PGE Polska Grupa Energetyczna S A : Investor presentation - FY 2021 results

Q4 & FY 2021 Financial and Operating Results

INVESTOR PRESENTATION March 22, 2022

Financials

Key financial data

Consolidated

[IFRS, PLN m]	Q4 2021	Q4 2020	y/y	2021	2020	y/y
Sales	19 880	12 670	57%	52 730	45 766	15%
including LTC compensations1	-63	-10	530%	-58	31	-
EBITDA	2 171	1 615	34%	9 535	5 966	60%
Recurring EBITDA	1 969	1 493	32%	8 129	6 184	31%
EBIT	993	668	49%	5 123	1 408	264%
Recurring EBIT2	875	436	101%	3 933	2 574	53%
Net profit (loss) to equity	721	525	37%	3 972	110	3 511%
Net profit (to equity) - ex. Impairments2	789	433	82%	4 147	934	344%
CAPEX (including adjustments)	1 593	1 727	-8%	4 662	5 495	-15%
Net cash from operating activities	-349	2 081	-	7 456	10 256	-27%
			-3%			-28%
Net cash from investing activities	-1 313	-1 355	-4 367	-6 037
EBITDA margin	11%	13%	-2 p.p.	18%	13%	5 p.p.
Recurring EBITDA margin	10%	12%	-2 p.p.	15%	14%	1 p.p.
Net Working Capital (core "NWC")3				4 790	5 368	-11%
Net Debt/LTM EBITDA reported				0,44x	1,22x	-64%
Net Debt/LTM EBITDA recurring				0,52x	1,18x	-56%

• LTC, without court verdicts,

• 2 one-off items are summarised at the next page,
  3 Core NWC = inventory + trading receivables - trading payables (distinguish from NWC stated as Current assets minus short term liabilities)

One-off and temporary items

Computation of recurring EBITDA and recurring EBIT:

	Q4 2021	Q4 2020	y/y	2021	2020	y/y
Change of reclamation provision	1 039	128	712%	1 463	-306	-
Change of actuarial provision	12	4	200%	64	-36	-
Release of the provision for Voluntary Leave Programme	0	0	-	11	-28	-
LTC adjustment	-63	-10	530%	-58	31	-
Release of provision for the risk of returning the equivalent of EUA	0	0	-	0	121	-
received by Dolna Odra power complex
Provision for Prosumers	-74	0	-	-74	0	-
Temporary items -rollover of the EUA contracts	-712	0	-	0	0	-
One-off items - EBITDA level	202	122	66%	1 406	-218	-
Impairments of TFA and IA (pre-tax)	-84	110	-	-216	-948	-77%
One-off items - EBIT level	118	232	-49%	1 190	-1 166	-

Computation of net profit ex. impairments:

Impairments of TFA and IA (after-tax) and Investments

-68

92

-

-175

-824

-79%

1 Impairment of Property, Plant and Equipment, Intangible Assets, Right-of-Use Assets

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One-off and temporary items

Conventional	District Heating	Renewables	Distribution	Supply
Generation

(PLN m)	Q4	FY	Q4	FY	Q4	FY	Q4	FY	Q4	FY
21	21	21	21	21	21	21	21	21	21
EBITDA reported	1 275	4 078	-62	805	420	1 016	732	2 779	-195	827
One-off events,
including:	388	1 465	-127	-39	2	3	9	33	-92	-78
LTC compensations	-	-	-63	-58	-	-	-	-	-	-
Change of reclamation provision	1 032	1 446	6	16	1	1	-	-	-	-
Change of actuarial provision	-3	19	1	3	1	2	9	33	3	6
Temporary items -rollover of the EUA contracts	-641	-	-71	-	-	-	-	-	-	-
Release of the provision for Voluntary Leave	-	-	-	-	-	-	-	-	-	11
Programme
Provision for Prosumers	-	-	-	-	-	-	-	-	-95	-95
EBITDA recurring	887	2 613	65	844	418	1 013	723	2 746	-103	905

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