Interim report
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INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF THE JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. GROUP FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2026 (All amounts in tables expressed in millions of PLN unless stated otherwise) 2 TABLE OF CONTENTS CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME ................................................................... 4 CONSOLIDATED STATEMENT OF FINANCIAL POSITION ................................................................................................................................... 5 CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED) .......................................................................................................... 6 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY ................................................................................................................................... 7 CONSOLIDATED STATEMENT OF CASH FLOWS ................................................................................................................................................ 8 ADDITIONAL INFORMATION ................................................................................................................................................................................... 9 NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS ..................................................................................... 9 1. GENERAL INFORMATION ................................................................................................................................................................................. 9 1.1. NAME, REGISTERED OFFICE AND LINE OF BUSINESS......................................................................................................................... 9 1.2. COMPOSITION OF THE GROUP................................................................................................................................................................ 9 2. ACCOUNTING POLICY .................................................................................................................................................................................... 12 2.1. BASIS OF PREPARATION OF THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS ....................................... 12 2.2. GOING CONCERN ASSUMPTION............................................................................................................................................................ 12 2.3. NEW STANDARDS, INTERPRETATIONS AND THEIR AMENDMENTS ................................................................................................. 17 2.4. CHANGE IN SIGNIFICANT ESTIMATES AND MATERIAL JUDGMENTS ............................................................................................... 18 2.5. RESTATEMENT OF COMPARATIVE DATA ............................................................................................................................................. 19 2.6. SEASONALITY INFORMATION ................................................................................................................................................................ 21 2.7. 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 ...... 21 3. NOTES TO THE OPERATING SEGMENTS .................................................................................................................................................... 22 3.1. OPERATING SEGMENTS ......................................................................................................................................................................... 22 4. NOTES TO THE CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME ............................... 24 4.1. SALES REVENUES ................................................................................................................................................................................... 24 4.2. COST OF PRODUCTS, MATERIALS AND GOODS SOLD ...................................................................................................................... 24 4.3. OTHER REVENUES .................................................................................................................................................................................. 25 4.4. OTHER COSTS .......................................................................................................................................................................................... 25 4.5. OTHER NET GAINS ................................................................................................................................................................................... 26 4.6. FINANCIAL INCOME AND COSTS ........................................................................................................................................................... 26 4.7. DISCONTINUED OPERATIONS................................................................................................................................................................ 26 4.8. (LOSS) PER SHARE .................................................................................................................................................................................. 28 5. EXPLANATORY NOTES PERTAINING TO TAX ............................................................................................................................................ 29 5.1. INCOME TAX ............................................................................................................................................................................................. 29 6. EXPLANATORY NOTES PERTAINING TO DEBT .......................................................................................................................................... 30 6.1. LOANS AND BORROWINGS .................................................................................................................................................................... 30 6.2. LEASE LIABILITIES ................................................................................................................................................................................... 36 6.3. RECONCILIATION OF DEBT .................................................................................................................................................................... 36 7. NOTES TO THE CONSOLIDATED STATEMENT OF FINANCIAL POSITION .............................................................................................. 38 7.1. PROPERTY, PLANT AND EQUIPMENT ................................................................................................................................................... 38 7.2. INTANGIBLE ASSETS ............................................................................................................................................................................... 38 7.3. RIGHT-OF-USE ASSETS .......................................................................................................................................................................... 39 7.4. IMPAIRMENT OF NON-FINANCIAL NON-CURRENT ASSETS ............................................................................................................... 40
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INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF THE JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. GROUP FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2026 (All amounts in tables expressed in millions of PLN unless stated otherwise) 3 7.5. INVESTMENTS IN THE FIZ ASSET PORTFOLIO .................................................................................................................................... 41 7.6. OTHER NON-CURRENT FINANCIAL ASSETS ........................................................................................................................................ 43 7.7. INVENTORIES ........................................................................................................................................................................................... 43 7.8. TRADE AND OTHER RECEIVABLES ....................................................................................................................................................... 44 7.9. CASH AND CASH EQUIVALENTS ............................................................................................................................................................ 45 7.10. DISPOSAL GROUP HELD FOR SALE .................................................................................................................................................... 45 7.11. EQUITY .................................................................................................................................................................................................... 46 7.11.1. SHARE CAPITAL ........................................................................................................................................................................... 46 7.11.2. CAPITAL ON REVALUATION OF FINANCIAL INSTRUMENTS ................................................................................................... 46 7.11.3. DIVIDENDS PAID AND PROPOSED............................................................................................................................................. 47 7.12. EMPLOYEE BENEFIT LIABILITIES ......................................................................................................................................................... 47 7.13. PROVISIONS ........................................................................................................................................................................................... 48 7.14. TRADE AND OTHER LIABILITIES .......................................................................................................................................................... 50 8. NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS ............................................................................................................ 51 8.1. CASH (EXPENDITURES) IN OPERATING ACTIVITIES........................................................................................................................... 51 9. NOTES TO THE FINANCIAL INSTRUMENTS ................................................................................................................................................ 53 9.1. CATEGORIES AND CLASSES OF FINANCIAL INSTRUMENTS ............................................................................................................. 53 9.2. FAIR VALUE HIERARCHY ........................................................................................................................................................................ 55 9.3. FINANCIAL RISK MANAGEMENT ............................................................................................................................................................ 55 9.3.1. FINANCIAL RISKS ........................................................................................................................................................................... 55 9.3.2. CAPITAL RISK MANAGEMENT ...................................................................................................................................................... 61 10. OTHER EXPLANATORY NOTES .................................................................................................................................................................... 62 10.1. CONTINGENT ITEMS .............................................................................................................................................................................. 62 10.2. FUTURE CONTRACTUAL LIABILITIES .................................................................................................................................................. 62 10.3. RELATED PARTY TRANSACTIONS ....................................................................................................................................................... 62 10.4. EVENTS AFTER THE END OF THE REPORTING PERIOD .................................................................................................................. 62 11. MANAGEMENT BOARD’S REPRESENTATIONS AND APPROVAL OF THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS .................................................................................................................................................................................................. 64
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INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF THE JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. GROUP FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2026 (All amounts in tables expressed in millions of PLN unless stated otherwise) 4 Notes to these interim condensed consolidated financial statements form an integral part hereof. CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME Note For the period of 3 months ended 30 June 2026 For the period of 6 months ended 30 June 2026 For the period of 3 months ended 30 June 2025 (restated data)* For the period of 6 months ended 30 June 2025 (restated data)* Sales revenues 4.1 2,246.8 4,343.8 2,227.9 4,612.1 Cost of products, materials and goods sold 4.2 (2,222.2) (4,605.7) (2,784.9) (5,818.1) GROSS PROFIT/(LOSS) ON SALES 24.6 (261.9) (557.0) (1,206.0) Selling and distribution expenses 4.2 (73.2) (151.5) (77.9) (152.2) Administrative expenses 4.2 (207.9) (430.4) (223.6) (501.9) Other revenues 4.3 72.8 90.4 33.0 56.6 Impairment of non-financial non-current assets 7.4 (103.6) (143.5) 9.5 (641.5) Other costs 4.4 (61.6) (106.2) (28.0) (51.3) Other net gains 4.5 8.9 8.1 44.9 120.8 OPERATING (LOSS) (340.0) (995.0) (799.1) (2,375.5) Financial income 4.6 0.8 4.7 6.0 14.2 Financial costs 4.6 (55.0) (107.8) (58.5) (124.1) Share in profits of associated entities - - - 0.1 (LOSS) BEFORE TAX (394.2) (1,098.1) (851.6) (2,485.3) Income tax 5.1 (27.9) 61.9 140.3 409.2 NET (LOSS) FROM CONTINUING OPERATIONS (422.1) (1,036.2) (711.3) (2,076.1) NET PROFIT/(LOSS) FROM DISCONTINUED OPERATIONS 4.7 (5.4) (7.2) (0.7) 1.0 NET (LOSS) (427.5) (1,043.4) (712.0) (2,075.1) Other comprehensive income from continuing operations to be reclassified to profit or loss: Movement in hedging instruments (1.9) (20.2) 5.0 42.9 Income tax 5.1 0.3 3.8 (1.0) (8.2) Other comprehensive income from continuing operations not to be reclassified to profit or loss: Actuarial gains/(losses) 23.2 23.2 (25.2) (25.2) Income tax 5.1 (4.7) (4.7) 4.8 4.8 TOTAL OTHER COMPREHENSIVE INCOME FROM CONTINUING OPERATIONS 16.9 2.1 (16.4) 14.3 TOTAL COMPREHENSIVE INCOME FROM CONTINUING OPERATIONS (405.2) (1,034.1) (727.7) (2,061.8) TOTAL COMPREHENSIVE INCOME FROM DISCONTINUED OPERATIONS 4.7 (5.4) (7.2) (0.7) 1.0 TOTAL COMPREHENSIVE INCOME (410.6) (1,041.3) (728.4) (2,060.8) Net profit/(loss) attributable to: - shareholders of the Parent Company 4.8 (427.1) (1,038.6) (724.1) (2,087.6) - non-controlling interest (0.4) (4.8) 12.1 12.5 Comprehensive income attributable to: - shareholders of the Parent Company (410.1) (1,036.4) (740.4) (2,073.2) - non-controlling interest (0.5) (4.9) 12.0 12.4 Basic and diluted net (loss) per share attributable to shareholders of the Parent Company (in PLN per share) 4.8 (3.64) (8.85) (6.17) (17.78) * A detailed description of the restatement is presented in Note 2.5.
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INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF THE JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. GROUP FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2026 (All amounts in tables expressed in millions of PLN unless stated otherwise) 5 Notes to these interim condensed consolidated financial statements form an integral part hereof. CONSOLIDATED STATEMENT OF FINANCIAL POSITION Note 30 June 2026 31 December 2025 ASSETS NON-CURRENT ASSETS Property, plant and equipment 7.1 7,754.2 7,525.2 Intangible assets 7.2 33.6 66.8 Investment property 17.2 20.1 Right-of-use asset 7.3 343.5 402.6 Investments in associates 1.3 1.3 Deferred tax assets 2,176.5 2,128.0 Investments in the FIZ asset portfolio 7.5 270.6 137.8 Other non-current financial assets 7.6 307.2 516.8 TOTAL NON-CURRENT ASSETS 10,904.1 10,798.6 CURRENT ASSETS Inventories 7.7 1,204.7 952.2 Trade and other receivables 7.8 996.9 846.8 Income tax overpaid 1.9 4.2 Financial derivatives 0.5 6.7 Other current financial assets 22.3 22.4 Cash and cash equivalents 7.9 117.1 797.0 Non-current assets (disposal group) held for sale 7.10 226.9 24.7 TOTAL CURRENT ASSETS 2,570.3 2,654.0 TOTAL ASSETS 13,474.4 13,452.6
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INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF THE JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. GROUP FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2026 (All amounts in tables expressed in millions of PLN unless stated otherwise) 6 Notes to these interim condensed consolidated financial statements form an integral part hereof. CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED) Note 30 June 2026 31 December 2025 EQUITY Share capital 7.11.1 1,251.9 1,251.9 Share premium account 905.0 905.0 Capital on revaluation of financial instruments 7.11.2 4.2 20.5 Retained earnings (139.8) 880.3 TOTAL EQUITY ATTRIBUTABLE TO SHAREHOLDERS OF THE PARENT COMPANY 2,021.3 3,057.7 NON-CONTROLLING INTEREST 414.2 419.1 TOTAL EQUITY 2,435.5 3,476.8 LIABILITIES NON-CURRENT LIABILITIES Loans and borrowings 6.1 260.0 359.9 Deferred tax liabilities 8.2 36.0 Employee benefit liabilities 7.12 700.8 806.4 Provisions 7.13 1,493.2 1,484.6 Lease liabilities 6.2 346.0 370.7 Trade and other liabilities 7.14 127.7 129.1 TOTAL NON-CURRENT LIABILITIES 2,935.9 3,186.7 CURRENT LIABILITIES Loans and borrowings 6.1 1,539.3 1,468.5 Financial derivatives 10.0 0.3 Current income tax liabilities 93.8 160.2 Employee benefit liabilities 7.12 256.3 296.2 Provisions 7.13 342.1 326.0 Lease liabilities 6.2 303.9 307.2 FIZ liabilities 7.5 165.9 36.6 Trade and other liabilities 7.14 5,248.2 4,192.6 Liabilities related to assets held for sale 7.10 143.5 1.5 TOTAL CURRENT LIABILITIES 8,103.0 6,789.1 TOTAL LIABILITIES 11,038.9 9,975.8 TOTAL EQUITY AND LIABILITIES 13,474.4 13,452.6
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INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF THE JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. GROUP FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2026 (All amounts in tables expressed in millions of PLN unless stated otherwise) 7 Notes to these interim condensed consolidated financial statements form an integral part hereof. CONSOLIDATED STATEMENT OF CHANGES IN EQUITY Attributable to shareholders of the Parent Company Share capital Share premium account Capital on revaluation of financial instruments Retained earnings Total Non-controlling interest Total equity AS AT 1 JANUARY 2026 1,251.9 905.0 20.5 880.3 3,057.7 419.1 3,476.8 Total comprehensive income: - - (16.3) (1,020.1) (1,036.4) (4.9) (1,041.3) - net (loss) - - - (1,038.6) (1,038.6) (4.8) (1,043.4) - other comprehensive income - - (16.3) 18.5 2.2 (0.1) 2.1 AS AT 30 JUNE 2026 1,251.9 905.0 4.2 (139.8) 2,021.3 414.2 2,435.5 AS AT 1 JANUARY 2025 1,251.9 905.0 1.2 7,128.9 9,287.0 459.8 9,746.8 Total comprehensive income: - - 34.7 (2,107.9) (2,073.2) 12.4 (2,060.8) - net profit/(loss) - - - (2,087.6) (2,087.6) 12.5 (2,075.1) - other comprehensive income - - 34.7 (20.3) 14.4 (0.1) 14.3 Dividends - - - - - (0.7) (0.7) AS AT 30 JUNE 2025 1,251.9 905.0 35.9 5,021.0 7,213.8 471.5 7,685.3
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INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF THE JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. GROUP FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2026 (All amounts in tables expressed in millions of PLN unless stated otherwise) 8 Notes to these interim condensed consolidated financial statements form an integral part hereof. CONSOLIDATED STATEMENT OF CASH FLOWS For the period of 6 months ended 30 June 2026 For the period of 6 months ended 30 June 2025 (restated) Note CASH FLOWS FROM OPERATING ACTIVITIES Cash (expenditures) in operating activities 8.1 (163.1) (962.9) Interest paid (5.0) (5.0) Income tax paid (77.7) (5.3) NET CASH FLOWS FROM OPERATING ACTIVITIES (245.8) (973.2) CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of property, plant and equipment (1,069.6) (1,786.0) including: interest and commissions paid, recognized as capitalized borrowing costs 6.3 (25.0) (29.6) Acquisition of intangible assets (7.2) (8.6) Acquisition of financial assets - (0.2) Proceeds on the sale of property, plant and equipment 32.4 1.4 Net cash flows from FIZ investments 7.5 - 2,670.1 Advance payment received for the sale of shares in PBSz and JZR 1.2 400.0 - Sale of financial assets - 0.2 Interest received 7.5 23.0 Net cash flows of the Mine Closure Fund 7.6 214.7 - NET CASH FLOWS FROM INVESTING ACTIVITIES (422.2) 899.9 CASH FLOWS FROM FINANCING ACTIVITIES Loans and borrowings received 6.1, 6.3 - 101.0 Repayment of loans and borrowings 6.1, 6.3 (39.9) (74.6) Lease payments 6.3 (85.7) (106.7) Interest and commissions paid in financing activity (48.9) (61.2) Dividends paid to non-controlling interest (0.3) - Payment under the repurchase agreement 7.14 162.6 - NET CASH FLOWS FROM FINANCING ACTIVITIES (12.2) (141.5) NET CHANGE IN CASH AND CASH EQUIVALENTS (680.2) (214.8) Cash and cash equivalents at the beginning of the period 797.0 885.0 Exchange differences from translation of cash and cash equivalents 0.3 (0.3) CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD 7.9 117.1 669.9
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INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF THE JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. GROUP FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2026 (All amounts in tables expressed in millions of PLN unless stated otherwise) 9 Notes to these interim condensed consolidated financial statements form an integral part hereof. ADDITIONAL INFORMATION NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 1. GENERAL INFORMATION 1.1. NAME, REGISTERED OFFICE AND LINE OF BUSINESS These financial statements are the interim condensed consolidated financial statements of the Jastrzębska Spółka Węglowa S.A. Group. The Jastrzębska Spółka Węglowa S.A. Group (“Group”) is comprised of Jastrzębska Spółka Węglowa S.A. (“JSW”, “Parent Company”) and its Poland-based subsidiaries. KEY INFORMATION ABOUT THE PARENT 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, 10th Commercial Division of the National Court Register, Poland REGON 271747631 NIP 633 000 51 10 CORE BUSINESS Mining, enrichment and sale of hard coal and sale of coke and hydrocarbons Jastrzębska Spółka Węglowa S.A. is the Parent Company in the Group. According to the Articles of Association, the Parent Company may operate in the territory of the Republic of Poland and abroad. The duration of JSW is unspecified. The Parent 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). The Jastrzębska Spółka Węglowa S.A. Group is the sole producer of hard coking coal and a significant producer of coke in the European Union. For years, it has held the key position on the Polish and European market for coking coal and coke, due to the high quality coking coal it produces and due to its location in proximity to its main customers. The Group also mines steam coal. As at 30 June 2026 and 31 December 2025, the Group’s majority shareholder was the State Treasury. In the 6-month period ended 30 June 2026 and in 2025, the State Treasury was the direct top-level controlling entity. 1.2. COMPOSITION OF THE GROUP As at 30 June 2026, JSW held, directly or indirectly, shares in 17 related companies, including: ▪ 16 subsidiaries (direct or indirect), ▪ 1 associated company. The investment in the associate (Remkoks Sp. z o.o.) is measured by the equity method in the consolidated financial statements. The subsidiaries are consolidated by the full method. JSW Stabilization Closed-end Investment Fund was also consolidated by the full method.
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INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF THE JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. GROUP FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2026 (All amounts in tables expressed in millions of PLN unless stated otherwise) 10 Notes to these interim condensed consolidated financial statements form an integral part hereof. Information on companies comprising the Group and consolidated by the full method is provided below: Item Company name Registered office Line of business Percentage of share capital held by Group companies 30 June 2026 31 December 2025 Parent company 1. Jastrzębska Spółka Węglowa S.A. (“JSW”) Jastrzębie-Zdrój Hard coal mining and sales, sales of coke and hydrocarbons. not applicable Direct subsidiaries 2. JSW KOKS S.A. (“JSW KOKS”) Zabrze Production of coke and hydrocarbons, electricity and heat. 96.28% 96.28% 3. Jastrzębskie Zakłady Remontowe Sp. z o.o. („JZR”) Jastrzębie-Zdrój Manufacturing and overhaul services, including the production, modernization and overhaul of mining machinery and equipment and their components, as well as services supporting coal mining and enrichment. 60.40% 60.40% 4. Przedsiębiorstwo Budowy Szybów S.A. (“PBSz”) Tarnowskie Góry Specialized mining services: designing and execution of vertical and horizontal mine workings and tunnels, construction services, lease of machinery and equipment, assembly, repairs and upkeep of machinery for the mining, quarrying and construction industries. 95.81% 95.81% 5. Przedsiębiorstwo Gospodarki Wodnej i Rekultywacji S.A. (“PGWiR”) Jastrzębie-Zdrój Provision of water and sewage-related services and discharge of saline mine water, supply of industrial water, reclamation activity and production of salt 100.00% 100.00% 6. Centralne Laboratorium Pomiarowo-Badawcze Sp. z o.o. (“CLP-B”) Jastrzębie-Zdrój Technical research services, chemical and physiochemical analyses of minerals, and solid, liquid and gaseous materials and products. 99.92% 99.92% 7. Jastrzębska Spółka Kolejowa Sp. z o.o. (“JSK”) Jastrzębie-Zdrój Railway line access, management of railway sidings and stations, maintenance of railway infrastructure structures, buildings and equipment and overhauls. 100.00% 100.00% 8. JSW IT Systems Sp. z o.o. (“JSW IT Systems”) Jastrzębie-Zdrój Comprehensive IT services, cybersecurity, software and data processing. 100.00% 100.00% 9. JSU Sp. z o.o. (“JSU”) Jastrzębie-Zdrój Insurance intermediation and insurance administration pertaining to insurance claims handling, tourist and hotel activity. 100.00% 100.00% 10. JSW Logistics Sp. z o.o. (“JSW Logistics”) Katowice Provision of services related to the operation of railway sidings, the transport of coal and coke, freight transport and the maintenance and repair of rolling stock. 100.00% 100.00% 11. JSW Szkolenie i Górnictwo Sp. z o.o. (“JSW SiG”) Jastrzębie-Zdrój Mining operations, including production support and services related to the mining of JSW’s deposits. Provision of training services. 100.00% 100.00% Indirect subsidiaries 12. BTS Sp. z o.o. (“BTS”) Dąbrowa Górnicza Transportation, general construction and catering services. 100.00% 100.00% 13. ZREM-BUD Sp. z o.o. (“ZREM-BUD”) Dąbrowa Górnicza Overhaul services for mechanical machinery and equipment, electrical equipment and control and measuring instruments. 100.00% 100.00% 14. CARBOTRANS Sp. z o.o. (“Carbotrans”) Zabrze Freight transport by road. 100.00% 100.00% 15. JZR Dźwigi Sp. z o.o. (“JZR Dźwigi”) Jastrzębie-Zdrój Services related to the manufacture, repair and maintenance of machinery and equipment, as well as inspections and servicing of internal transport equipment. 100.00% 100.00% 16. JSW Ochrona Sp. z o.o. (“JSW Ochrona”) Jastrzębie-Zdrój Security services and auxiliary services related to maintaining order. 100.00% 100.00% 17. JSW Zwałowanie i Rekultywacja Sp. z o.o. (“JSW Zwałowanie i Rekultywacja”) Jastrzębie-Zdrój Provide services including disposal of post-mining waste and reclamation. 100.00% 100.00%
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INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF THE JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. GROUP FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2026 (All amounts in tables expressed in millions of PLN unless stated otherwise) 11 Notes to these interim condensed consolidated financial statements form an integral part hereof. Item Company name Registered office Line of business Percentage of share capital held by Group companies 30 June 2026 31 December 2025 Other entities 18. JSW Stabilization Closed-end Investment Fund (“JSW Stabilization FIZ”, “Fund”)* Warsaw Investment of cash raised through private proposals to purchase investment certificates, in the instruments as specified in the Articles of Association. 100.00% 100.00% * Percentage share determined based on the percentage exposure of the Parent Company in the Fund’s assets portfolio. PRELIMINARY SHARE SALE AGREEMENT FOR PBSz SHARES AND JZR SHARES On 9 March 2026, Jastrzębska Spółka Węglowa S.A. (“JSW”, “Company”) and Agencja Rozwoju Przemysłu S.A. (“ARP”, “Buyer”) entered into a preliminary agreement for the sale of shares in Przedsiębiorstwo Budowy Szybów S.A. (“PBSz”) and Jastrzębskie Zakłady Remontowe Sp. z o.o. (“JZR”) (“PRE-SPA”). The subject matter of the PRE-SPA is the sale by JSW of PBSz shares representing 95.81% of the share capital and entitling the holder to 95.81% of votes at the PBSz Shareholder Meeting, as well as JZR shares representing 59.39% of the share capital and entitling the holder to 59.39% of votes at the JZR Shareholder Meeting. After the transaction is completed, JSW will no longer hold any shares in PBSz, but will remain the owner of JZR shares representing 1.01% of the share capital and entitling it to 1.01% of the votes at the JZR Shareholder Meeting. The preliminary purchase price for PBSz shares was set at PLN 274.4 million and preliminary purchase price for JZR shares at PLN 791.6 million. The preliminary purchase prices may be adjusted based on a mechanism set forth in the PRE-SPA. On the date of the PRE-SPA, the Buyer made an advance payment to JSW in the total amount of PLN 400.0 million, out of which PLN 103.0 million was allocated to the PBSz share sales price and PLN 297.0 was allocated to the JZR share sales price. The remaining portion of the sales price will be paid upon the satisfaction of the conditions precedent set forth in the PRE-SPA on the transaction closing date. On 30 June 2026, Annex no. 1 to the PRE-SPA was signed, by the power of which the final date was moved from 30 June 2026 to 31 July 2026, and after the end of the reporting period, i.e. on 31 July 2026, Annex no. 2 was signed, which moved the final date of the transaction was moved to 31 October 2026. The PRE-SPA provides for securing the Purchaser's claim for the refund of advance payments in the event that the Transaction does not materialize through a first-ranking registered pledge on JZR Shares, a first-ranking registered pledge on PBSz Shares, a registered pledge on specific assets belonging to KWK Borynia-Zofiówka, and a mortgage on specific real estate comprising KWK Borynia-Zofiówka. The transaction is part of JSW’s efforts to divest, improve liquidity, and stabilize its financial position. After the end of the reporting period, i.e., on 17 August 2026, the JSW Management Board adopted a resolution approving the submission of an application to ARP for a loan in the amount of PLN 1,066.0 million. This financing is intended to replace the sale of shares in PBSz and JZR to ARP, as previously contemplated in the PRE-SPA. The proposed loan amount corresponds to the total preliminary purchase price of shares in PBSz and JZR set forth in the PRE-SPA.
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INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF THE JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. GROUP FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2026 (All amounts in tables expressed in millions of PLN unless stated otherwise) 12 Notes to these interim condensed consolidated financial statements form an integral part hereof. 2. ACCOUNTING POLICY 2.1. BASIS OF PREPARATION OF THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS These interim condensed consolidated financial statements of the Jastrzębska Spółka Węglowa S.A. Group have been drawn up in compliance with International Accounting Standard (“IAS”) 34 “Interim Financial Reporting”. These interim condensed consolidated financial statements are a fair presentation of the Group’s financial standing and its assets as at 30 June 2026, its operating results and cash flows for the 6-month period ended 30 June 2026. The interim condensed consolidated financial statements do not include all the information and disclosures required for annual consolidated financial statements and they should be read jointly with the Consolidated Financial Statements of the Jastrzębska Spółka Węglowa S.A. Group for the financial year ended 31 December 2025 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 consolidated financial statements are consistent with those applied to draw up the Group’s consolidated financial statements for the financial year ended 31 December 2025, except for the rules ensuing from the application of amendments to the standards described in Note 2.3. These interim condensed consolidated financial statements have been drawn up in accordance with the historical cost principle, except for financial derivatives, investments in the FIZ assets portfolio (including: debt securities, covered bonds, FIZ derivatives), and interests in other entities that are measured at fair value. The functional currency of all Group companies and the presentation currency of these statements is the Polish zloty (“PLN”). These interim condensed consolidated 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 consolidated financial statements for the 6-month period ended 30 June 2026 have been reviewed by a statutory auditor (audit firm PricewaterhouseCoopers Polska Sp. z o.o. Audyt Sp.k.). Data for the period of 3 months ended 30 June 2026 have not been reviewed by a statutory auditor. These interim condensed consolidated financial statements form part of the consolidated report which also includes the Interim Condensed Standalone Financial Statements of Jastrzębska Spółka Węglowa S.A. for the 6-month period ended 30 June 2026 and the Management Board Report on the Activity of the Jastrzębska Spółka Węglowa S.A. Group for the 6-month period ended 30 June 2026. 2.2. GOING CONCERN ASSUMPTION These interim condensed consolidated financial statements have been prepared based on the assumption that the Group would continue as a going concern for at least 12 months from the end of the reporting period. Changes in the Group’s composition during the reporting period are presented in Note 1.2. When assessing the Group’s ability to continue as a going concern, the JSW Management Board regularly analyzes 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, among others, adverse market factors in previous periods that directly affected the financial position of JSW and the Group. The Group generated negative results in the reporting period, including a net loss of PLN (1,043.4) million and negative net change in cash and cash equivalents of PLN (680.2) million, while cash and cash equivalents as at 30 June 2026 amounted to PLN 117.1 million (PLN 797.0 million as at 31 December 2025). The Group’s financial and operating performance in H1 2026 was primarily affected by persistently unfavorable global macroeconomic conditions. The global macroeconomic environment is currently highly volatile which results from: rising costs of conducting business activity, the war in Ukraine, the effects of restrictions on Russia, escalation of the conflict in the Middle East, recession on the EU steel market, the danger of an energy crisis in Europe, increasing supply of coke as a result of expansion of Indonesian coke, growing commercial protectionism (coke import quotas in India, customs tariffs imposed by the US inter alia on steel, customs tariffs imposed by other countries in response to the US’ actions) and the threat of a slowdown in global economic growth, or recession. The Group’s contract coking coal prices in the period of 6 months ended 30 June 2026 were driven by quotations in the period from October 2025 to May 2026. The average quoted price of PLV coal during this period was 221.51 USD/t FOB Australia, up 15.1% from the corresponding period of the previous year (192.48 USD/t from October 2024 to May 2025). Contract prices for coke sold by the Group in the 6 months ended 30 June 2026 were influenced by quotations from October 2025 to March 2026. The average quoted price of Chinese coke on an FOB basis (62/60 CSR) during that period was 217.21 USD/t, down 9% from the corresponding period of the previous year (238.71 USD/t from October 2024 to March 2025). The average quoted price of coke at ARA ports from October 2025
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INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF THE JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. GROUP FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2026 (All amounts in tables expressed in millions of PLN unless stated otherwise) 13 Notes to these interim condensed consolidated financial statements form an integral part hereof. to March 2026 was 259.93 USD/t, down 3.1% from the corresponding period of the previous year (268.11 USD/t from October 2024 to March 2025). The above market conditions and quotes were reflected in the prices obtained by the Group. The total actual average coal price in the 6-month period ended 30 June 2026 was 633.94 PLN/t and was 1.2% higher than one in the corresponding period of the previous year. The average price of coking coal in this period was 745.35 PLN/t (up 4.3% compared to the corresponding period of the previous year), and the average price of steam coal was 312.41 PLN/t (up 0.9% compared to the corresponding period of the previous year). The Group’s coking coal prices were adversely affected by, among others, a change in the structure of sales and exchange rate fluctuations. The average price of coke sold by the Group in the 6 months ended 30 June 2026 was 956.60 PLN/t, down 8.5% from the corresponding period of the previous year. Following a fatal accident at a Chinese mine in May 2026, tighter safety inspections in China reduced the supply of domestically produced coal to the Chinese market and increased purchases of imported coal. As a result, quoted prices of Australian Premium Low Vol coals rose sharply, reaching 284.9 USD/t FOB Australia on 10 September 2026. On 18 September 2026, the National Development and Reform Commission, the National Energy Administration and the National Mine Safety Administration jointly called for suspended mines to reopen more quickly and for coal output to increase to ensure China’s energy security. The announcement was seen as a sign that domestic coal supply would improve, and quotations fell. Better market conditions could benefit sales in future periods, however, as at the date this report was approved, no improvement in financial performance had been included in the Restructuring Plan because the duration and sustainability of the upward price trend remained uncertain. Conditions in the EU steel market are expected to improve. Measures taken include: ▪ the full implementation of the Carbon Border Adjustment Mechanism (CBAM) from the beginning of the year; ▪ the European Commission’s introduction of new legislation to protect the EU steel sector from the effects of global overcapacity, stemming directly from the Steel and Metals Action Plan. The new mechanism took effect in July 2026, replacing the measure that expired in June 2026. It maintains trade protection consistent with WTO rules, including through: duty-free import quotas set at 18.3 million tons (which is 47% lower than in 2024), a tariff rate of 50% (up from the previous 25%) to be applied once the quota is exceeded, the introduction of a universality principle: the quota will now cover all developing countries, the introduction of a “melt & pour” principle, which defines the steel’s origin based on the country where it was originally melted and poured, in order to improve traceability and prevent the circumvention of trade rules. This package has been welcomed by European steel producers and may lead to an improvement in the European steel industry, which could also affect JSW. In anticipation of stronger demand within the EU, blast furnaces are being restarted, including at ArcelorMittal’s plants in Dąbrowa Górnicza, Gijón and Fos-sur-Mer, and at the Dillingen steelworks. Hüttenwerke Krupp Mannesmann has also begun preparations to restart a blast furnace. Higher steel production in the EU could increase demand for coking coal and coke. According to worldsteel, EU steel production in July 2026 was 3.8% higher than in July 2025. Production in the first seven months of 2026 was 0.4% higher than in the corresponding period of the previous year. As a result of the decline in the Group’s sales revenues over the last two years, driven by low prices and unfavorable market conditions, the Company experienced a significant reduction in cash balances. As at 30 June 2026, as in the previous periods, the financial position of the Group indicates that current assets remained lower than current liabilities (the surplus of current liabilities over current assets was PLN 5,532.7 million as at 30 June 2026). In response to persisting price pressures, the Group undertook restructuring measures that reduced costs by nature and MCC costs, improving the cost efficiency of its operations. As a result, supported by the continued implementation of remedial measures, the Group recorded a gross loss on sales of PLN (261.9) million in H1 2026, which is PLN 944.1 million lower than in the corresponding period of the previous year (gross loss on sales in H1 2025 was PLN (1,206.0) million). The market conditions that directly translate into the prices realized by the Group are discussed in detail in Section 6. of the Management Board Report on the activity of the Jastrzębska Spółka Węglowa S.A. Group for the period of 6 months ended 30 June 2026. The deterioration of the financial position led to a situation, in which the covenants/financial ratios set forth in the Financing Agreement of 12 April 2023 were not met as at 31 December 2025 and in subsequent quarterly periods. According to Annexes to the Financing Agreement, the obligation to meet the covenants and to satisfy Sustainability-linked Goals was suspended until 30 October 2026, which means that the Financing Institutions agreed not to treat breaches of covenants as Events of Default.
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INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF THE JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. GROUP FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2026 (All amounts in tables expressed in millions of PLN unless stated otherwise) 14 Notes to these interim condensed consolidated financial statements form an integral part hereof. Grounds for the going concern assumption On 8 December 2025, the Management Board of JSW decided to approve the Preliminary Version of the JSW Restructuring Plan for 2026-2035, including its subsidiaries (“Remedy Plan”), together with the Strategic Financial Model, which was submitted to the Financial Institution Consortium and to the Trade Unions. On 18 December 2025, the Management Board of JSW adopted resolutions to adopt the JSW Technical and Economic Plan for 2026 and the adoption of the Technical and Economic Plan of the JSW Group for 2026. These documents reflect the results of corrective actions that had already begun in previous periods in response to the deteriorating financial standing of JSW and the Group. Due to changes introduced to significant elements of the aforementioned documents, which impacted the situation of JSW and the JSW Group, including, among others: ▪ the amended Act on the Functioning of the Hard Coal Mining Industry, ▪ the impact of the Memorandum of Agreement of 13 February 2026 concluded with the Trade Unions, ▪ changes in financial instruments supporting the liquidity of JSW and the JSW Group, ▪ and the extension of the planning horizon to include the period from January to April 2027, in order to confirm the going concern of JSW and the JSW Group, it became necessary to adopt a new Technical and Economic Plan (“TEP”) for JSW and the JSW Group for 2026, which was approved by the JSW Management Board on 23 April 2026, reviewed by the Supervisory Board on 27 April 2026 and updated on 8 September 2026. The September 2026 update of the TEP assumed the unchanged level of 13.3 million tons of coal extraction compared to the TEP of April 2026. The following areas were also updated: the projected average selling price for coal in 2026 is PLN 660.97 per ton, the unit mining cash cost of coal (unit MCC) for 2026 is assumed at approximately 588 PLN/t (unit MCC for 2025: 738.02 PLN/t), the forecast level of capital expenditure for 2026 assumed for the JSW Group is approximately PLN 2.4 billion (for JSW: about PLN 1.9 billion). Assumptions regarding cost savings related to the planned reduction in headcount, in connection with the possibility of using safety net benefits, as well as those arising from the agreement concluded with the Trade Unions on 13 February 2026, are presented in a subsequent section of this Note. The Group identifies risk relating to the parameters assumed in the TEP in connection with achievable prices and with the achievement of the assumed coal production volume: ▪ Prices – the risk entails in particular the high volatility of coking coal and coke prices dependent on global economic conditions, which directly affects the revenues generated, as described in detail in Note 9.3.1 to these financial statements. ▪ Production – the Group has taken production risk into account in subsequent forecasts. The company collaborated with the Polish Academy of Sciences to set a realistic production level, taking into account the statistical risks of mining of the respective deposits, at 13.6 million tons, which was reflected in the Remedy Plan dated 8 December 2025 forming the basis for the 2026 Technical and Economic Plan adopted on 18 December 2025. Under the current TEP adopted on 23 April 2026 and updated on 8 September 2026, a production volume of 13.3 million tons has been assumed. As JSW and the JSW Group require immediate financial stabilization and are undergoing extensive operational restructuring to restore their cost competitiveness, JSW was obligated to present the Financing Institutions with a long-term restructuring plan. The plan had to be acceptable to each Lender and based on realistic, credible assumptions supported by identified sources of financing. To fulfil this obligation under the external financing documents, JSW submitted its Remedy Program to the Financial Institution Consortium and analyzed by an external advisor selected by the Banking Consortium. As a result of further analysis and consideration of the audit recommendations, JSW’s Management Board adopted the Remedy Program on 16 September 2026. The Remedy Program provides a genuine basis for rebuilding the liquidity position of JSW and of the JSW Group and achieving permanent operational profitability. JSW’s financial projections point to a prospective capacity to repay the financial liabilities in full, provided that the liquidity-enhancing measures described later in this note are implemented. The JSW Management Board prepared these financial statements on a going concern basis, relying on the data resulting from the Remedy Program, indicating the following liquidity-enhancing measures intended to cover the liquidity gap by cash generated in operating activities over the next 12 months: Pillars and areas of the Remedy Program: 1. State Treasury: a) deferral and installment payment of ZUS contributions: in 2025 and in Q1 and Q2 2026, JSW received approval from ZUS to defer contributions and to pay them in installments for the period from May 2025 to December 2026. As proposed, the arrangements cover three periods: May to October 2025, November 2025 to June 2026, and July to December 2026. The total amount of contributions covered by the agreements and payable in installments is PLN 1,066 million as of the end of September 2026 (this applies to contributions for the period
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INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF THE JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. GROUP FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2026 (All amounts in tables expressed in millions of PLN unless stated otherwise) 15 Notes to these interim condensed consolidated financial statements form an integral part hereof. from May 2025 to July 2026). On 4 September 2026, JSW signed the first of six agreements (concerning contributions for July 2026), which will form part of the third installment composition. Starting in March 2026, JSW began making payments under the installment arrangement for the period from May to October 2025. By September 2026, it had repaid PLN 121 million. In September 2026, JSW began making payments under the second installment arrangement for the period from November 2025 to June 2026, and had repaid PLN 20 million. Under the concluded agreements, it is deemed that the payer of contributions (JSW) has no debt in respect of contributions if it pays due contributions on a timely basis and in the amounts specified in the agreement, and has no debt in respect of contribution liabilities not covered by the agreement. Also JSW KOKS received approval from ZUS to defer contributions for the months of June, July and August 2025, totaling PLN 26.0 million, and to pay the deferred contributions in installments. According to the schedule, JSW KOKS will be required to make 36 payments, with due dates ranging from 11 May 2026 to 20 April 2029. From May through September 2026, JSW KOKS paid installments PLN totaling 1.3 million; b) inclusion of JSW under the Act on the Functioning of the Hard Coal Mining Industry: the Act contains headcount reduction mechanisms by enabling employees to benefit from safety net instruments (Article 11 aa) in the form of mining leaves, coal preparation plant leaves, or one-off cash severance payments. In its forecasts, JSW assumes a total of 4,248 departures. The liquidity effects have been projected starting from May 2026 (in 2026, in accordance with the Remedy Program, the estimated savings in payroll cost, including payroll taxes, will amount to approximately PLN 272 million). On 28 April 2026, the Council of Ministers adopted a resolution approving a program entitled: Support Program for the Coking Coal Mining Sector in Poland – Safety Net Benefits, which will enable the conclusion of a grant agreement and the implementation of an orderly workforce restructuring without the need to decommission JSW’s mines. On 22 May 2026, a grant agreement was signed regarding the financing of one-off cash severance pays. Under the amendment to the act, individuals with at least three years of service who decide to permanently leave the hard coal mining sector will be eligible for the one-off cash severance pay program, and the severance pay has been set at PLN 170 thousand. The program is expected to cover 1,156 employees in 2026, and the total grant awarded to fund these benefits in 2026 is PLN 196.5 million. On 26 June 2026, a grant agreement was signed regarding the financing of the benefits due to JSW employees on mining leave and leave for coal preparation plant employees. Mining leave is available to employees who have no more than 5 years remaining until they become eligible for retirement. For employees of coal processing plants, this leave is granted for a period of up to 4 years. During this leave, the employee is exempt from the obligation to work and receives a benefit equal to 80% of their salary, calculated in the same manner as vacation pay. According to the assumptions, in 2026, the mining leave program and the leave program for employees of coal preparation plants is expected to cover 3,092 people. The total value of the subsidy allocated to finance the benefits covered by the Agreement is PLN 287 million. The Agreement encompasses the financing of benefits in 2026. By 31 August 2026, 668 people had received one-off cash severance payments and 2,033 had taken mining leave or coal preparation plant leaves. Given the scale of departures, safety net measures have been implemented, including the verification of staffing levels for key positions; c) engagement of the Industrial Development Agency S.A. (“ARP”): the mission of ARP, as a State Treasury company of special importance to the Polish economy and a company comprising the system of development institutions, is to support Polish industry and promote its growth. JSW has obtained funding from ARP and plans to obtain further funds to reorganize its operations and reduce costs. The JSW Management Board expects to obtain PLN 2.89 billion for a 12-year period to finance restructuring measures under three loan agreements, including the following: - acquisition of JSW assets or a planned conversion of the transaction into a loan – on 9 March 2026, the Preliminary Share Sale Agreement was signed. The subject matter of the agreement is the sale of PBSz shares representing 95.81% of PBSz’s share capital and JZR shares representing 59.39% of the share capital, to the Industrial Development Agency. After the transaction is finalized, JSW will no longer hold any shares in PBSz, but will hold shares in JZR representing 1.01% of the share capital. The preliminary purchase price for PBSz shares was set at PLN 274.4 million and for JZR shares at PLN 791.6 million. A capital injection provided ARP with the funds required to complete the acquisition of PBSz and JZR shares. Towards the execution of the transaction, ARP paid an advance in March 2026 in the amount of PLN 400.0 million. The closing of the transaction is subject to the satisfaction of conditions precedent by 30 June 2026; Under the annexes, the final date of the transaction was moved to 31 October 2026. After the end of the reporting period, on 17 August 2026, JSW applied to ARP for a loan of PLN 1,066.0 million. Based on the JSW Management Board’s current knowledge and assumptions, the loan would be granted in place of the sale of the PBSz and JZR shares. The Financial Model reflects this change from an equity transaction to debt financing: JSW would take out a loan of PLN 1,066.0 million, of which PLN 400.0 million would be applied towards repaying the advance received from ARP under the PRE-SPA. - loans – the Remedy Plan of 8 December 2025 provided for the drawdown in 2026 of an external loan from the Reprivatization Fund in the amount of PLN 2.9 billion, as a targeted instrument for financing JSW's investment program. Due to objective circumstances, in the plan update, this instrument was changed to an ARP loan in the amount of PLN 2.0 billion. The Act of 17 April 2026, amending the Act on the System of Development Institutions, which includes a change to the objectives of the ARP’s activities to allow it to grant a loan to JSW, was
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INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF THE JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. GROUP FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2026 (All amounts in tables expressed in millions of PLN unless stated otherwise) 16 Notes to these interim condensed consolidated financial statements form an integral part hereof. published in the Journal of Laws on 12 May 2026. At the same time, JSW obtained confirmation from the Ministry of State Assets (“MAP”) regarding actions taken by MAP to grant the loan through ARP: ▪ on 6 August 2026, a loan agreement for a loan up to PLN 824.1 million was concluded between JSW and ARP, in accordance with the provisions of the Act of 4 July 2019 on the System of Development Institutions. The purpose of the loan is to finance JSW’s operations during the implementation period of the JSW Group’s Remedy Program and to finance the remedial initiatives covered by this Remedy Program, which involves reorganizing how the JSW Group functions with the aim of reducing operating expenses and optimizing how the JSW Group operates. The loan will be repaid quarterly starting in July 2029. As at the date of approval of this report, JSW had received funds from a loan in the amount of PLN 600 million; ▪ The Remedy Program also provides for the disbursement of the remaining portion of the PLN 2.0 billion in financing – in the form of a PLN 1.0 billion loan – in three tranches to be disbursed in December 2026 and in January and February 2027. JSW’s Management Board confirms that the process of providing financial resources by ARP is being carried out and, as at the date of approving this report, no formal or legal event or circumstance had arisen that would indicate a material risk that the funding described above would not be transferred to JSW within the next 12 months. however formal agreements for the entire amount of the expected financing have not been signed. 2. Trade Unions: a) conclusion of an employment guarantee agreement: on 17 November 2025, due to the difficult situation of JSW, the JSW Management Board concluded an annex to the Collective Bargaining Agreement of 31 March 2021 with the Representative Trade Union Organizations operating at JSW. Under the agreement, it was determined that employment guarantees would not apply to: employees employed in the Management Board Office and the Production Support Unit, as well as mine employees employed in white collar positions on the surface (with the exception of those employed in the Coal Preparation Department and supervisors on the surface); employees eligible for retirement; and employees who regularly disrupt the organization of work. The possibility of reducing headcount, correlated with the ability of JSW employees to make use of safety net benefits, and the resulting potential cost savings, has been reflected in the TEP in the area of headcount reduction; b) adaptation of labor costs to JSW’s financial capacity: JSW has taken action to adjust cost levels to prevailing low coal and coke prices, including negotiations with Representative Trade Union Organizations regarding remuneration levels. On 13 February 2026, suspension and implementation memorandums of agreement were signed, under which payments of certain benefits were suspended or deferred. The draft Suspension Memorandum of Agreement was subject to a referendum among JSW’s employees that brought a positive result. Based on the headcount level as at 1 February 2026, the Group estimates the total savings in 2026-2027 resulting from the Memorandum of Agreement at approximately PLN 1.2 billion (in 2026 approx. PLN 733 million). The subject matter of the Memorandum of Agreement is the suspension of the application of the provisions of certain collective agreements concluded with trade unions and internal regulations in force at JSW, and the temporary application of less favorable terms and conditions of employment than those resulting from employment contracts concluded with employees. Among the key changes are the suspension of the right to the 14th salary for 2026, the postponement of the payment of the 14th salary for 2025 to 2027, as well as the introduction of the payment of the St. Barbara’s Day award in installments for 2025-2027, the suspension of the payment of the free coal allowance and the reduction of other benefits (including the reduction of meals). The Suspension Memorandum of Agreement came into effect on 1 February 2026, and was concluded for a period of 23 months, i.e. until 31 December 2027. 3. Financial Institutions: The Parent Company is at the final stage of negotiations with the Financial Institutions, aimed at agreeing on long-term repayment terms of the loan concluded under the Financing Agreement of 12 April 2023. On 9 March 2026 an Annex to the Financing Agreement was signed, under which certain Parent Company obligations were suspended until 31 August 2026. The signing of the annex was intended to allow JSW to prepare the process of deep business restructuring and restructuring of the Financing Agreement, while simultaneously eliminating the risk of immediate acceleration of the debt under the loan granted by the Financial Institution Consortium. By the agreed deadline JSW submitted and agree with the Consortium a Restructuring Plan specifying financing sources to support loan installment repayments in accordance with a schedule proposed by JSW, including a 2-year installment deferral. The Restructuring Plan was reviewed by an external advisor selected by the Banking Consortium. The above measures aim to finalize and sign an Annex or a Restructuring Agreement that will specify the terms of the long-term debt restructuring. A key risk remains that if the Financing Institutions do not accept the Restructuring Plan containing the deferred loan installment repayment schedule, the Parent Company will have to repay the installments based on the existing repayment schedule and on the current terms. The JSW Management Board believes that it has taken all the steps needed to ensure that the deferred scheduled is adopted and no event of default arises as a result of a failure to meet the covenants. After the end of the reporting period, additional annexes to the Financing Agreement were entered into, pursuant to which the suspension period was extended through 30 October 2026. It was also agreed that the covenant to maintain the Net Financial Debt/EBITDA ratio and the covenant
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INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF THE JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. GROUP FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2026 (All amounts in tables expressed in millions of PLN unless stated otherwise) 17 Notes to these interim condensed consolidated financial statements form an integral part hereof. concerning the Guarantors’ share of the Group’s total assets and EBITDA would not apply to the calculation periods ended on 31 March 2026, 30 June 2026 and 30 September 2026. JSW and the Consortium plan to enter into a long-term Financing Restructuring Agreement by 30 October 2026. The terms and conditions and the wording of the long-term Financial Restructuring Agreement are being negotiated between the Consortium and JSW. A key assumption of the Remedy Program is that the Consortium will agree that any failure to comply with the covenants through 2027 will not constitute a breach of the Financing Agreement. JSW also seeks to defer loan installment repayments by two years and extend the repayment period of the entire consortium financing by 2 years. The above liquidity-enhancing and cost-saving measures are planned to be implemented between 2026 and 2027, and the JSW Management Board considers their execution to be reasonably probable. The JSW Management Board believes that it is feasible to replace the sale of JSW’s assets (PBSz shares and JZR shares) with a PLN 1,066.0 million loan, enter into an additional PLN 1.0 billion loan agreement with ARP, and agree long-term repayment terms for the loan under the Financing Agreement of 12 April 2023. However, there is uncertainty whether all these measures will be completed within the next 12 months. The implementation of the aforementioned actions allows a conclusion that JSW and the Group are able to continue as a going concern for at least the next 12 months, i.e. liquidity forecasts for the subsequent 12-month period assume that positive cash balances will be maintained, subject to the implementation of the above assumptions. The going concern assumption is based on the cash flow projections adopted by JSW’s Management Board in the JSW S.A. Remedy Program for 2026-2035, including Subsidiaries, with Operationalization (Restructuring Plan). The projections extend to September 2027 and assume implementation of the liquidity-enhancing measures described above. JSW has information from the Ministry of State Assets and the Ministry of Energy addressed to Financial Institutions and ARP (Comfort Letter of 4 March 2026) regarding actions taken by state administration bodies to ensure the continuation of JSW’s operations as an entity of significant economic importance to the EU. If any of the above assumptions and liquidity measures outlined above, that are in progress as at the date of approval of these financial statements, are not implemented, in particular in the area of: ▪ the assumptions for the Remedy Program, concerning primarily the sales prices that can be obtained, and achieving the assumed mining volume, while at the same time implementing the cost savings specified in the Remedy Program, ▪ obtaining a PLN 1,066.0 million loan from ARP to replace the sale of JSW’s assets (PBSz and JZR shares) or completing the sale of JSW’s assets (PBSz and JZR shares) and obtaining a PLN 1.0 billion loan from ARP; ▪ the successful completion of negotiations with the Financial Institutions conducted based on the assumptions of annexes to the Consortium Agreement, including the agreement of long-term terms for the restructuring of the financing; The Group would not be able to maintain liquidity within 12 months from the date of this report and ensure continuation of the Group as a going concern. Accordingly, it should be noted that there is considerable uncertainty, which may cast substantial doubt on the Group’s ability to continue as a going concern. As a result, the Group may be unable to realize the expected economic benefits from its assets and to discharge its liabilities in the normal course of business. These interim condensed consolidated financial statements have been prepared with a going concern assumption and does not contain any corrections of values and classification of assets and liabilities, which could prove to be necessary if the Group was unable to continue as a going concern. 2.3. NEW STANDARDS, INTERPRETATIONS AND THEIR AMENDMENTS a) Application of amendments to standards The following are applicable as of 1 January 2026: ▪ amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures – Classification and Measurement of Financial Instruments ▪ amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures – Contracts Referencing Nature-dependent Electricity ▪ 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 Amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures – Classification and Measurement of Financial Instruments apply to the Group’s operations due to the financing agreement concluded by JSW for Sustainability-Linked Loan financing. However, these amendments have no material effect on the classification and valuation of financial instruments (loans and borrowings) and disclosures.
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INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF THE JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. GROUP FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2026 (All amounts in tables expressed in millions of PLN unless stated otherwise) 18 Notes to these interim condensed consolidated financial statements form an integral part hereof. 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 Group’s operations or will not exert a material impact on the interim condensed consolidated financial statements. b) Standards already published and endorsed in the EU, but not yet effective When approving these interim condensed consolidated financial statements financial statements, the Group has not elected the early application of the following standard that has been published and endorsed in the EU but has not yet become effective. The Group will apply the standard to the extent applicable to its operations from or after the effective date: Standard Effective date * IFRS 18 Presentation and Disclosure in Financial Statements 1 January 2027 * Annual periods beginning on or after the specified date. 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 Group and issues related to the aggregation and disaggregation of information contained in the financial statements. IFRS 18 will affect the consolidated financial statements, however the Group has not yet completed a detailed analysis as at the moment of approval of these interim condensed 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 standards and amendments to standards, which as at the date of these interim condensed consolidated 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 19 Subsidiaries without Public Accountability: Disclosures 1 January 2027 Amendments to IFRS 19 Subsidiaries without Public Accountability: Disclosures 1 January 2027 Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates – Translation to a Hyperinflationary Presentation Currency 1 January 2027 Amendments to IAS 28 Investments in Associates and Joint Ventures, 1 January 2027 IFRS 20 Regulatory Assets and Regulatory Liabilities 1 January 2029 * Annual periods beginning on or after the respective date, as specified by the IASB, are subject to change after their approval by the EU. IFRS 19 Subsidiaries without Public Accountability: Disclosures, amendments to IFRS 19, amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates, amendments to IAS 28 Investments in Associates and Joint Ventures and IFRS 20 Regulatory Assets and Regulatory Liabilities, will not affect the interim condensed consolidated financial statements. 2.4. CHANGE IN SIGNIFICANT ESTIMATES AND MATERIAL JUDGMENTS Preparation of the interim condensed consolidated 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 Group. 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. Material judgments concerning safety net benefits During the 6 months ended 30 June 2026, the JSW Management Board exercised judgment in recognizing, measuring and presenting settlements relating to safety net benefits granted under Article 11aa of the Act of 7 September 2007 on the Functioning of the Hard Coal Mining Industry (the “Act”). Under the Act, as amended with effect from 1 January 2026, and the Support Program for the Coking Coal Mining Sector in Poland — Safety Net Benefits, adopted by Resolution of the Council of Ministers No. 113 of 28 April 2026 (the “Safety Net Program”), JSW entered into two grant
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INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF THE JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. GROUP FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2026 (All amounts in tables expressed in millions of PLN unless stated otherwise) 19 Notes to these interim condensed consolidated financial statements form an integral part hereof. agreements with the Ministry of Energy to fund benefits in 2026, i.e. the agreement governing one-off cash severance payments (of 22 May 2026), and the agreement on the funding of benefits for employees taking mining leaves or coal preparation plant leaves (of 26 June 2026). The safety net program establishes a multiyear mechanism for funding safety net benefits from the state budget for the period of 2026–2031. This government program will be implemented through annual grant agreements. The safety net program does not provide for the closure of JSW’s mines or a reduction in production capacity. The support is social in nature and its sole purpose is to finance safety net benefits for employee as part of employment restructuring. This process is designed to give employees stability and predictability while maintaining JSW’s operational continuity. The economic cost of the safety net benefits is allocated to the public funding system, not to JSW’s operations. Under the grant agreements, JSW acts only as the entity administering the award and payment of benefits to eligible individuals. The grant funds are not intended to finance JSW’s activities, to reduce its production capacity or to phase out its hard coal mining operations, to cover its operating expenses, or to reimburse expenditures it has incurred. The funds must be passed on to the beneficiaries specified in the law (the act on the functioning of the hard coal mining industry) in connection with the employment restructuring. The funds received for the payment of safety net benefits do not meet the criteria for a government grant recognized under IAS 20 Accounting for Government Grants and Disclosure of Government Assistance: JSW is not their economic beneficiary but acts solely as an intermediary in passing them on to eligible individuals. JSW is not implementing a restructuring program that meets the criteria set out in paragraphs 10 and 70 of IAS 37 Provisions, Contingent Liabilities and Contingent Assets. The safety net program does not anticipate the discontinuation of operations or their significant part, the closure of organizationally or geographically distinct units, or a fundamental reorganization of the business model. Its purpose is to provide social support by funding safety net benefits in connection with employment restructuring. The safety net benefits paid under Article 11aa of the Act do not arise from restructuring undertaken by JSW; they arise from a statutory obligation towards individuals who meet specified legal conditions. Accordingly, the Group has not identified grounds under IAS 37 for recognizing a restructuring provision. At the same time, the benefits discussed in Article 11aa of the Act are not paid in exchange for work performed, because eligibility does not depend on an employee performing work for the employer, but on meeting specific conditions set by the legislature, which the Group cannot determine independently. Therefore, the safety net benefits do not meet the criteria for classification as employee benefits within the meaning of IAS 19 Employee Benefits. Based on the judgment of the JSW Management Board, safety net benefits form part of a special, multiyear employment restructuring program, with systemic funding provided by the State Treasury and implemented through annual funding periods. The JSW Management Board assumes that, as at the end of the reporting period, there is no basis for recognizing a long-term liability for the full value of future benefits over the remaining term of the safety net Program. The Company recognizes obligations covered by the statutory grant funding mechanism that has been effectively launched and funded for the relevant year, while future periods of the Safety Net Program will be recognized at the moment the funding arrangements provided for by the Act are determined for the year. In these condensed interim consolidated financial statements, the Group recognizes the provision of safety net benefits funded by the state and granted under Article 11aa of the Act as amounts to be settled in accordance with the terms and conditions of grant agreements, without recognizing them in profit or loss. The Company does not recognize a restructuring provision or an employee benefit liability related to those benefits. Other material judgments made by the JSW Management Board during the preparation of these condensed interim consolidated financial statements are presented in the relevant notes. They relate primarily to: the classification of PBSz’s operations as discontinued operations and of the company’s assets and liabilities as a disposal group held for sale, as well as the absence of grounds for classifying JZR’s operations as discontinued operations and its assets and liabilities as a disposal group held for sale, in connection with the signed preliminary share purchase agreement for PBSz and JZR shares (Note 4.7.); the coal sale agreement with an obligation to repurchase the coal (Note 7.14). During the 6 months ended 30 June 2026, material changes were made to estimates that affected the current period or will affect future periods. These changes are described in the further part of these interim condensed consolidated financial statements and concern mainly the revaluation of employee benefit liabilities, provisions for mine closure costs, provisions for mining damage and provisions for environmental protection. The Group updates its estimates considering all circumstances of which it is aware. The Group analyzes the market situation and if necessary it will revise its estimates in subsequent reporting periods. 2.5. RESTATEMENT OF COMPARATIVE DATA In connection with the preliminary share purchase agreement for PBSz shares and JZR shares signed on 9 March 2026 with the Industrial Development Agency, the Group classified the activities of PBSz as discontinued operations at the end of the reporting period, i.e. 30 June 2026.
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INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF THE JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. GROUP FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2026 (All amounts in tables expressed in millions of PLN unless stated otherwise) 20 Notes to these interim condensed consolidated financial statements form an integral part hereof. However, in relation to JZR, since the final share purchase agreement specifying the transaction terms and, consequently, whether changes in JZR’s ownership structure will result in a loss of control, was not signed, the Group did not classify this business as a discontinued operation. Details regarding the discontinued operations classification are provided in Note 4.7. Due to the fact that PBSz’s activity in the 6-month period ended 30 June 2026 was recognized as discontinued operations, pursuant to IFRS 5, the individual line items of the consolidated statement of profit or loss and other comprehensive income for the 6-month period ended 30 June 2025 were restated. The impact of the above changes on the comparative data in the consolidated statement of profit or loss and other comprehensive income for the period of 6 months ended 30 June 2025, is presented below. For the period of 6 months ended Discontinued operations For the period of 6 months ended 30 June 2025 (approved data) 30 June 2025 (restated) Sales revenues 4,714.8 (102.7) 4,612.1 Cost of products, materials and goods sold (5,914.3) 96.2 (5,818.1) GROSS (LOSS) ON SALES (1,199.5) (6.5) (1,206.0) Selling and distribution expenses (152.9) 0.7 (152.2) Administrative expenses (505.2) 3.3 (501.9) Other revenues 57.4 (0.8) 56.6 Impairment of non-financial non-current assets (641.5) - (641.5) Other costs (52.3) 1.0 (51.3) Other net gains/(losses) 120.9 (0.1) 120.8 OPERATING (LOSS) (2,373.1) (2.4) (2,375.5) Financial income 14.7 (0.5) 14.2 Financial costs (124.8) 0.7 (124.1) Share in profits of associated entities 0.1 - 0.1 (LOSS) BEFORE TAX (2,483.1) (2.2) (2,485.3) Income tax 408.0 1.2 409.2 NET (LOSS) FROM CONTINUING OPERATIONS (2,075.1) (1.0) (2,076.1) NET PROFIT FROM DISCONTINUED OPERATIONS - 1.0 1.0 NET (LOSS) (2,075.1) - (2,075.1) Other comprehensive income from continuing operations to be reclassified to profit or loss: Movement in hedging instruments 42.9 - 42.9 Income tax (8.2) - (8.2) Other comprehensive income from continuing operations not to be reclassified to profit or loss: Actuarial (losses) (25.2) - (25.2) Income tax 4.8 - 4.8 TOTAL OTHER COMPREHENSIVE INCOME FROM CONTINUING OPERATIONS 14.3 - 14.3 TOTAL COMPREHENSIVE INCOME FROM CONTINUING OPERATIONS (2,060.8) (1.0) (2,061.8) TOTAL COMPREHENSIVE INCOME FROM DISCONTINUED OPERATIONS - 1.0 1.0 TOTAL COMPREHENSIVE INCOME (2,060.8) - (2,060.8)
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INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF THE JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. GROUP FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2026 (All amounts in tables expressed in millions of PLN unless stated otherwise) 21 Notes to these interim condensed consolidated financial statements form an integral part hereof. 2.6. SEASONALITY INFORMATION The Group’s business activity is not of a seasonal nature, therefore the presented results are not subject to major fluctuations during the year. 2.7. 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. 2025, are presented in the main parts of these interim condensed consolidated 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 2026. THE IMPACT OF THE ARMED CONFLICT IN UKRAINE ON THE GROUP’S ACTIVITIES Ukraine's steel sector is facing its most serious crisis since the start of Russia's invasion in 2022, mainly as a result of Russian attacks on Ukrainian steel mills and the blockade of ports. The above events may affect the volume of coke and coal supplied by the Group to the Ukrainian market. A detailed description of the impact of the armed conflict in Ukraine on the Group’s activities is provided in Note 10.5. of the Consolidated Financial Statements of the Jastrzębska Spółka Węglowa S.A. Group for the financial year ended 31 December 2025. THE IMPACT OF THE GEOPOLITICAL SITUATION IN THE MIDDLE EAST ON THE GROUP’S OPERATIONS The escalation of the conflict between the U.S. and Iran is having a significant impact on the energy commodities market: it is driving up crude oil and LNG prices, affecting the maritime freight market and heightening concerns about energy security. Increased market uncertainty and unpredictability may also affect: ▪ rising prices of steam coal – in the event of an energy crisis, preventive purchases of coal may be made due to its ease of storage and transport, as well as its availability from regions not affected by conflict. During previous energy crises, including the European gas crisis, energy companies increased their use of coal when gas supplies became unreliable or too expensive; ▪ the maritime freight market: driving up fuel costs, increasing insurance premiums for ships and cargo, and heightening perception of risk on global shipping routes. Europe is dependent on coking coal imports; following the closure of Czech mines and the destruction of Ukrainian mines due to the war, JSW is the only producer of coking coal in Europe. European Union countries import more than three-quarters of the metallurgical coal they consume from overseas, mainly from the United States, Australia and Canada. The rise in costs and risks associated with ocean freight could help strengthen JSW’s position in the European market; ▪ rising energy prices, delivery delays; ▪ an increase in the operating costs of mines, particularly open-pit mines, due to rising diesel prices; ▪ a prolonged conflict could affect steel-consuming sectors: higher inflation and interest rates could lead to a decline in steel consumption in the construction industry, and in the automotive industry, they could also cause disruptions in supply chains. The Middle East accounts for nearly 10% of global aluminum production; supply disruptions also threaten the supply of plastics and chemicals, among other goods. Given the rapidly evolving geopolitical situation in the Middle East, it is difficult to assess its long-term economic consequences and their impact on the overall macroeconomic situation, which could indirectly affect the financial performance of JSW and the Group. The Group is continuously assessing the potential impact of the geopolitical situation in the Middle East on the Group’s current and future financial position, its operations and its future financial performance.
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INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF THE JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. GROUP FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2026 (All amounts in tables expressed in millions of PLN unless stated otherwise) 22 Notes to these interim condensed consolidated financial statements form an integral part hereof. 3. NOTES TO THE OPERATING SEGMENTS 3.1. OPERATING SEGMENTS The JSW Management Board is the corporate body that makes the key decisions in the Group. The measure of performance of the Group’s respective operating segments, which is analyzed by the Management Board of the Parent Company is the segment’s operating profit/(loss) determined according to IAS/IFRS. Revenues from transactions with external entities are measured in a manner consistent with the method used in the consolidated statement of profit or loss and other comprehensive income. Revenues from transactions between segments are eliminated in the consolidation process. Sales between segments are conducted on an arm’s length basis. According to the principles applied by the Management Board of the Parent Company to evaluate operating results of the respective segments, revenues and margin are recognized in segmental results at the moment a sale is made outside of the segment. Financial income and costs are not allocated to the individual segments. SEGMENT-SPECIFIC INFORMATION FOR REPORTING PURPOSES Coal Coke Other segments* Consolidation adjustments** Total FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2026 Total sales revenues of the segment, including: 3,974.8 1,619.7 826.3 (2,077.0) 4,343.8 Revenues on inter-segment sales 1,471.3 - 605.7 (2,077.0) - Sales revenues from external customers 2,500.3 1,616.7 220.6 - 4,337.6 Adjustment of sales revenues on account of realization of hedging transactions 3.2 3.0 - - 6.2 Cost of products, materials and goods sold (4,014.7) (1,822.4) (719.3) 1,950.7 (4,605.7) Segment’s gross profit/(loss) on sales (39.9) (202.7) 107.0 (126.3) (261.9) Administrative expenses (366.8) (36.0) (35.4) 7.8 (430.4) Segment’s operating profit/(loss) (459.3) (482.8) 74.7 (127.6) (995.0) Depreciation and amortization (701.2) - (70.2) 12.9 (758.5) Employee benefits (2,338.5) (176.5) (287.3) (22.5) (2,824.8) OTHER SIGNIFICANT NON-CASH ITEMS: - Recognition of impairment losses for non-financial non-current assets - (147.8) (1.7) - (149.5) - Reversal of impairment losses for non-financial non-current assets 6.0 - - - 6.0 * No operations classified in “Other segments” meet the aggregation criteria and quantitative thresholds defined by IFRS 8 Operating Segments, to be accounted for as a separate operating segment. ** The "Consolidation adjustments" column eliminates the effects of intra-segment transactions within the Group. Coal Coke Other segments* Consolidation adjustments** Total FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2025 (restated) Total sales revenues of the segment, including: 3,830.4 1,771.0 1,054.1 (2,043.4) 4,612.1 Revenues on inter-segment sales 1,231.2 - 812.2 (2,043.4) - Sales revenues from external customers 2,589.3 1,759.2 241.9 - 4,590.4 Adjustment of sales revenues on account of realization of hedging transactions 9.9 11.8 - - 21.7 Cost of products, materials and goods sold (4,979.5) (1,852.5) (925.6) 1,939.5 (5,818.1) Segment’s gross profit/(loss) on sales (1,149.1) (81.5) 128.5 (103.9) (1,206.0) Administrative expenses (435.4) (39.3) (37.8) 10.6 (501.9) Segment’s operating profit/(loss) (2,153.1) (174.2) 98.0 (146.2) (2,375.5) Depreciation and amortization (646.0) (20.9) (69.5) 9.5 (726.9) Employee benefits (2,976.5) (196.7) (298.9) (51.3) (3,523.4)
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INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF THE JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. GROUP FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2026 (All amounts in tables expressed in millions of PLN unless stated otherwise) 23 Notes to these interim condensed consolidated financial statements form an integral part hereof. Coal Coke Other segments* Consolidation adjustments** Total OTHER SIGNIFICANT NON-CASH ITEMS: - Recognition of impairment losses for non-financial non-current assets (660.1) (1.0) - - (661.1) - Reversal of impairment losses for non-financial non-current assets 19.6 - - - 19.6 * No operations classified in “Other segments” meet the aggregation criteria and quantitative thresholds defined by IFRS 8 Operating Segments, to be accounted for as a separate operating segment. ** The "Consolidation adjustments" column eliminates the effects of intra-segment transactions within the Group. Presented below is reconciliation of the segment results (operating (loss) with pre-tax (loss)): For the period of 6 months ended 30 June 2026 30 June 2025 (restated) OPERATING (LOSS) (995.0) (2,375.5) Financial income 4.7 14.2 Financial costs (107.8) (124.1) Share in profits of associated entities - 0.1 (LOSS) BEFORE TAX (1,098.1) (2,485.3)
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INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF THE JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. GROUP FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2026 (All amounts in tables expressed in millions of PLN unless stated otherwise) 24 Notes to these interim condensed consolidated financial statements form an integral part hereof. 4. NOTES TO THE CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME 4.1. SALES REVENUES For the period of 3 months ended For the period of 6 months ended For the period of 3 months ended For the period of 6 months ended 30 June 2026 30 June 2026 30 June 2025 (restated) 30 June 2025 (restated) Sales of coal 1,342.6 2,500.3 1,228.4 2,589.3 Sales of coke 682.6 1,393.2 766.1 1,547.5 Sales of hydrocarbons 119.8 223.5 108.0 211.7 Other business 101.2 220.6 111.7 241.9 Adjustment of sales revenues on account of execution of hedging transactions* 0.6 6.2 13.7 21.7 TOTAL SALES REVENUES 2,246.8 4,343.8 2,227.9 4,612.1 * In the 6-month period ended 30 June 2026, the adjustment applies to revenues on sales of coke in the amount of PLN 3.0 million and revenues on sales of coal in the amount of PLN 3.2 million. In the 6-month period ended 30 June 2025, the adjustment applied 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. 4.2. COST OF PRODUCTS, MATERIALS AND GOODS SOLD For the period of 3 months ended For the period of 6 months ended For the period of 3 months ended For the period of 6 months ended 30 June 2026 30 June 2026 30 June 2025 (restated) 30 June 2025 (restated) Depreciation and amortization 342.1 758.5 383.6 726.9 Consumption of materials and energy 570.4 1,286.4 841.0 1,720.0 - consumption of materials 347.9 796.9 606.2 1,227.7 - consumption of energy 222.5 489.5 234.8 492.3 External services 477.8 1,023.4 651.0 1,227.6 Employee benefits 1,376.9 2,824.8 1,780.5 3,523.4 Taxes and charges 86.4 163.5 121.5 206.3 Other costs by nature 24.2 52.7 (1.3) 48.4 TOTAL COSTS BY NATURE 2,877.8 6,109.3 3,776.3 7,452.6 Selling and distribution expenses (73.2) (151.5) (77.9) (152.2) Administrative expenses (207.9) (430.4) (223.6) (501.9) Cost of performances and property, plant and equipment produced for own use (including expensable mining pits and outfitting of longwalls) (334.2) (745.9) (561.0) (1,101.6) Change in products (56.1) (208.7) (141.6) 84.8 Cost of materials and goods sold 15.8 32.9 12.7 36.4 COST OF PRODUCTS, MATERIALS AND GOODS SOLD 2,222.2 4,605.7 2,784.9 5,818.1
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INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF THE JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. GROUP FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2026 (All amounts in tables expressed in millions of PLN unless stated otherwise) 25 Notes to these interim condensed consolidated financial statements form an integral part hereof. 4.3. OTHER REVENUES Note For the period of 3 months ended For the period of 6 months ended For the period of 3 months ended For the period of 6 months ended 30 June 2026 30 June 2026 30 June 2025 (restated) 30 June 2025 (restated) Reversal of provisions for employee benefits in connection with the payment of safety net benefits 7.12 59.0 59.0 - - Interest 4.3 9.1 6.6 13.4 Indemnity and penalties received 1.4 7.6 9.7 11.1 Revenues from awarded energy efficiency certificates (white certificates) - - - 11.1 Subsidies (written off according to their amortization) 1.0 1.6 7.7 8.5 Reversal of impairment loss on receivables and other financial assets 4.4 8.7 0.9 2.2 Time-barred and canceled liabilities, with interest 0.2 0.4 0.5 0.9 Other 2.5 4.0 7.6 9.4 TOTAL OTHER REVENUES 72.8 90.4 33.0 56.6 4.4. OTHER COSTS For the period of 3 months ended For the period of 6 months ended For the period of 3 months ended For the period of 6 months ended 30 June 2026 30 June 2026 30 June 2025 (restated) 30 June 2025 (restated) Interest 29.7 37.6 6.6 17.4 - including hypothetical interest on liabilities calculated pursuant to Article 5 of the Polish Act on preventing excess delays in commercial transactions, as amended 3.8 7.7 4.9 10.8 Rollover fee 1.8 22.3 6.9 6.9 Severance pay on account of the termination of employment of employees electing one-off cash severance, financed by JSW 14.5 14.5 - - Recognition of provisions for litigation 1.3 9.0 7.0 10.1 Recognition of impairment loss on receivables and other financial assets 1.3 2.1 1.5 5.8 Costs of managing non-productive assets 2.5 4.9 1.1 2.2 Enforcement fees and penalties 1.1 2.4 0.8 1.5 Other 9.4 13.4 4.1 7.4 TOTAL OTHER COSTS 61.6 106.2 28.0 51.3
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INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF THE JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. GROUP FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2026 (All amounts in tables expressed in millions of PLN unless stated otherwise) 26 Notes to these interim condensed consolidated financial statements form an integral part hereof. 4.5. OTHER NET GAINS For the period of 3 months ended For the period of 6 months ended For the period of 3 months ended For the period of 6 months ended 30 June 2026 30 June 2026 30 June 2025 (restated) 30 June 2025 (restated) Gain/(loss) on financial derivatives 4.8 (4.0) 16.0 49.8 Exchange rate differences concerning operating activities - 6.3 2.0 (6.4) Profit/(loss) on the disposal/ liquidation of property, plant and equipment 1.5 2.4 (4.7) (4.6) Gain from fair value measurement of the FIZ asset portfolio, including: 2.6 3.4 31.6 82.0 - interest income of the FIZ asset portfolio calculated using the effective interest rate 2.5 4.7 55.9 156.0 - interest expenses under SBB transactions (1.5) (2.7) (33.5) (86.6) - gain from fair value measurement 1.6 1.4 9.2 12.6 TOTAL OTHER NET GAINS 8.9 8.1 44.9 120.8 4.6. FINANCIAL INCOME AND COSTS For the period of 3 months ended For the period of 6 months ended For the period of 3 months ended For the period of 6 months ended 30 June 2026 30 June 2026 30 June 2025 (restated) 30 June 2025 (restated) Interest income on cash and cash equivalents 0.8 2.8 6.1 14.2 FX gains and losses on cash and cash equivalents and FX Forward transactions - 1.9 (0.1) - TOTAL FINANCIAL INCOME 0.8 4.7 6.0 14.2 Interest cost: (46.8) (89.8) (47.9) (96.9) – unwinding of the discount on account of long-term provisions (25.6) (51.2) (27.1) (54.1) - interest and fees on loans and borrowings (14.5) (31.2) (20.0) (41.0) – other interest (6.7) (7.4) (0.8) (1.8) Interest on leases (7.4) (17.2) (9.1) (18.0) FX gains and losses on FX Forward transactions - - (0.3) (6.3) Other (0.8) (0.8) (1.2) (2.9) TOTAL FINANCIAL COSTS (55.0) (107.8) (58.5) (124.1) NET FINANCIAL INCOME / (COSTS) (54.2) (103.1) (52.5) (109.9) 4.7. DISCONTINUED OPERATIONS In 2025 JSW commenced actions leading to the disposal of assets, including the sale of shares in PBSz and in JZR. On 4 November 2025, the JSW Management Board decided to launch the sale process of PBSz shares, and on 19 November 2025 it extended this process to include the sale of JZR shares. On 6 March 2026, the JSW Management Board adopted a resolution approving the terms of the preliminary agreement for the sale of PBSz and JZR shares between JSW and Agencja Rozwoju Przemysłu S.A. (“ARP”). On 9 March 2026, the JSW Supervisory Board granted its consent to the execution of the aforementioned transaction. On 9 March 2026, JSW and ARP entered into a Preliminary Share Sale Agreement for JZR shares and PBSz shares (“PRE-SPA”) (details of the PRE-SPA are provided in Note 1.2). In connection with the PRE-SPA governing the sale of PBSz shares representing 95.81% of the share capital and entitling the holder to 95.81% of votes at the PBSz Shareholder Meeting, as well as JZR shares representing 59.39% of the share capital and entitling the holder to 59.39% of
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INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF THE JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. GROUP FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2026 (All amounts in tables expressed in millions of PLN unless stated otherwise) 27 Notes to these interim condensed consolidated financial statements form an integral part hereof. votes at the JZR Shareholder Meeting to ARP; after the transaction is finalized, JSW will no longer hold any shares in PBSz, but will hold shares in JZR representing 1.01% of the share capital and entitling it to 1.01% of the votes at the JZR Shareholder Meeting. Under this agreement, the Group analyzed whether the conditions under IFRS 5 had been met for classifying the operations of PBSz and JZR as discontinued operations and the related assets and liabilities as a disposal group held for sale. As a result of the analysis, as at 30 June 2026 the Group concluded that, with respect to JZR, since the final share purchase agreement determining the transaction terms, including the composition and powers of the Management Board, operational dependence while holding 1.01% of shares, as well as the options for buying back JZR and therefore the inability to equivocally assess whether changes in JZR’s ownership structure would result in a loss of control, was not signed, the conditions for classifying JZR’s operations as discontinued operations and its assets and liabilities as a disposal group held for sale have not been met. On the other hand, with respect to the operations of PBSz, which provides specialized mining services, such as the design and construction of vertical and horizontal mine workings and tunnels, which constitute a significant portion of the Group’s other operations previously classified under “Other Segments,” the Group has determined that, in connection with, among other things, the PRE-SPA covering the sale of all shares held in PBSz, and taking into account the requirements set forth in IFRS 5, that the conditions for classifying its operations as discontinued operations and the assets and liabilities of PBSz as a disposal group held for sale have been met (see Note 7.10 for details). On 30 June 2026, Annex no. 1 to the PRE-SPA was signed, by the power of which the final date was moved from 30 June 2026 to 31 July 2026, and after the end of the reporting period, i.e. on 31 July 2026, Annex no. 2 was signed, which moved the final date of the transaction was moved to 31 October 2026. As at 30 June 2026, the sale of PBSz shares and JZR shares had not been finalized and the process of meeting the conditions prescribed by the PRE-SPA remained pending. After the end of the reporting period, i.e., on 17 August 2026, the JSW Management Board adopted a resolution approving the submission of an application to ARP for a loan in the amount of PLN 1,066.0 million. This financing is intended to replace the sale of shares in PBSz and JZR to ARP, as previously contemplated in the PRE-SPA. The proposed loan amount corresponds to the total preliminary purchase price of shares in PBSz and JZR set forth in the PRE-SPA. Financial result of discontinued operations: For the period of 6 months ended 30 June 2026 30 June 2025 Sales revenues 111.0 102.7 Cost of products, materials and goods sold (112.4) (96.2) Gross profit/(loss) on sales (1.4) 6.5 Selling and distribution expenses (1.1) (0.7) Administrative expenses (4.0) (3.3) Other revenues 0.8 0.8 Other costs (1.0) (1.0) Other net profit 0.1 0.1 Operating profit/(loss) (6.6) 2.4 Financial income 0.2 0.5 Financial costs (0.6) (0.7) Profit/(loss) before tax (7.0) 2.2 Income tax (0.2) (1.2) NET PROFIT/(LOSS) FROM DISCONTINUED OPERATIONS (7.2) 1.0 Cash flows from discontinued operations: For the period of 6 months ended 30 June 2026 30 June 2025 Net cash flows from operating activities 20.6 15.0 Net cash flows from investing activities (21.1) (2.2) Net cash flows from financing activities (6.9) (12.2)
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INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF THE JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. GROUP FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2026 (All amounts in tables expressed in millions of PLN unless stated otherwise) 28 Notes to these interim condensed consolidated financial statements form an integral part hereof. For the period of 6 months ended 30 June 2026 30 June 2025 Net change in cash and cash equivalents (7.4) 0.6 Cash and cash equivalents from discontinued operations at the beginning of the period 23.9 6.9 Exchange differences from translation of cash and cash equivalents 0.1 - Cash and cash equivalents from discontinued operations at the end of the period 16.6 7.5 4.8. (LOSS) PER SHARE For the period of 6 months ended 30 June 2026 30 June 2025 (restated) Net (loss) attributable to shareholders of the Parent Company, including: (1,038.6) (2,087.6) - from continuing operations (1,031.4) (2,088.6) - from discontinued operations (7.2) 1.0 Weighted average number of ordinary shares 117,411,596 117,411,596 BASIC NET (LOSS) PER SHARE (IN PLN PER SHARE), of which: (8.85) (17.78) - from continuing operations (8.79) (17.79) - from discontinued operations (0.06) 0.01 DILUTED NET (LOSS) PER SHARE (IN PLN PER SHARE), of which: (8.85) (17.78) - from continuing operations (8.79) (17.79) - from discontinued operations (0.06) 0.01
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INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF THE JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. GROUP FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2026 (All amounts in tables expressed in millions of PLN unless stated otherwise) 29 The notes to the interim condensed consolidated financial statements form an integral part hereof. 5. EXPLANATORY NOTES PERTAINING TO TAX 5.1. INCOME TAX Income tax captured in net result: For the period of 6 months ended 30 June 2026 30 June 2025 (restated) Current tax: 14.2 117.5 - current tax liability 14.9 112.6 - adjustments posted in the current period relating to tax from the previous years (0.7) 4.9 Deferred tax (76.1) (526.7) TOTAL INCOME TAX CAPTURED IN NET RESULT (61.9) (409.2) Income tax in these interim condensed consolidated financial statements is calculated at the actual effective tax rate of 5.6% (for the 6-month period ended 30 June 2025, the effective tax rate was 16.5%). The level of the effective tax rate in the current reporting period was mainly due to a fact that JSW and JSW KOKS did not recognize a deferred tax asset, as the companies assessed that future taxable income would not be sufficient to use this loss. Income tax captured in other comprehensive income: For the period of 6 months ended 30 June 2026 30 June 2025 Deferred tax: - actuarial gains/(losses) 4.7 (4.8) - change in the value of hedging instruments (3.8) 8.2 TOTAL INCOME TAX CAPTURED IN OTHER COMPREHENSIVE INCOME 0.9 3.4
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INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF THE JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. GROUP FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2026 (All amounts in tables expressed in millions of PLN unless stated otherwise) 30 Notes to these interim condensed consolidated financial statements form an integral part hereof. 6. EXPLANATORY NOTES PERTAINING TO DEBT LIABILITIES RELATED TO DEBT Note 30 June 2026 31 December 2025 Loans and borrowings 6.1 1,799.3 1,828.4 Lease liabilities 6.2 649.9 677.9 TOTAL 2,449.2 2,506.3 of which: non-current 606.0 730.6 current 1,843.2 1,775.7 6.1. LOANS AND BORROWINGS 30 June 2026 31 December 2025 NON-CURRENT: 260.0 359.9 Bank loans 1.2 1.4 Borrowings 258.8 358.5 CURRENT: 1,539.3 1,468.5 Bank loans 942.3 933.2 Borrowings 597.0 535.3 TOTAL 1,799.3 1,828.4 The Group has at its disposal the following unused credit facilities: 30 June 2026 31 December 2025 Unused credit facilities: 40.0 40.0 – credit facilities under an agreement concluded by PBSz 40.0 40.0 The key 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 2026 Balance sheet measurement as at 31 December 2025 FINANCING GRANTED TO JSW 1,342.8 1,347.5 2023 CONSORTIUM FINANCING AGREEMENT, including: 1,221.7 1,212.4 REVOLVING CREDIT FACILITY B 12 April 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 Dec. 2027 with an option of renewal for 2 more years, i.e. till 28 Dec 2029 PLN 430.1 430.4 TERM LOAN A floating 28 Dec. 2030 quarterly from June 2023 PLN 72.8 72.8 TERM LOAN B floating 28 Dec. 2030 quarterly from June 2025 PLN 130.1 130.0
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INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF THE JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. GROUP FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2026 (All amounts in tables expressed in millions of PLN unless stated otherwise) 31 Notes to these interim condensed consolidated financial statements form an integral part hereof. Loan / borrowing Date of the agreement Purpose Interest rate Repayment date Currency of loans and borrowings Balance sheet measurement as at 30 June 2026 Balance sheet measurement as at 31 December 2025 TERM FACILITY A floating 28 Dec. 2030 quarterly from June 2023 USD 107.3 102.4 TERM FACILITY B floating 28 Dec. 2030 quarterly from June 2025 EUR 230.6 226.7 ENVIRONMENTAL FACILITY floating 28 Dec. 2030 quarterly from March 2026 PLN 174.0 173.5 ENVIRONMENTAL LOAN A floating 28 Dec. 2030 quarterly from March 2026 PLN 38.4 38.3 ENVIRONMENTAL LOAN B floating 28 Dec. 2030 quarterly from March 2026 PLN 38.4 38.3 OTHER FINANCING ARRANGEMENTS: 121.1 135.1 LOAN FROM NFOŚiGW 20 July 2021 Financing of the project named “Reclamation of land between the Szotkówka river and the Pochwacie spoil heap in Połomia - Stage II” floating 20 Dec. 2030 quarterly from March 2029 PLN 4.1 4.1 LOAN FROM NFOŚiGW 8 Nov. 2021 Financing of the project named “Commercial Methane Utilization – Knurów Section” floating 20 Dec. 2030 quarterly from March 2022 PLN 30.0 33.3 LOAN FROM NFOŚiGW 4 Oct. 2023 Financing of the project named “Commercial Methane Utilization - KWK Budryk” floating 30 Sep. 2030 November 2023, then quarterly from Dec. 2023 PLN 49.0 55.0 LOAN FROM WFOŚiGW 14 Mar. 2024 Financing of the project named “Purchase of 8 battery-powered shunting locomotives with a transport set at KWK Budryk” floating 15 Dec. 2028 quarterly from Dec. 2024 PLN 5.5 6.6 LOAN FROM WFOŚiGW 15 April 2024 Financing of the project named “Purchase of overhead battery-powered locomotives for KWK Pniówek” floating 31 May 2030 quarterly from August 2024 PLN 6.7 7.5 LOAN FROM WFOŚiGW 15 April 2024 Financing of the project named “Purchase and delivery of 3 brand new mining track battery-powered locomotives for KWK Budryk” floating 31 Aug. 2030 quarterly from November 2024 PLN 3.3 3.6 LOAN FROM WFOŚiGW 28 April 2025 Financing of the project named “Purchase and delivery of 6 brand new battery-powered suspended locomotives together with 6 contactor-based switch disconnectors in the KWK Budryk Mine” floating 15 Dec. 2030 quarterly from March 2026 PLN 6.5 7.2
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INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF THE JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. GROUP FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2026 (All amounts in tables expressed in millions of PLN unless stated otherwise) 32 Notes to these interim condensed consolidated financial statements form an integral part hereof. Loan / borrowing Date of the agreement Purpose Interest rate Repayment date Currency of loans and borrowings Balance sheet measurement as at 30 June 2026 Balance sheet measurement as at 31 December 2025 LOAN FROM WFOŚiGW 28 April 2025 Financing of the project named “Supply of battery-powered equipment intended for underground suspended and rail transport for JSW S.A. KWK Knurów-Szczygłowice Mine” floating 15 Dec. 2030 quarterly from March 2026 PLN 16.0 17.8 FINANCING GRANTED TO JSW KOKS 455.0 479.3 LOAN FROM NFOŚiGW 17 Oct. 2018 Refinancing of the project named “Modernization of Coke Oven Battery no. 4 at the Przyjaźń Coking Plant” floating 20 Dec. 2034 quarterly from March 2027 PLN 84.0 84.1 PREFERENTIAL LOAN FROM NFOŚIGW* 19 Dec. 2018 Execution of the project “Improvement of energy efficiency at JSW KOKS” associated with the construction of a power unit at the Radlin Coking Plant fixed 20 Dec. 2030 quarterly from June 2024 PLN 76.7 84.5 PREFERENTIAL LOAN FROM WFOŚiGW 12 Aug. 2020 Subsidy to the project entitled “Construction of a Power Unit at the Radlin Coking Plant”. The loan was granted within the framework of the horizontal aid for environmental protection program floating 15 Dec. 2030 quarterly from September 2026 PLN 34.2 34.2 LOAN FROM NFOŚiGW 1 Sep. 2021 Co-financing of the project entitled “CDA and SRCM installation – construction of the 2nd line with an acid absorption column at the Radlin Coking Plant” floating 20 Dec. 2030 quarterly from September 2023 PLN 48.5 53.8 PREFERENTIAL LOAN FROM WFOŚiGW 13 Dec. 2021 Co-financing in the form of a preferential loan for the investment task entitled “Modernization of coke oven battery no. 4 in the Przyjaźń Coking Plant” floating 30 Sep. 2031 quarterly from September 2026 PLN 70.0 70.0 LOAN FROM NFOŚiGW 1 Mar. 2023 Refinancing of the project named “Modernization of Coke Oven Battery no. 4 at the Przyjaźń Coking Plant” floating 31 March 2034 quarterly from March 2027 PLN 63.2 63.2 LOAN FROM NFOŚiGW 11 Aug. 2023 Execution of the project “Improvement of energy efficiency at JSW KOKS” associated with the construction of a power unit at the Radlin Coking Plant floating 20 Dec. 2030 quarterly from June 2024 PLN 78.4 89.5 FINANCING GRANTED TO OTHER COMPANIES 1.5 1.6 ASSET-BACKED LOAN (PGWIR) 3 June 2025 Refinancing agreements floating 30 June 2030 31 March 2031 monthly from June 2025 PLN 1.5 1.6 TOTAL 1,799.3 1,828.4 * The nominal amount of the loan from NFOŚiGW as at 30 June 2026 is PLN 83.4 million. In accordance with the requirements of IAS 20 Accounting for Government Grants and Disclosure of Government Assistance the loan received on preferential terms is recognized in the balance sheet at fair value. Because of the above, the actual value of debt differs by PLN 6.7 million from the liability as at the final date of the reporting period (as at 31 December 2025, the nominal value of debt was PLN 92.7 million and differed by PLN 8.2 million from the liability as at the final date of the reporting period).
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INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF THE JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. GROUP FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2026 (All amounts in tables expressed in millions of PLN unless stated otherwise) 33 Notes to these interim condensed consolidated financial statements form an integral part hereof. Detailed information on the loans and borrowings contracted by Group companies before 1 January 2026 and on the collateral of loans and borrowings is presented in Note 6.1. of the Consolidated Financial Statements of the Jastrzębska Spółka Węglowa S.A. Group for the financial year ended 31 December 2025. Other than those described below, in the 6-month period ended 30 June 2026 and after the end of the reporting period, there were no material changes in the existing loan and borrowing agreements and their collateral: FINANCING GRANTED TO JSW 1) On 9 March 2026, an annex to the Financing Agreement was concluded with the Consortium. Under this annex: ▪ the disposal of shares in the subsidiary PBSz and of shares in the subsidiary JZR to the Industrial Development Agency S.A. (“ARP”) will be permitted; ▪ JSW will be permitted to establish collateral in favor of ARP over the assets of the Borynia Section OPE in the form of mortgages over real properties, civil (ordinary) and registered pledges over a pool of movable property, and an assignment by way of security of JSW’s rights under insurance contracts relating to those assets, to secure ARP’s receivables in respect of the repayment of the advance towards the purchase price of JZR and PBSz paid by ARP on 9 March 2026 in a total amount of PLN 400 million, which was effected on 8 April 2026.In the event of expiry of the claim for repayment of the advance payment and release of collateral by ARP, JSW will establish collateral on the assets of this mine to secure the claims of the Financing Institutions within 35 business days of such event, otherwise it will constitute a breach of the Financing Agreement. ▪ it will be permissible to establish collateral (in the form of a registered pledge, civil law (regular) pledge) on shares in JZR for the benefit of ARP, to secure the claim for repayment of the advance payment; this was implemented on 9 March 2026, ▪ the loan repayments due in March and June in the total amount of PLN 45.8 million, USD 2.9 million and EUR 5.4 million will be deferred until 31 August 2026, ▪ The Consortium has waived its rights arising from the non-performance of the following obligations: the ratio of total Guarantors’ and JSW’s EBITDA to total Group EBITDA be at least 85%, that the ratio of total Guarantors’ and JSW’s assets to total Group assets be no less than 85%, that the Net Financial Debt/EBITDA ratio not exceed 3.3x, that the Cash Buffer balance be maintained at PLN 750.0 million, on the following dates: 31 December 2025, 31 March 2026 and 30 June 2026. ▪ the obligation to implement the Sustainability-Linked Goals was suspended until 31 August 2026, ▪ an obligation was introduced to: conclude, by 15 April 2026, collateral agreements under which collateral would be established to secure the Lenders’ claims at the Budryk OPE, in a form and content acceptable to the Consortium, provided that on 15 April 2026, the Consortium agreed to extend the deadline to 22 April 2026; this obligation was satisfied on 22 April 2026; and conclude, by 30 March 2026, registered pledge agreements on shares in CLPB, JSW Logistics and PGWiR to secure the Financing Institutions' claims, in a form and content acceptable to the Consortium, which was effected on 30 March 2026. At the same time, at the request of ARP and in order to finalize the transaction, the Consortium will declare the possibility of releasing the collateral in the form of a JZR guarantee and a pledge on PBSz shares, provided that JSW presents a long-term restructuring plan acceptable to the financing institutions and allocates part of the proceeds from the sale of JZR and PBSz for early repayment of the Consortium Financing Agreement. 2) Since the rights of the financial institutions arising from non-fulfillment of the obligations as at 31 December 2025 were waived by the Consortium on the date of signing the annex, i.e. on 9 March 2026, as of 31 December 2025 JSW classifies the indebtedness arising from the Financing Agreement as its current liability. 3) According to estimates, as at 30 June 2026, JSW will not meet the covenants pertaining to the Net Financial Debt/EBITDA ratio and the ratio of the Guarantors’ and JSW’s EBITDA to total Group EBITDA, and the Cash Buffer balance. Pursuant to Annex of 9 March 2026, a failure to comply with these obligations does not constitute an event of default under the agreement. 4) After the end of the reporting period, i.e., on 31 August and 17 September 2026, additional annexes to the Consortium Financing Agreement were signed, under which:
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INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF THE JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. GROUP FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2026 (All amounts in tables expressed in millions of PLN unless stated otherwise) 34 Notes to these interim condensed consolidated financial statements form an integral part hereof. ▪ the loan installment repayments due in March, June and September of the current year in the total amount of PLN 68.8 million, USD 4.3 million and EUR 8.1 million were deferred until 30 October 2026, where the PLN 50 million equivalent of the above principal installments will be repaid on 28 September 2026, ▪ The Consortium has waived its rights arising from the non-performance of the following obligations as at 30 September 2026: the ratio of total Guarantors’ and JSW’s EBITDA to total Group EBITDA be at least 85%, that the ratio of total Guarantors’ and JSW’s assets to total Group assets be no less than 85%, that the Net Financial Debt/EBITDA ratio not exceed 3.3x, that the Cash Buffer balance be maintained at PLN 750.0 million, ▪ the time limit for selling off shares in the subsidiary PBSz and shares in the subsidiary JZR to the Industrial Development Agency S.A. (“ARP”) was extended to 30 October 2026, ▪ the obligation to implement the Sustainability-Linked Goals was suspended until 30 October 2026. 5) After the end of the reporting period, i.e., on 6 August 2026, a loan agreement for a loan up to PLN 824.1 million was concluded between JSW and ARP, on the terms set forth in the Act of 4 July 2019 on the System of Development Institutions. The purpose of the financing is to fund JSW’s operations during the implementation period of the JSW Group’s (“JSW Group”) Remedy Program and to finance the remedial initiatives covered by this Remedy Program, which involves reorganizing how the JSW Group functions with the aim of reducing operating expenses and optimizing how the JSW Group operates. The loan will be drawn down in tranches. The loan will be repaid quarterly starting in July 2029. The loan bears interest based on a variable interest rate. By the date of approving this report, loan tranches in the cumulative amount of PLN 600.0 million have been drawn down. ARP loan collateral established after the end of the reporting period: a) contractual joint mortgages in favor of ARP up to PLN 1,236.2 million: ▪ over properties owned or held in perpetual usufruct by JSW, comprising organized parts of JSW’s enterprise known as the KWK Knurów-Szczygłowice OPE, KWK Pniówek OPE, Zofiówka Section OPE, KWK Budryk OPE, ranking immediately after the mortgages in favor of the Consortium, ▪ over properties owned or held in perpetual usufruct by JSW, comprising organized parts of JSW’s enterprise known as the Borynia Section OPE, ranking second behind a mortgage in favor of ARP S.A., up to PLN 600 million, ▪ over a property located in Gdynia. b) registered pledges up to the highest collateral amount of PLN 1,236.2 million established in favor of ARP: ▪ over movable assets of the KWK Knurów-Szczygłowice OPE, KWK Pniówek OPE, Zofiówka Section OPE, KWK Budryk OPE, ranking behind the pledges in favor of the Consortium, ▪ over movable assets of the KWK Borynia Section OPE, ranking behind the pledges in favor of ARP, ▪ over the shares and equity interests held by JSW in JSW KOKS, CLPB, JSW Logistics and PGWiR, ranking behind the pledges in favor of the existing Consortium, ▪ over selected bank accounts (PLN, EUR, USD), ranking behind the pledges in favor of the existing Consortium – these are the same accounts that serve as security under the Financing Agreement, ▪ over the investment certificates in the JSW Stabilization Closed-end Investment Fund, ranking behind the pledge in favor of the existing Consortium. c) an assignment of receivables under commercial contracts and insurance contracts, preserving the priority of the existing creditors (the Consortium), and an assignment of receivables under insurance contracts relating to the property in Gdynia and to the real estate and movable assets forming part of the Budryk OPE. 6) After the end of the reporting period, i.e. on 9 September 2026, an intercreditor agreement was signed by JSW and the institutions comprising the Consortium, ARP, as well as JSW KOKS and JZR as guarantors. This agreement made it possible to establish a portion of the collateral for the ARP loan, which was the condition precedent for drawing down the second tranche of the ARP loan. FINANCING GRANTED TO JSW KOKS AND OTHER COMPANIES 7) On 14 January 2026, another annex was signed to the multi-purpose facility agreement of 23 January 2020 between PBSz and Bank Gospodarstwa Krajowego (“BGK”), which increased the maximum exposure amount to PLN 40.0 million and extended its term for another
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INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF THE JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. GROUP FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2026 (All amounts in tables expressed in millions of PLN unless stated otherwise) 35 Notes to these interim condensed consolidated financial statements form an integral part hereof. two years, i.e. until 21 January 2028. In accordance with the signed annex to the agreement, PBSz may use the granted limit in the form of a current account overdraft up to the full amount of the limit, and bank guarantees cumulatively up to the maximum exposure amount of PLN 5.0 million. The total exposure in respect of all products must not exceed the limit amount of PLN 40.0 million. In accordance with the annex to the agreement, the multi-purpose facility is secured by: a mortgage on real property in the amount of PLN 60.0 million and an assignment of rights under an insurance policy, an assignment of receivables under the agreement. 8) On 14 January 2026 a loan agreement was concluded between PBSz and BGK up to the maximum amount of PLN 38.1 million. The purpose of the loan is to finance or refinance capital expenditures for the purchase of machinery and equipment. The loan bears interest at a floating interest rate. The loan will be repaid quarterly, starting from April 2027. The final maturity will be in July 2029. As at the date of approval of this report the loan has not been disbursed. In accordance with the provisions of the agreement, the collateral for the loan will consist of: registered pledges, up to a maximum security amount of PLN 57.2 million, over movable property, i.e. machinery and equipment purchased using the loan, together with an assignment of rights under the insurance policy, assignments of receivables under the agreements. In H1 2026, the collateral in the form of assignment of receivables was established. 9) On 18 March 2026, an annex was signed to the loan agreement of 12 August 2020 between JSW KOKS and WFOŚiGW, which updated the loan repayment schedule and the project completion date. According to the updated schedule, the loan will be repaid starting in September 2026. The Group carried out the following loans and borrowings transactions: Loan/borrowing For the period of 6 months ended 30 June 2026 For the period of 6 months ended 30 June 2025 Drawdown Repayment (of principal) Drawdown Repayment (of principal) FINANCING GRANTED TO JSW: - (14.0) 64.4 (45.8) 2023 CONSORTIUM FINANCING AGREEMENT, including: - - 64.4 (34.4) TERM LOAN A - - - (5.7) TERM LOAN B - - - (6.5) TERM FACILITY A - - - (10.8) TERM FACILITY B - - - (11.4) ENVIRONMENTAL FACILITY - - 44.6 - ENVIRONMENTAL LOAN A - - 9.9 - ENVIRONMENTAL LOAN B - - 9.9 - OTHER AGREEMENTS: - (14.0) - (11.4) LOAN FROM NFOŚiGW of 8 November 2021 - (3.3) - (3.3) LOAN FROM NFOŚiGW of 4 October 2023 - (6.0) - (6.0) LOAN FROM WFOŚiGW of 14 March 2024 - (1.1) - (1.1) LOAN FROM WFOŚiGW of 15 April 2024 - (0.8) - (0.8) LOAN FROM WFOŚiGW of 15 April 2024 - (0.3) - (0.2) LOAN FROM WFOŚiGW of 28 April 2025 - (0.7) - - LOAN FROM WFOŚiGW of 28 April 2025 - (1.8) - - FINANCING GRANTED TO JSW KOKS: - (25.8) 34.4 (28.3) PREFERENTIAL LOAN FROM NFOŚiGW - (9.3) - (11.8) LOAN FROM NFOŚiGW of 17 October 2018 - - 11.7 - LOAN FROM NFOŚiGW of 1 September 2021 - (5.4) - (5.4) LOAN FROM NFOŚiGW of 1 March 2023 - - 9.6 - LOAN FROM NFOŚiGW of 11 August 2023 - (11.1) 13.1 (11.1) FINANCING GRANTED TO PGWIR: - (0.1) 2.2 (0.5) SALE AND LEASEBACK AGREEMENTS - (0.1) 2.2 (0.5) TOTAL CASH FLOWS - (39.9) 101.0 (74.6)
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INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF THE JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. GROUP FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2026 (All amounts in tables expressed in millions of PLN unless stated otherwise) 36 Notes to these interim condensed consolidated financial statements form an integral part hereof. 6.2. LEASE LIABILITIES Lease liabilities captured in the consolidated statement of financial position: 30 June 2026 31 December 2025 Lease liabilities 649.9 677.9 TOTAL 649.9 677.9 of which: non-current 346.0 370.7 current 303.9 307.2 In its measurement of lease liabilities, the Group includes variable lease payments associated with reference interest rates. 6.3. RECONCILIATION OF DEBT The table below depicts the change in debt as at 30 June 2026: Loans and borrowings Lease liabilities TOTAL AS AT 1 JANUARY 2026 1,828.4 677.9 2,506.3 Proceeds from drawing down debt - financing received - - - New lease agreements signed - 68.1 68.1 Modification of lease agreements - 4.8 4.8 Accrued interest and fees 48.8 24.7 73.5 Debt-related payments: (89.1) (110.4) (199.5) ‒ repayment of debt (principal) (39.9) (85.7) (125.6) ‒ interest and commissions paid (30.6) (18.3) (48.9) ‒ interest and commissions paid, recognized as capitalized borrowing costs (18.6) (6.4) (25.0) FX gains and losses 8.5 0.1 8.6 Reclassified to the disposal group held for sale - (21.9) (21.9) Other increases 2.7 6.6 9.3 AS AT 30 JUNE 2026 1,799.3 649.9 2,449.2
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INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF THE JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. GROUP FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2026 (All amounts in tables expressed in millions of PLN unless stated otherwise) 37 Notes to these interim condensed consolidated financial statements form an integral part hereof. The table below depicts the movement in debt as at 31 December 2025: Loans and borrowings Lease liabilities TOTAL AS AT 1 JANUARY 2025 1,885.9 614.0 2,499.9 Proceeds from drawing down debt - financing received 125.9 - 125.9 New lease agreements signed - 298.0 298.0 Modification of lease agreements - (9.4) (9.4) Accrued interest and fees 124.1 47.8 171.9 Debt-related payments: (292.3) (274.9) (567.2) ‒ repayment of debt (principal) (168.0) (227.1) (395.1) ‒ interest and commissions paid (78.3) (37.4) (115.7) ‒ interest and commissions paid, recognized as capitalized borrowing costs (46.0) (10.4) (56.4) FX gains and losses (19.2) - (19.2) Reclassified to the disposal group held for sale - (1.5) (1.5) Other increases 4.0 3.9 7.9 AS AT 31 DECEMBER 2025 1,828.4 677.9 2,506.3
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INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF THE JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. GROUP FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2026 (All amounts in tables expressed in millions of PLN unless stated otherwise) 38 Notes to these interim condensed consolidated financial statements form an integral part hereof. 7. NOTES TO THE CONSOLIDATED STATEMENT OF FINANCIAL POSITION 7.1. PROPERTY, PLANT AND EQUIPMENT 30 June 2026 31 December 2025 Land 48.0 47.6 Buildings and structures 2,827.8 2,824.3 Expensable mining pits 1,181.7 1,155.3 Outfitting of longwalls 256.7 229.6 Technical equipment and machinery 2,083.7 1,794.4 Other property, plant and equipment 152.3 164.3 Commenced investments 1,204.0 1,309.7 PROPERTY, PLANT AND EQUIPMENT 7,754.2 7,525.2 Note For the period of 6 months ended For the period of 12 months ended For the period of 6 months ended 30 June 2026 31 December 2025 30 June 2025 Initial (gross) value at the beginning of the period 27,992.9 26,773.0 26,773.0 Accumulated amortization at the beginning of the period* (20,467.7) (17,889.9) (17,889.9) Net carrying amount at the beginning of the period 7,525.2 8,883.1 8,883.1 Addition 1,137.1 3,074.5 1,572.2 Update of the provision for mine closure costs 7.13 (17.0) 67.2 41.9 Reduction (8.8) (101.3) (9.8) Depreciation and amortization (670.7) (1,303.2) (640.8) Reclassified to the disposal group held for sale 7.10 (68.8) (16.1) - Impairment loss - recognition 7.4 (146.6) (3,818.0) (638.0) Impairment loss - reversal 7.4 3.8 739.0 8.2 NET CARRYING AMOUNT AT THE END OF THE PERIOD 7,754.2 7,525.2 9,216.8 * This item includes accumulated depreciation and impairment losses for property, plant and equipment. 7.2. INTANGIBLE ASSETS 30 June 2026 31 December 2025 Geologic information 4.3 4.3 Certificates of origin 0.2 0.5 Software 19.2 24.0 Cost of development work 3.2 31.7 Other intangible assets 6.7 6.3 TOTAL INTANGIBLE ASSETS 33.6 66.8
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INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF THE JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. GROUP FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2026 (All amounts in tables expressed in millions of PLN unless stated otherwise) 39 Notes to these interim condensed consolidated financial statements form an integral part hereof. Note For the period of 6 months ended For the period of 12 months ended For the period of 6 months ended 30 June 2026 31 December 2025 30 June 2025 Initial (gross) value at the beginning of the period 242.3 310.0 310.0 Accumulated amortization at the beginning of the period* (175.5) (162.3) (162.3) Net carrying amount at the beginning of the period 66.8 147.7 147.7 Addition 2.3 8.7 4.1 Reduction (0.5) (73.4) (4.6) Depreciation and amortization (7.5) (14.4) (7.1) Reclassified to the disposal group held for sale 7.10 (27.4) - - Impairment loss - recognition 7.4 (0.1) (3.3) (0.2) Impairment loss - reversal 7.4 - 1.5 - NET CARRYING AMOUNT AT THE END OF THE PERIOD 33.6 66.8 139.9 * This item includes accumulated amortization and impairment losses on intangible assets 7.3. RIGHT-OF-USE ASSETS 30 June 2026 31 December 2025 Land 2.2 2.0 Buildings and structures 3.8 4.6 Technical equipment and machinery 218.3 277.5 Other property, plant and equipment 47.4 48.5 Perpetual usufruct right to land 71.8 70.0 TOTAL RIGHT-OF-USE ASSET 343.5 402.6 Note For the period of 6 months ended For the period of 12 months ended For the period of 6 months ended 30 June 2026 31 December 2025 30 June 2025 Initial (gross) value at the beginning of the period 1,104.8 1,005.1 1,005.1 Accumulated amortization at the beginning of the period* (702.2) (596.5) (596.5) Net carrying amount at the beginning of the period 402.6 408.6 408.6 Addition 74.4 288.8 140.6 Reduction (20.0) (8.2) (2.4) Depreciation and amortization (87.8) (182.8) (86.4) Reclassified to the disposal group held for sale 7.10 (25.1) (8.6) - Impairment loss - recognition 7.4 (2.8) (115.5) (22.9) Impairment loss - reversal 7.4 2.2 20.3 11.4 NET CARRYING AMOUNT AT THE END OF THE PERIOD 343.5 402.6 448.9 * This item includes accumulated amortization and impairment losses of the right-of-use assets. The amount of short-term lease payments accounted as costs in the consolidated statement of profit or loss and other comprehensive income for the 6-month period ended 30 June 2026 is PLN 1.6 million, while the cost of leasing, for low-value contracts, is PLN 0.3 million (short-term lease payments for the 6-month period ended 30 June 2025 was PLN 5.1 million, while the cost of leases for low-value contracts was PLN 0.4 million).
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INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF THE JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. GROUP FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2026 (All amounts in tables expressed in millions of PLN unless stated otherwise) 40 Notes to these interim condensed consolidated financial statements form an integral part hereof. 7.4. IMPAIRMENT OF NON-FINANCIAL NON-CURRENT ASSETS IMPAIRMENT LOSSES In accordance with IAS 36 Impairment of Assets, the Group reviews from time to time whether there is any indication, either internally or externally, that an asset may be impaired. The analysis of such indications is based on a number of significant assumptions, some of which are beyond the Group’s control. Significant changes in these assumptions affect the results of impairment tests and, as a consequence, may lead to significant changes in the Group’s financial standing and financial performance. In the period of 6 months ended 30 June 2026, the Group 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. The results of the analysis: ▪ Coal Segment – as a result of the analysis 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 Group did not conduct any new impairment tests for the CGU as at 30 June 2026. ▪ Coke Segment – as a result of the analysis 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 Group did not conduct any new impairment tests for the CGU as at 30 June 2026. Impairment losses on capital expenditures are, however, recognized on an ongoing basis for individual CGUs; an impairment loss of PLN 147.8 million was recognized in H1 2026. The table below depicts movements in impairment losses for non-current assets: 30 June 2026 31 December 2025 Property, plant and equipment Intangible assets Right-of-use assets Investment property Goodwill TOTAL Property, plant and equipment Intangible assets Right-of-use assets Investment property Goodwill TOTAL OPENING BALANCE 12,572.1 21.2 285.9 5.1 57.0 12,941.3 10,160.3 22.2 214.9 14.6 57.0 10,469.0 Impairment loss recognized 146.6 0.1 2.8 - - 149.5 3,818.0 3.3 115.5 - - 3,936.8 Impairment loss reclassified * - - - - - - 9.5 - - (9.5) - - Impairment loss used (257.6) - (19.9) - - (277.5) (597.1) (2.8) (11.6) - - (611.5) Impairment loss reversed (3.8) - (2.2) - - (6.0) (739.0) (1.5) (20.3) - - (760.8) Impairment loss reclassified to accumulated depreciation ** (1.2) - (0.2) - - (1.4) (79.5) - (12.6) - - (92.1) Other reductions - (0.5) - - - (0.5) (0.1) - - - - (0.1) CLOSING BALANCE 12,456.1 20.8 266.4 5.1 57.0 12,805.4 12,572.1 21.2 285.9 5.1 57.0 12,941.3 * As at 31 December 2025, 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 concerns a technical transfer of the impairment loss allowance to accumulated depreciation – with no impact on the financial result.
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INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF THE JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. GROUP FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2026 (All amounts in tables expressed in millions of PLN unless stated otherwise) 41 Notes to these interim condensed consolidated financial statements form an integral part hereof. The recognition of impairment losses on non-financial non-current assets in the consolidated statement of profit or loss and other comprehensive income is presented in the table below: For the period of 3 months ended For the period of 6 months ended For the period of 3 months ended For the period of 6 months ended 30 June 2026 30 June 2026 30 June 2025 30 June 2025 Recognition of an impairment loss on property, plant and equipment, intangible assets and right-of-use assets (108.8) (149.5) (3.9) (661.1) Reversal of impairment loss on property, plant and equipment and right-of-use assets 5.2 6.0 13.4 19.6 TOTAL IMPAIRMENT OF NON-FINANCIAL NON-CURRENT ASSETS (103.6) (143.5) 9.5 (641.5) 7.5. INVESTMENTS IN THE FIZ ASSET PORTFOLIO In the 6-month period ended 30 June 2026, the Group held investments in a portfolio of financial assets through the Closed-End Investment Fund (“FIZ”, “Fund”), in which the Parent Company holds 100% outstanding investment certificates. The Fund has been established for a specific term until 30 December 2027 with an option of extending its term of operation by no more than three years. The carrying amount of investments in the FIZ asset portfolio was PLN 270.6 million as at 30 June 2026 (PLN 137.8 million as at 31 December 2025). The Fund’s liabilities in the consolidated statement of financial position presented as FIZ liabilities as at 30 June 2026 were PLN 165.9 million (PLN 36.6 million as at 31 December 2025). The net value of the Fund’s assets constitutes the Parent Company’s actual exposure to the Investment Certificates issued by the Fund and, as at 30 June 2026 it was PLN 104.7 million (PLN 101.2 million as at 31 December 2025). During the 6-month period ended 30 June 2026, no funds were withdrawn from the Fund through redemption of FIZ investment certificates. After the end of the reporting period, on 8 July 2026, the JSW Management Board adopted a resolution granting its consent to redeem FIZ investment certificates in the estimated amount of PLN 7.6 million. On 4 August 2026, the Parent Company’s bank account was credited with the amount of PLN 7.6 million, with the aim of financing investing activities. On 30 July 2026, the JSW Management Board adopted a resolution granting its consent to the redemption of the FIZ investment certificates covered by the financial, civil and registered pledge agreements concluded in October 2025 as collateral for interest payments to the Consortium under the Financing Agreement in the amount of PLN 2.1 million, to partially cover interest under the Financing Agreement, which happened on 28 August 2026. 30 June 2026 31 December 2025 FIZ ASSETS 270.6 137.8 Financial assets at fair value through profit or loss 270.4 136.6 Debt securities 270.4 136.6 Financial assets measured at amortized cost 0.2 1.2 Cash and cash equivalents 0.2 1.2 FIZ LIABILITIES (165.9) (36.6) Liabilities (165.9) (36.6) Liabilities on FIZ’s sell-buy-back transactions* (165.7) (36.4) Other liabilities of FIZ (0.2) (0.2) NET FIZ ASSETS** 104.7 101.2 * Sell-Buy-Back (“SBB”) transactions involve a sale of securities held and a simultaneous obligation to buy them back on the terms and conditions agreed by the parties. As a result of the transaction, the assets sold are not removed from the consolidated statement of financial position, but the cash received is recognized as a liability since not all risks and rewards under the financial instruments subject to the transaction were transferred to the buyer. By entering into SBB transactions, the Fund has the right to dispose of the securities during the term of the SBB transaction in such a way that, as at the transaction settlement date, it is possible to repay the SBB liability using the securities covered by the transactions. The party, with which FIZ entered into SBB transactions may enforce repayment of liabilities, not only under the securities subject to SBB transactions, but also under other Fund asset. An appreciation/depreciation of securities should not affect the settlement of SBB transactions, since transactions are concluded with professional capital market players and the safety of settlements under a transaction is high. SBB transactions are concluded during the reporting period in order to effectively manage the Fund’s assets and to increase the rate of return
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INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF THE JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. GROUP FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2026 (All amounts in tables expressed in millions of PLN unless stated otherwise) 42 Notes to these interim condensed consolidated financial statements form an integral part hereof. on investment. As at 30 June 2026, the carrying amount of the transferred financial assets is PLN 165.6 million. Liabilities on account of SBB transactions as at 30 June 2026 are PLN 165.7 million and include transactions concluded in the JSW Stabilization FIZ portfolio on 26 to 30 June 2026 with a buyback date of 1 July 2026 (as at 31 December 2025, SBB liabilities amounted to PLN 36.4 million and included transactions concluded in the JSW Stabilization FIZ portfolio from 29 to 30 December 2025 with a buyback date of 2 January 2026). The difference between the sales price and buy-back price is treated accordingly as interest costs and it is settled over the term of the agreement by applying an effective interest rate. In the 6-month period ended 30 June 2026, interest expense under SBB transactions was PLN 2.7 million and was recognized in other net gains/(losses) (in the 6-month period ended 30 June 2025: PLN 86.6 million). ** As at 30 June 2026 and 31 December 2025, the value of net assets of FIZ includes investment certificates securing the payment of interest due under the Consortium Financing Agreement of 12 April 2023. As at 30 June 2026 and 31 December 2025, the Fund’s assets and liabilities are expressed in PLN. Reconciliation of net cash flows from FIZ investments in the consolidated statement of cash flows: For the period of 6 months ended 30 June 2026 30 June 2025 Withdrawal of funds from FIZ by the Group, net - 2,670.1 Net proceeds/(expenditures) from SBB transactions 126.6 (2,748.4) Net proceeds from/(expenditures for) debt securities and covered bonds (132.0) 5,335.1 Change in other assets and liabilities and equity of FIZ 5.4 (2,586.7) NET CASH FLOWS FROM FIZ INVESTMENTS IN THE CONSOLIDATED STATEMENT OF CASH FLOWS - 2,670.1 Credit risk In the case of financial assets measured at amortized cost (i.e. deposits and cash and cash equivalents), the Group classifies them as Stage 1 in terms of impairment because of the high rating of their credit quality and the potential impairment allowance is not significant and it was not recognized. Credit risk 30 June 2026 31 December 2025 Amounts reflecting the maximum exposure to credit risk if the fair value of additional collateral is not taken into account: 270.6 137.8 - Cash in bank 0.2 1.2 - Investment components quoted on an active market (including State Treasury bonds) 200.9 91.3 - Investment components not quoted on an active market 69.5 45.3 The table does not include the Fund’s liabilities and therefore it does not reconcile with the table presenting the structure of the Fund’s net assets at the end of the reporting period. Significant concentration of credit risk is 10% of the issuer’s share in total assets. Credit risk 30 June 2026 31 December 2025 Instances of significant concentration of credit risk in individual investment categories, by balance sheet categories 267.8 134.0 BANK GOSPODARSTWA KRAJOWEGO (“BGK”) 66.9 42.7 Bonds not quoted on an active market 66.9 42.7 STATE TREASURY OF THE REPUBLIC OF POLAND 200.9 91.3 Bonds quoted on an active market 200.9 91.3
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INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF THE JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. GROUP FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2026 (All amounts in tables expressed in millions of PLN unless stated otherwise) 43 Notes to these interim condensed consolidated financial statements form an integral part hereof. 7.6. OTHER NON-CURRENT FINANCIAL ASSETS Note 30 June 2026 31 December 2025 Cash and cash equivalents of the Mine Closure Fund * 9.1 246.7 454.3 gross value 246.8 454.5 impairment loss (0.1) (0.2) Bank term deposits** 9.1 27.4 26.9 gross value 27.4 26.9 Financial receivables*** 9.1 10.2 11.2 Other non-financial receivables 22.9 24.4 TOTAL 307.2 516.8 * This item includes (restricted) funds accumulated to finance full or partial mine closure. ** This item includes bank term deposits securing loan agreements concluded with WFOŚiGW. *** As at 30 June 2026 and as at 31 December 2025, this item includes a security deposit of PLN 10.1 million, which is a guarantee required by the Energy Regulatory Office in the process of granting an energy trading concession to JSW, which is a restricted item. All non-current financial assets are denominated in the PLN. The fair value of non-current financial assets is not significantly different from their carrying amount. Cash and cash equivalents of the Mine Closure Fund Given the need for extraordinary measures in view of JSW’s continuing liquidity difficulties, and the prospect of obtaining external financing from Agencja Rozwoju Przemysłu S.A, in H1 2026, the JSW Management Board decided to temporarily use PLN 208 million of the funds held in the Mine Closure Fund to cover a shortfall in the amount needed to pay JSW employees’ salaries for May 2026. The resources of the Mine Closure Fund, together with interest, will be replenished to the required level promptly and no later than 30 September 2026. By the date this report was approved, JSW had replenished these funds in the amount of PLN 180 million (together with interest). Additionally, after the end of the reporting period, the JSW Management Board also decided to temporarily use a further PLN 296 million of the funds held in the Mine Closure Fund to cover shortfalls in the amounts needed to pay JSW employees’ salaries for June and August 2026. These funds, together with interest, will be replenished to the required level promptly and no later than 30 September 2026. Steps have been taken to extend this deadline to the end of October 2026. 7.7. INVENTORIES 30 June 2026 31 December 2025 Finished products 1,001.7 793.2 Materials 189.8 145.4 Production in progress 11.4 12.7 Goods 1.8 0.9 TOTAL 1,204.7 952.2 The inventories of finished products as at 30 June 2026 included, among others, inventories of 1,561.6 thousand tons of coal produced by the Group worth PLN 864.3 million and inventories of 132.3 thousand tons of coke produced by the Group worth PLN 123.3 million (as at 31 December 2025: 1,039.5 thousand tons of coal worth PLN 645.4 million and 157.1 thousand tons of coke worth PLN 139.7 million). Inventories of finished products as at 30 June 2026 include 266.0 thousand tons of coal valued at PLN 152.5 million, arising from a sale agreement with an obligation to repurchase the assets. See Note 7.14 for details.
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INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF THE JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. GROUP FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2026 (All amounts in tables expressed in millions of PLN unless stated otherwise) 44 Notes to these interim condensed consolidated financial statements form an integral part hereof. IMPAIRMENT LOSSES FOR INVENTORIES The table below presents impairment losses for inventories: For the period of 6 months ended 30 June 2026 30 June 2025 OPENING BALANCE 249.4 470.4 Impairment loss recognized 61.6 298.7 Impairment loss used (178.5) (76.8) Impairment loss reversed (5.6) - Reclassified to the disposal group held for sale (1.4) - CLOSING BALANCE 125.5 692.3 Impairment loss amounts for inventories are recognized as costs in the current reporting period, of which PLN 59.6 million of the finished products inventory (coal), PLN 2.0 million of the materials inventory (in the 6-month period ended 30 June 2025: PLN 294.4 million of the finished products inventory and PLN 4.3 million of the materials inventory). 7.8. TRADE AND OTHER RECEIVABLES Note 30 June 2026 31 December 2025 Gross trade receivables 820.7 663.0 ‒ including receivables on account of valuation of long-term contracts 0.8 26.0 Impairment loss (54.1) (57.9) Net trade receivables 9.1 766.6 605.1 Prepaid expenses 36.9 28.8 Prepayments 1.5 3.2 Receivables related to taxes and social security 122.0 155.2 Other receivables 69.9 54.5 TOTAL TRADE AND OTHER RECEIVABLES 996.9 846.8 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 2026 30 June 2025 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 0.5 57.4 57.9 0.9 55.9 56.8 Impairment loss recognized 0.7 4.8 5.5 - 5.3 5.3 Impairment loss used - (1.3) (1.3) - (7.5) (7.5) Reversal of unused amounts (0.3) (3.8) (4.1) (0.4) (1.3) (1.7) Charge transferred - (2.5) (2.5) - 0.2 0.2 Reclassified to the disposal group held for sale (0.1) (1.3) (1.4) - - - CLOSING BALANCE 0.8 53.3 54.1 0.5 52.6 53.1 * 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.
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INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF THE JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. GROUP FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2026 (All amounts in tables expressed in millions of PLN unless stated otherwise) 45 Notes to these interim condensed consolidated financial statements form an integral part hereof. 7.9. CASH AND CASH EQUIVALENTS Note 30 June 2026 31 December 2025 Cash at bank and in hand 83.9 708.5 gross value 83.9 708.6 impairment loss - (0.1) Short-term bank deposits 33.2 88.5 gross value 33.2 88.5 TOTAL 9.1 117.1 797.0 including restricted cash 68.6 79.7 The value of restricted cash as at 30 June 2026 was PLN 68.6 million (31 December 2025: PLN 79.7 million) and included funds deposited in the VAT account (under the split-payment arrangement), bid bonds, subsidies and performance bonds. In the course of its business, the Group makes payments on the above accounts on an ongoing basis. 7.10. DISPOSAL GROUP HELD FOR SALE The carrying amounts of assets and liabilities included in the disposal group, which was classified as held for sale as at the last date of the reporting period: a) disposal of a property with a building in Katowice: 30 June 2026 31 December 2025 Property, plant and equipment - 16.1 Right-of-use asset - 8.6 Total assets held for sale - 24.7 Lease liabilities - (1.5) Total liabilities related to assets held for sale - (1.5) NET ASSETS OF THE DISPOSAL GROUP HELD FOR SALE - 23.2 On 19 November 2025, the JSW Management Board approved the sale of a property with an office building together with technical infrastructure and equipment, located at ul. I. Paderewskiego 41 in Katowice. On 9 December 2025, the JSW Supervisory Board granted its consent to the sale of this property. On 6 February 2026, an oral tender was conducted for the sale of the perpetual usufruct right to this property, as a result of which a buyer was selected who purchased the property for PLN 28.5 million. The carrying amount of the assets and liabilities linked to the above property, presented as a disposal group held for sale concerning the Coal segment, was PLN 23.3 million as at 31 March 2026. On 30 April 2026, the delivery and acceptance report was signed for the property handed over to a new owner. The Group recognized a net profit of PLN 5.2 million in the consolidated statement of profit or loss and other comprehensive income. b) sale of shares in PBSz: 30 June 2026 31 December 2025 Property, plant and equipment 68.8 - Intangible assets 27.4 - Investment property 2.7 - Right-of-use asset 25.1 - Other non-current assets 2.5 - Inventories 3.9 - Trade and other receivables 79.8 - Other current financial assets 0.1 -
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INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF THE JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. GROUP FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2026 (All amounts in tables expressed in millions of PLN unless stated otherwise) 46 Notes to these interim condensed consolidated financial statements form an integral part hereof. 30 June 2026 31 December 2025 Cash and cash equivalents 16.6 - Total assets held for sale 226.9 - Deferred tax liabilities (0.9) - Current income tax liabilities (0.8) - Employee benefit liabilities (30.0) - Provisions (1.6) - Lease liabilities (21.9) - Trade and other liabilities (88.3) - Total liabilities related to assets held for sale (143.5) - NET ASSETS OF THE DISPOSAL GROUP HELD FOR SALE 83.4 - As at 30 June 2026, the Group assessed that, in connection with the concluded PRE-SPA agreement (details in Note 4.7), the IFRS 5 conditions for classifying assets and liabilities of PBSz related to Other Segments as a disposal group held for sale had been met, and measured them at carrying amount of PLN 83.4 million. Fair value was estimated at the level of the preliminary sale price under the PRE-SPA, which was set at PLN 274.4 million for the PBSz shares. After the end of the reporting period, i.e., on 17 August 2026, the JSW Management Board adopted a resolution approving the submission of an application to ARP for a loan in the amount of PLN 1,066.0 million, which would replace the sale of shares in PBSz and JZR to ARP, as previously contemplated in the PRE-SPA (details in Note 1.2.). 7.11. EQUITY 7.11.1. SHARE CAPITAL Number of shares Ordinary shares par value Hyperinflation adjustment Total As at 30 June 2026 117,411,596 587.0 664.9 1,251.9 As at 31 December 2025 117,411,596 587.0 664.9 1,251.9 As at 30 June 2026, 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. At the end of the reporting period, all of the Parent 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. 7.11.2. CAPITAL ON REVALUATION OF FINANCIAL INSTRUMENTS Change in capital on revaluation of financial instruments 30 June 2026 31 December 2025 OPENING BALANCE 20.5 1.2 Change in valuation of hedging instruments, including: (13.9) 69.6 - positive valuation driven by the change in fair value of the effective part of hedging instruments 0.6 50.4 - negative valuation driven by the change in fair value of the effective part of hedging instruments (6.0) - - valuation driven by the change in fair value of the effective part of hedging instruments (loans) (8.5) 19.2 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) (6.2) (45.8) Deferred tax 3.8 (4.5) CLOSING BALANCE 4.2 20.5
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INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF THE JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. GROUP FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2026 (All amounts in tables expressed in millions of PLN unless stated otherwise) 47 Notes to these interim condensed consolidated financial statements form an integral part hereof. 7.11.3. DIVIDENDS PAID AND PROPOSED For the period of 6 months ended 30 June 2026 30 June 2025 Dividends - - Number of ordinary shares as at the dividend record date 117,411,596 117,411,596 DIVIDEND PER SHARE (IN PLN PER SHARE) - - Net loss coverage and accounting for Other comprehensive income for 2025 On 8 June 2026, the Ordinary Shareholder Meeting of JSW adopted a resolution to cover the full amount of JSW’s net loss of PLN 5,058.9 for the financial year ended 31 December 2025 with JSW’s supplementary capital, and a resolution to cover the net loss recognized in Other comprehensive income for 2025, arising from the valuation of post-employment defined benefit plans in the amount of PLN 28.3 million with JSW’s supplementary capital. Distribution of profit from previous years On 8 June 2026, the Ordinary Shareholder Meeting of JSW adopted a resolution to allocate JSW’s retained earnings arising from JSW’s merger with the JSW Nowe Projekty S.A. subsidiary as at 31 December 2025 in the amount of PLN 1.3 million to JSW's supplementary capital. 7.12. EMPLOYEE BENEFIT LIABILITIES 30 June 2026 31 December 2025 EMPLOYEE BENEFIT LIABILITIES CAPTURED IN THE CONSOLIDATED STATEMENT OF FINANCIAL POSITION ON ACCOUNT OF: - jubilee awards 406.4 502.3 - retirement and disability severance pays 260.3 289.8 - adjustment disability benefits 82.8 94.1 - death benefits 15.8 17.7 - write-offs for the Company Social Benefits Fund for old-age and disability pensioners 33.0 31.5 - other employee benefits 158.8 167.2 TOTAL 957.1 1,102.6 of which: - long-term 700.8 806.4 - short-term 256.3 296.2 As at 30 June 2026, the Parent Company updated its employee benefit liabilities, recognizing the amount of employee benefit liabilities on account of retirement and disability severance pays, death benefits, jubilee awards, adjustment disability benefits on the basis of an actuarial valuation calculated by an independent actuarial consulting firm. The liability for unused holiday leaves was updated based on the quarterly calculation of the related provision by Group companies. In other Group companies, the amounts of employee benefit liabilities: retirement and disability severance pays, jubilee awards, adjustment disability benefits and death benefits recognized as at 30 June 2026 are calculated on the basis of actuarial projections of those liabilities calculated as at 31 December 2025. The grant agreements signed by JSW and the Ministry of Energy to fund safety net benefits in 2026 (details in Note 2.4) are expected to reduce the Group’s workforce as employees take up the respective benefits. The estimated reduction in headcount was reflected in the actuarial valuation as at 30 June 2026. An update of the actuarial provisions as at 30 June 2026 for the planned payment of safety net benefits in 2026 resulted in a PLN 59.0 million reduction or reversal of provisions for employee benefits.
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INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF THE JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. GROUP FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2026 (All amounts in tables expressed in millions of PLN unless stated otherwise) 48 Notes to these interim condensed consolidated financial statements form an integral part hereof. Other material actuarial assumptions adopted as at the end dates of the reporting periods*: 30 June 2026 31 December 2025 Discount rate 5.25% 5.06% 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 2026** 2.30% 2.20% Weighted average employee mobility ratio 2.06% 2.01% * As at 30 June 2026, the Group had 29,630 employees, of which 19,371, or 65.4%, were JSW employees, and therefore the actuarial valuation assumptions used in the Parent Company had the greatest impact on the level of employee benefit liabilities (as at 31 December 2025 the Group had 30,767 employees, including 20,488 JSW employees, i.e. 66.6%). ** The calculation of the provision as at 30 June 2026 and 31 December 2025 assumes no wage increases in 2026-2028, and in 2029 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%. 7.13. PROVISIONS Mine closures Mining damage Environmental protection Other provisions Total AS AT 1 JANUARY 2026 non-current 1,087.4 280.2 103.2 13.8 1,484.6 current 29.5 109.7 30.3 156.5 326.0 TOTAL 1,116.9 389.9 133.5 170.3 1,810.6 Recognition of additional provisions - 55.9 0.2 40.8 96.9 Provision recognized - interest expense 27.5 - 2.3 - 29.8 Reversal of unused provisions - (10.8) (1.2) (15.2) (27.2) Revaluation of the provision (17.0) - - - (17.0) Provisions used (6.1) (39.2) (1.5) (9.4) (56.2) Reclassified to the disposal group held for sale - - - (1.6) (1.6) AS AT 30 JUNE 2026 non-current 1,097.9 276.3 104.4 14.6 1,493.2 current 23.4 119.5 28.9 170.3 342.1 TOTAL 1,121.3 395.8 133.3 184.9 1,835.3 MINE CLOSURES The Group recognizes a provision for future costs associated with mine closures 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 2026, the Group updated the non-current provision for mine closures while adopting these assumptions. 30 June 2026 31 December 2025 Inflation rate in 2026 0.60%* 2.90% Inflation rate in 2027 2.80% 2.50% Inflation rate in 2028 2.40% 2.50% Inflation rate from 2029 2.50% 2.50% Discount rate from 2026 to 2035 5.25% 5.06% Discount rate from 2036 2.50% 2.50% * Inflation rate at 0.60% used to calculate the mine closure provision as at 30 June 2026 refers to H2 2026 (an inflation rate of 2.30% was assumed for H1 2026).
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INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF THE JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. GROUP FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2026 (All amounts in tables expressed in millions of PLN unless stated otherwise) 49 Notes to these interim condensed consolidated financial statements form an integral part hereof. 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 2026, the provision was decreased by PLN 17.0 million. As at 30 June 2026, the amount of the provision for mine closure costs is PLN 1,121.3 million. MINING DAMAGE In view of the statutory obligation to repair the damage caused by the operation of mines belonging to JSW, the Group recognizes a provision for mining damage. As at 30 June 2026, the Group remeasured its provision for mining damage by incorporating an inflation rate of 2.30% 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 2026, the value of works required to remedy mining damage is PLN 395.8 million. ENVIRONMENTAL PROTECTION Based on the administrative decisions received, current zoning plans and the applicable act on the protection of arable land, JSW is legally obligated to reclaim the storage yards after it discontinues its industrial activity. As at 30 June 2026, the Parent Company updated the long-term provision while adopting the following assumptions: 30 June 2026 31 December 2025 Inflation rate in 2026 2.90% 2.90% Inflation rate in 2027 2.80% 2.50% Inflation rate in 2028 2.40% 2.50% Inflation rate from 2029 2.50% 2.50% Discount rate from 2026 to 2035 5.25% 5.06% Discount rate from 2036 2.50% 2.50% As at 30 June 2026, the Parent Company holds a provision for environmental protection associated with biological reclamation of land in the total amount of PLN 103.4 million. As at 30 June 2026, the Parent 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. Also, the Group’s coke plants recognize a provision for the costs of remediation of the contaminated areas. According to the law regulating the issues of soil, earth and groundwater pollution, the holder of the land where contamination of the earth's surface occurs is obliged to carry out remediation. As at 30 June 2026, the provision on this account recognized in the books is PLN 11.9 million. OTHER PROVISIONS Other provisions include mainly: ▪ the provision for the refund of redeemed CO₂ emission allowances for 2021-2025 in the amount of PLN 59.6 million, which was established in connection with the European Commission's questioning of the possibility of operating the gas flare stack sub-installation within the coke production facility as a source that burns coke oven gas only for safety reasons, despite the earlier approval of the reports (as at 31 December 2025: PLN 51.1 million), ▪ provision for lawsuits brought by natural persons in the Parent Company in the amount of PLN 30.3 million (as at 31 December 2025: PLN 26.3 million), ▪ the provision for the liquidation costs of the Dębieńsko Coking Plant in the amount of PLN 2.6 million (PLN 0.6 million as at 31 December 2025), ▪ provision for the litigation against JSW filed by Elektrometal S.A. for payment of a due amount in the amount of PLN 9.1 million (as at 31 December 2025: PLN 9.1 million), ▪ provision for the litigation filed against JSW by Grenevia S.A. (Famur S.A.) for compensation in the amount of PLN 7.2 million (as at 31 December 2025: PLN 7.2 million), ▪ the provision for other litigation against Group companies for the total amount of PLN 44.6 million (as at 31 December 2025: PLN 42.4 million), ▪ provision for future liabilities related to payment refusals in the amount of PLN 3.5 million (as at 31 December 2025: PLN 3.1 million).
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INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF THE JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. GROUP FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2026 (All amounts in tables expressed in millions of PLN unless stated otherwise) 50 Notes to these interim condensed consolidated financial statements form an integral part hereof. 7.14. TRADE AND OTHER LIABILITIES 30 June 2026 31 December 2025 FINANCIAL LIABILITIES Trade liabilities 1,599.3 1,430.7 Accruals and deferred income 123.4 107.5 Other financial obligations, including: 527.1 338.0 – investment liabilities 297.7 259.6 - liability under the repurchase agreement * 168.5 - – other liabilities 60.9 78.4 TOTAL 2,249.8 1,876.2 NON-FINANCIAL LIABILITIES Deferred income 101.2 101.1 Other liabilities of a non-financial nature, including: 3,024.9 2,344.4 - liabilities for social security contributions and other taxes** 1,807.6 1,545.7 - trade advances 42.7 75.4 - remuneration*** 709.3 658.8 - advance payment received for the sale of shares in PBSz and JZR 400.0 - - other 65.3 64.5 TOTAL 3,126.1 2,445.5 TOTAL TRADE AND OTHER LIABILITIES 5,375.9 4,321.7 of which: non-current 127.7 129.1 current 5,248.2 4,192.6 * As at 30 June 2026, this item included a coal sale transaction with a repurchase obligation. * As at 30 June 2026, this item included a liability in respect of deferred and installment-based ZUS contributions of PLN 959.4 million (as at 31 December 2025 this item includes a liability related to deferred ZUS contributions in the amount of PLN 607.6 million). *** As at 30 June 2026 and 31 December 2025, this line item included, among others: a) liability in respect of the unpaid 14th salary for 2025 at JSW in the amount of PLN 221.5 million, the payment date of which has been deferred to 2027 in accordance with the Memorandum of Agreement of 13 February 2026 signed between the JSW Management Board and the Representative Trade Union Organizations operating at JSW; and b) liability on account of the Miner's Day award and the St. Barbara’s Day cash equivalent for 2025, equal to 70% of the benefits due, i.e. a total amount of PLN 145.5 million, based on the decision of the JSW Management Board of 27 November 2025, due to JSW’s very difficult liquidity position. In accordance with the Memorandum of Agreement of 13 February 2026 signed between the JSW Management Board and the Representative Trade Union Organizations operating at JSW, this liability will be paid in two installments: by 31 August 2026 and by 3 December 2026. Material judgments In the period of 6 months ended 30 June 2026, the Group entered into a hard coal sale agreement with an agreement establishing an obligation to repurchase it by 30 November 2026. Given the repurchase obligation, as well as the provisions of IFRS 15, the Management Board made a judgment that the sale and repurchase agreement did not result in a transfer of control over the asset and therefore the transaction should be interpreted as financing. The Group did not recognize sales revenue at the moment of entering into the sales agreement and, in the statement of financial position, it continues to recognize the asset (as Inventories - Note 7.7.). At the same time, due to the fact that the agreed upon repurchase price is higher than the sales price, the Group recognized a financial liability on account of the repurchase agreement in the total amount of PLN 168.5 million. The Group accounts for the difference between the repurchase price and the sale price as interest expense during the term of the agreement (in H1 2026, the interest expense was PLN 5.9 million and was recognized in the financial costs item). In the statement of cash flows, the payment received was recognized by the Group in the amount of PLN 162.6 million as Payment under the repurchase agreement in financing activities.
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INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF THE JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. GROUP FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2026 (All amounts in tables expressed in millions of PLN unless stated otherwise) 51 Notes to these interim condensed consolidated financial statements form an integral part hereof. 8. NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS 8.1. CASH (EXPENDITURES) IN OPERATING ACTIVITIES Note For the period of 6 months ended 30 June 2026 30 June 2025 (restated) Loss before taxation (1,098.1) (2,485.3) Depreciation and amortization 4.2 758.5 726.9 Gain/(loss) on the disposal/liquidation of property, plant and equipment 4.5 (2.4) 4.6 Interest and profit-sharing 41.5 (50.0) Change in employee benefit liabilities (92.3) 58.4 Change in provisions 43.3 60.5 Change in inventories 7.7 (256.4) 176.7 Change in trade and other receivables (228.9) 180.6 Change in trade and other liabilities 532.5 (255.7) Change in financial derivatives 4.3 (26.1) Impairment loss on property, plant and equipment, intangible assets and right-of-use assets 7.4 143.5 641.5 Cash reclassified to the disposal group held for sale 7.10 (16.6) - Other cash flows 8.0 5.0 CASH (EXPENDITURES) IN OPERATING ACTIVITIES (163.1) (962.9) Reconciliation of changes in employee benefit liabilities in the consolidated statement of cash flows: Note For the period of 6 months ended 30 June 2026 30 June 2025 Change in employee benefit liabilities from the consolidated statement of financial position 7.12 (145.5) 83.6 Actuarial gains/(losses) captured in other comprehensive income 23.2 (25.2) Reclassified to the disposal group held for sale 7.10 30.0 - CHANGE IN EMPLOYEE BENEFIT LIABILITIES IN THE CONSOLIDATED STATEMENT OF CASH FLOWS (92.3) 58.4 Reconciliation of the change in provisions in the consolidated statement of cash flows: Note For the period of 6 months ended 30 June 2026 30 June 2025 Change in provisions in the consolidated statement of financial position 7.13 24.7 102.4 Update of the provision for mine closure costs 7.1, 7.13 17.0 (41.9) Reclassified to the disposal group held for sale 7.10 1.6 - CHANGE IN PROVISIONS IN THE CONSOLIDATED STATEMENT OF CASH FLOWS 43.3 60.5 Reconciliation of the change in inventories in the consolidated statement of cash flows: Note For the period of 6 months ended 30 June 2026 30 June 2025 Change in inventories in the consolidated statement of financial position 7.7 (252.5) 176.7 Reclassified to the disposal group held for sale 7.10 (3.9) - CHANGE IN INVENTORIES IN THE CONSOLIDATED STATEMENT OF CASH FLOWS (256.4) 176.7
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INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF THE JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. GROUP FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2026 (All amounts in tables expressed in millions of PLN unless stated otherwise) 52 Notes to these interim condensed consolidated financial statements form an integral part hereof. Reconciliation of change in trade and other receivables in the consolidated statement of cash flows: Note For the period of 6 months ended 30 June 2026 30 June 2025 Change in trade and other receivables from the consolidated statement of financial position 7.8 (150.1) 180.6 Commissions paid on loans and borrowings and amortized over time - (1.1) Other 1.0 1.1 Reclassified to the disposal group held for sale 7.10 (79.8) - CHANGE IN TRADE AND OTHER RECEIVABLES IN THE CONSOLIDATED STATEMENT OF CASH FLOWS (228.9) 180.6 Reconciliation of the change in financial derivatives in the consolidated statement of cash flows: For the period of 6 months ended 30 June 2026 30 June 2025 Change in financial derivatives in the consolidated statement of financial position 15.9 (50.9) Gains/(losses) on measurement of hedging instruments in other comprehensive income transferred to the financial result in connection with the realization of the hedged position (11.6) 24.8 CHANGE IN FINANCIAL DERIVATIVES IN THE CONSOLIDATED STATEMENT OF CASH FLOWS 4.3 (26.1)
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INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF THE JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. GROUP FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2026 (All amounts in tables expressed in millions of PLN unless stated otherwise) 53 Notes to these interim condensed consolidated financial statements form an integral part hereof. 9. NOTES TO THE FINANCIAL INSTRUMENTS 9.1. CATEGORIES AND CLASSES OF FINANCIAL INSTRUMENTS FINANCIAL ASSETS Financial instrument categories Financial instrument classes Note Amortized cost Fair value through profit or loss Hedging instruments Total AS AT 30 JUNE 2026 Debt securities 7.5 - 270.4 - 270.4 Cash and cash equivalents in FIZ 7.5 0.2 - - 0.2 gross value 0.2 - - 0.2 Interests in other entities - 0.1 - 0.1 Trade receivables 7.8 766.6 - - 766.6 gross value 820.7 - - 820.7 impairment losses (54.1) - - (54.1) Financial derivatives - 0.4 0.1 0.5 Non-current financial receivables 7.6 10.2 - - 10.2 gross value 10.2 - - 10.2 Bank term deposits 7.6 49.7 - - 49.7 gross value 49.7 - - 49.7 Cash and cash equivalents * 7.6,7.9 363.8 - - 363.8 gross value 363.9 - - 363.9 impairment losses (0.1) - - (0.1) TOTAL 1,190.5 270.9 0.1 1,461.5 * This item also includes funds accumulated to finance the closure of a mine (Cash and cash equivalents of the Mine Closure Fund) – Note 7.6. None of the significant financial assets that were not overdue were renegotiated during the last year. FINANCIAL ASSETS Financial instrument categories Financial instrument classes Note Amortized cost Fair value through profit or loss Hedging instruments Total AS AT 31 DECEMBER 2025 Debt securities 7.5 - 136.6 - 136.6 Cash and cash equivalents in FIZ 7.5 1.2 - - 1.2 gross value 1.2 - - 1.2 Interests in other entities - 0.1 - 0.1 Trade receivables 7.8 605.1 - - 605.1 gross value 663.0 - - 663.0 impairment losses (57.9) - - (57.9) Financial derivatives - 2.7 4.0 6.7 Non-current financial receivables 7.6 11.2 - - 11.2 gross value 11.2 - - 11.2 Bank term deposits 7.6 49.3 - - 49.3 gross value 49.3 - - 49.3
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INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF THE JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. GROUP FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2026 (All amounts in tables expressed in millions of PLN unless stated otherwise) 54 Notes to these interim condensed consolidated financial statements form an integral part hereof. Financial instrument categories Financial instrument classes Note Amortized cost Fair value through profit or loss Hedging instruments Total Cash and cash equivalents * 7.6,7.9 1,251.3 - - 1,251.3 gross value 1,251.6 - - 1,251.6 impairment losses (0.3) - - (0.3) TOTAL 1,918.1 139.4 4.0 2,061.5 * This item also includes funds accumulated to finance the closure of a mine (Cash and cash equivalents of the Mine Closure Fund) – Note 7.6. FINANCIAL LIABILITIES Financial instrument categories Financial instrument classes Note Amortized cost Fair value through profit or loss Hedging instruments Outside the scope of Total IFRS 9 AS AT 30 JUNE 2026 Loans and borrowings 6.1 1,461.4 - 337.9 - 1,799.3 Financial derivatives - 4.2 5.8 - 10.0 Liabilities on the Fund’s sell-buy-back transactions 7.5 165.7 - - - 165.7 Other liabilities of FIZ 7.5 0.2 - - - 0.2 Lease liabilities 6.2 - - - 649.9 649.9 Trade and other financial liabilities 7.14 2,249.8 - - - 2,249.8 TOTAL 3,877.1 4.2 343.7 649.9 4,874.9 Financial instrument categories Financial instrument classes Note Amortized cost Fair value through profit or loss Hedging instruments Outside the scope of Total IFRS 9 AS AT 31 DECEMBER 2025 Loans and borrowings 6.1 1,499.2 - 329.2 - 1,828.4 Financial derivatives - 0.3 - - 0.3 Liabilities on the Fund’s sell-buy-back transactions 7.5 36.4 - - - 36.4 Other liabilities of FIZ 7.5 0.2 - - - 0.2 Lease liabilities 6.2 - - - 677.9 677.9 Trade and other financial liabilities 7.14 1,876.2 - - - 1,876.2 TOTAL 3,412.0 0.3 329.2 677.9 4,419.4 As at 30 June 2026 and as at 31 December 2025, 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 9.2.
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INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF THE JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. GROUP FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2026 (All amounts in tables expressed in millions of PLN unless stated otherwise) 55 Notes to these interim condensed consolidated financial statements form an integral part hereof. 9.2. FAIR VALUE HIERARCHY In the 6-month period ended 30 June 2026, the Group made no changes in the fair value measurement method for financial instruments carried at fair value (fair value measurement method is described in Note 9.2. of the Consolidated Financial Statements of the Jastrzębska Spółka Węglowa S.A. Group for the financial year ended 31 December 2025). In the 6-month period ended 30 June 2026, there were no transfers between individual levels of the fair value hierarchy. Fair value of financial instruments: 30 June 2026 31 December 2025 Level 1 Level 2 Level 1 Level 2 Carrying amount Fair value Carrying amount Fair value Carrying amount Fair value Carrying amount Fair value FINANCIAL ASSETS: Investments in the FIZ asset portfolio, including: debt securities 200.9 200.9 69.5 69.5 91.3 91.3 45.3 45.3 Financial derivatives, including: - - 0.5 0.5 - - 6.7 6.7 financial assets – FX hedges - - 0.1 0.1 - - 4.0 4.0 FINANCIAL LIABILITIES Financial derivatives, including: - - 10.0 10.0 - - 0.3 0.3 financial liabilities – FX hedges - - 5.8 5.8 - - - - Loans and borrowings - - 1,799.3 1,803.3 - - 1,828.4 1,852.6 The Group does not disclose the fair value of financial instruments measured in the consolidated 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). 9.3. FINANCIAL RISK MANAGEMENT 9.3.1. FINANCIAL RISKS In its business activity, the Group is exposed 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. The prices of coking coal depend heavily on demand in the global metallurgical and steel markets. 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 the Group. In order to mitigate the risk of fluctuations in daily index prices, the Group 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 the Group’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 the Group in relation to Australian coal prices.
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INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF THE JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. GROUP FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2026 (All amounts in tables expressed in millions of PLN unless stated otherwise) 56 Notes to these interim condensed consolidated financial statements form an integral part hereof. Considering the quotes affecting the Group’s prices in a given quarter, the increase in the average benchmark price for coking coal in Q2 2026 (the average price in the period from January 2026 to May 2026) versus Q2 2025 (the average price in the period from January 2025 to May 2025) was over 26% (Premium Low Vol: 235 USD/t in Q2 2026 vs. 186 USD/t in Q2 2025). The average price of Australian PLV coking coal for the 6-month period ended 30 June 2026 was 236.47 USD/t FOB Australia, 28.1% higher than the average for the 6-month period ended 30 June 2025, which was 184.64 USD/t FOB Australia. On the other hand, the average price of Chinese coke on an FOB basis (62/60 CSR) for the 6-month period ended 30 June 2026 was 231.61 USD/t, 11.9% higher than in the 6-month period ended 30 June 2025 (207.00 USD/t). The above market conditions were reflected in the prices commanded by the Group. The total actual average coal price in the 6-month period ended 30 June 2026 was 633.94 PLN/t and was 1.2% higher than one in the corresponding period of the previous year. The average price of coking coal in this period was 745.35 PLN/t (up 4.3% compared to the corresponding period of the previous year), and the average price of steam coal was 312.41 PLN/t (up 0.9% compared to the corresponding period of the previous year). Coke prices are negotiated on the basis of current market conditions. The Group’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 the Group 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 the Group 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 2026, there was a 7% increase in the benchmark price (based on Q1 2026 quoted prices) vs. the Q2 2025 benchmark price (which is based on Q1 2025 quotations) (278 USD/t in Q1 2026; 261 USD/t in Q1 2025). The average price of coke sold in the 6 months ended 30 June 2026 was 956.55 PLN/t, down 8.5% from the corresponding period of 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 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. 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 prices that could be viewed as 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. The deliveries were increasing and have become regular since early 2025. 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. The Group 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 Group 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 Group’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). A downturn in global economies, in particular in the steel and power industry or events causing a significant decline in demand for coal and coke, may have an adverse impact on the Group’s activity, results and financial standing.
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INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF THE JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. GROUP FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2026 (All amounts in tables expressed in millions of PLN unless stated otherwise) 57 Notes to these interim condensed consolidated financial statements form an integral part hereof. 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.), the conflict in Iran (an increase in sea freight costs, fuel, energy, 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 Group 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 Group observes the rules described in the JSW 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 the Group is to reduce the impact of fluctuations in coking coal prices on the Group’s cash flows to an acceptable level. The Group 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. The Group 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. Hedge accounting In the 6-month period ended 30 June 2026, the Group did not implement and had no active transactions hedging the prices of coking coal (commodity swaps). On the other hand, in H1 2025, the Group designated for hedge accounting a commodity swap with a notional amount of 15.0 thousand tons, which hedged the risk of coking coal price changes. As at 30 June 2025, the Group had active derivative transactions (commodity swap) with a total nominal value of 15.0 thousand tons, all of which constituted hedging transactions within the meaning of hedge accounting. After the hedged position was realized, in H1 2025, the amount of PLN 7.9 million was recognized in sales revenues – Note 4.1. Price risk - other The Group holds investments in the FIZ asset portfolio measured at fair value through profit or loss (which include mainly bonds issued by the State Treasury listed on an active market), which are exposed to a price risk resulting from a change in rating of the issuer of the securities. 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 2026 31 December 2025 Change in the fair value of FIZ net assets (4.1) (3.9) Effect on results before tax (4.1) (3.9) Tax effect 0.8 0.7 IMPACT ON NET RESULT (3.3) (3.2) b) FOREIGN EXCHANGE RISK The Group 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 Group originates from the sale of its products: ▪ sales denominated in EUR and USD, ▪ sales indexed to EUR and USD.
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INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF THE JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. GROUP FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2026 (All amounts in tables expressed in millions of PLN unless stated otherwise) 58 Notes to these interim condensed consolidated financial statements form an integral part hereof. 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 2026 31 December 2025 30 June 2026 31 December 2025 net result other comprehensive income net result other comprehensive income net result other comprehensive income net result other comprehensive income % change 3.7% 4.8% 8.2% 9.1% Change in the value of financial assets 12.4 - 12.3 - 4.3 - 7.2 - Change in the value of financial liabilities (13.8) (14.4) (9.5) (17.1) (8.6) (31.6) (8.7) (15.0) Effect on results before tax or other comprehensive income (1.4) (14.4) 2.8 (17.1) (4.3) (31.6) (1.5) (15.0) Tax effect 0.3 2.7 (0.5) 3.3 0.8 6.0 0.3 2.8 IMPACT ON NET RESULT (1.1) 2.3 (3.5) (1.2) IMPACT ON OTHER COMPREHENSIVE (11.7) (13.8) (25.6) (12.2) * 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 Group’s policy is to mitigate the exchange risk arising from its exposure to foreign currencies. The Group 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 Group in accordance with the JSW Group’s FX Risk Management Policy and procedure. The Group has in place a Financial Risk Committee responsible for making key FX risk management decisions, in particular for hedging contracted and planned cash flows. In order to mitigate FX risk, in the 6-month period ended 30 June 2026, the Group concluded FX forward (external) transactions, in accordance with the hedge ratios adopted by JSW's Management Board and the Financial Risk Committee at the JSW Group. The maturity of the transactions did not exceed 12 months. In its FX risk management processes, the Group also 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 2026, the Group designated FX forward transactions with a nominal amount of EUR 36.0 million and USD 65.0 million for hedge accounting. At the same time, the Group continued hedge accounting for the FX Forward transactions concluded in 2025. As at 30 June 2026, the Group had outstanding FX Forward derivatives with a total notional amount of EUR 120.7 million and USD 102.0 million, of which EUR 36.0 million and USD 74.0 million were hedge transactions for hedge accounting purposes. Derivative transactions hedge proceeds from the sales of products which the Group expects to receive by April 2027. At the same time, in the 6-month period ended 30 June 2026, the Group 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. As a result of the application of hedge accounting in the 6-month period ended 30 June 2026, the effective portion of the change in the fair value of the hedges amounting to PLN (13.9) million was recognized in other comprehensive income (PLN 61.9 million in the 6-month period ended 30 June 2025). After the hedged position was realized, in the period of the 6-month period ended 30 June 2026, the amount of PLN 6.2 million was captured in the financial result of the period (PLN 13.8 million in the 6-month period ended 30 June 2025), which was recognized in sales revenues – Note 4.1. The ineffective part of the change in the fair value and the change in the fair value of derivatives not designated for hedge accounting in the amount of PLN (4.2) million were recognized in the profit or loss of the 6-month period ended 30 June 2026 (in the 6-month period ended 30 June 2025: the ineffective portion of the change in the fair value of PLN 0.1 million and a change in the fair value of derivatives not designated for hedge accounting of PLN 20.2 million).
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INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF THE JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. GROUP FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2026 (All amounts in tables expressed in millions of PLN unless stated otherwise) 59 Notes to these interim condensed consolidated financial statements form an integral part hereof. c) RISK OF CASH FLOW VOLATILITY CAUSED BY CHANGES IN INTEREST RATES The main sources of interest rate risk in the Group include: ▪ investments in the FIZ asset portfolio, ▪ cash and cash equivalents and deposits, ▪ loans and borrowings, ▪ lease liabilities. The Group is exposed to interest rate risk primarily in PLN, USD and EUR. The Group’s exposure to interest rate risk concerns primarily potential changes in cash flows caused by shifts in market interest rates. The Group 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 mainly 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 2026 reflects the hypothetical change in the level of the PLN reference rate. Impact of an increase in the interest rate: PLN interest rate USD interest rate EUR interest rate 30 June 2026 31 December 2025 30 June 2026 31 December 2025 30 June 2026 31 December 2025 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 3.6 7.2 11.5 23.0 - - - - - - - - Change in the value of financial liabilities (14.4) (28.8) (14.9) (29.7) (1.1) (2.1) (1.0) (2.1) (2.3) (4.7) (2.3) (4.6) Effect on results before tax (10.8) (21.6) (3.4) (6.7) (1.1) (2.1) (1.0) (2.1) (2.3) (4.7) (2.3) (4.6) Tax effect 2.0 4.1 0.6 1.3 0.2 0.4 0.2 0.4 0.4 0.9 0.4 0.9 IMPACT ON NET RESULT (8.8) (17.5) (2.8) (5.4) (0.9) (1.7) (0.8) (1.7) (1.9) (3.8) (1.9) (3.7) 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 2026, credit risk is concentrated in two of the Group’s largest clients, from which trade receivables represent, respectively, 39.1% and 15.6% of all trade receivables and the companies, in which the State Treasury is a shareholder, trade receivables from which represented 6.5% of all trade receivables (as at 31 December 2025: respectively, 36.3%, 7.7% and 8.4% of all trade receivables). In the period of 6 months ended 30 June 2026, the Group did not observe any significant deterioration of the ability to pay its liabilities on time or an increase in bankruptcies or restructurings among its customers. The main element of the Group’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 Group 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. Accordingly, as at 30 June 2026, the Group 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 Group 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.
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INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF THE JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. GROUP FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2026 (All amounts in tables expressed in millions of PLN unless stated otherwise) 60 Notes to these interim condensed consolidated financial statements form an integral part hereof. The credit risk pertaining to cash and cash equivalents and deposits is limited because the Group invests its cash in banks with established market position and holding a rating awarded by international rating agencies. 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 2026 is approx. 47.9% of the permitted limit (as at 31 December 2025: approx. 26% of the permitted limit). Credit risk associated with investments in the FIZ asset portfolio is presented in Note 7.5. According to the Group’s assessment, the maximum exposure to credit risk as at 30 June 2026 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 FIZ assets portfolio. e) LIQUIDITY RISK As cash flow and the level of cash generated are highly dependent on coal and coke sale prices, global macroeconomic trends, including, among others, exchange rates, with a fixed and high level of operating expenses, and also in connection with the constantly high level of investment expenditures, the Group is exposed to liquidity risk in the case of considerable deterioration of the market situation. The very challenging market conditions persisting in H1 2026 continued to prevent the Company from generating strong positive net cash flows from operating activities, and the Group also recorded negative net cash flows from investing and financing activities, which resulted on a considerable reduction of balance of available cash in H1 2026. Materialization of the risk of loss of liquidity is one of the most important factors that may affect the Group’s viability as a going concern. This is why the Group takes various strategic and operational measures to minimize the risk of loss of liquidity. The Group’s overriding task in the liquidity risk management process is to ensure ongoing monitoring and planning of the liquidity level. The Group also intends to maintain the proper financing structure by keeping an appropriate level of long-term financing sources. The Group’s liquidity risk management process supported by the implemented JSW Group’s Liquidity Management Policy and Procedure 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 Group considers the current level of loss of liquidity to be high and therefore, it constantly takes immense measures in order to limit the risk of loss of liquidity. The Group is pursuing the liquidity management policy under which it diversifies financing sources and takes advantage of the available tools to ensure effective liquidity management. As part of the work on the Remedy Program (details in Note 2.2.), the Group developed initiatives to improve long-term profitability of JSW and the Group, along with actions to secure financial liquidity for the time it takes to devise long-term solutions. The cost-saving and optimization initiatives are presented in Note 2.2. The table below contains an analysis of the Group's financial liabilities by age group, distributed according to time to contractual maturity on the last 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. Less than one year From 1 to 2 years From 2 to 5 years Above 5 years Total AS AT 30 JUNE 2026 Loans and borrowings 1,605.4 97.2 192.7 - 1,895.3 Trade and other financial liabilities 2,237.8 2.1 3.6 17.7 2,261.2 Lease liabilities 336.7 153.2 92.9 400.6 983.4 FIZ liabilities 165.9 - - - 165.9 Financial derivatives (gross-settled) 733.5 - - - 733.5 TOTAL 5,079.3 252.5 289.2 418.3 6,039.3 AS AT 31 DECEMBER 2025 Loans and borrowings 1,568.7 109.7 273.8 16.2 1,968.4 Trade and other financial liabilities 1,840.2 3.2 3.5 18.3 1,865.2 Lease liabilities 346.4 166.5 113.3 386.8 1,013.0 FIZ liabilities 36.6 - - - 36.6 Financial derivatives (gross-settled) 470.3 - - - 470.3 TOTAL 4,262.2 279.4 390.6 421.3 5,353.5
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INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF THE JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. GROUP FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2026 (All amounts in tables expressed in millions of PLN unless stated otherwise) 61 Notes to these interim condensed consolidated financial statements form an integral part hereof. 9.3.2. CAPITAL RISK MANAGEMENT In the period covered by these interim condensed consolidated financial statements, there were no material changes in the capital risk management objectives, principles and procedures as described in Note 9.5.2. of the Consolidated Financial Statements of the Jastrzębska Spółka Węglowa S.A. Group for the financial year ended 31 December 2025. 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 6.1. By virtue of annexes to the Financing Agreement dated 9 March 2026 and dated after the end of the reporting period, the obligation to comply with the covenants was suspended until 30 October 2026 (including the ratio of Guarantors’ and JSW’s EBITDA to total Group EBITDA, the ratio of the Guarantors’ and JSW’s assets to total Group assets, the Net Financial Debt/EBITDA ratio, the maintenance of the Cash Buffer balance, as well as the achievement of the Sustainability-Linked Targets.
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INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF THE JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. GROUP FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2026 (All amounts in tables expressed in millions of PLN unless stated otherwise) 62 Notes to these interim condensed consolidated financial statements form an integral part hereof. 10. OTHER EXPLANATORY NOTES 10.1. CONTINGENT ITEMS CONTINGENT ITEMS In the 6 months ended 30 June 2026, there were no material changes to the contingent liabilities disclosed in Note 10.1 of the Consolidated financial statements of the Jastrzębska Spółka Węglowa S.A. Group for the financial year ended 31 December 2025. GUARANTEES AND SURETIES GIVEN In the 6-month period ended 30 June 2026, the Group did not extend sureties or guarantees. INFORMATION ON MATERIAL COURT PROCEEDINGS In the 6-month period ended 30 June 2026 there were no material resolutions of court proceedings in the Group. 10.2. FUTURE CONTRACTUAL LIABILITIES Future contractual liabilities incurred on the dates ending the reporting periods which are not included in the consolidated statement of financial position include: 30 June 2026 31 December 2025 Contractual liabilities incurred to purchase property, plant and equipment and intangible assets 579.9 825.5 Other 79.4 187.0 TOTAL 659.3 1,012.5 10.3. RELATED PARTY TRANSACTIONS As at 30 June 2026 and 31 December 2025, the majority shareholder of the Parent Company was the State Treasury. In the 6-month period ended 30 June 2026 and in 2025, the State Treasury was the direct top-level parent entity. Accordingly, all companies owned by the State Treasury (directly or indirectly) are the Group’s related parties. In the 6-month period ended 30 June 2026, all the transactions between the Group 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 Group concluded no other material transactions with related parties with a different nature or material amounts, other than those described in the most recent annual consolidated financial statements. In the 6-month period ended 30 June 2026, an individual transaction executed between JSW and parties related to the State Treasury was identified, which was significant due to a non-standard scope and amount. The transaction concerns the preliminary share purchase agreement entered into with Agencja Rozwoju Przemysłu S.A., which is discussed in more detail in Note 1.2. On the other hand, after the end of the reporting period, on 6 August 2026, JSW signed a loan agreement with ARP, which is described in Note 6.1. 10.4. EVENTS AFTER THE END OF THE REPORTING PERIOD According to our knowledge, there were no material events after 30 June 2026, 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 and financial position and financial result but had not been recognized in the interim condensed consolidated financial statements for the 6-month period ended 30 June 2026: ▪ On 6 August 2026, JSW entered into a loan agreement with Agencja Rozwoju Przemysłu S.A. (“ARP”) under the terms and conditions set forth in Article 19b of the Act of 4 July 2019 on the System of Development Institutions, which is intended to support the implementation of the Group’s Remedy Program. The financing amount will be up to PLN 824.1 million and the funds will be transferred in four tranches. The financing covers the period through 30 June 2038. Details of the signed loan agreement are presented in Note 6.1. ▪ On 17 August 2026, the JSW Management Board adopted a resolution approving the submission of an application to ARP for a loan in the amount of PLN 1,066.0 million. This financing is intended to replace the sale of shares in PBSz and JZR to ARP, as previously contemplated in the PSPA. The proposed loan amount corresponds to the total preliminary purchase price of shares in PBSz and JZR set forth in the PSPA.
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INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF THE JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. GROUP FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2026 (All amounts in tables expressed in millions of PLN unless stated otherwise) 63 Notes to these interim condensed consolidated financial statements form an integral part hereof. The proceeds from the loan are intended to finance the Company’s operations during the restructuring period, which includes measures aimed at reducing operating costs and optimizing the operations of JSW Group. The filing of the Application does not guarantee that ARP will grant the loan to JSW. The possibility of granting the loan and its final terms will depend, in particular, on the results of further financial and legal analyses conducted by ARP, the negotiation of the financing documentation, and the receipt of required approvals, including consents from institutions financing JSW. ▪ On 23 September 2026, the Supervisory Board of JSW adopted a resolution appointing Mr. Bartosz Styś to the JSW Management Board Member of the 12th term of office, to the position of Vice-President of the JSW Management Board for Financial Matters, effective 1 October 2026.
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INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF THE JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A. GROUP FOR THE PERIOD OF 6 MONTHS ENDED 30 JUNE 2026 (All amounts in tables expressed in millions of PLN unless stated otherwise) 64 Notes to these interim condensed consolidated financial statements form an integral part hereof. 11. MANAGEMENT BOARD’S REPRESENTATIONS AND APPROVAL OF THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS On reliability of the preparation process of the interim condensed consolidated financial statements The Management Board of JSW hereby represents that, according to its best knowledge, these semi-annual condensed consolidated 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. Group. The Management Board report on the activity of the Jastrzębska Spółka Węglowa S.A. Group for the 6-month period ended 30 June 2026 contains a true presentation of developments, achievements and the position of the Jastrzębska Spółka Węglowa S.A. Group, including a description of key threats and risks. These interim condensed consolidated financial statements for the 6 months ended 30 June 2026 were approved for publication and signed by the Management Board of JSW S.A. on 28 September 2026. Jastrzębie-Zdrój, 28 September 2026 SIGNATURES OF JSW MANAGEMENT BOARD MEMBERS Bogusław Oleksy President of the Management Board Acting Vice-President of the Management Board Tomasz Gawlik Vice-President of the Management Board Jolanta Gruszka 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