Report No. 35/2019 - An application for the issuance of an individual interpretation submitted by Stalexport Autostrada Małopolska S.A.

Stalexport Autostrady S.A. (“Company” or “Issuer”) informs that today a subsidiary of the Issuer - Stalexport Autostrada Małopolska S.A. (“SAM”) - applied to the Director of the National Revenue Administration (“NRA”) for an individual interpretation (“Application”) the essential element of which is to decide whether payments to the National Road Fund, constituting the State Treasury’s share in the profits from the project on the concession section of the A4 motorway (“Payments to the State Treasury”), may be classified by SAM as tax deductible expenses for the purpose of applying the Act of 15 February 1992 on corporate income tax (consolidated text: Dziennik Ustaw [Polish Journal of Laws] of 2019, item 865, as amended). In SAM’s opinion, Payments to the State Treasury do constitute tax deductible expenses. In the case that NRA shares SAM’s position, SAM’s intention is to deduct the amount of Payments to the State Treasury from the tax base on corporate income tax.

According to the consolidated financial statements of the Issuer’s Capital Group (“Group”) as at and for the year ending on 31 December 2018, Payments to the State Treasury amounted to PLN 5,912 thousand net in 2018. In accordance with the abbreviated interim consolidated financial statements of the Group for the period of 9 months ending on 30 September 2019, in the period of 3 quarters of 2019 Payments to the State Treasury amounted to PLN 88,800 thousand net.

The inclusion of the above-described Payments to the State Treasury as well as Payments to the State Treasury that are to be accrued in subsequent periods, in the tax deductible expenses will significantly improve the consolidated financial results of the Group.

Legal basis:

Article 17.1 of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC.