Current Report No.: 1/2024
Management Board of Boryszew S.A. (Issuer) advises, following the information provided in the report for Q3 ‘2023 and others on the situation and operations in the automotive segment of the Boryszew Automotive Plastics Group (BAP Group), that with regard to the information received on 15 January 2024 from the Management Board Boryszew Automotive Plastics Sp. z o.o., a subsidiary, on the failure to come to an agreement, as on the date of publication of this report, with a key customer of the BAP Group on contractual conditions satisfactory to both parties on adjusting sales prices to current macroeconomic conditions of individual companies of the BAP Group, and on the subject of possible further restructuring activities of the BAP Group, for selected assets of the BAP Group a scenario of taking actions of at least restrictive optimisation may be considered.
In addition, the above is due to the dynamically changing environment in the automotive industry, uncertainties due to the instability of the expected level of orders associated with, among other things, an unplanned increase in operating costs, and consequently, possible problems with obtaining the expected cash flows and unsatisfactory results, which in turn leads to limitations on the self-financing capacity of the BAP Group.
In the Issuer’s opinion, it is also possible that if optimisation measures cannot be implemented or their effects are not satisfactory in the BAP Group, possible corrective or alternative measures may be implemented at a later stage, however, these measures are not as yet decided upon.
At the same time the Issuer advises that decisions have been made so far to select a specific option or scenario for different asset of BAP Group. The Issuer will announce any further significant decisions regarding the above process in the form of relevant reports.
Legal attitude: Article 17 section 1 MAR – Confidential information.
Signatures:
Wojciech Kowalczyk – President of the Management Board
Translation from the original Polish version.
In the event of differences resulting from the translation, reference should be made to the official Polish version.