PGE Polska Grupa Energetyczna S.A. is one of the largest power producer and supplier in Poland and one of the biggest heat and power sector companies in Central and Eastern Europe. Due to a combination of its own fuel resources (lignite), power generation and final distribution networks, PGE guarantees safe and stable power supply to over 5 million households, businesses and institutions.

The biggest competitive advantage of the Company is its vertical integration and its presence in nearly the whole value chain in the power generation business (except for power transmission, which is dealt with by the company PSE Operator S.A.). The activities of PGE Polska Grupa Energetyczna S.A. focus on the following areas: Conventional Power Generation, Renewable Power Generation, Nuclear Power Generation, Wholesale, Distribution, Retail. Sustainable development is one of the major principles of PGE Capital Group. PGE is a trustworthy company, whose operations are based on the highest corporate standards.

In 2010 the Group's net power generation amounted to about 53 TWh. The PGE Group employs over 46,000 workers and has 12.2 GW of the installed generation capacities.

In order to establish itself as the Polish market leader and join the European top companies, PGE is following a comprehensive development strategy. The main goals of PGE for the coming years include:

• The consolidation of the PGE Group is the largest programme of this type in Poland, and one of the largest in Central and Eastern Europe. In consequence of the execution of the programme, PGE will rely more on intra-group cooperation in order to take advantage of the synergy effects occurring throughout the Group and offer its customers competitive products and ever higher quality of services. The objectives of the Consolidation Programme comprise improvement in the organisation's operating effectiveness and management; the Programme has already caused a simplification in the structure of the Capital Group. Wholesale trade in electricity is the responsibility of PGE S.A., while the other 5 companies belonging to the Capital Group deal with the following operating areas: conventional power generation, renewable power generation, nuclear power generation, distribution and retail sales..
• Expansion on the domestic and foreign markets. The strategy of the PGE Group provides for its strengthening, among other things, by mergers and acquisitions. We always carefully follow changes taking place on the domestic and foreign energy markets with a view to identifying assets whose potential could support the building of the PGE Group's value.
• An investment programme of building new and modernising old generation units as well as developing distribution networks. Poland's power generation sector requires huge investments if the country is to avoid electricity shortages caused by the excessive operation or decommissioning of power generation units. We invest in both conventional power generation and renewable sources of energy.
• Development of nuclear power generation in Poland. In January 2009, the Polish government placed an order with PGE for the construction of two nuclear power plants with a planned capacity of 3,000 MW each.The first new unit is to be commissioned by 2020.
• Non-Core assets disposal programme.The PGE Capital Group holds shares in many companies not directly involved in power generation. Such shareholdings are the result of many different historical circumstances. In order to achieve a transparent separation of the core activities from those which are not related to power generation, simultaneously to the Consolidation Plan, the PGE Capital Group is implementing a Non-core Assets Management Programme whose objectives include the simplification of the structure of capital relationships, the unification of the management standards and the simplification of the organisational structures within the PGE Capital Group. The Programme is being implemented in accordance with the following base assumptions: disposing of assets at fair prices, respecting employees' rights and maintaining business relations supportive of the Group's core activities.
   
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  The PGE Capital Group – key facts and figures (data as for 2010):
• 52.7 TWh – the volume of the power generated by the PGE Capital Group.
• 43.2 m tons – the volume of the lignite excavated by the PGE Capital Group's lignite mines.
• 12.2 GW – the installed capacity of the power plants and cogeneration plants belonging to the PGE Capital Group (this places PGE  in twelfth position on the list of Europe's biggest power generation companies).
• 40% - share of PGE Capital Group in national electricity output
• 25% - share of PGE Capital Group in distribution market in Poland

Information concerning the structure of fuels used to generate electricity sold by PGE Polska Grupa Energetyczna S.A. and PGE Electra S.A. in 2010 in reference to the § 37 of the Ministry of Economy on the detail conditions of power operation from 4 Mai 2007.

1. The structure of fuels and primary energy sources used to generate electricity sold by PGE Polska Grupa Energetyczna S.A. and PGE Electra S.A. in 2010.

2. Pie chart depicting the structure of fuels and other primary energy sources used to generate electricity sold by PGE Polska Grupa Energetyczna S.A. and PGE Electra S.A. in 2010.

3. Information about the impact of electricity production on environment and emissions for each fuel or primary energy source used to generate electricity sold by PGE Polska Grupa Energetyczna S.A. and PGE Electra S.A. in 2010: