Current report no 58 / 2018

Court settlement regarding “Okecie Terminal” reached between the Consortium Ferrovial Agroman – Budimex – Estudio Lamela and PPL

With reference to Report No 36/2008 of 10 July 2008, Report No 20/2009 of 2 March 2009, Report No 25/2009 of 30 March 2009 and Report No 98/2009 of 29 October 2009, the Management Board of Budimex S.A. hereby informs that on 8 August 2018 court settlement was reached in connection with the dispute pending before the Arbitration Court at the Polish Chamber of Commerce, pertaining to the implementation of the contract: “Expansion of the International Warsaw Okecie Airport – Construction of Passenger Terminal 2 with technical infrastructure” (“Contract”).

The Parties to the settlement are the Consortium of companies: Ferrovial Agroman S.A. with its registered office in Madrid, operating through the Branch in Poland (“Ferrovial”), Budimex S.A. with its registered office in Warsaw, Estudio Lamela S.L.P. with its registered office in Madrid, operating through the Branch in Poland, as a plaintiff and counterclaim defendant, and Przedsiębiorstwo Państwowe “Porty Lotnicze” with its registered office in Warsaw (“PPL”) as a defendant and counterclaim plaintiff. The share of Budimex S.A. in the Consortium is 40 percent.

In the opinion of the Management Board of Budimex S.A., the settlement is beneficial for both Parties to the dispute and may have a positive effect on the financial result of Budimex, to be estimated in detail after the final settlement of the Contract by the leader – Ferrovial, in the third quarter of 2018.

Under the settlement, the payment payable by PPL to the Consortium shall be made only in respect of the liabilities for the works rendered and deliveries performed, including in respect of any amounts retained.

Under the settlement, the Parties have waived claims against each other for any other claims covered by the said proceedings before the Arbitration Court at the Polish Chamber of Commerce, as well as the litigation costs. The waiver by the Consortium does not include any claims for payment of the amount payable by PPL to the Consortium under the settlement.

The reaching of the aforementioned settlement confirms an amicable termination of the Contract binding between the Parties, and resolution of any disputes associated with its implementation.