Reorganization of the Company’s organizational structure – start of the process of introducing new Organizational Regulations

The Management Board of PKP CARGO S.A. under restructuring (the ‘Company’, ’PKP CARGO’) announces that today is adopted a resolution to launch the process of introducing new Organizational Regulations of PKP CARGO S.A. under restructuring.

The state of restructuring in which the Company currently finds itself, the market conditions relevant to its operation and the requirements of efficient operational management were the reasons of the Management Board’s decision to change its approach to management and to reduce the Company’s structures by incorporating its Plants into the offices of the Head Office, which will allow for more efficient management communication, clearer assignment of responsibility for the performance of tasks or the elimination of excessive structure costs.

The overarching aim of the proposed organizational changes is to transform the PKP CARGO structure into a unified entity which concentrated management centers and defined core, support and management processes by unifying the employment structure.

The proposed structural changes will result in, among other things, increased operational flexibility, better oversight and management of the company as a whole, stronger negotiating power and standardized process measurement.

Ultimately, the implementation of the new Organizational Regulations will result in the employees of the existing Plants (separate organizational units) changing their employer, which will become PKP CARGO, on the basis of Article 23(1) of the Labour Code.

Adoption of the Management Board’s resolution referred to above marks the transition to the stage of the trade unions’ option on the new Organizational Regulations of PKP CARGO S.A. under restructuring.