Consolidated Financial Results Q (IFRS)

Transcription

1 Consolidated Financial Results of the LOTOS Group Q (IFRS) Paweł Olechnowicz President of the Management Board March, 2 nd 2009

2 Agenda Financial Results in Q Summary Major Events Operational Information Overview of Financial Results Supplementary Data 2

3 Summary Market Conditions in Q Crude Wydarzenia oil prices and Brent/Ural differential* Data for Q and Q4 2008* The market conditions for refining in Q were worse than both in Q and Q The average Brent crude oil price amounted to USD/bbl a decrease of 51.8% in comparison to Q and of 37.3% versus Q The average benchmark Brent/Ural* differential amounted to 0.89 USD/bbl a decrease of 49.4% against Q and of 70.7% versus Q The average benchmark refining margin amounted to the level of 7.39 USD/bbl a decrease of 19.2% versus Q and an increase of 42.1% in comparison to Q The USD/PLN FX rate rose by 29.6% versus Q and by 12.9% versus Q *Benchmark Benchmark refining margin* in Q Dated Brent FOB (USD/bbl) Ural CIF Rotterdam (USD/bbl) Brent/Ural differential** (USD/bbl) Benchmark refining margin (USD/bbl) USD/PLN * Average for period **Benchmark Data for Q and Q4 2008* Dated Brent FOB (USD/bbl) Ural CIF Rotterdam (USD/bbl) Brent/Ural differential** (USD/bbl) Benchmark refining margin (USD/bbl) USD/PLN * Average for period **Benchmark Q Q Q Q Change % % % % % Change % % % % % Crude oil prices and Brent/Ural differential* in Q4 USD/bbl USD/bbl USD/bbl Avg. Cracking margin 7.39 Avg. Hydroskimming margin Avg. Brent Avg. Ural Avg. Brent/Ural differential* /Oct 9/Oct 17/Oct 25/Oct 2/Nov 10/Nov 18/Nov 26/Nov 4/Dec 12/Dec 20/Dec 28/Dec Serie2 Serie1 Serie * Rotterdam Brent, weekly averages Source: JBC *Benchmark Source: JBC 3

4 Summary Operational Data Operating data in Q and Q and in 2007 and 2008 Q Q % % Annual nameplate refining capacity (k tonnes) % % Gdańsk refinery throughput (k tonnes) 1, , % 6, , % Average capacity utilization rate 104.2% 102.2% -1.9% 102.9% 103.1% +0.2% Products sales in total (k tonnes - consolidated) 1, , % 7, , % Employment (end of period) 4,764 4, % ) Including people employed in Grupa LOTOS S.A. 4

5 Summary Financial Results in Q1-Q Financial results Q1-Q4 (IFRS in PLN m, unaudited) Q1-Q4 07 Q1-Q4 08 % Net Sales 13, , % EBITDA EBIT Net profit EBIT (LIFO) % Net profit* *Net profit attributable to shareholders of the dominant entity EBIT margin (%) Commentary A decrease of crude oil prices influencing the valuation of inventories (processed inventory effect and inventory impairment). A decrease of the Brent/Ural differential resulting from an improvement of cracks on heavy products. Costs of maintaining of strategic fuel reserves. Substantial decrease of the PLN versus USD and EUR exchange rates positively influenced operational result, but necessitating revaluation of loans. The balance on financial activities in Q1-Q was negative and amounted to PLN m. Net profit (PLN m)* *Net profit attributable to shareholders of the dominant entity 5

6 Overview of Financial Results Profit warning versus quarterly results of the LOTOS Group Estimated versus actual quarterly results FY 2008 Actual results 02/03/2009 Trading statement 04/02/2009 Annual results 02/03/2009 Trading statement 04/02/2009 Quarterly results 02/03/2009 Sales (m tonnes) EBIT (PLN m) EBIT according to LIFO (PLN m) Impact on inventory valuation (PLN m) Impact of the valuation and settlement of hedging transactions (PLN m) Impact of the revaluation of loans in USD (PLN m) On the 4th of February 2009 Grupa LOTOS issued a trading statement concerning the estimated results of the Company for Q and the year Actual results were better than estimated in the trading statement of 4 February

7 Overview of Financial Results Impact of the macroeconomic factors Impact of key factors affecting pre-tax profit in Q Pre-tax result Revaluation of loans Impairment of inventories Processed inventory valuation effect Theoretical pre-tax result * Adjusted for macroeconomic factors Commentary Rapid depreciation of the PLN by 21.5% in Q required revaluation of long-term loans taken in USD and resulted in a decrese of the financial result by PLN m. Since the revaluation concerns only the long-term loans, it has no impact on the short- and mediumterm liquidity of the Company. Falling crude oil prices during the second half of 2008 resulted in a valuation of processed crude oil that caused a decline of operating profit by PLN m. The company also recognised a one-off impairment of inventories of crude oil and products of PLN m. The long term impact of falling crude oil prices on the liquidity of the Company is positive. 7

8 Agenda Financial Results in Q Summary Major Events Operational Information Overview of Financial Results Supplementary Data 8

9 Major Events Exploration & Production: Petrobaltic and LOTOS E&P Norge Petrobaltic Total production amounted to 57.8 k tonnes of crude oil and 6.6 m m 3 of natural gas. Total production of crude oil in Q was sent to the Gdańsk refinery whereas natural gas was partly used by the B3 and B8 installations and the remainder sent to the Energobaltic power plant in Władysławowo. In Q the LOTOS Group purchased 40.7 k tonnes of crude oil Rozewie produced by Petrobaltic. The LOTOS Group s refineries processed 94.2 k tonnes of Petrobaltic crude oil Rozewie. In Q major activities of Petrobaltic included exploration of the B3 and B8 oil fields, seismic examination of potential oil fields, geotechnic examination of the seabed for the oil rig installation, as well as maintenance and repair works (PG-1). LOTOS E&P Norge LOTOS E&P Norge completed the second purchase of a 10% stake in the YME field in 2008 becoming an owner of a 20% stake in the field (13,6 m bbl reserves). The transaction was financed with a loan granted by Petrobaltic and by increasing the equity of LOTOS E&P Norge by Petrobaltic. LOTOS E&P Norge completed the purchase of a 20% stake in the PL455 exploration licence (spanning an area of km 2 ). As part of the agreement the Company will cover part of the costs of conducting seismic studies within this licence up to the amount of 37.6 m NOK. As a result of the APA 2008 prequalifying decission, LOTOS E&P Norge was granted stakes in exploration licences PL 497, PL 498, PL 503 and PL 515 located on the Northern and Norwegian Sea. 9

10 Major Events Refining implementation of the 10+ Programme Implementation of contracts and obtaining debt financing In Q the LOTOS Group focused on implementation of existing contracts. ROSE installation continuation of works related to the technical design and construction carried out in cooperation with M.W. Kellogg and KBR. Other activities: 100% Progress of works 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Completion date October 2010 PLANNED ACTUAL Progress at end of December 2008: Planned: 56.04% Actual: 55.95% sty-07 cze-07 lis-07 kwi-08 wrz-08 lut-09 lip-09 gru-09 maj-10 paź-10 HDS final phase of construction, equipment installation and preparation of the start-up instructions. CDU/VDU finalization of ground construction works including the installation of the chimney for the furnaces, continuation of works related to the delivery and installation of the equipment. MHC continuation of the technical design and construction works related to foundation and underground installations. Other installations: continuation of construction works and activities related to the delivering and installation of equipment. All the projects were performed in accordance with the budget and investment schedule. At the end of Q the progress of works related to the finalisation of the 10+ Programme was 55.95%. 10

11 Major Events Retail PROSTA Project implementation in Q The LOTOS Group is restructuring its network by increasing the number of CODO and DOFO stations and decreasing the number of legacy DODO stations. In Q the following activities were conducted: 3 new CODO stations were commissioned in Strzeszowice, Radzymin and Zegrze and 1 station was excluded from the network and sold. The number of stations participating in the LOTOS Family DOFO Commercial Partnership programme increased by 3. The number of DOFO stations selling Premium fuel increased to 54. Number of stations in LOTOS network As of 31 December 2008 CODO 139 DODO 137* DOFO 79 (92**) Total 355 * On 1 January DODO agreements expired ** Number of signed partnership agreements Change in the retail network structure By the end of Q the LOTOS Group had 79 DOFO stations and 92 signed partnership contracts. As of 31 December 2008 the LOTOS Group had 137 DODO stations CODO 31-Dec Dec Dec-06 DOFO DODO 31-Dec Dec-08 11

12 Agenda Financial Results in Q Summary Major Events Operational Information Overview of Financial Results Supplementary Data 12

13 Operational Information Capacity, Throughput and Sales 1,600 1,400 1,200 1, Capacity utilisation (in 000 tonnes p.a.)* % Q Maintenance shutdown 94.0% 98.1% 99.2% 94.6% 102.5% 104.3%104.7% 101.7%102.8% 102.8% 104.2% 103.1%102.9% 104.3% 102.2% Q2 Q3 Q4 Q * Gdańsk Refinery Refinery capacity Q2 Q3 Q4 Q Capacity utilisation Q2 Q3 Q4 Q Crude oil throughput (in 000 tonnes)* Q2 Q3 Q4 100% 80% 60% 40% 20% 0% Commentary Due to high demand for LOTOS Group products, the capacity utilization rate in Q amounted to 102.2%*. In Q throughput of crude oil at the Gdańsk refinery amounted to k tonnes - a decrease of 2.0% compared to the level in Q Total sales of products and goods in Q amounted to k tonnes and was 0.9% lower in relation to Q and 4.0% higher in relation to Q Increase of sales volume of Diesel by 21.8% in Q in comparison to Q Processing of Ural crude oil accounted for 88.8%, crude oil ROZEWIE supplied by Petrobaltic - for 6.1%, crude oil VOLVE for 3.0%, and Aasgard crude oil for the remaining 2.1% of total throughput*. Zatrudnienie Sales of products and goods (in 000 tonnes) * Gdańsk Refinery 1,600 1,400 1,538 1,578 1,583 1,5381,5551,5591,5421,539 1,5771,545 1,483 1,500 1,400 1,505 1,200 1, , Q Q2 Q3 Q4 Q Q2 Q3 Q4 Q Q2 Q3 Q4 Q Q2 Q3 Q4 * Gdańsk Refinery 13

14 Operational information Market Share National Fuel Consumption (m tonnes) Commentary Consumption of fuels in Poland from January to December 2008 increased by 0.2% comparing to the analogous period of At the end of 2008 the total fuel market share of the LOTOS Group amounted to 25.4% and grew by 1.4% comparing to the analogous period of Gasoline market share amounted to 24.5%. Diesel market share amounted to 25.6%. LHO market share amounted to 27.1%. Source: : Nafta Polska, ARE; : POPiHN LOTOS Group Fuel Market Share LOTOS Group Market Share (Gasoline, Diesel, LHO) 27% 26% 25% 24% 23% 22% 21% 20% 22.8% 26.5% 24.0% 25.4% Total fuel market share

15 Agenda Financial Results in Q Summary Major Events Operational Information Overview of Financial Results Supplementary Data 15

16 Overview of Financial Results Profit & Loss Account for Q and Q (unaudited) IFRS (in PLN m) Q Q % Sales (in PLN m) and their dynamics Net sales 3, , % Cost of sales 3, , % Gross profit Other operating revenue % Sales costs % Administration expenses % Other operating costs % EBITDA 232,3-581,7 - Operating profit (EBIT) Financial revenue Financial costs % Pre-tax profit Income tax Net profit from continued operations Net profit* Commentary In Q net sales decreased by 5.2% in comparison to Q4 2007, mainly due to the decrease in crude oil and products prices (increase of sales volume by 4%). Higher valuation of processed inventory and impairment of inventories of crude oil and products resulted in a decline of gross profit to PLN m in Q a decrease by 161.7% in comparison to Q Due to the unfavourable macroeconomic conditions, operating profit of the LOTOS Group in Q amounted to a negative value of PLN m. Net result on financial activity in Q4 was negative and amounted to PLN m, mainly due to the revaluation of loans in USD, as well as hedging transactions of refining margin risk and currency exchange risk during the realisation of the 10+ Programme. * Net profit attributable to shareholders of the dominant entity 16

17 Overview of Financial Results Profit & Loss Account for Q1-Q and Q1-Q IFRS (in PLN m) Q1-Q4 07 Q1-Q4 08 % Sales (in PLN m) and their dynamics Net sales 13, , % Cost of sales 11, , % Gross profit 1, , % Other operating revenue % Sales costs % Administration expenses % Other operating costs % EBITDA 1, % Operating profit (EBIT) Financial revenue % Financial costs % Pre-tax profit 1, Income tax Net profit from continued operations Net profit* * Net profit attributable to shareholders of the dominant entity Commentary Net sales for the period of Q1Q amounted to PLN m an increase by 24.3% in comparison to the analogous period of Gross profit for the period of Q1 Q reached the level of PLN m a decrease by 42.5% in comparison to the analogous period of Operating profit for the period of Q1Q amounted to PLN m a decrease by 119.8% in comparison to the analogous period of The result on hedging in Q1-Q reached the level of PLN m, with the result on closed positions amounting to PLN m. The balance on financial activities in Q1-Q was negative and amounted to PLN m. Net profit from the continued operations for the period of Q1 Q amounted to PLN m a decrease by 151.8% in relation to the analogous period of 2007 due to the highly disadvantageous macroeconomic conditions, which contributed to a net loss of PLN in Q and PLN m in Q

18 Overview of Financial Results Balance Sheet as of and (unaudited) Krótkoterminowe aktywa finansowe IFRS (in PLN m) % ROAA (TTM) Assets 9, , % Fixed assets 4, , % Tangible fixed assets Current assets Inventories Receivables 3, , % 5, , % 2, , % 1, , % Short-term investments Cash and equivalents Equity & Liabilities Shareholders equity Long-term liabilities Short-term liabilities % % 9, , % 6, , % 1, , % 2, , % ROAE (TTM) including financial debt 1, , % 18

19 Overview of Financial Results Financial Ratios for Q and Q EBITDA margin Net margin* * Net profit of Shareholders of Grupa LOTOS S.A. EBIT margin Gearing Gearing = net debt/equity 19

20 Overview of Financial Results Financial Ratios for Q1-Q and Q1-Q EBITDA margin Net margin* * Net profit of Shareholders of Grupa LOTOS S.A. EBIT margin Gearing Gearing = net debt/equity 20

21 Overview of Financial Results Hedging transactions in Q and 2008 Hedging transactions as of 31 December 2008 (PLN m) Closed positions Open positions (market value) Q Q1-Q Q Q1-Q Hedging of refining margin Hedging of currency exchange and CO Hedging of interest rate Total Q result on hedging 2008 result on hedging Refining margin Interest rate -116 FX & C Refining margin -151 Interest rate -16 FX & C02 21

22 Overview of Financial Results Operating Profit in Areas of Operations in Q Areas of operations (PLN m) Sales E & P Refining & trade Retail stations Other operations Q4 08 Q4 07 Q4 08 Q4 07 Q4 08 Q4 07 Q4 08 Q ,713 3, Interarea sales External sales 1 1 3,368 3, Operating costs ,449-3, Adjustments Operating profit Depreciation EBITDA Commentary The operating activity of the LOTOS Group is divided into four areas of operations: exploration & production, refining & trade, retail stations and other operations that include transport and maintenance. Factors impacting the operating profit in individual areas of operations in Q3 2008: E&P production from the B-3 and the B-8 oil fields, significant decrease of crude oil prices and processing of Rozewie crude oil inventory. Refining & trade unfavourable market conditions: rapid decline of USD/PLN and EUR/PLN currency exchange rates, decrease of the average crude oil prices, decrease of the average benchmark Brent/Ural differential. 22

23 Overview of Financial Results Operating Profit according to LIFO inventory valuation Analysis of operating profit PLN m Q Q Change Q1-Q Q1-Q Change Operating profit LIFO effect LIFO operating profit % Commentary to LIFO results Q1-Q operating profit according to the LIFO inventory valuation ammounted to PLN m in comparison with PLN for the period of Q1-Q The effect of inventory valuation was PLN -612,1 m. Q operating profit according to the LIFO inventory valuation method amounted to PLN m in comparison to PLN -4.9 m.the influence of the inventory valuation in Q was PLN m. Commentary on inventory valuation methods In accordance with accepted accounting standards, LOTOS Group performs inventory valuation according to the weighted average acquisition price. Application of this inventory valuation method results in a delay in transferring the effects of changes of the price of crude oil in relation to product prices. Therefore, appreciation of the price of crude oil on international markets has a positive impact on financial results and depreciation of the price of crude oil has a negative impact on financial results. Application of the LIFO (Last In First Out) inventory valuation method allows for direct comparison of financial results between periods where different crude oil price trends were observed. 23

24 Agenda Financial Results in Q Summary Major Events Operational Information Overview of Financial Results Supplementary Data 24

25 Supplementary Data Macroeconomic Environment Growth of real GDP (%) * *Source: IBnGR, forecast Source: The Polish Central Statistical Office Foreign exchange rate USD/PLN EUR/PLN 4.4 EUR/PLN = EUR/PLN = USD/PLN = USD/PLN = 2.42 Commentary According to the estimates of IBnGR in Q GDP real growth amounted to 2.7% as compared to 6.4% in the analogous period of The estimated 2008 annual GDP growth rate amounts to 4.8%. In Q the USD/PLN exchange rate ranged from 2.42 to 3.10, and at the end of December 2008 amounted to In the same period the EUR/USD exchange rate ranged from 1.25 to 1.44 and at the end of December 2008 amounted to Decrease in the WIBOR 3M rate from 6.63% at the end of September 2008 to 5.88% at the end of Q Significant decrease in the LIBOR 3M rate from 5.27% at the end of Q to 2.99 by the end of /05 02/05 03/05 04/05 05/05 06/05 07/05 08/05 09/05 10/05 11/05 12/05 01/06 02/06 03/06 04/06 05/06 06/06 07/06 08/06 09/06 10/06 11/06 12/06 01/07 02/07 03/07 04/07 05/07 06/07 07/07 08/07 09/07 10/07 11/07 12/07 01/08 02/08 03/08 04/08 05/08 06/08 07/08 08/08 09/08 10/08 11/08 12/08 Source: NBP Interest rates 7.0% 6.5% WIBO R 3M PLN LIBO R 3M EUR 6.0% 5.5% 5.0% 4.5% 4.0% 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% 01/05 02/05 03/05 04/05 05/05 06/05 07/05 08/05 09/05 10/05 11/05 12/05 01/06 02/06 03/06 04/06 05/06 06/06 07/06 08/06 09/06 10/06 11/06 12/06 01/07 02/07 03/07 04/07 05/07 06/07 07/07 08/07 09/07 10/07 11/07 12/07 01/08 02/08 03/08 04/08 05/08 06/08 07/08 08/08 09/08 10/08 11/08 12/08 Source: NBP

26 Supplementary Data Macroeconomic Environment National Fuel Consumption (m tonnes) Sales of new automobiles Source: : Nafta Polska, ARE; : POPiHN Commentary Consumption of fuels in Poland in the period between January and August 2008 increased by 0.2% in comparison with the analogous period of Consumption of Diesel increased by 4.3%. Consumption of gasoline decreased by 4.7% and consumption of LHO fell by 14.5%. Sales of new cars in Q amounted to 84.3 thousand, which is 10.9% more compared to the analogous period of 2007 and 24.3% more in relation to Q At the end of December 2008 the number of unemployed amounted to k people, which accounted for 9.5% of the economically active population. Unemployment Source: Samar Source: GUS 26

27 Stage I Supplementary Data Stages of the 10+ Programme implementation Stage II following addition of gasification Crude oil CDU CDU gasoil VDU gasoil HDS MHC products products Crude oil CDU CDU gasoil VDU gasoil HDS MHC products products VDU H 2 S ASR sulphur VDU H 2 S ASR sulphur vacuum residue ROS SE HFO vacuum residue ROS SE Gasification 1 line hydrogen hydrogen LPG, gasoline, natural gas HGU bitumens hydrogen LPG, gasoil, natural gas HGU bitumens Key to the installations CDU Crude Distillation Unit VDU Vacuum Distillation Unit MHC Mild-Hydrocracking Unit HDS Diesel Hydrodesulphurisation Unit HGU Hydrogen Generation Unit ASR Amine-Sulphur Recovery Unit ROSE Heavy Residue Processing Unit 27

28 Supplementary Data Refining Schedule of commissioning of the 10+ Programme units Implementation up to date Future Schedule IPO funds for 10+ Programme realisation Completion of preliminary basic design Completion of negotiations of EPC contracts Completion of 10+ Programme financing Completion of HDS unit Completion of HGU unit Completion of 10+ Programme realisation Increase of refining capacity from 6.0 to 10.5 mtpa Increase of refining capacity from 4.5 to 6.0 m tonnes per year Placing orders for MHC reactors Signing of final agreements and beginning of 10+ Programme realisation Maintenance shutdown Completion of distillation unit ( CDU / VDU ) Completion of ROSE unit Completion of hydrocracking unit MHC Commentary The implementation of the 10+ Programme is not expected to affect operating activities of the existing Gdańsk refinery units. All interconnections between the new units and the existing refinery are scheduled during the refinery maintenance shutdown between 14th March and 18 April

29 Major Events Refining - financing and security structure of the 10+ Programme Securing of Grupa LOTOS S.A. capital requirements The 10+ Programme long-term financing and working capital financing secured by assets of the Gdańsk refinery (existing installations and installations under construction). Inventory financing security based on a registered pledge on the Grupa LOTOS S.A. inventory. Grupa LOTOS S.A. financing Package 1 Package 2 Loan Contracts signed Loan Contract signed on 27 June 2008 on 20 December Programme financing USD 1.55 bn Working capital financing USD 200 m Collateral: mainly on tangible fixed assets of the Gdańsk refinery (existing and under construction) on Grupa LOTOS S.A. cash flows Financing and refinancing of inventory USD 400 m Collateral: registered pledge on inventory of Grupa LOTOS S.A. Separation of lending, apart from the differing subject of the financing, is economically justified: separate financing for inventory is less expensive (lower commissions and margins) as compared to a single large long-term financing package. 29

30 Supplementary Data Market Conditions in Q Crude oil prices and Brent/Ural differential (USD/b) Key values* Q4 07 Q /05 03/05 05/05 07/05 09/05 11/05 01/06 03/06 05/06 07/06 09/06 11/06 01/07 03/07 05/07 07/07 09/07 11/07 01/08 03/08 05/08 07/08 09/08 11/08 Brent Dtd Ural Brent/Ural differential (right axis) Benchmark refining margin* (USD/bbl) * Rotterdam Brent Source: PVM Dated Brent FOB (USD/bbl) Ural CIF Rotterdam (USD/bbl) Brent/Ural differential** (USD/bbl) Benchmark refining margin (USD/bbl) Cracks Gasoline (USD/t) Diesel (0.005) (USD/t) LHO (USD/t) JET(USD/t) HSFO (USD/t) * Average for period Cracks (USD/tonne) without HSFO /05 03/05 05/05 07/05 09/05 **Benchmark /05 01/06 03/06 05/06 07/06 09/06 11/06 01/07 03/07 05/07 07/07 09/07 11/07 01/08 03/08 05/08 07/08 09/08 11/08 Gasoline Diesel JET LHO 30

31 Supplementary Data Grupa LOTOS on Warsaw Stock Exchange Share price 100% 80% 60% 40% 20% 0% Issue price PLN 29.0 Price 24 February 2009 PLN % -40% Jun-05 Jul-05 Aug-05 Sep-05 Oct-05 Nov-05 Dec-05 Jan-06 Feb-06 Mar-06 Apr-06 May-06 Jun-06 Jul-06 Aug-06 Sep-06 Oct-06 Nov-06 Dec-06 Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09-60% -80% LOTOS WIG 20 Source: WSE Grupa LOTOS on WSE* Market debut data Share issue price Average daily trading volume Average daily value of trading Value of daily trading to market capitalisation Issue price capitalisation Latest capitalisation Change in value since IPO * As of 24 February June 2005 PLN shares PLN m 0.86% PLN 3,297.3 m PLN 1,170.0 m -64.5% Grupa LOTOS in the WIG20 index Grupa LOTOS is a member of the WIG20 blue chip stock index as of 16 September 2005 Rank in WIG20*: 18 Share in WIG20 Cap*: 1.0% 31

32 Legal disclaimer This presentation regarding the consolidated financial results of Grupa LOTOS S.A. after Q ( Presentation") has been prepared by Grupa LOTOS S.A. ("Company"). The Presentation nor any copy hereof may be copied, distributed or delivered directly or indirectly to any person for any purpose without the Company s knowledge and consent. The copying, distribution or delivery of this Presentation to any person in other jurisdictions may be subject to legal restrictions, and the persons who may receive this Presentation should familiarise themselves with any such restrictions and abide by them. Failure to observe such restrictions may be deemed infringement of applicable laws. This Presentation contains neither a complete nor a comprehensive description of the Company. Nor does it present the Company s position or prospects in a complete or comprehensive manner. This Presentation, as well as the attached slides and descriptions thereof may contain forward-looking statements. However, such statements must not be understood as the Company s assurances or projections concerning future expected results of the Company or companies of LOTOS Group. The Company communicates its complete perception of LOTOS Group, presented to the best knowledge of the Management. No warranties or representations can be made as to the comprehensiveness or reliability of the information contained in this Presentation. Neither the Company, nor its Shareholders, subsidiary undertakings, advisers or representatives of such persons shall have any liability that might arise in connection with any use of this Presentation. Furthermore, no information contained herein constitutes an obligation or representation of the Company, its Shareholders, subsidiary undertakings, advisers or representatives of such persons. This Presentation was prepared for information purposes only and is neither a purchase or sale offer, nor a solicitation of an offer to purchase or sell any securities or financial instruments or an invitation to participate in any commercial venture. This Presentation is neither an offer nor an invitation to purchase or subscribe for any securities in any jurisdiction and no statements contained herein may serve as a basis for any agreement, commitment or investment decision, or may be relied upon in connection with any agreement, commitment or investment decision. 32