Half Year 2026 TAURON Polska Energia SA Earnings Call

September 11, 2026

Speaker #1: Witam państwa.

Speaker #2: Good morning, ladies and gentlemen. Welcome to our conference, where we present the results of TAURON Financial Group for the first half of the year.

Olga Kostrzewska-Cichoń: Good morning, ladies and gentlemen. Welcome to our conference where we present the result of TAURON Financial Groups for the H1 of the year. A warm welcome to everyone joining us live here in person and online. My name is Olga Kostrzewska-Cichoń, and I am Head of Media Relations of TAURON Group, and I am going to be the interlocutor of this meeting.

Speaker #1: Witam państwa.

Speaker #2: A warm welcome to everyone joining us live, here in person and online. My name is Olga Kostrzewska-Cichoń, and I'm Head of Media Relations at TAURON Group, and I will be the interlocutor for this meeting.

Speaker #2: Let's welcome Grzegorz Lot, President of the Management Board of TAURON; Krzysztof Surma, Vice President of the Management Board for Finance; Michał Orłowski, Vice President of the Management Board for Asset Management and Development; and Paweł Jabłoński, Executive Director of Portfolio Management.

Olga Kostrzewska-Cichoń: Let's welcome Grzegorz Lot, President of the Management Board of TAURON Energia, Krzysztof Surma, Vice President of the Management Board for Finance, Michał Orłowski, Vice President of the Management Board of Asset Management and Development, and Paweł Jabłoński, Executive Director of Portfolio Management. We have also presented a speech by Krzysztof Zawadzki, Vice President of the Management Board for Trade. Our meeting is going to be divided into two parts.

Speaker #2: We have also presented a speech by Krzysztof Zawadzki, Vice President of the Management Board for Trade. Our meeting is going to be divided into two parts.

Olga Kostrzewska-Cichoń: We have also presented a speech by Krzysztof Zawadzki, Vice President of the Management Board for Trade. Our meeting is going to be divided into two parts. Firstly, we are going to present our results, and then, of course, you are welcome to ask any questions in the second part, so this will be Q&A session. Mr. Lot, the floor is yours.

Speaker #2: First, we are going to present our results, and then of course you are welcome to ask any questions in the second part, so this will be the Q&A session.

Olga Kostrzewska-Cichoń: Firstly, we are going to present our results, and then, of course, you are welcome to ask any questions in the second part, so this will be Q&A session. Mr. Lot, the floor is yours.

Speaker #2: Mr. Lot, the floor is yours.

Speaker #3: Ladies and gentlemen, I'll be brief. The first half-year has been very dynamic. You might notice it already by looking at us. And we're proud of what we've been doing, because we made a commitment when we announced our strategy: our hashtag is #WeDeliver, and this is crucial.

Grzegorz Lot: Ladies and gentlemen, I will be brief. H1 has been very dynamic. You might notice it already by looking at us, and we are proud of what we have been doing because we have made a commitment when we announced our strategy. Our hashtag is, "We deliver," and this is crucial. This is visible in our company. We have been delivering. We will get into details afterwards. Distribution has been carrying out its projects, and we have been converting quite a lot of processes right now, and we have a focus on local content in it, so the AMI readers procurement, so we are choosing the contractor by the price, but also based on the local context. Is it easy? Well, it is doable. It is challenging, but doable, so we have been implementing these elements in a systemic way.

Speaker #3: And this is visible in our company. We've been delivering—we will get into details afterwards. Distribution has been carrying out its projects, and we've been converting quite a lot of processes.

Grzegorz Lot: Distribution has been carrying out its projects, and we have been converting quite a lot of processes right now, and we have a focus on local content in it, so the AMI readers procurement, so we are choosing the contractor by the price, but also based on the local context. Is it easy? Well, it is doable. It is challenging, but doable, so we have been implementing these elements in a systemic way.

Speaker #3: Right now, we have a focus on local content in it, so for the AMI readers procurement, we are choosing the contractor not only by price but also based on the local context.

Speaker #3: Is it easy? It's doable. It's challenging, but doable. So, we've been implementing these elements in a systemic way. And we are extremely proud of one thing in Distribution, and this is apart from our everyday work—it's the customers, the clients.

Grzegorz Lot: We are extremely proud of one thing in distribution, and this is apart from our everyday work, it is the customers, clients. In our strategy, we want to grow, the distribution in a dynamic way, CapEx and projects, but the customers matter. 75% of our connection requests have been done online. This is something that makes us stand out. This is what we offer to customers, and it is a great value, I think. I could talk quite a lot about customers, but let's leave it for Q&A. One very important thing for us is, the renewables. 1 giga of connected capacity. Miejska Górka has been speeding up. It was planned for autumn, but in June already it was executed and new units will be launched soon. This affects our results, but also shows that we are very determined to make it operational.

Speaker #3: In our strategy, we want to grow the distribution in a dynamic way—Capex and projects are important, but the customers matter. Seventy-five percent of our connection requests have been done online.

Speaker #3: And this is something that makes us stand out. This is what we offer to customers, and it's a great value, I think. I could talk quite a lot about customers, but let's leave it for Q&A.

Speaker #3: One very important thing for us is the renewables. One gigawatt of connected capacity. Miejska Górka has been speeding up. It was planned for autumn, but in June already it was executed.

Grzegorz Lot: I could talk quite a lot about customers, but let's leave it for Q&A. One very important thing for us is, the renewables. 1 giga of connected capacity. Miejska Górka has been speeding up. It was planned for autumn, but in June already it was executed and new units will be launched soon. This affects our results, but also shows that we are very determined to make it operational.

Speaker #3: And soon. This affects our results, but also shows that we are very determined to connect it and make it operational. And there is one very important, sensitive thing for us.

Speaker #3: This is energy warehouses. We know that the first one to come to this market will be the winner. We can see one important challenge here.

Grzegorz Lot: There is one very important and sensitive thing for us, this is energy warehouses. We know that the first one to come to this market will be the winner. We can see one important challenge here. This is the cost. The price of electricity will be going down, but the cost of the profile is something to handle. Energy storage is crucial here. It is important for the stabilization of the grid. Now heat. Marcin Staniszewski is with us here, so he is at your disposal. We won the cogeneration auction over PLN 3 billion for projects that are underway and tenders that are in the pipeline for the new Łagisza. It is going to be electricity and heat combined block, a very modern one with a reasonable price. It is already underway, and it is also in line with the strategy. Our customers, clients, again, I am very enthusiastic about it.

Speaker #3: This is the cost. The price of electricity will be going down, but the cost of the profile is something we need to handle. Energy storage is crucial here.

Speaker #3: It's important for the stabilization of the grid. Now, heat. Martin Staniszewski is with us here, so he's at your disposal. We want the cogeneration auction—over $3 billion—for projects that are underway and tenders that are in the pipeline.

Grzegorz Lot: Now heat. Marcin Staniszewski is with us here, so he is at your disposal. We won the cogeneration auction over PLN 3 billion for projects that are underway and tenders that are in the pipeline for the new Łagisza. It is going to be electricity and heat combined block, a very modern one with a reasonable price. It is already underway, and it is also in line with the strategy. Our customers, clients, again, I am very enthusiastic about it.

Speaker #3: For the new Łagisza, it's going to be an electricity and heat combined block, a very modern one with a reasonable price. It's already underway, and it's also in line with the strategy.

Speaker #3: Our customers, clients—again, I'm very enthusiastic about it. So a few years ago, we made the bid, and it's three years into this already.

Speaker #3: TAURON New Energy has a 9-year price guarantee. We are now reaching 400,000 customers; 385,000 customers contracted energy for 9 years. So if someone asks about the price, for households, well, it's totally unpredictable.

Grzegorz Lot: A few years ago, we made the bid, and it is three years into this already. TAURON Nowa Energia, a nine-year price guarantee. We are now reaching 400,000 customers, 385,000 customers contracted energy for nine years. If someone asks for the price for households, well, it is unpredictable totally. But in our company, it is clear for our customers. Almost 400,000 customers. Heat pumps, et cetera, are perfect solutions for larger consumers. Someone might ask, and if the price falls down? Well, every consumer in Poland can leave the contract, the fixed-term contract, without penalties and choose any other product. We are convinced here, we are not afraid. We do not want to corner our customers. To the contrary, we want to compete when security and quality, 400,000. Dynamic tariffs are also an important, interesting thing. Ninefold growth.

Speaker #3: But in our company, it’s clear for our customers—almost 400,000 customers. Heat pumps, etc.; perfect solutions for larger consumers. Someone might ask, "And if the price falls down?" Well, every consumer in Poland can leave the fixed-term contract without penalties and choose any other product.

Speaker #3: We are convinced here. We are not afraid. We don't want to corner our customers. On the contrary, we want to compete when it comes to security and quality.

Grzegorz Lot: Well, every consumer in Poland can leave the contract, the fixed-term contract, without penalties and choose any other product. We are convinced here, we are not afraid. We do not want to corner our customers. To the contrary, we want to compete when security and quality, 400,000. Dynamic tariffs are also an important, interesting thing. Ninefold growth.

Speaker #3: 400,000. Dynamic tariffs are also an interesting and important thing. 9-fold growth. The total amount is still small compared to the total base of customers, but this is the future for us.

Speaker #3: Interest has been growing. We have launched a new product: dynamic traffic with a tariff that has a price cap, because we can see that customers have their concerns.

Grzegorz Lot: The total amount is still small compared to the total base of the customers, but this is the future for us. The interest has been growing. We have launched a new product. This is the dynamic tariff with a price cap. Because we can see that customers have their concerns. The price of electricity might go down PLN 495, and for some it is even PLN 300. So we have a cap. So we communicate that you can save a lot of money if you change your habits, and this will be a gain for you. Also one very important thing for us. Over 40,000 new customers, a huge growth with the cheap hours. It is an upgrade of the dynamic tariff. If you do not want to be directly involved, we provide a solution of very specific prices and very specific hours of the day, of the year.

Speaker #3: The price of electricity might go down to 495, and for some it's even 300. So we have a cap. So we communicate that you can save a lot of money.

Speaker #3: If you change your habits, this will be a gain for you. And also one very important thing for us: over 40,000 new customers—a huge growth.

Grzegorz Lot: So we communicate that you can save a lot of money if you change your habits, and this will be a gain for you. Also one very important thing for us. Over 40,000 new customers, a huge growth with the cheap hours. It is an upgrade of the dynamic tariff. If you do not want to be directly involved, we provide a solution of very specific prices and very specific hours of the day, of the year.

Speaker #3: So, the cheap hours—it's an upgrade of the dynamic tariff. If you don't want to be directly involved, we provide a solution of very specific prices and very specific hours of the day, of the year.

Speaker #3: Customers: it's very clear for them when they can make savings, and the cheap weekends. And this has attracted many new customers. Over 51% of TAURON customers are already outside of the tariffs and in the products.

Grzegorz Lot: Customers, it is very clear for them when they can make savings. The Tanie Weekendy. This has attracted many new customers. Over 51% of TAURON customers are already outside of the tariffs and in the product. So this is hard work to work together with the customers to convince them to join this transition. For us, it is money. For customers, it is security and price stability. It is very important for what we want to do, which is switching from the classical model to the model based on dynamic tariffs, renewables, and energy storage, customer engagement. We want to lower the cost of the profile, and you can only achieve it through shared engagement. This is what guarantees lower prices. Also, digitization is our continued project. Over 50% here. It is small font here, so you can see it better in the chart.

Speaker #3: So this is hard work—to work together with the customers to convince them to join this transition. For us, it's money. For customers, it's security.

Speaker #3: And price stability. It's very important for what we want to do, which is switching from the classical model to a model based on dynamic tariffs, renewables, and energy storage customer engagement.

Grzegorz Lot: It is very important for what we want to do, which is switching from the classical model to the model based on dynamic tariffs, renewables, and energy storage, customer engagement. We want to lower the cost of the profile, and you can only achieve it through shared engagement. This is what guarantees lower prices. Also, digitization is our continued project. Over 50% here. It is small font here, so you can see it better in the chart.

Speaker #3: We want to lower the cost of the profile, and you can only achieve it through shared engagement, and this is what guarantees lower prices.

Speaker #3: Also, digitization is our continued project. Over 50% here. It's a small font here, so you can see it better in the chart. So, this is the number of customers who already are serviced online.

Speaker #3: Invoices. Contact point. Some people are very willing to do it, and we've had a strong focus on developing the digital channel—the internet and smartphones.

Grzegorz Lot: This is the number of customers who already are serviced online. Invoices, contact points. Some people are very willing to do it, and we have had a strong focus on developing the digital channel, the internet and smartphones. Last but not least, profitable transition and just transition. Two years ago, when we talked about it, we talked about what it would be like. Now, we know that we won the capacity auction for the previous year, and it was a very good decision. It was very profitable for us, and also very good for the system stabilization. Now, a huge capacity auction, which also was won for all the units, apart from the backup ones. I am not going to get into details now. It is huge money and work for the next year.

Speaker #3: Last but not least, profitable transition and just transition. Two years ago, when we talked about it, we talked about what it would be like.

Speaker #3: Now, we know that we wanted the capacity action for the previous year, and it was a very good decision. It was very profitable for us.

Speaker #3: And also very good for system stabilization. Now, a huge capacity auction, which also was won for all the units—apart from the backup ones. I'm not going to get into details now.

Grzegorz Lot: Now, we know that we won the capacity auction for the previous year, and it was a very good decision. It was very profitable for us, and also very good for the system stabilization. Now, a huge capacity auction, which also was won for all the units, apart from the backup ones. I am not going to get into details now. It is huge money and work for the next year.

Speaker #3: It's huge money and work for the next year. This is also a message to local communities that the units will be operational in the next year.

Speaker #3: We have embarked on huge transition projects. I would like to invite you to Katowice on the 1st of October for the Energy Days roundtable. We will show.

Grzegorz Lot: This is also a message to local communities that the units will be operational in the next year. We have embarked on huge transition projects. I would like to invite you to Katowice on 1 October, the Energy Days Roundtable. We will show you not the dreams, we will show you the specific plans for the transition of the sites which are now conventional. Siersza, Jaworzno, Łaziska. I am not going to mention all of them. There is a specific plan for every site, for OCGT and conventional solutions. I do not want to spoil it, but everything is planned and measured, and it will be announced there. This shows our approach to transition.

Speaker #3: Not the dreams. We will show you the specific plans for the transition of the sites which are now conventional. So, Jaworzno, Łaziska—I'm not going to mention all of them.

Speaker #3: So, there is a specific plan for every site, for OCGT and conventional solutions. I don't want to spoil it, but it's everything. Everything is planned and measured.

Grzegorz Lot: I am not going to mention all of them. There is a specific plan for every site, for OCGT and conventional solutions. I do not want to spoil it, but everything is planned and measured, and it will be announced there. This shows our approach to transition.

Speaker #3: And it will be announced there. This shows our approach to transition. That's why, two or three years ago, we undertook to guarantee business continuity, because we want the business to continue to be profitable so that our shareholders remain interested in the project.

Grzegorz Lot: That is why two, three years ago, we undertook to guarantee business continuity because we want the business to continue to be profitable so that our shareholders remain an interest in the project, and this is how we deliver on it. I am very proud. For our team. This is largely an achievement by my colleagues, so an applause. The tender has been announced. It was difficult to buy the gas turbines. A lot of publicity, but it is a closed topic now. We have contracted two turbines instead of one. Two times 315 OCGT near Woźny. It is an ongoing project that will be delivered as planned. So much from me, and later on, I will be at your disposal during the Q&A.

Speaker #3: And this is how we deliver on it. I'm very proud of our team. This is largely an achievement by my colleagues. So, an applause—we, the tender has been announced.

Speaker #3: It was difficult to buy the gas turbines. There was a lot of publicity, but it's a closed topic. Now we have contracted two turbines instead of one.

Grzegorz Lot: The tender has been announced. It was difficult to buy the gas turbines. A lot of publicity, but it is a closed topic now. We have contracted two turbines instead of one. Two times 315 OCGT near Woźny. It is an ongoing project that will be delivered as planned. So much from me, and later on, I will be at your disposal during the Q&A.

Speaker #3: Two times 315 OCGT, Jaworzno. It's an ongoing project that will be delivered as planned. That's all from me for now, and later on, I will be.

Speaker #3: This concludes the Q&A. Now we will move on to Krzysztof Zawadzki's speech, addressed to us. Good morning, ladies and gentlemen. Let me begin with the energy market.

Speaker #3: And the key factors shaping current market conditions: we continue to see wider intraday price ranges in both the spot and balancing markets. To give you an example, the highest hourly day-ahead price recorded since the 1st of January.

Olga Kostrzewska-Cichoń: Now we are going to see the Krzysztof Zawadzki speech addressed to us. Good morning, ladies and gentlemen. Let me begin with the energy market and the key factors shaping current market conditions. We continue to see wider intraday price ranges in both the spot and balancing markets. To give you an example, the highest hourly day-ahead price recorded since 1 January this year was PLN 2,560 per megawatt hour, while the lowest was minus PLN 1,309 per megawatt hour. The widest price spread within a single day during H1 this year was PLN 2,409 per megawatt hour. The figures illustrate a shift in the way the market operates. Short-term fluctuations in renewable generations are playing an increasingly important role.

Olga Kostrzewska-Cichoń: Now we are going to see the Krzysztof Zawadzki speech addressed to us.

Krzysztof Zawadzki: Good morning, ladies and gentlemen. Let me begin with the energy market and the key factors shaping current market conditions. We continue to see wider intraday price ranges in both the spot and balancing markets. To give you an example, the highest hourly day-ahead price recorded since 1 January this year was PLN 2,560 per megawatt hour, while the lowest was minus PLN 1,309 per megawatt hour.

Speaker #3: This year was 2,560 per megawatt hour. While the lowest was minus 1,309. Per megawatt hour. The widest price spread within a single day during the first half of this year was 2,409 per megawatt hour.

Speaker #3: This figure illustrates a shift in the way the market operates. Short-term fluctuations in renewable generation are playing an increasingly important role. They also create price risk, which means we need to actively manage our portfolio hedges and trading position.

Krzysztof Zawadzki: The widest price spread within a single day during H1 this year was PLN 2,409 per megawatt hour. The figures illustrate a shift in the way the market operates. Short-term fluctuations in renewable generations are playing an increasingly important role.

Speaker #3: We can also observe further growth in PV capacity. According to PSE, it reached 27.6 at the end of the first half, up from 23.7—an increase of around 16%.

Krzysztof Zawadzki: They also create price risk, which means we need to actively manage our portfolio hedges and trading position. We can also observe the further growth in PV capacity. According to Polskie Sieci Elektroenergetyczne, it reached 27.6 at the end of H1, up from 23.7, an increase of around 16%. The scale of these new connections is increasingly the influence of solar generation on electricity prices, particularly in the afternoon. This widens the gap between daytime and evening prices and makes balancing the national power system more challenging. We are also observing a decline in the number of hours of negative prices, 237 hours last year compared with 253 in H1 of this year. We expect the full-year total to be between 250 to 300 hours.

Speaker #3: The scale of these new connections is increasing the influence of solar generation on electricity prices, particularly in the afternoon. And this is why: the gap between daytime and evening prices makes balancing the national power system more challenging.

Speaker #3: We are also observing a decline in the number of hours of negative prices: 237 hours last year, compared with 253 in the first half of this year.

Krzysztof Zawadzki: This widens the gap between daytime and evening prices and makes balancing the national power system more challenging. We are also observing a decline in the number of hours of negative prices, 237 hours last year compared with 253 in H1 of this year. We expect the full-year total to be between 250 to 300 hours.

Speaker #3: We expect the full-year total to be between 250 and 300 hours. The number of hours of negative prices fell by 19% year on year, but.

Speaker #3: Negative prices remain an important feature of the electricity market. The problem of periodic generation surpluses has not disappeared, although they were pronounced in the first half of 2025.

Krzysztof Zawadzki: The numbers of hours of negative prices fell by 19% year-on-year, but negative prices remain an important feature of the electricity market. A problem of periodic generation surpluses have not disappeared, although they were less pronounced than in H1 2025. We are also observing higher clean dark spreads, so coal costs have fallen and electricity prices have risen, while the cost of CO2 emissions allowances has increased. This means that hard coal-fired generation was more competitive relative to gas-fired generation in H1 of this year. Higher electricity output, compared with H1 of last year, supports this assessment. Overall, the economics of coal-fired generation improved significantly year-on-year. Average temperatures during the heating season were lower, so this translated into higher heat sales and better utilization of our heating cogeneration assets. Conditions for wind generation, however, were considerably less favorable.

Speaker #3: We are also observing higher clean dark spreads. So, coal costs have fallen and electricity prices have risen, while the cost of CO2 emissions allowances has increased.

Speaker #3: This means that hard-coal-fired generation was more competitive relative to gas-fired generation in the first half of this year, with higher electricity output compared with the previous period.

Speaker #3: The half of last year supports this assessment. Overall, the economics of coal-fired generation improved significantly year on year. Average temperatures during the heating season were lower, so this translated into higher heat sales and better utilization of our heating cogeneration assets.

Krzysztof Zawadzki: This means that hard coal-fired generation was more competitive relative to gas-fired generation in H1 of this year. Higher electricity output, compared with H1 of last year, supports this assessment. Overall, the economics of coal-fired generation improved significantly year-on-year. Average temperatures during the heating season were lower, so this translated into higher heat sales and better utilization of our heating cogeneration assets. Conditions for wind generation, however, were considerably less favorable.

Speaker #3: Conditions for wind generation, however, were considerably less favorable. In fact, wind conditions were the worst in 10 years. Capacity factor fell from 24.2% year-on-year, and generation was down 4.6%.

Speaker #3: This adversely affected the result of the EURAS low-emission generation in the national electricity mix. Hydropower generation increased slightly, from 31.2 to 31.9. However, July and August demonstrated how difficult hydrological conditions in Poland have become.

Krzysztof Zawadzki: In fact, wind conditions were the worst in 10 years. Capacity factor fell from 24.2% year-on-year, and generation was down 14.6%. This adversely affected the result of the RES segment and reduced the share of low-emission generation in the national electricity mix. Hydropower generation increased slightly from 31.2 to 31.9. However, July and August demonstrated how difficult hydrological conditions in Poland have become. Taking those months into account, we expect full-year generation to be broadly in line with last year. The full-year outlook, therefore, remains modest. As I mentioned, weak output in July and August caused by difficult hydrological conditions limit the scope for generation growth in H2. Overall, renewable generation fell by 0.9% in absolute terms.

Speaker #3: So, taking those months into account, we expect full-year generation to be broadly in line with last year. The full-year outlook, therefore, remains modest. As I mentioned, weak output in July and August, caused by difficult hydrological conditions, limits the scope for generation growth in the second half.

Krzysztof Zawadzki: However, July and August demonstrated how difficult hydrological conditions in Poland have become. Taking those months into account, we expect full-year generation to be broadly in line with last year. The full-year outlook, therefore, remains modest. As I mentioned, weak output in July and August caused by difficult hydrological conditions limit the scope for generation growth in H2. Overall, renewable generation fell by 0.9% in absolute terms.

Speaker #3: Overall, renewable generation fell by 0.9% in absolute terms. This reflects a significant improvement in renewable output in the second quarter following a quite clear decline.

Speaker #3: 1.1% in the first quarter. However, when we take the increase in installed capacity into account, output per megawatt of capacity was down by around 10%.

Krzysztof Zawadzki: This reflects a significant improvement in renewable output in Q2, following a quite clear decline of 1.1% in Q1. However, when we take the increase in installed capacity into account, output per megawatt of capacity was down by around 10%. It means the benefits of additional capacity were therefore largely offset by less favorable generation conditions, particularly for wind. Electricity generations from fossil fuels increased by 7.4%, driven by higher output from gas and hard coal. This helped compensate for weaker renewable generation and meet growing domestic electricity demand. Hard coal-fired generation increased by around 10%, making up for lower renewable output. This confirms that conventional generation continues to play a key role in balancing the national power system when renewable availability is lower. Domestic electricity consumption increased by 4.6% year-on-year. Over the same period, GDP growth averaged around 3.65%.

Speaker #3: This means the benefits of additional capacity were therefore largely offset by less favorable generation conditions, particularly for wind. Electricity generation from fossil fuels increased by 7.4%.

Speaker #3: Driven by higher output from gas and hard coal, this helped compensate for weaker renewable generation and meet growing domestic electricity demand. Hard coal-fired generation increased by around 10%, making up for lower renewable output.

Speaker #3: Generation continues to play a key role in balancing the national power system when renewable availability is lower. Domestic electricity consumption increased by 4.6% year on year, and over the same period, GDP growth averaged around 3.65%.

Krzysztof Zawadzki: This helped compensate for weaker renewable generation and meet growing domestic electricity demand. Hard coal-fired generation increased by around 10%, making up for lower renewable output. This confirms that conventional generation continues to play a key role in balancing the national power system when renewable availability is lower. Domestic electricity consumption increased by 4.6% year-on-year. Over the same period, GDP growth averaged around 3.65%.

Speaker #3: At the same time, PMI and the detector of economic conditions were down by around 1.4 points. Manufacturing PMI remained below 50. Throughout the first half, a...

Speaker #3: Ranging around 48.1 in the first half of 2026, manufacturing is therefore not keeping pace with the broader economy. Another important development concerns cross-border electricity flows.

Krzysztof Zawadzki: At the same time, PMI, an indicator of economic condition, was down by around 1.4 points. Manufacturing PMI remained below 50 throughout H1, averaging around 48.1 in H1 2026. Manufacturing is therefore not keeping pace with the broader economy. Another important development concerns cross-border electricity flows. At about 1 TWh year on year, reaching nearly 2 TWh for H1 of the whole. Exports exceeded imports in every month except February. This balance reflects price differences between Poland and neighboring markets, particularly Germany. It also reflects renewable generation across the region, the availability of domestic generating units, and the cost of fuels and CO2 commission allowances. The conclusion is that these cross-border flows reflect the growing competitiveness of domestic generation and high capacity utilization. The scale of dispatching in Poland is also increasing.

Speaker #3: At about one watt-hour year on year, reaching nearly 2 terawatt-hours for the first half of the year. So, exports exceeded imports in every month except February.

Speaker #3: This balance reflects price differences between Poland and neighboring markets, particularly Germany. It also reflects renewable generation across the region, the availability of domestic generating units, and the cost of fuels and CO2 emission allowances.

Speaker #3: So the conclusion is that these cross-border flows reflect the growing competitiveness of domestic generation and high-capacity utilization. The scale of dispatching in Poland is also increasing.

Krzysztof Zawadzki: This balance reflects price differences between Poland and neighboring markets, particularly Germany. It also reflects renewable generation across the region, the availability of domestic generating units, and the cost of fuels and CO2 commission allowances. The conclusion is that these cross-border flows reflect the growing competitiveness of domestic generation and high capacity utilization. The scale of dispatching in Poland is also increasing.

Speaker #3: Compensation paid by the operator to renewable generators does not cover all the revenue that we lost from the affected installation. It is calculated using balancing market prices rather than the prices under the commercial contracts.

Speaker #3: In the first half of this year, dispatching reached almost 1.2 terawatt-hours, which is an increase of 22% year on year. This is a substantial increase.

Krzysztof Zawadzki: Compensation paid by the operator to renewable generators does not cover all the revenue that we lost by the affected installation. It is calculated using balancing market prices rather than the prices under the commercial contract. In H1 of this year, the dispatching reached almost 1.2 TWh, which is an increase of 42% year on year. This is a substantial increase. It reflects the growing challenges of integrating renewables into the national power system. Contributing factors may include local grid constraints, inefficient management of surplus generation, and transmission limitations. For electricity trading, the main implication is a greater risk of differences between planned and actual generation. An interesting example is that the amount of the electricity would be enough to cover the yearly consumption.

Speaker #3: It reflects the growing challenges of integrating renewables into the national power system. Contributing factors may include local grid constraints, efficient management of surplus generation, and transmission limitations.

Speaker #3: For electricity trading, the main implication is a greater risk of differences between planned and actual generation. An interesting example is that the amount of the electricity would be enough to cover the yearly consumption, so to put that into perspective, it would be enough to cover.

Krzysztof Zawadzki: Contributing factors may include local grid constraints, inefficient management of surplus generation, and transmission limitations. For electricity trading, the main implication is a greater risk of differences between planned and actual generation. An interesting example is that the amount of the electricity would be enough to cover the yearly consumption.

Speaker #3: A year's worth of electricity consumption by Polish State Railways, for example PKP, or six months' worth of electricity consumed by all residents of the Górnośląska-Zagłębiowska Metropolis. Now let me turn to our generation portfolio.

Speaker #3: Our electricity generation increased by 24% year on year. Conventional units were the main driver, with output up—87% of our total net generation. Renewable generation increased.

Krzysztof Zawadzki: To put the development into perspective, it would be enough to cover a full year of electricity consumption by Polish State Railways, for example, PKP, or six months of electricity consumption by all residents of Górnośląsko-Zagłębiowska metropolis. Now let me turn to our generation portfolio. Our electricity generation increased by 24% year on year. Conventional units were the main driver, with output up 87 of our total net generation. Renewable generation increased only slightly by 0.3% year on year. However, we should remember that on 30 June last year, we installed renewable capacity and it stood at 874 GW, and reached 1,210 GW by the end of H2 of this year, which is an increase of 39%, and output per unit of installed capacity, however, fell by around 27%. H1 shows a widening gap between growth in renewable capacity and the actual growth in generation.

Speaker #3: Slightly by 0.3% year on year. However, we should remember that on 30 June last year, we installed renewable capacity, and it stood at 874 gigawatts and reached 1,200.

Krzysztof Zawadzki: Conventional units were the main driver, with output up 87 of our total net generation. Renewable generation increased only slightly by 0.3% year on year. However, we should remember that on 30 June last year, we installed renewable capacity and it stood at 874 GW, and reached 1,210 GW by the end of H2 of this year, which is an increase of 39%, and output per unit of installed capacity, however, fell by around 27%. H1 shows a widening gap between growth in renewable capacity and the actual growth in generation.

Speaker #3: 10 gigawatts by the end of the second half of this year, which is an increase of 13.9%. Output per unit of installed capacity, however, fell by around 27%.

Speaker #3: The first half shows a widening gap between growth in renewable capacity and actual growth in generation. And this underlines the need to expand grid infrastructure, above all to build energy storage facilities that would allow us to store surplus electricity when generation is higher and make use of it later.

Speaker #3: At the same time, improved competitiveness allows us to increase output from conventional units by 28%. This again demonstrates the importance of TAURON Group's diversified generation portfolio.

Speaker #3: Heat generation increased by 8%, supported by lower temperatures during this year's heating season, as I mentioned earlier. CO2 emissions rose by around 24% as a result of higher conventional generation.

Krzysztof Zawadzki: This underlines the need to expand grid infrastructure and above all, to build energy storage facilities that would allow us to store surplus electricity when generation is higher and make use of it later. At the same time, improved competitiveness allow us to increase output from conventional units by 28%. This again demonstrates the importance of TAURON Group's diversified generation portfolio. Heat generation increased by 8%, supported by lower temperatures during this year's heating season, as I mentioned earlier. CO2 emissions rose by around 24% as a result of higher conventional generation. We also recorded an increase of around 7% in the average cost per unit of CO2 emitted. Together, 24% increase in emissions and 7% increase in average emissions cost mean that those costs have a greater impact on the generation segment's result. Coal consumption also increased by 25%, reflecting higher output from our coal-fired plants.

Speaker #3: We also recorded an increase of around 7% in the average cost per unit of CO2 emitted. Together, a 24% increase in emissions and a 7% increase in the average emissions cost mean that those costs have a greater impact on the generation segment's result.

Krzysztof Zawadzki: CO2 emissions rose by around 24% as a result of higher conventional generation. We also recorded an increase of around 7% in the average cost per unit of CO2 emitted. Together, 24% increase in emissions and 7% increase in average emissions cost mean that those costs have a greater impact on the generation segment's result. Coal consumption also increased by 25%, reflecting higher output from our coal-fired plants.

Speaker #3: Coal consumption also increased by 25%, reflecting higher output from our coal-fired plants. At the same time, the average unit cost of coal consumed fell year-on-year.

Speaker #3: It was this reduction that helped improve the competitiveness of our coal assets. Renewables account for 13% of net generation, down 3.1 percentage points compared with the first half of last year.

Speaker #3: As in the wider market, unfavorable weather conditions reduced output from our renewable assets relative to their installed capacity, and this limited renewable generation despite the increase in capacity.

Krzysztof Zawadzki: At the same time, the average unit cost of coal consumed fell year-on-year. It was this reduction that helped improve the competitiveness of our coal assets. Renewables accounted for 13% of net generation, down 3.1 percentage points compared with the H1 of last year. As in the wider market, unfavorable weather conditions reduced output from our renewable assets relative to their installed capacity, and this limited renewable generation despite the increase in capacity. Renewable generation curtailment increased by 31% to almost 62 GWh. The ratio of curtailed generation to net generation also increased from 3.9 in the H1 of last year to 7.1 in the H1 of this year. The volume of redispatching affecting our renewable units rose particularly sharply to more than five times its previous level. This is also reflected in the compensation due to us.

Speaker #3: Renewable generation curtailment increased by 31%, to almost 62 gigawatt-hours. The ratio of curtailed generation to net generation also increased—from 3.9% in the first half of last year to 7.1% in the first half of this year.

Speaker #3: The volume of dispatching affecting our renewable units rose particularly sharply, to more than five times its previous level. This is also reflected in the compensation due to us.

Krzysztof Zawadzki: Renewable generation curtailment increased by 31% to almost 62 GWh. The ratio of curtailed generation to net generation also increased from 3.9 in the H1 of last year to 7.1 in the H1 of this year. The volume of redispatching affecting our renewable units rose particularly sharply to more than five times its previous level. This is also reflected in the compensation due to us.

Speaker #3: Estimated compensation receivable for dispatching in the first half of this year has already reached 80% of the estimated total for the whole of 2025. That gives a clear indication of the scale of this issue.

Speaker #3: Turning to the availability of our generating units, our hydropower plants maintain high availability, with only a slight decline year on year. Our wind farms have improved their availability and continue to maintain a high level of technical availability.

Speaker #3: Our solar plants experienced a slight decline, but availability remained high. Coal-fired plants, particularly those at TAURON, saw increased availability in Q4 compared with last year, demonstrating a high level of operational readiness.

Krzysztof Zawadzki: Estimated compensation receivable for dispatching the H1 of this year have already reached 80% of the estimated total for the whole 2025. That gives a clear indication of the scale of this issue. Turning to the availability of our generating units, our hydropower plants maintain a high availability with only a slight decline year-on-year. Our wind farms improve their availability and continue to maintain a high level of technical availability. Our solar plants recorded a slight decline, but availability remained high. Coal-fired plants, particularly those at TAURON Ciepło, increased their availability compared with last year, demonstrating a high level of operational readiness. For coal-fired power plants, however, availability fell by 15.1% compared with last year. This mainly reflected outages caused by equipment failures or plant shutdowns. Almost every unit experienced an outage of this kind during the H1.

Speaker #3: For coal-fired power plants, however, availability fell by 15.1% compared with last year. This mainly reflected outages caused by equipment failures or plant shutdowns. Almost every unit experienced an outage of this kind during the first half.

Krzysztof Zawadzki: Our wind farms improve their availability and continue to maintain a high level of technical availability. Our solar plants recorded a slight decline, but availability remained high. Coal-fired plants, particularly those at TAURON Ciepło, increased their availability compared with last year, demonstrating a high level of operational readiness. For coal-fired power plants, however, availability fell by 15.1% compared with last year. This mainly reflected outages caused by equipment failures or plant shutdowns. Almost every unit experienced an outage of this kind during the H1.

Speaker #3: Average generating unit availability across the national power system remains higher than in our own portfolio. Let me now turn to our sales portfolio. Electricity sales volumes increased strongly by 8.2% year on year, with the largest increases in the household segment at almost 9% and the business segment at more than 16%.

Speaker #3: In the household segment, the number of metering points increased by more than 52,000. In the business and CME segments, growth was driven mainly by higher sales volumes.

Krzysztof Zawadzki: Average generating unit availability across the national power system remains higher than in our own portfolio. Let me now turn to our sales portfolio. Electricity sales volumes increased strongly by 8.2% year-on-year, with the largest increases in the household segment at almost 9%, and the business segment at more than 16%. In the household segment, the number of metering points increased by more than 52,000. In the business and SME segments, growth was driven mainly by higher sales volumes. The growth rate of TAURON Group's electricity sales was almost twice the rate of growth in domestic electricity consumption, which is, as I mentioned, 4.6%. This supports our position as a leading electricity supplier and reflects, in my view, the strength of our offering for both household and business customers. Turning to the renewable share of our electricity sales, we recorded a slight decline of 1.6%.

Speaker #3: The growth rate of TAURON Group's electricity sales was almost twice the rate of growth in domestic electricity consumption, which is, as I mentioned, 4.6%.

Speaker #3: This supports our position as the leading electricity supplier and reflects, in my view, the strength of our offering for both household and business customers.

Speaker #3: Turning to the renewable shares, our electricity sales recorded a slight decline of 1.6%. Purchases of renewable electricity—the numerator in this calculation—grew more slowly than sales volumes.

Krzysztof Zawadzki: In the business and SME segments, growth was driven mainly by higher sales volumes. The growth rate of TAURON Group's electricity sales was almost twice the rate of growth in domestic electricity consumption, which is, as I mentioned, 4.6%. This supports our position as a leading electricity supplier and reflects, in my view, the strength of our offering for both household and business customers. Turning to the renewable share of our electricity sales, we recorded a slight decline of 1.6%.

Speaker #3: To reach a share of 100%, we would need to document the renewable origin of all the electricity purchased for sale. The decline in the four reflected slower growth in renewable electricity purchases than in overall sales.

Speaker #3: As a result, the renewable share of the electricity we sold was noticeably lower. We also recorded substantial growth in customers under the NOVA Energy program.

Speaker #3: The number of metering points increased by almost 170,000 compared with the first half of last year. Of these, 80% were household—327,000. Small and medium-sized enterprises accounted for 50%, and large businesses for around 1%.

Krzysztof Zawadzki: Purchases of renewable electricity, the numerator in this calculation, grew more slowly than the sales volumes. To reach a share of 100%, we would need to document the renewable origin of all the electricity purchased for sale. The decline, therefore, reflected slower growth in renewable electricity purchases than in overall sales. As a result, the renewable share of the electricity we sold was noticeably lower. We also recorded substantial growth in customers under the Nowa Energia program. The number of metering points increased by almost 170,000 compared with the H1 of last year. Of these, 80% were households, 327,000, and then small and medium-sized enterprises accounted for 50%, and large businesses for around 1%. This growth confirms increasing demand for electricity backed by green certificates, and more broadly, for renewable electricity.

Speaker #3: This growth confirms the increasing demand for electricity backed by green certificates, and more broadly, for renewable electricity. The household segment is the main driver, accounting for 80% of the total increase in the customer base.

Krzysztof Zawadzki: We also recorded substantial growth in customers under the Nowa Energia program. The number of metering points increased by almost 170,000 compared with the H1 of last year. Of these, 80% were households, 327,000, and then small and medium-sized enterprises accounted for 50%, and large businesses for around 1%. This growth confirms increasing demand for electricity backed by green certificates, and more broadly, for renewable electricity.

Speaker #3: The pattern of growth shows that the NOVA Energy program is currently being driven primarily by household customers and the SME segment. There is also further growth potential in the business segment.

Speaker #3: Turning to electricity: into the grid by prosumers, we recorded a slight decline of 1.3%. In the first quarter, the volume fell by around 25% year-on-year, and this was due to higher consumption, probably because of the colder winter.

Speaker #3: In the second quarter, electricity fed into the grid increased by 7.3%. This growth came mainly from prosumers using net billing, primarily those with new installations.

Krzysztof Zawadzki: The household segment is the main driver, accounting for 80% of the total increase in the customer base. The pattern of growth shows that the TAURON Nowa Energia program is currently being driven primarily by household customers and the SME segment. There is also further growth potential in the business segment. Turning to electricity fed into the grid by prosumers, we recorded a slight decline of 1.3%. In Q1, the volume fell by around 25% year-on-year, and this was due to higher consumption, probably because of the colder winter. In Q2, electricity fed into the grid increased by 7.3%, and this growth came mainly from prosumers using net billing, primarily those with new installations. I will not repeat the early points on heat sales, that increase supported by higher demand and lower average temperatures. Our Tanie Godziny tariff continues to attract customers.

Speaker #3: I will not repeat the early points on heat sales. That increase was supported by higher demand on lower and lower average temperatures. Our Tani Gojini chart tends to attract customers at the end of last year.

Krzysztof Zawadzki: Turning to electricity fed into the grid by prosumers, we recorded a slight decline of 1.3%. In Q1, the volume fell by around 25% year-on-year, and this was due to higher consumption, probably because of the colder winter. In Q2, electricity fed into the grid increased by 7.3%, and this growth came mainly from prosumers using net billing, primarily those with new installations. I will not repeat the early points on heat sales, that increase supported by higher demand and lower average temperatures. Our Tanie Godziny tariff continues to attract customers.

Speaker #3: It had 25,000 customers by the end of the first half of this year. The number had exceeded 40,000 and increased by almost 62%. And this suggests growing interest in an offering that helps customers use electricity more efficiently.

Speaker #3: So, we can say that this interest is really, really growing, and we need to prepare those offers and use electricity more efficiently.

Speaker #3: And it also demonstrated the effectiveness of our sales and promotional activities to tell them that they can use, and their portfolio, and we are helping this way customers to understand that they can actively manage when they use electricity and better align with their consumption needs.

Krzysztof Zawadzki: At the end of last year, it had 25,000 customers. By the end of H1 this year, the number had exceeded 40,000, an increase of almost 62%. This suggests growing interest in an offering that helps customers use electricity more efficiently. It also we can say that this interest is really growing, and we need to prepare those offers and use electricity more efficiently. It also demonstrates the effectiveness of our sales and promotional activities to tell them that they can use their portfolio. We are helping, this way, customers to understand that they can actively manage when they use electricity and better align with their consumption needs. Let me close with a few words about our efforts to raise customers' awareness of electricity use. We are currently running an educational campaign called Tauron: To oczywisty wybór.

Speaker #3: Let me close with a few words about our efforts to raise customers' awareness of electricity use. We are currently running an educational campaign called "TAURON – The Obvious Choice."

Speaker #3: It encourages customers to save electricity and make informed use of time-of-use tariffs. It also promotes our online energy advisor, the Tani Gojini and Tani Weekend offers, and, of course, dynamic prices.

Krzysztof Zawadzki: It also demonstrates the effectiveness of our sales and promotional activities to tell them that they can use their portfolio. We are helping, this way, customers to understand that they can actively manage when they use electricity and better align with their consumption needs. Let me close with a few words about our efforts to raise customers' awareness of electricity use. We are currently running an educational campaign called Tauron: To oczywisty wybór.

Speaker #3: And the most visible effect of our campaign is this traffic on our websites. So among the main results, we also have an increase of around 11% in interest in these tariffs.

Speaker #3: On our website, compared with the corresponding period. And interest in our online advisor service has also increased. So, we do hope that these initiatives will encourage customers to choose tariffs that better match their consumption patterns.

Krzysztof Zawadzki: It encourages customers to save electricity and make informed use of time-of-use tariffs. It also promotes our online energy advisor, the Tanie Godziny and Tanie Weekendy offers, and of course, dynamic prices. The most visible effect of our campaign is this traffic on our websites. Among the main results, we have seen also an increase of around 11% in interest in these tariffs on our website compared with the corresponding period. Interest in our online advisor service has also increased. We do hope that these incentives will encourage customers to choose tariffs and better match their consumption patterns and, of course, help them reduce their electricity bills. That concludes my presentation. Thank you so much.

Speaker #3: And of course, help them reduce their electricity bills. And that concludes my presentation. Thank you so much.

Speaker #1: Just a comment. Mr. Zawadzki is with us emotionally, although he is absent today. He has talked quite a lot about coal, but I want to pass a clear message.

Speaker #1: The long-term strategy of TAURON has a clear focus on renewables, storage, and customers, supported by OCGT and the things I've talked about. And now we are simply using a market opportunity.

Krzysztof Zawadzki: Interest in our online advisor service has also increased. We do hope that these incentives will encourage customers to choose tariffs and better match their consumption patterns and, of course, help them reduce their electricity bills. That concludes my presentation. Thank you so much.

Speaker #1: These units are essential to stabilize the system and have a very specific, tangible value. So, operational discussion is one thing, and then there is the strategic point of view. I don't have to repeat myself.

Grzegorz Lot: Just a comment. Mr. Zawadzki is with us emotionally, although he is absent today. He has talked quite a lot about coal, but I want to pass a clear message. The long-term strategy of TAURON has a clear focus on renewables, storage, customers, supported by OCGT and other things I have talked about. Now we are simply using a market opportunity. These units are essential to stabilize the system and have a very specific tangible value. So operational discussion is one thing, and then there is the strategic point of view and I do not have to repeat myself. Now, Vice President for Finance, Mr. Krzysztof Surma. Good morning, ladies and gentlemen. The results of H1 2026 are a bit lower than in 2025, but let us remember that there is the underlying effect. 2025 was the record year, the best ever in the group, hence the differences year to year.

Speaker #1: Now, Vice President for Finance, Mr. Surma.

Speaker #2: Good morning.

Speaker #1: Ladies and gentlemen, the H1 2026 results are a bit lower than in 2025, but let's remember that there is the underlying effect of 2025.

Speaker #1: It was the record year, the best ever in the group. Hence, the differences year to year — they are negative, but still, we think that results for this H1 are sound.

Speaker #1: Now, revenue. It's over 17 billion zlotys, comparable year to year. Two juxtaposed factors: the price of energy fell, and the volume and distribution had a significant increase—energy sold, heat. Krzysztof has already talked about it.

Krzysztof Surma: Good morning, ladies and gentlemen. The results of H1 2026 are a bit lower than in 2025, but let us remember that there is the underlying effect. 2025 was the record year, the best ever in the group, hence the differences year to year.

Speaker #1: I'm not going to repeat it, but these were the two juxtaposed factors. EBITDA—I will later get into detail—but that is 3.7 billion zlotys, and it's 50, rather 12%, worth year to year.

Krzysztof Surma: They are negative, but still, we think that the results for this H1 are sound. Revenue is over PLN 17 billion, comparable year to year. Two factors, juxtaposed factors. The price of energy fell, and the volume and distribution had a significant increase, energy sold, heat. Krzysztof has already talked about it, I am not going to repeat it, but these were the two juxtaposed factors. EBITDA. I will later get into detail, but the level is PLN 3.7 billion, and it is 12% worse year to year. Let us have a look at comparable EBITDA. In 2026, we think there were no one-offs that would have affected the comparable EBITDA, and in 2025, we did have some one-offs, mainly the tariff question, which I already discussed. In 2024, to remind you, the regulator adopted a tariff for 18 months, which was extraordinary. It was not favorable in 2024.

Speaker #1: But let's have a look at comparable EBITDA. In 2026, we think there were no one-offs that would have affected the comparable EBITDA, and in 2025 we did have some one-offs.

Speaker #1: Mainly the tariff question, which I already discussed. But in 2024, to remind you, the regulator adopted a tariff for 18 months, which was extraordinary.

Speaker #1: It was not favorable in 2024. It didn't cover the costs fully because the price of energy went up, and in 2025, in three quarters, this was turned—this lower tariff was turned—so it's not comparable.

Krzysztof Surma: I will later get into detail, but the level is PLN 3.7 billion, and it is 12% worse year to year. Let us have a look at comparable EBITDA. In 2026, we think there were no one-offs that would have affected the comparable EBITDA, and in 2025, we did have some one-offs, mainly the tariff question, which I already discussed. In 2024, to remind you, the regulator adopted a tariff for 18 months, which was extraordinary. It was not favorable in 2024.

Speaker #1: That's why we have an additional effect of around 100 million on EBITDA. Therefore, if we take this away and compare EBITDA year to year, the difference is around 8%.

Speaker #1: Now, net revenue is over 1.5 billion zlotys. Yes, it's also lower year to year, and mainly due to the drop in EBITDA. The additional things that affect this figure are that the deferred tax is higher and the current tax is lower.

Speaker #1: And the net income is better because of the investment costs and the derivative instruments. This comes partially from the securities accounting, which we implemented last year in October.

Krzysztof Surma: It did not cover the costs fully because the price of energy went up. In 2025, in three quarters, this was turned, this lower tariff was turned. It is not comparable, that is why we have an additional effect of around PLN 200 million on EBITDA. Therefore, if we take this away and compare EBITDA year to year, the difference is around 8%. Net revenue is over PLN 1.5 billion. Yes, it is also lower year to year, and mainly due to the drop in EBITDA. The additional things that affect this figure is the deferred tax, which is higher, and the current tax is lower, and the net income is better because of the interestment cost at the derivative instruments. This comes partially from the securities accounting, which were implemented last year in October.

Speaker #1: Now, investment outlays—capex—have gone up a bit. And nominally, distribution has had the largest effect, but Michał will talk in detail about it later on.

Speaker #1: Now, net debt to EBITDA—a very good level: 1.2. This was affected mostly by the decrease in debts. Now, let's split it into segments. No changes here.

Krzysztof Surma: Net revenue is over PLN 1.5 billion. Yes, it is also lower year to year, and mainly due to the drop in EBITDA. The additional things that affect this figure is the deferred tax, which is higher, and the current tax is lower, and the net income is better because of the interestment cost at the derivative instruments. This comes partially from the securities accounting, which were implemented last year in October.

Speaker #1: Distribution remains the most important segment, with 64% share in EBITDA in H1. EBITDA nears PLN 2.4 billion, so its position is stable, followed by other segments.

Krzysztof Surma: Investment outlays, CapEx has gone up a bit, and nominally, distribution has had the largest effect, but Michał will talk in detail about it later on. Net debt to EBITDA. A very good level, 1.2. This affected mostly by the decrease in debt. Let us split it into segments. No changes here. Distribution remains the most important segment, 64% of share in EBITDA. In H1, EBITDA nears PLN 2.4 billion. Its position is stable, and then followed by other segments. Number two this year is generation, because of the favorable conditions for conventional generation. EBITDA, PLN 464 million, H1. There has been a change. Sales is not ranked second anymore, but third now. I will tell you why later on. EBITDA here is PLN 272 million, and the next new segment is renewables, PLN 445 million, and heat, which has been catching up and nearing renewables, PLN 235 million in H1.

Speaker #1: So, number two this year is Generation, because of the favorable conditions for conventional generation. EBITDA was 464 million in H1. Now, there has been a change: Sales is not ranked second anymore, but third now.

Speaker #1: I will tell you why later on. EBITDA here is 272, and the next new segment is Renewables, at 445, and Heat, which has been catching up and nearing Renewables, at 235 in H1.

Speaker #1: And now, the specific reasons behind the weaker EBITDA year to year. Well, as you can see, most of the segments have lower results. But the reasons are mostly out of the company’s control. So, distribution first—the balance of the regulatory account, the position of it is crucial.

Krzysztof Surma: Number two this year is generation, because of the favorable conditions for conventional generation. EBITDA, PLN 464 million, H1. There has been a change. Sales is not ranked second anymore, but third now. I will tell you why later on. EBITDA here is PLN 272 million, and the next new segment is renewables, PLN 445 million, and heat, which has been catching up and nearing renewables, PLN 235 million in H1.

Speaker #1: This is the difference between the actual volume and the volume set in the tariff, and it will be cleared in the year N plus two.

Speaker #1: And last year, the account was positive. And this year, actually, it's negative—over PLN 170 million for the whole year—on clearing the volume for 2024.

Speaker #1: Because of that, in H1 the year-to-year result was negative, minus PLN 222 million. This account is actually what largely determines the results of distribution.

Krzysztof Surma: Well, as you can see, most of the segments have lower results. The reasons are mostly out of company's control. Distribution first, the balance of the regulatory account, the position of it is crucial. This is the difference between the actual volume and the volume set in the tariff, and it will be cleared in the year N plus two. Last year, the account was positive, and this year actually it is negative over PLN 170 million for the whole year of clearing the volume of 2024. Because of that, already in H1, the result year to year was negative -PLN 222 million on this account. This is actually what largely determines the results of distribution. There were two more factors which are also very important.

Speaker #1: There were two more factors, which are also very important. The regulator assets grew in value—a $2 billion difference—and this improved the result, but also, work went down by 1.34 points.

Speaker #1: So, this has had an adverse effect. But both factors offset each other, plus there was a negative effect on the balancing difference overall. The effect on distribution was negative, but also, there is good news.

Krzysztof Surma: Last year, the account was positive, and this year actually it is negative over PLN 170 million for the whole year of clearing the volume of 2024. Because of that, already in H1, the result year to year was negative -PLN 222 million on this account. This is actually what largely determines the results of distribution. There were two more factors which are also very important.

Speaker #1: It's important for a strategy. As you know, we believe that electricity consumption will grow in the country, and this year, for the first time, we can see it in the distribution—a 3% growth in the volume of electricity distributed.

Speaker #1: Now, renewables—so, on the one hand, the market prices have fallen, as Krzysztof has mentioned, and this has had a bad effect on our results this year.

Krzysztof Surma: The regulator assets grew in value PLN 2 billion difference, and this improved the result. WACC went down by 1.34 points, so this has had an adverse effect. Both factors offset each other. There was a negative effect on the balancing difference. Overall, the effect on distribution was negative. There is good news that is important for our strategy. As you know, we believe that the electricity consumption will grow in the country. This year, for the first time, we can see it in the distribution, 3% growth in the volume of electricity distributed. Now renewables. On the one hand, the market prices have fallen, as Christoph has mentioned, and this has had a bad effect on our results this year. Good news, we have launched new units, this brings up volume and, consequently, EBITDA, but also some negative events.

Speaker #1: Good news: while we have launched new units, this brings up EBITDA, this brings up volume, and consequently, EBITDA. But also, some negative events—wind conditions have been worse year to year.

Speaker #1: So we have launched new units, which unfortunately has been offset by less wind, and this has had a worse effect on the whole segment. Now, heat.

Krzysztof Surma: As you know, we believe that the electricity consumption will grow in the country. This year, for the first time, we can see it in the distribution, 3% growth in the volume of electricity distributed. Now renewables. On the one hand, the market prices have fallen, as Christoph has mentioned, and this has had a bad effect on our results this year. Good news, we have launched new units, this brings up volume and, consequently, EBITDA, but also some negative events.

Speaker #1: This is the only one that actually grows year to year. Two factors here. First, the volume growth—lower temperatures during the heating season, and this is the first factor.

Speaker #1: The second one is the increase in the tariff, and it has had a positive effect in the segment. Also, there has been a higher margin on electricity.

Speaker #1: The costs fell—the generation costs. As a result, year on year, the results have been better. So, this is the segment that is positive and stands out because of that in H1.

Krzysztof Surma: Wind conditions have been worse year-to-year. We have launched new units, which unfortunately has been offset by less winds, and this has had a worse effect on the whole segment. Now, heat. This is the only one that actually grows year-to-year. Two factors here. First, volume growth. Lower temperatures during the heat season, and this is the first factor. The second one is the increase in the tariff, and it has been a positive effect in the segment. There has been a higher margin on electricity. The costs fell, generation costs. As a result, year-on-year, the results have been better. This is the segment that is positive and stands out because of that in H1. Last year in H2, there were enough write-downs, regulators issues, free allowances, CO2 allowances.

Speaker #1: Last year in H2, there were an-offs, write-downs, and regulator issues. Three CO2 allowances—so all of these will be reversed in the next quarter.

Speaker #1: Now, supply and wholesale trading. I think that it's the worst-performing segment. A few factors play a role here. The first one is that the G tariff in 2025 performed exceptionally well.

Krzysztof Surma: The second one is the increase in the tariff, and it has been a positive effect in the segment. There has been a higher margin on electricity. The costs fell, generation costs. As a result, year-on-year, the results have been better. This is the segment that is positive and stands out because of that in H1. Last year in H2, there were enough write-downs, regulators issues, free allowances, CO2 allowances.

Speaker #1: On the other hand, the cost of the G tariff went down and is near the line of profitability. Therefore, it's not possible to get a positive margin in this segment.

Speaker #1: Also, the lower unit margin to business operators and SMEs. Now, good news: the structure of supply has been evolving. Customers increasingly prefer listed products and not a fixed price, and this lowers the risk for the company.

Krzysztof Surma: All of these will be reversed in the next quarter. Now, supply and wholesale trading. I think that it is the worst performing segment. A few factors at play here. The first one is the G tariff in 2025 performed exceptionally well. On the other hand, the cost of G tariff went down and near the line of profitability. Therefore, it is not possible to get a positive margin in this segment. Also, the lower unit margin on supply to business operators and SMEs. Now, good news. The structure of supply has been evolving. Customers prefer increasingly listed products and not a fixed price, and this lowers the risk for the company. 65% of our business customers already prefer the listed price of stock exchange, so this mitigates the risk. So good news. The growth of volume for the first time in a longer period.

Speaker #1: So, 65% of our business customers already prefer the listed price—stock exchange. So this mitigates the risk. This is good news, while the growth of volume for the first time in a longer period, so supply has gone up. For many years, there had been drops.

Speaker #1: So, it's an increase—it's a positive development. And now, the last segment with a small loss year to year—it's Generation. But we consider that the results are good anyway.

Speaker #1: There is a fall in price year on year. Because of that, EBITDA is slightly lower, but the volume is better—both in sales and production.

Krzysztof Surma: Now, good news. The structure of supply has been evolving. Customers prefer increasingly listed products and not a fixed price, and this lowers the risk for the company. 65% of our business customers already prefer the listed price of stock exchange, so this mitigates the risk. So good news. The growth of volume for the first time in a longer period.

Speaker #1: And the balancing capacity revenue has gone up. Year on year, last year we had some compensations, which hasn't been the case this year, but the segment looks good.

Speaker #1: Really, despite the slight drop in the first half of the year, now we can talk about debt. Debt—our ratio that we have seen before.

Krzysztof Surma: Supply has gone up, and for many years there has been drops. It is an increase. It is a positive development. Now the last segment with a small loss year-to-year. It is generation, but we consider that the results are good anyway. There is a fall in price year-on-year. Because of that, EBITDA is slightly lower. The volume is better, both of sales and production. The balancing capacity revenue has gone up. Year-on-year, last year we had some compensations, which has not been the case this year, but the segment looks good, really, despite a slight drop in the first half of the year.

Speaker #1: Before. So the one reporting to the bank the difference is about 2 billion year on year. And I would like to show you also the economic net and this net debt is on a very similar level to previous year why and the main issue here is the way when we when the date of CO2 strike down write down when it was redeemed so now we can redeem the certificates for CO2 emission a little bit later and in 2025 some of the transactions that were for transactions which were adjusted to the previous redeeming period and right now we adjusted them to our liquidation to our cash flow and we delayed this date.

Speaker #1: So we adjust forward transaction to CO2 redemption. So about 2 billion zloty of write-downs, which means those 2 billion zloty we are going to spend a little bit later for the certificates. Those certificates were bought at the turn of August and September, and this is the main difference year on year, while we have net debt a little bit different.

Krzysztof Surma: Now we can talk about debt, our ratio that we have seen before. The one reporting to the bank, the difference is about PLN 2 billion year on year. I would like to show you also the economic net debt, and this net debt is on a very similar level to previous year. The main issue here is the way, when the date of CO2 write down, when it was redeemed. Now we can redeem the certificates for our CO2 emission a little bit later. In 2025, some of the transactions, there were forward transactions which were adjusted to the previous redeeming period. Right now we adjusted them to our liquidation, to our cash flow, and we delayed this date. We adjust forward a transaction to CO2 redemption.

Speaker #1: Another factor which is also quite vital for future financing costs is on our P&L. So, in 2026, we included 1.5 billion zloty of preferential funding in the interest arrears, and therefore the preferential funds and the grants are now included in our reporting.

Krzysztof Surma: Now we can redeem the certificates for our CO2 emission a little bit later. In 2025, some of the transactions, there were forward transactions which were adjusted to the previous redeeming period. Right now we adjusted them to our liquidation, to our cash flow, and we delayed this date. We adjust forward a transaction to CO2 redemption.

Speaker #1: But of course influences the debt and now when you look at that so you can see that we have exchanged the most expensive debt in our balance which we had the most expensive debt in previous year and now we exchanged it and both debts right now both financing ways are decrease our debt.

Krzysztof Surma: About PLN 2 billion of write downs, which means those PLN 2 billion, we are going to spend a little bit later for the certificates. Those certificates were bought at the turn of August and September, and this is the main difference year on year, why we have this net debt a little bit different. Another factor which is also quite vital for the future, for future financing cost, it is on our NRP. In 2026, we included PLN 1.5 billion of preferential funding in the inter arrears. Therefore, the preferential funds and the grants are now included in our reporting. Of course, it influences the debt.

Speaker #1: So I would like to also pay attention to our leasing. There we can see an increase, but our leasing is not a typical financing leasing. Mostly, these are mortgages and leases—so lease for property, lease for the land—and they are going to increase the value of our debt, on increase on lease.

Speaker #1: And the last information in this slide, you can see the debt. Our group is in a very good financial position. We have 6.42 secured, and I believe this is.

Krzysztof Surma: Now when you look at debt, you can see that we have exchanged the most expensive debt in our balance, which we had the most expensive debt in previous year, and now we exchanged it. Both debts right now, both financing ways decrease our debt. I would like to also pay attention to our leasing. There we can see an increase. Our leasing is not a typical financing leasing. Mostly, these are mortgages and lease. A lease for property, lease for the land, and they are going to increase the value of our debt on increase, on lease. The last information in this slide, you can see that our group is in a very good financial position. We have 6.42 secured. I believe this is enough of a 12-year gap to finance it.

Speaker #1: Enough of 12-year gap to finance it, and so we have also 14.2 available financing under the ON in RRP project, and it's going to be started—commissioned—after the execution of the contract. So first, we need to commission.

Speaker #1: The investment will then be financed by those funds. And now let's talk a little bit more about NRRP financing. So, we are not going to stop.

Krzysztof Surma: Our leasing is not a typical financing leasing. Mostly, these are mortgages and lease. A lease for property, lease for the land, and they are going to increase the value of our debt on increase, on lease. The last information in this slide, you can see that our group is in a very good financial position. We have 6.42 secured. I believe this is enough of a 12-year gap to finance it.

Speaker #1: We delivered on our strategy. We obtained more than 400 billion zloty from those projects, mostly on renewables and lighting, on the distribution, and the charges for EV—for electric vehicles.

Speaker #1: As you can see, on the 30th of July we had PLN 18.4 billion in funds from preferential finance financing. So we are just a step ahead of the strategy to reach it.

Speaker #1: And remember, that's just two years since we announced the strategy. So we have a lot of grants and provincial loans that we apply here.

Krzysztof Surma: We have also PLN 14.2 billion available financing under the NRRP project. It is going to be started, commissioned after the execution of the contract. First we need to commission the investment, and then it will be financed by those funds. Now let us talk a little bit more about NRRP financing. We are not going to stop. We deliver our strategy. We obtained more than PLN 400 billion from those projects, mostly on renewables and the lightning, on the distribution, and the charges for electric vehicles. As you can see, on 30 July, we had PLN 18.4 billion funds of preferential financing. We are just a step ahead from the strategy to reach it. Remember, that is just two years since we announced this strategy. We have a lot of grants and preferential loans that we apply here.

Speaker #1: And we are still searching, you know, the cheapest possible financing. So, in my part, that's probably all. Now I would like Michał to talk about the investment part.

Speaker #1: Krzysztof talked about losses. And there are a few fewer of them, but still, you know, the results, I believe, are really great.

Speaker #1: So, there is a lot of optimism. You know, you need to remember that besides that negative information, the results are really optimistic, and we all received dividends, and we always fight for those.

Krzysztof Surma: We deliver our strategy. We obtained more than PLN 400 billion from those projects, mostly on renewables and the lightning, on the distribution, and the charges for electric vehicles. As you can see, on 30 July, we had PLN 18.4 billion funds of preferential financing. We are just a step ahead from the strategy to reach it. Remember, that is just two years since we announced this strategy. We have a lot of grants and preferential loans that we apply here. We are still searching the cheapest possible financing. In my part, that is probably all. Now I would like Michał to talk about the investment part.

Speaker #1: The results there, let's say, are pretty interesting. Ladies and gentlemen, now we are going to talk about Capex. So, this increased year on year by 2.8%.

Speaker #1: A billion is the average Capex. So now we are going to talk about distribution. We invested 1.7 billion zloty, and then we are going to talk about the structure that you can see in the slide and the Capex investment.

Michał Orłowski: We are still searching the cheapest possible financing. In my part, that is probably all. Now I would like Michał to talk about the investment part. Krzysztof talked about losses, and there are fewer of them, but still, the results I believe are really great. There is a lot of optimism. You need to remember that besides those negative information, the results are really optimistic and we all received dividends and we always fight for those results. They are, let us say, pretty interesting. Ladies and gentlemen, now we are going to talk about CapEx. They increased year-on-year by 6%. PLN 2.8 billion is the average CapEx. Now we are going to talk about distribution. We invested PLN 1.7 billion.

Speaker #1: But it doesn't reflect our perspective, because the last quarters were very intensive—yes, intensive—securing preferential funding, grants for best cogeneration auctions. But then, of course, I'm going to refer to them. So when we talk about the investment, we are in the procurement process, and we want to start also.

Michał Orłowski: Krzysztof talked about losses, and there are fewer of them, but still, the results I believe are really great. There is a lot of optimism. You need to remember that besides those negative information, the results are really optimistic and we all received dividends and we always fight for those results. They are, let us say, pretty interesting. Ladies and gentlemen, now we are going to talk about CapEx. They increased year-on-year by 6%. PLN 2.8 billion is the average CapEx. Now we are going to talk about distribution. We invested PLN 1.7 billion.

Speaker #1: Some construction sites. Therefore, maybe this Capex scale is pretty low, and of course later I'm going to talk about them in more detail in particular slides.

Speaker #1: Now, if you look at the distribution only, the construction of grid connections is 800.11 million. Renewables—so construction—it's about 7.8 gigawatts in.

Speaker #1: We're capacity, and also we speeded up with modernization. In practice, it's about 1.5 kilometers of the grid—of the network—modernized, of course, right now.

Speaker #1: So, we create a great-scale program of distribution, which is supposed to increase these ratios and indicators. Then, when we're talking about this intelligence—smart meters—it's about 3 million, more than 3 million.

Michał Orłowski: We are going to talk about the structure that you can see in the slide and the CapEx investment, but it does not really reflect our perspective because the last quarters were very intensive, and years of intensive securing preferential funding, grants for BESS, cogeneration auctions, but then, of course, I am going to refer to them. When we talk about the investment, we are in the procurement process and we want to start also some construction sites. Therefore, maybe this CapEx scale is pretty low. Of course, later I am going to talk about them in more detail in particular slides. If you look at the distribution only, construction of new grid connections is PLN 811 million and renewables. Construction, it is about 7.8 gigawatts in our capacity. Also we speed it up with modernization.

Speaker #1: Smart meters at our end-users. And then, when we talk about wind farms—actually, construction of three wind farms was the biggest challenge, the biggest investment for us, as well as the modernization of the hydroelectric power plant in Behovice.

Michał Orłowski: When we talk about the investment, we are in the procurement process and we want to start also some construction sites. Therefore, maybe this CapEx scale is pretty low. Of course, later I am going to talk about them in more detail in particular slides. If you look at the distribution only, construction of new grid connections is PLN 811 million and renewables. Construction, it is about 7.8 gigawatts in our capacity. Also we speed it up with modernization.

Speaker #1: Then, if we talk about heat, the main source—the main area where we spent our money—was the heat sector decarbonization project and also the connection of new facilities to the district heating networks.

Speaker #1: And in another segment, so this is about 74 million in lighting and light fiber. But it, of course, was financed by the National Recovery Plan.

Michał Orłowski: In practice, it is about 1.5 kilometers of the grid, of the network, modernized, of course, right now. We create a great scale program of distribution, which is supposed to increase these ratios and indicators. When we are talking about these smart meters, it is about more than 3 million smart meters at end users. When we talk about wind farms, actually, construction of 3 wind farms was the biggest challenge and the biggest investment for us, as well as modernization of hydroelectric power plant in Piechowice. If we talk about heat, the main source where we spend our money was heat sector decarbonization project, and also connection of new facilities to the district heating networks. In other segment, this is about PLN 74 million in lightning and light fiber. It, of course, was also financed by the National Recovery Plan.

Speaker #1: Talking about generation, we don't have Capex from Yavoshno, but we are expecting them to come in the next quarters. The large-scale, so Nova Yavoshno is now.

Speaker #1: 910 megawatts, and it is also, of course, undergoing a modernization process. There are a lot of systems that are going to be replaced because, historically, they caused a lot of problems.

Speaker #1: And I believe that in the next quarters those problems around disposition and dispatching will be higher.

Michał Orłowski: When we talk about wind farms, actually, construction of 3 wind farms was the biggest challenge and the biggest investment for us, as well as modernization of hydroelectric power plant in Piechowice. If we talk about heat, the main source where we spend our money was heat sector decarbonization project, and also connection of new facilities to the district heating networks. In other segment, this is about PLN 74 million in lightning and light fiber. It, of course, was also financed by the National Recovery Plan.

Speaker #2: Now, moving on to the wind farm. The first electricity was manufactured already during this startup phase. We are testing the turbines and commissioning them one by one, and we are now in the process of final operational approvals for the line.

Speaker #2: For the power line, importantly, the project is already generating energy and it's going to be visible soon. It was around 8 million zloty of income in August, and once more turbines have been launched after.

Michał Orłowski: Talking about generation, we do not have CapEx, from Jaworzno, but we are expecting them to come in the next quarters at a large scale. Nowe Jaworzno, it is now 910 MWe, and it is also, of course, undergoing a modernization process. There are a lot of systems that are going to be replaced because historically, they caused a lot of problems. I believe that in the next quarters, those problems are going to be solved and the dispatching will be higher.

Speaker #2: As the production grows—and next year, we expect in Q2 that the project will be fully operational. Importantly, we received dedicated financing from the European Investment Bank for this project, which is quite favorable compared to commercial terms, and we have 18 years to pay it off.

Speaker #2: To repay this loan. So again, this is a project that enjoys very attractive financing terms. Now, the outlays and spending—this is an interesting thing.

Speaker #2: Here, the expenditure was 705 million zloty in June. This is the expenditure, the spending over 1 billion. This is because the turbines were prepaid and the outlays do not fully reflect the progress of the project.

Michał Orłowski: Now moving on to the wind farm in Miejska Górka. The first electricity was manufactured already. This is still a startup phase, but we are testing the turbines and commissioning them one by one. We are now in the process of final operational approvals for the power line. Importantly, the project is already generating energy, and it is going to be visible. So it was around PLN 8 million of income in August. Once more turbines have been launched after the test, the production will grow, and next year, we expect in Q2 the project to be fully operational. Importantly, we received dedicated financing from the European Investment Bank for this project, which is quite favorable compared to commercial terms, and we have 18 years to repay this loan. So again, this is a project that enjoys very attractive financing terms. Now the outlays and spending.

Speaker #2: And also, between 2026 and 2027, we will recognize the costs as outlays of expenditure, which also will increase this item in the balance sheet significantly.

Speaker #2: Now going to the storage, in the first half we were preparing the tenders. Now we are choosing the right contractors, in total four, for the energy.

Michał Orłowski: Once more turbines have been launched after the test, the production will grow, and next year, we expect in Q2 the project to be fully operational. Importantly, we received dedicated financing from the European Investment Bank for this project, which is quite favorable compared to commercial terms, and we have 18 years to repay this loan. So again, this is a project that enjoys very attractive financing terms. Now the outlays and spending.

Speaker #2: Storage and renewables—492 megawatts—are covered by the tender. This will help us start the execution, that is, the physical construction of the project.

Speaker #2: Other projects are under construction and are to be handed over this year. Kuźnia Raciborska: we are at the final stage of fitting and construction, so soon they will join our pool of storage batteries.

Michał Orłowski: This is an interesting thing here. The expenditure was PLN 705 million in June. This is the expenditure, the spending over PLN 1 billion. This is because the turbines were prepaid, and the outlays do not reflect fully the progress of the project. Also, between 2026, 2027, we will recognize the costs as outlays, as expenditure, which will increase this item in the balance sheet significantly. Now, going to the storage. In the H1, we were preparing the tenders. Now we are choosing the right contractors in total for the energy storage and renewables. 492 MW are covered by the tenders. This will help us start the execution, the physical construction of the projects. Other projects are under construction and are to be handed over this year. Kuźnia Raciborska, we are the final stage of fitting and construction.

Speaker #2: Now, PV and wind projects—we have already mentioned Miejska Górka, but there are also other projects we launched, which are PVs or hybrid facilities.

Speaker #2: Let me focus on two examples here, because I think that they are a good example of our philosophy in this segment. As we— PV, as another significant pressure, we have discussed prices of energy on the market.

Speaker #2: The prices and their pressure and our projects—in practice, our projects—with value added. So, take, for example, Ms. 55 megawatts Huje-Sky; it was a former landfill.

Michał Orłowski: Now, going to the storage. In the H1, we were preparing the tenders. Now we are choosing the right contractors in total for the energy storage and renewables. 492 MW are covered by the tenders. This will help us start the execution, the physical construction of the projects. Other projects are under construction and are to be handed over this year. Kuźnia Raciborska, we are the final stage of fitting and construction.

Speaker #2: So it was very difficult to repurpose the land for other uses. It was also a burden from the point of view of real estate tax.

Speaker #2: So we got financing from the National Recovery Plan: 90% in loans minus 20 points as the underlying rate. This has solved the problem, and also it's a potential for the future because the farm is located next to Jaworzno.

Speaker #2: There is a possibility to directly hook up new assets, including an electrolyzer. So, on the one hand, we have a preferential loan. We have a repurposed, post-industrial site which was ours.

Michał Orłowski: Soon they will join our pool of storage batteries. Now, PV and wind projects. We have already mentioned Miejska Górka, but there are also other projects we launched, which are PVs or hybrid facilities. Let me focus on two examples here, because I think that they are a good example of our philosophy in this segment. As we know, PV is under significant pressure. We have discussed the prices of energy on the market, the prices under pressure and our projects. In practice, are projects with value added. So take Mysłowice, 55 MW, huge scale. It was a former landfill, so it was very difficult to repurpose the land for other uses. It was also a burden from the point of view of real estate tax. So we got financing from the National Recovery Plan, 90% in loans, minus 20 points as the underlying rate.

Speaker #2: And which has now been incorporated into the fleet. The hybrid facility in Ogrodzieńce is also an interesting project. It's our own development, developed internally.

Speaker #2: This is a strategic promise we made in our strategy. We will build a PV facility here with 65 megawatts of capacity and storage of 55 megawatts.

Michał Orłowski: We have discussed the prices of energy on the market, the prices under pressure and our projects. In practice, are projects with value added. So take Mysłowice, 55 MW, huge scale. It was a former landfill, so it was very difficult to repurpose the land for other uses. It was also a burden from the point of view of real estate tax. So we got financing from the National Recovery Plan, 90% in loans, minus 20 points as the underlying rate.

Speaker #2: PV also enjoys funding from the National Recovery Plan, and the batteries got a grant from the Protection Fund. So this is also an interesting solution.

Speaker #2: Our own resources have been used with double prevention financing. So I think this shows very well what our philosophy is of creating the best value for TAURON shareholders with the best possible and available support.

Speaker #2: Now, moving on to the OCGT unit. Many questions and many doubts were involved—whether we would be able to contract these turbines to meet the capacity contract we made.

Michał Orłowski: This has solved the problem and also it is a potential for the future because the farm is located next to Jaworzno. There is a possibility to directly hook up new assets, including an electrolyzer. So on the one half, we have preferential loan. We have repurposed a post-industrial site, which was ours and which has been now incorporated into the fleet. The hybrid facility in Ogrodzieniec is also an interesting project. It is our own development, developed internally. This is a strategic promise we made in our strategy. We will build a PV facility here, 65 MW of capacity and storage, 55 MW. PV also enjoys funding from the National Recovery Plan, and the batteries got a grant from National Environmental Protection Fund. So this is also an interesting solution. Our own resources have been used with double preferential financing.

Speaker #2: And we have succeeded. We're very happy with the conditions of this contract. Why have we succeeded? Well, first of all, technological flexibility. We have a one-turbine solution, class H turbine here, but also there's a two-turbine solution, class F turbines.

Michał Orłowski: The hybrid facility in Ogrodzieniec is also an interesting project. It is our own development, developed internally. This is a strategic promise we made in our strategy. We will build a PV facility here, 65 MW of capacity and storage, 55 MW. PV also enjoys funding from the National Recovery Plan, and the batteries got a grant from National Environmental Protection Fund. So this is also an interesting solution. Our own resources have been used with double preferential financing.

Speaker #2: And this two-turbine solution turned out to be more—in this specific setting, and also the model of investor delivery is we split the turbines from the construction contracting, and this made more companies interested in the supplies. And it will help us also to boost the number of companies interested in the construction contract.

Speaker #2: One 293 million euro, and out of that, 193 million euro goes for the turbine supply. The installed capacity will be higher than planned, because now, with the two turbines, it's going to be 630 megawatts—E megawatts.

Michał Orłowski: I think this shows very well what our philosophy is of creating the best value for our shareholders with the best possible and available support. Now moving on to the OCGT unit. Many questions, many doubts were involved, whether we would be able to contract these turbines to meet the capacity contract we made. We have succeeded. We are very happy with the conditions of this contract. Well, first of all, technological flexibility. We have a one-turbine solution, Class H turbine here. There is also a two-turbine solution to Class F turbines. This two-turbine solution turned out to be more feasible in this specific setting, and also the model of investor deliveries.

Speaker #2: So if you compare that to the situation in the Polish market, it's around 25–30% cheaper than some recent contracts made on the market.

Speaker #2: So, our contract is 25% cheaper. So this is an interesting contract. The turbine can be built outdoors with containers, so this means that prefabricated modules can be brought to the site, which will shorten the construction process and reduce spending on construction works.

Michał Orłowski: We have succeeded. We are very happy with the conditions of this contract. Well, first of all, technological flexibility. We have a one-turbine solution, Class H turbine here. There is also a two-turbine solution to Class F turbines. This two-turbine solution turned out to be more feasible in this specific setting, and also the model of investor deliveries.

Speaker #2: Now we need to get the approvals. This is crucial: the environmental decision and the construction permit. We also need to prepare the specs.

Speaker #2: We need to hire the contractor and the engineer for the site, and the tender is ongoing. We want to finalize the design at the beginning of next year.

Michał Orłowski: We split the turbines from the construction contracting. This made more companies interested in the supplies. It will help us also to boost the number of companies interested in the construction contract. EUR 293 million and out of that, EUR 193 million goes for the turbine supply. The installed capacity will be higher than planned because now with the two turbines, it is going to be 630 MWe. If you compare that to the situation in the Polish market, it is around 30%, 25% cheaper than some recent contracts made on the market. Our contract is 25% cheaper, so this is an interesting contract. The turbine can be built outdoor with containers, so this means that prefabricated modules can be brought to the site, which will shorten the construction process and reduce the spending on the construction works.

Speaker #2: So, the construction part and the turbine part will be split, and this means that there will be more companies interested, which will boost competitiveness and also local content for construction parts.

Speaker #2: Now, the carbonization of heat. The CHP unit in Łagisze is the key project for us. 1.2 billion zloty. This is the largest budget, plus over 2 billion zloty of funds from the co-generation auction, which will be paid between 2031 and 2045.

Michał Orłowski: If you compare that to the situation in the Polish market, it is around 30%, 25% cheaper than some recent contracts made on the market. Our contract is 25% cheaper, so this is an interesting contract. The turbine can be built outdoor with containers, so this means that prefabricated modules can be brought to the site, which will shorten the construction process and reduce the spending on the construction works.

Speaker #2: This is our crucial asset. It's in the middle of Silesia and provides power to—provides energy to most of our heat system over there.

Speaker #2: And it stabilizes the heat deliveries for most part of Silesia. Now the tender for turbine supplies is underway. Two turbines are planned, and we expect to get the bids in September.

Michał Orłowski: Now we need to get the approvals, this is crucial, and the environmental decision and the construction permit. We also need to prepare the specs. We need to hire the contractor or the engineer for the site. The tender is ongoing. We want to finalize the design in the beginning of the next year. The construction part and the turbine part will be split. This means that there will be more companies interested, which will boost competitiveness and also local content for construction parts. Now, the carbonization of heat. The CHP unit in Łagisza is the key project for us. PLN 1.2 billion. This is the largest budget plus over PLN 2 billion of funds from the cogeneration auction, which will be paid between 2031 and 2045. This is our crucial asset.

Speaker #2: And choose the contractor based on that. The Yaworzno heat utilization is an important project for us as well. So, first, it's important because it will provide heat to the city of Yaworzno, but also it will provide energy to the steam unit in Yaworzno. And once it's commissioned, we will be able to put out of service some coal units in the power plant Yaworzno II, which now generate losses.

Speaker #2: So we will have a significant result on our results. The CHP auction was won in June, and we will launch this in 2029, but the gas boilers will be launched somewhat earlier.

Michał Orłowski: This means that there will be more companies interested, which will boost competitiveness and also local content for construction parts. Now, the carbonization of heat. The CHP unit in Łagisza is the key project for us. PLN 1.2 billion. This is the largest budget plus over PLN 2 billion of funds from the cogeneration auction, which will be paid between 2031 and 2045. This is our crucial asset.

Speaker #2: In Będzin and Jaworzno, we will use storage and electrode boilers. There will be 30 megawatts in Łagisze with the electrode boilers. So, the idea is that outside of the peak heat season, we want to use negative prices for hot water for households.

Speaker #2: So we do have huge projects, but also we have won many CHP auctions: Olkusz, Zawiercie, Kamienna Góra. So, these are smaller locations, not as meaningful.

Michał Orłowski: It is in the middle of Silesia and provides energy to most of our heat system over there. It stabilizes heat deliveries for most parts of Silesia. Now, the tender for turbine supplies is underway. Two turbines are planned. We expect to get the bids in September and choose the contractor based on that. Jaworzno Heatutilize is an important project for us as well. First, it is important because it will provide heat to the city of Jaworzno. It will also provide energy to the steam unit in Jaworzno. Once it is commissioned, we will be able to put out of service some coal units in the power plant in Jaworzno, two which now generate loss. It will have a significant result on our results.

Speaker #2: But this means additional revenue and profitability, and also profitable decarbonization of smaller sites. Thank you.

Speaker #1: Ladies and gentlemen, now I would like to welcome you to the Q&A session. So, the first question here comes—thank you so much. I have three questions, actually.

Michał Orłowski: First, it is important because it will provide heat to the city of Jaworzno. It will also provide energy to the steam unit in Jaworzno. Once it is commissioned, we will be able to put out of service some coal units in the power plant in Jaworzno, two which now generate loss. It will have a significant result on our results.

Speaker #1: First, referring to slide number four—when you were talking about the generation portfolio, you informed us that year-on-year, the consumption of coal rose by about 35%.

Speaker #1: Of course, it's very difficult to foresee what's going to happen in Q3 and Q4. However, it's a fact that since August, we are facing a little bit different reality, especially in terms of capacity, than we were in June.

Michał Orłowski: The CHP auction was won in June, and we will launch this in 2029, but the gas boilers will be launched some earlier. In Będzin, in Jaworzno, we will use storage and electrode boilers. 30 megawatts in Łagiewniki with the electrode boiler. The idea is that outside of the peak heat season, we want to use negative prices for hot water for households. We do have huge projects, but also we have won many CHP auctions. Olkusz, Zawiercie, Kamienna Góra. These are smaller locations, not as meaningful, but this means additional revenue and profitability and also profitable decarbonization of smaller sites.

Speaker #1: Of course, for clear reasons. So, therefore, I would like to ask if the consumption of coal is going to rise in Q3 and Q4, bearing in mind the geopolitical situation. The previous day, at the Coal Mine Congress, it was said that there is almost no coal in the warehouses, in the storage sites.

Speaker #1: So, are you going to buy some extra, additional coal supplies, and if yes, where from, if the warehouses and storage sites are empty? And second question.

Speaker #1: It's very interesting information that in your renewables portfolio there are battery energy storage systems. So, do you have any previous experience, and do you think it can be a game changer based on the second quarter? And of course, I would also like to ask about the three sites: Łagisze, Jaworzno, and Siersza, in the context of the capacity market.

Marek Chojnacki: Thank you. Ladies and gentlemen, now I would like to welcome you to Q&A sessions. The first question here comes. Thank you so much. I have three questions actually. First refers to slide number 4. When you are talking about the generation portfolio, you inform us that year-on-year, the consumption of coal rose about 35%. Of course, it is very difficult to foresee what is going to happen in Q3 and Q4. However, it is a fact that since August, we are facing a little bit different reality, especially capacity reality, than we were in June, of course, for clear reasons. Therefore, I would like to ask, if the consumption of coal is going to rise in Q3 and Q4, bearing in mind the geopolitical situation. Day before yesterday, the coal mine congress, it was said that almost there was nothing, no coal in the warehouses, in the storage sites.

Olga Kostrzewska-Cichoń: Thank you. Ladies and gentlemen, now I would like to welcome you to Q&A sessions. The first question here comes.

[Analyst 1]: Thank you so much. I have three questions actually. First refers to slide number 4. When you are talking about the generation portfolio, you inform us that year-on-year, the consumption of coal rose about 35%. Of course, it is very difficult to foresee what is going to happen in Q3 and Q4. However, it is a fact that since August, we are facing a little bit different reality, especially capacity reality, than we were in June, of course, for clear reasons.

Speaker #1: Do you believe that what's happening—I mean, like every year some kind of black scenario is going to happen, starting from COVID—so is there any chance that the three sites are going to operate in your portfolio after 2028?

Speaker #1: Thank you so much. I would like to answer the first question. So, if it goes about coal in our group and coal supplies in our group, we can see that it's increasing, and it's kind of a consequence of our strategy.

[Analyst 1]: Therefore, I would like to ask, if the consumption of coal is going to rise in Q3 and Q4, bearing in mind the geopolitical situation. Day before yesterday, the coal mine congress, it was said that almost there was nothing, no coal in the warehouses, in the storage sites. Are you going to buy some extra additional coal supplies? If yes, where from if the warehouses storage sites are empty?

Speaker #1: So we try to secure the supplies, but we are also open to some new solutions, and you can see that what we see in the first quarter is a consequence of procurement processes and offers on the market.

Speaker #1: Of course, we bear in mind the availability of coal. So, what can happen in the second half of the year? The dynamics is pretty high.

Marek Chojnacki: Are you going to buy some extra additional coal supplies? If yes, where from if the warehouses storage sites are empty? Second question, it is a very interesting information that in your renewables portfolio, there are energy storage batteries. Do you have any previous experience? Do you think it can be a game changer based on Q2? Of course, I would like to ask about three sites, Łagiewniki, Jaworzno, and Siersza in the context of the capacity market. Do you believe that what is happening, every year, some kind of black scenario is going to happen starting from COVID. Is there any chance that the three sites are going to operate in your portfolio after 2028? Thank you so much.

Speaker #1: It's dependent on the geopolitical situation, on the weather conditions, and of course, availability of our units. So, as we have already said, Nowa Jaworzno is in outage right now, and in October, there will also be an outage in Łagisze.

[Analyst 1]: Second question, it is a very interesting information that in your renewables portfolio, there are energy storage batteries. Do you have any previous experience? Do you think it can be a game changer based on Q2? Of course, I would like to ask about three sites, Łagiewniki, Jaworzno, and Siersza in the context of the capacity market. Do you believe that what is happening, every year, some kind of black scenario is going to happen starting from COVID. Is there any chance that the three sites are going to operate in your portfolio after 2028? Thank you so much.

Speaker #1: So, we see the demand for coal is going to be a little bit different in the second half of the year. And of course, we are talking about hedging contracts.

Speaker #1: So yes, coal supplies are secured. Now, I would like to refer to battery storage, to the warehouses. So I believe it's just the beginning.

Speaker #1: ...of a very fast way that we are going to accomplish soon. The results are better than we assumed. So actually, what I would like to see is that our portfolio is secured of 600 megawatts warehouses.

Grzegorz Lot: I would like to answer the first question. If it goes about coal in our group and coal supplies in our group, we can see that it is increasing and it is a kind of consequent of our strategy. We try to secure the supplies, but we also are open to some new solutions. You can see that what we can see in Q1 is a consequence of procurement processes and offers on the market. Of course, we bore in mind the availability of coal. What can happen in the H2? The dynamic is pretty high. It is dependent on geopolitical situation, on the weather conditions, and of course, availability of our units. What we have already said, New Jaworzno is in an outage right now. In October, there will be an outage in Łagiewniki.

Speaker #1: Both on the capacity market and also with grants from the environmental fund. We have received the most, of all capacities financed by the state, so we were the second company financed by the environmental fund.

Speaker #1: So what we expect actually—maybe the question is, do you think that it will support our financial results in the second half of the year?

Speaker #1: Yes, I believe it will. So the warehouses should eliminate this value. It can, of course, be spent on the margin, or on lowering the costs, on improving our competitiveness, and increasing the volume.

Grzegorz Lot: What can happen in the H2? The dynamic is pretty high. It is dependent on geopolitical situation, on the weather conditions, and of course, availability of our units. What we have already said, New Jaworzno is in an outage right now. In October, there will be an outage in Łagiewniki. The demand for coal is going to be a little bit different in the H2 of the year. We are talking about hedging contracts.

Speaker #1: Yes. And as Michal said, it's 700 megawatts—mega, it's another warehouse. So, yeah, we can see a great potential. Without such warehouses on such a scale, also dispersed ones, this transition will be very difficult, and it will be very difficult to deliver the price which is now present in the European Union.

Grzegorz Lot: The demand for coal is going to be a little bit different in the H2 of the year. We are talking about hedging contracts.

Michał Orłowski: Yes, coal supplies are secured. I would like to refer to these battery storages, to the warehouses. I believe it is just the beginning of a very fast way that we are going to accomplish soon. The results are better than we assumed. What I would like to say is that our portfolio is secured of 600 MW in our warehouses, both on the capacity market and also with grants from the National Fund for Environmental Protection and Water Management. We have received the most of all capacities, financed by state. We were the second company financed by National Fund for Environmental Protection and Water Management. What do we expect, actually? Or maybe the question is, if we think that it will support our financial results in the H2 of the year? Yes, I believe it will. The warehouses should eliminate this value.

Grzegorz Lot: Yes, coal supplies are secured. I would like to refer to these battery storages, to the warehouses. I believe it is just the beginning of a very fast way that we are going to accomplish soon. The results are better than we assumed. What I would like to say is that our portfolio is secured of 600 MW in our warehouses, both on the capacity market and also with grants from the National Fund for Environmental Protection and Water Management.

Speaker #1: So that's the question. And now the third question, a pretty difficult one. We're getting back a little bit to the history that happened.

Speaker #1: Three years ago. And now the question also refers to 2028. So it's kind of about the capacity market in 2028 and 2025. In 2025, we won.

Speaker #1: It was a good decision. With this unit, we could provide a stable system. So regardless of this transition that we are undergoing right now, I think we are able to face it.

Grzegorz Lot: We have received the most of all capacities, financed by state. We were the second company financed by National Fund for Environmental Protection and Water Management. What do we expect, actually? Or maybe the question is, if we think that it will support our financial results in the H2 of the year? Yes, I believe it will. The warehouses should eliminate this value.

Speaker #1: So, we also won a contract for 2027 in the capacity auction, and I think we need to win the auction for 2028. So then we'll be able to discuss this year.

Speaker #1: So there are projects ongoing, but the reality is we are verifying everything. Pragmatism is crucial. Our position here is that as long as we don't commission these units—gas units, renewable units—we need to have some kind of backup, because we need to provide our customers with energy 24/7.

Grzegorz Lot: It can be, of course, spent on the margin or on lowering the costs, on improving our competitiveness and increasing the volume. As Michał said, it is 700 MW. It is another warehouse. We can see a great potential. Without such warehouses on such a scale, also dispersed ones, this transition will be very difficult, and it will be very difficult to deliver the price which is now present in the European Union. That is the question. The third question puts a difficult one. We are getting back a little bit to the history that happened 3 years ago. The question refers also to 2028. It is a kind of capacity market in 2028 and 2095. In 2025, we won. It was a good decision. With these units, we could provide a stable system.

Speaker #1: There is an option, and we are, right now, under—it's right now under discussion. So we are ready. We have a strategy that we are presenting right now.

Speaker #1: Zero emissions. Opening the world of new energy. And I believe that we can compete with this union. We have a precise, specific offer. We can work longer, you know, even in 2029 or 2030. When you look at the legislation in the European Union, there are several regulations that talk about 350 kilograms per megawatt.

Grzegorz Lot: That is the question. The third question puts a difficult one. We are getting back a little bit to the history that happened 3 years ago. The question refers also to 2028. It is a kind of capacity market in 2028 and 2095. In 2025, we won. It was a good decision. With these units, we could provide a stable system.

Speaker #1: And then you can run your business activity. It means that those units can work on a particular number of days throughout the year, so it means that they are also needed.

Speaker #1: So of course, it requires special legalizations, special legislation decisions. The system of work on these units, which somehow makes them work differently than they were designed, doesn't help at all.

Speaker #1: So, on one hand, there's capital expenditure that needs to be done, and on the other hand, this 'plumber system' of support. It is possible. We believe in it.

Grzegorz Lot: Regardless of this transition that we are undergoing right now, I think we are able to face it. We also won a contract for 2027 in the capacity auction, and I think we need to win the auction for 2028, and then we will be able to discuss this year. There are projects undergoing, but the reality will verify everything. Pragmatism is crucial. Our position here is that as long as we do not commission these units, gas units, renewable units, we need to have backup because we need to provide our customers with energy 24/7. There is an option, and it is right now under discussion. We are ready. We have a strategy that we are presenting right now, zero emission, opening the world of new energy. I believe that we can compete with these units. We have a precise, specific offer.

Speaker #1: Those units can operate, but of course, it needs to be profitable, and it also needs a proper business plan and business case.

Speaker #1: Wojciech Jakubik would like to ask another question, so let's give him the floor.

Grzegorz Lot: Our position here is that as long as we do not commission these units, gas units, renewable units, we need to have backup because we need to provide our customers with energy 24/7. There is an option, and it is right now under discussion. We are ready. We have a strategy that we are presenting right now, zero emission, opening the world of new energy. I believe that we can compete with these units. We have a precise, specific offer.

Speaker #2: Thank you. A quick question about the profitability of more investments like offshore, because Tauron used to communicate about it. Now there are many geopolitical issues, and I can see that it's not as profitable as before.

Speaker #2: What's its effect on the long-term plans? And also, energy prices, because Polska Grupa Energetyczna gave the specific cost of energy from coal and gas, and the conclusion is not now that coal production is more profitable right now.

Speaker #2: It's over 200—a lot of difference. And what's your data on it? The first question first: well, our strategy is clear. When it comes to renewables, wind farms will continue to be the default. We have a share in one joint project with PGE Offshore, and this is not a project which has been undergoing an intense phase of preparation.

Grzegorz Lot: We can work longer, even in 2029, 2030. When you look at the legislation in the European Union, there are several regulations that talk about 350 kilograms per megawatts, and then you can run your business activity. It means that those units can work on a particular number of days throughout the year. So it means that they are also needed. Of course, it requires special localizations, legislation, and decisions. The system of work on these units, which somehow makes them work different than they were designed, doesn't help at all. So on one hand, CapEx that needs to be done, and on the other hand, this supplementary system of support. It is possible. We believe in it, and those units can operate. But of course, there needs to be demand for it, and it needs also a proper business plan and business case.

Speaker #2: So there are no plans to boost the scale of offshore planning. And if you think about profitability of renewables now, commercial PV without storage is a very, is a difficult business case.

Grzegorz Lot: Of course, it requires special localizations, legislation, and decisions. The system of work on these units, which somehow makes them work different than they were designed, doesn't help at all. So on one hand, CapEx that needs to be done, and on the other hand, this supplementary system of support. It is possible. We believe in it, and those units can operate. But of course, there needs to be demand for it, and it needs also a proper business plan and business case.

Speaker #2: That's why we are looking for preferential funding options. Are there any additional advantages to projects with a hybrid formula with storage? And with onshore wind here, the supply is quite low.

Speaker #2: The general master plan in Poland is now coming into effect. So this blocked new projects for some time. Now, you can either buy existing projects or buy projects that have a long and difficult history.

Olga Kostrzewska-Cichoń: Wojciech Jakubik would like to ask another question, so let's give him the floor.

Speaker #2: Now, if you have a good and well-configured project with good conditions, it is and will be profitable. But there are few projects that meet these conditions.

Wojciech Jakubik: Thank you. A quick question about the profitability of more investments like offshore, because Tauron used to communicate about it. Now there are many geopolitical issues, and I can see that it's not as profitable as before. What's its effect on the long-term plans and also energy prices? Because PGE Polska Grupa Energetyczna gave the specific cost of energy from coal and gas, and the conclusion is now that coal production is more profitable right now with over $200 of difference. What's your data on it?

[Analyst 2]: Thank you. A quick question about the profitability of more investments like offshore, because Tauron used to communicate about it. Now there are many geopolitical issues, and I can see that it's not as profitable as before. What's its effect on the long-term plans and also energy prices? Because PGE Polska Grupa Energetyczna gave the specific cost of energy from coal and gas, and the conclusion is now that coal production is more profitable right now with over $200 of difference. What's your data on it?

Speaker #2: But this situation is going to change. Two years ago, there was a legislative amendment. So, once the master plans have been approved—this is expected to happen this year already.

Speaker #2: There will be more projects available, and we think that they might be attractive, economically speaking.

Speaker #1: Talking about the prices, you know, of course, it is most profitable to open with wind and with sunlight. Which means that, you know, coal is to be eliminated.

Speaker #1: Of course, we are talking about the long-term plan. And with the high prices of gas, you know a lot of countries load their batteries, their storages, so it's more profitable now to use gas, to hold in from gas.

Grzegorz Lot: Well, our strategy is clear when it comes to the RES. Wind farms will continue to be the default for

Grzegorz Lot: Well, our strategy is clear when it comes to the RES. Wind farms will continue to be the default forWe have a share in one joint project with PGE Offshore, and this is not a project which has been undergoing an intense phase of preparation, so there are no plans to boost the scale of offshore planning. If you think about profitability of renewables, commercial PV without storage is a difficult business case.

Michał Orłowski: We have a share in one joint project with PGE Offshore, and this is not a project which has been undergoing an intense phase of preparation, so there are no plans to boost the scale of offshore planning. If you think about profitability of renewables, commercial PV without storage is a difficult business case. That is why we are looking for preferential funding options or any additional advantages from projects, also with the hybrid formula with storage. Wind onshore, here the supply is quite low. The General Master Plans in Poland are now coming into effect, so this blocked new project for some time. Now you can either buy existing projects or buy projects which have a long and difficult history.

Speaker #1: That's the reality. Getting back to the first question, actually, if there is a lower demand for supply of coal—and there's going to be a demand—so again, the market is going to react.

Speaker #1: So somehow we don't know what the situation is going to be like—I mean, the supply versus demand—and we don't know what's going on, what's going on between gas and coal.

Speaker #1: What's going to happen there? So I feel quite humble to talk, you know, precisely about what's going to happen in a few months. I don't want to predict anything for sure.

Grzegorz Lot: That is why we are looking for preferential funding options or any additional advantages from projects, also with the hybrid formula with storage. Wind onshore, here the supply is quite low. The General Master Plans in Poland are now coming into effect, so this blocked new project for some time. Now you can either buy existing projects or buy projects which have a long and difficult history.

Speaker #1: And answering your question, yes, we have some data, but we don't share them in a really transparent way. As President, Mr. President said, we can see that our profitability has risen, especially the production from coal, and we just applied it in the first half of our year.

Speaker #1: And we production. An increase in supply on the market, especially in situations with higher prices, we try to take benefit of this situation, and we try to build on the emerging on the commercial use.

Grzegorz Lot: If you have a good and well-configured project with good wind conditions, it is and will be profitable, but there are few projects that meet these conditions. This situation is going to change. Two years ago, there was a legislation amendment. Once the master plans have been approved, this is expected to happen this year already, there will be more projects available. We think that they might be attractive, economically speaking.

Speaker #1: And another question is coming. I would like to ask you about the G tariff price. From your perspective with your contract, is it possible to have the same level of the tariff, also bearing in mind that there is going to be an election in Poland, and depression is going to be high?

Grzegorz Lot: Talking about the prices, it is of course, most profitable to benefit from wind and from the sunlight, which means that coal is to be eliminated. Of course, we are talking about the long-term plan. With the high prices of gas, a lot of countries load their batteries, their storages. It is more profitable now to hold them from gas. That is the reality. Getting back to the first question, if there is a lower demand for supply of coal, and there is going to be a demand, the market is going to react. Somehow we do not know what the situation is going to be like, the supply versus demand, and we do not know what is going on between gas and coal, what is going to happen there. I feel quite humble to talk precisely what is going to happen in few months.

Krzysztof Surma: Talking about the prices, it is of course, most profitable to benefit from wind and from the sunlight, which means that coal is to be eliminated. Of course, we are talking about the long-term plan. With the high prices of gas, a lot of countries load their batteries, their storages. It is more profitable now to hold them from gas. That is the reality.

Speaker #1: And the second question is that I have seen energy and volume, but can you show us the number of customers—the number of customers in small and medium enterprises and businesses? Is this number growing or falling?

Speaker #1: And so, the second answer is growing. We are going to find these numbers soon. So there is an increase in small and medium enterprises, and of course, households as well.

Krzysztof Surma: Getting back to the first question, if there is a lower demand for supply of coal, and there is going to be a demand, the market is going to react. Somehow we do not know what the situation is going to be like, the supply versus demand, and we do not know what is going on between gas and coal, what is going to happen there. I feel quite humble to talk precisely what is going to happen in few months.

Speaker #1: So this is this trend that we somehow changed. It was challenging, and right now, in this competitive market, small and medium enterprises are the most competitive market.

Speaker #1: So, we've managed to change this trend. They are coming back to us. So, this increase is really positive. We have more and more customers.

Speaker #1: And the first part of the question was, I think, some kind of—let's say—intellectual hack on me, so of course I'm not going to talk about the G tariff for next year.

Krzysztof Surma: I do not want to predict anything for sure. Answering your question, yes, we have some data, but we do not share them in a really transparent way. As Mr. President said, we can see that our profitability has risen, especially the production from coal, and we just applied it in the H1 of our year, and we can see an increase in production and increase in supply on the market, especially in the situation with higher prices. We try to take benefit of this situation, and we try to build on the margin on the commercial use. Another question is coming. Rafał Zasiński from Sekina Principle. I would like to ask you about the G tariff price.

Speaker #1: But I would like to say one thing. I think that we spent too much time on tariffs. I can tell you the price of energy for the next year, and even for the next 10 years.

Speaker #1: We don't need to wait this term, actually, because the price of energy, which is 495 zloty, can be the same for the next four or five years, or even nine.

Speaker #1: And when it goes about the tariff I understand your idea why you ask such a question. Actually it's ahead of us. There is a resolution that has just been into effect so it means that we are going to subscription fees are going to be changed and moved or split into in the permanent ones and right now we are you know applying to the regulatory office and then we are going to apply for the next year.

Olga Kostrzewska-Cichoń: Another question is coming. Rafał Zasiński from Sekina Principle.

Rafał Zasuń: I would like to ask you about the G tariff price. From your perspective, with your contracts, is it possible to have the same level of the tariff, also bearing in mind that there is going to be election in Poland and depression is going to be high? The second question is that I have seen EBITDA and volume, but can you show us the number of customer in SME and business? Is this number growing or falling?

Rafał Zasiński: From your perspective, with your contracts, is it possible to have the same level of the tariff, also bearing in mind that there is going to be election in Poland and depression is going to be high? The second question is that I have seen EBITDA and volume, but can you show us the number of customer in SME and business? Is this number growing or falling? The second answer is growing. We are going to find this number soon. There is an increase in SME and of course households as well. This is the trend that we somehow changed. It was challenging. Right now, on this competitive market, SME are the most competitive market. We have managed to change this trend. They are coming back to us, so this increase is really positive.

Speaker #1: Nine years, yes, nine years plus the permanent charge, and there is also a kind of guarantee for that. So there is a kind of guarantee for the customer that the product is going to leave our company. And we run some such company with Polish insurance company Pezat U, and that's a particular value. And 50% of our customers have already had products with such guarantees.

Grzegorz Lot: The second answer is growing. We are going to find this number soon. There is an increase in SME and of course households as well. This is the trend that we somehow changed. It was challenging. Right now, on this competitive market, SME are the most competitive market. We have managed to change this trend. They are coming back to us, so this increase is really positive.

Speaker #1: I mean dynamic products with tanie godziny, and this is the direction that we believe is the most interesting one. In each tariff group, we have had an increase in households, in businesses, and in large businesses was the highest.

Grzegorz Lot: We have more and more customers. The first part of the question was some kind of, I think, intellectual hack on me. Of course, I am not going to talk about the detail for the next year, but I would like to say one thing. I think that we spent too much time on tariffs. I can tell you the price of energy for the next year and even for the next 10 years. We do not need to wait for this tariff, actually, because the price of energy, which is 495 złotys, can be the same for the next four or five years or nine. When it goes about the tariff, I understand your idea why you ask such a question. Actually, it is ahead of us. There is a resolution that has just been into effect.

Speaker #1: Actually, in every tariff group there has been an increase, half year on half year. It's about 8% on average, but in large business it was even, I believe, 10%.

Speaker #1: But somehow, I have a feeling that I didn’t address the question straightforwardly. As you understand, it’s a really sensitive element of our work.

Speaker #1: Another question.

Grzegorz Lot: We do not need to wait for this tariff, actually, because the price of energy, which is 495 złotys, can be the same for the next four or five years or nine. When it goes about the tariff, I understand your idea why you ask such a question. Actually, it is ahead of us. There is a resolution that has just been into effect.

Speaker #2: Four mornings ago, I made a call and asked WNP. The first question is: when are you expecting to award the job of contract engineer for Jaworzno? And going back to the capacity action, except for new Jaworzno, what capacity of coal units will be outside of the capacity market at the beginning of 2027 and what will be their role? Will they be a backup for the contract units, or will they have a different function?

Grzegorz Lot: It means that subscription fees are going to be changed and moved or split into two in the permanent one. Right now we are applying to the regulatory office, and then we are going to apply for the next year. Nine years. Yes. Nine years plus this permanent charge. There is also kind of guarantee for that. There is a kind of guarantee for the customer that the product is going to leave our company, and we run such company with Polish insurance company, PZU. That is a particular value, and 50% of our customers have already had products with such guarantees. I mean, dynamic products with Tanie Godziny. This is the direction that we believe the most interesting one. In each tariff group, we have had an increase. In households, in businesses, and in large businesses was the highest.

Speaker #2: Thirdly as to your expert knowledge and insider information what are the chances for the exchange traded bonds listed bonds for electricity to come back is it is it likely to come back?

Speaker #2: Thank you. So let me begin with the issue of the contract engineer. The procedure is ongoing and in Q4 it should end, and we will select the engineer depending on the questions in the procedure, etc. It might be October or later, but this is the expected deadline.

Grzegorz Lot: That is a particular value, and 50% of our customers have already had products with such guarantees. I mean, dynamic products with Tanie Godziny. This is the direction that we believe the most interesting one. In each tariff group, we have had an increase. In households, in businesses, and in large businesses was the highest.

Speaker #2: And now the capacity auction. With every auction, the strategy and the situation are different. Now, 200 units are a backup for other units.

Grzegorz Lot: Actually, in every tariff group, there has been an increase H1 on H1. It is about 8% on average, but in large business, it was even, I believe, 10%. Somehow I have a feeling that I did not address the question straightforward. As you understand, it is a really sensitive element of our work. Another question.

Speaker #2: This is how we joined the capacity market. We won the capacity market for all the units, and the 200 units are now operating in, so yes, everywhere. This is because of stress.

Speaker #2: They function based on the terms of the capacity market, or they are backup. And let me not reveal the secret of what and where, because next year we are also going to take part in the auction, and it's different than last year; probably next year it's also going to be different.

Olga Kostrzewska-Cichoń: Another question.

Marek Chojnacki: Good morning. I am Marek Chojnacki, WNP.pl. The first question is, when are you expecting to award the job of the contract engineer for Jaworzno? Going back to the capacity auction, except for new Jaworzno, what capacity of coal units will be outside of the capacity market at the beginning of 2027? What will be their role? Will they be a backup for the contracted units, or will they have a different function? Thirdly, as to your expert knowledge and insider information, what are the chances for the exchange-traded bonds, listed bonds for electricity to come back? Is it likely to come back? Thank you.

Marek Kłonowski: Good morning. I am Marek Chojnacki, WNP.pl. The first question is, when are you expecting to award the job of the contract engineer for Jaworzno? Going back to the capacity auction, except for new Jaworzno, what capacity of coal units will be outside of the capacity market at the beginning of 2027? What will be their role? Will they be a backup for the contracted units, or will they have a different function? Thirdly, as to your expert knowledge and insider information, what are the chances for the exchange-traded bonds, listed bonds for electricity to come back? Is it likely to come back? Thank you.

Speaker #2: Unfortunately, it's off mic. I don't know. We always adapt to the regulatory situation, so the fewer the changes, the better for us. Speaking about the bonds, we were clear in our communication about our position, and this hasn't changed. This will come back. While we have no idea...

Speaker #2: And also, there are many things now ongoing—the financing of huge investment projects, the capacity auction issues, and the transition of the industry—so there are many variables here we need to take into consideration.

Michał Orłowski: Let me begin with the issue of the contract engineer, that the procedure is ongoing, and in Q4 it should end, and we will select the engineer. Depending on the questions in the procedure, it might be October or later, but this is the expected deadline. Now the capacity auction. With every auction, the strategy and the situation is different. Now, 200 units are a backup for other units. This is how we join the capacity market. We won the capacity market for all the units, and the 200 units are now operating in Łaziska, Jaworzno, Łagisza-Siersza. Yes, everywhere. This is because of stress. They function based on the terms of the capacity market or as a backup.

Speaker #2: Pavel Puchalski, Erste Bank Polska. I have two simple questions. First, the level of contracting and how—Ron, speaking about the energy sold for 2027. And Chair, you focus on customers, but I’m always focused on EBITDA, and I’m looking at the EBITDA in Q2.

Michał Orłowski: Now, 200 units are a backup for other units. This is how we join the capacity market. We won the capacity market for all the units, and the 200 units are now operating in Łaziska, Jaworzno, Łagisza-Siersza. Yes, everywhere. This is because of stress. They function based on the terms of the capacity market or as a backup.

Speaker #2: There's a loss of seven million. Is it something you would expect to repeat in the quarters to come, or maybe there was an exceptional situation that took place in this quarter?

Speaker #2: Well, speaking about contract contracting in the supply segment, you have to split the portfolios. You have the tariff portfolio, which means that the purchase is made ahead and the amount of electricity is already secured.

Grzegorz Lot: Let me not reveal the secrets of what and where, because next year we are also going to take part in the auction, and it is different than last year. Probably next year it is also going to be different. Unfortunately, it is off mic. I do not know. We always adapt to the regulatory situation, so the fewer the changes, the better for us. Speaking about the bonds, we were clear in our communication about our position, and this has not changed, but whether this will come back, we have no idea. Also, there are many things now ongoing. The financing huge investment projects, the capacity auction issues, the transition of the industry. So there are many variables here we need to take into consideration.

Speaker #2: I'm not going to give you the specific figures, but this is the general market practice in this portfolio. Now, the business segment I'm under will not be as conservative there in terms of backing up.

Speaker #2: So here this is back to back. Every supply contract is secured simultaneously on the market. So we secured 100% of the energy, but the peak season is already ahead of us.

Grzegorz Lot: Speaking about the bonds, we were clear in our communication about our position, and this has not changed, but whether this will come back, we have no idea. Also, there are many things now ongoing. The financing huge investment projects, the capacity auction issues, the transition of the industry. So there are many variables here we need to take into consideration.

Speaker #2: This is the peak contracting season, so we will have to secure the portfolio additionally during this time. We told you last year that there was this risky element of business contract contraction.

Speaker #2: This is what we communicated last year. That's why, for the whole year, we've been working to convert our customers—to make them switch to the market-based options, where the risk is smaller.

Speaker #2: And this has an effect on the margin as well. But it's very good in terms of the risk, especially if the price is volatile.

Speaker #2: So there’s been a question about the loss. Strategically, I will pass this on to Krzysztof. Yes, as I’ve said, this segment is not performing very well this year in terms of EBITDA.

Paweł Puchalski: Paweł Puchalski, Erste Bank Polska. I have two simple questions. First, the level of contracting in TAURON, speaking about the energy sold for 2027. Chair, you focus on customers, but I am always focused on EBITDA, and I am looking at the EBITDA in Q2. There is a loss of -7 million. Is it something you would expect to repeat in the quarters to come? Or maybe there was an exceptional situation that took place in this quarter. Speaking about the contractation, the segment of supply, you have to split the portfolios. You have the tariff portfolio, which means that the purchase is made ahead and most of the electricity is already secured. I am not going to give you the specific figures, but this is the general market practice in this portfolio. Now, the business segment. My answer will not be a direct one.

Speaker #2: We are under a huge pressure here because the G tariff is relatively low and profile cost is growing. So Q3 is not going to be favorable for the profile cost, because this is when this cost is the highest and the price difference is the highest usually, so the segment will continue to be under pressure till the end of the year.

Speaker #2: Ladies and gentlemen, are there any more questions? Please be brief. There is one very emotional—before prosumers, the clearing, why the first of August was...

Grzegorz Lot: Speaking about the contractation, the segment of supply, you have to split the portfolios. You have the tariff portfolio, which means that the purchase is made ahead and most of the electricity is already secured. I am not going to give you the specific figures, but this is the general market practice in this portfolio. Now, the business segment. My answer will not be a direct one.

Speaker #2: That is the clearing date, because it's not good for those who use more energy in winter, since they will pay more in winter and they won't be able to get the money back until the summer.

Paweł Jabłoński: We are very conservative there in terms of backing up. This is back-to-back. Every supply contract is secured simultaneously on the market. We secured 100% of the energy, but the peak season is already ahead of us, the peak contracting season, so we will have to secure the portfolio additionally in this time. We told you last year that there is this risky element last year of business contractation. This is what we communicated last year. That is why for the whole year, we have been working to convert our customers to make them switch to the market-based options where the risk is smaller. This has an effect on the margin as well. It is very good in terms of the risk, especially if the price is volatile. There has been a question about the loss. Strategically, I will pass this on to Krzysztof.

Grzegorz Lot: We are very conservative there in terms of backing up. This is back-to-back. Every supply contract is secured simultaneously on the market. We secured 100% of the energy, but the peak season is already ahead of us, the peak contracting season, so we will have to secure the portfolio additionally in this time. We told you last year that there is this risky element last year of business contractation.

Speaker #2: It would be easier to set the date for the 31st of December. Yes, you could have done it, but at the moment the clearing actually settles the actual use of energy—the actual consumption—which affects your bills.

Speaker #2: So, prosumers—the best option for them, so in metering, please bear in mind that this 1.2 million customers, it's a huge pro promo program. Customers use the network as a storage; this is a huge topic, a huge burden for the industry. But yes, we opted in.

Grzegorz Lot: This is what we communicated last year. That is why for the whole year, we have been working to convert our customers to make them switch to the market-based options where the risk is smaller. This has an effect on the margin as well. It is very good in terms of the risk, especially if the price is volatile. There has been a question about the loss. Strategically, I will pass this on to Krzysztof.

Speaker #2: Now, six- or twelve-month settlement periods is a huge disruption for this segment because you have to make forecasts for the consumption and generation of electricity.

Speaker #2: So you can easily make a mistake and this costs and also it's a burden for the customer service. It's also problematic for the customers themselves all the prosumers have smart meters and 24 hours day taxes they have an app so the real actual one month settlement per period or two month is the best for both parties.

Krzysztof Surma: Yes, as I have said, this segment is not performing very well this year in terms of EBITDA. We are under a huge pressure here because the G tariff is relatively low and the profile cost is growing. Q3 is not going to be favorable for the profile cost because this is when this cost is the highest and the price difference is the highest usually. The segment will continue to be under pressure till the end of the year. Ladies and gentlemen, are there any more questions? Please be brief. There is one very emotional issue for prosumers, the clearing. Why was 31 August set as the clearing date, because it is not good for those who use more energy in winter, because they will pay more in winter and they will not be able to get the money back until the summer.

Speaker #2: You pay per use, or then you gain thanks to storage. So now, let's move on to questions online, which are asked in our form.

Olga Kostrzewska-Cichoń: Ladies and gentlemen, are there any more questions? Please be brief.

Speaker #2: The first question is: How much has already been spent from the pool of low-cost loans under the National Recovery Plan, and when will we see a more significant reduction in financing costs as a result?

[Analyst 3]: There is one very emotional issue for prosumers, the clearing. Why was 31 August set as the clearing date, because it is not good for those who use more energy in winter, because they will pay more in winter and they will not be able to get the money back until the summer.

Speaker #2: So, as you could see in the slides, those are preferential financing, and also financing in the program. So, it's about 2.6 billion zlotys as of June 30th, and it was received from the plan.

Speaker #2: This is kind of refinancing. So it means first we spent and then we apply for refinancing. So in the next slide on the next slide you can also see that it's about 17 billion lotus and now the cost of financing which you could see in the first half of the year there was a significant decrease about 80 million lotus it's the interest cost half year over on half year.

Grzegorz Lot: It would be easier to set the date for 31 December. Yes, you could have done it, but the settlement, the clearing, actually settles the actual use of energy, the actual consumption, which affects your bills. Prosumers, the best option for them. In metering, please bear in mind that this 1.2 million customers, it is a huge promo program. Customers use the network as a storage. This is a huge topic, a huge burden for the industry. Yes, we opted in. Now, 6 or 12 months settlement periods is a huge disruption for the segment because you have to make forecasts for the consumption and generation of electricity. You can easily make a mistake, and this costs. Also, it is a burden for the customer service. It is also problematic for the customers themselves. All the prosumers have smart meters and 24-hour data access.

Speaker #2: So I believe it's a significant decrease, and how much—how big is the influence of the National Recovery Plan versus other financing? This also applies to the value of the market in the next several years.

Speaker #2: When this debt is going to be due, so it's 1 percentage point, 601 billion. So with a simple assumption, we can say it's 5 percentage points between the market.

Grzegorz Lot: Yes, we opted in. Now, 6 or 12 months settlement periods is a huge disruption for the segment because you have to make forecasts for the consumption and generation of electricity. You can easily make a mistake, and this costs. Also, it is a burden for the customer service. It is also problematic for the customers themselves. All the prosumers have smart meters and 24-hour data access. They have an app. The real actual one-month settlement period or 2 months is the best for both parties. You pay per use, or then you gain, thanks to storage.

Speaker #2: So the year scale is about more than 100 million, let's say 130 million. So the difference is 5 percentage points. If we consider 17 billion, then 1 percentage point is about 170 million in savings per year.

Speaker #2: So actually, we are not able to say really precisely the cost of financing from a perspective of several years. If we can observe the costs of financing bonds and the profitability, which is about 6 percentage points, and if it’s not, the majority of the statement is 0.5 percentage points.

Grzegorz Lot: They have an app. The real actual one-month settlement period or 2 months is the best for both parties. You pay per use, or then you gain, thanks to storage.

Speaker #2: So this is the difference of 5 percentage points between the preferential financing and commercial debt. But whether the profitability and financing is going to be about 6 percent, I believe it's quite a high percent, but I cannot predict it.

Krzysztof Surma: So now let's move on to questions online, which are asked in our form. The first one is, how much has been already spent from the pool of low-cost loans under the National Recovery and Resilience Plan, and when will we see a more significant reduction in financing costs as a result? As you could see in the slides, those preferential financing and also financing in the program. So it's about PLN 2.6 billion on 30 June, and it was received from National Recovery and Resilience Plan. This is kind of refinancing. So it means first we spend and then we apply for refinancing. So on the next slide, you can also see that it's about PLN 17 billion. Now the cost of financing, which you could see in H1, there was a significant decrease, about PLN 80 million.

Olga Kostrzewska-Cichoń: So now let's move on to questions online, which are asked in our form. The first one is, how much has been already spent from the pool of low-cost loans under the National Recovery and Resilience Plan, and when will we see a more significant reduction in financing costs as a result?

Speaker #2: So, it's about 170 billion a year. What impact are the sharp rises in energy prices having on the company's results, and does this not pose a risk for trading next year?

Krzysztof Surma: As you could see in the slides, those preferential financing and also financing in the program. So it's about PLN 2.6 billion on 30 June, and it was received from National Recovery and Resilience Plan. This is kind of refinancing. So it means first we spend and then we apply for refinancing. So on the next slide, you can also see that it's about PLN 17 billion. Now the cost of financing, which you could see in H1, there was a significant decrease, about PLN 80 million. It's the interest cost on half year. So I believe it's a significant decrease.

Speaker #2: How does this affect energy repurchase in conventional generation? The answer is going to be divided into two periods. First, the current year, which we have already mentioned—our hedging policy is conservative.

Speaker #2: So, entering the year of execution, most of our positions are closed. So there is no exposure to risk, which is actually pretty limited.

Speaker #2: And this is how it happened, and I mentioned it before. So we took advantage of this chance, and the CDS were used by us, and now referring to the part of influence.

Speaker #2: So it affects our productivity. So we increased our productivity and the sales from repurchase, and now to show you the scale. So the repurchase was about 700 gigawatt hours and now it's about 600–700 right now.

Krzysztof Surma: It's the interest cost on half year. So I believe it's a significant decrease. How big is the influence of National Recovery and Resilience Plan versus other financing? So it also applies to the value of the market in the next several years when this debt is going to be due. So it's 1 percentage point, PLN 601 billion. So with a simple assumption, we can say it's 5 percentage points between the market. So the year scale is about more than PLN 100 million, PLN 130, let's say. So the difference is 5 percentage points. If we consider the whole scale of PLN 17 billion, so 1 percentage point is about PLN 170 million in savings per year. So actually, we are not able to say really precisely the cost of financing in the perspective of several years.

Olga Kostrzewska-Cichoń: How big is the influence of National Recovery and Resilience Plan versus other financing?

Krzysztof Surma: So it also applies to the value of the market in the next several years when this debt is going to be due. So it's 1 percentage point, PLN 601 billion. So with a simple assumption, we can say it's 5 percentage points between the market. So the year scale is about more than PLN 100 million, PLN 130, let's say. So the difference is 5 percentage points. If we consider the whole scale of PLN 17 billion, so 1 percentage point is about PLN 170 million in savings per year. So actually, we are not able to say really precisely the cost of financing in the perspective of several years.

Speaker #2: And the contracting is ongoing right now, and the increase in energy prices is not really as significant as the volatility. So, the price changes, and we want to see it as a kind of chance rather than a risk.

Speaker #2: So we want to also secure risk on the side of costs. Is the increase in coal consumption and conventional generation within the group accounting continuing in the third quarter, and is it likely to persist in the coming months?

Speaker #2: If so, are supplementary coal purchases required, and what are the volumes, sources of the coal, and, of course, prices involved? And again, I think I already answered this question.

Speaker #2: So, just to sum up, the energy sales contracts all include secure contracts. Next question: I would like to ask, what year-on-year growth in capital expenditure can we expect in 2026?

Krzysztof Surma: If we can observe the costs of financing bonds and profitability, which is about 6 percentage point, and if we know that the majority of this statement is 0.5 percentage points, so this is the difference of 5 percentage points between the preferential financing and commercial debt. But whether the profitability and financing is going to be about 6%, I believe it's quite high percent, but I cannot predict it. So it's about PLN 170 billion a year. What impact are the sharp rises in energy prices having on the company's result, and does this not pose risk for trading next year? How does this affect energy repurchase in conventional generation? The answer is going to be divided into two periods. Current year, which we have already mentioned. So our hedging policy is conservative.

Speaker #2: So, capital expenditure in 2026 is going to foster and accelerate a lot of projects that are in the first phase right now. But then, are we going to start this stage of financing?

Speaker #2: There are some events which can affect the difference between investment and expenditure, like in Minskagurka. So, it can really affect the expenditure, and there are some projects of acquisition of renewable sources of energy which can finish in a positive or negative way.

Olga Kostrzewska-Cichoń: What impact are the sharp rises in energy prices having on the company's result, and does this not pose risk for trading next year? How does this affect energy repurchase in conventional generation?

Michał Orłowski: The answer is going to be divided into two periods. Current year, which we have already mentioned. So our hedging policy is conservative. Entering the year of execution, most of our positions are closed, and there is no exposition to risk, which is actually pretty limited. This is how it happened, and I mentioned it before. So we took advantage of this chance and the CDSs were used by us and now referring for the part of influences. So it affects our productivity, so increase our productivity and the sales from repurchase.

Speaker #2: But generally, the distribution in those projects year on year is as in the first half of the year: so, renewables, and in wind farms in the heat sector.

Krzysztof Surma: Entering the year of execution, most of our positions are closed, and there is no exposition to risk, which is actually pretty limited. This is how it happened, and I mentioned it before. So we took advantage of this chance and the CDSs were used by us and now referring for the part of influences. So it affects our productivity, so increase our productivity and the sales from repurchase. Now to show you the scale. So the repurchase was about 700 gigawatt per hour, and now it's about 700 right now. The contracting is undergoing right now, and the increase in prices of the energy is not really significant as much as volatility. So the price changes, and we want to see it as a kind of chance rather than risk. So we want to also secure risk on the side of costs.

Speaker #2: So they are accelerating. It's hard to say because there are a lot of factors that can influence this level. However, these expenditures are going to rise much more quickly than the previous year, and I believe that this year is going to be more than last year—let's say maybe 20, maybe 30 percent—but it depends on a lot of factors.

Speaker #2: The consensus EBITDA for 2026 is approximately PLN 6.62 billion. Consider this to be based on ambitious assumptions. You know that we don't post our own forecast, so this consensus and the forecasts are pretty wide.

Michał Orłowski: Now to show you the scale. So the repurchase was about 700 gigawatt per hour, and now it's about 700 right now. The contracting is undergoing right now, and the increase in prices of the energy is not really significant as much as volatility. So the price changes, and we want to see it as a kind of chance rather than risk. So we want to also secure risk on the side of costs.

Speaker #2: There is no one answer, let's say. However, is it ambitious? I would like to bear in mind the financial results from the first half of the year, and maybe, yes, maybe I can say it is an ambitious scenario.

Krzysztof Surma: Is the increase in coal consumption and conventional generation within the group accounting continuing in Q3 and likely to persist in the coming month? If so, are supplementary coal purchases required? What are the volume sources of the coal and of course, prices involved? I think I have already answered this question. Just to sum up, the energy sale contracts all include secured contracts. Next question. I would like to ask what year-on-year growth in CapEx can we expect in 2026? CapEx in 2026 are going to foster and accelerate a lot of projects which are in the first phase right now, but then are we going to start this stage of financing. There are some events which can affect the yearly result, especially the difference between investment and expenditure, like in Miejska Górka.

Olga Kostrzewska-Cichoń: Is the increase in coal consumption and conventional generation within the group accounting continuing in Q3 and likely to persist in the coming month? If so, are supplementary coal purchases required? What are the volume sources of the coal and of course, prices involved?

Speaker #2: If you analyze some situation and you believe it's something really ambitious so then we try to like really deliver it even if it's on the grow on the border of kind of miracles.

Speaker #2: So, somebody's listening to our conference today. We're talking about prosumers, and the payment will be made every month. So, it's going to be a monthly payment per real use.

Michał Orłowski: I think I have already answered this question. Just to sum up, the energy sale contracts all include secured contracts.

Speaker #2: And production generation. But everything with the prosumer has been gathered in the year. Batteries also bring benefits, I mean amounts, for example. So, everything is going to be included in monthly settlements.

Olga Kostrzewska-Cichoń: Next question. I would like to ask what year-on-year growth in CapEx can we expect in 2026?

Michał Orłowski: CapEx in 2026 are going to foster and accelerate a lot of projects which are in the first phase right now, but then are we going to start this stage of financing. There are some events which can affect the yearly result, especially the difference between investment and expenditure, like in Miejska Górka.

Speaker #2: So, for example, if somebody has used energy in winter but stored in summer, it's going to influence the price. The way—the method of payment—doesn't influence how much energy has been stored.

Speaker #2: So there is no possibility it's going to be, like, zero payment.

Michał Orłowski: It can really affect the expenditure, and there are some projects of acquisition of renewable sources of energy, which can finish in a positive or negative way. But generally, the distribution in those projects year-on-year is as in the H1. So renewables and in wind farms, in heat sector, so they are accelerating. It is hard to say, because there are a lot of factors that can influence this level. However, this expenditure are going to rise much more quickly than previous year, and I believe that this year is going to be more than last year, but let's say maybe 20%, maybe 30%, but it depends on a lot of factors. The consensus EBITDA for 2026 is approximately PLN 6.62 billion. Do you consider these to be ambitious assumptions? You know that we do not post our forecasts, so this consensus and the forecasts are pretty wide.

Speaker #1: Could you can you say something about DPS for 2027 the consensus is. 20.2. This per. Is it realistic given the the Capex well let me make a reference to our policy and our dividends payment for 2025 what are many factors of play here our financial results liquidity and the the plan the Capex but the 2026 we communicated that we would like to start paying the dividend and we would like it to be a permanent process not a one off.

Speaker #1: I'm not going to speak about the amount. We have set our goals and communicated that clearly, and this doesn't change. We will always be conservative when it comes to our financial capacity, but this was our goal in mind when we started paying dividends in 2026.

Olga Kostrzewska-Cichoń: The consensus EBITDA for 2026 is approximately PLN 6.62 billion. Do you consider these to be ambitious assumptions?

Krzysztof Surma: You know that we do not post our forecasts, so this consensus and the forecasts are pretty wide. There is no one answer, let's say. However, is it ambitious? I would like to bear in mind the financial results from the H1, and maybe, yes, maybe I can say it is an ambitious scenario. If you analyze some situation and you believe it is something really ambitious, so then we try to really deliver it, even if it is on the border with miracles.

Speaker #1: So this Management Board has the ambition to carry through the transition and also share the profits. So dividend is very important to us, as we said from the very beginning. We will do whatever we can to make it possible.

Krzysztof Surma: There is no one answer, let's say. However, is it ambitious? I would like to bear in mind the financial results from the H1, and maybe, yes, maybe I can say it is an ambitious scenario. If you analyze some situation and you believe it is something really ambitious, so then we try to really deliver it, even if it is on the border with miracles. Somebody is listening to our conference today. If we are talking about prosumers, the payment is going to be done every month. It is going to be a monthly payment per real use and production generation. But everything what the prosumer has gathered in their batteries, it also brings benefits. I mean, amounts, for example. Everything is going to be included in monthly settlements.

Speaker #1: Ladies and gentlemen, thank you. The conference ends now, and you can continue talking after the break. The earnings core call for Q3 will be organized in the middle of November.

Speaker #1: Please join us, and thank you. Also, there's one important event—the Energy Days—ahead of us. Energy Days. On the 1st of October at 11:30, there will be a round table: TAURON's round table.

Krzysztof Surma: Somebody is listening to our conference today. If we are talking about prosumers, the payment is going to be done every month. It is going to be a monthly payment per real use and production generation. But everything what the prosumer has gathered in their batteries, it also brings benefits. I mean, amounts, for example. Everything is going to be included in monthly settlements.

Grzegorz Lot: For example, if somebody has used energy in the winter, but stored in summer, it is going to influence the price. The method of payment does not influence of how much energy has been stored. There is no possibility it is going to be zero payment.

Krzysztof Surma: For example, if somebody has used energy in the winter, but stored in summer, it is going to influence the price. The method of payment does not influence of how much energy has been stored. There is no possibility it is going to be zero payment.

[Analyst]: Can you say something about DPS for 2027? The consensus is 20 groszy, PLN 0.2 per share. Is it realistic given the CapEx?

[Analyst 4]: Can you say something about DPS for 2027? The consensus is 20 groszy, PLN 0.2 per share. Is it realistic given the CapEx?

Grzegorz Lot: Well, let me make a reference to our policy, and our dividends payment for 2025. Well, there are many factors at play here. Our financial results, our liquidity, and the plan, the CapEx. In 2026, we communicated that we would like to start paying the dividend, and we would like it to be a permanent process, not a one-off. I am not going to speak about the amount. We have set our goals and communicated that clearly, and this does not change. Well, we will always be conservative when it comes to our financial capacities, but this was our goal in mind when we started paying dividend in 2026. This management board has the ambition to carry through the transition and also share the profits. Dividend is very important to us. As we said from the very beginning, we will do whatever we can to make it possible.

Grzegorz Lot: Well, we will always be conservative when it comes to our financial capacities, but this was our goal in mind when we started paying dividend in 2026. This management board has the ambition to carry through the transition and also share the profits. Dividend is very important to us. As we said from the very beginning, we will do whatever we can to make it possible.

Olga Kostrzewska-Cichoń: Ladies and gentlemen, thank you. The conference ends now, and you can continue talking after the break. The earnings call for Q3 will be organized in the middle of November. Please join us, and thank you. Also, there is one important event, the Energy Days ahead of us. Energy Days, 1 October at 11:30. There will be a round table, TAURON's round table. I would like to advertise Tanie Godziny, Tanie Godziny. This is a very good program. Thank you.

Browse all earnings call transcripts

Half Year 2026 TAURON Polska Energia SA Earnings Call

Request TrialDemo

TAURON Polska Energia

Earnings