Write-down related to value of deferred tax asset

The Management Board of PGE Polska Grupa Energetyczna S.A. (“PGE”) discloses that during the course of works on the financial statements for year 2024 PGE Górnictwo i Energetyka Konwencjonalna S.A. (“PGE GiEK”), in accordance with IAS 12 “Income taxes”, has identified the necessity to recognise write-down related to value of deferred tax asset in amount of approx. PLN 2.4 billion. Consequently, it is estimated that net result of PGE GiEK and subsequent net result of PGE Capital Group for year 2024 will be decreased by approx. PLN 2.4 billion.

The write-down related to value of deferred tax asset is of non-cash nature and it does not affect the financial liquidity of the PGE Capital Group, i.e. the financing of the ongoing operations and investment projects. It is a consequence of lower projected financial results related to coal-based mining and generation what translates into decrease of projected tax base and as a result - lower use of the deferred tax asset. The amount of a write-down for deferred tax is an estimate and its realisation will depend on future financial results of PGE GiEK.

Presented values are estimated and may change. Final value of the write-down will be presented in the annual consolidated financial statements of the PGE Capital Group for year 2024 which will be audited by the professional auditor.