Result of impairment tests on property, plant and equipment in Conventional Generation segment and Renewables segment

With reference to the current report no. 28/2025 dated July 7, 2025 the Management Board of PGE Polska Grupa Energetyczna S.A. (“PGE”) discloses that the works regarding tests for impairment of property, plant and equipment in accordance with the IAS 36 have been completed with regard to the Conventional Generation and Renewables segments’ assets.

Results of conducted tests indicate the impairment loss of balance sheet value of selected property, plant and equipment in the PGE Capital Group companies amounting to approx. PLN 9.1 billion, including: approx. PLN 8.7 billion in the Conventional Generation segment and approx. PLN 0.4 billion in the Renewables segment.

At the same time, in the course of the work, a necessity to lower value of deferred tax asset (in accordance with IAS 12) in amount of approx. PLN 2.5 billion has been identified.

Accordingly, appropriate adjustments updating value of property, plant and equipment and the write-down related to deferred tax asset will be recognised in the consolidated financial statements of PGE Capital Group for the first half of 2025. The above adjustments are of non-cash nature. They will lower the PGE Capital Group’s gross result for the first half of 2025 by approx. PLN 9.1 billion and net result by approx. PLN 11.6 billion.

Presented values are estimated and may change. Final value of the impairment will be presented in the consolidated financial statements of the PGE Capital Group for the first half of 2025 which will be reviewed by the professional auditor.