Centrum Nowoczesnych Technologii : Information about preliminary financial results for the first half of 2016

Report number: 63/2016

Date of issue: 2016-08-12

Subject: Information about preliminary financial results for the first half of 2016

Contents of the report:

The Board of Centrum Nowoczesnych Technologii S.A. (Hereinafter referred to as the "Issuer " ) announces that in connection with the completion of work on the aggregation and verification of financial data carried out for the purpose of preparing the financial statements for the first half of 2016 on 12 August 2016,

they decided to publicize the preliminary financial results for the aforementioned period. The preliminary unconsolidated results for the first half of 2016 .

• Sales revenues of PLN 4,098 thousand

• Net loss for the period of PLN 970 thousand.

  The lower revenues of the reporting period were affected in particular by the following factors:

• The majority of construction contracts carried out by the Issuer ended in 2015, and the implementation of new contracts has not yet begun,

• Realization of one of the most important contracts of the Issuer ("Construction of the Malczyce barrage on the Oder River") has been postponed for subsequent periods due to a temporary suspension of funding by the State Budget; to the best of the Issuer' s knowledge it is believed that the funding will be made no earlier than the beginning of 2017. No revenues from this project have a significant impact on the reduction of the Issuer's revenue,

• Involvement of the Issuer during the entire reporting period in activities related to the planned purchase of an organized part of the Company Krośnieńskie Huty Szkła KROSNO S.A. in liquidation bankruptcy in Krosno, which did not happen (Current Report No. 57/2016), and due to a prolonged tendering procedure (lasting from February 2016 until 28 July 2016). The provisions of the loan agreement concluded with mBank S.A. on 8 February 2016 (of which the Issuer informed in current reports), which is the basis for the financing of the planned acquisition, did not allow the Issuer to apply for obtaining construction contracts.

  Preliminary consolidated results for the first half of 2016 .

• Consolidated sales revenue of PLN 499,099 thousand .

• Net loss for the period of PLN 857 thousand.

  Consolidated results of the reporting period was affected in particular by the following factors:

• Lower revenues earned during the reporting period by the Issuer;

• A significant increase (an increase of 170 % compared to the first half of 2015) in the revenues generated by the subsidiary GET EnTra Sp . o.o. in connection with the business including trading in electricity;

• Applying the principle of prudent valuation, the subsidiary - GET EnTra Sp z o.o. created a provision for future results of the settlement of transactions concluded on the supply of electricity in the second half of 2016 in the amount of PLN 1,000 thousand.

At the same time, the Issuer informs that the final financial data of the Issuer and the Capital Group Centrum Nowoczesnych Technologii S.A., the Company will publish in a consolidated half-year report for the first half of 2016.