PKP Cargo : Current Report No. 20/2017 of 26 June 2017 – Memorandum of Agreement between the Parties to the Company Collective Bargaining Agreement for Employees Hired by the Establishments of PKP CARGO S.A.

Legal basic (selected in ESPI):

Article 17 Sec. 1 of MAR - confidential information

The PKP CARGO S.A. Management Board ('Company', 'PKP CARGO') hereby reports that on 26 June 2017 a memorandum of agreement was executed between the Parties to the Company Collective Bargaining Agreement for Employees Hired by the Establishments of PKP CARGO S.A. ('Memorandum of Agreement').

Pursuant to the Memorandum of Agreement, the Parties have decided that a salary increase will be implemented as of 1 September 2017. The Company estimates that the cost of the increase till the end of 2017 will amount to approx. 26.7 million.

Legal basic:

Article 17 Sec. 1 of MAR - confidential information