MANAGEMENT BOARD MEMBERS

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2 MANAGEMENT BOARD MEMBERS Zbigniew Stopa President of the Management Board Roger de Bazelaire Vice-President of the Management Board, Chief Financial Officer Waldemar Bernaciak Vice-President of the Management Board, Sales and Logistics Krzysztof Szlaga Member of the Management Board, Procurement and Investments 2

3 LW BOGDANKA GROUP RESULTS FOR Q AND FY 2013 YEAR-ON-YEAR CHANGE IN LW BOGDANKA GROUP RESULTS FOR Q AND FY % + 8.6% + 9.1% + 9.4% + 6.7% % % % REVENUES EBIT EBITDA NET PROFIT + 7.2% % % + 4.5% % % NET PRODUCTION NEW WORKINGS (BY LENGTH) COAL SALES (BY VOLUME) FY 2013 Q

4 AGENDA 1. Key operating data 2. Coal market overview 3. Financial highlights 4. Capex projects in Q Appendices Financial information 4

5 PRODUCTION AND SALES OF COMMERCIAL-GRADE COAL AT LW BOGDANKA S.A. IN Q AND FY 2013 Gross production Net production New workings 3,174.4 thousand tonnes in Q (up by 13.2% on Q4 2012) 12,184.7 thousand tonnes in 2013 (up by 7.0% on 2012) 2,107.0 thousand tonnes in Q (up by 22.7% on Q4 2012) 8,345.3 thousand tonnes in 2013 (up by 7.2% on 2012) lower than planned coal production was due to difficult geological conditions in Q4, i.e. longwall gate roads convergence in the case of the G-2 longwall Work is ongoing to open up new coal seams: in Q4 2013, 7.4 km of new roadway was developed compared with 6.6 km in Q (y-oy change of +12.2%), in km of new roadway was developed compared with 23.3 km in 2012 (y-o-y change of +5.3 km, or +22.8%) Both in Q and FY 2013, there was a significant increase in newly developed workings, as a result of consistent pursuit of the Company s Development Strategy Coal sales There was a significant increase in coal sales in Q4 2013: 2,062.2 thousand tonnes of coal was sold, i.e. 10.5% more than in Q (or thousand tonnes) In 2013, the volume of coal sold was 8,147.6 thousand tonnes, compared with 7,795.5 thousand tonnes in 2012 (up by 4.5%) 10,0 8,0 6, ,0 2,0 0,0 [million tonnes] net production coal sales 5

6 CHARACTERISTICS OF THE WORKED COAL DEPOSIT IN 2014 Two new longwalls in the Stefanów field have turned out to yield coal of lower quality compared with that produced from the neighbouring longwall 7/VII/385. Therefore, a key element of the Company s Strategy is now to launch the wet part of the Coal Dressing Plant. The 7/VII/385 longwall cross-cut Longwall 7/VII/385 part G-1 (longwall mined from Oct 2011 to Mar 2013) Period when the longwall was mined up to the cross-cut Oct 2011 to May 2012 Average calorific value of raw coal while mined up to the cross-cut GJ/t Calorific value of coal at haulage from the coal face - over 19 GJ/t Longwall 6/VII/385 Longwall 1/VIII/385 6

7 CHARACTERISTICS OF THE WORKED COAL DEPOSIT IN 2014 breakout surface a/ Shearer longwall support set ŁPSC 10/K Photo 1. Plough longwall, passageway for miners. Total lack of eye contact with the worked longwall face. coal seam surface b/ Plough longwall support set ŁPSC 12/S Fig. 2. Sections cut across the ends of the headgates with typical supports used for shearer and plough longwalls Photo 2. Plough longwall, working site. Fallen part of roof and collapsed side of work. 7

8 PRODUCTION OBJECTIVES FOR 2014 In the section from the block limit to the cross-cut, longwall 7/VII/385 yielded coal whose characteristics after dry line treatment made it suitable for sale. Given that longwalls 1/VIII/385 and 6/VII/385 are in the immediate vicinity of longwall 7/VIII/385, and that the height of the coal seam in longwall 6/VII/385 was forecast to be 10 cm 22 cm above the analogous height in longwall 7/VIII/385, it was assumed that in the period from November 2013 to July 2014 it would be possible to sell coal after dry line treatment (as in the case of coal mined from longwall 7/VII/385). Forecast heights of coal seam in longwalls 6/VII/385 and 1/VIII/385 compared with the actual height of the coal seam in the part of longwall 7/VII/385 between the block limit and the cross-section in longwall 7/VII/385. Longwall 1/VIII/385 Height from 1.28 to 1.42 Longwall 7/VII/385 Height from 1.28 to 1.42 Longwall 6/VII/385 Height from 1.33 to

9 PRODUCTION OBJECTIVES FOR 2014 The Company has been consistently pursuing its Development Strategy, which provides for doubling of production volumes. Due to worse geological characteristics of the deposit, our 2014 production target has been set in the range between 9.3 and 10 million tonnes of commercial coal. Reaching full processing capacity of the mine, currently planned for September 2014, will allow us to enrich the entire volume of extracted product and consequently to achieve our strategic objectives in the following years. The Company has maintained its lead in efficiency of mining operations, thanks to continuing cost optimisation, consistent development, improved work organisation and reliance on outsourcing, all of which contributes to lowering the unit cash cost of production (million tonnes) Net production - base 2011 Cumulative net production increment 9

10 COAL YIELD AT LW BOGDANKA S.A. 100,00% COAL YIELD AT LW BOGDANKA S.A. [ ] 90,00% 80,00% 70,00% 60,00% 50,00% 40,00% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q QUARTERLY COAL YIELD ANNUAL AVERAGE 10

12 DOMESTIC DEMAND FOR THERMAL COAL...* COAL PRICES OTHER EVENTS The average price of thermal coal in 2013 was PLN /tonne The average price of coal sold to commercial power plants in 2013 was PLN /tonne. HARD COAL MARKET A slight increase in demand for thermal coal was visible in Q as well as throughout 2013 The level of stockpiled coal inventory remains high. PERFORMANCE OF POLISH COMPANIES* Silesian mines produced a total of 13.8 million tonnes of thermal coal in Q4 2013, and a total of 54.4 million tonnes over the full year 2013, which represented a 7.2% decline year on year. Thermal coal inventories at the mines amounted to 6,011.4 thousand tonnes as at the end of Q4 2013, down almost 1,184.0 thousand tonnes, or 16.6%, on the end of Q However, the level of coal stockpiled by commercial power plants increased in In Q4 2013, domestic sales of thermal coal amounted to 13,637.2 thousand tonnes (almost 74.10% of total sales of coal), up by 9.0% (1,129.1 thousand tonnes) on Q4 2012, reaching 46,758.6 thousand tonnes in the full year 2013, up thousand tonnes, or 1.2%, on the previous year (2012: 46,227.1 thousand tonnes). The average cost of thermal and coking coal sold in Q was PLN per tonne, down 4.7% year on year, and PLN per tonne in the full year 2013 (down 2.5% on 2012). * Source: Data by ARP, excluding LW BOGDANKA S.A. 12

13 ... AS A FACTOR DETERMINING LEVELS OF COAL PRODUCTION, SALES AND INVENTORIES* Thermal coal production, domestic sales and inventories (million tonnes) Thermal coal imports and exports (million tonnes) 70,0 60, ,0 12, ,0 10,0 40,0 8, ,0 6, ,0 4,0 10, ,0 0, , Thermal coal production Thermal coal imports Sales of thermal coal on the domestic market Thermal coal inventories at end of period Thermal coal exports Source: In-house estimates based on available market data 13

14 LW BOGDANKA S.A. S STRONG MARKET POSITION 25,00% MARKET SHARE IN [ ] 20,00% 19.8% 19.3% 15,00% 13.9% 13.7% 14.2% 14.8% Share of LWB sales in the thermal coal market 10,00% 10.4% 9.9% Share of LWB sales in the thermal coal market - products sold to commercial power plants 5,00% 0,00% Source: In-house estimates based on available market data 14

15 PRICES OF THERMAL COAL AT ARA PORTS* Price trend reversal on the domestic market Falling prices at ARA ports Growing exports The upward trend in thermal coal prices which began in August 2013 has now reversed Despite a temporary rise in Q3 2013, the price of thermal coal at ARA ports has been on a downward trend since November Coal exports went up year on year 260,0 255,0 250,0 245,0 240,0 235,0 230,0 225,0 Prices of thermal coal at ARA ports Jan Feb Mar Apr May Jun 2013 Jul Aug Sep Oct Nov Dec Jan Feb 2014 Large amounts of fine coal stockpiled at Silesian mines continue to drive price pressure from the commercial power plants. Source: In-house estimates based on available market data 15

16 PRICES IN THE THERMAL COAL MARKET COAL SOLD TO COMMERCIAL POWER PLANTS IN POLAND* 265,0 zł Prices of coal sold to commercial power plants in Poland 255,0 zł 245,0 zł 235,0 zł % 225,0 zł 215,0 zł PLN/tonne Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Prices of coal sold to commercial power plants in Poland, cumulatively from the beginning of the year 260,0 zł 255,0 zł 250,0 zł 245,0 zł % 240,0 zł 235,0 zł. 230,0 zł PLN/tonne Jan Jan Feb Jan Mar Jan Apr Jan May Jan Jun Jan Jul Jan Aug Jan Sep Jan Oct Jan Nov Jan Dec Source: In-house estimates based on available market data

17 INVESTMENTS IN NEW GENERATION CAPACITIES IN POLAND: Thermal coal investments currently considered in new generation capacity in Poland Group Facility Capacity PGE EC Zgierz 20 MW Tauron EC Nowa Dąbrowa G. 50 MW JSW EC Zofiówka 75 MW Tauron EC Tychy 50 MW ZAK EC Kędzierzyn Koźle 250 MW ENEA Elektrownia Kozienice 1,000 MW PGE Elektrownia Opole 2 x 900 MW Tauron Elektrownia Jaworzno 910 MW EDF Elektrownia Rybnik 900 MW KW KWK Czeczott 900-1,000 MW KIH Elektrownia Północ 2,000 MW ENERGA Elektrownia Ostrołęka 1,000 MW Considered investments in new generating capacity are necessary in view of gradual decommissioning of obsolete power generation assets. If the investment projects are not pursued or are delayed, a power capacity deficit is possible after Source: LW Bogdanka S.A. 17

19 LW BOGDANKA GROUP RESULTS FOR Q AND Q AND FOR FY 2013 AND FY 2012 Item Unit Q Q Gross production Net production Coal sales Inventories (end of period) 000 tonnes 000 tonnes 000 tonnes 000 tonnes Change % (Q4 2013/ Q4 2012) Technical and operating data FY 2013 FY 2012 Change % (FY 2013/ FY 2012) 3,174 2, % 12,185 11, % 2,107 1, % 8,345 7, % 2,062 1, % 8,147 7, % ,100.0% ,100.0% New workings (by length) km % % Coal yield % 66.4% 61.2% 8.5% 68.5% 68.4% 0.1% Financial data Revenue PLN , , % 1,899,830 1,835, % Gross profit PLN ,169 61, % 455, , % EBITDA PLN , , % 754, , % EBITDA margin % 42.9% 27.1% 58.3% 39.7% 37.6% 5.6% EBIT PLN ,244 48, % 424, , % EBIT margin % 24.4% 10.9% 123.9% 22.4% 21.2% 5.7% Net profit PLN ,995 35, % 329, , % 19

20 LW BOGDANKA GROUP RESULTS FOR Q AND Q AND FOR FY 2013 AND FY 2012 CONTD. RESULTS FOR Q AND Q [PLN 000] , , , , , ,995 61,034 35,334 Revenue Gross profit EBITDA Net profit Q Q RESULTS FOR FY 2012 AND FY 2013 [PLN 000] ,899,830 1,835, , , , , , , , ,728 Revenue Gross profit EBITDA Adjusted EBIT* Net profit FY 2012 FY 2013 *Adjusted EBIT EBIT adjusted for change in provisions and result of non-recurring events 20

21 LW BOGDANKA GROUP RESULTS FOR Q AND Q AND FOR FY 2013 AND FY 2012 CONTD. Revenues In Q4 2013, the Group generated revenues of PLN 481,531 thousand, up by nearly 9% on Q In 2013, the Group recorded a 3.5% increase in revenues as compared with the same period in 2012, at PLN 1,889,830 thousand (vs. PLN 1,835,801 thousand in 2012). Cost of products, merchandise and materials sold Cost of products, merchandise and materials sold in Q fell by 5.3% on Q4 2012, totalling PLN 322,510 thousand. Over the full year 2013, the cost increased by 0.3%. In nominal terms it remained at the 2012 level, despite a 4.5% increase in the volume of coal sold. Gross profit In Q4 2013, gross profit amounted to PLN 125,169 thousand, up by 105% on Q4 2012, while in the full year 2013 gross profit improved by more than 15% year on year. The strong profit dynamics in Q is also a result of lower operating profit in Q (due to production issues) and higher provisions (related mainly to employee benefits). Sales and administration expenses In Q4 2013, total sales and administration expenses were PLN 33,852 thousand, down 19.3% year on year. In 2013, distribution cost and administrative expenses were at the 2012 level. Operating profit (EBIT) Operating profit posted in Q was PLN 117,244 thousand, up 142.0% on Q EBIT for 2013 was up 9.1% on the previous year. EBIT margin in Q was 24.6%, up (by 13.4 pp) on Q Comparing Q and Q4 2012, EBIT margin increased by 1.2 pp to 22.4%,. Net profit In Q4 2013, the Group s net profit rose by 197.2% year on year net profit came in at PLN 104,995 thousand in 2013 (2012: 35,334 thousand). Net profit generated in the full year 2013 was PLN 329,728 thousand, up by nearly 7% year on year. Net profit for the financial year attributable to the Company s shareholders totalled PLN 329,417 thousand (2012: PLN 308,602 thousand). 21

22 LW BOGDANKA GROUP S BALANCE - SHEET PROVISIONS GROUP S PROVISIONS FOR Q AND Q AND FOR FY 2013 AND FY 2012 Item [PLN 000] Q Q Change Q4 2013/ Q [%] FY 2013 FY 2012 Change Q4 2013/ Q [%] Employee provisions (including subsidiaries) -30,324 30,109-7,362 45, % Liabilities under local real estate tax (incl. workings) 15,087-12,585-18,344-7,085 - Mine decommissioning provision -12,908 12, ,583 13,005 - Mining damage 3,894 9, % ,110 - Other 484 1, % 1,032 8, % TOTAL -23,767 40,702-21,618 67, % 22

23 LW BOGDANKA GROUP S BALANCE-SHEET PROVISIONS CONTD. GROUP S ON-BALANCE-SHEET PROVISIONS AT THE END OF 2013 AND 2012 Item [PLN 000] As at Dec As at Dec restated Change Dec / Dec [%] Employee provisions 200, , % Liabilities under local property tax (incl. workings) 27,846 9, % Mine decommissioning provision 85,278 89, % Mining damage 12,933 13, % Other 24,058 23, % TOTAL 350, , % 23

24 LW BOGDANKA GROUP S OPERATING PROFIT NET OF PROVISIONS AND NON - RECURRING EVENTS ANALYSIS OF THE GROUP S ADJUSTED EBIT FOR Q AND Q4 2012, AND FOR FY 2013 AND FY 2012 Item [PLN 000] FY 2013 FY 2012 Change (2013/2012) Revenue 1,899,830 1,835, % Cost of products, merchandise and materials sold, sales and administration expenses -1,444,031-1,440, % Other income 3,837 4, % Other expenses -3,062-1, % Other net gains/(losses) -31,771-8, % EBIT 424, , % EBIT margin 22.4% 21.2% 5.7% Provisions for employee benefits (see Note 20 to the financial statements of the LWB Group) Provisions for other liabilities (See Note 21 to the financial statements of the LWB Group) Other net gains/(losses) (see Note 26 to the financial statements of the LWB Group) 2,920 13, % 16,876 7, % 25,321-5,119 - Adjusted EBIT 469, , % Adjusted EBIT margin 24.7% 22.1% 11.8% *Adjusted EBIT EBIT adjusted by the balance of provisions and the result on non-recurring events. 24

25 LW BOGDANKA S.A. S EXPENSES BY NATURE IN 2013 BOGDANKA S.A. S EXPENSES BY NATURE IN Q AND Q4 2012, AND FOR FY 2013 AND FY 2012 Item [PLN 000] Q Q FY 2013 FY 2012 CHANGE [Q / Q4 2012] CHANGE [FY 2013 / FY 2012] Depreciation and amortization 85,461 68, , , % 9.8% Materials and energy 104, , , , % 7.5% External services 116, , , , % -0.6% Employee cost and benefits 192, , , , % 8.7% Entertainment and advertising 958 1,776 7,602 9, % -16.7% Taxes and charges 7,573 7,026 32,550 31, % 4.1% Other expenses 2,360 3,503 19,570 23, % -16.2% TOTAL EXPENSES 510, ,647 1,834,528 1,735, % 5.7% Change in inventories, accruals and deferrals -54,816-11,825-32,574-8, % 274.9% OPERATING EXPENSES 455, ,822 1,801,954 1,726, % 4.4% Capitalised expenses 102,661 91, , , % 26.0% Sales of merchandise and materials 2,262 3,594 9,403 13, % -27.7% Cost of products and goods sold 355, ,458 1,441,572 1,436, % 0.3% 25

26 LW BOGDANKA S.A. S EXPENSES BY NATURE IN 2013 CONTD. Total expenses by nature in 2013 stood at PLN 1,833,576 thousand and were up 5.7%, or PLN 98,116 thousand, year on year, with gross production up 7.0% and a 23.1% increase in preparatory work. The cost of salaries and employees benefits was up by PLN 41,917 thousand, or 8.5%, due to higher average headcount (up by 4% at any time at least four longwalls were being mined) and an increase in the average monthly remuneration at the Company. In addition, the portion of the Stock Option Plan cost attributable to 2013 (of PLN 2,853 thousand) was also included under this item. In FY 2013, the cost of external services was down from PLN 432,782 thousand to PLN 430,030 thousand (-0.6%, or -5% excluding reinvoiced transport costs). In the period under review, the cost of contracted drilling and mining services (drilling and reconstruction of workings) remained largely unchanged year on year, with the cost of other outsourced services (e.g. transport of stone) down year on year. Taxes and Entertainment charges; 1.8 % and advertising; 0.4 % Employee benefits; 29.1 % Services; 23.5 % Other expenses; 1.07 % Depreciation and amortization; 17.8 % Materials and energy used; 26.5 % Taxes and charges grew on the back of higher property tax and mining fees. There was a drop in the cost of entertainment and advertising and other costs (mainly property insurance). Amortization / depreciation expenses were up 9.80% (to PLN 325,500 thousand). In 2013, the Company s fixed assets grew by PLN 180,077 thousand, to PLN 3,098,350 thousand. The total cost of materials and energy used grew by 7.5% year on year, to PLN 485,399 thousand, with gross production up 7.0% and a 23.1% increase in preparatory work. The cost of energy dropped, mainly thanks to lower electricity prices. 26

27 PROFITABILITY RATIOS FOR Q AND Q AND FOR FY 2013 AND FY 2012 PROFITABILITY IN Q AND Q ,0% 40,0% 35,0% 30,0% 25,0% 20,0% 15,0% 10,0% 5,0% 0,0% 45,0% 40,0% 35,0% 30,0% 25,0% 20,0% 15,0% 10,0% 5,0% 0,0% 42.9% 27.1% 24.4% 23.4% 21.8% 10.9% 10.1% 8.0% EBIT margin EBITDA margin Gross margin Net margin Q Q PROFITABILITY IN FY 2012 AND FY % 37.6% 24.7% 21.2% 22.4% 22.1% 20.8% 21.8% 16.8% 17.4% EBIT margin Adjusted EBIT margin* EBITDA margin Gross margin Net margin FY 2012 FY 2013 *Adjusted EBIT EBIT adjusted by the balance of provisions and result on non-recurring events. 27

29 LW BOGDANKA S CAPEX IN 2013 AND BUDGET FOR 2014 Item [PLN 000] Budget for 2013 Actual capex in 2013 Budget for 2014 DEVELOPMENT CAPEX 257, , ,781 Extension of the Coal Dressing Plant, central air conditioning system, other projects 76,442 84,406 62,951 Other development projects, including: 181, , ,830 purchase and assembly of longwall systems 74,175 23, ,259 purchase of machinery, equipment and ready-to-use assets 106,865 91,409 75,571 OPERATING CAPEX 366, , ,767 New workings and modernisation of existing workings 299, , ,651 Modernisation and repair of machinery and equipment 17,975 38,297 13,430 Environmental protection 10,353 16,999 11,610 Other operating investments 39,130 42,881 36,076 TOTAL CAPEX 623,943* 566, ,548 *Adjusted following H in the H Consolidated Financial Report of LW BOGDANKA Group, published on August 29th

30 SUMMARY & CONCLUSION Despite challenging mining and geological conditions, 2013 was a very good year for the Company. Following consistently the Company s Strategy, 28.6 km (+23.1% year on year) of new roadway was developed by the Company over Due to temporary deterioration of the geotechnical conditions in one of the long walls, the Company s total production of commercial-grade coal was 8.35 million tonnes in The Company has been gradually implementing cost optimisation measures with a view to reaching the cost levels assumed in its Strategy. Given the substantial decline in market prices and large amounts of coal stockpiled at both mines and power plants in 2014, the Company will be under significant pricing pressure. The Company expects that its total production in 2014 will grow year on year by at least 1 million tonnes. 30

31 THANK YOU Lubelski Węgiel BOGDANKA S.A. Bogdanka, Puchaczów, Poland Tel Investor relations Tel Tel Fax

33 KEY EVENTS IN Q AND SUBSEQUENT TO THE BALANCE-SHEET DATE GENERAL MEETING Extraordinary General Meeting held on November 22nd 2013 New Supervisory Board member, Mr Michał Stopyra, appointed on November 22nd 2013 EVENTS OTHER EVENTS Acquisition by the Bank POLSKA KASA OPIEKI S.A. of Company s bonds under its Bond Issue Programme December 27th 2013 Execution of an agreement for purchase of the 4th plough system February 17th 2014 TRADE CONTRACTS Annex to a significant agreement with EDF Paliwa Sp. z o.o, executed on October 31st 2013 Annex to a significant agreement with Elektrownia Połaniec S.A. - Grupa GDF SUEZ ENERGIA POLSKA, executed on October 31st 2013 Annex to a significant agreement with Elektrownia Połaniec S.A. - Grupa GDF SUEZ ENERGIA POLSKA,executed on November 18th 2013 Annex to a significant agreement with ENERGA Elektrownie Ostrołęka S.A., executed on November 19th 2013 Annex to significant agreements with Enea Wytwarzanie S.A., executed on January 15th

34 ANALYSIS OF THE CONSOLIDATED INCOME STATEMENT OF LW BOGDANKA GROUP Item [PLN 000] Q Q Change (2013/2012) FY 2013 FY 2012 Change (2013/2012) Revenue 481, , % 1,899,830 1,835, % Cost of products, merchandise and materials sold, distribution cost, administrative expenses 356, , % 1,444,031 1,440, % Gross profit 125,169 61, % 455, , % Gross margin 26.0% 13.8% 88.4% 24.0% 21.5% 11.6% Other income 1,545-27, % 3,837 4, % Other expenses 2,137 1, % 3,062 1, % Net operating profit/loss 124,577 32, % 456, , % Other net gains/(losses) -7,333 16, % -31,771-8, % Operating profit (EBIT) 117,244 48, % 424, , % EBIT margin 24.3% 10.9% 122.9% 22.4% 21.2% 5.7% EBITDA 206, , % 754, , % EBITDA margin 42.9% 27.1% 58.3% 39.7% 37.6% 5.6% Finance income 1,828 1, % 7,267 11, % Finance costs 6,312 5, % 18,341 18, % Share in profit (loss) of associates Profit before tax 112,760 44, % 413, , % Pre-tax profit margin 23.4% 10.1% 131.7% 21.8% 20.8% 4.8% Income tax 7,765 9, % 84,001 73, % Net profit for the financial year 104,995 35, % 329, , % Net margin 21.8% 8.0% 172.5% 17.4% 16.8% 3.6% - attributable to owners of the Company 104,979 35, % 329, , % 34

35 STATEMENT OF FINANCIAL POSITION OF LW BOGDANKA GROUP Item [PLN 000] Dec Dec Non-current assets, including: 3,274,004 3,063,653 Cash and cash equivalents 77,912 68,031 Current assets, including: 570, ,503 Cash and cash equivalents 212, ,551 Total assets 3,844,130 3,485,156 Current liabilities 808, ,674 Non-current liabilities 579, ,108 Total liabilities 1,388,599 1,188,782 Equity 2,455,531 2,296,374 Current borrowings 421,000 20,000 Non-current borrowings - 421,000 35

36 CASH FLOWS OF LW BOGDANKA GROUP Item [PLN 000] FY 2013 FY 2012 Net cash flows from operating activities 726, ,729 Cash inflows from operating activities 779, ,729 Interest received and paid 764 (2,962) Income tax paid (53,935) (75,038) Net cash flows from investing activities (639,154) (604,737) Acquisition of property, plant and equipment (615,247) (568,401) Interest paid in connection with investing activities (15,247) (19,785) Acquisition of intangible assets (2,676) (14,892) Proceeds from disposal of property, plant and equipment Other net cash flows from investing activities (175) 11 Interest received 3,766 7,852 Proceeds from cash deposited in the bank account of the Mining Facilities Decommissioning Fund (9,881) (9,743) Net cash from financing activities 4,564 (39,261) Received borrowings and other debt instruments - 100,000 Repaid borrowings and other debt instruments (20,000) - Bond issue proceeds 200,000 - Dividends paid to the Company s shareholders (172,109) (136,050) Net increase/(decrease) in cash and cash equivalents 91,453 17,731 Cash and cash equivalents at beginning of the period 120, ,820 Cash and cash equivalents at end of the period 212, ,551 36

37 SALES STRUCTURE AT LW BOGDANKA GROUP IN Q Item [PLN 000] Q Share [%] Q Share [%] Coal sales 456, % 421, % Ceramics sales 1, % 1, % Other activities 21, % 17, % Sales of merchandise and materials 2, % 3, % Total revenue 481, % 443, % 37

38 DISCLAIMER This presentation (the Presentation ) has been prepared by BOGDANKA S.A. (the Company ). The information contained in this Presentation has been compiled and prepared with due care, based on facts and data taken from sources believed by the Company to be reliable, in particular based on the Company s own research and estimates prepared on the basis of publicly available information, or Company data not constituting inside information within the meaning of Art. 154 of the Act on Trading in Financial Instruments. The Company shall not be held liable for anything resulting from the use of information contained in this Presentation. No information contained in this Presentation shall be construed as a recommendation or as investment, legal or tax advice, nor is it an indication that any investment or strategy is suitable or addressed individually to any investor. The Company does not guarantee that the information contained herein is complete and does not accept any liability for the consequences of investment decisions made on the basis of this Presentation. Sole responsibility for such investment decisions and any resulting losses shall lie with the investor. Every investor making an investment decision in reliance on this Presentation is obliged to make its own assessment of the risks and benefits of the sale or acquisition of Company shares, based on all information made available by the Company in this Presentation as well as its current and periodic reports. Such information is based on assumptions relating to the Company s current and future strategies, and to the economic environment in which the Company will be operating in the future. Such information is based on assumptions relating to the Company s current and future strategies, and to the economic environment in which the Company will operate in the future. Accordingly, actual performance may significantly differ from the plans, objectives and expectations expressed herein. Further, the Company notes that some of the information may become outdated, and the Company does not undertake any obligation to update such information. This Presentation is not an offer within the meaning of civil law, nor is it a public offering within the meaning of the Public Offering Act, nor is it a proposal, advertisement or invitation to purchase Company shares, and has been prepared for information purposes only. Nothing in this Presentation shall be taken as a commitment to enter into any agreement or establish any legal relationship involving the Company. 38

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