ENEA Group

Opinion and Report of the Independent Auditor Financial Year ended 31 December 2015

The opinion contains 2 pages The supplementary report contains 14 pages Opinion of the independent auditor and supplementary report on the audit of the consolidated financial statements for the finacial year ended 31 December 2015

© 2016 KPMG Audyt Spółka z ograniczoną odpowiedzialnością sp.k., a Polish limited partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG Internat

KPMG Audvt Spółka z ograniczoną odpowiedzialnością sp.k. Biuro w Poznaniu ul. Roosevelta 18 60-829 Poznań Poland

Telefon +48 61 845 46 00 $Fax + 48618454601$ E-mail [email protected] Internet_www.kpmg.pl

This document is a free translation of the Polish original. Terminology current in Anglo-Saxon countries has been used where practicable for the purposes of this translation in order to aid understanding. The binding Polish original should be referred to in matters of interpretation.

OPINION OF THE INDEPENDENT AUDITOR

To the General Meeting of ENEA S.A.

Opinion on the Consolidated Financial Statements

We have audited the accompanying consolidated financial statements of the Group, whose parent entity is ENEA S.A. with its registered office in Poznań, Górecka 1 Street ("the Group"), which comprise the consolidated statement of financial position as at 31 December 2015, the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended and notes comprising a summary of significant accounting policies and other explanatory information.

Management's and Supervisory Board's Responsibility for the Consolidated Financial Statements

Management of the Parent Entity is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with International Financial Reporting Standards as adopted by the European Union and with other applicable regulations and preparation of the report on the Group's activities. Management of the Parent Entity is also responsible for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

According to the Accounting Act dated 29 September 1994 (Official Journal from 2013, item 330 with amendments) ("the Accounting Act"), Management of the Parent Entity and members of the Supervisory Board are required to ensure that the consolidated financial statements and the report on the Group's activities are in compliance with the requirements set forth in the Accounting Act.

Auditor's Responsibility

Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with section 7 of the Accounting Act dated 29 September 1994 (Official Journal from 2013, item 330 with amendments) ("the Accounting Act") and International Standards on Auditing as adopted by the National Council of Certified Auditors as the National Standards on Assurance. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement.

KPMG Audyt Spółka z ograniczoną odpowiedzialnością sp.k., a Polish limited liability
partnership and a member firm of the KPMG network of independent member firms affiliated
with KPMG International Cooperative ("KPMG International"), a Swiss entity.

KPMG Audyt Spólka z ograniczoną odpowiedzialnością
sp.k. jest polską spółką komandytową i członkiem
sieci KPMG składającej się z niezależnych spółek członkowskich stowarzyszonych z KPMG International
Cooperative ("KPMG International"), podmiotem prawa szwajcarskiego.

Siedziba spółki: ul. Inflancka 4A. 00-189 Warszawa tel. +48 22 528 11 00

Spółka zarejestrowana w Sądzie Rejonowym dla m.st. Warszawy w Warszawie, XII Wydział
Gospodarczy Krajowego Rejestru Sądowego.

KRS 0000339379 NIP 527-261-53-62
REGON 142078130

financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the entity's preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances. but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management of the Parent Entity, as well as evaluating the overall presentation of the consolidated financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Opinion

In our opinion, the accompanying consolidated financial statements of ENEA Group have been prepared and present fairly, in all material respects, the financial position of the Group as at 31 December 2015 and its financial performance and its cash flows for the year then ended, in accordance with International Financial Reporting Standards as adopted by the European Union, and are in compliance with the respective regulations that apply to the consolidated financial statements, applicable to the Group.

Specific Comments on Other Legal and Regulatory Requirements

Report on the Group's Activities

As required under the Accounting Act, we report that the accompanying report on the Group's activities includes, in all material respects, the information required by Art. 49 of the Accounting Act and by the Decree of the Ministry of Finance dated 19 February 2009 on current and periodic information provided by issuers of securities and the conditions for recognition as equivalent information required by the law of a non-Member State (Official Journal from 2014, item 133) and the information is consistent with the consolidated financial statements.

On behalf of KPMG Audyt Spółka z ograniczoną odpowiedzialnością sp.k. Registration No. 3546 Inflancka 4A Street 00-189 Warsaw

Signed on the Polish original

....................................... Marek Gajdziński Key Certified Auditor Registration No. 90061 Limited Liability Partner with power of attorney

Poznań, 9 March 2016

TRANSLATION

ENEA Group

Supplementary report on the audit of the consolidated financial statements Financial Year ended 31 December 2015

The supplementary report contains 14 pages The supplementary report on the audit of the consolidated financial statements for the financial year ended 31 December 2015

ENEA Group

The supplementary report on the audit of the consolidated financial statements for the financial year ended 31 December 2015

1.	General	$\overline{\mathbf{3}}$
1.1	Identification of the Group	$\begin{array}{c} 3 \ 3 \end{array}$
1.1.1	Name of the Group
1.1.2	Registered office of the Parent Company of the Group	$\overline{3}$
1.1.3	Registration of the Parent Company in the register of entrepreneurs
	of the National Court Register	$\overline{3}$
1.1.4	Management of the Parent Company	$\overline{3}$
1.2	Information about companies comprising the Group	$\overline{\mathbf{4}}$
1,2,1	Companies included in the consolidated financial statements	$\overline{\mathbf{4}}$
1.3	Key Certified Auditor and Audit Firm Information	$\boldsymbol{6}$
1.3.1	Key Certified Auditor information	6
1.3.2	Audit Firm information	6
1.4	Prior period consolidated financial statements	6
1.5	Audit scope and responsibilities	6
1.6	Information on audits of the financial statements of the consolidated
	companies	$\overline{\mathcal{L}}$
1.6.1	Parent Company	$\overline{7}$
1.6.2	Other consolidated entities	8
2.	Financial analysis of the Group	9
2.1	Summary analysis of the consolidated financial statements	9
2.1.1	Consolidated statement of financial position	9
2.1.2	Consolidated statement of profit or loss and other comprehensive
	income	11
2.2	Selected financial ratios	12
3.	Detailed report	13
3.1	Accounting principles	13
3.2	Basis of preparation of the consolidated financial statements	13
3.3	Method of consolidation	13
3.4	Goodwill arising on consolidation	13
3.5	Consolidation of equity and calculation of non-controlling interest	13
3.6	Consolidation eliminations	14
3.7	Notes to the consolidated financial statements	14
3.8	Report of the Management Board of the Parent Company on the Group's
	activities	14

$1₁$ General

$1.1$ Identification of the Group

1.1.1 Name of the Group

ENEA Group

1.1.2 Registered office of the Parent Company of the Group

Górecka 1 Street 60-201 Poznań

1.1.3 Registration of the Parent Company in the register of entrepreneurs of the National Court Register

Registration court:		District Court in Poznań - Nowe Miasto i Wilda,
		VIII Commercial Department of the National Court Register
Date:	21 May 2001
Registration number:	KRS 0000012483
Share capital as at
the end of reporting period:	PLN 441 442 578.00

1.1.4 Management of the Parent Company

The Management Board is responsible for management of the Parent Company.

As at 31 December 2015, the Management Board of the Parent Company was comprised of the following members:

• Wiesław Piosik	- acting President of the Management Board,
• Dalida Gepfert	- Member of the Management Board responsible for Financial
	Affairs.

Member of the Management Board responsible Grzegorz Kinelski for Commercial Affairs.

According to the resolution no. 39/IX/2015 of the Supervisory Board dated 7 December 2015, Mr Krzysztof Zamasz was dismissed from the position of the President of the Management Board.

According to the resolution no. 40/IX/2015 of the Supervisory Board dated 7 December 2015, Mr Paweł Orlof was dismissed from the position of the Member of the Management Board responsible for Corporate Affairs.

According to the resolution no. 41/IX/2015 of the Supervisory Board dated 7 December 2015, Mr Wiesław Piosik, the Member of the Supervisory Board, was delegated to temporary perform the duties of the President of the Management Board.

According to the resolution no. 62/IX/2015 of the Supervisory Board dated 30 December 2015, Mrs Dalida Gepfert was dismissed from the position of the Member Financial Affairs, effective Management Board responsible for of the from 7 January 2016.

According to the resolution no. 63/IX/2015 of the Supervisory Board dated 30 December 2015. Mr Grzegorz Kinelski was dismissed from the position of the Member of the Management Board responsible for Commercial Affairs, effective from 7 January 2016.

According to the resolution no. 64/IX/2015 of the Supervisory Board dated 30 December 2015, Mr Wiesław Piosik was revoked to temporary perform the duties of the President of the Management Board, effective from 7 January 2016.

According to the resolution no. 65/IX/2015 of the Supervisory Board dated 30 December 2015, Mr Mirosław Kowalik was appointed to the position of the President of the Management Board, effective from 7 January 2016.

According to the resolution no. 66/IX/2015 of the Supervisory Board dated 30 December 2015, Mr Wiesław Piosik was appointed to the position of the Member of the Management Board responsible for Corporate Affairs, effective from 7 January 2016.

According to the resolution no. 68/IX/2015 of the Supervisory Board dated 30 December 2015. Mr Sławomir Brzeziński, the Member of the Supervisory Board, was delegated to temporary perform the duties of the Member of the Management Board responsible for Commercial Affairs, effective from 7 January 2016 till the appointment of the Member of the Management Board responsible for Commercial Affairs.

According to the resolution no. 18/IX/2016 of the Supervisory Board dated 21 January 2016, Mr Mikołaj Franzkowiak was appointed to the position of the Member of the Management Board responsible for Financial Affairs.

According to the resolution no. 19/IX/2016 of the Supervisory Board dated 21 January 2016, Mr Piotr Adamczak was appointed to the position of the Member of the Management Board responsible for Commercial Affairs.

$1.2$ Information about companies comprising the Group

$1.2.1$ Companies included in the consolidated financial statements

As at 31 December 2015, the following companies were consolidated by the Group:

Parent Company:

ENEA S.A.

Subsidiaries consolidated on the full consolidation basis:

ENEA Operator Sp. z o.o.,
ENEA Wytwarzanie Sp. z o.o.,
ENEA Oswietlenie Sp. z o.o.,
ENEA Trading Sp. z o.o.,
Hotel "EDISON" Sp. z o.o.,
Szpital Uzdrowiskowy ENERGETYK Sp. z o.o.,
ENEA Logistyka Sp. z o.o.,
ENEA Serwis Sp. z o.o., $\bullet$
ENEA Centrum Sp. z o.o., $\bullet$
ENEA Pomiary Sp. z o.o., $\bullet$
ENERGO-TOUR Sp. z o.o. in liquidation, ۰
Annacond Enterprises Sp. z o.o.,
Przedsiębiorstwo Energetyki Cieplnej "Zachód" Sp. z o.o.,
Przedsiebiorstwo Energetyki Cieplnej Sp. z o.o. in Oborniki,
Miejskie Przedsiębiorstwo Energetyki Cieplnej Sp. z o.o. in Białystok,
Miejska Energetyka Cieplna Piła Sp. z o.o.,
"Ecebe" Sp. z o.o. in liquidation,
Lubelski Węgiel "BOGDANKA" S.A.
EkoTRANS Bogdanka Sp. z o.o., $\bullet$
RG "Bogdanka" Sp. z o.o.,
MR Bogdanka Sp. z o.o.,
Łęczyńska Energetyka Sp. z o.o.,
Centralny System Wymiany Informacji Sp. z o.o.,
ENEA Innovation Sp. z o.o.

The following subsidiaries were consolidated for the first time during the year ended 31 December 2015, as a result of the Parent Company acquiring a controlling interest:

Przedsiębiorstwo Energetyki Cieplnej "Zachód" Sp. z o.o. subject to consolidation for the period from 9 June 2015 to 31 December 2015,
Lubelski Węgiel "BOGDANKA" S.A. subject to consolidation for the period from 29 October 2015 to 31 December 2015,
EkoTRANS Bogdanka Sp. z o.o. subject to consolidation for the period from 29 October 2015 to 31 December 2015,
RG "Bogdanka" Sp. z o.o. subject to consolidation for the period from 29 October ٠ 2015 to 31 December 2015,
MR Bogdanka Sp. z o.o. subject to consolidation for the period from 29 October 2015 to 31 December 2015,
Łęczyńska Energetyka Sp. z o.o. subject to consolidation for the period from 29 October 2015 to 31 December 2015.

The following subsidiaries were consolidated until the date control by the Parent ceased:

ENERGO-TOUR Sp. z o.o. in liquidation subject to consolidation for the period from 1 January 2015 to 20 October 2015,
Hotel "EDISON" Sp. z o.o. subject to consolidation for the period from 1 January 2015 $\bullet$ to 18 December 2015,
"Ecebe" Sp. z o.o. in liquidation subject to consolidation for the period from 1 January 2015 to 15 January 2015.

Key Certified Auditor and Audit Firm Information $1.3$

1.3.1 Key Certified Auditor information

Name and surname:	Marek Gajdziński
Registration number:	90061

1.3.2 Audit Firm information

Name:	KPMG Audyt Spółka z ograniczoną odpowiedzialnością
	sp.k.
Address of registered office:	Inflancka 4A Street, 00-189 Warsaw
Registration number:	KRS 0000339379
Registration court:	District Court for the Capital City of Warsaw in Warsaw,
	XII Commercial Department of the National Court Register
NIP number:	527-26-15-362

KPMG Audyt Spółka z ograniczoną odpowiedzialnością sp.k. is entered in the register of audit firms, maintained by the National Council of Certified Auditors, under number 3546.

Prior period consolidated financial statements $1.4$

The consolidated financial statements for the financial year ended 31 December 2014 were audited by KPMG Audyt Sp. z o.o. and received an unmodified opinion.

The consolidated financial statements were approved at the Ordinary General Meeting of the Parent Entity on 30 June 2015.

The consolidated financial statements were submitted to the Registry Court on 13 July 2015.

$1.5$ Audit scope and responsibilities

This report was prepared for the General Meeting of ENEA S.A. with its registered office in Poznań, Górecka 1 Street and relates to the consolidated financial statements comprising: the consolidated statement of financial position as at 31 December 2015, the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended and notes comprising a summary of significant accounting policies and other explanatory information.

The consolidated financial statements were audited in accordance with the contract dated 6 May 2015, concluded on the basis of the resolution of the Supervisory Board dated 18 December 2014 on the appointment of the auditor.

We conducted our audit in accordance with section 7 of the Accounting Act dated 29 September 1994 (Official Journal from 2013, item 330 with amendments) ("the Accounting Act") and International Standards on Auditing as adopted by the National Council of Certified Auditors as the National Standards on Assurance.

We audited the consolidated financial statements at the Group entities during the period from 25 January to 19 February 2016 and on 25 February 2016.

Management of the Parent Company is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with International Financial Reporting Standards as adopted by the European Union and with other applicable regulations and preparation of the report on the Group's activities.

Our responsibility is to express an opinion and to prepare a supplementary report on the audit of the financial statements.

The Management Board of the Parent Company submitted a statement, dated as at the same date as this report, as to the true and fair presentation of the accompanying consolidated financial statements, which confirmed that there were no undisclosed matters which could significantly influence the information presented in the consolidated financial statements.

All required statements, explanations and information were provided to us by Management of the Group and all our requests for additional documents and information necessary for expressing our opinion and preparing the report have been fulfilled.

The scope of the work planned and performed has not been limited in any way. The method and scope of our audit is detailed in working papers prepared by us and retained in the offices of the Audit Firm.

The Key Certified Auditor and the Audit Firm fulfill the independence requirements as described in Art. 56 points 3 and 4 of the Act on Certified Auditors and their Self-Governance, Audit Firms authorized to Audit Financial Statements and Public Oversight dated 7 May 2009 (Official Journal from 2015, item 1011 with amendments).

Information on audits of the financial statements of the consolidated $1.6$ companies

1.6.1 Parent Company

The separate financial statements of the Parent Company for the year ended 31 December 2015 were audited by KPMG Audyt Spółka z ograniczoną odpowiedzialnością sp.k., certified auditor number 3546, and received an unmodified opinion.

1.6.2 Other consolidated entities

Entity's name	Authorised auditor	Financial year end	Type of auditor's opinion
ENEA Operator Sp. z o.o.	KPMG Audyt Spółka z ograniczoną odpowiedzialnością sp.k.	31.12.2015	unmodified opinion
ENEA Wytwarzanie Sp. z o.o.	KPMG Audyt Spółka z ograniczoną odpowiedzialnością sp.k.	31,12,2015	unmodified opinion
ENEA Oświetlenie Sp. z o.o.	KPMG Audyt Spółka z ograniczona odpowiedzialnością sp.k.	31.12.2015	unmodified opinion
ENEA Trading Sp. z o.o.	KPMG Audyt Spółka z ograniczoną odpowiedzialnością sp.k.	31.12.2015	unmodified opinion
Szpital Uzdrowiskowy ENERGETYK Sp. z o.o.	KPW Audytor Sp. z o.o.	31.12.2015	unmodified opinion
ENEA Logistyka Sp. z o.o.	KPMG Audyt Spółka z ograniczona odpowiedzialnością sp.k.	31.12.2015	unmodified opinion
ENEA Serwis Sp. z o.o.	KPMG Audyt Spółka z ograniczoną odpowiedzialnością sp.k.	31.12.2015	unmodified opinion
ENEA Centrum Sp. 20.0.	KPMG Audyt Spółka z ograniczoną odpowiedzialnością sp.k.	31.12.2015	unmodified opinion
ENEA Pomiary Sp. z o.o.	KPMG Audyt Spółka z ograniczona odpowiedzialnością sp.k.	31.12.2015	unmodified opinion
Przedsiębiorstwo Energetyki Cieplnej "Zachód" Sp. z o.o.	KPMG Audyt Spółka z ograniczoną odpowiedzialnością sp.k.	31.12.2015	unmodified opinion
Przedsiębiorstwo Energetyki Cieplnej Sp. z o.o. in Oborniki	KPW Audytor Sp. z o.o.	31.12.2015	unmodified opinion
Miejskie Przedsiębiorstwo Energetyki Cieplnej Sp. z o.o. in Białystok	KPMG Audyt Spółka z ograniczoną odpowiedzialnością sp.k.	31.12.2015	unmodified opinion
Miejska Energetyka Cieplna Piła Sp. z o.o.	DGA Audyt Sp. z o.o.	31.12.2015	unmodified opinion
Lubelski Węgiel "BOGDANKA" S.A.	Deloitte Polska Sp. z o.o. Sp. k.	31.12.2015	×
EkoTRANS Bogdanka Sp. z o.o.	Deloitte Polska Sp. z o.o. Sp. k.	31.12.2015	٠
RG "Bogdanka" Sp. z o.o.	Deloitte Polska Sp. z o.o. Sp. k.	31.12.2015	$\ddot{\phantom{1}}$
MR Bogdanka Sp. z o.o.	Deloitte Polska Sp. z o.o. Sp. k.	31.12.2015	*
Łęczyńska Energetyka Sp. z o.o.	Deloitte Polska Sp. z o.o. Sp. k.	31.12.2015	\$
ENERGO-TOUR Sp. z o.o. in liquidation	brak obowiązku badania	31.12.2015
Hotel "EDISON" Sp. z o.o.	brak obowiązku badania	31.12.2015
Annacond Enterprises Sp. z o.o.	brak obowiązku badania	31.12.2015
Centralny System Wymiany Informacji Sp. z o.o. brak obowiązku badania		31.12.2015
ENEA Innovation Sp. z o.o.	brak obowiązku badania	31.12.2015
"Ecebe" Sp. z o.o. in liquidation	brak obowiązku badania	31.12.2015

*Procedures for the purposes of audit of the consolidated financial statements of ENEA Group were performed however until the date of this report the audit of the statutory financial statement has not been completed

2. Financial analysis of the Group

Summary analysis of the consolidated financial statements $2.1$

2.1.1 Consolidated statement of financial position

ASSETS	31.12.2015	PLN '000 % of total	31.12.2014*	PLN '000 % of total
Non-current assets
Property, plant and equipment	17 074 978	74.3	13 617 942	75.2
Perpetual usufruct of land	74 160	0.3	77 281	0.4
Intangible assets	272 116	1.2	389 961	2,2
Investment property	20 624	0.1	23 431	0.1
Investments in subsidiaries	748	0.0		÷
Deferred tax assets	616795	2.7	167 207	0.9
Financial assets available for sale	23 982	0.1	47479	0.3
Financial assets measured at fair value through profit or loss			99	0.0
Derivatives	844	0.0	7 mi	÷
Trade and other receivables	28 3 23	0.1	20739	0.1
Cash and cash equivalents	90 872	0.4	×	÷.
Total non-current assets	18 203 442	79.2	14 344 139	79.2
Current assets
$CO2$ emission rights	307 521	1.3	208 720	1.2
Inventories	649 509	2.8	508 163	2.8
Trade and other receivables	1 732 744	7.5	1764 128	9.7
Current income tax assets	31 956	0.1	20	0.0
Financial assets held to maturity	479	0.0	189789	1.0
Financial assets measured at fair value throught profit or loss	222 011	1.0	392 251	2.2
Cash and cash equivalents	1822094	7.9	687316	3.8
Assets classified as held for sale	19 240	0.1	13 5 14	0.1
Total current assets	4 785 554	20.8	3 763 901	20.8
TOTAL ASSETS	22 988 996	100.0	18 108 040	100.0

* Restatement of comparative figures is presented in Note 3 of the consolidated financial statements

EQUITY AND LIABILITIES	31.12.2015 PLN '000	% of total	31.12.2014 PLN '000	$\frac{0}{0}$ of total
Equity
Share capital	588018	2.6	588018	3.2
Share premium	3 632 464	15.8	3 632 464	20.1
Financial instruments revaluation reserve	814	0.0	34 777	0.2
Other capital	(45883)	(0.2)	(45883)	(0.3)
Reserve capital from valuation of hedging instruments	3980	0.0
Retained earnings	7 158 352	31.1	7804989	43.1
Total equity attributable to equity holders of the parent	11 337 745	49.3	12 014 365	66.3
Non-controlling interest	784 858	3.4	49 648	0.3
Total equity	12 122 603	52.7	12 064 013	66.6
Liabilities
Loans, borrowings and debt securities	5 933 360	25.8	2 209 648	12.2
Trade and other liabilities	16 5 27	0.1	3 2 7 5	0.0
Finance lease liabilities	992	0.0	814	0.0
Deferred income due to subsidies and connection fees and other	674 682	2.9	637357	3.5
Deferred tax liabilities	388 117	1.7	255 374	1.4
Liabilities due to employee benefits	818772	3.6	618092	3.4
Financial liabilities masured at fair value through profit or loss		Ü,	917	0.0
Provisions for other liabilities and charges	625 388	2.7	464 720	2.6
Total non-current liabilities	8 457 838	36.8	4 190 197	23.1
Loans, borrowings and debt securities	43 3 9 9	0.2	8875	0.0
Trade and other liabilities	1 223 320	5.3	1 135 657	6.3
Finance lease liabilities	1 0 2 5	0.0	1752	0.0
Deferred income due to subsidies and connection fees and other	83 666	0.4	72 698	0.4
Current income tax liabilities	87022	0.4	61 698	0.3
Liabilities due to employee benefits	397 986	1.7	268 277	1.5
Liabilities due to an equivalent of the right to acquire shares free of	281	0.0	281	0.0
Provisions for other liabilities and charges	567 556	2.5	304 374	1.7
Liabilities related to non-current assets held for sale	4 3 0 0	0.0	218	0.0
Total current liabilities	2 408 555	10.5	1853830	10.2
Total liabilities	10 866 393	47.3	6 044 027	33.4
TOTAL EQUITY AND LIABILITIES	22 988 996	100.0	18 108 040	100.0

2.1.2 Consolidated statement of profit or loss and other comprehensive income

	$1.01.2015 -$ 31.12.2015 PLN '000	% of total sales	$1.01.2014 -$ 31.12.2014 PLN '000	% of total sales
CONTINUING OPERATIONS
Sales revenue	10 081 083	102.4	10 057 909	102.1
Excise tax	(232691)	2.4	(202514)	2.1
Net revenue	9848392	100.0	9855395	100.0
Other operating revenue	99 102	1,0	115 066	1.2
Depreciation	(790375)	8.0	(728408)	7.4
Costs of emloyee benefits	(989 489)	10.0	(948 872)	9.6
Consumption of materials and supplies and costs of goods sold	(1791115)	18.2	(1821196)	18.5
Energy and gas purchase for sale	(3282923)	33.3	(3835730)	38.9
Transmission services	(769 503)	7.8	(710 577)	7.2
Other external services	(423 204)	4.3	(336 339)	3.4
Taxes and charges	(290 201)	2.9	(268934)	2.7
Loss on sale and liquidation of property, plant and equipment	(9148)	0.1	(5620)	0.1
Impairment loss on non-financial non-current assets	(1501621)	15.2	(30 556)	0.3 1.0
Other operating expenses	(262040)	2.7	(97754)
Operating (loss)/profit	(162 125)	1.6	1 186 475	12.0
Financial expenses	(81751)	0.8	(125 483)	1.3
Financial revenue	84 497	0.9	81 178	0.8
Impairment of goodwill	(251 432)	2.6	(3131)	$_{0.0}$
Dividend income	1833	$_{0.0}$	3 3 5 5	0.0
Share in profits of associates measured using the equity method		$\tilde{\phantom{a}}$	708	0.0
(Loss)/ Profit before tax	(408978)	4.2	1 143 102	11.6
Income tax	10 100	0.1	(233980)	2.4
Net (loss)/ profit for the period	(398878)	4.1	909 122	9.2
OTHER COMPREHENSIVE INCOME
Items that are or may be reclassified to profit or loss				0.1
Change in fair value of financial assets available for sale	(21048)	0.2	(14282)
Net change in fair value of available-for-sale financial assets	(12854)	0.1
Valuation of hedging instruments	4914	0.0	$\blacksquare$
Other	(61)	$_{0.0}$	ä.
Income tax	(934)	0.0	2 7 14	0.0
Items that will not be reclassified to profit or loss
Remeasurement of defined benefit plan	(1034)	0.0	(95354)	1.0
Income tax	187	0.0	18 11 6	0.2
Other comprehensive income for the period, net of income tax	(30 830)	0.3	(88, 806)	0.9
Total comprehensive income for the period	(429 708)	4.4	820316	8.3
(Loss)/ Profit attributable to:
Parent's shareholders	(434857)		908 319
Non-controlling interests	35 979		803
Total comprehensive income attributable to:
Parent's shareholders	(464 270)		819 562
Non-controlling interests	34 5 62		754
			908 319
Net (loss)/ profit attributable to shareholders of the Parent	(434857) 441 442 578		441 442 578
Weighted average number of ordinary shares	(0.99)		2.06
Net earnings per share (in PLN per share) Diluted earnings per share (in PLN per share)	(0.99)		2.06

Selected financial ratios $2.2$

	2015	2014	2013
1. Return on sales net profit x 100% net revenue	negative value	$9.2\%$	7.9%
2. Return on equity $net profit x 100\%$ equity - net profit	negative value	8.1%	6.7%
3. Debtors turnover average trade receivables (gross) x 365 days net revenue	46 days	41 days	39 days
4. Debt ratio liabilities x 100% equity and liabilities	47.3%	33.4%	29.6%
5. Current ratio current assets current liabilities	2.0	2.0	1.7

• Revenue includes revenue from sales of finished products, merchandise and raw materials.

• Average trade receivables represent the average of trade receivables at the beginning and at the end of the period, with no deduction made for allowances.

3. Detailed report

3.1 Accounting principles

The Parent Company maintains current documentation describing the accounting principles applied by the Group and adopted by the Management Board of the Parent Company.

The accounting principles are described in the notes to the consolidated financial statements to the extent required by International Financial Reporting Standards as adopted by the European Union.

In view of the fact that not all entities being part of the Group apply common accounting principles consistent with the accounting principles applied by the Parent Company, appropriate adjustments to the financial statements of those entities were made to ensure consistency with the accounting principles applied by the Parent Company.

The financial statements of the entities included in the consolidated financial statements were prepared at the end of the same reporting period as the financial statements of the Parent Company.

3.2 Basis of preparation of the consolidated financial statements

The consolidated financial statements of the ENEA Group were prepared in accordance with International Financial Reporting Standards as adopted by the European Union and with other applicable regulations.

The consolidated financial statements were prepared on the basis of the consolidation documentation prepared in accordance with the requirements the Decree of the Ministry of Finance dated 25 September 2009 on principles for the preparation of consolidated financial statements of a capital group by companies other than banks and insurance companies (Official Journal from 2009 No. 169, item 1327 with amendments).

3.3 Method of consolidation

The method of consolidation is described in note 53.2 of the notes to the consolidated financial statements.

3.4 Goodwill arising on consolidation

The method of calculating goodwill arising on consolidation is described in note 53.7 of the notes to the consolidated financial statements.

3.5 Consolidation of equity and calculation of non-controlling interest

The share capital of the Group is equal to the share capital of the Parent Company.

Other equity items of the Group are determined by adding the equity balances of subsidiaries included in the consolidated financial statements in the proportion reflecting the Parent Company's share in the subsidiaries' equity as at the end of the reporting period to the corresponding positions of the equity of the Parent Company.

Only equity of subsidiaries arising after the Parent Company obtained control of the subsidiary is included in the equity of the Group.

Non-controlling interests in subsidiaries included in the consolidated financial statements were determined based on the non-controlling interests' share in the subsidiaries' equity as at the end of the reporting period.

3.6 Consolidation eliminations

Intercompany balances within the Group were eliminated on consolidation.

Sales between entities and other intercompany operating revenues and expenses and financial revenues and expenses were eliminated on consolidation.

The consolidation eliminations were based on the accounting records of ENEA S.A. and subsidiary entities and agreed with information received from the subsidiaries.

$3.7²$ Notes to the consolidated financial statements

All information included in the notes to the consolidated financial statements, comprising of a summary of significant accounting policies and other explanatory information, is, in all material respects, presented correctly and completely. This information should be read in conjunction with the consolidated financial statements.

3.8 Report of the Management Board of the Parent Company on the Group's activities

The report of the Management Board of the Parent Company on the Group's activities includes, in all material respects, the information required by Art. 49 of the Accounting Act and by the Decree of the Ministry of Finance dated 19 February 2009 on current and periodic information provided by issuers of securities and the conditions for recognition as equivalent information required by the law of a non-Member State (Official Journal from 2014, item 133) and the information is consistent with the consolidated financial statements.