TAURON Polska Energia (TPE) investor relations material

Executive summary

• Q1 2026 revenue was PLN 9,507 million, down 1% year-over-year, with EBITDA at PLN 2,091 million (down 10%) and net profit at PLN 979 million (down 13%), supported by lower interest and tax despite higher depreciation.

• CapEx increased by 7% to PLN 1,148 million–1,164 million, with significant investments in distribution, RES, and generation projects.

• Net debt/EBITDA improved to 1.4x, with available liquidity of PLN 6.3 billion and no identified risk to going concern.

• Distribution and heat segments showed resilience, while RES and supply margins were pressured by lower market prices and poor wind conditions.

• All bonds and loans repaid by end of Q1 2026; no outstanding capital market debt.

Financial highlights

• EBITDA for Q1 2026: PLN 2,091 million, down 10% year-over-year, exceeding analyst consensus by PLN 150 million.

• Revenue declined slightly, mainly due to lower energy rates and the end of PLN 300 million in compensations from 2025.

• CapEx rose 7% year-over-year, totaling PLN 1,148 million–1,164 million, with 70% allocated to distribution.

• Net debt decreased by about PLN 100 million year-over-year; net debt/EBITDA ratio at 1.4.

• 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.

• Ongoing investments in RES, battery storage, and heat decarbonization projects, with major completions planned through 2030.

• PLN 2,557 million in CHP auction support secured for 2031–2045.

• No significant changes in capital or finance management objectives or procedures are anticipated.

• The Group is preparing for IFRS 18 implementation, impacting financial statement presentation from 2027.