PGE Polska Grupa Energetyczna S.A.

Earnings Release • Feb 10, 2025

Report Content 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 statementsfor year 2024 PGE Górnictwo i Energetyka Konwencjonalna S.A. ("PGEGiEK"), in accordance with IAS 12 "Income taxes", has identified thenecessity to recognise write-down related to value of deferred tax assetin amount of approx. PLN 2.4 billion. Consequently, it is estimated thatnet result of PGE GiEK and subsequent net result of PGE Capital Groupfor year 2024 will be decreased by approx. PLN 2.4 billion.

The write-down related to value of deferred tax asset is of non-cashnature and it does not affect the financial liquidity of the PGE CapitalGroup, i.e. the financing of the ongoing operations and investmentprojects. It is a consequence of lower projected financial resultsrelated to coal-based mining and generation what translates intodecrease of projected tax base and as a result - lower use of thedeferred tax asset. The amount of a write-down for deferred tax is anestimate and its realisation will depend on future financial results ofPGE GiEK.

Presented values are estimated and may change. Final value of thewrite-down will be presented in the annual consolidated financialstatements of the PGE Capital Group for year 2024 which will be auditedby the professional auditor.