PBG SA

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COMPANY PRESENTATION

October 2006

Company you can relay on, according Forbes & PID rating

PBG SA – Company listed on the Warsaw Stock Exchange

Shareholders structure (in votes)

Jerzy Wiśniewski52,36% Tomasz Woroch

3,79%

BZ WBK AIB AM5,32%

ING TFI 5,04%

remaining shareholders

33,49%

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IPO – issue price of PLN 32 per share (June 2004) Debut price on the WSE – PLN 35 (July 2nd 2004) SPO – issue price of PLN 92 per share (Jan 2006) Current market price – PLN 189 (September

29th2006)

PBG stock performance

on the WSE

Jerzy Wiśniewski, MBA – President of the Management Board, graduate of the Civil

Engineering Faculty of Politechnika Poznańska [Poznań University of Technology].

Małgorzata Wiśniewska, MBA – Vice-President of the Management Board, graduate of the

Civil Engineering Faculty of Politechnika Poznańska [Poznań University of Technology]. Post-

graduate studies in Public Relations at the Finance and Banking Faculty of Wyższa Szkoła

Biznesu [Business College] of Poznań.

Tomasz Woroch, MBA – Vice-President of the Management Board, graduate of the Social

Studies Faculty of Uniwersytet im. Adama Mickiewicza of Poznań [Poznań University].

Przemysław Szkudlarczyk, MBA – Vice-President of the Management Board, graduate of the

Building Machine and Vehicle Faculty of Politechnika Poznańska [Poznań University of

Technology].

Tomasz Tomczak – Vice-President of the Management Board, graduate of the Building

Machine and Vehicle Faculty of Politechnika Poznańska [Poznań University of Technology].

Mariusz Łożyński – Member of the Board, graduate of Politechnika Poznańska [Poznań

University of Technology], Civil Engineering Faculty

Managing Personnel

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Business Profile

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General execution of natural gas, crude oil and water installations in turn-key system

A. PRODUCTION

of

natural gas

and crude oil

B. TRANSMISSION

of

natural gas,

crude oil

and water

C. STORAGE

of natural gas, fuels and LNG

D. DISTRIBUTION

of natural gas

and water

E. ENVIRONMENTAL PROTECTION &

1. Water & sewage systems

2. Hydro construction

3. Renovations

Business Profile

A. Production of natural gas and crude oil Above-ground installations for crude oil and natural gas production Installations for liquefaction of natural gas (LNG) LPG separation stations Crude oil desulphurization units

B. Transmission of natural gas, crude oil and water Steel pipelines and structures for transmission of natural gas, crude oil and water,

including: steel water pipelines and collectors, crude oil pipelines and high-pressure gas pipelines Gas pressure-reduction and measuring stations, mixing plants, separation nodes, gas

compressor stations, etc.

LNG transport

C. Storage of natural gas, fuels and LNG Installations for storage and degasification of LNG Storage stations for LPG and C5+ Fuel depots Above-ground installations of underground gas storage facilities

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Business Profile

D. Distribution of natural gas and water Polyethylene pipelines and installations for distribution of natural gas and

water

Heat-generation infrastructure (boiler houses, heat generating plants, heat distribution centres)

Co-generation (combined heat and power generation from natural gas)

E. Environmental protection and sanitary systems Water and wastewater systems, including:

Water pipelines

Sewage systems

Wastewater and water treatment plants

Water intakes

Incinerating plants

Hydro-engineering structures

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Completed Projects

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• Natural Gas Plant in Kościan • Crude Oil Plant in Sławoborze

• LNG Installation • LPG Separation and Storage Station in Władysławowo

Projects

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• NRU Grodzisk Wlkp

• Stage of fall in Malczyce

• WWTP – Zabrze

• Fuel Depots - Orlen

Competition

Activity Domestic competition Foreign competition

Natural gas and crude oil plants Naftomontaz Krosno ABB

Gas and crude oil transmission systems

Naftomontaz Krosno, Gazobudowa Zabrze, Gazobudowa Poznan, Gazomontaz Wołomin, POL-AQUA

Underground gas storages - ABB, Sofregas

LNG installations Polimex Mostostal Tractebel, Linde, Costain, Air Products

Fuel depots Hydrobudowa 6 Warsaw, Polimex Mostostal Bilfinger Berger

Construction of sewage and water systems

Hydrobudowa 6 Warsaw, Hydrobudowa 9 Poznan, POL-AQUA, Mitex, Hydrobudowa Gdansk, Budimex, Polimex Mostostal

SKANSKA, STRABAG, Ferrovial

Renovation of sewage and water systems

- Per Aarslef, Diringer&Scheidel, Ludwig Pfeifer

Hydro-construction - SKANSKA, Bilfinger Berger, Ferrovial

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PBG Group

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ATG Sp. z o.o.

91,84%

Metorex Sp. z o.o.

99,98%

KRI Sp. z o.o.

92,24%

INFRA Sp. z o.o.

99,75%

PGS Sp. z o.o.

7,76%

15,0%99,56%

100%

Employment PBG Capital Group - 2104 (05.09.06)

HydrobudowaŚląsk S.A.

58,10%

Hydrobudowa-Włocławek S.A.

KB GAZ S.A.

100%

Structure of the PBG Group

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Company Interest held

Business profile

ATG Sp. z o.o 100% Trading, including supply of materials and equipment, comprehensive supplies to companies operating in the gas, oil, heat-generation, as well as water and wastewater industries, organisation of purchases for the PBG Group – optimisation of purchasing terms.

KB GAZ S.A. 100% Infrastructure investment, environmental protection, such as waterworks and wastewater systems, pumping stations and water treatment plants; low-, medium and high-pressure gas supply systems. It is a pioneer on the Polish market in terms of using directional drilling technologies for laying underground systems.

KRI Sp. z o.o. 99.9% Transmission, distribution of and trade in natural gas, generation and distribution of heat, Advisory services in the area of fund raising for and implementation of investment projects relating to the use of natural gas and generation of heat, as well as application of the LNG technology to the distribution of natural gas.

INFRA Sp. z o.o 99.75% Specialist services in the area of rehabilitation of water pipes and sewage systems

METOREX Sp. z o.o

99.6% Construction of water-pipe networks, sewage systems, heat and gas distribution networks,land melioration networks, hydro-engineering, wastewater treatment plants, road and square pavement.

PGS Sp. z o.o. 92.24% Specialist services in the area of road transport, mainly of LNG, road transport by specialist and universal vehicles, transport via pipelines, handling and storage of goods.

HYDROBUDOWA Włocławek S.A.

91.8% Comprehensive execution and servicing of investment projects in the area of civil engineering, hydro-engineering, as well as environmental protection, water supply and sewage systems.

HYDROBUDOWA ŚLĄSK S.A.

65,9% Execution of huge water supply and sewage systems and hydro-engineering

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PBG Group’s 2002–2006 Financial Highlights [PLN’000]

net profit

4 626

11 301

36947

47341

13 947

0

10 000

20 000

30 000

40 000

50 000

2002 2003 2004 2005 2006E

operating profit

9 18114 290

25 880

41331

05 000

10 00015 000

20 00025 000

30 00035 000

40 00045 000

2002 2003 2004 2005

Net margin

2,9%

6,3%

8,4%8,8%

0,0%

1,0%

2,0%

3,0%

4,0%

5,0%

6,0%

7,0%

8,0%

9,0%

10,0%

2002 2003 2004 2005

sales

162 141 180 666 216 131

408539

702135

0

200 000

400 000

600 000

800 000

2002 2003 2004 2005 2006E

forecast

 Amount [mPLN]

In year

2006

2007…

Backlog of orders

1506,2 760,

0 756,0

0

Revenue Structure 2002-2005 [PLN ‘000]

22 512 26 04250 572

149 738

33 09767 439

58 918

79 847

8 592

9 21726 414

65 758

0

982

5 018

52 547

47 655

39 661

42 437

19 418

15 428

10 365

728

12 623

30 13823 401

8 502

5 062

02 160

2 794

2 863

0

50 000

100 000

150 000

200 000

250 000

300 000

350 000

400 000

450 000

2002 2003 2004 2005

Reve

nue

environmental protection transmissionindustrial infrastructure and buildings storageproduction natural gas distributiondistribution systems sales of w ater and w astew ater treatment

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Revenue structure 2005

21%

1%

5%

14%

17%

38%

1% 3%

Key Clients – Year 2005

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Client %

GOV. of the PROVINCE of OLSZTYN 13,62%

PKN ORLEN S.A. 13,29%

PGNiG S.A. 10,41%

PROCHEM S.A. 6,95%

MUNICIPAL WATER and SEWAGE COMPANY - SZCZECIN 4,82%

MUNICIPAL WATER and SEWAGE COMPANY - WARSZAWA 3,72%

GAZ-SYSTEM Ltd. 2,97%

MITEX S.A. 2,35%

MEGAGAZ S.A. 1,82%

CONTROL PROCESS S.A. 1,75%

Ministry of Defence - NATO 1,28%

Significant Running Contracts

Contract Signed Investor Contractor Value

Modernisation and extension of the Włocławek wastewater treatment plant

Sep 17, 2004

MPWiK (Municipal Water and Sewage Company) of Włocławek

Hydrobudowa Włocławek SA, PBG SA

EUR 16.49m

Górzyca crude oil plant Nov 8, 2004 PGNiG SA PBG SA, Thermo Design Engineering

EUR 16.9m

Refurbishment of the existing sewage network of the left-bank Szczecin

Dec 9, 2004 ZWiK of Szczecin (Municipal Water and Sewage Company of Szczecin)

PBG SA, DIRINGER&SCHEIDEL Rohrsanierung GmbH&Co KG

EUR 42.22m

Construction of the Grzechotki – Mamonowo road border crossing point

Dec 17, 2004

Governor of the Province of Olsztyn

PBG SA, Hydrobudowa Włocławek SA

EUR 13.42m

Modernisation of Storage Depot in Wrocław and Storage Depot in Nowa Sól

Feb 1, 2005 PKN ORLEN SA PBG SA PLN 45m

Construction of the ”SASKA KĘPA II” floating pumping station

Jun 28, 2005

MPWiK of Warsaw PBG SA, Hydrobudowa Włocławek SA

PLN 30.88m

Modernisation and extension of the fuel and lubricant inland depot in Cybowo

Jun 30, 2005

NATO Investments Unit PBG SA PLN 31.12m

Executing Biszcza natural gas plant Oct 31, 2005

PGNiG SA PBG SA, Control Process PLN 24.6m

Executing Wilga natural gas plant Oct 3, 2005 FX Energy Poland Sp. z o.o. PBG S.A. PLN 19.87m

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Significant Running Contracts

Contract Signed Investor Contractor Value

Executing of floating pumping station and wastewater collectors in Bydgoszcz

Dec 22, 2005

MWiK Bydgoszcz Hydrobudowa Włocławek SA, WPPU Alfa Sp. z o.o., Zakład Inst. Wod-Kan i C.O.

EUR 13.99m

Modernisation of sewage system in Gliwice

Nov 29, 2005

PWiK Gliwice Hydrobudowa Włocławek SA EUR 4,76m

Construction of barrage Malczyce on the Odra river

Feb 06, 2006

RZGW Wrocław PBG SA PLN 102,14 mln

Modernisation and extension of the fuel and lubricant inland depot in Gardeja

April 2006 NATO Investments Unit PBG SA PLN 20m

Construction of sewerage system and water supply system for right riverbank of Szczecin

June 2006 ZWiK of Szczecin (Municipal Water and Sewage Company of Szczecin)

KB GAZ S.A., Energopol-Szczecin S.A. and Wiemer & Trachte AG

EUR 22,5m

Constructing of the sewage system in Elbląg

June 2006 MPWiK Elbląg Hydrobudowa Włocławek SA, PBG, ABT, Pekum

EUR 15,7m

Construction of sewage system June 2006 MPWiK Wrocław Hydrobudowa Wlocławek S.A., PBG S.A.

EUR 22,8m

Modernisation of wastewater treatment plant, left bank of Poznan

June 2006 City of Poznan Hydrobudowa 9, PBG S.A. EUR 55m, (PBG 13,2)

Nitrogen Removal Unit Grodzisk Wlkp.

Sept.2006 PGNiG PBG S.A., Chart Ind., TDE PLN 120m

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Natural gas PGNiG Group’s published investments plans for 2006–2008 – ca PLN 8.75bn,

including ca PLN 3.6bn in exploration and production, ca PLN 2.35bn in transmission and ca PLN 2.45bn in distribution (source: PGNiG’s Issue Prospectus)

Increase in domestic natural gas production from 4.3bn m3 in 2005 up to 5.5bn m3 in 2008

Increase in the capacity of underground gas storage facilities from the current 1.5bn m3 to at least 5bn m3 – including Ist stage of extension of the Underground Storage in Wierzchowice from 0.5bn m3 up to 1.5bn m3 (PLN 0.4bn)

Diversification of natural gas supply sources, including plans providing for import of LNG beginning in 2010 (ca 5bn m³ per annum) – LNG onshore terminal (PLN 2bn) and adaptation of Polish gas transmission network (PLN 0.5bn)

Construction of pipeline interconnections between the Polish and foreign gas systems (Norway, Germany, Ukraine)

„Poland’s Energy Policy until 2025” – growing share of natural gas (as an environment friendly fuel) through its use in the commercial power sector and industry

Potential Market

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Crude oil Discovery of new deposits in Poland and the related plans for an increase in

production from 0.6m tonnes to 1.4m tonnes per annum over the next 3 years – Lubiatow-Miedzychod-Grotow (LMG) crude oil plant (PLN 0.43m)

Construction of the crude oil pipelines from the Ukraine to Poland (Adamów-Płock and Odessa-Brody)

Environmental protection and hydro-engineering EU funds for Poland – EUR 4.5bn in 2004–2006 assigned mainly for water and

wastewater installations New EU funds for 2007–2013 – EUR 56bn for Poland Funds assigned for flood protection improvement projects – increase in the

capacity of storage reservoirs in Poland from ca 2bn m³ to ca 3.3bn m³, reconstruction of ca 1,000 km of embankments and river engineering (ca 4,000 km) - „Programme for the ODRA River 2006” – estimated total cost of main investment projects exceeds EUR 0.52bn

Potential Market

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Fuel storage facilities NATO’s investments in Poland (2004-2007)total PLN 2bn, including PLN 0.7bn in

fuel storage depots; Extension of PKN ORLEN’s and Naftobazy’s fuel storage depots.

Foreign markets Extension of underground storages in Latvia and Hungary Increasing natural gas production in the Ukraine, modernisation and

reconstruction of gas transmission network LNG installations and natural gas plants in Norway Cooperation with Foreign Partners (Wavin, TD Williamson, Pall Corporation,

Thermo Design Engineering, Chart, Bergen Engineering, etc.);

Potential Market

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Significant Potential Contracts in 2006/07Contract Contract

awardBudget

Modernisation and extension of the fuel and lubricant inland depot in Cybowo October 2006

PLN 250m

LMG crude oil plant June 2007 PLN 430m

LNG plant in Norway November 2006

EUR 60m

Wastewater treatment installation „Czajka” in Warsaw March 2007 EUR 261m

Racibórz reservoir on the Odra river November 2007

PLN 650m

Modernization of a sewage system in Mysłowice Nov. 2006 EUR 58m

Sewage system modernization in Warsaw November 2006

EUR 6m

Modernization of the filters for the waterworks in Warsaw November 2006

EUR 56m

Underground Gas Storage in Wierzchowice June 2007 PLN 400m

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Competitive Advantages

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Financial capabilities – banking and insurance limits exceeding PLN 0.5bn

Execution capabilities – development through organic growth using EU subsidy

and acquisitions, commissioning works to companies from the PBG Group who

serve as subcontractors, thus allowing us to fully carry out contract terms and

strictly keep to deadlines

Narrow specialisation – delivery of specialised services in several areas:

natural gas, crude oil, water and investments in modern technologies; recruitment

and employment of highly educated workers

Project management – budget-driven management, extensive use of IT tools,

including integrated management systems, virtual document circulation, data

warehouse, analytical programs

Quality, effectiveness and modernity

PBG Group’s Development Strategy

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Increasing value through:

Strengthening on the construction market and high specialisation in executing transmission and distribution installations for natural gas, crude oil and water

Expansion in the area of specialised installations for natural gas and crude oil production and processing, as well as fuel depots for the army and the industrial sector;

Expansion in the area of specialised, sanitary and hydro-engineering systems (including design, construction and refurbishment);

Acquisition of contractor companies, especially companies with niche technologies;

Procurement of high-value contracts as the General Contractor;

Procurement of contracts on the foreign markets;

Implementation of new products and technologies.

Thank you for your attention

Contact information:

tel. (+4861) 665 17 00, 665 17 50fax. (+4861) 665 17 01,

polska@pbg-sa.pl

PBG SAul. Skórzewska 35, Wysogotowo near Poznań

62-081 PrzeźmierowoPoland

www.pbg-sa.pl

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