Good morning, ladies and gentlemen, and welcome to the conference of ENEA Group and Bogdanka. We will be talking about the results and the most important events of the first three quarters of 2025. I would like to welcome analysts, journalists, members of the board of ENEA Group, and welcome to everyone watching us online. Who are the hosts of the meeting? Grzegorz Kinelski, the CEO, President of ENEA; Dalida Gepfert, Deputy President for Corporate Matters; Marek Lelątko, Deputy President for Financial Matters; Bartosz Krysta, Deputy President for Trade Matters; and Artur Wasilewski, Deputy President for Financial and Economic Matters for Bogdanka. This conference, as always, is divided into three parts. First, we'll be talking about the results and financial results. This will be presented by the board of ENEA and Bogdanka. Then we'll have a short video clip. The third most important part will be time for answers and questions. Without any delay, I will now give the floor to Grzegorz Kinelski. Thank you. Good morning. I am very happy to see you here after these three quarters. I'm happy that we can summarize these results. It is a very important moment for our group. Before we discuss the three quarters, we've been working very hard this year and the previous year. We've been implementing our strategy. We want to achieve the objectives that we set ourselves last year. You can see it's almost been one year of implementing this strategy. We want to have this low-emission strategy implemented. We want to set new objectives and face the challenges of the future. The operational and financial results will be discussed in detail in a minute. We can undertake concrete actions. We can develop our company after nine months. It's been almost PLN 4.7 billio n in terms of EBITDA. This is why we have added 200 MW. We have added that to our green park. We've invested in the expansion of the grid. This is the main objective of ours as of now. We've been modernizing and digitizing the whole system to make it more flexible. 1.5 billion Polish zlotys have been earmarked for that. We are also making it possible to connect new sources. We've increased the flexibility of the grid. It is very important, given the instability of some of the sources, for example, photovoltaics. Transformation and systemic power plants is very important. Greening is in the process. We are building gas units in Kozienice. We've been trying to increase the share of biomass by greening, making units work longer. This is how we will be able to use the power market to the full extent and to use these units as well. Thanks to the engagement of the whole team and all the employees, this is something that I want to thank you for. This conference is always a good opportunity to do that. You are here today, and you are very much aware that it doesn't take a few people. We need a few dozen thousands of people to do that. We are on a good way to face the challenges, to achieve our objectives. But the times are difficult. We've been working very hard, and we are very much disciplined because we want to achieve these goals. Thank you once again for coming, and we will now discuss the results in detail. Then there will be a video clip and Q&A session. Good morning, ladies and gentlemen. As always, some important pieces of information in terms of trends and market environment. A moment comes to the delivery contract supplies of energy. From April, May, prices have been on the increase. Quotations right now have exceeded 450 Polish zlotys for MWh. This is above the 400 that was the previous peak. It is because the allowances for emissions prices have increased in the last six months. They've increased by around 10 euros, so around 40 Polish zlotys per MWh. This translates into higher electrical energy prices. Stable price, 467. But as you can see, there is a lot of volatility, many negative prices, and diversification in terms of prices, especially for the summer period. For the perspective of the third quarter, this is definitely a reference period. In terms of coal, it's around $100. These quotations, it was even a little bit more or a little bit less, around 14 Polish zlotys for gigajoule of coal. And now spreads. This is important because it carries the margin. It's been stable. We can see no changes, and we can see in the negative around minus 30 złoty, and the situation hasn't changed for a long time. Better spreads for gas, especially in the last months, which is due to higher electrical energy prices, which is then due to higher prices for emissions. It was at the level of zero plus, and now it's above 40 Polish złoty. Financial data shows falling revenues. This trend continues because of higher energy prices. These are the repercussions of the energy crisis. We have lower production a little bit, as well as energy sales. When it comes to financial results, I think the coming quarter will not surprise you because these trends will continue. They are quite stable and predictable. We will maintain the EBITDA margin. There was a slight drop, but this is a trend that is due to the energy prices on the market. In the first quarter, we had a one-off at Bogdanka, PLN 150 millio n, which had a positive result on the results. We got compensation. We have a positive net result for three quarters, PLN 2.7 billion. We've been improving the situation in terms of cash. On this chart, you can see that last year, at this time when we're meeting, it was PLN 8.2 billion. Now it's PLN 6 billion in terms of the debt. Right now we have more cash than debt, but soon we will have to buy ETS, quite a lot of them. On the right-hand side, you can see what will happen once we buy it within the same time perspective. If you take a look at what gets the best results for us, of course, distribution has been stable according to the expectation. A huge drop in terms of EBITDA, but it is not our fault. It's because of the situation of the energy market. The turnover is back to this rational profitability, as we could put it. When it comes to this trade-off, it's about the tariff as well. It was introduced last year, and we've suffered some losses. We've been able to recover this loss this year. But this also impacts this year's results. So PLN 587 million, what you can see, this is also the result of the losses from last year. Extraction, this is something that Artur will be talking about in detail in a minute. When it comes to more detailed information, you will get it all in the materials. I will just very generally tell you that in terms of the production, we earn less in comparison to the previous year on lowering energy prices on the market. We had repurchase, and we earned a lot of that last year. This year, less because of the difference of the date between the contracting last year and the spot this year. The differences are not that big, so we cannot earn as much money as last year on that. But the repurchase will stay forever with us, as we've indicated, because there will always be this time, these hours when we will not start the conventional energy power plant because we'll have a lot of energy from renewable sources. This repurchase will always be taking place. Now, when it comes to other areas, it's been quite stable, as I have mentioned, according to our expectations. If you look at the quarter, something that has changed in this third quarter, we've earned less on balancing power. This was introduced in June last year, and it was in the process of stabilizing. This is why we could earn on it on this market last year. This year, it's different because the market has adjusted to this mechanism. It's been optimized. We've had good results for the thermal segment, better results in comparison to the previous year. Now, financial flows. Very good in terms of the taxes. We got more returns. But all in all, you have to pay the tax in the end. Investments, investment expenditures. We have some RES investments. But also, thanks to our efforts, we've been investing throughout the year, not only in November and December. This is more efficient for us and for the market. We have earned on these investments. CO2 settlement has had good results, 3.5 billion zlotys. This is something that we'll have to repurchase in December this year and until March the next year. This is some deviation towards cash, we could say. We have around 600 million zlotys of cash generated. Ladies and gentlemen, a few words about the market situation. The situation remains difficult. There are a lot of challenges. The operational results of the whole of the mining industry have been adjusting to the market needs. Lower demand means losses in terms of sales and production, fewer reserves, smaller imports of coal, around $100, as has been mentioned. We add around 13 PLN to gigajoule, and then the freight, which gives us in Poland the price of around 15, 16 PLN for one gigajoule. This is what these indices show us. This difficult market situation, of course, has an impact on the results of the company: 20% lower revenues, which translates into worse results. But we had a write-off last year. These results are worse because EBITDA is half of what it was last year. The production results are very similar, a little bit lower, and the whole of the production has been sold. On the next chart, you will see what has impacted the EBITDA. Both the price and the volume, this PLN 600 million, had a negative impact on EBITDA. Now, costs, reserves, and this one-off event, this compensation, this had a positive impact on EBITDA. We have around PLN 300 million for EBITDA this year. Now, generation segment. In this segment, we also have a reduction of revenues compared to last year, 28%. A big impact of the lower price of electricity. For three years, we had a downward trend, and that's the main reason of lower revenues. Also, slightly lower revenues from balancing services. The EBITDA margin at 14.6%, a very decent result, lower than last year, naturally. The production levels are at a very similar level to last year. Slightly lower repurchase due to the fact that spreads on repurchase and the opportunities for repurchasing electricity are lower than was the case last year. But today, repurchase of electricity is a big factor in the creation of margins, and that has an impact on the result of the generation segment. As you have seen, the spreads of production profile are close to zero in most units. In revenues, the electricity balancing market plus trade in electricity based on our assets. Slightly bigger contribution of generation in renewables, but more about it in a moment. With regard to renewables, in terms of power, not much has changed. We have growth in wind farms due to the acquisitions that we have completed this year. That translates into the analysis of the nine months of this year in terms of production, 237 GWh from wind compared to 115 in the same period of last year. Lower production in hydro. This is due to the hydrological situation in the country and a very similar production from solar, from PV farms. A few words about our projects. As we have indicated, we are entering the issue of storage. It's a priority for us in terms of transformative investments. Right now, we have over 500 MW in permits obtained, high voltage. These projects will be implemented first. Hopefully, in the first quarter of next year, we will have the right procedures completed. Over a dozen projects altogether, three gigawatt hours in medium voltage. These are projects that will be built together with PV farms, existing ones and new ones. This will be a second step that we will take care of in spring next year. This will be implemented and electrified in the prospect of subsequent two years. We, of course, have PV projects that we are highly selective about. We are analyzing them to make sure that they are profitable. With the current prices, you have to be very careful. That's what we're doing. A few words about heat. We did not give you this information from the segment. Due to decarbonization and transition, a lot is happening in the segment. As you know, our heating segment is not a big one. Some 400, 450 MW in terms of installed capacity in Białystok, around 100 in Piła, 20 something in Oborniki. These are not big numbers, but we are managing in all those locations both the heating system and the sources. In Białystok, we have launched a decarbonization program that complies with the climate neutrality program, but it should also ensure the efficiency of the heating system. We're following in the right direction until 2040, at least. Apart from upgrading the biomass boilers that are the way to cut coal consumption, we'll be installing heat pumps, we'll be building electrode boilers. Overall, it's PLN 270 million in terms of funding. We are applying for co-funding. We have applied for PLN 45 million in co-funding and the same for Piła, Energetyka Cieplna Piła. We have launched projects related to greening, broadly speaking, of the heating sector in Piła. The value is 84 million zlotys, and that complies with the climate neutrality plan and with the path to meeting individual milestones so as to ensure an efficient system. In terms of co-financing, this is not our last word. We'll be looking for various opportunities to apply to different programs. In terms of distribution, with the tariff for the year, we are simply implementing it. I'd like to point your attention to increase of revenues, 4.4%. That translates into rates for customers because the volume is pretty stable. It's inflationary growth. 2.1 billion zlotys is a result of big investments that we have implemented and are implementing this year. Never before have we done that. We have invested in last year at the level of a billion zlotys, and we have increased the spending to 3 billion zlotys. That's a big jump. Efficient Transformation Charter is 76%. I'd like to point your attention to the chart at the bottom on the right. Regulated revenue is 6.8, almost billion zlotys. WACC return on investment is 1.6 billion zlotys. A lot of discussion on this. The return is 20% of the overall regulated revenue of the company, plus the costs of PSE, the transmissions company. We are optimizing all the time. From the point of view of distribution and transformation, we are verifying our development plan. The results of the review will result in final decisions on weighted average cost of capital. We have currently adopted 8.5%. These elements will impact on the investments that we carry out in the same time. Three quarters of the year, we have completed a number of major network investments that increase the capacity to connect new buyers, new sources, or increased security of the operation of the network. We're very happy with the TETRA program, which boosts the resilience. This is an independent communication system for our teams and the key parts of the network, which is in operation in Tauron and Energa. Early next year, we'll be using TETRA as well. In terms of funding, we have increased funding from the RRP in the last quarter. We'll be obtaining money over many years to come. The PLN 10 billion will not be sent in the first month or first year. It will be spread over several years. For us, it is subsidies that matter the most, and we want to use them first. We have co-funding at the level of 80%. Those are the levels that we're talking about, and these are always resources that are used first because they lower the impact of the transition on customers. We can use resources from RRP until the 2030s, and we'll be paying them off from mid-2030s. This loan will help us a great deal. We're at a final stage in terms of REPower EU for rural networks. This is a big program worth 4.2 billion zlotys. We hope that the approval of our tariff this year will be linked to information on this subsidy because it has an impact on our cash flow of the entire group in the prospect of next year. It weighs in quite considerably. At the same time, we are mindful of the fact that we need to look at other programs related to cheap loans or subsidies to fund our investments from those programs to the maximum extent because that lowers the impact on customers. From the point of view of installed capacity connected to our network, new sources, the investments that we are implementing are related to new obligations that we did not have a handful of years ago. Soon, energy was coming from a number of power plants and cogeneration plants from the top to the bottom. Now we have 200,000 generators of power, eight our units, 1,000 from Kozienice. This is something that we've not had before. We had to service the system. This is a bidirectional flow of energy changing every minute, and that is relevant from the point of view of the energy transition. We have to be mindful of that. On our desks, we have 1.6, 1.4 of connection conditions issued to customers as part of the Charter of Efficient Transition. We are implementing investments to enable connections, and additional 8 GW are waiting to be connected. Unfortunately, we will have to reject a large part of these applications due to the availability of our network. You can see how many sources we have connected in individual powi ats and what is the available connection power. We are also working on efficient use of energy. It's easy to build and build, but you have to also think about us as users, big companies, individuals. We need to learn to be efficient in our energy use. We need to use it when it's generated from solar or wind. Soon, we will be storing it in an energy storage facility because it's cheapest to consume energy when it's widely available from renewable sources. Every other type of consumption results in additional costs. Moving on to trade, I'd like to comment on the results that I would wish to have as standard: EBITDA of PLN 587 million and in retail PLN 574 million. These are record results above the ordinary. Unfortunately, for now, they seem to be a one-off result. In this result, you have over 200 million zlotys that ENEA has returned as a result, has reclaimed as compensation for lower tariff last year. That's 200 million zlotys plus 100 million of other additional revenues optimization that we managed to complete. Both the reference point, if you compare 170 million in retail for three quarters of 2024 to 574 million this year, the reference 170 million is 100 million lower. Let me remind you that we had a lower tariff in the second half of 2024. So the results of this year demonstrate that the difference is primarily what we are recovering from lower tariff plus optimization in terms of hedging profiles. This is what we managed to do extra on trade. Volumes are on target, very similar, minor differences that do not need any major comment. Now, with regard to the key directions and challenges for trading, we are actively participating in the market. We are maintaining a portfolio around 25 terawatt hours. This is a level of volume that seems to be optimal from the point of view of what we are generating. We have a lot of green offers, eco offers for households, but also for business customers. As I mentioned many times, our goal is to sell all of the green energy produced by the group and the one that we have in the origination portfolios to structure it in such a way so that it's bought as a part of a portfolio for customers on the retail market. We have contracted over 90,000 contracts, over 600 GW hours in terms of households, and over 20 contracts in a very similar volume, almost 700 GW hours for corporates. We are still selling, contracting green energy, and we are implementing the guidelines. The biggest contracts that I wanted to mention are Grupa Boryszew, Grupa Azoty, and Grupa Bogdanka. We're also involved in public procurement, Aquanet, MPK Poznań. We're also very proud of winning a tender for electricity for the city of Warsaw, the capital city of Warsaw, for 618 GWh. Ladies and gentlemen, my colleagues have already spoken about the completed investments in individual segments. Let me now summarize what happened over the entire year in all the segments taken together. I remember when we were showing you the strategy and we announced that we would be implementing investments worth 8 billion zlotys. It generated a lot of emotion, but we are implementing this plan consistently, if you can see. It's important because this is a huge effort for the entire group. Just last year, in 2024, after three quarters, we had over 2 billion zlotys of investments completed. This year, we have completed over almost 4.5 billion. It's a whole series of events, purchasing processes, implementation, corporate decision-making. Please believe me, this is a huge effort for the entire organization. We have some minor movements, particularly in generation. You can see that we've been planning initially much more, 1,230 million in conventional generation. Right now, we have just 360 million. This was due to the fact that some of the investments have been postponed, moved in time because the contracting on the power market was taking a bit longer, and the investment decisions were also being delayed as a result. We are on time in terms of investments in distribution, renewables, over PLN 2 billion this year invested. You can see that it's bang on our plan in terms of investments. The power market, a concluding slide. In mid-year, during the run-off auction, we have contracted 2,000 MW, 1,218 for the new gas unit in Kozienice. Now, as part of the power market for Kozienice and Połaniec, we have contracted an additional 1,735 MW. This is the entire structure of contracting that we currently have for all of our structures, both for coal generation, Unit 11, plus the 200, 500 blocks in Kozienice. In Połaniec, all the units are contracted. Since 2029, our new gas unit in Kozienice will be operational and contributing. In years seven and eight, we still have opportunities related to the one-year power auctions. These auctions are one year now. We will be taking part in every year, in every year's edition. That's part of our agenda in line with what Marek was saying we'll be taking part in these auctions. Ladies and gentlemen, the ENEA Group, I will be showing you the strategy, the ESG strategy that we have adopted. But one of the pillars, one of the four key pillars, is that ENEA will be efficiently cooperating in the context of building value chains. In our strategy, we have almost PLN 108 billion of investment, a huge effort of our organization. But unquestionably, this is also a huge challenge for our partners with whom we'd like to cooperate and implement these investments. We have found several elements that seem critical if we need to efficiently implement our plans. The year was an ambitious one, but we also found many critical elements for the plan, the 10-year plan, to be successful. One of these elements is certainly the issue of supply security. We all know what supply chains were like during the energy crisis. We know that supply chains from distant parts of the globe imply specific risks. So we wanted to tackle the issue of building local content in such a way so as to secure among our local contractors support in the implementation of these investments. This is, of course, related to the reorganization of us as a group. We are currently, and I think like most companies with partial ownership of the state treasury, we need to comply with specific rules for operation because we're taking part in public procurement. But we also carry big responsibility that all our contracts are to be secure. We expect our partners to pay up additional guarantees. As a result, some of the potential suppliers are unavailable to us. If we're talking about this magnitude of investment, which is so huge, we need to develop more flexible and more adequate solutions, better tuned to the abilities of our local partners. We also need to boost competitiveness of Polish companies. We assume that this will boost the potential and the ability to take part in our public procurement exercises. We hope that if we shorten this supply chain, we will optimize everything in terms of costs and timing. We also hope that thanks to this cooperation, we'll be able to work with universities and scientific agencies. While implementing the plan, we will be needing the support and will be on the lookout for innovative solutions. I think that this will be beneficial to all of us. Namely, ENEA will be more competitive, will have better supply security. On the other hand, we will also build this pillar of financial security. We'll be a safe, secure counterparty that will allow the development of local entities and partners. This will require from us the ability to cooperate and to build partnerships. This is why we've already appointed Jarosław Tokarczyk as the representative of the board for local content. He'll be responsible for the coordination of all the operations by the whole ENEA Group so that we get more flexible and ready for the cooperation. It's not only about internal work. It's more about working with our partners. We'll be trying to be more efficient and to present our long-term plans, as this seems to be very important. Let me just tell you that, of course, to some extent, we've already done that. For example, last year, when it comes to distribution, we amended our annual plan and we've changed it into a five-year plan so that our partners, but it was also for the sake of our internal work, so that they know what we will be doing in the coming years. This is something that we'll be sharing with our potential partners and contractors so that they can get ready for these tasks. So this transparency and this form of cooperation when it comes to our investments seem to be this very critical part. But also, it's about cooperation with universities, and it's about building partnerships with various institutions and industry bodies. As right now, when all energy groups, but not only, it's also about the defense industry. Given that we want to invest so much, there is this need to have better, much better cooperation. Unfortunately, if everyone's trying to do everything at the same time, it makes this ecosystem too competitive. We can see that this rise in competitiveness might be good. On the other hand, if the market is quite shallow, and it seems that it is the case right now, this might lead to certain restrictions in terms of the supply. I think that's it when it comes to local content. Thank you. Now, just a few words of summary. When it comes to extraction, the biggest challenge will be to maintain the production volume. As we know, in the energy sector, the demand for coal has been falling. But in the short term, especially next year and in the coming years, and in the perspective of the maximum of two, three years, it will be all about the energy price. As right now, it's about the price of the coal, says the speaker. It's lower than the price indices show. This will be a huge challenge for the group and for Bogdanka. When it comes to the distribution of energy, as we have heard, it's about managing renewables. It's about the whole process, about the licenses, about the connections, and obtaining funding. Basically, this huge investment program that is coming and regulation matters. Some of them will be very important. For example, the energy law, and there are a few hot topics right now about the stock market, very controversial discussion about the biomass. It seems that it's something that will be quite stable, but the ENEA Group will be the biggest consumer of biomass, both in the thermal energy and in the systemic energy. It will be a huge regulatory challenge. Of course, the capacity market, what will replace it, what kind of a mechanism will be there for the coming decade, that is, from 2031 - 2040. I will now be talking about the generation. We can see that the results are ours, and margins are lower, which is due to the falling electricity prices. It's about cost optimization. It's about effective management of power plants. It's about resorting to all these mechanisms that will allow us to cover the costs and to earn money. The balancing power market will allow us to also make use of the new services that are available as of June, but also the transition services, thanks to which we will be able to make this segment stronger again. Renewables, as I have already mentioned, right now, our priority is the program, which is about building storage capacity, which will be connected to high and lower voltage system. This one, but also hybrid models with photovoltaic installations installed. We have ambitions set very high for the coming three, four years. It will be a lot of work. We have a dozen of projects, photovoltaic projects, wind projects. We have some ideas for a good transition. I am deeply convinced that in the coming years, there will be a lot of challenges. Trade. This is about regulation, G tariff, many regulations about products, especially for the B2C segment, but also for small customers. Good management of the green energy, good cooperation with trading, and this internal model of cooperation in terms of energy management, energy from renewables. It's also about the management and aggregation. It's about making good use of such assets as warehouses, dispersed energy sources. This is all about cooperation between trading, Enea SA, and Enea Eko. These are huge challenges ahead of us. Just to sum up this conference, we would like to show you two documents that we've been working on. This is firstly the ICT strategy, and the second one is the ESG strategy. Firstly, ICT. Last year, we adopted the strategy until the year 2035. The transition that we discussed back then will not be possible without the digital strategy, as the surroundings have been changing dynamically. We've realized that there was a gap that we would like to fill and address. What we've been doing, Moja Enea, for example, this was launched at the beginning of this year. This got very good reviews, and we are becoming more and more digital. Our processes are becoming more and more complicated. Manual management is not enough, 240,000 sources. We need these wise investments in ICT to support our strategy. We have this objective. The strategy is for three years. This is due to the fact that the surroundings change very rapidly. It doesn't make sense to have a longer strategy. This is kind of a roadmap that will show what we want to change. In three years' time, we want to be a leader in electrical energy and the use of ICT for the purposes of energy transition. We want to simplify processes within the organization, simplify IT solutions that we have. We want to also accelerate implementations. At some point, it was for a few years, but right now, we need to act faster to streamline work and deliver at a much faster pace. We want to be reliable in terms of the operations, but also more secure. There are many examples present in the media, visible in the media on an everyday basis in terms of how important security is. We own this critical infrastructure. We need to have this ICT strategy, and we need to be able to guarantee this physical security at the highest level. There are three pillars of this strategy. I will talk about it very briefly. First pillar, the IT systems that support business, 43 initiatives. They will have an impact on various areas of our business, implementing the CSIRE. This is this automatic exchange of information that will be available on the market until the end of next year. It's about the expansion of SCADA so that we are able to optimize the energy flows within the network from this huge number of sources and to optimize this bidirectional flow of energy. It's about data. It's about various databases. Operational perfection based on the data workflow, for example, we want to be a paperless company, but we also want to use robots and AI technology, as it is used more and more often within our organization. An organization based on data. We have a lot of data. We want to use them effectively. Once we implement CSIRE and remote reading meters, we'll be able to also make use of this data and to create better products for our customers. Thus, we'll be able to exploit the group's potential. Now, effective security and safety management, I will talk about it jointly with the pillar of modern ICT environment, moving towards cloud technology. Combining this traditional storage of data with the cloud storage. Finally, one very important thing. We've been talking about tools, but we also need employees who will be able to use these digital tools. We'll be working on that so that our employees know how to implement these technologies. In three years' time, I think we'll be very much closer to the way that customers in the banking sector are served or in telecom will be better for our customers within these three years. The engagement of our employees will get higher thanks to this new organization model. Marek mentioned already that we'll be talking about ESG because along with the ICT strategy, we've also adopted the ESG strategy. Marek, I think you will agree with me that these both strategies, they are compliant with our business strategy. As in the business strategy, we've mentioned the energy transition being also an effective organization. In these two strategies, ICT and ESG, we are talking specifically at what is going to happen. We had pillars for the ICT, and we have four pillars for the ESG strategies. ENEA has four letters. This is why we have also named these pillars according to these letters. Energy with full respect for the climate. We want to have less emissions. This is, I think, clear to you. The second pillar will be letter N, that is nature for future generations. It's no secret that such companies, such corporations as ours, we have CO2 emissions. But on the other hand, there are many resources that we can make use of and that lead to additional emissions because it's about chemicals, but it's also about the use of resources. So we want our company to be more careful to limit the amount of these emissions and contaminations of water and of nature in general. What we want to do is to be able to have a circular economy. We want to maximize so that we have as few products of this additional combustion as possible. Then biodiversity, which is also very important because we need the environment in order to survive as human species. The third pillar is letter E, effective cooperation for strengthening relations. As part of the local content today, I've mentioned building secure supply chains. But effective cooperation is also about what's happening within our organization, that is how employees work with each other, how they perceive their role within this organization, what their level of engagement is. Another thing that seems to be very important, especially in such an industry as ours, is people's safety. To be honest, we have to clearly say that, this is something that we discuss a lot, what happened, where, why. Of course, it's always good to talk about it, but I think it would be better if we discussed less actual accidents and more about prevention and making sure that people can work in a safe environment. The last pillar, that is letter A, an active partner for the community. Here we are specifically involved in a number of programs, responsible business and sponsoring programs. We also want to be a partner working with the local authorities where we're present, who will be working in shaping the reality for our customers and our staff living. For each of the pillars, we have identified four goals that we will be implementing. The goals and the pillars have their initiatives over 2024, initiatives, in fact, that will be implemented as part of the program so that we can accomplish these goals. All the goals are linked to our business strategy. They are measured, and they will be measured during implementation. Only by measuring can you find out whether you are implementing what you wanted or not. Out of the 24 KPIs, let me show you eight as examples. These are elements related to staff engagement, share of green energy in retail sales. It's an issue of the supply chain being a responsible partner for local suppliers. But we also want to increase our impact in terms of availability of our CSR activities and sponsoring activities for our beneficiaries. And some key environmental issues. They're not the only ones. It's a repeat of our strategy, as you recall, as part of our emission indicator. We assume that the reduction will be significant. In the ESG strategy, it is repeated. We have added detail in terms of pollution and circular economy. The last indicator is the operator, operator who participates very intensively, not in the transition as such, but operator is supporting the ecosystem by providing more opportunities for connection. This is supportive of renewable energy. To summarize ESG issues, the ESG strategy that we have been building is very highly correlated with our business strategy. It was based on regulation, but also on what our customers are saying, what the sector is saying. We also listen to our staff because our staff have also been involved in building this strategy, filling in the SWOT analysis that is a prerequisite for determining what is a critical issue. Now what remains is for us to implement it all. Thank you very much for presenting and discussing our presentation. During the last results conference dedicated to the first half of 2025, we showed you one of the tariffs of ENEA Operator. It was the active tariff. Today, we'd like to show you the other one, Pewna, the reliable tariff for those who are. [Foreign language] Proceed to the Q&A part. You have two microphones available in the room. Please introduce yourselves and tell us what your organization is. Wojciech Jakóbik, BiznesAlert.pl or Podcast Energy Drink. Two things. Pierwsza to ten WACC, W-A-C-C, and a calculation of costs that result from your investments. We have a political discussion ongoing on whether energy prices should be lowered by stripping companies of excessive revenues. Do you see such excessive revenues the source of your investments? What is your take on these ideas to take resources from distribution? The second question on the prices of energy in the context of this tariff offer and the active offer. What is your take on the price of energy? VP Krysta in the autumn talked about it being too early. Maybe now in November we can learn more about it. About distribution first. Whether these are excessive revenues or profits. What's happening in distribution, how much we're making, has been defined in the KET. It's a contract between distribution companies and the regulator. It was an idea to fund a speedy transition of assets. I pointed it out during the conference that the way distributors operate has changed considerably. In the past, we were delivering energy that was coming from PSE to our customers, and now more and more often we manage the microsystems at the bottom of the network because the energy is generated in 200,000 places, and Dalida talked about it maybe two times more very soon. We have plenty of sources that we have to manage in our area, and you cannot do it for free. We are, of course, as you see, looking for different solutions that help us manage without investment so that we could use investments. These are the two tariffs, active and Pewna or eco, that we have implemented in distribution, or the possibility to exceed power. But to a large extent, the reconfiguration of the system into a bidirectional system requires investment. We have made an agreement with URE that we will have slightly higher regulated revenues, but all this money will be spent on investments in the network. As you can see, this is happening. We have increased investment outlays. Thanks to the WACC, it's not the only thing. It's one of a number of elements of the distribution rate. The distribution rate is composed of a number of issues. Return on investment on capital is up to 23%. The return on equity is not the only thing that dictates the rates for retail customers. We are delivering on KET. We are implementing investments. We're building market. These are not investments that you contract in January and you execute in February. We are doing these plans in a longer time frame. We have contracted next year almost completely, and this influences our suppliers. This is a long-term venture that we are currently implementing. Concluding, we're not eating the money. We are investing money in the transition. There's a queue of companies waiting for the transition. We have 8,000 MW connected, six and something we pledged to connect, and more sources are waiting for connection conditions. It matters for the energy transition what we're doing. To refer to energy sales prices and the results on trade, let me reiterate what I said in September. 5%- 6% of a EBIT margin seems to be a very balanced level, adequate and decent for this type of operation. These are not two-digit margins or margins that would certify that there's a very lucrative business. The level of margins of 5%- 6% for the entire portfolio is the right level. In terms of pricing offers for B2B, you can monitor them. We know exactly at what prices customers are contracting. Right now, it's a bit more expensive than two months ago because energy is 450 złoty we're delivering next year. For the household segment and the G tariff, let me put it this way. Ladies and gentlemen, out of respect for this subject, out of respect for you, journalists, analysts, to maintain professional communication, I will not comment on the G tariff. Since the 31st of October, we are in the tariff process. The process will end in three weeks at the latest. We are in touch with URE. We will certainly be talking to them, and together we will be trying to make sure that the price for next year is right. I would not like to speculate how much I would expect, what it should be like, what are the prospects. For the good of the tariff process, I would like us to leave the subject alone until the 15th of December. [Foreign language]. Hello, thank you very much. To add to the question of my colleague during the conference at the Chancellery of the President, there were two arguments for lowering the WACC. Number one is inflow of very cheap money from the RRP, and the second issue was the dividends, PLN 900 million in your case and two times more in your peers. Could you refer to these arguments of the Chancellery of the President? And question number two, maybe let's start with question number one. About the dividend, it was over PLN 200 million, the dividend that we paid last year. Right, that was the case. From the point of view of distribution, well, the comment is the same as during the entire conference, the results conference. The distribution model has been in operation in Poland for many years. A few years ago, it worked in such a way that it was using macroeconomic parameters. So the idea is nothing new now. There were different ways of regulating distribution in the past, regulating it in time. We used to have a cost-based model that was prepared for URE for all companies, and it defined what costs we are allowed to have, and this is being used. Also for WACC, there was a model of calculation of the rate. KET, at some point of view, departed from that principle and said that we are giving more resources for energy groups to be able to fund investments in distribution. But there's always a discussion. Return on equity accounts for 20% of the distribution rate and on average 10% of the cost of energy for the customer and energy plus distribution. I'm talking about the average for all customer groups. So a question: will a change contribute to any major change in the bill? It consists of two elements. Number one is the regulated value of assets, and that comes from investments. Depending on how much we invest in distribution, the KPI will be changing. The second element is WACC. I'd like to point out that this is not a holy grail that will address the issue of pricing for customers. Transition has to cost money. At the same time, customers need to pay as little as possible. That matters for both customers and for the economy at large. We need to look for solutions. The issue of cheap loans is a solution, and it will help us, but I talked about it before. We're not going to get this money, the PLN 10 billion this year. It will be spread over many years. We are happy to talk to URE to adjust the WACC. That's why you have this money to mitigate the impact of the transition on customers. At the same time, when we are using resources in the form of subsidies, that's also a mitigating element for the customer. But without these elements, I would like to point out that the old calculation of WACC that we've had for many years, it was based on macroeconomic parameters, and that is the minimum that we should be using. Because we, as a group, after all, have to make investment decisions, and we should not be investing below our cost of capital. The old calculation of WACC was within the brackets. Distribution carries lower risks. It is regulated. But the return level from this point of view was adequate. Not too big. It did not really cover additional risks. But it will matter if we go back to the old calculation. It will matter for the level of our investments because we will have to limit our investments as a result. There are also ongoing discussions because energy groups, if you look at the entire group, you see this is one of our key parameters. EBITDA and net debt to EBITDA are the two indicators. You cannot trick the system. If we have lower EBITDA, then the investment capacity of the group is lower. We are in the process of transition of mines, conventional generation, distribution. It's a body that has to process it all to produce the ultimate price. All this conversation impacts on our behavior. Thank you. The second question is about Połaniec and the public, the bid for the block as there were no offers. What now about this investment? Yes, indeed. We've tried twice. There were no offers. Right now, we'll try to have more direct talks. As far as we know from the market, it's not about contractors not being ready to undertake the risk. It's about manufacturers of the equipment because they have sold everything for years in advance. As you remember, this particular auction for Połaniec, the auction that will be now taking place in December, it is for the year 2030. Turbines and units are to be delivered in 2028. They should be installed and operational for the year 2030. It seems to be a problem. We'll be looking for new solutions. We are optimistic, but still, we are getting ready for everything. What kind of scenarios are you taking into account? That there will be no offers. Now please, Mr. Sawicki. I'm sorry if I can just reply to the question about the dividend very briefly. Just remember that in distribution, we spend the same amount on investments like we earn on EBITDA. In distribution, we have to pay taxes. The dividend is a way to settle for the group because we have this mechanism. We have this pool. We have the group's debt. This is how the group functions. But it doesn't mean that we take any money away from distribution. In the light of our strategy until 2035, the distribution will spend more money than it will earn. Let me just underline that. Good morning, Bartłomiej Sawicki from Rzeczpospolita. I have four questions. I will start with the shortest one. Please answer something to clarify. Like in Kozienice, for example, are we taking this solution into account for Połaniec? To do the same thing as for Kozienice? Yes, the answer is yes. All right. Now I just would like to get back. Apologies, Mr. President, but an additional question about tariffs. Because at the conference, you have mentioned that this price has been on the rise. It's 450 złotych. If you don't have this 500 contract for, is that possible that it will be 500? Because President Lelątko has mentioned that WACC does not weigh 20%, does weigh 20%. But that it's not the most important element. What is the biggest problem in your opinion? This distribution tariff, which is getting out of control, will weigh more than the energy cost itself. A question to Mr. Kinelski. For a few months, the energy companies were very optimistic. The perspectives were very good. It seems that there are some blows coming because Minister Motyka on controlling distribution tariff in the cabinet. Next year at G11, there will be losses probably. These good times on the stock exchange for energy companies is over, or will that continue? Maybe I will start with prices, electrical energy prices. Please remember that the contractation for 2026 has been ongoing for over one year now. As of now, the portfolio has been contracted in 90%. Of course, the prices that we have right now, $450 for this basic strand, it was $420, $30 before. It has some influence, but not a lot. Because after 450, 445, at this price, we did buy some energy for the G tariff, but the contracting of this portfolio has been going on for a long time. This is something we've been discussing for over one year. Whether 500 will be enough? I cannot answer this question. I don't want to fuel speculation. I don't want right now to have a public discussion about the topic that matters so much to our business. This process of preparing tariffs that will last until the 15th of December, during this time, I don't want to discuss that. The portfolio has been closed, concluded in 90%. The main question is about the profile cost, the balancing cost, how will prosumers behave? In Enea's portfolio, 3.8 terawatt hours, which to some extent consists of products, and the tariff is the main driver of this portfolio. These are the most important matters. There can be big differences reaching up to a few dozen millions. The second question, what is the biggest problem? Maybe not a problem, but it's about challenges. It's a huge transition, unheard of. The market has been changing from the traditional one to a dispersed one based on renewables. As you can see, these renewables have become visible: PV installations, solar panels, these warehouses will be—there will be more and more of them, wind farms onshore, offshore. We are in the middle of a change, but at the same time, there is still this old system functioning. It's an overlap and also a transitional period between the old system and the new one. Every transition costs money, and hence the discussion, because everyone's on the lookout for the most optimal solutions from the perspective of the money that the customers will pay, but also from the perspective of the optimization of this transition. This is my take on that. The last question. I don't think there are blows coming for the energy sector. The Ministry of Energy is responsible for energy law and for all the acts in the energy industry. Such teams are appointed, and they need to follow what's happening on the market. We are completely ready. As you can see, we are ready to implement full diversification of our company. It's not that one area or a different one will be the key one. I think this was the case in the past. Sometimes it was good for trade, for distribution. Sometimes it was worse for distribution. At some point, we didn't have money in distribution to do cutting in forests because we had to limit the costs. Right now, we have even too much money, basically. But of course, it's temporary. As there are long queues of customers who want to get connected to the network, who have received these connection conditions. But it will all cost money. Also, digitization costs money. Times change for all these segments in which we are active. But I would like to remind you and investors and everyone that the energy sector is not where you can make a lot of money in a short time. It's about long-term projects and investments. It's not, of course, any kind of consulting that I'm providing right now. I'm not a specialist. It's not a piece of advice. But you know, we go to a casino if you want to lose or earn money quickly. We are in a different sector. This is, I think, what investors value. These investors who have been with us, this is what they appreciate because we try to make it secure for the coming years. This is why we have the business strategy, the ICT and ESG strategy to brace ourselves for the future, for the future when one of the segments faces some challenges. All right. Ireneusz Chojnacki, last question, please. Good morning. Getting back to the distribution. The development plan for 2026-2031, this is what you discussed on one of the slides. Is that ongoing? Will that have any impact on the tariff in the next year? If yes, what WACC are we talking about? The second question, yes, you said that you sold your shares in the special purpose vehicle in this company that was creating these artificial islands. These shares have been sold. Could you please comment on that? Does that mean that the group has resigned from this kind of investment, or is there some company of yours where you have shares that can invest in that? Are you simply resigning from offshore? No, I think it was not precise enough. We've withdrawn our shares from the company which has no licenses. Four and six, for that, there was no license. In five, we still have some shares. The project is ongoing. We are still interested in it, just to be precise. We are withdrawing from something that does not bode well for the coming decade. When it comes to the distribution, we are still in this period preparing the tariff. I don't want to go into the details. It's the perspective as of 2027. As I have mentioned, we are being very serious about our cash obligations. This is how we contract investments. Last year, we made it too late. Then it's too expensive. The market is not ready. You invest in November and December. Next year, we have around 1.4 billion investment outlays on the things that we are obliged to do by law. Connecting customers, connecting sources where we have agreements signed at the remote reading meters, 400 million złotych. This is simply we are obliged by law to do that. It's not our decision. There are many initiatives going on. CSIRE, for example, it's set out in the legal act. We have to do that. The rest, 3 billion złotych, it's about the improvement, cabling, improvement of the situation of the grid. For example, there are some areas where you have stronger wind and the network is out. If we get new cabling, then we at some point will not have to spend money on repairing these networks. Because in comparison to Western Europe, we are still behind. As we've heard right now, we have the money to do that, but it's not enough. We could change more in distribution, but we are very much aware that what we've been doing translates into tariffs. When we prepare this development plan, we are wondering how will that translate into the rates for our customers. This is what we've been doing all the time. If we have WACC higher in the coming years, then we will have a different development plan as of 2027. These will be the consequences. All right. Now the very last question, please. There was the slide about local content. The first question is about the way that you will assess whether you have really done that. Is that at some level right now and something that you want to achieve until the end of the strategy? Secondly, do you have any plan also for the bids in the future to invite companies from abroad? Yes. We have an index. We have a goal to achieve. But as we've just launched the program, it's not final yet. We don't know what the precise ambition level is right now. When it comes to the exclusions, I would like to maybe talk about it from the other way around. I want us to have local contractors, to have this share of local contractors that will be big enough to exclude these contractors from abroad. Right now, according to the law, we don't really need in the procurement procedure, we don't need to set out anything in there. It's by law. If we were to allow third parties, this is something that we would have to put specifically in the procurement documentation so to allow contractors from third countries that have an agreement with the EU. One more thing is that there are many products produced in the EU that have components from third countries. This is something that probably will have to be regulated in the future. Because, for example, we produce something in the EU or in Poland, and then we import a lot of components. This is what you can find inside these products. So it's for the European Commission, but also for our legislators to prepare such regulations. It's about GPA group. It's not about the countries from the EU. We have 16, 17 countries such as the U.S., Korea, Hong Kong, Japan, and some smaller countries. They can be allowed. As the president has said, everything depends on whether this particular technology or part of this technology that constitutes the bigger part will be available or whether you have to reach outside. Yes, this is why I've said that, based on our investment plans, we want to hire local businesses and local companies so that they can get prepared so that they can offer what we need. We don't need to look for it in the world. Yes, we've organized a supplier day. We had it at the beginning of the year. This is when we present the details of our timetables. We show that to suppliers, contractors to the market as such so that they can include that into their timetables. Because we do realize that we will have six, seven, nine gas units being built and other gas investments will be made. Thank you so much, both for the presentation and for the answers of journalists and analysts. Thank you for coming for the conference of the results. Now I would like you to for another conference for the year 2025. Thank you.