Investor relations

Legal basis: Art. 17, par. 1 of MAR – confidential

Report Subject: judgment of the Court in the civil action brought against the Company by the capital city of Warsaw

The Management Board of the Company named J.W. Construction Holding S.A. with its registered office in Ząbki (the “Issuer”) hereby informs that today, i.e. 27 September 2016, The Court of Appeal in Warsaw, acting as a court of the second instance on the civil action - brought against the Company by the capital city of Warsaw - in connection with the payment of annual fees for perpetual usufruct of the plot of land No. 2/6 located in Warsaw at 181 Górczewska street (case file No. VI ACa 1159/14), passed a judgment dismissing the Company's appeal against the unfavorable judgment of the court of the first instance. In view of the above, the judgment of the District Court Warszawa-Praga in Warsaw, III civil division of 16 April 2014 (case No. III C 1054/13), has become final, awarding the amount of PLN 14,123,786.25 together with interest and the costs of litigation to the city of Warsaw from the Issuer.

The action concerned the land use fee for the land parcel No. 2/6 for the years 2009 -2013. The plot in question, in accordance with the applicable local development plan, is intended for communication purposes — NS road construction.

In the opinion of the Issuer, the validity and amount claimed by the capital city of Warsaw for perpetual usufruct is groundless due to the content of the local zoning plan and the actual economic feasibility of the land use.

The Issuer, in a separate action, demands from the capital city of Warsaw an obligation to purchase the land parcel No. 2/6 as planned for public roads in the local land development plan.

The Issuer will consider the lodging of a final appeal to the Supreme Court.

The judgment will have an impact on the financial results achieved by the Issuer in 2016.