Strategic Investor
According to an ordinance of the Prime Minister (document: Dz.U. 2017 poz. 95) , PGE Polska Grupa Energetyczna S.A. is included in the list of enterprises of special significance to the national economy. According to the act on rules for managing state property as of December 16, 2016 (document: Dz.U. 2016 poz. 2259), PGE shares may not be sold by the State Treasury. This is a stabilising factor for the shareholding structure.

The State Treasury is a shareholding with special control rights
The Company's articles of association provide special rights for the State Treasury in the following scope:

• motion to convene a General Meeting,
• influence over the General Meeting agenda,
• appointment of a Supervisory Board member through a written statement, with no General Meeting resolution needed.

Free float

According to the laws in Poland (Act on trade as of July 29, 2005: Dz.U. 2005 nr 183 poz. 1538), shareholder identities are publicly disclosed when the 5% threshold is exceeded. If a shareholder has less than a 5% stake, there is no requirement to disclose identity.

This means that precise identification of the shareholding structure is not possible. Corporate actions are of little help - participation in General Meetings is voluntary, whilst dividends are paid out through the National Depository of Securities and brokerage firms.

In practice, as a listed company, we treat every investor as a potential shareholder.
According to regulations and best practices, we ensure that all investors have equal access to information.

On December 31, 2016, open-ended pension funds held a total of 226 million shares of PGE (12.1%). According to data from December, NN had the largest stake, with 3.2%, followed by Aviva with 2.3%.

In aggregate, domestic pension funds and the State Treasury held less than 70%.
The remaining 30% was divided between retail investors (presumably mostly domestic) and institutional investors - TFI investment funds and their foreign equivalents (mutual funds). Shares of PGE Polska Grupa Energetyczna are included in stock market indexes, such as WIG20 - which is why PGE Group's shareholding structure also includes ETF funds, which replicate the index composition in their portfolios.

Transparency and trust

The main objectives of PGE's information policy are transparency and cooperation based on mutual trust. We believe that a transparent information policy lets us build value for all of the Company's shareholders.

Long distance

Investors have different investment strategic and investment horizons. Some investors are more active, some are more patient. We believe that every investor acts in his/her own interest. The capital market works around quarterly results. But energy is an industry which is characterised by long-term planning. This is why the Management Board's point of view is naturally aligned with long-term shareholders' perspective.

Of course, in order to implement long-term plans, day-to-day care for the company's finances is required, which is reflected in quarterly results. Quarterly results publications are an opportunity to monitor the company's situation and progress in its development.