Izba Rozliczeniowa Giełd Towarowych S.A. The Settlement Report Guide in Condico Clearing Station

Izba Rozliczeniowa Giełd Towarowych S.A. Trade History Slide : 2 In the section „Trade History” any user is able to preview and modify the current transactions as well as to preview historical transactions. The preview function enables filtering by: Account, Instrument, User, Market as well as Trade Status. To make any modification – highlight the transaction and then select demanded operation in the field „Trade Management Operations”. An user with „extended” access is able to move or divide the transaction or to edit description of the transaction.

Izba Rozliczeniowa Giełd Towarowych S.A. Account Positions Slide: 3 Under the bookmark „Account Positions” an user is able to preview its all positions, which are in its possession on given day – in breakdown into Market, Account and Instrument.

Izba Rozliczeniowa Giełd Towarowych S.A. Slide: 4 Delivery Positions The bookmark „Delivery Positions” provides preview of the user’s positions in all Instruments, which – depending to date range chosen by the user – may be in execution, in delivery or to be executed in the future.

Izba Rozliczeniowa Giełd Towarowych S.A. Slide: 5 Initial margin – Position Netting The Initial Margin for given Delivery Period Bucket = - (Lot Size x |Net Position| x Clearing Price x Valuation Parameter) - xxx

Izba Rozliczeniowa Giełd Towarowych S.A. Initial margin – Position Netting Slide: 6 Initial Margin is calculated for the House’s Member that acts on CDMe and CDMg, covers price changes at moment of closing positions, is calculated for compensated positions being in delivery during given period, is identical for both parties of the transaction, takes negative values or is equal to 0, is calculated basing on current clearing price calculated by the Risk Management Department of WCCH on the grounds of prices being under quotation on POLPX (DAM and CDM), risk parameter, published by WCCH and reflecting current variability of the market. The Initial Margins are calculated according to the algorithm below: Where: Dw – the initial margin value [zloty] LKi – amount of electricity/gas that has not been delivered and that falls to the purchase contracts for the i th delivery period [MWh], LSi – amount of electricity/gas that has not been delivered and that falls to the sale contracts for the i th delivery period [MWh], Kri – the clearing price for the i th delivery period, i – the delivery period, Pi – the risk parameter for the last day of the i th delivery period, N - number of forward contracts delivery periods. The clearing prices for the Initial Margin and the Variation Margin are updated each day after 2:30 p.m.. In addition, on working days the clearing prices are updated at 11:00 a.m. and 1:00 p.m. (intraday).

Izba Rozliczeniowa Giełd Towarowych S.A. Slide: 7 Variation Margin – Position Netting The Variation Margin for given Delivery Period Bucket = [Lot Size x Bought Volume x (Clearing Price – WABP)] + [Lot Size x Sold Volume x (WASP – Clearing Price)] X X Clearing Price - WABP X WASP - Clearing Price X +

Izba Rozliczeniowa Giełd Towarowych S.A. Variation Margin – Position Netting Slide: 8 Variation Margin is calculated for the House’s Member that acts on CDMe and CDMg, responds to current market adjustment, can take positive or negative values, depending on variability of the clearing price, is calculated basing on current clearing prices, purchase transaction volume and average weighted purchase prices of given Member, sale transaction volume and average weighted sale prices of given Member The Variation Margins are calculated according to the algorithm below: Where: Du – the variation margin value [zloty] LKi – amount of electricity/gas that has not been delivered and that falls to the purchase contracts for the i th delivery period [MWh], LSi – amount of electricity/gas that has not been delivered and that falls to the sale contracts for the i th delivery period [MWh], Kri – the clearing price for the i th delivery period, Kki – average weighed price of purchase Transactions of the contracts for the i th delivery period [zloty/MWh] Ksi – average weighed price of sale Transactions of the contracts for the i th delivery period [zloty/MWh] i – the delivery period, N - number of forward contracts delivery periods. The detailed methodology of determining the collateral margins (initial- and variation margins) has been described in the document title „Detailed Clearing Rules for the Markets being run by POLPX”, available on WCCH’s web page.

Izba Rozliczeniowa Giełd Towarowych S.A. Slide: 9 Settlement Margin Per Market

Izba Rozliczeniowa Giełd Towarowych S.A. 1)On working days as well as on idle days, at about 2:45 p.m., values of all the transactions being cleared on given day are visible under the bookmark „Settlement Margin Per Market” as well as under the bookmark „Margin Summary - Exchange in the column „Settlement Margin”. 2)The settlement margin is reckoned on idle days for all spot markets (IDM, IDMg, DAM, DAMg). The electronic invoice, covering the transactions entered into on those days, is issued on the closest working day (thus the values are transferred to the column „Billing Margin” under the bookmark „Margin Summary – Exchange”. 3)On working days, after issuing the electronic invoices in the system, values of the transactions, which have been entered into on: -IDM and IDMg for transactions resulting in delivery of N day (where N is the day, the current clearing process is carried out), on Mondays additionally for transactions resulting in delivery on N-2 day as well as N-1 day; -DAM, DAMg, CDMe, CDMg with delivery on N+1 day, and on Mondays in addition for transactions with delivery on N-1 day as well as N day; -from Monday to Thursday for Property Rights Market - PRM and PRMee (delivery on N day) -on Monday and on Thursday for Emission Allowance Market - EAM (delivery on N day) are visible under the bookmark „Margin Summary – Exchange” in the column „Billing Margin”. 4) On working days, after issuing electronic invoices, in the column „Settlement Margin” under the bookmark „Margin Summary - Exchange” there are values of transactions for: -DAM, resulting in delivery on N+2 day -IDM, resulting in delivery on N+1 day -DAMg, resulting in delivery on N+2 day and N+3 day, if the transactions have been entered into on Thursday -DAMg, resulting in delivery on N+2 day, if the transactions have been entered into on Friday -IDMg, resulting in delivery on N+1 day 5) After sending the payment orders to the HMPB, in case of all the Members, which are not Brokerage Houses / Commodity Brokerage Houses acting in behalf of clients, the values in the column „Billing Margin” under the bookmark „Margin Summary – Exchange” are changed to „0”. Settlement Margin and Billing Margin Slide: 10

Izba Rozliczeniowa Giełd Towarowych S.A. Margin Summary Slide:

Izba Rozliczeniowa Giełd Towarowych S.A. Margin Summary the activity on own account Slide: 12 Daily Operational Limit Collaterals Pledged = (Pecuniary resources in the Transaction Margins control account – Delivery Margin) + Recognized non-monetary collaterals for Transaction Limit + |Net Initial Margin + Net Variation Margin| Total Margin = (Net Initial Margin + Net Variation Margin) + Settlement Margin + Billing Margin Other Guarantees = In case when Net Initial Margin + Net Variation Margin (for electricity and gas) < 0* *concerns House’s Members, which are not Brokerage Houses/Commodity Brokerage Houses acting in behalf of clients

Izba Rozliczeniowa Giełd Towarowych S.A. Margin Summary the activity on own account Slide: 13 In case when Net Initial Margin + Net Variation Margin (for electricity and gas) > 0* Daily Operational Limit Collaterals Pledged = (Pecuniary resources in the Transaction Margins control account – Delivery Margin) + Recognized non-monetary collaterals for Transaction Limits Total Margin = (Net Initial Margin + Net Variation Margin) + Settlement Margin + Billing Margin Other Guarantees = - (Net Initial Margin + Net Variation Margin) + + * concerns House’s Members, which are not Brokerage Houses/Commodity Brokerage Houses acting in behalf of clients +

Izba Rozliczeniowa Giełd Towarowych S.A. Margin Summary the activity on clients’ account Slide: 14 Daily Operational Limit Collaterals Pledged = Pecuniary resources in the clearing account of BH/CBH kept in HMPB + Recognized non-monetary collaterals for Collateral Margins Total Margin = (Net Initial Margin + Net Variation Margin) + Settlement Margin + Billing Margin Other Guarantees = 0 + In case when Net Initial Margin + Net Variation Margin (for electricity and gas) for clients < 0* * concerns House’s Members, which are Brokerage Houses/Commodity Brokerage Houses acting in behalf of clients + +

Izba Rozliczeniowa Giełd Towarowych S.A. Margin Summary the activity on clients’ account Slide: 15 In case when Net Initial Margin + Net Variation Margin (for electricity and gas) for clients > 0* Daily Operational Limit Collaterals Pledged = Pecuniary resources in the clearing account of BH/CBH kept in HMPB Total Margin = (Net Initial Margin + Net Variation Margin) + Settlement Margin + Billing Margin Other Guarantees = - (Net Inititial Margin + Net Variation Margin) + * concerns House’s Members, which are Brokerage Houses/Commodity Brokerage Houses acting in behalf of clients + +

Izba Rozliczeniowa Giełd Towarowych S.A. Hours of updating columns in CCS* Slide: 16 * the hours specified above are of demonstrative nature only and they may vary depending on day Updating on working- and idle days: Before issuing electronic invoices – 2:45 p.m Updating on working days: After issuing electronic invoices – 3:05 p.m. Updating on working days: 1. For Brokerage Houses /Commodity Brokerage Houses acting in behalf of clients (setting values to zero) – 2:50pm 2. After issuing electronic invoices – 3:05 p.m 3. For House’s Members acting in own behalf (setting values to zero) – 5:05.p.m. Updating on working days: 2:35 p.m. Updating on idle days: 2:35p.m. Updating on working days: 5:25 p.m. Updating on idle days: 3:10 p.m. Updating on working days: 2:50 p.m. Updating on idle days: 2:45 p.m. Updating on working days: 6:00.p.m. Updating on idle days: 3:20 p.m.

Izba Rozliczeniowa Giełd Towarowych S.A. Slide: 17 Daily settlement Under the bookmark „Daily Settlement” the user is able to preview values of the transactions, which have been cleared on given Market with the delivery date falling on selected day.

Izba Rozliczeniowa Giełd Towarowych S.A. Slide: 18 Clearing Account Settlement Summary The bookmark „Clearing Account Settlement Summary” provides preview of value of the transactions, which have been cleared on given Market within the delivery date range chosen by the user. In addition there is opportunity to filter the transactions by transaction type (All, Sale, Buy) as well as Account.

Izba Rozliczeniowa Giełd Towarowych S.A. Slide: 19 Invoice The bookmark „Invoice” allows for preview of electronic invoices within the selected range of delivery dates. The invoices can be sorted by Invoice Group, Account as well as Status: Cancelled,, Invoiced, Paid. All the invoices with „Invoiced” status are placed in the column „Billing Margin” under the bookmark „Margin Summary – Exchange”, updated on working days at about 3:05 p.m. At the same time the invoices with „Invoiced” status are supplemented in columns „Amount” and „Tax Amount” under the bookmark „Invoice”. Values in the column „Billing Margin” under the bookmark „Margin Summary Exchange” are sent to HMPB in form of payment orders. After sending the payment orders to the banks, in case of all the Members, which are not Brokerage Houses acting in behalf of clients, at about 5:05 p.m., the invoice status is changed to „Paid”, what results in change of the value in the column „Billing Margin” to „0”. At the same time the invoices with „Paid” status are supplemented in the column „Paid Amount” and „Paid Tax Amount” under the bookmark „Invoice” with values opposite to the values in column „Amount” and „Tax Amount”.

Izba Rozliczeniowa Giełd Towarowych S.A. Slide: 20 Fees Under the bookmark „Fees” there are visible commission invoices for volume of transactions, which have been entered into on given markets. Scope of filtering and statuses of invoices is the same as in case of the bookmark „Invoice”. The commission invoices are issued on each Sunday, the last day of given month or after transfer of positions. In case of issuing the commission invoices on Sunday in the week that does not encompass the last day of given month, the invoices are issued for the period from the last Monday till Sunday, inclusive. In case of issuing the commission invoices on the last day of month (that is not Sunday), the invoices are issued for the period from the last Monday till the last day of the month, inclusive. In case of issuing the commission invoices on Sunday in the week encompassing the last day of the month, the invoices are issued for the period from the first day of the month till Sunday, inclusive.

Izba Rozliczeniowa Giełd Towarowych S.A. Slide: 21 Daily Physical Delivery Agent Positions Under the bookmark „Daily Physical Delivery Agent Positions” the user has opportunity to preview daily delivery report for individual Accounts and Delivery Points.

Izba Rozliczeniowa Giełd Towarowych S.A. Slide: 22 Hourly Physical Delivery Agent Positions Under the bookmark „Hourly Physical Delivery Agent Positions” the user has opportunity to preview delivery reports for individual Accounts and Delivery Points in breakdown into delivery hours.

Izba Rozliczeniowa Giełd Towarowych S.A. Scheduling Slide: 23 Under the bookmarks „Scheduling” the user has opportunity to transfer the delivery volume between the scheduling units. „Scheduling Net” for all the scheduling units for individual hours has to be equal to the value of „Net Requirement”.

Izba Rozliczeniowa Giełd Towarowych S.A. Thank you for attention