PGE Polska Grupa Energetyczna S.A.

Earnings Release • Jan 26, 2024

Result of impairment tests on property, plant and equipment inConventional Generation segment

With reference to the current report no. 39/2023 dated December 6, 2023,the Management Board of PGE Polska Grupa Energetyczna S.A. ("PGE", the"Company") discloses that the works regarding tests for impairment ofproperty, plant and equipment in accordance with the IAS 36 have beencompleted with regard to the Conventional Generation segment's assets.

Results of conducted tests indicate the impairment loss of balance sheetvalue of property, plant and equipment in Conventional Generationsegment amounting to approx. PLN 8.5 billion.

Accordingly, appropriate adjustments updating value of property, plantand equipment will be recognised in the consolidated financialstatements of PGE Capital Group for 2023. The above adjustment is ofnon-cash nature. It will lower the PGE Capital Group's gross result for2023 by approx. PLN 8.5 billion and PGE's stand-alone gross result byapprox. 11.7 billion.

Presented values are estimated and may change. Final value of theimpairment will be presented in the annual consolidated financialstatements of the PGE Capital Group and stand-alone financial statementsof PGE for year 2023 which will be audited by the professional auditor.

At the same time, the Management Board of PGE informs that the tests arestill being conducted with regard to assets of other business segments.In case it will be necessary to make a significant revaluation of assetsin other business segments, the Company will inform about that inseparate current report.