Adoption of the PGE Group Efficiency Improvement Programme for 2012-2016
2/2012
10.01.2012 22:05
Art. 56 section 1 p. 1 of Act on Public Offering – confidential information
Contents of the report
The Management Board of PGE Polska Grupa Energetyczna S.A. (“PGE”) informs that the PGE Group Efficiency Improvement Programme for 2012-2016 (the “Programme”) was approved on January 10, 2012 by the Supervisory Board of PGE.
Total expected sustainable result of the Programme on consolidated EBIT of the PGE Capital Group is to amount approximately PLN 1.53 billion p.a. starting from 2016, as compared to 2010 (a base year for the Programme).
The Programme will be implemented in period 2012-2016 and will consist of two elements: cost reduction programme in PGE Group and increase of revenues from existing activities. Initiatives will be implemented gradually, starting from 2012, to reach the ultimate effect in 2016.
As compared to 2010, the cost-related initiatives will provide for approximately PLN 987 million of savings in 2016 and in subsequent years. The initiatives related to cost reduction include:
1. Increase of organizational structure effectiveness
2. Optimization of repair and maintenance costs
3. Increase of effectiveness of power consumption and reduced network losses
4. Purchases centralization
Revenues-related initiatives, as compared to 2010, will provide for additional revenues of approximately PLN 541 million in 2016 and in subsequent years. Initiatives related to increase of revenues include:
1. Increase of power generation from biomass
2. Increase of sales effectiveness and improvement of customer care services
The costs of the Programme will be carried mostly in 2012-2013. As of 2014, the Programme will have a positive impact on financial results, reaching its full potential in 2016.
Further information concerning the Programme are presented in the attached document.
Publication of this confidential information was delayed pursuant to Art. 57 sec. 1 of Act on public offering, conditions governing the introduction of financial instruments to organised trading, and public companies (Dziennik Ustaw of 2009, no 185 item 1439).
Legal ground: Art. 56 section 1 point 1 of the Act on public offering, conditions governing the introduction of financial instruments to organised trading, and public companies (Dziennik Ustaw of 2009, no 185 item 1439).
Total expected sustainable result of the Programme on consolidated EBIT of the PGE Capital Group is to amount approximately PLN 1.53 billion p.a. starting from 2016, as compared to 2010 (a base year for the Programme).
The Programme will be implemented in period 2012-2016 and will consist of two elements: cost reduction programme in PGE Group and increase of revenues from existing activities. Initiatives will be implemented gradually, starting from 2012, to reach the ultimate effect in 2016.
As compared to 2010, the cost-related initiatives will provide for approximately PLN 987 million of savings in 2016 and in subsequent years. The initiatives related to cost reduction include:
1. Increase of organizational structure effectiveness
2. Optimization of repair and maintenance costs
3. Increase of effectiveness of power consumption and reduced network losses
4. Purchases centralization
Revenues-related initiatives, as compared to 2010, will provide for additional revenues of approximately PLN 541 million in 2016 and in subsequent years. Initiatives related to increase of revenues include:
1. Increase of power generation from biomass
2. Increase of sales effectiveness and improvement of customer care services
The costs of the Programme will be carried mostly in 2012-2013. As of 2014, the Programme will have a positive impact on financial results, reaching its full potential in 2016.
Further information concerning the Programme are presented in the attached document.
Publication of this confidential information was delayed pursuant to Art. 57 sec. 1 of Act on public offering, conditions governing the introduction of financial instruments to organised trading, and public companies (Dziennik Ustaw of 2009, no 185 item 1439).
Legal ground: Art. 56 section 1 point 1 of the Act on public offering, conditions governing the introduction of financial instruments to organised trading, and public companies (Dziennik Ustaw of 2009, no 185 item 1439).
Signatures of persons representing the company
| Date | Name | Position and function |
|---|---|---|
| 2012-01-10 23:05:36 | Paweł Skowroński | Vice-President of the Management Board |
| 2012-01-10 23:05:36 | Wojciech Ostrowski | Vice-President of the Management Board |