PGE Polska Grupa Energetyczna S A : Presentation from the Management Board conference of March 23, 2022

Q4 & FY 2021 Financial and operating results

23 March, 2022

Wojciech Dąbrowski

President of the Management Board, CEO

PGE Polska Grupa Energetyczna

War in Ukraine and PGE Group activities

• PGE is the largest energy producer in Poland, supplying over 40% of domestic electricity.
• Special significance of the PGE Group for the energy security of Poland - the PGE Group's distribution area located in the areas near the border of Ukraine and Belarus.
• Priority to ensure an uninterrupted supply of electricity and heat.
• Appointment of Crisis Teams at the central level of the PGE Group and in key companies - constant monitoring of potential threats and risks.
• Impact of the current geopolitical situation on PGE's business activities - risk identification and minimization.
• Impact of coal prices in the foreign market and the increase in inflation on coal prices on the domestic market.
• Risk of an increase in investment costs due to growth in the prices of steel and building materials.

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Summary of 2021

• 2021 is the first full year of implementation of the new strategy.
• Solid financial results made possible by focusing effectiveness of operations and cost discipline.
• Key decisions in the area of offshore wind farms:
• • sale of shares in two projects to a Danish partner,,
  • award of contracts for difference,
  • commencement of the most important tenders,
  • selection of a financial advisor and market research.
• Signing a sectoral agreement on the development of offshore wind energy, as well as an agreement with Enea and Tauron for joint applications for new offshore permits.
• Submission of eight location applications for the construction of offshore wind farms in the Baltic Sea to the Ministry of Infrastructure - the basis for the implementation of the construction plan of at least 6.5 GW of capacity by 2040.
• Implementation of the next important stages of the Baltica Offshore Wind Farm investment - planned announcement of tender procedure for the construction of the onshore infrastructure necessary for power evacuation from offshore farms Baltica 2 and Baltica 3.
• Organizing workshops for potential contractors for Baltica Offshore Wind Farm.

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Summary of 2021

• Continued investments in renewable energy sources.
• Winning the renewable energy auctions for nearly 50 MW and commissioning of new solar farms.
• Obtaining construction permits for approx. 170 MW among which in 2023 the Jeziórko 1 and 2 photovoltaic projects with a total capacity of 100 MW will be commissioned.
• Implementation of investments in gas and steam units in Dolna Odra - diversification of supply sources, use of natural gas imported through the Baltic Pipe and the LNG terminal in Świnoujście.
• Recognition of gas as one of elements of the energy system and focus on the development of renewable energy sources.
• Decarbonization of heating assets - analysis of various options, such as electrode boilers (Gdańsk CHP) using power- to-heat technology, or the use of local gas deposits, such as in Gorzów Wielkopolski and Zielona Góra.

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