Estimated selected financial and operating data for the first half of2020 and information on the result of impairment tests

The Management Board of PGE Polska Grupa Energetyczna S.A. ("PGE")publishes initial selected consolidated financial and operating data forthe first half of 2020.

According to the initial estimates net electricity production at PGEgenerating units in the first half of 2020 amounted to approximately28.6 TWh, distribution volume arrived at 17.3 TWh and sales to finaloff-takers came out at 20.1 TWh. Heat sales volume amounted to 27.8 PJ.

Consolidated EBITDA for the first half of 2020 amounted to approximatelyPLN 2 805m, including:

EBITDA of Conventional Generation segment PLN 774m,

EBITDA of District Heating segment PLN 493m,

EBITDA of Distribution segment PLN 1 127m,

EBITDA of Supply segment PLN 187m,

EBITDA of Renewables segment PLN 301m.

CAPEX amounted to PLN 2 504m. Estimated net debt amounted toapproximately PLN 9 728m as at June 30, 2020.

Average electricity wholesale price realized by Conventional Generationsegment in the first half of 2020 amounted to PLN 288.6 per MWh.

At the same time - with regard to the current report no. 22/2020 datedJuly 16, 2020 - the Management Board of PGE discloses that major worksregarding tests for impairment of assets in accordance with the IAS 36have been completed.

Results of conducted tests indicate the impairment loss of balance sheetvalue of property, plant and equipment in Conventional Generationsegment amounting to approx. PLN 530 million.

Moreover, the tests results indicate the necessity to write off approx.PLN 482m due to the loss of value of shares held in Polska GrupaGórnicza S.A. (through a subsidiary PGE Górnictwo i EnergetykaKonwencjonalna S.A.).

Accordingly, appropriate adjustments updating value of assets will berecognized in the consolidated financial statements of PGE for the firsthalf of 2020. The above adjustments are of non-cash nature.

Total impact of impairments in the first half of 2020 on the PGE Group'snet result is approx. PLN 988m. As a consequence of impairments,consolidated net result attributable to equity holders of the parentcompany amounted to approximately PLN -688m (i.e. earnings per share ofPLN -0.37).

At the same time, as a result of tests for the loss of value of the PGEObrót S.A. shares, the necessity has been identified to recognize animpairment of approximately PLN 278m in the standalone financialstatements of PGE.

Disclaimer: Presented values are estimated and may change. Consolidatedand standalone financial statements are still in the preparation processand are reviewed by the professional auditor. Final value of theimpairments will be presented in the report for the first half of 2020,which will be published on September 15, 2020.