PKN Orlen S.A.

Annual / Quarterly Financial Statement • Apr 9, 2024

Report Content Predicted accounting one-offs which impact significantly financial datafor 2023 presented in financial statements for 2023Regulatoryannouncement no 22/2024 dated 8 April 2024ORLEN S.A. ("Company")informs that it conducted tests for impairment of ORLEN Lietuva Group'sassets.As a result of these activities, the Company predicts therecognition of an impairment of fixed assets of ORLEN Lietuva Group witha total value of ca. PLN (-) 0,1 billion in the consolidated financialstatement for 2023, mainly in the Refining segment. The impairment ofthe fixed assets results mainly from the increase of the fixed assetsvalue which provided a reference point for impairment tests. ORLENLietuva predicts an increase of value of the discounted future cashflows, resulting from the improvement of the macroeconomic conditions.However, that increase is lower than the raise of value of the fixedassets connected with investments being currently realized by ORLENLietuva, what directly affected the abovementioned impairment of assets.Atthe same time in the separate financial statement for 2023, the Companypredicts to include the recognition of reversal of an impairment ofshares in ORLEN Lietuva in the amount of ca. PLN 1,8 billion. Thereversal of impairment of shares results from the good operating resultsof ORLEN Lietuva in 2023, what affected the significant reduction of itsnet debt at the end of 2023 and results from the future cash flows thatORLEN Lietuva plans to obtain within the development investments,including biofuels.The above accounting one-offs have asignificant impact on the financial data for 2023.Theabovementioned one-offs are currently being audited by the auditor andmay be subject to change.At the same time, the Company informsthat analyzes of the value of other assets of the ORLEN Group areunderway. In case any impairments or updating reversals, which impactsignificantly the financial data for 2023, become probable, the Companywill publish regulatory announcement with that information.ORLENS.A. will publish its separate and consolidated financial statements foryear 2023 on 25 April 2024.