PGE.WAR

In May 2017 the Management Board decided to recommended to suspend dividend payment from the profit for years 2016, 2017 and 2018 facing the need to finance an ambitious development program and limitation of the debt level increase. After that period, the Management Board of the Company intended to make a recommendation to the General Meeting of the Company of dividend payment for shareholders at the level of 40-50% of the consolidated net profit attributable to the equity holders adjusted by the value of impairment loss on property, plant and equipment and intangible fixed assets. The dividend policy is subject to reservation that the amount for each individual dividend distribution will depend, in particular, on the Company’s overall indebtedness, expected capital expenditures and prospective acquisitions. In accordance with the dividend policy, the Management Board of PGE S.A. analysed the Company's debt in the context of implementing the investment program, in line with the assumptions of the PGE Group Strategy until 2030 (effective until June 2025). Planned acquisitions were also taken into account, including the acquisition of PKPE Holding sp. z o.o., completed in April 2023. Furthermore, the prolonged market instability and uncertainty resulting from, among other things, the recession caused by the COVID-19 pandemic and the war in Ukraine were also taken into account. In 2024-2025, the failure to implement the coal asset carve-out project was also a significant factor, resulting in the continued operation of the Coal Energy segment within the PGE Group. In 2025, the potential scale of payments for CO₂ emission allowances was particularly considered, which translates into limited predictability of the Group's cash flows. Taking into account the above conditions, the Management Board of PGE S.A. recommended not to pay a dividend for the years 2019 –2024. The Ordinary General Meetings in the years 2020 –2025 adopted resolutions in accordance with the recommendations of the Management Board of PGE S.A. The dividend policy is periodically verified by the Management Board of the Company. In the Strategy of the PGE CG announced in June 2025, the Company indicated the potential for dividend payments subject to meeting the following criteria: recurring net profit, a prospect of positive free cash flows for at least two years, maintenance of an investment-grade rating, and absence of one-off events materially affecting cash flow.