ORLEN Group Strategy to 2035 with new dividend policyRegulatoryannouncement no 1/2025 dated 9 January 2025ORLEN S.A. (the"Company") announces the ORLEN Group strategy till 2035 (the "Strategy")_#8216;The Energy of Tomorrow Starts Today'. Successful implementation of thestrategic initiatives will allow the ORLEN Group to transform itselftowards an integrated, diversified and cycle-resilient organization.ORLEN Group's ambition is to ensure a stable growth rate of operatingprofit and regular payment of increasing dividends._#8216;The Energyof Tomorrow Starts Today' Strategy is built on two foundations:?Asset decarbonization and energy transition understood as running asustainable business and building a sustainable portfolio of assets;?Corporate governance supporting integrated, coherent, and digitalorganization, leading to a unified organizational structure of the ORLENGroup.Implementation of the _#8216;The Energy of Tomorrow StartsToday' Strategy is based on four pillars:? Valuemaximization - investments in assets with the highest return potential,financing the energy transition;? Innovative and sustainable productportfolio - development of new products and business lines driving theenergy transition in the region, along with investments in low-carboninnovations.? Asset optimization - optimization of the assetportfolio to ensure its strategic alignment and positive financialperformance.? Capital stewardship - disciplined approach to managingcapital expenditures and fostering business partnerships to mitigateinvestment risks.ORLEN's strategic ambition is to:?Ensure stable growth rate of EBITDA LIFO operating profit of PLN 53billion to PLN 58 billion in 2035. The cumulative EBITDA LIFO operatingprofit for the years 2025-2035 will range from PLN 500 billion to PLN550 billion;? Regularly share profits with shareholders throughdividends. Progressive dividend policy is aimed at annual increase inthe guaranteed dividend of PLN 0.15 per share. The level of theguaranteed dividend in 2025 will be increased from PLN 4.30 to PLN 4.50per share. The Management Board may recommend the payment of a higherdividend of up to 25% of the operating cash flow for the year, lessfinancing costs.The ORLEN Group adopted capital allocationcriteria including hurdle rates for investment projects differentiatedby business line and their impact on carbon emissions. Over the2025-2035 Strategy horizon, the ORLEN Group plans capital expendituresrelated to:? activities in regulated businesses (electricity and gasdistribution networks) - over PLN 60 billion? maintenance ofoperational assets - from PLN 77 billion to PLN 88 billion?development - from PLN 132 billion to PLN 143 billion?potential equity investments (M_amp;A and partnerships) - up to PLN 85billion.Cumulative capital expenditures, including equityinvestments, in the years 2025-2035 may range from PLN 350 billion PLNto PLN 380 billion, of which between PLN 270 billion and PLN 290 billionis of a flexible nature allowing Company to actively manage investmentbudget.By 2030, the Company plans to maintain a net debt/EBITDAratio at a level not exceeding 2.0, assuming the fulfillment ofmacroeconomic assumptions, budget projections, and total planned capitalexpenditures. After 2030, following the execution of plannedinvestments, the Company expects positive cash flows and a gradualreduction of the net debt/EBITDA ratio to a level not exceeding 0.5 by2035.Basedon key market trends, the Company has set out the main transformationdirections that will be implemented under the new organizational andoperational structure.Segment Key trend anddirection ofdevelopment Key operational objectives by 2035Upstream _amp; SupplyExplorationfor and production of hydrocarbons, wholesale trade of crude oil andnatural gas The key role of natural gas as a transition fuel.Ensuringthe supply of energy carriers that enable the long-term development ofthe economy and energy security. - an increase in natural gas productionfrom 9.1 to 12 bcm per year,- maintaining a flexible LNG contractportfolio and increasing contracting from 4.8 to 15 bcm of LNG per year,-building capacity for capture, transport and storage services up to 4million tonnes of CO2 per year.DownstreamRefinery andpetrochemical production, wholesale of refining and petrochemicalproducts Decarbonization of transport combined with continued demand forliquid fuels.Transforming the ORLEN Group's fuel mix towards agreater share of renewable energy in transport. - an increase in theshare of renewable energy in ORLEN's fuel mix from 8.5%, to over 25%,-the use of renewable and low-carbon hydrogen in refinery production ofapproximately 210,000 tonnes per year,- a 9 p.p. increase in theshare of sales of petrochemicals based on circular and renewablefeedstocks to 10%, and polymers and other derivatives by 7 p.p. to 70%,-increasing recycling capacity from 35,000 to 250,000 tonnes per year.EnergyGenerationof electricity and heat, distribution of electricity and natural gas,electricity trading Demand for zero-carbon energy sources.Supportthe decarbonization of the energy sector through investment in RES,energy storage, SMR and CCGT. - an increase in installed RES capacityfrom 1.3 to 12.8 GW through the development of wind power andphotovoltaics, including partnerships- development of up to 1.4 GWof installed energy storage capacity (BESS),- expansion of theinstalled capacity of gas-fired power plants and combined heat and powerplants (CCGTs) from 1.8 to 4.3 GW,- the commercialization anddeployment of Small Modular Reactor (SMR) technology with an installedcapacity of 0.6 GW,- allocating more than PLN 20 billion for gasdistribution networks and PLN 40 billion for electricity distributionnetworks.Consumers _amp; ProductsRetail sales of fuel,electricity and natural gas, other retail customer services Orientationtowards the customer who needs accessible and affordable energy.Integrationand digitization of consumer services. - an increase in the share of thedomestic market for electricity supplied to electric cars by 22 p.p., to33%,- expansion of the national network of ultrafast DC chargingpoints by 5,800 points,- doubling the number of active users of theVITAY system to 10 million users.In pursuing the objectives of_#8216;The Energy of Tomorrow Starts Today', the Company will take a pragmaticapproach to asset decarbonization and energy transformation of the ORLENGroup.By 2035, relative to the 2019 base year, ORLEN aims to:?reduce carbon emissions in absolute terms by 25% in the Upstream _amp;Supply and Downstream segments in Scopes 1 and 2, to the level of 12.5million tonnes of CO2e,? reduce the carbon intensity of the Energysegment by 55%, to the level of 170 kg of CO2e/MWh,? reduce thecarbon intensity (NCI) by 15%, to the level of 67 g of CO2e/MJ.Inaddition, coal-fired electricity generation is planned to be phased outby the end of 2030, with a full transition away from coal-fired assetsby 2035. As a result, the Company maintains the target of achievingcarbon neutrality in 2050 for scopes 1, 2, 3 in accordance with theParis Agreement.The Strategy has been approved by the Company'sManagement Board on 8 January 2025. The decision has been identified asan inside information, publication of which has been delayed by themoment the decision of the Company's Supervisory Board is made, inaccordance to Art. 17 item 4 of the Regulation (EU) No 596/2014 of theEuropean Parliament and of the Council of 16 April 2014 on market abuse(market abuse regulation) and repealing Directive 2003/6/EC of theEuropean Parliament and of the Council and Commission Directives2003/124/EC, 2003/125/EC and 2004/72/EC.