Interim report
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2 INTERIM CONDENSED STANDALONE FINANCIAL STATEMENTS OF JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2025 (All amounts in tables expressed in millions of PLN unless stated otherwise) TABLE OF CONTENTS STANDALONE STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME ....................................................................... 4 STANDALONE STATEMENT OF FINANCIAL POSITION ....................................................................................................................................... 5 STANDALONE STATEMENT OF FINANCIAL POSITION (CONT.) ........................................................................................................................ 6 STANDALONE STATEMENT OF CHANGES IN EQUITY ....................................................................................................................................... 7 STANDALONE STATEMENT OF CASH FLOWS .................................................................................................................................................... 8 ADDITIONAL INFORMATION ................................................................................................................................................................................... 9 NOTES TO THE INTERIM CONDENSED STANDALONE FINANCIAL STATEMENTS ......................................................................................... 9 1. GENERAL INFORMATION ................................................................................................................................................................................. 9 1.1. NAME, REGISTERED OFFICE AND LINE OF BUSINESS .........................................................................................................................9 2. ACCOUNTING POLICY .................................................................................................................................................................................... 10 2.1. BASIS OF PREPARATION OF THE INTERIM CONDENSED STANDALONE FINANCIAL STATEMENTS ...........................................10 2.2. GOING CONCERN ASSUMPTION ............................................................................................................................................................10 2.3. NEW STANDARDS, INTERPRETATIONS AND THEIR AMENDMENTS .................................................................................................12 2.4. CHANGE IN SIGNIFICANT ESTIMATES AND MATERIAL JUDGMENTS ...............................................................................................13 2.5. SEASONALITY INFORMATION ................................................................................................................................................................13 2.6. MATERIAL CHANGES IN REPORTING ITEMS, AMOUNTS WITH SIGNIFICANT IMPACT ON ASSETS, LIABILITIES, EQUITY, NET FINANCIAL RESULT OR CASH FLOWS, WHICH ARE NOT TYPICAL DUE TO THEIR TYPE, SIZE, IMPACT OR FREQUENCY ......13 3. NOTES TO THE STANDALONE STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME................................... 15 3.1. SALES REVENUES ...................................................................................................................................................................................15 3.2. COST OF PRODUCTS, MATERIALS AND GOODS SOLD ......................................................................................................................15 3.3. OTHER REVENUES ..................................................................................................................................................................................16 3.4. OTHER COSTS ..........................................................................................................................................................................................16 3.5. OTHER NET GAINS ...................................................................................................................................................................................16 3.6. FINANCIAL INCOME AND COSTS ...........................................................................................................................................................17 3.7. LOSS PER SHARE ....................................................................................................................................................................................17 4. EXPLANATORY NOTES PERTAINING TO TAX ............................................................................................................................................ 18 4.1. INCOME TAX .............................................................................................................................................................................................18 5. EXPLANATORY NOTES PERTAINING TO DEBT .......................................................................................................................................... 19 5.1. LOANS AND BORROWINGS ....................................................................................................................................................................19 5.2. LEASE LIABILITIES ...................................................................................................................................................................................22 5.3. RECONCILIATION OF DEBT ....................................................................................................................................................................22 6. NOTES TO THE STANDALONE STATEMENT OF FINANCIAL POSITION .................................................................................................. 24 6.1. PROPERTY, PLANT AND EQUIPMENT ...................................................................................................................................................24 6.2. RIGHT-OF-USE ASSETS ..........................................................................................................................................................................24 6.3. IMPAIRMENT OF NON-FINANCIAL NON-CURRENT ASSETS ...............................................................................................................25 6.4. INVESTMENTS IN SUBSIDIARIES, JOINT VENTURES AND RELATED ENTITIES ..............................................................................28 6.5. OTHER NON-CURRENT FINANCIAL ASSETS ........................................................................................................................................29 6.6. INVENTORIES ...........................................................................................................................................................................................30 6.7. TRADE AND OTHER RECEIVABLES .......................................................................................................................................................31 6.8. RECEIVABLES RELATED TO CASH TRANSFERRED UNDER PHYSICAL CASH POOLING (“PCP”) ARRANGEMENT ....................31 6.9. CASH AND CASH EQUIVALENTS ............................................................................................................................................................32 6.10. EQUITY ...................................................................................................................................................................................................33 6.10.1. SHARE CAPITAL ......................................................................................................................................................................... 33 6.10.2. CAPITAL ON REVALUATION OF FINANCIAL INSTRUMENTS ................................................................................................. 33 6.10.3. DIVIDENDS PAID AND PROPOSED ........................................................................................................................................... 33 6.11. EMPLOYEE BENEFIT LIABILITIES .......................................................................................................................................................34 6.12. PROVISIONS ..........................................................................................................................................................................................34 6.13. TRADE AND OTHER LIABILITIES .........................................................................................................................................................36 7. NOTES TO THE STANDALONE STATEMENT OF CASH FLOWS................................................................................................................ 37 7.1. CASH FROM OPERATING ACTIVITIES ...................................................................................................................................................37 8. NOTES TO THE FINANCIAL INSTRUMENTS ................................................................................................................................................ 39
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3 INTERIM CONDENSED STANDALONE FINANCIAL STATEMENTS OF JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2025 (All amounts in tables expressed in millions of PLN unless stated otherwise) 8.1. CATEGORIES AND CLASSES OF FINANCIAL INSTRUMENTS .............................................................................................................39 8.2. FAIR VALUE HIERARCHY ........................................................................................................................................................................40 8.3. FINANCIAL RISK MANAGEMENT .............................................................................................................................................................41 8.3.1. FINANCIAL RISKS ....................................................................................................................................................................... 41 8.3.2. CAPITAL RISK MANAGEMENT................................................................................................................................................... 46 9. OTHER EXPLANATORY NOTES .................................................................................................................................................................... 48 9.1. CONTINGENT ITEMS ................................................................................................................................................................................48 9.2. FUTURE CONTRACTUAL LIABILITIES ....................................................................................................................................................48 9.3. RELATED PARTY TRANSACTIONS .........................................................................................................................................................48 9.4. EVENTS AFTER THE END OF THE REPORTING PERIOD ....................................................................................................................48 10. MANAGEMENT BOARD'S REPRESENTATIONS AND APPROVAL OF THE INTERIM CONDENSED STANDALONE FINANCIAL STATEMENTS .................................................................................................................................................................................................. 49
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4 Notes to the interim condensed standalone financial statements form an integral part hereof. INTERIM CONDENSED STANDALONE FINANCIAL STATEMENTS OF JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2025 (All amounts in tables expressed in millions of PLN unless stated otherwise) STANDALONE STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME Note For the 3-month period ended 30 June 2025 For the 6-month period ended 30 June 2025 For the 3-month period ended 30 June 2024 For the 6-month period ended 30 June 2024 Sales revenues 3.1 2,760.7 5,662.0 3,473.7 7,899.6 Cost of products, materials and goods sold 3.2 (3,239.9) (6,722.9) (3,857.5) (7,826.0) GROSS PROFIT/(LOSS) ON SALES (479.2) (1,060.9) (383.8) 73.6 Selling and distribution expenses 3.2 (91.2) (178.8) (109.5) (237.8) Administrative expenses 3.2 (214.4) (426.9) (232.9) (442.0) Impairment of non-financial non-current assets 6.3 9.7 (640.5) (4,894.1) (4,927.9) Impairment of shares in subsidiaries - - (1,204.2) (1,204.2) Other revenues 3.3 94.5 117.1 21.2 35.5 Other costs 3.4 (18.3) (34.1) (10.9) (21.9) Other net gains 3.5 44.5 119.9 78.7 221.6 OPERATING LOSS (654.4) (2,104.2) (6,735.5) (6,503.1) Financial income 3.6 6.2 14.3 16.3 38.1 Financial costs 3.6 (67.3) (140.6) (64.7) (126.9) LOSS BEFORE TAXATION (715.5) (2,230.5) (6,783.9) (6,591.9) Income tax 4.1 147.1 432.5 1,286.6 1,242.0 NET LOSS (568.4) (1,798.0) (5,497.3) (5,349.9) Other comprehensive income to be reclassified to profit or loss: Movement in hedging instruments 5.0 42.9 0.6 1.0 Income tax 4.1 (1.0) (8.2) (0.1) (0.2) Other comprehensive income not to be reclassified to profit or loss: Actuarial gains/(losses) (22.0) (22.0) 28.3 28.3 Income tax 4.1 4.2 4.2 (5.4) (5.4) TOTAL OTHER COMPREHENSIVE INCOME (13.8) 16.9 23.4 23.7 TOTAL COMPREHENSIVE INCOME (582.2) (1,781.1) (5,473.9) (5,326.2) Basic and diluted loss per share (in PLN per share) 3.7 (4.84) (15.31) (46.83) (45.57)
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5 Notes to the interim condensed standalone financial statements form an integral part hereof. INTERIM CONDENSED STANDALONE FINANCIAL STATEMENTS OF JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2025 (All amounts in tables expressed in millions of PLN unless stated otherwise) STANDALONE STATEMENT OF FINANCIAL POSITION Note 30 June 2025 31 December 2024 ASSETS NON-CURRENT ASSETS Property, plant and equipment 6.1 7,622.7 7,220.8 Intangible assets 9.5 11.1 Right-of-use assets 6.2 423.2 437.2 Investment property 17.6 17.5 Investments in subsidiaries, co-subsidiaries and associates 6.4 1,065.3 1,065.3 Deferred tax assets 2,010.6 1,487.4 Other non-current financial assets 6.5 1,618.6 3,893.6 TOTAL NON-CURRENT ASSETS 12,767.5 14,132.9 CURRENT ASSETS Inventories 6.6 661.9 646.9 Trade and other receivables 6.7 1,629.7 2,025.6 Receivables under the physical cash pooling arrangement 6.8 292.0 - Income tax overpaid - 8.6 Financial derivatives 43.8 12.0 Cash and cash equivalents 6.9 629.4 1,095.1 TOTAL CURRENT ASSETS 3,256.8 3,788.2 TOTAL ASSETS 16,024.3 17,921.1
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6 Notes to the interim condensed standalone financial statements form an integral part hereof. INTERIM CONDENSED STANDALONE FINANCIAL STATEMENTS OF JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2025 (All amounts in tables expressed in millions of PLN unless stated otherwise) STANDALONE STATEMENT OF FINANCIAL POSITION (CONT.) Note 30 June 2025 31 December 2024 EQUITY Share capital 6.10.1 1,251.9 1,251.9 Share premium account 905.0 905.0 Capital on revaluation of financial instruments 6.10.2 35.9 1.2 Retained earnings 5,024.9 6,840.7 TOTAL EQUITY 7,217.7 8,998.8 LIABILITIES NON-CURRENT LIABILITIES Loans and borrowings 5.1 1,231.1 1,273.5 Employee benefit liabilities 6.11 596.2 558.0 Provisions 6.12 1,411.1 1,356.9 Lease liabilities 5.2 534.2 547.9 Trade and other liabilities 6.13 98.0 98.5 TOTAL NON-CURRENT LIABILITIES 3,870.6 3,834.8 CURRENT LIABILITIES Loans and borrowings 5.1 156.3 114.5 Financial derivatives - 19.1 Current income tax liabilities 99.1 - Employee benefit liabilities 6.11 271.0 241.2 Provisions 6.12 230.8 225.9 Lease liabilities 5.2 285.4 277.2 Trade and other liabilities 6.13 3,893.4 4,209.6 TOTAL CURRENT LIABILITIES 4,936.0 5,087.5 TOTAL LIABILITIES 8,806.6 8,922.3 TOTAL EQUITY AND LIABILITIES 16,024.3 17,921.1
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7 Notes to the interim condensed standalone financial statements form an integral part hereof. INTERIM CONDENSED STANDALONE FINANCIAL STATEMENTS OF JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2025 (All amounts in tables expressed in millions of PLN unless stated otherwise) STANDALONE STATEMENT OF CHANGES IN EQUITY Share capital Share premium account Capital on revaluation of financial instruments Retained earnings Total equity AS AT 1 JANUARY 2025 1,251.9 905.0 1.2 6,840.7 8,998.8 Total comprehensive income: - - 34.7 (1,815.8) (1,781.1) - net loss - - - (1,798.0) (1,798.0) - other comprehensive income - - 34.7 (17.8) 16.9 AS AT 30 JUNE 2025 1,251.9 905.0 35.9 5,024.9 7,217.7 AS AT 1 JANUARY 2024 1,251.9 905.0 7.5 13,107.9 15,272.3 Total comprehensive income: - - 0.8 (5,327.0) (5,326.2) - net loss - - - (5,349.9) (5,349.9) - other comprehensive income - - 0.8 22.9 23.7 AS AT 30 JUNE 2024 1,251.9 905.0 8.3 7,780.9 9,946.1
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8 Notes to the interim condensed standalone financial statements form an integral part hereof. INTERIM CONDENSED STANDALONE FINANCIAL STATEMENTS OF JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2025 (All amounts in tables expressed in millions of PLN unless stated otherwise) STANDALONE STATEMENT OF CASH FLOWS Note For the 6-month period ended 30 June 2025 For the 6-month period ended 30 June 2024 CASH FLOWS FROM OPERATING ACTIVITIES Cash from operating activities 7.1 (1,343.6) 763.9 Interest paid (14.4) (11.4) Income tax (paid)/refunds received 13.0 (77.2) NET CASH FLOWS FROM OPERATING ACTIVITIES (1,345.0) 675.3 CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of property, plant and equipment (1,687.3) (1,967.0) including: interest and commissions paid, recognized as capitalized borrowing costs 5.3 (19.5) (12.7) Acquisition of intangible assets (1.7) (0.9) Acquisition of financial assets (0.1) (26.3) Proceeds from redemption of investment certificates 6.5 2,670.1 - Net cash flows under the physical cash pooling arrangement (52.5) - Interest received 22.5 33.5 NET CASH FLOWS FROM INVESTING ACTIVITIES 951.0 (1,960.7) CASH FLOWS FROM FINANCING ACTIVITIES Loans and borrowings received 5.1, 5.3 64.4 832.9 Repayment of loans and borrowings 5.1, 5.3 (45.8) (197.1) Lease payments 5.3 (93.6) (120.4) Interest and commissions paid in financing activity (71.9) (41.7) NET CASH FLOWS FROM FINANCING ACTIVITIES (146.9) 473.7 NET CHANGE IN CASH AND CASH EQUIVALENTS (540.9) (811.7) Cash and cash equivalents at the beginning of the period 603.2 1,636.9 Exchange differences on translation of cash and cash equivalents (0.4) 0.2 CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD 6.9 61.9 825.4
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9 Notes to the interim condensed standalone financial statements form an integral part hereof. INTERIM CONDENSED STANDALONE FINANCIAL STATEMENTS OF JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2025 (All amounts in tables expressed in millions of PLN unless stated otherwise) ADDITIONAL INFORMATION NOTES TO THE INTERIM CONDENSED STANDALONE FINANCIAL STATEMENTS 1. GENERAL INFORMATION 1.1. NAME, REGISTERED OFFICE AND LINE OF BUSINESS These financial statements are the interim condensed standalone financial statements of Jastrzębska Spółka Węglowa S.A. Jastrzębska Spółka Węglowa S.A. (“Company”, “JSW”) was established on 1 April 1993. The Company is the Parent Company in the JSW Group (“Group”) consisting of JSW S.A. and its subsidiaries located in Poland. The Group has drawn up its interim condensed consolidated financial statements for the 6 months ended 30 June 2025. KEY INFORMATION ABOUT THE COMPANY NAME Jastrzębska Spółka Węglowa S.A. REGISTERED OFFICE Aleja Jana Pawła II 4, 44-330 Jastrzębie-Zdrój, Poland KRS 0000072093 - District Court in Gliwice, Poland, 10th Commercial Division of the National Court Register REGON 271747631 NIP 633,000 51 10 LINE OF BUSINESS Mining, enrichment and sale of hard coal and sale of coke and hydrocarbons According to the Articles of Association, the Company may operate in the territory of the Republic of Poland and abroad. The Company’s duration is unspecified. The Company’s shares have been traded publicly since 6 July 2011. According to the Warsaw Stock Exchange’s classification, JSW has been placed in the mining category (WIG Mining Index). Jastrzębska Spółka Węglowa S.A. is the largest producer of hard coking coal. For years, it has held the key position on the Polish and European market for coking coal, due to the high quality coking coal it produces and due to its location in proximity to its main customers. The Company also mines steam coal. JSW is also central for selling all coal derivative products, i.e. coke and hydrocarbons produced by coke plants owned by the Group. As at 30 June 2025 and 31 December 2024, the Company’s majority shareholder was the State Treasury. In the 6-month period ended 30 June 2025 and in 2024, the State Treasury was the direct top-level controlling entity.
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10 Notes to the interim condensed standalone financial statements form an integral part hereof. INTERIM CONDENSED STANDALONE FINANCIAL STATEMENTS OF JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2025 (All amounts in tables expressed in millions of PLN unless stated otherwise) 2. ACCOUNTING POLICY 2.1. BASIS OF PREPARATION OF THE INTERIM CONDENSED STANDALONE FINANCIAL STATEMENTS These interim condensed standalone financial statements of Jastrzębska Spółka Węglowa S.A. have been drawn up in compliance with International Accounting Standard (“IAS”) 34 Interim Financial Reporting. These interim condensed standalone financial statements are a fair presentation of JSW’s financial standing and its assets as at 30 June 2025, its operating results and cash flows for the 6-month period ended 30 June 2025. The interim condensed standalone financial statements do not include all the information and disclosures required for annual financial statements and they should be read jointly with the Company’s standalone financial statements prepared in accordance with IFRS for the financial year ended 31 December 2024 prepared in accordance with all International Financial Reporting Standards (“IFRSs”) as adopted by the European Union (“EU”). The accounting policies used to draw up these interim condensed standalone financial statements are consistent with those applied to draw up the Standalone Financial Statements of Jastrzębska Spółka Węglowa S.A. for the financial year ended 31 December 2024. These interim condensed standalone financial statements have been drawn up in accordance with the historical cost principle, except for financial derivatives, investment certificates and energy efficiency certificates (white certificates) that are measured at fair value. The functional currency of the Company and the presentation currency of these statements is the Polish zloty (“PLN”). These interim condensed standalone financial statements have been prepared in millions of PLN and all figures, unless indicated otherwise, are expressed in millions of Polish zloty. The interim condensed standalone financial statements for the 6-month period ended 30 June 2025 have been reviewed by a statutory auditor, PricewaterhouseCoopers Polska Sp. z o.o. Audyt Sp.k. These interim condensed financial statements form part of the consolidated report which also includes the Interim Condensed Consolidated Financial Statements of the JSW Group for the 6-month period ended 30 June 2025 and the Management Board Report on the Activity of the Jastrzębska Spółka Węglowa S.A. Group for the 6-month period ended 30 June 2025. 2.2. GOING CONCERN ASSUMPTION These interim condensed standalone financial statements have been prepared based on the assumption that the Company would continue as a going concern in an unchanged form and scope for at least 12 months of the final date of the reporting period. When assessing the Company’s ability to continue as a going concern, the JSW Management Board analyses the occurrence of uncertainties relating to events or circumstances that may cast doubt on the Group’s ability to continue as a going concern. Such events include primarily prolonged adverse market factors directly affecting JSW’s financial position. The Company’s financial and operating performance in H1 2025 was primarily affected by unfavorable and highly volatile global macroeconomic conditions. The market conditions were reflected directly in the prices obtained by JSW, which is discussed in detail of Section 6 of the Management Board Report on the activity of the Jastrzębska Spółka Węglowa S.A. Group for the 6-month period ended 30 June 2025. As a result of the decline in sales revenues, driven by low prices and unfavorable market conditions, the Company experienced a significant reduction in cash balances. JSW’s balance sheet as at 30 June 2025 indicates that its current assets are lower than its current liabilities. The Company had faced such a situation for a short period in previous years and had already taken measures to protect itself and prevent temporary liquidity problems, by establishing the Closed-End Stabilization Fund (“FIZ”). In the 6-month period ended 30 June 2025, the Company received proceeds from redemption of FIZ investment certificates in the total amount of PLN 2,670.1 million. In parallel to the redemption of FIZ investment certificates, the Company is implementing a number of initiatives aimed at reducing the negative impact of the decline in sales revenues and improving current liquidity. Financial Model As at 30 June 2025, the going concern assumption for a period of at least 12 months is based on the financial projections included in the JSW Group’s Financial Model, which was delivered to the financing institutions on 30 June 2025 (the “Financial Model”). The key business assumptions adopted in the Financial Model assume the Group’s operations will be carried out on the basis of the consistent implementation of initiatives under the Strategic Transformation Plan of Jastrzębska Spółka Węglowa S.A., including its subsidiaries (the “STP”), aimed at increasing efficiency and aligning the cost base to reduced revenue levels (the STP is presented in detail in Section 5.3. of the Management Board Report on the activity of the Jastrzębska Spółka Węglowa S.A. Group for the 6-month period ended 30 June 2025). The price paths used in the Financial Model are based on forecasts of external rating agencies.
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11 Notes to the interim condensed standalone financial statements form an integral part hereof. INTERIM CONDENSED STANDALONE FINANCIAL STATEMENTS OF JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2025 (All amounts in tables expressed in millions of PLN unless stated otherwise) Although the implementation of the STP is expected to deliver long-term benefits, until the related cash flow effects are achieved, the JSW Management Board is taking the following measures to maintain liquidity, the implementation of which has been included in the Financial Model: 1) reducing capital expenditures (mainly at JSW), provided such reductions do not reduce the production capacity potential in the medium term, 2) increasing efforts to gradually increase output, 3) reducing operating costs by about PLN 900 million between 2025 and 2027, through gradual insourcing of functions currently performed by third-party contractors and by enforcing a strict procurement policy, 4) reducing employment levels at JSW and within the Group through natural attrition and efficiency improvements. Additionally, the Financial Model assumes that, within the next 12 months, the following key feasible liquidity-supporting measures will be implemented, the execution of which depends on decisions of third parties, such as: 1) applying for a refund of the windfall tax - on 11 April 2025, JSW submitted an application to the Ministry of Climate and Environment to declare and refund the windfall tax. The contribution was paid by JSW Company pursuant to the Act of 27 October 2022 on extraordinary measures aimed to limit the electricity prices and to support certain customers in 2023. JSW requested a refund of PLN 1.6. billion. The Company’s Management Board has legal opinions, which confirm the legitimacy of a claim for a refund. The request is reviewed by the Ministry of Energy. At the same time, an inter-ministerial team has been appointed to develop alternative mechanisms and legal forms for refunding the windfall tax over the next 12 months. As at the date of approval of this statement for publication, no binding decisions had been made. 2) deferral of payment of liabilities to ZUS - the Company has applied for a deferral of the terms of payment of liabilities to ZUS. Due to internal procedures and decision-making practices of the Social Security Institution, the Company decided to apply for deferral of payment of: approx. PLN 306.0 million on account of the contributions for: May, June and July 2025. On 4 June 2025, the Company received a notice notification from the Social Insurance Institution that the application for deferral of payment of social security, health insurance, FP, FGŚP and FEP contributions has been granted, The Company plans to make the repayments in the months of June, July and August 2026; approx. PLN 330.0 million on account of ZUS contributions for August, September and October 2025. As at the date of approval of this statement for publication, the Company had not received any information from ZUS regarding the final decision on the application. The Company plans to make the repayments in the months of September, October, November 2026. The Company intends to apply for a deferral of subsequent ZUS contributions; 3) conclusion of salary agreements with social partners – subject to the positive outcome of talks with the social partners in order to enter into a memorandum of agreement. The estimated impact on the reduction of the salary fund during the next 12 months is about PLN 1.4 billion. If these measures are not implemented, liquidity will be lost in March 2026 and the negative cash impact of a failure to implement these measures within the next 12 months was estimated at about PLN 3.6 billion. Review of the Financial Model - IBR Report At the same time, the Management Board of JSW wishes to inform you that the Financial Model, which constituted the basis for preparing the note on the going-concern assumption was verified in the Independent Business Review (“IBR”) process in connection with the failure to meet the financial covenants under the Financing Agreement, calculated as at 30 June 2025. The lenders granted a conditional waiver of these covenants, on the condition that the Company, among other things, submits an IBR Report prepared by an external entity (independent consultant) verifying the updated Financial Model. Because of the projected failure to meet financial covenants in the coming quarters, the Company also conducts intensive talks with the financing banks regarding the extension of the term of the conditions precedent for further quarters of 2025 and the possible renegotiation of the existing agreement. The submitted IBR Report presents a scenario in which the following risks materialize: in terms of production projections, linked to one-off events affecting production volumes and sales volumes, in terms of lower coal prices on international markets and weaker exchange rates of the Polish zloty against USD and EUR. The IBR Report assumes the implementation of several optimization measures related to costs and capital expenditures that are within powers of the JSW Management Board, and a number of measures that require the cooperation of third parties. These measures should be undertaken without delay. It is a catalog of measures to improve liquidity and efficiency, which would enable long-term liquidity and financial stabilization. They include in particular: a refund of the windfall tax, conclusion of memorandums of agreement with the social partners, consent to the deferral of ZUS contributions. The presented measures were taken into account in the bas Financial Model, which forms the basis for the going concern assumption. In addition, the IBR Report takes into account the rescheduling of loan repayments and the disposal of non-operating assets. The Company’s Management Board considers the likelihood of carrying out these measures to be reasonable. According to the IBR Report, liquidity in the JSW Group is projected to be maintained until September 2026 in the scenario that accounts for the risks related to production volumes and price and currency risks, provided that the measures dependent on third parties are implemented, which should allow the Company to implement a long-term
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12 Notes to the interim condensed standalone financial statements form an integral part hereof. INTERIM CONDENSED STANDALONE FINANCIAL STATEMENTS OF JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2025 (All amounts in tables expressed in millions of PLN unless stated otherwise) liquidity improvement plan. The negative cash impact of a failure to implement these measures within the next 12 months was estimated at about PLN 3.8 billion. Taking into account the risks related to mining, as well as prices and exchange rates, and assuming that the liquidity measures outlined above, which are dependent on third parties including the State Treasury, social partners, ZUS and financial institutions, are not implemented, the Company would not be able to maintain liquidity within 12 months from the date of this report. Accordingly, it should be noted that there is significant uncertainty regarding the implementation of these measures, which may cast substantial doubt on the Company’s ability to continue as a going concern. As a result, the Company may be unable to realize the expected economic benefits from its assets and to discharge its liabilities in the normal course of business. 2.3. NEW STANDARDS, INTERPRETATIONS AND THEIR AMENDMENTS a) Application of amendments to standards The following amendments to the standard not applicable to the Company’s activity came into force as of 1 January 2025: amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates regarding the lack of exchangeability. b) Amendments to standards already published and endorsed in the EU, but not yet effective When approving these interim condensed standalone financial statements, the Company has not elected the early application of the following amendments to standards that have been published and endorsed in the EU but have not yet become effective. JSW will apply the amendment to the extent applicable to its operations from or after the date they come into effect: Standard Effective date * Amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures – Classification and Measurement of Financial Instruments 1 January 2026 Amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures – Contracts Referencing Nature-dependent Electricity 1 January 2026 Annual Improvements to IFRSs – amendments to IFRS 1 First-time adoption of International Financial Reporting Standards, IFRS 7 Financial Instruments: Disclosures, IFRS 9 Financial Instruments, IFRS 10 Consolidated Financial Statements and IAS 7 Statement of Cash Flows 1 January 2026 * Annual periods beginning on or after the specified date. Amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures – Classification and Measurement of Financial Instruments, due to the financing agreement concluded by JSW for Sustainability-Linked Loan financing, may affect the required disclosures in the standalone financial statements, but the Company has not completed a detailed analysis as at the date of approval of these interim condensed standalone financial statements. Amendments to standards (annual improvements to IFRS), amendments to IFRS 9 and IFRS 7 regarding contracts referencing nature-dependent electricity, do not apply to the Company’s operations or will not exert a material impact on the standalone financial statements. c) Standards and amendments to standards adopted by IASB but not yet endorsed in the EU IFRS as approved by the EU do not currently differ materially from the regulations adopted by the International Accounting Standards Board (IASB), with the exception of the following amendments to standards, which as at the date of these interim condensed standalone financial statements have not yet been adopted for application. Standard Effective date * Amendments to IFRS 10 Consolidated Financial Statements and IAS 28 Investments in Associates – sale or contributions of assets between an investor and its associates or joint ventures Endorsement of this amendment has been deferred by the EU. IFRS 18 Presentation and Disclosure in Financial Statements 1 January 2027 IFRS 19 Subsidiaries without Public Accountability: Disclosures 1 January 2027 Amendments to IFRS 19 Subsidiaries without Public Accountability: Disclosures 1 January 2027 * Annual periods beginning on or after the respective date, as specified by the IASB, are subject to change after their approval by the EU.
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13 Notes to the interim condensed standalone financial statements form an integral part hereof. INTERIM CONDENSED STANDALONE FINANCIAL STATEMENTS OF JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2025 (All amounts in tables expressed in millions of PLN unless stated otherwise) IFRS 18 Presentation and Disclosures in Financial Statements mainly relates to: the presentation of the statement of profit or loss (classification of revenues and expenses into operating, investing, financing, income tax and discontinued operations categories), disclosures of performance measures as defined by the Company and issues related to the aggregation and disaggregation of information contained in the financial statements. IFRS 18 will affect the standalone financial statements, however the Company has not completed a detailed analysis as at the moment of approval of these interim condensed standalone financial statements. IFRS 19 Subsidiaries without Public Accountability: Disclosures and amendments to IFRS 19 will not affect the standalone financial statements, because the Company does not meet the criteria of a company without public accountability. 2.4. CHANGE IN SIGNIFICANT ESTIMATES AND MATERIAL JUDGMENTS Preparation of the interim condensed standalone financial statements in accordance with IAS 34 Interim Financial Reporting requires the use of some significant accounting estimates. It also requires the JSW Management Board to exercise its judgment in the application of the accounting principles adopted by the Company. The assumptions and estimates result from past experiences and other factors, including anticipated future events that seem reasonable in the current situation. Accounting estimates and judgments are subject to regular review. During the 6 months ended 30 June 2025, material changes were made to estimates that affected the current period or will affect future periods. These changes are described further in these interim condensed standalone financial statements and mainly relate to estimates related to the performed impairment test of non-current assets (details in Note 6.3.), the remeasurement of: employee benefit liabilities, the provision for mine closure costs and provision for mining damage and provisions for environmental protection. The Company updates its estimates considering all circumstances of which it is aware. The Company analyzes the market situation and if necessary it will revise its estimates in subsequent reporting periods. 2.5. SEASONALITY INFORMATION The Company’s business activity is not of a seasonal nature, therefore the presented results are not subject to major fluctuations during the year. 2.6. MATERIAL CHANGES IN REPORTING ITEMS, AMOUNTS WITH SIGNIFICANT IMPACT ON ASSETS, LIABILITIES, EQUITY, NET FINANCIAL RESULT OR CASH FLOWS, WHICH ARE NOT TYPICAL DUE TO THEIR TYPE, SIZE, IMPACT OR FREQUENCY Any material changes in reporting items that occurred after the end of the most recent annual reporting period, i.e. 2024, are presented in the main parts of these interim condensed standalone financial statements supplemented by additional information in the individual notes. Description of changes in material reporting items and factors affecting the financial results achieved in the reporting period is presented in Section 7 of the Management Board Report on the activity of the Jastrzębska Spółka Węglowa S.A. Group for the 6-month period ended 30 June 2025. IMPACT OF THE ARMED CONFLICT IN UKRAINE ON THE COMPANY’S ACTIVITIES A detailed description of the impact of the armed conflict in Ukraine on the Company’s activities is provided in Note 9.5. of the Standalone financial statements of Jastrzębska Spółka Węglowa S.A. for the financial year ended 31 December 2024. JSW monitors the economic situation on an ongoing basis to assess its potential negative impact on the Company and take measures to mitigate this impact. INCIDENTS IN JSW MINES On 22 January 2025, a methane ignition occurred in the Szczygłowice Section of the Knurów-Szczygłowice Mine and the endangered area had to be sealed off using stoppings. As a result of this incident, on 29 January 2025 the JSW Management Board adopted a resolution on the occurrence of force majeure in JSW and the notification of the Company’s business partners of its occurrence and the ensuing consequences for the obligations affected by the operation of force majeure. The Company anticipates the loss of production volume in 2025 to be approximately 800 thousand tons. In H1 2025, the Company incurred costs related mainly to rescue operations and removal of the consequences of this incident in the Szczygłowice Section of the Knurów-Szczygłowice Mine in the total amount of PLN 20.3 million. In connection with the event, the Company identified indications of impairment of the assets of the CGU - Knurów-Szczygłowice - for details see Note 6.3. This decision is related to the events that occurred on 7 May 2025 in the Budryk mine, where an endogenous fire occurred, as a result of which it was necessary to temporarily seal off the endangered area covering the decommissioned longwall B-3 and the mined longwall B-4, seam 402. As a result of this incident, on 16 May 2025 the JSW Management Board adopted a resolution declaring a force majeure event in JSW and notified the Company’s business partners of its occurrence and the consequences with respect to the obligations affected by the force majeure event. The Company anticipates the loss of production volume in 2025 to be approximately 345 thousand tons. In H1 2025, the
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14 Notes to the interim condensed standalone financial statements form an integral part hereof. INTERIM CONDENSED STANDALONE FINANCIAL STATEMENTS OF JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2025 (All amounts in tables expressed in millions of PLN unless stated otherwise) Company incurred costs related mainly to removal of the consequences of this incident in the Budryk Mine in the total amount of PLN 6.7 million. Due to the short-term nature of the incident and the fact that the Company plans to use property, plant and equipment installed in the sealed-in area of longwall B-4, seam 402, JSW has determined that this event does not constitute an indication of impairment. In addition, in H1 2025, the JSW continued to feel the effects of the events that took place in JSW’s mines in 2024 and 2023: KWK Budryk - on 5 April 2024, an endogenous fire occurred at the test roadway of seam 405/1. As a result of the above event at KWK Budryk, JSW incurred costs of PLN 10.9 million in H1 2025, KWK Pniówek - on 6 December 2023, a fire occurred in the area of the mined longwall N-10, seam 404/4+405/1. As a result of the above event at KWK Pniówek, JSW incurred costs of PLN 4.7 million in H1 2025.
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15 Notes to the interim condensed standalone financial statements form an integral part hereof. INTERIM CONDENSED STANDALONE FINANCIAL STATEMENTS OF JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2025 (All amounts in tables expressed in millions of PLN unless stated otherwise) 3. NOTES TO THE STANDALONE STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME 3.1. SALES REVENUES For the period of 3 months ended 30 June 2025 For the period of 6 months ended 30 June 2025 For the period of 3 months ended 30 June 2024 For the period of 6 months ended 30 June 2024 Sales of coal 1,848.5 3,820.6 2,282.5 5,214.3 Sales of coke 765.9 1,546.9 1,047.5 2,399.9 Sales of hydrocarbons 81.3 162.9 98.2 196.5 Other business 51.3 109.9 41.5 81.8 Adjustment of sales revenues on account of realization of hedging transactions * 13.7 21.7 4.0 7.1 TOTAL SALES REVENUES 2,760.7 5,662.0 3,473.7 7,899.6 * In the 6-month period ended 30 June 2025, the adjustment applies to revenues on sales of coke in the amount of PLN 11.8 million and revenues on sales of coal in the amount of PLN 9.9 million. On the other hand, in the 6-month period ended 30 June 2024, the adjustment of PLN 8.6 million was applied to revenues on sales of coke, and PLN (1.5) million to revenues on sales of coal. Revenues from export sales in the period from 1 January 2025 to 30 June 2025 amounted to PLN 2,268.8 million, which is 40.2% of total sales revenues without the revenue adjustment on the realization of hedging transactions (they were PLN 3,414.6 million, i.e. 43.3%, in the period from 1 January 2024 to 30 June 2024). 3.2. COST OF PRODUCTS, MATERIALS AND GOODS SOLD For the period of 3 months ended 30 June 2025 For the period of 6 months ended 30 June 2025 For the period of 3 months ended 30 June 2024 For the period of 6 months ended 30 June 2024 Depreciation and amortization 344.7 648.1 480.8 918.0 Consumption of materials and energy, of which: 633.9 1,306.9 694.4 1,389.7 - consumption of materials 429.7 874.3 459.7 897.5 - consumption of energy 204.2 432.6 234.7 492.2 External services 798.0 1,533.1 766.0 1,509.2 Employee benefits 1,419.8 2,806.3 1,600.0 2,986.5 Taxes and charges 48.9 95.1 43.5 87.1 Other costs by nature 19.2 42.0 21.4 42.3 TOTAL COSTS BY NATURE 3,264.5 6,431.5 3,606.1 6,932.8 Selling and distribution expenses (91.2) (178.8) (109.5) (237.8) Administrative expenses (214.4) (426.9) (232.9) (442.0) Cost of performances and property, plant and equipment produced for own use (including expensable mining pits and outfitting of longwalls) (375.7) (740.7) (425.3) (870.6) Change in products (160.1) (24.1) (110.9) (63.3) Cost of materials and goods sold 816.8 1,661.9 1,130.0 2,506.9 – including: cost of coke and hydrocarbons sold 804.9 1,627.3 1,082.2 2,449.3 COST OF PRODUCTS, MATERIALS AND GOODS SOLD 3,239.9 6,722.9 3,857.5 7,826.0
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16 Notes to the interim condensed standalone financial statements form an integral part hereof. INTERIM CONDENSED STANDALONE FINANCIAL STATEMENTS OF JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2025 (All amounts in tables expressed in millions of PLN unless stated otherwise) 3.3. OTHER REVENUES For the period of 3 months ended 30 June 2025 For the period of 6 months ended 30 June 2025 For the period of 3 months ended 30 June 2024 For the period of 6 months ended 30 June 2024 Dividends 66.1 66.1 3.5 3.5 Interest 6.2 12.5 6.3 12.1 Revenues from awarded energy efficiency certificates (white certificates) - 11.1 - 0.1 Indemnity and penalties received 10.3 10.9 4.5 5.7 Subsidies (written off according to their amortization) 7.6 8.2 0.3 0.6 Fee for sureties extended 1.3 2.7 1.5 3.1 Reversal of impairment loss on receivables and other financial assets 0.8 2.0 0.3 2.1 Disclosure of goods - - 2.2 3.3 Other 2.2 3.6 2.6 5.0 TOTAL OTHER REVENUES 94.5 117.1 21.2 35.5 3.4. OTHER COSTS For the period of 3 months ended 30 June 2025 For the period of 6 months ended 30 June 2025 For the period of 3 months ended 30 June 2024 For the period of 6 months ended 30 June 2024 Interest 5.7 15.1 5.5 11.9 - hypothetical interest on liabilities calculated pursuant to Article 5 of the Polish Act on preventing excess delays in commercial transactions, as amended 4.2 9.1 5.5 11.3 Prolongation fee 6.9 6.9 - - Recognition of provisions for litigation 0.7 3.6 0.5 2.0 Management of non-productive assets 1.1 2.2 1.1 2.1 Recognition of an impairment loss for receivables 0.8 1.3 1.9 2.2 Enforcement fees and penalties 0.6 1.0 0.9 1.6 Donations 0.1 0.1 0.1 0.2 Other 2.4 3.9 0.9 1.9 TOTAL OTHER COSTS 18.3 34.1 10.9 21.9 3.5. OTHER NET GAINS NoteFor the period of 3 months ended 30 June 2025 For the period of 6 months ended 30 June 2025 For the period of 3 months ended 30 June 2024 For the period of 6 months ended 30 June 2024 Loss on the disposal/liquidation of property, plant and equipment 7.1(5.0) (5.3) (1.6) (10.3) Exchange rate differences concerning operating activities 1.9 (6.6) 3.8 (2.0) Gain on financial derivatives 16.0 49.8 2.2 6.9 Gains on valuation of investment certificates 31.6 82.0 74.3 227.0 TOTAL OTHER NET GAINS 44.5 119.9 78.7 221.6
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17 Notes to the interim condensed standalone financial statements form an integral part hereof. INTERIM CONDENSED STANDALONE FINANCIAL STATEMENTS OF JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2025 (All amounts in tables expressed in millions of PLN unless stated otherwise) 3.6. FINANCIAL INCOME AND COSTS For the period of 3 months ended 30 June 2025 For the period of 6 months ended 30 June 2025 For the period of 3 months ended 30 June 2024 For the period of 6 months ended 30 June 2024 Interest income on cash and cash equivalents 6.2 14.3 12.5 33.2 FX gains and losses on cash and cash equivalents and FX forward transactions - - 3.7 4.8 Other - - 0.1 0.1 TOTAL FINANCIAL INCOME 6.2 14.3 16.3 38.1 Interest cost: (44.7) (89.6) (46.6) (89.4) - interest and fees on loans and borrowings (19.4) (39.4) (15.8) (26.5) – unwinding of the discount on account of long-term provisions (24.2) (48.4) (25.4) (50.9) – interest on physical cash pooling settlements (1.1) (1.8) (5.4) (12.0) Interest on leases (13.5) (27.2) (8.5) (17.3) Costs of sureties received (7.4) (14.8) (10.0) (20.2) FX gains and losses on Fx Forward transactions (0.3) (6.3) - - Other (1.4) (2.7) 0.4 - TOTAL FINANCIAL COSTS (67.3) (140.6) (64.7) (126.9) TOTAL NET FINANCIAL INCOME / (COSTS) (61.1) (126.3) (48.4) (88.8) 3.7. LOSS PER SHARE For the 6-month period ended 30 June 2025 30 June 2024 Net loss (1,798.0) (5,349.9) Weighted average number of common shares 117,411,596 117,411,596 BASIC LOSS PER SHARE (IN PLN PER SHARE) (15.31) (45.57) DILUTED LOSS PER SHARE (IN PLN PER SHARE) (15.31) (45.57)
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18 Notes to the interim condensed standalone financial statements form an integral part hereof. INTERIM CONDENSED STANDALONE FINANCIAL STATEMENTS OF JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2025 (All amounts in tables expressed in millions of PLN unless stated otherwise) 4. EXPLANATORY NOTES PERTAINING TO TAX 4.1. INCOME TAX Income tax captured in net result: For the 6-month period ended 30 June 2025 30 June 2024 Current tax: 94.6 0.5 – current tax liability 100.7 0.1 – adjustments posted in the current period relating to tax from the previous years (6.1) 0.4 Windfall tax - 0.4 Deferred tax (527.1) (1,242.9) TOTAL INCOME TAX CAPTURED IN NET RESULT (432.5) (1,242.0) Income tax in these interim condensed standalone financial statements is calculated at the actual effective tax rate of 19.4% (for the 6-month period ended 30 June 2024: 18.8%). Income tax captured in other comprehensive income: For the 6-month period ended 30 June 2025 30 June 2024 Deferred tax: - actuarial gains/(losses) (4.2) 5.4 - change in the value of hedging instruments 8.2 0.2 TOTAL INCOME TAX CAPTURED IN OTHER COMPREHENSIVE INCOME 4.0 5.6
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19 Notes to the interim condensed standalone financial statements form an integral part hereof. INTERIM CONDENSED STANDALONE FINANCIAL STATEMENTS OF JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2025 (All amounts in tables expressed in millions of PLN unless stated otherwise) 5. EXPLANATORY NOTES PERTAINING TO DEBT LIABILITIES RELATED TO DEBT: Note 30 June 2025 31 December 2024 Loans and borrowings 5.1 1,387.4 1,388.0 Lease liabilities 5.2 819.6 825.1 TOTAL 2,207.0 2,213.1 of which: non-current 1,765.3 1,821.4 current 441.7 391.7 5.1. LOANS AND BORROWINGS 30 June 2025 31 December 2024 NON-CURRENT: 1,231.1 1,273.5 Bank loans 881.9 904.1 Borrowings 349.2 369.4 CURRENT: 156.3 114.5 Bank loans 84.6 58.7 Borrowings 71.7 55.8 TOTAL 1,387.4 1,388.0 Major liabilities on account of loans and borrowings, converted into PLN, are presented in the table below. Loan/borrowing Date of the agreement Purpose Interest rate Repayment date Currency of loans and borrowings Balance sheet measurement as at 30 June 2025 Balance sheet measurement as at 31 December 2024 2023 CONSORTIUM FINANCING AGREEMENT, including: 1,265.7 1,254.9 REVOLVING CREDIT FACILITY B 12.04.2023 Refinancing of the term loan and term facilities A and C obtained under the 2019 Consortium Financing Agreement, to finance general corporate goals and investments and to finance selected environmental investments. floating 28.12.2027 with an option of renewal for 2 more years, i.e. until 28 Dec 2029 PLN 430.4 430.4 TERM LOAN A floating 28.12.2030 quarterly from June 2023 PLN 80.0 85.6 TERM LOAN B floating 28.12.2030 quarterly from June 2025 PLN 143.0 149.5 TERM FACILITY A floating 28.12.2030 quarterly from June 2023 USD 113.0 139.9 TERM FACILITY B floating 28.12.2030 quarterly from June 2025 EUR 250.2 263.4 ENVIRONMENTAL FACILITY floating 28.12.2030 quarterly from March 2026 PLN 172.9 129.1 ENVIRONMENTAL LOAN A floating 28.12.2030 quarterly from March 2026 PLN 38.1 28.5
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20 Notes to the interim condensed standalone financial statements form an integral part hereof. INTERIM CONDENSED STANDALONE FINANCIAL STATEMENTS OF JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2025 (All amounts in tables expressed in millions of PLN unless stated otherwise) Loan/borrowing Date of the agreement Purpose Interest rate Repayment date Currency of loans and borrowings Balance sheet measurement as at 30 June 2025 Balance sheet measurement as at 31 December 2024 ENVIRONMENTAL LOAN B floating 28.12.2030 quarterly from March 2026 PLN 38.1 28.5 OTHER FINANCING ARRANGEMENTS: 121.7 133.1 LOAN FROM NFOŚiGW 20.07.2021 Financing of the project named “Reclamation of land between the Szotkówka river and the Pochwacie spoil heap in Połomia - Stage II” floating 20.12.2030 quarterly from March 2029 PLN 4.1 4.0 LOAN FROM NFOŚiGW 08.11.2021 Financing of the project named “Commercial Methane Utilization – Knurów Section” floating 20.12.2030 quarterly from March 2022 PLN 36.7 40.0 LOAN FROM NFOŚiGW 04.10.2023 Financing of the project named “Commercial Methane Utilization - KWK Budryk” floating 30.09.2030 November 2023, then quarterly from December 2023 PLN 61.0 67.0 LOAN FROM WFOŚiGW 14.03.2024 Financing of the project named “Purchase of 8 battery-powered shunting locomotives with a transport set at KWK Budryk” floating 15.12.2028 quarterly from December 2024 PLN 7.8 8.9 LOAN FROM WFOŚiGW 15.04.2024 Financing of the project named “Purchase of overhead battery-powered locomotives for KWK Pniówek” floating 31.05.2030 quarterly from August 2024 PLN 8.3 9.2 LOAN FROM WFOŚiGW 15.04.2024 Financing of the project named “Purchase and delivery of 3 brand new mining track battery-powered locomotives for KWK Budryk” floating 31.08.2030 quarterly from November 2024 PLN 3.8 4.0 TOTAL 1,387.4 1,388.0 Detailed information on the loans and borrowings contracted by JSW before 1 January 2025 and on the collateral of loans and borrowings is presented in Note 5.1. of the Standalone financial statements of Jastrzębska Spółka Węglowa S.A. for the financial year ended 31 December 2024. Other than those described below, in the 6-month period ended 30 June 2025 and after the end of the reporting period, there were no material changes in the existing loan and borrowing agreements and their collateral: 1) Under the Consortium Financing Agreement of 12 April 2023, tranches of the environmental loan in the total amount of PLN 44.6 million, and tranches of environmental borrowings in the total amount of PLN 19.8 million were drawn down. 2) On 20 March 2025, on the Company’s request, the Consortium waived the rights that were available to financial institutions in connection with the failure to meet the covenants: that the total share of EBITDA of the Sureties and the Company in the Group’s total EBITDA must be no less than 85% in the calculation periods ended on 31 December 2024 and 31 March 2025, that the Net Financial Debt/EBITDA ratio was not greater than 3.3x as at 31 March 2025. As at 31 March 2025, the covenant to maintain the Net Financial Debt/EBITDA ratio at 3.3x or less was not met. As at 31 December 2024, the covenant to ensure a certain level of percentage EBITDA of the Sureties and JSW as a percentage of total Group EBITDA was not met. 3) On 30 June 2025, the Consortium, on a conditional basis, waived the rights that were available to financial institutions in connection with the failure to meet the covenants: that the total share of EBITDA of the Sureties and JSW in the Group’s total EBITDA was no less than 85% in the calculation period ended on 30 June 2025, that the Net Financial Debt/EBITDA ratio was not greater than 3.3x as at 30 June 2025.
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21 Notes to the interim condensed standalone financial statements form an integral part hereof. INTERIM CONDENSED STANDALONE FINANCIAL STATEMENTS OF JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2025 (All amounts in tables expressed in millions of PLN unless stated otherwise) The conditions mentioned above include: suspending the ability to draw down the environmental loan and borrowings until the JSW Group’s financial model is accepted by the Consortium, entering into an agreement with a third party until 31 July 2025 in order to prepare a report on the review of the above financial model, and providing it by 15 September 2025 (failure to keep the above deadlines will not constitute an Event of Default), keeping the net value of FIZ assets at no less than PLN 750.0 million until the end of September 2025. As at the date of approving these interim condensed standalone financial statements, the condition pertaining to the conclusion of an agreement with an external entity to draw up a report on a review of the financial model and delivery to the Consortium of a report prepared by that entity as part of the Independent Business Review process, and the net asset value of FIZ will be maintained at no less than PLN 750.0 million until the end of September 2025. The covenant under the Financing Agreement requiring the Net Financial Debt/EBITDA ratio to remain at no more than 3.3x will not be met as at 30 June 2025. At the same time, a calculation done as at the date of approval of these interim condensed standalone financial statements indicates that the covenant to ensure that the total share of EBITDA of the Sureties and JSW in the Group’s total EBITDA was no less than 85% in the calculation period ended on 30 June 2025 will be met. 4) The Financing Agreement also obligates JSW to satisfy the indicators defined as Sustainability-Related Targets measured by Performance Indicators (relating to the reduction of greenhouse gas emissions, methane capture and management). In 2024, the targets for the greenhouse gas emission reduction rate and methane management were not met, resulting in a 6 basis point increase in the credit margin in 2025. At the same time, the agreement required JSW to allocate funds to support the activity of a non-profit organization selected at its discretion carrying out tasks in the field of climate protection, sustainable development, environmental education or social responsibility. 5) On 28 April 2025, JSW signed a loan agreement of up to PLN 17.8 million with the Voivodeship Fund for Environmental Protection and Water Management in Katowice (“WFOŚiGW”). The purpose of the loan is to co-finance the project named “Supply of battery-powered equipment intended for underground suspended and rail transport for JSW S.A. Knurów-Szczygłowice Mine.” The loan will bear interest at a floating interest rate. According to the terms of the agreement, the final loan repayment is due in December 2030. As at the date of approval of this report, the loan has not been drawn down. 6) On 28 April 2025, JSW signed a loan agreement with WFOŚiGW up to the amount of PLN 7.2 million. The purpose of the loan is to co-finance the project named “Purchase and delivery of 6 brand new battery-powered suspended locomotives together with 6 contactor-based switch disconnectors in the Budryk Mine” The loan will bear interest at a floating interest rate. According to the terms of the agreement, the final loan repayment is due in December 2030. As at the date of approval of this report, the loan has not been drawn down. After the end of the reporting period, i.e. in September 2025, collateral of the loan was established in the form of assignment of receivables from the term deposit accounts in the total amount of PLN 7.4 million. The Company carried out the following loans and borrowings transactions: Loan/borrowing For the 6-month period ended 30 June 2025 For the 6-month period ended 30 June 2024 Drawdown Repayment (of principal) Drawdown Repayment (of principal) PFR LOAN AGREEMENTS, including: - - - (177.0) - LIQUIDITY LOAN - - - (163.2) - PREFERENTIAL LOAN - - - (13.8) 2023 CONSORTIUM FINANCING AGREEMENT, including: 64.4 (34.4) 809.3 (15.4) - TERM LOAN A - (5.7) 38.1 (4.0) - TERM LOAN B - (6.5) - - - TERM FACILITY A - (10.8) - (11.4) - TERM FACILITY B - (11.4) 267.6 - - REVOLVING CREDIT FACILITY - - 430.0 - - ENVIRONMENTAL FACILITY 44.6 - 51.0 - - ENVIRONMENTAL LOAN A 9.9 - 11.3 - - ENVIRONMENTAL LOAN B 9.9 - 11.3 - OTHER AGREEMENTS: - (11.4) 23.6 (4.7)
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22 Notes to the interim condensed standalone financial statements form an integral part hereof. INTERIM CONDENSED STANDALONE FINANCIAL STATEMENTS OF JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2025 (All amounts in tables expressed in millions of PLN unless stated otherwise) Loan/borrowing For the 6-month period ended 30 June 2025 For the 6-month period ended 30 June 2024 Drawdown Repayment (of principal) Drawdown Repayment (of principal) - LOAN FROM NFOŚiGW of 8 November 2021 - (3.3) - (1.7) - LOAN FROM NFOŚiGW of 4 October 2023 - (6.0) - (3.0) - LOAN FROM WFOŚiGW of 14 March 2024 - (1.1) 9.5 - - LOAN FROM WFOŚiGW of 15 April 2024 - (0.8) 10.0 - - LOAN FROM WFOŚiGW of 15 April 2024 - (0.2) 4.1 - TOTAL CASH FLOWS 64.4 (45.8) 832.9 (197.1) 5.2. LEASE LIABILITIES Lease liabilities captured in the standalone statement of financial position: 30 June 2025 31 December 2024 Lease liabilities 819.6 825.1 TOTAL 819.6 825.1 of which: non-current 534.2 547.9 current 285.4 277.2 Lease liabilities are expressed in PLN. In its measurement of lease liabilities, the Company includes variable lease payments associated with reference interest rates. 5.3. RECONCILIATION OF DEBT The table below depicts the change in debt as at 30 June 2025: Loans and borrowings Lease liabilities TOTAL AS AT 1 JANUARY 2025 1,388.0 825.12,213.1 Proceeds from drawing down debt - financing received 64.4 -64.4 New lease agreements signed - 104.6104.6 Modification of lease agreements - (11.1)(11.1) Accrued interest and fees 52.0 33.085.0 Debt-related payments: (98.1) (131.9)(230.0) - repayment of debt (principal) (45.8) (93.6)(139.4) - paid interest and fees (38.6) (32.5)(71.1) - interest and commissions paid, recognized as capitalized borrowing costs (13.7) (5.8)(19.5) FX gains and losses (18.1) -(18.1) Other additions/(reductions) (0.8) (0.1)(0.9) AS AT 30 JUNE 2025 1,387.4 819.62,207.0 The table below depicts the movement in debt as at 31 December 2024: Loans and borrowings Lease liabilities TOTAL AS AT 1 JANUARY 2024 843.7 547.6 1,391.3 Proceeds from drawing down debt - financing received 951.5 - 951.5
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23 Notes to the interim condensed standalone financial statements form an integral part hereof. INTERIM CONDENSED STANDALONE FINANCIAL STATEMENTS OF JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2025 (All amounts in tables expressed in millions of PLN unless stated otherwise) Loans and borrowings Lease liabilities TOTAL New lease agreements signed - 177.8 177.8 Modification of lease agreements - 325.9 325.9 Accrued interest and fees 86.3 56.1 142.4 Debt-related payments: (490.7) (282.2) (772.9) - repayment of debt (principal) (405.8) (241.9) (647.7) - paid interest and fees (64.8) (29.2) (94.0) - interest and commissions paid, recognized as capitalized borrowing costs (20.1) (11.1) (31.2) FX gains and losses 3.1 - 3.1 Other additions/(reductions) (5.9) (0.1) (6.0) AS AT 31 DECEMBER 2024 1,388.0 825.1 2,213.1
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24 Notes to the interim condensed standalone financial statements form an integral part hereof. INTERIM CONDENSED STANDALONE FINANCIAL STATEMENTS OF JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2025 (All amounts in tables expressed in millions of PLN unless stated otherwise) 6. NOTES TO THE STANDALONE STATEMENT OF FINANCIAL POSITION 6.1. PROPERTY, PLANT AND EQUIPMENT 30 June 2025 31 December 2024 Land 41.6 42.9 Buildings and structures 2,536.2 2,463.8 Expensable mining pits 1,235.1 1,197.3 Outfitting of longwalls 288.6 273.0 Technical equipment and machinery 1,850.2 1,567.4 Other property, plant and equipment 104.3 96.2 Commenced investments 1,566.7 1,580.2 TOTAL PROPERTY, PLANT AND EQUIPMENT 7,622.7 7,220.8 Note For the period of 6 months ended 30 June 2025 For the period of 12 months ended 31 December 2024 For the period of 6 months ended 30 June 2024 Initial (gross) value at the beginning of the period 19,952.2 19,353.9 19,353.9 Accumulated depreciation at the beginning of the period * (12,731.4) (9,334.6) (9,334.6) Net carrying amount at the beginning of the period 7,220.8 10,019.3 10,019.3 Update of the provision for mine closure costs 6.12 41.9 (128.0) (101.6) Addition 1,602.4 3,337.6 1,689.4 Reduction (61.8) (25.9) (13.4) Depreciation and amortization (577.8) (1,329.2) (796.4) Impairment loss - recognition 6.3 (610.9) (5,157.0) (5,106.9) Impairment loss - reversal 6.3 8.1 504.0 502.5 NET CARRYING AMOUNT AT THE END OF THE PERIOD 7,622.7 7,220.8 6,192.9 * This item includes accumulated depreciation and impairment losses for property, plant and equipment. 6.2. RIGHT-OF-USE ASSETS 30 June 2025 31 December 2024 Land 5.5 3.4 Buildings and structures 70.9 84.4 Technical equipment and machinery 291.1 284.6 Other property, plant and equipment 1.9 2.3 Perpetual usufruct right to land 53.8 62.5 TOTAL RIGHT-OF-USE ASSETS 423.2 437.2
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25 Notes to the interim condensed standalone financial statements form an integral part hereof. INTERIM CONDENSED STANDALONE FINANCIAL STATEMENTS OF JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2025 (All amounts in tables expressed in millions of PLN unless stated otherwise) Note For the period of 6 months ended 30 June 2025 For the period of 12 months ended 31 December 2024 For the period of 6 months ended 30 June 2024 Initial (gross) value at the beginning of the period 1,147.3 1,040.8 1,040.8 Accumulated depreciation at the beginning of the period * (710.1) (590.8) (590.8) Net carrying amount at the beginning of the period 437.2 450.0 450.0 Addition 93.5 504.7 430.3 Reduction (0.1) (2.4) - Depreciation and amortization (69.9) (196.8) (120.9) Impairment loss - recognition 6.3 (49.0) (334.1) (330.2) Impairment loss - reversal 6.3 11.5 15.8 14.0 NET CARRYING AMOUNT AT THE END OF THE PERIOD 423.2 437.2 443.2 * This item includes accumulated amortization and impairment losses of the right-of-use assets. The cost of leases for low-value contracts recognized in the standalone statement of profit or loss and other comprehensive income for the 6-month period ended 30 June 2025 is PLN 3.9 million, while the cost of short-term leases is PLN 0.4 million (for the 6-month period ended 30 June 2024, the cost of leases for low-value contracts was PLN 3.8 million, while the cost of short-term leases was PLN 0.9 million). 6.3. IMPAIRMENT OF NON-FINANCIAL NON-CURRENT ASSETS IMPAIRMENT LOSSES Pursuant to IAS 36 Impairment of Assets, the Company from time to time reviews the internal and external indications of impairment of its assets. The analysis of such indications is based on a number of significant assumptions, some of which are beyond the Company’s control. Significant changes in these assumptions affect the results of impairment tests and, as a consequence, may lead to significant changes in the Company’s financial standing and financial performance. In H1 2025, the Company analyzed the indications of possible impairment of the carrying amount of assets, in order to verify whether any impairment of assets may have occurred, as well as indications that could point that the impairment loss allowance recognized in previous years had ceased to exist or had decreased. During the analysis carried out as at 31 March 2025, a key incident was identified which could have materially contributed to the change in the value of assets. As a result, JSW carried out an impairment test for the Knurów-Szczygłowice CGU as at that date. For the remaining CGUs, the Company has not found no new indications that might affect the value of assets were identified; also the indications identified in the past years, which resulted in the recognition of impairment allowances, had not ceased. Accordingly, the Company did not conduct any new impairment tests for the remaining CGUs as at 31 March 2025. On the other hand, following an analysis as at the end of the reporting period, e.g. 30 June 2025, no new indications of impairment of non-current assets were found as compared to those identified in previous period; and also no indications of the possibility of reversing the impairment losses recognized in the past years. Accordingly, the Company did not conduct any new impairment tests for the CGU as at 30 June 2025. The table below depicts movements in impairment losses for non-current assets: 30 June 2025 31 December 2024 Property, plant and equipment Intangible assets Right-of-use assets Investment propertyTOTAL Property, plant and equipment Intangible assets Right-of-use assetsInvestment propertyTOTAL OPENING BALANCE 8,021.5 16.4 332.4 5.0 8,375.3 3,840.5 9.5 56.1 5.0 3,911.1 Impairment loss recognized 610.9 0.2 49.0 - 660.1 5,157.0 8.1 334.1 - 5,499.2 Impairment loss reclassified * - - - - - 7.1 - (7.1) - - Impairment loss used (378.7) - (6.0) - (384.7) (224.6) - (28.4) - (253.0) Impairment loss reversed (8.1) - (11.5) - (19.6) (504.0) (0.7) (15.8) - (520.5)
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26 Notes to the interim condensed standalone financial statements form an integral part hereof. INTERIM CONDENSED STANDALONE FINANCIAL STATEMENTS OF JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2025 (All amounts in tables expressed in millions of PLN unless stated otherwise) 30 June 2025 31 December 2024 Property, plant and equipment Intangible assets Right-of-use assets Investment propertyTOTAL Property, plant and equipment Intangible assets Right-of-use assetsInvestment propertyTOTAL Impairment loss reclassified to accumulated depreciation ** (6.4) - - - (6.4) (254.5) (0.5) (6.5) - (261.5) CLOSING BALANCE 8,239.2 16.6 363.9 5.0 8,624.7 8,021.5 16.4 332.4 5.0 8,375.3 * As at 31 December 2024, this item includes the reclassification of impairment losses on right-of-use assets to impairment losses on property, plant and equipment in connection with the completion of the lease agreement and the purchase of the leased item. ** This item relates to a technical reclassification of the impairment loss allowance to accumulated depreciation – with no impact on the financial result. The recognition of impairment losses on non-financial non-current assets in the standalone statement of profit or loss and other comprehensive income is presented in the table below: For the period of 3 months ended 30 June 2025 For the period of 6 months ended 30 June 2025 For the period of 3 months ended 30 June 2024 For the period of 6 months ended 30 June 2024 Recognition of impairment loss on property, plant and equipment, intangible assets and right-of-use assets (3.7) (660.1) (5,407.7) (5,445.1) Reversal of impairment loss on property, plant and equipment, intangible assets and right-of-use assets 13.4 19.6 513.6 517.2 TOTAL IMPAIRMENT OF NON-FINANCIAL NON-CURRENT ASSETS 9.7 (640.5) (4,894.1) (4,927.9) Indications of impairment as at 31 March 2025 As a result of the analysis carried out as at 31 March 2025, the Company decided to examine the impact – on the operating model of the Knurów-Szczygłowice Mine – of the incident dated 22 January 2025 that transpired in the Szczygłowice Section of the Knurów-Szczygłowice Mine, where methane ignited and the endangered area had to be sealed off using stoppings. As a result of the incident, the Company has identified a potential loss of approximately 800 thousand tons of production volume in 2025, which will significantly affect future cash flows from the Knurów-Szczygłowice CGU and warrants an impairment test for this unit. According to the requirements of IAS 36, the recoverable amount of the CGU was set as the higher of: the value in use and fair value less costs to sell. Due to the recognition of the cost saving measures, in this impairment test the higher of the two values was the fair value less costs to sell. The value in use and the fair value of the CGU were determined using the income approach, based on an estimate of discounted cash flows, including provisions for mine closure costs, however the activities of the Strategic Transformation Plan were considered only in the calculation of fair value. The fair value was fully classified to level 3 of the fair value hierarchy (i.e. the valuation contains unobservable inputs). In order to determine the recoverable amount, the discounted future cash flows of the CGUs during the period of 2025-2034 were assumed on the basis of current long-term financial plans drawn up in accordance with the best knowledge by the management, however the assumed useful life of the CGU does extend beyond 2034 and therefore a residual value for the remaining useful life was also determined and included in the calculation. Applying a 10-year detailed projection period enables a more comprehensive and accurate consideration of significant changes, trends, and market tendencies that may materially affect the Company’s future operations. This approach allows for a better reflection of long-term economic conditions, which may not be fully visible within a shorter, standard five-year time horizon. Furthermore, it is assumed that applying a longer projection period will contribute to a more reliable and realistic estimation of the recoverable amount of the assets. Accordingly, the Company has decided to include periods beyond the five-year forecast horizon prescribed by IAS 36 in its analyses and detailed cash flow projections. This decision was based on available market forecasts that cover the entire period subject to the impairment test. The Company has access to forecast data that support the assumptions made and provide a basis for long-term assessment of market conditions and the potential for generating future cash flows
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27 Notes to the interim condensed standalone financial statements form an integral part hereof. INTERIM CONDENSED STANDALONE FINANCIAL STATEMENTS OF JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2025 (All amounts in tables expressed in millions of PLN unless stated otherwise) Assumptions made Key assumptions made for the calculations of the impairment test as at 31 March 2025: the impairment test was based on the latest economic data included in the long-term financial plans prepared for impairment testing purposes, in nominal terms and using the average weighted average cost of capital (WACC) in the projection period at 12.08%. a ten-year detailed forecast period was adopted covering the years 2025-2034, a zero growth rate was assumed for the projected cash flows after the detailed forecast period, KWK Knurów-Szczygłowice Mine, due to technological and economic links between these two sections (Knurów Section, Szczygłowice Section) was defined as a single CGU, the useful life of the Knurów-Szczygłowice Mine was determined to be until 31 December 2078, coal sales revenues were based on average coal sales prices in nominal terms, taking as a basis the benchmark price paths forecast by McCloskey on 31 March 2025, which are used by JSW for current market analysis. The McCloskey coking coal price forecasts are based on quantitative balance projections developed by McKinsey & Company. An analysis of the projected coking coal supply-demand balance indicates a growing deficit in the trading market starting in 2030. The analysis takes into account the rising demand for coking coal, primarily in the Asian market, including India, which is rapidly expanding its steel production capacity using the blast furnace method. On the supply side, the analysis includes current production capacities and new mining projects classified as certain or highly probable. The forecast supply deficit and the assumed increase in coal mining costs, shifting the 90th percentile of the cost curve, which is considered a cost support level for prices, are the main drivers of the projected acceleration in coking coal price growth after 2030. accepted capital expenditures: CAPEX of PLN 8,913.5 million over the 10-year forecast period, CAPEX of PLN 37,673.6 million in the residual period, the production assumptions (volume and structure) adopted in the financial projection were set in accordance with the best knowledge of the management and formed the basis for calculating coal sales volumes, the financial projection assumes a gradual increase in coal production volume, driven by initiatives undertaken under the Strategic Transformation Plan, and, starting from 2032, an annual production level of 5.2 million tons as a result of: the modernization of the Coal Preparation Plant at the Knurów site around the turn of 2031-2032, the possibility of extracting coal from Area A (seams 405/1 and 405/2) of the Budryk deposit through the Knurów Section, the launch of coal extraction from the Dębieńsko deposit starting in 2032, after a mining concession is obtained for this deposit (currently at the stage of applying for a prospecting and exploration license for the “Dębieńsko 1” deposit), opening of the “Szczygłowice” deposit in the shaft IV pillar area (as part of the program titled “Expansion of the resource base of the Szczygłowice Section of the Knurów-Szczygłowice Mine”), the projection assumes a freeze of the basic salary from 2025 to 2027 and accounts for natural attrition as a factor that will reduce employment to levels required to execute production tasks and ensure safe working conditions. the calculation of WACC took into account the specific risk premium of 2 percentage points, which is related in particular to: indications emerging for the long-time horizon (years 2030-2050 and especially after 2050) that changes may be introduced in the steel production technology (i.e. anticipated gradual limitation of emission technologies) and also uncertainty regarding all other elements of the estimated financial forecasts (all financial projections with such a long time horizon are burdened with a risk regarding a chance for them to materialize), in order to determine the value of the assets subject to the test, working capital and non-current liabilities and provisions linked to the Knurów-Szczygłowice CGU were taken into account, the carrying amount and the recoverable amount of the Knurów-Szczygłowice Mine CGU were adjusted for the amount of provisions for mine closure costs. consideration was given to the current regulations that make it impossible to transfer a permanently unprofitable CGU to SRK S.A, consideration was given to the impairment losses on property, plant and equipment and on intangible assets for the Knurów-Szczygłowice Mine CGU recognized by 31 March 2025. Determining the recoverable amount The calculation has determined the recoverable amount of the CGUs, which was then compared to its tested value, determining in this way the amount of the impairment loss that must be recognized in Q1 2025, which is presented in the table below: CGU (Mine) Recoverable amount Amount of impairment loss (recognized) in Q1 2025 Amount of accumulated impairment losses 31 March 2025 KWK Knurów-Szczygłowice 1,172.5 (648.0) (3,352.6) TOTAL (648.0) (3,352.6)
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28 Notes to the interim condensed standalone financial statements form an integral part hereof. INTERIM CONDENSED STANDALONE FINANCIAL STATEMENTS OF JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2025 (All amounts in tables expressed in millions of PLN unless stated otherwise) The impairment test carried out as at 31 March 2025 pointed to the need to recognize an additional impairment loss for non-current assets of the Knurów-Szczygłowice Mine in the amount of PLN 648.0 million. Bzie Section As at 30 June 2025, due to the negative NPV of the Bzie Section of the Borynia-Zofiówka-Bzie Mine arising from the calculations performed for the test as at 30 June 2024, with a simultaneous increase in the value of non-current assets of the Bzie Section of the Borynia-Zofiówka-Bzie Mine, Bzie Section in Q1 and Q2 2025, an impairment loss was recognized for the assets of the Bzie Section of KWK Borynia-Zofiówka-Bzie, in the total amount of PLN 12.1 million. Total impairment losses Overall in H1 2025, new impairment losses on non-financial non-current assets in the amount of PLN 660.1 million and a reversal of impairment losses of PLN 19.6 million were recognized in the financial result, and presented in the line item Impairment of non-financial non-current assets of the consolidated statement of profit or loss and other comprehensive income. Sensitivity analysis Results of the sensitivity analysis for the CGUs show that the recoverable amount of the tested assets is significantly affected by changes in coal prices and the weighted average cost of capital. Presented below are the estimated changes in the recoverable amount and the impairment loss (excluding the reclassification of the impairment loss to accumulated depreciation) resulting from changes in the above parameters for the entity subject to the impairment allowance on non-current assets as at 31 March 2025. Parameter – coal price: -10% -5% 5% 10% KWK Knurów-Szczygłowice Change in recoverable amount (2,557.6) (1,265.2) 1,260.3 2,520.7 Change in impairment loss 1,851.9 1,265.2 (1,260.3) (2,520.7) Parameter – discount rate: -2p.p. -1p.p. 1p.p. 2p.p. KWK Knurów-Szczygłowice Change in recoverable amount 1,253.6 564.0 (465.9) (854.1) Change in impairment loss (1,253.6) (564.0) 465.9 854.1 6.4. INVESTMENTS IN SUBSIDIARIES, JOINT VENTURES AND RELATED ENTITIES Shares in subsidiaries are presented in the table below: 30 June 2025 31 December 2024 OPENING BALANCE 1,065.3 2,269.4 Acquisition of, subscription for shares - 0.1 Recognition of impairment loss - (1,204.2) CLOSING BALANCE 1,065.3 1,065.3 of which: non-current 1,065.3 1,065.3
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29 Notes to the interim condensed standalone financial statements form an integral part hereof. INTERIM CONDENSED STANDALONE FINANCIAL STATEMENTS OF JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2025 (All amounts in tables expressed in millions of PLN unless stated otherwise) Shares held by JSW in subsidiaries: Name Registered office Net carrying amount Stake held (%) 30 June 2025 31 December 2024 30 June 2025 31 December 2024 Key Companies - JSW KOKS S.A. (“JSW KOKS”) Zabrze 148.8 148.8 96.28% 96.28% - Jastrzębskie Zakłady Remontowe Sp. z o.o. (“JZR”) Jastrzębie-Zdrój 430.7 430.7 60.40% 60.40% - Przedsiębiorstwo Budowy Szybów S.A. (“PBSz”) Tarnowskie Góry 172.0 172.0 95.81% 95.81% Other companies - 313.8 313.8 - - TOTAL 1,065.3 1,065.3 - - 6.5. OTHER NON-CURRENT FINANCIAL ASSETS Note 30 June 2025 31 December 2024 Cash and cash equivalents of the Mine Closure Fund * 8.1 453.6 442.7 gross value 453.8 442.9 impairment loss (0.2) (0.2) Investment certificates 8.1 1,116.8 3,402.6 Bank deposits ** 8.1 26.4 25.8 gross value 26.4 25.8 Other non-financial receivables 21.8 22.5 TOTAL OTHER NON-CURRENT ASSETS 1,618.6 3,893.6 * This item includes (restricted) funds accumulated to finance full or partial mine closure. ** This item includes (restricted) bank deposits securing loan agreements concluded by JSW with WFOŚiGW. The fair value of investment certificates was fully classified to level 2 of the fair value hierarchy (Note 8.2). The fair value of other non-current financial assets is not significantly different from their carrying amount. Investment certificates Investment certificates Consent of the JSW Management Board Consent of the JSW Supervisory Board Estimated redemption amount Date of receipt of cash Amount of proceeds received Series Quantity PROCEEDS FROM REDEMPTION OF INVESTMENT CERTIFICATES IN H1 2025 Series C 71,401 28 November 2024 10 December 2024 500.0 7 January 2025 503.6 * Series F 284,126 Series D 193,991 3 January 2025 7 January 2025 300.0 5 February 2025 300.7 Series F 17,776 Series C 70,589 22 January 2025 29 January 2025 200.0 26 February 2025 201.4 Series D 70,589 Series D 141,196 28 January 2025 12 February 2025 200.0 14 March 2025 201.6 Series C 70,426 19 February 2025 27 February 2025 250.0 27 March 2025 253.0 Series D 105,639 Series D 210,272 5 March 2025 13 March 2025 300.0 3 April 2025 303.1 Series D 166,278 2 April 2025 4 April 2025 400.0 6 May 2025 406.4 Series G 112,071 Series C 34,691 18 April 2025 18 April 2025 100.0 22 May 2025 101.2 Series G 34,690 Series C 68,484 12 May 2025 12 May 2025 300.0 6 June 2025 299.0
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30 Notes to the interim condensed standalone financial statements form an integral part hereof. INTERIM CONDENSED STANDALONE FINANCIAL STATEMENTS OF JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2025 (All amounts in tables expressed in millions of PLN unless stated otherwise) Investment certificates Consent of the JSW Management Board Consent of the JSW Supervisory Board Estimated redemption amount Date of receipt of cash Amount of proceeds received Series Quantity Series G 136,967 Series G 68,526 28 May 2025 28 May 2025 100.0 26 June 2025 100.1 TOTAL PROCEEDS FROM REDEMPTION OF INVESTMENT CERTIFICATES 2,670.1 PROCEEDS FROM THE REDEMPTION OF INVESTMENT CERTIFICATES AFTER THE END OF THE REPORTING PERIOD Series C 34,359 11 June 2025 11 June 2025 200.0 4 July 2025 201.3 ** Series G 103,077 Series C 34,138 7 July 2025 7 July 2025 150.0 6 August 2025 151.4 Series G 68,276 Series C 68,276 4 August 2025 5 August 2025 210.0 4 September 2025 213.3 Series G 75,103 Series C 67,227 9 September 2025 9 September 2025 400.0 after the publication date of this report Series G 22,408 Series A 33,613 23 September 2025 23 September 2025 100.0 Series C 33,613 * In connection with the consent granted by the JSW Supervisory Board on 10 December 2024, there was an inflow of funds from the redemption of Series C and Series F investment certificates in the amount of PLN 503.6 million on 7 January 2025. The investment certificates maturing as at 31 December 2024 in the amount of PLN 503.6 million were presented in the Trade and other receivables line item (Note 6.7). * In connection with the consent granted by the JSW Supervisory Board on 11 June 2025, there was an inflow of funds from the redemption of Series C and Series G investment certificates in the amount of PLN 201.3 million after the end of the reporting period, i.e. on 4 July 2025. The investment certificates maturing as at 30 June 2025 in the amount of PLN 201.3 million were presented in the Trade and other receivables line item (Note 6.7). Every consent of the JSW Management Board to the redemption of investment certificates requires consent from the JSW Supervisory Board, which is not assured. Before such formal consent of the JSW Supervisory Board is obtained, the investment certificates subject to the JSW Management Board’s consent should not be presented as current assets. The funds received from the redemption of FIZ investment certificates have been used both for the Company’s current operations and for investment activity. The funds invested in investment certificates are an important element of the “Cash Buffer”, i.e. the obligation resulting from Consortium Financing Agreement of 12 April 2023. The payable balance of the Cash Buffer is PLN 750.0 million (excluding the funds drawn down as part of the revolving credit facility B under the above-mentioned agreement). As at 30 June 2025 and 31 December 2024, in connection with revolving credit facility B, the required Cash Buffer level was PLN 1,180.0 million, while in both periods the required cash balance was maintained above the Cash Buffer level. 6.6. INVENTORIES 30 June 2025 31 December 2024 Finished products 519.3 495.2 Materials 77.1 79.1 Goods 65.5 72.6 including coke produced in the Group designated for resale 65.5 72.6 TOTAL 661.9 646.9 Inventories of finished products as at 30 June 2025 include: 1,412.5 thousand tons of coal worth PLN 519.3 million (as at 31 December 2024, inventories of finished products amounted to 1,225.4 thousand tons of coal worth PLN 495.2 million).
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31 Notes to the interim condensed standalone financial statements form an integral part hereof. INTERIM CONDENSED STANDALONE FINANCIAL STATEMENTS OF JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2025 (All amounts in tables expressed in millions of PLN unless stated otherwise) IMPAIRMENT LOSSES FOR INVENTORIES The table below presents impairment losses for inventories: 2025 2024 AS AT 1 JANUARY 425.9 73.2 Impairment loss recognized 294.4 157.4 Impairment loss used (76.5) (7.5) AS AT 30 JUNE 643.8 223.1 Impairment loss amounts for inventories are recognized as costs in the current reporting period. The recognition and utilization of impairment losses for inventories in the 6-month period ended 30 June 2025 and in the 6-month period ended 30 June 2024 refer to finished products (coal). 6.7. TRADE AND OTHER RECEIVABLES Note 30 June 2025 31 December 2024 Gross trade receivables 1,063.0 1,287.4 Impairment loss (24.0) (23.8) Net trade receivables 8.1 1,039.0 1,263.6 Receivables from redemption of investment certificates 6.5 201.3 503.6 Prepaid expenses 31.0 22.9 Prepayments - 4.2 Tax receivables 222.0 190.2 Receivables on dividends 66.1 - Other receivables 70.3 41.1 TOTAL TRADE AND OTHER RECEIVABLES 1,629.7 2,025.6 The fair value of trade and other receivables is not significantly different from their carrying amount. IMPAIRMENT LOSSES FOR TRADE RECEIVABLES The table below presents changes in impairment losses for trade receivables: 30 June 2025 30 June 2024 Allowance for trade receivables with no identified impairment Allowance for trade receivables with identified impairment TOTAL Allowance for trade receivables with no identified impairment Allowance for trade receivables with identified impairment TOTAL OPENING BALANCE 0.7 23.1 23.8 1.2 33.0 34.2 Impairment loss recognized - 1.5 1.5 - 2.3 2.3 Reversal of unused amounts (0.3) (1.2) (1.5) (0.8) (1.6) (2.4) Impairment loss transferred * - 0.2 0.2 - (7.7) (7.7) CLOSING BALANCE 0.4 23.6 24.0 0.4 26.0 26.4 * This refers to the transfer of impairment losses between trade receivables and other receivables. The changes in gross values did not materially affect the value of impairment losses. 6.8. RECEIVABLES RELATED TO CASH TRANSFERRED UNDER PHYSICAL CASH POOLING (“PCP”) ARRANGEMENT Balance of receivables under PCP:
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32 Notes to the interim condensed standalone financial statements form an integral part hereof. INTERIM CONDENSED STANDALONE FINANCIAL STATEMENTS OF JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2025 (All amounts in tables expressed in millions of PLN unless stated otherwise) 30 June 2025 31 December 2024 Receivables related to cash transferred under PCP 290.4 - gross value 290.4 - Receivables related to interest under PCP 1.6 - TOTAL RECEIVABLES RELATED TO CASH TRANSFERRED UNDER PCP 292.0 - The balance of receivables related to cash transferred under PCP to JSW KOKS, due to the fact JSW KOKS used these funds for longer than 3 months, is not classified as Cash and cash equivalents; it is presented in the standalone statement of financial position as a separate asset item, i.e. Receivables related to cash transferred under PCP. 6.9. CASH AND CASH EQUIVALENTS Note 30 June 2025 31 December 2024 Cash at bank and in hand 330.7 422.8 gross value 330.7 422.9 impairment loss - (0.1) Short-term bank deposits 298.7 432.7 Bank term deposits 298.6 432.5 gross value 298.6 432.6 impairment loss - (0.1) Interest booked on investments 0.1 0.2 Cash provided on account of Physical Cash Pooling settlements - 239.6 TOTAL CASH AND CASH EQUIVALENTS 8.1 629.4 1,095.1 including restricted cash 36.3 109.9 The value of restricted cash as at 30 June 2025 was PLN 36.3 million (as at 31 December 2024: PLN 109.9 million) and included primarily: subsidies, bid bonds, funds deposited in the VAT account (under the split-payment arrangement), and performance bonds. In the course of its business, the Company makes payments on the above accounts on an ongoing basis. Reconciliation of cash and cash equivalents in the standalone statement of cash flows: Note 30 June 2025 30 June 2024 Cash and cash equivalents in the standalone statement of financial position 629.4 1,326.9 Cash received on account of Physical Cash Pooling settlements 6.13 (567.5) (501.5) CASH AND CASH EQUIVALENTS IN THE STANDALONE STATEMENT OF CASH FLOWS 61.9 825.4 Physical Cash Pooling settlement balances (Note 6.13.), which are used mainly to manage the Group's current financial liquidity, are not classified as cash flows from investing or financing activities; they are recognized in the standalone statement of cash flows at net amounts, as Cash and cash equivalents. As at 30 June 2025, the balance of receivables related to cash transferred under PCP to JSW KOKS, due to the fact JSW KOKS used these funds for longer than 3 months, is not classified as Cash and cash equivalents; it is presented in the standalone statement of financial position as a separate asset item, i.e. Receivables related to cash transferred under PCP.
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33 Notes to the interim condensed standalone financial statements form an integral part hereof. INTERIM CONDENSED STANDALONE FINANCIAL STATEMENTS OF JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2025 (All amounts in tables expressed in millions of PLN unless stated otherwise) 6.10. EQUITY 6.10.1. SHARE CAPITAL Number of shares Common shares par value Hyperinflation adjustment Total As at 30 June 2025 117,411,596 587.0 664.9 1,251.9 As at 31 December 2024 117,411,596 587.0 664.9 1,251.9 As at 30 June 2025, the share capital of JSW was PLN 587,057,980.00 and was divided into 117,411,596 common shares with no voting preference, fully paid up, with a par value of PLN 5.00 each. As at the end date of the reporting period, all of the Company’s shares were issued and registered. The total number of votes linked to all the shares issued by JSW is 117,411,596 votes at the Shareholder Meeting of JSW. 6.10.2. CAPITAL ON REVALUATION OF FINANCIAL INSTRUMENTS Change in capital on revaluation of financial instruments 30 June 2025 31 December 2024 OPENING BALANCE 1.2 7.5 Change in valuation of hedging instruments, including: 64.5 11.2 - positive valuation driven by the change in fair value of the effective part of hedging instruments, 46.4 25.5 - negative valuation driven by the change in fair value of the effective part of hedging instruments - (11.2) - valuation driven by the change in fair value of the effective part of hedging instruments (loans) 18.1 (3.1) Change in valuation of hedging instruments posted to profit or loss of the period if the hedged item is realized (loans, FX Forward, commodity swap) (21.6) (19.0) Deferred tax (8.2) 1.5 CLOSING BALANCE 35.9 1.2 6.10.3. DIVIDENDS PAID AND PROPOSED The per share dividend ratio is calculated as the quotient of the dividend payable to the Company’s shareholders and the number of common shares outstanding as at the record date. For the 6-month period ended 30 June 2025 30 June 2024 Dividends - - Number of common shares as at the dividend record date 117,411,596 117,411,596 DIVIDEND PER SHARE (IN PLN PER SHARE) - - Coverage of loss for 2024/settlement of Other comprehensive income On 30 June 2025, JSW's Ordinary Shareholder Meeting adopted a resolution to cover the Company's net loss for the financial year ended 31 December 2024 in the amount of PLN 6,331.4 million entirely from the Company’s supplementary capital. On 30 June 2025, the Ordinary Shareholder Meeting of JSW also adopted a resolution to allocate the profit shown in Other comprehensive income for 2024, arising from the measurement of the defined benefit plans, in the amount of PLN 64.2 million to the Company's supplementary capital.
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34 Notes to the interim condensed standalone financial statements form an integral part hereof. INTERIM CONDENSED STANDALONE FINANCIAL STATEMENTS OF JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2025 (All amounts in tables expressed in millions of PLN unless stated otherwise) 6.11. EMPLOYEE BENEFIT LIABILITIES 30 June 2025 31 December 2024 EMPLOYEE BENEFIT LIABILITIES CAPTURED IN THE STANDALONE STATEMENT OF FINANCIAL POSITION ON ACCOUNT OF: – retirement and disability severance pays 221.4 211.3 – jubilee awards 382.5 355.7 – adjustment disability benefits 87.3 80.8 - death benefits 15.4 14.6 – other employee benefits 160.6 136.8 TOTAL 867.2 799.2 of which: – long-term 596.2 558.0 – short-term 271.0 241.2 As at 30 June 2025, the Company updated its employee benefit liabilities, recognizing the amount of employee benefit liabilities on account of retirement and disability severance pays, jubilee awards, adjustment disability benefits on the basis of an actuarial valuation calculated by an independent actuarial consulting firm. Key actuarial assumptions adopted for days ending the reporting periods: 30 June 2025 31 December 2024 Discount rate 5.40% 5.80% Assumed average annual increase in the basis for calculating the provision for old-age and disability severance pays, jubilee awards, adjustment disability benefits and death benefits determined as the average for the next 50 years since 2025 * 2.20% 2.20% Weighted average employee mobility ratio 2.36% 2.25% * The calculation of the provision as at 30 June 2025 and 31 December 2024 assumes no wage increases in 2025-2027, and in 2028 and subsequent years it assumed an increase in the basis for calculating the provision for old-age and disability severance pays, jubilee awards, adjustment disability benefits and death benefits set at the level of the long-term inflation target of 2.5%. 6.12. PROVISIONS Mine closures Mining damage Environmental protection Other provisions Total AS AT 1 JANUARY 2025 non-current 979.1 287.5 90.3 - 1,356.9 current 32.0 115.9 21.9 56.1 225.9 TOTAL 1,011.1 403.4 112.2 56.1 1,582.8 Recognition of additional provisions - 62.5 - 9.7 72.2 Provision recognized - interest expense 28.4 - 2.4 - 30.8 Reversal of unused provisions - (23.1) - (3.0) (26.1) Revaluation of the provision 41.9 - 1.4 - 43.3 Provisions used (6.8) (51.3) (1.6) (1.4) (61.1) AS AT 30 JUNE 2025 non-current 1,032.8 284.3 94.0 - 1,411.1 current 41.8 107.2 20.4 61.4 230.8 TOTAL 1,074.6 391.5 114.4 61.4 1,641.9
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35 Notes to the interim condensed standalone financial statements form an integral part hereof. INTERIM CONDENSED STANDALONE FINANCIAL STATEMENTS OF JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2025 (All amounts in tables expressed in millions of PLN unless stated otherwise) MINE CLOSURES The Company establishes a provision for future costs associated with the closure of a mine based on the obligations existing under the applicable law. The amount of the mine closure costs is calculated on the basis of assumptions with regards to the life of a mine, anticipated inflation and long-term discounting rates and the expected nominal cost of decommissioning the respective mines, which are determined inside the Company based on the rates published by Sekocenbud. Any changes to these assumptions affect the carrying amount of the provision. As at 30 June 2025, the Company updated the non-current provision for mine closures while adopting these assumptions: 30 June 2025 31 December 2024 Inflation rate in 2025 1.90% * 4.30% Inflation rate in 2026 3.10% 2.80% Inflation rate from 2027 2.40% 2.50% Discount rate from 2025 to 2034 5.40% 5.80% Discount rate from 2035 2.50% 2.50% * Inflation rate at 1.90% used to calculate the mine closure provision as at 30 June 2025 refers to H2 2025 (an inflation rate of 2.00% was assumed for H1 2025). After the closure costs of the individual mines and the assumptions (inflation rate, discount rate) applied to the calculation of mine closure provisions were updated as at 30 June 2025, the provision was increased by PLN 41.9 million. As at 30 June 2025, the amount of the provision for mine closure costs is PLN 1,074.6 million. MINING DAMAGE In view of the statutory obligation to repair the damage caused by the operation of mines belonging to JSW, the Company recognizes a provision for mining damage. As at 30 June 2025, the Company remeasured its provision for mining damage by incorporating an inflation rate of 2.00% to calculate credible estimation of costs of repairs of buildings, structures and the amounts of compensation paid out as a result of mining operations. As at 30 June 2025, the value of works required to remedy mining damage is PLN 391.5 million. ENVIRONMENTAL PROTECTION Based on the administrative decisions received, current zoning plans and the applicable act on the protection of arable land, the Company is legally obligated to reclaim the storage yards after it discontinues its industrial activity. As at 30 June 2025, the Company updated the provisions while adopting the following assumptions: 30 June 2025 31 December 2024 Inflation rate in 2025 3.90% 4.30% Inflation rate in 2026 3.10% 2.80% Inflation rate from 2027 2.40% 2.50% Discount rate from 2025 to 2034 5.40% 5.80% Discount rate from 2035 2.50% 2.50% As at 30 June 2025, the Company holds a provision for environmental protection associated with biological reclamation of land in the total amount of PLN 103.3 million. As at 30 June 2025, the Company has a provision for increased fees for the removal of mine water from the area of shafts in the amount of PLN 11.1 million. OTHER PROVISIONS Other provisions include mainly: provision for lawsuits brought by natural persons in the amount of PLN 22.8 million (as at 31 December 2024: PLN 22.2 million), provision for the litigation filed by Elektrometal S.A. for payment of a due amount in the amount of PLN 8.5 million (as at 31 December 2024: PLN 8.5 million), provision for the litigation filed by Grenevia S.A. (Famur S.A.) for compensation in the amount of PLN 7.2 million (as at 31 December 2024: PLN 7.2 million), provision for the litigation filed by Bytomski Zakład Usług Górniczych Sp. z o.o. for payment of a due amount in the amount of PLN 9.5 million (as at 31 December 2024: PLN 9.5 million), provision for other litigation against JSW for the total amount of PLN 9.9 million (as at 31 December 2024: PLN 6.9 million),
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36 Notes to the interim condensed standalone financial statements form an integral part hereof. INTERIM CONDENSED STANDALONE FINANCIAL STATEMENTS OF JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2025 (All amounts in tables expressed in millions of PLN unless stated otherwise) provision for future liabilities related to payment refusals in the amount of PLN 3.5 million (as at 31 December 2024: PLN 1.8 million). 6.13. TRADE AND OTHER LIABILITIES Note 30 June 2025 31 December 2024 FINANCIAL LIABILITIES Trade liabilities, of which: 1,726.4 1,750.4 - trade liabilities to related parties 550.8 561.4 Accruals and deferred income 2.9 1.9 Other liabilities of a financial nature, including: 1,040.8 1,112.9 – investment liabilities 435.6 579.4 – other liabilities 37.7 41.6 – cash received on account of Physical Cash Pooling settlements 6.9 567.5 491.9 TOTAL 2,770.1 2,865.2 NON-FINANCIAL LIABILITIES Deferred income 73.2 72.5 Other liabilities of a non-financial nature, including: 1,148.1 1,370.4 – liabilities for social security contributions and other taxes 627.4 * 779.0 – trade advances 16.4 24.9 – payroll 450.9 510.2 – other 53.4 56.3 TOTAL 1,221.3 1,442.9 TOTAL TRADE AND OTHER LIABILITIES 3,991.4 4,308.1 of which: non-current 98.0 98.5 current 3,893.4 4,209.6 * Including the liability on account of deferred ZUS contributions in the amount of PLN 306.0 million.
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37 Notes to the interim condensed standalone financial statements form an integral part hereof. INTERIM CONDENSED STANDALONE FINANCIAL STATEMENTS OF JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2025 (All amounts in tables expressed in millions of PLN unless stated otherwise) 7. NOTES TO THE STANDALONE STATEMENT OF CASH FLOWS 7.1. CASH FROM OPERATING ACTIVITIES Note For the 6-month period ended 30 June 2025 30 June 2024 Loss before taxation (2,230.5) (6,591.9) Depreciation and amortization 3.2 648.1 918.0 Loss on the disposal/liquidation of property, plant and equipment 3.5 5.3 10.3 Interest and profit-sharing (100.5) (220.2) Change in employee benefit liabilities 46.0 2.8 Change in provisions 17.2 10.9 Change in inventories 6.6 (15.0) (87.9) Change in trade and other receivables 154.7 498.8 Change in receivables under the physical cash pooling arrangement (239.5) - Change in trade and other liabilities (246.7) 66.1 Change in financial derivatives (26.1) 12.9 Impairment loss on property, plant and equipment, intangible assets and right-of-use assets 6.3 640.5 4,927.9 Impairment loss on JSW KOKS shares - 1,204.2 Other cash flows 2.9 12.0 CASH FROM OPERATING ACTIVITIES (1,343.6) 763.9 Reconciliation of the change in employee benefit liabilities in the standalone statement of cash flows: Note For the 6-month period ended 30 June 2025 30 June 2024 Change in employee benefit liabilities from the standalone statement of financial position 6.11 68.0 (25.5) Actuarial gains/(losses) captured in other comprehensive income (22.0) 28.3 CHANGE IN EMPLOYEE BENEFIT LIABILITIES IN THE STANDALONE STATEMENT OF CASH FLOWS 46.0 2.8 Reconciliation of the change in provisions in the standalone statement of cash flows: Note For the 6-month period ended 30 June 2025 30 June 2024 Change in provisions in the standalone statement of financial position 6.12 59.1 (90.7) Update of the provision for mine closure costs 6.1 (41.9) 101.6 CHANGE IN PROVISIONS IN THE STANDALONE STATEMENT OF CASH FLOWS 17.2 10.9 Reconciliation of the change in trade and other receivables in the standalone statement of cash flows: Note For the 6-month period ended 30 June 2025 30 June 2024 Change in trade and other receivables in the standalone statement of financial position 6.7 395.9 497.2 Commissions paid on loans and borrowings and amortized over time (1.1) (1.9) Adjustment for receivables from redemption of investment certificates that were not received (302.3) - Receivables on dividends 66.1 3.5 Other (3.9) - CHANGE IN TRADE AND OTHER RECEIVABLES IN THE STANDALONE STATEMENT OF CASH FLOWS 154.7 498.8
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38 Notes to the interim condensed standalone financial statements form an integral part hereof. INTERIM CONDENSED STANDALONE FINANCIAL STATEMENTS OF JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2025 (All amounts in tables expressed in millions of PLN unless stated otherwise) Reconciliation of the change in financial derivatives in the standalone statement of cash flows: For the 6-month period ended 30 June 2025 30 June 2024 Change in financial derivatives in the standalone statement of financial position (50.9) 8.5 Gains on measurement of hedging instruments in other comprehensive income transferred to the financial result in connection with the realization of the hedged position 24.8 4.4 CHANGE IN FINANCIAL DERIVATIVES IN THE STANDALONE STATEMENT OF CASH FLOWS (26.1) 12.9
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39 Notes to the interim condensed standalone financial statements form an integral part hereof. INTERIM CONDENSED STANDALONE FINANCIAL STATEMENTS OF JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2025 (All amounts in tables expressed in millions of PLN unless stated otherwise) 8. NOTES TO THE FINANCIAL INSTRUMENTS 8.1. CATEGORIES AND CLASSES OF FINANCIAL INSTRUMENTS The following tables present information on categories and classes of financial instruments. FINANCIAL ASSETS Financial instrument classes Financial instrument categories Note Amortized cost Fair value through profit or loss Hedging instruments Total AS AT 30 JUNE 2025 Investment certificates 6.5 - 1,116.8 - 1,116.8 Receivables from redemption of investment certificates 6.7 - 201.3 - 201.3 Trade receivables 6.7 1,039.0 - - 1,039.0 gross value 1,063.0 - - 1,063.0 impairment losses (24.0) - - (24.0) Receivables related to cash transferred under PCP 6.8 292.0 - - 292.0 Financial derivatives - 21.3 22.5 43.8 Bank term deposits 6.5 26.4 - - 26.4 gross value 26.4 - - 26.4 Cash and cash equivalents * 6.5, 6.9 1,083.0 - - 1,083.0 gross value 1,083.2 - - 1,083.2 impairment losses (0.2) - - (0.2) TOTAL 2,440.4 1,339.4 22.5 3,802.3 * This item also includes funds accumulated to finance the closure of a mine (Cash and cash equivalents of the Mine Closure Fund) – presented in Note 6.5. None of the significant financial assets that were not overdue were renegotiated during the last year. Financial instrument classes Financial instrument categories Note Amortized cost Fair value through profit or loss Hedging instruments Total AS AT 31 DECEMBER 2024 Investment certificates 6.5 - 3,402.6 - 3,402.6 Receivables from redemption of investment certificates 6.7 - 503.6 - 503.6 Trade receivables 6.7 1,263.6 - - 1,263.6 gross value 1,287.4 - - 1,287.4 impairment losses (23.8) - - (23.8) Financial derivatives - 2.0 10.0 12.0 Bank term deposits 6.5 25.8 - - 25.8 gross value 25.8 - - 25.8 Cash and cash equivalents * 6.5, 6.9 1,537.8 - - 1,537.8 gross value 1,538.2 - - 1,538.2 impairment losses (0.4) - - (0.4) TOTAL 2,827.2 3,908.2 10.0 6,745.4 * This item also includes funds accumulated to finance the closure of a mine (Cash and cash equivalents of the Mine Closure Fund) – presented in Note 6.5.
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40 Notes to the interim condensed standalone financial statements form an integral part hereof. INTERIM CONDENSED STANDALONE FINANCIAL STATEMENTS OF JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2025 (All amounts in tables expressed in millions of PLN unless stated otherwise) FINANCIAL LIABILITIES Financial instrument classes Note Financial instrument categories Total Amortized cost Fair value through profit or loss Hedging instruments Outside the scope of IFRS 9 AS AT 30 JUNE 2025 Loans and borrowings 5.1 1,024.1 - 363.3 - 1,387.4 Lease liabilities 5.2 - - - 819.6 819.6 Trade and other financial liabilities 6.13 2,770.1 - - - 2,770.1 TOTAL 3,794.2 - 363.3 819.6 4,977.1 Financial instrument classes Note Financial instrument categories Total Amortized cost Fair value through profit or loss Hedging instruments Outside the scope of IFRS 9 AS AT 31 DECEMBER 2024 Loans and borrowings 5.1 984.7 - 403.3 - 1,388.0 Financial derivatives - 10.2 8.9 - 19.1 Lease liabilities 5.2 - - - 825.1 825.1 Trade and other financial liabilities 6.13 2,865.2 - - - 2,865.2 TOTAL 3,849.9 10.2 412.2 825.1 5,097.4 As at 30 June 2025 and as at 31 December 2024, the fair value of financial assets and liabilities measured at amortized cost (except for loans and borrowings) did not differ significantly from their carrying amounts. The fair value of loans and borrowings is provided in Note 8.2. 8.2. FAIR VALUE HIERARCHY In the 6-month period ended 30 June 2025, the Company made no changes in the fair value measurement method for financial instruments carried at fair value (fair value measurement method) as described in Note 8.2. of the Standalone financial statements of Jastrzębska Spółka Węglowa S.A. for the financial year ended 31 December 2024). In the 6-month period ended 30 June 2025, no financial assets changed their fair value hierarchy and no changes were made to the classification of financial instruments. Fair value of financial instruments: 30 June 2025 31 December 2024 Level 2 Level 2 carrying amount fair value carrying amountfair value FINANCIAL ASSETS Investment certificates 1,116.8 1,116.8 3,402.6 3,402.6 Receivables from redemption of investment certificates 201.3 201.3 503.6 503.6 Financial derivatives, including: 43.8 43.8 12.0 12.0 financial assets – hedge derivatives 22.5 22.5 10.0 10.0 FINANCIAL LIABILITIES Financial derivatives, including: - - 19.1 19.1 financial liabilities – hedging instruments - - 8.9 8.9 Loans and borrowings 1,387.4 1,396.4 1,388.0 1,396.7 The Company does not disclose the fair value of financial instruments measured in the standalone statement of financial position at amortized cost (except for loans and borrowings), because it applies the exemption under IFRS 7.29 (disclosure of fair value information is not required because the carrying amount is a reasonable approximation of fair value).
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41 Notes to the interim condensed standalone financial statements form an integral part hereof. INTERIM CONDENSED STANDALONE FINANCIAL STATEMENTS OF JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2025 (All amounts in tables expressed in millions of PLN unless stated otherwise) 8.3. FINANCIAL RISK MANAGEMENT 8.3.1. FINANCIAL RISKS The business conducted by the Company exposes it to the following financial risks: market risk (including: price risk, foreign exchange risk and cash flow risk related to changes in interest rates), credit risk and liquidity risk. (a) PRICE RISK Commodity price risk The situation on the coking coal and coke market is related to the market for steel and metallurgical products; market trend cycles display price fluctuations in these sectors. Coking coal prices depend strongly on demand on the global metallurgy and steel market, while steam coal prices additionally depend also on other domestic producers. The lack of uniform quarterly benchmarks for coking coal, price negotiations with business partners based on reference prices determined on the basis of daily price indices, high market volatility resulting from the strong concentration of the world’s key coking coal and coke producers and significant concentration of buyers, as well as current wartime activities, may lead to significant seasonal fluctuations of the coking coal and coke prices obtained by JSW. In order to mitigate the risk of fluctuations in daily index prices, JSW usually sets reference prices for negotiations with its customers based on HCC FOB Australia Premium Low Vol hard coking coal prices averaged using two models: quarterly prices – based on average quotations from the previous quarter; monthly prices – based on the average quotations from the previous month. The average price of coking coal in a given quarter is influenced by the prices from five months (the previous quarter and the first two months of the current quarter), which averages out sudden fluctuations and contributes to greater stability of JSW’s prices. The majority of the coking coal sales contracts comprise pricing formulas based on the aforementioned reference prices, which stabilizes the prices obtained by JSW in relation to Australian coal prices. Considering the quotes affecting JSW’s prices in a given quarter, the decrease in the average benchmark price for coking coal in Q2 2025 (the average price in the period from January 2025 to May 2025) versus Q2 2024 (the average price in the period from January 2024 to May 2024) was 34% (Premium Low Vol: 186 USD/t in Q2 2025 vs. 280 USD/t in Q2 2024). The above market conditions and quotes were reflected in the prices obtained by JSW. The total actual average coal price in H1 2025 stood at PLN 635.99 per ton and was lower than the actual price in the corresponding period of the previous year by 30.3%. The average price of coking coal in this period was PLN 693.53 per ton (a decrease of 29.6% compared to the corresponding period of the previous year), and the average price of steam coal was PLN 309.70 per ton (a decrease of 35.4% compared to the corresponding period of the previous year). Coke prices are negotiated on the basis of current market conditions. The Company’s presence in European and overseas markets allows for fuller market understanding, and effective management of sales and pricing policy depending on the conditions in these markets. Given the peculiarities of the coke market in which JSW operates and the greater geographic and industry diversification of customers than in the case of coking coal, it is more difficult to identify a clear comparative benchmark for the prices obtained by JSW than in the case of coking coal. Given that the Group competes in the European market with imported coke, it is reasonable to compare the prices obtained by the Group to the prices of imported coke at CIF ARA ports. Coke prices are set at the turn of each quarter to reflect the market terms in negotiations. The optimal approach is to compare the prices obtained in a given quarter with the average price in the previous quarter. In Q2 2025, there was a 27% decrease in the benchmark price (based on Q1 2025 quoted prices) vs. the Q2 2024 benchmark price (which is based on Q1 2024 quotations) (261 USD/t in Q1 2025; 356 USD/t in Q1 2024). The average price of coke sold in H1 2025 was PLN 1,045.89 per ton, down 23.8% from the same period in the previous year. There is no hedging market for coke as there is for coking coal; price agreements are made based on current market conditions; some contracts include price formulas based on coking coal prices, among other things, which is a form of hedging given that coal is the main cost of coke production. In recent years, the balance in the global coke market, the specific nature of which arises from the small share of the volume of traded coke (approx. 30.0 million tons) in total consumption (approx. 700.0 million tons), has been significantly disturbed. The intensive growth of the Indonesian coke industry, supported by powerful Chinese investments in the Morowali Industrial Park, has been threatening the stability of the sector and the entire European market. By using Chinese technology and capital, Indonesia has rapidly become the world’s third largest exporter of coke, and its production potential is steadily increasing. There is a real danger that within a few years it will overtake Poland and become the world’s second
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42 Notes to the interim condensed standalone financial statements form an integral part hereof. INTERIM CONDENSED STANDALONE FINANCIAL STATEMENTS OF JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2025 (All amounts in tables expressed in millions of PLN unless stated otherwise) largest coke exporter after China. Considering that the investments in Indonesia are implemented by aggressive Chinese capital, China may soon gain an undisputed dominating position in the global commercial coke market and shape the market according to its wishes. The limited nature of the global market makes it a priority for Indonesian coke producers to win customers at any cost, which they do by offering coke at dumping prices. This depresses the ratio of blast-furnace coke prices to hard coking coal prices on a long-term basis. So far, Indonesian coke has gone mainly to the Asian and Atlantic markets, with small volumes reaching the European market in the first half of 2024. Starting in H2 2024, the deliveries have become more regular. The ownership changes in the global steel industry and progressive consolidation of the steel industry may contribute to an increase in the buyers’ bargaining power. JSW continuously monitors the exposure of revenues from its largest counterparties and seeks opportunities to diversify its sales. In case of changes in market prices and in order to ensure stable allocation of volumes on the market, the Company mitigates their impact on its financial standing by taking the following actions: optimizing the production volume, taking into account the volume and quality requirements of the buyers (stability of parameters and their observance helps stabilize the Company’s revenues and the possibility of obtaining higher price relationships for JSW coal vs. benchmark prices), optimizing the production structure to increase efficiency of product sales (increase production of goods commanding better prices and finding demand in the period – optimization of the sales structure), optimizing the selling directions of the products (among others using the geographical rent, cooperation based on long-term contracts, which translates into stability of revenues). Downtrend in global economies, in particular in the steel and power industry or events causing a significant decline of demand for coal and coke, may have adverse impact on the Company’s activity, results and financial standing. The restrictions that have been imposed on economic activity may temporarily lead to reduced demand and significant decreases in the prices of commodities, including coking coal, steam coal and coke. The market risk is increased by the conflict in Ukraine (the embargo for the import of raw materials from Russia may affect global markets, energy prices, or EU steel production costs, etc.), increased market protectionism and growing market destabilization. The unstable tariff policy of the United States affects global markets, triggers retaliatory measures by other countries, and makes business decision-making more difficult. The tariffs introduced on, for example, steel and steel products lead to market reorganization, shifts in trade flows, and disruptions to the previous market balance. In order to react to changing prices at the right moment, the Company constantly monitors markets, analyzes them and tracks on an ongoing basis price trends on the coal, coke, steel and electricity markets and rail and marine cargo transport. Also, an analysis is conducted to monitor the opportunities and the terms for the offtakers to obtain coal or coke from alternative sources on the domestic market or from foreign, mainly overseas markets. The terms and conditions of long-term contracts allow for periodic price negotiations. To achieve the risk management goals, the Company observes the rules described in the JSW Group’s Sales Procedure and operates within the framework of decisions made by the Financial Risk Committee at the JSW Group. The overriding objective of the principles for managing the risk of coking coal prices adopted by JSW is to reduce the impact of fluctuations in coking coal prices on the Company’s cash flows to an acceptable level. The Company assumes that the application of the coking coal price risk management principles described in the Coking Coal Price Risk Management Policy will increase the probability of achieving planned cash flows and the stability of their planned growth in the long term. The coking coal price risk management process is carried out with while keeping the separation of roles and duties related to executive functions (related to the conclusion of derivatives) from control, supervisory or management functions. JSW has a Financial Risk Committee, which advises the JSW Management Board on the management of the coking coal price risk. Within the limit awarded by the JSW Management Board, the Financial Risk Committee may decide on the implementation of hedging strategies or, where such limit is or could be overrun, recommend their implementation to the JSW Management Board. As part of management of coking coal price risk, in H1 2025 JSW implemented transactions hedging the risk of changes in coking coal prices - commodity swap for the total nominal volume of 15.0 thousand tons and maturities to September 2025. Hedge accounting In H1 2025, the Company designated for hedge accounting a commodity swap with a nominal amount of 15.0 thousand tons, which hedged the risk of coking coal price changes. As at 30 June 2025, the Company had active derivative transactions (one commodity swap) with a total nominal value of 15.0 thousand tons, all of which constituted hedging transactions within the meaning of hedge accounting (as at 30 June 2024, the
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43 Notes to the interim condensed standalone financial statements form an integral part hereof. INTERIM CONDENSED STANDALONE FINANCIAL STATEMENTS OF JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2025 (All amounts in tables expressed in millions of PLN unless stated otherwise) Company had active transactions (commodity swap) with a total notional amount of 26.0 thousand tons). The derivatives hedge the proceeds from coal sales that JSW expects to receive during the period until December 2025. In the 6-month period ended 30 June 2025, the effective portion of the change in the fair value of the hedges amounting to PLN 2.6 million was recognized in other comprehensive income (PLN 8.8 million in H1 2024). The ineffective part of the change in the fair value of the hedge transactions from the date of designating the link in the amount of PLN 0.1 million was recognized in profit or loss (in H1 2024: PLN 0.1 million). After the hedged position was realized, the amount of PLN 7.9 million recognized as sales revenues (Note 3.1) and captured in profit or loss in H1 2025 (in H1 2024: PLN (3.7) million) Price risk - other JSW holds FIZ investment certificates measured at fair value through profit or loss, which represent a share in the Fund’s assets, which include mainly bonds issued by the State Treasury and Bank Gospodarstwa Krajowego. FIZ investment certificates are exposed to price risk resulting from changes in the rating of the securities issuer. If Poland’s rating was to be reduced, causing interest rates to rise by 100 bp, the sensitivity analysis would be as follows: 30 June 2025 31 December 2024 Change in the fair value of FIZ investment certificates (48.5) (105.5) Effect on results before tax (48.5) (105.5) Tax effect 9.2 20.1 IMPACT ON NET RESULT (39.3) (85.4) (b) FOREIGN EXCHANGE RISK The Company is exposed to significant foreign exchange risk due to its foreign currency exposure which may affect the amounts of future cash flows and the financial result. Foreign exchange risk in the Company originated from the sales of its products: sales denominated in EUR and USD, sales indexed to EUR and USD. The following analysis only covers these positions in financial instruments, which are exposed to the risk of changes in exchange rates as at the last day of the reporting period*: EUR/PLN rate USD/PLN rate 30 June 2025 31 December 2024 30 June 2025 31 December 2024 net result other comprehensive income net result other comprehensive income net result other comprehensive income net result other comprehensive income % change 5.3% 5.4% 10.6% 10.6% Change in the value of financial assets 19.3 - 35.8 - 5.8 0.2 17.6 0.6 Change in the value of financial liabilities (24.5) (20.6) (28.9) (27.9) (15.4) (27.8) (37.2) (43.8) Impact on profit/loss before tax or other comprehensive income (5.2) (20.6) 6.9 (27.9) (9.6) (27.6) (19.6) (43.2) Tax effect 1.0 3.9 (1.3) 5.3 1.8 5.2 3.7 8.2 IMPACT ON NET RESULT (4.2) 5.6 (7.8) (15.9) IMPACT ON OTHER COMPREHENSIVE INCOME (16.7) (22.6) (22.4) (35.0) * When the exchange rates drop (change by -%), the sensitivity analysis produces values identical to those in the table above but with an opposite sign. The overriding objective of the Company’s policy is to mitigate the exchange risk arising from its exposure to foreign currencies. The Company has been measuring its FX risk on an ongoing basis and takes actions to mitigate the effect it has on its financial standing. FX risk is managed in the Company in accordance with the JSW Group’s FX Risk Management Policy and procedure. The Company has in place a Financial Risk Committee responsible for making key FX risk management decisions, in particular for hedging contracted and planned cash flows.
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44 Notes to the interim condensed standalone financial statements form an integral part hereof. INTERIM CONDENSED STANDALONE FINANCIAL STATEMENTS OF JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2025 (All amounts in tables expressed in millions of PLN unless stated otherwise) In order to mitigate FX risk, during the 6-month period ended 30 June 2025 JSW concluded FX forward (external) transactions in accordance with the hedge ratios adopted by the Company’s Management Board and the Financial Risk Committee. The maturity of the transactions did not exceed 11 months. In its FX risk management processes, the Company applies natural hedging, i.e. takes out loans and to a small extent makes small purchases of materials, services or investment assets in the foreign currencies, in which it earns revenues. Hedge accounting In the 6-month period ended 30 June 2025, the Company designated FX Forward transactions with a nominal amount of EUR 25.0 million and USD 29.0 million for hedge accounting. At the same time, the Company continued hedge accounting for the FX Forward transactions concluded in 2024. As at 30 June 2025, the Company had outstanding FX Forward derivatives with a total notional amount of EUR 141.2 million and USD 81.0 million, of which EUR 33.0 million and USD 41.0 million were hedge transactions for hedge accounting purposes. Derivative transactions hedge proceeds from the sales of products and goods which JSW expects to receive by March 2026. At the same time, in the 6-month period ended 30 June 2025, the Company continued in the hedge accounting of the hedging relationship, in which an USD-denominated loan (taken out in 2023) was designated as an instrument hedging future USD-denominated cash flows, and an EUR-denominated loan (taken out in 2024) was designated as an instrument hedging future cash flows. The purpose of the Company’s hedging actions to obtain protection against the risk of changing EUR/PLN and USD/PLN exchange rate is to guarantee a specific level of the PLN equivalent of EUR and USD receipts from coke sales fulfilled by the Company. The hedged positions include highly-probable EUR and USD-denominated cash flows to be received within the principal installment repayment periods and matching the EUR and USD-denominated principal installment amounts. A detailed listing of dates and volumes of the designated hedging instrument is specified in the principal installment repayment schedule adopted by the Company. As a result of the application of hedge accounting in the 6-month period ended 30 June 2025, the effective portion of the change in the fair value of the hedges amounting to PLN 61.9 million was recognized in other comprehensive income (PLN (0.8) million in the 6-month period ended 30 June 2024). After the hedged position was realized, in the 6-month period ended 30 June 2025, the amount of PLN 13.8 million captured in sales revenues (PLN 10.8 million in H1 2024) was recognized in profit or loss of the period – Note 3.1. The ineffective part of the change in the fair value in the amount of PLN 0.1 million and the change in the fair value of derivatives not designated for hedge accounting in the amount of PLN 20.2 million were recognized in the profit or loss for the 6 months ended 30 June 2025 (in H1 2024, the ineffective portion of the change in the fair value of hedging transactions of PLN 0.3 million and a change in the fair value of derivatives not designated for hedge accounting of PLN 3.4 million). (c) RISK OF CASH FLOW VOLATILITY CAUSED BY CHANGES IN INTEREST RATES The main sources of interest rate risk in the Company include: investment certificates, cash and cash equivalents and deposits, loans and borrowings, lease liabilities, cash provided/received under Physical Cash Pooling settlements JSW is exposed to interest rate risk primarily in PLN, USD and EUR. The Company’s exposure to interest rate risk concerns primarily potential changes in cash flows caused by shifts in market interest rates. The Company finances its operating and investing activities with external funds bearing interest at both fixed and floating interest rates and invests free cash in financial assets that, in most cases, bear interest at floating interest rates. Interest rate risk arises from the volatility of the following reference rates: WIBOR 1M, WIBOR 3M, WIBID 1M, Compound Benchmark Rate SOFR, EURIBOR. The table below presents the potential impact of a change in interest rates on net result. The analysis only covers these positions in financial instruments, which are exposed to interest rate risk as at the last day of the reporting period. The level of changes in interest rates assumed in the 6-month period ended 30 June 2025 reflects the hypothetical change in the level of the PLN reference rate.
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45 Notes to the interim condensed standalone financial statements form an integral part hereof. INTERIM CONDENSED STANDALONE FINANCIAL STATEMENTS OF JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2025 (All amounts in tables expressed in millions of PLN unless stated otherwise) Impact of an increase in the interest rate: PLN interest rate USD interest rate EUR interest rate 30 June 2025 31 December 2024 30 June 2025 31 December 2024 30 June 2025 31 December 2024 Volatility in basis points +100 bps +200 bps +100 bps +200 bps +100 bps +200 bps +100 bps +200 bps +100 bps +200 bps +100 bps +200 bps Change in the value of financial assets 12.5 25.0 27.9 55.8 - - - - - - 0.5 0.9 Change in the value of financial liabilities (16.0) (32.0) (14.8) (29.6) (1.1) (2.3) (1.4) (2.8) (2.5) (5.0) (2.6) (5.3) Effect on results before tax (3.5) (7.0) 13.1 26.2 (1.1) (2.3) (1.4) (2.8) (2.5) (5.0) (2.1) (4.4) Tax effect 0.7 1.3 (2.5) (5.0) 0.2 0.4 0.3 0.5 0.5 1.0 0.4 0.8 IMPACT ON NET RESULT (2.8) (5.7) 10.6 21.2 (0.9) (1.9) (1.1) (2.3) (2.0) (4.0) (1.7) (3.6) If the interest rates change by -100, -200 basis points, the sensitivity analysis produces values identical to those in the table above but with an opposite sign. The above table presents the sensitivity of cash flows, i.e. the Company’s interest income and expenses driven by changes in interest rates for balance sheet items expressed in PLN, USD and EUR. (d) CREDIT RISK Credit risk identified in trade receivables is associated with their concentration and timely service. Sales are made to a limited number of buyers and therefore there is a concentration of risk associated with trade receivables. As at 30 June 2025, risk is concentrated in two of the Company’s largest clients, from which receivables represent, respectively, 30.7% and 14.3% of all trade receivables and the companies, in which the State Treasury is a shareholder, receivables from which represented 5.7% of all trade receivables (as at 30 June 2024: 21.5%, 15.6% and 5.7%, respectively, of all trade receivables). In H1 2025, the Company did not observe any significant deterioration of the ability to pay its due amounts on time or an increase in bankruptcies or restructurings among its customers. The main element of the Company’s policy in this area is mitigating the risk of losing receivables due to counterparty insolvency, by using in trade transactions appropriate financial collateral suited to the client’s status (strategic, main client) in the form of e.g. insurance of receivables, letters of credit, prepayments. The Company did not conduct transactions with entities registered in Russia and Ukraine. The sanctions imposed on Russia and the wartime activities in Ukraine do not increase its risk and the rate of repayment of receivables shown in the standalone statement of financial position as at 30 June 2025, which fall due in the coming months, will remain substantially unchanged. Accordingly, as at 30 June 2025, the Company has not identified any indications that it is necessary to change the assumptions adopted for evaluating the expected credit loss in terms of the potential need to consider any additional risk element related to the current economic situation and forecasts for the future. The Company analyzes the market situation and signals from its business partners that may point to deterioration of their financial standing and, if necessary, will update the estimates adopted to calculate the expected credit losses in subsequent reporting periods. The credit risk pertaining to cash and cash equivalents and deposits is limited because the Company invests its cash in banks with established market position and holding a rating awarded by international rating agencies. Considering the above, the level of risk of the investment activity may be estimated as low. To diversify the risk associated with the execution of hedging transactions, the Financial Risk Committee defines the maximum concentration level for derivative transactions (the maximum nominal amount of transactions open at a single bank). The highest concentration level in one bank as at 30 June 2025 is approx. 34.3% of the permitted limit (as at 31 December 2024: approx. 31% of the permitted limit). The Company assesses the risk related to investment certificates as moderate given the Fund’s stated investment policy, which guarantees that it purchases properly-diversified instruments with limited risk. According to the Company’s assessment, the maximum exposure to credit risk as at 30 June 2025 is the full carrying amount of trade receivables without the fair value of security accepted, cash and cash equivalents and financial assets in the form of bank term deposits and investment certificates. (e) LIQUIDITY RISK As cash flow and the level of cash generated are highly dependent on coal and coke sale prices, and also in connection with the constantly high level of investment and operating expenditures, the Company is exposed to liquidity risk in the case of considerable deterioration of the market situation. The market conditions in the 6-month period ended 30 June 2025 made it impossible to generate high positive net cash flows from
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46 Notes to the interim condensed standalone financial statements form an integral part hereof. INTERIM CONDENSED STANDALONE FINANCIAL STATEMENTS OF JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2025 (All amounts in tables expressed in millions of PLN unless stated otherwise) operating activities. The Company additionally generated negative net cash flows from financing activities. The Company achieved positive net cash flows from investing activities, which resulted mainly from the high level of receipts from the redemption of investment certificates of the JSW Stabilization FIZ. The positive cash flows from investing activities were not sufficient to offset the negative cash flows from operating and financing activities, resulting in a significant reduction of the available cash balance. Materialization of the risk of loss of liquidity is one of the most important factors that may affect JSW’s viability as a going concern. This is why JSW takes various strategic and operational measures to minimize the risk of loss of liquidity. The Company’s overriding task in the liquidity risk management process is to ensure ongoing monitoring and planning of the liquidity level. The Company also intends to maintain the proper financing structure by keeping an appropriate level of long-term financing sources. The Company’s liquidity risk management process supported by the implemented Liquidity Management Policy and process in the JSW Group calls for, among others, effective monitoring and reporting of the liquidity position, among others, to take preventive measures in the event of a threat to liquidity and maintaining an appropriate (minimum) level of cash available for service of current payments. The Company is pursuing the liquidity management policy under which it diversifies financing sources and takes advantage of the available tools to ensure effective liquidity management. Among other things, the following tools were used to increase JSW’s liquidity security: The Company has in place the Stabilization Fund providing a safety cushion in times of economic downturn when it is necessary to incur expenditures not fully covered by cash inflows. The value of the investment certificates outstanding as at 30 June 2025 is PLN 1,318.1 million (as at 31 December 2024: PLN 3,906.2 million). In the 6-month period ended 30 June 2025, the Company received proceeds from redemption of FIZ investment certificates in the total amount of PLN 2,670.1 million. After the end of the reporting period, the Company received further proceeds from redemption of investment certificates - details in Note 6.5. In the 6-month period ended 30 June 2025, tranches of loans and borrowings under the Consortium Financing Agreement of 12 April 2023 were drawn down in the total amount of PLN 64.4 million (details in Note 5.1.). In order to achieve more effective management of current liquidity, the Group has in place a cash management system - PCP. Moreover, the Company uses also other liquidity-supporting possibilities and options, which are discussed in detail in Note 2.2. The Company considers the current level of loss of liquidity to be elevated and therefore, it constantly takes immense measures in order to limit the risk of loss of liquidity. The table below contains an analysis of the Company's financial liabilities in respective age groups, distributed according to time to contractual maturity on the final day of the reporting period. The amounts presented in the table represent undiscounted contractual cash flows. The balances of trade and other financial liabilities maturing within 12 months are recognized at their carrying amounts, since the impact of discounting is not significant in terms of value. Under 1 year 1 to 2 years 2 to 5 years Over 5 years Total AS AT 30 JUNE 2025 Loans and borrowings 245.1 253.4 1,084.7 87.4 1,670.6 Lease liabilities 346.3 190.1 179.5 663.7 1,379.6 Trade and other financial liabilities 2,746.1 3.3 3.3 17.4 2,770.1 Financial derivatives (gross-settled) 718.2 - - - 718.2 TOTAL 4,055.7 446.8 1,267.5 768.5 6,538.5 AS AT 31 DECEMBER 2024 Loans and borrowings 202.3 240.0 999.6 263.4 1,705.3 Lease liabilities 344.7 203.8 175.6 679.1 1,403.2 Trade and other financial liabilities 2,838.3 5.1 3.3 18.6 2,865.3 Financial derivatives (gross-settled) 676.6 - - - 676.6 TOTAL 4,061.9 448.9 1,178.5 961.1 6,650.4 8.3.2. CAPITAL RISK MANAGEMENT In the period covered by these interim condensed standalone financial statements, there were no material changes in the capital risk management objectives, principles and procedures as described in Note 8.5.2. of the Standalone financial statements of Jastrzębska Spółka Węglowa S.A. for the financial year ended 31 December 2024.
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47 Notes to the interim condensed standalone financial statements form an integral part hereof. INTERIM CONDENSED STANDALONE FINANCIAL STATEMENTS OF JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2025 (All amounts in tables expressed in millions of PLN unless stated otherwise) The Consortium Financing Agreement of 12 April 2023 imposes on JSW and other Group companies a number of covenants to maintain the contractual levels of financial ratios, as well as ratios of effectiveness in the achievement of sustainability-related goals, which are presented in detail in Note 5.1.
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48 Notes to the interim condensed standalone financial statements form an integral part hereof. INTERIM CONDENSED STANDALONE FINANCIAL STATEMENTS OF JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2025 (All amounts in tables expressed in millions of PLN unless stated otherwise) 9. OTHER EXPLANATORY NOTES 9.1. CONTINGENT ITEMS CONTINGENT ITEMS In the 6-month period ended 30 June 2025, there were no material changes in the contingent liabilities disclosed in the Standalone Financial Statements of Jastrzębska Spółka Węglowa S.A. for the financial year ended 31 December 2024 in Note 9.1. GUARANTEES AND SURETIES GIVEN In the 6-month period ended 30 June 2025, the Company did not extend sureties or guarantees. INFORMATION ON MATERIAL COURT PROCEEDINGS In the 6-month period ended 30 June 2025 there were no material resolutions of court proceedings. 9.2. FUTURE CONTRACTUAL LIABILITIES Future contractual liabilities incurred on the dates ending the reporting periods which are not included in the standalone statement of financial position include: 30 June 2025 31 December 2024 Contractual liabilities incurred to purchase property, plant and equipment and intangible assets 1,154.0 1,449.8 Other 0.9 31.6 TOTAL 1,154.9 1,481.4 9.3. RELATED PARTY TRANSACTIONS As at 30 June 2025 and 31 December 2024, the Company’s majority shareholder was the State Treasury. In the 6-month period ended 30 June 2025 and in 2024, the State Treasury was the direct top-level parent entity. Accordingly, all companies owned by the State Treasury (directly or indirectly) are the Company’s related parties. In the 6-month period ended 30 June 2025, all the transactions between the Company and its related parties were executed on an arm’s length basis, were typical and concluded in the normal course of business. In the presented reporting period, the Company concluded no other material transactions with related parties with a different nature or material amounts, other than those described in the most recent standalone annual financial statements. In the 6-month period ended 30 June 2025, no individual transactions were identified between JSW and parties related to the State Treasury were identified, which were significant due to a non-standard scope and/or amount. 9.4. EVENTS AFTER THE END OF THE REPORTING PERIOD According to our knowledge, there were no material events after 30 June 2025, i.e. after the end of the reporting period, other than those described below, that could have a significant effect on the evaluation of the economic position, financial standing and financial performance but had not been recognized in the interim condensed standalone financial statements for the 6-month period ended 30 June 2025: Starting from 1 July 2025, the organizational structure of the Borynia-Zofiówka-Bzie Mine was modified, i.e. the Bzie Section was included in the Zofiówka Section to create a two-section mine to be called KWK Borynia-Zofiówka. On 1 September 2025, the JSW Supervisory Board: - dismissed Mr. Remigiusz Krzyżanowski from the position of Vice-President of the Management Board for Financial Matters, effective as of 1 September 2025, - seconded a member of the Supervisory Board, Mr. Bogusław Oleksy, to temporarily perform the duties of Vice-President of the Management Board for Financial Matters as of 1 September 2025 to 30 November 2025, inclusive, but no longer than until the date of appointment of the Vice-President of the Management Board for Financial Matters, subject to Article 383 § 1 of the Commercial Company Code. On 12 September 2025, an endogenous fire broke out at KWK Borynia-Zofiówka, Zofiówka Section, as a result of which it was necessary to temporarily seal off the endangered area covering the mined longwall C-2, seam 505/1. In connection with the incident, on 18 September 2025, the JSW Management Board adopted a resolution on the occurrence of force majeure in JSW and the notification of the Company’s business partners of its occurrence and the ensuing consequences for the obligations affected by the operation of force majeure. The projected loss of coal production at KWK Borynia-Zofiówka in 2025 is estimated at approx. 156 thousand tons. As at the date of approving this report, it is not possible to specify the full impact of the aforementioned event on the future prospects of JSW and the Group.
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49 Notes to the interim condensed standalone financial statements form an integral part hereof. INTERIM CONDENSED STANDALONE FINANCIAL STATEMENTS OF JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2025 (All amounts in tables expressed in millions of PLN unless stated otherwise) 10. MANAGEMENT BOARD'S REPRESENTATIONS AND APPROVAL OF THE INTERIM CONDENSED STANDALONE FINANCIAL STATEMENTS On reliability of the preparation process of the interim condensed standalone financial statements The Management Board of JSW hereby represents that, according to its best knowledge, these interim condensed standalone financial statements and the comparative data have been prepared in compliance with the applicable accounting principles and they are a true, accurate and clear presentation of the economic and financial position and the financial performance of Jastrzębska Spółka Węglowa S.A. These interim condensed standalone financial statements for the 6 months ended 30 June 2025 were approved for publication and signed by the Management Board of JSW S.A. on 29 September 2025. Jastrzębie-Zdrój, 29 September 2025 SIGNATURES OF JSW MANAGEMENT BOARD MEMBERS Ryszard Janta President of the Management Board Jolanta Gruszka Vice-President of the Management Board Bogusław Oleksy Acting Vice-President of the Management Board Adam Rozmus Vice-President of the Management Board Artur Wojtków Vice-President of the Management Board Adam Mańka Department Director, Chief Accountant