Report No. 28_Responses to Questions Presented by a Shareholder During the General Shareholders Meeting of the Company on 10 June 2019.

The Management Board of Mostostal Warszawa S.A. ("Company") hereby discloses information to shareholder’s questions outside the General Shareholders Meeting in response to questions presented during the Ordinary General Meeting of the Company on 10 June 2019.

 

1. Shareholder's question: I am asking for financial results for 2017 and 2018 of individual companies of the Mostostal Warszawa Group.

 

Management’s response:

The Company encloses financial data of the Mostostal Warszawa Group companies for 2017 and 2018 (the data does not include any adjustments between the Group companies and already published financial results of the Company and Mostostal Płock S.A. for 2017 and 2018).

 

2. Shareholder’s question: I am asking for specific contract values, costs and planned and achieved margins for all contracts with entities related to the majority owner (ACCIONA) and companies related to members of the Supervisory Board in 2017 and 2018 regarding contracts with a value above PLN 100,000.

 

Management’s response:

In 2018, the Company with the majority shareholder ACCIONA Construcción S.A. concluded two loan facilities with a total value of EUR 10 million, for which the Company incurred costs in the amount of PLN 800,000 in 2018. In addition, in 2018, the Company concluded a contract for the construction of a residential building with ACCIONA Nieruchomości Wilanów Sp. z o.o. (Company of the ACCIONA Group) about which the Company informed in the current report 60/2018 dated 20 November 2018. Transactions with related entities are recognized and described in the Company's financial statements in notes 37 for 2017 and 36 for 2018.

 

3. Shareholder's question: I am asking for clarification regarding the division of works for the Opole power plant between Mostostal Warszawa and the companies of the Mostostal Warszawa Group.

What profit has Mostostal Warszawa achieved from the contract for the construction of Opole what profits have been achieved by individual companies of the Capital Group.

 

Management response:

In the opinion of the Management Board, answering the above question would reveal the trade secrets of the Company.

 

4. Shareholder's question: I am also asking for explanations regarding the selection in 2018 of the audit firm conducting the review of financial statements for 2018. How many auditing companies reported? Was the chosen offer the most financially advantageous?

 

Management response:

Continuation of cooperation in the audit area with KPMG Audyt Sp. z o.o. in 2018 it resulted from the amendment of the Accounting Act of 29 September 1994, which entered into force in 2018, according to which the contract with the auditor for the first time should be concluded for at least two years. Therefore, in 2018, only an annex was signed to the contract signed in 2017 with KPMG Audyt for the audit for 2018.

 

Legal basis: § 19 para. 1 point 12 of the Ordinance of the Minister of Finance of 29 March 2018 regarding current and periodic information provided by issuers of securities and conditions for recognizing as equivalent information required by the laws of a non-member state (Journal of Laws 2018, item 757).

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