9/2020 - Updates on the spreading of SARS CoV-2 and its effects on the financial situation of the Issuer and his group of companies

In reference to the report no. 7/2020, the Management Board of Trakcja PRKiI S.A. (”Company”) hereby informs that  in account of the existing COVID-19 epidemic in Poland and worldwide, it undertakes measures [jointly referred to as the “Anti-crisis Package”] aiming at reducing the negative impact of the present situation on the Company’s operations and results, simultaneously conducting activities aiming at ensuring safety of employees, which include: changes in organization of work, and introducing procedures to limit the risk of infection.

In account of the above, as well as to protect jobs, the Management Board has signed an agreement with trade unions on 6 April 2020, pursuant to which as from 6 April 2020 the working time is reduced by 10 % and, in consequence, the salaries of employees remunerated at a monthly rate are reduced pro rata. This reduction of working time concerns mainly clerical workers, to allow maintaining the contract performance potential. The agreement is valid temporarily until 30 June 2020.

The 10% decrease of salaries shall also cover members of the Management Board, the Supervisory Board, as well as workers engaged on the basis of self-employment, and contractors.

In addition, it was agreed, amongst others, to temporarily suspend the payout of bonuses and rewards, allowances, and retirement severance pays, to reduce overtime, and to introduce restrictions with relation to using business vehicles. In addition, the write-off to the company’s social benefits fund shall be reduced by 25%.

The Company estimates that these activities will allow for savings amounting to approximately PLN 1.8 million per month.

The Management Board of the Company shall continue to analyse the situation related with the influence of the epidemic on the Company’s business, achieved results and perspectives, and undertake relevant decisions depending on how the situation develops.

Legal basis:

Article 17.1 of the Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation)