PGE Polska Grupa Energetyczna S.A.

Earnings Release • Mar 3, 2023

Estimated selected financial and operating data for year 2022.

The Management Board of PGE Polska Grupa Energetyczna S.A. ("PGE")publishes initial selected consolidated financial and operating data foryear 2022.

According to the initial estimates net electricity production at PGEGroup generating units in 2022 amounted to 66.1 TWh, distribution volumearrived at 37.1 TWh and sales to final off-takers came out at 34.3 TWh.Heat sales volume amounted to 51.3 PJ.

Consolidated recurring EBITDA in 2022 amounted to approximately PLN 7159 m, including:

EBITDA of Conventional Generation segment PLN 618 m,

EBITDA of District Heating segment PLN 33 m,

EBITDA of Distribution segment PLN 2 836 m,

EBITDA of Supply segment PLN 1 950 m,

EBITDA of Renewables segment PLN 1 796 m.

EBITDA of Circular Economy segment PLN 37 m.

Estimated impact of the contributions to Price Difference Payment Fund(resulting from the Act of 27 October 2022 on extraordinary measures tolimit the level of electricity prices and support for certain consumersin 2023 and the Regulation of the Council of Ministers on the method ofcalculating the price cap of 8 November 2022) in December 2022 insegments of Conventional Generation, District Heating, Renewables andSupply amounted to PLN 351m (decreasing financial results).

In addition, the results for 2022 were influenced by one-off eventsincreasing reported EBITDA result by approx. PLN 1 537m, including amongothers non-cash item of changes in reclamation provision, whichtranslated into an increase in EBITDA by PLN 1 721m and provision forone-time benefit related to NABE carve-out (decreasing EBITDA) in theamount of PLN 187m.

In effect, consolidated reported EBITDA in 2022 amounted toapproximately PLN 8 696m, including:

Conventional Generation segment PLN 2 065m,

District Heating segment PLN 39m,

Distribution segment PLN 2 850m,

Supply segment PLN 2 043m,

Renewables segment PLN 1 795m,

Circular Economy segment PLN 37m.

Consolidated net profit attributable to equity holders of the parentcompany amounted to approximately PLN 3 360 m (i.e. earnings per shareof PLN 1.58). CAPEX amounted to PLN 6 988 m. Estimated net debt amountedto approximately PLN -2 656m (net cash) as at December 31, 2022, andestimated economic net financial debt (including future payment for CO2allowances) amounted to approx. PLN 14.4bn.

Average electricity wholesale price realized in 2022 (includingcontributions to Price Difference Payment Fund) by:

- Conventional Generation segment amounted to PLN 519.0 per MWh,

- Conventional Generation and District Heating segments amounted to PLN505.5 per MWh.

At the same time, the average cost of CO2 emission rights for bothsegments related to electricity generation amounted to PLN 304.5 per MWh.

Disclaimer: Presented values are estimated and may change. Consolidatedfinancial statements of the PGE Group are still in the preparationprocess. The consolidated report for 2022 is planned to be published onMarch 21, 2023.