12 months and Q4 2011 Performance

Biomass Fuels Wind Energy Industrial Outsourcing

February 2012

Contents

2

■ Business Review

► Existing businesses

► Projects in progress

► Projects in development

■ 12 months and Q4 2011 Financial Performance

■ Summary

Lorem Ipsum Padle ImputBusiness Review

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Business Review - Metrics

■ 2011 adjusted EBITDA excluding Wind Farms sale amounted to PLN 56.4 mil. and was

above 2010 level by PLN 3.1 mil.

■ 2011 Net Profit excluding FX on balance sheet valuation and Wind Farms sale amounted to

PLN 32.8 mil. and was above 2010 level by PLN 3.4 mil.

■ 2011 Net Profit including FX on balance sheet valuation and Wind Farms sale amounted to

PLN 69.6 mil. and was above 2010 level by PLN 8.0 mil.

5

Business Review - Highlights

Wind Energy■ Wind Development Pipeline on track■ Construction of WF Łukaszów and WF Modlikowice completed■ In January 2012 WF Łukaszów and WF Modlikowice received PLN 31.7 mil. as the EU subsidy

payment and the application for the next tranche of PLN 22.2 mil. has been accepted for reealization

■ 2011 WF Puck performance excluding unrealized FX above budget

Industrial Outsourcing ■ EC Saturn above budget■ Energy production of EL Mercury significantly ahead of last year■ EC Zakrzów above budget ■ Development of biomass power plants in progress

Biomass Fuels■ Pellet production plants GPBE North and GPBE South below budget due to high price of straw,

with simultaneously poor quality (high humidity)■ Construction of GPBE East in line with schedule

Lorem Ipsum Padle ImputExisting Businesses

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Existing Businesses

■ EC Saturn:► Electricity production at the budget level and above last year

► Higher ESP in comparison to 2010, due to annual reconcilliation with Mondi for 2010 and the current year.

EC Zakrzów: EBITDA above the budget, despite lower revenues resulting from lower demand for heat

■ EL Mercury: Higher performance than last year and budget as a result of higher gas supply from the Coke Plant

■ WF Puck: Better operating results than last year and budget due to better wind conditions

■ GPBE North: Production higher than in 2010, but EBITDA below budget due to the high price of straw, with simultaneously poor quality (high humidity) that results with higher operating

costs■ GPBE South: Production in line with business plan, but EBITDA below budget due to the high price of

straw, with simultaneously poor quality (high humidity) that results with higher operating costs

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Lorem Ipsum Padle Imput

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Projects in Progress

Długi tytuł prezentacji powerpoint

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Projects in Progress – Wind Energy

Start of operations:

Power:

Ownership:

CAPEX:

Financing (debt/equity/grant):

Work progress:

Offtaker:

2010 (December)

35 MW

100% RWE

Approx. PLN 225 mil

72%/28%

Construction

Q4 2010

20 MW

100% Electrabel

Approx. PLN 137 mil

75%/25%

Construction : 2009/2010

Długi tytuł prezentacji powerpointProgress in Wind Farms Implementation

WF Modlikowice [12 turbines; 24 MW] and

WF Łukaszów [17 turbines; 34 MW]

■ Construction of wind farms completed :► Both wind farms have obtained use permit and

energy production concessions. ► Start-up procedures are in progress ► Launch of energy production in December 2012► Since January 2012 the wind farms operate with

increasing capacity

■ Expansion of projects up to total capacity of 86 MW under development

10

0

10

20

30

40

50

60

70

80

90

1. Kw 2. Kw 3. Kw 4. Kw

Wsch.Zach.Płn.

Długi tytuł prezentacji powerpoint

11

Projects in Progress – Biomass Fuels

12

Projects in Progress - Biomass Fuels

■ GPBE East - pellets production facility servicing contract with GDF Suez Polska :

►Land for the plant purchased, building permit granted ►Advanced constructions, most of the processing line equipment purchased►Construction in final stage

►Assembly of processing lines in progress

►Start up scheduled for end of Q1 2012

►Full planned capacity already contracted

►Debt financing organised in 2011

12

13

Projects in Development

14

Milestone reached:

LMP – Local master planED – Environmental decisionGCT – Grid connection termsBP – Building permit

* - Appeal procedure

Wind Farms Development Status

14

F – 42 MWLMP,ED,GCT

E- 38 MWLMP, ED,GCT

D – 105 MWLMP, ED*,GCT

C – 28 MWLMP*, ED*, GCT

G – 50 MWLMP

Projects for construction

Project anticipated for sale in 2012H – 124 MWLMP, ED

A– 26 MWLMP, ED, GCT

Wind farm projects at advanced stages of development

B– 24 MWLMP, ED

I– 30 MWLMP

2012 Biomass Power Plants Development Plan

Biomass Power Plants

■ Biomass Power Plant South: power plant with a capacity of 30 MW connected to the the

electricity grid

► Location of the plant selected; in Mid August 2011 the tender process for land purchase

commenced; Environmental Decision and Grid Connection Terms have been acquired;

Negotations concerning Grid Connection Contract in progress; Technical Construction design

in progress, application for building permit submitted. Launch of operations scheduled for H2

2014.

■ Further investments in biomass power plants► Negotiations with three other industry players to launch further biomass power or heat plants of

85MWt/30MWe in progress.

15

16

12 months and Q4 2011/2010 Financial Performance

17

12 months and Q4 2011/2010 Performance - Revenues excluding Wind Farms sale

12 months:► SM - higher current GE revenues; negative impact of lower RE

prices ► SM – Higher Equity Service Payment due to reconciliation fro 2010

and current year► SM – recognition of profit share in 2008-2009 RE Cerificates sale-

75% recognised in 12 months 2010 and 25% in 12 months 2011► EL Mercury – higher electricity sales and higher valuation of

certficates for reduced emission of CO2

► WF Puck – more energy sold due to much better wind conditions and higher valuation of certficates for reduced emission of CO2

► GPBE – higher sales of pellets► GPBE South – start of operations in January 2011► EC Jeziorna – no revenues from operations (sold in December

2010)

17

Q4 2011/2010:► SM - higher current GE revenues, negative impact of lower

RE prices ► SM – higher current Equity Service Payment ► EL Mercury – higher electricity sale► WF Puck – more energy sold due to much better wind

conditions► GPBE – higher sales of pellets► GPBE South – start of operations in January 2011► EC Jeziorna – no revenues from operations (sold in

December 2010)

2010A 2011A0.0

20.0

40.0

60.0

80.0

100.0

120.0

115.6 137.4

2011/2010 CUMULATIVE REVENUESEXCLUDING WIND FARMS SALE

[PLN mil.]

Q4 2010A Q4 2011A0.0

10.0

20.0

30.0

40.0

29.2 32.5

2011/2010 REVENUESEXCLUDING WIND FARMS SALE

[PLN mil.]

18

12 months and Q4 2011/2010 - Revenues

18

► Impact of revenues excluding Wind Farms sale

► Impact of revenues from wind farms sale (WF Wartkowo, WF Pągów) in 2010 amounted to PLN 60.4 mil. and in 2011 the revenues from wind farms sale (WF Klukowo, Samborsko) amounted to PLN 78.6 mil.

► Impact of revenues excluding Wind Farms sale

► Impact of revenues from wind farms sale (WF Pągów) in Q4 2010 amounted to PLN 42.6 mil. and in 2011 the revenues from wind farms sale (WF Klukowo, Samborsko) amounted to PLN 78.6 mil.

2010A 2011A0.0

50.0

100.0

150.0

200.0

250.0

176.0216.0

2011/2010CUMULATIVE REVENUES

[PLN mil.]

Q4 2010A Q4 2011A0.0

20.0

40.0

60.0

80.0

100.0

120.0

71.8

111.1

Q4 2011/2010 REVENUES [PLN mil.]

12 months and Q4 2011/2010 Performance - Adjusted EBITDA* Excluding Wind Farms sale

12 months:► Impact of revenues► EL Mercury oraz WF Puck – better efficiency► Lower management option costs by PLN 2.6 mil .► Sale of land by the receiver and collection of PLN 4.3 mil.

receivables by EC Wizów► EBITDA in GPBE North and GPBE South lower due to

higher prices of straw and higher production costs due to poor straw quality (high humidity)

► Impact of PLN 3.8 mil. of costs of arbitration proceedings with Mondi in 12 months 2011

► In 2011 no wind farms write-off costs

19Adjusted EBITDA includes interest from the lease of property and shares in the profits of Wind Farms, ,

Q4 2011/2010:► Impact of revenues► WF Puck - better efficiency ► Lower management option costs by PLN 0.7 mil.► EBITDA in GPBE North lower due to higher prices of

straw and higher production costs due to poor straw quality (high humidity)

► Impact of PLN 1.6 mil. of costs of arbitration proceedings with Mondi in Q4 2011

► In 2011 no wind farms write-off costs

2010A 2011A0.0

20.0

40.0

60.0

80.0

53.3 56.4

CUMULATIVE ADJUSTED EBITDA EXCLUDING WIND FARMS

SALE[PLN mil.]

Q4 2010A Q4 2011A0.0

5.0

10.0

15.0

9.9 9.1

Q4 2011/2010ADJUSTED EBITDA EXCLUDING WIND FARMS

SALE [PLN mil.]

12 months and Q4 2011/2010 Performance – Adjusted EBITDA *

20* Adjusted EBITDA includes interest from the lease of property and shares in the profits of Wind Farms, ,

► Impact of Adjusted EBITDA excluding Wind Farms sale► Impact from WF Wartkowo and WF Pągów sale in 2010

on EBITDA amounted to PLN 40.5 mil., whereas the impact on EBITDA from WF Klukowo and Samborsko sale in 2011 amounted to PLN 51.8 mil.

► Impact of Adjusted EBITDA excluding Wind Farms sale► Impact from WF Pągów sale in 2010 on EBITDA

amounted to PLN 31.9 mil., whereas the impact on EBITDA from WF Klukowo and Samborsko sale in 2011 amounted to PLN 51.8 mil.

2010A 2011A0.0

30.0

60.0

90.0

120.0

93.8 108.2

CUMULATIVE ADJUSTED EBITDA[PLN mil.]

Q4 2010A Q4 2011A0.0

20.0

40.0

60.0

80.0

38.0

61.1

Q4 2011/2010ADJUSTED EBITDA

[PLN mil.]

21

12 months► Impact of EBITDA► Total impact of realized negative FX in 12 months

2011 higher than in 12 months 2010 by PLN 3.1 mil.

► Lower income tax by PLN 0.2 mil.► Higher interest rate from cash deposits by PLN

2.5 mil.

12 months and Q4 2011/2010 Performance – Adjusted Net Profit * Excluding Wind Farms sale

21*Adjusted Net Profit exluding unrealized F/X

Q4 2011/2010:► Impact of EBITDA► Total impact of realized neagtive FX in Q4 2011

higher than in Q4 2101 by PLN 1.3 mil.► Higher income tax costs in Q4 2011 by PLN 2.9

mil. Compared to Q4 2011► Higher interest rate from cash deposits by PLN

0.8 mil.

2010A 2011A0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

29.432.8

CUMULATIVE CONSOLIDATED NET PROFIT WITHOUT UNREALISED F/X IMPACT EXCLUIDINFG WIND FAMS SALE

[PLN mil.]

Q4 2010A Q4 2011A0.0

2.0

4.0

6.0

4.33.4

Q4 2011/2010 CONSOLIDATED NET PROFIT WITHOUT UNREALISED F/X IMPACT

EXCLUIDING WIND FARMS SALE[PLN mil.]

22

► Impact of adjusted Net Profit excluding Wind Farms sale► Impact of wind farms sale on Net Profit in 2010

amounted to PLN 32.6 mil., whereas impact from sale of wind farms in 2011 amounted to PLN 35.9 mil.

► Discount on Klukowo/Samborsko Wind farms salr in 2011 amounted to PLN 7.5 mil. (net impact of PLN 6.1 mil.), wheras discount on Wartkowo /Pągów Wind Farms sales in 2011 amounted to PLN 0.4 mil. (net impact of PLN 0.3 mil.)

12 months and Q42011/2010 Performance – Adjusted Net Profit*

22*Adjusted Net Profit exlucing unrealized FX

► Impact of adjusted Net Profit excluding Wind Farms sale► Impact of wind farms sale on Net Profit in Q4 2010

amounted to PLN 25.7 mil., whereas impact from sale of wind farms in 2011 amounted to PLN 35.9 mil.

► Discount on Klukowo/Samborsko Wind farms salr in 2011 amounted to PLN 7.5 mil. (net impact of PLN 6.1 mil.), wheras discount on Pągów Wind Farms sale in 2011 amounted to PLN 0.2 mil. (net impact of PLN 0.1 mil.)

2010A 2011A0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

62.169.0

CUMULATIVE CONSOLIDATED NET PROFIT WITHOUT UNREALIZED F/X IMPACT

[PLN mil.]

Q4 2010A Q4 2011A0.0

10.0

20.0

30.0

40.0

50.0

26.9

39.5

Q4 2011/2010 CONSOLIDATED NET PROFIT WITHOUT UNREALIZED F/X

IMPACT[PLN mil.]

23

12 months► Impact of Adjusted Net Profit► Total impact of unrealized positive FX in 12 months 2011

higher than in 12 months 2010 by PLN 1.1 mil.

12 months and Q4 2011/2010 Performance – Net Profit

23

Q4 2011/2010:► Impact of Adjusted Net Profit► Total impact of unrealized positive FX in Q4 2011 higher

than in Q4 2010 by PLN 1.2 mil.

2010A 2011A0.0

20.0

40.0

60.0

80.0

100.0

61.6 69.6

CUMULATIVE ADJUSTED NET PROFIT[PLN mil.]

Q4 2010A Q4 2011A0.0

10.0

20.0

30.0

40.0

50.0

26.7

40.5

Q4 2011/2010 ADJUSTED NET PROFIT[PLN mil.]

24

Q4► Impact of EBITDA► Total impact of unrealized negative FX in Q4 2010 (PLN - 0.2 mil ) lower than in Q4 2009 (PLN - 1.3 mil. ) by PLN

1.1 mil. YTD

► Impact of EBITDA► Total impact of unrealized negative FX in YTD 2010 (PLN -0.5 mil ) than in YTD 2009 (PLN 2.1 mil. ) by PLN 2.6

mil.

Q4 and YTD 2010/2009 Performance – Net Profit

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2011 Performance vs 2011 Forecast

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Forecasted category 2011 Forecast 2011 Performance Difference Comments

         

EBITDA 98,0 103,9 5,9

EBITDA is impacted by:- higher operating revenues mainly due to better efficiency of

facilities- higher GE prices(mainly in EC Saturn) and higher revenues

on Wind Farm sales- costs odf arbitration proceedings with Modi

       

Adjusted EBITDA 102,0 108,2 6,2

Adjusted EBITDA is impacted by:- higher revenues from operation business, which can be

achieve d through better efficicciency of the facilities - higher Green Energy prices,(mainly in EC Saturn)- higher revenues from wind farm sales - costs of arbitration with Mondi a- interest rate from leasing.

       

Net Profit 67,0 69,6 2,6

- Impact of the above factors on EBITDA- Much lower financial costs than forecasted- impact of unrealized FX on BS valuation- Highrte interests on cash deposits- Impact of discount related to delayued proceeds from

Wind Frams sale

Net Profit without unrealized FX 67,0 69,0 2,0 Impact of EBITDA and financial revenues from unrealized F/X, whic are not included in Forecast

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Forecast 2012

2012 Forecast

26

Position 2012 Forecast

2011 Performance

Change

[PLN mil.] EBITDA 131 104 27 EBITDA including interests from the lease of property and shares in the profit of wind farms 136 108 28

Consolidated Net Profit 74 70 4 Consolidated Net Profit excluding FX on balance sheet valuation 74 69 5

2011 20120

30

60

90

120

150

180

108

136

Adjusted EBITDA[PLN mil.]

CAGR = 26%

2011 20120

20

40

60

80

100

69 74

Adjusted Net Profit[PLN mil.

27

Financing of investment plans

28

Q4► Impact of EBITDA► Total impact of unrealized negative FX in Q4 2010 (PLN - 0.2 mil ) lower than in Q4 2009 (PLN - 1.3 mil. ) by PLN

1.1 mil. YTD

► Impact of EBITDA► Total impact of unrealized negative FX in YTD 2010 (PLN -0.5 mil ) than in YTD 2009 (PLN 2.1 mil. ) by PLN 2.6

mil.

Q4 and YTD 2010/2009 Performance – Net Profit

22

2012 Investment Plan

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Own Equity Needs until 2012 2012 after 2012 SUM

Biomass Power Plant South 1 170 88 221 0 89 391

WF 1 3 657 1 705 56 547 61 909WF 2 2 818 3 228 51 030 57 076

GPBE EAST 8 416 2 213 0 10 629WF Development 0 40 465 119 079 159 544

SUM 16 062 135 832 226 655 378 549

Debt Financinguntil 2012 2012 after 2012 SUM

Biomass Power Plant South 0 19 064 252 382 271 446

WF 1 0 0 185 966 185 966WF 2 0 0 171 416 171 416

GPBE EAST 3 383 11 473 0 14 856WF Development 0 0 0 0

SUM 3 383 30 536 609 765 643 685

CAPEXUntil 2012 2012 after 2012 SUM

Biomass Power Plant South 939 107 285 252 382 360 605

WF 1 3 657 1 705 242 513 247 875WF 2 2 818 3 228 222 446 228 492

GPBE EAST 11 800 13 686 0 25 485WF Development 0 40 465 119 079 159 544

SUM 19 214 166 368 836 420 1 022 002

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Summary

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Summary

■ Adjusted Net Profit and Adjusted EBITDA excluding Wind Farms sales above budget and

higher than last year

■ Progress in Wind Farms development

■ Launch of production in WF Modlikowice and WF Łukaszów

■ Start of construction of Biomass East according to the schedule

■ Progress in development of biomass power plants

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