SELECTED INITIAL CONSOLIDATED FINANCIAL RESULTS FOR THREE MONTHS OF 2023

The Management Board of company operating under the business name Polenergia S.A. with its registered office in Warsaw, Poland (“Issuer”) hereby publicly announces the selected initial and estimated consolidated financial results of the Capital Group of Polenergia S.A. (“Group”) for the first three months of 2023.

In the course of three months ended on 31 March 2023, the adjusted EBITDA of the Group was PLN 201.3 million and was higher by PLN 22.4 million as compared to the result in an analogous period of the previous year. This was primarily caused by a higher result in the segment of wind farms, which is mainly a consequence of launch of production in the Dębsk and Kostomłoty wind farms and higher sale prices of electric energy and green certificates as compared to 2022 (where prices resulting from hedge transactions concluded in the previous years were applicable) and lower costs of profile. The effect above was partially compensated by:

– a lower result of the trade and sale segment following a one-time recognition of a high result on assessment of derivatives in the first quarter of the previous year and a lower result on trading in electricity and business servicing;

– a lower result of the distribution segment primarily due to delays in entry into force of the new distribution tariff;

– a lower result on optimisation of operation of the Nowa Sarzyna CHP Plant.

In the first quarter of 2023, the Group’s adjusted net profit was PLN 122.2 million, which is an increase as compared to the result in an analogous period of the previous year by PLN 6.7 million. The change in the adjusted net profit during the first three months of 2023 was primarily caused by the factors described above, affecting the adjusted EBITDA, higher amortisation resulting from increase in the generating capacity, higher revenues from interest on deposits and growth of financial costs resulting from increase in the level of debt and higher interest rates.

The presented values are estimates and may change. The final consolidated results will be presented in detail in the consolidated quarterly report of the Polenergia Capital Group for the first quarter of 2023, the publication of which was scheduled for 24 May 2023.

Legal basis: Art. 17(1) of Regulation of the European Parliament and Council (EU) No. 596/2014 on market abuse and repealing Directive 2003/6/EC of the European Parliament and Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC (Journal of Laws of the European Union of 2014, No. 173, p. 1 as amended).