Financial Data and Key Metrics Changes - The revenue for the first half of 2025 was PLN 17.3 billion, slightly down from the previous year, with a significant drop in compensation payments from over PLN 2,100 million to PLN 630 million [28][29] - EBITDA reached a historical high of PLN 4.2 billion, compared to previous years where such figures were only seen for the full year [29][30] - Net profit exceeded PLN 2 billion, with no impairment charges related to coal assets this year, contrasting with the previous year [30][31] - The net debt to EBITDA ratio improved significantly due to the increase in EBITDA, with financial debt declining by approximately PLN 1.5 billion year over year [31][37] Business Line Data and Key Metrics Changes - The distribution segment generated 60% of the group's EBITDA, amounting to close to PLN 2.5 billion, driven by a higher regulatory asset base and a positive regulatory account [32][34] - The generation segment saw a positive surprise with increased margins and revenue from the balancing market, contributing to overall EBITDA growth [35] - The renewables segment experienced a decline in revenue and EBITDA due to lower market prices and adverse weather conditions, despite an increase in installed capacity [35] Market Data and Key Metrics Changes - The share of renewables in the Polish energy mix remained at 28%, with a 17% increase in installed capacity for renewables [12][11] - National electricity consumption was slightly lower than last year, but production output increased by 1.5%, leading to a balance of 1 terawatt hour in electricity exports [11][12] - The average electricity price for 2025 was around PLN 488, with spot market prices at PLN 427 [18] Company Strategy and Development Direction - The company is focused on heat decarbonization, growth in distribution, and expansion in sales and renewables, with specific projects underway in these areas [5][6] - A significant emphasis is placed on digitization and customer offerings, such as the Cheap Hours tariff, which aims to enhance customer engagement and reduce electricity bills [4][20] - The company is actively pursuing project financing and has already secured nearly PLN 17 billion in subsidies and preferential financing for its strategic initiatives [41][42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering on strategic promises, highlighting the importance of financial stability for future investments [57][58] - The outlook for EBITDA is expected to improve year over year, driven by better margins and increased production volumes [54] - The company is preparing for the 2027-2028 capacity market auction, focusing on local community engagement and energy security [56][61] Other Important Information - The company has made significant investments in infrastructure, including the installation of new power lines and substations, and the expansion of renewable energy connections [26][25] - The regulatory asset base for distribution increased to PLN 24.6 billion, reflecting a rise in capital expenditures [24][25] - The company is committed to workforce development and enhancing customer service, which are seen as critical for long-term sustainability [60] Q&A Session Questions and Answers Question: What are the expectations for future EBITDA growth? - Management expects EBITDA to improve year over year due to favorable market conditions and increased production volumes [54] Question: How is the company addressing the decline in the renewables segment? - The company is focusing on increasing installed capacity and improving operational efficiency to counteract market price declines [35] Question: What steps are being taken to secure financing for future projects? - The company has already secured nearly PLN 17 billion in subsidies and is exploring project financing options to support its strategic initiatives [41][42]

Financial Data and Key Metrics Changes - The revenue for the first half of 2025 was PLN 17.3 billion, slightly down from the previous year, with a significant drop in compensation payments from PLN 2.1 billion to PLN 630 million [28][29] - EBITDA reached a historical high of PLN 4.2 billion, compared to previous years where such figures were only seen for the full year [29][30] - Net profit exceeded PLN 2 billion, with no impairment charges related to coal assets this year, contrasting with the previous year [30][31] - The net debt to EBITDA ratio improved significantly due to the increase in EBITDA, with financial debt decreasing by approximately PLN 1.5 billion year over year [31][38] Business Line Data and Key Metrics Changes - The distribution segment generated 60% of the group's EBITDA, amounting to nearly PLN 2.5 billion, driven by a higher regulatory asset base and a positive regulatory account [32][34] - The generation segment saw a positive surprise with increased margins due to lower coal prices and better balancing market revenue [35] - The renewables segment experienced a decline in revenue and EBITDA due to lower market prices and adverse weather conditions affecting production [35] Market Data and Key Metrics Changes - The share of renewables in the Polish energy mix remained stable at 28%, with a 17% increase in installed capacity for renewables [12][11] - National electricity consumption was slightly lower than the previous year, while production increased by 1.5%, resulting in a net export of 1 terawatt hour [11][12] - The average electricity price for 2025 was around PLN 488, with spot market prices at PLN 427 [18] Company Strategy and Development Direction - The company is focused on heat decarbonization, growth in distribution, and expansion in renewable energy sales [5][6] - A significant portion of CAPEX, estimated between PLN 100 billion to 130 billion, will be financed through preferential sources, with PLN 17 billion already secured [40][41] - The company is preparing for the 2027-2028 capacity market auction, emphasizing the need for social acceptance of energy transition projects [56][61] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering on strategic promises, highlighting the importance of financial stability for future investments [57][58] - The outlook for EBITDA is expected to improve year over year, driven by better performance in generation and heat segments [54] - The company is actively engaging with local communities to ensure social acceptance of its projects, which is deemed crucial for successful implementation [61] Other Important Information - The company has increased its renewables grid connection capacity by 510 megawatts and installed 460,000 new remote readout meters in the first half of 2025 [26] - The regulatory asset base for distribution rose to PLN 24.6 billion, reflecting a PLN 2.7 billion increase from the previous year [25] - The company is committed to workforce development and improving customer service as part of its long-term strategy [60] Q&A Session Summary Question: What are the expectations for future EBITDA growth? - Management expects EBITDA to improve year over year, driven by better performance in generation and heat segments, despite a decline in supply volume [54][55] Question: How is the company addressing the challenges in the renewables segment? - The company is focusing on increasing its in-house development capabilities and expanding its project pipeline, particularly in wind and energy storage [52][48] Question: What steps are being taken to ensure social acceptance of energy transition projects? - Management emphasized the importance of engaging with local communities and demonstrating the benefits of projects to gain social approval [61]