Body of the report:             

The Management Board of Jastrzębska Spółka Węglowa S.A. [“JSW”, “Company”], with reference to Current Report No. 43/2024, hereby reports that it has completed non-current assets impairment tests in accordance with the provisions of IAS 36 Impairment of Assets.

The test results point to impairment of the following non-current assets:

- in the Coal segment, i.e., KWK Budryk, KWK Knurów-Szczygłowice, KWK Borynia-Zofiówka-Bzie Ruch Bzie, KWK Pniówek assets in the total amount of PLN 5,407.7 million,
- in the Coke segment, i.e., Radlin Coking Plant, Przyjaźń Coking Plant, Jadwiga Coking Plant, Radlin Heat and Power Plant assets in the total amount of PLN 1,407.3 million.

Recognition of the impairment loss will reduce the operating result of JSW, JSW KOKS and the Group but will not impact their liquidity position.

At the same time, the Company hereby reports that it reverses the impairment loss taken in previous years in the Coal segment, for KWK Borynia-Zofiówka-Bzie Ruch Borynia, KWK Borynia-Zofiówka-Bzie Ruch Zofiówka assets in the total amount of PLN 509.5 million, The reversal of the impairment loss will raise the operating result of JSW and the Group; however, it will not impact their liquidity position.

In addition, the Company reports that it has carried out an impairment test of the carrying amount of the financial assets i.e. the shares of JSW KOKS S.A. The results of the tests carried out by JSW point to impairment of the shares of JSW KOKS in the amount of PLN 1,204.3 million. The impairment loss will reduce JSW’s operating result but will not impact the Company’s liquidity position.

The Company reports that the values presented above are estimates and subject to change, and the final amounts will be presented in the interim condensed standalone financial statements of JSW and in the interim condensed consolidated financial statements of the JSW Group for the six-month period ended 30 June 2024, respectively.

The asset impairment test performed does not affect the Company's operations, including the payment of trade liabilities.

Legal basis: Article 17[1] of Regulation [EU] No. 596/2014 of the European Parliament and of the Council of 16 April 2014 on Market Abuse and Repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC.