Orlen (PKN) Strategy Update summary

Strategic direction

• 2030 strategy centers on renewables and advanced petrochemicals, diversifying revenue and supporting a net-zero carbon objective by 2050.

• Planned investment totals ~PLN 140bn by 2030: ~PLN 85bn for growth areas, mainly renewables and advanced petrochemicals, and PLN 55bn to improve existing asset efficiency.

• Targeted EBITDA is PLN 195bn over the next 10 years; 2030 EBITDA is projected at ~PLN 26bn, a 2.5-fold increase.

• Progressive dividend policy planned from 2021, with a dividend of at least PLN 3.5 per share.

Energy transition

• 2030 CO2 targets: 20% lower emissions from existing refining and petrochemical assets and 33% lower emissions from power generation.

• By 2030, target 2.5 GW of renewable capacity: 1.7 GW offshore wind and 0.8 GW onshore wind and solar; modern gas-fired capacity to rise from 1.1 GW to 2.0 GW.

• Up to 20% of internally used gas is targeted to come from own reserves by 2030; pilot energy storage facilities planned.

Petrochemicals and refining

• By 2030, petrochemicals are expected to generate around half of profits from crude oil processing; speciality products to grow from 16% to ~25% of the portfolio.

• Plastics recycling capacity targeted at 0.4m tonnes by 2030, alongside closed-loop technologies and biomaterials development.

• Biofuel capacity, including 2G biofuels, targeted at 2m tonnes annually; hydrogen hubs planned in Włocławek and Płock, with green hydrogen production launch steps.