1

PSG\JAN05\EP\K2_OVERVIEW(01).PPT

PKN ORLEN audited consolidated financial results: FY 2005 (IFRS)

Paweł Szymański, CFO April 28th 2006

2

Audited consolidated financial results 2005The highest ever results of PKN ORLEN following restructuring and corporate culture changes; supported by market conditions1

The highest ever net profit of PKN ORLEN

After Q4'05 in PLN m 2004 2005unadited adited audited

22.3% ROACE (%)2 16.5% 21.8% Ex. negative goodwill** 13.5%

6 797 EBITDA* 4 037 6 728 EBITDA ex. negative goodwill** 4 834

4 724 Net profit* 2 538 4 638 Ex. negative goodwill** 2 744

3 634 Cash flow from operations 3 637 3 664

15.7% Gearing (%) 3 3.5% 17.0%

882 Cost cutting 637 8821) Refers to the PKN ORLEN Capital Group including Unipetrol, IFRS numbers unless otherwise stated 2) ROACE = operating profit after tax / average capital employed (equity + net debt)3) Gearing = net debt / equity

* Due to creation of on-off provisions for business risk, restructuring, write-off receivables and company protection package – including PLN 149 m at ORLEN Deutschland - 4q’05 results were depressed by app. PLN 282 m. ** Unipetrol results consolidation is resulting in one-off effect of negative goodwill accounted in 2005 to another operating costs in amount of PLN 1 894 m.

3

Dividend proposalPotential acquisition of Mažeikiu Nafta determines the decision of the Management

In case of PKN ORLEN ongoing participation in the tender offer for Mažeikiu Nafta, the Management would like to propose to account all of the net income - reduced by write-off for Labour Social Service Fund - to retention fund

PLN 2 522 mPotential investment in Mažeikiu Nafta represents a more significant value creation potential for the shareholders than the dividend payment

In the situation of PKN ORLEN final termination of participation in the tender for Mažeikiu Nafta, Management of PKN ORLEN would like to adopt new dividend policy starting already from 2006 (from the 2005 net profit) and propose dividend of PLN 4,50 per share. The proposed amount translates to:

76% of PKN ORLEN net income of 2005PLN 1 925 m50% free cash flow to equity (FCFE)

Free Cash Flow to Equity (FCFE)

Accelerated implementation of new dividend policy published in January in Strategy Update 2006-2009Dividend payment of 50% of Free Cash Flow to Equity

takes into account capital expenditures & mergers and acquisitionsallows for maintaining the optimal capital structureNet prof it +

D&ACAPEX Net w orking

capital changeBank loans

changeFCFE

4

Conclusion of the Unipetrol transaction Calculation of negative goodwill effect in PKN ORLEN consolidated financial report FY2005

Final calculation of negative goodwill associated with Unipetrol acquisition (accounted to other operating costs) amounted in 2005 to PLN 1,89 bn

In PLN m

31.05.2005Compound calculation of neg. goodwill= PLN 2 025 m

Additional adjustments

(acquisition price, change in equity in accordance with the audited 2005 Unipetrol results)

NEGATIVE GOODWILL

Audited results 31.12.2005 – negative goodwill = PLN 1 894 m

1 894

1,2- 258126

2 0252 0252 006

19

NEGATIVE GOODWILL31.05.2005

Valuation of Ceska Rafinerska

Impairement test Paramo and Kaucuk

Additional retained earnings of Unipetrol

In PLN m Difference: - PLN 131 m

Negative goodwill of PLN 1 894 m in 2005 audited results as a consequence of:• compound valuation of Unipetrol equity as at 31.05.2005• increase in valuation of Ceska Rafinerska assets (fair value methodology)• impairment test of Paramo and Kaucuk assets

Initially estimated

„negative goodwill”published in preliminary 4Q’05 results

NEGATIVE GOODWILL31.12.2005

As promised the final transaction closing was concluded by the end of 2005.

5

Financial results 2005Sound financial results of PKN ORLEN were achieved even after exclusion of one-off items

Major one-off items in 2005 consolidated results of PKN ORLEN

Negative goodwill - resulting from acquisition and consolidation of Unipetrol1

Business risk provision -agreements concerning the sale of some Unipetrol assets –Q2’052

Protection package provision –Q2’05 (PLN 54 m) and Q4’05 (PLN 112 m)

ORLEN Deutschland - provision for business risk and write-off of receivables – Q4’05 (PLN 137 m, PLN 12 m)

+ 1 894

In m PLN

- 376

- 1661

- 149

One-off effect on P&L

49%

7%

4%

40%

Business risk provision - ORLEN DeutschlandOther business risk provisionProtection package provisionReceivables write-off - ORLEN Deutschland

21

137 112

12

Major one-off negative items in Q4’05consolidated results of PKN ORLEN

TOTAL: PLN 282 m

In PLN m

Clean net result Q4’05*: PLN 610 m Clean net result 2005*: PLN 3 426m

1) Total gross amount. Protection package of PLN 36.7 m was utilized in 2005.* Pro forma calculation

6

Simplified P&L accountIncrease of EBIT by 9% excluding negative goodwill effect*

Unipetrol 7m'2005 2005 difference difference % change

2005/20041 2 3 4 5=4-2 6=5/2 7=4/1

Revenues 30 680 42 804 7 368 41 188 -1 616 -3,8% 34,3%

Operating profit 2 687 5 060 176 4 948 -112 -2,2% 84,1%

Net profit 2 538 4 724 96 4 638 -86 -1,8% 82,7%Net profit ex minority shareholders 2 482 4 670 96 4 585 -85 -1,8% 84,7%

audited2004

after Q4'05 28.02.2006IFRS, PLN m

adjustment of negative goodwill - 111*adjustment of hedging instruments - 26change of provisions 41others 11

Key differences between audited and preliminary results of 2005 (in m PLN):

Revenues in 2005 excluding 7 months of Unipetrol consolidation increase by 10% y/y.

EBIT result excluding Unipetrol consolidation and one-off negative goodwill, increases by 9% y/y

* Unipetrol results consolidation is resulting in one-off effect of negative goodwill accounted to another operating costs in amount of PLN 1 894 m. Proforma calculationCommnets regarding the difference between 111 m PLN and 131 m PLN on slide 4 (initially estimated 2 006 m PLN negative goodwill)

7

EBIT of PKN ORLEN by segments Significant improvement of operating results

IFRS basis, PLN m 2004 Unipetrol 4kw'05

Unipetrol 7months 2005

2005 y/y

Operating profit , of which 2 686 66 176 4 947 84,2%

negative goodwill 1 894

operating profit (excl.neg. goodwill) 3 053

Refining1 2 248 53 165 2 947 31,1%

Retail -6 -13 -11 78 -

Petrochemicals 881 40 70 858 -2,6%

Others2 -32 -14 -48 -98 206,3%

Non attributable3 -405 0 0 -732 80,7%

Comments

The differences between Unipetrol results and the consolidated numbers of Czech company accounted in PKN ORLEN resulted from the asset revaluation of Unipetrol - in accordance with IFRS 3

Depreciation of Unipetrol in PKN ORLEN books for the period June-December 2005 - 538 m PLN Depreciation of Unipetrol in PKN ORLEN books for the period of Q42005 - 269 m PLN

1)Production, Wholesale and Logistics2)Departments responsible for energetic media and social activity and services subsidiaries of PKN ORLEN4) Includes corporate centre of PKN and subsidiaries not mentioned in previous segments

8

Macroeconomic environment in 2005Variable and volatile refining and petrochemical sector

0123456789

3-Jan

3-Feb

3-Mar

3-Apr

3-May

3-Jun

3-Jul

3-Aug

3-Sep

3-Oct

3-Nov

3-Dec

3-Jan

3-Feb

3-Mar

3-Apr

200520042006E

02468

10121416

3-Jan

3-Feb

3-Mar

3-Apr

3-May

3-Jun

3-Jul

3-Aug

3-Sep

3-Oct

3-Nov

3-Dec

3-Jan

3-Feb

3-Mar

3-Apr

200520042006E

2,5

3,0

3,5

4,0

4,5

5,0

3-Jan 3-Mar 3-May 3-Jul 3-Sep 3-Nov 3-Jan 3-Mar

PLN/USD PLN/EUR

PLN/USD 2006E PLN/EUR 2006E

2006

Refinery margin 5.12 $/b average in 20053 Decrease by 9% y/y2.56 $/b average in 1q20063 Decrease by 30% y/y

Brent/Ural differential4.20 $/b average in 2005 Increase by 2% y/y3.63 $/b average in 1q2006 Decrease by 29% y/y

Brent 54.48 $/b average in 2005 Increase by 42% y/y61.78 $/b average in 1q2006 Increase by 30% y/y

Exchange rates average1

1) Source: NBP2) Estimates published in PKN ORLEN Strategy Update 2006-2009

3) Calculated as: Products (88.36%) vs. Brent Dtd (100%). Products contain Premium Unl (25.21%), EN590 (23.20%), Naphtha (16.51%), LOO (15.31%), HSFO (5.44%) i Jet (2.69%)

(source: CIF NWE quotations, except HSFO FOB ARA)

01020304050607080

3-Jan

3-Feb

3-Mar

3-Apr

3-May

3-Jun

3-Jul

3-Aug

3-Sep

3-Oct

3-Nov

3-Dec

3-Jan

3-Feb

3-Mar

3-Apr

200520042006E

2 2

Since January 2006 r.

2006

2006 2006

Since January 2006 r.

Since January 2006 r. Since

January 2006 r.

24-Apr

24-Apr24-Apr

24-Apr

9

AgendaSupporting slides

Supporting slides

Segments waterfall charts q/q

Petrochemicals market – environment summary

Unipetrol

Retail market in Poland

10

Refining segment

496

142

5452

53

30 14 6 6 5

(1)(71)

(90)

(98)

(201)(46)

351

0

100

200

300

400

500

600

700

800

900

Segm

ent r

esul

t 200

4

LIFO

Res

ult o

n ot

her o

per.

activ

ity o

f PKN

Sale

s vo

lum

es

Uni

petro

l

Inla

nd p

rem

ium

Cos

t cut

ting

prog

ram

me

USD

/PLN

exc

hang

era

te

OR

LEN

Asf

alt

Ref

inin

g m

argi

n

OR

LEN

Deu

tsch

land

Fair

valu

e ad

j.

Inte

rnal

sal

es re

sult

Cru

de o

il ow

nco

nsum

ptio

n

Ura

l/Bre

nt d

iffer

entia

lan

d ex

chan

ge ra

tes

Oth

ers

Segm

ent r

esul

t 200

5

PLN m Q4’04 Q4’05

∆

∆

∆

∆

∆ ∆ ∆ ∆

∆∆

∆ ∆

∆

∆

11

Petrochemical segment

278

90

5940

273 3

(6) (11) (12) (19)(22)

(50)

(91)

(86)203

0

100

200

300

400

500

Segm

ent r

esul

t 200

4

Inte

rnal

sal

es re

sult

Sale

s vo

lum

es

Uni

petro

l

Res

ult o

n ot

her o

per.

activ

ity o

f PKN

USD

/PLN

exc

hang

era

te

Cos

t cut

ting

prog

ram

me

Fair

valu

e ad

just

men

t

Cru

de o

il ow

nco

nsum

ptio

n

Hed

ging

Con

solid

atio

nad

just

men

ts

Anw

il

BOP

Petro

chem

ical

mar

gin

Oth

ers

Segm

ent r

esul

t 200

5

PLN m Q4’04 Q4’05

∆

∆

∆

∆

∆ ∆

∆ ∆

∆

∆∆

∆

∆

12

Retail segment

-54

62

20

12

2

(14)

(18)

(66)

14

-42

-70

-50

-30

-10

10

30

50

Seg

men

t re

sult

2004

Ret

ail m

argi

n

Res

ult

on o

ther

ope

r.ac

tivity

Cos

t cu

ttin

gpr

ogra

mm

e

Non

-fue

ls p

rodu

cts

mar

gin

Uni

petr

ol

Sal

es v

olum

es

OR

LEN

Deu

tsch

land

Oth

ers

Seg

men

t re

sult

2005

PLN m Q4’04 Q4’05

∆ ∆

∆

∆

∆

∆

∆

13

Petrochemical market from 1 January 2004 to mid April 2006

0

100

200

300

400

500

600

700

800

900

1000

1-Jan 1-Apr 1-Jul 1-Oct 1-Jan 1-Apr 1-Jul 1-Oct 1-Jan 1-Apr

Ethylene Average (Ethylene-Naphta) Naphta

Ethylene

398413370

314 304322

211

in EUR/tone

398

Spread (Ethylene-Naphta)

338

0

100

200

300

400

500

600

700

800

900

1-Jan 1-Apr 1-Jul 1-Oct 1-Jan 1-Apr 1-Jul 1-Oct 1-Jan 1-Apr

Propylene Average (Propylene-Naphta) Naphta

232

290254

293427

353

211

in EUR/tone

383

Spread (Propylene-Naphta)

338389 349

Propylene

Source: Market quotations

0

200

400

600

800

1000

1200

1-Jan 1-Apr 1-Jul 1-Oct 1-Jan 1-Apr 1-Jul 1-Oct 1-Jan 1-Apr

PP Average spread (PP-Propylene) Propylene

347270250

17658

296376257

Spread (Propylene-Naphta)

in EUR/tone

0

200

400

600

800

1000

1200

1-Jan 1-Apr 1-Jul 1-Oct 1-Jan 1-Apr 1-Jul 1-Oct 1-Jan 1-Apr

PE Average spread (PE-Ethylene) Ethylene

in EUR/tone

251352

166

357400

217312 286

Spread (PE-Ethylene)

Poliethylene (LDPE) Polipropylene

275240272

201

14

Unipetrol GroupSelected audited financial data for FY2004 vs. FY2005

Audited financial results of main subsidiaries of Unipetrol a.s.in 000 CZK 2004 IFRS* 2005 IFRSChemopetrol a.s. Revenues 28,899,450 31,181,618

EBIT 2,743,604 3,157,240 Net result 1,952,507 2,616,366 Equity 13,033,302 14,174,200Total assets 28,533,029 28,381,695

Benzina a.s. Revenues 20,700,329 11,426,602 EBIT 487,891 -9,361 Net result -1,053 -499,103 Equity 323,532 1,123,429Total assets 8,323,622 7,657,185

Ceska Rafinerska a.s. Revenues 9,103,977 9,292,780 EBIT 489,963 468,191 Net result 321,396 325,834 Equity 17,805,918 18,131,752Total assets 28,332,362 24,906,135

Kaucuk a.s. Revenues 10,202,929 10,395,443EBIT 561,906 535,593Net result 277,711 439,068Equity 6,340,241 6,795,322Total assets 9,211,038 8,909,922

Paramo a.s. Revenues 9,136,966 11,073,141EBIT 285,72 -103,499Net result 157,137 -207,411Equity 1,596,225 1,897,487Total assets 3,419,894 4,351,747

Spolana a.s. Revenues 5,070,504 5,757,796 EBIT 250,250 291,884Net result 118,527 183,071Equity 884,528 1,067,599Total assets 3,782,827 3,870,302

Unipetrol Rafinerie a.s. Revenues 59,252,192 76,321,599EBIT 1,365,415 978,333 Net result 1,061,731 578,353Equity 827,805 1,406,159Total assets 9,531,005 13,263,227

*restated data

15

Unipetrol Group Audited financial and operational results for 2005

Audited consolidated financial highlights of Unipetrol a.s. 2004-2005

in '000 CZK 2004 IFRS* 2005 IFRS

UNIPETROL a.s. Equity 32 825 771 38 988 043

Total assets 72 143 595 76 441 640

Revenues 71 097 589** 80 946 337***

EBIT 5 846 248 5 279 069

Net result 3 709 728 3 407 111

* restated results *** revenues without excise tax

The excise tax in 2005 amountsto 19,508,980 ths CZK

** revenues without excise tax

The excise tax in 2004 amountsto 15,159,302 ths CZK

16

Unipetrol GroupSelected financial data for FY2003 vs. FY2005

Operational highlights for years 2003-2005

Operating data* Q1'03 Q2'03 Q3'03 Q4'03 2003 Q1'04 Q2'04 Q3'04 Q4'04 2004 Q1'05 Q2'05 Q3'05 Q4'05 2005

Total sales (tt) , of which 110 177 720 1 135 2 142 1 024 1 195 1 204 1 269 4 692 1 118 1 326 1 400 1 320 5 164

- light product sales (tt) 1 45 69 429 728 1 269 654 770 784 830 3 039 746 848 919 854 3 367

- other refinery products sales (tt) 52 83 156 128 420 100 132 190 130 552 123 192 197 166 678

- pet-chem sales (tt) 14 25 114 231 383 221 243 189 253 905 209 236 235 249 928

- other product sales (tt) 0 0 21 48 69 49 50 41 56 196 41 51 50 51 192

Retail sales of motor fuels (tL)2 110 130 137 129 507 107 130 133 120 491 104 126 136 120 486

Processed crude (tt) 131 143 671 978 1 922 834 898 952 1 034 3 718 874 1 022 1 134 1 122 4 151

Utilisation3 69% 69% 67% 71% 70% 62% 65% 68% 75% 67% 64% 74% 81% 81% 75%

White product yield4 45% 65% 68% 71% 68% 72% 67% 74% 70% 71% 72% 69% 72% 71% 71%

Fuel yield5 34% 48% 59% 60% 57% 46% 56% 57% 55% 54% 56% 60% 61% 56% 58%

*Refers to Unipetrol Group1) Gasoline, Diesel, LHO, Jet

2) Gasoline, Diesel, LPG3) 51% of Ceska Rafinerska, 100% of

Paramo 4) Gasoline, Diesel, LHO, Jet

5) Gasoline, Diesel, LPG, LHO

17

9759

2954

Domestic production of petrols and ON(thousand t.)Import of petrols and ON (thousand t.)

27,0

6,8

29,5

36,7

PKN Orlen

Economy segment (Neste, Jet,hypermarkets)Foreign groups (BP, Shell,Statoil)Other stations (Lotos Group,private stations)

Retail consumption of fuels in Poland in 2005 (in thousand tonnes)Estimated dynamics 2005-2004

Balance sheet of motor oils in Poland in 2005 Estimated share in the retail market (%)

PKN Orlen is not a dominant entity on the retail market

Foreign groups and otheroperators have a significantmarket share

• Poland is an importer ofmotor fuels

23%

77%

Retail fuels market in Poland

Petrol Diesel oil LPG Total of fuels

4 029 5 127 1 775 10 931

- 5.3% + 5.7% + 23.3% + 3.6 %

18

Fuel pricingInternational conditions of crude oil price growth

Limited relationship between quotation rise and actual crude oil demand and supplySignificant premium for political (international) riskMainly political – and not economic – factors of price rise

Domestic market conditions

Average gross retail profit margin on the market lower by over a dozen percent than a year agoIncreasing market competitiveness (hypermarket stations etc.)Growing interest among customers in Bliska economy brand (sales growth year-on-yearexceeds 30%).Lowering profit margin threatens existence of many private stations.

19

Retail pricing structure for Pb95 in the period January – April 2006.

0%

20%

40%

60%

80%

100%

120%

Gross retail profit margin

VAT

Fuel fee

Excise duty

Land premium

Crack profit margin

Brent Crude Oil Price

SPOT

Platts

Costs to be covered with the gross retail profit margin:

1) Operating costs of a petrol stationincluding - transport costs

- staffing costs- materials and energy- taxes and charges- refurbishing services

2) Marketing costs3) Sales support costs4) Appreciation of the petrol station

Retail price structure

20

Starting from mid March PKN Orlen S.A. has been relieving the adverse outcomes of the growth in crude oil price by decreasing the unit fuel gross margin in Retail

2,7

2,8

2,9

3

3,1

3,2

3,3

3,4

3,5

3,6

3,7

01.03.200

6

03.03.200

6

05.03.200

6

07.03.200

6

09.03.200

6

11.03.200

6

13.03.200

6

15.03.200

6

17.03.2

006

19.03.200

6

21.03.200

6

23.03.200

6

25.03.2

006

27.03.200

6

29.03.200

6

31.03.200

6

02.04.2

006

04.04.200

6

06.04.200

6

08.04.200

6

10.04.200

6

12.04.200

6

14.04.200

6

16.04.200

6

18.04.200

6

20.04.200

6

22.04.200

6

24.04.200

7

47,0

52,0

57,0

62,0

67,0

72,0

Cena detaliczna SPOT Brent (Dtd) w USD/bbl Cena detaliczna

Retail price

Retail price

Bre

nt o

ilqu

otat

ions

[US

D/b

arre

l}

Brent oil quotations

Retail price Brent (Dtd) in USD/bbl

Retail price

Net

reta

ilpr

ice

[PLN

per

litre

}

21

Pb95 gasoline prices on ORLEN sites in 2006 are lower or equalto prices in the competing Premium stations across Poland

0 gr

0 gr

0 gr 0 gr

-2 gr

-2 gr

-2 gr

-1 gr

-1 gr

-1 gr

-1 gr

-1 gr

-1 gr

-1 gr

-1 gr+1 gr