Investor relations

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

Report Subject: Creation of a reserve

The Management Board of the Company named J.W. Construction Holding S.A. with its registered office in Ząbki (the “Company”) hereby informs that in connection with the Court judgment of 27 September 2016 related to the civil action brought by the capital city of Warsaw in connection with they payments for perpetual usufruct of the land plot no. 2/6 in the years 2009-2013, which the Company reported in its Current Report No. 12/2016 on 27 Sept. 2016 in accordance with the prudence principle, the Company has created a reserve. The value of the estimated reserve is PLN 9,230,000 million, and it relates to annual charges for perpetual usufruct for the subsequent years, i.e. 2014-2016.

The Company does not agree with the ruling. The attorneys, once they receive a written justification of the ruling, will consider submission of a final appeal in the Supreme Court.

The reserve will have an impact on the financial result recognised in Q3 2016.

The information submitted may differ from the final data which will be presented in the publication of the interim report for Q3 2016.