Current report no. 30/2016 (24.08.2016)

Title: Information on the preliminary financial results of URSUS S.A. for the I half of 2016

Legal basis:

Art. 17 sec. 1 Market Abuse Regulation

Message:

The Management Board of URSUS S.A., following the completed process of aggregation of the financial data performed for the purpose of the financial report of the company URSUS S.A. for the first half of 2016, i.e. from 01.01.2016 till 30.06.2016, hereby makes public the preliminary financial results for the mentioned period:

- sale revenue: 138,8 million PLN;

- net profit (loss): 0,8 million PLN.

The sale revenue of the company URSUS S.A. in the first half of 2016 decreased by 20%, i.e. by the amount of 33,7 million PLN as compared to the analogical period of the previous year and was 138,8 million PLN, what resulted mainly from the decrease of the foreign sales within the export contracts in connection with a high sales base in the analogical period of 2015. In the first half of 2015 the revenue from export sale was 98,8 million PLN, of which the amount of 80,7 million PLN (82%) was the sale within the contract with the Ethiopian company METEC (Current Reports no. 24/2013 and 24/2014). While in the I half of 2016, within the export contract with the Ethiopian company ESC (Current Reports no. 26/2015 and 46/2015) the Issuer achieved sales in the total amount of 42,7 million PLN. The decrease of the sale revenue translated into a decrease of the Issuer’s net profit to the level of 0,8 million PLN, as compared to the net profit in the amount of 7,0 million PLN shown after the I half of 2015.

The reason of decrease of the foreign sales is delay in starting deliveries within the agreement with the Tanzanian company National Development Corporation of the total value 55 million USD (Current Reports no. 29/2016, 38/2015 and 5/2016). According to the initial arrangements between the parties, deliveries shall have started in the I quarter 2016 and shall be completed in the III quarter 2016. On the date of publication of the present report the Issuer is executing the first shipment within the above-mentioned agreement and the Issuer is going to execute the major part of deliveries in the III and IV quarter 2016. At the same time the Management Board of the Company informs that on the date of publication of the present report, the Issuer is executing the last shipment of the subject of the contract with the company ESC (annex dated 17.03.2016. – Current Report no. 12/2016).

In the I half of 2016 the Issuer’s income from domestic sales was lower by 6% on a year-to-year basis, due to the delay in implementation of applications for financing within the EU programme PROW for years 2014-2020, which is the main financial instrument for the Polish agriculture. Despite the lack of payment of EU subsidies and the worsening economic situation on the market of agricultural machines in Poland, the Issuer recorded an increase in sales and registration of agricultural tractors - the key product of the Company. According to the data of CEPiK (Central Register of Vehicles and Drivers) at the end of July 2016 the share of registered URSUS tractors was 7,2%, what represents an increase of the number of registered URSUS tractors on a year-to-year basis by 50%. Whereas the total number of tractors registered in Poland in this period decreased by 42%.

The Management Board of the Company informs also that the separate and consolidated financial report of the Issuer’s Capital Group for the first half of 2016 will be reviewed by a certified auditor. The final financial data will be disclosed publicly on the 31 August 2016.

Legal basis: Art. 17 sec. 1 Market Abuse Regulation- confidfential information.