Orlen (PKN) Strategy update summary

Strategic Vision and Market Context

• The 2025–2035 strategy focuses on energy security, decarbonization, and technological innovation, shaped by geopolitical events and climate policy pressures.

• Central and Eastern Europe’s unique energy market dynamics, including rising gas demand, slower fossil fuel transition, and alignment with EU regulations, are key considerations.

• The region's energy demand is evolving, with gas as a transition fuel and increasing need for zero-emission sources.

• Customer preferences are shifting toward sustainable, decentralized, and digital energy solutions.

• The company aims to lead the region’s energy transformation, emphasizing gas as a transition fuel and a significant increase in renewables.

Strategic Ambitions and Transformation

• Targets include 12.8 GW of renewables by 2035, 25% renewable energy in transport, and 10 million loyal customers.

• Transformation pillars: value maximization, innovative products, asset optimization, capital stewardship, and decarbonization.

• Progressive dividend policy with annual increases, aiming for PLN 6.00 per share by 2035.

• Strategic partnerships and asset optimization will drive innovation, decarbonization, and focus on core business areas.

• Integrated digital platform for customer engagement and energy-as-a-service offerings.

Operational and Investment Priorities

• Plans include expanding gas extraction, building four offshore wind farms, developing large-scale energy storage, and introducing small modular nuclear reactors.

• By 2035, targets include 27 bcm of natural gas supply, nearly 13 GW of renewable capacity, and 29% renewables in the energy mix.

• Secure gas supply with 12 bcm production and 15 bcm contracted supply by 2035.

• Expansion of CCUS capacity and services, with up to 4 mtpa by 2035.

• Downstream focus on alternative fuels, biofuels, and decarbonization of refining and petrochemicals.