PKN Orlen S.A.

Earnings Release • Nov 5, 2024

Report Content Estimations of selected financial data of ORLEN Group for the 3rdquarter 2024 and one-offs which impact significantly these dataRegulatoryannouncement no 54/2024 dated 5 November 2024ORLEN S.A.("Company", "ORLEN Group") informs that as part of its work on theinterim report for the 3rd quarter of 2024, it prepared estimations ofselected financial data of ORLEN Group for the 3rd quarter 2024:?EBITDA is estimated at ca. PLN 4,958 m,? EBITDA LIFO (excluding theimpairment of assets) is estimated at ca. PLN 8,808 m, in comparison toPLN 10,258 m in the 3rd quarter 2023,? The net impairment of fixedassets is estimated at ca. PLN (-) 3,526 m,? The impact ofregulations on EBITDA LIFO is estimated at ca. PLN 678 m.TheCompany informs that it has identified premises and conducted tests forimpairment of assets. As a result, the Company predicts the recognitionof net impairment of fixed assets of ORLEN Group in the amount ofapproximately PLN (-) 3,526 m, in the consolidated financial statementfor the 3rd quarter 2024. Test results for impairments of ORLEN LietuvaGroup's assets and of production assets in petrochemical segment ofORLEN S.A. will have the greatest impact on the financial data for 3rdquarter 2024.Impairment of fixed assets of ORLEN Lietuva Groupamounted to ca. PLN (-) 2,421 m. It results mainly from the change inthe predicted economic and regulatory conditions, which, due to delaysin realization and higher investment expenditures on bottom of thebarrel unit in ORLEN Lietuva, causes a loss in efficiency of thatinvestment.Impairment of fixed assets of the petrochemicalsegment in ORLEN S.A. amounted to ca. PLN (-) 912 m. It results mainlyfrom persistently difficult economic conditions on the petrochemicalmarket and from investment expenditures incurred in 3rd quarter 2024 forbuilding of Olefins III complex, due to which, according to the currentestimates, the assets that are to be created will not generate positivecash flows in the future.At the same time in the separatefinancial statement for 3rd quarter 2024, the Company predicts toinclude impairment of shares in ORLEN Lietuva in the amount of ca. PLN(-) 4,005 m. Impairment of shares is connected with the abovementionedreasons for impairment tests of fixed assets of ORLEN Lietuva Group.These factors affect the predicted lack of future positive cash flowsplanned by ORLEN Lietuva.Moreover the Company predicts toinclude in the separate financial statement for 3rd quarter 2024,similarly like in the consolidated report, impairment of fixed assets ofpetrochemical segment in the amount of PLN (-) 912 m.Theabovementioned one-offs are currently being audited by the auditor andmay be subject to change.At the same time, the Company informsthat works on unconsolidated and consolidated report of ORLEN Group forthe 3rd quarter 2024, which the Company will publish on 13 November 2024are still underway. Therefore, the estimations of selected financialdata of ORLEN Group for the 3rd quarter 2024 presented above are subjectto change in comparison to the financial data that will be included inthe final version of the interim report.