PGE Polska Grupa Energetyczna S.A.

Business and Financial Review • Mar 13, 2020

Information about result of impairment tests

With regard to the current report no. 8/2020 dated March 3, 2020, theManagement Board of PGE Polska Grupa Energetyczna S.A. "PGE") disclosesthat major works regarding tests for impairment of tangible fixed assetsin accordance with the IAS 36 have been completed.

Results of conducted tests indicate the impairment loss of balance sheetvalue of property, plant and equipment in Conventional Generationsegment amounting to approx. PLN 7.5bn. At the same time, theindications were identified to reverse an impairment loss in Renewablessegment in amount of approx. PLN 0.4bn.

Accordingly, appropriate adjustments updating value of property, plantand equipment will be recognized in the consolidated financialstatements of PGE for the year 2019. The above adjustments are ofnon-cash nature. They will lower the PGE Group's net result for 2019 byapprox. PLN 5.8bn.

Presented values are estimated and may change. Consolidated financialstatements of the PGE Capital Group are being audited by theprofessional auditor. Final value of the impairment will be presented inthe annual consolidated report of the PGE Capital Group for 2019.