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PBG Gr oups financ ial pe r for manc e in Q4 2011 Wysogotowo, Mar c h 1st 2012 1 Ke y e ve nts at the PBG Gr oup in 2011 and 2012 YT D MONT H E VE NT Exe c ution of a c ontra c t fo r " Construc tion of roa d link be twe e n

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SLIDE 1

1

Wysogotowo, Mar c h 1st 2012

PBG Gr

  • up’s financ ial pe r

for manc e in Q4 2011

slide-2
SLIDE 2

2

MONT H E VE NT

Ke y e ve nts at the PBG Gr

  • up in 2011 and 2012 YT

D

May 2011 Mar c h 2011

  • Exe c ution of a c ontra c t fo r "Construc tion of roa d link be twe e n the Gdańsk Airport a nd the Port of Gdańsk – T

ra sa Słowackiego – T a sk 2, ul. Po to ko wa –Ale ja Rze c zyp o spo lite j Se c tio n" (to ta l le ng th o f 3.32 kilo me tre s). T he a g re e d c o ntra c t pric e wa s PL

N 129.3m (VAT e xc lusive ).

  • Exe c ution of a c ontra c t fo r "Construc tion of a sports a nd e nte rta inme nt a re na with a c c o mpa nying infra struc ture in Toruń".

T he a g re e d c o ntra c t pric e wa s PL

N 99m (VAT e xc lusive ).

  • E

xe c utio n o f a L e tte r o f I nte nt b e twe e n PBG a nd Obra sc on Hua rte L

a in (OHL ) pro viding fo r c lose c oope ra tion on fore ig n

  • il a nd g a s ma rke ts, inc luding in the a re a o f c o nstruc tio n o f o il a nd g a s p ro c e ssing units, pipe line s a nd o il a nd fue l ta nks,

first in Me xic o , Bra zil a nd o the r So uth Ame ric a n c o untrie s.

  • Supe rvisory Boa rd's positive opinion on the Ma na g e me nt Boa rd's proposa l to a lloc a te PL

N 20.013m to pa yme nt of divide nd of PL N 1.40 pe r sha re .

  • Me rg e r of CP E

ne rg ia a nd KRI by wa y of a non- c a sh c ontribution of 100% of KRI sha re s to CP E ne rg ia . Fo llo wing the

tra nsa c tio n, PBG c a me to ho ld 9,088,491 Se rie s J sha re s in CP E ne rg ia , re p e rse nting 12.98% o f the sha re c a pita l a nd vo te s a t the c o mpa ny's g e ne ra l me e ting . I n July 2011, fo llo wing a te nde r o ffe r, PBG he ld 9,788,627 sha re s in CP E ne rg ia , re pre se nting 13.98% o f the sha re c a pita l a nd vo te s a t the c o mpa ny's g e ne ra l me e ting .

  • Suspe nsion of ne g otia tions with OHL

c o nc e rning the sa le o f a 51% inte re st in Hydro b udo wa Po lska a nd a 50.1% inte re st in Ap rivia . T he de c isio n wa s ma de b y mutua l a g re e me nt o f the pa rtie s ma inly in vie w o f a sig nific a nt de c line o f the pric e o f Hydro b udo wa Po lska sha re s a nd the c o mp a ny's va lua tio n o n the Wa rsa w Sto c k E xc ha ng e re la tive to the o rig ina lly a g re e d se lling pric e . T he ne g o tia tio ns will re sume whe n the pric e o f Hydro b udo wa Po lska sha re s re c o ve rs to the le ve l se e n a t the b e g inning o f the ne g o tia tio ns.

  • Se ttle me nt a g re e me nt be twe e n Na rodowe Ce ntrum Sportu a nd AL

PINE BAU DE UT SCHL AND AG, AL PINE BAU GmbH, AL PINE Construc tion Polska , HYDROBUDOWA POL SKA a nd PBG, a c o nso rtium c o nstruc ting the multi-purpo se Na tio na l Sta dium in

Wa rsa w. Unde r the a g re e me nt, HYDROBUDOWA POL

SKA S.A. be c a me the c onsortium’s ne w le a de r. T

he pro je c t e xe c utio n de a dline wa s e xte nde d until No ve mb e r 29th 2011. T he pro je c t wa s c o mple te d b y the a g re e d da te .

  • Exe c ution of a c ontra c t fo r "Construc tion of the Piekło c ompre ssor sta tion, forc ing pipe line a nd wa te r supply

infra struc ture ", with a va lue o f PL N 52.1m (VAT e xc lusive ).

  • Exe c ution of a sub- c ontra c tor a g re e me nt b y Hydro b udo wa Po lska fo r "E

ng ine e ring de sig n, c onstruc tion a nd c ommissioning of the L NG re g a sific a tion te rmina l in Świnoujście". T

he a g re e d c o ntra c t pric e wa s PL

N 2.3bn (VAT e xc lusive ).

  • Exe c ution of a c ontra c t fo r "Construc tion work c onsisting in the a lte ra tion of ul. Roose ve lta be twe e n the inte rse c tion with ul.

Dąbrowskiego a nd the Most T

e a tra lny ove rpa ss, a nd the inte rse c tion with ul. Głogowska a nd the Most Dworc owy

  • ve rpa ss, a long with the a lte ra tion of the Rondo Ka ponie ra inte rc ha ng e in Poznań". T

he a g re e d c o ntra c t pric e wa s PL

N 170.2m (VAT

  • e xc lusive ).
  • E

xe c ution of a c ontra c t for c onstruc tion of a biog a s- fire d powe r pla nt in Sza rle j, with a va lue o f ne a rly PL N 50m.

June 2011 August 2011 Apr il 2011

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SLIDE 3

3

MONT H E VE NT

Ke y e ve nts at the PBG Gr

  • up in 2011 and 2012 YT

D

Oc tobe r 2011

  • Sa le of e quity inte re st in Stra te g Ca pita l (re duc tio n o f the inte re st in sha re c a pita l a nd to ta l vo te fro m 80% to 48.80%).
  • Sa le of e quity inte re st in Ga sOil E

ng ine e ring of Popra d, Slova kia (re d uc tio n o f the inte re st in sha re c a pita l a nd to ta l vo te

fro m 62.45% to 49.90%).

  • Hydrobudowa Polska e xe c ute d a c o ntra c t fo r "Construc tion of roa d link be twe e n the Gdańsk Airport a nd the Port of

Gdańsk – T ra sa Słowackiego, T a sk 4, Węzeł Ma ryna rki Po lskie j – Węzeł ku Ujściu". T he a g re e d c o ntra c t pric e due to the c o nso rtium wa s PL

N 720m (VAT e xc lusive ).

  • L
  • ng - te rm ra ting a ssig ne d to PBG by Sta nda rd & Poor's Ra ting Se rvic e s. Sta nda rd & Po o r's Ra ting s Se rvic e s a ssig ne d PBG

S.A. a lo ng -te rm ra ting o f BB-, with sta b le o utlo o k.

  • ING Otwa rty F

undusz E me ryta lny inc re a se d its inte re st in PBG. As a t the e nd o f F

e b rua ry 2012, I NG Otwa rty F und usz E me ryta lny's sha re in to ta l vo te a t PBG's g e ne ra l me e ting wa s 10.24% .

  • T
  • ma sz Woroc h re sig ne d from the position of PBG Ma na g e me nt Boa rd me mbe r Mr Wo ro c h sub mitte d his re sig na tio n to

the Cha irma n o f the Supe rviso ry Bo a rd c iting pe rso na l re a so ns.

  • Clie nts of Pione e r Pe ka o Inve stme nt Ma na g e me nt re duc e d the ir inte re st in PBG. As a t the e nd o f F

e b rua ry 2012, Pio ne e r Pe ka o I nve stme nt Ma na g e me nt c lie nts' sha re in to ta l vo te a t PBG's g e ne ra l me e ting wa s 14.99% .

  • CF

R a nd PDR ra ting s a ssig ne d to PBG by Moody’s. Mo o dy’ s I

nve sto rs Se rvic e a ssig ne d PBG S.A. the CF R (Co rpo rate F amily Rating ) a nd PDR (Pro b ab ility o f De fault Rating ) o f B2, with sta b le o utlo o k.

  • Polskie L

NG e xc lude d c onstruc tion of a de nitriding pla nt from the L NG te rmina l proje c t in Świnoujście. T

he c o ntra c t pric e pa ya b le to the c o nso rtium wa s re d uc e d b y PL N 120,167,000 (VAT

  • e xc lusive ) up o n de live ry o f a no tic e o f e xc lusio n, a s

re q uire d und e r the c o ntra c t. T he PBG Ma na g e me nt Bo a rd re po rte d o n Po lskie L NG's rig ht to ma ke suc h e xc lusio ns fro m the c o ntra c t sc o pe in Curre nt Re po rt No . 35/ 2010. I n Curre nt Re po rt No . 12/ 2011 o f F e b rua ry 10th 2011, the PBG Ma na g e me nt Bo a rd re p o rte d o f e xc lusio n b y Po lskie L NG o f the ORV syste m fro m the de live rie s unde r the c o ntra c t. F

  • llo wing the e xc lusio ns, the to ta l c o ntra c t pric e wa s re duc e d to PL

N 2,088,976,000 (VAT e xc lusive ).

  • Me rg e r of Hydrobudowa Polska with its subsidia ry, Hydrobudowa 9.
  • Ja nua ry 2011:

Sa le of 500,000 sha re s by PBG's ma in sha re holde r, Mr Je rzy Wiśniewski re sulting in the re duc tio n o f his inte re st in tota l vote a t PBG’s g e ne ra l me e ting to 41.42% .

  • De c e mbe r 2011/ Ja nua ry 2012:

Mr Je rzy Wiśniewski, PBG ’s CE O, a c quire d 135,670 sha re s of PBG S.A. F

  • llo wing the tra nsa c tio ns, Mr. Wiśniewski inc re a se d its

inte re st in the sha re c a pita l to 27.15% , a nd in the tota l vote a t PBG’s g e ne ra l me e ting – to 42.33% .

Nove mbe r 2011 De c e mbe r 2011 Januar y 2012 Je r zy

Wiśniewski

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SLIDE 4

4

MONT H E VE NT

Ke y e ve nts at the PBG Gr

  • up in 2011 and 2012 YT

D

Energomontaż- Południe

  • April 2011:

PBG c a lle d te nde r o ffe r fo r Energomontaż-Południe sha re s to a c hie ve 66% of the tota l vote a t the Ge ne ra l Sha re holde rs

Me e ting .

  • June 2011:

Summa ry of te nde r offe r for Energomontaż-Południe sha re s F

  • llo wing the te nde r o ffe r, PBG, together with ENERGOMONTAŻ

POŁUDNIE, held 46,699,770 shares in the latter company, conferring the right to 46,699,770 shares. The interest represented 65.80% o f b o th sha re c a pita l a nd to ta l vo te a t Enegromontaż-Południe's g e ne ra l me e ting . F

  • llo wing Energomontaż

Południe's dispo sa l o f its o wn sha re s in July 2011, PBG ha s he ld 46,021,520 sha re s in the c o mpa ny, re pre se nting 64.84% o f b o th sha re c a pita l a nd to ta l vo te a t Enegromontaż-Południe's g e ne ra l me e ting .

  • De c e mbe r 2011:

Execution of agreement for sale of shares in ENERGOMONTAŻ-POŁUDNIE S.A. and subsequent sale of the shares On De c e mb e r 20th 2011, PBG a nd RAFAKO e xe c ute d a n a g re e me nt de fining the te rms o f sa le o f sha re s in ENERGOMONTAŻ-POŁUDNIE. Under the agreement, PBG agreed to sell 46,021,520 o rdina ry b e a re r sha re s in Energomontaż- Południe S.A., whic h re pre se nt 64.84% of the c ompa ny's sha re c a pita l a nd 64.84% of the tota l vote a t E

PD’s g e ne ra l me e ting . PBG a lso a g re e d to se ll the sha re s to RAFAKO, a nd RAFAKO unde rto o k to a c q uire the sha re s fo r PL N 160,154,889.60, tha t is PL N 3.48 pe r sha re . RAFAKO will b e o b lig e d to ma ke a n a dditio na l pa yme nt to PBG o f PL

N 30,000,000

  • ve r a nd a b o ve the pric e if the c o mpa ny: (i) e a rns ne t pro fit o f no le ss tha n PL

N 20,000,000 fo r the fina nc ia l ye a r 2012, a nd (ii) e a rns ne t pro fit o f no le ss tha n PL N 35,000,000 fo r the fina nc ia l ye a r 2013, to b e de te rmine d b a se d o n E PD’ s fina nc ia l sta te me nts, a ppro ve d b y the c o mpa ny’ s g e ne ra l me e ting , fo r the fina nc ia l ye a rs 2012 a nd 2013, re spe c tive ly.

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SLIDE 5

5

MONT H E VE NT

Ke y e ve nts at the PBG Gr

  • up in 2011 and 2012 YT

D

  • June 2011:

E xe c ution of a pre limina ry a g re e me nt to se ll RAF AKO sha re s b e twe e n E le ktrim a nd PBG, pro viding fo r the sa le o f 50% + 1 sha re (50% + 1 vote ) in Ra fa ko.

  • Aug ust 2011:

By buying fre e floa t sha re s, PBG e xc e e de d the thre shold of 5% o f the to ta l vo te a t RAFAK

O’ s g e ne ra l me e ting . 3,761,669 Ra fa ko sha re s, c o nfe rring the rig ht to 5.41% o f the to ta l vo te a t the g e ne ra l me e ting a nd re pre se nting 5.41% o f its sha re c a pita l, we re purc ha se d b y PBG fo r PL N 45,460,926.00, tha t is a t the a ve ra g e pric e o f PL

N 12.09 pe r sha re .

  • Oc tobe r 2011:

T he Po lish Offic e o f Co mpe titio n a nd Co nsume r Pro te c tio n (UOK iK ) c le a re d a busine ss c ombina tion invo lving a c quisition of

RAF AKO S.A. by PBG S.A.

  • Nove mbe r 2011:

E xe c ution of the fina l a g re e me nt to se ll Ra fa ko sha re s (purc ha se o f a 100% inte re st in MUL

T AROS (indire c t a c q uisitio n o f sha re s in Ra fa ko S.A.).

  • De c e mbe r 2011:

Pa yme nt of the se c ond insta lme nt of the pric e for a c quisition of 100% of sha re s in MUL T AROS T ra ding Compa ny L imite d o f

Nic o sia , of PL

N 200m.

  • Ja nua ry 2012:

Pa yme nt of the third a nd fina l insta lme nt of the pric e for a c quisition of 100% of sha re s in MUL T AROS T ra ding Compa ny L imite d. On Ja nua ry 5th 2012, PBG pa id to ARGUME

NOL , a c o mpa ny o rg a nise d unde r the la ws o f Cyprus, ha ving its re g iste re d o ffic e in Nic o sia , the fina l (third) insta lme nt o f the pric e fo r 100% o f sha re s in MUL T AROS T ra ding Co mpa ny L imite d, o f PL N 160m.

Closing of the te nde r offe r for RAF AKO sha re s: Summa ry of the te nde r offe r for RAF AKO sha re s

As pa rt o f the te nde r o ffe r fo r RAFAKO sha re s c a lle d o n No ve mb e r 18th 2011, a nd fo llo wing the se ttle me nt o f the tra nsa c tio ns o n Ja nua ry 20th 2012, PBG a c q uire d a ll the sha re s whic h we re te nde re d fo r sa le . F

  • llo wing the se ttle me nt o f the te nde r o ffe r, PBG ho lds:

a . indire c tly, throug h MUL

T AROS – 34,800,001 Ra fa ko sha re s, re pre se nting 50.000001% of its sha re c a pita l a nd c a rrying the

rig hts to 34,800,001 vo te s (o r 50.000001% o f the to ta l vo te ) a t Ra fa ko ’ s g e ne ra l me e ting ; b . dire c tly – 11,135,999 Ra fa ko sha re s, re pre se nting 16.00% of its sha re c a pita l a nd c a rrying the rig hts to 11,135,999 vo te s (o r 16% o f the to ta l vo te ) a t Ra fa ko ’ s g e ne ra l me e ting ; c . jointly with MUL

T AROS – 45,936,000 Ra fa ko sha re s, re pre se nting 66% of its sha re c a pita l a nd c a rrying the rig hts to

45,936,000 vo te s (o r 66% o f the to ta l vo te ) a t Ra fa k’ s g e ne ra l me e ting .

RAF AKO

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SLIDE 6

6

Ke y financ ial r atios for 2011

Re ve nue Gross profit E BIT DA

  • A 36% yo y re ve nue g ro wth, d rive n ma inly b y the hig hwa y a nd spo rts sta dium c o nstruc tio n pro je c ts, a s

we ll a s c o nso lida tio n o f Energomontaż Południe (a s o f July 1st 2011) a nd Ra fa ko (a s o f No ve mb e r 2011)

  • Gro ss ma rg in slig htly do wn, due to a la rg e sha re o f ro a d c o nstruc tio n pro je c ts in to ta l re ve nue (the ro a d

c o nstruc tio n se g me nt c o ntrib ute d PL N 1.13b n to the to p line )

  • T

he a c q uisitio ns o f Energomontaż Południe a nd Ra fa ko ma rke d the b e g inning o f a n impo rta nt shift in the Gro up’ s b usine ss a nd its re po sitio ning to wa rds po we r e ng ine e ring .

  • Ac c o unting po lic y c ha ng e s c o nc e rning inc lusio n o f c e rta in inc o me a nd c o st ite ms in o pe ra ting a nd

fina nc ing a c tivitie s.

PL Nm PL Nm PL Nm

12.5% 11.1% 12.2% 10.6%

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SLIDE 7

7

PBG Gr

  • up’s financ ial position – Q1- Q4 2011 inc ome

state me nt

F ina nc ia l pe rforma nc e

PL N ’ 000

Q1-Q4 2011 Q1-Q4 2010 y-o-y c hange

Re ve nue 3,733 829 2,740,311 +36 Co st 3,317,416 2,398,682 +38

Gr

  • ss pr
  • fit/ (loss)

416,413 341,629 +22

Distrib utio n c o sts 9,672 73

  • Administra tive e xpe nse s

129,157 109,096 +18

Pr

  • fit/ (loss)

277,584 232,460 +19

Othe r inc o me 113,931 126,506

  • 10

Othe r e xpe nse s 54,776 72,441

  • 24

Ope r ating pr

  • fit (loss)

336,199 286,525 +17

F ina nc e c o sts 60,148 48,180 +25 Sha re o f pro fit / (lo ss) o f a sso c ia te s a c c o unte d fo r using the e q uity me tho d (4,744) (4,061)

  • Pr
  • fit/ (loss) be for

e tax 271,307 234,284 +16

Inc o me ta x e xpe nse 49,113 49,756

  • 1

Ne t pr

  • fit/ (loss) attr

ibutable to: 222,194 184,528 +20

  • owne r

s of the Par e nt 206,471 190,284 +9

  • no n-c o ntro lling inte re sts

15,723 (5,756)

  • Ma rg ins (% )

PL N ’ 000

Q1-Q4 2011 Q1-Q4 2010 y-o-y c hange (pp)

Gro ss ma rg in 11.2 12.5

  • 1.3

Ope ra ting ma rg in 9.0 10.5

  • 1.5

Ne t ma rg in 5.5 6.9

  • 1.4

Othe r inc ome

PL N ’ 000

Q1-Q4 2011 Q1-Q4 2010

Inte re st o n lo a ns 24,723 33,781 F

  • re ig n e xc ha ng e

g a ins 12,004

  • Re ve rsa ls o f

a llo wa nc e fo r c re dit lo sse s o n re c e iva b le s 6,467 32,468

Othe r e xpe nse s

PL N ’ 000

Q1-Q4 2011 Q1-Q4 2010

Allo wa nc e fo r c re dit lo sse s o n re c e iva b le s 18,524 17,968 Co mpe nsa tio n a nd pe na ltie s pa id 4,969 19,292 Inte re st o n lia b ilitie s 3,898 2,057

F inanc e inc ome

PL N ’ 000

Q1-Q4 2011 Q1-Q4 2010

F

  • re ig n e xc ha ng e

g a ins 16,050 11,399 Inte re st o n fina nc ia l instrume nts 8,843 6,130 De po sits 7,311 4,385

F inanc e c osts

PL N ’ 000

Q1-Q4 2011 Q1-Q4 2010

Inte re st o n b o nds 41,047 34,413 Inte re st o n b a nk b o rro wing s 10,995 23,179 Inte re st o n b a nk

  • ve rdra fts

27,552 10,040

Comme nta ry

  • Re ve nue g ro wth wa s drive n b y the

e xe c utio n o f hig hwa y a nd sta dium c o nstruc tio n c o ntra c ts a nd e xpa nsio n o f the Gro up.

  • Co nso lida tio n o f Ra fa ko 's re sults a s
  • f No ve mb e r 1st 2011 – re ve nue :

PL N 218m, o pe ra ting pro fit: PL N 8m, ne t pro fit: PL N 6.7m.

  • Consolidation of Energomontaż

Południe's results - re ve nue : PL N 192m, o pe ra ting pro fit: PL N 10m, ne t pro fit: PL N 11.6m.

  • Gro ss ma rg in fe ll o n the b a c k o f a

hig he r sha re o f lo w-ma rg in se g me nts (hig hwa ys, sta diums) in the re ve nue struc ture .

  • F

ina nc e c o sts inc re a se d a s a re sult

  • f hig he r de b t inc urre d to fina nc e

wo rking c a pita l re q uire me nts (mo stly ro a d c o nstruc tio n c o ntra c ts).

  • Cha ng e o f the po lic y g o ve rning the

c la ssific a tio n o f tra nsa c tio ns to

  • pe ra ting o r fina nc ing a c tivitie s

(fina nc ing a c tivitie s sho uld inc lude

  • nly tho se tra nsa c tio ns, whic h a re

re la te d to ra ising fina nc ing , while the re sults o f inve sting a c tivitie s invo lving inve stme nt a nd a llo c a tio n

  • f funds to the b e ne fit o f the

Gro up’ s e ntitie s sho uld b e re c o g nise d a s o pe ra ting a c tivitie s).

slide-8
SLIDE 8

8

PBG Gr

  • up’s financ ial position – Q4 2011 inc ome

state me nt

F ina nc ia l pe rforma nc e

PL N ’ 000

Q4 2011 Q4 2010 y-o-y c hange

Re ve nue 1,353,331 855,257 +58 Co st 1,193,062 744,534 +60

Gr

  • ss pr
  • fit/ (loss)

160,269 110,723 +45

Distrib utio n c o sts 6,006 7

  • Administra tive e xpe nse s

46,387 30,485 +52

Pr

  • fit/ (loss)

107,876 80,231 +34

Othe r inc o me 1,870 61,622

  • 97

Othe r e xpe nse s 39,617 31,098 +27

Ope r ating pr

  • fit / (loss)

70,129 110,755

  • 37

F ina nc e c o sts 7,412 14,170

  • 48

Sha re o f pro fit (lo ss) o f a sso c ia te s a c c o unte d fo r using the e q uity me tho d

  • (1,682)
  • Pr
  • fit/ (loss) be for

e tax 62,717 94,903

  • 34

Inc o me ta x 20,401 24,452

  • 17

Ne t pr

  • fit/ (loss) attr

ibutable to: 42,316 70,451

  • 40
  • o wne rs o f the Pa re nt

30,856 71,440

  • 57
  • no n-c o ntro lling inte re sts

11,460 (989)

  • Ma rg ins (% )

PL N ’ 000

Q4 2011 Q4 2010 y-o-y c hange (pp)

Gro ss ma rg in 11.8 12.9

  • 1.1

Ope ra ting ma rg in 5.2 12.9

  • 7.7

Ne t ma rg in 2.3 8.4

  • 6.1

Othe r inc ome

PL N ’ 000

Q4 2011 Q4 2010

Inte re st o n lo a ns 1,366 8,434 L e a se 2,967 253 Co mpe nsa tio n a nd pe na ltie s re c e ive d 6,329 2,082

Othe r e xpe nse s

PL N ’ 000

Q4 2011 Q4 2010

Allo wa nc e fo r c re dit lo sse s o n re c e iva b le s 17,388 580 Co mpe nsa tio n a nd pe na ltie s pa id 3,103 3,444 Inte re st o n lia b ilitie s 1,912 466

F inanc e inc ome

PL N ’ 000

Q4 2011 Q4 2010

Inte re st o n fina nc ia l instrume nts 3,059 1,139 L

  • a ns a nd

re c e iva b le s 1,504

  • F
  • re ig n e xc ha ng e

g a ins/ (lo sse s) 11,690 6,208

F inanc e c osts

PL N ’ 000

4Q 2011 4Q 2010

Inte re st o n b o nds 5,731 11,633 Inte re st o n b a nk b o rro wing s 1,289 10,930 Inte re st o n b a nk

  • ve rdra fts

12,099 459

Comme nta ry

  • Re ve nue g ro wth wa s drive n b y the

e xe c utio n o f ro a d c o nstruc tio n c o ntra c ts (PL N 1.1b n vs. PL N 299m) a nd the consolidation of Energomontaż Południe (PLN 192m) and Rafako (PLN 218m).

  • Gro ss ma rg in fe ll o n the b a c k o f a hig he r

sha re o f lo w-ma rg in se g me nts in the re ve nue struc ture .

  • F

a ir-va lue me a sure me nt o f Ra fa ko sha re s, fo llo wing a c ha ng e in the c o nso lida tio n me tho d, wa s re c o g nise d in o the r e xpe nse s a t PL N 21.9m.

  • Co nso lida tio n o f Ra fa ko 's re sults:

distrib utio n c o sts o f PL N 5.6m.

  • Consolidation of Energomontaż

Południe’s and Rafako’s results: a dministra tive e xpe nse s o f PL N 10.5m a nd PL N 7.3m, re spe c tive ly.

  • Ope ra ting ma rg in wa s ma te ria lly

a ffe c te d b y the re c o g nitio n in o the r e xpe nse s o f PL N 21.9m fa ir-va lue me a sure me nt o f Ra fa ko sha re s.

  • Ne t ma rg in de c line d a s a re sult o f

inc re a se d fina nc e c o sts a nd hig h e ffe c tive ta x ra te , whic h fo llo we d c hie fly fro m no n-disc lo sure b y two o f o ur sub sidia rie s o f inc o me ta x in the fina nc ia l sta te me nts fo r nine mo nths e nde d Se pte mb e r 30th 2011. As a re sult, the ta x se ttle d in De c e mb e r 2011 c o mprise d ta x c ha rg e d o n the se c o mpa nie s’ inc o me fo r the e ntire re po rting pe rio d. Ano the r fa c to r c o ntrib uting to the hig h ta x le ve l wa s de re c o g nitio n o f a de fe rre d ta x a sse t o n unuse d ta x lo ss.

slide-9
SLIDE 9

9

BPG Gr

  • up’s asse ts – state me nt of financ ial position

State me nt of financ ial position

High liquidity in all ye ar

  • s. De c line

in 2011 c ause d by high de mand for wor king c apital r e lating to r

  • ad and stadium c onstr

uc tion pr

  • je c ts, as we ll as e quity

investments in Energomontaż- Południe and Rafako.

Inc lude s in par tic ular tr ade and

  • the r

r e c e ivable s (PL N 1,411m), amounts due fr

  • m c ustome r

s fr

  • m c onstr

uc tion c ontr ac t wor k (PL N 1,225m) and inve ntor ie s (PL N 464m). De bt inc r e ase dr ive n by c apital- inte nsive pr

  • je c ts and

ac quisitions in 2010 and 2011. De bt e xpe c te d to fall upon c omple tion of the pr

  • je c ts and

r e ve r sal of the wor king c apital build- up. Str

  • ng e quity position

PL Nm 2008 2009 2010 Q4 2011 No n-c urre nt a sse ts 902 1,018 1,594 2,242

Ca sh a nd c a sh e quiva le nts 289 660 709 559

Othe r c urre nt a sse ts 1,651 2,337 2,447 3,825

T

  • ta l a sse ts

2,841 4,015 4,750 6,627

I nte re st-b e a ring d e b t¹ 805 1,135 1,438 2,019 Othe r lia b ilitie s2 940 1,262 1,494 2,278 E q uity 1,096 1,619 1,818 2,329

T

  • ta l e quity a nd

lia bilitie s 2,841 4,015 4,750 6,627 Ne t de bt 517 475 740 1,459 Ne t de bt / E BIT DA 1.8x 1.4x 2.2x 3.0x3

¹ I nte re st-b e a ring de b t inc lude s Bo rro wing s, Bo nds a nd F ina nc e L e a se .

2 I

nc luding : T ra de a nd o the r pa ya b le s a nd Amo unts due to c usto me rs fo r c o nstruc tio n c o ntra c t wo rk in the a mo unt o f PL N 1.83b n.

3 Ra tio c a lc ula te d b a se d o n a fo rmula a g re e d upo n with fina nc ia l institutio ns.

slide-10
SLIDE 10

10

PL Nm 2008 2009 2010 4Q 2011 Pro fit b e fo re ta x 214 260 234 271 Adjustme nts a nd

  • the r

108 184 68 81 Ne t c ha ng e s in wo rking c a pita l (550) 85 188 (774)

Ca sh fr

  • m (use d in)
  • pe r

ating a c tivitie s (253) 305 434 (496)

Ope ra ting c a pe x (110) (70) (144) (163) Othe r c a sh flo ws fro m inve sting a c tivitie s (75) (281) (386) 13

Ca sh fr

  • m (use d in)

inve sting ac tivitie s (186) (351) (530) (150) Ca sh fr

  • m (use d in)

fina nc ing ac tivitie s 315 417 145 497 Ne t c ha ng e in c a sh (123) 371 48 (150)

Ca sh a t b e g inning o f pe rio d 410 289 660 709 Ca sh a t e nd o f pe rio d

289 660 709 559

Cash flows

PL N 271m pr

  • fit be for

e tax – highe st in the last four ye ar s. Str

  • ng ne e d in 2011 owing to four

lar ge r

  • ad c onstr

uc tion pr

  • je c ts

and c omple tion of E ur

  • 2012

stadium pr

  • je c ts.

Stable ope r ating c ape x. In 2011, e xpe nditur e s we r e r e late d to the pur c hase of he avy e quipme nt and a PL N 52m inve stme nt in buildings and land. Cash fr

  • m (use d in) financ ing

ac tivitie s r e sulting fr

  • m ne w

bor r

  • wings and issue of bonds in

2008 and 2009. High liquidity in all ye ar s. Re duc tion in 2011 c ause d by the c apital- inte nsive r

  • ad and

stadium c onstr uc tion pr

  • je c ts.

Histor ic ally, e xpe nse s inc ur r e d in c onne c tion with the pur c hase of r e al e state and c onstr uc tion of aggr e gate quar r y (Str ate g Capital)

PBG Gr

  • up’s e c onomic standing – Cash flows
slide-11
SLIDE 11

11

PBG’s stand- alone pe r for manc e – Q1- Q4 2011 inc ome state me nt

F ina nc ia l pe rforma nc e

PL N ’ 000

Q1-Q4 2011 Q1-Q4 2010 y-o-y c hange

Re ve nue 1,001,914 918,230 +9 Co st 845,984 743,223 +14

Gr

  • ss pr
  • fit/ (loss)

155,930 175,007

  • 11

Distrib utio n c o sts

  • Administra tive e xpe nse s

31,015 29,486 +5

Pr

  • fit/ (loss)

124,915 145,521

  • 14

Othe r inc o me 97,465 52,471 +86 Othe r e xpe nse s 6,298 4,679 +35

Ope r ating pr

  • fit/ (loss)

216,082 193,313 +12

Divide nd inc o me

  • 43,228
  • F

ina nc e c o sts 63,355 42,005 +51 Othe r g a ins/ (lo sse s) o n inve stme nts

  • Pr
  • fit/ (loss) be for

e tax 152,727 194,536

  • 21

Inc o me ta x e xpe nse 29,903 29,148 +3

Ne t pr

  • fit

122,824 165,388

  • 26

Ma rg ins (% )

PL N ’ 000

Q1-Q4 2011 Q1-Q4 2010 y-o-y c hange (pp)

Gro ss ma rg in 15.6 19.1

  • 3.5

Ope ra ting ma rg in 21,6 21,1 +0,5 Ne t ma rg in 12.3 18.0

  • 6.7

Othe r inc ome

PL N ’ 000

Q1-Q4 2011 Q1-Q4 2010

Inte re st o n lo a ns 43,586 36,917 F

  • re ig n e xc ha ng e

g a ins 13,449

  • Inte re st o n c a sh in

c urre nt b a nk a c c o unt 11,994 5,807

Othe r e xpe nse s

PL N ’ 000

Q1-Q4 2011 Q1-Q4 2010

Allo wa nc e fo r c re dit lo sse s o n re c e iva b le s 3,360

  • F
  • re ig n e xc ha ng e

g a ins/ (lo sse s)

  • 2,083

Co mpe nsa tio n a nd pe na ltie s pa id 320 782

F inanc e inc ome

PL N ’ 000

Q1-Q4 2011 Q1-Q4 2010

Inte re st o n fina nc ia l instrume nts 4,422 8,177 F

  • re ig n e xc ha ng e

g a ins/ (lo sse s) 8,504 4,636 De po sits 3,178 6,663

F inanc e c osts

PL N ’ 000

Q1-Q4 2011 Q1-Q4 2010

Inte re st o n b o nds 69,863 45,139 Inte re st o n b a nk b o rro wing s 6,883 7,927 Inte re st o n b a nk

  • ve rdra fts

962 2,792

Comme nta ry

  • Re ve nue g re w b y 9% ye a r o n ye a r,

prima rily a s a re sult o f the e xe c utio n

  • f pro je c ts in the g a s se g me nt,

whic h a c c o unte d fo r 77% o f PBG's re ve nue in 2011.

  • Shrinking o f the g ro ss ma rg in wa s

a ttrib uta b le to the e xe c utio n o f pro je c ts in the industria l c o nstruc tio n se g me nt.

  • Cha ng e o f the po lic y g o ve rning the

c la ssific a tio n o f tra nsa c tio ns to

  • pe ra ting o r fina nc ing a c tivitie s

(fina nc ing a c tivitie s sho uld inc lude

  • nly tho se tra nsa c tio ns, whic h a re

re la te d to ra ising fina nc ing , while the re sults o f inve sting a c tivitie s invo lving inve stme nt a nd a llo c a tio n

  • f funds to the b e ne fit o f the e ntity

sho uld b e re c o g nise d a s o pe ra ting a c tivitie s).

  • F

ina nc e c o sts inc re a se d in c o nne c tio n with the se rvic e o f de b t unde r b o nd issue s: inte re st o n b o nds re c o g nise d in the se pa ra te fina nc ia l sta te me nts a mo unts to PL N 70m, whe re a s inte re st o n b o nds in the c o nso lida te d fina nc ia l sta te me nts o f the PBG Gro up is PL N 41m. In the PBG Gro up o nly the pa re nt ha s issue d b o nds a nd inc urs re la te d c o sts, inc luding inte re st a c c ruing pursua nt to the inde nture . T he re fo re , the b a la nc e o f o ve r PL N 28m re sults o nly fro m a c o nso lida tio n a djustme nt.

slide-12
SLIDE 12

12 F ina nc ia l pe rforma nc e

PL N ’ 000

Q4 2011 Q4 2010 y-o-y c hange

Re ve nue 316,342 384,342

  • 18

Co st 275,362 310,653

  • 11

Gr

  • ss pr
  • fit/ (loss)

40,980 73,689

  • 44

Distrib utio n c o sts

  • Administra tive e xpe nse s

10,395 8,499 +22

Pr

  • fit/ (loss)

30,585 65,190

  • 53

Othe r inc o me 32,086 16,175 +98 Othe r e xpe nse s 651 1,882

  • 65

Ope r ating pr

  • fit/ (loss)

62,020 79,483

  • 22

F ina nc e c o sts 16,515 14,901 +11 Othe r g a ins/ (lo sse s) o n inve stme nts

  • Pr
  • fit/ (loss) be for

e tax 45,505 64,582

  • 30

Inc o me ta x e xpe nse 9,969 11,801

  • 16

Ne t pr

  • fit

35,536 52,781

  • 33

Ma rg ins (% )

PL N ’ 000

Q4 2011 Q4 2010 y-o-y c hange (pp)

Gro ss ma rg in 13.0 19.2

  • 6.2

Ope ra ting ma rg in 19.6 20.7

  • 1.1

Ne t ma rg in 11.2 13.7

  • 2.5

Othe r inc ome

PL N ’ 000

Q4 2011 Q4 2010

Pro fit/ (lo ss) o n de riva tive instrume nts 13,732 (859) Inte re st o n lo a ns 12,114 10,317 Ga in o n dispo sa l o f e q uity instrume nts 4,099

  • Othe r

e xpe nse s

PL N ’ 000

Q4 2011 Q4 2010

Allo wa nc e fo r c re dit lo sse s o n re c e iva b le s 3,360

  • F
  • re ig n e xc ha ng e

g a ins/ (lo sse s) (3,297) 739 Co mpe nsa tio n a nd pe na ltie s pa id 97 550

F inanc e inc ome

PL N ’ 000

Q4 2011 Q4 2010

F

  • re ig n e xc ha ng e

g a ins 6,690 2,464 Inte re st o n fina nc ia l instrume nts 333 1,564 De po sits 191 1,176

F inanc e c osts

PL N ’ 000

4Q 2011 4Q 2010

Inte re st o n b o nds 19,782 17,227 Inte re st o n b a nk b o rro wing s 3,502 1,772 Inte re st o n b a nk

  • ve rdra fts

(43) 704

Comme nta ry

  • Re ve nue fe ll b y 18% ye a r o n

ye a r a s a re sult o f the e xe c utio n

  • f pro je c ts in the g a s a nd

industria l c o nstruc tio n se g me nts.

  • Shrinking o f the g ro ss ma rg in wa s

a ttrib uta b le to the e xe c utio n o f pro je c ts in the industria l c o nstruc tio n se g me nt.

PBG’s stand- alone pe r for manc e – Q4 2011 inc ome state me nt

slide-13
SLIDE 13

13

PBG Gr

  • up’s financ ial pe r

for manc e in Q1- Q4 2011 and Q1- Q4 2010, by se gme nts

SE GME NT S GAS, OIL AND F UE L S WAT E R INDUST RIAL AND RE SIDE NT IAL CONST RUCT ION ROAD CONST RUCT ION POWE R E NGINE E RING OT HE R GROSS MARGIN IN Q1-Q4 2011 R(% ) 16.5 16.5 6.3 4.3 17.2 40.2 GROSS MARGIN IN Q1-Q4 2010 R(% ) 22.8 10.8 5.9 9.6 0.0 44.4

23% 14% 21% 30% 11% 1% Ga z ziemny i ropa na ftowa Woda

Budownictwo przemysłowe i mieszkaniowe

Drog i Budownic two energ etyc zne Inne

Gas, oil and fue ls Wate r Industr ial and r e side ntial c onstr uc tion Roads Powe r e ngine e r ing Othe r

slide-14
SLIDE 14

14

PBG Gr

  • up’s financ ial highlights (PL

N ‘000)

124% 103% 129%

RE VE NUE NE T PROF IT OPE RAT ING PROF IT

  • E

BIT OPE RAT ING MARGIN

slide-15
SLIDE 15

15

PBG Gr

  • up's or

de r book

T he ke y a dva nta ge of our

  • r

de r book is its e xc e lle nt visibility in r e ve nue s g oing for wa r d, whic h is a dditionally e nha nc e d by a sig nific a nt inc r e a se of the or de r book's va lue , r e sulting fr

  • m e xe c ution of the Opole c ontr

a c t.

Ke y information Orde r book (PL Nm) Orde r book by se gme nts Ke y c ontrac ts in the orde r book

  • Our c o re se g me nts a c c o unt fo r o ve r 50% o f the o rde r b o o k
  • T

he o rde r b o o k re pre se nts 1.6x o f re ve nue

  • I

t is e xpe c te d tha t the Opo le c o ntra c t will a dd PL N 3.2b n to the

  • rde r b o o k, ra ising its va lue to 2.4x o f re ve nue
  • Ro a d se g me nt’ s sha re a nd sig nific a nc e to de c re a se .
  • L

NG T e rmina l; 2010-2014; PL N 2.1b n

  • L

MG c rude o il a nd na tura l g a s pro duc tio n fa c ility; 2008-2013; PL N 1.4b n

Orde r book a s a t Ja nua ry 1st 2012: PL N 5.9bn

#

Orde r b o o k/ Re ve nue in 2011

1.6x 2.4x

(PL Nbn)

WAT E R INDUST RIAL AND RE SIDE NT IAL CONST RUCT ION GAS, OIL AND F UE L S ROAD CONST RUCT ION POWE R E NGINE E RING

slide-16
SLIDE 16

16

  • Pla c ing RAF

AKO S.A. a s the le a de r of the PBG Group's powe r e ng ine e ring se g me nt

  • Stra te g ic c oope ra tion with ma jor pla ye rs on the g loba l powe r e ng ine e ring ma rke t to fa c ilita te joint

a c quisition a nd e xe c ution of c ontra c ts in Pola nd

  • Building up own c ompe te nc e s a nd c re de ntia ls throug h winning a nd e xe c ution of c ontra c ts of

inc re a sing ly la rg e r unit va lue s

  • Winning the la rg e st c ontra c ts in Pola nd
  • E

xpa nding the ra ng e of c re de ntia ls throug h c ontinuous de ve lopme nt of e ng ine e ring skills, improve me nt of proje c t ma na g e me nt skills a nd e xe c ution of inc re a sing ly more c omple x proje c ts

  • Pre se nc e in the wa ste ma na g e me nt pla nts c onstruc tion ma rke t
  • Pre se nc e in the wa ste inc ine ra tion pla nts c onstruc tion ma rke t
  • Pre se nc e in the hydro- e ng ine e ring ma rke t
  • Disposa l of non- c ore a sse ts
  • Re duc tion of e xposure to non- c ore se c tors re quiring substa ntia l c a pita l e xpe nditure

E xpa nsion in the Polish powe r e ng ine e r ing ma r ke t Str e ng the ning the Compa ny's position a s the le a de r in the g a s a nd oil se c tor in Pola nd Pa r tic ipa tion in the infr a str uc tur e a nd spe c ia list c onstr uc tion ma r ke t De le ve r a ging

Str ate gy of the PBG Gr

  • up

PBG'S ST RAT E GIC PL ANS F OCUS ON HIGH- MARGIN CORE SE GME NT S, ON ST RE NGT HE NING T HE L E ADE RSHIP, AND ON DE L E VE RAGING

slide-17
SLIDE 17

17

GAS, OIL AND E PC SE RVICE S POWE R E NGINE E RING GE NE RAL CONST RUCT ION, E NVIRONME NT AL PROT E CT ION, HYDRO- E NGINE E RING F ORE IGN OPE RAT IONS RE SIDE NT IAL CONST RUCT ION

PBG UKRAINA WSCHODNI INVE ST E NE RGOPOL UKRAINA

AGGRE GAT E QUARRIE S

63.05% 98.49% 100.00% 99.56% 70.00% 100.00% 99.99% 100.00% 100.00% 100.00% 100.00% 100.00% 51.00% 64.84% 100.00% 100.00% 81.69%

ROAD CONST RUCT ION

BAT HINE X

100.00% 99.95%

Str uc tur e of the PBG Gr

  • up

100.00% 66.00%

slide-18
SLIDE 18

18

Disc laime r

T his pre se nta tio n wa s pre pa re d b y PBG S.A. Da ta a nd info rma tio n c o nta ine d in the slide s a re fo r info rma tio n purpo se s o nly a nd do no t c o nstitute full fina nc ia l a na lysis. F

  • r a de ta ile d de sc riptio n
  • f PBG's o pe ra tio ns a nd fina nc ia l situa tio n, ple a se re fe r to c urre nt a nd pe rio dic re po rts a va ila b le

a t www.pbg- sa.pl. All da ta c o nta ine d he re in is b a se d o n so urc e s whic h we de e m re lia b le a nd truste d. T his pre se nta tio n ha s no t b e e n a udite d. T his pre se nta tio n a nd re la te d slide s ma y c o nta in fo rwa rd-lo o king sta te me nts. Suc h sta te me nts must no t b e c o nstrue d a s the Co mpa ny's fo re c a sts o r g ua ra nte e s o f its future pe rfo rma nc e .