3/2017 - Information on the Management Board's decision on goodwill impairment

The Management Board of Trakcja PRKiI S.A. ("The Company") hereby informs that on 9 March 2017, a test was performed for the impairment of goodwill attributable to a cash-generating unit composed of the following subsidiaries: Przedsiębiorstwo Eksploatacji Ulic i Mostów Sp. z o.o., Dalba Sp. z o.o. and Przedsiębiorstwo Drogowo-Mostowe Białystok S.A., the Management Board decided to write down the value of this asset in the consolidated balance sheet of Grupa Trakcja in the amount of PLN 11,799 thousand.

The goodwill presented in the Grupa Trakcja's consolidated balance sheet as of 30 September 2016 was PLN 336,685 thousand. In the opinion of the Management Board of the Company, there have been conditions that may affect the goodwill of the cash-generating unit mentioned above; therefore the Issuer's Management Board carried out a goodwill impairment test on 31 December 2016.

The above events, namely goodwill impairment, result in the decrease in the consolidated financial result for 2016 and the decrease in the value of fixed assets presented in the Grupa Trakcja's consolidated balance sheet as of 31 December 2016 by the amount of PLN 11,799 thousand.

The final value of the goodwill impairment is dependent on the completion of the annual audit and will be presented in the consolidated financial statements of the Issuer's Group for 2016.

Legal basis for the report:

Art. 17 MAR