Current Report No. 9/2021

Information on recognition of a non-current assets impairment loss in the coal segment

Body of the report:

The Management Board of Jastrzębska Spółka Węglowa S.A.(“Company”, “JSW”) hereby reports that today it adopted a resolution on recognizing an additional non-current assets impairment loss in the coal segment in the amount of PLN 85.7 million.

In accordance with the provisions of IAS 36 Impairment of assets, an analysis of indications of impairment has been carried out, as a result of which it has been concluded that there are no new indications which would suggest the possibility of impairment of assets in the coal segment, which the Company reported in Current Report No. 25/2020.  At the same time, due to the negative recoverable amount of the cash generation unit established on 1 January 2020, i.e. the “Jastrzębie-Bzie” Coal Mine (“CGU”) and the impairment loss for the CGU asset recognized in H1 2020 and the increase of CGU’s assets as at 31 December 2020, it became necessary to recognize an additional impairment loss for the non-current assets in the coal segment.

Recognition of the above impairment loss will reduce the operating result of JSW and the JSW Group but will not impact their liquidity position. The final value of the impairment loss will be presented in the standalone and consolidated financial statements of JSW and the JSW Group, respectively, for 2020.

Please be advised that the above figure of the impairment loss is an estimate and is subject to change.

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