Information about the necessity to recognise a write-off in the standalone financial statements of PGE Polska Grupa Energetyczna S.A.

The Management Board of PGE Polska Grupa Energetyczna S.A. (“PGE”) discloses that in the course of work on its standalone financial statements for the year 2025, in accordance with the accounting regulations (including in particular IFRS 9 Financial Instruments) a necessity has been identified to recognise a write-off of a loan granted by PGE to its subsidiary PGE Górnictwo i Energetyka Konwencjonalna (“PGE GiEK”). The write-off is a consequence of current and expected financial situation of PGE GiEK (including inter alia negative EBITDA result expected in the long term) impacting so called recoverable amount of the granted loan. The value of the write-off will amount to PLN 12.05 billion and is equal to the nominal value of the instalments paid out under the above mentioned loan until December 31, 2025. The value of the write-off will decrease the PGE’s standalone gross profit for 2025 without any impact on the standalone EBITDA result. Recognition of the write-off will not affect the consolidated financial statements of the PGE Capital Group for 2025.

Write-off is of non-cash nature however potential lack of repayment of the loan by PGE GiEK (if materialises) will mean lack of cash flow to PGE. The final value of the write-off will be presented in the standalone financial statements of PGE for 2025, which is subject to audit by the Statutory Auditor.