Enea 2014 H1

Krzysztof Zamasz
President of the Board
Warsaw, 27 August 2014
Dalida Gepfert
Vice-President of the Board for Financial Affairs
We consistently implement
the goals included in the strategy
Q2, H1 2014
Paweł Orlof
Vice-President of the Board for Corporate Affairs
Grzegorz Kinelski
Vice-President of the Board for Commercial Affairs

2
Agenda
Energy market and key operating data
ENEA CG's results in Q2 and H2 2014
Key projects implemented in H1 2014
New power unit in Kozienice

Grzegorz Kinelski
Vice-President of the Board for Commercial Affairs
ENEA CG is monitoring the market
situation on a continuous basis

4
• Higher average price of baseload
by 9.5% yoy
• SPOT market was affected by: energy
generation from wind sources, situation on
the European carbon market, changes in
the methods of settlements for
the operating power reserve and higher
volume of losses in the generating capacity
• In H1 2014 prices of energy on the futures
market were characterised with
the increasing sideways trend supported by
the prices from the European carbon market
and price levels from the SPOT market
of electricity
• Explicit strengthening of quotations
in the second half of June
In H1 2014 we observed growths in prices on the energy market
130
140
150
160
170
180
190
200
210
220
230
I II III IV V VI VII VIII IX X XI XII
PLN/kWh
Average electricity prices on SPOT market on PPE
Baseload - 2012 Baseload - 2013 Baseload - 2014
140
146
152
158
164
170
176
182
188
194
200
0
20
40
60
80
100
120
140
160
180
200
04/10/2012 21/05/2013 05/09/2013 26/11/2013 18/02/2014 23/04/2014 30/06/2014
PLN/MWh
MW
Transaction prices and volumes - baseload for 2015
trade volumes weighted average price

5
• Low prices of coal on foreign
markets
• Prices of coal in Q2 2014 were
maintained on the level reached
as a result of drops in Q1 2014,
comparable to prices from
the period of June to August 2013
• The market of allowances for
emissions of CO2 was strongly
dependant on political decisions
in EU
• Great surplus of EUA in EU ETS
In H1 2014 prices of coal maintained on a low level
0
2
4
6
8
10
I II III IV V VI VII VIII IX X XI XII I II III IV V VI VII VIII IX X XI XII I II III IV V VI
2012 2013 2014
EUR/t
EUA and CER quotations - closing prices on SPOT market
EUA 2 Phase CER EUA 3 Phase
70
80
90
100
110
120
I II III IV V VI VII VIII IX X XI XII I II III IV V VI VII VIII IX X XI XII I II III IV V VI
2012 2013 2014
USD/t
Monthly indices of coal prices (globalCOAL)
Richards Bay (RPA) Newcastle (Australia) Amsterdam-Rotterdam-Antwerpia

6
[GWh] Q2 2013 Q2 2014 Change % H1 2013 H1 2014 Change %
Total generation of
energy, including:
2 938,6 2 972.6 1.2% √ 5 977.7 6 114.2 2.3% √
Conventional
generation
2 734.6 2 718.5 -0.6% 5 537.1 5 584.5 0.9% √
Generation from RES 204.0 254.1 24.6% √ 440.6 529.7 20.2% √
Higher energy production in ENEA CG
ENEA CG in H1 2014 increased energy production
both form conventional sources and RES

7
Agenda

Dalida Gepfert
Vice-President of the Board for Financial Affairs
ENEA CG generated
good results in H1 2014

9
[PLN mln] Q2 2013 Q2 2014 Change % H1 2013 H1 2014 Change %
Net sales revenues 2 215.3 2 466.5 11.3% 4 595.6 4 840.2 5.3% √
EBITDA 387.7 642.0 65.6% 937.6 1 103,5 17.7% √
Net profit 158.0 415.6 163.1% 454.8 624.9 37.4% √
Net debt/EBITDA -0.9 -0.2 0.7 -0.9 -0.2 0.7
Financial results of ENEA CG above market expectations

10
EBITDA in Q2 2014 demonstrates better results yoy
in the segment of generation and distribution
2.4% 43.5% 32.2% 8.5% 26.0%17.5%[PLN mln]
196.4
492.2
191.3
-2.9
67.4
200.6
-3.7
13.9
149.8
0,0
100,0
200,0
300,0
400,0
500,0
600,0
700,0
EBITDA Q2 2013 Trade Distribution Generation Other activity Exclusions* EBITDA Q2 2014
387.7
642.0
-41.6%27.4%-50.0% 173.0%
* Includes undistributed expenses
of the whole Group and exclusions
EBIT
Amortisation/
depreciation
Growth in segment
Drop in segment
Change in segment yoy [%]
EBITDA margin [%]

11
[PLN mln] Q2 2013 Q2 2014 Change %
Generation 116.0 316.6 173.0%
Trade 47.8 23.9 -50.0%
EBITDA in Q2 2014 demonstrates better results yoy
in the segment of generation and distribution
Segment of trade
Drop of EBITDA by PLN 23.9 mln (-50.0%)
• lower average purchase price of energy
by 12.4% √
• higher volumes of sales by 630 GWh √
• lower average selling price by 17.3%
Segment of distribution
Higher EBITDA by PLN 67.4 mln (27.4%) √
• lower average price and lower volumes of
electricity purchases for covering book-tax
difference √
• lower provisions relating to grid assets √
Segment of generation
• higher revenues from compensation
for recovery of stranded costs by PLN 258 mln √
• lower margin on generation of electricity
by PLN 18 mln
• loss of EBITDA due to failure of unit No. 9
by PLN 18 mln
Distribution 245.7 313.1 27.4%

12
In H1 2014 ENEA CG improved EBITDA result by 18%
551.7
758.9
385.9
-7.1
72.8
160.9
-4.6
11.9
344.6
0,0
200,0
400,0
600,0
800,0
1000,0
1200,0
EBITDA H1 2013 Trade Distribution Generation Other activity Exclusions* EBITDA H1 2014
-47.7% 13.7% 57.6%
937.6
1 103.5
[PLN mln]
-26.5%
20.4% 40.3% 24.5% 11.1% 22.8%4.1%
* Includes undistributed expenses
of the whole Group and exclusions
EBIT
Amortisation/
depreciation
Growth in segment
Drop in segment
Change in segment yoy [%]
EBITDA margin [%]

13
[PLN mln] H1 2013 H1 2014 Change %
Generation 279.4 440.3 57.6%
Distribution 532.9 605.7 13.7%
In H1 2014 ENEA CG improved EBITDA result by 18%
Segment of trade
Drop of EBITDA by PLN 75.1 mln (-47.7%)
• lower average purchase price of energy
by 11.4% √
• higher sale volumes by 1,174 GWh √
• entry into force of the cogeneration obligation
- inflow in the amount of PLN 16 mln
Segment of distribution
Increase of EBITDA by PLN 72.8 mln (13.7%) √
• lower average price and lower volumes
of electricity purchases for covering
book-tax difference √
• lower provisions relating to grid assets √
Segment of generation
• higher revenues from compensation for
recovery of stranded costs by PLN 258 mln √
• lower margin on generation of electricity
by PLN 83 mln
• loss of EBITDA due to failure of unit No. 9
by PLN 23 mln
Trade 157.4 82.3 -47.7%

14
Cash balance of the Group as at the end of June 2014
amounted to PLN 1.3 bln
818
1 573
625
345
-424
-258
-1 043
525
-69
1 274
500
1 000
1 500
2 000
2 500
3 000
Cash
1.01.2014
Net profit Amortization/
depreciation
Working
capital*
Receviables
from Long-
term
agreement
CAPEX External
funding
Other Cash
30.06.2014
[PLN mln]
* excluding the receivables from compensation for covering stranded costs (Long-term Agreements)

15
Cost regime and optimum use of the resources allowed ENEA CG
to generate good financial results
In Q2 revenues were recognised from Long-term Agreements which
added to the result of the segment of generation
ENEA CG implements the projects anticipated
in the corporate strategy consistently and in a timely fashion
Financial results of ENEA CG are above market expectations
Intense development of ENEA CG - CAPEX in H1 2014 higher
by PLN 186 mln with a favourable value of net debt/EBITDA ratio -0.2
PLN 75 mln cost savings after H1 2014

16
Agenda

Krzysztof Zamasz
President of the Board
We efficiently implement the projects
specified in the strategy

18
Generation: The main task of ENEA Wytwarzanie is building
a competitive generating portfolio
1. Purchase of a block of shares of MPEC Sp. z o.o.
in Białystok
2. Exclusiveness in negotiations for the purchase
of a block of shares of ECO S.A. till 15
September 2014
3. Construction of a 1,075 MW unit
4. RES development: participation in acquisition
processes and own projects
5. Replacement modernisation of generating
equipment
6. Realisation of the environment investments
and other modernisation investments
7. Implementation of projects relating to a better
efficiency and optimum use of the
organisational potential in ENEA CG
Generation
2014
2015
2016-
2017
2018
2019-
2020H1 H2
√
√
√
√
√
√
√
Segment of Heat:
Purchase of a block of
shares of
MPEC Białystok
Segment of System
Power Plants:
35% progress of works
on the construction of
1,075 MW unit

19
Distribution: ENEA Operator prepares for the introduction
of the quality tariff in 2016
1. Better condition of the power grid - investments
in its development and modernisation
(better reliability ratios)
2. Better Customer service, especially within
connecting to the grid (shorter time of issuing
connection conditions and shorter time of
realisation of connection agreements)
3. Cooperation with the President of ERO and other
operators of distribution systems within the
preparation of companies to the introduction of
the quality tariff
4. Intensification of activities within smart grid and
smart metering (preparation of the AMI
application test in 3 localisations and preparation
to the commencement of the balancing meters
installation)
5. Operating costs optimisation
6. Closer cooperation with ENEA CG companies:
ENEA Centrum and companies comprising the
distribution area: ENERGOBUD and
ENERGOMIAR - transfer to ENEA Centrum of
some functions from within IT, Finance and
Accounting and part of the Customer service
Distribution
2014
2015 2016
2017-
2018
2019-
2020H1 H2
PLN 3 bln - investments in
the extension and
modernisation of the grid
during 2011-2013
PLN 4.2 bln - investments
during 2014-2019
Shorter time for issuing
connection conditions from
30 to 15 days
√
√
√
√
√
√

20
Trade: We focus on building long-term relations with Customers
1. 63,689 - the number of new Customers who
trusted ENEA in H1 2014
2. Higher sales of electricity in the segment
of strategic Customers by 1 TWh
3. Development of sales in the whole of Poland -
introduction of a Poland wide sales structure
4. Launching sales realised by Contact Centre
5. Introduction of a dual-fuel offer
6. "Energy with an account" - development of
a common offer with Getin Bank for individual
Clients
7. Launching new products: Fixed price,
Strike the raise, Always cheaper +
Trade
2014
H1
√
√
√
√
√
√
√
Higher sales of
electricity by 1.82 TWh

21
SSC: 60% functions were centralised in SSC in H1 2014
SSC
2014
2015
H1 H2
√
√
√
√
√
The works were
completed relating to
the centralisation
of 3 functions:
Finance and Accounting
Customer Service
IT
1. Completion of the construction of the Mass
Communication Centre - centralisation
of the area of printing and delivery
of mass communications
2. Extension of the scope of issues which
customers may realise remotely through
the Contact Centre and increasing the number
of matters realised on first contact (FCR ratio)
3. Finalisation of activities within the development
of SAP business concept in ENEA CG
4. Completion of the concept stage for a new billing
system - conclusion of the implementation
agreement
5. Start-up of design works within the centralisation
of the subsequent 3 functions:
Human Resources, Logistics and Legal Area

22
After H1 cost reduction in ENEA CG amounted to PLN 75 mln
1. Generation
2. Distribution
3. Sales
4. SSC
5. Other companies
TOTAL
Cost savings [PLN mln] H1 2014
Prognosis of initiative
realisation in 2014
56 137
13 39
3 5
1 5
2 3
75 189
Undertaken activities
will enable to reduce
costs by ca. PLN 500 mln
by 2016

23
Agenda

Paweł Orlof
Vice-President of the Board for Corporate Affairs
Construction of unit No. 11
is on the schedule

25
In H1 2014 ENEA CG implemented actions relating
to the construction of 1,075 MW unit
65%
35%
Performance of the lower foundation slab
with poles of the load bearing structure
of the turbine set
Performance of a reinforced concrete structure
of the cooling tower jacket to the level of 40 m
Concreting the upper foundation slab
of the boiler house
Performance of a steel load bearing structure
of the boiler to the level of 44 m
Completion of reinforced concrete works
of communication pylons
Completion of concreting the cooling water
piping along the engine room building2012 – H1 2014 H2 2014 2015
0%
20%
40%
60%
80%
Scope of works to be performed in 2014

We consistently implement
the goals included in the strategy
Q2, H1 2014
gielda@enea.pl

28
116.0
316.6206.7
-5.2 -0.8
0
50
100
150
200
250
300
350
EBITDA Q2 2013 Segment of System Power
Plants
Segment of Heat Segment of RES EBITDA Q2 2014
Growth
Drop
[PLN mln]
Generation – EBITDA Q4 2014 bridge
Attachment 1 – Higher EBITDA in the segment of generation results from the recognition
in Q2 2014 of revenues from compensation for recovery of stranded costs

29
47.8
23.99.4
-3.6 -2.7
0
10
20
30
40
50
60
EBITDA
Q2 2013
First contribution margin Cost of sales Other factors EBITDA
Q2 2014
Trade – EBITDA Q4 2014 bridge
Attachment 2 – Lower first contribution margin impaired the results
of the segment of trade in Q2 2014
Growth
Drop
[PLN mln]

30
245.7
313.1
39.9
40.5
-1.4
-2.7
0
50
100
150
200
250
300
350
EBITDA
Q2 2013
Regulation Gird assets Organisation Other factors EBITDA
Q2 2014
Attachment 3 - In Q2 2014 in the segment of distribution lower costs were reported of
establishment of provisions relating to the grid assets and employee benefit provisions
Distribution – EBITDA Q2 2014 bridge
Growth
Drop
[PLN mln]

31
279.4
440.3
149.8
9.6 1.5
0
100
200
300
400
500
EBITDA
H1 2013
Segment of System Power
Plants
Segment of Heat Segment of RES EBITDA
H1 2014
Attachment 4 - Recognition in H1 2014 revenues from compensation for recovery of
stranded costs impacted the growth of EBITDA in the segment of generation
Generation – EBITDA H1 2014 bridge
Growth
Drop
[PLN mln]

32
15.4
82.30.6
-70.5 -5.3
0
20
40
60
80
100
120
140
160
180
EBITDA
H1 2013
First contribution margin Cost of sales Other factors EBITDA
H1 2014
Attachment 5 – Lower first contribution margin charged the results
of the segment of trade in H1 2014
Trade – EBITDA H1 2014 bridge
Growth
Drop
[PLN mln]

33
532.9
605.7
5.0
40.9
32.1
-5.1
0
100
200
300
400
500
600
700
EBITDA
H1 2013
Regulation Gird assets Organisation Other factors EBITDA
H1 2014
Attachment 6 - In H1 2014 in the segment of distribution lower costs of energy purchases
were reported for covering the book-tax difference and costs of establishment of reserves
Distribution – EBITDA H1 2014 bridge
Growth
Drop
[PLN mln]

Enea 2014 H1

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