PGE Polska Grupa Energetyczna S A : Report on PGE Polska Grupa Energetyczna S.A. expenses concerning representation, legal services, marketing services, public relations and social communication services and management advisory services for 2020

Report on PGE Polska Grupa Energetyczna S.A.'s expenses concerning representation, legal services, marketing services, public relations and social communication services and management advisory services for 2020

PGE S.A.

Warsaw, March 2021

Report on PGE Polska Grupa Energetyczna S.A.'s expenses concerning representation, legal services, marketing services, public relations and social communication services and management advisory services for 2020.

Legal basis

Pursuant to § 42 point 9 of the Articles of Association of PGE Polska Grupa Energetyczna S.A. in connection with

• 18 sec. 1 point 12, the Management Board of Polska Grupa Energetyczna S.A. (PGE S.A., Company) hereby publishes the report on expenses concerning representation, legal services, marketing services, public relations and social communication services and management advisory services, and submits this report to PGE S.A.'s Supervisory Board for issue of an opinion.

This report covers the year 2020. The information is prepared in accordance with the accruals principle.

1. Marketing, public relations and social communication services

The Company spent PLN 29 398.6 thousand on marketing, public relations and social communication services in 2020. In its marketing activities, PGE S.A. incurred expenses on culture sponsoring and sports, advertising, including image campaigns in the media: TV, online, outdoor, print. PLN 21 525.2 thousand was spent on sports sponsoring and PLN 1 090.9 thousand on culture sponsoring. PGE's flagship sponsoring projects in 2020 included: PGE Narodowy, PGE Skra Bełchatów and PGE Ekstraliga. PLN 3 244.3 thousand was spent on media campaigns, with the most important image campaigns conducted by PGE S.A. in 2020 being:

• "Guarding Poland's energy security" - a campaign implemented during the first wave of Covid-19 and addressed to PGE Group's stakeholders;
• Image campaign informing PGE Group's stakeholders about the Group's new strategy #PGE2050;
• Image campaign in support of PGE's campaign "Only distance matters in life," motivating to maintain social distancing, as recommended by the Health Ministry, due to the Covid-19 pandemic.

The largest cost item in public relations was paid cooperation with the media. PGE S.A. spent PLN 1 523.0 thousand on this in 2020. This included media partnerships, publications (in print, online, radio) and cooperation with industry news sites.

In social communications, the largest cost item for CSR activities was the social campaign "Polish - I'm buying it!," which cost PLN 163.5 thousand.

Activities in the field of marketing services supported the development and retention of awareness and value of the PGE brand as well as the reach of its impact on the market. Activities in the area of public relations and social communication contributed to communicating the PGE brand's values and supported tasks related to the social responsibility of PGE Group companies.

2. Management advisory services and legal services

The Company spent PLN 6 990.9 thousand on management services, of which PLN 3 594.7 thousand was spent on legal services in connection with projects supporting PGE S.A.'s operating and development activities, analysing Polish and international legal regulations, in connection with representing the Company in court, administrative and arbitration proceedings and activities supporting the Company's corporate bodies in matters related to the management of the Company and PGE Group. The cost of advisory services, PLN 3 075.9 thousand, concerned consulting services in support of new and continued projects, transaction advisory, valuation of transactions and consolidation and delivery of business and financial analysis having an impact on decisions regarding transaction projects. Analyses of the viability and efficiency of selected areas within PGE Group were also performed.

3. Representation costs

In 2020, the Company spent PLN 86.9 thousand on representation. These expenses are related to representing the Company, building its prestige and shaping a positive impact for the PGE brand and the Company's management.

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Report on PGE Polska Grupa Energetyczna S.A.'s expenses concerning representation, legal services, marketing services, public relations and social communication services and management advisory services for 2020.

4. Summary

The following table contains a summary of expenses. The amounts in the table are in PLN thousands.

1	Marketing, public relations and social communication services	29	398.6
2	Management advisory services and legal services	6	990.9
3	Representation costs		86.9
	TOTAL	36	476.4

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Report on PGE Polska Grupa Energetyczna S.A.'s expenses concerning representation, legal services, marketing services, public relations and social communication services and management advisory services for 2020.

Report approval

This report on expenses on representation, legal services, marketing services, public relations and social communications services and management services was approved by the Management Board of PGE Polska Grupa Energetyczna S.A. on 22 March 2021.

Warsaw, 22 March 2021

Signatures of members of the Management Board of PGE Polska Grupa Energetyczna S.A.

President of the

Management Wojciech Dąbrowski

Board

Vice-President of

the Management Wanda Buk

Board

Vice-President of

the Management Paweł Cioch

Board

Vice-President of

the Management Paweł Strączyński

Board

Vice-President of

the Management Paweł Śliwa Board

Vice-President of

the Management Ryszard Wasiłek

Board

Signed with qualified electronic signature

Signed with qualified electronic signature

Signed with qualified electronic signature

Signed with qualified electronic signature

Signed with qualified electronic signature

Signed with qualified electronic signature

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