TAURON Polska Energia (TPE) investor relations material

Executive summary

• First quarter 2026 results were strong, with EBITDA reaching PLN 2.091 billion, supported by higher electricity and heat sales volumes, though net profit declined to PLN 979 million due to increased costs and the end of compensation schemes.

• Sales revenue increased to PLN 9,507 million, mainly from higher electricity and heat sales, despite lower gas sales revenue.

• EBITDA exceeded analyst consensus by PLN 150 million, with strong contributions from Distribution, Sales and Wholesale, and Generation segments.

• Net profit was supported by lower interest and tax, despite higher depreciation from increased investments.

• The Group maintained a solid liquidity position, with available guaranteed lending facilities of PLN 6,300 million and no identified risk to going concern.

Financial highlights

• EBITDA for Q1 2026: PLN 2.091 billion, 10% lower year-over-year, but above consensus.

• Sales revenue reached PLN 9,507 million, up from PLN 9,297 million year-over-year.

• CapEx increased by 7% year-over-year, totaling PLN 1,164 million, with 70% allocated to distribution and significant investment in renewables.

• Net debt/EBITDA ratio at 1.4, reflecting a strong balance sheet and well below covenant limits.

• PLN 6.3 billion in cash reserves, ensuring liquidity for 12 months of investments.

Outlook and guidance

• Achieving PLN 6.5 billion EBITDA for the year is possible but depends on profile costs, weather, and market prices.

• The Group continues to focus on investments in distribution networks and renewables, supported by preferential loans from the National Recovery and Resilience Plan.

• Stable results expected in distribution due to known tariffs and asset values; RES and heat segments depend on weather.

• Market volatility and regulatory changes are being closely monitored, with a conservative hedging strategy in place.

• The Group is preparing for the implementation of IFRS 18, which will impact financial statement presentation from 2027.