□ - adjusted

including condensed consolidated financial statements prepared under: International Financial Reporting Standards in currency: PLN

and condensed separate financial statements prepared under: International Financial Reporting Standards in currency: PLN

date of issuance: 29 July 2020

Ernst & Young Audyt Polska Sp. z o.o. Sp. komandytowa (auditor)

	PLN '000		EUR '000
SELECTED FINANCIAL DATA	half-year 2020	half-year 2019	half-year 2020	half-year 2019
condensed consolidated financial statements data
I. Revenue	5 632 000	5 537 000	1 268 097	1 291 278
II. Operating income	197 000	213 000	44 356	49 674
III. Profit before income tax	16 000	60 000	3 603	13 993
IV. Net income	14 000	47 000	3 152	10 961
V. Net income attributable to owners of Orange Polska S.A.	14 000	47 000	3 152	10 961
VI. Earnings per share (in PLN/EUR)	0.01	0.04	-	0.01
VII. Weighted average number of shares (in millions)	1 312	1 312	1 312	1 312
VIII. Total comprehensive income/(loss)	(57 000)	24 000	(12 834)	5 597
IX. Total comprehensive income/(loss) attributable to owners of Orange Polska S.A.	(57 000)	24 000	(12 834)	5 597
X. Net cash provided by operating activities	1 598 000	1 240 000	359 805	289 179
XI. Net cash used in investing activities	(1 111 000)	(1 228 000)	(250 152)	(286 380)
XII. Net cash used in financing activities	(500 000)	(200 000)	(112 580)	(46 642)
XIII. Net change in cash and cash equivalents	(13 000)	(188 000)	(2 927)	(43 843)
	balance as at 30/06/2020	balance as at 31/12/2019	balance as at 30/06/2020	balance as at 31/12/2019
XIV. Total current assets	3 508 000	3 493 000	785 490	820 242
XV. Total non-current assets	21 102 000	21 429 000	4 725 034	5 032 053
XVI. Total assets	24 610 000	24 922 000	5 510 524	5 852 295
XVII. Total current liabilities	7 770 000	4 191 000	1 739 812	984 149
XVIII. Total non-current liabilities	6 301 000	10 174 000	1 410 882	2 389 104
XIX. Total equity	10 539 000	10 557 000	2 359 830	2 479 042
XX. Equity attributable to owners of Orange Polska S.A.	10 537 000	10 555 000	2 359 382	2 478 572
XXI. Share capital	3 937 000	3 937 000	881 549	924 504
condensed separate financial statements data
	half-year 2020	half-year 2019	half-year 2020	half-year 2019
I. Revenue	5 167 000	5 244 000	1 163 398	1 222 948
II. Operating income	178 000	192 000	40 078	44 776
III. Profit before income tax	5 000	60 000	1 126	13 993
IV. Net income	5 000	54 000	1 126	12 593
V. Earnings per share (in PLN/EUR)	-	0.04	-	0.01
VI. Weighted average number of shares (in millions)	1 312	1 312	1 312	1 312
VII. Total comprehensive income/(loss)	(66 000)	31 000	(14 861)	7 229
VIII. Net cash provided by operating activities	1 608 000	1 318 000	362 056	307 369
IX. Net cash used in investing activities	(1 143 000)	(1 228 000)	(257 357)	(286 381)
X. Net cash used in financing activities	(461 000)	(251 000)	(103 798)	(58 535)
XI. Net change in cash and cash equivalents	4 000	(161 000)	901	(37 547)
	balance as at 30/06/2020	balance as at 31/12/2019	balance as at 30/06/2020	balance as at 31/12/2019
XII. Total current assets	3 094 000	3 103 000	692 790	728 660
XIII. Total non-current assets	21 217 000	21 492 000	4 750 784	5 046 848
XIV. Total assets	24 311 000	24 595 000	5 443 574	5 775 508
XV. Total current liabilities	7 626 000	4 015 000	1 707 568	942 820
XVI. Total non-current liabilities	6 222 000	10 090 000	1 393 193	2 369 379
XVII. Total equity	10 463 000	10 490 000	2 342 813	2 463 309
XVIII. Share capital	3 937 000	3 937 000	881 549	924 504

	ORANGE POLSKA SA
	(full name of issuer)
ORANGEPL	Telecommunication (tel)
(abbreviated name of the issuer)	(classification according to WSE/sector)
02-326	Warsaw
(post code)	(location)
Al. Jerozolimskie	160
(street)	(number)
22 527 23 23	22 527 23 41
(telephone)	(fax)
[email protected]	SA-Q I/2005 www.orange.pl (quarter/year)
… (e-mail)	(www)
526-02-50-995	012100784
(NIP)	(REGON)

POLISH FINANCIAL SUPERVISION AUTHORITY

Consolidated half-year report PSr 2020

(according to par. 60 s. 2 and par. 62 s. 3 of the Decree of Minister of Finance dated 29 March 2018) for the issuers in sectors of production, construction, trade or services (type of issuer)

for the half-year of 2020, i.e. from 1 January 2020 to 30 June 2020

(year)

The Polish original should be referred to in matters of interpretation. Translation of auditor's report originally issued in Polish.

Ernst & Young Audyt Polska spółka z ograniczoną odpowiedzialnością sp. k. Rondo ONZ 1 00-124 Warszawa

+48 (0) 22 557 70 00 +48 (0) 22 557 70 01 www.ey.com/pl

INDEPENDENT AUDITOR'S REPORT ON REVIEW OF INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

To the Shareholders and Supervisory Board of Orange Polska S.A.

Introduction

We have reviewed the condensed IFRS interim consolidated financial statements of Orange Polska Group (the 'Group'), for which the parent company is Orange Polska S.A. (the 'Parent Company') located in Warsaw at Aleje Jerozolimskie 160, containing: the consolidated statement of financial position as at 30 June 2020, the consolidated income statement, the consolidated statement of comprehensive income, the consolidated statement of changes in equity, the consolidated statement of cash flows for the period from 1 January 2020 to 30 June 2020 and notes to the condensed IFRS interim consolidated financial statements (the 'interim condensed consolidated financial statements').

The Parent Company's Management is responsible for the preparation and presentation of the interim condensed consolidated financial statements in accordance with the requirements of International Accounting Standard 34 Interim Financial Reporting as adopted by the European Union.

Our responsibility is to express a conclusion on the interim condensed consolidated financial statements based on our review.

Scope of review

We conducted our review in accordance with National Review Standard 2410 in the wording of the International Standard on Review Engagements 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity ('standard'), adopted by the National Council of Statutory Auditors. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, applying analytical and other review procedures.

A review is substantially less in scope than an audit conducted in accordance with National Auditing Standards in the wording of the International Auditing Standards adopted by the National Council of Statutory Auditors and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the interim condensed consolidated financial statements are not prepared, in all material respects, in accordance with the requirements of International Accounting Standard 34 Interim Financial Reporting as adopted by the European Union.

Warsaw, 29 July 2020

Key certified auditor Partner

Paweł Niśkiewicz Mikołaj Rytel certified auditor no in the register: 13542

on behalf of Ernst & Young Audyt Polska spółka z ograniczoną odpowiedzialnością sp. k. Rondo ONZ 1, 00-124 Warsaw no on audit firms list: 130

ORANGE POLSKA GROUP

CONDENSED IFRS INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE 6 MONTHS ENDED 30 JUNE 2020

Orange Polska Group Condensed IFRS Interim Consolidated Financial Statements – 30 June 2020

Translation of the financial statements originally issued in Polish

	CONSOLIDATED INCOME STATEMENT3
	CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 3
	CONSOLIDATED STATEMENT OF FINANCIAL POSITION 4
	CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 5
	CONSOLIDATED STATEMENT OF CASH FLOWS6
1.	The Orange Polska Group 7
2.	Segment information and performance measures 7
3.	Statement of compliance and basis of preparation 9
4.	Statement of accounting policies 12
5.	Revenue 13
6.	Explanatory comments about the seasonality or cyclicality of interim Group operations 14
7.	Items affecting assets, liabilities, equity, net income or cash flows that are unusual because of their nature,
	size or incidence 14
8.	Net financial debt16
9.	Fair value of financial instruments 16
10.	Dividend 17
11.	Changes in major litigation and claims, contingent liabilities and contingent assets since the end of the last
	annual reporting period17
12.	Related party transactions17
13.	Subsequent events 18

Translation of the financial statements originally issued in Polish

CONSOLIDATED INCOME STATEMENT

(in PLN millions, except for earnings per share)		3 months	6 months ended 30 June 2020	3 months	6 months ended 30 June 2019 Restated
	Note				(see Notes 3 and 4)
Revenue	5	2,828	5,632	2,759	5,537
External purchases		(1,597)	(3,147)	(1,533)	(3,087)
Labour expense		(289)	(694)	(377)	(778)
Other operating expense		(106)	(204)	(115)	(211)
Other operating income		62	139	55	108
Impairment of receivables and contract assets		(50)	(86)	(27)	(59)
Gains on disposal of assets		5	15	44	48
Depreciation and impairment of right-of-use assets		(108)	(214)	(92)	(187)
Depreciation, amortisation and impairment of property, plant
and equipment and intangible assets		(636)	(1,244)	(575)	(1,158)

Operating income		109	197	139	213

Interest income		8	17	11	21
Interest expense on lease liabilities		(16)	(32)	(17)	(33)
Other interest expense and financial charges		(53)	(113)	(59)	(119)
Discounting expense		-	(23)	(11)	(25)
Foreign exchange gains/(losses)		12	(30)	3	3
Finance costs, net		(49)	(181)	(73)	(153)
Income tax		(8)	(2)	(14)	(13)
Net income		52	14	52	47

Net income attributable to owners of Orange Polska S.A.		52	14	52	47
Net income attributable to non-controlling interests		-	-	-	-

Earnings per share (in PLN)		0.04	0.01	0.04	0.04

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(in PLN millions)	3 months	6 months ended 30 June 2020	3 months	6 months ended 30 June 2019 Restated
				(see Note 3)
Net income	52	14	52	47
Items that will not be reclassified to profit or loss Actuarial losses on post-employment benefits Income tax relating to items not to be reclassified Items that may be reclassified subsequently to profit or loss Losses on cash flow hedges Income tax relating to items that may be reclassified	(4) 1 (27) 7	(4) 1 (86) 18	- - (19) 3	- - (28) 5
Other comprehensive loss, net of tax	(23)	(71)	(16)	(23)

Total comprehensive income/(loss)	29	(57)	36	24
Total comprehensive income/(loss) attributable to owners of Orange Polska S.A. Total comprehensive income/(loss) attributable to non-controlling interests	29 -	(57) -	36 -	24 -

Weighted average number of shares (in millions) 1,312 1,312 1,312 1,312

Translation of the financial statements originally issued in Polish

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

(in PLN millions)		At 30 June 2020	At 31 December 2019 Restated
ASSETS	Note		(see Note 3)
Goodwill		2,263	2,263
Other intangible assets		4,318	4,545
Property, plant and equipment		10,335	10,402
Right-of-use assets		2,773	2,681
Trade receivables	9	376	455
Contract assets		62	65
Contract costs		90	99
Derivatives	8,9	-	44
Other assets Deferred tax assets		64 821	65 810
Total non-current assets		21,102	21,429

Inventories		288	218
Trade receivables	9	1,933	2,132
Contract assets		96	117
Contract costs		341	329
Derivatives Other assets	8,9	106 247	1 227
Prepaid expenses		104	65
Cash and cash equivalents	8	393	404
Total current assets		3,508	3,493

TOTAL ASSETS		24,610	24,922
EQUITY AND LIABILITIES
Share capital		3,937	3,937
Share premium		832	832
Other reserves		(170)	(89)
Retained earnings		5,938	5,875
Equity attributable to owners of Orange Polska S.A.		10,537	10,555
Non-controlling interests		2	2
Total equity		10,539	10,557

Trade payables	9	360	348
Lease liabilities		2,177	2,125
Loans from related party Other financial liabilities at amortised cost	8,9 8	2,486 2	6,431 8
Derivatives	8,9	113	55
Provisions		690	649
Contract liabilities		347	344
Employee benefits	7	83	164
Other liabilities		43	50
Total non-current liabilities		6,301	10,174
Trade payables	7,9	2,086	2,367
Lease liabilities		494	447
Loans from related party	8	3,754	11
Other financial liabilities at amortised cost	8	11	61
Derivatives	8,9	65	20
Provisions	11	232	242
Contract liabilities		470	471
Employee benefits		308	185
Income tax liabilities		22	28
Other liabilities		328	359
Total current liabilities		7,770	4,191
TOTAL EQUITY AND LIABILITIES		24,610	24,922

Translation of the financial statements originally issued in Polish

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

(in PLN millions)
	Share Share Other reserves capital premium			Retained earnings	Equity attributable to owners of OPL S.A.	Non controlling interests	Total equity
			Cash flow Actuarial losses hedge reserve on post employment benefits	Deferred tax
Balance at 1 January 2020	3,937	832	(50)	(59)	20	5,884	10,564	2	10,566

Change of accounting policy (see Note 3)	-	-	-	-	-	(9)	(9)	-	(9)

Balance at 1 January 2020 after change of accounting policy	3,937	832	(50)	(59)	20	5,875	10,555	2	10,557

Total comprehensive loss for the 6 months ended 30 June 2020	-	-	(86)	(4)	19	14	(57)	-	(57)

Share-based payments	-	-	-	-	-	1	1	-	1

Transfer to inventories	-	-	(10)	-	-	-	(10)	-	(10)

Other movements (see Note 7)	-	-	-	-	-	48	48	-	48

Balance at 30 June 2020	3,937	832	(146)	(63)	39	5,938	10,537	2	10,539

Balance at 1 January 2019	3,937	832	(20)	(51)	13	5,790	10,501	2	10,503

Total comprehensive income for the 6 months ended 30 June 2019	-	-	(28)	-	5	47	24	-	24

Share-based payments	-	-	-	-	-	2	2	-	2

Balance at 30 June 2019	3,937	832	(48)	(51)	18	5,839	10,527	2	10,529

Translation of the financial statements originally issued in Polish

CONSOLIDATED STATEMENT OF CASH FLOWS

(in PLN millions)	3 months 6 months ended 30 June 2020		3 months 6 months ended 30 June 2019 Restated (see Note 3)
OPERATING ACTIVITIES
Net income	52	14	52	47
Adjustments to reconcile net income to cash from operating activities
Gains on disposal of assets	(5)	(15)	(44)	(48)
Depreciation, amortisation and impairment of property, plant and equipment,
intangible assets and right-of-use assets	744	1,458	667	1,345
Finance costs, net Income tax	49 8	181 2	73 14	153 13
Change in provisions and allowances	(85)	(75)	(70)	(97)
Operational foreign exchange and derivatives (gains)/losses, net	4	(8)	(2)	(3)
Change in working capital
(Increase)/decrease in inventories, gross	10	(68)	(41)	(38)
Decrease in trade receivables, gross	171	236	112	139
(Increase)/decrease in contract assets, gross	15	25	(1)	9
Increase in contract costs	(3)	(3)	(4)	(9)
Increase/(decrease) in trade payables	(18)	(61)	70	(69)
Increase in contract liabilities	-	2	18	27
Increase in prepaid expenses and other receivables	(3)	(47)	(38)	(51)
Increase/(decrease) in other payables	115	108	(19)	(12)
Interest received	8	17	11	21
Interest paid and interest rate effect paid on derivatives, net	(69)	(152)	(109)	(165)
Exchange rate effect received on derivatives, net	1	1	-	-
Income tax paid	(12)	(17)	(1)	(22)
Net cash provided by operating activities	982	1,598	688	1,240
INVESTING ACTIVITIES
Payments for purchases of property, plant and equipment and intangible assets	(458)	(1,066)	(540)	(1,204)
Investment grants received	28	29	27	27
Investment grants paid to property, plant and equipment and intangible assets
suppliers	(58)	(103)	(26)	(52)
Exchange rate effect received on derivatives economically hedging capital
expenditures, net	4	2	-	-
Proceeds from sale of property, plant and equipment and intangible assets Cash paid for subsidiaries, net of cash acquired	15 (5)	30 (5)	30 (132)	133 (132)
Receipts from other financial instruments, net	1	2	-	-

Net cash used in investing activities	(473)	(1,111)	(641)	(1,228)
FINANCING ACTIVITIES
Repayment of long-term loans from related party	-	-	(17)	(17)
Repayment of lease liabilities	(105)	(204)	(98)	(188)
Increase/(decrease) in revolving credit line and other debt	(338)	(297)	80	(53)
Exchange rate effect received on derivatives hedging debt, net	1	1	58	58
Net cash provided by/(used in) financing activities	(442)	(500)	23	(200)
Net change in cash and cash equivalents	67	(13)	70	(188)

Effects of exchange rate changes on cash and cash equivalents	(1)	2	-	-
Cash and cash equivalents at the beginning of the period	327	404	353	611
Cash and cash equivalents at the end of the period	393	393	423	423

Notes to the Condensed IFRS Interim Consolidated Financial Statements

1. The Orange Polska Group

Orange Polska S.A. ("Orange Polska" or "the Company" or "OPL S.A."), a joint stock company, was incorporated and commenced its operations on 4 December 1991. The Orange Polska Group ("the Group") comprises Orange Polska and its subsidiaries. The Group is a part of Orange Group based in France. Orange Polska shares are listed on the Warsaw Stock Exchange.

The Group is the principal provider of telecommunications services in Poland. The Group provides mobile and fixed telecommunications services, including calls, messaging, content, access to the Internet and TV. In addition, the Group provides IT and integration services, leased lines and other telecommunications value added services, sells telecommunications equipment, provides data transmission, constructs telecommunications infrastructure and sells electrical energy.

Orange Polska's registered office is located in Warsaw at 160 Aleje Jerozolimskie St.

The list of entities included in the Condensed IFRS Interim Consolidated Financial Statements of the Group (the "Condensed Interim Consolidated Financial Statements") as at and for the 6 months ended 30 June 2020 is presented in Note 1.2 to the Orange Polska Group IFRS Consolidated Financial Statements ("IFRS Consolidated Financial Statements") for the year ended 31 December 2019.

2. Segment information and performance measures

The Group reports a single operating segment as decisions about resources to be allocated and assessment of performance are made on a consolidated basis. Group performance is currently evaluated by the Management Board based on revenue, EBITDAaL, net income, organic cash flows, eCapex (economic capital expenditures), net financial debt and net financial debt to EBITDAaL ratio based on cumulative EBITDAaL for the last four quarters. Starting from 2020, in order to better capture economic transformation of asset base, proceeds accrued on disposal of assets offset capital expenditures, while gains on their disposal are excluded from EBITDAaL. As a result, eCapex (economic capital expenditures) replaced Capex (capital expenditures) as the key measure of resources allocation used by the Group. Additionally, the amount of EBITDAaL in comparative period was restated to conform to new definition used in 2020.

Since the calculation of EBITDAaL, organic cash flows, eCapex and net financial debt is not defined by IFRS, these performance measures may not be comparable to similar indicators used by other entities. The methodology adopted by the Group is presented below.

EBITDAaL is the key measure of operating profitability used by the Management Board and corresponds to operating income before gains on disposal of assets, depreciation, amortisation and impairment of property, plant and equipment and intangible assets, decreased by interest expense on lease liabilities and adjusted for the impact of deconsolidation of subsidiaries, costs related to acquisition and integration of new businesses, employment termination programs, restructuring costs, significant claims, litigation and other risks as well as other significant non-recurring items. The calculation of EBITDAaL for the 6 months ended 30 June 2020 and 2019 is presented in the table below.

Organic cash flows are the key measure of cash flow generation used by the Management Board and correspond to net cash provided by operating activities decreased by payments for purchases of property, plant and equipment and intangible assets and repayment of lease liabilities, increased by impact of net exchange rate effect received/paid on derivatives economically hedging capital expenditures and lease liabilities and proceeds from sale of property, plant and equipment and intangible assets and adjusted for the payments for acquisition of telecommunications licences, payments for costs related to acquisition and integration of new businesses not included in purchase price and payments relating to significant claims, litigation and other risks. The calculation of organic cash flows for the 6 months ended 30 June 2020 and 2019 is presented in the table below.

eCapex (economic capital expenditures) is the key measure of resources allocation used by the Management Board and represents acquisitions of property, plant and equipment and intangible assets excluding telecommunications licences, offset by the proceeds accrued on disposal of these assets ('proceeds accrued on disposal of assets'). eCapex does not include acquisitions of right-of-use assets. The calculation of eCapex for the 6 months ended 30 June 2020 and 2019 is presented in the table below.

Net financial debt and net financial debt to EBITDAaL ratio are the key measures of indebtedness and liquidity used by the Management Board. The calculation of net financial debt is presented in Note 8.

Basic financial data of the operating segment is presented below:

(in PLN millions)	6 months ended
	30 June 2020	30 June 2019
		Restated
Revenue	5,632	5,537
EBITDAaL (1)	1,401	1,297
Net income	14	47
Organic cash flows	360	(16)
eCapex	819	948

(1) The amount of EBITDAaL in comparative period was restated due to changes in accounting policies (see Note 3) and to conform to new definition used in 2020 (see above).

	At 30 June	At 31 December
	2020	2019
		Restated
Net financial debt (in PLN millions, see Note 8)	5,786	6,087
Net financial debt/EBITDAaL ratio (1)	2.1	2.2

(1) The amount of net financial debt/EBITDAaL ratio in comparative period was restated due to changes in accounting policies (see Note 3) and to conform to new definition of EBITDAaL used in 2020 (see above).

Calculation of performance measures of the operating segment is presented below:

(in PLN millions)	6 months ended
	30 June 2020	30 June 2019
		Restated (see Note 3)
Operating income	197	213
Less gains on disposal of assets (1)	(15)	(48)
Add-back of depreciation, amortisation and impairment of property, plant and equipment
and intangible assets	1,244	1,158
Interest expense on lease liabilities	(32)	(33)
Adjustment for the impact of employment termination programs	-	4
Adjustment for the costs related to acquisition and integration of new subsidiaries	7	3
EBITDAaL	1,401	1,297

(1) Gains on disposal of assets in 2019 include PLN 1 million of loss on disposed subsidiary that was already excluded from EBITDAaL calculation under the previous definition and presented separately in the table above in 2019 as an adjustment for the impact of deconsolidation of subsidiaries.

Translation of the financial statements originally issued in Polish

(in PLN millions)	6 months ended
	30 June 2020	30 June 2019
		Restated
		(see Note 3)
Net cash provided by operating activities	1,598	1,240
Payments for purchases of property, plant and equipment and intangible assets	(1,066)	(1,204)
Exchange rate effect received on derivatives economically hedging capital expenditures, net	2	-
Proceeds from sale of property, plant and equipment and intangible assets	30	133
Repayment of lease liabilities	(204)	(188)
Adjustment for payment for costs related to acquisition and integration of new subsidiaries	-	3
Organic cash flows	360	(16)

(in PLN millions)	6 months ended
	30 June 2020	30 June 2019
Acquisitions of property, plant and equipment and intangible assets	847	1,019
Proceeds accrued on disposal of assets	(28)	(71)
eCapex	819	948

3. Statement of compliance and basis of preparation

Basis of preparation

These unaudited Condensed Interim Consolidated Financial Statements have been prepared in accordance with International Accounting Standard ("IAS") 34 - Interim Financial Reporting ("IAS 34") and with all accounting standards applicable to interim financial reporting adopted by the European Union, issued and effective as at the time of preparing the Condensed Interim Consolidated Financial Statements (see also Note 4).

These Condensed Interim Consolidated Financial Statements should be read in conjunction with the audited IFRS Consolidated Financial Statements for the year ended 31 December 2019.

The Condensed Interim Consolidated Financial Statements include the consolidated income statement, consolidated statement of comprehensive income, consolidated statement of financial position, consolidated statement of changes in equity, consolidated statement of cash flows and selected explanatory notes.

Costs that arise unevenly during the year are anticipated or deferred in the interim financial statements only if it would also be appropriate to anticipate or defer such costs at the end of the year.

These Condensed Interim Consolidated Financial Statements are prepared in millions of Polish zloty ("PLN") and were authorised for issuance by the Management Board on 29 July 2020.

Going concern assessment

As at 30 June 2020, the Group's current liabilities exceeded current assets by PLN 4,262 million. The related party loans of PLN 3,547 million (presented in Note 19 to the IFRS Consolidated Financial Statements for the year ended 31 December 2019) are due in May and June 2021. The Management is discussing and negotiating the refinancing of these loans with the parent company, and based on current discussions and past experience, believes that they will be successful. Furthermore, the Management analysed the timing, nature and scale of potential financing needs of the Group and believes that available cash as well as expected operating cash inflows will be sufficient to fund the Group's anticipated cash requirements for working capital purposes. Consequently, the Condensed Interim Consolidated Financial Statements have been prepared on the assumption that the Group companies will continue as a going concern in the foreseeable future, for at least the next twelve months.

New standards and interpretations in 2020

There were no new standards or interpretations issued from the date when the IFRS Consolidated Financial Statements for the year ended 31 December 2019 were issued. Changes to standards and interpretations in 2020 did not result in any changes to accounting policies applied by the Group.

IFRS Interpretation Committee's decision on Lease Term and Useful Life of Leasehold Improvements

In December 2019 the Committee published its decision (the "Decision") in respect to the lease term. The Committee discussed the concepts of "penalties" and "enforceable period", which are used in the determination of the lease term and provided guidance on how they should be understood and applied when determining the lease term. The Committee concluded that the contract is enforceable as long as the lessee or the lessor would have to bear more than an insignificant penalty in case of termination of the contract. Therefore, even in the absence of option for the lessee to extend the lease at its discretion, the reasonably certain lease term shall be assessed in order to determine the lease term and, as a result, the amounts of the lease liability and of the right-of-use asset. Furthermore, according to the Committee, the concept of "penalty" should be considered as all economic disincentives and should not be limited only to contractual penalties.

As a result of the Decision and the analysis performed in 2020, the Group changed its accounting policy in respect of the determination of the lease term of cancellable leases. The change was applied retrospectively and impacted the statement of financial position as at 1 January 2019. The Group assessed the reasonably certain lease terms of cancellable lease contracts to be equal to 5 years for all lease contracts, except for 18 years for road occupancy leases where fixed network infrastructure is placed. This change in accounting policy resulted in the recognition of additional right-of-use assets and additional lease liabilities, mainly in respect of leases of premises and ground for fixed and mobile network infrastructure.

Adoption of changes described above affected the consolidated statement of financial position as at 1 January 2019 and 31 December 2019, the consolidated income statement, total comprehensive income and consolidated statement of cash flows for the 3 and 6 months ended 30 June 2019 as follows:

CONSOLIDATED INCOME STATEMENT:

3 months	6 months	3 months	6 months	3 months	6 months
					ended 30 June 2019
			Impact
					After changes
2,759	5,537	-	-	2,759	5,537
					(3,087)
					(211)
(67)	(138)	(25)	(49)	(92)	(187)
138	209	1	4	139	213
					(33)
(68)	(142)	(5)	(11)	(73)	(153)
(15)	(14)	1	1	(14)	(13)
55	53	(3)	(6)	52	47

39	30	(3)	(6)	36	24
	(1,555) (119) (12)	ended 30 June 2019 Before changes (3,125) (226) (22)	22 4 (5)	ended 30 June 2019 of changes 38 15 (11)	(1,533) (115) (17)

Translation of the financial statements originally issued in Polish

CONSOLIDATED STATEMENT OF FINANCIAL POSITION:

(in PLN millions)	At 1 January 2019

	Before changes	of changes	After changes
ASSETS
Right-of-use assets	1,842	570	2,412
Total non-current assets	20,720	570	21,290
Total current assets	3,969	-	3,969
TOTAL ASSETS	24,689	570	25,259
EQUITY AND LIABILITIES
Total equity	10,503	-	10,503
Lease liabilities	1,261	476	1,737
Total non-current liabilities	7,995	476	8,471
Lease liabilities	311	94	405
Total current liabilities	6,191	94	6,285
TOTAL EQUITY AND LIABILITIES	24,689	570	25,259

(in PLN millions)	At 31 December 2019
		Impact
ASSETS	Before changes	of changes	After changes

Right-of-use assets	2,101	580	2,681
Deferred tax assets	808	2	810 21,429
Total non-current assets	20,847	582
Total current assets	3,493	-	3,493
TOTAL ASSETS	24,340	582	24,922
EQUITY AND LIABILITIES
Retained earnings	5,884	(9)	5,875
Total equity	10,566	(9)	10,557
Lease liabilities	1,633	492	2,125
Total non-current liabilities	9,682	492	10,174
Lease liabilities	348	99	447
Total current liabilities	4,092	99	4,191
TOTAL EQUITY AND LIABILITIES	24,340	582	24,922

Translation of the financial statements originally issued in Polish

CONSOLIDATED STATEMENT OF CASH FLOWS:

(in PLN millions)	3 months	6 months ended 30 June 2019	3 months	6 months ended 30 June 2019	3 months	6 months ended 30 June 2019
				Impact
		Before changes		of changes	After changes
OPERATING ACTIVITIES
Net income	55	53	(3)	(6)	52	47
to cash from operating Adjustments to reconcile net income activities Depreciation, amortisation and impairment of property, plant
and equipment, intangible assets and right-of-use assets	642	1,296	25	49	667	1,345
Finance costs, net	68	142	5	11	73	153
Income tax	15	14	(1)	(1)	14	13
Interest paid and interest rate effect paid on derivatives, net	(104)	(156)	(5)	(9)	(109)	(165)
Net cash provided by operating activities	667	1,196	21	44	688	1,240
FINANCING ACTIVITIES
Repayment of lease liabilities	(77)	(144)	(21)	(44)	(98)	(188)
Net cash provided by/(used in) financing activities	44	(156)	(21)	(44)	23	(200)
Net change in cash and cash equivalents	70	(188)	-	-	70	(188)

Amendment to IFRS 16 COVID-19-Related Rent Concessions

On 28 May 2020, the International Accounting Standards Board has issued an amendment "COVID-19-Related Rent Concessions" to IFRS 16 Leases to make it easier for lessees to account for COVID-19-related rent concessions. The amendment exempts lessees from having to consider individual lease contracts to determine whether rent concessions occurring as a direct consequence of the COVID-19 pandemic are lease modifications and allows lessees to account for such rent concessions as if they were not lease modifications. The amendment has not been endorsed by the European Union yet. The endorsement of the amendment will not have a significant effect on the Group's financial statements.

4. Statement of accounting policies

Except for the changes described in Note 3 and presented below, the accounting policies and methods of computation used in the preparation of the Condensed Interim Consolidated Financial Statements are materially consistent with those described in Notes 2 and 32 to the audited IFRS Consolidated Financial Statements for the year ended 31 December 2019.

Starting from 2020, the Group changed its accounting policy relating to presentation of foreign exchange gains/losses arising on revaluation and settlement of lease liabilities and related hedging instruments as follows:

Lease liabilities denominated in foreign currencies and related hedging instruments are re-measured at the end of the reporting period and the resulting translation differences are recorded in the consolidated income statement in finance costs, net (previously in other operating income/expense).

Additionally, foreign exchange gains/losses for the 6 months ended 30 June 2019 amounting to PLN 3 million presented within finance costs, net, were separated from other interest expense and financial charges to new line item.

The Group believes that the new presentation better reflects the economic nature of lease contracts which are longterm financial liabilities used for financing purpose and their impact should be presented in the consolidated income statement in finance costs, net.

5. Revenue

Revenue is disaggregated as follows:

Mobile only services	Revenue from mobile offers (excluding consumer market convergent offers) and Machine to Machine connectivity. Mobile only services revenue does not include equipment sales, incoming and visitor roaming revenue.
Fixed only services	Revenue from fixed offers (excluding consumer market convergent offers) including mainly (i) fixed broadband (including wireless for fixed), (ii) fixed narrowband, and (iii) data infrastructure and networks for business customers.
Convergent services (consumer market)	Revenue from consumer market convergent offers. A convergent offer is defined as an offer combining at least a broadband access and a mobile voice contract with a financial benefit (excluding MVNOs). Convergent services revenue does not include equipment sales, incoming and visitor roaming revenue.
Equipment sales	Revenue from all retail mobile and fixed equipment sales, excluding equipment sales associated with the supply of IT and integration services.
IT and integration services	Revenue from ICT (Information and Communications Technology) services and Internet of Things services, including equipment sales associated with the supply of these services.
Wholesale	Revenue from telecom operators for (i) mobile: incoming, visitor roaming, domestic mobile interconnection (i.e. domestic roaming agreement and network sharing) and MVNO, (ii) fixed carriers services, and (iii) other (mainly data infrastructure and networks).
Other revenue	Include (i) equipment sales to brokers and dealers, (ii) revenue from sale of electrical energy, (iii) revenue from infrastructure projects, and (iv) other miscellaneous revenue e.g. from property rentals, research and development activity.

(in PLN millions)	3 months	6 months	3 months	6 months
	ended 30 June 2020		ended 30 June 2019
Mobile only services	630	1,268	646	1,286
Fixed only services	527	1,050	552	1,121
Narrowband	206	414	233	477
Broadband	214	425	213	432
Network solutions (business market)	107	211	106	212
Convergent services (consumer market)	428	847	384	753
Equipment sales	308	614	352	719
IT and integration services	238	471	163	310
Wholesale	613	1,214	568	1,128
Mobile wholesale	366	715	324	634
Fixed wholesale	165	336	169	346
Other	82	163	75	148
Other revenue	84	168	94	220
Total revenue	2,828	5,632	2,759	5,537

Wholesale and other revenue for the 6 months ended 30 June 2020 and 2019 include, respectively, PLN 40 million and PLN 45 million of lease revenue that is outside the scope of IFRS 15 "Revenue from Contracts with Customers".

6. Explanatory comments about the seasonality or cyclicality of interim Group operations

The Group's activities are subject to some seasonality. The fourth quarter is typically a peak sales season with high commercial spending and with increased capital expenditures resulting from investment cycle management applied by the Group. Seasonally high capital expenditures in the fourth quarter are followed by higher payments to property, plant and equipment and intangible assets suppliers in the first quarter of the subsequent year resulting in higher cash used in investing activities.

7. Items affecting assets, liabilities, equity, net income or cash flows that are unusual because of their nature, size or incidence

Impact of COVID-19 pandemic

In March 2020, COVID-19 was officially declared as a pandemic. The authorities closed the borders, introduced a lockdown on schools, some businesses and facilities and restricted movement of people to leaving home for essential reasons only. The imposed restrictions have been progressively lifted starting from end of April 2020. The pandemic has significantly impacted the Polish economy. Consensus of forecasts indicates that Poland's GDP may fall by 3.8% in 2020 with economic activity being still affected in the second half of the year. At the same time the consensus indicates that GDP in Poland could return to growth in 2021 although the pace of the recovery is highly uncertain at the moment. The government has introduced 5 sets of legislation (Anti-crisis Shields and Financial Shield) targeted mainly on micro, small and medium companies, aimed at counterbalancing the crisis impact.

Since mid-March, the Group has implemented a number of actions to adapt to the crisis situation, ensure business continuity and reduce the risks of the pandemic. The pandemic had an impact on the Group's ability to achieve its business goals in the first half of 2020. The Management has adopted a number of counteractive measures to mitigate the negative impact of the pandemic on Group's business performance. Based on the up to date observations, the Group discloses the following major impacts of COVID-19 pandemic on its operations, financial position and performance in the 6 months ended 30 June 2020:

1. The results achieved in the first half of 2020 indicate that the core of the Group's operations remains relatively immune to the impact of the pandemic. Data and voice connectivity has become more essential than ever to the needs of consumers and businesses. The majority of revenue and profits are derived from subscriptionbased services, which allows the Group to rely on relatively stable and predictable revenue streams.
1. The Group observes increased voice and data traffic in its mobile and fixed networks. The networks are working without disruption and are handling the higher volumes well, benefitting from fibre infrastructure in core and access layers.
1. The distribution network was significantly affected as around 45% of points of sale were closed from mid-March till beginning of May 2020. During that time, shops which remained open, experienced much lower customer traffic. All points of sale were reopened on 4 May, however traffic both in shopping malls and other shops remains below usual traffic before confinement. To counteract this, the Group has been boosting online and telesales and observes increased customer traffic in these channels. However, this increase has not yet compensated for a loss of traffic in points of sale. This situation on one hand affected sale of new services, sale of equipment and related accessories and on the other hand the Group observed lower customer churn. There were much lower activations of new pre-paid cards as a consequence of pandemic-related reduced small business activity and much lower sales to foreign residents. Sale of new services progressively improved in May and June.
1. Restrictions for people's mobility (borders were closed from mid-March and reopened on 13 June 2020, only for European Union citizens) and likely adverse attitude to travel negatively influenced revenue from international roaming and visitor roaming, accompanied by lower roaming interconnection expenses. On the other hand, revenue from wholesale mobile incoming considerably increased during the lockdown, reflecting much higher traffic, in line with mobile outgoing costs.
1. The Group assessed if there are any impairment indicators of telecom operator Cash Generating Unit and concluded that there are none as at 30 June 2020. Therefore, no impairment test was performed at this date.
1. The Group performed an analysis of available information about past events, current conditions and forecasts of future economic conditions to evaluate the impact of COVID-19 on the bad debt allowance. Based on a scenario analysis, with middle scenario assuming a GDP decrease of 3.8% in 2020, and the bad debt experience in 2011-2012 when a significant reduction in GDP growth last occurred, the Group recognised additional PLN 15 million of impairment of trade receivables as at 30 June 2020. The Group will update the analysis as the effects of COVID-19 and related government responses become clearer.
1. Significant weakening of PLN against EUR and USD in the first half of 2020 resulted in the recognition of foreign exchange losses (mainly on unhedged long-term lease liabilities), which are presented in finance costs, net. Weakening of PLN had a limited negative influence on operating costs and level of capital expenditures, as the Group uses financial instruments to hedge majority of these exposures. Currency loans from related party and bank borrowings are also hedged and the Group's debt is effectively denominated in PLN.
1. As at 30 June 2020, the Group performed an analysis to evaluate the impact of COVID-19 on the realization of contractual commitments. The results of the analysis have been adequately recognised in the Group's financial statements.

Impact of COVID-19 pandemic on the Group, its financial position and performance in next periods depends on many factors which are beyond the control of the Group. These factors include, among others: the length and severity of the pandemic, measures taken by the government to limit the pandemic and to protect society from the effects of the crisis and in result its ultimate impact on the Polish economy. The Group will monitor the COVID-19 situation, its impact on the Polish economy, as well as indicators more specific to the Group.

Amendments to the Collective Labour Agreement

In June 2020, Orange Polska signed with Trade Unions amendments to the Collective Labour Agreement. Under the current provisions of the Collective Labour Agreement, employees are entitled to jubilee awards upon completion of a certain number of years of service. According to the agreed changes, these current rules regarding jubilee awards will be cancelled from April 2021. At the same time, in the period between April and December 2021, employees with 15-30 years of service will receive a one-off jubilee award at the specified amount depending on a number of years of service. As a result, negative past service cost of PLN 64 million was recognised as a decrease in labour expense in the first half of 2020 with a corresponding decrease in liabilities relating to employee benefits.

Other events of the interim period

A correction resulting from immaterial errors in prior periods was recognised by the Group directly in retained earnings and presented as other movements in the consolidated statement of changes in equity. The correction of PLN 48 million relates to capitalization of some indirect employee benefits as property, plant and equipment and other intangible assets.

The amount of trade payables subject to reverse factoring increased from PLN 147 million as at 31 December 2019 to PLN 228 million as at 30 June 2020. These payables are presented together with the remaining balance of trade payables, as analysis conducted by the Group indicates they have retained their trade nature.

8. Net financial debt

Net financial debt is a measure of indebtedness used by the Management Board. Since the calculation of this aggregate is not defined by IFRS, the methodology adopted by the Group is presented below:

(in PLN millions)	At 30 June	At 31 December
	2020	2019
Loans from related party	6,240	6,442
Other financial liabilities at amortised cost	13	69
Derivatives – net (liabilities less assets)	72	30
Gross financial debt after derivatives	6,325	6,541
Cash and cash equivalents	(393)	(404)
Cash flow hedge reserve	(146)	(50)
Net financial debt	5,786	6,087

In the 6 months ended 30 June 2020, the net cash flows from issuance and repayments of the Revolving Credit Facility from Atlas Services Belgium S.A., a subsidiary of Orange S.A., amounted to PLN (240) million.

As at 30 June 2020, the total outstanding balance of loans from the related party amounted to PLN 6,240 million, including accrued interest and arrangement fees. The weighted average effective interest rate on loans from the related party amounted to 1.40% before swaps and 3.14% after swaps as at 30 June 2020.

As at 30 June 2020, the total nominal amount of cross currency interest rate swaps and interest rate swaps, outstanding under the agreement with Orange S.A. concerning derivative transactions, was EUR 190 million and PLN 5,450 million, respectively, with a total negative fair value amounting to PLN 99 million.

In June 2020, the Group and Orange S.A. concluded an agreement extending the access to back-up liquidity funding of PLN 500 million under Cash Management Treasury Agreement to 31 December 2021.

9. Fair value of financial instruments

The Group's financial assets and liabilities that are measured subsequent to their initial recognition at fair value comprise derivative instruments and selected trade receivables arising from sales of mobile handsets in instalments. As at 30 June 2020 and 31 December 2019, the total negative fair value of derivatives amounted to PLN 72 million and PLN 30 million, respectively, and fair value of selected trade receivables arising from sales of mobile handsets in instalments amounted to PLN 102 million and PLN 218 million, respectively. The fair value of these instruments is determined as described in Notes 13.1 and 22 to the IFRS Consolidated Financial Statements for the year ended 31 December 2019. Significant inputs to the valuation techniques used by the Group to measure the fair value of derivatives and selected trade receivables are classified to Level 2 of the fair value hierarchy described in Note 23.1.

The carrying amount of the Group's financial instruments excluding lease liabilities approximates their fair value, except for telecommunications licence payables and a loan from related party based on fixed interest rate for which as at 30 June 2020 the estimated fair value exceeded the carrying amount respectively by PLN 60 million and PLN 52 million (PLN 65 million and PLN 34 million as at 31 December 2019) due to significant change between the original effective interest rates at the date of the initial recognition and current market rates.

10. Dividend

In accordance with the recommendation of the Management Board of the Company there was no dividend paid in 2020.

11. Changes in major litigation and claims, contingent liabilities and contingent assets since the end of the last annual reporting period

The information hereunder refers to the matters presented in Note 29 to the IFRS Consolidated Financial Statements for the year ended 31 December 2019 or describes major matters that occurred after 31 December 2019.

a. Proceedings by UOKiK and claims connected with them

Proceedings by UOKiK related to pre-paid offers

UOKiK informed the Company that it had further prolonged the proceedings. The indicated date of prolongation was 30 April 2020. There was no further prolongation but UOKiK has not issued a decision in these proceedings up to the date of publication of these financial statements.

Proceedings related to retail prices of calls to Play

P4 Sp. z o.o.'s statement of claim for PLN 314 million has not yet been served on Orange Polska.

In the appeal proceedings regarding P4's claim for PLN 316 million, the Appeal Court scheduled a hearing for 28 August 2020.

b. Other contingent liabilities and provisions

Apart from the above-mentioned, operational activities of the Group are subject to legal, tax, social and administrative regulations and the Group is a party to a number of legal and tax proceedings and commercial contracts related to its operational activities. Some regulatory decisions can be detrimental to the Group and court verdicts within appeal proceedings against such decisions can have negative consequences for the Group. Also, there are claims including for damages or contractual penalties raised by counterparties to commercial contracts which may result in cash outflows.

Furthermore, the Group uses fixed assets of other parties in order to provide telecommunications services. Terms of use of these assets are not always formalised and as such, the Group is subject to claims and might be subject to future claims in this respect, which could result in a cash outflow in the future. The amount of the potential obligations or future commitments cannot be measured with sufficient reliability due to legal complexities involved. The Group monitors the risks on a regular basis and the Management Board believes that adequate provisions have

been recorded for known and quantifiable risks.

12. Related party transactions

As at 30 June 2020, Orange S.A. owned 50.67% of shares of the Company. Orange S.A. has majority of the total number of votes at the General Meeting of OPL S.A. which appoints OPL S.A.'s Supervisory Board Members. The Supervisory Board decides about the composition of the Management Board. According to the Company's Articles of Association, at least 4 Members of the Supervisory Board must be independent. The majority of Members of the Audit Committee of the Supervisory Board are independent.

The Group's income earned from the Orange Group comprises mainly wholesale telecommunications services and research and development income. The purchases from the Orange Group comprise mainly brand fees and wholesale telecommunications services.

Financial receivables, liabilities, finance costs, net and other comprehensive loss concerning transactions with the Orange Group relate mainly to loan agreements concluded with Atlas Services Belgium S.A. and agreement with Orange S.A. concerning derivative transactions to hedge exposure to foreign currency risk and interest rate risk related to the above-mentioned loan agreements. Cash and cash equivalents deposited with Orange S.A. relate to the Cash Management Treasury Agreement.

(in PLN millions)	3 months	6 months	3 months	6 months
	ended 30 June 2020		ended 30 June 2019
Sales of goods and services and other income:	51	103	55	104
Orange S.A. (parent)	33	67	37	69
Orange Group (excluding parent)	18	36	18	35
Purchases of goods (including inventories, tangible and intangible assets)
and services:	(57)	(112)	(59)	(109)
Orange S.A. (parent)	(15)	(27)	(16)	(25)
Orange Group (excluding parent)	(42)	(85)	(43)	(84)
including Orange Brand Services Limited (brand licence agreement) -	(31)	(58)	(28)	(55)
Finance costs, net:	(48)	(98)	(55)	(112)
Orange S.A. (parent)	(33)	12	(22)	(43)
Orange Group (excluding parent)	(15)	(110)	(33)	(69)
Other comprehensive loss:	(21)	(121)	(15)	(25)
Orange S.A. (parent)	(21)	(121)	(15)	(25)

(in PLN millions)	At 30 June	At 31 December
	2020	2019
Receivables:	86	97
Orange S.A. (parent)	63	64
Orange Group (excluding parent)	23	33
Liabilities:	87	100
Orange S.A. (parent)	31	49
Orange Group (excluding parent)	56	51
Financial receivables:	79	38
Orange S.A. (parent)	79	38
Cash and cash equivalents deposited with:	121	29
Orange S.A. (parent)	121	29
Financial liabilities:	6,418	6,497
Orange S.A. (parent)	178	55
Orange Group (excluding parent)	6,240	6,442

Compensation (remuneration, bonuses, post-employment and other long-term benefits, termination indemnities and share-based payment plans - cash and non-monetary benefits) of OPL S.A.'s Management Board and Supervisory Board Members for the 6 months ended 30 June 2020 and 2019 amounted to PLN 9.5 million and PLN 11.1 million, respectively.

13. Subsequent events

There was no significant event after the end of the reporting period.

Pursuant to Art. 69 of the Decree of the Minister of Finance of 29 March 2018 on current and periodic information to be disclosed by issuers of securities and conditions for recognising as equivalent information required by the laws of a non-member state – Journal of Laws of 2018, item 757 ("the Decree of the Minister of Finance of 29 March 2018"), the Management Board of Orange Polska S.A. ("OPL S.A.", "the Company") discloses the following information:

I. Shareholders entitled to exercise at least 5% of total voting rights at the General Meeting of OPL S.A., either directly or through subsidiaries, as at the date of publication of the interim report and changes in the ownership structure in the period since the submission of the previous quarterly report

The ownership structure of the Company's share capital, based on the information available to the Company as at 29 July 2020, i.e. the date of submission of the interim report for the 6 months ended 30 June 2020 was the same as at 28 April 2020, i.e. the date of submission of the quarterly report for the first quarter of 2020:

Shareholder	Number of shares held	Number of votes at the General Meeting of OPL S.A.	Percentage of the total number of votes at the General Meeting of OPL S.A.	Nominal value of shares held (in PLN)	Share in the capital
Orange S.A.	664,999,999	664,999,999	50.67%	1,994,999,997	50.67%
Other shareholders	647,357,480	647,357,480	49.33%	1,942,072,440	49.33%
TOTAL	1,312,357,479	1,312,357,479	100.00%	3,937,072,437	100.00%

II. Statement of changes in ownership of OPL S.A.'s shares or rights to them (options) held by Members of the Management Board and the Supervisory Board of OPL S.A., according to information obtained by OPL S.A., in the period since the submission of the previous quarterly report

Mr Jean-François Fallacher, the President of the Management Board of OPL S.A., held 40,000 Orange Polska S.A. shares as at 29 July 2020 and 28 April 2020.

Ms Jolanta Dudek, the Member of the Management Board of OPL S.A., held 8,474 Orange Polska S.A. shares as at 29 July 2020 and 28 April 2020.

Mr Piotr Jaworski, the Member of the Management Board of OPL S.A., held 673 Orange Polska S.A. shares as at 29 July 2020 and 28 April 2020.

Mr Maciej Nowohoński, the Member of the Management Board of OPL S.A., held 25,000 Orange Polska S.A. shares as at 29 July 2020 and 28 April 2020.

There was no OPL S.A. share held by other members of the Management Board or the Supervisory Board of the Company.

III. Information on guarantees or collaterals of loans or borrowings granted by the Company or its subsidiaries to other entities or their subsidiaries, where the total amount of guarantees or collaterals is significant

In the 6 months ended 30 June 2020, neither the Company nor its subsidiaries granted guarantees or collateral of loans or borrowings to any entity or its subsidiary, a total value of which would be significant.

IV. Management Board's Position as to the achievement of the previously published financial projections for the given period

As announced in the current report 3/2020 of February 12, 2020, the Group forecasts that EBITDAaL in 2020 will be higher than in 2019 (PLN 2.718 billion after restatement). Considering the results of the first half of 2020 and additional measures implemented to mitigate the impact of the crisis, the Management Board of Orange Polska S.A. is reiterating its forecast for growth of EBITDAaL in 2020. However, the Management Board will closely monitor the situation and assess the impact of the COVID-19 pandemic on the Group's performance on a current basis.

V. Factors which, in the opinion of the Group, may affect its results over at least the next quarter

Factors that, in the Management Board's opinion, have influence on the Group's operations or may have such influence in the near future are presented in Section 4 of the Chapter II of Management Board's Report on the Activity of the Orange Polska Group in the first half of 2020. Additionally, key risk factors that may impact the Group's operational and financial performance are reviewed in detail in the Chapter IV of the above-mentioned Report.

VI. Foreign exchange rates

The statement of financial position data as at 30 June 2020 and 31 December 2019 presented in the table "Selected financial data" was translated into EUR at the average exchange rates of the National Bank of Poland ("NBP") at the end of the reporting period. The income statement data, together with the statement of comprehensive income and statement of cash flows data for the 6 months ended 30 June 2020 and 2019, were translated into EUR at an exchange rates which is the arithmetical average of the average NBP rates published by the NBP on the last day of each month of the 6-month periods ended 30 June 2020 and 2019.

The exchange rates used in the translation of the statement of financial position, income statement, statement of comprehensive income and statement of cash flows data are presented below:

	30 June 2020	31 December 2019	30 June 2019
Statement of financial position	4.4660 PLN	4.2585 PLN	Not applicable
Income statement, statement of comprehensive income, statement of cash flows	4.4413 PLN	Not applicable	4.2880 PLN

The Polish original should be referred to in matters of interpretation. Translation of auditor's report originally issued in Polish.

Ernst & Young Audyt Polska spółka z ograniczoną odpowiedzialnością sp. k. Rondo ONZ 1 00-124 Warszawa

+48 (0) 22 557 70 00 +48 (0) 22 557 70 01 www.ey.com/pl

INDEPENDENT AUDITOR'S REPORT ON REVIEW OF INTERIM CONDENSED FINANCIAL STATEMENTS