1

PKN ORLEN Group – company overview

March 2011

2

Agenda

����

Summary

Company overview

New businesses entry

Key segments

3

Leading refining & petchem company operating in the biggest market in CEE

PKN ORLEN – POLISH KEY PLAYER IN CEE LEADING DOWNSTREAM COMPANY

PRODUCTION:

� Refining ca. 30.0 mt/y

� Petrochemical ca. 3.5 mt/y

FINANCIALS IN YEAR 2010:

� Revenues PLN 83.5 bn

� EBITDA PLN 5.5 bn

� Net profit PLN 2.5 bn

KEY FACTSSHAREHOLDERS STRUCTURE

Free float72,48%

State Treasury

27,52%

� Strategically located on key pipeline network. Access to

the crude oil terminals in Gdańsk (Poland) and Butinge

(Lithuania).

� Operates 7 refineries in Poland, Lithuania and the Czech

Republic, including the largest and highly advanced one.

� Capable of processing in all refineries any kind of crude

oil. Currently the most economic is REBCO.

� Petrochemical assets fully integrated with the refining

operations.

� Operates ca. 2 600 retail sites in Poland, Czech Republic,

Germany and Lithuania.

4

The strategy for 2009-2013 assumes further core business development,

divestment of non-core assets and entry into new attractive business areas

PrioritiesMain objectives of PKN ORLEN Group

Efficiency improvement as well as

development and extension of the

value chain in core areas of activity -

refining, retail and petrochemical

segments

Efficiency

improvement

and key

investments execution

Entry into

new

business areas

Preparation for further

growth: actions to

improve financial

performance, increase

efficiency, reduce debt

and finalize investments in

core areas of activity

2009 – 2010

2011 – 2013

Further efficiency of

core assets,

investments in new

segments in order

to increase the

company valueDiversification of activities,

strengthening the Group by limiting

the downstream contribution to the

business

Release of capital employed through

working capital optimisation, assets

disinvestment in chemical and telecom

segments, solving the issue of obligatory

reserves

Debt

reduction

5

Agenda

����

Summary

Company overview

New businesses entry

Key segments

6

� PKN ORLEN processing capacity: ca. 30 mt/y (Plock plant in Poland – 15.1 mt/y, Unipetrol – 5.3 mt/y and ORLEN Lietuva

– 10.2 mt/y).

� Market share*: gasoline (PL: 65%, CZ: 35%, LT: 79%) and diesel (PL: 60%, CZ: 28%, LT: 84%).

� Nelson complexity index: Plock 9.5, Kralupy 8.1, Litvinov 7.0, ORLEN Lietuva 10.3.

� Refinery flexibility to process many kinds of crude oil.

� Fuel production in line with 2009 Euro standards in all refineries.

KEY FACTS

ASSETS

Supersite (Plock)

Litvinov (5.5, 7.0)

Kralupy (3.4; 8.1)

Plock

(15.1; 9.5)

Mazeikiu (10.2; 10.3)

Paramo (1.0)

Trzebinia (0.5)

Jedlicze (0.1)

Gold

Silver (MN, Litvinov)

Bronze (Kralupy)

Niche

Trader

Closure-Candidate

N/A (Trzebinia, Jedlicze)

Speciality (Paramo)

Refinery (production capacity mt /y; Nelson complexity index)

Refinery classification according to Wood Mackenzie (2007)

NELSON COMPLEXITY

Refining segment

* As of 31.12.2010

7

� PKN ORLEN production capacity: ca. 3.5 mt/y (Plock - 1.9 mt/y, Unipetrol - 1.6 mt/y).

� Full integration of petrochemical assets with refining facilities.

� Depending on the product we have between 40% to 100% of market share in domestic consumption.

� Polyolefins sales within Basell network.

� PX/PTA technological start up is pending (start of products sales in 2q2011). Planned capacities: 400 kt and 600 kt

respectively.

KEY FACTS

ASSETS

PX/PTA� Strengthening position through full

integration with refinery.

� Investments in world class assets.

� Building regional leader position.

CORE BUSINESS – GROWTH DRIVERS

NON STRATEGIC BUSINESS - EXIT

Polyolefins

PVC

Fertilizers

� Limited synergies with refining activity.

� Release of capital employed through

Anwil sale.

Petrochemical segment

8

� Biggest retail network (no of filling stations)*: Poland - 1714, Germany - 515, Czech Republic - 337, Lithuania - 35.

� Market share*: Poland - 32%, Czech Republic - 14%, Lithuania - 4% and Northern Germany - 9%.

� Two-tier branding strategy (premium and economy)

� „FLOTA POLSKA” & DKV/ORLEN fleet card for corporate customers; and „VITAY” loyalty card for individual

customers – ca. 8 m participants*

KEY FACTS

ASSETS OPERATING DATA

Retail segment

* As of 31.12.2010

7 0256 7136 229

+ 5%Sales volumes

th t

2009 20102008

EBIT

PLN m

825880641

- 6%

9

Agenda

����

Summary

Company overview

New businesses entry

Key segments

10

Petrochemicals

Refining

Upstream (E&P)

„Multi-utility” is a foundation for further PKN ORLEN’s value growth

Concept of „multi- utility”

Current PKN

ORLEN’s

areas of

activities

New

segments

Integrated fuel - energy

company

Electric power

generation

Sales of fuel and

petrochemicals

Logistics� Higher profitability

� Stable cash flows

� Strong competitive pressure and high volatility in

margins

� Operational synergies and diversification of activities

� PKN ORLEN’s security

� The dynamic growth through acquisitions and

geographic expansion in 2002-2006

� Focus on organic development and efficiency

improvement

� Strong competitive pressure and high volatility in

margins

…hence the perceived growth opportunities in

the new areas of growth…

Strategic rationales

PKN ORLEN faces serious barriers for the

further dynamic growth in the oil sector...

11

Growth of PKN ORLEN in upstream segment is based on three pillars

� Limitation of (mostly geopolitical) risks

� Building capabilities in stable

environment

� Adjustment of activities to the

available budget

� Gradual development of diversified

assets portfolio

� Acquisition of mainly minority equity

stakes

� Opportunity for rapid growth of

know-how and competencies

� Participation in existing projects,

including cooperation with external

partners

� Central and Eastern Europe

� North Africa (?)

� North America

� Current exploration and production

projects

Regional focus

Organic and inorganic growth

Cooperation with partners

Exa

mp

les

Tar

get

s

Limitation of

project risk

Focus on most

prospective assets

12

At present, PKN ORLEN is involved in a relatively small number of E&P

projects and of limited risk, but the project portfolio is to grow

Description of selected projects Shale gas exploration licenses

� On-shore E&P project in Poland (Lublin area)

� of exploration activities conducted by the biggest oil

companies: Chevron and ExxonMobil

KAMBR

project

� Off-shore project on Baltic shelf (Latvia) on one of the

biggest oil fields in the Baltic Sea

� Large hydrocarbon reserves: 250m bbl

� Project is being realized in cooperation with a Middle

East partner - the biggest private E&P company from

Kuwait

� Shale gas exploration project in Poland

� Five exploration licenses secured by PKN ORLEN in the most prospective

areas (Lublin province and the southern part of Mazovia)

� PKN ORLEN aims to engage with an experienced partner for further

exploration (letters of intent already signed with about 15 companies)

� Wood Mackenzie’s estimations of 1.36 trillion m3 of unconventional gas

stretching across northern and central Poland (Poland’s annual gas

consumption is 14 bn m3, 72% of gas imported)

1

2

3

4

� On-shore E&P project in Poland (Sieraków area)-JV with PGNiG

� The most prospective exploration area in Poland, next to the largest

discovered reserves of oil and gas in Poland

� Exploitable resources up to 26m bbl

13

Building new segments

UPSTREAM PROJECTS

Latvian shelf – work out data from exploration gathered so

far.

� The drill is planned at the turn of 2011/2012.

Polish lowland – exploratory drill has been started.

� Next 2 appraisal drills are planned at the turn of

2011/2012.

Lublin region – seismic and hole data integration is finished.

� Data analysis and choice of drills’ locations is in progress.

� The drill is planned in the 2 half 2011 and next one in

1H2012.

Shale gas– seismic works are started.

� First analysis findings in mid 2011.

� Drills planned in 2H2011.

ENERGY

� Advanced preparation of investment in Włocławek, final

decision to make in 3q 2011

� Process of the power plant builder selection is in

progress.

� We have the environmental decision and agreement for

connection to the energy network.

� Decision about the selection of the contractor to be made

at the turn of 3/4q2011.

� Start up of building in Włocławek in 2012.

� Start-up in 2014, investment at the level of PLN 1,5

billion.

14

PKN ORLEN is developing Energy segment through engagement in new

projects and efficiency increase of existing assets

Strategy’s directions

� Achieving maximum synergies

with refining part

� Assurance of energy safety of

PKN ORLEN

� Infrastructure adaptation to more

stringent environmental

requirements

� Modernization of current

infrastructure for further

development of energy activity

� Involvement in new projects

in the energy sector through co-participation in the

construction of new generating units

� A construction of a new gas-fueled power plant

in Włocławek (460 MW)

� Potentially other unit in Płock

� Efficiency improvement of existing assets

thanks to optimization of current activities

� Investment program in power plant in Płock

(~1 bn PLN), which will improve efficiency, meet

environmental standards (emitted emissions are

to be reduced by ~ 90%), lead to the increase in

power capacities (up till 2017 planned 20%

increase in electricity production capacities and

7% in thermal power) and balance the needs of

PKN ORLEN

� Optimalization of repairs in other foreign

assests

� Restructurization and modernization of energy

assets in Unipetrol

Implementation of strategy

15

Agenda

����

Summary

Company overview

New businesses entry

Key segments

16

PKN ORLEN is an attractive investment

STRENGTHS DEVELOPMENT OPPORTUNITIES

� Attractive market of new EU countries with growth

potential.

� Leading position in the Central and Eastern EU

region in the downstream refining and

petrochemical.

� World class refinery assets integrated with

petrochemical business.

� The largest retail network.

� Strategically located on key pipeline network.

Access to the crude oil terminal in Gdańsk

(Poland) and Butinge (Lithuania).

� Efficiency improvements through operational

excellence and integration of assets.

� Further development in the core business and

value chain extension.

� Release of capital employed through the sale of

non core assets.

� Development of new segments through

cooperation with sector partners.

We take pole position for further growth

17

Thank You for Your attention

For more information on PKN ORLEN, please contact

Investor Relations Department:

telephone: + 48 24 256 81 80

fax: + 48 24 367 77 11

e-mail: ir@orlen.pl

www.orlen.pl

18

Agenda

Supporting slides�

19

From domestic leader to EU regional player

1999

� Merger of Petrochemia Plock (Polish

largest refinery) with CPN (Polish largest

retailer) created PKN.

� IPO of 30% of equity on Warsaw Stock

Exchange and London Stock Exchange.

� Introduction of the new brand ORLEN.

2000

� Second public offer of PKN ORLEN on

WSE and LSE increased free float up to

72%.

PolandGermany

Czech Republic

Lithuania

Latvia

Estonia

Domestic Business to 2002 „Internationalization” 2002-2005 Regional Business 2006+

2002

� Expansion into German retail market.

� Joint venture with Basell –

Basell Orlen Polyolefins.

2005

� Acquisition of majority stake in Unipetrol

(Czech holding).

� Introduction and start of PKN ORLEN

Retail Sales Development Plan for

Poland.

� Introduction and start of Unipetrol

Partnership Program.

2006 +

� Acquisition of Lithuanian refinery -

Mazeikiu Nafta (renamed in 2009 into

ORLEN Lietuva).

� Implementation of segmental

management.

� Implementation of two-tier branding

strategy in retail segment in Poland and

the Czech Republic.

� New strategy of PKN ORLEN Group for

2009-2013.

� CAPEX, OPEX, working capital and

headcount optimization.

PolandGermany

Czech Republic

Lithuania

Latvia

Estonia

PolandGermany

Czech Republic

Lithuania

Latvia

Estonia

20

Refinery (capacity m tonnes p.a.; Nelson complexity index)

Source: Oil & Gas Journal, PKN Orlen own calculations, Concawe,Reuters, WMRC, EIA, NEFTE Compass, Transneft.ru

�Oil pipeline [capacity]

Refinery of PKN ORLEN Group

Projected Oil pipeline

Sea terminal [capacity]

Lisichansk

(8.5; 8.2)

Batman

(1.1; 1.9)

Yaroslavi

Ingolstadt

(5.2; 7.5)

Litvinov (5.5, 7.0)

Kralupy

(3.4; 8.1)

Plock

(15.1; 9.5)

Gdansk

(10.5; 10.0)

Mazeikiai

(10.2; 10.3) Novopolotsk

(8.3; 7.7)

Mozyr

(15.7; 4.6)

Bratislava

(6.0; 12.3)

Schwechat

(10.2; 6.2)

Burghausen

(3.5; 7.3)

Holborn

(3.8; 6.1)

Bayernoil

(12.8; 8.0)

Harburg

(4.7; 9.6)

Leuna

(11.0; 7.1)

Schwedt

(10.7; 10.2)

Aspropyrgos

(6.6; 8.9)

Corinth

(4.9; 12.5)

Elefsis

(4.9; 1.0)

Thessaloniki

(3.2; 5.9)

Izmit

(11.5; 6.2)

Izmir

(10.0; 6.4)

Kirikkale

(5.0; 5.4)

Duna

(8.1, 10.6)

Arpechim

(3.6; 7.3)

Petrobrazi

(3.4; 7.3)

Petrotel

(2.6; 7.6)Rafo

(3.4; 9.8)

Petromidia

(5.1; 7.5)

Rijeka

(4.4; 5.7)Sisak

(3.9; 4.1)

Novi Sad

(4.0; 4.6)

Pancevo

(4.8; 4.9)

Neftochim

(5.6; 5.8)

Drogobich

(3.8; 3.0)

Kremenchug

(17.5; 3.5)

Odessa

(3.8; 3.5)

(ex 12)

Kherson

(6.7; 3.1)

DRUZHBA

DRUZHBA

DRUZHBA

ADRIA

IKL

ADRIA

�(18) Ventspils

Butinge(14)

�

(70) Primorsk� Kirishi

Yuzhniy

(ex 4)�

Brody

Tiszaojvaro

s

�

Triest�

�

Rostock�

[Ca 78]

[Ca 60]

[Ca 34] [Ca 18]

[Ca 80]

[Ca 55]

[Ca 34]

[Ca 27]

�[Ca 22]

�� ��[Ca 30]

[ Ca 24]

[Ca 22]

Novorossiys

k

(ex 45)

�

[ Ca 29]

Trzebinia

(0,5)

Jedlicze

(0,1)

[Ca 45]

[Ca 25]

[Ca 120]

Naftoport

(30)

[Ca 20][Ca 9]

[Ca 10]

[Ca 9][Ca 3,5]

Supply Routes Diversification Sea Oil Terminals in Gdansk and Butinge Guarantee Alternative Supply Routes

21

Unipetrol – continuation of operating efficiency improvement

� Ongoing strict cost control, leading to positive free cash flow and similar level of CAPEX as in 2009.

� Continuation of the long-term trend in staff reduction.

� Steadily growing market share in Czech retail to over 14% from below 10% in 2005.

� Revival of demand in 2010 is fuelling some optimism to polyolefins, with continuous substitution of traditional materials

by plastics.

KEY FACTS

ASSETS

IKL

Pipeline10 mt/y

CEPRO production pipelines

Mero Crude oil pipelines

CEPRO depots

Kralupy

3.2 mt/y

Pardubice

1.0 mt/y

Litvínov

5.5 mt/y

Druzhba

pipeline9 mt/y

ethylene

22

ORLEN Lietuva - maximizing the possessed potential

� ORLEN Lietuva manages ca. 500 km of pipelines in the territory of Lithuania (both crude oil and product pipelines).

� Access to the strategically important crude oil import / export terminal at Butinge.

� Products supply within Lithuania is managed by use of railway or tankers.

� The potential product pipeline to Klaipeda would improve logistics of final products.

� Costs optimization – among others, main turnaround moved to 2011.

KEY FACTS

ASSETS

Crude pipeline

Products pipeline

Rail transport

Pump station

Terminal

Storage depot Mažeikių

Nafta

Klaipeda

Joniskis

Latvia

Sea terminal Butinge Orlen Lietuva

Refinery

Lithuania

Illukste

Biržai

Sea terminal Ventspils(20,0 mt/y)

(14,0 mt/y)

(14,3 m t/y)

(14,

,0 m

t/y)

(16,4 mt/y)

Klaipeda(9,0 mt/y)

Polock

23

Electricity consumption

CAGR 2000-2007, %Electricity consumption

per capita, 2007, ths. KWh

1) Developed countries comprise: EU-15, Norway, Switzerland and Slovenia. 2) PKN Orlen’s markets comprise: Poland, Czech Republic,

Source: EIA, IMF, PKN ORLEN analysis

6,83,9

2,7

Electricity consumption in Europe, 2000-2007

Developed

countries 1

PKN ORLEN’s

markets 2

Rest

Forecast for supply and demand for peak power in Poland, 2005-2020, GW

Demand

Supply

1,52,1

4,1

24

26

28

30

32

34

36

38

2005 2010 2015 2020

Relatively low rate of energy consumption per capita and need for new power

plants indicates high potential for growth in the energy generation sector

� Currently energy consumption per capita on PKN ORLEN’s market is by ~ 40% lower than in developed countries 1. Forecasts indicate 2-3% increase in

the electricity demand in Poland until 2030 p.a.

� The profitability of the sector is increasing in the result of the expected imbalance between supply and demand

� 44% of existing power plants in Poland is over 30 years. Old units of 11-15 GW (~30-40% existing capacity) have been planned to be closed. Power

capacities increase planned until 2020 of ~20 GW (includes both modernization of existing and construction of new plants). Top Polish energy companies

(i.e. PGE, Tauron, Enea, Energa) have announced plans of extensive capital investments into increase of capacities, summing up to ~90 bn PLN

� Despite the current economic slowdown, an increase in the wholesale electricity prices is expected in the coming years

24

New power plants are mostly required in the northern Poland

Existing and planned generation capacity until 2015

Rybnik (900-1000 MW)

Ostro leka

Jaworzno

Rybnik

Siersza

Skawina

Dolna Odra

Turów Polaniec

Wola

Blachownia

LaziskaHalemba

Lagisza

Belchatów

PAK

Kozienice

PKE

BOT

Opole

JaworznoSiersza

CEZ Skawina

Łagisza

Tauron

(400 MW)

PGE (1600 MW)

Electrabel

Połaniec

EneaKozienice

Enea(2000 MW)

Energa

OstrołękaEnerga

(1000 MW)

El. Opalenie(1600 MW)

Cable from

Sweden

PGE ZEDO

PGE (800 MW)

El. Szczecin

(800-1000 MW)

Włocławek

CEZ (400 MW)

RWE (800 MW)

EdF /EnBWRybnik

PGE Opole

PGE (920 MW)

PGE Turów

PGE (500 MW)

PGE

Bełchatów

PGE (833 MW)

TauronPKE

Tauron(2000 MW)

PAK

Blachownia

Halemba

Concentration of

generation sources

Łaziska

Tauron

Stalowa Wola

(200 MW)Power Plant Gdańsk (Lotos, PGNiG, Energa)

� Northern Poland has a

historical power deficit.

� The current production capacity

is concentrated mainly in the

south of the country.

� Some of the planned

greenfield capacities are

located north, near Anwil plant

in Włocławek.

PKN ORLEN

Płock refinery

Planned capacity

Hard coal power stations

Brown coal power stations

Planned LNG terminal

Jamal gas pipeline

25

Dividend policy:

PKN ORLEN aims to pay dividends equal or higher than 50% of FCFE

Reference point for dividend policy – PKN

ORLEN investment goals and opportunities:

� taking into account mergers and

acquisitions

� allowing for maintaining the optimal

capital structure determined by the

following ratios:

� Covenant: Net Debt/EBITDA max.

3.5

� Gearing: Net Debt / Equity of 30% -

40%

3,3 3,0

20,315,4

30,0

40,0

25,1

0,00,00,00,00

10

20

30

40

50

1999 2001 2003 2005 2007 2009

0,65

2,13

1,62

0,140,120,05 0,05 0 0 0 0

0

0,5

1

1,5

2

2,5

3

1999 2001 2003 2005 2007 2009

Dividend payout ratio 1999 - 2009 Dividend per share 1999 - 2009

Net profit

+ amortization

Capex

Net working

capital change

Debt structure

adjusting to optimal level

FCFE

26

Polkomtel

Non-core investment of significant value

� PKN ORLEN has 24.39% stake in Polkomtel as a non-core investment.

� PKN ORLEN’s intention is to dispose all shares hold in Polkomtel.

� Polish Shareholders, i.e. KGHM Polska Miedz S.A., PKN ORLEN, PGE Polska Grupa Energetyczna S.A. and

WĘGLOKOKS S.A. currently hold in total over 75% of registered capital of Polkomtel S.A.

PGE

Węglokoks

PKN ORLEN

KGHM

Vodafone

Shareholders’ structure

24.39%

4.99%

Dividends

24.39%

24.39%21.83%

12320102010

1372009/102009

3052008/092008

24520082007

20220072006

PLN mPaid in:

Dividend for

the year:

27

Effective execution of two-tier branding strategy as a response to market

polarization

PKN ORLEN branding strategy

ECONOMICALPREMIUM

Poland

Czech Republic

Lithuania

Germany

� Successful rebranding of heritage network of

mixed brands into premium ORLEN and

economical BLISKA networks.

� Market research is to help to determine the final

branding strategy.

� Building a solid foundation for the future

development of high quality ORLEN network.

� Focus on economical STAR network with

competitive prices and superior customer service.

28

This presentation (“Presentation”) has been prepared by PKN ORLEN S.A. (“PKN ORLEN” or “Company”). Neither the Presentation nor any copy hereof may be copied,

distributed or delivered directly or indirectly to any person for any purpose without PKN ORLEN’s knowledge and consent. Copying, mailing, distribution or delivery of this

Presentation to any person in some jurisdictions may be subject to certain legal restrictions, and persons who may or have received this Presentation should familiarize

themselves with any such restrictions and abide by them. Failure to observe such restrictions may be deemed an infringement of applicable laws.

This Presentation contains neither a complete nor a comprehensive financial or commercial analysis of PKN ORLEN and of the PKN ORLEN Group, nor does it present its

position or prospects in a complete or comprehensive manner. PKN ORLEN has prepared the Presentation with due care, however certain inconsistencies or omissions might

have appeared in it. Therefore it is recommended that any person who intends to undertake any investment decision regarding any security issued by PKN ORLEN or its

subsidiaries shall only rely on information released as an official communication by PKN ORLEN in accordance with the legal and regulatory provisions that are binding for PKN

ORLEN.

The Presentation, as well as the attached slides and descriptions thereof may and do contain forward-looking statements. However, such statements must not be understood as

PKN ORLEN’s assurances or projections concerning future expected results of PKN ORLEN or companies of the PKN ORLEN Group. The Presentation is not and shall not be

understand as a forecast of future results of PKN ORLEN as well as of the PKN ORLEN Group.

It should be also noted that forward-looking statements, including statements relating to expectations regarding the future financial results give no guarantee or assurance that

such results will be achieved. The Management Board’s expectations are based on present knowledge, awareness and/or views of PKN ORLEN’s Management Board’s

members and are dependent on a number of factors, which may cause that the actual results that will be achieved by PKN ORLEN may differ materially from those discussed in

the document. Many such factors are beyond the present knowledge, awareness and/or control of the Company, or cannot be predicted by it.

No warranties or representations can be made as to the comprehensiveness or reliability of the information contained in this Presentation. Neither PKN ORLEN nor its directors,

managers, advisers or representatives of such persons shall bear any liability that might arise in connection with any use of this Presentation. Furthermore, no information

contained herein constitutes an obligation or representation of PKN ORLEN, its managers or directors, its Shareholders, subsidiary undertakings, advisers or representatives of

such persons.

This Presentation was prepared for information purposes only and is neither a purchase or sale offer, nor a solicitation of an offer to purchase or sell any securities or financial

instruments or an invitation to participate in any commercial venture. This Presentation is neither an offer nor an invitation to purchase or subscribe for any securities in any

jurisdiction and no statements contained herein may serve as a basis for any agreement, commitment or investment decision, or may be relied upon in connection with any

agreement, commitment or investment decision.

Disclaimer

29

For more information on PKN ORLEN, please contact

Investor Relations Department:

telephone: + 48 24 256 81 80

fax + 48 24 367 77 11

e-mail: ir@orlen.pl

www.orlen.pl