Body of the report:
The Management Board of Jastrzębska Spółka Węglowa S.A. [“JSW,” “Company,” “Issuer”] hereby reports that on 28 September 2026, the Company’s Supervisory Board approved the Jastrzębska Spółka Węglowa S.A. Remedy Program for 2026-2035 including Subsidiaries, with Operationalization [Remedy Program], which sets the direction for JSW’s operations, organizes objectives, translates them into specific actions and initiatives, and provides a foundation for responsible efforts to build a stable future for the Company.
The Remedy Program is a response to the challenging market environment, cost pressures and price volatility in the coking coal and coke markets. The Remedy Program was developed based on an analysis of JSW’s current internal situation as well as its external environment, and is aimed at restoring financial and operational stability, improving efficiency and creating a solid foundation for the Company’s continued operations, including in the long term.
The cornerstone of the Remedy Program is a focus on JSW’s core business – the production of coking coal, which remains the Company’s key product and a source of its strategic value – as well as the restoration of full cost and operational discipline.
The Remedy Program encompasses initiatives in a number of areas, including: Mining and Production Costs, Investments, Energy, Procurement, HR and Compensation, Sales, Non-Operating Asset Management, Finance and Coking.
The Company's activities will focus, among other things, on:
1] stabilizing production volume, including increasing the share of coking coal in total production;
2] rationalizing and controlling expenditures on investments in property, plant and equipment, expensable mining pits and longwall outfitting,
3] increasing auto-production of electricity in cogeneration plants;
4] managing procurement, logistics and warehouse inventory in a manner that ensures production continuity and minimizes costs; implementing a comprehensive assessment of the costs of utilization of materials and machinery; and establishing centralized inventory control and management to enable the reuse of new and partially used components across mines;
5] continuing to implement safety net measures from the Act on the Functioning of the Mining Industry [miners' leave and leave for employees of Coal Preparation Plants, as well as one-off cash severance payments] and optimizing the workforce structure and costs;
6] maintaining existing markets and securing new ones for coking coal and coke while ensuring optimal sales terms;
7] selling selected JSW Group properties and reducing real estate management and maintenance costs;
8] processes related to optimizing the structure of the JSW Group, including potential divestitures of selected assets;
9] securing financing in the amount of PLN 2.9 billion, renegotiating the terms of existing financing,
10] in the coking sector: increasing coke production levels, business restructuring, rationalization and control of capital expenditures, optimization of coke oven gas management and alignment of staffing levels and costs with target efficiency metrics.
Attached to this report, the JSW Management Board is releasing the key parameters of the Remedy Program to the public.
In addition, the Company’s Management Board hereby reports that, following the Supervisory Board’s approval of the Jastrzębska Spółka Węglowa S.A. Remedy Program for 2026-2035 including Subsidiaries, with operationalization, the strategic objectives set forth in the Strategy of JSW including JSW Group Subsidiaries for 2022-2030 referred to in Current Report No. 6/2022 dated 25 February 2022, have been redefined. During the period covered by the Program, its assumptions will apply. In addition, the JSW Group’s environmental goal of reducing its carbon footprint (Scopes 1 and 2) by 30% by 2030 compared to 2018 remains in place. The approach to achieving this goal and the other environmental goals will be reformulated by the end of 2027 at the latest.
