Current Report No. 29/2023

Date of preparation: 29 December 2023

Subject: Execution of an annex to the agreement with Grupa Azoty Zakłady Azotowe “Puławy” S.A.

General legal basis: Article 17(1) of MAR – confidential information
    
Content:
The Management Board of LW Bogdanka S.A. with its registered office in Bogdanka (“Company”) hereby reports that on 29 December 2023 an Annex to the Multi-Year Steam Coal Sales Agreement dated 8 January 2009 was signed between the Company and Grupa Azoty Zakłady Azotowe Puławy S.A. with its registered office in Puławy.

The Multi-Year Agreement was the subject of current reports published in the period from 2009 to 2022, with the most recent information on its amendments published in Reports No.: 26/2019 dated 20 November 2019, No. 34/2020 dated 18 November 2020, 26/2021 dated 29 November 2021 and 25/2022 dated 28 November 2022.

The subject of the Agreement is the sale of steam coal to Grupa Azoty Zakłady Azotowe Puławy S.A.

In the concluded Annexes to the Multi-Year Agreement, the Parties set new dates for the performance of deferred deliveries from 2022 and 2023, which the Company reported in Current Report No. 25/2022 dated 28 November 2022. Accordingly, the Parties redefined the volumes of deliveries in 2024-2026, including the deferred deliveries mentioned in the previous sentence. In addition, the Parties agreed on the price of coal deliveries in 2024 and decided to extend the term of the Multi-Year Agreement by one year, i.e. until the end of 2028.

As a result of the conclusion of this annex, the estimated value of the Agreement from its conclusion until 31 December 2028 will total (without taking into account increases, deviations and tolerances, if any) PLN 2,848 million net (i.e. 1.3% less than the value from Report No. 25/2022 dated 28 November 2022), of which the value of the Multi-Year Agreement in 2023-2027 will be PLN 1,233 million net, i.e. 11.9% less compared to the value reported for this period in Report No. 25/2022 dated 28 November 2022, while the planned value of the Multi-Year Agreement in 2024-2028 will amount to PLN 1,199 million net, and includes an increase in the volume of deliveries by approx. 29% due to the extension of the term of the Multi-Year Agreement.

The criterion for considering the concluded Agreement as material is the increase in its value and the fact of extending cooperation with one of the Company's key customers.