PGNiG Supply & Trading GmbH Company Overview November 2019 PGNiG Supply & Trading GmbH A Strong Group › PGNiG S.A.: Heritage of 150 years in the Polish energy market › PGNiG Supply & Trading GmbH (PST): Electricity & natural gas trading, access to European wholesale markets and tailor-made solutions › PST Europe Sales GmbH (PST ES): Fair and transparent energy products for household-, business- and industrial customers › XOOL GmbH: Natural gas for household customers › PST and PST ES are certified climate-neutral companies 2 PGNiG S.A. Polskie Górnictwo Naftowe i Gazownictwo S.A. PGNiG: Polish Oil and Gas Company › Poland’s No. 1 integrated group in the oil and gas sector › 4th biggest industrial Polish company listed at the Warsaw Stock Exchange* › 100% shareholder of PGNiG Supply & Trading GmbH › 25.3k employees and more than Generation & Production 30 subsidiaries worldwide › EBITDA H1 2019: 3,126 PLNbn Trade & Storage › 15,95 bcm gas sold / 1,77 bcm LNG Distribution imports Heat and Power Generation › Shareholders: 28,12% Polish State Treasury 71,88% Free Float * WIG20 quotation chart, taking into account relative changes in percentages in realtion to the PGNiG Exchange Rate (as of March 31st 2019) 3 PGNiG Supply & Trading GmbH Energy With European Self-Reliance PST: PGNiG Supply & Trading GmbH › Officially established in 2010, operative since 2011 › > 50 employees located in Munich, London, Warsaw › Headquarter in Munich, LNG subsidiary in London, branches in Poland, Czech Republic and Austria Bridge to global markets for the group’s gas business › Direct access to all relevant European energy trading markets, exchanges and hubs › Access to the global gas market through the LNG trading branch in London › Off-take of gas from group-owned + external Norwegian production fields Access to production sources and to diverse markets allow for security of supply at fair market prices 4 PGNiG Supply & Trading GmbH Market Coverage and Trading Activities Covered Markets: › Germany › The Netherlands › Austria › Czech Republic › Poland › France › Slovakia › UK › Area D › Belgium › Hungary (transmission) Covered Commodities: › Natural Gas › Power › LNG › Oil › Guarantees of Origin › CO2-Certificates Covered Products: › Standard Products › Structured Products › Cross-border › Storage › Flexibility › Market Access › Logistics & Transport 5 PGNiG Supply & Trading GmbH Key-figures: Trading Trading Volume [TWh] › Natural Gas is PST‘s primary commodity 90 80 Power › PST is the essential trading gearwheel in 70 the PGNiG Group: 60 Gas 50 › Support of PGNiG’s gas portfolio in 40 30 Poland and offtake of gas produced in 20 Norway 10 0 › Ability to manage and optimize LNG 2015 2016 2017 2018 2019* for PGNiG group along its full value chain from PSTs offices in London Financials [k€] › Diverse sourcing of natural gas leads to security of supply and stable market 2015 2016 2017 2018 2019e position Gross Sales 839,169 534,807 1,034,005 1,421,589 1,712,473 › PST Trading activities show a clear upward Costs 840,946 526,313 1,031,707 1,420,984 1,698,451 trajectory over recent years * EBIT -1,777 8,494 2,298 605 2,635 * PST EBIT, not consolidated with PST ES 6 PGNiG Supply & Trading GmbH Trading Activities and Products Index Products Market Access Liquid and transparent Portfolio Service Standard Products Index Products Position Analysis and Loadshapes / Profiles Reporting LNG markets Portfolio Documentation Flexibility Products Individual Client Flexible Contracts Requests Storages Tailored Solutions TempFlex Structured Products Full Supply Tranche Products Balancing Group Small Scale LNG Energy Price Optimization Management Independent Sourcing Filling Stations 24/7-Operations, EDM Load Forecasting 7 PGNiG Supply & Trading GmbH Natural Gas: Strong support for Energy Transition Key Market Insights 2018 Natural Gas › Significant reduction in primary energy consumption in 2018 (3,5%) 6% 24% due to mild temperatures and increase in efficiency 11% Oil Renewables 12% › Natural gas consumption remains strong, (-1,6%) showing Lignite significantly lower losses than all other fossil fuels: Lignite (-2,9%), 14% Hard Coal Oil (-5%) and Hard Coal (-11,2%)*** 34% Nuclear Power › Natural gas is the most popular resource for heating in Germany Primary energy consumption in Germany >> ** Natural Gas remains second biggest fuel source according to BDEW (BMWi, 2018) › Germany imports 94% of its natural gas demand 3% 6% Russia › Supply of pipeline gas dominated by three major sources Norway › LNG plays an important role in avoiding dependency on single 22% 38% Netherlands big players and sustaining security of supply Germany PST, along with PGNiG S.A., actively seeks to diversify supply 31% Others sources and promote the importance of LNG, complementing the 2017 Natural Gas consumption in Germany by green energy transition and providing innovative solutions. country of origin* * Estimates based on BDEW (2017); due to data security concerns, only cumulated values are published from official sources. ** BDEW (2019): Positionierungsstudie Erdgas 2018 *** AGEB (2019): Primärenergieverbrauch Jahr 2018 aktualisiert 27. März 2019 8 PGNiG Supply & Trading GmbH A Global Player In LNG LNG Trading Branch in London › London LNG competence center active since February 2017 › Short- and mid term LNG trading and optimization › PST completed numerous spot transactions since 2016 and is sourcing LNG on a mid-term base from Sabine Pass Terminal Key Hub: LNG Terminal Świnoujście in Poland › Largest LNG regasification facility in the Baltic region › PGNiG S.A. is sole long term regasification capacity holder › Long-term agreements for American LNG in place › LNG supplies on short-/mid-term managed by PST London PGNiG Group with PST as a central gearwheel, has established a global presence on LNG markets 9 PGNiG Supply & Trading GmbH Individual Small Scale Solutions: LNG as Fuel for Trucks, Ships and Industry New technologies allow PST to supply customers with infrastructure and LNG as fuel for trucks, ships and industrial processes 10 PST Europe Sales GmbH Sustainable Energy Products for End Customers PST ES: PST Europe Sales GmbH › 100% subsidiary of PGNiG Supply & Trading GmbH › Founded in 2015 to manage the group’s retail and sales portfolio › PST “purenergy” & “Alpenenergie”- Green electricity and natural gas with option of CO2-neutrality for household and business customers in Germany and Austria › PST “BluEnergy” cooperation with American Express › “Happy Energy” - straightforward, transparent energy for households › XOOL GmbH – 100% owned by PST ES: natural gas retail portfolio for household customers Commitment to a greener world With the global initiative “Plant-for-the-planet”, PST ES will plant a tree for every new “purenergy” and “BluEnergy” customer 11 Thank you very much for your attention! For further information please visit our website: https://pst-energie.com/ .