TAURON Group’s results presentation Q1 2013

9 May 2013

Disclaimer

This presentation serves for information purposes only and should not be treated as investment-related advice. This presentation has been prepared by TAURON Polska Energia S.A. (“the Company”). Neither the Company nor any of its subsidiaries shall be held accountable for any damage resulting from the use of this presentation or a part thereof, or its contents or in any other manner in connection with this presentation. The recipients of this presentation shall bear exclusive responsibility for their own analyses and market assessment as well as evaluation of the Company’s market position and its potential results in the future based on information contained in herein. To the extent this presentation contains forward-looking statements related to the future, in particular such terms as ”designed”, ”planned”, ”anticipated”, or other similar expressions (including their negation), they shall be connected with the known and unknown risks, uncertainty and other factors which might result in actual results, financial situation, actions and achievements being materially different from any future results, actions or achievements expressed in such forward-looking statements. Neither the Company nor any of its subsidiaries shall be obliged to provide the recipients of this presentation with any additional information or to update this presentation.

2

Key events TAURON Polska Energia – Q1 2013 and recent events 15 January

TAURON Group’s Efficiency Improvement Program for 2013-2015 launched

24 January

Offer of consortium: RAFAKO and MOSTOSTAL WARSZAWA selected for construction of 910 MW coal-fired unit at Jaworzno III power plant

1 March

3-year long contract for hard coal supply signed with Kompania Węglowa. Estimated value of the contract from 2013 to 2015 is approx. PLN 2.4bn

15 March

Letter of Intent signed with Polska Telefonia Cyfrowa (T-Mobile) for strategic cooperation. The goal of the cooperation is to introduce new solutions (in terms of both, products and technologies) for telecommunication and energy markets

25 March

Polish Appeals’ Chamber dismissed appeals against decision of TAURON Wytwarzanie S.A. concerning selection of contractor for construction of the unit at Jaworzno III power plant

11 April

Management Board issued recommendation on dividend payout in the amount of PLN 262 882 409.10 from net profit for the financial year 2012 attributable to the Company’s shareholders (PLN 0.15 per share). On 17 April the Supervisory Board approved of the Management Board’s recommendation

18 April

Ordinary General Meeting convened for 16 May 2013

Energy market – Q1 2013 and recent events 4 April

President of Energy Regulatory Office adopted the model and method for calculation and recognizing WACC in heat tariffs for the years 203-2015

5 April

PGE decided to quit construction of unit at Opole power plant

16 April

European Parliament rejected proposal of the European Commission for so-called backloading, i.e. rescheduling auctions for 900m CO2 emission allowances after 2013

3

Implementation of CAPEX program The CAPEX program is aimed at upgrading generation assets and cost-effectively increasing generation capacity located in the vicinity of TAURON Group’s existing assets (brownfield projects)

Katowice – new CCGT unit (135 MWe / 90 MWt)

Wind farms: 40 MW in Wicko and 100 MW in Marszewo

Blachownia – new CCGT unit (850 MWe)

Stalowa Wola – new CCGT unit (450 MWe / 240 MWt)

ZEC Bielsko-Biała – new heat unit (50 MWe / 182 MWt)

Stalowa Wola – boiler conversion to biomass burning (20 MWe) Investment commissioned in Q1 2013

Tychy – new CHP unit (50 MWe / 86 MWt) Tychy – fluidized bed boiler conversion to biomass burning (40 MWe) Investment commissioned in Q1 2013

Jaworzno III – new coal-fired unit (910 MWe)

Łaziska – upgrade of boilers to comply with future nitrogen emission standards Jaworzno III – upgrade of boilers to comply with future nitrogen emission standards

4

Capital expenditures PLNm

541

510

600

6% 500

1

60

2

5

246 223

5

200 100

123

188 111 25

0

30

I kwartał 2012 Q1 2012 Mining Wydobycie

3

16

6

400 300

7

Generation Wytwarzanie

OZE

I kwartał 2013 Q1 2013 Dystrybucja

Sprzedaż

Obsługa Klienta

Ciepło

Pozostałe

After Q1 2013 TAURON Group’s CAPEX amounted to PLN 541m and was higher than in comparable period last year by approx. 6% (PLN 510m after Q1 2012). This was mainly due to increase of investments in Distribution and RES Segments. The main investment projects executed in Q1 2013 included: - construction of new generation assets (capital expenditures: PLN 48m) and construction of installations for Nox emission reduction (capital expenditures: PLN 45m) in Generation - construction of wind farms: Marszewo and Wicko (capital expenditures: PLN 108m) in RES - construction of new connections (capital expenditures: PLN 78m); upgrade and restoration of grid assets (capital expenditures: PLN 147m) in Distribution

5

Macroeconomic figures

Macroeconomic and market figures 10,0%

9.3%

8,0%

1 610 GWh

6,0%

1 800

4.5%

4.9%

1 600

1 158 GWh

1 400 1 200

4,0%

2,0%

1.1% (forecast for Q1 2013)*

3.5%

1.5%

Industrial production

GDP

1 000 800

1.6%

0,0%

600 -2.0%

-2,0%

-1.8%

-4,0% (TWh) 50 000

2 000 GWh

1 772 GWh

400 200 -

Q1 2011

Q1 2012

Electricity consumption

Export (GWh)

Q1 2013

43 294

+0.5%

43 505

-0.5%

43 300

3 822 1 407

+29.1%

3 905 1 817

+6%

3 809 1 926

Other Pozostałe

12 998

+10.4%

13 843

Odnawialne Źródła Energii RES

Electricity generation

45 000 40 000 35 000 30 000

-3.6% 14 353

25 000

El. cieplne na power węgielplants brunatny Lignite-fired

20 000 -6.5%

15 000

El. cieplne na węgiel kamienny Hard coal-fired power plants

+1.2%

25 068

23 430

23 721

I kwartał 2011 Q1 2011

I kwartał 2012 Q1 2012

I kwartał 2013 Q1 2013

10 000 5 000 0

6

Key operating data

Q1 2012

Q1 2013

Change

Production of commercial coal (million t)

1.21

1.52

25.6%

Electricity generation (net production) (TWh)

4.98

5.15

3.4%

including: from renewable sources

0.30

0,28

-6.7%

Heat generation (PJ)

7.80

7.70

-1.3%

Distribution (TWh)

12.70

12.42

-2.2%

Electricity supply (TWh)

11.89

10.93

-8.1%

Number of customers – Distribution (thousand)

5 284

5 307

+23 thousand

7

Financial results for Q1 2013 TAURON Group’s EBITDA per segment (PLNm); EBITDA structure

TAURON Group’s revenue (PLNm) 7 000

6 173

1 400

-4.4%

6 000

1 200

975

-20%

5 000

1 000

4 000 3 000

1 221

1% 1.4%

10% 10%

800

0.2% 1%

8%

25.2%

28%

6 455

600

5 163 2 000

46%

43%

400 6%

1 000

200

0 Q1 2012 I kwartał 2012

14%

- - - Comparable sales level (including: revenue from LTC and sale of 100% generated electricity through power exchange, similar to Q1 2012)

6%

5%

0

Q1 2013 I kwartał 2013

2%

23% Q1 2012 I kwartał 2012

Wydobycie

Wytwarzanie

OZE

Dystrybucja

Q1 2013 I kwartał 2013 Sprzedaż

900

700

Pozostałe

788

800

580

700

500

Ciepło

TAURON Group’s EBIT (PLNm)

TAURON Group’s net profit (PLNm) 600

Obsługa Klienta

46,9%

600

395

41.1%

559

500

400

400

300

300

200

200

100

100 3,4%

0 I kwartał 2012 Q1 2012

3,7% Q1 2013 I kwartał 2013

0 Q1 2012 I kwartał 2012

Q1 2013 I kwartał 2013

Share of minority shareholders in profit

8

EBITDA – Q1 2013 Change in EBITDA per segment (PLN and %); EBITDA margin per segment (%) PLNm 1400

15.1%

19.6%

13.3%

65.4%

34.1%

7.3%

11.6%

23.9%

2.3%

-

246,7

(1,2)

(5,1)

(8,6)

(1,1)

-9%

-5%

-79%

-

23.7%

1 221

1200

1000

23,9

975

(60,0)

77,9 (26,3)

800

49%

-26%

-49%

17%

244%

600

400

788 559

200

0

EBITDA Q1 2012

Mining Wydobycie

Generation Wytwarzanie

RES OZE

Dystrybucja Distribution

Sprzedaż Supply

EBIT

Increase in segment

Change in segment in %

Depreciation

Decrease in segment

EBITDA margin

Customer Obsługa Service klienta

Heat Ciepło

Other Pozostałe

Unallocated Pozycje items/ nieprzypisane exclusions / wyłączenia

EBITDA Q1 2013

9

Increase 451

Cash as of 31.03.2013

(9)

Other cash flows from financial operations

(8)

Interest paid

Repayment of credits and loans

1 167

Inflows from credits and loans

Total cash flows from financial operations

500

Other cash flows from investment activity

(1 141)

Granting / repayment of loans

Purchase of fixed assets and intangible assets

892

Total cash flow from investment

1 500

Other gross profit adjustments

Change in liabilities and receivables

Depreciation

Gross profit

Total operating cash flows

1 000

Cash as of 01.01.2013

Cash flow changes PLNm

2 500

Cash flow – changes in Q1 2013

433

2 000 736 (384)

(120)

665

815

425 (9)

7

(33)

0

Decrease

10

Group’s debt level Group’s debt level

PLNm 6 000

5 115 206

1 141

5 000

55

4 535 (5)

4 000

351

(1 169)

3 000

2 000

net debt / EBITDA

1.33x 1 000

0 Zadłużenie Net debt asnetto of na1.01.2013 01.01.2013



Przepłwy Operating operacyjne przed cash flow opodatkowaniem before tax

Zmiana kapitału Change in pracującego working capital

Wydatki CAPEX inwestycyjne

Sprzedaż Sales of fixed rzeczowych assets and aktywów trwałych intangible i wartości assets niematerialnych

Podatek Income tax dochodowy paid zapłacony

Pozostałe Other

Zadłużenie netto Net debt as of na 31.03.2013 31.03.2013

In Q1 2013 net debt increased by approx. PLN 570m (among others, as a result of drawing new tranches of the loan from EIB in the amount of PLN 542m)

11

Prime cost structure

2 775

PLNm 3 000

2 618 1% 1%

2 500

6.0% 23%

29% 2 000

8% 6% 21%

1 500

24%

1 000 32% 27% 500 15%

13% 0 I kwartał Q1 20122012 Amortyzacja i odpisy aktualiz. Amortization and impairment Podatki opłaty Taxes iand fees

Consumption of energy and Zużycie materiałów i energii materials Koszty świadczeń pracowniczych Costs of employee benefits

I kwartał 2013 Q1 2013 Outsourced Usługi obce services Pozostałe koszty rodzajowe Other prime costs

Cost increase in Q1 2013 is mainly attributable to:

 consumption of energy and materials  taxes and fees – cost of provision set up in Q1 2013 for CO2 emission allowances  depreciation In Q1 2013 variable costs (excluding the value of goods and materials sold) constituted approx. 37% and fixed costs constituted approx. 63% of the total costs. Change in comparison to Q1 2012 when variable costs constituted 46% and fixed costs constituted 54% results from lower variable costs of Generation and Heat (lower fuel costs) and Distribution (lower costs of transmission fee)

12

Efficiency improvement program

Efficiency improvement program for 2013-2015 Cumulative OPEX savings

PLNm

100

34

90

PLN 0.9bn 87

80 70

7

60

44

50

40 30 20 10

2

0 Wydobycie Mining

Wytwarzanie Generation

Ciepło

Heat

Dystrybucja Distribution

oszczędności 2013 2013 Savings

 Voluntary Redundancy Program: since the program’s launch 89 persons enrolled, as of the end of Q1 2013. Over that period employment contracts were terminated with 297 persons. Savings resulting from redundancies, decreased by costs incurred to generate those savings, are included in the amounts presented per segment.  Having completed the first efficiency improvement program, TAURON Group has launched a similar program planned for 20132015, which should bring an approx. PLN 860m OPEX reduction. As a result of the program implementation the Group expects OPEX reduction in most segments – with the biggest savings coming from Distribution and Generation.

13

Outlook for 2013 (1)

100% 90%

70% 60% 50% 40% 30% 20%

Strengths

Weaknesses

Forecasted decrease by up to 15% compared to 2012 (~) (~)

1% 1% 12% 6%

51%

4%

22%

10%

 growth in regulated segments (Distribution and Heat)  decrease of coal prices in the Group’s generation assets by approx. 12% on average in 2013 means lower average variable cost of generation per unit by approx. 10% to approx. PLN 123/MWh  lower prices of green certificates (drop of certificate price on the market by PLN 10 translates into lower costs of cancelling green certificates by approx. PLN 22m)  exposure to CO2 (carbon credits received under KPRU III (Free Carbon Credit Allocation System): 13.5m Mg; 4.0m Mg transferred from 2012 to 2013)  OPEX – planned execution in 2013 – approx. PLN 240m savings, employment reduction by approx. 1100 FTEs  final settlement of LTC program – expected cash income of approx. PLN 500m  possibile funding acquisition (state-owned bank BGK, bond issue on domestic market, EIB)

 lost revenue due to falling prices of certificates (assuming electricity generation level similar to 2012) in the following segments: a) Generation: in biomass co-firing at estimated certificate price of PLN 185/ MWh – approx. PLN 140m b) RES: approx. PLN 75m  end of LTC compensation program (PLN 567m in 2012)  decrease of coal sale prices in Mining segment (coal for electricity generation purposes – lost revenue of approx. PLN 19m per quarter; coal sold outside the Group – by approx. PLN 4m)  possible impairment loss of certain generation assets due to permanent decrease of value (in the case of further electricity price drops that impact profitability of the Group’s own generation)

(+) (+)

(+)

Regulated segments (approx. 65-67% of EBITDA in total)

80%

Regulated segments Distribution + Heat (approx. 57% of EBITDA in total)

PLN 3.84bn

(~) (-)

7%

(-)

0%

EBITDA 2012 Mining Wydobycie

EBITDA 2013 Generation Wytwarzanie

RES OZE

Distribution Dystrybucja

Ciepło Heat

Supply Sprzedaż

Customer Obsługa Service Klienta

Other Pozostałe

(+) forecasted increase in segment (-) forecasted decrease in segment (~) forecasted stability in segment

14

Outlook for 2013 (2)

100% 90%

70% 60% 50% 40% 30% 20%

Threats

Opportunities

(~) (~)

1% 1% 12% 6%

51%

 negotiations with PSE/URE (Transmission System Operator/ Energy Regulatory Office) concerning cold reserve/ spinning reserve  possible liberalization of G tariff by the President of Energy Regulatory Office  implementation of so-called Energy law threepack, including regulations on cogeneration  growing demand (expected economy bounce back in H2 2013)  lower interest rates translate into lower financial costs for the TAURON Group

 possible adjustment of G tariff from H2 2013  lower volume of distributed electricity (by 1-1.5%) due to economic slowdown  possible renegotiation of electricity supply agreements by clients  reduction of electricity prices (connected with profitability of generation from own sources)

(+) (+)

(+)

4%

22%

Regulated segments (approx. 65-67% of EBITDA in total)

80%

Regulated segments Distribution + Heat (approx. 57% of EBITDA in total)

PLN 3.84bn

Forecasted decrease by up to 15% compared to 2012

(~)

10%

(-) 7%

(-)

0%

EBITDA 2012 Wydobycie Mining

EBITDA 2013 Wytwarzanie Generation

OZE RES

Dystrybucja Distribution

Ciepło Heat

Sprzedaż Supply

Customer Obsługa Klienta Service

Pozostałe Other

(+) forecasted increase in segment (-) forecasted decrease in segment (~) forecasted stability in segment

15

Thank you – Q&A

Investor Relations

Marcin Lauer [email protected] tel. + 48 32 774 27 06 Paweł Gaworzyński [email protected] tel. + 48 32 774 25 34 Magdalena Wilczek [email protected] tel. + 48 32 774 25 38

17

Additional Information

18

Electric energy market price trends Electric energy Platforms: TGE, TFS, GFI, GPW-POEE

2012

2013 (until 17.04.2013)

2013/2012

Price PLN/MWh

Volume GWh

Price PLN/MWh

Volume GWh

Price %

Volume %

Forward BASE (Y+Q+M)

200.08

139 358

188.37

127 764

- 5.9%

- 8.4%

Forward PEAK (Y+Q+M)

225.56

17 161

207.35

13 377

- 8.1%

- 22.1%

Forward (weighted average)

202.88

156 519

190.17

141 140

- 6.3%

- 9.8%

173.58

20 388

- 10.7%

+ 3%

199.50

176 907

- 7.0%

- 8.3%

SPOT (TGE + GPW-POEE)

155.00

21 000

(Forecast)

(Forecast)

185.62

162 140

Total weighted average CO2 emission allowances (EUR/t):

Survey of CO2 market analysts*

Price (EUR/t)

Average in 2013

2 – 5 EUR/t

Average in 2014

5 – 9 EUR/t

Average in 2015

6 – 10 EUR/t

EUA average price in 2013 (TAURON forecast)

Certificates (PLN/MWh) Type of certificate

Market prices (average in April 2013)

Substitution fee and obligation for 2013

RES (green)

120.06

297.35 (12.0%)

Coal co-generation (red)

Gas co-generation

2 – 4 EUR/t

(yellow)

Methane (violet)

0.84 44.44 58.00

29.84 (not announced)

149.30 (not announced)

60.00 (0.9%)

*Source: Deutsche Bank, Barclays Capital, Point Carbon

19

BASE contracts for 2013 Prices of BASE contracts concluded for 2013 215

205

Price [PLN/MWh]

195

185

175

165

155

145 2012-01-01

2012-02-23

2012-04-16 Y-13

2012-06-08 Q1-13

2012-07-31

2012-09-22 Q2-13

Average price of concluded contracts [PLN/MWh]: Annual 191.60 Quarterly 171.69 Monthly 161.02 TOTAL 188.37

2012-11-14

2013-01-06

Q3-13

2013-02-28

2013-04-22

Q4-13

Volume [GWh] 108 861 15 578 3 325 127 674

20

PEAK contracts for 2013 Prices of PEAK contracts concluded for 2013 250

240

Price [PLN/MWh]

230

220

210

200

190

180

170 2012-01-01

2012-02-22

2012-04-14 Y-13

2012-06-05 Q1-13

2012-07-27

2012-09-17

Q2-13

Average price of concluded contracts [PLN/MWh]: Annual 209.09 Quarterly 191.37 Monthly 192.21 TOTAL 207.35

2012-11-08

2012-12-30

Q3-13

2013-02-20

2013-04-13

Q4-13

Volume [GWh] 12 037 834 506 13 337

21

BASE contracts for 2014 Prices of BASE contracts concluded for 2014 230

220

PLN 230/MWh – prices of first BASE Y-14 transactions concluded in July 2011

Price [PLN/MWh]

210

200

190

180

170

160

150 2013-01-01

2013-01-16 Y-14

2013-01-31

2013-02-15 Q1-14

2013-03-02 Q2-14

Average price of concluded contracts [PLN/MWh]: Annual 174.90 Quarterly 163.99 Monthly TOTAL 174.87

2013-03-17

2013-04-01

Q3-14

2013-04-16

Q4-14

Volume [GWh] 51 596 149 51 745

22

PEAK contracts for 2014 Prices of PEAK contracts concluded for 2014 215

210

Price [PLN/MWh]

205

200

195

190

185

180 2013-01-06

2013-01-20 Y-14

2013-02-03

2013-02-17 Q1-14

2013-03-03 Q2-14

Average price of concluded contracts [PLN/MWh]: Annual 188.84 Quarterly Monthly TOTAL 188.84

2013-03-17

2013-03-31

Q3-14

2013-04-14

Q4-14

Volume [GWh] 639

639

23

Implementation of CAPEX program

ZEC Bielsko-Biała – new heat unit

Elektrociepłownia Tychy – new CHP unit

 Capacity – 50 MW e / 182 MW t  Scheduled commissioning – H1 2013

 Capacity – 50 MW e / 86 MW t  Scheduled commissioning – H1 2016

Status as of 31 March 2013:  15 March – adjustment completed, trial run commenced. General Contractor: Polimex-Mostostal

Status as of 31 March 2013:  Contractor selection for the new unit is underway

Elektrownia Stalowa Wola – upgrade of K-10 boiler (biomassfired)  Capacity – 20 MW e  Scheduled commissioning – Q1 2013

Status as of 31 March 2013:  28 March – K-10 boiler was commissioned. General Contractor: Rafako Wind farm – Wicko  Capacity – 40 MW e  Scheduled commissioning – 2013 Status as of 31 March 2013: General Contractor – Consortium: Kraków-based Aldesa Nowa Energia and Madrid-based Aldesa Construcciones  Engineering works are completed for access roads and assembly sites for 12 wind turbines  Production of gondolas, towers and blades for 20 wind turbines

Elektrociepłownia Tychy – upgrade of fluidized bed boiler (biomass-fired)  Capacity – 40 MW e Status as of 31 March 2013:  biomass boiler construction:  15 February – licence for energy generation granted by the Energy Regulatory Office, contractor: Metso Power Oy  construction of biomass feeding system:  construction works are underway, contractor: Mostostal Warszawa (commissioning – H1 2013)  WR 40 boiler construction:  preparation of installation for warranty measurements, trial operation underway, contractor: SEFAKO (commissioning – H1 2013)

24

Implementation of CAPEX program (2)

Elektrownia Stalowa Wola – new CCGT unit

Wind farm – Marszewo

 Capacity – 450 MW e / 240 MW t  Scheduled commissioning – 2015

 Capacity – 100 MW e  Scheduled commissioning – 2014

Status as of 31 March 2013: General Contractor – Abener Energia  Construction works have started  Detailed design works are completed: for the river bar on San river and foundations of the main buildings. Works on remaining detailed designs are underway

Status as of 31 March 2013:  Finish works and tests of the Main Supply Station are underway  Works involving medium-voltage grid have been completed and commissioned  Wind turbine assembly underway (33 out of 41 turbines have been assembled)

Elektrociepłownia Katowice – new CCGT unit

Elektrownia Blachownia – new gas unit

 Capacity – 135 MW e / 90 MW t  Scheduled commissioning – 2016

 Capacity – rzędu 850 MW e  Scheduled commissioning – 2017

Status as of 31 March 2013:  Contractor selection is underway  5 March – final Terms of Reference and invitations to submit final offers were sent

Status as of 31 March 2013:  Terms of Reference – preliminary requirements for the tender for General Contractor of the unit are under preparation

25

Implementation of CAPEX program (3)

Elektrownia Jaworzno III – boilers’ upgrade  Scope – upgrading six OP-650k type boilers to comply with the lower NOx emission standards to be binding in Poland from 2018  Commencement of the works – 2010; scheduled commissioning – 2016 Status as of 31 March 2013:  Upgrade of units No. 2 and No. 4 is completed. Works on unit No. 6 have commenced  General contractor: consortium of Fortum Power and Heat (consortium leader) and Zakłady Remontowe Energetyki Katowice (consortium member)

Elektrownia Jaworzno III – new coal-fired unit  Capacity – 910 MW e  Scheduled commissioning – 2018

Status as of 31 March 2013:  24 January – TAURON Wytwarzanie selected the offer submitted by consortium of Rafako and Mostostal Warszawa as the winning bid in the tender for construction of the unit at Jaworzno  25 March – Polish Appeals Chamber dismissed appeals filed by consortium: SNC-Lavalin Polska, SNC-Lavalin Inc. And Hitachi Power Europe GmbH and consortium: China National Electric Engineering and China Overseas Engineering Group

Elektrownia Łaziska – boilers’ upgrade  Scope – upgrading four OP-650k type boilers to comply with the lower NOx emission standards to be binding in Poland from 2018  Commencement of the works – 2010; scheduled commissioning – 2015 Status as of 31 March 2013:  Works at units No. 12 and No. 11 are completed  Warranty measurements at unit No. 11 are underway  General contractor: STRABAG

26

Reporting model

Generation SEGMENT Mining SEGMENT

RES SEGMENT

Distribution SEGMENT

Heat SEGMENT

Supply SEGMENT

Customer Service SEGMENT

Other SEGMENT Mining Segment: Generation Segment: Południowy Koncern Węglowy TAURON Wytwarzanie

Distribution Segment: TAURON Dystrybucja TAURON Serwis GZE

RES Segment: TAURON Ekoenergia BELS INVESTMENT MEGAWAT MARSZEWO Lipniki Heat Segment: Other Segment: Kopalnia Wapienia Czatkowice TAURON Ciepło EC Tychy PE-PKH EC Nowa



Supply Segment: Customer Service Segment: TAURON Sprzedaż TAURON Obsługa Klienta TAURON Sprzedaż GZE TAURON Polska Energia TAURON Czech Energy

In Q1 2012 TAURON introduced the new reporting model dividing the Group’s operations into eight segments

27

Mining – key financial data

Change of: Revenue

EBITDA

EBIT

in the segment (in PLNm)

400 350

373 307

300 250 200 150 100 50

73 49

46 23

0 Q1 2012

Q1 2013

28

Mining – EBIT bridge

PLNm

40

50

46 (2)

40 8 30

23 20

10 (23) 0 EBIT I-III 2012 (wyk.) EBIT Q1 2012 (result)

Wolumen Coal sprzedaży sales węgla volume

Cena sprzedaży Coal saleswęgla price

Jedn. Ownkoszt cost własny of coal sprzedanego węgla sold per unit

Pozostałe przychody / Other revenue/ koszty costs

EBIT I-IIIEBIT 2013 (wyk.) Q1 2013 (result)

Increase Decrease

29

Generation from conventional sources – key financial data

Change of: Revenue

EBITDA

EBIT

in the segment (in PLNm)

1 600 1 400

1 396 1 262

1 200 1 000 800 600 400 200

227 101

167 35

0 Q1 2012

Q1 2013

30

Generation from conventional sources – EBIT bridge

PLNm

160

10 10

140

61

120

101 100

46

80

30

60

40

(56)

4

(51)

35

(121)

20

0 EBIT I-IIIQ1 2012 EBIT (wyk.) 2012 (result)

Cena Jednostkowy Rezerwa na Provision Electricity Variable sprzedaży koszt zmienny for koszty costs sales cost of energii wytwarzania niedoboru to cover price electricity energi el. CO2 CO2 generation shortage per unit

Marża na Margin on obrocie electricity energią el. trading

Koszty stałe Fixed costs bez less amortyzacji depreciation

Wolumen Volume of sprzedaży electricity energi z sold – own własnej generation produkcji

Marża na Margin cieple on heat

Przych. z tyt. Pozostałe EBITEBIT I-III 2013 Q1 Revenue due Other rekompensaty przychody / (wyk.) 2013 to LTC revenue/ KDT koszty (result) compensation costs

Increase Decrease

31

Generation from renewable sources – key financial data

Change of: Revenue

EBITDA

70 60

EBIT

in the segment (in PLNm)

67 54

50

43

42

40 27

30

18

20 10 0 Q1 2012

Q1 2013

32

RES – EBIT bridge PLNm 50 43 40 (4)

(7)

30

20

1

18 (0,5)

(15) 10

0 EBIT I-III 2012 EBIT Q1 2012 (wyk.) (result)

Supply volume Wolumen – hydro power sprzedaży - el. plants wodne

Wolumen Supply volume sprzedaży – wind farms el.wiatrowe

Cena sprzedaży Certificate sales price certyfikatu

Amortyzacja Depreciation

Pozostałe Other revenue/ costs/ koszty przychody

EBIT EBIT I-IIIQ1 2013 2013 (wyk.) (result)

Increase Decrease

33

Distribution – key financial data

Change of: Revenue

EBITDA

EBIT

in the segment (in PLNm)

1 800

1 600

1 562

1 541

1 400 1 200 1 000 800 600 400

525

447 229

301

200 0 Q1 2012

Q1 2013

34

Distribution – EBIT bridge PLNm 350

17 70

300

250

301 (6)

(7)

21

229

(8) (17)

200

150

100

50

0 EBIT I-IIIQ1 2012 Wolumen sprzedaży Poz. przychody EBIT Sales volume – Cena Sales price – Other revenue (wyk.) sprzedaży usług usług dystr. zw. z dystrybucją 2012 distribution distribution from dystr. (result) services services distribution

Jedn. koszty Variable zmienne costs per unit

Koszty stałe Fixed costs

Wynik Result na on pozostałej other działalności operations podst.

Pozostałe Other przychody revenue/ / koszty costs

EBIT I-III Q1 2013 EBIT (wyk.) 2013 (result)

Increase Decrease

35

Supply – key financial data

Change of: Revenue

EBITDA

EBIT

in the segment (in PLNm)

6 000 5 000

4 791

4 505

4 000 3 000 2 000 1 000 101

94

348 339

0 Q1 2012

Q1 2013

36

Supply – EBIT bridge PLNm 400

19

350

2

81

339 (6)

300

93

250

200

84

150

94

100

(32)

50

0 EBIT I-III 2012 EBIT (wyk.)Q1 2012 (result)

Wolumen Electricity sprzedaży sales energii volume elektrycznej

Cena energii Electricity elektrycznej sales price

Cena PM Price of zielonych green certificates

Brak of PM Lack red czerwonych i and yellow zółtych certificates

Akcyza Excise tax

Poz. towary, Other goods, usługi handlowe commercial services

Pozostałe Other / przychody revenue/ koszty costs

EBIT I-IIIQ1 2013 EBIT (wyk.) 2013 (result)

Increase Decrease

37

Heat – key financial data

Change of: Revenue

EBITDA

EBIT

in the segment (in PLNm)

450

400

400

384

350 300 250 200 150 100

101

78

96

70

50 0 Q1 2012

Q1 2013

38

Heat – EBIT bridge PLNm 120

100

12

7

4 78

80

(9) 70 (19)

(2)

60

40

20

0 EBIT I-III Q1 2012 EBIT (wyk.) 2012 (result)

Wolumen Heat dystrybucji ciepła distribution volume

Cena sprzedaży Heat sales ciepła price

Marża na Margin on certyfikatach certificates

Koszty stałe bez Fixed costs amortyzacji less depreciation

Rezerwa na koszty Pozostałe Other Provision for niedoboru CO2 przychody koszty revenue//costs costs to cover CO2 shortage

EBIT I-IIIQ1 2013 EBIT (wyk.) 2013 (result)

Increase Decrease

39

Customer Service – key financial data

Change of: Revenue

EBITDA

EBIT

in the segment (in PLNm)

120 104 100 84 80 60 40 20

13

10

12

9

0 Q1 2012

Q1 2013

40

Customer Service – EBIT bridge PLNm

45

11

40

35

21

0,5

30

(13) 25

20

15

10

10

9 (21)

0,3

5

0 EBIT I-III 2012 EBIT Q1 (wyk.) 2012 (result)

Increase

Przychody CUW IT Przychody CUW R Shared Shared Services Services IT Accounting revenue revenue

Przychody Shared CUW OK Services Customer Service revenue

Przychody CUW Koszty Pozostałe Costs of services Shared Other revenue/ HR świadczonych usług przychody / koszty provided Services HR costs revenue

EBIT I-III 2013 EBIT Q1 (wyk.) 2013 (result)

Decrease

41

Other – key financial data

Change of: Revenue

EBITDA

120

EBIT

in the segment (in PLNm)

112 104

100 80 60 40 20

11

9

2

0 Q1 2012

0,1

Q1 2013

42