to prolongation of contracts’ performance were identified and taken into consideration.

In the fourth quarter of 2021 the impact of updating contracts’ budgets on EBITDA and the Company’s gross profit was positive and amounted to PLN 2,170 thousand.

Furthermore, the aforementioned estimates of results from the fourth quarter of 2021 had an impact on:
– obtaining revenues due to dividend from the subsidiary AB Kauno Tiltai, in the amount of PLN 45,347 thousand, of which the Company informed in current report no. 57/2021;
– sales transaction of the real estate at Oliwska Street in Warsaw for PLN 25,000 thousand, of which the Company informed in current report no. 43/2021.

The aforementioned preliminary estimates of financial results have not yet been audited by a chartered auditor.

Furthermore, the above estimates of results do not take into account impairment tests on assets and revaluation of assets. In particular, the Company has not yet conducted, i.e. until the day of publication of this report, any impairment tests on investment in subsidiaries; thus, any impairment write-offs on investment have not been recognised in the presented estimated results of the Company. Important factors that can have an impact on estimates on investment values and thus, on the result of impairment tests on investment, include the profitability of performed construction contracts and the adopted discount rate (adopted EBITDA and WACC, which depends on, among others, the level of market interest rates as on 31 December 2021).

Final financial results of the Company will be presented in a separate 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:
Article 17 par. 1 of MAR