TAURON Polska Energia (TPE) investor relations material

Executive summary

• H1 2025 delivered record EBITDA of PLN 4,224 million and net profit of PLN 2,055 million, driven by strong performance in distribution and generation segments, with significant margin improvements and regulatory account settlements.

• Strategic focus on decarbonization, renewables expansion, digitalization, and workforce development, with increased female management representation and customer-centric offerings.

• Revenue for H1 2025 reached PLN 17.3 billion, with a 3% year-over-year decline, but operational results and profitability improved substantially.

• The Group is organized into Generation, Heat, Renewable Energy Sources, Distribution, Sales and Wholesale, and other activities.

Financial highlights

• EBITDA for H1 2025 was PLN 4,224 million, up 20% year-over-year, and net profit reached PLN 2,055 million, reversing last year's loss.

• Revenue was PLN 17.3 billion, slightly down year-over-year due to lower compensation payments.

• CapEx increased 23% year-over-year to PLN 2,283 million, mainly in distribution and renewables.

• Net cash from operating activities was PLN 2,947 million, down from the prior year.

Outlook and guidance

• Upgraded full-year EBITDA outlook, expecting year-over-year improvement, especially in generation and heat segments.

• Distribution tariff to rise 3.1% in 2025, with higher WACC (10.84%) and RAB (PLN 24.6bn) supporting margin growth.

• Continued investments in grid development, renewables, and digital transformation, supported by preferential loans.

• Net debt/EBITDA ratio projected to remain stable year-over-year.