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"While everyone else is struggling to stay afloat, we know how to win the future"

LOTOS is one of the most advanced and rapidly growing oil companies in the region. In terms of revenue it ranks second in Poland, and is the sixth largest company in Central and Eastern Europe.

The top priority defined in our growth strategy for 2011-2015 is to focus on the core businesses - hydrocarbon exploration and production, deep crude processing and trade in petroleum products.

The 2013-2015 Effective and Rising Programme provides for internal restructuring of Grupa LOTOS

Past experience shows that the most effective companies are those which have the capacity to quickly react to changes in the marketplace and specialise in specific business areas. This business model allows them to better focus on their objectives and learn the skills which make them stand out from their competitors. These principles have been the key driver of LOTOS's operations.

Grupa LOTOS internal restructuring is designed to ensure faster implementation of its strategy. The restructuring is focused on the core businesses, reducing the engagement of management personnel in support activities, and simplifying the Group's organisational structure. Implementation of the 2013-2015 Effective and Rising Programme means that non-core subsidiaries will need to seek an investor to unlock their investment potential and facilitate access to new financing sources.

The 2013-2015 Effective and Rising Programme supports business expansion

Focus on gaining access to new hydrocarbon deposits and improving production efficiency at those currently operated ensures that the Group maintains its competitive edge. LOTOS has consistently pursued its investment and development programme. Work is underway, among other things, to launch commercial production from the B8 field in the Baltic Sea, which will be brought on stream in 2015. Its production potential stands at 3.5 million tonnes of crude oil.

LOTOS Petrobaltic continues production from the B3 field, which it expects to produce approximately 100,000 tonnes of crude per annum. Work is also underway to develop the B4 and B6 gas fields, both of which have a production potential of 4 billion cubic metres of natural gas.

One new development is our work with PGNiG on exploration and production of crude oil and natural gas from conventional and unconventional onshore deposits, as well as establishment of a commercial relationship.

Higher production triggers rapid expansion of the service station network, particularly in the economy segment. It is planned for the LOTOS Optima network to include more than 260 sites by 2015, with another 18 LOTOS sites for the Motorway Service Area network. The rapid growth of the service station chain will help the Group achieve its strategic target of a 10% share in the retail fuel market.

It is worth noting that in 2012 the LOTOS brand was already valued at more than PLN 1bn, ranking it in the top ten most valuable Polish brands.

We set ourselves ambitious goals, which include achieving the best production standards and maintaining a strong competitive position among the European refineries. We strive to ensure optimum use of assets and to improve the conversion ratio thanks to deep crude processing. Environmental protection and stable operation of production and auxiliary units are our priorities, which will not only ensure continued business success but also, most importantly, the safety of our employees.

LOTOS has been evolving dynamically. We are preparing to begin the delayed coking unit project, which in a few years will generate additional volumes of motor fuels.

Further, LOTOS signed an agreement with Grupa Azoty to complete a preliminary feasibility study in 2013 for two proposed petrochemical projects – a steam cracker and polyethylene production unit, and an aromatics complex. Positive results from the study will pave the way for design work on the selected solution, which may qualify LOTOS and Grupa Azoty as beneficiaries of the newly established Polish Investments Programme. Part of the new units would be located at the Gdańsk refinery. 

LOTOS is a socially responsible company and the scope of our operations extends far beyond the company's business. We are well aware of our impact on the economy, local communities and natural environment. When making our business decisions, we take into consideration the interests of all our stakeholders.

We are one of the largest companies in Poland, providing jobs to thousands of people and contributing significant amounts of tax. Our role confers upon us a duty of care for our business performance and an obligation to ensure its long-term growth.

The 2013-2015 Effective and Rising Programme is yet another stage in our development that guarantees even stronger business effectiveness and operational efficiency. Drawing on our key competence areas we focus on core business, striving to simplify the Group's structure and release funds that may be used to achieve our objectives.