In January 2015 the Management Board of PGNiG presented a financial forecast based on the business plans of PGNiG Group companies and operating objectives.

The forecast is consistent with the PGNiG Group's Strategy for 2014–2022, announced in December 2014. The challenges facing the Company remain unchanged. In 2015, the most important of these will be the considerable volatility of global hydrocarbon prices and exchange rates, which add to the uncertainty regarding revenues and the future carrying amount of production assets, as well as the cost of gas procurement under long-term contracts with Gazprom Export and Qatargas. Another important challenge is the progressing deregulation of the Polish gas market and the resulting diversification of supplies by PGNiG's key customers, which may force the Company to export its surplus gas at prices which fail to cover the actual cost of procurement under long-term contracts. Execution of an annex to the contract with Qatargas (Current Report No. 119/2014) was a positive development in this respect, allowing PGNiG to mitigate losses in 2015, as well as protecting it against penalty charges for uncollected gas and enabling resale of its full annual LNG volumes on foreign markets.

The financial forecast for 2015 includes:

1. consolidated revenue of the PGNiG Group – about PLN 40.9bn,
2. consolidated EBITDA of the PGNiG Group – about PLN 5.8bn,
3. PGNiG Group's debt ratio of no more than 2.0 × EBITDA.

The above forecast was adopted on the basis of the following assumptions for 2015:

1. production of crude oil, including condensate, and LNG: about 1.27m tonnes
   • including from Norwegian fields: 0.51m tonnes

2. production of natural gas (measured as high-methane gas equivalent): about 4.5 bcm
   • including 0.4 bcm from Norwegian fields

3. gas sales volume: 22.8 bcm
4. PGNiG Group's investment expenditure (without accounting for M&A): about PLN 4.3bn, including:
   • Exploration and Production: PLN 1.9bn
   • Investments in hydrocarbon exploration and production will consume most of the PGNiG Group's capital expenditure. More than PLN 0.8bn will be allocated by PGNiG SA towards the drilling of research, appraisal, exploration, and production wells. The Company plans to complete 38 wells in Poland in 2015, including 15 production wells. PGNiG SA will allocate more than PLN 0.3bn to well development and expansion and modernisation of extraction facilities. The subsidiaries will invest close to PLN 0.6bn, including PLN 0.4bn to be spent by PGNiG Upstream International chiefly on the development of the Gina Krog field and PLN 0.1bn to be spent by Exalo Drilling on modernisation and replacement of production assets.
   • Trade and Storage: PLN 0.5bn
   • Key investments in this segment include further expansion of underground storage facilities, with a strong focus on the salt cavern facilities in Mogilno, and construction of the surface section of the Kosakowo UGSC. PGNiG expects that by the end of 2015 the total capacity of all its storage facilities will reach the target of 3.16 bcm.
   • Distribution: PLN 1.3bn
   • The main investment area in this segment is the roll-out and modernisation of the gas network, with over PLN 0.8bn earmarked for projects related to its expansion and creation of new connections.
   • Generation: PLN 0.6bn
   • Capital expenditure in this segment will focus on projects related to the development and modernisation of the CHP plant, for which a budget of nearly PLN 0.4bn has been set up. At approximately PLN 0.1bn, expenditure on environmental protection will also represent a vital part of this segment's capex plan.

The volume of natural gas sales includes the following companies: PGNiG S.A., PGNiG Obrót Detaliczny and PGNiG Sales & Trading. However, the data on this volume is not comparable with previous years due to higher sales made through the Polish Power Exchange and the fact that PGNiG Obrót Detaliczny commenced operations on August 1st 2014.

PGNiG will monitor the 2015 EBITDA forecast based on management accounts as interim reports are issued. In the same way PGNiG will evaluate the feasibility of the forecast and adjust it if required. The evaluation will be based on forecast performance in a closed period and will account for seasonal changes in results over the year and risk factors inherent in Group operations. Meeting the forecast's objectives depends on a number of factors, some of which are beyond the Company's control. Should any material deviations from the financial forecast occur, PGNiG will release an adjusted forecast. Deviations related to forecast assumptions will not be published unless they result in a material change in the forecast.