19.2 Supplementary capital

Supplementary capital comprises mainly statutory contributions from profit generated in the previous financial years as well as from surpluses from the distribution of profit over the statutorily required contributions and from mergers of PGE S.A. with its subsidiaries.

According to the requirements of the Commercial Companies Code (Article 396), entities with the status of joint-stock companies are obliged to establish supplementary capital to finance losses. Each year this supplementary capital is increased with at least 8% of the Company’s profit for a given financial year as shown in its separate financial statements until this capital has reached the amount of at least one third of the Company’s share capital. Supplementary capital equal to one third of the share capital may be used only to finance losses disclosed in the Company’s separate financial statements and may not be distributed for other purposes. The use of supplementary capital and reserve capital is determined by the General Meeting.

As at 31 December 2023, the supplementary capital subject to distribution among shareholders amounted to PLN 21,751 million and PLN 18,654 million as at 31 December 2022.