INFORMATION ON CHANGE IN THE ESTIMATED LEVEL OF INVESTMENT EXPENSES REQUIRED FOR THE PERFORMANCE OF OFFSHORE WIND FARM PROJECTS

The Management Board of the company operating under the business name Polenergia S.A. (“Issuer”) in reference to current report No. 17/2021 of 16 April 2021 and current report No. 39/2021 of 13 October 2021, hereby reports that on 26 June 2023 the Issuer, as the shareholder of project companies MFW Bałtyk II Sp. z o.o. and MFW Bałtyk III Sp. z o.o. (jointly “Project Companies”), holding a 50% share in each of the Project Companies, together with Equinor Wind Power AS, a shareholder with the remaining 50% of shares in the Project Companies, adopted resolutions of shareholders of the Project Companies on updated budgets for projects MFW Bałtyk II and MFW Bałtyk III (jointly “Projects”) and development plans for the Projects for the period from commencement of construction work (jointly “Budget”) encompassing, in particular, estimated investment expenditure required for preparation of the Projects for the commencement of construction work (“Devex”) and schedules for this stage of Project implementation.

The Devex level foreseen in the Budget currently amounts to PLN 950 million, while this amount also includes the funds already expended (approx. PLN 415 million) in the period from receipt of the decision on support awarded to the Projects until the date of publication of this report.

Pursuant to the approved Budget, the planned date of commencement of construction work is the first quarter of 2025, while the completion and commissioning of the Project is scheduled for 2028.

The Issuer notes that the Devex determined in the Budget, along with the planned dates of performance of the above-listed stages of Project development, are estimates which may be changed in the future. The potential updates to the Budget will require adoption of relevant resolutions of the shareholders of Project Companies.

The resolutions of shareholders of Project Companies which are the object of this report, as well as the adopted and updated Budget, refer exclusively to Devex. Further investment expenses, encompassing the stage of construction (capital expenditure – “Capex”) will be the object of separate decisions of the shareholders of the Project Companies. However, the Issuer reports that performance of the Projects in line with the schedule resulting from the updated Budget will also make the Project Companies liable for incurring some of the Capex apart from Devex, in the period before the commencement of construction work, which will ultimately be included in the budget of the construction stage. According to current estimates, these expenses may approximate PLN 2.8-3.2 billion with respect to the entire budget of the construction stage estimated within the range of PLN 21-24 billion. The Issuer makes a reservation that the information is not binding and may change; the Issuer shall report on about any changes before the formal determination of the construction stage budget.

Pursuant to the adopted information policy, the Issuer does not publish forecasts, including estimated expenses on the implemented projects, unless new confidential information has been identified within the meaning of Regulation of the European Parliament and Council (EU) No. 596/2014  on market abuse and repealing Directive 2003/6/EC of the European Parliament and Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC (EU Official Journal L of 2014, No. 173, p. 1 as amended, the “MAR”). Any further information pertaining to the Project budgets will be published exclusively in case when any new confidential information has been identified.

Legal basis: Art. 17(1) of the MAR.