| The Management Board of the company Work Service S.A. ("Issuer" or "Company"), discloses the following confidential information, the disclosure of which to the public has been delayed by the Company: 1.As regards point 1 below, on 27 April 2017 and on 29 May 2017 2.As regards point 2 below, on 25 May 2017 3 . As to points 3 to 9 below, on 29 May 2017 4 . 2.As regards point 10 below, on 24 April 2017, respectively in accordance with Article 17(4) of Regulation of the European Parliament and of the Council (EU) No 596/2014 of 16 April 2014 on market abuse (Market Abuse Regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directive 2003/124/EC, 2003/125/EC and 2004/72/EC ("MAR"). 1. On 2 May 2017 (supplemented on 31 May 2017) the submission by the Issuer to the Director of the Social Insurance Company in Wroclaw (ZUS) of an application for an instalment scheme for payment of social insurance contributions due for March 2017 for the amount of PLN 11.237.346,77 and for April 2017 for the amount of PLN 11.013.790,75. 2. On 25 May 2017, the Issuer's Subsidiary - Exact Systems S.A.submitted an application for the deferred payment of Exact Systems S.A. obligations by virtue of the social insurance contributions due for April 2017, for the total amount of PLN 1.331.336,46 to the Director of the Social Insurance Company Branch in Częstochowa (ZUS); 3. On 26 May 2017, the Issuer's Subsidiary- Work Express Sp. z o.o. submitted a request for instalment scheme for payments of social insurance contributions due for the period of March 2017 and April 2017, for a total amount of PLN 6.131.067.72 to the Director of the Social Insurance Company Branch in Chorzow (ZUS); 4. On 26 May 2017, the Issuer's Subsidiary- Outsourcing Solutions Partner Sp. z o.o. submitted a request for instalment scheme for payments of social insurance contributions due for the period of March 2017 and April 2017, for a total amount of PLN 1.905.632,28 to the Director of the Social Insurance Company Branch in Chorzow (ZUS); 5. On 30 May 2017, the Issuer's Subsidiary- Industry Personnel Services Sp. z o.o. submitted a request for instalment scheme for payments of social insurance contributions due for the period of March 2017 and April 2017, for a total amount of PLN 5.684.414,72 to the Director of the Social Insurance Company Branch in Wrocław (ZUS); 6. On 30 May 2017, the Issuer's Subsidiary- Automotive Assembly Systems Sp. z o.o. submitted a request for instalment scheme for payments of social insurance contributions due for April 2017, for a total amount of PLN 616.584,61 to the Director of the Social Insurance Company Branch in Wrocław (ZUS); 7. On 31 May 2017, the Issuer's Subsidiary- Krajowe Centrum Pracy Sp. z o.o. submitted a request for instalment scheme for payments of social insurance contributions due for April 2017, for a total amount of PLN 747.584,82 to the Director of the Social Insurance Company Branch in Wrocław (ZUS); 8. On 31 May 2017, the Issuer's Subsidiary- Finance Care Sp. z o.o. submitted a request for instalment scheme for payments of social insurance contributions due for the period of March 2017 and April 2017, for a total amount of PLN 5.684.414,72 to the Director of the Social Insurance Company Branch in Wrocław (ZUS); 9. On 31 May 2017, the Issuer's Subsidiary- Sellpro Sp. z o.o. submitted a request for instalment scheme for payments of social insurance contributions due for the period of March 2017 and April 2017, for a total amount of PLN 1.332.482,14 to the Director of the Social Insurance Company Branch in Wrocław (ZUS); 10. On 25 May 2017, the Issuer submitted an application for deferred payment of tax liabilities of the Company for tax due for March 2017 amounting to PLN 8.288.790,00 to the Director of the Lower Silesian Tax Office in Wroclaw (US). The necessity to submit the above applications arises from the unforeseen extension of the process of selling the company - IT Kontrakt Sp. z o.o., the suspension of the first public offering of Exact Systems S.A. and the debt reduction process through repayment of loans carried out by the company (PLN 8,550,000 of syndicated loan amortization and PLN 4,750,000 repayment of working capital loans by Control + Rework Service Polska Sp. z o.o.) and by redemption of S series corporate bonds having a value of 20 million. According to the Company's opinion, all events included in the current report are of a one-off nature. Due to the submission of the above applications, the repayment of liabilities covered by them will in any case take place as soon as the reasons for the delay cease to exist and before the competent authorities issue said decisions, in connection with which these applications were filed. This will be regarded as equivalent to the discontinuation of proceedings in these matters. Please, be advised by the Management Board of Work Service S.A. that: A. On 31 May 2017, the outstanding public-law liabilities of the Issuer’s Subsidiary - Outsourcing Solutions Partner Sp. z o.o. were repaid to Social Insurance Company Branch in Chorzow by virtue of social insurance contributions for March 2017 in the amount of PLN 914.894,31. B. On 01 June 2017, the outstanding public-law liabilities of the Issuer’s Subsidiary - Industry Personnel Services Sp. z o.o were repaid to Social Insurance Company Branch in Wrocław by virtue of social insurance contributions for March 2017 in the amount of PLN 2.359.204,18. C. On 31 May 2017, the outstanding public-law liabilities of the Issuer’s Subsidiary - Finance Care Sp. z o.o were repaid to Social Insurance Company Branch in Wrocław by virtue of social insurance contributions for March 2017 in the amount of PLN 860.141,73. D. On 01 June 2017, the outstanding public-law liabilities of the Issuer’s Subsidiary - Sellpro Sp. z o.o were repaid to Social Insurance Company Branch in Wrocław by virtue of social insurance contributions for March 2017 in the amount of PLN 658.944,59. E. On 19 June 2017, the Issuer’s Subsidiary - Exact Systems S.A. concluded the Agreement for Instalment Scheme for Receivables Due by virtue of Social Insurance Contributions payable for April 2017, amounting to PLN 1.036.994,52 with Social Insurance Company Branch in Częstochowa; on the principles set out in this Agreement. F. On 12 June 2017, the Issuer’s Subsidiary - Outsourcing Solutions Partner Sp. z o.o. concluded the Agreement for Instalment Scheme for Receivables Due by virtue of Social Insurance Contributions payable for April 2017, amounting to PLN 960.176,77 with Social Insurance Company Branch in Chorzów ; on the principles set out in this Agreement. G. On 12 June 2017, the Issuer’s Subsidiary - Work Express Sp. z o.o. concluded the Agreement for Instalment Scheme for Receivables Due by virtue of Social Insurance Contributions payable for March 2017 and April 2017, amounting to PLN 6.048.779,40 with Social Insurance Company Branch in Chorzów; on the principles set out in this Agreement. H. On 26 June 2017, a decision for deferred payment of tax liabilities for tax due in March 2017 amounting to PLN 8.290.708,00 by the Director of the Lower Silesian Tax Office in Wroclaw (US) was issued. As a result of the acquired receivables from the sale transaction of the company IT Kontrakt Sp z o.o., and also owing to the use of the current operational appropriations, the Company and the Subsidiaries intend to repay the remaining part of the liabilities in amount 23 251 100,70 zł, by 4 July 2017 at the latest whereas payment of the amount indicated in pt. 1 social insurance contributions due for March 2017, according to the information received by the Company will be distributed by the competent authority in instalments next week and will therefore be repaid on the basis of the timetable proposed by the administrative authority competent to handle the request. Where the competent authority issues a negative decision, the Company will repay the obligation immediately. As regards other obligations on which the arrangement was concluded, described in detail in point. E-H above, in the total amount of 16.336.658,69 PLN, the repayment will take place on the basis of the schedule proposed by the administrative authorities competent for processing applications submitted from the funds from the current operating activity of the Company. As a result of the analysis, Issuer has recognized that it is justified that the above information has been qualified as confidential within the meaning of Article 17(1) MAR, subject to publication in the form of this report. Legal basis: Article 17 (1) MAR (Regulation of the European Parliament and of the Council (EU) No 596/2014 of 16 April 2014 on market abuse (Market Abuse Regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directive 2003/124/EC, 2003/125/EC and 2004/72/EC. Signatures Maciej Witucki – President of the Board Piotr Gajek - Vice President of the Board | |
