2 2 Selected consolidated financial data of PGE Polska Grupa Energetyczna S.A. Capital Group 6-month period 6-month period June 30, June 30, (reviewed) (reviewed) (reviewed) (reviewed) data restated data restated PLN thousand EUR thousand Sales revenues 15,100,832 14,914,091 3,583,491 3,530,297 Net profit from operating activities 3,167,341 3,365, , ,594 Gross profit (before taxation) 3,116,276 3,491, , ,503 Net profit for the reporting period 2,525,019 2,736, , ,767 Net profit attributable to equity holders of the parent company 2,511,214 2,703, , ,973 Total income 2,526,641 2,736, , ,667 Net cash from operating activities 3,264,513 4,396, ,683 1,040,733 Net cash from investing activities -2,772, , ,814-23,712 Net cash from financial activities 747, , ,346-74,170 Net change in cash and cash equivalents 1,239,819 3,983, , ,852 Net earnings per share (in PLN/EUR per share) Diluted earnings per share (in PLN/EUR per share) Weighted average number of shares (issued ordinary shares used for calculation of EPS) 1,869,760,829 1,869,760,829 1,869,760,829 1,869,760,829
3 3 As at June 30, 2013 As at December 31, 2012 As at June 30, 2013 As at December 31, 2012 (reviewed) (audited) (reviewed) (audited) data restated data restated PLN thousand EUR thousand Non-current assets 46,297,332 45,406,411 10,694,200 11,106,700 Current assets 14,005,641 13,396,629 3,235,157 3,276,902 Total assets 60,302,973 58,803,040 13,929,357 14,383,602 Equity 42,043,009 41,116,586 9,711,496 10,057,381 Equity attributable to equity holders of the parent 41,725,187 40,820,721 9,638,083 9,985,011 Share capital 18,697,608 18,697,608 4,318,952 4,573,555 Long-term liabilities 9,751,318 8,499,581 2,252,453 2,079,052 Short-term liabilities 8,508,646 9,186,873 1,965,408 2,247,168 Number of shares as at the end of the reporting period Book value per share (in PLN/EUR per share) Diluted book value per share (in PLN/EUR per share) 1,869,760,829 1,869,760,829 1,869,760,829 1,869,760,
4 4 Selected standalone financial data of PGE Polska Grupa Energetyczna S.A. 6-month period 6-month period June 30, June 30, (reviewed) (reviewed) (reviewed) (reviewed) data restated data restated PLN thousand EUR thousand Sales revenues 6,125,459 5,062,102 1,453,597 1,198,244 Net profit from operating activities 479, , ,704 36,195 Gross profit (before taxation) 1,934, , ,107 96,984 Net profit for the reporting period 1,812, , ,078 68,749 Total income 1,812, , ,078 68,932 Net cash from operating activities 226, ,916 53,709-61,761 Net cash from investing activities -222,390 3,848,547-52, ,985 Net cash from financial activities 853,289-2, , Net change in cash and cash equivalents 857,230 3,584, , ,581 Net earnings per share (in PLN/EUR per share) Diluted earnings per share (in PLN/EUR per share) Weighted average number of shares (issued ordinary shares used for calculation of EPS 1,869,760,829 1,869,760,829 1,869,760,829 1,869,760,829
5 5 As at June 30, 2013 As at December 31, 2012 As at June 30, 2013 As at December 31, 2012 (reviewed) (audited) (reviewed) (audited) PLN thousand data restated EUR thousand data restated Non-current assets 28,103,032 27,003,855 6,491,507 6,605,317 Current assets 4,701,540 3,386,703 1,086, ,409 Total assets 32,804,572 30,390,558 7,577,514 7,433,726 Equity 29,501,183 29,296,534 6,814,465 7,166,121 Share capital 18,697,608 18,697,608 4,318,952 4,573,555 Long-term liabilities 1,094,988 88, ,931 21,634 Short-term liabilities 2,208,401 1,005, , ,972 Above financial data for the 6-month period ended June 30, 2013 and June 30, 2012 were converted into EUR according to the following rules: particular items of the assets and liabilities according to average exchange rate published by the National Bank of Poland as of June 30, 2013 EUR/PLN and as of December 31, 2012 EUR/PLN , particular items of statement of comprehensive income and statement of cash flows according to the exchange rate constituting an arithmetic average of average exchange rates set out by the National Bank of Poland at the end of every month of the reporting period from January 1, 2013 till June 30, 2013 EUR/PLN , d and for the period from January 1, 2012 till June 30, 2012 EUR/PLN
6 6 CONTENTS 1. ORGANISATION OF THE CAPITAL GROUP DESCRIPTION OF ORGANISATION OF THE CAPITAL GROUP CHANGES IN ORGANISATION OF THE CAPITAL GROUP Changes in organisation of the Capital Group in the first half-year of Changes in the organisation of the Capital Group after the balance sheet date ACTIVITY OF PGE CAPITAL GROUP FACTORS AND EVENTS AFFECTING RESULTS Macroeconomic situation Tariffs Electricity prices National Allocation Plan for the years ( NAP II ) and for the years ( NAP III ) Prices of CO2 emission rights Balance of energy of PGE Capital Group Sales of heat Termination of long-term contracts (LTC Fuel purchase costs FINANCIAL RESULTS OF PGE CAPITAL GROUP BUSINESS SEGMENTS Conventional Generation Renewable energy Wholesale trading Distribution Retail Sales Other Operations PUBLICATION OF FINANCIAL FORECASTS OTHER SIGNIFICANT EVENTS OF THE REPORTING PERIOD AND SUBSEQUENT EVENTS Legal aspects Project WEKTOR Activities related to nuclear energy Investment project Opole II Agreement on the exploration for and extraction of shale gas Letter of Intent on joint participation in preparation, construction and exploitation of the first Polish nuclear power plant Decisions of the President of the Energy Regulatory Office related to realisation of LTC Act Changes in the composition of the Management Board of PGE S.A Conclusion of material agreement on hard coal supply for period Conclusion of material agreement for coal supply for the needs of Investment Project Opole II RISKS AND THREATS OF THE PGE CAPITAL GROUP RISK FACTORS CONNECTED WITH MARKET ENVIRONMENT AND GENERAL MACROECONOMIC SITUATION IN POLAND AND IN THE WORLD Risk connected with macroeconomic situation Risk relating to an increasing competition Risk of a decrease in demand for electricity and heat... 62
7 RISK FACTORS CONNECTED WITH REGULATORY AND LEGAL ENVIRONMENT Political risk Risk of instability of legal environment Risk associated with amendments to the support schemes for renewable and cogeneration sources Risk connected with the requirement for licenses Risk resulting from the potential violation of antitrust regulations Risk connected with the programme of CO2 emissions reduction Risk of restrictions with respect to emissions to the environment of substances other than CO2 and of more stringent BAT standards RISK FACTORS CONNECTED WITH THE OPERATING ACTIVITY OF THE PGE CAPITAL GROUP Risk of disruption of fuel supplies and insufficient stocks of fuel Risk connected with mining site rehabilitation expenses Risk connected with weather conditions Risk relating to maintenance, repairs, modernisations and investments Risk of unsettled legal status of the real estates Risk relating to obtaining and cost of external financing (downgrade or withdrawal of the rating of PGE) Risk associated with the decisions of the President of the Energy Regulatory Office regarding the implementation of LTC Act Risk of transfer prices Risk of insufficient insurance protection Risk relating to court, arbitration and administrative proceedings and employees claims Risk of asset impairment RISK FACTORS RELATED TO RISK OF PRICE CHANGE AND CREDIT RISK Commodity price risk Interest rate risk Foreign exchange risk Liquidity risk Credit Risk FACTORS, WHICH IN COMPANY S OPINION, WILL AFFECT THE RESULTS WITHIN AT LEAST THE NEXT QUARTER SHAREHOLDERS HOLDING DIRECTLY OR INDIRECTLY BY SUBSIDIARIES AT LEAST 5% OF THE TOTAL VOTES AT COMPANY S GENERAL MEETING AS AT THE DATE OF THE HALF-YEAR REPORT NUMBER OF SHARES OR RIGHTS TO SHARES OF THE COMPANY HELD BY COMPANY S MANAGERS AND SUPERVISORS, AS OF THE DATE OF SUBMISSION OF THE HALF-YEAR REPORT INFORMATION ON ISSUE, REDEMPTION AND REPAYMENT OF DEBT SECURITIES AND OTHER SECURITIES INFORMATION ON GRANTING BY THE COMPANY OR ITS SUBSIDIARY OF LOAN SECURITIES OR GUARANTEES JOINTLY TO A SINGLE ENTITY OR ITS SUBSIDIARY, IF THE TOTAL VALUE OF THE EXISTING SECURITIES OR GUARANTEES IS EQUIVALENT TO AT LEAST 10% OF COMPANY S EQUITY INFORMATION CONCERNING PROCEEDINGS IN FRONT OF COURT, BODY APPROPRIATE FOR ARBITRATION PROCEEDINGS OR IN FRONT OF PUBLIC ADMINISTRATION AUTHORITIES STATEMENTS OF THE MANAGEMENT BOARD STATEMENT ON THE RELIABLE PREPARATION OF THE FINANCIAL STATEMENTS STATEMENT ON THE ENTITY AUTHORISED TO AUDIT THE FINANCIAL STATEMENTS... 80
8 8 1. Organisation of the Capital Group 1.1. Description of organisation of the Capital Group Capital Group of PGE Polska Grupa Energetyczna S.A. ( PGE Capital Group, the Group, PGE Group ) currently organizes its activities in five main business segments: Wholesale Trading Mining and Conventional Generation ( Conventional Generation ) Includes trading of electricity, related products and fuels. Includes extraction of lignite and generation of electricity and heat from conventional sources and distribution of heat. Distribution of electricity Renewable Energy Includes electricity generation from renewable sources and in pumped storage power plants. Retail sales of electricity
9 9 9 Additionally, the Group also comprises of company, whose main activities are preparation and execution of project of construction of nuclear power plants within First Polish Nuclear Power Plant Program, companies providing IT and telecommunication services and supporting services to companies from the energy and mining sectors like: building, renovation and modernization works and investments in electricity equipment, comprehensive diagnostic tests and measurements of electro energy machines and equipment, management of by-products of coal combustion, development and implementation of above technologies usage as well as rehabilitation of degraded areas. Detailed description of the organization of the PGE Capital Group and the full list of entities subject to consolidation are presented in Note 1 and 3 to the consolidated financial statements.
10 10 Companies comprising the main business segments of PGE Group as at June 30, 2013: Segment Company Conventional Generation 1. PGE Górnictwo i Energetyka Konwencjonalna S.A. ( PGE GiEK S.A. ) 2. Przedsiębiorstwo Energetyki Cieplnej sp. z o.o. Renewable Energy 3. PGE Energia Odnawialna S.A. 4. Bio-Energia S.A. 5. Pelplin sp. z o.o. 6. Żuromin sp. z o.o. 7. Elektrownia Wiatrowa Baltica-1 sp. z o.o. 8. Elektrownia Wiatrowa Baltica-2 sp. z o.o. 9. Elektrownia Wiatrowa Baltica-3 sp. z o.o. 10. Eolica Wojciechowo sp. z o.o. 11. Dong Energy Polska S.A. (currently PGE Energia Natury S.A.*) 12. Dong Energy Renewables Polska sp. z o.o. (currently PGE Energia Natury sp. z o.o.*) 13. Dong Energy Karnice III sp. z o.o. (currently PGE Energia Natury Karnice sp. z o.o.*) 14. Dong Energy Bukowo sp. z o.o. (currently PGE Energia Natury Bukowo sp. z o.o.*) 15. Dong Energy Olecko sp. z o.o. (currently EPW Energia Olecko sp. z o.o.*) 16. Omikron sp. z o.o. (currently PGE Energia Natury Omikron sp. z o.o.*) 17. Kappa sp. z o.o. (currently PGE Energia Natury Kappa sp. z o.o.*) 18. Polska Energia Wiatrowa sp. z o.o. (currently PGE Energia Natury PEW sp. z o.o.*) Wholesale Trading 19. PGE Polska Grupa Energetyczna S.A. ( PGE S.A. ) 20. PGE Trading GmbH Distribution 21. PGE Dystrybucja S.A. Retail Sales 22. PGE Obrót S.A. *The change of firm of the company has not been registered as at the date of this report
11 Changes in organisation of the Capital Group Changes in organisation of the Capital Group in the first half-year of 2013 The changes, which occurred in the Group s structure during the 6-month period ended June 30, 2013, are presented in Note 3 to consolidated financial statements and described below. Shares in subsidiaries and associates In the first half of 2013 PGE Polska Grupa Energetyczna S.A. changed its equity interest in the following entities: on January 17, 2013, the Extraordinary General Meeting of PGE Energia Odnawialna S.A. adopted a resolution to increase the share capital of the company from PLN 217,126, to PLN 308,500,000.00, i.e. by PLN 91,373, by issuing 9,137,350 inscribed shares at a nominal and issue price of PLN 10 per share. All the shares of the company in the increased share capital were acquired by PGE S.A. in exchange for a cash contribution. On February 26, 2013, the share capital increase was registered in the National Court Register. on January 23, 2013 PGE S.A. purchased from a minority shareholder 3,885 shares of EXATEL S.A., constituting % in the share capital of the company. After the above transactions PGE S.A. currently holds 99.98% in the share capital of EXATEL S.A. on March 27, 2013 PGE S.A. and PGE Górnictwo i Energetyka Konwencjonalna S.A. ( PGE GiEK S.A. ) signed an agreement for sale of 100% shares of PGE Gubin sp. z o.o. with its seat in w Gubin. On the ground of the agreement, the property right of 100% shares of PGE Gubin sp. z o.o. was transferred to PGE GiEK S.A. as of March 27, On April 8, 2013 PGE Obrót S.A. signed an agreement with a minority shareholder on squeeze-out of 5,127 bearer shares (the Agreement ), held by the minority shareholder. The purchase of shares was made pursuant to art of the Polish Commercial Companies Code. As a result of the Agreement, on April 15, 2013 the company paid to the minority shareholder the full buyout price for 5,127 shares. Following the execution of the Agreement, all the shares of the Company have been bought out, and PGE Polska Grupa Energetyczna S.A. became the sole shareholder of the company.
12 12 In connection with the above squeeze-out, the company holds 22,222 treasury shares (constituting 0.45% in the share capital of the company), including 21,979 treasury shares, which were purchased by the company through squeeze-out pursuant to art of the Polish Commercial Companies Code and 243 shares not allotted to the shareholders during the consolidation process of companies from PGE Capital Group in In connection with the transactions, PGE S.A. currently holds 99.55% in the share capital of PGE Obrót S.A., being the sole shareholder of the company. In the first half of 2013 PGE S.A. purchased from minority shareholders a total of 2,489 shares of PGE Górnictwo i Energetyka Konwencjonalna S.A. (constituting % in the share capital of PGE GiEK S.A.). On June 28, 2013 the Ordinary General Meeting of PGE Obrót S.A. adopted a resolution on distribution of net profit for 2012 and allocation of part of reserve capital for dividend payment. Part of the dividend was paid in form of dividend in kind through transfer of 16,865,600 shares of PGE Górnictwo i Energetyka Konwencjonalna S.A. by PGE Obrót S.A. to PGE S.A. On July 1, 2013 the ownership right of shares of PGE GiEK S.A. was transferred to PGE S.A. As at July 1, 2013 PGE S.A. held 93.62% in the share capital of PGE GiEK S.A. On June 28, 2013 PGE S.A. and Energa Hydro sp. z o.o. (subsidiary of Energa S.A.) concluded with Dong Energy Wind Power A/S ( DONG Energy ) on June 28, 2013 acquisition agreement of shares in companies operating wind farms and developing portfolios of wind farms in Poland. Concluding of the abovementioned agreement results from conditional agreement concluded on February 19, 2013 and a further approval for concentration issued by the President of the Office of Competition and Consumer Protection dated June 4, 2013 (see Note 3.1. and 3.2. to the consolidated financial statements). On the ground of the acquisition agreement, as of June 28, 2013 the ownership rights of the following companies were transferred to PGE S.A.: Dong Energy Polska S.A. (100%); Dong Energy Renewables Polska sp. z o.o. (100%); Dong Energy Karnice III sp. z o.o. (100%);
13 13 Dong Energy Bukowo sp. z o.o. (100%); Dong Energy Olecko sp. z o.o. (81%). Dong Energy Polska S.A. (current firm of the company is PGE Energia Natury S.A.) is the sole partner in the following companies: Kappa sp. z o.o. (currently PGE Energia Natury Kappa sp. z o.o.), Omikron sp. z o.o. (currently PGE Energia Natury Omikron sp. z o.o.) and Polska Energia Wiatrowa sp. z o.o. (currently PGE Energia Natury PEW sp. z o.o.). On March 5, 2013 PGE Inwest spółka z ograniczoną odpowiedzialnością II S.K.A. in liquidation with its seat in Warsaw was deleted from the National Court Register as a result of liquidation proceeding. PGE S.A. held 100% in the share capital of the company. PGE Inwest Sp. z o.o. was a working partner of the company. On April 12, 2013 ELECTRA Bohemia s.r.o. in liquidation with its seat in Prague (Czech Republic), was deleted from the entrepreneurs register as a result of the liquidation proceeding. Decision on deletion of the company from the register became final on April 28, PGE S.A. held 100% shares in the share capital of the company. In the first half of 2013 PGE Group companies changed their capital exposure in the following entities: On January 7, 2013 the Extraordinary Meeting of Shareholders of Bio-Energia S.A. adopted a resolution on merger of Bio-Energia S.A. (acquiring company) with Biogazownia Łapy sp. z o.o. and Biogazownia Wożuczyn sp. z o.o. (acquired companies) and on changes to the Statutes of the acquiring company pursuant to art. 516 of the Polish Commercial Companies Code. The merger of the companies was registered in the National Court Register on January 31, On January 8, 2013, a conditional sale agreement was signed with regard to the acquisition of shares of Eolica Wojciechowo sp. z o.o. with its seat in Czymanów by the company Greentech Energy Systems A/S. Pursuant to an agreement for sale of shares concluded on January 24, 2013, Greentech Energy Systems A/S sold 9,550 shares to PGE Energia Odnawialna S.A., which constituted 50% of the Eolica Wojciechowo sp. z o.o. share capital. Under the transaction PGE Energia Odnawialna S.A. acquired 100% of shares in the share capital of the company concerned.
14 14 On February 19, 2013 PGE Energia Odnawialna S.A., as the sole partner of the company, on the ground of the resolution of the Extraordinary Assembly of Partners contributed to Eolica Wojciechowo sp. z o.o. a surcharge in the meaning of art. 177 of the Commercial Companies Code in the aggregate amount of PLN 59,999,976, i.e. PLN 3, to each share of the company. On January 10, 2013, a conditional agreement was signed by PGE Energia Odnawialna S.A. and BE-BETON sp. z o.o. for the sale of 100% of Budownictwo Hydro - Energetyka Dychów sp. z o.o. shares owned by PGE Energia Odnawialna S.A. On February 21, 2013, the title to 100% of Budownictwo Hydro Energetyka Dychów sp. z o.o. shares was transferred to the company BE-BETON sp. z o.o. under a conditional sale agreement. On December 21, 2012 PGE GiEK S.A. set up MegaSerwis sp. z o.o. with its seat in Zgorzelec. PGE GiEK S.A. took up 100% in the share capital of that company. The share capital of the company in amount of PLN 100,000 was paid on January 31, On March 21, 2013 the company was registered in the National Court Register. On March 26, 2013 the Extraordinary Assembly of Partners of MegaSerwis sp. z o.o. adopted a resolution on increase of the share capital of the company from PLN 100,000 to PLN 2,100,000, i.e. by PLN 2,000,000, through issue of 2,000 new shares with a nominal value of PLN 1,000 each. All newly issued shares were acquired by PGE GiEK S.A. The company started its operations as of April 1, On March 25, 2013 the Extraordinary Assembly of Partners of ELBEST sp. z o.o. adopted a resolution on change to the articles of partnership, consisting in deletion of some of the types of company s activities. The above changes were registered in the National Court Register on April 2, As of March 31, 2013 the company abandoned activities in the services area and handed over 891 employees to MegaSerwis sp. z o.o., on the ground of art of the Labour Law.
15 15 On April 25, 2013 District Court in Rzeszów decided to repeal the settlement approved on October 11, 2011 by the Meeting of Creditors of MEGA sp. z o.o. with its seat in Miłocin and approved by the decision of October 19, 2011 and to open bankruptcy proceeding involving liquidation of assets of the MEGA sp. z o.o. On June 3, 2013 District Court in Wrocław registered the merger of ELTUR-WAPORE sp. z o.o. with its seat in Bogatynia (acquiring company) with EPO sp. z o.o. with its seat in Opole pursuant to art p. 1 of the Polish Commercial Companies Code, i.e. by transfer of all assets of EPO sp. z o.o. to "ELTUR-WAPORE" sp. z o.o. As a result of the merger the share capital of the acquiring company amounting to PLN 22,631, was raised by PLN 9,350, i.e. to PLN 31,981,500.00, through issue of 18,700 new shares with a nominal value of PLN each. After the merger, the firm of the acquiring company was changed from Przedsiębiorstwo Produkcji Sorbentów i Rekultywacji ELTUR-WAPORE sp. z o.o. to EPORE sp. z o.o. PGE GiEK S.A. holds 54,613 shares in EPORE sp. z o.o. with a nominal value of PLN 27,306, constituting 85.38% of the share capital. On January 7, 2013 the Extraordinary Assembly of Partners of BESTGUM POLSKA sp. z o.o. adopted a resolution on change to the Deed of Foundation of the company, consisting in expansion of activities by rehabilitation and other service activities connected with the waste management. Above change was registered in the National Court Register on January 23, In the 6-month period ended June 30, 2013, PGE Capital Group did not discontinue any of its significant activities.
16 Changes in the organisation of the Capital Group after the balance sheet date On July 5, 2013 PGE S.A. acquired from a minority shareholder 2,000 shares of PGE GiEK S.A. (constituting % in the share capital of PGE GiEK S.A.) (see p of this report). On June 27, 2013 Ordinary General Meeting of PGE S.A. adopted a resolution on merger of PGE S.A. (acquiring company) with PGE Energia Jądrowa S.A. (acquired company), expression of consent to the merger plan and the amendment of the Statute of the acquiring company. The merger was carried out by course of art p. 1, art and art of Code of Commercial Companies i.e. through transfer of all assets of the acquired company to the acquiring company without raising the share capital of the acquiring company and without the issue of new shares of the acquiring company in exchange of acquired company s shares for acquiring company s shares, on the terms agreed in the merger plan. The merger of the companies was registered in the National Court Register on July 31, On July 31, 2013 PGE S.A. jointly with Energa Hydro sp. z o.o. (subsidiary of Energa S.A.) concluded with Iberdrola Renovables Energía, S.A.U. and European Bank for Reconstruction and Development ( EBRD ) two agreements for acquisition of 100% shares in Iberdrola Renewables Polska Sp. z o.o. As a result of these agreements, PGE S.A. acquired 32.7% shares in Iberdrola Renewables Polska Sp. z o.o., comprising of portfolio of operating wind farms with a total capacity of 70.5 MW with contracted off-take of electricity and certificates and pipeline of projects in the advanced stage of development with planned capacity of 36 MW (see Notes 3.1. and 3.2. to the consolidated financial statements).
17 17 2. Activity of PGE Capital Group 2.1. Factors and events affecting results Macroeconomic situation The PGE Group runs its activities mainly in Poland. Therefore it has been and will be dependent on macroeconomic trends existing in Poland. At the same time, in connection with the growing integration, the domestic economy is more and more sensitive to the changes of the economic situation in European Union as well as in the international markets. Condition of the European economy, impact of future regulatory decisions and unstable legal environment makes assessments of development prospects in the European energy sector subject to significant unpredictability. As a rule, there is a positive correlation between the growth of electricity demand and economic growth. Thus, the macroeconomic situation of Poland has an impact on financial results achieved by the PGE Group. Falling electricity prices in Poland and in Europe as a consequence of weaker demand for electricity and considerably higher share of subsidized renewable energy sources in the total energy output reduced the profitability levels of conventional sources of electricity generation, and in certain cases even led to their total elimination. This is particularly relevant to gas-fired power plants and the least efficient coal-fired plants. Weakening economic conditions in the 6-month period ended June 30, 2013 resulted in decreased demand for electricity in the National Power System, that was by approximately 1.0% lower in comparison to the 6-month period ended June 30, Table: Key economic ratios connected with the Polish economy. Key data H H Real GDP growth (% of growth) 1 0.7* 2.9 Annual CPI rate (% of growth) Domestic electricity consumption (% of growth) Domestic electricity consumption (TWh) * estimates by Bank Handlowy w Warszawie S.A. 1 Source: Polish Central Statistical Office, real growth of GDP in constant previous year s price, with corresponding period of preceding year = 100; 2 Polish Central Statistical Office, inflation rate, with corresponding period of preceding year = 100; 3 PSE S.A.
18 Tariffs PGE Group companies earn part of their income based on tariffs approved by the President of the Energy Regulatory Office: I. tariffs for the sale of electricity to households (G tariff group); II. III. tariffs of distribution system operators tariffs for heat. Sales of electricity In the 6-month period ended June 30, 2013 sales of electricity to recipients from the G tariff group, connected to the distribution network of PGE Dystrybucja S.A., took place on the basis of electricity Tariff approved by the decision of the President of the Energy Regulatory Office of December 16, 2011, whose validation was prolonged to June 30, 2013 by the decision of the President of the Energy Regulatory Office of December 20, Approved Tariff came into force on January 1, 2012 no changes to the prices were introduced. As of July 1, 2013 sales of electricity to G-tariff customers connected to the grid of PGE Dystrybucja S.A. is taking place on the ground of tariff set for PGE Obrót S.A. with its seat in Rzeszów approved by the decision of the President of the Energy Regulatory Office of June 11, In the 6-month period ended June 30, 2013 sales of energy to the corporate customers (key and business) and to individuals (other than G tariff customers connected to the distribution network of PGE Dystrybucja S.A.), took place on the basis of Tariff for customers from A, B, C and R tariff groups, approved by the resolution of the Management Board of PGE Obrót S.A. and effective from December 1, 2011, as well as on the basis of public promotional offers and individually negotiated sale conditions.
19 19 Distribution of electricity Methodology of and assumptions for tariffs determination were published in the document Tariffs for the DSO for the year 2013, which were prepared by the President of the Energy Regulatory Office and provided to distribution system operators. Tariff of PGE Dystrybucja S.A. for 2013 was approved by the President of the Energy Regulatory Office on December 19, Tariffs for 2013, according to resolution of the Management Board of PGE Dystrybucja S.A, dated December 21, 2012, came into force on January 3, 2013 except for the transition fee (according to the decision of the President of the Energy Regulatory Office, the transition fee has been in force since January 1, 2013). Distribution tariffs for 2012 approved by the President of the Energy Regulatory Office, contributed to changes in average payments for customers in particular tariff groups in comparison to year 2012: A tariff group decrease by 0.31%; B tariff group increase by 1.42%; C+R tariff group increase by 1.97%; G tariff group increase by 1.39%. An average price of energy distribution services in comparison to last tariffs binding in 2012 increased by approximately 1.10 %. During the reporting period the approved tariffs for distribution services were not subject to any changes.
20 20 Tariff for heat Pursuant to art. 47 sections 1 and 2 of the Energy Law, energy companies, which hold licences, set tariffs for heat and propose their duration. Submitted tariff is subject to the approval by the President of the Energy Regulatory Office, provided that it is consistent with rules and regulations referred to in art of the Energy Law. Detailed rules for tariffs determination are defined in the Regulation of the Polish Minister of Economy of September 17, 2010 on detailed rules for calculation of tariffs and on settlements with regard to heat supply. Conduction of proceedings concerning heat tariffs approval lies within the competence of regional Branches of Energy Regulatory Office. At present, costs recognized by the President of the Energy Regulatory Office as justified costs to calculate tariffs for PGE Group companies are lower than costs actually incurred by these companies Electricity prices The electricity market, in a regulated segment, is based on the operation of power exchanges and trading platforms. After Warsaw Stock Exchange stopped the trading of commodities as of March 31, 2013, exchange trading of electricity has been concentrated on Towarowa Giełda Energii ( TGE ). Total turnover on TGE in the first half of 2013 accounted for approx. 73% of the regulated market sales. Other trading operations were carried out on trading platforms: Tradition Financial Services ( TFS ) (approx. 22% of market share), and GFI Brokers ( GFI ) (approx. 5%). Trading conditions on the electricity wholesale market are subject to constant changes. The introduction of the so-called power exchange obligation, i.e. electricity generators obligation to sell energy on power exchange markets or regulated markets (art. 49a clause 1 and 2 of the Energy Law) brought about increasing turnovers on TGE, in particular in the futures and forward contracts segment. In the first half of 2012 futures and forward trading on TGE accounted for almost 39% of the organised futures and forward market, while in the first half of 2013 it reached 70%. The SPOT market on TGE is based on the Day Ahead Market and the Intra Day Market, where transactions for hourly contracts and block transactions in baseload, peakload and off-peak hours are concluded.
Management Board s report on activities of the Capital Group of PGE Polska Grupa Energetyczna S.A. for the 3-month period ended March 31, 2014 Contents 1 General information about the PGE Capital Group
1 1 2 CONTENTS 1. GENERAL INFORMATION ABOUT THE PGE CAPITAL GROUP... 7 1.1. DESCRIPTION OF ORGANISATION AND ACTIVITY OF THE CAPITAL GROUP... 7 1.2. IMPLEMENTATION OF STRATEGY AND PROSPECTS FOR DEVELOPMENT
2 CONTENTS 1. GENERAL INFORMATION ABOUT THE COMPANY AND PGE CAPITAL GROUP 6 1.1. CHANGES IN ORGANISATION OF THE COMPANY AND OF THE PGE CAPITAL GROUP... 6 1.2. CHANGES IN THE ORGANISATION OF THE COMPANY
Management Board s report on activities of the Capital Group of PGE Polska Grupa Energetyczna S.A. for the 3-month and 9-month period ended September 30, 2014 Contents 1 General information about the PGE
1 2 CONTENTS 1. GENERAL INFORMATION ABOUT THE PGE CAPITAL GROUP... 7 1.1. DESCRIPTION OF ORGANISATION AND ACTIVITY OF THE CAPITAL GROUP... 7 1.2. CHANGES IN ORGANISATION OF THE CAPITAL GROUP... 10 1.2.1.
1 Consolidated quarterly report for the first quarter of year 2011 Selected consolidated financial data of PGE Polska Grupa Energetyczna S.A. Capital Group Period ended March 31, 2011 (not audited) Period
Management Board s report on activities of the Capital Group of PGE Polska Grupa Energetyczna S.A. for the year 2014 ended December 31, 2014 Contents 1 Description of activity of the Capital Group 8 1.1
Clean Coal Seminar 2014 Using lignite in the modern low-emission power plants Waldemar Szulc Vice President of the Board PGE GiEK S.A. Warsaw, 2 June 2014 Agenda Organisational structure Basic information
PGE Polska Grupa Energetyczna S.A. Consolidated financial statements For the year 2014 ended in accordance with IFRS EU (in PLN million) zakończony dnia 31 marca 2014 roku zgodne z MSSF (w tysiącach złotych)
PGE Polska Grupa Energetyczna S.A. Condensed interim consolidated financial statements for the 3 months period ended in accordance with IFRS EU (in PLN million) zakończony dnia 31 marca 2014 roku zgodne
Management Board s report on activities of the Capital Group of PGE Polska Grupa Energetyczna S.A. for the 6-month period ended June 30, 2015 Contents 1 Description of activity of the Capital Group 5 1.1
Condensed interim separate financial statements for the 3-month and 9-month period ended in accordance with IFRS EU (in PLN million) zakończony dnia 31 marca 2014 roku zgodne z MSSF (w tysiącach złotych)
Financial results of 2013 Outlook 2014+ 12 March 2014 DUON benefits from liberalisation of electric energy and gas markets: summary of 2013 +56% increase of revenues to almost PLN 400 m +54% increase of
Interim Abbreviated Consolidated Financial Statements of BNP Paribas Bank Polska SA Group for the Third Quarter 2011 BNP Paribas Bank Polska SA with its registered office at ul. Suwak 3, registered with
Enclosure to resolution of the Supervisory Board of PGE Polska Grupa Energetyczna S.A. no. 261/VIII/2011 of 14 April 2011 THE REPORT OF THE SUPERVISORY BOARD OF PGE POLSKA GRUPA ENERGETYCZNA S.A. ON THE
Abbreviated Interim Separate Financial Statements of BNP Paribas Bank Polska SA for the first half of 2012 BNP Paribas Bank Polska SA with its registered office at ul. Suwak 3, registered with the District
Poland Key Issues + With regard to electricity, coal is still the main source of fuel for power generation. Poland's generating capacity is ageing, and the country needs better incentives for investment
Interim Abbreviated Consolidated Financial Statements of Fortis Bank Polska SA Capital Group for 3 Quarters of 2009 Table of Contents 1. Financial Highlights 3 2. Consolidated Financial Statements of Fortis
The Lubelski Węgiel BOGDANKA Group Quarterly Consolidated Report for the First Quarter of 2016 as at and for the period ended on 31 March 2016 Financial Statements prepared in accordance with IAS 34 Interim
PGE Polska Grupa Energetyczna S.A. Separate Financial Statements for the year 2014 ended in accordance with IFRS EU (in PLN million) zakończony dnia 31 marca 2014 roku zgodne z MSSF (w tysiącach złotych)
Vattenfall Q2 2013 results Øystein Løseth, CEO and Ingrid Bonde, CFO Conference call for analysts and investors, 23 July 2013 Q2 Highlights Impairment charges on thermal assets and goodwill amounting to
ANNUAL REPORT OF BANK DnB NORD POLSKA SA FOR THE YEAR 2012 BANK DnB NORD POLSKA SA MEMBER OF DNB Contents About the Bank and the DNB Group 3 Financial performance of Bank DnB NORD Polska SA for the year
(text consolidated at 20 June 2012)* * 1) The Rules adopted by the Supervisory Board by Resolution No. 1/1110/2006 dated 4 January 2006, as amended by the Exchange Supervisory Board: - by Resolution No.
POZNAŃ, UL. NOWOWIEJSKIEGO 11 FINANCIAL STATEMENTS FOR THE 2010 FINANCIAL YEAR WITH AUDITOR S OPINION AND AUDIT REPORT TABLE OF CONTENTS AUDITOR S OPINION... 3 REPORT SUPPLEMENTING THE OPINION ON THE AUDIT
The Warsaw Stock Exchange Rules (text according to legal condition at 1 June 2015)* *The Warsaw Stock Exchange Rules adopted in Resolution No. 1/1110/2006 of the Exchange Supervisory Board dated 4 January
REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS OF GETIN NOBLE BANK S.A. FOR THE 2012 FINANCIAL YEAR I. GENERAL INFORMATION 1. Details of the audited Bank The Company operates under the business name Getin
FINANCIAL RESULTS Q1 2012 16 May 2012 Highlights Q1 2012 Satisfactory Q1 financials underlying EBITDA and profit before tax on a par with Q1 2011 - Lower power prices partly offset by increased power generation
Nuclear power development in Poland - we need decision today Hanna Trojanowska Director of International Affairs and New Technologies Department PGE Polska Grupa Energetyczna S.A. Organisation of the Polish
29th August, 2013 Zespół Elektrowni Pątnów-Adamów-Konin S.A. Ist Half 2013 Key data for 6 months 2013 (2Q 2013) Financial Operational o o o o Sales revenue = 1.327 m PLN (664 m PLN); EBITDA = 364 m PLN
CEZ GROUP CONSOLIDATED FINANCIAL STATEMENTS PREPARED IN ACCORDANCE WITH INTERNATIONAL FINANCIAL REPORTING STANDARDS AS OF DECEMBER 31, 2010 TOGETHER WITH INDEPENDENT AUDITOR S REPORT INDEPENDENT AUDITOR'S
Draft law on Renewable Energy Sources - Update January 2014 On 3 January 2014 another draft of new law on Renewable Energy Sources ( RES ) was published by the Polish Ministry of Economy ( MoE ). Additionally,
GRUPA LOTOS S.A. LONG-FORM AUDITORS REPORT ON THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2015 I. GENERAL NOTES 1. Background Grupa LOTOS S.A. (hereinafter the Company ) was incorporated on
E.ON s UK Consolidated Segmental Report for the year ended 31 December 2012 Introduction In accordance with the Electricity Generation Licence Condition 16 - Financial Information Reporting, and the Electricity
February 2, 2016 Consolidated Financial Results for the Third Quarter of Fiscal Year 2015 (From April 1, 2015 to December 31, 2015) [Japan GAAP] Company Name: Idemitsu Kosan Co.,Ltd. (URL http://www.idemitsu.com)
Towarowa Giełda Energii S.A. Statute unified text 1 1. The Company s name shall be Towarowa Giełda Energii Spółka Akcyjna. The Company may use an abbreviated name Towarowa Giełda Energii S.A. 1 and counterparts
Bank BPH Group Financial Report 3 quarters SELECTED FINANCIAL DATA 3 quarters in accruals (current year) from 01.01. to 30.09. PLN'000 3 quarters in accruals (previous year) from 01.01. to 30.09. 3 quarters
ScottishPower Segmental Generation and Supply Statements Required under Standard Condition 16B of Electricity Generation Licences and Standard Condition 19A of Electricity and Gas Supply Licences Contents
Interim Report January June 2015 April June 2015 Net sales of SEK 36,115 million (36,575) Underlying operating profit 1 of SEK 2,966 million (4,086) Operating profit of SEK -38,045 million (-1,637). Operating
Table of Contents: 1. Description of the organisation of the ENEA Capital Group...5 1.1. Description of changes made within the organisation of the Group... 5 1.2. Description of capital investments within
FINANCIAL RESULTS Q1 2016 CFO Hallvard Granheim 28 th April 2016 Highlights Q1 Increase in underlying results (EBITDA) - Nordic prices are down 15% Q-on-Q - High production from Nordic hydropower assets
FINANCIAL RESULTS Q2 2015 CEO CHRISTIAN RYNNING-TØNNESEN CFO HALLVARD GRANHEIM 23 July 2015 Highlights Solid underlying results (EBITDA) - Lower Nordic prices offset by increased production and contribution
The Kansai Electric Power Company, Incorporated and Subsidiaries Consolidated Financial Statements for the Years Ended March 31, 2003 and 2002 and for the Six Months Ended September 30, 2003 and 2002 The
STATUTES OF A JOINT-STOCK COMPANY ASSECO South Eastern Europe Spółka Akcyjna 1 Company s business name 1. The Company s business name shall be ASSECO South Eastern Europe Spółka Akcyjna. 2. The Company
Vattenfall Capital Markets Day 2005 Presentation by Lars G. Josefsson CEO 27 September, 2005 Content 2 1. Overview & recent developments 2. Industry trends 3. Electricity prices 4. Strategic focus 5. Climate
SUPPLEMENTAL INVESTOR INFORMATION Fourth Quarter 2012 Kevin Bryant Tony Carreño VP Investor Relations and Strategic Director Investor Relations Planning & Treasurer 816-556-2782 816-654-1763 firstname.lastname@example.org
Credit Opinion: PGE Polska Grupa Energetyczna S.A. Global Credit Research - 03 Jun 2014 Warsaw, Poland Ratings Category Outlook Issuer Rating PGE Sweden AB (publ) Outlook Bkd Sr Unsec MTN Moody's Rating
REPORT ON THE COMPANY S BUSINESS OPERATIONS AND ASSETS FOR 2014 Daniel Beneš, Chairman of the Board of Directors and Chief Executive Officer of ČEZ, a. s. Dear shareholders, ladies and gentlemen, please
112 Allianz Group Annual Report Liquidity and Funding Resources Organization The liquidity management of the Allianz Group is based on policies and guidelines approved by the Board of Management of Allianz
TGE OBJECTIVES FOR DOMESTIC AND EUROPEAN MARKET AND GROWTH PROSPECTS At the heart of Central European power and gas trading TGE - a reliable partner on electricity, gas and property rights markets Facts
Interim Financial Statements Nine-months ended September 30, 2015 FINANCIAL RESULTS FOR THE CHAIRMAN S REVIEW The Sagicor Group recorded net income from continuing operations of US $60.4 million for the
November 4, 2015 Consolidated Financial Results for the Second Quarter of Fiscal Year 2015 (From April 1, 2015 to September 30, 2015) [Japan GAAP] Company Name: Idemitsu Kosan Co., Ltd. (URL http://www.idemitsu.com)
This Consolidated Segmental Statement ( CSS ) satisfies Standard Licence Condition 19A of the Gas and Electricity Supply Licences and Standard Licence Condition 16B of the Electricity Generation Licence.
Conference call Transcript Release of 2012 Audited Consolidated Results Good morning America and good afternoon Europe, Welcome to Hrvatska elektroprivreda d.d. s first investor relations conference call.
Ontario Energy Report Q4 Electricity October December Electricity Supply Electricity production was lower in Q4 than in previous years, with milder than normal weather in October and December resulting
International Accounting Standard 28 Investments in Associates Scope 1 This Standard shall be applied in accounting for investments in associates. However, it does not apply to investments in associates
Marvipol S.A. Capital Group Opinion and Report of the Independent Auditor Financial Year ended 31 December 2012 CSWP Audyt Spółka z ograniczoną odpowiedzialnością Sp. k. ul. Nowy Świat 49 00-042 Warszawa
Rules of Alternative Trading System organised by the BondSpot S.A. The Rules adopted by the Management Board by Resolution No. 103/2009 dated 4 November 2009, as amended by the Management Board: by Resolution
Quarter Report 2014 ESSANELLE HAIR GROUP AG Q1 2 Q1/2014 ESSANELLE HAIR GROUP KEY FIGURES for 1 January to 31 March 2014/2013 (IFRS) million 2014 2013 Change* Consolidated sales 32.3 30.8 +4.7% essanelle
News Release FOR IMMEDIATE RELEASE Energy Future Holdings Reports First Quarter 2013 DALLAS May 2, 2013 Energy Future Holdings Corp. (EFH) today reported consolidated financial results for the first quarter
Financial statements of ČEZ, a. s. as of December 31, 2013 In terms of Section 19a of the Accounting Act, the financial statements of ČEZ, a. s. as of December 31, 2013 were compiled in accordance with
INFORMATION SHEET NO.54 Setting up a Limited Liability Company in Poland December 2008 General The Commercial Companies Code (KSH) regulates all issues related to the establishment, activity and dissolution
Information on the proposed changes in the Company Statutes submitted by the shareholder, the State Treasury On 3 June 2015 the Company received a letter from the shareholder, the State Treasury, in which,
Brief assessment of the standing of KGHM POLSKA MIEDŹ S.A. for financial year 2008 (approved by the Supervisory Board of KGHM Polska Miedź S.A. on 8 May 2009) In accordance with chapter III point 1 sub-point
MANAGEMENT S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS You should read the following management s discussion in conjunction with our unaudited consolidated interim condensed
2007 Annual Report 2007 COMMERCIAL FINANCE WWW.INGCOMFIN.PL It is with pleasure that I present to you the Annual Report of 2007 which describes the activity of ING Commercial Finance Polska S.A. Last year
Indian Accounting Standard (Ind AS) 28 Investments in Associates Investments in Associates Contents Paragraphs SCOPE 1 DEFINITIONS 2-12 Significant Influence 6-10 Equity Method 11-12 APPLICATION OF THE
CAN THE GAS POTENTIAL BE HARVESTED IN THE ELECTRICITY MARKET? 7th TYNDP WS, Riga, March 22, 2013 David Viduna, Head of Long-term Origination, ČEZ, a.s. CEZ GROUP IS AN INTERNATIONAL UTILITY WITH A STRONG
Fewer net errors and omissions, that is a new format of the balance of payments The size of net errors and omissions in the balance of payments decreased from 4.4% to 2.3% of GDP. This resulted from data
Annual Consolidated Financial Statements of BNP Paribas Bank Polska SA Group for 2014 BNP Paribas Bank Polska SA with its principal place of business in Warsaw at ul. Suwak 3, registered with the District
DIVISION PLAN OF DOM MAKLERSKI BZ WBK S.A. 24 July 2014 This Division Plan (the Division Plan ) was agreed on 24 July 2014 based on Art. 529 1.3, Art. 533 1 and 2, and Art. 534 of the Commercial Companies
Press Release 19 March 2015 O KEY GROUP ANNOUNCES AUDITED FINANCIAL RESULTS FOR 2014 O KEY Group S.A (LSE: OKEY), a leading food retailer in Russia, today released audited consolidated financial results
Report on compliance of AB S.A. with the Corporate Governance Rules Contents 1. Indication of corporate governance rules applicable to AB S.A.... 3 2. Indication of corporate governance rules which have
Consolidated Results for the First Quarter of the Fiscal Year Ending March 20, 2016 [Japan GAAP] July 21, 2015 Listed company name: YASKAWA Electric Corporation http://www.yaskawa.co.jp/en/ Representative:
FINANCIAL HIGHLIGHTS Grupa LOTOS S.A. PLN 000 EUR 000 Year ended Year ended Year ended Year ended Dec 31 2012 Dec 31 2011 Dec 31 2012 Dec 31 2011 Revenue 31,071,896 27,289,314 7,444,867 6,591,463 Operating
Contents Indian Accounting Standard (Ind AS) 7 Statement of Cash Flows Paragraphs OBJECTIVE SCOPE 1 3 BENEFITS OF CASH FLOW INFORMATION 4 5 DEFINITIONS 6 9 Cash and cash equivalents 7 9 PRESENTATION OF
STATUTORY BOARD FINANCIAL REPORTING STANDARD SB-FRS 28 Investments in Associates and Joint Ventures This standard applies for annual periods beginning on or after 1 January 2013. Earlier application is
7 December 2009 NERA Analysis of Energy Supplier Margins By Graham Shuttleworth Even though wholesale energy prices have fallen recently, gas and electricity suppliers are earning very little margin on
DISCLOSURE NOTES As a result of changes in SSE s management and reporting structure in 2011/12 and in the interests of improved transparency, SSE s financial statements for the year ending March 2012 were
THE POLSKA ENERGIA S.A. CAPITAL GROUP KATOWICE, ULICA KS. PIOTRA ŚCIEGIENNEGO 3 CONSOLIDATED FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR 2014 WITH AUDITOR S OPINION AND AUDIT REPORT TABLE OF CONTENTS AUDITOR
Issued on behalf of AssetCo plc Date: Friday 29 June 2012 Immediate Release Statement by the Chairman, Tudor Davies AssetCo plc ( AssetCo or the Company ) Results for the six-month period ended 31 March
LIBET S.A. REPORT OF THE MANAGEMENT BOARD ON THE OPERATIONS OF LIBET S.A. FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2015 Wrocław, 27 August 2015 1. SUPPLEMENTARY INFORMATION TO THE SEMI-ANNUAL REPORT...