PRELIMINARY SELECTED CONSOLIDATED FINANCIAL RESULTS FOR THE FIRST HALF OF 2023

The Management Board of the company under the business name of Polenergia S.A., with its registered office in Warsaw (the “Issuer“), publishes selected preliminary, estimated, consolidated financial results of the Polenergia S.A. Capital Group (the “Group“) for the first half of 2023.

In the first half of 2023, the Group’s adjusted EBITDA amounted to PLN 308.9m and was PLN 97.5m higher than in the corresponding period of the previous year. This was mainly due to a higher result generated by the wind farm sector, which is essentially due to production initiation at the Dębsk and Kostomłoty wind farms and higher sales prices of electricity and green certificates compared to 2022 (when prices resulting from hedging transactions which had been concluded in previous years were in force). Higher adjusted EBITDA compared to the corresponding period of the previous year was also recorded in the sales and trading sector, which is predominantly a consequence of higher results on: trading in energy from RES assets, RES aggregation, trading in wind farms certificates, and sales of photovoltaic panels and heat pumps. The above effects were partly offset by a lower result of the distribution sector due to a delay in the application of a new distribution tariff and higher operating expenses at the Headquarters resulting from a surge in the scale of operations.

In the first half of 2023, the Group’s adjusted net profit amounted to PLN 169.8m, which constitutes growth compared to the result generated in the corresponding period of the previous year by PLN 50.8m. The change in the adjusted net profit in the first half of 2023 was mainly caused by the factors affecting the adjusted EBITDA specified above, higher depreciation and amortisation resulting mainly from an increase in manufacturing capacity, higher proceeds from interest on investments, and an increase in financial costs resulting from a rise in debt level and higher interest rates.

The adjusted EBITDA in the second quarter of 2023 amounted to PLN 107.6m and was higher by PLN 75.2m compared to the result in the corresponding period of the previous year. This was predominantly due to a higher result in the sales and trading sector, mainly as a consequence of higher results on: trading in energy from RES assets, sales of energy, RES aggregation, electricity trading and business services, as well as sales of photovoltaic panels and heat pumps. An improved result was also recorded in the gas-and-clean-fuels sector due to a higher result on the optimisation of the operation of the Nowa Sarzyna CHP plant and a higher margin on heat sales.

In the second quarter of 2023, the Group’s adjusted net profit amounted to PLN 47.6m, which constitutes growth compared to the result generated in the corresponding period of the previous year by PLN 44.1m.

The presented figures are estimates and may be subject to change. The final consolidated results will be presented in detail in the consolidated semi-annual report of the Polenergia Capital Group for the first half of 2023, which is scheduled to be published on August 24^th, 2023.

legal basis: art. 17 (1) of Regulation (EU) No. 596/2014 of the European Parliament and of the Council on market abuse and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC (O J L. 173 as of 2014 p. 1, as amended).