PGE Polska Grupa Energetyczna S.A.

Annual Report • Mar 31, 2020

Warsaw, March 31, 2020

Assessment by the Supervisory Board of PGE Polska Grupa Energetyczna S.A. of the financial statements for 2019 and report on operations of PGE Polska Grupa Energetyczna S.A. and PGE Group for 2019

This assessment by the Supervisory Board of PGE Polska Grupa Energetyczna S.A. concerning the financial statements for 2019 and report on the operations of PGE Polska Grupa Energetyczna S.A. and PGE Group for 2019 is prepared pursuant to art. 382 § 3 of the Polish Commercial Companies Code and in connection with § 70 sec. 1 point 14 and § 71 sec. 1 point 12 of the Regulation of the Minister of Finance of March 29, 2018, on current and periodic information disclosed by issuers of securities and on terms for considering as equivalent information required by the laws of a non-member state.

The Supervisory Board of PGE has made a positive assessment of the following documents provided by the Management Board of PGE Polska Grupa Energetyczna S.A.:

• "PGE Polska Grupa Energetyczna S.A. Separate financial statements for 2019, ended December 31, 2019",
• "PGE Polska Grupa Energetyczna S.A. Consolidated financial statements for 2019, ended December 31, 2019",
• "Management Board report on the operations of PGE Polska Grupa Energetyczna S.A. and PGE Group for 2019, ended December 31, 2019",

The assessment was also based on the results of an audit by a statutory auditor, as presented in reports by an independent statutory auditor on audit of the separate and consolidated financial statements of PGE Polska Grupa Energetyczna S.A. and PGE Group for 2019. The audit of the separate and consolidated financial statements for 2019 was performed by Deloitte Audyt Spółka z ograniczoną odpowiedzialnością Sp. k., based in Warsaw, entered onto the list of entities authorised for audit, maintained by the Polish Chamber of Statutory Auditors, under no. 73.

The results of this assessment together with justification are presented below.

The Supervisory Board of PGE made an assessment of the annual financial statements of PGE Polska Grupa Energetyczna S.A. (document entitled "PGE Polska Grupa Energetyczna S.A. Separate financial statements for 2019, ended December 31, 2019"), consisting of: statement of financial position as at December 31, 2019, statement of comprehensive income, statement of changes in equity, statement of cash flows for the period from January 1 to December 31, 2019, general information, basis for preparing the financial statements and other explanatory information and explanatory notes.

The Supervisory Board of PGE also made an assessment of the annual consolidated financial statements of PGE Group, the parent company of which is PGE Polska Grupa Energetyczna S.A., (document entitled "PGE Polska Grupa Energetyczna S.A. Consolidated financial statements for 2019, ended December 31, 2019"), consisting of: consolidated statement of financial position as at December 31, 2019, consolidated statement of comprehensive income, consolidated statement of changes in equity, consolidated statement of cash flows for the period from January 1 to December 31, 2019, general information, basis for preparing the financial statements and other explanatory information and explanatory notes.

In accordance with the independent statutory auditor's reports on audit of the separate and consolidated financial statements of PGE Polska Grupa Energetyczna S.A. and PGE Group:

• the financial statements present a credible and clear depiction of the asset and financial situation of PGE Polska Grupa Energetyczna S.A. and PGE Group as at December 31, 2019, as well as its financial result and cash flows for the annual period from January 1, 2019, to December 31, 2019, in accordance with the applicable International Financial Reporting Standards, as endorsed by the European Union, and the adopted accounting rules (policy),
• the financial statements are in compliance, as to form and content, with the laws applicable to PGE Group and provisions of the articles of association of PGE Polska Grupa Energetyczna S.A.,
• the separate financial statements were prepared on the basis of correctly maintained accounting books.

The Supervisory Board of PGE Polska Grupa Energetyczna S.A. also analysed the Management Board reports on the operations of the parent company and the group, which were prepared as a single document entitled "Management Board report on the operations of PGE Polska Grupa Energetyczna S.A. and PGE Group for 2019, ended December 31, 2019." According to the Supervisory Board of PGE Polska Grupa Energetyczna S.A., the aforementioned report was prepared in compliance with art. 49 and art. 55 sec. 2a of the Accounting Act and § 70 and § 71 of the Ordinance of the Minister of Finance of March 29, 2018, on current and periodic information disclosed by issuers of securities and on terms for considering as equivalent information required by the laws of a non-member state, and is in compliance with the information contained in the separate and consolidated financial statements.

In the process of analysing the financial statements, the Audit Committee at the Supervisory Board of PGE Polska Grupa Energetyczna S.A. regularly met with the audit firm's representatives. The Audit Committee also examined the independent statutory auditor's reports on audit of the annual consolidated financial statements and separate financial statements. As a result of the above, the Audit Committee recommended to the Supervisory Board a positive assessment of the financial statements for 2019.

Following analysis of the aforementioned financial statements and report on operations, and based on the audit report provided by the statutory auditor, the Supervisory Board of PGE Polska Grupa Energetyczna S.A. concludes that:

• "PGE Polska Grupa Energetyczna S.A. Separate financial statements for 2019, ended December 31, 2019",
• "PGE Polska Grupa Energetyczna S.A. Consolidated financial statements for 2019, ended December 31, 2019",
• "Management Board report on the operations of PGE Polska Grupa Energetyczna S.A. and PGE Group for 2019, ended December 31, 2019",

are in accordance with the accounts, documents and the facts.

Signatures:
Chairman of the Supervisory Board Anna Kowalik	…………………………………………………….
Vice-Chairman of the Supervisory Board Artur Składanek	…………………………………………………….
Secretary of the Supervisory Board Grzegorz Kuczyński	…………………………………………………….
Supervisory Board Member Janina Goss	…………………………………………………….
Supervisory Board Member Tomasz Hapunowicz	…………………………………………………….
Supervisory Board Member Mieczysław Sawaryn	…………………………………………………….
Supervisory Board Member Jerzy Sawicki	…………………………………………………….
Supervisory Board Member Radosław Winiarski	…………………………………………………….